1. technology and computing
2. software

How to Select a
Solution Provider
Whitepaper For The Accounting Professional
Or Anyone Responsible For
Distribution / Manufacturing / Accounting Software
Compliments of:
Table of Contents
1 INTRODUCTION
1
2 AVOID THE COMMON MISTAKES
2
a.
b.
c.
d.
e.
f.
g.
All Software is the Same
I Don’t Have Time
We can do it Ourselves
The Cheapest Solution is the Best
My Friend or Family Told Me to Buy it
Don’t Buy Sex Appeal!
Beware the “Demo Trap”
2
3
3
4
4
4
5
h.
Get References
6
3 KEY SELECTION CRITERIA
a.
b.
c.
d.
e.
f.
g.
h.
i.
j.
k.
The Process of Selecting a Software & Solution Provider
Beware of the Perfect Solution
Size of the Organization
Length of Time in Business
Size of the Solution Provider’s Client Base
Hours of Operation
Employee Profiles
Breadth of Business Services
Measuring Customer Satisfaction
On-site Client Visit
Comparing Rates and Negotiating
Sample System Cost Summary
Implementation Fee Estimate
Training Fee Estimate
7
7
8
9
9
9
10
10
11
12
12
12
14
15
16
4 SUMMARY
17
5 SOLUTION PROVIDER COMPARISON SCORECARD
18
6 READINESS ASSESSMENT SCORECARD
22
How to Select a Solution Provider ― Complements of: Clients First Business Solutions
1
INTRODUCTION
Sheldon Needle, renowned Information Technology author, states in his Handbook of Computer Consulting, the sobering statistic that more than 80% of all Solution Providers and
Computer Consulting firms fail! Business automation is an involved and demanding process.
Whether it includes accounting, distribution, or manufacturing, it affects all areas within a
business. To maximize an organization’s productivity, a professional and methodical Solution Provider (Consulting Company) can make a vital difference. All business software is not
created equal. Selecting the right solution makes the difference between success and failure. Over the past ten years automated solutions have become more sophisticated and
complex. Few businesses have had the time, staff, or expertise to stay current on the technology let alone select and implement these solutions without the assistance from an outside consulting organization.
Selecting the right Solution Provider is more important than selecting the right hardware,
operating system, and application software. When a Solution Provider fails it is usually at
the expense of the client. We have written this document to provide insight and key questions necessary in selecting a Solution Provider/Consulting Firm that best meets the needs
of your organization.
Deloitte & Touche conducted a study of 1500 companies, all of which had to replace systems purchased within the previous 24 months. In the survey, the companies were asked to
rate the 10 most important factors that influenced their decision the first time they made a
software selection and then what changed the second time around. Of critical note is that
the second time around both the first and second criteria were focused on the Solution Provider and software vendor, compared with price and ease of implementation the first time.
The lesson was obvious to the companies participating; anyone can promise, few can actually deliver!
Top Ten Purchasing Criteria for Selecting Software
first purchase vs. second purchase
1st time
8
10
4
7
1
9
5
3
2
6
2nd time
1
2
3
4
5
6
7
8
9
10
Level of support provided by the local partner
Vendor’s track record of performance
Software’s ability to fit the business
Growth potential of the software
Price of software
Quality of documentation
Functionality of software
Ease of use
Ease of implementation of new system
Software works with existing hardware
How to Select a Solution Provider — Complements of Clients First Business Solutions
1
2
AVOID THE COMMON MISTAKES
Business automation is a complex matter and will affect your business operation for the next
5 to 10 years. If all costs are considered, including the amortized cost of your employee’s
time over five years, $50,000 to $500,000 is a realistic cost. Considering the size of the
investment, it is amazing how many businesses never take the time and steps to ensure they are making the right decision. This section discusses the common mistakes
made by so many organizations during the automation selection process.
a.
All Software is the Same
Many people assume that, since the product they purchase comes from a leading software
manufacturer, it is going to work and they cannot go wrong. This is analogous to assuming
that a car and a truck are the same. If you only intend to use the vehicle as transportation,
then either the car or truck provides the desired result. However, if your goal is to haul
cargo, only one solution does the proper job. The same concept is true with a business
automation solution.
Vast differences exist between one solution and another. The place to begin sorting out
these differences is by having a clear and precise understanding of your own company’s requirements and goals. You need to create an internal company document or list that focuses on each department within the organization. The list should differentiate between
must haves, want to haves and “wish list” items. Key information to compile includes:
;
;
;
;
;
;
;
;
;
A prioritized list of each department’s needs and requirements including a “wish list”
A description of how information is shared and flows between departments
Current manual and automated data collection systems
Organizational goals such as: Improving customer service or Ship all orders within 24
hours
Data about Transaction Volumes (i.e., number of customers, orders, invoices, vendors)
Financial data and documents required by accounting, auditing, and banking firms
Reports and analysis required for management and day-to-day operations
Integration with in-house systems and desktop applications
Other important information
NOTE: Having any more than 3 – 7% of the requirements listed as “must have” will
eliminate all 500 possible applications for your business.
