Is your organisation ready to transact in the digital world?

Over time I’ve come across a number of organisations that were in the early stages of growing their digital maturity and while a lot of the current industry focus is around Artificial Intelligence, Machine based learning, chat bots and the like, there is a fundamental area that is a frequent blind spot for many organisations irrespective of the technology or system in question. That blind spot is how they contract with their digital partners, integrators, and service providers in the implementation of new systems or various projects. We frequently see the framework for delivery being dramatically weighted towards the provider rather than the customer. These proposals and contracts are usually constructed by the provider to position the majority of the risk with the customer, minimise contracted deliverables, implement mechanisms for scope creep, and generally draw down as much of the project budget as early as possible. It is common for provider contracts to detail a lot of the customer’s responsibilities but very few if any of their own responsibilities are documented.

Some tips towards a more equitable agreement include:

• Payment milestones should be against delivered artefacts rather than events i.e. the provision of documented requirements rather than just completing a requirements workshop

• Payment milestones should also be end-weighted to ensure the actual delivery of the system or service is a trigger for a large payment rather than the majority of the project budget being drawn down well in advance of actual delivery

• Ensure any work completed is to be done within your own IT Change Management and Release Management regime

• Do not allow carte blanche access to your network for their tools without your IT team vetting each tool, it’s use, and the potential for any adverse performance or security risks

• Ensure there is a mechanism to quantify the resources, access, licences, decision-points, and training required of your organisation prior to project start otherwise these areas become a convenient way to blame the customer for any slippage in the project schedule

• Ensure the project provides all support and operations documentation, materials, and training prior to go live

While the above represents areas for improvement it is important to remember that the implementation of any project or system is a partnership and the aim is to achieve equity in responsibility, risk, and outcome such that a true ‘win-win’ for both parties can be achieved and provide the project with the greatest chance of success.

If you are preparing to go to market, negotiating a project engagement, or have an existing project that may require some attention then I would love to discuss how our services and Virtual CIO offerings can assist you in this area. I can be contacted directly on 0409285045 or owenflynn@zenitil.com.au