Transcript EAM Selection

Enterprise Resource Planning
(ERP)
Selection
Presented by:
Masoud Shams Ahmadi
[email protected]
February 2007
EAM
ERPSelection
Selection
Vendor
Search
Decision
Establish
Team
Define
Reqmts
Ranking
Criteria
Prepare /
Issue RFP
1st Cut
Assessmt.
Detailed
Assessmt.
ERP Selection
• Establish Team:
– Scope of team(s) should include all work
streams and IT
– Deliverables:
• Project charter
• Milestone based schedule
• Responsibility matrix
ERP Selection
• Define Requirements:
– Guidelines:
• Process maps
• Requirement
templates
• other?
– Deliverables:
• Requirements docs.
• RFI (optional)
Initiate
Resources
Operations
W.O Mgmt.
Embedding
Equipment
Cost Allocation
PM
etc..
PdM
etc..
ERP Selection
• Vendor Search:
– User Groups
– Use consultant
knowledge
– Internet
– Others
ERP Selection
•
Ranking Criteria:
– Quantitative
– Covers EACH requirement as
well as “soft” issues:
Operations
• Vendor financial health
W.O Mgmt.
Initiate
• Stability
Resources
Embedding
• Longevity
Cost Allocation
• Referencability
etc..
Importance
Equipment
PM
PdM
etc..
Scoring
Criteria to
vendor
Vendor A
Vendor B
A
Vendor C
A
ERP Selection
• Prepare / Issue
RFP:
– Technical and
Functional
Requirements
– Client
responsibility to
get legal input
ERP Selection
• 1st Cut Assessment:
– Produce initial scores from RFP
results
– Overall Review of Responses
– Demonstration Scripts
– Reduce vendor list to 3
ERP Selection
• Detailed Assessment:
– Includes
•
•
•
•
•
Vendor references (business)
Site references (application focus)
Site visits
Vendor presentations
Additional Vendor demonstrations
– Scope to be tailored to Clients
budget/Requirements
ERP Selection
• DECISION:
– Process:
• Review latest scoring
• Proceed to negotiations with winner
but keep runner-up in picture
• Conclude negotiations and advise all
vendors
Factors to Consider in Selecting an ERP
System
Factors
Questions
Cost of technology
What are the start-up and
recurring costs?
Installation
What consulting assistance is
offered (time, cost)?
Interfaces
What interfaces are supported?
Upgradability
What is the frequency of
upgrades?
Computing environment
What is the computing
environment?
Personnel requirements
What expertise is needed for
design and implementation
(business analysts, consultants)?
Request For Proposal
(RFP)
What is an RFP?
An RFP is a standard tool used to purchase equipment and services
by promoting competitive proposals among suppliers.
The RFP becomes a vehicle that allows both the buyer and the
supplier to establish a dialogue and to work from the same set of
rules, requirements, schedules, and information. The opportunity to
have this dialogue is an important element in the process, because
RFP requirements are often not clear and the supplier is allowed to
question and interpret what is being requested.
Note: Proposals are a supplier’s interpretation of an RFP’s
requirements.
What is a successful RFP:
A successful RFP process requires us to do the following:
 Formally recognize a deficiency or need in current operations that could be
resolved through the purchase of systems, equipment or services
 Identify appropriate potential suppliers and solutions
 Gain visibility for internal acceptance of the identified need and potential
solutions
 Establish the project budget
 Develop a project schedule
 Organize project personnel
 Identify real requirements
 Develop evaluation criteria (Objective)
What is a less successful RFP:
A less successful process may include the following issues:
 Not enough time has been allocated for the RFP process
 Requirements unfairly limit the range of suppliers who may participate
 Requirements are not clearly defined
 Project deadlines are too short to allow suppliers to prepare proposals
 The project team has not been fully educated about available technologies
 A budget has not been established, or has been based on unverified data and
is not sufficient for the project
Note: Strong leadership, dedicated resources, and management
commitment are critical to a successful RFP and a successful relationship
with the chosen supplier.
What are the different types of
RFPs:
There are two different types of RFPs:
1.
Request for Information (RFI)
2. Request for Proposal (RFP)
Request for Information (RFI):
An RFI is a way for buyers to determine what is available from suppliers who
respond to its requirements.
It is also a way for the buyer to determine whether the requested requirements
are reasonable and whether appropriate technology is available.
The information from suppliers may help guide the subsequent RFP or
cause it to be cancelled if suppliers do not respond.
Note: An RFI is not a mandatory prerequisite to writing an RFP.
When do you consider writing RFIs:
RFIs may be considered when:
• The technology for the project is new to the industry or your company
• You would like to explore a variety of potential solutions
What are the different sections of
an RFP:
1. Project overview and administrative information
2. Functional and technical requirements
3. Management requirements
4. Supplier qualifications and references
5. Pricing
6. Contracts and licenses
7. Appendices
Administrative Section
The first section of the RFP is the administrative section. The purpose of this
section is to provide suppliers with a framework for their responses so that all
proposals received, present the same information and follow the same structure.
Contents:
The administrative section contains the following section:
1. Introduction and statement of the problem
2. RFP Schedule
3. Time and place to submit the proposal
4. Date of a bidders’ conference, if one is being held
5. Relevant dates for the procurement process
6. Requirements for preparing proposals
7. RFP contact names and addresses
8. Any other information suppliers may need in order to respond adequately
Requirements Section
The requirements section contains the requirements for what you are
buying,
The requirement section is the heart of the RFP and is where suppliers
should spend the most time initially.
Requirement Section
•
Vendors will “interpret” requirements if they are not clear.
•
Use an RFI if you can not determine whether products or services exist
for your project.
Note: The proposals received in response to an RFI should help you to
focus on:
1. The correct technology
2. The appropriate set of suppliers
Writing Requirements
There are always two parts to every requirement:
1. The requirement itself
2. The evaluation or measurement criteria
We may also argue for a third criteria, which may seem obvious but is
commonly overlooked. A product or service must exist in order to satisfy the
requirement.
3. The requirement must be feasible
Management Section
A supplier’s response to the RFP’s management section will clearly indicate
whether the supplier’s company has the requisite project management skills,
resources, and experience to be considered for the project. A supplier may
have developed the proposed functional and technical product but lack the
ability to develop and implement an effective management program.
Sections of a project management plan
The project management section typically requires, but it is not limited to
development of the following:
 Project Plan
 Site preparation plan and responsibilities
 Staffing requirements
 Design, development, and implementation
 Delivery and installation
 System acceptance test
 System Maintenance
 Training
 Documentation
Pricing Section
A successful RFP meets two basic requirements:
1 – Products or Services meet the requirements
2 - Product or Services fall within the projected budget
Notes:
It is critical to the evaluation of proposals to have pricing presented
in a consistent format.
Management Section
1. Project implementation and management services (include supplier
personnel who are on site)
2. Integration of unique hardware or software
3. Development or customization of the application
4. Installation
5. Acceptance testing
6. Maintenance
7. Training
8. Documentation
9. Project staffing
10. Facilities upgrades
Contract and License Agreements Section
Most RFPs request that suppliers include a copy of the following document:
 Purchase agreement
 Maintenance contract
 Warrant period
 Software license agreement
 Payment method
 Nondisclosure agreement