Capture and Market the ROI of Your VMO | Info-Tech Research Group

All IT organizations are dependent on their vendors for technology products, services, and solutions to support critical business functions.
Measuring the impact of and establishing goals for the vendor management office (VMO) to maximize its effectiveness requires an objective and quantitative approach whenever possible.
Sharing the VMO’s impact internally is a balancing act between demonstrating value and self-promotion.

Our Advice

Critical Insight

The return on investment (ROI) calculation for your VMO must be customized. The ROI components selected must match your VMO ROI maturity, resources, and roadmap. There is no one-size-fits-all approach to calculating VMO ROI.
ROI contributions come from many areas and sources. To maximize the VMO’s ROI, look outside the traditional framework of savings and cost avoidance to vendor-facing interactions and the impact the VMO has on internal departments.

Impact and Result

Quantifying the contributions of the VMO takes the guess work out of whether the VMO is performing adequately.
Taking a comprehensive approach to measuring the value created by the VMO and the ROI associated with it will help the organization appreciate the importance of the VMO.
Establishing goals for the VMO with the help of the executives and key stakeholders ensures that the VMO is supporting the needs of the entire organization.

Capture and Market the ROI of Your VMO Research & Tools

Start here – read the Executive Brief

Read our concise Executive Brief to find out why you should calculate and market internally your VMO’s ROI, review Info-Tech’s methodology, and understand the ways we can support you in completing this project.

Capture and Market the ROI of the VMO – Executive Brief

1. Get organized

Begin the process by identifying your VMO’s ROI maturity level and which calculation components are most appropriate for your situation.

2. Establish baseline

Set measurement baselines and goals for the next measurement cycle.

3. Measure and monitor results

Measure the VMO's ROI and value created by the VMO’s efforts and the overall internal satisfaction with the VMO.

4. Report results

Report the results to key stakeholders and executives in a way that demonstrates the value added by the VMO to the entire organization.

Member Testimonials

After each Info-Tech experience, we ask our members to quantify the real-time savings, monetary impact, and project improvements our research helped them achieve. See our top member experiences for this blueprint and what our clients have to say.

8.0/10

Overall Impact

$28,085

Average $ Saved

10

Average Days Saved

Client

Experience

Impact

$ Saved

Days Saved

Testimonial

The Global Fund to Fight AIDS, Tuberculosis and Malaria

Guided Implementation

8/10

$28,085

10

Donna listening carefully and understood our maturity state before presenting her perspectives and thoughts on where we could leverage and take adv... Read More

About Info-Tech

Info-Tech Research Group is the world’s fastest-growing information technology research and advisory company, proudly serving over 30,000 IT professionals.

We produce unbiased and highly relevant research to help CIOs and IT leaders make strategic, timely, and well-informed decisions. We partner closely with IT teams to provide everything they need, from actionable tools to analyst guidance, ensuring they deliver measurable results for their organizations.

What Is a Blueprint?

A blueprint is designed to be a roadmap, containing a methodology and the tools and templates you need to solve your IT problems.

Each blueprint can be accompanied by a Guided Implementation that provides you access to our world-class analysts to help you get through the project.

Table of Contents

Need Extra Help?
Speak With An Analyst

Get the help you need in this 4-phase advisory process. You'll receive 7 touchpoints with our researchers, all included in your membership.

Guided Implementation 1: Get organized

Call 1: Review VMO ROI maturity level.
Call 2: Discuss measurement categories selected.

Guided Implementation 2: Establish baseline

Call 1: Review data sources and baseline tools.
Call 2: Discuss ROI goals.

Guided Implementation 3: Measure and monitor results

Call 1: Review tools and templates available for calculating and tracking ROI and value creation.

Guided Implementation 4: Report results

Call 1: Review measurement and reporting frequencies.
Call 2: Discuss the attributes of good reports.

Authors

Phil Bode

Steve Jeffery

Scott Bickley

Contributors

George Bordon, Director, Contracts at Spirit AeroSystems
Jason Epstein, Head of Procurement, SecureWorks, Inc.
Deepak Bansal, CPA, CISSP, COP, Enterprise Head of IT Procurement, Sourcing Advisory & Vendor Management (VMO), Envision Healthcare
Pat Campbell, CLU, CPCU, FLMI, Vice President of Strategic Sourcing, Nationwide Insurance (Retired)
Donald Hopkins, Interim Director of the Master of Information Systems & Master of Science in Logistics and Supply Chain Management Programs, Wright State University
8 anonymous company contributors

Search Code: 81991
Last Revised: May 1, 2019

TAGS:

Vendor Management Office, Return on investment, Measuring VMO impact, ROI calculation, VMO ROI, Calculating VMO ROI, VMO best practices, VMO lifecycle, ROI formula, VMO reports, VMO value, VMO impact, Creating a VMO, Video, Whiteboard, Whiteboard Series

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