At a recent event
for technology vendors sponsored by AMR Research, the question
was raised about “what would make a perfect software
vendor” from a customer perspective.
I’ve been thinking about that question, especially as there was far from
any consensus at that gathering as to what that vendor would look like. To
be meaningful, the characteristics of the perfect vendor would have to be realistic,
meaning it can’t include things like “give us everything for free.” But
that said, I have a few thoughts across a variety of dimensions.
We’ll start with a company’s goal when buying the software to begin
with: results and value. I was talking to a friend at the AMR event, and we
agreed that the “perfect” software vendor would have built a solution
that started to provide “instant returns” from its deployment.
This means that the buying company starts to achieve improvements in profits
and cash flow almost literally from the day the software is turned on.
This is actually a big difference from many software applications, for which
(of course) a strong ROI estimate can be built, based on improvements over
time. But even when that time frame is as short as a year, how often does a
company start putting money back in its pocket from day 1 after go-live? The
reality is rarely, though there are some exceptions (more on this in a future
column).
I think a perfect vendor would combine both its solution and expertise to accelerate
this “time to value” to enable immediate returns.
What else would characterize our perfect vendor?
Now, I well understand the practical business and technology challenges that
make it difficult for any vendor to achieve “perfect” status.
I also strongly believe that even the “perfect” software vendor
would not be able to achieve any thing like perfect customer satisfaction
ratings – there just seems to be an inherent amount of dissatisfaction
with software that no one will ever eliminate.
Nonetheless, I think we could also agree that many vendors have some ample
room to move between where they are at and some notion of perfect. And buyers
should be thinking this way when making evaluations across different vendors.
What do you think would make a “perfect” supply chain software
vendor? Should more supply chain software providers focus on providing clear,
immediate improvements in profits/cash flow from their deployment?
Let
us know your thoughts. |