Conducting a Software Selection Process

Conducting a Software Selection Process

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Table of Contents

Introduction 3

Project Approach 4

Phase 1 – Startup and Preparation 5

Phase 2 – Business Requirements 6

Phase 3 – Recommendation 10

Summary of Deliverables 14

Project Schedule 16

Project Organization 17

Description of Roles and Responsibilities 18

The Litcom Approach 20

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Introduction

A typical software selection project will normally include, but is not limited to the following components:

• Clearly identified business processes, essential information, and functionality necessary to support the company’s future strategic and operational needs;

• Potential long list of vendors;

• Selection criteria;

• Gaps in functionality with the ‘best fit’ option, and clearly articulated remedial measures required to address these gaps;

• Interface or integration issues associated with the proposed solution;

• Resource requirements (people, budget, facilities, etc.) for the implementation phase of the project;

• Technical infrastructure required to support the new system;

• Business case to secure approval for implementation of the solution and to monitor benefits; and

• Implementation plan.

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Project Approach

The approach consists of three phases:

Phase 1• Start-up and Preparation

Phase 2

• Business Requirements

• Identify business improvement opportunities

• Prepare business requirements & Request for Proposal (RFP)

• Identify potential software vendors

Phase 3

• Recommendation• Evaluation of software vendors

• Conduct finalist vendor due diligence

• Prepare the business case and project charter

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Project Approach – Phase 1

Phase 1• Start-up and Preparation

This phase establishes the guidelines for the project, including organization, planning and confirmation of team members roles and responsibilities.

Main activities

• Define the project and its objectives• Develop risk assessment plan• Organize the project team• Approve the work plan• Conduct project kick off

Project start-up Project definition Plan developmentReview and approval of project and plan

Project kick off

Deliverables

• Project plan and risk management plan• Project charter• Kick Off Session Material

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Phase 2

• Business Requirements• Identify business improvement opportunities

• Prepare business requirements & Request for Proposal (RFP)

• Identify potential software vendors

The objective of this phase is to identify the business improvement opportunities and to document the business requirements in a “Request for Proposal” (RFP) document.

This phase consists of three major steps:

Project Approach: Phase 2 – Continued

Preparation of Functional demo scriptsIdentify Business Improvement Opportunities

This step is the cornerstone of the project. Its purpose is to define and analyze the major needs related to business strategy, operations information and functional requirements.

This process is based on work sessions with the client’s business and technology representatives to identify business process and technology improvement opportunities that result in measurable improvements to business performance.

Main activities

• Gather business strategy, operations information, functional and technology requirements

• Conduct facilitated sessions• Develop improvement opportunities

Deliverables

• Facilitated sessions materials• Business improvement opportunities

Identification of major needsTranslation of needs into

improvement opportunitiesReview and approval of

improvement opportunities

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Preparation of Functional demo scriptsPrepare Request for Proposal

The Request for Proposal is a document that is used to elicit bids from potential software vendors for a desired IT solution. The RFP specifies what the Client is looking for and establishes evaluation criteria for assessing proposals.

The RFP includes background on the issuing organization and its lines of business, the functional requirements that the solution must meet, and evaluation criteria that disclose how proposals will be graded.

Main activities

• Prepare request for proposal• Develop evaluation criteria

Deliverables

• Request for Proposal document• Non-disclosure agreement (mutual)• Vendor Evaluation Criteria

Prepare Request for Proposal

Develop Evaluation Criteria

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Screening of Package Solutions

Identify Potential Solutions

The objective of this step is the identification of 5-7 potential vendor solutions to receive the Request for Proposal document. This step involves conducting research and conducting qualification sessions with potential software vendors.

Main activities

• Conduct industry research• Conduct software vendor interviews• Select 5-7 potential vendors based on vendor viability,

industry fit, representative customers, etc.

Deliverables

• Identification of potential vendors

Conduct Research Conduct vendor interviewsReview and approval of the

selected vendorsDistribute NDA and RFP to

selected vendors


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Phase 3

• Recommendation• Evaluation of Software Vendors

• Finalist Due Diligence

• Prepare the Business Case and Project Charter

The objective of this phase is to assist the client in completing the

recommendation.


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Evaluation of Finalist Software PackagesEvaluation of Software Vendors

The objective of this step is the selection of a finalist. This step involves measuring the fit between the needs identified and the characteristics of the software packages retained.

Main activities

• Conduct questions and answers meeting with vendors (regarding RFP)

• Review vendor responses to RFP and select short listed vendors (3)

• Conduct vendor meetings (at Client site)• Demonstrate software solutions• Selection of a finalist

Deliverables

• Support materials for evaluation• Selection of short-listed vendors• Selection of a finalist

Conduct vendor Q&A

Review vendor RFP responses

Select short-listed vendors

Conduct vendor site

visits

Demonstrate software

Selection of a finalist

Review and approval of

finalist


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The objective of this step is to confirm the solution chosen in the previous step. This validation will be carried out by focusing on specific requirements for the

key selection criteria.