Once your company information is collected and organized, every solution should be analyzed in terms of how well it addresses each of your goals and requirements. Give special
attention to report output, on-line queries, ease and speed of data entry, processing time for
updating and reporting, as well as the intuitiveness of the user interface. The diagrams on
page 6 illustrate how two accounting software packages can differ greatly in look, feel and
functionality.
How to Select a Solution Provider — Complements of Clients First Business Solutions
2
b.
I Don’t Have Time
All Solution Providers need time from key members of your organization to gather information and requirements about your business. This data is used and analyzed by the Solution
Provider to propose the best overall solution. The Solution Provider is an important resource. You must be willing to spend the time necessary for the Solution Provider to do the
job right. All too often we hear, “I do not have the time to spend with you” or “I can only give
you an hour.” Imagine needing surgery and telling your doctor to hurry because you
have another meeting!
Your business is a valuable asset. If you want a solution that works, you must make time. If
you do not have the time, postpone the project until the time is available. No solution, is
better than rushing into the wrong solution.
c.
We can do it Ourselves
An experienced Solution Provider has automated hundreds of businesses. Their level of
knowledge and expertise in business automation is generally well beyond the staff of a typical business. Use the Solution Provider as a valuable resource. Take advantage of their
experience by asking questions and learning how similar projects have been done for other
organizations. Very few businesses can select and implement a solution without outside
assistance. If you think your organization is prepared to do it alone, ask yourself the following questions:
;
;
;
;
;
;
;
;
;
;
Performing a needs analysis and selecting a solution is a full time job. In addition to
their day-to-day functions, does your staff have the time to do the job without cutting
corners?
A successful solution requires a project leader or “quarterback”. Do you have an individual with the technical expertise and authority across departments to make the project happen?
A solution requires an intimate knowledge of hardware, operating systems, and application software. Does your staff have the appropriate certifications and in-depth
knowledge in each of these areas?
Application software can not be judged by looking at its feature set and making a
choice. Does your staff have the time and experience to examine all the important
facets of competing products to make the right selection?
Does your staff have the communication skills and time to train your end-users in the
use of the solution?
Are you willing to be over budget, over time and have an under-performing system?
What happens to your project if the quarterback or key member of the project team
leave?
What are the lost business opportunity costs because key members of your organization are spending time selecting and implementing a solution?
Once a solution is selected, who will perform the data conversion and required data
entry?
Who will answer your questions, solve problems, and provide ongoing support?
How to Select a Solution Provider — Complements of Clients First Business Solutions
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d.
The Cheapest Solution is the Best
Your heart and brain are vital organs in the human body. If you required surgery on one
of these organs, would you interview three doctors and then select the cheapest?
Business automation is a vital part of an organization’s productivity and success. Measure
price in terms of a firm’s knowledge, experience, professionalism, and depth of resources.
Selecting a Solution Provider based upon price is equivalent to selecting the cheapest surgeon. In the long run, the cost of a poor solution is substantially more expensive than doing
it right the first time (see Purchasing Criteria in the Introduction section).
e.
My Friend or Family Told Me to Buy It
Although family and friends want to help, they rarely have the knowledge and experience to
select a total business solution. Understanding computers or an aspect of automation does
not make someone an expert. Beware of recommendations unless you’re dealing with an
expert. Also ask them to guarantee, with their own money, that their recommendations will
work and solve your business problem.
f.
Don’t Buy Sex Appeal!
Today many products have graphical user interfaces that look really slick. Evaluating a
software product requires looking under the hood. Compare features, design, reporting, integration, performance, and usability. Don’t get caught up in the sex appeal a product
shows on the surface. Compare products based upon the overall feature set as it relates to
your needs and requirements. Don’t get hung up on a single feature unless it is critical.
Don’t lean toward a product because it has great features you will never use.
How to Select a Solution Provider — Complements of Clients First Business Solutions
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g.
Beware the “Demo Trap”
Just like that famous old saying, “You can’t tell a book by its cover”, it has become clear to
knowledgeable software users and Solution Providers that the same thing can be said about
the software demo.
Over the course of the last 15 years many people have come to believe that looking at a
software demo will help them choose the best software package. Unfortunately, time has
proven that as well as confusing clients; choosing software based on a flashy demo can be
an expensive mistake.
There are dozens of factors involved in choosing the best software for the job; the least important of which is the graphical user interface or “the demo”. Many Solution Providers still
rely on this technique when trying to convince the prospective buyer that they have the right
software for the job. They will demo their product, rather than focusing on more important
issues such as:
What is the design and architecture of the software?
Is the software current? How new is it?
Will this software work harmoniously with your current network?
Will your users be able to use it?
Will the software be able to grow with you as you scale?
How to Select a Solution Provider — Complements of Clients First Business Solutions
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h.
Get References
Once you are comfortable with the Solution Provider, you should contact at least one of their existing clients to talk about how they feel about the Solution Provider. It is important to be considerate
of the time when calling a reference; it is also important to have some structure to the questions you
ask. Remember that it is unlikely that the Solution Provider gave you the name of an unhappy customer so it is important to ask questions that are of concern to you. The following chart contains
our top 10 reference questions.
