Procuring digital products and services, our lessons so far: what needs buying
Procuring digital products and services, our lessons so far: what needs buying
Hi, I am Stacia Copple. I am a digital procurement specialist. I also love communities of practice (I’ll blog about that another time).
I’ve worked with many well experienced IT procurement specialists, some who think buying Digital Data and Technology (DDaT) is the same as buying IT. There are some similarities but equally there are differences.
DDaT is an emerging category. I want to explain to you why by listing the main products and services that I have purchased and contract managed for digital delivery teams and how these are different from IT.
As procurement professionals it is our job to support organisations who are moving to digital. ‘Going digital’ means different things to different organisations. One thing is the same though and that is delivery. I’ve learnt that to be successful in both procurement and digital you have to be part of the multidisciplinary delivery. This means knowing about both areas: the procurement rules and processes and agile ways of working readily used in digital. More importantly when to challenge procurement processes and when and how to use agile ways of working in commercial activities.
I have yet to see an accepted spend category focusing on DDaT. The adoption of digital strengthens the case for acknowledging this emerging category. The DDaT category isn't going to be developed over night but for me I think there are 5 main areas within DDaT procurement - at least within the public sector.
These are:
1. Digital teams need infrastructure
Digital teams need hardware and / or commoditised off-the-shelf products and related services. Over the years I have procured: systems integration, data migration, web ops, ongoing technical support and maintenance.
2. Building a digital service requires resources and expertise
Sometimes both of these can be provided internally. Sometimes the digital team needs this to be provided from outside the organisation.
When this is the case digital teams will procure specific outcomes. These are often aligned to the Agile Delivery methodology of:
Discovery
Alpha
Beta, and
Live.
A supplier may deliver in part with other suppliers or in whole
3. We need a supplier to fill a gap
Some organisations have an established DDaT team. Some organisations may not have the full complement. They may be lacking one particular role or specialism. These will need to be procured and managed. You will need a supplier to help fill this gap.
Examples include:
Delivery Manager
Developer
Service Manager
Research
Technical Architect.
4. Cloud solutions
Within the public sector the three most common cloud solutions I’ve procured are:
Cloud hosting: a platform or infrastructure for processing and storing data, running software or networking. For example, content delivery networks or load balancing services
Cloud software: applications that are accessed over the internet and hosted in the Cloud - such as accounting tools or customer service management software
Cloud support: services to help set up and maintain existing cloud software or hosting services or perhaps migration services or ongoing support
5. We aren't ready for the Cloud
Finally an organisation will need physical space for data hosting. This is because some applications might not be able to transition to Cloud in the short-term, or are too expensive to switch to Cloud Hosting.
The rise of the DDaT category
So, for me, the Digital Data and Technology category needs to include:
Technology products and services
Digital outcomes
Digital specialists
Cloud solutions
Hosting solutions
I understand buying DDaT is much more detailed and wider than these 5 areas. This is the first step in creating a DDaT category - acknowledging these are the prime categories.
I look forward to sharing more about the sub-categories that sit beneath and exploring how specific areas - market engagement, procurement, contract management, policy and legal - work within each area of the emerging DDaT category.
If you are interested to know more about what we are doing to create a Digital Data and Technology category or if you would like to know more about procuring digital please get in contact with us: hello@curshaw.com
