Setting the Stage for A Successful Project

1. Setting the Stage for A Successful Project (The Art of Buying) RFP/RFQ Building Blocks Presented by: Emily Nielsen, President 519-473-5373 www.nielsenitconsulting.com

2. Outline • Who is Nielsen IT Consulting Inc? • Current Market Place • What goes wrong with RFP/RFQ’s? • Preparation: Strategy and outcome • Organize your thoughts/requirements • Mandatory Requirements • Legal and procurement policies • One envelope or two? Pricing separate • Current State • Proposed State • Vendor Background • Support Criteria

3. Nielsen IT Consulting Inc. • Established in 1999 • Independent Consultants • Professional Buyer • Specialize in Voice Services-IP Telephony/Wireless/Contact Centre/IVR……… • We offer A to Z professionals services • Assessments to Project Execution. • Assessments lead to RFP/RFQ’s

4. Current Market Conditions • In General - tough 10 years • Y2K /Internet Bubble Bust/ Slow adoption to VoIP-UC…..to Recession. • 1990-1999 strong sales-analogue to digital-voicemail • Recession: • US recession –Businesses are not purchasing new systems • US impact on Canada • Few private sector organizations are making significant investment in infrastructure improvements-unless EoL notification • Majority of work is public sector • Healthcare- Infrastructure Ontario Program • Summer 2010- Boost of Sales-HST 5% -13%

5. Current Market Conditions 1990-1999 strong sales-analogue to digital-voicemail 2000-94,500 Employees World Wide 2001-60,000-Frank Dunn’s Staff reductions 2002- Stock dropped $124 share to $.47 Jan 14, 2009-filed protection from Creditors

6. Current Market • Nortel Bankruptcy • Flurry of activity - do basic upgrades in order to get system to current release • Wait and see • No new applications - status quo • Vendors: Nortel practices for 15-20 years – take on new project offerings – Cisco, Mitel, Shortel • Avaya message has been confusing - Nov 3rd

7. Result • Many bids – mixed results • Sales have been slow – vendors are less picky • Traditional Nortel vendors are proposing new products with no experience or references • Open bids without prequalification will result in mixed responses

8. The Perfect Storm Slow Sales past decade 10-15 year old equipment Dominant Player Gone-Nortel UC is no longer a luxury – basic requirement Shortage of resources

9. What Can Go Wrong, Will Go Wrong! • Starts with a poorly prepared RFP/RFQ • Many RFP/RFQ’s are simply too open, too loose • Therefore, the responses are too broad and are hard to compare • Apples to oranges, not apples to apples • Impact, causes delay and create confusion with vendors and clients • Ontario College: • No quantities, no description of what they currently have. • Futures – Vendors are unclear what are real opportunities or simple inquiries.

10. What Can Go Wrong, Will Go Wrong! • Many RFP/RFQ’s are simply too open, too loose (con’t) • Why? • Evident that author is inexperienced to process and technology/services they require • Public sector – outsources purchasing process to organization that is skilled commodity procurement not strategic acquisition • Result costly mistakes/disappointing results

11. Organization - D • Have your thoughts organized. • Requirements/Pricing/Support….. • Demonstrates professionalism • Shows vendor respect • Hospital: 80-+ separate attachments/documents-extreme case • Everything should be in one document. Other doc’s such as “Submission, NDA, Network diagrams, etc.” should be embedded in the master document

12. Current State: • Visio Voice Network Diagram – high level • Detailed inventory listed • Including inventory/telecom rooms • Visio Network diagram for data environment. Provide environment description – i.e. flat network, VLAN’s, QoS, PoS, etc • WLAN- high-level building diagram showing existing coverage and areas needing additional coverage

13. Proposed Sate • Provide network diagram showing end state • With description • Be accurate with your quantities. i.e. price 50 UM licenses / 50 concurrent agents licenses/ 700 voicemail licences/ 16 port auto attendant • Include a growth factor – 5% • Be clear what is a future verses today’s needs. • Define short term and long term strategy/goals • i.e. Virtualization, Green Strategy

14. Mandatory Requirements • Be very clear • Example: References: Must demonstrate experience in same technology and similar scope. • Unionized Staff • Identification of sub-contractors • Relationships between partners must be defined. • Insurances, etc. • Not following the proposed RFP format. Question: Do any of these items give cause for “non-compliant” bids?

15. Procurement Policies • Sometimes you need to challenge current policies if it doesn’t make sense! • Commodities verses strategic acquisition • Latex? • Read through your procurement templates/wording.

16. Procurement Policies 2. Internal Approval Process – required for project plan schedule. • Don’t get caught short here and expect the vendor to rush the project in order to achieve deadline. i.e. occupancy for new building • Be prepared for questions whose goals are to add clarification for senior management/steering committee • Communicate to senior management during the entire process in order to minimize delays

17. Procurement Policies 3. Know your budget • What are you able to afford • Clearly define exact needs verses futures • Capital verses “lease” • Identify all cost – many elements not included in bid, such as construction cost/cabling, training budgets, etc.

18. Procurement Policies • Single envelope verses two • Pricing is final envelop? • What if you simply can not afford it? What have you accomplished?

19. Vendor Background • Do they have experience working in your vertical? • Do they have experience working on the application that they are proposing? • New to Canada – Investment? • Client base? • Sole source - or do they depend on partners? • What level of dependency?

20. Support Be very clear on your needs What level of support can you depend on your own internal resources. Tier 1 , Tier 2 or fully managed? What are you prepared to pay for training? How many staff can you afford to support your network? - Voice Application specialist. Technician – on site 2 hours? Or around the world 24/7? What type of sparing model will you use? Redundancy verses resiliency?

21. Thank you! REGISTRATION OPENS NOVEMBER 1 www.knowyouralternativesnow.com CORPORATE NETWORKS 2011 MARK THE DATE! Jan 27, 2011 Toronto Marriott Bloor Yorkville For IT/telecom/operations/administrative/finance managers and executives. To discuss strategic, supplier, tactical, financial, technology issues. To move forward in the right direction.