Score = Response x Weight
Example: Question 1. If you answered 1 - 3 yrs. Your response is 5 x weight 1 = Score of 5
Question
1. How long have you been working with this
particular Solution Provider?
2. Have they done everything they said they
would?
3. What are the project managers, consultants and tech support people like to deal
with?
4. What are the other departments like to
deal with?
5. Did they deliver the project on time as per
the project plan agreed upon in advance?
6. Did they deliver the project on a fixed price
contract (or exactly on budget)?
7. Did you get all of the functionality you
were promised?
8. Did they show up on time as promised to
perform their services?
9. How quickly and professionally has the
Solution Provider addressed the project
and tech support challenges?
10. How satisfied are you?
Response
> 3 yrs
1 - 3 yrs
< 1 yr
Yes
No
Excellent
Good
Below Average
Excellent
Good
Below Average
Yes
No
Yes
No
Yes
No
Yes
No
> 4 hours
4 - 8 hours
< 8 hours
Very
Average
Not very
Weight
=
=
=
=
=
=
=
=
=
=
=
=
=
=
=
=
=
=
=
=
=
=
=
=
=
10
5
1
10
1
10
5
1
10
5
1
10
2
10
2
10
2
10
2
10
8
1
10
5
1
Score
1
3
3
1
3
3
3
2
3
2
TOTAL SCORE
How to Select a Solution Provider — Complements of Clients First Business Solutions
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3
KEY SELECTION CRITERIA
a.
Selecting a Software & Solution Provider
Any selection of software should include the 6 critical phases of system selection and deployment. It has been estimated that for every $1 a company spends performing preselection and deployment analysis with a Solution Provider, they save approximately $5 during the implementation phase of the project. The reason for this is simple; the better we
plan and the more we know, the fewer the surprises and over runs. With the average success rate of application implementation resting at a mere 28%, you cannot be too careful in
this process.
Phase 1
Project Team
Prior to embarking on the journey of software selection your company should
create a project team. It is essential that this team include an Executive
Sponsor, someone high enough in the organization (i.e. CFO, VP of Finance
or CEO) to cut across departmental lines and deliver the executive’s view of
the system. Remember this; at the end of the day the executives of your
business are going to base crucial business decisions on the information contained in the system. Therefore, if they are not involved early on in the project the result is usually a challenged project (over budget, over time and reduced functionality), and the project team takes the blame for the challenges.
Other critical members of the team are users from the various departments
that may be using the system, as well as any technical representatives. Your
CPA may also need to be included if he or she requires specific reporting during tax time or for audit purposes.
Phase 2
Needs Definition and System Evaluation
Through interview and observation techniques, critical system information is
gathered with respect to your present data flow and system requirements.
The developed list of critical requirements should be reviewed against your
present system. The gap between what you are currently using and what you
ultimately require should be evaluated, using various reporting tools and requirements checklists specifically for this purpose.
Who pays for this service? You, the customer.
Average investment? This depends on the size and scope of your business
but it could range from $2,000 to $40,000. Consult with your Solution Provider for an estimate and expected benefits.
How to Select a Solution Provider — Complements of Clients First Business Solutions
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Phase 3
Negotiation and Contract
Working with your Solution Provider, you should arrange to see the best two
software options for your business. A demonstration script should be in place
prior to viewing the software, along with a weighted score card for each of the
people on your selection committee. This will ensure an unbiased evaluation
of the software. The vendors will provide a quote for the required software
and implementation services. Hardware vendors will be contacted for quotes
once the software solution has been determined.
Who pays for this service? Typically the Solution Providers and customer
agree to share in this investment.
Average Investment? $2,000 - $10,000
b.
Phase 4
Installation and Training
This phase involves the installation of the hardware and software, testing of
back-up and recovery procedures and training of staff on the basic use of the
system. It also involves a pilot project to “mock-up” the accounting software
with limited data. This mock-up is used to test procedures and reporting requirements prior to going live.
Phase 5
Data Conversion and Procedures Documentation
In this phase, the conversion of data is addressed. The decision as to
whether this process is electronic or manual is decided. The development of
a detailed procedures manual is completed prior to the system going live.
Phase 6
Cut-Over and Parallel Testing
Cut-over to the new system must be planned based on the expected cut-off
date. Any parallel testing that is deemed necessary is finished prior to cutover. We would not expect parallel testing to be significant.
Beware of the Perfect Solution
A perfect solution rarely exists. Off-the-shelf software, without modification, generally meets
60 to 80% of an organization’s requirements. The final 20 to 40% of your requirements that
aren’t met, is where you will spend much of your time and money. Anyone can give the out
of the box answer. Beware of any Solution Provider that claims to have a perfect solution without modifications or work-arounds! Focus on unique areas of your industry and
business. Examine how the software addresses these needs.
Customizing software can be expensive but sometimes necessary. If required, know the
cost of each customization and how it will work before you purchase. Can the Solution Provider design and program the customization or must they use an outside subcontractor?
What is the relationship between the Solution Provider and subcontractor? What happens
to your customized software if the subcontractor or Solution Provider goes out of business?
