Your Vmo & The Attack Of The Shadow It Organization

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Best Practices for Structuring Your VMO

Vendor Management Is Key To Realizing Your Sourcing Business Case – Why Leave It To Chance

EXECUTIVE SUMMARY
In early 2008 Alsbridge initiated a study working with its customers who had executed outsourcing deals to determine what makes the critical difference between realizing the projected ROI and coming up short. We discovered that early introduction of a Vendor Management Office (VMO) combined with critical change management and communications initiatives are keys to ROI (Return on Investment) realization. Without disciplined VMO leadership the dreaded shadow IT organization emerges attacking the business case and limiting the vendors ability to do what they do best, leverage capacity.

CIOs NEED AN EFFECTIVE VMO TO ACHIEVE THE PROMISED COST BENEFIT
The business case for outsourcing is the focal point of any strategic outsourcing initiative. Senior management most likely reviewed the cost benefit analysis and approved the initiative based on achieving an ROI with some limited risk. Now that the vendor has been selected and the contract has been signed senior management expects delivery on the numbers. This is where the real work of extracting the value from the organization and from the vendor begins. This is the work of the VMO.

Although having a VMO is a best practice more than two thirds dont have a VMO.

Of those who do have a VMO, most do not believe they have the right competencies and skills to operate the VMO effectively.

Worse still, the demand for VMO management skills are increasing as outsourcing initiatives flounder without good internal transition and vendor relationship management capabilities. Without good governance, the relationship becomes dysfunctional early on resulting in poor hand-offs between the client and the vendor making it impossible for the vendor to drive value for the customer. This means erosion of the cost benefit business case and weaker IT performance.

For example one client told us:

We did not institute our VMO soon enough and we wondered about for nearly 18 months before senior management demanded we either fix our vendor management problems, get them their ROI as promised or terminate the deal. We could have avoided the emergence of a shadow IT organization that attacked the deal from the inside. (Director of IT Outsourcing Initiative, Large Automotive Supplier)

Similarly, another client gave us the following background on the institution of the companys VMO:

We must have a strategic relationship with our vendors or why else engage them. This is enough justification for forming a VMO. We knew transition was complex and we knew that we would have to address vendor problems if we were to realize our business case. We were not about to try to explain to our senior leadership why we are not getting the full benefits outsourcing. (CIO, Large Insurance Company)

THE ATTACK OF THE SHADOW IT ORGANIZATION

We found most companies recognize the need to establish their VMO early but they are struggling with competing demands for people who cannot be freed up early enough to focus on transition and governance issues. As transition begins, communications with business leaders falter, retained staff struggle to understand the new service delivery model and to adapt to new business processes. Business leaders can become confused as old processes are replaced with new ones and familiar IT buddies are replaced with unfamiliar vendor personnel who are focused on driving process discipline and achieving operating efficiency. Without strong central leadership driving communications from the onset, it is not long before IT staff begin reacting to the demands of their business customers.

One client told us that:

within six months of the completion of transition we had a shadow IT organization taking back some of the functions that had been outsourced to our vendor. Our retained organization, just did not understand how to get the job done using vendor resources. So with good rationale, our people implemented their own processes that did not include the vendor. Had we implemented a good VMO, we could have avoided this attack from the inside.
–IT Director, Insurance Organization

THE KEY FUNCTIONS OF A HIGH PERFORMANCE VMO

Successful VMOs have an organizational framework that can orchestrate constituencies to the outsourcing deal throughout the sourcing life cycle. The VMO must also be able to adapt; changing its functional focus as the deal transverses the multiple phases of outsourcing from strategy development through contracting to transition and stabilization to contract renewal. The VMOs primary role is to manage the relationship for optimum value realization from beginning to end. Within this primary function are four distinct VMO functions.

The chart below provides a view of what a VMO organization framework might look like and the four distinct functions of the VMO as a relationship management function.

While this model provides a view of a complete VMO, in reality, the right VMO structure is a hybrid a variation that fits within the organizations business environment, cultural norms, investment profile, outsourcing deal type, and relationship management readiness. For example an existing VMO might include Centers of Excellence (COE) that perform many of the activities associated with contract and service level management, while another COE performs financial and demand management activities.

