The key evaluation parameters for ABC while accessing the MSP opportunity would be:

Need Analysis:
The supply chain solution at MSP is in complete disarray right now. There are
different business units within the organisation that are using standalone systems and work as
separate legal entities. Thus, in order to fulfil a delivery , the customer service staff must access
different systems to locate the stocks which increases the delivery time. Additionally, there is
limited visibility of inventory and no proper solution for predicting stock levels.
In order to address these concerns, it is necessary for MSP to implement a robust supply chain
management solution which would help them predict inventory levels, lead times and safety
stock levels for more than 100,000 spare parts. As a part of this solution the application would
also provide MSP with automated Order Receipt, Order Acknowledgement, Order Tracking, and
On-line Invoicing.
It would be fair to conclude that implementation of this solution is a top priority for MSP right
now as it would significantly improve their efficiency of interacting with the growing number of
business partners.

Impact:
 The deal and engagement with MSP would be of significant size and complexity. The fact
that different ABC service lines have been brought in to service the MSP account shows
the importance and implications of this deal for ABC.
 MSP has mentioned that they are only interested in working with ABC provided that the
payment to ABC would be in proportion of the business benefits gained. This could be
an area of concern for ABC as it does not give a definite revenue assurance and would
depend on the gains made by MSP after the implementation of the solution.
 The deal could have a negative impact for ABC in the market in case they are not able to
successfully implement this solution. The deal was initially awarded to SSCG, however
was recently dismissed given that SSCG was not considering MSP’s specific business
requirements. This proves that MSP is very specific about the intended results and
would not settle for anything less than that.

Relationship:
The relationship between MSP and ABC has been an extremely positive one
and ABC is viewed very favourably in MSP’s executive team. Jitendra Khanna who was the BD
Manager for MSP account, along with his team has been involved in overseeing several small
projects for MSP. ABC’s senior management team and supply chain management group have
also been in contact with MSP’s CEO, CIO and key IT managers, holding discussions about the
proposal. This significantly points to the fact that the relationship between ABC and MSP has
been in good terms and this deal could be an opportunity for ABC to build a long-term
reputation with MSP.

Capability:
It would be necessary for ABC to analyse their capability about successful
implementation of this solution. The deal and engagement with MSP would be of significant
size and complexity and has already been dismissed once with SSCG after 12 weeks only. So, an
unsuccessful implementation could have a negative implication for the relationship between
MSP and ABC, also impacting ABC’s reputation in the market about completing big projects.
Given that ABC has already brought in different service lines to service the MSP account
suggests that they understand the importance and implication of this deal and are committed
towards it, being confident about their capabilities of successfully delivering this solution.

Based on this opportunity assessment, we believe that it is a sizeable opportunity for ABC, and
they should go ahead with this assignment. However, they need to take care of the following
concerns before the final proposal submission:

 MSP would be paying ABC for this solution in the form of a proportion of business
benefits gained. So, it becomes important for ABC to analyse and evaluate the kind of
implications the solution would have for MSP and the gains they would have after it is
implemented. ABC would also need to negotiate a deal about the proportion in which
MSP would be paying them and based on that calculate an estimate of revenues that
the deal would bring in for them.
 ABC needs to understand their capability of undertaking a project of this size and
complexity. Since, MSP is very specific about the intended results has already dismissed
the deal once with SSCG, so ABC needs to sure about their capabilities and if they would
be able to successfully complete this project.