Getting the Vendor Collective RightAdded 15th Mar 2012
- If IT vendors work with, not against, each other to make a common customer more profitable, the money flows to everyone.
- The future of vendor management
- The multiple benefits of vendor collectives
- Why it’s important to change mindsets
“We decided to hire the enemy, and that has provided an enormous advantage,” says Alan Matula, CIO of Royal Dutch Shell.
Ralph Szygenda, who, as General Motors’ first CIO from 1996 to 2009, created one of the first major IT vendor collectives, now consults with vendors big and small about how this kind of deep, and sometimes uncomfortable, partnership leads to more revenue for them. Why? Because, he says, CIOs need the help.
Cloud computing, outsourcing and hosted applications make the CIO’s job far more complicated than it was 10 years ago, Szygenda says. If IT vendors work with, not against, each other to make a common customer more profitable, the money flows to everyone, he says. “Customer companies become amazingly more efficient, the CIO has helped the CEO grow, and the IT vendor sells a bunch more to that company because if it’s good, the CIO wants more of it.”
For CIOs, the payoff is in both the smoother delivery of technology and services and the potential to discover new technology—or ways to use it—before competitors do. But cultivating these relationships takes dedication and big chunks of time from the CIO. Special staff positions and different hiring priorities are also required. So is insight into the strategic direction of your company; you want to recognize a competitive leg up when you see one in an IT supplier’s existing products or early ruminations about plans for the future.
“It takes an enormous amount of energy and a lot of lead time,” Matula says. “I consider this a competitive advantage.”
Today’s businesses are focused on leveraging the power of innovation to tackle new challenges caused by disruptive technologies. The 2015 edition of Leaders’ Meet promised to address just that. A three-day engagement platform, hosted by Tata Communications and attended by IT decision makers from India’s leading organizations, encouraged ideation, discussion and co-creation among the CIO community.
This Frost & Sullivan paper compares bare metal Cloud configurations with the more common virtualized Cloud configurations.
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