Changing balance of power across large licensing, development & integration projects
Contract
Peak of Buyer Dominance
Team mobilisation
Resourcing problems arise
Specification gaps uncovered
Signing
Supplier Negotiation
inan
ce
Presentations etc.
Deep specification
Commercial challenges
Scope creep
Significant expansion of scope
Extra costs create business case uncertainty
Supplier Proposals
Supplier Evaluation
Supplier Delivery Slippages
Buyer D
om
Commercial challenges
Project on hold while business case reviewed
First slippages occur
Approach market (RFI/RFP) Business case reviewB
Develop & agree business case Go/No go assessment
Time
If “Go”, supplier dominance asserted; if “No Go”, major costs write‐off
ominan
ce Supplier renegotiation
Project re‐planProject
Go LiveSupport &
Maintenance
Supplier dominant in project renegotiation
Further slippages as project is re‐planned
Supp
lier D
o
Trough of Supplier Dominance
Project delivery
DELIVER SUPPORTSOURCE
Supplier re‐engagementSupplier re‐engagement at significant additional cost Bespoke support and
version retrofit costs are heavy over time
S DELIVER SUPPORTSOURCE
Late, costly delivery erode planned business benefits
Hostage to uplifts in support charges
©Ray Murphy, Strategic Computing Limited For Best Practice Software Procurement training contact [email protected]
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