Remember 4 out of 5 small businesses fail! As the software manufacturer enhances the
software, how much will it cost to re-apply your modifications?
How to Select a Solution Provider — Complements of Clients First Business Solutions
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c.
Size of the Organization
The size of the Solution Provider is directly proportional to the quantity and quality of service
they can deliver. Quantify the number of employees that are directly involved in business
automation. Do not count outside subcontractors or people doing unrelated functions. Divide the total number of active clients by the total number of employees directly involved in
business automation to calculate the average number of clients serviced by each employee.
Ask how service and support is affected when employees are sick or on vacation. Ask how
long these employees have been with the firm.
How Many:
d.
Project Managers
____________
Consultants
____________
Systems and Hardware Engineers:
____________
Trainers and Support People:
____________
Software Developers:
____________
Sales People:
____________
Administration:
____________
(A) Total:
____________
(B) No. of Clients:
____________
Avg. Clients per Employee (B/A):
____________
Length of Time in Business
Solution Providers in business longer than five years are generally more stable and likely to
continue in business. Evaluate how long the firm has been established and what their
growth has been over their length of time in business. Beware of small firms with less than
five employees in business less than two years.
e.
Size of the Solution Provider’s Client Base
The size of the Solution Provider’s client base is directly related to the success of the firm
and its level of experience. Considering the profile of the client base is more important,
however, as it relates to your industry and company size. Compare your industry, annual
sales, and number of employees to similar clients of the Solution Provider. If you find three
or more profiles similar to yours, it increases the probability of a successful implementation.
How to Select a Solution Provider — Complements of Clients First Business Solutions
9
f.
Hours of Operation
What are your hours of operation as compared to the support hours of the Solution Provider? Obtain the following information from the Solution Provider:
Business Operation:
Mon to Fri
Sat
Sun
__________ to __________
__________ to __________
__________ to __________
Mon to Fri
Sat
Sun
__________ to __________
__________ to __________
__________ to __________
Mon to Fri
Sat
Sun
__________ to __________
__________ to __________
__________ to __________
Hardware Support:
Software Support:
Note: Use this information for section “E” on page 20.
g.
Employee Profiles
Company and employee profiles show the years of experience and depth of knowledge a
firm has acquired. Request these profiles from each prospective Solution Provider and use
them as tools for comparison.
How to Select a Solution Provider — Complements of Clients First Business Solutions
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h.
Breadth of Business Services
To objectively recommend a solution, the Provider must have a broad range of knowledge and expertise. You need to decide if you want to work with multiple Solution Providers or one that can do
the entire job. When more than one Provider is involved, be sure there is a clear understanding of
everyone’s responsibility. Finger pointing is common in business automation due to the complexity
of the solution. If possible, work with one Solution Provider that has the breadth of services to do
the complete project. Typical services include:
APPLY YOUR OWN WEIGHTING BASED ON YOUR PROJECT
1 = Not Important
2 = Important
3 = Very important
Assign a weight to each listing, relating to its importance in your project. Mark yes or no (+ / -) as it
applies to the solution provider you are examining. Calculate each listing’s score. The solution
provider with the highest total score provides the best breadth of business services in relation to
your project.
Weight
(1 – 3)
Yes (+)
No (-)
Score
BUSINESS AUTOMATION SOFTWARE
Accounting & Financials
Distribution, Warehousing, Shipping
Manufacturing
Job Costing
Sales Automation and Contact Management
Customer Service
Office Automation
CUSTOM PROGRAMMING
Application Design and Programming
Custom Software Modifications
TRAINING, SUPPORT, CONSULTING
On-Site
Classroom
Telephone and Dial-up
OPERATING SYSTEMS
Novell NetWare
UNIX
Microsoft NT Server
Windows 95, NT workstation, Windows 3.11, DOS
COMMUNICATIONS
Remote Communications
Wide Area Networking (WAN’s)
Multiplexers and Modems
INSTALLATION & CABLING
TOTAL SCORE
How to Select a Solution Provider — Complements of Clients First Business Solutions
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i.
Measuring Customer Satisfaction
Firms focused on customer satisfaction have programs in place to measure their effectiveness. Ask the Solution Provider how they measure customer satisfaction. Ask for letters of
recommendation, surveys, a vision statement, and other instruments that prove the firm’s
commitment to their clients. The relationship between you and the Solution Provider is longterm. Select a partner who displays their desire and commitment to this relationship.
j.
On-site Client Visit
Once a clear solution is proposed, arrange an on-site visit to a Solution Provider’s client. Insist on a client that is similar in size and industry. Make sure the hardware, operating environment, software, and transaction volume are similar to those proposed for your organization. Make a list of questions to ask the client. Explain to the Solution Provider that you
would like to spend some time alone with the client. This way the client will not feel intimidated by the Provider when you ask sensitive questions.
k.
Comparing Rates and Negotiating
When comparing price between Solution Providers, you must be certain to compare “apples
to apples”. There are large gray areas in proposals and making comparisons is often difficult. We have all heard the saying that “You get what you pay for.” This is certainly a true
statement when it comes to business automation. Break down the cost of your proposals to
hardware, software, installation, training, support, conversion, and custom programming.
