The dying art of structured software procurement

There is a wide body of knowledge on how to conduct a rigorous, objective software procurement process. While at Gartner I wrote extensively about techniques like scripted scenarios, analytical hierarchy process, TCO analysis, payback/justification analysis vendor software quality analysis, upgrade path track record analysis and review of vendor services partner ecosystems. Other techniques available to buyers use include RFPs, site visits, financial viability analysis, participation in user conferences, conference room pilots and many others.

Yet with all these tools available, I find that structured software procurements have actually declined over the last decade. It was common for companies to hire a Big 5 consulting firm to help in a software evaluation project. Then clients came to realize these firms were not really that "independent" with their big SAP, Oracle and Siebel implementation practices. Post-Enron, these firms themselves have spun off consulting businesses or have tightened up internal guidelines on independence in consulting projects – and generally seem to stay away from software evaluations. Mid-tier firms like AnswerThink still continue to help clients with such procurements. But the need for rigorous procurements has not declined as the software industry has evolved in to more verticals/geographies/business processes and architectures and partner ecosystems have become more complex.

Well structured evaluations pay back in several ways. There is usually consensus in the buyer team at the end of the process – not just a politically expedient decision. Specialist vendors get a fair shot to showcase their capabilities – and in the process keep bigger vendors honest. The competitive juices that get going in a well run evaluation usually make for much better licensing negotiations.

I suspect software sales executives will groan when they read this. You believe your product is the best and does not need all this scrutiny. Unfortunately, your peers at your competitors feel the same way about their products and there is only on way to decide which is the best – in a structured, non-political kind of way.