presented by: pamela ettien, manager, softresources llc david w. krout, cpa & principal...
TRANSCRIPT
Presented By:
Pamela Ettien, Manager, SoftResources LLC
David W. Krout, CPA & PrincipalClientFirst Consulting Group, LLC
Glenn Mathes, Account Executive, Agresso
Perspectives on Successful Financial System Selection:
A Practical Approach
Palm Springs CSMFO ConferenceFebruary 24, 2006
Agenda Introduction Presentation: Is Your Software RFP a Request for Punishment? by Pamela Ettien, SoftResources LLC
Presentation: Risk Mitigation Strategies, by David Krout, ClientFirst Consulting Group
Presentation: Budgeting and RFP for Software: A Vendor Perspective, by Glenn Mathes, Account Executive, Agresso
Questions and Answers
By
Pamela Ettien, Manager
SoftResources LLC2517 Eastlake Avenue East, Suite 100
Seattle, WA 98102(206) 860-2400
www.softresources.com
Is Your Software RFP A Request For Punishment?
Palm Springs CSMFO ConferenceFebruary 24, 2006
© 2006 SoftResources LLC
SoftwareSelection
ContractNegotiation &
ImplementationPlanning Review
Implementation Vendor Selection
TechnologyAssessment
SoftwareSelection
Implementation Vendor Selection
Contract Negotiations
Seminars
Consulting
Products
SoftResources Brief
© 2006 SoftResources LLC
RFP - Request for Punishment?Contributing factors: Too detailed, hard to read. Often copied from other entities (meaningless
filler). No initial weighting of requirements or complex
weighting. Keep it simple (i.e. Required, Important, or Nice to have).
The right vendors do not respond – time constraints. The wrong vendors respond to a sub-set of criteria. Vendors do not provide the information needed. All responses come back with “yes” answers, but no
detail on “how”. The many meanings of “yes”, i.e. “yes, in 6 months;
in a future release; using a 3rd Party interface”, etc.
Potential contract issues are not flushed out. Difficult for project team to make a good decision –
too much data to sort through. They are often a “Request for Punishment” for the
vendors and entity alike.© 2006 SoftResources LLC
Interviews
Differentiating Criteria 6-8 pages
Comparison Chart
RFP10-50 pages
Public NoticeContract Doc.
Demo Script25-40 pages
Demo Evaluation
Decision ToolsInterviewNotes
Go
als
& O
bje
ctiv
es
ISStrategy
DepartmentManagers
Executives
SystemUsers
Suggested Requirements Analysis/ Process:
© 2006 SoftResources LLC
Use Differentiating Criteria to: Focus on key criteria that not all vendors can provide.
Create a meaningful vendor response (goal).
Determine functional “footprint”. Determine priorities for requirements. Make RFP analysis more streamlined for your project team.
Compare vendors equally and objectively.
The RFP should be a tool to narrow your list to a short list of about three vendors, not the sole basis for making an award.© 2006 SoftResources LLC
Optimal RFP DevelopmentMake it easy for the vendor to read & understand the format. Clearly define:
What the scope of the project entails. Your current environment. Your desired environment and objectives. What software or type of vendor you are interested in or are not interested in.
What they need to do to submit a qualified response.
Your selection timeline. Your evaluation process. Your evaluation criteria – how RFP’s will be “scored”.
© 2006 SoftResources LLC
RFP Design TipsMake it easier for your team to evaluate the vendors:
Use a structured proposal format. Structured requirements information gathering. Structured vendor information gathering. Use a structured pricing format/template, and identify unique vendor cost elements (equalization).
Ask vendors for a list of exceptions to the RFP.
Get electronic copies of “Requirements” section for side-by-side comparison.
Ask for boilerplate copies of Software License, Service Contracts and Maintenance Agreements.
© 2006 SoftResources LLC
How to Get the Right Vendors to Respond: Provide specific information on critical requirements and constraints: packaged software (not custom development), operating budget, database/platform, project budget, etc.
Keep requirements list concise. Create a long list of potential vendors; notify and/or distribute your RFP to them.
If using a consultant, focus on unbiased process and approach.
Be honest and fair with the vendors. Do not use a vendor’s functional template for your requirements document; build to meet specific needs.