Try to get to a common denominator so components can be compared equally. Insist that
your Solution Provider do an on-site proposal review. You can only attempt to understand
proposal differences if you take the time to fully understand what is going to be delivered.
Ask the Solution Provider if any hidden costs or additional items are not listed in the proposal. Are they willing to state in writing that there are no additional costs?
When comparing hardware, networking, and multi-user solutions, list the components sideby-side. There are significant differences between quality and cost of brand name equipment compared to clones and non-brand names. Make sure you understand what you’re
getting for your money.
Do not focus on the absolute cost of any given item, but rather, analyze the total cost of the
solution. Some Solution Providers charge less on some items and more on others. The total delivered cost is what is important.
The cost of services is much harder to compare. Are you concerned with the cost of a
doctor performing surgery or his expertise and successes? Firms with more people
and experience will always be more expensive than small firms or independent consultants.
Evaluate a firm’s breadth of service, expertise, professionalism, and references as part of
the cost equation.
If there are large cost differences between one Provider and another, understand and discuss the differences. If one car dealer is selling an automobile for $35,000, and another the
same car for $25,000, there is either a big miscommunication or something is very wrong.
Most likely we were not comparing apples to apples.
How to Select a Solution Provider — Complements of Clients First Business Solutions
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Comparing Rates and Negotiating
(continued)
If one Solution Provider claims that they can train you in 20 hours and another says it takes
40 hours, is there really a price difference? In this case compare their hourly rates, but
make sure you’re not being “low-balled”. You might want to check with references to see
how much time they needed for training and implementation.
There are many alternative solutions at various price points. If you have a specific budget,
share the information with the Solution Provider. Solutions are individually designed, enabling you to achieve different levels of solution at different prices. If you describe your
needs and requirements to a Provider and the end result is a $100,000 solution when you
have a $25,000 budget, everyone has wasted time. Be realistic about your goals in relation
to your budget.
Before you get too far along in the budgeting process, do some homework with one of the
Solution Providers to help establish the budget. Only having $25,000 is one thing, but if you
set the budget without any experience in what it takes to implement a client server financial
system then you have done your company a terrible disservice.
Don’t be insulted when a Solution Provider refuses to negotiate price. Most professional
firms do not inflate their proposals to leave room for negotiation. Both you and the Solution
Provider must feel the project will be done at a fair price, or it is likely that there will be short
cuts taken along the way.
How to Select a Solution Provider — Complements of Clients First Business Solutions
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Sample System Cost Summary
Quantity
Extended Price
A. One Time Software License Fees
Application Modules (please identify):
1.
2.
3.
4.
5.
6.
7.
8.
9.
Server License Fees:
Client or Database License Fees:
LAN
Database
Other software required to deliver your proposed solution
(Fax Server Software, OLAP tools, Crystal Reports,
FRX,etc.)
1.
2.
3.
4.
Total One-time Software License Fees:
B. Annual Costs
Are there any factors that would affect the above software
license fees (up or down)? If so, please identify them:
C. Software Maintenance Fees
1. What are the ongoing annual maintenance fees associated with purchasing the above software licenses?
2. Are there any other on-going fees associated with your
solution?
TOTAL 1ST YEAR INVESTMENT (add sections A – C)
How to Select a Solution Provider — Complements of Clients First Business Solutions
14
Implementation Fee Estimate
ITEM
FEES
NOTES
Project Planning & Preparation
$ ___________
Detailed Design (Functional & Technical)
$ ___________
Software Adaptation
Design of Adaptation
$_________
Creation of Tables
$_________
Creation of Forms
$_________
Programming
$_________
Quality Testing
$_________
Documentation
$_________
Installation
$_________
Training
$_________
Total Estimate for Adaptation
$ ___________
Security Definition and Set-up
$ ___________
Legacy Interface Development
$ ___________
Desktop Interface Development
$ ___________
Data Conversion
$ ___________
Computer Telephony Integration
$ ___________
Infrastructure & Installation
$ ___________
Documentation (System)
$ ___________
Documentation (User)
$ ___________
Systems Testing
$ ___________
Project Management
$ ___________
Other Fees
$ ___________
(Please Itemize)
TOTAL
$ ____________
Note: Please identify any factors which will significantly affect these estimates (up or down).
How to Select a Solution Provider — Complements of Clients First Business Solutions
15
Training Fee Estimate
ITEM
FEES
User Training Manuals
$ __________
User Training Fees
$ __________
Help Desk Training Fees
$ __________
DBA Training Fees
$ __________
Other Training Fees
$ __________
NOTES
(Please Itemize)
TOTAL
$ ___________
Are there any other fees associated with this project that are not included in any of the worksheets
above? If so, please identify them below.
How to Select a Solution Provider — Complements of Clients First Business Solutions
16
4
SUMMARY
Business automation is an involved and demanding process that will affect all areas within your
business for the next 5 to 10 years. Selecting the right Solution Provider will make the difference between a successful business automation system that enhances all your business processes and a system that fails and leaves you with an expensive nightmare.
