Advantages and Disadvantages to the Client
There
are a number of advantages to the proof of concept (POC) for the client including
- Expectation
synchronization with the vendor
-
Improved ownership of the implementation process
-
Identification of functional gaps or overselling
-
Better understanding of investment required. More accurate scoping provides
a better understanding of the investment required to complete the implementation.
-
Evaluation of the implementation partner. The POC process allows the client
to evaluate the software and also the implementation partner.
There
are also limitations of the POC that should be noted. These are
- Commercial
flexibility. The flexibility incorporated into some POC arrangements whereby
the client may walk away without purchasing the software are rarely used in
reality as a significant investment in both money and time has been made.
Furthermore, the client may be convinced to move into the POC without fully
evaluating all solutions due to the perceived low risk of the POC option.
-
Sales exercise. Depending upon the commercial agreements in place, the POC
can be within the sales cycle thus the ability of vendor for full disclosure
is restricted. Further, the documentation produced within the POC may have
marketing content that does not add value to the project.
The
number of modules to be implemented (such as, a financials-only implementation
versus financials, distribution, and warehouse implementation) increases the
scope of the implementation, thus the risk. Furthermore, the nature of modules
to be implemented also impacts on risk. Modules such as sales force automation
(SFA) within a customer relationship management (CRM) suite tend to
have a higher risk profile than financial modules such as accounts receivable.
The level of expertise within the selection/implementation team is also an important indicator. Factors to be considered are
These factors should be used to measure the expertise of your team. The greater expertise within the team reduces project risk.
The
chart below represents these factors and how to determine if a POC is required
for the selection process: