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What do you do if your vendors are skeptical about using new technology?

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Navigating vendor skepticism towards new technology can be a delicate process, especially when you're trying to foster a strong partnership. When your vendors are hesitant to embrace new systems or software, it's essential to approach the situation with a blend of understanding, strategic persuasion, and clear communication. Here's how you can encourage your vendors to consider the benefits of new technology while respecting their concerns and maintaining a positive business relationship.

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Anbukkarasu Annamalai (Anbu)

Global Head, Digital & Emerging Technologies, Banking Financial Services and Insurance at Tata Consultancy Services
Nitesh Sharma

Ecom Express Limited

1 Build Trust

Building trust is the cornerstone of any successful vendor relationship, particularly when introducing new technology. Start by having open and honest conversations about their apprehensions. Listen actively to their concerns and validate their feelings. This will show that you respect their perspective and are not just pushing an agenda. Share success stories and data from other vendors who have adopted the technology successfully, emphasizing the tangible benefits they've experienced. Transparency about the implementation process, support, and potential challenges can also help alleviate their worries.

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2 Highlight Benefits

When discussing new technology with vendors, focus on the specific benefits it brings to their operations. Explain how the technology can streamline processes, reduce errors, or increase efficiency, which can lead to cost savings or higher quality outcomes for them. Make sure to tailor your message to address their unique pain points and business objectives. By presenting the technology as a solution to their specific challenges rather than a one-size-fits-all tool, you're more likely to pique their interest and overcome their skepticism.

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Anbukkarasu Annamalai (Anbu)

Global Head, Digital & Emerging Technologies, Banking Financial Services and Insurance at Tata Consultancy Services
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Fully agreed with this. Generally just creating awareness and the impact of the new technology will solve most of the issues or hesitations to start. Either way no vendor wants to leave the business on the table just becoz they not trusting the new technology and challenging inspite of knowing the benefits.

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3 Offer Training

One major hurdle to adopting new technology is the learning curve associated with it. Assure your vendors that comprehensive training will be provided to facilitate a smooth transition. Offer multiple training formats, such as on-site workshops, webinars, or written guides, to accommodate different learning styles and schedules. Reiterate the ongoing support that will be available after the initial training period. By committing to help them master the technology, you can reduce their anxiety and build confidence in the new system.

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Anbukkarasu Annamalai (Anbu)

Global Head, Digital & Emerging Technologies, Banking Financial Services and Insurance at Tata Consultancy Services
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This is another area, hesitation and not wanting to step in could be due to lack of skills. Not even offering training , but leading the way and showing how they could pick momentum

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4 Provide Incentives

Sometimes, a little motivation can go a long way in persuading vendors to try new technology. Consider offering incentives such as discounts, improved payment terms, or exclusive access to additional services for early adopters. These incentives should not only compensate for the effort required to learn and integrate the new technology but also highlight your commitment to a mutually beneficial partnership. Incentives can serve as a tangible acknowledgment of the value you place on your vendors' willingness to innovate and adapt.

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5 Showcase Flexibility

It's important to demonstrate flexibility when introducing new technology to vendors. Acknowledge that every business operates differently and offer customizable options or features that can be tailored to their needs. Allow for a phased implementation, giving vendors the opportunity to gradually integrate the technology into their workflows at a manageable pace. This approach reduces the pressure of an immediate, all-or-nothing transition and shows that you're considerate of their operational realities.

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Anbukkarasu Annamalai (Anbu)

Global Head, Digital & Emerging Technologies, Banking Financial Services and Insurance at Tata Consultancy Services
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Giving some time for them to pace up will be required when we are navigating new technologies. In most cases this flexibility will take a long way.

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6 Follow Up

After vendors have started using the new technology, follow up regularly to gauge their experience. Solicit feedback and be ready to address any issues promptly. Celebrate small victories and milestones to maintain enthusiasm and commitment. Continuous engagement not only helps in ironing out any kinks but also reinforces the idea that you're in this together for the long haul. Your active involvement in this stage is crucial for reinforcing trust and ensuring the enduring success of the technology adoption.

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Anbukkarasu Annamalai (Anbu)

Global Head, Digital & Emerging Technologies, Banking Financial Services and Insurance at Tata Consultancy Services
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In my experience following thru the asks or demand in general needed to move things in the pace in which we want. Not just for technology but in any case to achieve the common goals.

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7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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Nitesh Sharma

Ecom Express Limited
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Any new initiative usually creates fear & ambiguity among vendors. So before adopting anything new don't forget to put on your shoes and imagine the scenarios and accordingly make it that way, it will definitely help in vendor acceptance.. Aside you could further have one on one discussions with vendors with trial of new technology, direct and indirect benefits and most important is to take suggestions from vendors in case it further can be improved.. once you accept these suggestions and able to implement vendors feel more confident on execution of the same. Always ensure them as you are there with all backup support.

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What do you do if your vendors are skeptical about using new technology?

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1 Build Trust

2 Highlight Benefits

3 Offer Training

4 Provide Incentives

5 Showcase Flexibility

6 Follow Up

7 Here’s what else to consider

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