Every organization struggles to find ways to stop internal head butting and promote alignment among the different IT relationships. Businesses strive for alignment because they know that huge amounts of time and resources are wasted when key relationships are dysfunctional. A good example of a counter-productive relationship can commonly be seen in the interactions between IT, sourcing, and the end-users.
When these three factions are operating independently of each other or from a different set of procedures, they risk overspending and losing leverage for negotiations. Here is an example that demonstrates why:
A large enterprise wants to make significant IT upgrades. Vendors may contact end-users directly to work with them on a solution that they may be interested in. Once the end-users decide that this is the solution that they want, they go to IT to let them know. IT probably knows very little about the solution or if it will even work with the company's current IT infrastructure. But, because the end-user is adamant about this particular solution, IT must scramble to make it work without having the time to benchmark pricing or gain insight for negotiations.
So what is the likely outcome for companies lacking alignment, such as this one? The company overpays for the solution, receives subpar terms and may even have to invest in additional professional services because the technology wasn't properly vetted by the right parties.
This situation would never have happened if IT, sourcing and the end-users had reached internal alignment before any IT purchases were considered. It is crucial that the three groups discuss and agree upon buying procedures and that everyone understands their role throughout the entire process. Companies that combine each groups' strengths and expertise to make smart purchasing decisions will be able to save money, decrease risk and optimize IT purchasing. On the other hand, companies that fail to realize that each of the three groups plays an equal part, will continue to overspend on IT investments.
When these three factions are operating independently of each other or from a different set of procedures, they risk overspending and losing leverage for negotiations. Here is an example that demonstrates why:
A large enterprise wants to make significant IT upgrades. Vendors may contact end-users directly to work with them on a solution that they may be interested in. Once the end-users decide that this is the solution that they want, they go to IT to let them know. IT probably knows very little about the solution or if it will even work with the company's current IT infrastructure. But, because the end-user is adamant about this particular solution, IT must scramble to make it work without having the time to benchmark pricing or gain insight for negotiations.
So what is the likely outcome for companies lacking alignment, such as this one? The company overpays for the solution, receives subpar terms and may even have to invest in additional professional services because the technology wasn't properly vetted by the right parties.
This situation would never have happened if IT, sourcing and the end-users had reached internal alignment before any IT purchases were considered. It is crucial that the three groups discuss and agree upon buying procedures and that everyone understands their role throughout the entire process. Companies that combine each groups' strengths and expertise to make smart purchasing decisions will be able to save money, decrease risk and optimize IT purchasing. On the other hand, companies that fail to realize that each of the three groups plays an equal part, will continue to overspend on IT investments.
About the Author:
Joseph B. Kappernick specializes in helping Fortune 500 companies save money. He recommends that you visit NPI to learn more about IT cost reduction
No comments:
Post a Comment