This IDC study describes the IDC vendor and sourcing management (VSM) maturity model framework, which identifies maturity stages, dimensions, sub-dimensions, and actions required to effectively transform buyer organizations. The vendor and supplier relationship models are transforming from a short-term transactional model ("buy, build, and run systems") to a longer-term relational model ("acquire capability, integrate, and manage supplier") in which ongoing delivery, integration, and performance management take precedence over pricing. An ever-evolving and changing vendor and supplier ecosystem adds significant vendor and supplier management and delivery challenges with the addition of 3rd Platform technologies — big data/analytics, mobility, cloud, and social media — to the existing portfolio of vendors and suppliers managed by buyer organizations.
IDC's VSM MaturityScape enables organizations to develop a data-driven actionable plan to support this journey. The model outlines step-by-step actions that organizations can take to improve their maturity and incrementally bring change at a pace that is acceptable to all stakeholders. Organizations can assess their current maturity and use the baseline to define short-term and long-term goals and prioritize plans for improvement.
"The VSM maturity model outlines a journey that an organization can undertake to not only improve current performance attributes like pricing, quality, and timeliness but also develop capabilities to work with existing and new 3rd Platform suppliers to build and implement transformative and innovative solutions and bring sustained competitive advantage," says Rajeev Agarwal, research vice president, IT Executive Advisory Program.
Ron Babin, adjunct research advisor, says, "The relationship with vendors and service providers will only become more complex as organizations move to 3rd Platform services. Organizations that understand their current vendor and sourcing management maturity will be well positioned to develop areas of strength and to fortify areas that are not yet mature. A mature, consistent enterprise-wide VSM capability will be a prerequisite to deliver competitive differentiation and speed to delivery."