{"id":1417,"date":"2012-06-23T18:10:12","date_gmt":"2012-06-23T18:10:12","guid":{"rendered":"http:\/\/www.renando.com\/blog\/?p=1417"},"modified":"2021-01-15T22:24:06","modified_gmt":"2021-01-15T22:24:06","slug":"seven-aspects-of-alignment-in-digital-supplychains-when-your-client-is-your-supplier","status":"publish","type":"post","link":"https:\/\/sidewaysthoughts.com\/blog\/2012\/06\/seven-aspects-of-alignment-in-digital-supplychains-when-your-client-is-your-supplier\/","title":{"rendered":"Seven aspects of alignment in digital supply chains: When your client is your supplier"},"content":{"rendered":"

What we do in this digital delivery gig is complex. \u00a0It is not enough for the client or supplier to be “right”. \u00a0Seven areas in particular increase the challenges of getting projects over the line. \u00a0If we get our context right and address the details, it can make for improved phone conversations.<\/p>\n

\"Redial\"<\/p>\n

When your client is your supplier \u2013 a hypothetical case study<\/h2>\n

I pick up the phone and dial my supplier. Things are not good. Once again, my supplier has failed to provide deliverables critical to getting my client\u2019s release into production.\u00a0 Their content is late, the data they provided is incorrect and requires rework, they released code at midnight last night that made yesterday\u2019s development irrelevant, and the pre-production environment they set up for my client\u2019s approval has fallen over again.<\/p>\n

My supplier’s voice on the other end is both apologetic and defensive.\u00a0 My supplier and I discuss the complexity of the technology, tight delivery timeframes, and staff shortages.\u00a0 I stress the importance of the delivery and the investment in client dollars riding on this release.\u00a0 My supplier makes a few promises as I set the phone down to prepare for the uncomfortable call to my client to communicate the resulting delays.<\/p>\n

I pick up the phone and hit redial to call my client – same person, different context.\u00a0 I break the news that we will not meet the deadline.\u00a0 The response is not\u00a0pleasant.\u00a0 The client does not want to hear about late deliveries from my supplier, as I am accountable for my supply chain.\u00a0 The only acceptable response is an expectation of delivery and how much we will invest to get the delivery over the line.<\/p>\n

I set the phone down again and ponder the dichotomy of my situation as I plan the weekend\u2019s work.<\/p>\n

Seven aspects of alignment in the digital supply chain<\/h2>\n

\"Supply-Chain\"<\/p>\n

The exaggerated, seemingly schizophrenic situation above demonstrates the complexity of an integrated digital supply chain.<\/p>\n

When we think supply chain, discussions typically focus on linear retail or manufacturing situations.\u00a0 Companies such as Apple<\/a>, Toyota<\/a>, Coke<\/a>, Dell<\/a>, and Wall-mart<\/a>\u00a0attribute their success to getting external product into their doors and distributed back out to consumers.<\/p>\n

Khaista & Zualkernan<\/a> highlight the success of IT systems in particular as being based on alignment in key areas of communication, competency, governance, partnership, scope, architecture, and skills. Success is also dependent upon a common approach towards seven areas:<\/p>\n

1. Assets<\/strong><\/h2>\n

\"1_Assets-400x187\"<\/p>\n

Digital suppliers rely on client deliverables such as project requirements, business rules, content, approvals, and creative assets.\u00a0 These come from a range of client business units such as marketing, HR, operations, or finance.<\/p>\n

2. Data<\/strong><\/h3>\n

\"02_Data-400x149\"<\/p>\n

Data is distinct from other assets as it forms the assumptions upon which transactional digital solutions are based.\u00a0 The interface and business logic is based upon expected product pricing, vouchers, coupons, discounts, event schedules, plans, and rates.\u00a0 These are all subject to change at the last minute before launch in highly competitive markets.<\/p>\n

3. Environments<\/strong><\/h3>\n

\"3_Environments-400x120\"<\/p>\n

Prior to reaching the public, software passes through development, staging, user acceptance testing (UAT), and pre-production environments before hitting the real-world production environment. Development and staging environments are typically maintained by the supplier, UAT and beyond by the client.\u00a0 These environments need to be consistent to ensure testing is performed in as close to production scenarios as possible and that issues raised are not due to the environment-only.<\/p>\n

4. Mixed teams<\/strong><\/h3>\n

\"4_Mixed-Teams-400x219\"<\/p>\n

Project management on each side are responsible for resources on the other.\u00a0 Each team delivers to the other, with added risk of politics and protectionism inherent to in-group status.<\/p>\n

5. Shared procedures and policies<\/strong><\/h3>\n

\"5_Procedures-400x165\"<\/p>\n

Integrated supply chains require common procedures and policies around areas such as source code management, coding standards, package deployments, training, project management methodologies, and accounting practices. Situations devolve into chaos without a common language and way of doing things.<\/p>\n

6. Shifting technology<\/strong><\/h3>\n

\"6_Technologies-400x398\"<\/p>\n

The only safe assumption in digital projects is that there will be change.\u00a0 A 12-month iPhone project can require the complete rebuild of core software engines to accommodate new iOS operating systems<\/a>.\u00a0 Solutions and strategies built on the Facebook platform can be impacted \u00a0by changes by Facebook<\/a>. Core software platforms may suddenly disappear weeks before launch, such as the recent demise of content management system Umbraco 5<\/a>.<\/p>\n

7. Culture and values<\/strong><\/h3>\n

\"7_Culture-400x183\"<\/p>\n

The points above require tight integration between organisations, creating what can be referred to as a shadow culture at the intersection points<\/a>.\u00a0 Culture<\/a> is the leading cause of failure in merger or acquisitions<\/a>, and similar could be said for enterprise supply chain relationships. Unless there is sufficient alignment or intentional mitigation where alignment is lacking, the relationship is at risk.<\/p>\n

Alignment versus conformance: A matter of context<\/h2>\n

\"Context-400x350\"<\/p>\n

How these are managed depends upon the context of your relationship.\u00a0 The realities of the supplier-client context are necessary to maintain accountability:<\/p>\n