Episode Transcript
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Andreas Welsch (00:00):
Today we'll talk
about managing multi-vendor
environments and you know who tobetter talk to about it than
someone who's been helpingothers do just that.
Alex Leonida.
Hey Alex.
Great to have you on.
Alexander Leonida (00:14):
Thanks for
having me, Andreas.
Andreas Welsch (00:16):
Hey, why don't
you tell us a little bit about
yourself, who you are and whatyou do.
Alexander Leonida (00:23):
Yeah, sure.
From the UK I started off inbanking and finance funnily
enough, and got to the pointwhere I just really fell in love
with tech.
Started doing some hackathonsand everything, and eventually
went into consulting in theintelligent automation space.
Started off with one of the bigfour.
Had some fantastic experiences.
(00:44):
Started my own consultancy for awhile and then yeah, that's what
led me to become a founder.
Andreas Welsch (00:53):
Awesome.
I'm really glad to have you onand hearing from your expertise.
We talked about some of thesethings and I know you are quite
passionate about multi-vendor.
If I put my old IT hat back on,I'm all for a single vendor.
So this will make for, a goodconversation today.
So for those of you on thestream, if you're just joining
(01:14):
us, drop a comment in the chatif you're all about
standardizing on one vendor orif you'd rather have the best of
each.
But Alex, should we play alittle game to kick things off?
What do you say?
Alexander Leonida (01:25):
Definitely
Andreas Welsch (01:26):
This game is
called In your own words.
When I hit the buzzer, thewheels will start spinning.
And when they stop, you'll see asentence.
I'd like you to answer with thefirst thing that comes to mind.
In your own words.
To make a little moreinteresting.
You'll only have 60 seconds foryour answer.
So what do you say?
Are you ready for What's"theBUZZ?"
Alexander Leonida (01:48):
Yeah, sure.
Why not?
Andreas Welsch (01:50):
Fantastic.
So let's do this.
If AI wear a color, what wouldit be?
60 seconds go.
Alexander Leonida (02:01):
Okay.
I'm going to say white.
Purely because it can take manydifferent forms and it's usually
requires a hell of a lot ofinputs in order to generate
valuable outputs.
White being the color thatcontains all of them.
(02:22):
I'd say that's where I'd go withthat question.
Andreas Welsch (02:25):
That's awesome.
Thanks.
Really great job doing that onthe fly.
Alexander Leonida (02:32):
Thanks.
Andreas Welsch (02:34):
Good job.
Going from there, right?
Where it entails all of thecolors.
So now it's my job to find agood segue in into multi-vendor.
But that kind of leads us theretoo, right?
There're multiple colors.
There're multiple vendors intoday, we want to talk about
multi-vendor strategies and whythat's a good idea or even
needed in today's automationenvironment.
(02:55):
But I thought before we gothere, maybe let me ask you,
what does a multi-vendorstrategy even entail?
Alexander Leonida (03:01):
Yeah it's
self-explanatory I guess.
It's the use of multiplesoftware vendors, whether it's
one particular vertical oracross the spectrum, to generate
or create some business outcome.
In this case, I guess we'retalking about automation and AI.
Andreas Welsch (03:22):
Fantastic.
So for those of you in theaudience, if you have a question
as well for Alex or myself,please feel free to drop it in
the chat and we'll take a lookin a few minutes here as well.
Alex like I said,self-explanatory.
What do we mean by multi-vendor?
But again, if I think back to acouple years ago when I was in
IT, and we were really trying tostandardize and consolidate as
(03:44):
much as we could, only have onevendor or very few vendors and
to reduce dependencies andincompatibilities and
complexities and the wholeshebang.
So has all that changed?
Are we all of a sudden embracingmultivendor?
What's so popular?
What are you seeing?
Okay.
Alexander Leonida (04:04):
That's an
interesting one.
There are different schools offort.
It all depends on the companyand the culture within that
company, the strategic goals ofthat company especially within
the IT department.
I would say, who'd lead thatstrategy going forward, right?
And, all the architecture, thetech stack single vendor had its
(04:26):
day, and I believe it still doesto some extent.
It just depends on how far youare in that maturity spectrum.
