IT Vendor Management March, 2015 Peter Baskette Pratike Patel

Vision for IT Procurement and Vendor Management Establish a University-wide set of practices and policies that provides useful guidance and tools for the procurement and management of IT services and products Objectives Guiding Principles Key Performance Indicators Establish University-wide process that defines uniform best practices and procedures for IT to engage with its customers and end users for complex IT solutions Adopt lifecycle approach to IT procurement and vendor management Vendor selection and contract negotiation Centralize on single contract management system (Novatus) Ongoing vendor management and relationship management Establish a platform for simple, efficient commodity IT procurement (HCOM or other) Promote transparency for end users and for IT departments Collaborate across and within IT departments Integrate with other key stakeholders (Strategic Procurement and OGC) Leverage economies of scale and avoid duplication of effort Tie collected information and defined procedures to actionable business processes KPIs for Objective #2: 2.A. -- Frequency of use of approved-legal clauses for all HRCI contracts. -- Office of General Council and CISO or CIO sign off of all HRCI contracts -- Office of General Council and CISO or CIO sign off of all contracts with data-stored in the cloud 2.B. -- Ability to report on disposition of contracts based on key attributes -- Ability to report on number of agreements that were renegotiated to take advantage of economies of scale. 2.C. -- All vendors with $X or identified as strategic have a defined CIO-Council strategy KPIs for Objectives 1 & 3 TBD.

Initial Focus: Contract Repository Goals: Access: Enable Harvard’s IT community to easily find and take advantage of existing contracts (leverage MSAs, bulk discounts, etc.) Standards: Standardize best practices for contracts, including consistent, appropriate Ts & Cs, regular data elements, etc. Compliance: Ensure that third parties handling Harvard HRCI are appropriately tracked and managed Unlike Angie’s List approach, this effort is contract-centric, not vendor-centric What: Single centralized contracts management system Practical step to mitigate risk Foundational information for other objectives Approach: Start with collecting contracts for the repository Initial phase scoped for contracts with 1) HRCI data or 2) a dollar threshold Second phase expands scope to include broader criteria for contracts in repository

Details for initial contract management objective Validate single centralized system (Novatus); develop practices/processes around its use Purpose: Management software to help manage, negotiate, and administer contractual agreements with customers, partners, suppliers Benefits: Reduce costs, minimize risk, maintain compliance and make your processes more efficient and effective Create a Steering Committee Partner with Strategic Procurement Liaise with OGC Overall governance of initiative Define required information* Prioritize data collection to minimize risk Contracts with administrative units for vendor systems housing HRCI data Contracts associated with vendors with highest spend Anticipated Resources Collection phase: 2 FTE for ~6 months (Covering the Schools + CA/Campus Services + Library) Contract entry: 2 FTE @ 6 contracts/day – length of contract TBD * Collected information and defined procedures should be tied actionable business processes

Proposed 2015 timeline for contract management objective March – June Launch steering committee Develop specifications/attributes for Novatus system Collect HRCI and $ threshold contracts July – September 60% of HRCI-related contracts and vendors representing top 60% of total IT spend in Novatus Develop reproducible business processes that are based on system attributes How/when do HRCI agreements get updated October – November 80% of HRCI-related contracts and vendors representing top 80% of total IT spend in Novatus December Review and update specifications/attributes Expand scope of what goes into repository Prioritize next phases/objectives

What we need from you…. General sponsorship and support Help with initial collecting of the contracts We will put together a recommendation for a steering committee and working group

Appendix

Summary of Harvard’s IT Harvard’s annual IT purchases total ~$100M: $74.3M in IT products and services $17.4M in IT consulting services $9.8M in Telecom products and services Harvard purchases products and services from 300+ vendors 60% of Harvard’s IT dollars are spent with 20 vendors Additional details follow

Where do we spend the majority of our technology dollars? Avg. spend = $74.3M per year Telecom Avg. spend = $9.8M per year Consulting Avg. spend = $17.4M per year

Who are our top 20 IT vendors?

More Detail What do we spend on IT Products and Services?

More Detail What do we spend on IT Consulting Services?

More Detail What do we spend on Telecom Products & Services?