software salespeople

ERP software integrators and their salespeople are quite skilled at creating a “fog” around key selection criteria. Because of the amount of money at stake and the potential for huge commissions many of them will do almost anything to “get a deal.”

For years, SAP consultants have dealt with the frustrating messes that software salespeople make. They promise anything, no matter how unrealistic, just to make a sale. Then the consultants have to deliver that promise.

With these kinds of sales models, consulting managers, senior managers, or “engagement managers” often have to work to reset your expectations as soon as they land the project (see Scams, Shams, ERP System Integrator Tactics). They systematically take back the promises that the salespeople made. In the end, you receive almost none — if any — of those promises. Sometimes, the ERP system integrators deliberately use this as a sales “strategy.” Other times, the failure is an unintentional but unfortunate result of an overzealous sales person who is willing to do anything for the contract.

Let’s start this series by understanding who these salespeople are.

Early in the ERP System Integrator Sales Cycle

It takes a special type of person to do well at high-dollar, high-stakes ERP software sales. For instance, they need to be personable and quite charming. At the same time, they can be manipulative. Some of them (certainly not all) are convincing and skilled verbal manipulators who can look you straight in the eye and lie to you with a smile on their face and a firm hand shake.

  • Vendors sales people are trained to become your friend and to gain your trust.
  • Software Sales People are:
    • Highly Trained Professionals
    • Educated to know and expect your next move
  • Extremely Personable
    • Sincerely appear sympathetic to your needs.
  • Vendors are trained to find who says “Yes” (targeting key decision makers).

If you understand the games ERP vendors play as you go through this process, you will be far more effective at not becoming a victim to their tactics. As the sales cycle begins, these SAP or ERP sales people use a number of techniques to distract you from what really matters in your RFI and RFP process. One of the first places to begin overcoming many of the vendor sales tactics is long before you ever entertain you first RFI.

SAP or ERP Software and Vendor Selection – First Things First (Governance and Control)

After you have decided to replace your current systems, or at least investigate the possibility, you must set up governance and controls. Mechanisms that review and manage the process are critical. Otherwise, you may become little more than a speed bump to sophisticated sales practices. The more objective and structured your approach is, the less likely you are to fall victim to some of the sales scams. Some of the important things to do early in the process include the following:

  • Establish a Steering Committee
  • Define Near-Term and Long-Term Objectives
  • Determine interface requirements
    • Which system(s) do you want to replace
      • What are the license and maintenance cost considerations
    • Which systems will stay
    • Which systems may need to be modified because of the change
    • Which systems will need interfaces
  • Refine Scope with Complex or Exception Processes (see Using SAP Solution Composer for SAP Scope – Process Alignment)
  • Evaluate the need for “traditional” third party software (taxes, EDI, fax or e-mail integration, etc.)
  • Confirm software and hardware budget estimates
  • Select a Project Team and a Project Leader
    • Define Authority
    • Engage them in the scope and selection efforts
  • Create a Review Process

These initial steps are like the foundation for building a house. If you do a good job with the foundation, then the rest of the building has a good footing. If you take too many shortcuts, or if you measure incorrectly, you end up with a mess– your plans will be different than you originally expected to accommodate the foundation problems.

More Background on SAP or ERP RFI – RFP Processes

The initial efforts listed here will set the stage for your SAP or ERP RFI to your vendors, then the RFP from your short list vendors, and finally your vendor selection and management of your project. If you decide to eventually develop a center of excellence, then this initial foundation will become a key component to your marketplace competitive strategy.

For more background on SAP or ERP system integrator and vendor RFIs or RFPs, see the following posts:

Stay tuned as we look at the actual sales process. We will review some of the classic tactics and strategies as you move deeper into the sales process.

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