1. Software Supplier Selection

　　Ideally, this process will revolve around the Invitation to Tender (ITT), which has set out the firm's functional, technical and contractual requirements such that the project team can compare competing solutions. The ITT may also be known as a Request for Proposal (RFP).

　　Skidmore and Eva suggest a five-stage process for vendor selection.

　　1.1. Obtaining tenders: The ITT will typically be sent to several companies with capability to deliver the system change and will include sections that describe the response process, the response format and key dates. In addition, the ITT will have the following sections:

　　Background

　　Summary of current IT system(s)

　　Key functional requirements

　　Key technical requirements

　　Price considerations

　　Request for references

　　1.2. First-pass selection: For common, off-the-shelf systems, there may be many vendors that can supply the software. The first pass allows the selection committee to identify three to six suppliers that specify the best software solution, implementation process and value for money.

　　Generate a worksheet documenting responses to key points in the ITT.

　　Sort the worksheet based on these responses.

　　Screen down to a number of vendors that the committee can further explore.

　　1.3. Second-pass selection: The selection committee does an indepth review of firms surviving the first pass.

　　Schedule and hold supplier presentations.

　　Contact references provided in the ITT process.

　　For larger or more complicated projects, it may be necessary for the IT team to assess the supplier

　　Determine each supplier's financial stability.

　　Select two to three of the most promising suppliers.

　　Conduct site visits where the software has been implemented.

　　Decide on a vendor.

　　1.4. Implementation: This will include all steps required to

　　realise the key success criteria:

　　equipment installation (if necessary);

　　software installation and time frames;

　　software customisation and response times; and

　　training.

　　1.5. Managing the long-term relationship: This part of the selection process should be specified to some extent during the second-pass selection stage, and finalised prior to actually negotiating and signing the final contract. This will involve the steps in virtually any relationship, including:

　　developing (and limiting) expectations on both sides;

　　establishing channels of communication; and

　　establishing key dates and reminding the supplier of key dates at various points through implementation, update, upgrade and all other points in the cycle.