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Ralph Witcher
Director, SW Specialist
What Is It?
Decision Tools for
Vendor Selection
is Gartners
dedicated IT
vendor and
product selection
service.
Created in 1995,
Gartners Decision
Tools for Vendor
Selection
covers technology
selections in over 20
IT areas.
Gartners Decision
Tools for Vendor
Selection helps
organizations make
better, faster and
more cost-effective
technology
selections.
Identify appropriate
differentiating criteria
Divided attention
Uncertain scope
Assign relative
importance within this
structure
Tactical instead of
strategic focus
Political agendas
Help!!
Challenges . . .
Time:
3-to-15-month cycle time
9 months average elapsed time
Resources:
8 to 20 persons on decision team
Cost:
Selection costs 20% to 40% of dollars
spent
$500,000 purchase cost $100,000
to $200,000 selection
Risk:
An inappropriate selection
Potential project failure
Negative impact on business
processes
Goal!
To get it right!!
What?
When?
How?
Build Consensus
Make Better Decisions
Research Methodology
Market data is derived from
three distinct sources:
Combines Gartners
Research
With
Selection Methodology
Refined Hierarchical
Analysis (RHA)
Being used by
commercial,
governmental, military and
nonprofit organizations
around the world
Research
Process
Math
Decision-specific criteria
Deliverables
Decision Engine
Software
21-Step Best Practices
Approach to Making IT
Decisions
Monthly Database
Updates
Best-of-Breed RFI
Unmetered Telephone
Access to the Vendor
Selection Analysts
Models (Cont'd)
Marketing Automation
HR Application Software
Average Number
of People Within
Organization Who
Consider Decision
Without
Gartner
6-18
Months
12
With
Gartner
3-6 Months
Average Cost to
Organization of Product
Selection for Enterprise
Resource Planning*
$225,000 in
labor costs
$131,250 labor
+$25,000 Gartner
$156,250
Assumptions: Individual
spends one-quarter of
total time researching,
reviewing and negotiating
for selection of a
prepackaged business
application product.
Individual is salaried at
$75,000 per year.
Client
Final Quote
from Vendor
Final
Purchase
Price
Approximate
Amount
Saved
Manufacturing
Company in
Northeastern U.S.
$1,564,000 including
manufacturing, accounting and
supply chain software, services
and maintenance
$915,000
$649,000
Manufacturing
Concern in the
Southwest
$1,640,000 including
accounting and HR software,
project management and
maintenance
$650,000
$990,000
$550,000
$550,000
Gartner @ Xplor
Gartner Decision Tools for Vendor Selection
Ralph Witcher
Director, SW Specialist