Episode 48 | Vendor Challenges
The Big Themes:
- Contract management: Wayne and Bob discuss contract renewals and price hikes with a focus on SaaS agreements. There's an enduring need for a proactive approach and transparent communication with vendors. Metrics, scalability, and adaptability are touched upon as ways to assess value.
- AI washing: Some companies may exaggerate or misrepresent the extent of artificial intelligence integration in their products or services in what's known as "AI washing." Wayne and Bob advocate for transparency in AI-related claims. "You can't call every product an AI product, just because it does two calculations in a row."
- Strategic vendor partnerships: Wayne suggests moving away from transactional arrangements toward cultivating trust with a select few partners. It's critical to consider the vendor's business process, integrity, and forward-thinking approach when choosing partners. He urges CIOs to invest time in building partnerships, participating in user councils, and attending events that bring customers and vendors together.
The Big Quote: "The message to the CIO is, when you sign a SaaS contract, be very careful about what happens at the end of that contract. The best time to figure out what to do at the end of the contract is at the beginning, not as you get to the end."
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