Selecting the right solution provider is more important than selecting the right hardware,
operation system, and application software.
The Solution Provider you select will become a valuable asset and long term partner. Choose
your partner wisely, follow the steps outlined in this document and use the “Comparison Scorecard” – this will assure your business the successful result you want.
If you have any thoughts or comments concerning this document or the information presented,
please contact me.
Good Luck & Success,
Sheldon D. Kralstein
Success Driven By Technology LLC
Telephone: 732.970.1100
Email: [email protected]
Web: www.sdbt.com
© Copyright 1995-2003 Success Driven By Technology LLC and SalesWorks, Inc.
All Rights Reserved.
Clients First Business Solutions
281 Highway 79
Morganville, NJ 07751
Tel
Fax
866.677.6290
732.970.1100
Email [email protected]
Web www.clientsfirst-us.com
How to Select a Solution Provider — Complements of Clients First Business Solutions
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5
SOLUTION PROVIDER COMPARISON SCORECARD
Solution Provider Scorecard – Part 1
Scores
1 = NO
2 = YES
Weights
1 = Useful
2 = Important
3 = Critical
Scoring:
The Weight multiplied by the SP Score will give you the SP Total.
SP = Solution Provider
A. Solution Selling
Weight
The Solution Provider asked questions about our organization,
rather than just trying to sell their product
2
The Solution Provider offered solid answers and work-arounds
for needs that cannot be met by their solution
2
The Solution Provider suggested a diagnostic of at least 8-40 hours
to analyze requirements, demonstrate the software and discuss the solution
3
The Solution Provider is willing to do a proposal review
1
The Solution Provider quoted on the items they determined were required
for the success of the project.
3
SP 1
Score
SP 1
TOTAL
SP 2
Score
SP 2
TOTAL
SP 3
Score
SP 3
TOTAL
SP 1
Score
SP 1
TOTAL
SP 2
Score
SP 2
TOTAL
SP 3
Score
SP 3
TOTAL
Section A Subtotal
B. The Solution
Weight
The Solution will adequately meet our organization’s unique needs
with minor modifications
2
The Solution Provider designs and customizes the software (not outsourced)
2
Section B Subtotal
How to Select a Solution Provider … Compliments of Clients First Business Solutions
18
Solution Provider Scorecard – Part 2
Scores
1 = NO
2 = YES
Weights
1 = Useful
2 = Important
3 = Critical
Scoring:
The Weight multiplied by the SP Score will give you the SP Total.
SP = Solution Provider
C. References
Weight
The Solution Provider has a reference list of at least 6-8 satisfied customers
3
The Solution Provider has at least 3 customers with company profiles
similar to our organization’s
2
SP 1
Score
SP 1
TOTAL
SP 2
Score
SP 2
TOTAL
SP 3
Score
SP 3
TOTAL
SP 1
Score
SP 1
TOTAL
SP 2
Score
SP 2
TOTAL
SP 3
Score
SP 3
TOTAL
SP 1
Score
SP 1
TOTAL
SP 2
Score
SP 2
TOTAL
SP 3
Score
SP 3
TOTAL
Section C Subtotal
D. Length of Time in Business and Number of Employees
Weight
The Solution Provider has been in business for over 5 years
3
The Solution Provider has more than 4 employees (not including subcontractors)
3
The Solution Provider has enough employees to provide us with adequate service
2
Section D Subtotal
E. Hours of Operation
Weight
The Solution Provider’s hours of operations meet our requirements
1
The Solution Provider’s response time is adequate
3
The Solution Provider responds to emergencies adequately
3
The Solution Provider handles after-hours and weekend support adequately
1
Section E Subtotal
How to Select a Solution Provider … Compliments of Clients First Business Solutions
19
Solution Provider Scorecard – Part 3
Scores
1 = NO
2 = YES
Weights
1 = Useful
2 = Important
3 = Critical
Scoring:
The Weight multiplied by the SP Score will give you the SP Total.
SP = Solution Provider
F. Solution Provider Facility Visit
Weight
The people who will support our account are patient, courteous and professional
2
The organization presents a professional image
2
The facility is neat and well organized
2
The organization is automated
2
The Solution Provider has methods in place for staying current on technology
3
The Solution Provider has methods for measuring customer satisfaction
3
The Solution Provider handles support requests adequately
3
There are remote support capabilities at the facility
2
There is a training facility
2
There is a conference room
1
The Solution Provider has won awards that demonstrate success
2
The Solution Provider belongs to a business organization
1
The Solution Provider displays manufacturer credentials
2
The facility has in-house computers and operating systems similar
to those of our organization
3
SP 1
Score
SP 1
TOTAL
SP 2
Score
SP 2
TOTAL
SP 3
Score
SP 3
TOTAL
Section F Subtotal
How to Select a Solution Provider … Compliments of Clients First Business Solutions
20
Solution Provider Scorecard – Part 4
Scores
1 = NO
2 = YES
Weights
1 = Useful
2 = Important
3 = Critical
Scoring:
The Weight multiplied by the SP Score will give you the SP Total.