Conduct Finalist Vendor Due Diligence

Deliverables

• Finalist reference checks• Functionality gap assessment• Implementation timeline and effort

estimate• 5 year total cost of ownership

Main activities

• Conduct Vendor Reference Checks (2-3)

• Address functional requirements gaps (as identified from vendor RFP response and solution demonstration)

• Confirm software licensing and infrastructure costs.

• Conduct implementation planning session to confirm implementation cost and timeline.

Conduct vendor reference checks

Address functional requirement gaps

Confirm software licensing and infrastructure costs

Conduct implementation planning


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Prepare the Business Case and the Project Charter

Main activities

• Prepare business case• Prepare initial project charter • Prepare and present recommendation

The objective of this step is to document the business case and prepare the organization for the implementation of the solution.

Prepare the Business Case Prepare Initial Project Charter Present the Recommendation

Deliverables

• Business Case• Implementation Project Charter

Summary of Deliverables

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Phase Deliverable

1 Software selection project charter

1 Project plan and risk management plan

1 Kick off session materials

2.1 Facilitated session materials

2.1 Business improvement opportunities

2.2 Non-disclosure agreement

2.2 Request for Proposal (RFP) document

2.2 Vendor evaluation criteria

2.3 Potential software vendors

3.1 Support materials for evaluation

3.1 Selection of short-listed vendors (3)

3.1 Selection of a finalist

3.2 Finalist vendor reference checks

3.2 Finalist functionality gap assessment

3.2 Finalist implementation timeline and effort estimate

3.2 Total cost of ownership (5 years)

3.3 Business case

3.3 Implementation Project Charter

Summary of Deliverables – Continued

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Implementation Project Charter

The implementation project charter documents and communicates the project goals, objectives, scope, resources, cost / benefits, risks and milestones.

The Project Charter includes:1. EXECUTIVE SUMMARY

2. PROJECT DEFINITION

2.1 PROJECT PURPOSE AND GOALS2.2 STRATEGY2.3 SUCCESS CRITERIA

3. ROLES, RESPONSIBILITIES & ORGANIZATION

3.1 PROJECT ROLES

4. PROJECT COSTS & BENEFITS

4.1 PROJECT COSTS4.2 PROJECT BENEFITS

5. CONSTRAINTS, RISKS & ASSUMPTIONS

5.1 CONSTRAINTS5.2 RISKS5.3 ASSUMPTIONS5.4 CRITICAL SUCCESS FACTORS

6. PROJECT GOVERNANCE

6.1 PROJECT MILESTONES6.2 PROJECT PLAN6.3 PROJECT MONITORING & CONTROL

7. ACCEPTANCE & SIGN-OFF

Project Schedule

Waiting time - Dependent of Vendor’s commitment

Start-up and preparation

Business Requirements

• Identify Business Improvement Opportunities

• Prepare Request for Proposal

• Identify Potential Software Vendors

Recommendation

• Evaluation of Software Vendors

• Conduct Finalist Vendor Due Diligence

• Prepare Business Case and Project Charter

• Present Recommendation

Steering Committee Meeting

Weekly Status Meeting

Phases / Steps 1 2 3 4 5 76Weeks

8 9 10 11 12 13

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Project Organization

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Client’s Steering Committee

Sponsor

Project Managers

Core TeamExtended Team

Description of Roles and Responsibilities

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• Steering Committee

– Demonstrate top management commitment

– Provide guidance and oversight

– Conflict resolution, approve project resources and project team recommendations

• Sponsor

– Approve suggested changes and allocates the funds required for the project

– Control business items related to the project

– Resolve outstanding issues

– Ensure that resources are available

– Approve deliverables

• Program Management

– Define, plan, integrate, implement, control and report new business, technology, organizational and capital initiatives as approved and directed by the office of the President.

• Project Manager

– Manage and control day-to-day project activities

– Develop and maintain the project plan and the detailed plan

– Carry out formal reviews

– Bring up and solve outstanding issues

– Manage project budget

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Description of Roles and Responsibilities – Continued

Core Team & Extended Team:

• Business Representatives

– Provides knowledge with respect to the process and needs

– Represents users with respect to current and future processes

– Provides knowledge with respect to software packages available

• Technology Representative

– Ensures quality and compatibility of the planned system’s technology platform with the organization’s technological directions

– Approves the technological integration architecture

– Develops technical recommendations

– Documents the architecture of the required interfaces

– Approves the functional integration architecture

– Develops technical recommendations

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The Litcom Approach

For many organizations the success or failure of IT initiatives is based on the selection of the appropriate technology vendor. Despite the critical nature of this process, many organizations underestimate the time and effort it takes to make a well-informed decision.

For clients making new hardware and software decisions, Litcom provides independent advice and assistance. We have assisted our clients in evaluating and selecting enterprise wide business systems, as well as solutions for specific industry verticals, best of breed software applications and the hardware and network infrastructure required to support their business.

Litcom starts with defining our clients’ unique business and technical requirements. In gathering requirements we not only look at the way you do business at present but also help you see possibilities of process improvement with the assistance of our experienced professionals.

To learn how we can help your organization with its IT needs, please contact us at: [email protected].

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