One of the more challenging areas of process is documentation, requirements and due diligence. For the latter, it can be difficult to get a solid baseline of information when evaluating service providers and vendors.
The process can be systemized in a straightforward way.
- You and your team determine the need for an outside provider to solve a business problem
- As a group you collaborate and write out the requirements you seek
- Your business begins looking for vendors who service the target requirements you have
- The long, slow dance begins of demos, phone calls, brochures, etc.
This Website Is For Financial Professionals Only
One particular step along this path where I am frequently asked for assistance is during the initial due diligence phase. You know what your requirements are but do not want to have to wade through a larger group of vendors and the layers of tasks with each provider. Your team would much rather have an initial screening method and identify a smaller, more relevant list of finalists to begin these activities.
The documents listed below can serve as a starting point for you. Consider this a generic technology vendor evaluation form. The template is best used to evaluate those vertical tools that support financial services solutions such as:
- Data aggregation
- Financial planning
- Forms processing
- Portfolio analysis and reporting
The approach looks at several basic areas of a vendor offering, enabling you to build a matrix of up to four competitors. The PDF can be used as an example to print and consider. The Microsoft Excel worksheet is more interactive, with calculations inserted for totaling costs as well as comments to define some of the requirements in the first column.
Using this matrix approach, you can more easily filter out ill-suited vendors and develop a clear short list that reaches the maximum number of your requirements. Thus your team can dive deeper into due diligence with a group of vendors that pass an initial litmus test against your requirements.
Note: Some of the fields have a drop down once you click into them in the Excel file.
Technology Vendor Evaluation Matrix (Excel)
Technology Vendor Evaluation Matrix (PDF)