Enterprise Application Procurement Decreases Overall Costs

Problem

enterprise-application-smallA rapidly-expanding media company utilized entirely home-grown IT systems to track sales and provide customer service. Because this limited its ability to track customer spend patterns, cross -sell products and services, predict its sales pipeline, and provide integrated customer service, company leadership decided to procure and implement a 3rd party Customer Relationship Management (CRM) system. The media company asked Pace Harmon to provide expert support to procure, design, develop and program manage the implementation of a CRM system for over 700 sales and business users around the globe.

Approach

Pace Harmon was brought in for procurement support after the client had already drafted and released the RFP to prospective suppliers. The client recognized that they would need assistance with the assessment of supplier responses and project management of the subsequent implementation in order to maximize the value of the transaction. Pace Harmon provided the following support:

  • Assisted the client in developing a structured evaluation approach that enabled the client to down-select from five suppliers to two leading candidates based on quantitative evaluations of the responses. The quantitative analysis included the development of a requirement scoring methodology, and a complete pricing and total cost of ownership (TCO) model
  • Supported the client through negotiations, which resulted in a final contract that provided market-leading non-performance protections to the client
  • Created a project management / governance structure for the design and build phase of the project. This included the development and management of an integrated end-to-end project plan and tracking the supplier's progress against established milestones. The team provided a single point of coordination for the client, managed stakeholder and executive-level communications, and developed a project performance dashboard
  • Identified project-specific risks and implemented mitigation strategies
  • Documented the client's business requirements and developed rules to guide product customization and configuration
  • Developed a business transition strategy and change management approach to ensure optimal usage of the new application by the affected employees post implementation

Outcome

  • The agreement with the selected supplier integrated significant protections to the client. This included securing supplier warranties of support for all system upgrades, despite the numerous customizations implemented within the CRM software - thereby mitigating a common source of expense where the CRM software is so highly customized that future upgrades become prohibitive
  • Leveraging our experience in software licensing agreements, our financial analysis identified numerous opportunities to amend the pricing structure and drive down the overall lifetime cost of the product to the client