Key Criteria for a Choosing the Best Vendor/Partner with a Proof-of-Concept Exercise

Do you need to do a Proof of Concept (POC) during vendor selection??

A key question facing many organizations as they move through the latter stages of the vendor selection process is: “Should we do a POC?”?

For large transformation projects like PAS modernization the answer is, if possible, then yes. A POC is the best way to see the potential vendor in action. You’ll get real experience in working with them, you’ll see how they approach problem-solving and implementation, and you’ll be able to evaluate if they have the technical ability to address your business needs.?

Before you initiate a Proof-of-Concept exercise with one or more potential vendors it’s a good idea to ask your short list of candidates:?

Question: Can you share examples of Proof of Concepts you have participated in??

This question is important because it demonstrates what types of challenges the vendor has tackled for other carriers, and it reveals how willing they are to undertake a large effort like a POC.?

While it’s true that some POCs can be little more than an extended demo running over a few hours, most are much more involved. At its core, a useful POC begins with choosing one of your critical business needs and then asking the candidate to create a solution that would meet that need.???

What type of POC you decide to implement depends to a degree on your size and willingness to accept the time and financial implications of a large evaluation. But whatever your situation, keep in mind that modernization is a generational decision that your organization will live with for at least twenty years. Give it the time and attention it deserves.??

Make sure your POC covers capabilities that you haven’t been able to see during the sales demos. Include:?

• Features unique to your environment, country, and region?
• Highly complex business processing, calculation, volume testing, etc.?

Invest in the POC?

And, since you may be asking a lot of the vendor—perhaps weeks or months of prep time—earmark budget to pay them for the completion of this step. Not only is it fair, but it confirms your own executives’ commitment to the project, as well as discounting any vendor excuse about not having time or resources to deliver.??

And make sure to factor in the internal resources you’ll have to dedicate to providing the candidate with requirements and information they need to complete the POC.?

The process of the POC can be revealing about a number of important things you can’t understand from RFP answers or reference checks. You should treat the POC as if it’s Phase 0 of the implementation. Meet the staff who would be involved because they are a significant consideration in your decision to go forward. If you can’t work easily and effectively with them, or you find your companies’ cultures are at odds, then don’t subject yourself to that pain for the next 2+ years.?

This is also a great chance to understand the degree to which the vendor understands your business. You’ll get a good sense of whether or not they are aligned with what you are trying to do.?

From RFI to POC—a final word on vendor selection?

As we have detailed over the past few months, policy administration system modernization is a generational event—and can be a career-defining decision. It deserves as much attention and careful consideration as you can give it, because the ramifications of whatever you decide will have impacts on your organization for decades to come.??

Push beyond the traditional vendor selection process and the typical questions that vendors are always asked. They’re well-prepared to field those—in a way that shines the best possible light on their capabilities.??

Instead, ask the surprising, more difficult questions that make them uncomfortable because they reveal the truth about their capabilities.?

Make sure to always be clear in defining terms (like NEW products), take the time to involve all the stakeholders in your organization, and build a collective set of comprehensive requirements. Use those requirements to evaluate each vendor’s capability to meet your unique needs rather than a generic set of attributes.??

And, most importantly, talk to as many of the vendor’s clients as you can to uncover proof of the vendor’s assertions. Ask them the same questions you’ve asked the vendor and push to get a detailed understanding of what actually happened—and what didn’t.?

The work you do today—the smart questions you ask vendors and their clients—will pay off for years to come.??