Performing a Market Analysis for your Software Project Solution – Part 1

I recently completed a lengthy vendor market analysis for what will turn out to be a very large enterprise-wide software implementation.  In fact, it will end up being the largest of it’s kind in its specific industry.  So let’s look at this.  Your company needs a project handled and it’s going to require that an outside company has a hand in it and it’s important that you get the best because it’s going to be long and it’s going to be costly. 

Whether it’s a software application that is going to be implemented on this project or it’s finding the 3^rd party company to actually perform the implementation or do some significant work on it, it’s important to analyze the available options and make the right choice.  Let’s examine at least one possible process to get that done.

Phase 1 – Document the Requirements

It’s critical that you and your organization have detailed knowledge of your requirements and business processes going into a market analysis like this.  Everything I’ve written up to this point in my other articles assumes that we are delivery and they are the customer.  For this article…for a market analysis…the tables are turned.  We are the customer and they are the vendor.  You’re still the Project Manager running the show, but now you’re the customer and the vendor or vendors have to show they can meet what you need.

Therefore, you need to know what your requirements are, what your ‘as-is’ business processes are and what you want your ‘to-be’ business processes…um…well, to be.  If you don’t know that, then you’re not ready for this and you’re certainly not ready to move on to Phase 2.

Phase 2 – Identify the Potential Sources

Initially, you and your team – or just you depending on the size of the undertaking – need to identify who the main players are.  Know which vendors you need to initially consider for this undertaking.  Make the field too small and you won’t get a good cross-section of the offerings and capabilities.  Make the field too large and you will spend too much time and money just narrowing the group down to the size it should have been in the first place.

Phase 3 – Beginning the Dog and Pony Show

Let’s assume you start with 8-10 vendors who are offering a software package or implementation that, at least on paper, comes close to what you visualize your end solution to be.  In your gut you know that 3-4 of them probably won’t cut it, but they’re worth a closer look.  Include those 3-4 ‘on-the-bubble’ vendors and l them play themselves out of consideration because one could surprise you and offer a reasonable solution at the best price.

To start things off, contact each of the vendors via email with the following information:

• An introduction of yourself including your contact information
• A summary of your project or software need
• An invitation to participate in the market analysis
• A proposed date/time for a one-on-one kickoff call

Next

In Part 2, well look at slimming the field so that a more detailed analysis can be performed on the leading candidates.  This will allow you or your team to focus on the vendors that can actually do the job right and allow for the detailed efforts to be spent on finding that best solution.

Related posts:

1. Performing a Market Analysis for Your Software Project Solution – Part 4
2. Performing a Market Analysis for Your Software Project Solution – Part 3
3. Performing a Market Analysis for Your Software Project Solution – Part 2
4. A Quick Guide to Performing a Vendor Market Analysis for Your Large Project
5. Performing a Market Analysis for Your Software Project Solution – Part 5