7. Software Selection

Selecting software is a relatively short process that has long reaching implications for a company.  As such, it should be run as well-coordinated project.  Aspects to consider include:

Team Structure

• Have a focused and empowered Steering Committee
•  Include Procurement on the team from the beginning
• Keep Legal informed
• Be sure to include representation of various types of users 

Project Charter should include

• Scope definition – both what is in scope and what is not
• Timeline for the project
• Benefits case
• Budget 

Requirements are critical:

• Requirements need to consider both management and end users
• Relative value ratings for the importance of each requirement need to be established before the potential solutions are evaluated
• Some may be mandatory – but care should be taken when using this category
• Technical requirements need to be understood, especially interfaces 

Scope of vendors to be contacted

• Do research on-line
• Talk to customers and vendors
• Do any of your current software providers supply what you are looking for

Request for Proposal - RFP

• Let Procurement be the point person
• Be specific in requested information
• Provide vendors a timeline that you expect them to meet – as well as your timeline – which you should commit to keeping
• Limit response at 15 / 20 pages telling vendors that any additional information they want to provide can be in an appendix but that it may not be read
• Solicit questions from vendors and combine into a single list, removing who asked
• Have all participants sign a confidentiality agreement.  Many vendors will want you to sign one as well, so just make it mutual.
• Have a Bidder meeting with all vendors attending and go over all questions (anonymously) so that all vendors will have the same information
• Review proposals in a timely manner
• Narrow the number of vendors as quickly as possible
• Reference calls are critical – in as close to your line of business as possible.  Ensure that the vendor is NOT on the call to help ensure candor.
• Have finalists (maximum of three) come in and present to the team.  Have them demo their product – ideally with your information that you will have supplied them.
• Selection Process
• Assign a value to each requirement and calculate a weighted average score for each vendor
• Remember, though, it is not just a numbers game
• Get Steering Committee buy-in

Now it is time to start negotiating with your first choice.  Unless you are sure they can meet your cost requirement, it is sometimes better to keep the number two choice, if they are viable, in the mix.

Next week I’ll discuss some negotiating strategies.