One of the most challenging aspects of my job is planning our response to requests for proposal (RFPs) that we receive for digitalization initiatives. While the typical RFP process may be effective in scenarios involving procurement of tangible goods such as hardware, or execution of an engineering project with clearly defined deliverables, such as a building expansion or installation of the control system for a new production line, digitalization initiatives are different. These efforts are often inherently ill-defined in the beginning, and the situational nuances, difficult to capture in a 10 - 20 page document, can wildly impact the execution strategy, solution build, schedule, and cost. To make matters worse, a competing firm that oversimplifies specified requirements or associated project activities may present an attractive cost but has little chance of successful deployment and site acceptance. In this article I will explore the reasons for the challenges, considerations, and alternate methodologies.
Challenges:
The RFP may already target a specific software platform. As a services provider, we look to leverage best-in-class solutions across an expansive partner network based upon evaluation of the best fit for our customers, considering functionality, expandability, ease of deployment, cost, and numerous other factors. At the RFP stage, we do not know what motivations drove the customer's decision to focus on a given solution, or what criteria are most important to the customer. Is cost of utmost importance, or does the customer need a highly customizable option due to specific process nuances? Was the solution selection made by stakeholders lacking a true understanding of the software's capabilities and potential detractors? Did the customer consider an alternative option that we may feel is a better fit? All these open questions require us to make assumptions that may or may not be accurate. Alternatively In cases where the customer keeps the platform option open, we have to pick an option based on gut / assumptions, not knowing the answers to these considerations that could help us truly pick the right fit for the customer.
RFPs often present the process and required functionality at a very high level. It may list user requirements like 'production tracking', 'product sampling', or 'maintenance management'. A vendor may look at these requirements and say 'Box checked, we have that!'. However, the customer may be hoping for an extensive sample scheduling component when the software only provides the ability to input ad-hoc sample results for example. Because digitalization projects are often complex and evolving, an RFP that locks bidders into a fixed scope too early can create challenges down the road. The project may require additional features, workflow adjustments, or system refinements as real-world usage scenarios emerge. However, if these needs are not captured upfront, scope changes later can lead to contract disputes, cost overruns, and delivery delays.
Successful digital transformation is not just about technology - it requires internal process changes, stakeholder alignment, training, and careful deployment planning. However, RFPs often assume the customer’s team is fully prepared to adopt new workflows and technologies, overlooking resistance to change, training requirements, or gaps in technical expertise that can delay or derail a project. One bidder may optimistically make best-case assumptions, allowing them to present a more attractive offering, while another who makes pragmatic assumptions is not selected.
Digitalization initiatives often require integration with existing enterprise systems (ERP, SCADA, LIMS, underlying control systems, etc.), yet RFPs may not clearly outline the scope, complexity, or readiness of these integrations. The customer may underestimate the effort needed for data mapping, middleware development, or data synchronization, which can drastically affect implementation time and cost.
Often a customer has already made up their minds concerning who will be selected, but are required to seek a second bid or need to validate what the selected partner has proposed to make sure it is within reason. RFP response generation is a labor-intensive process, requiring substantial time and effort to tailor a proposed strategy based on assumption made concerning what the customer needs. While this is the cost of doing business, it is unfortunate that this effort must be expended by a services provider with little chance of securing the work.
Lastly, RFPs offer a weak feedback loop, with limited ability to truly collaborate with the customer to brainstorm, suggest options, and course correct based upon interaction. The customer is often gated behind a procurement firm or procurement team motivated primarily by finding the best cost or best hourly rate for the work. Questions can be asked but are often addressed with short, incomplete responses. Our benefits as a services provider are our ability to build relationships, solve problems, mitigate risk, and ensure flexibility to meet the customer's needs. It is difficult for these benefits to shine through in the RFP scenario, as the process is often rigid and inflexible.
Alternative Approach:
Rather than responding to an RFP with inherent gaps and assumptions, we often recommend a preliminary engagement leveraging our DxDiscovery and DxArchitecture service offerings. This approach allows us to deeply examine the customer’s current state, engage with key stakeholders to identify bottlenecks and pain points, and construct detailed business process scenarios that highlight critical "to be" workflows and corresponding decision points.
With this structured foundation, we can then evaluate various shortlisted technology options, assessing each against the customer's unique requirements, constraints, and long-term goals. Rather than being locked into a preselected platform that may or may not be the best fit, the customer receives impartial insights that empower them to make an informed, strategic decision regarding their digitalization roadmap.
From there, we provide a clear and realistic estimation of implementation and deployment efforts, ensuring alignment between expectations and execution realities. If the customer still wishes to proceed with an RFP, they can leverage our findings to construct a more precise and targeted package - one that clearly articulates requirements, mitigates ambiguity, and ultimately results in more accurate vendor proposals.
While the customer may have already engaged a consultant to create the RFP, our deep shop floor experience, structured methodologies, and extensive digitalization expertise across diverse industries and technology platforms give us an ability to uncover critical success factors that are often overlooked. This ensures that all essential aspects, including integration complexity, organizational change readiness, and scalability needs, are properly factored into the solution requirements.
Beyond just defining requirements, this collaborative assessment serves as a low-risk introduction to our organization and way of working. It allows the customer to experience our problem-solving approach firsthand, building confidence and trust before committing to a long-term engagement. It also preserves forward momentum, which is often the most critical factor in digitalization success. A lengthy RFP process can stall decision-making, diminish stakeholder engagement, and ultimately hinder project progress. In contrast, our approach enables swift alignment, informed decision-making, and an accelerated path to execution—ensuring the project delivers value as quickly and efficiently as possible.
Summary:
Responding to RFPs for digitalization initiatives is challenging because these projects are often ill-defined at the outset, with critical nuances that significantly impact execution, cost, and success. A rigid RFP process can lead to misaligned expectations, overlooked requirements, and cost-driven decisions that prioritize short-term savings over long-term viability. Where possible, I encourage my potential customers to consider alternatives that preserve momentum and minimize unexpected surprises during implementation.
