TM Forum is currently investigating ways to procure OSS without resorting to the current RFI / RFP approach. It has published the following survey results.
As it shows, the RFI / RFP isn’t fit for purpose for suppliers and customers alike. It’s not just the RFI/RFP process. We could extend this further and include contract / procurement process that bolts onto the back of the RFP process.
I feel that part of the process remains relevant – the part that allows customers to evaluate the supplier/s that are best-fit for the customer’s needs. The part that is cumbersome relates to the time, effort and cost required to move from evaluation into formation of a contract.
I believe that this becomes cumbersome because of trust.
“Every OSS supplier wants to achieve “trusted” status with their customers. Each supplier wants to be the source trusted to provide the best vision of the future for each customer. Similarly, each OSS customer wants a supplier they can trust and seek guidance from.”
Past PAOSS post.
However, OSS contracts (and the RFPs that lead into them) seem to be the antithesis of trust. They generally work on the assumption that every loophole must be closed that a supplier or vendor could leverage to rort the other.
There are two problems with this:
- OSS transformations are complex projects and all loopholes can never be covered
- OSS platforms tend to have a useful life of many years, which makes predicting the related future requirements, trends, challenges, opportunities, technologies, etc difficult to plan for
As a result, OSS RFI/RFP/contracts are so cumbersome. Often, it’s the nature of the RFP itself that makes the whole process cumbersome. The OSS Radar analogy shows an alternative mindset.
Mark Newman of TM Forum states, “…the telecoms industry is transitioning to a partnership model to benefit from innovative new technologies and approaches, and to make decisions and deploy new capabilities more quickly.”
The trusted partnership model is ideal. It allows both parties to avoid the contract development phase and deliver together efficiently. The challenge is human nature (ie we come back to trust).
I wonder whether there is merit in using an independent arbiter? A customer uses the RFI/RFP approach to find a partner or partners, but then all ongoing work is evaluated by the arbiter to ensure balance / trust is maintained between customer (and their need for fair pricing, quality products, etc) and supplier (and their need for realistic requirements, reasonable payment times, etc).
I’d love to hear your thoughts and experiences around partnerships that have worked well (or why they’ve worked badly). Have you ever seen examples where the arbitration model was (or wasn’t) helpful?