dark art of it procurement
DESCRIPTION
De grote kostenposten van moderne organisaties zijn veelal IT gerelateerd. Hardware, Software, Licenties en Professional services zijn allen inkoop categorieën die verstrekkende gevolgen hebben voor organisaties en een uitermate complexe besluitvorming kennen. Een multidisciplinaire aanpak is daarom onmisbaar bij de aanschaf en beheersing van IT spend. En dan beginnen de problemen. De inkoper weet te weinig van de IT, de IT specialist weet veelal niet wat er met moderne inkoop strategieën bereikt kan worden en wie na ondertekening van het contract eigenlijk verantwoordelijk is blijft een raadsel.TRANSCRIPT
Contract Management & Governance
© Wu Wise 2012
CONTENTS‣ The Dark Arts of
➡ IT Value
‣ The Dark Arts of
➡ IT Delivery
‣ The Dark Arts of
➡ IT Governance
‣ The Dark Arts of
➡ Managing the Contracts that bring it all together
2
THE DARK ARTS OF
IT VALUE
WHAT’S THE DIFFERENCE?
WHAT’S THE DIFFERENCE?
WHAT’S THE DIFFERENCE?
© Wu Wise 2012
WHAT’S YOUR VALUE DRIVER?‣ How nice it is to use or eat (usability, taste)
‣ How hard it is to make (complexity)
‣ How scarce it is (availability)
‣ How innovative it is
‣ What’s in it (ingredients, components)
‣ Who created it
‣ How long it stays the same (stability, keeping quality)
‣ Specific user wishes (no fish, no wordpress, no open source)
‣ Etc.
7
THE DARK ARTS OF
IT DELIVERY
WHAT’S THE SIMILARITY?
READY MADE
‣ production ‘behind the scenes’
‣ standardized production process
‣ little interaction with end-user
‣ end-user doesn’t need a recipe
‣ takes little effort from end-user to prepare
‣ need a microwave
‣ fixed quality
‣ fixed price
Ready made Convenience Supermarket Farmer
READY MADE
customization possible
run time
internal knowledge needed
external cost
internal cost
customization possible
run time
internal knowledge needed
external cost
internal cost
customization possible
run time
internal knowledge needed
external cost
internal cost
customization possible
run time
internal knowledge needed
external cost
internal cost
customization possible
run time
internal knowledge needed
external cost
internal cost
© Wu Wise 2012
DELIVERY‣ As soon as number of suppliers grows:
➡ interdependencies grow dramatically
➡ costs as well as (end product) quality and run time are getting more fluid
➡ internal governance is crucial
‣ Choice of delivery model depends on:
➡ internal knowledge and infrastructure available / required
➡ need for tailor made IT
➡ external suppliers and solutions available
➡ need for specific run time
➡ costs of internal vs external resources
14
THE DARK ARTSOF
IT GOVERNANCE
WHO IS RESPONSIBLE?
CPO CFO CIO
© Wu Wise 2012
GOVERNANCE‣ Who is doing what?
➡ Who is talking with end-users about money and quality?
➡ Who is talking with suppliers/IT department about money and quality?
➡ When alterations to the original plan need to take place, who does what?
➡ Who is delivering which part of the service? And who monitors?
➡ Partnership does not imply absence of task distinction
‣ Who is owning what?
➡ Who’s responsible when things go wrong?
➡ Is there a difference between financial and service related ownership?
➡ Who is benefitting cost reductions or quality / compliance improvements?
➡ Governance support: restaurant model
17
© Wu Wise 2012
GOVERNANCE
18
RESTAURANT KEUKEN
Demand Supply
Gast Ober Ober Chef-Kok
Familie
Hebben weook... ?
Nee, maarwe kunnen wel...
Heeft u ook... ?
Dat zal ik evenvoor u navragen
We apologize for not having english on the restaurant’s menu yet
© Wu Wise 2012
GOVERNANCE
19
RESTAURANT KEUKEN
Demand Supply
Garde
Rotisserie
Entre metierGast Ober Ober Chef-Kok
Familie
Leverancier
Groenten
Leverancier
Vlees
Leverancier
Patisserie
Hebben weook... ?
Dat zal ik evenvoor u navragen
Heeft u ook... ?
Dat zal ik evenvoor u navragen
We apologize for not having english on the restaurant’s menu yet
© Wu Wise 2012
GOVERNANCE
20
Demand Supply
Garde
Rotisserie
Entre metierGast Ober Ober Chef-Kok
Familie
Leverancier
Groenten
Leverancier
Vlees
Leverancier
Patisserie
Kwaliteit
Prijs en kwaliteit
Kwaliteit, prijs en flexibiliteit
Flexibiliteit
Inhoud
Prijs eninhoud
Flexibiliteiten
kwaliteit
kwaliteit,flexibiliteit
Inhoud
We apologize for not having english on the restaurant’s menu yet
THE DARK ARTS OF
IT CONTRACTS
© Wu Wise 2012
CONTRACT PYRAMID - 1‣ Governance
- Wishes and needs
- Contract
- Actual delivery
22
© Wu Wise 2012
CONTRACT PYRAMID - 2‣ Subjects
- Finance
- Service
- Relation and Communication
23
© Wu Wise 2012
WU WISE VISION‣ Contract management is making sure the deal comes true
‣ Contract management is a shared effort
‣ Without knowing what is agreed upon, contract management is hard and subject to personal perception (even more than it already is)
‣ Therefore, making sure contracts are easy to understand or someone ‘translates and communicates’ them is important
‣ Without in-between monitoring, evaluation and adjustment, agreements are useless. Unless agreed upon otherwise (but maybe even then).
24
© Wu Wise 2012
WU WISE SERVICES‣ Contract administration
‣ Contract performance monitoring
‣ End-user needs evaluation
‣ Contract- and supplier management
‣ “Making IT deals come true”
25
THEEND