“Through 2019, EVERY dollar invested in innovation across a business will require an additional $7 in IT execution, which SVM leaders will have to manage,” said Claudio Da Rold, research vice president and distinguished analyst at Gartner.

Knowing the statistics on levels of investment, every business leader has a 7x greater reason to look more deeply into their IT operations and the vendors they choose! The question to ask is, “How do C-Level executives choose the right IT partners when knowing the cost to their organization is incredibly high?

How Do Executives Select the Right IT Vendors?

• When choosing the right vendors and suppliers, there are a few areas of focus:
  • Can the vendor handle the breadth and scope of infrastructure to handle the projects assigned?
    • Proper capabilities
    • Infrastructure in place
  • Does the vendor have a proven record of performance?
    • A History of achieving prior project deliverables
    • Recommendations of business leaders in similar industries

These points are a simple guide to assist leaders in determining the correct resources for their organization when a company directive is rolled out and a new IT resource needs to be chosen.

After Executives Select the right Vendors, Are Systems in Place to Manage Them?

A strong external IT resource will still need a focused system in place to manage their day-to-day impact on your business. However, one major problem in the IT industry is that company’s internal IT teams don’t have the time and, in most cases, the resources to manage their IT, Telecom, and VOIP systems at a micro-level. They are too busy managing the system-wide issues that arise daily and impact employees’ productivity on a ground level.

Often, IT teams leave secondary issues to handle a later time. The problem with these issues is that they often lead to costly expenditures for the organization. A short list of examples below:

• Products/services that are no longer needed by the organization due to a structural change in the business
• Billing discrepancies caused by disconnect from ground-level teams
• Small issues impacting individual locations as opposed to company-wide outages

C-Level executives need to understand the cost impact leaving these issues unresolved can cause their organization. A cost-effective strategy is to employ a third-party organization with the skills and ability to manage the above issues, so that internal resources can focus on “putting out the fires” that are an immediate need.

Find out more about our company and how we assist in managing both processes here.

The primary objective of financial reporting is to provide useful information for decision making. Without proper documentation of all business financial aspects including expenses and vendors, it can be difficult for any company to not only determine whether a supplier is meeting its quality standards, but also for investors to be able to make financial decisions regarding the value of the company.

Lack of transparency in financial reporting and vendor management financial information, in any industry, has implications for investor trust. Companies that understand the importance of transparency in financial reporting, are also well informed about the psychology of the investors. Complex and opaque vendor management and financial reports gives no idea about the true financial, vendor and expense risks involved in the company.

The financial reports must include:
• Understand-ability. The information must be readily understandable to users of the financial statements.
• Relevance. It must be relevant, accurate and current.
• Comparability. Ability to provide financial comparisons.

Without proper management it is difficult for investors to access required financial information about companies, such as price levels, market depth and audited financial reports to include supplier and vendor expenses, documents, agreements and contracts.

Businesses with effective financial reporting practices but lacking collateral are also more likely to receive credit. Lending institutions will have more information on which to base their decisions, reducing their need to require high levels of collateral. It is essential for investment and doing business that every business should have effective financial and vendor management systems in place.

For more information on how to implement a vendor management solution, schedule a free consultation or ask questions, contact LIMITLESS at 866-504-4050.