Software Vendor Selection

2 comments October 12th, 2006 David Bush - Iasta

A recent article on Technology Evaluation.com (registration required), Software Selection Process - Accelerating Vendor Identification, might be a good read for those of you looking to select a new, on-demand, eSourcing provider.

The article points out that it is imperative that you follow a disciplined plan in conducting your selection project. Otherwise, as The Cat points out to Alice in response to here statement that she does not know where she is going, any path will get you there, but without a clear plan the endeavor can be intimidating, overwhelming, and time intensive.

Furthermore, every aspect of your business operation is affected by the software being used. The disruption caused by the implementation of enterprise software — even if it fits your business well - can be significant. It takes a dedicated project team and dedicated software vendor to be successful and you should have an organization wide commitment of time and resources.

According to the article, a vendor selection process is five-phased:

• Planning & Kickoff

  where the goals, constraints, and team are identified

• Situational Assessment

  where the current situation is assess, analyzed, and documented

• Needs Assessment

  where the savings opportunities are identified and translated into prioritized software requirements

• Vendor Identification

  where a list of potential candidates is identified and vetted

• Software Evaluation

  where the software is evaluated - preferably on a trial basis!

In addition, the article recommends you ask the following two questions:

• Does the vendor have expertise or experience in your vertical?
• Does the size of your company fit into the “sweet spot” of the vendor’s customer base?

In other words, success requires a plan, adherence to the plan, and identifying the right vendor. In other words, even though the two questions the author identified are important, I’d say the most important question is

• Will the vendor work with me?

Not only are we entering the Software-as-a-Service age, but the most successful companies in the spend management space will be those who select providers who offer Software-with-a-Service who can provide best practices with leading edge software to help companies not only achieve, but exceed, their identified savings targets and performance improvements.

Entry Filed under: General, Technology, e-Sourcing Marketplace