| | SEPTEMBER - 20239CIOReviewInnovation InvestmentInvesting in innovation is another important way to extract value from an IT managed service provider. MSPs are typically at the forefront of technological innovation and can provide valuable insights into emerging technologies and trends. By working closely with your MSP, you can identify opportunities to leverage these technologies to improve your business processes, reduce cost, enhance customer experience, improve security or create new revenue streams.To encourage innovation, it is important to create an environment that fosters creativity and experimentation. This can involve providing your MSP access to business and IT resources to experiment with new technologies, as well as setting aside time for brainstorming and ideation sessions. By fostering a culture of innovation, you can encourage your MSP and IT organization to think outside the box and identify new ways to drive value for your business.Shared Economic InterestA shared economic interest is essential for building a strong and long-lasting relationship with your MSP. This means that both parties benefit from the partnership, and there is a shared sense of responsibility for the success of the business. It is important to establish a mutual understanding of the goals, objectives, and expectations of both parties.One way to achieve a shared economic interest is to establish a pricing model that is based on shared savings or outcomes. This can help align the interests of both parties and encourage the MSP to be proactive in identifying cost-saving opportunities and process improvements that benefit the business. Also, this can encourage the MSP to focus on delivering tangible results that drive value for your business, rather than simply providing services.Measurable ResultsThe fourth strategy for extracting value from an MSP is to focus on measurable results. This means defining clear performance metrics that are tied to the outcomes you are seeking. For example, if you are working with an MSP to improve cybersecurity, you might measure success by the number of successful attacks prevented or the time it takes to detect and respond to a breach. By focusing on measurable results, you can hold your MSP accountable for the value they are providing. This will help you identify areas where improvements are needed and ensure that you are getting the most out of your investment. Resist the urge to focus on traditional IT metrics such as uptime, number of incidents, etc. You and the MSP should work closely with the business leadership to define the metrics that are most relevant and to ensure that these metrics are regularly reviewed and updated with all stakeholders.Support the Managed Service Provider Revenue Targets for a Win-Win RelationshipThe fifth and final strategy for extracting value from an MSP is to support their yearly revenue targets. While this may seem counterintuitive, it is actually a key part of building a strong, long-term relationship with your MSP.By supporting your MSP's revenue targets, you are helping them to grow their business and invest in new technologies and services. This means being open to new services, technologies, and solutions that the MSP may recommend, even if they require additional investment. This will benefit your organization in the long term by making sure you're receiving the best resources, thought leadership and innovation. MSPs strive in an environment where there is mutual respect and their time and effort is rewarded.To extract value from an MSP, businesses must take a proactive approach and treat their MSP as a strategic partnerChristopher Cox
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