When embarking on an ERP project, the initial step involves crafting proposals that play a crucial role in the selection process. These documents shed light on the financial aspects of an ERP implementation, outlining the costs associated with different facets of the process. Additionally, proposals provide insights into the extent of work required and project scheduling. They encompass legal stipulations related to software licenses and professional services, culminating in delineating the post-GoLive support. Regrettably, a significant portion of ERP proposals tends to be inadequate. Often lacking clarity, they fail to offer a comprehensive view of financial investments, personal contributions, and potential risks. Here are three recommendations for enhancing proposal quality.
Clarifying the Boundaries
Typically, ERP vendors outline the contents of their proposals by enumerating functionalities, modules, and functional domains. This is a positive start. Nevertheless, as a relatively inexperienced buyer, comprehending the full implications can be challenging. Assumptions in such cases can lead to considerable risks. Identifying the exact scope of coverage is paramount. Hence, requesting vendors to explicitly identify what functionalities and domains fall outside the scope is recommended.
This approach also has the advantage of deterring scope expansion during implementation.
Defining Responsibilities
A similar strategy should be applied when addressing professional services. While you undoubtedly require the expertise of your chosen implementation partner — encompassing project management, technical consultation, business advisory, change management, development, and training —understanding your role within these activities is imperative. To address this, urging vendors to present a comprehensive overview of all implementation-related activities, including post-GoLive support, is crucial. Additionally, advocating for a formal delineation of tasks — those managed by the vendor and those that fall within your domain — provides insights into capacity, cost, and required efforts from both parties.
Managing Risks
The third focal point pertains to project risks. Implementing new software invariably carries inherent risks, akin to the perils of neglecting ERP software modernization. These risks can be categorized as general and organization-specific. Leveraging the extensive experience of vendors by requesting a comprehensive risk analysis is advantageous. Engaging in detailed discussions with your preferred vendor on risk mitigation strategies prior to contractual commitments is equally crucial.
Enhancing the quality and relevance of your Request for Proposals empowers you with greater insights into your preferred vendor's proposal. Undoubtedly, these insights substantially bolster the prospects of project success!
