IT Powered by IQ

June 3, 2009

Given all that we have been reading lately about the economy, corporate spending cut backs and the general volatility/consolidation of service providers I thought it a good idea to discuss some key points in identifying and working with that trusted provider for the long term. It couldn’t be more important today given the scrutiny on how each dollar is spent and what is received in return. Whether you are investing thousands or even millions of dollars on an ERP system you need to make sure the best decision is being made to meet your company’s objectives. Even as we are a provider of services, we also work with many vendors procuring services for us. Taking from these experiences we can identify some key attributes we think makes for a successful vendor selection.

Over the course of the next few weeks, we will try and break down each one of the key areas from both the client and the service provider perspective. So lets jump in and get started.

First and foremost don’t get caught up in the marketing!

Buy Reality, Don’t buy Perception. Many vendors carry with them a better marketing pitch or perception of what they are than what is true in reality. A substantial amount of vendors flaunt their “Partnership” status, but how do they demonstrate this? Did they just write a check to become a partner (this is the vast majority unfortunately) or have they worked with the provider to build solutions or guide product enhancements? Remember, it’s inexpensive to print fancy business cards, create an eye pleasing PowerPoint or even better yet, purchase a premade website for $80 (check out www.templatemonster.com and you’ll see what I mean). There are 1001 different service providers out there with similar cookie cutter website who have no real true content.
Clients need to focus on the content when evaluating vendors. Clients need to see how their objectives are going to be met. After you’ve spent your budget allotment and you have a system that only meets 50% of your businesses needs is the CIO going to care that they have nice business cards or PowerPoint’s? Key questions to ask yourself:

• Did your vendor address all your proposal questions?
• Did your vendor provide reasonable recommendations or approaches that align with your goals?
• Was the content impactful and meaningful to your firm or just more marketing?
• Has your vendor demonstrated previous successes?
• Is your vendor knoweledgeable on current trends in your particular market space?
• Is your vendor able to provide references?

Now, I’ll be the first person to acknowledge, references aren’t what we were all taught they are supposed to be. Is someone really going to give you the name and phone number of a person who is going to speak negatively about them? The fact that they can provide the references substantiates them to some level, and you should talk to the references, but remember they don’t hold the entire key to the kingdom.

Stay Tuned…. More to come!