12 criteria for software vendor selection

© Copyright 2014. High Performance Concepts, Inc.

12 Criteria for Software Vendor Selection

July 14, 2014

prepared by:

Brian Savoie

Vice President

HIGH PERFORMANCE CONCEPTS, INC. 151 Village Parkway • Building 6 • Marietta, GA 30067

Phone: 770-859-0161 • Fax: 770-859-0166 • www.hpcinc.com


12 Criteria for Software Vendor Selection

Business

Benefit Achievement

Cost and Terms

Enthusiasm of Key Personnel

Product & Vendor RiskVendor Quality Assurance

On-Going SupportVendor References and Reputation

Vendor Financial Strength

ImplementationEase of Implementation

Implementation and Training

TechnologyFunctional Capabilities

Technical DirectionEase of Integration


Benefit Achievement

Can this software and vendor help you achieve the benefits you need?

In what percentage of the installed base has this vendor “delivered on” the benefits?

Is the vendor willing to put benefits in the contract?• Pay for performance• Schedule milestone achievement

Make sure the customers of the software vendor have achieved real business benefits.

$


Cost and Terms

• Cost is a major factor for most companies• Payment terms often play a major role• For multi-site, multi-license implementations, payment terms

should reflect the use the company gets from the software– Buy as you implement– Pay as you buy

• Some movement toward pay for performance

Linking payment to major milestones will assure that the vendor is with you all the way.


Enthusiasm of Key Personnel

• If a key leader has a strong preference among viable alternatives, then go with that vendor

• Funding of the purchase will go more smoothly

• Provisioning of resources will be made easier

• Leader is more likely to get personally involved

Follow a knowledgeable leader.


Functional Capabilities

• Specified in requirements document• Weighted for importance• Focus on special, unusual and important functionality • Make vendor RFP answers contractual• Buy what exists, not “vaporware”

– By process or module– General

• Consider future upgrades and growth path – Consider near-term future functionality– A major benefit of vendor-developed software is the continuous functionality

improvement via upgrades – Know the vendor history on software improvement and module expansion

A weighted list of critical requirements provides a GO/NO GO tool for differentiating among vendors.


Technical Direction

• Upgradability and growth path• Platform & operating system• Database management• Application development tools• Integration

– Within the application– With other applications– With the Web

• Network support• Data exchange• Networking• Security• Mobility• Scalability

Make sure the vendor’s technical direction matches that of your company.


Ease of Integration

• Integration with:– Other planned supply chain systems– Existing supply chain systems– Marketing, engineering and financial systems

• Vendor resources to enable integration– Personnel– Integration tools– Automated Programming Interfaces (API)

• Technical architecture– Openness– Alignment with your direction– Automated program interfaces– Application development tools

Ease of integration can make or break your implementation.


Ease of Implementation

• Never really easy, just degrees of difficulty • Technical and functional implementation• Implementation requires a lot of effort• Made more difficult by business realities

– Limited time– Limited resources– Limited budget

• Vendor resources/tools can make a difference• Include questions in reference checks:

– How long to implement– How many company resources– Actual expenditures

Ease of implementation may best be measured by thetime and resources required vs. those which were expected.


Implementation and Training Resources, Plans and Methods

• Vendor able to meet your schedule• Resources for implementation and training

– Vendor– Internal

• Project methodology and planning tools• Vendor personnel

– Knowledge of the software– Knowledge of your business– Capabilities and special skills which you need– Capacity to get the job done– Availability to meet your schedule– Professionalism

Both internal and external resources are critical to the success of your implementation.


Vendor Quality Assurance

• System to run your business has to work

• Learn about how the vendor manages:

– Software package development

– Interface and enhancement development

– Software “fixes” and upgrades

– Hiring of implementation consultants

– Implementation projects

Is this vendor a quality vendor? Will the system perform?

OR


On-Going Support

• Maintenance and Upgrades– Packaged software– Interfaces– Modifications

• Help Desk support– Technical and user support– 24 * 7– Geographic coverage– Unlimited use– Included in software maintenance fee

Vendor support will be critical to keeping users happy and the system running smoothly.


Vendor References and Reputation

• Get references

– In your industry

– In your geographic area

– Some who had problems

– Technical and user representatives

• Check them -- go visit if possible

• Know what you want to learn

• Document

Use the reference checks to make your decision and to improve your implementation plan.


Vendor Financial Strength and Long-Term Business Prospects

• Has the vendor been profitable for the past 5 years?

• Is the vendor growing?

• What are the vendor’s future prospects?

• How are they managing their growth?

• Is there any chance they will be acquired?

To consider the vendor as a business partner, assure that there will be a business with which to partner.


For More Information

Please contact:

Brian SavoieVice President High Performance Concepts, Inc.Cell: [email protected]

mailto:[email protected]



12 criteria for software vendor selection

Documents

vendor history

vendor willing

software improvement

key leader

major factor

major milestones

major rolefor multisite

real business benefits