This document summarizes a presentation about whether IT suppliers prioritize revenue over customer needs. It notes that most survey respondents felt suppliers "simply follow the money." The presentation discusses how suppliers' commercial approaches can either enable or restrict business transformation. It also examines how suppliers' regional structures and reward systems may not support global or long-term strategic partnerships with customers. The document concludes with questions about how successful companies have overcome issues like suppliers lacking engagement or vision.
Driving Behavioral Change for Information Management through Data-Driven Gree...
Consumer needs versus supplier revenue
1. Consumer needs versus
supplier revenue - do IT
suppliers follow the money?
Presenter: Mark Henshaw
ECONIQUE CxO Dialogue
Information Security and Risk Management 3
22nd and 23rd November 2010
Beaumont House, Old Windsor
Slide deck version 1.3
2. Speed of evolving threat landscape
Pressure globally, do more with less (more efficiently)
Balkanised and federated kingdoms, man-made limits
The single instance
Integrated solutions across geography, technology,
information and data, processes, governance and the
supplier community
…but we are still living with yesterday’s answers!
Today’s World…
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3. Consumer needs versus supplier revenue - do IT suppliers
follow the money?
A real problem
Commercial approach will follow the trend
Customer strategy and deliberate commercial anchoring
Supplier ROI defeats customer partnering
Geography is a boundary
Plenary session
Uncover the approaches adopted by successful companies to
overcome some of the issues identified
Discussion
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4. Uncover the approaches adopted by successful companies
to overcome some of the issues identified in this
presentation
Do you struggle with suppliers who lack engagement and
vision?
Do you want to counter the new and emerging threats with
suitable solutions but feel potentially exposed?
What have you done to overcome some of the issues
identified?
Other suggestions welcome?
Plenary session - FYI
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We will work on this later
5. Poll results – Finance and IT opinion
Poll conducted Q4 2010:
• Enterprise, Large,
Medium, and small orgs.
• Owner, C-Level & VP,
Management, other.
• Finance and IT
Question:
Do your suppliers know what your business
needs are today and help you shape the
future, or do they simply follow the money?
Answer:
Majority of respondents felt that their suppliers ‘simply follow the money’
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6. Threat evolution = revenue streams
Device/Perimeter Security
Focus shifts to the
security of the
applications that
control the data
Focus on perimeter
security decreases because
of entwined networks and
mobile computing
?
Focus moves to the
data itself rather than
the environment in
which it is contained
No mature tools exist
for data security, but
planning should begin
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7. IT Technology life-cycle
Introductory
Stage
Growth
Stage
Maturity
Stage
Decline Stage
Total
Market
Sales
Time
IT Technology is
designed and built
with a set life-cycle
delivering expected
total market sales
and required ROI
Bolt-on options extend the flight path increasing
total market sales and ROI
Laggards
Late
Majority
Early
Majority
Early
Adopters
Innovators
"The
Chasm"
Technology Adoption Process
Old rope…at what point?
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8. Constant need to develop more sophisticated and clever
technology solutions due to the evolving threat landscape
impacts investment and life-cycle models – supplier
chasing the tail, not in control
Commercial anchoring can enable a supplier to achieve ROI
on technology – recouping development and expected
profit – supplier back in control
Commercial anchoring can delay business technology
transformation – customer not in control, forward motion
restricted by supplier
Anchoring ROI = tension
Anchor: Any of various devices dropped by a chain, cable, or
(old) rope to the bottom of a body of water for preventing or
restricting the motion.
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9. Suppliers generally follow the money (>80%)
Reward structures at odds with business desire
Customer wants to move forward and develop a
“partner” relationship with the supplier = long-term
investment
Different animal; multi-year journey, really
understands your business and the big picture, part of
your business plan, a stakeholder
ROI for Supplier
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10. Supplier organisations bounded within geographies – NA,
AP, EMEA, UK etc. Financial models not supporting
“global” solutions (or regional)
Investment and transformation slow to deliver vision
Conundrum: how to structure a global supplier
organisation with multiple customers, who are different
shapes and sizes?
Are they really global and do they have the necessary
reach?
Awareness of customer strategies, proactive?
Geography
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11. Uncover the approaches adopted by successful companies
to overcome some of the issues identified in this
presentation
Do you struggle with suppliers who lack engagement and
vision?
Do you want to counter the new and emerging threats with
suitable solutions but feel potentially exposed?
What have you done to overcome some of the issues
identified?
Other suggestions welcome?
Plenary session
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13. Poll results – Finance and IT opinion
Company SizeJob Type
Job FunctionBy Age
Question:
Do your suppliers know what your
business needs are today and help
you shape the future, or do they
simply follow the money?
Summary
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