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Controlling the System Selection Process

When acquiring a new computer system, many organizations fail tocontrol the process, from definition of requirementsthrough negotiation and implementation. There is a psychology todealing with systems vendors that buyers shouldobserve to obtain the best system for their needs at the lowest cost.

Controlling Vendors

The first step in effectively negotiating with vendors is to establish control early in the relationship. Vendors willattempt to control the situation, revealing only those things about the system that they want the purchaser to know. If the buyer fails to outline its requirements and establish how the system will be selected, it can very easily be led by thevendor down a path to purchasing an overpriced system that doesn’t perform the functions it needs.Therefore, the purchaser must take control from the outset. The first thing a company should do is define itsrequirements carefully. Thoroughly consider what your organization needs and wants, then define a plan of steps youwill follow to evaluate and select the system. Companies that adhere to a selection plan retain their objectivity andgenerally come out with a better system at a lower cost than those that approach the acquisition more haphazardly,following the vendor’s lead.It is essential that the purchaser communicate all its requirements to the vendor in the request for proposal. Specify allhardware, software, and services required, right down to the connecting cables. To enhance their bargaining positions,vendors often propose the smallest system that will meet the specifications at the highest price it thinks the buyer willaccept. Peripheral devices, electronic equipment, custom modifications, and services necessary to the functioning of thesystem are often left out of the vendor’s proposal if the specifications do not address these. As a result, the purchaser’sultimate investment may be significantly higher than the bid.Screen out vendors who do not meet your critical needs or who meet a lower percentage of your requirements. Note,however, that it can be difficult to determine whether a system will meet your requirements based solely on a written proposal. Consider having vendors conduct a brief qualification demonstration, focusing on your key requirements, toidentify full-demonstration contenders.To maintain control during the full-system demonstration process, the buyer should formulate all itsrequirements into ascript that the vendors must follow. Thus, vendors will be forced to address all of the purchaser’s requirements andwon’t be able to ignore any deficiencies.You should negotiate with more than one vendor to maintain your negotiating power and keep your options open. Set updemonstrations with the three or four vendors closest to meetingyour needs and spend an equal amount of time withthem. If a vendor believes that its product is the sole or leading contender, it will gain control of the negotiations.

Avoiding Vendor Tactics

Because a vendor will never say anything negative about its product, the purchaser should ask questions designed toelicit factual responses. Avoid leading questions that give the salesperson an opportunity to expound upon the virtues of the product. Ask questions rather than raising objections; salespeople are well trained at turning objections intoadvantages.Vendors often organize seminars and similar events designed to sway the prospective purchaser. Some seminars aregiven as a matter of course, while others are held as a means ofregaining the attention of a wavering customer.Purchasers should stick to their selection plan and not attend these events. No new information is likely to be gained atthese events, and the generally waste the buyer’s time.