Automate your RFP process using Arcus Advisors Arrow; our cloud-enabled framework & pre-built libraries for ERP, Financial Close Automation, CRM, Expense Reporting, and more!
Article by Shelley McClarigan, PMP
Arcus Advisors has developed an agile and collaborative framework for selecting new software system as an alternative to the traditional Request for Proposal (RFP) process.
RFPs have benefits – when done right, they help you formalize your requirements, provide an unbiased look at multiple vendors, and provide a formal framework documenting the final decision. These are all important aspects of choosing new software system. But executing an RFP is very time consuming. A 2018 article from TechRepublic estimates that an average modern business spends over 4,800 hours/year supporting the RFP process- that’s over $300,000 each year! Where does all that time go? Much of it goes to writing and updating documents – collecting requirements, completing reviews and approvals, answering questions from vendors, consolidating the responses into a scoring framework, etc. Each of these steps often includes 5-7 people, many of whom have a “day job” and may have trouble finding time to complete their step in the process. A common estimate is that a “best-case” RFP process will take roughly 5 weeks to complete, with complicated RFPs taking several months or more.
Luckily, there is a better way! Our cloud-based framework using Arcus Advisors Arrow includes three key phases:
UNDERSTAND THE SCOPE & REQUIREMENTS
One of the most time-consuming aspects of writing an RFP is gathering the requirements. To do this, the author needs to collaborate with subject-matter experts (SMEs) from many functional teams. The more SMEs that are involved, the more likely you are to capture all the true requirements. But more people equal more complexity and time, so often only a few highly experienced users in the area most impacted by the software are consulted. Hopefully they know most of the requirements and you end up with software that meets the needs of everyone using it. But even if you get that lucky, you’ve missed an opportunity to gain support and buy-in for the project. Change is always hard but giving people an opportunity to weigh in on the requirements early in the process makes them feel involved and empowered, an important element in change management.
In the Arcus Advisors process, we provide pre-built libraries that include the most common requirements for the software system. We send out survey-style questionnaires to unlimited SMEs, asking each to rank the requirements in terms of importance to their function and checking if any requirements are missing. Their responses are automatically collated into our cloud-enabled platform and tracked by name and function, so we only need to spend time clarifying and adding new requirements that get suggested. We can also setup those few key SMEs with advanced access so that they can use their expertise to add, remove or update the requirements to best illustrate the unique needs of your company.
INTERACT WITH VENDORS IN REAL-TIME
As the vendors respond, their responses are collated in real-time. This transparency allows you to see the vendors in action – are they engaged in the process from the beginning, or do they wait to finish everything at the last minute? Do they ask insightful questions, or focus on technicalities? Their behavior in the sales phase can provide valuable insight into how the company will perform once an agreement is signed.
The interactive nature of our process also allows scoring to start while the vendors are still responding to the requirements. The scores are not visible to the vendors but allow for real-time tracking of which vendor is best meeting your needs in comparison to the others. This time-saving feature allows you to get to a short-list of vendors more quickly than in the traditional document-based RFP process. Requirements can also be marked as “Needs Demo”, which is visible to the vendor and allows them to prepare a more tailored demo.
CHOOSE THE RIGHT PATH FORWARD
Now that you have a short list of vendors and the “Needs Demo” requirements for each, getting the demos organized consists of simply agreeing on a time and meeting platform. During the demo, participants can update their scoring on the requirements and see the impact on the overall vendor score.
Your final decision will be based on multiple dimensions – the overall fit/gap of the solution to your needs, the implementation complexity and cost, the annualized cost of the licenses and support, and the relationship you’ve built throughout the discovery and demos, but with our process, you will know that you have fully explored the vendor’s offering, while still moving quickly through the selection process, and can make your decision with confidence.
Interested in learning more? Contact us and let us point you in the right direction!
References
https://www.techrepublic.com/article/infographic-is-it-time-for-the-rfp-to-die/
