With our previous two cases with Kodak and
Cisco, we saw two companies that
bet the farm with new projects. I think doing this is a bad idea. Giving away such a large project to a firm that has never had that much experience seems like a very bad idea. However, in the
Cisco case, the legal department did a great job by putting in a clause that said if Oracle ever messed up they had to fix and pay for the mistake. Betting the farm is extremely risky, but having the right contract written can be the saver to the company.
Betting the farm is a risky strategy that should only be used on a "sure thing." I agree with Dixon that, in these two cases, it was probably not the best option.
ReplyDelete