CIOs Give Vendors Low Marks on Partnership
- 15 November, 2012 13:40
A new metric called the Strategic Partner Index shows that CIOs see much room for improvement on the part of their most important IT vendors.
The CIO Executive Council, which is affiliated with CIO magazine, developed the index to help enterprise IT leaders evaluate their vendors based on a weighted list of 20 partnership actions. In a survey of 279 CIOs who provided 743 evaluations of vendors, less than half (46 percent) perceived their vendors as being truly strategic partners. The council defined a strategic partner as an "important vendor that has gone beyond effective delivery of systems and services to become a consistently transparent, responsive and trusted collaborator."
When CIOs rated their vendors, the average score was only 3.2 out of a possible 10. Vendor practices were weighted according to how important they were to CIOs. For example, honest and open communication was considered table stakes by CIOs and given a weighting of 1. Meanwhile, "joint ventures with shared risk and reward" was considered a complex and potentially valuable activity and was weighted a 4 (the highest).
Ken Piddington, CIO of Global Partners, says "most vendors only interact with CIOs when they are trying to sell something or when there is a problem." Council members say a strategic partner is a different kind of vendor, one that goes beyond being a mere transactional seller to become a trusted and agile collaborator. The benefits of such a partnership include better working relationships, improved service levels and cost management, and better collaboration and communication.
For Ken Grady, CIO at New England Biolabs, the purpose of a strategic partner is simple: "I want you to be profitable, and me to be profitable, and for you to be less cost-per-unit over time." To accomplish this, Grady relies on mutually understood metrics and a shared risk-and-reward model to help both sides focus on shared goals.
Read more about strategy in CIO's Strategy Drilldown.
Join the CIO Australia group on LinkedIn. The group is open to CIOs, IT Directors, COOs, CTOs and senior IT managers.
Why IT projects really fail
Queensland government to provide 200 services online by 2015
Call Centers Suffer From Big Data Overload
CIO 100: Carsales wins top gong for innovation
How to secure passwords and other critical numbers
Power of Three: Building Mobile Initiatives Guided by Business Goals, Technology and Governance
The use of powerful mobile devices has become so widespread, industry leaders in almost every sector have embraced mobility solutions as central elements of their IT and business operations. As mobile budgets grow, so does the influence of business units on mobility strategy. However, without a comprehensive strategy that encompass business goals, policies and processes, then initiatives into mobility will struggle to deliver the expected benefits. Click to download!
Pathways Course Curriculum 2014
Developed by the CIO Executive Council, Pathways is a unique, flexible, self-managed, self-paced 12-month professional development program that brings together best practices, thought leadership and business insights for today’s most promising ICT professionals. Pathways is designed and delivered by leading local and global CIOs; enabling participants to capitalise on mentor CIOs personal experiences, expertise and knowledge.
Advancing Customer Intelligence Capabilities in Asia-Pacific
Many Asia-Pacific organisations lack or are hindered in their ability to integrate, analyse, and extract insights from multiple internal and external databases. When it comes to big data, Asia-Pacific organisations lag behind the U.S. and Europe in data warehouse, business intelligence, and analytics investments. But don’t expect that to last. Download to find out the big shifts in marketing strategies to improve behavioural targeting and personalisation.