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Best Practices for Technology Development and Sourcing Transactions

  • Best Practices for Technology Development and Sourcing Transactions-

    This discussion of transaction models has been kept at a high level out of necessity: companies, technologies, industries, and market conditions vary widely. Nonetheless, the strategic benefits and challenges that have been highlighted for each model can serve as a basis for a clear-eyed appraisal of what a company’s technology innovation needs and capabilities really are. Of course, detailed planning and documentation must follow to implement these strategic decisions at a practical level.

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Best Practices for Technology Development and Sourcing Transactions

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  • Best Practices for Technology Development and Sourcing Transactions-16

    This discussion of transaction models has been kept at a high level out of necessity: companies, technologies, industries, and market conditions vary widely. Nonetheless, the strategic benefits and challenges that have been highlighted for each model can serve as a basis for a clear-eyed appraisal of what a company’s technology innovation needs and capabilities really are. Of course, detailed planning and documentation must follow to implement these strategic decisions at a practical level.

In recent years, the pace of technology and business change has rapidly increased, requiring new commercial models and changes to the existing models. Companies – all companies, not just technology companies – must now regularly update technology across their entire organizations and customer-facing services and products.

Successful technology projects boost revenues, distinguish a company and its offerings from the competition, and transform and improve a company’s relationships with its customers. Failure, on the other hand, can have a profound impact on product development, customer service and market reputation for years to come. Consequently, planning for technology innovation and deployment projects requires careful mapping of strategic objectives, deliverables, and realistic work-around options. 

Laurence Jacobs and Nicholas Smith, partners at Milbank, Tweed, Hadley & McCloy, have identified a variety of transaction structures that companies can use to develop new technologies and to leverage existing infrastructure, technologies, and customer bases. They have also focused on the relative strengths and weaknesses of these models in fostering technology innovation and best practices when designing and managing a project to develop and deploy technology or technology services.