Engaging a vendor for commodity services is simple. Procurement can make a short list, vet the vendor’s capabilities and pricing, assess contractual terms, pick the cheapest option on the table, and rigorously manage the vendor to the contract. For some functions where managing costs trumps all else, this approach may be a staple of operations.
IT is not one of these functions.
As companies come to rely more and more on their technology vendors on everything from simple turnkey systems to innovative bespoke solutions, this narrow procurement approach does not fit, and will destroy more value than it creates.
Today, there needs to be a dedicated team within IT that oversees the company’s vendors to ensure that SLAs are met, and more importantly, work with vendors strategically and operationally to drive value. That team is the vendor management office (VMO).
Just as a project management office (PMO) is central to the management of a company’s projects, when done right, a VMO will be a company’s gateway to all the technologies and services in the marketplace. The VMO is the internal center of excellence, advising IT and business leaders of current best practices, vendor capabilities, and trends. It is a key player in aligning the many stakeholders within an organization towards the same goals, and it should guide the overall modernization and transformation of IT.
A best-in-class VMO should focus on three things:
As CMO, Domenic leads the firm’s marketing, communications, and research functions. He is an expert in marketing automation technologies, digital marketing approaches, brand development, and demand creation strategies. He is committed to helping clients drive their businesses forward by optimizing business performance, creating value and achieving cost savings.