Upload
alistercrowe
View
681
Download
1
Embed Size (px)
DESCRIPTION
Citation preview
Competitive Assessments: Competitive Assessments: Understanding What the Understanding What the
Competition Will BidCompetition Will Bid2002 SCEA National Conference and Training Workshop2002 SCEA National Conference and Training Workshop
Frank R. FlettFlett and Associates
1830 N. Atlantic Av., C-605
Cocoa Beach, FL 32931
(321)-868-2156
www.competitiveassessments.com
2
AgendaAgenda
BackgroundThe Competitive Assessment Process
– Identifying customer needs– Self assessment– Competitor intelligence– Strategy selection
Winning Price
3
SCIPSCIP
Society of Competitive Intelligence Professionals (SCIP): www.scip.org– Founded in 1986
Serving professionals engaged in the collection, analysis, and management of information on competitive and business strategies– A global community of “CI” professionals
4
SCIP Code of EthicsSCIP Code of Ethics
To continually strive to increase the recognition and respect of the profession
To comply with all applicable laws, domestic and international
To accurately disclose all relevant information, including one’s identity and organization, prior to all interviews
To fully respect all requests for confidentiality of information
5
SCIP Code of Ethics (cont.)SCIP Code of Ethics (cont.)
To avoid conflicts of interest in fulfilling one’s duties
To provide honest and realistic recommendations and conclusions in the execution of one’s duties
To promote this code of ethics within one’s company, with third party contractors and within the entire profession
To faithfully adhere to and abide by one’s company policies, objectives, and guidelines
6
Competitive Assessment ProcessCompetitive Assessment Process
RequestFor
Proposals
GatherIntelligence
CompetitiveAssessment
SelfAssessmentStrengths
And Weaknesses
Win Strategy
Proposal Themes,Features and Benefits
CompetitionDatabase
ActionPlan
Identify andValidate
MIRs
7
Information NeedsInformation Needs
You must have marketing intelligence on:
Your customer(s)
Yourself
Your competitors
8
Everyone Is Involved Everyone Is Involved In Data CollectionIn Data Collection
Winning strategy depends on excellent information network– capture team members– business development staff– field representatives (yours and other companies’)– management– teammates and suppliers
Develop alternate sources to:– correct communications errors– remove biases, opinions, inaccuracies– increase sample size (and confidence)
9
Who Is the Customer?Who Is the Customer?Everyone in the two organizations involved
in buying and operating– the acquisition agency– the user community
Learn everyone’s roles and authority in:– defining requirements– deciding program strategy– deciding selection strategy
10
Customer RequirementsCustomer Requirements All customer requirements are real but do not
necessarily have the same importance– Compliance Issues
“must haves” which all offerors comply with but don’t produce differences among proposals
compliance is a necessary but not sufficient condition to winning
– Discriminators more than the requirement, lower risk approach, etc. result from an assessment against the customer’s Most
Important Requirements (MIRs)
11
More on MIRs More on MIRs MIRs are needed to assess our competitors
(and ourselves!) MIRs for a program in formulation can be
synthesized through regular contact with the program office
Explicit MIRs appear in:– Commerce Business Daily synopses– Draft RFP Section M– Final RFP Section M
12
MIRs: Evolution and SourcesMIRs: Evolution and Sources
CBD
Customer Contacts
Libraries Draft Documents:
Competition SOO
Teammates Statement of Work Final
Trade Associations Sections L & M L&M
Seminars Specifications
Journals
Pre-RFP Draft RFP Final RFP
13
Identifying MIRsIdentifying MIRs
MIRs
Compliance Issues
14
Self-AssessmentSelf-AssessmentSee yourself as others see youUtilize unbiased, objective sources
– Customers– Other companies– Consultants
Resist the tendency to over-emphasize what you perceive to be your strengths– The customer will be the judge
15
Intelligence on OurselvesIntelligence on Ourselves What do we bring to the party? Why should the customer want us?
