Guard Against Tech Purchasing Remorse

Tech purchasing is often skewed by business stakeholders and technology experts who fixate on specific business capabilities or features to the exclusion of other stakeholder needs. This laser focus can lead technology teams to focus on the best vendors in their preferred technology solution category, shutting out potentially promising vendors in other categories. Instead, direct technology buying teams to focus first on business outcomes and remain open-minded about the technology solution or approach.

Use an iterative learning-and-refining approach ─ a continuous cycle of refining the business strategy and needs ─ until a plan to achieve business outcomes is in place. This ensures that even the silent needs of unseen stakeholders are represented.

Although leaders often set the direction for tech purchasing, they seldom oversee the buying process to ensure business outcomes. However, when business and technology leaders are engaged throughout the buying process, the team is more likely to keep the big picture (business outcomes) in mind. In addition to giving direction, leaders in both technical and nontechnical roles should prioritize recalibrating strategic business and business technology objectives in response to technical and commercial realities.

Those who understand the strategy and drivers of technology vendors and their sales teams elevate their own teams. This better positions members of the buying team to negotiate with a well-resourced, well-prepared vendor sales team. Strong IT SPVM teams are also trained in risk, negotiation and relationship management, and empowered with market intelligence.

The traditional, rigid request-for-anything (RFx) approach establishes contracts that fail to provide the flexibility needed to complete complicated technology solutions.

Urge chief procurement officers (CPOs) to include agile sourcing approaches, which are more likely to yield a successful technology purchase in the competitive process.

Invest in agile and lean training for the IT SPVM team. Direct the team to work with the CPO to establish agile procurement guidelines and practices. Larger organizations should also consider establishing an agile procurement center of excellence.

Plan for the future by ensuring technology contracts account for potential scenarios involving business plans and technology roadmaps. Although no agreement can cover every possibility, a comprehensive contract outlines each party’s responsibilities in a range of areas.

Risk-averse organizations tend to have worse technology-buying outcomes than risk-tolerant ones. Risk-tolerant buyers evaluate more information sources to prepare for the buying process, and stay apprised of potential pitfalls. To increase the likelihood of a high-quality tech deal:

• Engage with independent third parties.

• Conduct traditional research and due diligence.

• Seek help from providers.

• Consult with colleagues.

• Make use of existing knowledge.

• Work with service partners or consultants.

Communicate your organization’s risk tolerance levels for data sensitivity, protection, location, continuity of operations and appropriate uses of generative AI. This will keep buying teams informed about risks that require additional approvals and oversight.