Search

How To Define Technology Requirements for an RFP

In this post, StackPlan demonstrates how to write clear requirements that bring in the best proposals.

Table of Contents

  • Home
  • >
  • Blog
  • >
  • How To Define Technology Requirements for an RFP

Developing a list of requirements is one of the first steps in the request for proposal (RFP) process, yet it’s often rushed or overlooked.

Well-crafted technology RFPs ensure you and your stakeholders are on the same page and will get you valuable bids from the best software vendors for your needs.

Without clear requirements, you might find yourself stuck with the wrong software provider, leading to unhappy users, unsatisfied customers, and untapped potential for your business.

But, not to worry! In this post, we’ll show you how to write clear requirements that bring in the best proposals.

What are Technology RFP Requirements?

Your RFP requirements are statements that outline the needs and considerations for a specific technology initiative. Potential vendors use these requirements to ensure they’re a good fit for your project and have the ability to meet the goals you’re trying to achieve.

Determining Your RFP Requirements

Deciding what to include in your requirements for your technology RFP is a two-stage process. You’ll need to gather stakeholder input and conduct a needs assessment.

1. Gathering Stakeholder Input

Formulating requirements for a technology assessment RFP requires collaboration, so start by deciding who to include. You don’t need feedback from everyone in the company. Prioritize key stakeholders who have valuable insights for your specific technology assessment. This reduces the “too many cooks in the kitchen” pitfalls and keeps the project moving forward.

As a general guide, you should get perspectives from at least one person in each role and step of the current process. For example, if you plan on updating your accounting software, you’ll need input from accountants, payroll managers, bookkeeping clerks, financial analysts, etc. 

The more feedback you can get on your current processes (from the right sources), the better your requirements for your new initiative will be.

2. Conducting Needs Assessments

A needs assessment is a systematic process of identifying, analyzing, and prioritizing an organization’s needs and requirements. For a technology RFP, a needs assessment helps you understand the current state of processes, identify gaps or deficiencies, and determine what is required from the new technology solution. This usually includes internal surveys, customer satisfaction surveys, interviews with key stakeholders, data analyses, and competitor analyses.

Types of Technology Requirements

There are two types of technology requirements to include in your RFP: functional and non-functional.

Functional Requirements

Functional requirements specify what the new software or solution should do. This includes how the new software should meet user needs and achieve objectives, service levels, downtime/uptime, redundancy policies, etc.

Non-Functional Requirements

Non-functional requirements define the attributes, characteristics, and constraints that govern the system’s behavior, performance, and user experience. Rather than showing what the new software should do, the non-functional requirements outline how it should perform. This could include performance expectations, security protocols, usability, reliability, and scalability.

Both function and non-functional requirements are essential for success, so detail them both in your technology RFP.

The Art of Writing Clear Technology RFP Requirements

Companies often rush requirements or skip this step altogether. It’s like a restaurant cooking an entree without taking a customer’s order. Botching this step leads to software solutions that won’t meet your needs. 

Instead, write strong, concise requirements using the following tips (and RFP technology template examples).

Use Clear, Concise Language

Your list of requirements should be short, concise, and without industry jargon or undefined acronyms. Use a bullet point list to keep them clear and avoid ambiguous language.

Bad example:

The new accounting software should integrate with our other systems and POS. 

Good example:

The new accounting software needs to integrate with GoCardless for automatic charges on set invoicing dates.

The clearer your requirements, the easier it is to find software that meets all of your needs. If you include any ambiguous language, you might end up with software that doesn’t function as you need it to, leading to bottlenecks and user frustration.

Avoiding Ambiguity and Assumptions

In the same thread, avoid assumptions when writing your requirements. Potential vendors are unfamiliar with your company, goals, and current systems, so everything should be outlined explicitly to avoid ambiguity.

  • Bad example: The new CRM software should be flexible with a range of features.
  • Good example: The new CRM software should scale to handle an increase of X users per year and provide analytics and reporting, order management, and contact management.

Bad example:

The new CRM software should be flexible with a range of features.

Good example:

The new CRM software should scale to handle an increase of X users per year and provide analytics and reporting, order management, and contact management.

Get Advice From an Expert

One of the best strategies for developing clear, concise requirements is to consult a software implementation expert. Not only do they have industry-specific experience in creating RFPs, but they also have multi-system expertise and know exactly what you should be looking for in your new software. 

The Unique Requirements of SMBs

SMBs have little room for error, and most have little time to waste. Smart, strategic SMBs leverage RFPs to take the guesswork and finger crossing out of securing the best software for new tech initiatives.

To do this, SMBs need to create RFP requirements that align goals with budget constraints without compromising quality. Here are a few tips to do that effectively:

  • Create a list of priorities for your project from most to least important. If you can’t meet all of your goals within your budget, this will show you what can and can’t be compromised on. 
  • Be up-front about your budget when writing your technology consulting RFP – it’s important to get bids from vendors that fit within your budget. 
  • Look for software grants that can help increase your budget for the project.

Common Pitfalls to Avoid

We’ve worked with countless businesses to create highly effective RFPs that get results, and we’ve seen many failed technology RFPs that didn’t hit the mark. Here are two common pitfalls you can avoid for better success.

Overloading Requirements

It’s tempting to write a long, exhaustive list of requirements and expect your new software partner to deliver on everything, but doing so can set you up for disappointment.

Writing excessive or unrealistic requirements will lead to budget overruns and missed deadlines, so keep your list manageable and achievable. At a minimum, create a list of high, medium, and low-priority requirements to help assess which can be put aside for the future.

Ignoring Future Scalability

Don’t develop requirements tailored to your current state. Instead, think about scalability and where you want your business to be in the future. Planning for future growth and scalability means your new software will grow with your business, saving you time and a lot of resources in the long run.

Get Guidance on Your Technology Requirements

Technology requirements are often rushed through or overlooked in RFPs, but they are a crucial component that ensures you invest in the best software for your business – now and in the future.

By investing time and resources in creating a winning technology consulting RFP now, you’ll help ensure a successful technology procurement and get the most out of new software.

Get in touch with our StackPlans software advisors today for help writing effective, results-driven requirements and a winning RFP for your next software initiative.

Want to stay in the loop?

Join the StackPlans community today and learn more about how to build your technology roadmap, select the right software for your organization, and work with an expert tech advisor to get your software working in harmony.

Tradify

Tradify is a cloud-based job management solution designed for trade businesses, including electricians, plumbers, builders, and other service professionals.

Join the StackPlan Community Today!

Be the first to learn about events, featured Tech Advisors, tips, and other offers by signing up below!

Newsletter Signup
First & Last
Do you consent to receiving emails from Stackplan.com?

Join the StackPlan Community Today!

Be the first to learn about events, featured Tech Advisors, tips, and other offers by signing up below!