Unconventional Wisdom?

Over years of working with clients, I have found that the most effective way to evaluate an a strategic software project and assess its value has been through a small scale collaborative effort in which both client and vendor invest and participate.  Such an approach serves the best interest of both parties, not just the vendor.

This is true when a client-specific, use-case-specific solution is required for making very complex, very valuable decisions.  This collaborative approach provides several important benefits for the client:

A) Alignment – The vendor quickly gains deep insight into the client’s specific requirements.  In this way the vendor can be sure to capture all key requirements and fully test and demonstrate the value of the solution.  In many cases, the prototype can form the basis of the first phase of the implementation, so the project is ready to start, should the client decide to proceed.

C) Risk Reduction – Because of the learning that takes place prior to any major commitment on the part of the client, the risk associated with a decision to proceed with the overall project is greatly reduced.  The client’s decision regarding whether or not to proceed with the project is more informed than it could be in any other way.  For example, the estimate of the likely return on investment is much more precise.

D) Client Learning – The client learns the vendor’s software and its capabilities better than they could in any classroom setting and  in a very short period of time.

E) Time to Value – The alignment, risk reduction, and client learning drive a faster time-to-value for the overall project.

A joint investment in a small-scale collaborative effort is also a prudent approach.

As a case in point, consider an investment of $10K to evaluate a project costing say $200,000, with a potential ROI of $1 million or more per year.  One might say that it not only makes good business sense to invest the $10K, but that the value achieved in terms of alignment, risk reduction, learning, and time to value make it a bargain.

This seems like a wise approach to me, but unfortunately, it is far too infrequent.

Thanks for stopping by.  I’ll leave you with these few words to ponder from Sir Ronald Gould, “When all think alike, none thinks very much.”

Have a wonderful weekend!

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About Arnold Mark Wells
Industry, software, and consulting background. I help companies do the things about which I write. If you think it might make sense to explore one of these topics for your organization, I would be delighted to hear from you. I am employed by Opalytics.

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