First Things First - Start Using RFIs for Your Technology Purchases

Experience has shown that most prospective technology buyers do not use any RFI process whatsoever.  Instead, they put a lot of effort into a one-shot, cover-the-world RFP process targeted at two or three vendors whom they already believe can meet their needs.

This very common approach may be a carryover from the early 1990s when it truly made sense.  Back then, in any given technology market segment, there were often only two or three front-runners to consider (those with a verifiable state of development and track record), and it was easy to discover who they were.  Back in the 90s, you would probably waste time and might actually put yourself at risk by conducting an RFI process for your prospective technology purchase (you might be sucked into the inflated claims of some up-and-coming software firm).

But times have definitely changed.  Virtually every technology market segment today is populated with a number of reputable vendors whose offerings are well-developed and mature.   Every buyer of any technology product has numerous options today.  It is no longer a question of whether a product will work for them, but a question of which product among many good alternatives is the best fit for their particular needs.  The right fit for you will be an optimal combination of price, functionality, performance, useability, ease of integration, total cost of ownership (TCO), and total value of ownership (TVO).

Although times have changed, many technology buyers are still stuck in the 1990s when it comes to RFIs.  We have passed from a time during which it made no practical sense to use RFIs for technology purchases to a time when RFIs for technology purchases are abundantly sensible.   We encourage our technology-buying clients always to use some form of an RFI process, and to use it with two main purposes in mind:

(i)  Information gathering, discovering more options and choices, and facilitating vendor dialogue that produces additional valuable information; and

(ii)  Establishing a short-list of qualified vendor candidates whose products and/or services comprise that optimal combination of price, functionality, etc.

In terms of cost and benefit, we cannot think of any other element of a technology project that has such a relatively low cost but produces such a valuable benefit.  Use RFIs!

View some Technology and Software RFI Forms, RFI Samples and RFI Templates now.

Six Tips For Better Technology RFIs

1. The best RFI may be no RFI at all (or one different than you first envisioned)

With the exception of simple upgrades, always do some internal scoping and analysis work before deciding whether you need to buy more technology at all.  Over the years, we have helped numerous clients prepare RFI/RFP campaigns for the purpose of acquiring some new software application, and during the process, the clients discovered that they really did not need a new application.  They already had a comprehensive set of applications running on modern platforms, and the better option was to extend one or more existing applications to meet their new technology need. 

The RFI/RFP process was a relatively long, time-consuming and roundabout way to make this discovery.  So, in terms of new needs, always think about making better use of what you already have. When in doubt, pay a relatively small amount for someone to help you determine whether extensibility is an option for you. Instead of an RFI/RFP campaign directed to software vendors, you might need one directed to a narrow segment of developer consultants.

2. If you do need new technology, be clear in your RFI about what you want

If you are compelled to use industry jargon in your RFIs, do yourself a favor: elaborate on exactly what technology you are seeking.  Add lots of clarifying and qualifying terms and descriptions.  For example, the terms Web Content Management (WCM), Document Management, Enterprise Document Management, Enterprise Content Management and Records Management have come to be used interchangeably these days.  And increasingly people are using the term ECM to mean almost anything that involves managing some kind of unstructured data.  What, SPECIFICALLY, are you seeking?  You need to know, and your vendor candidates need to know.

3. The goals of your technology project should be prominent in any RFI document

What are you hoping to achieve?  State your goals very directly and invite vendors to respond creatively.  Many technology deals are as much about business processes and user acceptance as they are about speeds and feeds.  Allow prospective vendors to address both issues and suggest viable alternatives.  You live within the confines of your particular organization, but vendors work with numerous organizations.  You certainly want prospective vendors to know what your specific goals are, but you also want to benefit from their broader experience.  How are others achieving these same goals in a similar environment?

4. Separating software and technology services.  Use a separate RFI for each

Most software purchases require at least some associated services.  At the very least, you will need to install and configure your new software, and perhaps you will need to integrate it with your existing systems.  Technology buyers often find the best software package for their needs, and then without giving it much thought, they hire the software vendor (often a reseller) for their services piece.  The software search is given the most priority, and the services piece is almost an afterthought.

Think about separating software from associated services within your procurement process.  For example, you may want to buy your software from a particular reseller, but it may be best for you to buy your services from a dedicated integration consultant.  Consider starting with an RFI process directed to both software vendors and integration consultants.  What you learn from this dual-track RFI process can help you make an informed decision about your best choice for a services vendor.

5. Seek references in your IT RFI

Do not wait for your RFP process to begin requesting references. Request references in your RFIs, and begin to check references right away.  Be sure to ask these contacts about the references they were provided by the vendor in question.  What you learn from reference contacts can be very useful in developing your vendor short-list.   In case there might be any doubt, your seeking references in your RFI does not preclude your right to seek additional references in your subsequent RFP RFQ.

6. Single point of contact

As with RFPs, you should establish a single point of contact within your organization to receive RFI responses and answer vendor questions.  Direct vendor candidates to this contact person, and specifically ask vendors not to contact anyone else within your organization without express permission.  Vendors have a way of nosing around within your organization for information that might give them a leg up in any subsequent discussions or negotiations, and you want to prevent this from occurring.

© 2007 All rights reserved. Olive Consulting Group LLC / Nuckles Law Firm