Cooperative Tech Purchasing

Cooperative Tech Purchasing

Business and IT leaders now collaborate on difficult buying decisions. Third-party providers can help.

It wasn’t that long ago that IT departments were essentially technology fiefdoms, largely independent of the rest of the organization with a few key managers having almost total authority over operations. It made sense at a time when computing systems were new and not well understood by executives and end-users.

Technology is not quite the mystery it was two decades ago, however, and IT departments are no longer the central dispenser of all things tech. Business and IT functions have become much more closely aligned, creating a stronger focus on achieving specific business outcomes while maximizing value. As a result, business leaders today play an increasingly large role in technology purchasing decisions.

Industry research suggests that IT decision-makers (ITDMs) and business decision-makers (BDMs) today have a far more collaborative relationship when it comes to the acquisition of IT products and services. In most cases, ITDMs serve as primary influencers and technology gatekeepers with BDMs usually providing final approval on funding.

Shifting Roles

According to a recent survey from Spiceworks, IT decision-makers still do most of the legwork on exploring technology solutions and vetting potential providers, but business decision-makers such as the CEO or CFO increasingly make the final decision. According to the survey, 86 percent of ITDMs evaluate and recommend technology, but only 22 percent make the final purchasing decision.

“As an IT professional, I’m not the final decision-maker at my organization, but I have two very important roles: decision influencer and technology gatekeeper,” said Justin Davison, manager of IT operations at RJ Lee Group. “Our business partners in marketing, development, sales and other functions rely on our technical expertise and understanding of our existing environment to help make decisions that are right for the business. So, if a technology vendor doesn’t convince IT, their product typically doesn’t make it to the business decision-maker.”

This approach is a natural progression as IT shifts from a cost center that provides tactical support to other departments to become a strategic partner that can generate revenue and support business objectives. However, that doesn’t mean there aren’t conflicts.

Although executives and business users are much more tech-savvy these days, business IT departments are still complicated environments involving a wide array of hardware and software resources, special connectivity requirements, licensing considerations and more. IT leaders must evaluate purchases knowing that they will ultimately be responsible for implementing and managing new technology.

While ITDMs naturally tend to focus on critical technical requirements, BDMs must also evaluate total cost of ownership, return on investment, time-to-market and many other business considerations. Bad technology decisions can hurt the bottom line through poor customer experiences or reduced user productivity.

According to a recent Techaisle survey, these diverse viewpoints play out in different ways depending on the type of technology being evaluated. For example, businesses tend to take their lead from IT leaders when considering managed services and virtualization solutions but look to business leaders for direction on analytics and team collaboration solutions. The survey indicated a more collaborative approach when evaluating mobility, SaaS and IaaS initiatives.

An Unbiased Voice

Even with a collaborative approach, it can be tough to pull the trigger. For every potential solution, there are usually dozens of viable alternatives. In addition, the speed of change in the technology world means there’s always a chance that a better option will emerge in a matter of weeks or months.

Partnering with a vendor-agnostic IT solutions provider can be extremely helpful in facilitating conversations between IT and business leaders, helping them select a solution that meets all their requirements. According to the Techaisle survey, 87 percent of organizations say they look for partners who can help simplify technology purchases.

Vendor-agnostic providers may have strong relationships with dozens of suppliers. With no incentive to push a particular product, they can offer unbiased evaluations. They can also leverage those relationships to find favorable pricing and technical support. Additionally, providers often have helped other customers evaluate, implement and manage similar solutions, giving them valuable insight to guide purchases that will both meet business requirements and fit with existing infrastructure.

IT departments no longer exist in a vacuum — they must be closely aligned with other business units to achieve business objectives. As a result, technology purchasing has become an increasingly cooperative effort among IT and business leaders. In many cases, an unbiased IT solutions provider can be a valuable collaborator and help drive purchases that meet both strategic and tactical requirements.

 

 


Just released our free eBook, 20 Signs That Your Business is Ready for Managed ServicesDownload
+