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Is your company eligible to be featured in an Intel Small Business Case Study?

Buyer be warned January 6, 2003 
By Mark Stuyt

This frustrating scenario plays itself out with predictable regularity because the procurement processes organizations rely upon to facilitate technology selection are flawed.

By way of example, I recently reviewed a 200-plus page RFP, requesting solutions to a simple business problem. The challenges and desired end-state were well articulated in the first 10 pages, but the following 190 went on to describe in painful and excruciating detail how the solution had to look, feel and behave.

It was clear that the IT artist responsible for crafting this 21st century rendition of War and Peace was bound and determined to embark on an unnecessary, employment-preserving custom development effort rather than follow the pragmatic path of least resistance and choose from a half-dozen commercially available solutions designed specifically to solve the stated business challenge.

Due to the bias oozing out of the document, no self-respecting sales executive with a shred of experience would expend more than a nanosecond contemplating this opportunity; it was clear who would be awarded the contract from the manner in which it was drafted.

Smart application software vendors will enforce business rules which preclude their sales teams from responding to high-risk RFPs due to historically disappointing success rates.

With the average cost of a complex sales cycle ranging between $20,000 and $50,000, investing in a pre-determined beauty pageant brings unwanted attention and notoriety, regardless of how attractive the solution might appear to an optimistic sales organization.The net result is that viable, creative solutions never see the light of day and the business community is none the wiser.

Traditional technology procurement processes generally follow a predictable path. After months of analysis business executives look to their IT colleagues to convert a results-driven body of work into a successful technology-based project. IT filters the business challenges through their technology bias and then scurries away to craft an RFP that, all too frequently, comes out reading like their preferred vendor's latest brochure-ware. The problem lies partially in IT biases; they're unavoidable but dangerous, as the business community relies on IT to coordinate and facilitate the selection process itself. Business has to take a stronger role in the creation of RFPs if they're to benefit from the wealth of experience and knowledge available in the marketplace.

Application software is far too strategic to be shoehorned into a procurement process designed to select laptops, Web servers and office furniture.

There are rays of hope on the horizon, however. I was delighted to stumble across a recent BC Premier's Technology Council report recommending "the BC government address the unique nature of IT procurement through the adoption of a benefitsdriven model based on business objectives rather than the technology requirements of government." In other words, the report suggested it was time the BC government stopped buying tools and started partnering with the private sector to create innovative solutions.

This ringing endorsement of a Joint Solutions Procurement (JSP) approach, from the public sector of all places, is encouraging and private enterprise would be wise to follow the BC government's bold leadership.

JSP is predicated on a belief that business partnership and innovation are more important than database structures and technology preferences. It's about asking for creative designs to build a new home rather than providing a detailed blueprint demanding obscure building materials found solely in the remote rain forest of Borneo. JSPs aren't appropriate for every technology-related business project, but for those that require a novel approach or unbridled creativity, they're well worth the risk.

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