Presented by: Masoud Shams Ahmadi February 2007 Enterprise Resource Planning (ERP) Selection Presented by: Masoud Shams Ahmadi February 2007

EAM Selection 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)

ERP Selection Vendor Search: –User Groups –Use consultant knowledge –Internet –Others

ERP Selection Ranking Criteria: –Quantitative –Covers EACH requirement as well as “soft” issues: Vendor financial health Stability Longevity Referencability

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 –Deliverables: Annotations to proposal submissions Reference feedback / revised scoring

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 FactorsQuestions Cost of technologyWhat are the start-up and recurring costs? InstallationWhat consulting assistance is offered (time, cost)? InterfacesWhat interfaces are supported? UpgradabilityWhat is the frequency of upgrades? Computing environmentWhat is the computing environment? Personnel requirementsWhat 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