CIO inverted is OIC or "Oh I See" !
A CIO Blog with a twist; majority of my peer CIOs talk about the challenges they face with vendors, internal customers, Business folks and when things get through the airwaves, the typical response is "Oh I See". Some of you may disagree with my meanderings and that's okay. It's largely experiential and sometimes a lot of questions
Updated every Monday. Views are personal
Monday, September 14, 2015
Selling to CIOs is a difficult process and getting tougher
Monday, March 09, 2015
Big customer of a small vendor, or small customer of a big vendor
Monday, November 25, 2013
If CIOs became Tech company CEOs
Monday, May 13, 2013
Taken for a ride !
Monday, December 24, 2012
Building a partnership
Monday, December 17, 2012
The long and short of IT
Monday, October 15, 2012
Stop Selling !
Stop Selling Part 2
Monday, September 03, 2012
Good CIO, Bad CIO
Monday, July 02, 2012
Negative Selling
Monday, May 21, 2012
Legally Illegal
Monday, April 23, 2012
Whine, Wine, Win a deal
Monday, February 06, 2012
Rotten Eggs
Tuesday, August 23, 2011
Language curriculum for CIOs or ...
Tuesday, October 12, 2010
Doing business with startups, due diligence and lessons
In quite a few cases, there is not much to differentiate one startup from the other. So how does the CIO separate the chalk from cheese? What is the due diligence required before getting these vendors on board?
A majority of these startups are seeded in institutes like IIT and IIM (globally pertinent equivalents may be the Silicon Valley or MIT kind of institutes), where the idea takes shape fuelled by the entrepreneurial bug. Most such ideas take a while before they gain traction with their target audience. These are the real gems, and being an early adopter of such startups provides an immense advantage.
Having worked with a few such companies, I realize that it does take a lot of effort to get the product/service aligned to enterprise processes and direction. As the first or amongst the first few customers, the value proposition is almost always attractive. Their reference checks largely depend on their mentors (professors or others) who are able to provide the details behind their continued support to the new entity.
The second category of startups comprises breakaway groups from existing companies, where a group of people have decided that their ideas have higher value than what they currently see within a large entity. This group typically specializes in services for a specific technology, domain or application. Such companies do well to begin with as they are patronized by existing customers (supported by them) who see a price advantage with a smaller startup. Such entities pass the tipping point within 12-18 months by either reaching a steady state, or falling apart. The due diligence is thus largely dependent on the team’s leader and its past track record as they continue to offer similar services.
A variant of the second category is a group being lured by an investor who believes that unlocking the potential has good upside for everyone. The service offering is thus no different from the above. A private equity institutional player invests in existing entities that needs funds to scale up or laterally, but in this case the carving out was initiated by the investor. How does one ensure that the entity will survive and make it to the tipping point? The team comes with impeccable credentials; the unknown factor is the investor who may pull the plug. In such a case, it is critical to conduct diligence on the investor and his past track record. Search engines come to your rescue in such cases, as past footprints cannot be obliterated.
Either way, put in safeguards to protect your enterprise’s interests with financial, legal or even escrow accounts to address sudden disruption. Work with your legal team for once, ask all the questions even if they make the other queasy; at least you will be able to sleep with ease.
Monday, October 04, 2010
Strategic vendor meetings, slip between intent and execution
As a purely transactional arrangement, this works well, but many other value added opportunities get missed as this vendor is not our first recall. The CEO was aghast and promised to remedy the situation quickly through a strategic meeting with solution heads and domain experts; this was to be repeated every quarter, or on demand.
Six months passed, and nothing happened. Another chance meeting, and this time the CEO turned crimson on hearing the progress. In the interim, some more business went to their competitors. The chastised managers began the chase attempting to fix this meeting, which materialized after another three weeks. Time requested and granted — 1½ hours, scheduled start 2:30 PM.
