Boardroom IT Clinic
Boardroom IT Clinic is a column in the
Financial Times IT Review supplement, which focuses on addressing IT issues
faced by business leaders. This short article, written by Auridian’s MD and
founder, Ade
McCormack, appeared in the 9th March edition.
"How
do I protect my organization from becoming an IT trade show victim?"
It’s IT show time again. The glitz, the models and the ‘come
hither’ vendor offerings cultivate a heady atmosphere, where only the most
commercially-grounded and IT-savvy are safe. Here are ten risk reduction
questions to dispatch with your emissary to ensure that best value is obtained
from what for many is an IT procurement casino.
How will your offering impact my business?
Ask this if the vendor launches into what his offering can
do without any regard for your critical issues. Only the best IT Sector
business development professionals map technology features onto personalized
business benefits. More often you get either Mr Sales, all personality, sharp
suit, but light on product knowledge, or Ms Presales who is deeply acquainted
and passionate about the technology features, but isn’t incentivised to solve
your problem. Ms Presales has the makings of an excellent trusted adviser but
her business uses her purely to answer the difficult ‘under the bonnet’
questions. Don’t waste your time on vendors who don’t know or care what their
offering can do for you.
Will your offering keep my boss out of prison?
Smart vendors will see the link between their offerings and
corporate governance/regulatory requirements, no matter how tenuous. Move on if
the vendor gives you a knowing wink, and in a barely audible voice tells you
about the creative solutions offered by their sister financing company.
Does your solution exist?
Vendors can use IT shows for market research purposes. The
level of interest will determine whether the vendor actually creates the
offering. Vapourware never seems to go out of fashion. Asking for reference
sites cuts through the hype.
What standards do you adhere to?
“Our very own high ones” is not a good answer. Look out for
adherence to standards that are not under the control of a single vendor. This
goes some way to avoiding vendor lock-in.
Do you have any literature that my boss will understand?
Check for the following words: risk, profit, shareholder
value, operational efficiency and Enron.
Can you express the business benefits to me in terms that
would interest my CFO?
CFO’s feel most comfortable with numbers. If it can be
measured it can be managed. Value metrics such as ROI, ROCE, TVO and TEI will
resonate. If the vendor launches straight into ‘we’re doing a special’ then
this is a commodity offering not a value proposition. Your time is thus best
spent looking for the cheapest deal on the web.
What’s the damage?
Price is important, and so are payment models. To what
extent is their offering delivered as a service rather than as a product? The
former is kinder on cash flow, but of course you pay forever.
To what extent does your offering support a thin-client
web services oriented architecture run over a virtual grid-based
infrastructure?
You don’t care about the answer. You just want to let the
vendor know that you are not someone to be trifled with on IT-related matters.
Does it come in pastel shades?
This is important to people in marketing, and to those that
like to take every opportunity to broadcast unsolicited lifestyle messages.
Where’s the party?
It’s only right that after traversing miles of temporary
static-generating carpet, and arm curling recycling-bins worth of laminated
glossies, you get invited to one of the show’s après ski shindigs. If you are a
senior buyer this should be a formality. If not, hang around the exit until
someone that is discards their name badge.
Ade
McCormack
