Amid Rapid Technological Advancements, Info-Tech Research Group Identifies Five Pillars of Vendor Management to Help IT Leaders Build Exponential Value Relationships
In response, Info-Tech Research Group has published its new industry resource, Manage Exponential Value Relationships .
In the resource, the global IT research and advisory firm explains that outcome-based relationships build upon traditional vendor management practices and create the potential for organizations to embrace emerging technology in new ways.
TORONTO, Sept. 20, 2023 /PRNewswire/ - As technological advancements and cutting-edge artificial intelligence (AI) tools increasingly offer exciting growth opportunities for the business and IT, the need for new capabilities to grow impactful, meaningful, and outcome-based relationships with external vendors has been thrust into sharp relief. Leveraging AI technologies and quantum computing means exponential IT requires a shift in emphasis toward more mature relationship and risk management strategies, compared to traditional vendor management. In response, Info-Tech Research Group has published its new industry resource, Manage Exponential Value Relationships.
Exponential IT represents a necessary change in IT leadership's focus to lead through the next paradigm shift. The resource explains that exponential value relationships bring new challenges, including increased vendor access to intellectual property, customer data, and proprietary methods. As such, pursuing outcome-based relationships should not be undertaken lightly, as they can significantly impact the risk profile of the organization.
"Building outcome-based relationships involves working very closely with vendors who, in many cases, will have just as much to lose as the organizations implementing these new technologies," says Kim Osborne Rodriguez, research director of CIO Advisory at Info-Tech Research Group. "Successfully building and maintaining these exponential value relationships requires a greater degree of trust between parties than a standard vendor relationship. It also drastically increases the risks to both organizations. As each loses some control over data and outcomes, they must trust that the other organization will follow through on commitments and obligations."
In the recently published blueprint, Info-Tech features five pillars of vendor management to help IT assess its capabilities across the identified areas and successfully manage exponential, outcome-based value relationships. The pillars are outlined below:
- Financial management. A faster pace of change, as is expected in exponential IT, can make financial management more complex.
- Relationship management. Managing relationships effectively is more critical to the ongoing success of outcome-based relationships than traditional vendor relationships.
- Performance management. Managing outcomes can become more challenging in exponential relationships when compared to traditional relationships.
- Risk management. IT must successfully manage complex third-party risks when working with vendors.
- Contract management. Contracts are used to protect both parties but are a last resort when enforcing terms.
"Ultimately, outcome-based relationships build upon traditional vendor management practices and create the potential for organizations to embrace emerging technology in new ways," explains Osborne Rodriguez.
The firm advises that fostering strategic relationships can also be instrumental in times of crisis. Being the customer of choice for key vendors can push organizations up the line from the vendor's side, offering increased stability in uncertain times. However, the firm advises it is important to remember that vendor and organizational objectives may differ. Ultimately, organizations should not rely on vendor preferences for longevity and long-term success.
Info-Tech's new research can be used by IT leaders to address the challenges of building and managing exponential value relationships, including assessing foundational vendor management and transformative capabilities, identifying growth opportunities within those capabilities, and managing outcomes, financials, and risks in complex vendor relationships. To access the full resource, download Manage Exponential Value Relationships.
For media inquiries on the topic or to get exclusive, timely commentary from Info-Tech's experts on managing exponential value relationships, please contact [email protected].
Info-Tech LIVE 2023 is currently underway at The Cosmopolitan of Las Vegas, focusing on the central theme of "Exponential IT." With keynotes from renowned industry experts such as Geoffrey Hinton and Ray Kurzweil, the event delves into the transformative world of exponential technological growth and its implications. Discover more about the Exponential IT framework and its relevance in today's dynamic digital ecosystem by visiting the newly launched Exponential IT Research Center.
For information about Info-Tech Research Group or to access the latest research, visit infotech.com and connect via LinkedIn and X.
Info-Tech Research Group is one of the world's leading information technology research and advisory firms, proudly serving over 30,000 IT professionals. The company produces unbiased and highly relevant research to help CIOs and IT leaders make strategic, timely, and well-informed decisions. For 25 years, Info-Tech has partnered closely with IT teams to provide them with everything they need, from actionable tools to analyst guidance, ensuring they deliver measurable results for their organizations.
Media professionals can register for unrestricted access to research across IT, HR, and software and over 200 IT and industry analysts through the firm's Media Insiders program. To gain access, contact [email protected].
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SOURCE Info-Tech Research Group
