Welcome to the first edition of RSG's "Real Story Vendor Procurement" (RSVP) best practices series. I'll be sharing some foundational advice on how to replace traditional, waterfall-based approaches to selecting MarTech and CX platforms with a more agile methodology.
The very first step in any selection process is to articulate a business case. You may be tempted to skip this step, but that's a mistake. You'll rely on your business case throughout the project, not just at the beginning to get funding and authorization, but also whenever questions arise.
Traditionally, there are four types of rationales for IT projects:
- Increase productivity, reducing cost
- Enhance value, increased revenue
- Reduce risk
- Transform business model
When articulating a business case, ask yourself, why are you doing this? What are the top six things you expect to gain in the long term? These could be shortening your funnel, improving speed to market, improving customer satisfaction, and so on.
When calculating expenses, include total cost of ownership, accounting for key non-technical costs such as business analysis, education, support, change management, and program management to name a few. The technology itself is typically a small percentage of your overall cost of operations.
In terms of benefits, don't shy away from intangible or hard-to-quantify benefits. Even things like employee morale are very important in a MarTech environment characterized by acute skill shortages.
Let me know if RSG can help you build a solid business case for your next technology investment.
If you're selecting digital marketing / engagement technology, be sure to check out RSG's hard-hitting vendor evaluation research.
The next edition of the RSVP selection series will cover Assessing Risk Maturity. Stay tuned...
Other Posts in the RSVP Selection Series
Establish Business Foundations:
- Articulate a Business Case (you are here)
- Assessing Risk Maturity (coming soon)
Identify Needs and Opportunities:
- Testable Scenarios (coming soon)
Conduct Market Analysis:
- Researching the Marketplace (coming soon)
- Creating a Target List (coming soon)
Communicate with Suppliers:
- Developing your RFP (coming soon)
- Issuing an RFP Tender (coming soon)
- Bidder Questions (coming soon)
- Evaluating Vendor Proposals (coming soon)
Try Before You Buy:
- Conducting Demos (coming soon)
- Filter to Final Lists (coming soon)
- Run of Competitive Proof of Concepts (coming soon)
Make the Right Choice
- Pilot Solution (coming soon)
- Negotiating Pricing and Contracts (coming soon)
- Implementation (coming soon)