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Improving
the IT Vendor Selection Process
Phase One: The Needs Assessment
By James A. Browning
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During
the past few economically challenging years, midsize
businesses (MSBs) have seen a broad portfolio of IT
product, service and solution offerings hit the midmarket.
While attractive from both a functionality and price
perspective, the abundance of options are also increasing
the difficulty of making technology and vendor selections.
Many IT executives are finding the strategic buying
process challenging. And too often vendor evaluation,
selection and negotiations are done in an environment
filled with vendor hype and internal politics, and slowed
by organizational inertia.
Gartner
recommends that MSBs use a three-phase approach when
evaluating and selecting critical technology and vendors.
This would entail a needs assessment, a vendor analysis,
and preparation for negotiations.
This
month we take a look at phase one, which focuses on
the internal needs and requirements of the organization.
At this point, the project team is selected, selection
methodologies are chosen, and requirements are defined.
Phase one typically takes two to four months depending
on the complexity and type of acquisition planned,
and includes these elements:
>Needs
Identification: an internal assessment of
the current functional, technical, and service and
support requirements.
>Requirements
Definition: a framework that includes the
mandatory requirements, valued requirements, and
"nice to have" requirements of the product
or service.
>Long-list
Creation: an information gathering process
to identify suitable vendors for inclusion in the
request for proposal (RFP) stage.
>RFP
Issuance: a 4-6 week process where the project
team drafts letters, paper and electronic versions
of the RFP and sends it to the "suitable vendors"
list.
>Bidder
Conference: this meeting via phone, in-person
or Web conferencing is to clarify the requirements
and responses requested from vendors.
>RFP
Addendum: includes any additional information
to accurately complete the RFP process, and may
result from the bidder's conference.
A
three-phase, structured approach can improve the technology
and vendor selection process. The Needs Assessment
is phase one – watch for phase 2: the Vendor
Analysis in the next edition of The Midmarket Report.
James
A. Browning is Vice President and Research Director
in Gartner Research, where he is part of the Small
and Midsize Business Research organization at Gartner,
Inc. Discuss your perspective with Mr. Browning one-on-one
at Midsize
Enterprise Summit this fall.
Reference
Article
Top View
An SMB Road Map for Selecting IT Vendors
Publication Date: May 13, 2003
Authors: Kenneth Chin and James A. Browning
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