By John T. Lau
The Decision
When you need to type a letter, do you: A) Open your word processing program and start typing, or B) Develop a new word processing program?
Obviously, the answer is A. Microsoft Word functions perfectly well, so why reinvent the wheel? It would not occur to us to design, develop, test, and support a new word processing program each time we need to send a note. If we did, our letters might never get done.
So why the ridiculous question in the first place? While the logic is clear, sometimes well-meaning supplier diversity directors and IT managers take the "reinvent the wheel" approach when selecting their supplier diversity management systems.
In order to understand the ramifications of this approach, let's take a look at the true costs of ownership for a homegrown diversity tracking solution versus the purchase of a proven solution.
Homegrown Hurdles
Consider the steps you'd have to take to develop your own solution successfully. In our experience, the creation of an in-house system encompasses five distinct phases, incorporating at least five separate divisions, and spanning several years in time.
Planning. You'll need supplier diversity personnel, IT, accounting, and C-level management buy-in to create an actionable plan.
Design & Prototyping. You'll need multiple technical and design experts to create an easily navigated user interface. This can particularly tricky if you don't have available in-house resources.
Development. A team of multiple programmers and IT personnel will have to identify and create applications to meet each of your tracking needs throughout the organization. Each application and the user interface design will then have to be implemented by this staff as well.
Testing & Training. Users will have to become familiar with the application in order for it to function as intended. This phase involves the IT department, as well as all potential system users.
Rollout, Support, Maintenance. Launching an application is a lot like a wedding lots of fanfare, and the creeping realization that now you're stuck for better or for worse. If your business changes, the system will have to be updated to reflect those changes. The full process will have to be implemented again each time these changes are made.
Some Other Things You May Not Have Considered
Focus. Making and maintaining supplier diversity tracking software is probably not your IT department's first priority. After all, they have a whole company to support. Add to that, personnel turnover. One client we know of went through five technical project managers in two years before they began to question maintaining their own system.
Expertise. You know your business and you may know supplier diversity issues as they apply to your business, but do you have the time to keep on top of these trends and the diversity business world at large? Even more, do you have an IT department well-versed in the issues?
Fuzzy Math/Fuzzy Data. Your diversity numbers should be as accurate as possible. This means installing the most proven method for tracking and reporting data. In the realm of diversity supply chain management that means DivTRAK®.
So why reinvent the wheel when DivTRAK® already provides the best on the road? Make DivTRAK® your standard in tracking supplier diversity.
Link to DivTRAK
Back to top