D-day arrived, and this is how events unfolded:
2:30 PM came and went with no sign of the delegation; No call, no SMS, nothing. The audience comprising of the CIO and a few General Managers waited with some concern and amusement.
3:00 PM: Account Manager turns up. After 10 minutes, the second person ambles along. Meeting starts at 3:15 with a presentation on how the vendor sees the current market. They shared their beliefs about our challenges, and thus the opportunities for engagement. He talked about services that we have tried unsuccessfully with the vendor as the key unique selling points.
3:30 PM: The Sales head joins the meeting while the discussion was on an organizational matrix—a model that would support us in the collective quest to take engagement to the next level. As we started tabling issues, the vendor team had reasons for all that had nothing to do with them. An ERP upgrade, change in account managers, shift of support personnel, I am sure you get the point. But there were only fleeting regrets that they did not update us on open issues or orders despite multiple reminders.
3:45 PM: “What are your priorities and projects for the next 12 months?” and we quipped “To explore new and alternative vendors”. My colleague whispers that this meeting is worth a mention on Oh I See. Saving grace for them came in the form of an urgent phone interruption.
4:00 PM: The reception announces arrival of the last person who was to join the meeting. I get up and walk out of the meeting.
I wonder whether the vendor realizes what they (did not) achieve with the strategic meeting scheduled by their CEO with intent to enhance business with our company. Why does the IT vendor fraternity not teach its sales force to listen, engage, empathize and show some patience – the four tenets of retaining your customers? All of them (except a handful) are interested in talking, or presenting the great slides provided by their local or global HQ with inane survey data that normally has no connect in the local dynamics of business. Like every other business, retaining customers is all about creating a differentiated experience, unless you always compete on price.
Monday, February 15, 2010
The evolving IT service provider
It was interesting to observe that the audience comprising largely of CEOs and heads of sales (or service), listened with rapt attention. It was eerie in a way — there was absolutely no cross-talk, buzzing of mobile phones, or anyone getting up during the hour long talk (I am used to, and also guilty of, such behavior during conferences). The audience could associate with most references to vendor behavior — their wins and losses, joys and frustrations, ups and downs. It was as if their lives were being subject to scrutiny, at a scale never done before.
On the flip side, the participants had many questions on why CIOs ignore them, and at the same time want the CEOs to visit even for a small transaction. According to many, the CIO egos were a big put off. There were also many questions around the lack of transparency in decision making, the inordinate negotiation timeframes, and then expectations of how the services, goods or solutions should be delivered in super crunch time.
As I made an attempt to answer some of these concerns, it was evident that the CIO’s evolution is still an ongoing process. Not every CIO has evolved to a level of maturity where almost every business transaction is a win-win situation (or every interaction is looked forward to). There are no universal answers that can be applied to every situation, since the CEOs agreed that there is a serious need to impart skills within their teams in order to more easily manage the situation.
Governance applied to IT procurement was another heatedly debated aspect. While vendors like to work with the CIO towards long-term relationships, being the lowest price vendor is not the best criteria for selection in such a scenario. According to the vendors, value additions offered as proof of concept, training and education, post implementation handholding, and technology advisory should be given due weight while taking a decision on awarding the business. The channel partners also expect clear decision making cycles, so that they do not end up in the hands of “purchase departments” who measure only on the basis of savings over the initial offer or budget.
The relationship between IT service providers, channel partners, and the CIO is at best, symbiotic. We need each other to be successful, in our quest for achieving our objectives. A partnership built on shaky ground will not withstand the travails of time and pressure from internal as well as external forces. Trust has to be built upfront and sustained, for each others’ success. To quote my favorite management thinker (at least in 2010), “The aim of marketing is to know and understand the customer so well the product or service fits him and sells itself” – Peter Drucker.
As the IT service providers and channel partners evolve to understand their customers, the industry in which they work, the opportunities open to their customers, and work towards creating success for the CIO, it will be a challenge for some CIOs to now engage with them at a new plane of maturity and understanding. It the CIOs fail to achieve this, they may alienate themselves into a situation that will make success difficult.
