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ITD #7: Best practices in supplier management (English)

ITD #7: Best practices in supplier management (English)

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Published by IT Decisions
Best practices in supplier management
ITD Research #7 : Sep 23, 2011
Best practices in supplier management
ITD Research #7 : Sep 23, 2011

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Published by: IT Decisions on Sep 22, 2011
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1ITD #7 ‘Best practices in supplier management’ © IT Decisions 23 September 2011 - All Rights Reserved
 
BestpracticesinsuppliermanagementITDResearch#7:Sep23,2011
 
 
 
2ITD #7 ‘Best practices in supplier management’ © IT Decisions 23 September 2011 - All Rights Reserved
Introduction
TheITdepartmenthaschanged.ThewholemodelofdeliveringacorporateITsolutionhaschanged.Andinevitably,ITleadershavealsohadtochangetheirwaysofworking.ManagingITsuppliershasnowbecomeacriticalpartofhowanyITdepartmentoperates,butitisnotalwaysaneasytask.Selectingvendors,managingandevaluatingtheirdelivery,aswellasmonitoringcontractsareallverydifferentskillstothoseneededforsupervisinganinternalITteam.AndsomeCIOshavefound–sometimesthehardway–thatthesuppliersaremastersofdraftingcontractsintheirownfavor.Evenonceasupplierisonboardanddeliveringservicesregularly,canyourelyonthemwhenthingsgowrong,orwhentherequirementssuddenlychange?Thecontractwillalwaysstatethescopeofyourrelationship,butwhenyoutesttheboundaryofthatrelationship,willthesupplierremainjustahiredhandormorphintoatruepartnerandhelpyourbusinesstosucceed?Theimportantquestionis:canacompanythatyouhireandpayonamonthlybasis–whichisalsomeasuredendlesslywithcontractualtermssuchasSLA,KPIandarangeofotherparameters–everbearealpartner?Aretheyinitjustforthecashordotheywanttohelpyourbusinesssucceedjustasmuchasyoudo?Regardlessofindividualrealities,themodernITdepartmentcannolongerignoretheinfluenceofthesuppliercommunityinthedecisionmakingprocess.Withtechnologybecomingincreasinglycomplexandevolvingfast,itisveryraretohavealltheskillsyouneedinternally.Thismeansthatsuppliersarecrucialinofferingflexibleandhighlyskilledresourceexactlywhenyouneedit.Butdotheyalwaysdelivertothatpromise?AndifworkingwithITsuppliersisnowakeypartoftheroleoftheITleader,whataretherulesofthumbthatcanhelpensureasmoothrelationshipwhereverpossible,oratleastdefinewhatyoushouldbelookingoutfor?InourresearchthisweekwehaveexploredwhatourcommunityofITleadersthinkaboutthesuppliercommunity,theirexperienceoftheissues,andthebestwaystomanageanecosystemofITpartners.
 
“…canyourelyonthemwhenthingsgowrong,orwhentherequirementssuddenlychange?”
 
 
 
3ITD #7 ‘Best practices in supplier management’ © IT Decisions 23 September 2011 - All Rights Reserved
ParticipantFeedback
ToexploretheissueofITsuppliermanagement,inthisweek’sresearchsurveyweaskedfourquestions–threeofwhichweremultiplechoiceandonedesignedtopromoteanopendiscussion.Wereceivedanswersfrom25executivesfrom17industrysectors:logistics,retail,foodandbeverages,consumerservices,shipbuilding,financialservices,oilandenergy,consumergoods,education,insurance,foodproduction,utilities,health,media,chemicals,automotive,andmanufacturing.
Question1:Isitincreasinglymoreimportantforyoutobeabletomanagesupplierseffectivelyratherthanmanagingyourownteam?
 
Thisinitialquestiongoestotheheartoftheoutsourcingdebate.Itasksifthebalanceofmanagementtimeismovingtowardsmanagingsuppliers,ratherthantheinternalteam.FromtheresponsesourITleadersgave,itabsolutelyconfirmsthatsuppliermanagementisbecominganindispensableskillforCIOstomaster.Only16%disagreedwiththestatement,andthoughtheagreementthatitisbecomingmoreimportanttomanagesuppliersonlygot32%ofsupport,the52%agreeingwiththis‘insomeareas’showsthatalargenumberofITleadersarenowrunningsomeoftheirdepartmentthroughsuppliers.
02468101214YESNOINSOMEAREAS32%16%52%

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