Efficient Selection Methodology by N-Pulse

FTSS Methodology Fast Track Solution Selection Decide and implement new IT systems fast and efficiently

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Fast Selection Methodology

The traditional vs the FTSS model

Benefits and pre-requisites

Implementing a selection strategy

The FTSS approach

Implementation

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Traditional approach to Supplier selection... RFI / RFP / RFQ …      

is often an extremely long and expensive process for both the Service Provider and Suppliers (3-6 months RFP, 3-6 months selection, 3 months negotiation…) the requirements comprise a definition of “as is” functionality (and processes) along with a wish list of additional capabilities – leading to a customised solution business benefits of the customised solution are marginal and total cost of ownership of the solution becomes an issue evaluation approach often uses parameters that are potentially flawed and does not validate the capability of the Supplier nor business value from the solution ends up with a “new” solution which is effectively an upgraded version of the existing system negotiated commercial terms tend to release payment against delivery of function as opposed to fulfilment of business value based metrics often does not provide the expected business value

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The Fast Track Solution Selection (FTSS) model… 

typically is completed within 3 months – inclusive signed contract.

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places an emphasis on the Supplier to demonstrate knowledge and value while being sensitive to the existing local circumstances and conditions

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requires only a short catalogue of high level capability requirements which relate to the business metric related needs of the Service Provider. Communicated to the Supplier for use in identifying which reference Customer(s) would be used for demonstrating the value of their offering and as the “reference solution” itself

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enables the Service Provider to not anymore be effectively the solution designer but let the Supplier come up with an appropriate solution

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requires the Supplier to emphasise / demonstrate not just solution delivery but process change and how that will be translated into business value

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requires the Supplier to come up with how their solution can deliver against business metrics (KPI’s) and how they are willing to be paid for their fulfilment

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encourages Service Providers to negotiate terms that pay against value and providing bonuses for exceeding expectations

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leverages the experience of external advisors in the short-listing, validation,

selection and negotiation process © N-PULSE GmbH

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Fast Selection Methodology

The traditional vs the FTSS model

Benefits and pre-requisites

Implementing a selection strategy

The FTSS approach

Implementation

ÂŠ N-PULSE GmbH

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Benefits of FTSS... 

Gaining time: a 3-phase approach which shortens the time to implementation drastically (from more than 12 months to approximately 3 months)

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Better transparency: A limited number of Suppliers to analyse which offer products best fit the business requirements of the Service Provider

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More flexibility: for both partners to face possible changes in the implementation process by drafting a solution-oriented collaboration agreement

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Faster implementation: using existing maturity of the system limiting the adaptations and changes of the system

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Reduced cost of ownership: faster time to value and lower customisation reduces overall OGS (ongoing support) costs and enables Service Provider to obtain value from standard software solution

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Business change catalyst: proven operational processes and procedures facilitate business operational changes that streamline the way a Service Provider works

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External consulting advisors: provide impartiality, knowledge of the Supplier solutions (the good and the bad) and ensure that the process is auditable

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Pre-requisites for making FTSS a success 

Executive management buy-in – if you aren’t ready to do things differently and obtain business value – don’t do it!!

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Defined business goals that you want the solution to deliver against – if you don’t have them how can you justify any IT programme? (LOI has reference ones if you need some!!)

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A holistic investment view – plan for the cost to implement and be prepared to pay bonuses (to the Supplier AND your people) when expectations are exceeded

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A well staffed and empowered program – have good people motivated to meet business goals as opposed to protecting their job (or empire!)

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A willingness to change – processes and people are easier and less expensive to change than software code

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A change of procurement policies & processes – negotiate with expectation and incentive for success not protecting yourself from failure

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Fast Selection Methodology

The traditional vs the FTSS model

Benefits and pre-requisites

Implementing a selection strategy

The FTSS approach

Implementation

ÂŠ N-PULSE GmbH

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Key principles of the FTSS approach... 

Time is of essence

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Contract with the Supplier to deliver NOT an external SI (who doesn’t necessarily provide value, reduce risk or have knowledge of a solution)

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Take calculated risks

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Don’t build your own aircraft

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Think global – act local

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Suppliers are part of the solution – not the problem

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Negotiate “fair” deals However keep in mind:

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It is unlikely that a bought system will satisfy 100% of the Service Provider requirements. The trade off is the 80/20 Pareto rule Internal Service Provider knowledge of the product will be less than if it was built in-house - but you are no longer a software company!

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Solution replacement decision tree... Implement a “lead supplier1” strategy based on the following principles: defined system need to meet a business goal?

Yes

Is the current system functionally OK?

Yes

Lock-in roadmap to reference architecture

Yes

Lock-in roadmap to reference architecture + required enhancements

Yes

Lock-in roadmap to reference architecture + required enhancements

Yes

Lock-in roadmap to reference architecture + required enhancements

Yes

Reference architecture + management of additional ext. Support

No Can we get the supplier to upgrade/ update? No Solution available from Lead supplier1? No Solution available From niche supplier2?

