GM backs IT purchasing standards for highly effective buyers, suppliers
By Staff -- Manufacturing Business Technology, 10/1/2006 12:00:00 AM
General Motors (GM) is bringing greater discipline to the software procurement process by codifying a standard for acquisition best practices, working in collaboration with Carnegie Mellon Software Engineering Institute (SEI); the Department of Defense (DoD); and 50 other interested parties.
The focus is on the SEI Capability Maturity Model Integration (CMMI) standard for software development, and providing an extension to cover acquisitions. CMMI-ACQ, as the emerging standard is known, acknowledges the reality that the “make-buy” decision increasingly falls in favor of “buy,” even for GM, which spun off EDS—its captive in-house development arm—and reflective of the corporate trend to focus on core competencies.
SEI, a federally funded research and development center, deals with software-engineering principles and practices, including development of the CMMI standard that covers all phases of the software life cycle for building and maintaining quality systems. Companies have attempted to apply the original model to the acquisition of software, but deficiencies prompted GM and others to develop an extension that specifically addressed the issue.
“We're all interested in making standard transactions as smooth and seamless as possible so we can concentrate on creating value rather than getting bogged down in the transaction itself,” says Dr. Hubert Hofmann, global senior manager in GM's global systems delivery organization. “The model focuses on the unique set of practices needed to acquire software: interactions with business partners, putting requirements together, validating the solution, and putting the contracts together. It is a path for becoming best-in-class in acquiring software.”
The standard is available for review on the SEI Web site. The DoD is particularly engaged in piloting the new standard through the end of the year. “Based on those pilots, there might be some modifications to the official standard,” Hofmann says. The goal, however, is to fast-track approval of the standard for general use in 2007.
“The original model had a small component that addressed supplier agreements,” says Mike Phillips, SEI program manager. “We've built around that small piece to ensure there is enough detail. It is intended to build a strong relationship between highly effective buyers and highly effective suppliers.”
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