#1: Hidden Costs of In-House Vendor Selection & How to Avoid Them
As markets shift, risks increase, and strategies evolve, your CTRM/ETRM software needs become more specific, comprehensive, and nuanced. The time may be right for upgrading your system so you do not expose your company to undue risk or leave money on the table. To keep costs manageable, you may be tempted to perform your own CTRM/ETRM vendor selection process in-house. This may be a viable option, but you should understand the “hidden costs” of In-House vendor evaluation.
The “Hidden Costs” of In-House Vendor Selection
While the benefits of selecting a solution in-house may seem compelling, if handled improperly, they can backfire:
- You’ll likely overpay in the long run – It could, and likely will, happen. Key features “presented in a demo” don’t uncover common pitfalls or technology gaps in “out of the box” implementations. This fact could cost you much more later with gap-fills and workarounds in the short run and investing in a proper fix for the long run.
- It’s a full-time job – Having IT, procurement, other departments more work to create RFPs, research capabilities, sit through numerous product demos, negotiate prices, and manage the project. These tasks tax those with already full plates and put timelines at risk.
- You’re the “fall guy or gal” – As stakeholders are interviewed and use cases are created, scope often extends as back office, middle office and front office user needs are identified. Defining these comprehensively requires more than “sales demo” level insights. Leverage vendor selection insights gleaned from multiple installs to protect your recommendation and your reputation.
- It’s hard to be objective about an “old friend” – Engaging a vendor to pursue the selection process keeps your team objective, erasing the propensity to prefer one vendor over another due to past experience or active relationships.
Why CTRM/ETRM Vendor Selection Experts Help Avoid Missteps
Many companies, however, find they cannot spare the resources or simply do not have a proven approach for conducting vendor evaluations in-house. Engaging a consultant with “frontline-proven” experience and approach facilitates the process, proactively uncovers pitfalls, and saves you money by setting your team up for deriving long-term value.
- Focus on “Value” rather than “Cost” – Software vendor demonstrations are informative, but what they lack is the insight into “unforeseen needs” only learned from experience. A vendor selection partner will ensure your software contract encompasses precisely what your users value, based on leveraging expertise with dozens of organizations.
- We know where the treasures and skeletons are – Value Creed’s professionals have conducted many software selection services & currently work with a variety of CTRM vendors. They understand the strengths and weaknesses of every software product on the market. They also can access a deep database of projects similar to yours to determine which solutions have worked and which should be avoided. This constant improvement proves invaluable.
- Vendor selection Done “For You” so you can stay focused – Assigning your IT team to create software specification sheets, pre-qualify vendors, sit through multiple product demos, negotiate prices, and oversee installation and commissioning takes them away from more valuable pursuits. You may save money on the software upgrade only to lose much more owing to decreased productivity, reduced maintenance, and hardware malfunctions.
Choose Value Creed to Manage Your Vendor Selection Process
Value Creed’s “total ownership” model, considering your company’s focus, scale, strategy, culture, and other characteristics to develop a tailored plan for your software upgrade. We have the insights and established processes to ensure you receive the maximum computing power and value for your money. Our knowledge base is augmented by our partnership with Sendero, one of the most respected management consulting firms in the industry.
Contact Value Creed to learn more about our services and to schedule a software consultation.