1) Lead

Supplier: refers to a Supplier who is responsible for delivering, integrating and implementing a solution or suite of solutions to meet a business need 2) Niche

Supplier: refers to a Supplier who has a specific solution that would be integrated by a Lead Supplier or, worst case, by an external SI company

No Consider In-house development No

Defer need until market catches upl

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Accelerate the process / FTSS essentials

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Dispense with lengthy RfI, RfQ and RfP preparation

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Use existing or define business goals

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Prepare simple but appropriate business requirements documents (incl. business terms, KPI targets and data points for measuring KPIs)

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Dispense with RfI and RfQ phases all together

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Employ trusted and supplier neutral advisors with extensive experience and knowledge on systems, suppliers and market

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Move directly to a short list of candidate Suppliers

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Judge products on their ability to meet your requirements and constraints

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Also judge suppliers on a holistic approach (like/dislike, trust/mistrust etc.)

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FTSS basic expectations and requirements

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The solution will address, at a minimum, a specific set of near and medium term business goals

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Keep in mind: there are a limited number of differences between you and similar Service Providers in other geographies (with the same basic business goals and similar product offerings)

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All eligible Suppliers will have solutions successfully deployed in a similar Service Provider which would be used as the reference - from a functionality definition perspective and for delivery of a baseline “pre-configured” solution

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A Service Provider’s commitment exists at executive board level to accept a business change based initiative (including process and organisational implications) for a major programme or at CIO/CTO level for smaller programme

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The Service Provider needs to define the business functional need – probably including a high level business case

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The Service Provider also defines high level business requirements reflecting its specificities – usually compiled by the business user community

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Fast Selection Methodology

The traditional vs the FTSS model

Benefits and pre-requisites

Implementing a selection strategy

The FTSS approach

Implementation

ÂŠ N-PULSE GmbH

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The FTSS stages ...

Stage 1

Beauty Contest 2 days in total min 3- max 6 Suppliers

Stage 2 Workshop 2 days per candidate

Activities include: Activities include: - Preparation of high level requirement - Conduct 2 day workshops with each of candidates document - Invitation with description of procedure - Candidates to present - Business change fundamentals and expectations (2-3 weeks lead time) - technical solution - 2 hours presentation by the invited - commercial terms candidates - Reduce number of candidates to 2 - Assessment of the presentations - Result: Number of candidates reduced to 2-3

Stage 3 Reference Site visit / contract negotiations Activities include: - Conduct 1 day site visits with 1 reference customer per supplier - verify results of workshop - gain clear view of system capabilities - commercial negotiations in parallel with both candidates

Time elapsed 3 â&#x20AC;&#x201C; 4 weeks ÂŠ N-PULSE GmbH

3 to 4 weeks - 14 -

4 to 5 weeks Confidential Information - No Reproduction Permitted

Fast Selection Methodology

The traditional vs the FTSS model

Benefits and pre-requisites

Implementing a selection strategy

The FTSS approach

Implementation

ÂŠ N-PULSE GmbH

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Recommended implementation approach

Operational units / Program Office Matrix (PMO) Operational goals

PMO

Balance

Dual key control of decisions

Change goals

Day to day Operatonal units 

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The dual-key approach is designed to allow Service Provider departments to continue to have responsibility for meeting their current business goals they have today, while operating alongside the Program Office who are in turn responsible for driving change to meet the company’s future goals. A balance has to be struck between the immediate needs of the business today and the urgent goals that the company is striving for over the coming years

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Recommended implementation approach

Crucial Role of the Program Office …    

Installing the right team Getting the best program manager Setting clear goals Allocating adequate decision making power

… and its vital responsibilities :     

Overall program and project management Time and quality management Supplier and resource management Risk management Investment management

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Business change principles 

Don’t lets today’s organisational structure dictate how to the change should occur – the organisational structure is bound to change

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Focus on your core competencies, no matter how proud your heritage, software product development and systems integration are rarely core competencies of telecom operators

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Use external standards to drive your software investment don’t get locked in to your own, or someone else's legacy

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Whatever time you think you have before competition bites, it’s not enough –

therefore, fast track selection – you can’t afford not to!! 

Become vitally concerned with how your business works inside – just wheeling in new technology will not change you, its your business processes

that need to change

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The value to you…

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Time and money saved

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New system deployed and operational in shorter time and with shared risks

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Business change implemented within your organisation

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Re-usable methodology for other investments in IT and other domains

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Business flexibility being implemented in your IT domain

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You are not the first – the principles have been successfully used worldwide (e.g. in Russia, Scandinavia and are underway in Asia-Pac)

Can you afford not to do it?

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Many thanks for your time!! Come see us at: www.N-PULSE.de

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