– unique technical solution– low risk approach– affordable cost– domain expertise– good past and present performance– system and software engineering processes– skills to manage complex teams
Don’t drink your own bath water!!
16
Example of Unique ApproachExample of Unique Approach “We will deliver the Core Operational Capability
(COC) at the first site six months ahead of schedule”– benefit: “our approach could save $1M in O&M costs
on current system as a result of early cutover”– credibility: “we will prove during our proposal
demonstration that, for us, COC exists today”– competition: (unsaid) we know he does not have a COC
capability available until mid-2002, which will barely allow him to meet the required delivery
17
Competitor IntelligenceCompetitor Intelligence Company Data
– Annual reports– Capabilities statements– Trade shows, exhibits, and other presentations
Public data– Dunn and Bradstreet– Government reports– Business libraries– Trade magazines and newspapers– FOIA requests– Source selection debriefings
18
Competitor Intelligence (cont.)Competitor Intelligence (cont.)Interviews (face-to-face or telephone)
– Employees and ex-employees– Customers– Teammates– Consultants
Internet searchesSearch services (e.g., LEXIS-NEXIS)
Competition databases
19
Competitive IntelligenceCompetitive Intelligence
INSTINCT
INTERVIEWS INVESTIGATIONS
COMPANY DATA PUBLIC DATACOMPETITION DATABASE
LUCK5%
CREATIVEDIGGING
15%
BASIC DATA COLLECTION
80%
20
Competitive Assessment Competitive Assessment SessionSession
Involve any and all with knowledge of the competition
Use some sort of scoresheet– maintains focus– provides documentation
Look at strengths and weaknesses of both self and competitors vs. customer MIRs– must be done from customer perspective– must be honest and objective
21
Competitive Assessment Competitive Assessment WorksheetsWorksheets
Most Important Requirements (MIRs) MIR 1 MIR 2 MIR 3 MIR 4
Company X
Company Y
Company Z
Self
22
Scoresheet LegendScoresheet Legend
+ Distinct advantage when assessed
against MIR
0 No advantage or disadvantage
- Distinct disadvantage when
assessed against MIR
23
MIR Shoot-Out SummaryMIR Shoot-Out Summary
MIR 1 2 3 4 5 6 7 8
X
Y
Z
Self
Comments:
24
Action Required If...Action Required If...You are a “-” anywhereYou are a “0” and the competitor is a “+”
Also
If you are a “+”, how do you stay there?
25
Assessment of Strengths Assessment of Strengths and Weaknessesand Weaknesses
Competitor is a “+” and you are a “0”
1. Make yourself a “+”
2. Make your competitor a “0” or a “-” How?
1. Customer requirements change
2. Teaming
3. IR&D or investment
4. What else?
26
Influencing the CustomerInfluencing the Customer• Before formal RFP release, you have the
opportunity to interface with your customer:• Draft RFPs• Electronic Bulletin Boards• Bidder’s Libraries
• Watch how the solicitation package changes• Based on your inputs• Based on your competitors’ inputs
27
Improving Features Improving Features and Benefitsand Benefits
Rethink solutions and strategies– revisit alternatives and trade studies– review teaming alternatives
Reshape customer’s perceptions– revise MIR order of importance– make cost the “most important” MIR– ghost the competitors’ likely solutions
Reassess your ability to compete– can you ever get better?
28
GhostsGhosts Bring to bear the power of Negative thinking! If effectively raised and the competition hasn’t
thought of it and/or countered it, he gets hurt Bring up the ghost, then show that the same ghost
is not in your approach:– “An offeror that does not share our emphasis on
personnel recruitment, training and retention runs the risk of high turnover rate; for the last four years, we have demonstrated the best white-collar retention rate in our industry.”
29
GhostbustersGhostbusters Tackle your own problems head-on
– never ignore a weakness or deficiency– your customer and/or your competitors will know
Devise methods to correct the shortcomings– “Because we experienced some throughput difficulties
on the XYZ project, we invested $500K of our own funds to upgrade our bench test facility in order to protect the aggressive delivery schedule required on this effort.”
