Enterprise
p Software Selection
Presented by:
Jim Carpp, Principal
Agenda
Goals for this Evening:
Discuss the importance of software selection
Provide an overview of the methodology
The Perfect Storm
Convergence of forces:
Software stream - Low
volume
Implementation
p stream -
Implementers hitting the
beach
Maintenance stream – Life
blood revenue stream
The Perfect Storm
Recent results:
Software List – 40%
Maintenance – 50%
Implementation
p e e a o – 35%
Negotiation starts before the first contact with the vendor
Why is Selection Important?
Selecting software can:
Be a large investment
Improve or decrease your performance
50% of implementations never meet their objectives
Factors Impacting Implementations
Requirements are not understood
Functionalityy does not match requirements
q
Change management is ignored
Not invented here syndrome
Cutting corners on training and implementation
When Software Selection is Relevant
When an organization:
Is facing challenges with an existing enterprise
software application.
application
Requires a new or replacement enterprise software
application.
application
Will be making a significant capital investment in an
enterprise software application.
application
Wants to ensure the best possible review and
selection p
process is conducted.
Objective of Software Selection
Define the organizations business processes and
requirements.
Identify a short-list
short list of vendors with possible
solutions.
Define the requirements
q for a new solution.
Conduct vendor demonstrations based on script to
allow for valid comparison.
Identify the best possible solution to meet the
organizations needs.
Benefits of leveraging a Methodology
Maximizes time and effort when selecting
g an
enterprise software application.
Helps ensure that key business process
requirements are addressed and considered in the
selection process.
Provides a structured approach.
Ensures input from all stakeholders.
Identifies gaps between business requirements and
th software
the ft applications
li ti tto eliminate
li i t surprises
i
during implementation.
Software Selection Methodology
Comprised of six (6) key phases:
Project Startup (Kick-Off)
Defining Requirements/Business Processes
Identifying a short
short-list
list of the best possible solutions
solutions.
Vendor demonstrations
Selection summary to identify the best solution
Selection support to assist with project implementation
Each phase has multiple detailed processes to
ensure adequate information is obtained
Phases can be tailored to meet needs and
requirements
Project Management
Change Management starts with:
Steering Committee
Project Champion
Project team Leaders
Team Members
Phase 1 – Project Startup (Kick-Off)
OBJECTIVE: To
T ensure th
thatt all
ll participants
ti i t hhave a clear
l vision
i i off th
the project
j t objective,
bj ti understand
d t d th the
project scope, and gain consensus on deliverables and timeline.
Tasks Deliverables
• Hold pproject
j “kickoff” and planning
p g sessions to cover • A project
p j charter identifying:
y g
final scope/deliverables/timeline/roles and • project objectives
responsibilities/logistics/project management • assumptions and constraints
methodology, assumptions, etc. • deliverables
• Begin to establish management and operational • roles and responsibilities
interview schedule. • A high level project work plan identifying the tasks,
schedules, milestones and key deliverables.
Benefits
• Clear understanding of project objectives, and team-member roles and responsibilities.
• Visible commitment from clients senior management and Rehmann Consulting increases motivation and commitment to
the project timeline.
Phase 2 – Define Requirement/Business Processes
OBJECTIVE: Document
D t th
the b
business
i requirements,
i t ffor k
key d
departmental
t t l areas, th
thatt are required
i d off a new
system to achieve your business objectives.
Tasks Deliverables
• Review
ev ew existing
e st g docu
documentation.
e tat o . • A document
docu e t outlining
outl g functional
u ct o al requirements
equ e e ts as
• Identify “areas-of-opportunity” for well as “areas-of-opportunity” to improve/reduce
improvement/cost reduction at a high level. costs, identify unique system challenges, budget
• Conduct requirements definition meetings with constraints, technology preferences, etc.
cross-functional participants, project team and • Business/operational/IT selection criteria
committee members and prioritize key system document.
requirements for key departmental areas.
• Document functional, budgetary and IT
requirements, as well as any operational needs.
• Establish core selection criteria.
Benefits
• Accelerated, yet comprehensive, requirements definition process.
