It’s not every day that a manufacturer is presented with a single opportunity so large and so high-profile that it takes your breath away.
This is exactly what happened to 50 digital signage manufacturers that were asked to bid on the reconstruction of the largest digital sign in the world, the Fremont Street Experience canopy in downtown Las Vegas. This 1,500-foot long digital canopy is suspended 90 feet above a pedestrian mall and is visited by more than 20 million tourists annually.
The $30 million project would easily be the largest undertaking for any of the competing companies. There’s no doubt that executives at these companies immediately wondered if they stood a chance to win the business, or if they could even absorb such a large-scale project if they did win it.
I know because I work for the winning company, Watchfire Signs of Danville, Illinois.
The Fremont Street Experience request for proposal (RFP) spanned nearly 18 months, required almost a dozen onsite visits, involved hundreds of staff hours, and amounted to a significant financial investment.
Here are five insights that may be helpful to other manufacturers as they encounter large bid opportunities.
1) Decide if the project is a good fit for your company
Large projects will require large investments — both of time and money. It’s important at the beginning to make sure there is a reasonable chance to succeed, and that starts with understanding the RFP.
In our case, we knew that the product specified in the RFP didn’t exist, so it would have to be created. The product requirements for the Fremont Street Experience were unique because the digital canopy needed to filter light and shed rain, all while standing up to extreme heat conditions.
We knew that we had a strong bench of innovative engineers who would love the challenge of matching the specifications of the RFP, not simply modifying one of our existing products. If we didn’t have this ingenuity and drive, we would have stepped back immediately.
2) Assign one point person to manage the project
There are many moving parts involved in a large-scale RFP. At Watchfire, nearly every department touched the RFP in some way, including R&D, supply chain, sales, and marketing. We found the best way to corral all this input was to task one person to manage it, set deadlines, collect information, and keep the process moving forward.
3) Involve the entire organization
Although we had one project manager, we opened up the RFP to multiple departments to gather input and ideas and to spread ownership for our success to everyone. This allowed us to develop a more robust RFP.
For example, our R&D group generated ideas for an all-new product that would nicely fit the RFP requirements, then our marketing group suggested developing a micro website with video renderings of the product. The RFP came to life and we were able to visually show the uniqueness of the proposed product.
4) Line up the supplier pipeline
For an RFP to be successful on a huge project, it is important to prime the supplier pipeline to ensure raw materials and labor will be available. The last thing a manufacturer wants is to win a deal and then not be able to deliver as promised.
Share details with key suppliers and don’t be afraid to ask for soft commitments on components and other raw materials. One word of caution, though — no matter how many non-disclosure agreements are in place, word that you are working on a big project will get out.
5) Balance the investment with the changing probability of success
Keep the project on a low boil, frequently evaluating the probability of succeeding with the need for ongoing investments. Remember, if you are going to fail, it’s important to fail as early as possible and thereby minimize your investment.
If you’re not getting a clear read on your prospects for success, don’t be afraid to pick up the phone and ask. I’ve found it helpful to keep an honest dialogue going with key decision-makers, and it’s okay to ask about your probability of prevailing. When those conversations indicated that we were still a contender, I was more confident in the decision to keep moving forward with product development and testing.
Finally, dream big and believe that you deserve a seat at the table. It can be a bit scary to be invited to participate in outsized deals, but remember that you have as much right to be involved as your competitors. Rely on what makes you unique and go for it.
Written by: Steve Harriott, President and CEO, Watchfire Signs, for the Business Journals.