procurement

Is procurement rearing its ugly head in IT?

Judi Hasson — Tue, 01 Jul 2008 17:17:32 -0400

There was a time when IT professionals decided on the technology and the equipment to purchase, and then the procurement side of the company would come in and perhaps try to negotiate a better financial deal. Today, with budgets tight and the economy slowed, procurement is getting involved earlier, and with a louder voice, trying to put halt to so-called "maverick spending" and more aggressively clamping down on costs. There is no doubt procurement disciplines can save money. The question becomes whether IT will suffer.

For more on this tug-of-war:
- see this CIOupdate.com article

Stock advice: Sell Dell

Mon, 03 Dec 2007 06:59:59 -0500

Dell missed Wall Street's earnings expectations last week, according to the latest column in InfoWorld. And that's just the start of the warning signals. The report says the company that used to be known for its perfection is having trouble putting one foot in front of the other. While Dell has been making adjustments to jumpstart its earnings, the latest report shows a gross margin miss. Dell reported an 18.5 percent margin miss vs. the expected 19.1 percent, according to ATR analyst Shaw Wu. "We find this odd as (Apple) and HP experienced the opposite and our own supply chain checks indicate otherwise. Moreover, Dell's (average selling prices) were flat to up, indicating pricing pressure wasn't a big issue," he wrote in a note to his clients. So what's the reason? "Poor procurement execution." "It is interesting to note that Dell's costs may actually now be higher than HP and Apple, something that was unthinkable not that long ago," Wu said.

That's not Dell's only problem. The company had a huge battery recall not too long ago. There was evidence of deterioration in quality control and customer service. These are big headaches for a company that had been on top a few short years ago. Last Friday, the day after the results were announced, shares of Dell were off nearly 13 percent. And it's a lesson for every tech company. Customers have no tolerance for inadequacies. They will simply go somewhere else.

For more on Dell's stock roller coaster:
- See this Infoworld article

Negotiation skills are critical for CIOs

Mon, 01 Oct 2007 06:59:57 -0400

Whether it's an outsourcing agreement or a supplier contract, CIOs are getting more involved with corporate negotiations. And according to authors Danny Ertel and Mark Gordon, CIOs have as much stake as anyone in well crafted agreements. The question is, are they teaching this in CIO school? In their upcoming book, The Point of the Deal: How to Negotiate When Yes Is Not Enough (Harvard Business School Press, October 2007), the authors write that negotiating a good deal means more than winning on price or other terms. "If implementation matters, then the deal itself cannot be the end goal. We have seen myriad examples of clever procurement people losing sight of the real purpose in negotiating deals with a supplier, striking deals that looked good at the outset, but failing to accomplish what they needed." The need for a working relationship after the ink on the contract has dried is important and, like everything else, preparation is essential. "Part of bringing an implementation mindset to your negotiations is to keep your focus on the end goal and all the things (including, but not limited to, an agreement) required to get there. Our best advice is not to be quiet and circumspect regarding implementation, but to be unabashedly explicit about your goals and concerns for that phase."

For a full look at the book excerpt:
- see the article in CIO Insight

Making the most of post-merger savings opportunities

Thu, 26 Apr 2007 20:01:39 -0400

Although the vast majority of IT managers and CIOs don't believe that companies can reap significant software savings following a merger, it's easier than you might think. That's the conclusion of IT experts at a roundtable held by Computacenter, a European provider of IT infrastructure services. The hardest part is identifying where IT savings can be made, but once that is done, carrying them out is relatively simple. First, find out what software is owned and used by both companies. Then decide what software is unnecessary and make sure that what is retained is used to its full potential. Also, negotiate better deals for software licensing. But speak to software suppliers before a merger to ensure, for example, that they don't illegally and unknowingly use software that hasn't been paid for. And clarify the responsibilities of IT and procurement before the merger takes place so that savings can be properly credited.

Learn more about savings during mergers:
- read the article at SupplyManagement.com

ALSO:
- read this on being wary of software consolidation
- and this on CIOs taking center stage during mergers and takeovers

Best practices in IT management

Sun, 22 Apr 2007 20:01:39 -0400

Requests for new systems, enhancements to existing systems, procurement of new technologies, and support for employees, partners, suppliers, and customers seem endless. As a result, users still worry that IT isn't always aligned with business strategy, IT isn't effective enough at deploying resources, and that IT is losing its capacity to innovate because of its maintenance burden. The solution is that IT must shape, not just accept, demand for its services. That means aligning the supply of IT resources to optimize business value, influencing and modifying end user behavior by providing meaningful information, and enabling a more complete understanding of the costs and trade-offs associated with the consumption of IT services and resources.

For more about good IT governance:
- read the white paper at ComputerWorld

Managing corporate mobility

Wed, 21 Mar 2007 20:01:36 -0400

To create a comprehensive mobility plan for your organization, start by creating an internal wireless policy. Then request a copy of your monthly billing data from the carrier in electronic form and use it to analyze data. Also, a split liability policy, where employees buy their own devices and wireless plans and submit bills for business use, isn't the best way for a company to manage wireless programs, because it's difficult to administer and more costly for the company. And on the security front, if employees own their own devices, they can take company information with them when they leave the company. Finally, when forming a device management policy, make sure it identifies who has what and with which carrier, controls procurement and billing, provides end user support and includes strategic management.

Learn more about managing corporate mobility:
- read the blog at InformationWeek

ALSO:
- read this on the importance of mobile security
- this on best practices in managing mobile devices
- and this on choosing the right device for mobile workers

Dell hires on some powerful help

Wed, 20 Dec 2006 19:01:35 -0500

Dell, after suffering some attrition and top management losses, is shoring up its executive ranks by pulling in some well known tech industry players. The second-largest PC manufacturer has hired on a former EDS executive VP to lead its computer services business, as well as ex-HP honchos to lead procurement and hardware sales. Analysts say the new blood could go a long way in revamping Dell's traditional business strategies, which are showing some wear and tear.

For more on who's heading to Dell:
- read the news at BusinessWeek

C&L: Announcements regarding career moves

Tue, 19 Dec 2006 19:01:31 -0500

If you missed last Wednesday's Career section, you can always click on over to our archives where you have free access to all of the career news we've printed in the past few months. Here are some recent announcements regarding career moves:

Rick Broughton has been named VP and CIO post at Circor International.

Perry Cliburn is the new executive VP and CTO at Ceridian Corp.

Robert Wittgen is now CIO for Osram.

Christopher Rieder is the first CIO at Parexel International.

Mike Dolan is now executive vice president of administration at CarMax, responsible for IT, HR and procurement and engineering. The company also promoted Richard Smith to senior VP and CIO.