by John Swaren
| November 15, 2016
In our previous blog, we defined PCA and PRICE’s unique approach via TruePlanning. This blog is the fifth of seven to describe by specific impacts on key business processes and functional areas that benefit from this capability.
So what are my competitors most likely to bid?
Competition Ghosting (sometimes called competitive analysis), can be an important capability when preparing for opportunity qualification or the bid & proposal development. Estimating what you believe your competition might do is extremely useful intelligence for your own Price-to-Win process.
Ghosting empowers the user with an objective assessment of the competitor’s offering. This is done for two reasons. First, to learn about weakness that could serve as differentiators during the proposal process and second to make an assessment about the competitors most likely bid. Once completed, a cross-walk between the competitors most likely bid and your organization’s current bid often reveals competitive advantages that can be leveraged during proposal preparation – or minimizing competitive disadvantages
A robust ghosting capability can also deliver “What If” drills of the system design, manufacturing approach, and internal investment on the part of your competition. This kind of capability in the hands of an experienced Red Team yields a plethora of competitive intelligence.
To achieve this kind of ghosting, an organization requires the ability to draw upon historical data and to create and integrate a predictive cost estimation capability allowing them to describe the competition with exact representations of their organization and product.
The capabilities of the PRICE® Cost Analytics Framework offer the ability to describe and cost what the competition will likely develop, as well as potential alternate solutions. These forecasts can represent the perspective and likely offering the completion may produce / present in a way that become actionable on the part of your proposal and engineering teams.
In fact, the PRICE® Cost Analytics Framework also assists management with informed Bid-No-Bid decisions. Many of the same attributes required for a competition ghosting capability above are also needed for opportunity qualification. “What If” drills of the product with accurate cost information in the correct investment environment will reduce risk associated with a potential opportunity. More importantly, the process empowered by the Framework and TruePlanning will provide a disciplined means to analyze all aspects of the opportunity in preparation for a bid / no bid decision.
Using TruePlanning as well as Framework tools such as TrueMapper allow the complete analysis of both the technical solution and the organizational footprint including comparison/cross-walk to the detailed level. This empower the user with sufficient information to understand and promote competitive advantages, while seeking to minimize disadvantages.
Likewise, implementing the best practices automated by the TruePlanning software suite enable companies to produce credible, data-driven ROMs, empowering decision-makers with real metrics and competitive information so that they can pursue profitable business or walk-away with confidence. These Bid/No-bid decisions depend upon rough order of magnitude estimates (ROM) of a company’s internal costs to perform as well as that of the competition.
The top level metrics and cost estimating relationships of the PRICE estimating models enable decision-makers to establish confidence boundaries around competitive offerings. Companies can win profitable business and avoid unnecessary risk by leveraging data-driven estimating, via the PRICE® Cost Analytics Framework, to decide with confidence.
Success can be accelerated by the PRICE® Predictive Cost Analytics (PCA) integration of business, engineering, and program management objectives in order to produce competitive solutions.
TruePlanning immediately facilitates objective quantitative assessment of customer needs/requirements, winning-business solutions, and project lifecycle cost management.
Contact me for a demonstration, either in person or via telecon. We’ve had many success stories here. You can be next!