Research Paper: Vendor Management IT Management Process

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Vendor Management

IT management process under the Vendor management system is a recent trend used by various organizations. Many organizations are using this centralized program to control their staffing. According to research conducted on it services vendors, over 91% organizations are currently using the vendor management systems. This trend entails introducing it procurement process in organizations. However, the trend is facing numerous challenges because of the many resources required to adapt it. Evolution and introduction of VMS into corporations occurs because of the varying business environments experienced within the organizations. In recent decades when Vendor management programs took hold of vital business operations, the demand for it services increased. In this respect, VMS became a business approach that enhanced human resources by recruiting competent vendors in timely and effective procedure. Businesses structured VMS programs accordingly by integrating it procurement process.

The it process streamlined all business transactions and operation through a single system for purposes of competence. Organizations integrate new measures of it in procurement sector. Though it is an effective trend used to manage business processes especially when the economy turns sour, managers must take caution to sustain vendors and stakeholders. This paper identifies it procurement management process as a current trend in Vender Management in human resources and procurement management (Abramson & Paul, 2007).

Discussion:

Measurement, Assessment, Evaluation in it procurement process

Most organizations prefer adopting it procurement process for the purposes of having a reliable and legitimate way of analyzing and evaluating performance. This is an assessment technique and a measure aimed at improving both the external suppliers and internal procurement process. With this new trend, procurement managers intend to search for an objective way of evaluating and illustrating their contribution to the success of the various projects in the organization. The trend mainly emphasizes on supplier assessment, and this indicates that for the organization to record high-quality supplier productivity, there is a need for enhanced relationship.

External Relationships [ER] and Internal Relationships [IR]

The trend stresses on the significance of developing valuable working relations. The significance of such a relation is to develop a cross-functional nature of the it procurement process. This is between the organization and employees within the context of internal and external environment. The management creates it Procurement Performance Metric that assists in benchmarking the it Procurement Process. The management undertaking a project requires suitable performance parameter; however, most organizations lack effective metrics for their it procurement processes. Some of the performance metrics of significance to it procurement management are Efficiency metric, Effective metric, Suitable metrics, and Time conscious metrics

For effective performance of the current trend, managers should define the roles in the procurement procedure to create efficient Internal and External Relations. It procurement remains a cross-functional process amidst strong relation between various organizational participants. Within organizations that are customer-oriented, the organization as well as the employees must work hand in order to purchase, set up and utilize it products and services in the organization.

Collaboration and treaties with suppliers and other external stakeholders are significant in outsourcing and making syndicate plans. However, the organization faces a key challenge of how to structure and manage such complex relationships. Internally, organizations must develop and enhance efficient relations between the organizational structures, functions, principles, policies, and processes. Externally, the contractual projects must define the objectives and responsibilities between the participants (Abramson & Paul, 2007).

The form of collaboration is unrestricted, that is, there is no need of a formal reward in order to initiate collaboration. Proper job descriptions, processes and contracts are unnecessary in identifying the type of relationships. Managers must generate cultural and other techniques that create a favorable environment for a collaborative internal and external relationship. It is difficult to adopt it procurement in continuing organization processes. This is due to lack of required procurement process structures essential in reengineering the it Procurement Process.

There are several sub-processes comprised in the requirements evaluation and procurement stages. The new trend reduces both the procurement process and contractual time established for completion of various projects. The procurement process involves a linear series of activities, and the organizations use new it procurement process in evaluating and creating a compression approach that decreases that contractual cycle time by developing few sub-processes. In the adoption of a new technology, most organizations are likely to experience tremendous employees turn down (Carnall 2007). The trend adopted may overwhelm the employees in terms of the expertise used in operating the technology. The party must offer training to employees likely to use the trend. This leads to withdrawal by the employees not favored by the trend.

Either the organization may dismiss the employees, or employees may voluntarily turn down their tools. The organization desires retaining its employees because of their loyalty and effective productivity. However, it also requires growing and expanding its activities and adopting a new trend is one of the strategies that support development. Employees must therefore accept the strategies undertaken by the organization for its own welfare. The agendas undertaken by the management establishes a foundation for the introduction of the it procurement management in vendor management projects.

As the procurement of information resources becomes market-oriented, it procurement management becomes significant in strengthening internal processes. The future it proficient will require less expertise skills since external vendors will provide the necessary skills. The skills that are necessary for future it organizations and others are the marketplace skills found in it procurement organizations (Cohen et al., 2006). Currently, various developments experienced in organizations reveal the significance of new trends adopted by organizations. In addition, the following elements of management contribute to improving the efficiency of organizational activities.

1. The management process strategy

2. The management decision support system

3. Human resource behavioral approach

4. Effective competitive advantage

The four elements match each other and provide a significant foundation for vendor management system. The management process strategy highlights on the efficiency of management. This is by pinpointing management roles in the organization and then explaining every role in detail. There is a general accord concerning the purpose of planning, organizing and regulating in the organization. A major belief is that by evaluating management alongside functional principles, it is easier to construct a framework that entails current management activities. Thus, the management team plays the role of coordinating numerous related functions, which are neither arbitrary nor severely predetermined (Barzelay, 2007).

They are, however, vibrant as the process develops. Another belief is that intellectual evaluation of management roles can derive management principles. By dividing the roles of managers into functional elements, it is essential to extract functions based on the management principles. Managers design management functions to enhance operational effectiveness. Regardless of hierarchical level, managers must perform all management functions (Cohen et al., 2010). Eventually, managers develop management values that establish relations between human and other resources.

An established philosophy assists the manager enhance the relationship within the firm. The management decision support system strategy assists managers in making quality decisions significant in solving operations and production problems. The decision support system emphasizes on giving management with significant information. Managers focus in defining objectives and constrictions, and to generate evaluation models in solving intricate problems affecting organizations. In decision support system, managers focus in maximizing profits and search of a functional model of the entire organizational system. In achieving managerial objectives, managers use various operations research approaches, such as programming services and other it services. In addition to increased use of functional models, information systems, decision support systems, computer services are another trend used by the managers (Abramson & Paul, 2007).

Organizations are also using artificial intelligence in solving management problems. The behavioral strategy used by human resources is significant because management use available workforce carrying out business operations. Effective management team acknowledges the significance of human resource management in improving human factors like, motivation, leadership qualities and teamwork. In this regard, some managers may stress on interpersonal behavior that emphasizes the significance of motivating employees. The key contributions made by managers in improving the performance of management include:

1. The Implementation of ideologies and explanations regarding individual and team behavior in the company

2. The practical testing of the ideologies systematically in many diverse tentative and field settings, and

3. The foundation of authentic managerial strategies and decisions for functions based on the theoretical and systematic structures

Effective competitive advantage engenders from efficient management approaches. As Michael porter asserts, strategy entails ensuring fitness in all the business activities. The efficiency of a strategy relies on the effectiveness of the management and the approaches used in integrating them. When managers formulate wrong strategies, there is little sustainability in the management. In this perception, successful organizations must enhance and line up the numerous processes ongoing to their planned vision. Strategic positioning in this trend entails:

1. Generating an exceptional and significant position

2. Formulating trade-offs compared to rivals

3. Ensuring company activities are fit.

Project managers must know their significance in organizations and the roles they play in various strategic positions. For instance,… [END OF PREVIEW]

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Vendor Management IT Management Process.  (2013, June 8).  Retrieved March 24, 2019, from https://www.essaytown.com/subjects/paper/vendor-management-process/8495179

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