This white paper provides a framework and way of thinking to define the principles for designing and improving the governance for market services, based on a simple 5-step approach and clear market service typology. This helps the organizations to identify and select the right market solution, to set up the right governance for the implementation and execution of the service, and to provide a basis for healthy cooperation with the supplier.

What is this whitepaper about?

Digital services from market suppliers are often good technology solutions for the information needs of many business processes. However, it always turns out that the selection and contracting of the supplier’s solution does not complete the job. Implementation and running the services need often more attention than anticipated. This means that the success of every solution relies on its supplier. Both the service and the relationship with that supplier need effective management.

“Good governance must over-see supplier relationships and risks such as supplier dependency, service shortcomings, lack of innovation, data security and privacy issues, adaptability of the service, and rising costs.”

Day-to-day business operations depend on these services and thus we expect the supplier to ensure that his services grow with the needs of the company. Not every supplier relationship has the same characteristics. For some suppliers, there is a high degree of dependence and an intensive form of collaboration, for other suppliers the technology used is seen as a commodity and the control can be simpler. It is also important to what extent suppliers contribute to new products or ensure that critical infrastructure is adequately managed. Therefore, effective governance with these suppliers is necessary. Establishing and implementing the correct governance remains difficult, however.