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Selecting a software solution that meets the unique needs of your business, your customers and your team is one of the most important projects a retailer can initiate. Because of the time, expense and risk involved with even the best implementations, selection decisions will impact the business for years. All too often, the package chosen at the end of the selection process is not the best solution for the retailer's needs. The process failed to select the software most appropriate to address the retailer's needs and bottom line benefit potential is reduced. Following ten suggestions will improve your chances of success the next time you decide to kick off a software package search project. Click Here.Selecting a software solution that meets the unique needs of your business, your customers and your team is one of the most important projects a retailer can initiate. Because of the time, expense and risk involved with even the best implementations, selection decisions will impact the business for years. All too often, the package chosen at the end of the selection process is not the best solution for the retailer's needs. Sometimes the ideal solution never makes the initial vendor list. Other times the selection process does not reward the solution with the best fit for the retailer. In either case, the process failed to select the software most appropriate to address the retailer's needs and bottom line benefit potential is reduced. Following ten recommended tips will improve chances of success the next time you kick off a software package search project. Partner with the Best Partnering with an independent consultant brings several benefits to the software selection team and process. External consultants can focus exclusively on the selection effort and are not taxed with juggling other job responsibilities. They also should bring experience in the selection process. Select a consultant or firm with specific knowledge of the potential vendor set. This is often the best way to create the initial set of vendors from which to start the selection process. Partnering with an external consultant to lead the effort provides a neutral viewpoint that is extremely useful when mediating between internal opinions that may be in conflict. Know Thy Self The first step is to define the strategic goals and objectives of the software search. Start with a few high level questions for project sponsors to clarify the initial need for new software:
Prepare a formal requirements document as a deliverable from this effort. Prioritize the requirements to assist in decision making later in the process. Clarify if each requirement is mandatory for the solution out of the box or if it can be addressed as an enhancement in later releases or supported through other means such as custom code, third party software or services. Cast a Wide Net Once internal requirements driving the selection are documented it is time to begin looking for vendors who can meet the requirements and solve the targeted business issues. Create an initial list of vendors and invite them to participate in the software selection process through completion of an RFI (Request For Information). Create the initial list with several vendor options to ensure that this step does not unintentionally exclude the vendor with the best solution. Criteria for selecting a vendor should include stability of the vendor, proven track record within the retail industry and how closely the vendor's off-the-shelf software package meets the documented requirements. Avoid creating an initial list with more than 7-10 vendors. Creating too long a list of vendors will create unnecessary work for the selection team and may alienate vendors who are not a good fit for this search but offer other valuable solutions. The vendors identified should receive an RFI asking them to provide some basic information. The RFI should:
Use the RFI to narrow down the list of potential vendors to a short list that receives a more detailed review. This step weeds out the initial vendors who do not meet the more basic needs listed in the RFI. Score each response on the RFI with how well the vendor meets the requirement listed. Use predetermined question weighting to combine responses into an overall score. Keep the short list to 2-4 vendors when possible. Put Them to the Test The vendor short list should receive a Request for Proposal (RFP). The RFP is a comprehensive questionnaire that covers all aspects of the proposed software solution. Standard sections in an RFP include:
Trust but Verify Software vendors want your business. The sales team is hoping to close the deal by emphasizing their strengths and minimizing the shortcomings of the software. Because the goal of the software search process is to find the best software solution - not the best software sales team - focus on collecting and confirming facts. Invite the vendor finalists to conduct a software demo that illustrates the functionality listed in the RFP. Be sure to focus on unique functionality not offered by other vendors and high priority requirements. PowerPoint slides and screenshots do not qualify as a software demonstration and should not be included. In addition to confirming functionality through the demo process, check with the references provided to insure the solution functions as expected in a production environment when processing windows and large transaction volumes test software limits. Plan for the Future Finding a software solution that meets the needs of today is good. Finding a solution and vendor partner that will meet your needs today and in the future should be the goal of the search team. Include factors such as vendor stability, planned enhancements and support procedures when evaluating a vendor's ability to grow with you. Ask for details on how requested enhancements are prioritized and how your company can get involved in the process. Request examples of how past version upgrades were handled and how the vendor feels about custom code. Drive a Hard Bargain When it is time to discuss pricing with the top one or two vendors, use your best negotiator. Understand the value you bring as a customer to the vendor when negotiating pricing. Signing a well known retailer can have ripple effects throughout the vendor's sales pipeline. If providing quotes for marketing, acting as a reference or testing new functionality is part of the deal, ask the vendor to reflect that value in reducing the initial license fee (ILF). Remember, the size of the ILF impacts the maintenance expense for years to come. If there are any high priority enhancements, ask to have them placed in a specific future release and get that agreement in writing. As a retail customer, you will never have more leverage with a software vendor than when negotiating the ILF for the base software. Make a Balanced Decision Now that you have collected RFP responses, demo results, reference comments, future plans and pricing details, the team has enough information to select the best software solution and move forward with implementation and benefit realization. Use the requirement priority ratings collected earlier in the process to create a single rating number for each vendor. Work to gain a team consensus amongst IT, user group representatives and senior executives when making the final decision Enjoy the Fruits of Your Labor Selection and successful implementation of software solutions are great ways to gain process excellence, improve profitable decision making and increase the speed of benefit realization. Invest in the software search process to improve your chances to fully achieve the benefits driving the business case and propel your company to a competitive advantage. About RPE RPE is a leading consulting services provider exclusively focused on the challenging needs of the retail industry. RPE provides strategic consulting services, systems management, implementation, integration, modification and system upgrades for retailers worldwide. With a time-tested and proven record in retail, RPE delivers services on time and on budget. Areas of expertise: Manhattan Associates' Integrated Planning SolutionsT, Integrated Logistics SolutionsT and Warehouse Management solution; Microsoft RMS; Island Pacific; and the JDA® ASP, PMM® and MMS® applications, E3®, Arthur® and Intactix®. For more information, visit http://www.rpesolutions.com.
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