Frank Willems
Groningen9 January 2009
ITSM Sourcing specialization 2008-2009
Shared Services, Collaboration and Crowdsourcing
2© Twynstra Gudde 9-1-2009
ITSM Sourcing specialization 2008-2009
Agenda
– Shared Services
– Collaboration as a sourcing solution
– 4th generation sourcing and Crowdsourcing
– Explanation of learning Task 3 about Sourcing
3© Twynstra Gudde 9-1-2009
ITSM Sourcing specialization 2008-2009
But first: how about the outcome of the Digital Selftest?
4© Twynstra Gudde 9-1-2009
ITSM Sourcing specialization 2008-2009
Experience with the outcome of the Digital Selftest
Name Yellow Blue Red Green White
Michiel 11 39 10 14 22
Jaime 12 10 35 19 20
Egbert 13 24 24 19 16
Gideon 10 24 24 20 18
Joanmis/Ioannidis 17 24 13 28 14
Ibrahim 17 24 21 19 15
Sofia 16 26 21 23 10
Raage 12 26 23 21 14
Rebin 19 19 24 24 10
Thijs 19 18 16 24 19
Test should be made on http://www.twynstragudde.nl/tg.htm?id=8635
5© Twynstra Gudde 9-1-2009
ITSM Sourcing specialization 2008-2009
Conclusion
– IT Service management and Sourcing is all about people
– People can share energy, knowledge and power together when they are aware of the differences and the comparability
– Organizational Change Management can help to manage the right interventions
6© Twynstra Gudde 9-1-2009
ITSM Sourcing specialization 2008-2009
Shared Services
7© Twynstra Gudde 9-1-2009
ITSM Sourcing specialization 2008-2009
Definition and goal of a Shared Service Center (SSC)
– We speak about an SSC as supporting processes within an organization on an approximately similar way, are delivered a new, semi-autonomous unit and on the basis of agreements it provides services to other units
– The goal of an SSC is generally to improve the service quality while cutting costs
– SSC versus centralization, service-oriented versus task
8© Twynstra Gudde 9-1-2009
ITSM Sourcing specialization 2008-2009
Measures in perspective
Measures at task level:Stopping investments
Orcutting down on currentinitiatives
Measures at a process level:Collaboration and joint investments
Measures at a functional level:Concentration, integration, mergers,
Take-over or outsourcing
Saving potential
Short term(0,5-1 year
Medium term(1-2 years
Long term(2-5 years)
Stopping projects
Cutting down on training and learning
Cutting down on engaging external consultants
System optimazation
Collaboration regarding purchasing, support, etc.
Optimization and standardization of processes
Integration, mergers and concentration
Outsourcing of parts of the organization
Shared Services Centre
Full outsourcing
Capitalizingeffects
9© Twynstra Gudde 9-1-2009
ITSM Sourcing specialization 2008-2009
Concentration leads to economies of scale
Internal SSC
Insourcing/External Supplier
Cos
ts
Volume
Efficiency-effects
Economyof Scale
10© Twynstra Gudde 9-1-2009
ITSM Sourcing specialization 2008-2009
Are the trends moving up and down?C
osts
Volume
Startingpoint
Impact Scale reached Impact Scale
reached
Complexity Costs will increase
Yes, to take maximum concentration and complexity there will be need for new solutions.
11© Twynstra Gudde 9-1-2009
ITSM Sourcing specialization 2008-2009
Potential services for a SSCFacility Management
- mailroom
- copying and printing service
- archive
- purchase
- catering
Customer Service
- sales service
- telephone customer service (call center)
Administration
- financial administration
- pensions administration
- Payroll
Personelmanagement (HRM)
- recruitment and selection
- Personnel administration
- training
ICT Services
- application development
- Helpdesk
- Management and operation
- Training
- Real Estate Management
- management buildings
- Security management
- Sales and marketing
- ad coordination
- direct mail
- sales
- Tele ordering
- Order administration
12© Twynstra Gudde 9-1-2009
ITSM Sourcing specialization 2008-2009
Variants of Shared Services
supportfunctions
Management
primairy functions
Shared SupportProcess
Shared Business Process
Sharedback-offices
13© Twynstra Gudde 9-1-2009
ITSM Sourcing specialization 2008-2009
The components of Shared Services
How to manage the environment, where the process is cut and who is responsible for what processes?
