We use supplier analytics, ongoing process improvement and constant communication—the fourth and final pillar of our overall approach.
Using dashboards and reporting tools, analytics lets us measure our vendor interactions and evaluate them to maximize performance. Think of this approach as tracking the heartbeat of EMC IT’s vendor relationships—a kind of ongoing checkup to make sure this important system is working as it should. This includes tracking deals to ensure all the right terms and conditions are in place, confirming that what IT spends on them is what was expected, and making sure that each vendor is doing what they are expected to do. (more…)
“That’s not what I wanted”… “You said you were going to seamlessly support my apps”… “I thought you understood what the project was”… PROJECT STATUS: RED
Have you ever heard of the Latin term ‘Caveat Emptor’? It means let the buyer beware. How many times have you heard about someone who purchased a product or service and it is not what they thought they were buying? In countless courtrooms, both large and small, consumers (whether individuals or corporations) are warned about understanding what they are agreeing to, knowing what they are buying and taking responsibility for any agreements they are entering into. In a way – our computer age has made this easier than ever to do. So if this is so easy why are there still many vendor disputes or – worse yet for IT organizations –failed projects?
Contract Execution and Compliance is a key part of EMC IT’s Enterprise Vendor Management approach that can have a huge impact on the ongoing success of the work we produce. It is one of four pillars or focus areas we use to address key components of our IT sourcing. The other three pillars, discussed in other blogs in this series, are Strategic Partnership; Partner Selection and Negotiation; and Analytics, Process and Communication.
Second in a series on Enterprise Vendor Management
Selecting IT sourcing partners and negotiating effective contracts are key to the success of your organization’s IT sourcing strategy. Failure to dedicate enough time to these items will almost certainly lead to issues down the road, either in project failure or not achieving intended goals. In this the second blog on Enterprise Vendor Management, we will review some foundational steps to get you started in the right direction. (Read the first part on Framing a Better Sourcing Strategy)
Selecting a partner
Before deciding who you want to purchase services from or partner with, you must clearly define your goals and requirements including timeframe and budget. If possible, do this without a specific partner in mind to avoid tailoring your requirements. Depending on the scope of your project, you may want to issue a formal request for proposal (RFP).
When it comes to running your IT operation like a business to deliver IT as a Service (ITaaS) and competing with outside providers, Service Portfolio Management (SPM) is where the rubber meets the road.
SPM is the process by which your IT organization makes sure your service catalog is providing the right mix of services that will meet customers’ needs and deliver business value while at the same time enabling you to be a financially viable service provider. Or, put in plain business terms, SPM is how you make sure you are selling the right product mix to meet your customers’ demands (and needs) at the right price to keep you in business–to keep IT relevant. It is basic supply and demand.
That said, achieving SPM as you transform your traditional IT operation to ITaaS has its challenges. EMC IT has been in the process of transforming to an ITaaS model for several years now. And just as our transformation journey has been a learning process, so has our journey to effective SPM.
On the road to IT-as-a-Service, transforming your IT infrastructure and applications is the easy part, comparatively speaking, that is. The really tough part is transforming the people and processes, and it’s also what differentiates the most successful IT transformations.
So you’ve virtualized your environment, set up your on-premises private cloud and connected it with a public cloud solution. You have a hybrid cloud up and running and you’re on your way to delivering IT-as-a-Service. Now that you have the hardware and software operating, how do you get your people operating in a new way – with new processes and structure — that allows your business to capitalize on the new IT agenda to deliver more business value than ever before?
As SVP of IT, Jon Peirce is responsible for driving EMC IT’s transformation into an IT-as-a-Service provider/ broker and strategic business partner through technology, operating model, process and organizational innovation and evolution. Additionally, he oversees operations for several of EMC’s revenue generating cloud services and leads EMC’s Centers of Excellence in the Americas. In his prior role in IT from 2006-2013, Jon was responsible for Global IT Infrastructure and Support Services and led an aggressive standardization, consolidation, virtualization, tiering and optimization program across EMC’s IT infrastructure that delivered in excess of $220M in cost savings along with improved agility, resiliency, scalability, sustainability and security.
For those of us in corporate IT, if we want to achieve our ITaaS aspirations, we need to become more professional in how we deliver services. In the past, we’ve had the luxury of being able to impose services on our captive clients and with little competitive imperative for us to “be the best we could be.” We delivered client experiences that would have resulted in market share loss had we been a commercial service provider.
With the cloud, everything has changed. Public cloud services are competing for our clients’ business and, in some cases, winning by providing better value than our clients perceive we’re capable of delivering. We now clearly understand that we must transform ourselves to operate more like a business and offer levels of quality, cost and service that differentiate our offerings from alternatives our business clients might have. A core component of running our IT operation more like a business and becoming a more professional service provider is adopting a set of processes and enabling technologies supporting IT Service Management (ITSM).
ITSM is an industry standard term (much like ERP [Enterprise Resource Management] and CRM [Customer Relationship Management]) that defines a process framework describing an effective and efficient way of conducting IT’s business. Technologies that enable effective IT Service Management are referred to as ITSM Systems. As is the case with ERP and CRM systems, effective ITSM implementations rely on process and behavior change. The technology alone will do very little.
And herein is the challenge. Delivering ITaaS, or running IT more like a business requires making substantial changes to IT processes and our culture and behaviors. As someone who is sponsoring our ITaaS transformation and the implementation of a new ITSM at EMC, I can tell you that it’s not at all easy.
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