Business and IT leaders now collaborate on difficult buying decisions. IT solutions 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 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 many cases, ITDMs serve as primary influencers and technology gatekeepers, and BDMs usually provide final approval on funding, although the interplay is often more complex.
Many Players Involved
According to a recent Raconteur report, 94 percent of business leaders say at least six people are involved in IT purchasing decisions. Another 53 percent say that 11 or more people are involved, and 21 percent say 16 or more people are consulting. On average, business leaders have at least some say in IT purchasing decisions in four departments besides their own. Additionally, the final decision is no longer up to senior executives. Directors, department heads and managers may have sign-off authority for purchases.
These trends point to the impact of technology purchases across multiple functional areas and the need to make the right decisions to avoid budget overruns, business disruption and risk. However, the involvement of so many decision-makers complicates tech purchasing.
That’s why the IT pros are critical to the process. According to the study, 54 percent of business leaders say IT is regularly involved in technology purchases. IT pros may not be the final decision-makers, but they serve as influencers and technology gatekeepers. Business leaders rely on their technical expertise and understanding of the IT environment to help make decisions that are right for the business.
Complex Process
This approach is a natural progression in IT’s shift from a cost center that provides tactical support to other departments to 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, IT environments are still complicated, 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 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.
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.
An Unbiased Voice
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. Studies show that most organizations look to partners for help in simplifying 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 have often 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.