Service Level Management
Among the strategic imperatives for creating the VMO is long-term performance improvement. Hence, service level management goes beyond making sure that SLAs are measured, monitored and reported. The VMO must exert pressure on both the client and vendor organizations to improve processes for increased consistency and reduced costs. More process discipline is required as the relationship matures and it bridges the gap between pre- and post contract activities.
Contract Management
Once the contract is signed the work of making the contract work takes center stage. The focus must move away from terms and conditions and move quickly to the practical application of the contract in the daily operation of the IT business. The VMO executive must manage the chasm between what is in the contract and what must get done each and every day.
Financial Management
The VMO actively works with the program management office (PMO) to coordinate the delivery and capabilities of multiple vendors, not only sourcing providers but also software, hardware and other technology suppliers. This involves intellectual property management, invoice/payment management and audits, discretionary pool /ARC/RRC management, and service audits. Senior executives are most interested in the financial results of the sourcing initiative, therefore, the VMO must include individuals with the business savvy to provide regular financial performance updates that spell out performance against the original business case.
Demand Management
The ability of the VMO to balance the wants and needs of the business and to forecast demand is critical to the vendors ability to complete annual service planning and to be ready and able to meet service requirements. An effective VMO can eliminate the emergence of IT shadow organizations by creating a central office for gathering, organizing, prioritizing and validating business requests. The VMO should become the unified front of the organization when managing the interface between the organization and its vendors. This unified front is the key to ensuring the client is directing the relationship not its vendors.

BUILDING AND EFFECTIVE VMO

The VMO can be viewed as bureaucratic overhead or as the Business Case Enabler. The difference is in how the VMO is established, its charter and the friendliness of its processes in supporting multiple organizational and IT operating goals. There are five critical factors to consider when building a VMO:

1) Select a VMO leader with the right competencies and skills. The VMO leader must be armed with the ability to coordinate and communicate across many constituencies on both the client and the vendor sides. This means navigating through both the written and unwritten rules of engagement.

2) Engage the business in the design of the VMO organization and management processes. Acceptance of the VMO increases when stakeholders help architect the processes and understand how to leverage the VMO to get things done. The VMO should be flexible while insisting on principles of standardization and adoption of proven best practices. Standardization is an imperative if the organization is going to truly leverage the value its vendors are capable of providing.

3) The VMO should report to a centralized CIO. In a global sourcing deal, it is likely that multiple regional business units are coming together under a single sourcing contract. To achieve standardization across the enterprise the VMO should operate under the sponsorship of a global CIO.
Position the VMO as a COE. Over time the VMO will develop expertise across a wide range of vendor management and project planning initiatives. This is valuable organizational intellectual property. The COE should provide coaching, advisory services for business customers and retained operations to reduce bureaucracy.

4) Promote the VMO. At its inception, the VMO will appear to be more overhead. The VMO must quickly demonstrate its value to the organization by addressing many common problems facing any organization entering into a sourcing relationship. Select three risks that everyone agrees must be mitigated as the organization enters into the sourcing relationship. Set out a plan, provide the VMO with executive sponsors and a charter with teeth. Deliver something that brings value to the business from the onset.
If you are considering entering into a sourcing relationship or if you are currently engaged in outsourcing, look around, does your organization have shadow operations lurking in the IT function. If so, a working VMO can be the best defense against attacks from within that diminish the value opportunity of outsourcing. Dont be caught without a good VMO.

If you are considering entering into a sourcing relationship or if you are currently engaged in outsourcing, look around, does your organization have shadow operations lurking in the IT function. If so, a working VMO can be the best defense against attacks from within that diminish the value opportunity of outsourcing. Dont be caught without a good VMO.

The most significant features of Java language

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Java is an object-oriented programming language developed by Sun Microsystems in 1990s. Since then, Java has gained enormous popularity as a computer language. Java was chosen as the programming language for network computers. It is a universal front end for enterprise database. Sun Microsystems states that, “Java is a simple, object-oriented, distributed, secure, architecture, robust, multi threaded and dynamic language. The program can be written once, and run anywhere”. One of the most significant advantages of Java is that, it has the ability to move easily from one computer to another. It also has the ability to run the same program on many different operating systems. With such exemplary benefits, Java is a hot favorite among techies and software professionals.

