Control CLM Acquisition Risks with an RFP-Driven Contract

December 14, 2007 @ ContractMinds - The Blog for Contract Lifecycle Management from jlipple

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Here’s an inflammatory statement for you: I believe that software demos should be considered as entertainment and sales engineers viewed as actors in TV commercials. Or, to put it another way for all you folks out there of my vintage who remember the acronym WYSIWYG, in a demo, What You See Is Not Necessarily What You Get (WYSINNWYG). And yet, time and again, I see companies buying CLM solutions that will cost several hundred thousand dollars a year solely on the basis of demos and the warm and fuzzies they create.

Now I’m not saying that demos can’t be helpful, because they certainly can. But they need to be viewed more skeptically, and only in the context of a broader and more rigorous selection process. To make a major software acquisition solely on the basis of a demo is like watching a sitcom and believing it’s the real world.

No vendor in their right mind would do a demo that highlights their product’s warts, and every buyer should recognize this. So why accept it on blind faith that because the demo looks good, and the sales engineer is endearing, that the solution will meet a wide range of complex requirements and be able to adapt to changing needs over a protracted period of time? It just makes no sense!

The good news is that buyers can protect themselves against false impressions—or, similarly, ensure that good impressions are valid–and surprise of surprises, the process involves the contract itself. My proposal is this: When issuing an RFP for a CLM solution specify in the RFP itself that the vendor’s response will be included as an addendum to the contract. This really is the only way that buyers can at least have a measure of confidence that claims made in the response have a chance of being accurate. Furthermore, if blatant lies, or marketing crap, are included in RFP responses, and a purchase is made anyway, the buyer has a leg to stand on when it comes time to sue the pants off the vendor. With this protection demo viewers can finally sit back, enjoy the show, and watch the vendor squirm. - Terry Nicholson

This article is syndicated from ContractMinds - The Blog for Contract Lifecycle Management . The original article is available here. Read more in Contract, ContractMinds .

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