Now, we move into the live ERP or SAP sales process. After you complete your RFP and as you entertain all of those proposals, you will see the sales games, scams, and shams really kick in.
As the process unfolds, beware of the many tactics, schemes, tools, and tricks that ERP system integrators use to gain access to your checkbook. Like a magician, they have a bag of tricks– but also a potential million-dollar deal or more on the line. The show begins. Software integrators load up on tricks, schemes, and other ways to separate you from your money.
As the SAP Sales Process Progresses:
- Beware of gifts not directly related to making a decision.
- ERP or SAP salespeople have large expense accounts.
- Additionally, they are practiced at entertaining, influence, and manipulation
- They often play “let’s change the subject” to divert your attention or distract you from the important issues.
- They try to move quickly or distract you with something related but not what you asked for. To counteract this, you should slow them down and use objective scoring protocols.
- They may also try the “chalk talk.” You can avoid this by asking “Can you show me in the system?”. If they cannot simply note that, you will have to score them down on that item.
- “Stump the chump” is a game they play by using technobabble– talking in terms that no one seems to understand but sounds intelligent. Again, simply ask them to “show me in the system.” Also, ask “Can you tell us all what part of the RFP you are addressing, so we can be sure it is scored correctly?”.
- “Isn’t that neat?” is a classic strategy to show you some unrelated but “cool” functionality to distract you from the key requirements you requested. Ask them again: “Can you show me what section of the RFP you are addressing?”. Tell them up front, in the RFP, to spell out in their presentation or demonstration exactly which RFP section they are addressing.
- Things are not always what they appear to be.
- Videotape the sessions.
- Be sure the application has some built-in report functionality.
- The vendor will generally need to use an OS/Server/Hardware/DB. However, the vendor may not mention other third-party applications and “add-ins,” even though they are being used in demos. Beware here. Clarify in the RFP and the contract that the software needs to be all-inclusive of what was demonstrated, or what was presented as “X,” during the demonstration. Additionally, state that it will be videotaped.
- To avoid “vaporware,” you need onsite, hands-on time to evaluate the software. If they want the sale, insist that they provide you access to the software.
- Some vendors will do custom mock-ups of screens or queries to try to gain your business. Then, they develop the real solution on your dime. Think of these as facades, a pretty screen with no functionality attached.
- Carefully evaluate application “consultants” who participate in the proposals.
- They are often only product experts.
- Additionally, they may be compensated for a sale
- Finally, beware of the bait and switch.
- Consultants or their resumes may be presented during the proposal, but then they suddenly have to “leave” the project. Maybe they never even show up.
- “In development” or “beta testing” usually means you will paying to develop the project.
Strategies to Overcome Some of the Initial SAP System Integrator Sales Tactics
The following points were extracted from the post on Breakthrough Project Success: 2 of 4, IT Vendor Proposal RFP.
One of the most important things you can do is develop a rational scoring protocol that addresses how well a vendor adhered to your RFP. Score it by section, and weight it to what is important for your company (a future post will address how to use the AHP method).
Ensure that the vendor provides live demonstrations of system functionality. This way, the vendor brings knowledgeable consultants to the proposal. After all, they will have to take time with some of their internal resources, so they can set up the demo and have some of their knowledgeable consultants available to show you system functionality and answer questions.
Ensure that the vendor provides the implementation tools and samples of each of the templates and resources they use for the project. Offer to sign an NDA to eliminate any of their arguments about proprietary information (see SAP Success Factors for Vender Selection – Responsibility Matrix 2. About two-thirds of the way down the post is an RFI table.).
During a vendor selection, the most important consideration is the consultants. I recommend telling the salespeople to stay home and asking the vendor to have the proposed project team do the proposal. They are the ones who will deliver the solution, they are the ones who will be the greatest influence on your project success (or failure), and they are the ones who you will be paying for. If you would like more information on this, please see the following posts:
- FIXING Stupid SAP Vendor – Partner Selection RFI – RFP Processes
- More on Stupid SAP Vendor – Partner Selection RFI-RFP Processes
- Why SAP Vendor – Partner Selection RFI Processes are Stupid
Make absolutely certain that any commitments the vendor makes during the presentation are documented or recorded, even if on video, so that they can be held accountable. Work with your legal counsel to incorporate claims made by the ERP system integrator into the contract. That contract must also contain penalties for breach.
In the end, you owe it to yourself and to your company to protect your future and the company’s investment. Invest your time and energy in due diligence.
Stay tuned next week as we move “Deep into the sales cycle.”