Are CIOs up to the challenge? It still remains to be seen.
Tuesday, February 09, 2010
Irrelevance of vendor presentations
Last month, I was invited to a a marquee publication house’s three day offsite CIO event to discuss the coming year’s IT agenda. Topics on the agenda looked good, the attendee list was glowing, and a long standing relationship with the Editor propelled me towards attending this event. So I packed my bags and decided to give it a shot.
Almost all such events invite a couple of CEOs and thought leaders to share their insights and provoke some thought within the audience. And the CEOs did not let down on that promise. They had the audience eating out of their hands, listening with rapt attention to every word, absorbing it, taking notes, discussing with their neighbors, and in the end asking a lot of relevant questions. The act was a tough one to follow, but the CIOs were charged.
As a result, they (the CIOs) did not mind a few vendor presentations. To their credit, the CIOs did attempt to follow these sessions, but it was a difficult proposition to keep the lids from drooping.
The following days had everyone unanimously wondering what hit them. The torture began with inane presentations ranging from the usual suspects — virtualization, green data centers, cloud computing, outsourcing, intelligent cabling systems, network rationalization, and so on. A few consultants tried to revive the audience by raising questions about CIO reporting and their efficacy. The audience was too numbed to be provoked, and let it go with a mild reprimand similar to “Don’t disturb my sleep”.
The icing on the cake was a presentation on “What is a Data Center”. Yes, men are from Mars, and in a predominantly male crowd, by association CIOs could be classified to belong to Mars. But telling a CIO about what a data center is like is rather akin to teaching Michael Schumacher how to ride a car! I wanted to insert an analogy on Golf, but decided against it.
Without exception, every sponsor had a slide deck (with a minimum of 30 slides) to be displayed to the captives. They ranged right from very basic elementary stuff and all the way to one which wanted CIOs to learn how to move virtual partitions across servers. To be subject to such a score of presentations over two days beats the torture that even the famed Nazi inflicted on their poor captives.
Despite being advised against it by the organizers and post event feedback by the audience, it beats me as to why vendors insist on subjecting CIOs to repetitive presentations with nothing new to talk about, and preach their version of religion. To top it all, these activities are dished out by sales and marketing folks, who are not even subject matter experts (these people could potentially be challenged by the listeners).
The last straw (in a few cases) is the substitute junior staff member reading out slides with no eye contact with the audience. Such a person is typically in a hurry to get off the stage in order to avoid any cross-questioning from the few members who suffer from insomnia. I would rather withdraw the slot than be the subject of “How to reduce your exposure to this vendor”.
Has the IT vendor become a slave to these habits? Has their thinking has become clouded (a side effect of cloud computing?)? Is the scene so bad that IT vendors are unable to explore alternatives to engage their prime customers — the CIOs? Whatever happened to good old case studies, panel discussions, and interactive sessions in the form of a Q&A? Are vendors unable to stand tall without the crutches of slide decks which no one wants to see? Why do vendors continue to alienate themselves from their customers?
I guess it’s time to get back to basics. To quote Peter Drucker once again, “The aim of marketing is to know and understand the customer so well the product or service fits him and sells itself.” Will a publishing house donate some Peter Drucker books to all the Marketing Heads of IT companies?
Monday, January 25, 2010
How should vendors engage with the CIO
For IT Vendors, CIOs are a very sought after audience. As a result, they always solicit face contact with the CIO to pitch their wares, hoping to get a foothold in the company. These vary from license sellers (paper licenses or shrink-wrapped), hardware vendors, consumables, networking, security, applications, custom development, maintenance, testing services, manpower augmentation, staffing services, consulting, strategic alignment, and so on.
If I were to create a comprehensive list (which I will do some day), it would probably run into multiple pages! CIOs endeavor to keep these individuals and companies at bay, as they seem to be interested only in selling, and nothing else. Also, consider the fact that CIOs would only be listening to vendor pitches and groveling through the week, if vendors have their way.
