Lec 9 Flashcards
Vendor selection process
Vendor selection process:
- Create a request for a proposal that includes the project specification
- Gather propal by vendors that includes self assessment of degree of fit between solution and project specification
- Verify degree of fit claimed by top seven vendors
- Create a vendor assessment matrices for the last three
Vendor selection 3 criteria’s
Vendor selection 3 criteria’s:
- Scalability: handle growing amount of demands
- Robustness: system doesn’t break easily
- Workflow management: be able to detect delays, bottleneck and wastes in the process
Service level agreement
Service level agreement defines the level of service you expect from a vendor. Metrics and remedies issued. Eg response time must be 1 second or lower, if not the cloud service provider has to pay 2000 euros per minute.
Why use service level agreements
You use service level agreements for:
Hardliners: sla should include painful penalties, assure delivering the schedule and quality
Soft cooperation: use sla only for eliminating ambiguity (be collaborative)
Payment structure for vendors from hardliners and soft coöperators POV
Payment from hardliners POV:
Advocate front loading at the vendor contract, discount price at beginning and then gradually increase paymentZ
Soft cooperators have fair and profitable contact for both
Service delivery mode: service types
Software as a service: gmail, office365.
Platform as a service: django for python web, runtime environment as a service ( Python)
Infrastructure as a service: operating system as a service (windows)
Hardware as a service (x86)
Traditional approach
Future of partnership
Future is about virtual integration. Integration = gaining ownership or increased control over a firm in the supply chains
Horizontal and vertical integration
Horizontal integration = firms competitors
Vertical integration = forward integration: firms distributors or retailers
Backward integration: firms suppliers
Virtual integration
Virtual integration is using technology to coordinate activities across firms in a supply gain to achieve new levels of efficiency and productivity
Virtual integration has facilitated global sourcing: a supply chain beyond geopolitical boundaries
How to influence inter-organisational behaviour
How to influence inter-organisational behaviour:
- Formal controls: Written contractual mechanisms
- Relational governance: unwritten work based mechanisms such as trust and commitment
Sla’s are categorised under formal controls. It should include elements related to;
Foundation
Change
Governance
Formal contact foundation (what to include in an SlA)
Formal contact: foundation
Service level objectives: expectations at end of contact
Process ownership plan: roles and responsibilities
Service level contents: key business measurements and targets
Formal contract: change (what to include in an sla)
Formal contact change:
Future demand management plan: process for resolving unforseeable demand
Anticipated change plan; processes for foreseeable contingencies
Innovation plan: new innovative with incentives
Feedback plan: adjustments in contracts
Formal contract: governance
Formal contract governance:
Communication plan: communication policy and reporting structure
Measurement charter: what is to be measured
Conflict arbitration charter: parameters for involving 3rd party
Enforcement plan: termination conditons, exit responsibilities
Relational governance
Relational governance into 3:
Relational strength : solidarity, info and flexibility
Harmonious conflict resolution: achievining mutually satisfying resolutions of conflicts
Mutual dependance: benefits greater together
Trust and commitment
Trust = one party’s beleid that requirements will be fulfilled through future actions undertaken by another party
Commitment: durability, input and consistency
