Most FP&A tool evaluations fail not because teams pick the wrong vendor, but because the evaluation process itself is poorly structured. Requirements are vague, demos are unfocused, scoring is subjective and decisions are made on gut feel rather than evidence.
This guide covers a structured evaluation framework — from initial requirements through market scan, shortlisting, demos, scoring and final selection. For deeper dives, see our EPM Buyer's Guide and Scoring Decision Framework.
The Evaluation Process
Define requirements (Weeks 1-2)
Document what you need — use cases, must-have capabilities, integration requirements, user count and budget. Separate must-have from nice-to-have. This is the foundation everything else builds on.
Market scan and long list (Weeks 2-3)
Research the market and build a long list of 6-8 vendors that could meet your requirements. Use analyst reports, peer recommendations, vendor websites and advisory services.
RFI and shortlist (Weeks 3-5)
Send a structured information request to long-list vendors. Evaluate responses against requirements and narrow to 3-4 finalists for detailed evaluation.
Demos and deep evaluation (Weeks 5-8)
Run structured demos using your scenarios and data. Evaluate technical fit, user experience, integration capabilities and vendor team quality.
Scoring and selection (Weeks 8-10)
Apply a weighted scoring framework. Check references. Negotiate commercial terms. Make a recommendation with clear rationale.
Contract and kickoff (Weeks 10-12)
Finalize contract terms, scope implementation and mobilize the project team.
Common Evaluation Mistakes
• Starting with vendors instead of requirements — demo excitement replaces disciplined evaluation.
• Evaluating too many vendors — decision fatigue leads to analysis paralysis.
• Unstructured demos — letting vendors control the narrative instead of testing your scenarios.
• Equal weighting — treating all requirements the same when some are critical and others are optional.
• Ignoring implementation — the best software poorly implemented delivers less than good software well implemented.
• Skipping references — vendor-provided references are curated. Ask for references at similar companies.