Why Fixed Bid RFPs Suck and Agile-Oriented RFPs Don't

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  1. 1. Why Fixed Bid RFPs Suck and Agile-Oriented RFPs Dont by Brad Bush https://by.dialexa.com/why-fixed-bid-proposals-suck-and-agile- oriented-rfps-dont
  2. 2. Dialexa We are on a mission to make every company a great technology company. We work with organizations to define and execute digital transformation strategies to improve business operations and customer experiences. Our services include: Multi-Year Technology Roadmap Platform Engineering User Experience Design Custom Software Development Hardware Prototyping /IoT
  3. 3. In a perfect world, RFPs would not exist. But the reality is that RFPs are often necessary, which is not necessarily a bad thing. Get the full write up of this slideshare at https://by.dialexa.com/ why-fixed-bid-proposals-suck-and-agile-oriented-rfps-dont
  4. 4. After all, they force the you, the customer, to document your needs, while giving you a format in which to compare and contrast potential vendor partners. Get the full write up of this slideshare at https://by.dialexa.com/ why-fixed-bid-proposals-suck-and-agile-oriented-rfps-dont
  5. 5. The challenge is, in a world where legal and regulatory teams prefer the safety and formality of an RFP and purchasing teams/departments desire predictability and the ability to templatize the process, the use of the RFP continues to be a common practice. Get the full write up of this slideshare at https://by.dialexa.com/ why-fixed-bid-proposals-suck-and-agile-oriented-rfps-dont
  6. 6. No problem. Get the full write up of this slideshare at https://by.dialexa.com/ why-fixed-bid-proposals-suck-and-agile-oriented-rfps-dont
  7. 7. So, you need anRFP. Whats the best approach to get you on the right path to obtaining the product and results you need? Are there even different approaches? Get the full write up of this slideshare at https://by.dialexa.com/ why-fixed-bid-proposals-suck-and-agile-oriented-rfps-dont
  8. 8. Yes, but Ill get to that in a minute. Lets start by explaining whats NOT the best approach: the fixed bid RFP. Get the full write up of this slideshare at https://by.dialexa.com/ why-fixed-bid-proposals-suck-and-agile-oriented-rfps-dont
  9. 9. Why do fixed RFPs suck? Its simple: They incentivize low quality and incentivize a bait and switch mentality of "bid low and make up the difference on change orders." Get the full write up of this slideshare at https://by.dialexa.com/ why-fixed-bid-proposals-suck-and-agile-oriented-rfps-dont
  10. 10. And yet, they're the most common type of RFP. Get the full write up of this slideshare at https://by.dialexa.com/ why-fixed-bid-proposals-suck-and-agile-oriented-rfps-dont
  11. 11. Why? Two reasons:cost and predictability. Purchasing departments love them. Legal teams prefer them. (Some) customerslike them. Get the full write up of this slideshare at https://by.dialexa.com/ why-fixed-bid-proposals-suck-and-agile-oriented-rfps-dont
  12. 12. Unfortunately, so do software design and/or development firms that: cant compete on quality so they have to compete on price, alone havent played in the space in which you compete are willing to give up margin (possibly sacrificing quality) to have your logo in their portfolio are using low cost or offshore labor for a vast majority of their work are exhibiting any number of the red flags we previously wrote abouthere Get the full write up of this slideshare at https://by.dialexa.com/ why-fixed-bid-proposals-suck-and-agile-oriented-rfps-dont
  13. 13. Basically, the more you drive the price down, the greater the risk of low quality and you not getting ultimately what you and your users need. Get the full write up of this slideshare at https://by.dialexa.com/ why-fixed-bid-proposals-suck-and-agile-oriented-rfps-dont
  14. 14. Building software is an inherently risky proposition. You dont really know what youre going to get until you dig in and start building it. Get the full write up of this slideshare at https://by.dialexa.com/ why-fixed-bid-proposals-suck-and-agile-oriented-rfps-dont
  15. 15. Believe it or not, while this is the most common form of RFP, it's a relatively new approachand a departure from the centuries old conceptthat values quality, partnership and craftsmanship over the lowest price. Lets explore this old concept... Get the full write up of this slideshare at https://by.dialexa.com/ why-fixed-bid-proposals-suck-and-agile-oriented-rfps-dont
  16. 16. The vast majority of software projects today are developed using agile methodology, themost common method for software development. Get the full write up of this slideshare at https://by.dialexa.com/ why-fixed-bid-proposals-suck-and-agile-oriented-rfps-dont
