EVS Blog

As ERP software systems have become more expansive and complex, the selection process for companies looking to purchase these systems becomes more expansive and complex as well.  When a company realizes they need a new ERP, where do they begin?  Many turn to their trusted advisors (CPA’s, business consultants, etc).  Others seek out people to become their new trusted advisors (software evaluation ‘experts’, websites, etc.).  Some try to do it on their own.

One of the more common approaches from software evaluation ‘experts’ is the organizational process review, followed by an RFP/RFI to potential vendors. In my 15 years of reselling and publishing process manufacturing software, I have seen over 100 RFP/RFI’s come across my desk.  Many of them exceed 50 grueling pages of specific feature requests where each publisher has to say whether that feature is out of the box, customized, doesn’t exist, etc.  Many times, each page has 50 feature requests multiplied by 50 pages is approximately 2,500 features to be evaluated.

Here’s the theory: you put every conceivable feature that your organization could possibly want into an RFP, weigh each feature for importance, then have a simple algorithm evaluate the responses from each vendor and the one with the highest score wins.  Simple, detached, logical; no room for smooth-talking sales people to lure you into their solution with the techno-sex-and-sizzle that their under-qualified solution has, while avoiding the real, functional needs.

The problem is that this method doesn’t work.  The functionality of software is only a small percentage of a good solution.  The business partner is (or should be) a very large portion of the evaluation, followed by their experience in your industry, and reference clients in similar industries.  The more specialized your industry, the more important these characteristics become.  So, in a specialized industry such as food (okay, let’s go deeper and say bakeries) the evaluation should really be 70%  on the business partner and their experience and track record in that industry, and 30% on features and functionality.  Unfortunately, detached consultants typically spend 90% of their time evaluating 2,500+ feature/functions and miss the boat on the real value of the ERP.

Last week, a consultant called me and asked if I would fill out a short RFI for his client.  My typical mindset is that I’ll take a look but if it has more than 50 questions, I will respectfully decline.  When I received the RFI, I was blown away.  This was the first RFI that I have ever received where the consultant ‘got it.’  First, he knew that he was evaluating industry standard software packages, so the accounting function and basic inventory control and distribution features were assumed to exist.  He then gave a brief description of the operational needs of the company, consisting of ten short paragraphs.

Finally, he asked twelve short answer questions to the vendor such as does your software fit the operational needs of the company based on the description? Does the package meet the regulatory requirements and pricing requirements of this industry?  It may seem too simple, but if you don’t know what the regulatory requirements of this industry are (in this case MSDS), and your software doesn’t have it, you might as well walk as you have no hope of winning this deal.  Contrast that to MSDS being three questions out of 2,500; a vendor may have the false notion that they have enough yes answers on the RFP to still compete.

Since he focused on the value proposition of the software, he allowed the vendors to show their expertise (or lack thereof) in the responses.  In a couple of hours, I had a document that showed my expertise and experience in the industry.  The best part is that the client had a document that they could easily digest from multiple vendors.  Contrast a three-page short answer to a key questions document versus a 50 page, 2,500 yes/no/maybe document.  There is no comparison on the effectiveness, efficiency or usability of the analysis documents.

Obviously, we have to go through a demonstration process of our solution before we make the decision, but the key is that the time spent on this project will be more on the solutions team and overall knowledge, and less on checking useless boxes.

I hope that software evaluation ‘experts’ and websites take note of this true expert’s method of software selection.

The below exchange between the pointy-hired boss and Dilbert and his associates reminds me of an exchange I had with an ERP selection firm.  The ERP selection firm sold the client on taking the “emotion” out of the ERP selection and instead make it analytical.  Dilbert’s question “If making a decision is just a process, why can’t a computer do it?” was right on the button – analytical data gives decision makers a bunch of data, but when it really comes down to it, most ERP are purchased on emotion by the decision maker.

Knowing this truth, why do people still believe that an RFI and a process can replace true expertise in ERP selection?

No one asks for a paradigm shift, the change happens and people wonder how they got along in the old paradigm. Do you remember life before Google/Yahoo?

When we were close to releasing the z.Find ERP search application one of our concerns was that, while people would understand it (since it’s so much like Google), they may not be able to translate it to their daily tasks in the ERP.

I’ve done a few webinars this week to various Sage MAS 500 users and have gotten some great feedback. As I was speaking with a MAS 500 user he hit the nail on the head:

“I’m not sure we are ready for the z.Find yet, but, you know, just today I was looking for some data and thought that if I had the z.Find I could just type it in an find it instead of looking around the system for it.”

People sometimes don’t realize they need something until they see it. This paradigm shift away from structured search to a more unstructured Enterprise Application Search (EAS) is something everyone needs, but they may not realize it yet.

Readers take heed, your organization will use EAS, do you want to be a forerunner and get the advantage now, or do you want to wait until everyone does it?

I have a library full of books on entrepreneurialism and sales; many very good. In my opinion of being an entrepreneur/salesperson for over 13 years, the most realistic and insightful book I’ve read is Dr. Seuss “Oh the Places You’ll Go.” It’s one of the few (maybe the only one) that takes you on the true entrepreneurial journey.

The book (written in classic Seuss style of second person and future tense) is about a young man (“you”) who chooses to break out of the ordinary and become an entrepreneur. He realizes that “You can steer yourself any direction you chose. You’re on your own and you are the guy (girl) who’ll decide where to go.” He faces ups and downs, trials and tribulations and scary situations, but he keeps moving along victoriously.

I read this book to my 4 year old daughter every chance I get because there is so much wisdom and experience in this simple short children’s’ book. If you are an entrepreneur, you will probably recognize the ride, if you aspire to be one, this is what it will be like.

So for you aspiring entrepreneurs, “Today is your day! Your mountain is waiting. So….get on your way!”

Thanks everyone for the encouragement on the EVS blog; I appreciate everyone’s comments and feedback. This weekend I changed the format of the blog to make it a little more EVSish and modern. We have lots of great entries coming this week – I hope you enjoy the new look and content.

Every once in a while a reseller puts together a marketing piece that blows me away.  Arxis Technology put together a nutritional label as a give away at their local IFT show.  The IFT is an organization for food manufacturers and suppliers. Good job Arxis!

Marketing give away