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.
Fortunately, there is a way to steer clear of these money-wasting scenarios, but the change must start at the top. Before any large IT investments are made, management needs to acknowledge that IT, sourcing and the business end-users all have roles of equal importance in regards to IT purchasing. The each bring a different knowledge and expertise that, when integrated correctly, allow organizations to make the best purchasing decisions. Vendors can and will take advantage of companies that fail to encourage this type of collaboration, so the time for alignment is now.
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.
Fortunately, there is a way to steer clear of these money-wasting scenarios, but the change must start at the top. Before any large IT investments are made, management needs to acknowledge that IT, sourcing and the business end-users all have roles of equal importance in regards to IT purchasing. The each bring a different knowledge and expertise that, when integrated correctly, allow organizations to make the best purchasing decisions. Vendors can and will take advantage of companies that fail to encourage this type of collaboration, so the time for alignment is now.
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 solution service
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