Whether you're purchasing enterprise software or a niche application, the more questions you ask the vendor before you sign the contract,  the better. While features, functions, costs and other criteria are important decision factors, you need to ask open-ended questions to reveal less tangible aspects of the vendor's company, policies and  customer satisfaction.

A careful investigation in the selection phase will spare you from unwelcome surprises and headaches later. For example, a vendors’ training or support policies could potentially strain your relationship if you do not inquire beforehand how these areas are handled.  These policies could be negotiated differently in the contract — or you could decide to select another vendor whose policies are more customer friendly or compatible with your organization's needs.

 ► Ask first, buy later...

As part of your RFP, or Request for Proposal, you should include a section that allows you to ask open-ended questions that elicit a narrative response. Requiring each vendor to answer the same set of questions allows you to compare each company "apples to apples" and helps ensure you do not overlook important information.

For instance, in the area of training you may wish to ask each company to describe their approach, what types of materials they provide and where the training is held. If the training occurs at your location, will you be billed for their travel time to your site... and at what rate?

How about support? Is there a guaranteed response time for answering your problem calls? How will you be informed about known bugs? Is telephone support included in the support fees, or will you be charged on a per call or hourly basis? Is support available 24/7? (If not, is the support office fully staffed 8 a.m. to 5 p.m. in your time zone?) Where is the nearest support office and how many technical staff and programmers are posted there? What is their maximum delivery time for custom programming jobs, and are they willing to guarantee this in the contract?

Aside from training and support, it's good to know as much as you can about the software company you plan to do business with. The more you know about their history and corporate culture, the more likely you are to engage with a reputable and respected company.

Find out how long the company has been in business and how many users they have. How many new users did they add the previous year... and the year before that? What were their gross and net revenues the past three years, and what percentage went toward R&D? Are they a publicly traded company or privately owned? (If publicly traded, does the management have a big stake in the company, and how well has their stock performed in recent years relative to their peers?)  The answers to these questions will not only help you determine what kind of company they are, but also how likely they may be to merge or be taken over by
another company.

 ► What do their customers think?

Be sure to also ask questions about customer satisfaction. How many customers do they have with fully implemented systems (of the type you are planning to purchase)? Are they involved in any lawsuits? (Of course, merely being sued does not make a software vendor "at fault," but it's good to be aware of any lawsuits and determine for yourself if they have merit.) When you request references, ask for the names of their five or ten most recent installations to obtain a more accurate sample of customer satisfaction.

Another important area of inquiry is the company’s upgrade policies. Find out when their next upgrade is planned and what new features will be included. What will the upgrade cost be, including custom programming, installation and training? Does the company sponsor a Users Group and what role does it play in suggesting enhancements? If there are government regulations your organization must adhere to, ask questions about the vendor’s update policies related to specific regulations and then request guarantees in the contract to protect yourself in the future.

There are many more topics you may wish to query the vendors about as part of your RFP process, such as system maintenance and performance. The RFP is the perfect way to gather this information. It ensures that all vendors are asked the same set of questions and that all responses are documented so they can be incorporated into the contract.

With the help of an automated RFP software tool, such as the ON-LINE CONSULTANT,  vendors’ responses can be viewed side-by-side so you can quickly compare how each vendor responded to each question. This proven software selection tool also provides a valuable template of questions to ask vendors, which you can add to or modify to meet the needs of your organization.

 ► "Never take no shortcuts"

While it can be tempting to take shortcuts and skip the RFP process because you do not have "enough time," think of how much time — and money — you'll spend by not getting detailed answers to your questions before you sign a binding contract. As Donner Party survivor Patty Reed noted in her journal, "Never take no shortcuts and hurry along as fast as you can."

With the help of an automated RFP software tool like the ON-LINE CONSULTANT, you'll have time to ask the right questions... and still meet your project deadlines!

See Part I article: "How to Write an RFP: Defining your needs

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