Selecting & Implementing a New System at Your Organization, Part 2 – In the thick of it: Requirements gathering & vendor selection
Let’s recap…
In part one of this series, we covered project governance and how to prepare for a system selection and implementation project before gathering requirements or assessing vendors. Ensuring your organization and team have a strong foundation and clearly defined goals is key for success when considering a new software or system. Key milestones include:
- Establish the right team for the project
- Identify which system(s) you need to replace or add to your tech suite with this project
After establishing the plan and project governance, your team is ready to embark on the next phase: discovery, vetting, and selection. This phase is when ideas turn into tangible deliverables and action! If you haven’t already engaged with a third-party advisor, now is a good time to consider it. Bringing in an experienced team will help keep your project on track and on budget. They will also serve as your champion throughout vendor management and contract negotiations.
Requirements gathering and discovery
After completing the milestones outlined in part 1, the next step is to gather the specific business needs for the new software. What are your pain points? What does your organization need from a new system to improve internal processes and adapt with evolving business goals? How can technology better support your team to achieve greater efficiency and utilization of their expertise? If you could wave a magic wand, what would you want to see in a future system?
Your internal or third-party advisors should lead you through categorizing your needs and wants and facilitating a series of “requirements gathering” sessions by department or functional area. The purpose of these sessions is to define all the functional needs and “nice to haves” for a new system. Documenting requirements ensures you choose a system that fits your needs, rather than relying on others’ opinions or reputation. Understanding your unique needs is crucial for finding the right system.
This information should be translated into a detailed requirements document to be leveraged throughout the project. By having a trusted partner supporting you through this process, all you need to do is bring your wants, needs, and ideas!
With your final requirements document in hand, it’s time to start researching systems and software solutions that could meet your needs.
Conduct research to build a list of ideally 5-7 potential solutions and vendors that fit your organization’s needs and requirements. This may or may not include your current vendor. If you are partnering with a third-party advisor, leverage their expertise and market knowledge to assure your list of options is tailored to your organization. They can also take on much of the legwork of research, which can be time consuming for your internal team.
Vendor outreach and selection
Before reaching out to the vendors you identified, you will need to develop a formal Request for Information (RFI) or Proposal (RFP) that provides an overview of your organization and finalized requirements for the solution. To receive the most thorough and helpful responses, make sure to ask for the following in your RFI/RFP:
- Responses to each individual requirement on your list with a detailed explanation of the vendor’s capability to meet those requirements with standard functionality.
- Information regarding customizations or workarounds that may be required or that they recommend, if standard functionality does not meet your outlined requirements.
- Details of the technical integrations their platform supports, and how they will meet the system and security needs that are critical to your current IT landscape.
When reaching out to vendors, set clear deadlines for proposal responses to hold vendors accountable and demonstrate the effectiveness of their communication and timely delivery of requests. The RFP process is the vendor’s opportunity to present their team and project approach, and for your organization to best understand how they will partner with and serve you.
Select your system!
After demos are complete and proposals have been submitted, draw comparisons between your finalists. Narrow down your list from vendor research and identify a few that stood out with their abilities, fit, and responsiveness. This is another area where the external perspective from a third-party advisor can be beneficial—they can help you assess vendors objectively based on quantitative and qualitative factors. For example, the BNN Business & Technology Advisory team uses a proprietary scoring system that allows our clients to have a unique view of how each product and vendor meets their functional needs and compares to one another.
This part of the process may happen over a few meetings and demos for each finalist you identify. This is okay! There is no benefit to rushing through the decision to save meeting and discussion time. The more familiar you can become during this phase, the better decision you will be able to make when you are ready.
In sight of the finish line
The final part of system selection involves contract review and negotiations. A third-party advisor is critical at this juncture, particularly in the negotiation process. It’s important that your team has a strong and positive working relationship with the vendor you select. A third-party advisor will help protect your direct relationship with the vendor while also advocating for and supporting your budgetary goals.
With negotiations behind you and the contract agreed upon and signed, you are ready for the next phase: implementation. We will cover this, go-live, and adoption in part 3!
If you would like to discuss project governance, selecting a new system for your organization, or any other topics in this post further, please contact Ilona Davis, Paige Ricci, or Lauren Hale.
BNN’s Business & Technology Advisory practice offers a suite of system selection and implementation services and can assist organizations of all sizes and across industries achieve operational, technological, and governance success. Get in touch with a member of our team to discuss what service or customized package could help you achieve your goals.
Disclaimer of Liability: This publication is intended to provide general information to our clients and friends. It does not constitute accounting, tax, investment, or legal advice; nor is it intended to convey a thorough treatment of the subject matter.