SP = Solution Provider
G. Breadth of Services
Weight
The Solution Provider provides hardware services
1
The Solution Provider provides operating system services
3
The Solution Provider provides communications services
2
The Solution Provider provides services for business automation software
2
The Solution Provider provides custom programming services
2
The Solution Provider provides training and support
3
The Solution Provider provides installation and cabling
1
SP 1
Score
SP 1
TOTAL
SP 2
Score
SP 2
TOTAL
SP 3
Score
SP 3
TOTAL
Section G Subtotal
GRAND TOTALS (add sections A – G)
How to Select a Solution Provider … Compliments of Clients First Business Solutions
21
6
READINESS ASSESSMENT SCORECARD
Readiness Assessment Scorecard - Part 1
Scoring:
The Score multiplied by the Weight will give you the total Weighted Score.
Each section is subtotaled (your score will determine your readiness for that particular area)
Most important, the section score will highlight risk areas where you need to do some work
prior to (or simultaneously with) moving forward with the Business Automation system.
A low score indicates a risk area that needs attention prior to moving forward.
A high score indicates low risk and a readiness to move forward with the project.
Scores
1 = Strongly Disagree
2 = Disagree
3 = Neutral
4 = Agree
5 = Strongly Agree
Score
(1-5)
A. Internal Organizational Readiness
Weight
Weights
1 = Useful
2 = Important
3 = Critical
Weighted
Score
Total
Possible
Key members of our organization have the time required to provide information
to the chosen Solution Provider
3
15
There is a prioritized list of each department’s needs and requirements
2
10
There is a wish list for each department
1
5
There is a flowchart of how information is shared between departments
2
10
There is a current data collection system in place
2
10
Organizational goals are established
3
15
Transaction volumes data is available
1
5
Financial data required by accounting, auditing and banking firms is available
2
10
There are reports available for management and day-to-day operations
3
15
In-House systems and desktop applications are integrated
1
5
Section A Subtotal
How to Select a Solution Provider … Compliments of Clients First Business Solutions
100
22
Readiness Assessment Scorecard - Part 2
Scoring:
This section requires that you make an overall assessment of the executive management
team’s goals and commitment to the project. Assign one score for each item on the scorecard. If you receive four different answers to a question, then a high score cannot be given
(for example: The project scope is not clearly defined if the executive management team
doesn’t agree on it). If interviewees have difficulty answering a question then a low score
should be given for the related scorecard item(s).
Scores
1 = Strongly Disagree
2 = Disagree
3 = Neutral
4 = Agree
5 = Strongly Agree
Score
(1-5)
B. Executive Management Goals & Commitment
Weight
Weights
1 = Useful
2 = Important
3 = Critical
Weighted
Score
Total
Possible
The scope of the project is clearly defined
2
10
The goals for the project are clearly defined
3
15
Goals have been translated into measurable benefits
3
15
A Business Case/ROI has been completed
1
5
There is a "Killer App" for Management
3
15
There is a high degree of urgency
1
5
Executive Managers agree the project is a priority
2
10
Executive Management is committed to the project
3
15
Executive Manager goals are consistent with each other
1
5
Executive Manager goals are compatible with each other
3
15
Executive Management will be users of the proposed system
1
5
There is an Executive Management sponsor of the project
3
15
There is an allocated budget for the project
3
15
Section B Subtotal
How to Select a Solution Provider … Compliments of Clients First Business Solutions
145
23
Readiness Assessment Scorecard - Part 3
Scoring:
Each Department should be scored individually based on the responses of the
individuals from each department.
Scores
1 = Strongly Disagree
2 = Disagree
3 = Neutral
4 = Agree
5 = Strongly Agree
Score
(1-5)
C. User Environment (Complete for each User Department)
Weight
Weights
1 = Useful
2 = Important
3 = Critical
Weighted
Score
Total
Possible
Controller / Administrative Support
The individuals in this department are experienced at their work
1
5
The individuals in this department feel they will benefit from the system
2
10
There is a "Killer App" for this group of users
3
15
The individuals in this department are willing to learn new system
1
5
The individuals in this department are experienced at their work
1
5
The individuals in this department feel they will benefit from the system
2
10
There is a "Killer App" for this group of users
3
15
The individuals in this department are willing to learn a new system
1
5
The individuals in this department are experienced at their work
1
5
The individuals in this department feel they will benefit from the system
2
10
There is a "Killer App" for this group of users
3
15
The individuals in this department are willing to learn a new system
1
5
The individuals in this department are experienced at their work
1
5
The individuals in this department feel they will benefit from the system
2
10
There is a "Killer App" for this group of users
3
15
The individuals in this department are willing to learn a new system
1
5
Payables & Receivables
Order Processing
Warehouse & Inventory Controls
Section C Subtotal
How to Select a Solution Provider … Compliments of Clients First Business Solutions
140
24
Readiness Assessment Scorecard - Part 4
Scores
1 = Strongly Disagree
2 = Disagree
3 = Neutral
4 = Agree
5 = Strongly Agree
Scoring:
The Score multiplied by the Weight will give you the total Weighted Score.
