If your organization is unable to set up a program for identifying and resolving contractual issues even before they arise, then you will almost certainly make a bad decision that will end up negatively impacting on your company. This article will go over some of the general principles and issues that could possibly be considered as part of a business IT project.

There needs to be agreement about dispute resolution. Of course you are hoping that your IT service provider will not give you causes to run after them or to doubt their professionalism but nevertheless you need to be aware that these things happen all the time.

One method can be to set up contracts that are paid on completion of a certain aspect of the project or to even agree penalties for not doing work up to standards. It is better to avoid the money back guarantee schemes because they are usually built on false hopes.

It is also very important to establish who is going to take responsibility for the project. This might involve meeting the staff and interviewing them individually to check their credentials and references. It pays to be weary of the company that double outsources after you have given them a contract.

You might want to make it a specific aspect of the contract that no further outsourcing is allowed other than the relationship between you and the provider. Double outsourcing creates control issues and will dilute accountability.

Where possible try to look at the services that they propose to use. It might be possible to check their software providers. This information can be cross checked against your own intelligence and you might be in a position to object to certain contracts which violate the law or even have a bad reputation when it comes to providing business IT solutions. There is possibility of negotiating discounts if you are able to direct the provider to certain other contacts of yours which can facilitate their work.

Experience will have a role to play in the quality of the work output and the ease with which your contractor can embed within your organization. If they have worked for a similar organization to yours or an industry related to yours, there are advantages that can be transferred to your working relationships. Make sure that any claims about experience are checked and substantiated. You also need to coax the provider into informing you if there are any problems that they envisage working for you so that you can resolve them even before they start work.

Finally it is important to appraise yourself about the important contractual issues such as the costs, the methods of payment and the schedule of payments to ensure that you are not being taken advantage of. Once you explore all the issues, then the business IT project is ready to begin.

Almost everyone is well aware of the fact that the IT is capable of making maintainable and sustainable competitive benefits. In the business arena, the IT is used through value chain of activities that facilitates the business organization to control and optimize the operational functions for effortless decision making process.

The IT is strategic in it’s skill by building the concept of “Value Chain” in a business o0rganization through generic value activities that are interdependent of each other. This chain comprises elements like customers, suppliers, finance, production, etc. There is a connection between these activities which makes it a value chain. These value chain activities as well as the product’s physical parts and processing is altered either by product differentiation or cutting the costs of the value activities. The IT on the whole even transforms the speed of competition.

The value of the company can be added by the IT either by increasing revenue or reduction in costs. The potential of the IT of adding value to the business firm is very different from being the source of the sustainable competitiveness.

Though, the IT’s ability to be a source of the sustainable competitive advantages is disputed and based on assumptions. The assumptions result in two theories. The correlation between IT and the sustainable competitive benefit is studied by one theory called as the Create capture and Keep paradigm. This basically relies on swapping the costs of the customers.

This theory got replaced by a resource based theory that explicates the company’s potential to use the IT to influence the basic resources as a plus and also source of the sustainable competitive edge. In this theory, when the company possesses similar resources or capability, which the other competitor company doesn’t posses, then the same constitutes as the source of the competitive edge.

But the problem is that, if the resources are constant, then it will be a great disadvantage at the cost of the company. So the same will not make a sustainable competitive edge. Simply by imitation of the IT resources of the successful company without social complexity or ambiguity might also make a sustainable competitive edge.

In any kind of organization, the IT is a potential source of competitive edge in these five methods given below:

• When the supplier is in a good position and the IT is essential and unique for the end users, then the costs borne by the consumers will be switched
• When a technology becomes a proprietary technology
• When the capital Investment in the IT enabled resource increases
• For building the IT application, some technical skills are needed
• When the managerial skills are developed for exploiting and understanding the IT application for increasing the business operations

Each and every kind of information in the firm can get positive results and has the potential to get sustainable competitive edge if you observe the following steps:

1. Assessing the potential and the existing information intensity of the process and product
2. Evaluating the probable impact of the IT on the firm
3. Identifying the rank of the activities that affects the IT first
4. Measuring how the IT can bring new business
5. Generating the action plan by taking advantages of IT

It is not just one supporting system, but also a perfect thought process contributing substantial edge, effects and the implications in the business goals.

Human beings will be at the heart of any business IT project. They will be the working capital that ensures it is commissioned and at the end that it is used for the purpose for which it was commissioned. They will bring their own judgments, skills and failings to the project and could ultimately bring it down.

There is no way of controlling human influence in a comprehensive manner. What managers tend to do is to attempt influence employee action using the various management incentives and sanctions available to them. However this does not always work and could ultimately push the employees even further away from their managers. The basic tenets of good management practice can still apply here. Things such as supervision and reward schemes can counter some of the more negative reactions to new technology.

Where the project has been outsourced, the personnel issues are compounded by the fact the in-house managers really have very limited control on external staff. They will have entered binding contracts with their parent organizations and will really be free to do as they please. They also bring with them their own way of working that may not fit in with the company philosophy. Furthermore they do not bear direct responsibility for things when they go wrong and they have to use faulty technology. This means that they have even less incentive to get it right the first time.

This leads us on to the issue of accountability. This is particularly the case where there is a large organization with different people working on different projects all feeding into one big IT group. This can lead people to view themselves as separate parts of an entity leading to isolation and inconsistencies in practice. Even where problems are being resolved there is no one person who coordinates strategy. Any attempts to get some type of responsibility descend into a blame game. People start going off sick with stress and avoiding the senior managers.

However the biggest cause of failure has to be planning. Many failing organizations have a conceptual idea of what they would like out of their IT project but they will not have detailed plans as to how they are going to achieve the objectives. Commissioning will often be based on the personal whims of a particular manager rather than being an overall long term business strategy. Issues will be simplified with the attitude that they can deal with whatever problems arise on an adhoc basis. Therefore without proper planning the project is almost certainly doomed to fail.