Understanding How to Leverage an IT Vendor to Improve
a Business Process
IT solution providers have the skills, tools and experience to take specialized
challenges off your hands if you prepare and build your business case
sensibly. The work of improving business processes is all too often thought of
as a "risky and costly endeavor" but needn't be if you align yourself with a
people-centric vendor who understands your business needs and can
integrate technology intelligently.
The three phases of any IT project comprise requirements, specifications and
implementation. Requirements are the "what" (what the process needs to
accomplish); specifications are the "how" (exactly how the process will be
achieved either with build or buy technology) and; the implementation is the
"execution" (the action of putting the process in place.)
Allow yourself and your team plenty of time to analyze and review the core
process. Establish your needs and priorities but, know your limits. You know
your business better than anyone so come prepared to articulate it. Let the
consultant make suggestions on how to reach your goals. It's their job to
grasp the entire sequence of events and know more about how to improve it
than you.
Depending on the scope of a project, a good consultant will visit onsite to
assess your requirements. Encourage the vendor to explain their work
philosophy, what is required in the spec phase, how long it will take and
when you can anticipate an estimate of the work. Don't expect the initial
spec phase to be gratis. Normally, it should cost about one third of the total
estimate. A good one can be used to compare pricing with other firms.
Once you get it, read through it carefully, nail down all the details and get
total buy in from your entire team and theirs - before you sign. Items not
included in the spec can get costly if added in later. Be especially wary of
vendors who don't give you a spec document. Reputable providers will
always supply one.
Five keys to obtaining a high-value business process lies in bringing together
the following:
- Go beyond the process. Focus on the specific process in a 360°
manner. Describe the big picture and how the process fits in with other
processes. It may be more feasible to design a system with built-in
flexibility that can easily be expanded if the vendor fully understands
the entire sequence of actions.
- The people. We'll say it again: the team as well as peripheral
stakeholders (even someone who just sees a report) should be
identified as part of the process team from the outset.
- Balance cost and benefit. To achieve buy in for change, the value
of change needs to outweigh the costs (money, time and headaches). Improvements
in work flow needs to be demonstrable.
- Define the ideal. Do you want to increase capacity? Reduce errors?
Establish better communication? Get more accurate measurements? Add
flexibility? Additional features? Reduce workflow time?
- Set a realistic timeframe. Quality solutions take time. Be
ready to prioritize your goals and implement each sequentially. Whatever
the goal, make sure it supports the company's objectives and those of the
stakeholders.
One of the most important aspects is evaluating your IT consultant's service.
Not only should it be a seamless experience but it should be application
independent. A vendor's capability to optimize your workflow is only as good
as your ability to choose a vendor who really understands your business
challenge. You don't want partial solutions. And, you don't want to end up
with a solution that you'll outgrow in a year. While it's important to focus on
the technology up front, in the long run, a people-centric vendor with the
right team, tools and experience can save you more than just money. They
can control risk and turn it into big business payoff.
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