Procurement is often the bane of many projects and managers in most organizations. It is often a painful exercise that spans many months, involves cross-functional teams from IT, the business, Legal, and Finance. With the introduction of Agile into the IT group procurement poses new challenges. There are essentially three basic forms of procurement that can come into play for an Agile project:
- Procurement of professional services for an Agile project. This can involve outsourcing all or portions of the Agile software development effort to an external professional organization or the procurement of external professional services to augment internal Agile IT software development teams.
- Procurement of Agile Software Tools. Agile software tools can be team and product planning and management tools such as those from VersionOne or Rally Software which are distinctly different from tools used for planning and managing traditional projects.
- Procurement of a business solution by using an Agile procurement process. Agile procurement can be used in the context of procuring (rather than developing) either portion of a business solution or a complete business solution. Traditional procurement for business solution, in spite of all everyone’s best intentions, often results in the wrong the solution being procured or with an over-procurement (too large and expensive for the problem being solved), and with the total costs of ownership not being properly understood.
- Traditional procurement, like traditional project management, focuses on the process and establishing pre-defined deliverables with pre-defined target dates with the additive of pre-defined payment schedules. At a contractual level, success is often determined by whether or not there challenges to the process by disgruntled losing vendors or through lawsuits where the winning vendor did not deliver or the contracting organization did not pay what the vendor thought had been agreed.
In this course we will examine:
- The Traditional Procurement Process and the resulting contract terms
- How Traditional Procurement impedes a focus on Value
- The Agile Procurement Process and the resulting contracting changes
- Comparison of Traditional and Agile Procurement processes and contracts
- Procurement of professional services for an in-house Agile project – case study
- Procurement of Agile Software Tools – case study
- Procurement of a business solution by using an Agile procurement process – Case study
Professional Development Units (PDUs) – 14
- Lecture and case studies
Procurement professionals, project managers, and business analysts