ERP Proposal Evaluation Team Training ORGANIZATION ERP Proposal Evaluation Team Training

Overview of Selection Process

GFOA’s Proposal Elevation Methodology System Selection Services Contract Negotiations Proposals Demonstrations/ Initial Interview Discovery Negotiations Approx. 6-10 proposals 1 proposal 3 proposals 2 proposals Statement of Work Template GFOA uses market experience to identify risks and outliers Focus on software and high level implementation approach Focus on unique considerations to prepare for SOW Software License Implementation Services Agreement Proposal Assessment Demo Scripts RFC Letters Support Agreement Discovery Scripts Demo Staffing Third Party Documents Reference Checks Discovery Staffing

Expectations

Expectations of Management Team / Selection Team Read each proposal Identify strengths, weaknesses, questions Score proposals Attend meetings to discuss Plan on 8-10 hours per proposal Attend all demos Demos are 3 days per vendor Attend Discovery sessions 1 day Review demo scripts, request for clarification (RFC) letters, participate in meetings, develop recommendation for steering committee, etc.

How to Evaluate a Proposal

Submittal Requirements Executive Summary Exceptions to RFP Scope of Services Company Information Customer Reference Form Functional Requirements Technical Requirements & Information Requests Business Process / Software Considerations Chart of Accounts Operational & Financial Reporting Receiving & Invoice Processing Data Conversion Interfaces Implementation Approach, Plan, and Deliverables Staffing Post Implementation Support Services Maintenance & Support Pricing

Section 1. Executive Summary Title page Table of contents Executive summary Contact info RFP submittal checklist, signature page, proper statement, insurance certificate, W-9, and exceptions to RFP Generally, this section is filled with marketing information (“market leading,” “best,” “innovative,” “unique,” etc.) and provides very little value to the selection process. However, it can be used to identify priorities of the firm involved and their understanding of the County’s situation.

Exceptions to the RFP Vendor exceptions All vendors operate under different assumptions and have different preferences and procedures for selling their software and conducting implementations. It is very common for vendors to take exception to many of the proposed contract terms in the RFP. Differences will be worked out during Discovery and contract negotiations. Anything that is of high importance will be flagged by GFOA and discussions will begin prior to elevation for software demonstrations to emphasize the importance of the high level issues.

Key Issues – Exceptions Contract Terms Warranty SOW System acceptance

Section 2. Scope of Services Describes what is proposed Software modules Technical environment, e.g., on premise, SaaS, managed services, etc. Implementation services Describes how proposed solution will accomplish County’s goals Describes who is involved Multiple firms – identifies the role of each This section is critical. Often firms describe what they “can” do, not what they have proposed in a proposal. This section will clearly identify what the County is getting and who is providing it.

Company Information Experience Current customers Implementation partnership Company size, resources, investment, litigation, and potential acquisition Past public sector experience is a huge factor in the success of implementations. Also, the partnership with the software and implementation firms is important to show their working relationship. It is important to find out if the vendors have past experience with similar projects in other similar organizations. Don’t overlook the third party solution backgrounds as well.

Customer Reference Form Past customer Similar organizations (employee size, operating budget, etc.) Project summary Solution version Project scope Implementation information Duration, vendor role, project challenges, and major accomplishments References may also be from governments who didn’t use the proposed implementer but the original implementer was acquired by the proposed implementer. Or, the references may be for a proposed solution, but not the implementer. Additionally, vendors may skim over the implementation information section when addressing project challenges and accomplishments.

Section 3. Functional Requirements Responses to the functional requirements Modules required to meet each Additional clarifying comments THE MOST IMPORTANT SECTION. Requirements form the foundation for any implementation. They define the scope, provide a guide for implementation, and serve as the warranty. The vendors must understand the requirements, answer accurately, and communicate software capabilities and gaps to the County. The County also has to understand any potential gaps. This will be an evolving document as requirements are clarified.

Responses

Key Issues - Requirements Watch out for vendors that claim to provide 100% of requirements GFOA experience is that most vendors will provide only 85-95% Don’t penalize vendors who seek clarification on requirements that appear to be conservative. It is OK if some requirements (highest % not always the best) are not provided. The key is to determine if those requirements are essential.

Third Party Solutions May be considered a key module in the entire ERP suite. Interfacing with main ERP software will be critical. Deployment will need to integrate with ERP Statement of Work to avoid conflicting demands on staff time.

Section 4. Technical Environment & Information Requests Database Operating systems Hardware Network Security Integration Software releases Support, warranty, and maintenance Data access Reporting and analytics Hosted / SaaS options Most vendors support multiple platforms and most common technology. However, others have aligned their products with specific products that are required to run the application. Note: County standards were listed in the RFP

Section 5. Business Process / Software Considerations Chart of Accounts Data Conversion Operational & Financial Reporting Receiving & Invoice Processing Interfaces Open-ended questions provide an opportunity to get feedback from the vendors on different issues, including business process redesign. Generally, they are difficult to evaluate as vendors are responding base on what they know about the County. For conversions and interfaces, vendors often leave out them our, or make different assumptions on scope.

Section 6. Implementation Approach, Plan and Deliverables Implementation methodology Vendor and County staffing Project management Quality assurance / testing Training Change management Deliverables THE MOST IMPORTANT SECTION (PART 2). No software will work “out of the box.” Success for the project is dependent on an implementation approach that mitigates risk, and accomplishes the County’s goals in a way to leverage both consulting resources and County staff to incorporate best practices and facilitate knowledge transfer.

Key Issues - Implementation Everyone has an implementation methodology. For the most part, they all work. Look at staffing assumptions. Are they realistic? (Beware of very low #s) Can you provide the effort? How much work are you required to do vs. the vendor?

Training Plan Training strategy Training content development Training delivery Training tools A completely new system, new processes, and new organizational roles requires that each employee be trained in how to use the new system. Inadequate training will lead to change management issues, the proliferation of shadow systems, and ultimately an underused system. It is critical that training be “County-specific” so that employees can see how the system will be used to complete County tasks. Don’t overlook training described by third party solutions as well because this may be as much as half of the training required for your staff.

Key Issues - Training Vendors often make very different assumptions about training Who will perform training? Where will training be conducted? Who will develop training materials?

Knowledge Transfer and Change Management Business process change Overcoming resistance Communication Change is not easy for most organizations. ERP projects are all about massive change. No system will deliver ROI without re-thinking business processes, changing roles, and requiring employees to take on new tasks. Being able to successfully manage the people side of the project can’t be overlooked.

Key Issues – Change Management Not all vendors have the same understanding of what change management is. Does the vendor understand the complexity of the project? Does it appear they have worked on similar projects in the past?

Section 7. Post Implementation Support Services Post go-live support Service desk / telephone support services User groups Application support services, e.g., interface development and customization Setup / configuration services Training All vendors provide approximately the same levels of support. It is important to verify that support meets minimum requirements, but other areas of the proposal are more important. Verify the maintenance and support provided by third party vendors as well.

Section 8. Pricing License (Is what they proposed enough?) Implementation (services) Implementation, data conversion, interfaces, customizations / reports Training Maintenance and support Travel Other Costs will change as scope is refined and savings negotiated. It is important to remember that it is very difficult to do vendor to vendor cost comparisons. Proposed services are different – so the lowest price may not be the best price.

Considerations on Cost All vendors have slightly different pricing methodologies. On Premises Hosted SaaS

Supplemental Information Anything the vendor wanted to add Often vendors will include reference letters, screen shots, report examples, or other marketing material. This information should be reviewed, but it is often difficult to score.