Weights
1 = Useful
2 = Important
3 = Critical
D. Technical Environment
Objective
To determine the organization’s technical readiness and the MIS department’s attitude toward the new Business
Automation initiative. In addition, a number of questions about the technical environment at the company are asked,
to be used in later sections.
Score
(1-5)
Weight
Weighted
Score
Total
Possible
The MIS Group agrees the project is a priority
3
15
The MIS Group has a vested interest in the project
1
5
The MIS Group has the bandwidth to support the project
2
10
The MIS team has implemented a C/S financial system before
1
5
Data ownership is defined
1
5
The data is clean
2
10
Section D Subtotal
50
E. Goal Alignment
Methodology
Analyze all the responses from the interviews in Sections B, C and D to determine if all parties have
similar or compatible goals for the project.
Executive Management & User Group goals are consistent
1
5
Executive Management & User Group goals are compatible
3
15
Executive Manager Goals are in alignment with MIS Group
2
10
Section E Subtotal
How to Select a Solution Provider … Compliments of Clients First Business Solutions
30
25
Readiness Assessment Scorecard - Part 5
Scores
1 = Strongly Disagree
2 = Disagree
3 = Neutral
4 = Agree
5 = Strongly Agree
Scoring:
The Score multiplied by the Weight will give you the total Weighted Score.
Weights
1 = Useful
2 = Important
3 = Critical
F. Organizational Culture
Objective
To assess the organizations adaptability and propensity for risk and change. In addition, to determine if there
are any upcoming events which would affect the success of the Business Automation project.
Methodology
Interview with Executive Sponsor or Project Leader.
Score
(1-5)
Weight
Weighted
Score
Total
Possible
Our organization is forward thinking about technology
1
5
Our organization is comfortable taking technology risks
1
5
The organization is adaptable and flexible
1
5
There are no planned reorganizations in the near future
1
5
There are no planned acquisitions in the near future
1
5
Section F Subtotal
25
G. Existing Controls and Procedures
Objective
To determine how formalized and effective existing processes are.
Existing controls and processes are established and documented
3
15
Existing controls and processes are widely adopted and followed
2
10
Existing controls and workflow are effective
2
10
The audit firm has signed-off on controls and processes
1
5
This project will support and/or enhance current processes
2
10
Section G Subtotal
How to Select a Solution Provider … Compliments of Clients First Business Solutions
50
26
Readiness Assessment Scorecard - Part 6
Scores
1 = Strongly Disagree
2 = Disagree
3 = Neutral
4 = Agree
5 = Strongly Agree
Scoring:
The Score multiplied by the Weight will give you the total Weighted Score.
Weights
1 = Useful
2 = Important
3 = Critical
H. Training
Objective
To assess the organization’s overall commitment to training and to determine if sufficient training will be provided to
support the Business Automation project.
Methodology
Interview with the Project Leader and/or internal technology-training department.
Score
(1-5)
Weight
Weighted
Score
Total
Possible
Our organization is committed to Training
3
15
The department responsible for Training is defined
2
10
A Training Plan for this project is in place for MIS
2
10
A Training Plan for this project is in place for Help Desk
2
10
A Training Plan for this project is in place for Users
2
10
Section H Subtotal
I.
55
Project Team
Objective
To determine if the organization has already selected a project team and if the project team consists of good
Representation from all interested departments.
Methodology
Interview with the Executive Sponsor or Project Leader.
The Project Team has been Defined
3
15
The right people are on the Project Team
2
10
The selected Project Team will have sufficient time for the project
3
15
The Project Team has experience implementing a financial system
1
5
Section I Subtotal
How to Select a Solution Provider … Compliments of Clients First Business Solutions
45
27
Readiness Assessment Scorecard - Part 7
Scoring:
The Score multiplied by the Weight will give you the total Weighted Score.
Add the section subtotals for your Grand Totals. The grand total will indicate
your level of readiness to proceed with this project. A low score indicates there
are areas that need to be addressed before proceeding with this project. A high
score indicates that your company is ready to move forward with the project and
can expect a successful implementation.
Scores
1 = Strongly Disagree
2 = Disagree
3 = Neutral
4 = Agree
5 = Strongly Agree
Weights
1 = Useful
2 = Important
3 = Critical
J. Project Timing
Objective
To understand the expectations regarding project timing and scheduling and to highlight any potential problems.
Methodology
Interview with Executive Sponsor or Project Leader.
Score
(1-5)
Weight
Weighted
Score
Total
Possible
Desired Start Date has been defined
1
5
Desired Live Date has been Defined
1
5
Desired Deployment Date has been defined
1
5
There is sufficient flexibility in these dates
3
15
Section J Subtotal
30
K. Realism
Objectives
To assess how realistic the project goals are, taking into consideration the organization’s current technical platform,
allocated budget, available resources and desired deployment date.
Allocated budget (if it exists) will be sufficient to meet project goals
3
15
The project Start Date is realistic
2
10
The project Live Date is realistic
2
10
The project Deployment Date is realistic
2
10
Section K Subtotal
GRAND TOTALS (add sections A – K)
How to Select a Solution Provider … Compliments of Clients First Business Solutions
45
715
28