They were deemed a reference customer for the industry and one of the
favorites of the big name vendor and solution provider. Over a long period of the
relationship they had acquired almost every solution from the same vendor for
any business problem. At times the price was quite attractive to turn down the
offer, and at times the perceived time taken, complexity of evaluating and then
implementing another solution appeared to be too big a task. So the CIO and her
team continued to invest with their preferred IT partner.
Life would have continued for them with incremental innovation and
harmonious coexistence with their vendor ecosystem had not events overtaken
them. The company was caught up in an industry turmoil which required
information agility they had never experienced before. Their strategy to stay
with one solution provider had given them a basket of solutions for every
stated need; the implementations technically successful and were declared live.
The business use found them lacking in the new paradigm when efficiency
mattered.
Earlier business had continued to use parallel systems and created
business critical spreadsheets that became the lifeline for the enterprise. The
level of (in)efficiency was deemed acceptable as change required them to
actively participate in the definition and building of the solutions. It
appeared easier to let the IT organization manage the complexity of IT’s favored
solution which ended up becoming a system of records while business users added
headcount to solve problems. Now the murmur of disenchantment grew louder.
The CIO was in a fix and wondered why her winning strategy was no longer
deemed effective ? They had bought from one of the largest providers in the
world and the vendor had in many meetings acknowledged the leadership in
implementation of some of the solutions. Business had participated in the
selection of the solutions in almost all cases and signed off the choice. Now
how could they be pointing fingers and distancing themselves ? Okay, there were
some disagreements on the solutions and partners, but …
The applications lead had grown within the ranks and his first
implementation of any major system was from this big solution provider. The
success of the first big step gave him sense of invincibility if he continued
to bet on the same provider. Guess what, it actually worked for a while and the
resultant growing arrogance made him deaf to the occasional issue and
limitation. After all not every wish list can be fulfilled by the solutions;
why did they not admire the brilliance of simplicity of integration of parts
from the same vendor ?
The CEO instructed the CIO to benchmark with specific companies to find out
how they stacked up in comparison and what they can learn from some of the
finest companies. Initially skeptical and full of themselves, the CIO and the
team ventured out to explore the world and how others lived. The chosen
benchmark had a much awarded CIO who was seen as an early adopter and trend
setter. He was always happy to share his success with others and welcomed the
team to spend time with him and his IT and business teams.
There were many common solutions deployed between the two companies; they
had the same big name vendor as their primary provider and that is where the
similarity ended. The CIO had given the freedom of choice to his team to seek
solutions beyond the initial investment. In fact he challenged his team to find
alternatives just to be sure that they had covered all options before making a
choice. They were cautious of the fact that they did not want compromise
solutions and were willing to stretch to get the best.
Both companies having started their IT journey had taken different paths
at the crossroads; one had gone down the well-trodden path of low risk and
reaped the fruits that came along the journey. The other created their own path
and enjoyed the journey and the new experiences that it brought. The first was
finding her achievements pale in comparison to the risk taker who had the
business totally in sync with the decisions, the pains and the success. Two
different paths enabling business, two different outcomes, two tales of
success.
Which path have you taken and what is your story ?
I had a similar experience with an ERP. I took upon myself along with my colleague to maintain in-house We made the system work for the company till SAP was implemented. Of course, we took a calculated risk for about 4 years. There were bricks but we withstood on our task. We ensured smooth transfer to SAP 4 year later.
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