Many executives of large organizations see opportunities in the market to implement new technologies that could generate value within the business. However, since they do not have specific knowledge of technology, they have doubts about how to sell the project within the organization. In this blog we tell you an example: how to sell a technology project within the management team.
- Identify the problem
Before starting, the opportunity and challenge that needs to be overcome must be identified in detail. It all starts with understanding the step by step of the current process along with all the parts that are within the process. So, for example, we have a company that has annual purchases of US$100 M and does so through email. This can generate: poor traceability, manual errors, complex audits, few signs of transparency to suppliers, operational wear and tear, poor fluidity between user areas and the purchasing team, long processes .
- Plan the project
Once you understand the specific need you want to solve, you must limit the scope and be explicit in what you want to be solved with technology. An example of this is: A tool for the negotiation phase that allows: conducting market surveys, with the survey adjusting specifications to obtain more private bidders and carrying out reverse auctions for standard goods. The tool must be accessible to: purchasing area, user areas, suppliers and authorized external parties.
If applicable, the specific project can be divided into sub-phases. The Online Bidding Module will be implemented in the first phase without integrations to the ERP.
Being clear about the objective is also crucial . As an example: achieving efficiencies and savings through intensive use of the Platform, ensuring operation, improvements and updates over time.
Finally, the identification of barriers and challenges (external and internal) to overcome in the implementation of the technology project also allows us to anticipate and shorten the process of putting the solution into production.
- Analyze the numbers
Financial evaluation to discourage decision making is essential. Like any project, it requires project finance to be done that includes not only the costs of the tool, but also the savings that would be obtained with the use of it . In the end, IRR, NPV, Payback and ROI are the main financial indicators that support decision making. Each organization has particularities in its way of operating so the variables can change.
<< Download an example Project finance template here o evaluate the return of a technology project in the e-Procurement area. >>
- Establish Next Steps
To gain full visibility, stakeholders need to know what comes next if approval is given. What is their role and importance within the development of the project. The high-level schedule usually makes this clear.
An example of this is:
a) Confirmation of technical validation and expectations of the Procurement team (1 week)
b) IT and Finance confirmation of the tool selected by Procurement (1 week)
c) Approval of the business blue-print by the project leader (2 weeks)
d ) Carry out internal change management (1 week)
e) Step to Productivity of the technological platform (2 weeks)
f) Kick-off and go live (1 week).
With these 4 steps we have seen how multinationals have managed to accelerate their internal approvals and achieved technology implementations in record times . If you are interested in knowing more about technology projects for the Procurement and/or Treasury areas, write to us to guide you in the process.