What is the proper organization, which staff and how are we ready for the future?
How are technology, process and organization knotted together?
The core of the service
Kantoorinformatiesystemen
Bedrijfsinformatiesystemen
TechnischeInformatiesystemen
Functioneel
Specifiek
Generiek
Fysiek
ICT infrastructuur componenten
User Support enApplicatie Management
SystemManagement
ICT infrastructuurlaag
ICT functionaliteit
NetwerkManagement
ICT Functie/processen
Kantoorinformatiesystemen
Bedrijfsinformatiesystemen
TechnischeInformatiesystemen
Functioneel
Specifiek
Generiek
Fysiek
ICT infrastructuur componenten
User Support enApplicatie Management
SystemManagement
ICT infrastructuurlaag
ICT functionaliteit
NetwerkManagement
ICT Functie/processen
SSC 1SSC 1
SSC 3SSC 3
SSC 2 SSC 2
SSC 4SSC 4
Opstellen van Business
Cases
Opstellen van Business
Cases
Inrichtenvan
processen
Inrichtenvan
processen
Managenvan
projecten
Managenvan
projectenGovernanceGovernance
RegieRegie
ArchitectuurArchitectuur
Processes
OrganizationSystems
Customers
14© Twynstra Gudde 9-1-2009
ITSM Sourcing specialization 2008-2009
Name the change components
Ontwikkelenmaatwerk
Ontwikkelenmaatwerk
Beheerinfrastructuur
Beheerinfrastructuur
Beheer &draaien
pakketten
Beheer &draaien
pakketten
Support/HelpdeskSupport/Helpdesk
OntwikkelenmaatwerkSSC 1
BeheerinfrastructuurSSC 3
Beheer &draaien
pakkettenSSC 2
Support/HelpdeskSSC 4
Response, context and vision of SSC's clear and design direction activities
Target focus on service domains
ICT-governance
Governance
RegieRegie ArchitectuurArchitectuur
Opstellen
van BusinessCases
Opstellen van Business
Cases
Inrichtenvan
processen
Inrichtenvan
processen
Managenvan
projecten
Managenvan
projecten
Opstellen van Business
Cases
Opstellen van Business
Cases
Inrichtenvan
processen
Inrichtenvan
processen
Managenvan
projecten
Managenvan
projecten
Make Governanceagreements
Professionalizedemand
ICT-governance
Governance
RegieRegie ArchitectuurArchitectuur
Transformdemand management
ICT-governance
-Governance
RegieRegie ArchitectuurArchitectuur
SSC 1SSC 1
SSC 3SSC 3
SSC 2 SSC 2
SSC 4SSC 4
Opstellen van Business
Cases
Opstellen van Business
Cases
Inrichtenvan
processen
Inrichtenvan
processen
Managenvan
projecten
Managenvan
projectenGovernanceGovernance
RegieRegie
ArchitectuurArchitectuur
15© Twynstra Gudde 9-1-2009
ITSM Sourcing specialization 2008-2009
An Change approach for Shared Services
Change idea
….
Intervention-oriented communication about plan and implementation
Support by Change help desk
Assessment by Change board
Consultation with Sounding board groupCIOClient …
Characteristics of interaction
Characteristicsof employees
Characteristics ofproducts, pro-
cesses & structure
Clients, Governance &
suppliers
History
Rea
son
Environm
ent
View on change Kick off
Change analysis + Culture scan
DD MM YYYY
Change goals
Aligning structure and processes
Organizing control and and prepairing SSC implementation
Contracting and realizing SLA’s
Culture change and competence development
Learning to collaborate
Inter-ventionsAnd (re) planning
Reconsider-Ing
goals
Measuringprogress
Plateau 2
Inter-ventionsand (re)planning
Reconsider-ing
goals
Measuringprogress
Plateau 1
16© Twynstra Gudde 9-1-2009
ITSM Sourcing specialization 2008-2009
Example of a Target Efforts Network
More innovative power and sharing knowledgeMore innovative power and sharing knowledge
Higher efficiency pension processesHigher efficiency
pension processes
Better quality ICT services and
products
Better quality ICT services and
products
75% Reuse pension processes
and systems (FO & BO)
75% Reuse pension processes
and systems (FO & BO)
20% Faster market
introductionpension products
20% Faster market
introductionpension products
30% Cheaper implementation
processes
30% Cheaper implementation
processes
20% Less duplication20% Less duplication
60% Knowledge pension products
more accessible
60% Knowledge pension products
more accessible
95% Reliable service in
accordance SLA
95% Reliable service in
accordance SLA
MissionMission
GoalsGoals
Measurable
goals
Measurable
goals
Projects
and activities
Projects
and activities
Mission Develop a Shared Service Center that is a
knowledge-and information-engine around pension products, by sharing forces to deliver better innovation
and deliver at lower cost high quality products and services to
17© Twynstra Gudde 9-1-2009
ITSM Sourcing specialization 2008-2009
Collaboration
18© Twynstra Gudde 9-1-2009
ITSM Sourcing specialization 2008-2009
Collaboration is not obvious
“Working together requires the courage to stand away from yourself without losing sight of. That is the great challenge”. Edwin Kaats
Own control
Give up part autonomy
Alignment
Domains
Give away
knowledge
Slow decision-
making Sharing
Trust
19© Twynstra Gudde 9-1-2009
ITSM Sourcing specialization 2008-2009
Organizing between organisations
Choos youe position in the group!
