Top Ten Golden Rules of Enterprise Technology Selection |
Have a senior level project champion (non-IT) take personal ownership of the projectOne of the biggest causes of failure in enterprise IT projects is change resistance. This can be significantly reduced with a non-IT executive champion behind the project. There are many other benefits associated with this point, including keeping the project centered on business needs and not technology. Define the project's expected benefits at the start of the projectThis forces the project team to look for business benefits from new technology. A worthwhile project is one that drives the company forward toward its business goals while delivering an acceptable return on investment. Identify the critical success factors (CSFs) for the projectIt is important to know what the project must achieve to be successful. This is closely related to the previous point. Vendors must know what the CSF's are if they are to help deliver against them. Get the users of the technology involved in the selection processTwo key things happen when users are involved:
Define the requirements of the technology in detailA detailed set of requirements helps set expectations for both vendors and users. The more detailed the requirements, the less room there is for misinterpretation. Requirements should always be put in terms of what must be achieved as a result of the technology and not how the technology must function to produce the results. (Focus on the what, not the how). Identify what existing functions must be replicated or replaced by new technologyIn selecting new technology, it is vital to remember not to throw the baby out with the bathwater! In other words, be sure to identify what functions should be kept from existing technology and incorporated into replacement technology. For example, in software selection, reporting is often overlooked, leaving gaping holes in new application implementations that must be quickly filled before a project can go live. Incorporate points 2 through 6 in a detailed request for proposal (RFP)A detailed RFP helps to clarify the requirements for both vendors and internal staff. The process of evaluating responses to an RFP provides the opportunity to compare gaps in alternative solutions and to determine which functions are more critical than others. Identifying gaps in potential solutions is necessary to accurately assess the timeline and budget for the project. Dedicate sufficient time to the project to avoid having to make ill-informed decisionsMany companies spend millions of dollars on IT solutions with only rudimentary analysis of the proposals. Yet an IT investment can cost a company many more times its initial estimate over the life of the project if it fails to deliver results. Not dedicating sufficient time and resources to evaluating new technology is a common reason for poor technology decisions. It is better to spend the time before a decision is made in order to make the right decision. Time spent afterwards trying to fix mistakes is time wasted. Incorporate your expectations (2 through 7) into any written contractsA contract is a document that sets out an understanding of expectations of the parties to the contract. If it is your understanding that a vendor will deliver upon your expectations, such expectations should be well documented in the contract. Every project is a balance between time, money and qualityWhen negotiating the contract, remember that a technology project is a balance between opposing forces of time, money and quality. If you want to save time, you must either increase the budget to increase resources or sacrifice quality. To increase quality, you must extend the length of the project or spend more money to increase resources. If you want to save money, you must be willing to sacrifice quality or extend the length of the project by reducing the resources dedicated to it. CRM, CCA & eRetail Business Objectives Strategy | Marketing | Technology | Profiles | Industry |
