Project Description
Case Study: Selecting the Best Software Vendor
A client wanted to replace dated technology used for a key information processing system. There was a limited market of commercial products available for this niche environment. I was asked by the client to help them procure a solution.
The Method
- Document functional and technical requirements
- Multiple integrators for a considered software were assessed with a formal Vendor Qualification (VQM)
- Issue Request for Information (RFI) to the qualified, software vendors
- Evaluate the responses using a comprehensive evaluation ‘matrix’
- Entertain demonstrations from short-listed vendors using a scripted presentation defined by the client
- Select a preferred vendor
- Enter into contract negotiations
The Result
- For a cost equal to less than 10% of the software and implementation, the best vendor was chosen
- Involvement of end-users in the evaluation process helped to solidify buy-in into the final decision and acceptance of the new product
- Having detailed requirements and a better understanding of the level of ‘fit’, gave the vendor a ‘head-start’ in configuration and customization of the system that reduced overall implementation costs
Conclusion
- Formal vendor selections make sense for larger, comprehensive software systems
- Formal vendor selections make sense when replacing old technology and knowledge of the market offering is poor
- Vendor selections reduce vendors’ time and offers them the opportunity to present their solution in greater detail and exactly how the client expects to receive it