Build an effective collaboration!
Develop a legitimated organization for cooperation!
Way of descision makingWay of descision making
Le
ng
th o
f th
e r
ela
tio
ns
hip
Le
ng
th o
f th
e r
ela
tio
ns
hip
MarktetMarktetbehaviourbehaviour
OrganisingOrganisingBetweenBetween
organisationsorganisations
ConcernConcern
Gomes-Casseres
organisation
organisation
III. Organisation
II. Collaboration
relationorganisation
organisation
organisation
organisation
I. Group
organisation
20© Twynstra Gudde 9-1-2009
ITSM Sourcing specialization 2008-2009
Consent
Condtional
Assim
ilatio
n
Independant
Exchangeable
Appropriate
partners
Consensu
s
Prim
ary
importa
nc
e
Coëxistential
Mutually
dependent
Exclusiv
e
Unique partners
Better Different
Stability and continuïty Creativity
Result Description Ambition and goals
First order solutions Second order solutions
Tomorrow Future
Client - contractor Similar
Step by step Innovation
Transactional Exploring
Functional Entrepeneural
Build an effective collaboration
Control
Target subsystem
Behavioral Agreements
Operational developmentDiffe
rent in:
Find, get, start, run, restructure!
21© Twynstra Gudde 9-1-2009
ITSM Sourcing specialization 2008-2009
The Kraljic Purchasing model
Purchasing Risk Is it a standard or a specialized product?
What
is t
he e
xte
nt
to w
hic
h t
he p
roduct
/ s
erv
ice
adds
valu
e f
or
the b
usi
ness
Less
added v
alu
eLa
rge a
dded v
alu
e
Standard Specialized
StrategicLeverage
Bottleneck Routine
22© Twynstra Gudde 9-1-2009
ITSM Sourcing specialization 2008-2009
The sourcing solutions plotted on this model
Purchasing Risk Is it a standard or a specialized product?
What
is t
he e
xte
nt
to w
hic
h t
he p
roduct
/ s
erv
ice
adds
valu
e f
or
the b
usi
ness
Less
added v
alu
eLa
rge a
dded v
alu
e
Standard Specialized
StrategicLeverage
Bottleneck Routine
Business ProcesOutsourcing
Backofficeoutsourcing
Outsourcingworkplace mgt
Businessdevelopment
Shared ServiceCenters
DataCenteroutsourcingFacilities
outsourcing
Workinnovation
1e generation sourcing 2e generation sourcing
4e generation sourcing
3e generation sourcing
2e generation sourcingCrowd
sourcing
Operationsoutsourcing
23© Twynstra Gudde 9-1-2009
ITSM Sourcing specialization 2008-2009
Crowd Sourcing
24© Twynstra Gudde 9-1-2009
ITSM Sourcing specialization 2008-2009
Definition of Crowd Sourcing
Due to deep changes in technology, demographics, business, the
economy and the world, we are entering a new age in which people
take part in the economy like never before.
The growing accessibility of information technologies puts the tools
required to collaborate, create value and compete at everybody’s
fingertips.
This new mode of innovation and value creation is called crowd
sourcing, peer production or peering.
