Governance Transformation: How to evolve your vendor governance capabilities for the future digital ecosystem

October, 2016


An increasing focus on business outcomes and transformation initiatives are presenting significant challenges to traditional governance structures. Vendor management staff must adopt a more holistic, strategic perspective, new skills, and a greater understanding of end-to-end multi-provider service processes. Today’s traditional governance practices are inadequate to manage the ecosystem of vendor and business relationships in the new digital enterprise. Therefore, governance transformation is imperative. Technology and governance as-a-service can be used as a force multiplier to accelerate enabling the new capabilities and maturity required to enable governance transformation.

Digital business initiatives are growing increasingly common. Only a small percentage of organizations are able to “go digital” or “transform” without strong collaboration from new and traditional vendors.

In the last few years, organizations have been managing vendors using traditional practices that, for the most part, have worked in focused on delivering services to clients under old-fashioned commercial models. As many organizations begin to embark on business transformation initiatives, such as digital and pay-as-you-go IT, they must change the way they manage and govern their vendor ecosystems to realize the value of the future digital enterprise and the business, financial and  operational benefits associated with it.

Transformation initiatives are leading to a shift in the way governance is being performed, which requires organizations to ask three fundamental questions:

• What are the challenges and driving forces of governance transformation?
• What about vendor governance is changing?
• How do you enable Governance Transformation?

The purpose of this paper is to answer these questions.