27 August 2010

COTS Selection (You Make The Call)

Its time for yet another installment of our favorite game here at BetterProjects.net, You Make The Call! The rules are simple... we'll present a situation that is based on a real life project with which we have been involved. If you think you have the answer to the situation, post your thoughts in the comments section at the bottom of the blog. A few days after the post goes live, we'll add a new post with what we did and if that solved the problem or not. Remember, the answer may involve a technology component, but it will not be solved solely by technology.

COTS Implementation

Your CIO has recently received a great deal of negative feedback about one of the applications that nearly all of your internal customers use on a daily basis to complete their work. This application was developed internally and is highly customized for that business process and your organization. Most of this feedback focuses on the speed at which users can complete tasks and the age of the technology in question. Most stakeholders believe that a solution that uses newer technology that focuses on a touchscreen instead of keyboard entry would allow for faster throughput by users, resulting in a small labor savings and a large customer satisfaction increase.

Despite the dislike of the current system, its customizations and integrations with other corporate systems make it difficult to replace with a COTS (Commercial, Off The Shelf) product. Still, your CIO does not wish to develop another system internally when there are numerous COTS products that perform similar, if not exact, functions. You are instructed to initiate an RFQ (Request For Quote) process with the major vendors who have produce applications in this market.

Picking Up The Phone

You, being a person who keeps in touch with industry trends, know the major players in the market segment and start making phone calls with those vendors. Besides the standard information most vendors want to know, such as number of users, number of locations, operating systems used, etc, you also provide a list of functionality of your current system that you are looking to replace. You explain to the vendors that it is of critical importance that their systems replicate all functionality in your existing solution and that their product be able to interface to all your other internal systems.

As the vendor RFQs trickle in, you notice a disturbing trend... the cheapest of them is an order of magnitude greater in price than what it cost to develop and maintain the existing system since its implementation over a decade ago. While you know your legacy system is very specialized to your company, you are astounded as to the large number of development hours that will be needed for every one of the vendor systems to meet your needs.

Checking In

Now you are in a dilema... your CIO expects your findings to be on her desk by the end of the week and you know she won't be happy with the price tags on the RFQs. What do you say in your report? Is there anything you can suggest to help lower the prices? What could you have done differently in the RFQ process?

5 comments:

  1. Its good post...
    Thank you for the post....Business Plan Software

    ReplyDelete
  2. Anonymous5:06 pm

    Get the internal team to submit their own submission to either upgrade or enhance the existing app.

    Alternatively, ignore the whingers and run the bloody app for the next ten years, not that any large company would do that :P

    -Rob

    ReplyDelete
  3. Given the deadline I'd just present the facts.

    The vendors are experienced and know their business. Integration work can be complex, risky for a vendor and so costs can be large.

    I'd also have a next step which is a short list of vendors and then work on whittling down the features and integration points. Hopefully there will be some play out of the 80/20 rule.

    ReplyDelete
  4. Anonymous1:31 am

    Sounds all too familiar... :)

    I am with Craig on this one - just present the facts. But I am wondering, what really is a dilemma here? Is it that you're trying to figure out whether to buy or build again? Or, is it deciding whether to present the vendor prices to your CIO or not. If it's the latter - I don't see that as a dilemma - prices are prices; they can be negotiated but you're still paying out the nose. If it's the former - well, that's the whole project and your CIO should deciding that along with you.

    I don't know, maybe I am missing the whole point; in which case, please forgive my ramblings :)

    ReplyDelete
  5. not bad post .... can I repost this in my pex website?

    ReplyDelete

Search This Blog