Java has significant advantages compared to other languages. Java language is easy to use and therefore easy to write, compile, debug. Moreover, it is easier to learn when compared to other programming languages. Since Java is object-oriented, it allows you to create modular programs and reusable codes. Platform-independent, Java is a robust language. The language lays more importance on early checking for errors, since Java compilers can detect many problems during the time of execution of an application. Java is multithreaded, since it has the capability for a program to perform several tasks simultaneously within the same program. Java Development has gained a significant position in the industry with programmers and developers finding it easier and more effective than many other languages.

Java applications are designed to be compiled and then interpreted at runtime, unlike the conventional programming languages, which can either compile source code to native code or interpret the source code. The language itself has borrowed the syntax from C and C++. Java considers security as a part of its design. The Java language, its compiler, interpreter, and runtime environment are all developed with security. Writing network programs in Java is similar to sending and receiving data to and from a file.

The Java programming language was developed and re-designed for use on the Internet. In the internet domain, Javas popularity has increased tremendously, especially on the server side of the Internet. Nowadays, there are a large number of Java experts who strive for the enhancement and improvement of Java development. For beginners who are interested in learning Java, the numerous Java tutorials available online are good to start with. Java tutorials and Java tips are the best resources for learning and improvising in Java.

Java Development experts are trying to enhance their programming skills for writing secure Java applications. In order to write a secure code in Java you need to be aware of various things such as data handling techniques, user authentication rules, access controls etc. JavaScript is a scripting language which shares a similar name and has the same syntax, but is in no way related to the core Java language. Few steps are crucial for a secure Java application development. They are logical software design, proper validation, well planed application development and standardized security test. Java has become the language of choice world over for providing effective and sure-fire Internet solutions.

Martial Arts Management And The Dojo Store

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If you aren’t selling equipment, supplies, and apparel at your martial arts school, you are definitely missing out on a significant source of revenue. As a practitioner of good martial arts management, a dojo master should always be looking for ways to further serve the students and sustain the school. The sale of services and products in addition to the core school lessons is an important aspect of any successful school. The dojo store can become a very active and profitable part of your school.

Additional Sources of Revenue

In most businesses, it is important to have a few different revenue streams. This way, if the sales of the main product or service falter in any way and for any reason, the other revenue sources can carry the business, at least for a while. Having a peripheral sales generator for your school is a good insurance policy.

It may seem to you as if setting up the dojo store is a big investment of time and money up front, and it can be if it is done too quickly or too expansively. But having the basic equipment on hand, in popular sizes, can be a quick sale to new or advancing students. You may want to display some of the most popular items, but most items for sale can simply be listed on an order form.

What You Should Stock From the Beginning

Here is some of the equipment you might want to have on hand to sell to your students:

Sparring Gear – depending on the particular martial art you are teaching, this can include head protection, mouth guards, hand and foot pads, and chest and groin protectors. Shin and arm protectors are common as well.

Uniforms – especially if you are teaching children, new uniforms will be in constant demand as they grow. Children can grow into a new uniform size every year.

Dojo Logo Equipment – offer a selection of t-shirts, sweatshirts, baseball hats, bandanas, and equipment bags, all displaying the name and logo of your school. Remember that anyone wearing your logo is advertising your school.

Training Gear – you can offer the basic training gear, such as paddles or even punching bags, along with printed training cards and educational information such as books or DVDs. You should use caution with the quantity of some of these as they can be expensive to stock up front.

Keep the Stream Flowing

You should remind your students regularly about the equipment and supplies you offer for sale. Remind them with a statement in class, post flyers at your school about the sale of equipment, send email notices once in a while to all of your students, and offer periodic sales and discounts. You could even offer coupons for a certain percentage off merchandise as a birthday present and encourage people to purchase gift certificates.

If you advertise your sale of martial arts equipment in the local media, such as the yellow pages, it may even result in an increase in enrollments by getting the name of your school in front of people.

Your students will need to purchase their martial arts equipment from someone; some company down the street or on the Internet. Why shouldn’t it be you? Your dojo store can provide the equipment and supplies that your students need, and provide you with a new and profitable source of revenue, an important part of your martial arts management plan.

