9. IT contracts

Question 1

Contract structure

Answer 1

• Service Level Agreement (SLA)
• Use SLA for what?
• Payment

Question 2

Service delivery models

Answer 2

• Software as a service (SaaS)
• Platform as a service (PaaS)
• Infrastructure as a service (IaaS)
• Traditional approach

Question 3

Vendor selection process

Answer 3

1. Create a request for proposal (RPF)
2. Gather proposal by vendors that includes a self-assessment of the degree of fit between their solution and project specification.
3. Verify the degree of fit.
4. Create a Vendor Assessment Matrix

Question 4

Criteria for vendor selection

Answer 4

• Scalability
• Robustness
• Workflow management

Question 5

Factors that keep talented employees

Answer 5

1. Put a group of superstars together

2. Surround superstars with less-able employees

Question 6

How to influence inter-organizational behavior?

Answer 6

• Enforcement of obligations, promises, and expectations via:
  - Formal controls
  - Relational governance

Question 7

A formal contract should include elements related to

Answer 7

• Foundation
  - Service level objectives
  - Process ownership plan
  - Service level contents
• Change
  - Future demand management plan
  - Innovation plan
  - Feedback plan
• Governance
  - Communication plan
  - Measurement charter
  - Conflict arbitration charter
  - Enforcement plan

Question 8

Relational governance

Answer 8

• Relational strength
  - Solidarity
  - Information exchange
  - Flexibility
• Harmonious conflict resolution
• Mutual dependence

Question 9

Trust

Answer 9

One parties believe that its requirements will be fulfilled through future actions undertaken by the other party.

Question 10

Commitment

Answer 10

• Durability: a desire to continue a relationship
• Input: a willingness to investment of capital and effort
• Consistency: a confidence in the stability of the relationship.