I would say for when you'regetting started, you see a lot
of companies, especially at thesmaller end like low revenues or
low headcount adopt, say fewselect vendors just to keep
(04:49):
things simple at the beginning.
And then as you get larger andexpand or even mature, you'll
find your different departments,for example, growing and they're
using more and more vendors forthe same thing or on the same
technology vertical.
(05:10):
Currently, I would say it'sgrowing in popularity purely
because it gives companies,especially nowadays with the
with the quality of technologyavailable, a whole wider range
of capabilities.
By, having many differentvendors, basically can have best
of breed.
A few other reasons would bevendor independence, so by using
(05:35):
multiple vendors, you are notstuck with one particular For
all of your needs.
This could help avoid thingslike lock in and allow for more
flexibility in terms ofnegotiating prices contracts
even support.
There's also increasedinnovation and adaptability I'd
(05:56):
say.
With multiple vendors andobviously the right management
of those vendors and the rightgovernance in place you can
bring new and innovativesolutions to the table.
New ways to solve the currentproblems that you're facing or
problems within differentdepartments and keep pace with
(06:17):
the latest technology trends andadvancements.
Cuz as we all know, some vendorsdon't necessarily keep up with
the times.
And then guess, yeah, a coupleof o other options would be cost
savings, more leverage when itcomes to negotiation and
certain.
Pricing models of those vendorsmight be beneficial for one use
(06:40):
case and others might bebeneficial for another.
That's, a good point.
I want to ask you f few morequestions there, and I remember
when we.
Had our preparation call alreadya couple months ago.
One of the topics we had talkedabout there was multi-vendor
doesn't mean you have multiplevendors for the same type of
(07:00):
technology.
See multiple RPA vendors ormultiple vendors to do
intelligent document processing.
What do you think there are,what are you seeing?
To what extent doesmulti-vendor.
Yeah, I'd say both this way andthat way.
So, yeah, vertically.
Definitely I've seen, especiallyin my experience, a lot of
(07:21):
companies with multiple RPAvendors.
I think in 2020, Gartner had areport saying some of the their
respondents had their clientmore than eight.
different vendors forautomation.
Obvious.
And it's, quite impressive.
To be fair.
I'd be I'd be impressed if I hadto try and manage all, that'd be
(07:42):
a nightmare.
But yes.
Yeah.
I think it, it's one of thosethings where yeah just growing
in more, more growing inpopularity, I get the point
about having more flexibility,optimizing your cost having
(08:02):
better features available forspecifically what you need.
But doesn't it introducecomplexity and at, the end of
the day, either your automationdepartment or your IT department
that needs to manage it, or yes.
Do you maybe not even transferthe burden even to the business
user who needs to know threetools to do one.
(08:22):
And that's what's an interestingone as well, actually.
You can have different vendorsfor different verticals and
different horizontal, you'llfind a lot of RPA vendors now
are branching into differentcategories.
It doesn't necessarily mean it'sthe best option to go for say
one vendor not just rpa, butothers as well.
Cuz again, you might be missingout on a particular, for
(08:44):
example, IDP tool, which mighthave a accuracy rate of more
than, I don't know, 95, 98%.
AI in particular really workswell when you focus on a
particular niche.
I haven't seen many companieswho claim to have AI
capabilities do well in everysingle use case.
(09:06):
They usually are best when theyare narrowed to certain things.
Say, one that's fantastic forinvoices, another that's
fantastic for driving licensesand so on.
But yeah, when you bring the enduser into it, it does add
complexity.
There's no going around that.
For those of you that don'tknow, shadow it is when certain
(09:28):
technology solutions appear inthe company that aren't really
approved by the IT department,right?
You'll find it's usually becausethe IT or business users aren't
properly serviced by the ITdepartment in a way that their
needs are being met and so theyseek other solutions or they are
sold other solutions.
(09:50):
In fact, I think RPA, if Iremember, was sold to business
units and then IT had to try andcatch up I guess it's still the
case.
So it's, a tricky one.
I just had seen a yeah, questioncoming in Increase cost and more
coordination, how to handlecompanies in that situation.
I think that's where experienceand maturity come into it.
(10:12):
As a smaller team, it'sextremely difficult to handle,
I'd say small team, maybe likethree people.
