How to successfully engage enterprise software vendors – software selection
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The document discusses strategies for engaging enterprise software vendors, focusing on the importance of aligning business and technology through effective sales processes and careful vendor selection. It outlines different vendor tiers and costs, emphasizing the need for clarity in contract language and the benefits of Software as a Service (SaaS) solutions. Key recommendations include understanding organizational readiness, leveraging external expertise, and addressing business processes before implementing new technology.
How to successfully engage enterprise software vendors – software selection
- 1. How to Successfully Engage Enterprise Software Vendors – Software Selection July 12, 2012
- 2. Housekeeping Phones are muted Use the question block for questions Copy of presentation available upon request
- 3. About Your Presenter • Sr. VP KeyedIn Solutions Consulting Group – Helping companies align their business and technology – Focus on people, process, and then the technology – Subject matter expert on business process management – On-going research into next generation of technology for enterprise systems • 25 years experience in enterprise systems – USAF Research Project (1985) – Founder of enterprise quality software company (1988) • Trusted advisor to global organizations, government agencies, and professional groups http://www.linkedin.com/in/johncachat
- 4. Thought for the Day Winning is a habit. Unfortunately, so is losing Vince Lombardi 4
- 5. Today’s Discussion • It All Starts With The Sales Team • It Doesn’t Do What We Want • Vendors Tiers And Costs • Finding The Right Tier • Contract Language • SaaS Alternative
- 6. It All Starts With The Sales Team Old School What You Want Focused on the sale. Period Focused on providing a solution that meets your needs. Clueless on the product Knowledgeable on the product and Post order implementation is the your industry. consultants problem, not mine. Carefully documents the sales process in order to provide a comprehensive packet to the consulting team. 6
- 7. It Doesn’t Do What We Want • Software “configuration” – Add-ons – Emails, triggers – Report writers – Form designers • Options – Change the process – Customize the app – Develop a workaround – The KeyedIn approach 7
- 8. The KeyedIn Approach • Use the ERP as is out of the box • Create user models that sit on top of the ERP • Have the vendor demo your process, not their software 8
- 9. Vendors Tiers Tier 1 Tier 2 Tier 3 Tier 4 Description Large Midsize Single Site Accounting, Enterprise ($20-$200M) HR, inventory Typical Multi-site, Single or few Single Site Less than Clients multi- sites in one looking to $2M, startups national country grow Examples SAP Epicor INFOR – Visual QuickBooks Oracle QAD MS Great Plains MS Navision INFOR - Syteline It is important to play with someone in the same league. 9
- 10. Vendors Tiers Costs (example) Tier License Implementation Support Total First Fee Fees (1 to 1) Year 1 $400K $400K $88K $888K 2 $200K $200K $44K $444K 3 $100K $100K $22K $222K 4 $20K $20K $4.4K $44.4K 10
- 11. Where Is Your Company At Today? Not all organizations at in the same place Greenfield No current system in place. Users are happy with anything. Few obstacles and constraints. Brownfield Have and existing system with existing issues. Company is used to doing things in certain ways. User resistance, data migration, etc. are common obstacles Blackfield Crashed and burned. New software will not solve the problem - do not lead with technology. Business alignment, people, culture, business processes all need to be addressed before looking to technology – get outside help! 11
- 12. Finding The Right Tier • Consider building a house analogy – I have not even picked out the land yet – Floor plan and general design provided – House comes almost pre-built – Here are the keys, move in • Time frame, budget, resources • SaaS alternative – No hardware to buy – No software installation, maintenance, or upgrade 12
- 13. Contract Language • Contract review – Define business expectations / requirements – Define deliverables – The more specific, the higher probability of success • If you do not have the expertise, get outside help • Plan for contingencies • Agree to change request process • Agree to project reporting frequency and content 13
- 14. SaaS Alternative • Low cost of entry • Lower total cost of ownership (TCO) • Elimination of capital expenditure • Dramatic reduction in internal IT costs • Vested vendor interests - if your not happy, the vendor loses the customer revenue opportunity • Much lower risk - faster implementations and outsourced expertise dramatically lower risk • A more powerful and secure IT infrastructure - few organizations can match the infrastructure and security investments made by SaaS vendors 14
- 15. Things to Remember…. • Know your organization and play in your league • Contracts can make or break your plans • If you need help, ask for it 15
- 16. About KeyedIn Consulting Group Experts providing solutions to specific problems – Project Rescue – Project Management & Virtual PMO – People and Process Alignment – Business and IT Alignment – Enterprise Software Selection 16
- 17. Follow KeyedIn Corporate Website: www.keyedin.com www.twitter.com/keyedinsolution www.linkedin.com/company/2434133?trk=tyah 17
- 19. Upcoming Webinars 7/17/12 Business Processes: Can’t Live With ‘Em, Can’t Live Without ‘Em 7/19/12 Support for the New System: Go Live Is Just The Beginning 7/24/12 Selecting Consultants: Just Like A Marriage–For Better Or For Worse 7/27/12 Enterprise System Implementation Strategies and Phases 7/31/12 Project Teams: People Issues, Roles and Responsibilities Register at www.keyedin.com 19
- 20. Questions & Answers Q A & Copy of Presentation Future Webinars Contact: Shelly Bird Visit: [email protected] www.keyedin.com 952-835-1041 ext.163