Do traditional software RFPs drive business value?

Selecting the right software is a pivotal decision for any organisation aiming to enhance efficiency, streamline operations, and remain competitive. For decades, organisations have leaned on traditional Requests for Proposals (RFPs) and Requests for Information (RFIs) to define their needs and evaluate vendors. Yet, as the software landscape evolves, this conventional approach is increasingly scrutinised for its ability to deliver true business value. This article examines the traditional RFP process, its shortcomings, and an innovative alternative championed by PM-Partners that prioritises outcomes over rigid specifications.

The traditional RFP process

The traditional RFP process is a structured, multi-phase undertaking that many organisations adopt to procure software. It begins with gathering detailed requirements from internal stakeholders, a task that can take weeks or even months. These requirements are meticulously documented into an RFP, which is then distributed to a range of vendors. Responses flood in, and the organisation evaluates them to create a shortlist. What follows is a series of vendor presentations, product demonstrations, and rounds of clarifications, negotiations, and contracting. This exhaustive process is designed to leave no stone unturned, ensuring every feature and function is accounted for.

However, this approach often becomes a double-edged sword. RFPs tend to be so prescriptive that they mirror the organisation’s current systems rather than envisioning future needs. The focus skews heavily towards feature-by-feature checklists, sidelining broader business value. Vendors, constrained by these detailed specifications, have little opportunity to showcase their industry expertise or innovative solutions that could propel the organisation forward. The result? A drawn-out process that prioritises documentation over strategic alignment.

Why traditional RFPs miss opportunities

The cracks in the traditional RFP process become evident when you dig deeper. Modern software vendors—whether global giants or niche players—can typically answer “yes” to almost every requirement listed in an RFP. Some capabilities come straight out of the box, while others rely on configuration or customisation. For the buyer, this creates a problem: the responses offer little tangible differentiation. A vendor’s ability to tick boxes doesn’t reveal how well their solution aligns with the organisation’s goals or how effectively it will perform in practice.

Moreover, the prescriptive nature of RFPs stifles creativity. By handing vendors a laundry list of requirements, organisations inadvertently do the vendors’ homework for them, leaving no room to demonstrate thought leadership or propose transformative ideas like automation. Implementation and ongoing support—crucial to long-term success—are often glossed over in favour of feature comparisons. The process also fails to assess the vendor’s team dynamics or cultural fit, elements that can make or break a project. Ultimately, traditional RFPs risk locking organisations into solutions that meet today’s needs but fall short of tomorrow’s opportunities.

Enter the pilot or proof-of-concept approach. Unlike the paper-heavy RFP, a pilot lets organisations see the software in action with their own data and scenarios. It also introduces them to the vendor’s implementation consultants—key players in the project’s success—offering a glimpse into how the partnership will unfold. This hands-on method shifts the onus onto vendors to prove their industry knowledge and highlight innovations that might not have been on the organisation’s radar.

The PM-Partners selection process

Recognising these gaps, PM-Partners has pioneered a streamlined, value-focused alternative to the traditional RFP, validated across dozens of engagements. This three-step process reimagines software selection to prioritise business outcomes and vendor collaboration.

Step 1: Go-to-market preparation

This stage mirrors some aspects of the RFP process but with a twist. PM-Partners leverages pre-built capability models to capture requirements across functional areas, prioritising those that drive improvement—think automation, cost reduction, or process simplification. Unlike traditional RFPs, the approach deliberately leaves space for vendors to showcase their product and industry leadership. By withholding some key industry-specific requirements until later stages, PM-Partners ensures vendors must bring their A-game to stand out, rather than simply parroting back the organisation’s wishlist.

Step 2: Vendor selection

Vendor selection unfolds in two phases. First, a desktop review surveys the market, tapping into peer organisations’ experiences and conducting research to identify both established players and emerging vendors. Local capabilities—such as implementation expertise, support, and partnerships in Australia—are weighed heavily. From this, a shortlist emerges. These vendors receive a concise RFP, designed to elicit focused responses within a shorter timeframe. For government clients, PM-Partners collaborates proactively with procurement teams to meet probity and compliance rules without derailing the process.

A critical focus here is distinguishing between out-of-the-box functionality, configuration, and customisation. Vendors often label complex tweaks as “configuration,” but PM-Partners digs deeper. Complex configuration can be riskier than customisation—lacking documentation and transparency—whereas customisation at least provides readable code. Post-response, the shortlist may narrow further, with vendors receiving a targeted brief for presentations and demonstrations. These sessions zero in on the organisation’s needs, while still carving out space for vendors to share their latest innovations and industry insights.

Step 3: Vendor pilot

The final stage brings the shortlist—typically one or two vendors, often with a frontrunner—into a pilot phase. For niche applications, a full pilot is feasible, with the vendor paid to build a solution that could transition into production. For enterprise software, where scope is broader, an extended demo or conference room pilot takes precedence. Here, vendors configure their solution using the organisation’s scenarios and data, followed by a deep dive into the changes made. This exposes ease of use, configuration complexity, and impacts on Total Cost of Ownership (TCO).

The pilot also unpacks the end-to-end implementation and support model. Vendors walk through every facet—data migration, integration, testing, change management, and training—using PM-Partners’ best-practice frameworks to estimate effort accurately. Support options, from technical assistance to environment management and upgrades, are scrutinised to align with the organisation’s existing structures. A classic pitfall—like vendors claiming “users can create reports” only for it to require SQL knowledge—is avoided through this granular approach. Finally, vendors demonstrate their cutting-edge features in the organisation’s context, proving how they drive tangible value, such as cost savings.

Benefits of the PM-Partners approach

This reimagined process delivers clear advantages over traditional RFPs:

1. Faster time to market:

By trimming the RFP and focusing on high-impact areas, PM-Partners accelerates the selection timeline, getting solutions into play sooner.

2. Insights and ideas:

Vendors are incentivised to offer fresh perspectives and innovations, enriching the decision-making process beyond generic responses.

3. Deeper evaluation:

The pilot phase reveals the vendor’s true capabilities, team dynamics, and cultural fit—ensuring a partnership that works in practice, not just on paper.

4. End-to-end TCO:

Detailed planning and hands-on testing expose hidden costs and risks, providing a warts-and-all view that glossy demos and vague plans can’t match.

Traditional RFPs, while methodical, often fall short of delivering the business value modern organisations need. Their focus on exhaustive requirements and feature checklists can lock buyers into solutions that meet the status quo but miss the mark on innovation and long-term success. PM-Partners’ approach flips the script, blending strategic preparation, concise vendor engagement, and practical piloting to unlock smarter software selections. For Australian businesses and government entities alike, this method offers a path to not just choosing software, but choosing value.