Enterprise

p Software Selection

Presented by:
Jim Carpp, Principal
Agenda

Goals for this Evening:

ƒ Discuss the importance of software selection
ƒ Provide an overview of the methodology
The Perfect Storm

Convergence of forces:

ƒ Software stream - Low

volume
ƒ Implementation
p stream -
Implementers hitting the
beach
ƒ Maintenance stream – Life
blood revenue stream
The Perfect Storm

Recent results:
ƒ Software List – 40%
ƒ Maintenance – 50%
ƒ Implementation
p e e a o – 35%

Negotiation starts before the first contact with the vendor

Why is Selection Important?

Selecting software can:

ƒ Be a large investment
ƒ Improve or decrease your performance

50% of implementations never meet their objectives

Factors Impacting Implementations

ƒ Requirements are not understood

ƒ Functionalityy does not match requirements
q
ƒ Change management is ignored
ƒ Not invented here syndrome
ƒ Cutting corners on training and implementation
When Software Selection is Relevant

When an organization:
ƒ Is facing challenges with an existing enterprise
software application.
application
ƒ Requires a new or replacement enterprise software
application.
application
ƒ Will be making a significant capital investment in an
enterprise software application.
application
ƒ Wants to ensure the best possible review and
selection p
process is conducted.
Objective of Software Selection

ƒ Define the organizations business processes and

requirements.
ƒ Identify a short-list
short list of vendors with possible
solutions.
ƒ Define the requirements
q for a new solution.
ƒ Conduct vendor demonstrations based on script to
allow for valid comparison.
ƒ Identify the best possible solution to meet the
organizations needs.
Benefits of leveraging a Methodology

ƒ Maximizes time and effort when selecting

g an
enterprise software application.
ƒ Helps ensure that key business process
requirements are addressed and considered in the
selection process.
ƒ Provides a structured approach.
ƒ Ensures input from all stakeholders.
ƒ 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

ƒ Comprised of six (6) key phases:

ƒ Project Startup (Kick-Off)
ƒ Defining Requirements/Business Processes
ƒ Identifying a short
short-list
list of the best possible solutions
solutions.
ƒ Vendor demonstrations
ƒ Selection summary to identify the best solution
ƒ Selection support to assist with project implementation
ƒ Each phase has multiple detailed processes to
ensure adequate information is obtained
ƒ Phases can be tailored to meet needs and
requirements
Project Management

Change Management starts with:

ƒ Steering Committee
ƒ Project Champion
ƒ Project team Leaders
ƒ 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

ƒ Stick to the popular packages with a strong base

ƒ The devil is in the details - know yyour business
requirements before you talk to vendors
ƒ Have a script for the demo – this way you can make
comparisons
ƒ Use off-line customizations to accomplish complex
computations
Software Considerations

ƒ Avoid source code changes

ƒ Avoid over buying
y g
ƒ Do not confuse what you want with what you need
ƒ 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:

ƒ Hardware
ƒ Training
ƒ Integration and testing
ƒ Customization
ƒ Data conversion
ƒ Data analysis
ƒ Consultants