E-Sourcing Forum » Software Vendor Selection

Software Vendor Selection

October 12th, 2006 at 06:39am 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.

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

2 Comments Add your own

1. Eric Strovink | October 12th, 2006 at 1:27 pm

Hmm, we have to be careful in the spend management arena. How can one perform a spend management situational assessment, or (good grief) a needs assessment, without spend management software in place (specifically, spend analysis software)? That’s like the captain of an aircraft carrier signalling the engine room “full speed ahead” without knowing his current position!

Always conduct a spend analysis first, then make your other decisions. Keep your hands off the throttle until you know what you’re facing.

At that point, I’m on board with the article.
2. E-Sourcing Forum: the sou&hellip | October 16th, 2006 at 11:08 pm

[...] In other words, as the marketplace is starting to realize, eSourcing is more than just the reverse auction - it’s the entire process from spend analysis, through need identification, through eRFX, bidding (possibly, but not necessarily, through an eAuction), decision optimization, contract management, and compliance monitoring - and any on-demand eSourcing provider worth their salt should understand this, and provide you with a solution that covers this entire cycle. Unfortunately, most eSourcing providers, like many early adopters, were stuck in the “eSourcing is eAuction” for too long, and not all providers will be capable of providing you with the complete end-to-end solution that you need to excel at your sourcing efforts - it’s buyer beware. Choose wisely when making a decision - and see my recent post on “Software Vendor Selection” for additional guidance. [...]

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