Beneficial Intelligence

Vendor Selection

October 02, 2020 Sten Vesterli Season 1 Episode 15
Beneficial Intelligence
Vendor Selection
Chapters
Beneficial Intelligence
Vendor Selection
Oct 02, 2020 Season 1 Episode 15
Sten Vesterli

In this episode of Beneficial Intelligence, I discuss vendor selection. 

When selecting a vendor, most organizations use vendor size as one of the criteria. Normally, the vendor gets points for being big, on the reasonable assumption that a large organization is more likely to have the resources to complete the implementation project. 

But it is equally important that the vendor is not too big. Small organizations have a different culture from large organizations and having a small vendor deliver to a large customer, or a large vendor deliver to a small customer causes problems. 

Ideally, your vendor size should be in the same order of magnitude as your IT organization. If you have hundreds of people in your IT organization, you will have the smoothest project if your vendor has a total headcount in the hundreds. If your IT organization is in the tens of thousands, look for a vendor that also has a headcount in the tens of thousands. 

As a CIO, you should check if your vendor selection criteria include whether the vendor is the same size as you. If they are not, you have an additional risk factor. If they are, you have a better chance of a cultural match and a smooth-running project. 

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Beneficial Intelligence is a weekly podcast with stories and pragmatic advice for CIOs and other IT leaders. To get in touch, please contact me at [email protected]

Show Notes

In this episode of Beneficial Intelligence, I discuss vendor selection. 

When selecting a vendor, most organizations use vendor size as one of the criteria. Normally, the vendor gets points for being big, on the reasonable assumption that a large organization is more likely to have the resources to complete the implementation project. 

But it is equally important that the vendor is not too big. Small organizations have a different culture from large organizations and having a small vendor deliver to a large customer, or a large vendor deliver to a small customer causes problems. 

Ideally, your vendor size should be in the same order of magnitude as your IT organization. If you have hundreds of people in your IT organization, you will have the smoothest project if your vendor has a total headcount in the hundreds. If your IT organization is in the tens of thousands, look for a vendor that also has a headcount in the tens of thousands. 

As a CIO, you should check if your vendor selection criteria include whether the vendor is the same size as you. If they are not, you have an additional risk factor. If they are, you have a better chance of a cultural match and a smooth-running project. 

------

Beneficial Intelligence is a weekly podcast with stories and pragmatic advice for CIOs and other IT leaders. To get in touch, please contact me at [email protected]