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Online Business Management Lessons to be Learned

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Some mistakes new online business owners make and how to avoid them

New business owners, particularly an outsourcing company, carry with them misconceptions about the business that can be detrimental to their success. Those whove been there share some of these mistakes with us, and how to best avoid them:

Common Mistake #1: Treating your business as a sideline.

A lot of people get into a business “thinking they dont have to work” and that it “works on auto-pilot”. On the contrary, you need to put in your time, hard work, physical presence, and care to make your business grow. In the absence of a professional managing team, a business will always need the hands-on management of its owner. “That is why RemoteWorkmate require all our employees to log in at least 5 minutes before their shift to ensure their focus,” says John Paul Grant, the owner of an outsourcing company in Philippines.

Common Mistake #2: Neglecting to improve yourself.

Being a business owner means having good people skills and having the ability to manage employees. So take courses or study articles that teach about management and self-improvement; when you improve yourself, you improve your business.

Common Mistake #3: Focusing on money too much.

Applicants must also consider if they have proposed the right location, and if they can manage the business well. Others make the mistake of choosing businesses based on the price and affordability. Although financial gain is one of the reasons to have a business, it should not be the ONLY reason. Try to instigate to your employees never to work for money. Those who work with enthusiasm and passion are the most successful because “their passion for the product and business drives them to excel, then the money abundantly flows afterwards as a result of their passion and enthusiasm.”

Common Mistake #4: Charging personal expenses to the business.

Some new businesses make the mistake of charging their familys expenses like groceries and other utilities in the income of their business; this eats up their operational expenses and messes up their financial accounting. Get a salary from the business then deduct your personal expenses from there. What I mean is to work for your own company that will strike a good result in sales, get a client that will pay for your business.

Common Mistake #5: Having unrealistic expectations.

Although the failure rate in having an online business is relatively low, all business men agree that they cannot guarantee a 100% success rate because it depends in a variety of factors. Some business man expects their employees to do everything for them, which is a common misconception. While employees are there to support and guide the business, managing the business, and running it lies on your hand. You also need to manage your expectations. To prepare for the natural highs and lows of doing business, “You should have a passion for the business you are entering.” Study the market well and be prepared for the lows because there will be dips in your income. At the end of the day, your virtual staff or employees success actually depends on you.

Knowing what not to do helps you focus on what you need to do in order to succeed. Cheers to a great year ahead!

Who Should Enroll Into A Business Management College

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There can be a number of valid reasons for enrolling in an MBA / MMS / PGDM program. In the unstable commercial world we live in today, jobs are becoming harder to come by and many countries are witnessing huge unemployment rates and corporate cutbacks. With such a scenario at hand, wise students as well as professionals are turning to supplementary degrees in Management studies to safeguard their jobs or make an entry into the corporate world. A Management degree from a reputable Business Management College can be one of the most important tools in fast-tracking ones career to greater heights. Acquiring a Management Degree from one of the top B schools of the country can also guarantee a handsome pay package in the future.

While there is no ideal time to get a Management Degree, and nowadays professionals as well as undergraduates and fresh graduates enroll in MBA, MMS or PGDM programs, such a degree is not for everyone. For instance, such programs are of no use to students or entrants who lack a drive for a career in business management or are only focused on the academics aspect. On the other hand, such programs are ideal for aspirants that have a career plan, so to speak. These are people who know what career path they want to take and what designation they aspire to achieve. They are focused and driven toward their goal. There are some entrants that wish to attain a Management Degree so that they have the power to switch careers or change fields. These degrees are very useful for this lot as the programs impart relevant information and knowledge needed to leap into the new career sphere.

People who have corporate or professional experience are also ideal for Management programs. These are the students who have real-world experiences and enroll in the top B schools for Degree programs, so as to boost their rsums and secure their designations. Business management colleges welcome such entrants and nowadays you can find top tier professionals at high posts opting for MBA degrees, to acquire up-to-date knowledge of the field. Such programs are often used as a tool for advancement in the corporate or company structure.

In view of the fact that such programs are the need of the hour; an increasing number of people are opting for Management programs like MBA, MMS and PGDM from a top Business Management College in the country. Some of the popular cities for undertaking such studies are Mumbai, Nashik and Pune in the state of Maharashtra; therefore, if you are researching top B schools in the state, you can start your search with these destinations. You could also try finding published lists of the best MBA colleges in India online.