IT Brief New Zealand - Technology news for CIOs & IT decision-makers
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Tue, 1st Dec 2009
FYI, this story is more than a year old

Business requirements must be covered too–  By Jen Rutherford, Cisco New Zealand, Regional Manager.A Request for Proposal (RFP) can provide companies the opportunity to address key issues within their business framework and make the changes needed to elevate their performance. Most often RFP concepts involve shifting to the latest technology and enhancing productivity and workflow. But it’s easy to forget that technology alone will not necessarily provide a solution to underlying business problems. So, how can business leaders construct a good RFP that will not only address their need for change, but will also ensure the best quality responses from vendors? Firstly, make clear in the RFP document any desired business outcomes, whether process, structurally or culturally driven, so that accurate solutions can be presented. The following are eight tips to provide insight into the best way to conduct the RFP process:   1 Research and workshop desired business outcomes: It is important to understand how technology can enable change in the business before an RFP document is developed. Different people will have different opinions, so it is useful to ask around and encourage conversation. Discussions surrounding technology usage and how it will enable staff to achieve maximum business productivity will ensure that a company is asking for the right solution in the proposal document. 2 Make sure you know what you are asking for: It is easy to confuse a Request for Proposal with a Request for Information (RFI). An RFI signals that a company is interested in looking at new technology solutions to address its business problems. An RFP signals intent to purchase and integrate a new solution into the business. The RFP document is developed when research and an evaluation of company processes is completed. For a vendor or integrator, it is important that companies understand the difference and handle each document differently. 3 Make sure you are financially prepared: Before going to tender, a company needs to ensure its funding and approval processes are in place. There are few things worse than two companies putting in a lot of effort and reaching a mutual agreement only to find that there is no funding available for the solution.4 Develop a timeline and stick to it: Timelines need to be meaningful and achievable for all parties involved in the process. A company needs to ensure the response time is long enough and must similarly give itself enough time to evaluate the responses and come to a decision. Reneging on the promise of communication at a certain time creates distrust and can develop a negative reputation for the tender company.5 Be clear on timeframes for delivery: This is crucial to the integrity of the RFP process. Technology is constantly evolving, so the RFP needs to be clear on the timeframes for delivery. Does the company want the solution immediately or does it want to see what will be available in six months’ time? This needs to be addressed in the document so each vendor understands the limits to the technological solutions they can showcase. 6 Differentiate between technology requirements and outcomes: It is important to be specific when requesting a technology solution. There should be a focus on what the solution can deliver to the business, rather than the specification requirements for the actual hardware. Allowing the vendor to develop the most efficient solution creates a bond of trust and shows you recognise the vendor’s expertise in this area. 7 Develop evaluation criteria prior to judging: Confirm the criteria before the final deadline. The judging panel needs to decide on how it is going to compare and treat different responses and what the industry benchmark is. This will ensure that all responses are judged on an equal level and that results can be compared when it’s decision time.  8 Engage openly with the shortlist: Once the shortlist is established it is important to keep the lines of communication open so all parties know where they stand. This ensures communication of the right information and that both management and the vendor are aware of the process status. Today’s business world is highly focused on the latest technology, but it’s important to remember that it will not always be the answer to all business issues. Instead, technology enables cultural and process change in companies, which in turn can address underlying business issues. Don’t force purchasing decision-makers to buy the latest gear just for bragging rights; it needs to have relevance and a justified need before putting out a tender.As this article has shown, the RFP process requires careful planning and an intense focus on deliverable outcomes. If a company correctly uses its resources, thoroughly evaluates its desired business outcomes and conveys them in a clear and concise manner throughout the RFP document, it will receive the best option to suit its business needs.