Business vendor relationships in modern business are both art and science, complex, also critical, but it’s worth the effort to craft such a good long term relationship.
Sourcing can no longer just consider cost, it's also about evaluating vendor qualification, leverage expertise, and add alternative brainpower for business growth. Business & IT need to understand what is truly needed internally across the business, IT, finance, procurement, supplier and contract management, legal, etc. How to create value propositions in vendor/customer relationships, improve operational excellence, and build up a solid partner relationship for the long term.
Vendor evaluation: Partnership management is both art and science. IT is complex, IT vendor relationships are important to improve products/services reliability and innovativeness. A good IT vendor focuses on processes, and there's always an opportunity for improvement. A trustful IT vendor focuses on process optimization, customized solutions; on-time, on-budget, on value deliveries, and delivering “grade" or "range" IT enabled business solutions.
When it comes to vendor evaluation, depending on their size and industry influence; a successful vendor relationship will be as vibrant in the intermediate to long term as it was during the buying/selling cycle if all parties collaborate and share what they are really trying to implement. The strategic vendors should share the same vision and direction together with their clients. High mature vendor relationship management entails communication, partnership, collaboration, governance, and value analytics, etc, all these need to be effective to have close alliance and strong relationship management.
Negotiation and contract management: Communication, including negotiation, is not for its own sake, but about making certain tradeoffs for getting considerably fair deals. Negotiation is a crucial communication method to build partnership; contract management is an important discipline to ensure both parties agree on certain terms for quality products/services deliveries. It’s up to the management’s understanding and negotiation capability to face and address the challenges. Service level agreement needs to have meaningful penalties so that vendors can fix problems without too many arguments.
Insourcing or outsourcing is part of business partnership for optimizing cost, expediting organizational capabilities development cycle. Moving anything outside the organization requires careful consideration of quality, cost, reliability from a long term perspective; involving internal and external negotiations, and close ongoing management of the services for ensuring the level of services contracted and being delivered.
Vendor relationship management for smooth integration and long-term partnership: As long as there is a desire to integrate process and information across the organization and the applications, there will need to be an IT organization comfortable with talking to all vendors. IT continues to grow in importance to organizations, both operationally and as a competitive advantage. An effective IT organization should more focus on vendor/customer relationship management,
IT services or vendor integration is one of important management concerns because the efficiencies of the on-demand model allow IT to bring in more applications, those applications then need to interface with each other and with legacy applications. Select and manage vendors or solutions, improve vendor relationships via a structural approach by evaluating their quality, accountability, cost effectiveness, or innovation, not just by looking at the surface, but observing deeper, evolving them with strategic dialogues, and understanding the pros and cons of their products/service more objectively.
Business vendor relationships in modern business are both art and science, complex, also critical, but it’s worth the effort to craft such a good long term relationship. The IT management main job will revolve around vendor management, strategic initiatives management, IT operational management, change management, GRC practices, championing the art of the possible, and successfully contributing information technology to business ROI. This is going to be increasingly critical to the success and operations of the future IT, as well as business agility and maturity of the entire company.
Vendor evaluation: Partnership management is both art and science. IT is complex, IT vendor relationships are important to improve products/services reliability and innovativeness. A good IT vendor focuses on processes, and there's always an opportunity for improvement. A trustful IT vendor focuses on process optimization, customized solutions; on-time, on-budget, on value deliveries, and delivering “grade" or "range" IT enabled business solutions.
When it comes to vendor evaluation, depending on their size and industry influence; a successful vendor relationship will be as vibrant in the intermediate to long term as it was during the buying/selling cycle if all parties collaborate and share what they are really trying to implement. The strategic vendors should share the same vision and direction together with their clients. High mature vendor relationship management entails communication, partnership, collaboration, governance, and value analytics, etc, all these need to be effective to have close alliance and strong relationship management.
Negotiation and contract management: Communication, including negotiation, is not for its own sake, but about making certain tradeoffs for getting considerably fair deals. Negotiation is a crucial communication method to build partnership; contract management is an important discipline to ensure both parties agree on certain terms for quality products/services deliveries. It’s up to the management’s understanding and negotiation capability to face and address the challenges. Service level agreement needs to have meaningful penalties so that vendors can fix problems without too many arguments.
Insourcing or outsourcing is part of business partnership for optimizing cost, expediting organizational capabilities development cycle. Moving anything outside the organization requires careful consideration of quality, cost, reliability from a long term perspective; involving internal and external negotiations, and close ongoing management of the services for ensuring the level of services contracted and being delivered.
IT services or vendor integration is one of important management concerns because the efficiencies of the on-demand model allow IT to bring in more applications, those applications then need to interface with each other and with legacy applications. Select and manage vendors or solutions, improve vendor relationships via a structural approach by evaluating their quality, accountability, cost effectiveness, or innovation, not just by looking at the surface, but observing deeper, evolving them with strategic dialogues, and understanding the pros and cons of their products/service more objectively.
Business vendor relationships in modern business are both art and science, complex, also critical, but it’s worth the effort to craft such a good long term relationship. The IT management main job will revolve around vendor management, strategic initiatives management, IT operational management, change management, GRC practices, championing the art of the possible, and successfully contributing information technology to business ROI. This is going to be increasingly critical to the success and operations of the future IT, as well as business agility and maturity of the entire company.
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