• Meeting
g format helps
p build user commitment and fosters cross-functional communication.
Step 3 – Develop Vendor Short-List
OBJECTIVE: To
T develop
d l a short-list
h t li t off th
the vendor
d software
ft packages
k th
thatt b
bestt match
t h hi
high-level
hl l business
b i
requirements and key issues as identified in Step 2.
Tasks Deliverables
• Matc
Match tthee “core”
co e requirements
equ e e ts to tthee ve
vendor
do • Ve
Vendor
do sosoftware
twa e matrix.
at .
software packages or utilize a “functional • Short-list of vendors with possible solutions.
checklist” to identify the best possible solutions. • Summary of vendor responses and evaluation
• Additional screening & validation is performed by documentation
the project team, as needed.
• The project team produces a summary of the
degree of functional fit of the identified packages
and list of possible gaps.
Benefits
• Accelerated identification of best possible software packages.
• Unbiased vendor research conducted byy the p project
j team
Phase 4 – Vendor Demonstrations
OBJECTIVE: Conduct
C d t vendor
d d demonstrations
t ti tto evaluate
l t software
ft packages
k and
d perform
f necessary vendor
d
follow-up for up to three vendor demonstrations.
Tasks Deliverables
• For
o each
eac software
so twa e package
pac age the
t e selection
select o tea
team w
will:
ll: • So
Software
twa e de
demonstration
o st at o sc
scripts.
pts.
• Conduct the walk-through (demo) of each • A demonstration of vendor software, based on key
package. requirements that will permit a side by side
• Selection team documents the results, comparison of the top solutions.
identifying any gaps in each package. • Vendor evaluation forms to help guide the
• Selection team contacts vendor references. evaluations.
• Follow-up questions, as needed.
Benefits
• Provides an “apples-to-apples” comparison of alternative software packages.
• Demonstrations focused on critical functionality,y, rather than each vendor’s self-proclaimed
p “hot features”.
• Potential for a single “leading solution” will typically emerge.
Phase 5 – Selection Summary
OBJECTIVE: To
T bbring
i ththe project
j t tto closure
l b
by d
documenting
ti fifinall software
ft solution
l ti and
d presentt
recommendation to senior management.
Tasks Deliverables
• Su
Summarize
a e est
estimated
ated costs
costs/benefits
be e ts o of tthe
e • Final
al report
epo t for
o software
so twa e package
pac age recommended
eco e ded by
possible software solutions. selection committee containing:
• Selection committee identifies the best software • Project objectives
solution to meet business requirements. • Strategic business objectives and key issues
• Develop final report and facilitate discussion. • Vendor evaluations
• Present findings to senior management. • Overview of software solution
• Implementation plan
Benefits
• Facilitates a decision based on thorough understanding of functionality and key issues.
• Understanding g of costs and high
g level benefits.
• When personnel are involved in the selection process they are motivated to implement the solution.
Phase 6 – Selection Support
OBJECTIVE: To
T assist
i t your organization
i ti iin th
the acquisition
i iti and
d iimplementation
l t ti planning
l i off th
the fi
finall software
ft
solution
Tasks Deliverables
• Suppo
Supportt your
you sta
staff a
and
d its
ts legal cou
counsel
sel to • Ass needed
eeded by management
a age e t a
and
d legal cou
counsel
sel
structure a software and implementation services • Implementation planning and management
agreement that reduces the risks and is favorable (optional and as-needed)
to your organization.
Benefits
• Provides high-level support to structure favorable agreement.
• Transitions p
project
j from the selection team to your
y implementation
p team.
Software Considerations
Stick to the popular packages with a strong base
The devil is in the details - know yyour business
requirements before you talk to vendors
Have a script for the demo – this way you can make
comparisons
Use off-line customizations to accomplish complex
computations
Software Considerations
Avoid source code changes
Avoid over buying
y g
Do not confuse what you want with what you need
Consider all costs associated
Contact Information
For more information please contact:
Jim Carpp, Principal
989-799-9580
[email protected] Cost Considerations
Cost associate with ERP implementations:
Hardware
Training
Integration and testing
Customization
Data conversion
Data analysis
Consultants
