© Copyright High Performance Concepts, Inc. 12 Criteria for Software Vendor Selection July 14, 2014 prepared by: Brian Savoie Vice President HIGH PERFORMANCE CONCEPTS, INC. 151 Village Parkway Building 6 Marietta, GA Phone: Fax:

© Copyright High Performance Concepts, Inc. 12 Criteria for Software Vendor Selection Business Benefit Achievement Cost and Terms Enthusiasm of Key Personnel Product & Vendor Risk Vendor Quality Assurance On-Going Support Vendor References and Reputation Vendor Financial Strength Implementation Ease of Implementation Implementation and Training Technology Functional Capabilities Technical Direction Ease of Integration

© Copyright High Performance Concepts, Inc. Benefit Achievement Can this software and vendor help you achieve the benefits you need? In what percentage of the installed base has this vendor “delivered on” the benefits? Is the vendor willing to put benefits in the contract? Pay for performance Schedule milestone achievement Make sure the customers of the software vendor have achieved real business benefits. $

© Copyright High Performance Concepts, Inc. Cost and Terms Cost is a major factor for most companies Payment terms often play a major role For multi-site, multi-license implementations, payment terms should reflect the use the company gets from the software –Buy as you implement –Pay as you buy Some movement toward pay for performance Linking payment to major milestones will assure that the vendor is with you all the way.

© Copyright High Performance Concepts, Inc. Enthusiasm of Key Personnel If a key leader has a strong preference among viable alternatives, then go with that vendor Funding of the purchase will go more smoothly Provisioning of resources will be made easier Leader is more likely to get personally involved Follow a knowledgeable leader.

© Copyright High Performance Concepts, Inc. Functional Capabilities Specified in requirements document Weighted for importance Focus on special, unusual and important functionality Make vendor RFP answers contractual Buy what exists, not “vaporware” –By process or module –General Consider future upgrades and growth path –Consider near-term future functionality –A major benefit of vendor-developed software is the continuous functionality improvement via upgrades –Know the vendor history on software improvement and module expansion A weighted list of critical requirements provides a GO/NO GO tool for differentiating among vendors.

© Copyright High Performance Concepts, Inc. Technical Direction Upgradability and growth path Platform & operating system Database management Application development tools Integration –Within the application –With other applications –With the Web Network support Data exchange Networking Security Mobility Scalability Make sure the vendor’s technical direction matches that of your company.

© Copyright High Performance Concepts, Inc. Ease of Integration Integration with: –Other planned supply chain systems –Existing supply chain systems –Marketing, engineering and financial systems Vendor resources to enable integration –Personnel –Integration tools –Automated Programming Interfaces (API) Technical architecture –Openness –Alignment with your direction –Automated program interfaces –Application development tools Ease of integration can make or break your implementation.

© Copyright High Performance Concepts, Inc. Ease of Implementation Never really easy, just degrees of difficulty Technical and functional implementation Implementation requires a lot of effort Made more difficult by business realities –Limited time –Limited resources –Limited budget Vendor resources/tools can make a difference Include questions in reference checks: –How long to implement –How many company resources –Actual expenditures Ease of implementation may best be measured by the time and resources required vs. those which were expected.

© Copyright High Performance Concepts, Inc. Implementation and Training Resources, Plans and Methods Vendor able to meet your schedule Resources for implementation and training –Vendor –Internal Project methodology and planning tools Vendor personnel –Knowledge of the software –Knowledge of your business –Capabilities and special skills which you need –Capacity to get the job done –Availability to meet your schedule –Professionalism Both internal and external resources are critical to the success of your implementation.

© Copyright High Performance Concepts, Inc. Vendor Quality Assurance System to run your business has to work Learn about how the vendor manages: –Software package development –Interface and enhancement development –Software “fixes” and upgrades –Hiring of implementation consultants –Implementation projects Is this vendor a quality vendor? Will the system perform? OR

© Copyright High Performance Concepts, Inc. On-Going Support Maintenance and Upgrades –Packaged software –Interfaces –Modifications Help Desk support –Technical and user support –24 * 7 –Geographic coverage –Unlimited use –Included in software maintenance fee Vendor support will be critical to keeping users happy and the system running smoothly.

© Copyright High Performance Concepts, Inc. Vendor References and Reputation Get references –In your industry –In your geographic area –Some who had problems –Technical and user representatives Check them -- go visit if possible Know what you want to learn Document Use the reference checks to make your decision and to improve your implementation plan.

© Copyright High Performance Concepts, Inc. Vendor Financial Strength and Long-Term Business Prospects Has the vendor been profitable for the past 5 years? Is the vendor growing? What are the vendor’s future prospects? How are they managing their growth? Is there any chance they will be acquired? To consider the vendor as a business partner, assure that there will be a business with which to partner.

© Copyright High Performance Concepts, Inc. For More Information Please contact: Brian Savoie Vice President High Performance Concepts, Inc. Cell: