Recently, I was helping a business understand some proposals offering services for implementation of management performance reports together with analytics capability. What we found, at the end of the day, was unit pricing was the major “criteria” for selection of implementers, regardless of the application, solution, experience and confidence in making the project successful.
If you have ever been to a doctor, which choice would at the end of the day cost you more? An experienced doctor or a “fresh” out of college doctor? For a doctor rookie, stomach ache could come from various causes, so to make his assumptions solid, he will send you to do several lab testes, which more or less would be included in the final bill. Compare this to an experienced doctor who’s been in the field for a long time. He could almost conclude (from conversations and statistical background of the area and patients behavior) the likelihood of the cause without the need for lab tests.
Another example is in the construction business. Which choice would cost you more between an experienced carpenter and a plumber who also said he can do the carpenter’s job? A construction friend of mine tells me that for every project he handles, he only relies on experienced workers, for in the long run it costs him less. Being able to manage parallel tasks and calculating the amount of concrete and finishing the project within the deadline is the critical requirements that can’t be learnt from college.
Although the solution cost seems cheaper while only measuring from the proposed price, experience tells me that they’ve made the wrong decision and will have to pay the price.