Extremely difficult to handlemultiple vendors, especially
when it comes to certainverticals.
The increased costs.
This isn't always necessarilythe case.
Certain vendors have pricingmodels which might be
(10:33):
prohibitive for particular usecases, and others have more
flexible pricing models, maybeon a per usage basis or on a per
transaction basis.
That's where a really skilledteam comes into it.
So the more complexity, the morevendors you would use.
(10:55):
You'll need to be able to hire areally good team or, build a
really good team and keep themon board because you are gonna
need, say one person who'sfantastic at this tool, another
person that has experience withthree tools.
And there are complexities inthat aspect.
The increased cost can benegotiated, especially if you
are using multiple vendors fromone particular vertical.
(11:19):
The coordination aspect is whereyou're gonna need to standardize
your governance.
And that might be where bill Doecomes into it.
And I think Andreas has a greatpodcast on that episode on that.
Definitely check it out.
So yeah, building a CoEdefinitely definitely useful.
(11:39):
It's basically a group ofexperts who are targeted in one
particular area.
And the goal is to educate theorganization on best practices
and such with coordination andmore coordination.
That's where best practices andgovernance and ideally
visibility are needed.
Andreas Welsch (12:00):
So building off
of that.
On one hand you had the CoE andyou need different skill sets
and different resources in thatCoE.
When you look at something likeshadow IT or citizen
development, the more embracedand more guided version of this.
How do you see that then work ifyou have different products or
(12:24):
different technologies,different vendors.
Do companies have one tool thatis super easy to use, that works
great for citizen developers?
And there's another one that'smaybe more for pro developers, a
bit more advanced or who do thateven full-time.
What are you seeing?
Alexander Leonida (12:40):
I think you
pretty much just hit the nail on
the head.
I guess going back to yourexperience, right?
The ideal scenario for it isthat you just have one tool.
You're easily able to govern it.
You're easily able to createbest practices around it.
And it's just easier for you tomanage in that aspect.
When it comes to business units,each have their own needs, each
(13:00):
have their own abilities andskillsets.
Finance may not exactly be asfantastic as marketing at a
particular thing or vice versa.
So a multi-vendor strategy inthat sense gives flexibility to
those business units, allowsthem to choose the tool that's
(13:22):
best for them.
You'll find that, again, managedproperly with visibility into
the end-to-end workflow, youshould easily be able unlock
even more value.
Andreas Welsch (13:36):
That's awesome.
Alexander Leonida (13:38):
But again,
going back to the CoE thing,
that needs to be more.
You need the right training.
There's obviously complexitiesaround that.
It's not as easy as a singlevendor, but then that vendor
that you might be using and tiedto, for example the sudden on
the pricing side, increase 38%next year.
(14:00):
And then, what happens if or isnot very end user friendly.
So having that flexibility iswhere in today's tumultous
markets the inflation, all thesemacroeconomic events is key
going forward.
(14:21):
At least that's what I think.
Andreas Welsch (14:22):
That's an
awesome way to summarize it.
On the topic of summarizing, canyou summarize the three
takeaways from today's sessionfor our audience?
Alexander Leonida (14:32):
Multi vendor
approach, it depends on your
capability.
As a company, your culture aswithin your company.
If you out maybe it's, not thebest way to go unless you
definitely find tools that usecases.
I think the real to understandthe benefits of the approach
(14:55):
vendor independence, costsavings, increased leverage,
like negotiation ability interms of the the end users as
well to cater to their needs,what we're trying to do at the
end of the day, provide more ofthe business.
Yeah, when it comes to shadowIT, just make sure that you're
(15:17):
able to govern it to end cycle.
So have some kind way feedbackloop between them and your
center of excellence that Isuggest everyone to try and
create.
And yeah, just gut ability iskey from ideation to management
and tracking to analytics andjust make sure you've got
(15:42):
governance rules and a singleway to do.
Andreas Welsch (15:48):
Thank you so
much for the summary.
So folks, we're getting close tothe end of the show today.
I'm really glad you were able tojoin us today.
Also, you, Alex, thank you somuch for sharing your experience
with us.
Alexander Leonida (16:00):
Thanks,
Andreas.
Any time.