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What CIOs Need From IT Suppliers: A Baker's Dozen

February 10, 2003 12:00 PM ET

Computerworld - Many CIOs are reducing the number of IT suppliers they use in order to consolidate purchasing and cut costs. Deciding which suppliers to retain is a complex decision. Here's a checklist you can use to decide which suppliers should be on your A-list. CIOs need suppliers to do the following:
1. Deliver quality products that solve problems. Suppliers must provide solutions that address the needs of the IT organization and not merely push their latest products. This requires careful listening and adaptability on the supplier's part. A supplier worth retaining won't deliver just a standard set of PowerPoint slides.
2. Present a business case. Suppliers should provide a customized business case that clearly describes scope and objectives and calculates return on investment. Returns should be measured using the same metrics that your IT organization uses to evaluate other investments (such as ROI or net present value).
3. Sell through the IT organization. Many suppliers jeopardize IT continuity and antagonize the CIO by attempting an end run, selling directly to business units or other non-IT executives. Suppliers that take this approach may make the sale, but they often fail to understand the company's overall, long-term IT plans.
4. Leash their sales forces. Historically, many IT suppliers have overpromised and underdelivered. If you have suppliers that have oversold you, the last thing you want is to re-up for a repeat disappointment.
5. Offer enterprise agreements. In many organizations, multiple business units have separate contracts with the same supplier. You will want to reward suppliers that offer enterprisewide deals without being asked.
6. Find creative ways to meet customer objectives. For example, a software supplier could offer annual rental contracts, rather than perpetual licenses, to flatten customers' spending. Similarly, if a product is easy to install, the supplier could offer potential customers a free trial.
7. Adopt a long-term perspective. CIOs who contract with IT suppliers usually take a multiyear perspective due to the impact on the infrastructure and the high cost of switching suppliers midstream. Similarly, CIOs need suppliers to broaden their perspectives beyond end-of-quarter concerns and focus on building effective long-term relationships.
8. Communicate effectively. The CIO needs concise reports on key messages. Status changes, especially bad news, should be communicated immediately to give the customer time to make necessary adjustments. No one can afford to be blindsided by bad news -- especially a CIO, whose success is greatly impacted by the performance of critical IT suppliers.
9. Deliver on their commitments. Look for suppliers willing to earn your trust by



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