The creation of the Strategic Supplier Relationship
Group (SSRG), an overarching organisation set up by 10 of the UK's
most authoritative independent user groups, could mark a new phase
in the maturity of the IT industry.
The SSRG aims to present a common user voice to suppliers on issues
such as licensing, product quality, patch management and dispute
resolution.
The group's founders believe that a two-way process of education,
advice and troubleshooting can allow user organisations and IT
suppliers to create genuine partnerships that maximise business
value from IT investments.
The SSRG will be funded by its members and will be independent of
suppliers, with each user group communicating discussions to its
own members.
The climate around corporate IT usage has changed dramatically
since the run up to Y2K and the dotcom boom.
IT departments have come under pressure to produce business value
from their investments and are under increasing scrutiny as company
boards recognise their dependence on IT and their personal
liabilities for IT-related regulatory compliance.
The supplier community has been slow to acknowledge this new world,
said Ray Titcombe, chairman of the IBM Computer Users Association
and chairman of the SSRG. "Most suppliers talk about partnerships,
but too often these have ended up with winners and losers, rather
than creating a win-win situation. Both sides need to go forward
and function together properly."
A turning point in user/supplier relationships and the catalyst for
the formation of the SSRG was the shift in Microsoft's licensing
strategy in 2001.
It was not so much what Microsoft did - moving users to a
subscription scheme - but the way it was done; giving users just a
few months' notice of the changes. Microsoft had not appreciated
the budgetary timescales and environments within which corporate
users operated, and that in many cases a sudden switch in terms was
simply not possible.
In response, the Institute for the Management of Information
Systems, the British Computer Society Elite Group and the Society
for IT Management wrote a letter of concern to Microsoft, as did
the Corporate IT Forum. This was backed by a Computer Weekly
campaign which resulted in a worldwide stay of execution for the
old licensing regime.
The need for an umbrella group of users was then advanced as a way
of tackling similar problems and ensuring suppliers understood the
full ramifications of their decisions.
Computer Weekly's involvement started in April 2001 when it hosted
a roundtable attended by 22 leaders from 15 user groups to explore
ways of leveraging the groups' influence. That meeting proved to be
the catalyst for the creation of the SSRG.
The SSRG hopes to build on more recent developments to improve
user/supplier relationships. Peter Gershon, the former head of the
Office of Government Commerce, has worked with supplier body
Intellect to produce a code of best practice.
Last October the Business Application Software Developers
Association announced a code of practice to guarantee high
standards for software products. More than 100 suppliers, including
Microsoft and Sage, have signed up to the code.
Other moves to encourage greater professionalism in IT are being
generated by the British Computer Society and the IT security user
community.
Gestation of the SSRG has been a slow process, but when it is
formally launched on 20 April the body will bring benefits to
corporate IT users and to suppliers.
Margaret Smith, chief executive of CIO-Connect, which is not part
of the SSRG, said, "CIO-Connect and its members are already trying
to positively influence suppliers. However, a greater body of
people with a diverse range of interests handling this relationship
can only be a step in the right direction."
SSRG members
British Computer Society Elite Group
Charities Consortium IT Directors Group
Charity IT Resources Alliance
Chartered Institute of Arbitrators
Computer Weekly 500 Club
IBM Computer Users' Association
Institute for the Management of Information Systems
Society for IT Management
The Corporate IT Forum
UK Oracle User Group
IBM says...
"IBM's aim is to bring together the best insight, expertise and
IT to help clients transform their businesses. Consultation with
industry stakeholders is central to that goal. IBM recognises the
value of meaningful dialogue with its clients and the creation of
the SSRG heralds a new era in this ongoing relationship."
Brendan Dineen, marketing director, IBM
UK
Oracle says...
"I welcome the arrival of the Strategic Supplier Relationship
Group, as it will provide a forum for frank and constructive
industry debate. Closer collaboration between customers and their
suppliers is a crucial factor in ensuring the long-term success of
IT projects."
Ian Smith, senior vice-president, Oracle and managing
director, Oracle, UK, Ireland and South Africa
Sun says...
"There was a definite need for change in the relationship
between suppliers and user groups. It is encouraging to see the
formation of the SSRG, which will promote the very best working
practices to ensure that users are gaining the most from their IT
investments."
Trudy Norris Grey, vice-president and managing director,
Sun Microsystems UK
Microsoft says...
"We welcome the news of the establishment of the SSRG. Microsoft
has constructive relationships with a number of the group's
founding organisations, and engages in ongoing dialogue with them
on many issues of importance to our customers and the general
health of the IT industry.
"The formation of the SSRG will enable Microsoft and our
partners to engage on a broader range of issues affecting British
businesses from all sectors in a constructive environment. We look
forward to working more closely with the forum and its
members."
Alistair Baker, managing director Microsoft UK and
vice-president, Microsoft EMEA
"On behalf of the IBM Computer Users' Association, we are very
pleased to be involved with the Strategic Supplier Relationship
Group. We see it as an excellent opportunity for our members with
multiple supplier installations to have greater representation in
the IT supplier world."
Ray Titcombe, chairman, IBM Computer Users'
Association
"The UK Oracle User Group is firmly committed to the belief that
its members, Oracle and third parties form one economy whose
success or otherwise is shared by all. Via the SSRG, we see the
opportunity to bring that thinking to the overall IT space for the
benefit of companies by highlighting the dependency of all players
on the successful exploitation of IT in business."
Ronan Miles, chairman, UK Oracle User Group
"Elite is strongly committed to the creation of an open and
constructive relationship between IT purchasers and IT suppliers,
which the SSRG will facilitate."
David Rippon, treasurer, SSRG, and past chairman, BCS
Elite
"The Charities Consortium IT Directors Group is delighted to be an
active member of the SSRG. Our members, IT directors of registered
charities, have a strong interest in improving strategic
communication with technology suppliers. We see John Rthe SSRG as a
means of achieving this - and good deals for charities."
David Clayden, chairman, Charities Consortium IT Directors
Group and director of strategic information, the Salvation
Arm