Post on 21-Jan-2018
© 2016 Avasant LLC. All Rights Reserved.Proprietary and Confidential. No part of this document may be reproduced in any form or by any electronic or mechanical means,including information storage and retrieval devices or systems, without prior written permission from Avasant LLC.
Friday July 7th 2017
- for the Digital Enterprise
Managing Collaborative Supply Chains
Presenter
Adrian Quayle
2
How Did We Get Here? Our Outsourcing Journey
• Services Outsourcing (IT) began as ‘Facilities Management’ in the 1960s and rapidly grew,
• Today’s Outsourcing Industry leverages “technology, process & people” to where it is a global industry with revenues over $10+ trillion dollars,
3
Digital Enterprise
Enterprise Digital Transformation
Initiatives involve executives other
than the CIO
Executives undergoing formal digital
transformation efforts in 2017
Customer Driven Enterprise Value Chain
Business Processes automated by
transformation-focused
organizations in 2016
Traditional Value Chains
Analog Speed
Digital Enterprise Value Chains
Digital Speed
Source: Altimeter Group and MIT Sloan
88%
78%
59%
4
What is driving Governance Transformation?
Evolving Buying Behaviour
Analytics &
Decisions
A new breed of
Suppliers
01
02
03
Demand for Digital
Transformation
Focus on Business
Outcomes
Increased Risk &
Regulatory Compliance
06
07
08
Value Optimization
05
04
New Delivery Models
5
What is Changing ?
Contract Structure & Management• Standard, shorter and simpler contracts
• Zero Cost and Gain Share Models
• Linked to business capabilities
• Focused on partnership, not services
• Limited operational T&Cs and D&Os
Performance Management• Business metrics measurements
• Simpler reporting /meeting driven approach
• Shared metrics for a single service chain
• Simpler validating and verifying of SLAs
Financial Management• TCO pricing models
• Increased complexity in pay as you use model
• Automated pricing and reporting
• Pricing traceable to specific, tangible deliverables
• Fixed price model for post-design work
Relationship Management• Business driven connected with outcomes
• Control over deliverables, intellectual property, and future
direction of the software and solutions
• Mature project management & delivery
Risk Management• Policy Development to manage technology
• Increased Data & operations risks
• One sided supplier contracts
• Easy entry and exit of suppliers
• volatile supplier ecosystem
6
Benefitting from Standards
• Guidance on Outsourcing ISO 37500:2014
o Providing a common reference structure
(language) across the supply chain
o enable mutually beneficial collaborative
relationships
• Collaborative business relationship
management ISO 44001:2017
o Enables verifiable relationships best
practices
o Facilitates ‘win – win’ between organisations
across the supply chain
Source ISO 2014 and 2017
Consortia
Eco systems
Alliances
Partnering networks
7
The Result: Business value driven Governance
• Increased Revenue
• Optimal ROI
• Better
• customer experience
Innovation Efficiency Performance
• Applied Innovation
• Competitive Advantage
• Allow for fast transitions
• Improved cycle times
• Cost optimization
• Business centric
• Predictive, proactive,
• leverage trends
8
• The increasing focus on business outcomes and
new business transformation initiatives such as
digital are presenting significant challenges to
realizing the value of sourcing
• Traditional governance practices are inadequate
to Manage Ecosystems of Relationships in the
New Digital Enterprise
• Vendor management staff are going to need
strategic perspective, new skills, and greater
understanding of end-to-end, multi-provider
service processes
Closing Thoughts
Empowering Beyond
GET CONNECTED
www.Avasant.com
Washington DC
New YorkDallas
Los Angeles
(Headquarters)
Toronto
LondonPort of Spain
Bangalore
Mumbai Tokyo
New Delhi
Dubai
Madrid
Kampala
Johannesburg
Hong Kong
Paris
Munich
Main: +1 (310) 643-3030
Adrian QuayleManaging Partner Europe
adrian.quayle@avasant.com
Mobile: +44 7770 431 409