Poor specifications cost dear

The millons of pounds written off in a recently reported dispute over the specification of a system (Computer Weekly 17/1/02), between Unisys, a software product supplier, and insurance company, Royal London, clearly demonstrates the high cost of poor specifications, according to independent consultants Lilley Information Systems Ltd.

The millons of pounds written off in a recently reported dispute over the specification of a system
(Computer Weekly 17/1/02), between Unisys, a software product supplier, and insurance company,
Royal London, clearly demonstrates the high cost of poor specifications, according to independent
consultants Lilley Information Systems Ltd.

'You would think that such large and long established companies would not make such a mistake,'
said Director, Vic Lilley. 'But it's a common and perennial problem, even for the Government.' 'For
example, we've just received a request for a proposal for independent consulting from a local
government, which is dangerously vague.'

Lilley believes there is a great need to raise standards. This is especially in the current economic
climate where money is particularly tight and so waste hits so much harder. He also sees, the current
trend to outsourcing to reduce costs, could instead result in increasing costs, stemming from lack of
flexibility due to lock-in, because of poor documentation. The situation above was complicated for
Royal Insurance, because since issuing the writ they had acquired Scottish Life, a happy Unisys user.
'Any company in such a situation might want the outsourcing agreement terminated but find they
cannot do it quickly or without considerable costs because of poor documentation.'    

'Highlighting disasters like the one above helps organisations put the proper value on specifications
and documentation,' said Lilley. He has also written a 4 page guide called 'Better Buying using a
Request For Proposal (RFP).' The guide explains the business case and personal reasons why an RFP
should be used, and how to construct one that prompts requirements that would otherwise be missed
and results in a tight specification that prevents disputes and promotes effectiveness and efficiency.
While it is explained using examples of computer systems, the idea can be adapted to other types of
purchases too. It is available as a special offer by sending a cheque for 10 or credit card details, with
your postal address, to Lilley Informations Systems Ltd at 16 Kingway, Hayes, Middlesex, UB3 2TY,
UK or email: rfpguide@lilleyinfosys.co.uk or fax: +44 (0)20 8573 3915 or for further information
telephone +44 (0)20 8573 3911.

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