Maximizing Economic and Strategic Value in the Technology Supply Chain results in many positive effects. Below are some of our Clients' Favorites:
Many clients currently sit on massive unquantified risk in their technology supply chain, whether it be for poorly negotiated contractual agreements, or for unrealized future liabilities. A properly structured and negotiated contract with the right balance of business protection and organizational flexibility can prevent much of the risk associated with technology agreements. Poorly conceived commercial terms also often strike at the most inopportune times, so it is critical to ensure the commercial arrangement and the contractual agreement are synthesized to mitigate future risk.
If not careful, clients can unwittingly reduce the quality of their technology deployments due to forced financial pressures. Evaluating the architecture and technology required to solve the business challenge often results in significant solution changes, leading to significant cost savings and strategic improvements, but this must be done with no diminution of business value at worst, and with improved business value at best. When technology solutions are aligned to the needs of the business, the quality of the solution in invariably improved.
Clients that fully understand the grants and usage rights of their agreements, and the financial and business ramifications to those investments will have the ability to develop a better governance process, and manage more long term success. Clear and concise contract language will also aid in proactively managing key contractual tasks, issues, alerts, notices, milestones, obligtions, reporting requirements and a host of other elements in a way that leads to improved governance and compliance, resulting in a sustainable model for long term success.
A full 97% of the contracts we analyze for our clients do not meet all the requirements for economic or strategic sustainability. An improved contracting process will help clients create contractual agreements that not only ensure long term economic viability, but also easily become governing instruments to ensure key performance indicators are known, service levels are monitored and adhered to, and strategic supplier performance is managed appropriately.