At every enterprise company, some processes are stuck in the past. You might hear, “That’s just the way we’ve always done it.” It can be difficult to evolve this mindset and embrace innovation. But when it comes to a Request for Proposal (RFP), it’s time to change the game.
Enterprise companies are still holding on to outdated RFP processes that have not yet caught up to technology advancements. It’s time to evolve the way things have always been done into a modern process that will thoroughly evaluate the AI and technology solutions that enterprises are using every day.
RFPs are an outdated answer
RFPs have been the go-to way of evaluating software and assets for purchase since the 90s. But in that time, technology has advanced by leaps and bounds, while the process of RPFs stayed stuck in the past.
RFPs are an inefficient waste of time when it comes to evaluating software in modern environments. They do not align with current business practices, and slow down the decision-making process. RFPs are simply an unnecessary step that can delay testing and implementing new solutions.
Most importantly, RFPs do not provide hands-on experience with the product. It’s similar to buying a car: when you’re ready to buy, you don’t waste time and delay the process with an RFP. You simply get in the car for a test drive.
It’s time for enterprise organizations to replace RFPs with more direct and efficient methods of evaluating and implementing AI and other software solutions.
The modern way to evaluate software solutions
Instead of wasting time with an RFP, enterprises can simply test the software within their own environment. If you are considering two different solutions, they can be tested against each other in your environment before making the final decision.
To do this, you can either conduct a Proof of Concept (POC), utilize a free trial, or conduct a pilot test. Instead of spending time going through the lengthy RFP process, cut right to the chase and see how the software performs. Get hands-on experience with the software and test how user-friendly it is. See if it truly meets all your needs and whether or not it solves your problem. A POC or pilot test will give you a treasure trove of information on which to base your decision, whereas an RFP is just a written proposal without any real-life experience to back it up. RFPs are just a theoretical evaluation tool.
Test with the outcome in mind
Although it’s tempting to do a smaller test just to get a feel for the software, we suggest diving deeper and doing a more rigorous pilot test in order to fully understand how the software will function in your environment. Ensure you are using enough data or enough of your environment to get a meaningful outcome. For a financial intelligence platform like Terzo, we recommend a pilot with larger data sets of at least 5,000 to 10,000 data points.
A high-quality pilot will take significant resources, but if everything goes well, it should be able to prove ROI and demonstrate specific and meaningful business outcomes. This will put your enterprise in a good position to evaluate if the AI solution can scale to solve problems across your entire company.
You can always start with a free trial to ensure the technology works, but doing a POC or pilot test will provide a thorough evaluation of the solution’s capabilities and potential business impact. From there, it should be clear whether or not your “test drive” has been effective.
Innovate with intention
It’s time to embrace change and innovation. Think critically about which process makes sense in your modern environment, and which will solve the problems you’re facing.
Remember, no one does an RFP to buy a car. They just test-drive the car.
If you’re ready to discover how Terzo's AI-powered contract platform can help your enterprise drive operational efficiency, reduce spend, and improve your financial results every quarter, reach out to the team at Terzo for a free consultation.
