Choosing the right vendor to supply your mission-critical software solutions has always been difficult. But, since all of the vendors talked about the 'next generation' of solutions, you never had to worry about whether the vendor you picked had a strategy for the future - it's all they ever talked about. The challenge was to find out what it was they were actually proposing to sell you - after all, the 'next generation of software' is by definition not available. The fallback position was to discover how well the vendor's representatives - both salesmen and product experts - understood your business, your industry and the problems you face on a daily basis. And who would bet against the salesman most trusted by the selection team getting the business?

Today's selection processes are designed to help overcome the problem, by attempting to discover the fit between your requirements and the product that the vendor can demonstrate. However, it does beg the question of how well the vendors really understand your business. If they're selling you technology vision, but you want to buy proven technology with demonstrable Return On Investment (ROI), there's a glaring mismatch.

The lull in the market has started to bring about a sea change. Customers are requiring more reassurance about ROI, and want more talk about business benefits and less about technology vision. Vendors seem to be responding. On the face of it, the return to talking about ROI and available technology should be a welcome change. Indeed, at the most recent SAPPHIRE events (SAP's user conferences), Hasso Plattner, SAP's co-CEO, concentrated on discussing the business benefits and ROI of solutions that are available today and relegated the technology vision for the future to a few words at the end. This is particularly important, because in the ERP world (and even the post-ERP Enterprise Applications world), SAP is such a dominant vendor that the industry has to take notice of what SAP says and does. An end to hype-filled technology vision pitches and a return to business benefits looks to be on the cards.

The real dilemma faces both technology vendors and those responsible for selecting them. It is that, while you want to buy proven technology, you also want to ensure that the vendor that provides your mission-critical system will be around for years to come. As well as providing the solutions you need now, they must also pass the "will you be here in 5 years?" test. Users need to be confident not only in the financial stability of the vendor, but also that the vendor's technology development roadmap will deliver the solutions they need. The dilemma for vendors is how much emphasis to place on future technologies, rather than today's solutions. The dilemma for selection teams is similar - how to find the balance between reassurance for the future and performance for today. The onus really has to be on the vendor to get it right - at the point of sale, they need to display a good understanding of the prospect's industry and requirements, and need to demonstrate the required solution - the vendor's evangelist - often the CEO - can then be left to outline the company's technology vision.

Judging from Hasso Plattner's SAPPHIRE presentation, the backlash against hype that emanated from the dot-com boom and bust seems to have gone too far the other way. If the vendor's evangelist is talking solely about ROI and today's solutions, what chance do prospective clients have to judge the future product development direction? On the other hand, can the strategy that has seen SAP thrive during a hard time for technology vendors be such a bad thing? It appears that after all the years of the software market being dominated by technology pushed by the vendors, there is now some evidence of customer power as vendors attempt to give customers what they have been asking for - maybe those CRM systems really do work!

The challenge ahead for the customers and selection teams is to guide the vendors in the right direction. The vendors are listening to you - now is the time to ask all those awkward questions. Not only should you ask about what functionality is actually available today, but you should also demand to see case studies and ROI examples. Ask to talk to current users that are in your industry sector. While you're about it, ask about their future development plans and vision for the future. Try to get them to outline a technology roadmap and commit to the elements that are critical to you. It's time to drive a hard bargain - a lot of the vendors are desperate for your business. And if any vendors are still in there pitching for your business, then you can buy from the salesman you like the most.

Dan Roberts

email dan.roberts@cambashi.com

A version of this article by Dan Roberts was first published in the August 2002 issue of Conspectus www.conspectus.com

Other Cambashi articles that may be of interest:

In 2004, will PLM and SCM still be recognisable TLAs?

Is industry doing enough to deliver on collaboration?

What are the returns on investment (ROI) from CRM?

CRM in the real world

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