Provide the right balance: Amount of work to respond to the RFP vs. the total value of the project to the vendor.© 2006 SoftResources LLC
RFP Response Analysis Utilize the Core Team representing the various departments.
Determine the evaluation criteria and approach.
Don’t rely only on written clarifications alone. Teleconference calls can provide:
Meaning of “Yes” Find out how the vendor handles requirement More detailed information
Shortlist decision of 3 software vendors to bring into scripted demonstrations.
Perform due diligence on top 1-2. Make a decision.
© 2006 SoftResources LLC
ConsiderSoftware Vendors
Focused RFPFocused RFP DemoScript
More Details
DemoScript
More Details
Finalist List
Short-List
Research
Short-List
Selected Vendor
Finalists
Software Vendor Demos
Decision & Contract
User VisitsCorporate VisitTechnical Demos
Pricing
Contract Negotiation
Contract NegotiationComparison
Chart
Comparison Chart
Selection Process Overview
© 2006 SoftResources LLC
Uncompromising
Client Service Begins Here…
ClientFirst Consulting Group, LLC © 2004. All Rights Reserved.
System Selection Risk Mitigation Strategies? Palm Springs CSMFO Conference 2006
By
David Krout, CPA Principal
ClientFirst Consulting Group, LLC
Local Government Focused IT Consulting Corona, California
(951) 734-4255 (800) 806-3080 [email protected]
www.client-first.net
Uncompromising
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Implementation Risk
Average local government ERP Implementation was 176% over budget and 243% over planned implementation timeline.
Government Finance Review
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Local Government Industry
More Complex Software and Implementation than most other Single Entity Private Industry Implementations
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ClientFirst Consulting Group, LLC © 2004. All Rights Reserved.
Local Government Needs General Ledger Budgeting Grant Tracking Financial &
Management Report Writing
Utility Billing/Customer Information Systems
Tax Billing & Collections
Business Licenses (optional)
Receivables Cash Receipts Land Management Parking Tickets
Purchasing Inventory Payables Bank
Reconciliations Fixed Assets Human Resources Payroll Work Orders &
Facilities/Infrastructure Management
E-Government Applications
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Additional Potential Issues Asset Management
(streets, signs, parks, industrial waste, signals distribution infrastructure)
Plant/Facilities Maintenance
Meter Management Sewer Management Executive Dashboard
Reporting Web-based
Reporting/Info. Imaging/Document
Management
GIS/Land Mgmt. Integration
Field (Mobile Solutions)
Inspections Parks & Recreation Project Planning Scheduling Forecasting Vehicle Maintenance Equipment Maintenance Street Maintenance Cost Tracking (labor,
parts, contractors, purchases, etc.)
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Client Service Begins Here…
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Reasons for Failure
Cultural Political Failure to follow “proper” system selection methodology
Lack of sufficient implementation planning/ project management
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Reasons for Failure Cultural
Resistance to technology Resistance to change Resistance to Tracking or Fear of being Measured
Misunderstanding of new processes required to use systems
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Reasons for Failure Political
Lack of Management Commitment/Control
Lack of Consensus/Cooperation Assumption that other Departments have to do it our way
Assumption that IF our department doesn’t need it, their department doesn’t need it
Uncompromising
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Reasons for Failure Improper System Selection Methodology Improper/Insufficient definition of systems objectives and requirements
Use of another city’s/vendor’s feature/function specification
Failure to involve both management and users at adequate levels
Underestimating the costs and effort required for implementation
Uncompromising
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ClientFirst Consulting Group, LLC © 2004. All Rights Reserved.
Reasons for Failure Insufficient Planning/Project Management Low productivity due to lack of proper training based on unidentified needs
Poor contract negotiation position due to inability to incorporate detailed needs assessment and vendor responses to RFP into sales contract
Lack of and/or reduced integration between other peripheral software systems
Uncompromising
Client Service Begins Here…
ClientFirst Consulting Group, LLC © 2004. All Rights Reserved.
