Multi-Vendor Management Approaches - SI, SMI and SIAM

In continuation with the previous blog on Multi-Vendor Management Approaches, I would like to describe these approaches based on our understanding of how SIAM should be. I would reiterate that the way current models/approaches are designed, I do not see any significant differences between these models. Based on our research, myself and Rakesh have created our SIAM - Fluid Pump model. I would talk about it later as currently we are looking for publishing our model at a larger forum.

1. SI (System Integrator): This was the traditional approach whereby outsourcing was done to one or multiple suppliers and these suppliers were managed by the outsourcing organization themselves. There was minimal or no integration between the suppliers. Service Management existed in an ad-hoc fashion with each supplier having their own organization for service management. Matured organizations set up a Service Management Organization (SMO) to ensure some level of integration and manage the key operational service management processes (like incident, problem and change management) where interaction between multiple suppliers was required. From an organizational perspective the services provided by these suppliers predominantly lied in the operational layer of management. Some of the SIs eventually started playing the role of Service Integrator which was a precursor to SMI.

2. SMI (Service Management Integration): With the need to have a centralized service management and control on multiple vendors, one of the large suppliers started to play the role of a lead Supplier or lead Service Integrator and eventually the role of a lead Service Management Integrator. This approach is termed as SMI. In this case the overall strategic functions and some of the tactical functions are performed and managed by the organizations themselves. In most matured scenarios also all tactical functions (like managing overall service levels) are not performed by the lead service provider. But in maximum cases these have been limited to having a centralized service management tool and overall governance of operational processes. From an organizational perspective SMI lie in the operational and tactical layer of management.

3. SIAM Service Integration and Management: SIAM is an approach that drives service management from the strategic perspective. It provides greater control and flexibility to not only manage the suppliers but also the IT & business services. It is more like a mechanical control system. It creates a layer that establishes an effective communication, management, feedback and control between the business and suppliers. It ensures effective dissemination of organization's business direction and strategy across all suppliers. It provides the control that ensures governance, management and regulation of suppliers and business services. It offers the flexibility to simplify the transitions due to change of suppliers or due to change in business services, system and processes which may happen because of merges & acquisitions or demergers & spin-offs. It enables business oriented transformations across the suppliers and business services. From an organizational perspective SIAM spans across all the layers of management - operational, tactical and strategic.

This approach is applicable to the entire breadth of business and IT services that may be provided by multiple subsidiaries of business or suppliers of IT (internal IT or external suppliers) regardless of number of business or suppliers.