Finding a venue is generally the most time consuming, therefore cost laden, step of the event sourcing process. This is true whether you are a TMC or a travel buyer. The drivers may differ, TMC margins are squeezed, buyer MI and KPI requirements are becoming more sophisticated, but as technology continues to evolve at a rapid pace, the case for outsourcing technology becomes more compelling.
More are taking the leap or considering to do so, as the cost of maintaining in-house solutions continues to grow and the price of an outsourced solution remains steady or reduces.
For many the meeting and event part of travel programmes grew through demand from travel managers utilising other TMC service lines who suddenly found themselves with an expanded category, so sometimes more by accident than design.
As visibility of this area of spend grew so did the realisation that spend in this area is significant. It is widely reported that UK companies alone spend circa £20 billion a year on meetings and events and strategic meetings management can realise average savings between 10-25%. This means this category now holds the attention of the finance director of both the TMC and the travel buyer and cost reduction and efficiency are firmly on the agenda.
Up until this point TMCs or buyers may have got by quite happily without an advanced technology system in place by phoning the venue, noting down the details and creating/receiving a proposal. Nothing wrong with that I hear many say…and I agree. What you need to consider is: will this approach stand up to the increased volumes that a travel buyer expects or that a TMC is now servicing? Will the increased demand just be overlaid with increased headcount to service it? Will high value resource get tied up in preparing the monthly management information suite that high volume travel managers require? Or worse, not be able to satisfy the requirements?
I firmly believe that technology cannot replace a good conversation with key contacts. But when time is precious you need to make sure you are making time for the right conversations, at the right juncture and in the right way to maximise efficiency rather than just spending lots of time having lots of conversations.
So what do you need to do to ensure value from any investment in eRFP technology you make?
Scope out your requirements fully
Sounds obvious, but folk often invite suppliers in to present their offerings in order to understand what might be possible. Suppliers, understandably, will present their all-singing and all-dancing offering if they do not know your requirements. You may only need to sing two songs and rarely dance so you will struggle to differentiate and compare offerings, and it will slide into the "too difficult" category, if you are not clear on what you need upfront. It's better for the buyer, TMC and/or other parties to be clear on what they need from the outset.
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Tailor the programme to your needs ©Photology1971/iStockUnderstand where you might be in 12 months' time
Technology is moving at such a pace that you cannot afford to spend months implementing a solution that is outdated almost as soon as it is up and running. Talk to your suppliers, gather market intelligence and seek expert advice. Then ask the providers for their development roadmap. You do not want a solution that doesn't flex with you or is resistant to change.
Be flexible
If you have scoped out your requirements, then you will know what are 'must have' and what is 'nice to have'. What you should also know is where you might bend. For example, if the solution does not replicate, or better, the accounting software for the post-event part of the process then find out if it can be integrated with it, rather than discount it. You might find it easier than you think.
Be bespoke
You will have requirements that are specific to your business. Just because the 'off the shelf' version does not appear to accommodate all your needs it does not mean it cannot. Exhaust what your instance could look like with providers before discounting. It may not be the first time a supplier has had a particular request and it may be in their long term benefit to close a gap or they may bespoke a version for you if it means closing the deal.
Define the business benefits
Consider what the efficiency gain look like and what the bottom line impact of that is. Think about what problems have been solved and how costly those problems were to you. What direct cost reductions can be achieved as a result of this implementation? Understand all the costs involved in implementing the solution.
It is not just the upfront and license costs that you need to consider. Think about what the roll out costs could be including manpower tied up in the project, training, support plus employee and supplier education. Also add up how many of these costs disappear after implementation and how quickly.
If scoped correctly there also should be benefits.
- Is the technology solving existing problems?
- Are you getting more value?
- Will this deepen your current relationships or allow greater breadth in what you can do?
If the business case for investing in a new system to automate some of the meetings and events process, or replacing an in-house solution, looks compelling then now is the right time to engage with providers. Do your homework on the solutions that are out there. There seems to be a bewildering array of technology on offer but if you have scoped out what you need well then the reality is there will be a small number that fit you well.
An additional thing you might want to consider in order to filter the list of invitee's down is where the core of your M&E business is done. This will narrow your list because you want market coverage that matches your core markets. Equally, if you are 95% focused on venue finding, with only aspirations to increase event management, then look for a system that excels on venue find. Then look to see if it can scale with you. Finally, if event management for you is really logistics and delegate management then you probably don't need a full service system offering.
Focus on seeing the solutions that deliver where you want them to and you won't find yourself hosting a large scale beauty parade instead of a focused tender exercise.