1. Today’s Agenda Dealing with Vendors Consultants Contracts
The RFP Process
Consultants
Contracts
Justifying your system: Costs/benefits
System Implementation

2. HRIS Vendors Most provide client/server architecture
Many provide apps that integrate with other functions
Most support a range of platforms
All are expensive & require customization

3. Vendors (Ch 6) Bigger isn’t necessarily better
Look at financial condition, market position, etc
Look at experience with your situation
Look at support, training, etc.
Remember: you are not just purchasing a product, you are establishing a long-term relationship!

4. The RFP Process For larger systems (over $60-80K and up)
Text gives EXCELLENT material on this topic
Need to communicate broad context AND the important details
“Crystallizes goals and requirements”
Screen potential vendors

5. RFP Content Introduction
Proposal instruction (what should the proposal contain)
Functional requirements (line item criteria)
Vendor requirements (client references, support services, etc.)
RFP Administrative info. (schedules, etc.)

6. Support is key to the relationship
Hotline support
24 hrs vs. business hrs only
WWW site? User groups?
Field support
education and training
software installation
account management
Consulting
planning, implementation, etc.

7. Consultants (Ch 7): Threat or Menace?
Must be neutral (NOT vendors) and have excellent track record/references
Usually expensive:
$1000/day and up is common
Several days may be required even for simple assignments
But often worth it: costs of failure are enormous

8. Consultants can help with. . .
Tasks where specialised knowledge or independent judgement are needed
assess current system, develop requirements, system/vendor selection, oversee implementation, etc.
Not necessarily a long term relationship
can help with one phase of a project, such as vendor selection

9. Contracts (Ch 8): Necessary Evil
Software projects are inherently uncertain, so flexibility is required
Writen contracts should provide protection against non-performance
specific deliverables and milestones
acceptance testing is essential: make sure the product meets the specifications
What happens if they go out of business?
Text has two pages of typical clauses!

10. Contracts allocate risk
Fixed Price
financial risk to vendor, but performance risk to customer
Time and materials
financial risk to customer, but performance risk is minimized
Appropriate choice depends on which risks are greater

11. Selling Your System Internally
System benefits are hard to estimate
Direct cost reductions
staff, facilities, outside services
Cost avoidance
current system inflation, maintenance, staff, potential lawsuits, etc.
Intangible benefits
better decisions, quality, flexibility, etc.
What are the benefits of the system you are proposing?

12. Costs are also elusive
Initial hardware, software, and personnel are fairly easy to anticipate
But there’s always more:
conversion and testing, testing, testing
poor design --> excessive maintenance
documentation (or lack of it)
retraining (with turnover)
changing interfaces
endless upgrades, conversions, training.

13. What will it take to get your system up and running?
Implementation planning
Vendor/consultant selection
Policy/procedure development
Detailed design
Customization and Coding (if necessary)
Installation

14. . . . and there’s more Interfaces Conversion Testing, testing, testing
Training, training, training
Maintenance
Upgrades