Vendor pitches range from “the cheapest”, “cutting edge”, “better than the other”, and in a few rare cases, “solve business problems”. The majority fail to engage in a dialogue or listen, as if they have the entire routine by rote — the moment they are in front of the CIO, the Play button is activated! Unfortunately, only a handful of vendors understand the realities of your company or industry. The typical vendor repeats stories that may be out of context (based on experiences with companies or geographies, where the challenges are dissimilar to those faced by you).
With IT budgets either about to lapse (in a few cases) and new budget preparations (for most of us), vendors endeavor to wrangle their way into our minds. These heightened pitches tire the CIO, and in many cases fail to gain traction of any kind. The story repeats itself many times over, with the results remaining the same.
Albert Einstein said it very well, “We can’t solve problems by using the same kind of thinking we used when we created them”. Vendors should stop selling, and start listening to their prime customers — the CIOs — on what they are working on, and then help them succeed. According to the Peter Drucker quote, “A customer never buys what we sell”. This is more so in the case of IT.
Every time a vendor approaches a CIO, his understanding of the CIO’s need should supersede the need to sell. Just the fact that you have a solution, does not imply that I have the problem!
Saturday, October 31, 2009
Non Disclosure Agreements
In the early part of the century after the recession brought about by dot-burst and 9/11, the IT industry had a lot going well for them. Many traditional industries started outsourcing and offshoring, and in one case, an inadvertent mention of a client name in a small newspaper column resulted in a written apology from the vendor CEO to the client PMO and VMO. It also resulted in a reduction in future business prospects.
Fast forward to the present, where vendors do not put in the customer name in presentations, but the words and context gives away the customer to anyone who can use a bit of market intelligence. This is obviously to protect the customer identity. So you may get referred to as “Top 3 FMCG company in India”, “Global 5 retailer” or “Large merchant banker in UK”. The case study that follows almost gives away the name, but still leaves a little room for guess work.
Going back to the incident, all the above mentioned safeguards were present, and guess what! Without exception, each presenter mentioned the customer names, stating that it was confidential. Talk about various non disclosure agreements that lawyers may have spent months preparing! Or warnings given by the CIO, PM or the business head!
Are NDAs worth even the paper they are printed on ? And in India, they are indeed printed on non-judicial stamp paper. When I asked some of them on this “slip”, there were no convincing answers. I’m not sure if there are any measures that you can take to address this situation.
Have you seen similar behavior? How do you protect your and your company’s interest in such a scenario? I would be very skeptical in doing business with such vendors, especially if it was something that brings competitive advantage in the mid-term.
This post was written for TechTarget.In and can also be seen at http://itknowledgeexchange.techtarget.com/Oh-I-See/
Wednesday, January 02, 2008
Vendor Feed Forward (not feedback)
Surprise (not really), corporate blogs are becoming big with companies putting up blogs which talk about their products and services. These use broad based trends to promote their solution and why you as the CIO/decision maker should be running to them to help solve your problem.
After attending a few events in the last 3 months and having been subjected to a barrage of vendor pitches, I wonder why they never learn from their past mistakes ? Almost every event has a technology vendor as a sponsor and by virtue of the money spent, they get a few slots to address the audience.
Guess what do they do with their valuable time ? Talk about their products, which anyway everyone in the audience knows about, wasting precious time which could have been used to engage in a dialogue or seek their participation to explore opportunities. You will find 80% of the audience busy with blackberry phones or doodling away; some brave ones walk out while a few interrupt the speaker with their snores ! And to add to the misery, they want feedback !
So I requested a few organizers to create a forum for feed forward (as opposed to feedback) to help the poor things understand what we want to hear from them. It would be a great service to the IT fraternity if vendors listened and used the information gathered in their planning on what to do with the timeslots.
But then we are not rewarded for going against conventional wisdom. Marketing and Sales organizations will want to make presentations on what they have or will there be wind of change ?