Introduction: early orchestration, the key to the digital symphony
Picture a company as a great orchestra about to play a symphony of digital transformation. The opening of this symphony is often written in the minds of executives, with a business plan serving as the score. But successful harmony rests not only on the instruments (hardware, software, cloud, services) but also on the performers (the suppliers) and, above all, on the moment when the conductor (the contracts manager) takes charge. The common mistake is to let the conductor tune the instruments once the melody has already started: a dissonance that damages the work as a whole.
I. The premature score: the trap of late contracting
The melodic misstep: the contracts manager in the wings
According to a Gartner study (« Gartner Predicts 2019: IT Services », 2018), 61% of digital transformation projects run into difficulty because contractual aspects are taken into account too late. Bringing the contracts manager in only after the business plan has been drawn up and the project designed is like asking the conductor to lead a symphony without having rehearsed it.
Out-of-tune chords: the example of underestimated costs
The NHS digital transformation programme in the United Kingdom is a stark example: according to the National Audit Office (« The National Programme for IT in the NHS », 2011), costs that were initially underestimated tripled, partly because the contractual and financial implications had not been anticipated well enough.
II. Preparing the orchestra: embedding the contract strategy
The first note: the contractually integrated RFP/RFI
An RFP or RFI is the strategic moment to raise the contractual question, Deloitte states in its report (« Global Chief Procurement Officer Survey », 2018). It calls for a precise definition of requirements and for suitable contract governance models.
Harmonising practices: examples from cloud and services
Flexera’s « RightScale 2019 State of the Cloud Report » highlights how giants such as Microsoft Azure and Amazon Web Services align their contractual practices with clients’ specific needs from the very first agreements of the collaboration.
III. The symphony in action: the contracts manager’s role
The interlude: the importance of early expertise
Involving a consultancy specialising in contract strategy such as Prime Conseil from the outset means securing an orchestration without a false note, recommends the Boston Consulting Group (« Driving Digital and Transformation from the Top », 2019).
The crescendo: financial architecture and contractual objectives
Planning the financial architecture in advance, taking contractual aspects into account, is crucial, McKinsey stresses in its report (« How to succeed in your digital transformation », 2017), especially for companies operating internationally.
Conclusion: a standing ovation for an anticipated contract strategy
A digital transformation without an anticipated contract strategy is a little like an orchestra without a maestro: the musicians, however talented, risk each playing their own tune. The early expertise of consultancies such as Prime Conseil is therefore essential to the success of this performance. When the contract strategy sounds out from the opening bars, the company can hope for a standing ovation at the close of its great digital symphony.