30
Reducing RisksReducing Risks Educate the customer on your approach
– white papers, briefings, visits IR&D or investment Demos, simulations, prototypes Fix customer perception of problems Initiate/complete contract tasks prior to award
– accelerates schedule– proves technology– enhances proposal credibility
31
No Stone Unturned!No Stone Unturned! Winning strategy includes:
– some or all of the above– what’s left?
take competition off the street buy competitor(s) leverage off other programs spend to win accelerate or delay RFP what else?
32
Action PlanAction Plan Identify required actions Designate a single person responsible for closure
of each action item Establish schedule and cost for each item Spell out expected result of each item Develop the “Action Plan” Tie plan to MIRs, win factors, strategies
33
Go-No Go QuestionsGo-No Go QuestionsWhat gaps do we still have in technology?What gaps do we still have in personnel?What gaps do we have in experience?Who do we have to beat to win?
We know and acknowledge that we are either the front-runner or else a lesser competitor with a lower probability of win.
34
Learn From Your ExperiencesLearn From Your Experiences Why did we lose? Why did we win? Why did we get tossed out of the competitive
range? Why did we make the “short list” but not the final
cut? Did we make cost and/or technical mistakes? Did we fail (again!) to correctly size up the
competition?
35
Corrective ActionsCorrective Actions Fix customer perceptions
– either they were wrong or you have a problem Team with winners
– a piece of the pie is better than no pie at all! Bid more selectively
– were you ever a legitimate contender? Improve and intensify the marketing intelligence
acquisition process– prompt, positive adjustments to behavior
36
Winning Price…..Winning Price…..
Is a function of:– The competitors’ likely bid prices– The customers budget and his view of “best
value”– The evaluation criteria and cost realism
Remember: there is such a thing as
being “too low”
37
Price-to-Win (PTW) AnalysisPrice-to-Win (PTW) Analysis
Top-down estimating that is based upon knowledge of:– the competitors’ past pricing behavior– current market conditions
Relies heavily on data from recent contract awards for same/similar products or services– but, does not merely use history as a predictor of the
future– requires analysis of today’s environment and its likely
impact on pricing strategies
38
Top-Down vs. Bottoms-UpTop-Down vs. Bottoms-Up
PTW analysis is allocated to the WBS items Bottoms-up cost proposal usually results in
numbers higher than the “bogeys”– Re-verify total PTW– Reassess allocation of the PTW to the WBS– Revise technical/management approach– Continue to iterate the bottoms-up
Either reconciliation is not achievable (and it may be time to fold) or the basis of estimate can be made to support the top-down “bogeys”
39
Iterating the Bottoms-UpIterating the Bottoms-Up
Challenge those areas that don’t reach their “bogey” - accept only reasonable and justified estimates
Get the lowest supplier prices possible and maintain competition amongst vendors
Conduct design trade-offs: repeat, adjust, repeat Don’t accept the excuse that “this is the way
we’ve always done it.”
40
Basis of EstimateBasis of Estimate
Base DataJudgement
FactorsEstimateRationale
SupportableCost Estimate+ + =
Four key questions must be answered:1. What is the base data that was used?2. Why is the base data relevant?3. What adjustments were made to the base data?4. Why are the adjustments appropriate?
41
Competitive Assessment....Competitive Assessment....
Selected Strategy
Technical Price
Superior
Competitive
Minimum
Acceptable
Competitive
Lowest
Credible
Lowest
Customer MIRs
ProgramDefinition
Customer MIRs
ProgramDefinition
Our Options/Win Factors
Strengths &Weaknesses
Our Options/Win Factors
Strengths &Weaknesses
AcquisitionStrategy
Eval Criteria
AcquisitionStrategy
Eval Criteria
Competitors’Strategy/Price
Strengths &Weaknesses
Competitors’Strategy/Price
Strengths &Weaknesses