Keys to Success Formal system selection methodology and approach is a risk mitigation process
Use System Selection Process and Deliverables as Foundation for Implementation Planning & Project Management
Adequate Implementation Planning/Project Management Resources
Note: These objectives may not be adequately met/identified with a boiler plate process
Uncompromising
Client Service Begins Here…
ClientFirst Consulting Group, LLC © 2004. All Rights Reserved.
Needs Assessment / Requirements Definitions
Software/Applications
Organization Goals &
Objectives
Business Process/Operation
s
Technology Infrastructure
/Hardware
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Needs Assessment / Requirements Definitions Involve users at all levels Analyze current/future processes, requirements
Specific to your organization Limit (reasonably) nice-to-have’s
Don’t use a vendors/other agencies feature/function listings
Objective criteria
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Needs Assessment / Requirements Definitions Benefits of Structured Approach
Provides a more objective basis for solution decision making
Provides an opportunity to reach consensus on system needs
Clearly defines requirements and priorities to provide an overall picture of what is to be accomplished and why
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Pre-screen Vendors Limit Distribution (8-12) Match Primary Capabilities (Applications)
Identify Tolerance for Vendor Characteristics Core Customer Base Size of Company Available Company Resources Industry Focus Etc.
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RFP Document & Distribution
Clear and Concise as Possible Vendor Friendly Evaluation Friendly Adequate Response Time (min. 4 weeks)
Adequate Q&A Process
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Preliminary Analysis (Short-list)
Driven by Evaluation Friendly RFP Document Comparison Worksheets
Feature / Function Requirements (Not just Yes/No)
Key Questions Vendor Profile Customer Base (relevance)* Project Costs
Feature / Function Compliance Scores
Budget Customer Base
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Evaluating Feature/Function Compliance
Focus on non-compliant answers Look for vendor disqualifiers
Focus on vendors’ comments/clarifications for compliant answers
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Demonstration Management Recommend not more than 3 Vendor Finalists
Demonstration Guides Process Flow (show users how to do their jobs)
Critical/Problem Focus Areas Control Q & A process
First round should narrow to 1 or 2 vendors
Additional Follow-up Required
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References / Site Visits
Relevant customers Similar to you Long-term vendor customers
Support Functionality
Implemented within last 2 years Same product being purchased
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Contract Review & Negotiations Payment Terms No Hidden or Unanticipated Costs
Conversions 3rd Party Products 3rd Party Services Interfaces Hardware Requirements Contingency Funds
Incorporation of RFP/Proposal Preliminary Implementation Planning
Tuesday, April 18, 2023
Government Financial Software
Established. Integrated. Powerful.
Budgeting and RFP for SoftwareA Vendor Perspective Glenn Mathes, Agresso
The Right Information is Critical
• Vendors need accurate information to help size-up the opportunity
• Be candid regarding any existing biases i.e. technology, database, etc.
• Identify current functional paint points
• Weight your requirements
• Project timeline
• Evaluation process
• Scoring methodology
• If possible, give a target budget range
RFP Design
• Structured templates that are flexible enough that vendor differences can be communicated without compromising level comparison.
• Electronic copies of “Requirements” section…Please!
• Provide clear and concise functional requirements. The less left to vendor interpretation the better.
• State your mandatory requirements up front
Vendor Evaluation-The Changing LandscapeRisk Management, Product Longevity, Vendor Stability
• Long-Term security of investment is key
• Not just reference focused
• Current and future technology direction (five year horizon minimum)
• Core product dependence on 3rd party vendors
• Understand the long-term plan and strategy of vendors with multiple product lines
• Annual investment in new product development
• Company financial viability
• Both Product Stability and Vendor Stability are key!
Plan for Today…..and Tomorrow
• Many RFP’s are a snapshot of today’s needs
• Include questions regarding product design and flexibility in order to meet tomorrow’s new challenges and requirements
• Ask for minimum hardware specs
• Evaluate long term cost of ownership considering hardware costs, internal cost to support, internal report generation, etc., not just license and services fees
Goals of a good RFP
• To understand how the vendor can meet your functional needs today, and how easily they can adapt to change to meet tomorrow’s requirements
• To understand the technical composition of their offering today as well as their future direction
• To calculate true cost of ownership over a minimum 5 year horizon.
• To identify which vendors represent the highest possible value, and the lowest possible risk