  17. 17. At Dialexa, we believe that projects which take agile development one step further and are based in the philosophies of thedesign-buildconceptfrom the beginning, have more successful outcomes. Get the full write up of this slideshare at https://by.dialexa.com/ why-fixed-bid-proposals-suck-and-agile-oriented-rfps-dont
  18. 18. Ask yourself this: What do the Empire State Building, St. Patrick's Cathedral and Wrigley Field all have in common? Get the full write up of this slideshare at https://by.dialexa.com/ why-fixed-bid-proposals-suck-and-agile-oriented-rfps-dont
  19. 19. These were all risky undertakings performed in risky environments that became great feats of architectural design and building practices and have stood the test of time, but they wouldnt have been so had they been farmed out to the lowest bidder. Get the full write up of this slideshare at https://by.dialexa.com/ why-fixed-bid-proposals-suck-and-agile-oriented-rfps-dont
  20. 20. Simply put: When you design-build, you get a better product. Get the full write up of this slideshare at https://by.dialexa.com/ why-fixed-bid-proposals-suck-and-agile-oriented-rfps-dont
  21. 21. AN ALTERNATIVE: THE AGILE-ORIENTED RFP Get the full write up of this slideshare at https://by.dialexa.com/ why-fixed-bid-proposals-suck-and-agile-oriented-rfps-dont
  22. 22. Google it. Yeah, it doesnt exist- not formally at least. But savvy customers have been using the premise of theagile- oriented RFPfor years. Get the full write up of this slideshare at https://by.dialexa.com/ why-fixed-bid-proposals-suck-and-agile-oriented-rfps-dont
  23. 23. It's based in the methodsof agile development and more in-tune with the realities of software product development. Get the full write up of this slideshare at https://by.dialexa.com/ why-fixed-bid-proposals-suck-and-agile-oriented-rfps-dont
  24. 24. This fact, alone, should make us all wonder why are so many proposals fixed bid, which doesnt support an agile development approach? Get the full write up of this slideshare at https://by.dialexa.com/ why-fixed-bid-proposals-suck-and-agile-oriented-rfps-dont
  25. 25. The best approach is to write your RFP to better accommodate for the agile development process, the most common (and in most cases, the best) software development process. Get the full write up of this slideshare at https://by.dialexa.com/ why-fixed-bid-proposals-suck-and-agile-oriented-rfps-dont
  26. 26. The agile-oriented RFP is based on managing the project end-to-end, including discovery - understanding users, process and systems requirements design - translating the requirements into a user interface and visual language development - creating the software Get the full write up of this slideshare at https://by.dialexa.com/ why-fixed-bid-proposals-suck-and-agile-oriented-rfps-dont
  27. 27. Writing anagile-oriented RFPmay seem impossible but if you frame it around the concept of velocity vs. cost, you will come up with creative ways to make it work for you. Get the full write up of this slideshare at https://by.dialexa.com/ why-fixed-bid-proposals-suck-and-agile-oriented-rfps-dont
  28. 28. Velocity is not a foreign concept in RFPs. It's not uncommon for support to be quoted and billed at a cost per time period (usually a month) or a set of resources per time period. Get the full write up of this slideshare at https://by.dialexa.com/ why-fixed-bid-proposals-suck-and-agile-oriented-rfps-dont
  29. 29. Simplify it this way: Request a velocity-based quote on design and development - the two parts of the project after the discovery phase. Get the full write up of this slideshare at https://by.dialexa.com/ why-fixed-bid-proposals-suck-and-agile-oriented-rfps-dont
  30. 30. While its essential to have an idea of what you ultimately envision the product looking like and functioning, we suggest focusing more on your philosophy and objectives for the project. Get the full write up of this slideshare at https://by.dialexa.com/ why-fixed-bid-proposals-suck-and-agile-oriented-rfps-dont
  31. 31. Try not to make architectural decisions upfront, if you can avoid it. This could limit your project from the best final solution. The more you dictate, the less agile the project is. Get the full write up of this slideshare at https://by.dialexa.com/ why-fixed-bid-proposals-suck-and-agile-oriented-rfps-dont
  32. 32. For example, if you were building a house that needs three bedrooms and two bathrooms in 3,200 square feet across two stories, you wouldnt start by picking out the bathtub faucet in the master bedroom. Get the full write up of this slideshare at https://by.dialexa.com/ why-fixed-bid-proposals-suck-and-agile-oriented-rfps-dont
  33. 33. Describe the major objectives - especially the business objectives - and let the iterative agile process hone the right details. Get the full write up of this slideshare at https://by.dialexa.com/ why-fixed-bid-proposals-suck-and-agile-oriented-rfps-dont
  34. 34. So by now youre thinking It sounds great, but without tight parameters, how do I know that th