25© Twynstra Gudde 9-1-2009
ITSM Sourcing specialization 2008-2009
Building the Community of the Future
While hierarchies are not vanishing, profound changes in the nature of
technology, demographics and the global economy are giving rise to
powerful new models of production based on community, collaboration
and self-organization rather than on hierarchy and control.
Smart companies are encouraging, rather than fighting, the heaving
growth of massive online communities.
As a growing number of firms see the benefits of mass collaboration,
this new way of organizing will displace the traditional corporate
structures as the economy’s primary engine of wealth creation.
26© Twynstra Gudde 9-1-2009
ITSM Sourcing specialization 2008-2009
Internet is the infrastructure for the crowd
New low-cost collaborative infrastructures — from
free Internet telephony to open-source software to global
outsourcing platforms — allow thousands of individuals
and small producers to co-create products, access
markets and delight customers in ways that only large
corporations could manage in the past. People can contribute
to the “digital commons” at very little cost to
themselves, which makes collective action attractive.
Indeed, peer production is a very social activity.
27© Twynstra Gudde 9-1-2009
ITSM Sourcing specialization 2008-2009
Four principles of Crowd Sourcing
Crowdsourcing is based on four powerful new ideas:
– Openness
– Peering
– Sharing
– Acting globally
28© Twynstra Gudde 9-1-2009
ITSM Sourcing specialization 2008-2009
Being Open
Today, companies that make their boundaries porous to
external ideas and human capital outperform companies that
rely solely on their internal resources and capabilities.
People and institutions that interact with firms are gaining
unprecedented access to important information about corporate
behavior, operations and performance.
29© Twynstra Gudde 9-1-2009
ITSM Sourcing specialization 2008-2009
Peering
Peering succeeds because it leverages selforganization —
a style of production that works more effectively than
hierarchical management for certain tasks.
Its greatest impact today is in the production of software, media,
entertainment and culture.
30© Twynstra Gudde 9-1-2009
ITSM Sourcing specialization 2008-2009
Sharing
Smart firms are treating intellectual property (IP) like a mutual
fund — they manage a balanced portfolio of IP assets, some
protected and some shared.
Of course companies need to protect critical IP. But companies
can’t protect knowledge and should encourage sharing
31© Twynstra Gudde 9-1-2009
ITSM Sourcing specialization 2008-2009
Acting Globally
The new globalization is both causing and caused by changes
in collaboration and the way firms orchestrate capability to
pioneer and produce things.
Winning companies will need to know the world, including its
markets, technologies and people.
32© Twynstra Gudde 9-1-2009
ITSM Sourcing specialization 2008-2009
The Lego Prosumer Community
– One of the earliest, and still most vibrant, prosumer communities has formed around Lego products. Lego itself has become a flagship for how to get your customers deeply involved in cocreating and co-innovating products. Though Lego is perhaps best known for making little interlocking plastic bricks, the company is increasingly focusing on high-tech toys. With Lego Mindstorms, for example, users build real robots out of programmable bricks that can be turned into two-legged walking machines, or into just about anything a teenage mind can envision. When the product first made its debut in 1998, marketing officials were surprised to discover that the robotic toys were popular not only with teenagers but with adult hobbyists eager to improve on them.
– Within three weeks of its release, user groups had sprung up and tinkerers had reverse engineered and reprogrammed the sensors, motors, and controller devices at the heart of the Mindstorms robotic system. When users sent their suggestions to Lego, the company initially threatened lawsuits. When users rebelled, Lego finally came around, and ultimately incorporated user ideas. It even wrote a "right to hack" into the Mindstorms software license, giving hobbyists explicit permission to let their imaginations run wild.
– Today Lego uses mindstorms.lego.com to encourage tinkering with its software. The company benefits hugely from the work of this volunteer business web. Each time a customer posts a new application for Mindstorms, the toy becomes more valuable.
– The Mindstorms experience has proven to be so successful that Lego has transferred its customer-centric development practices to its more conventional Lego brick toys with a service that lets customers design their own custom Lego sets.
33© Twynstra Gudde 9-1-2009
ITSM Sourcing specialization 2008-2009
Crowdsource Design Principles
So how should leaders go about applying the principles of
wikinomics in their businesses? Your planning must allow for
a high degree of learning on your part and the flexibility to
respond to new opportunities that arise out of the interplay
among participants in your business web. Peering is a design
and production innovation, and the firm must learn how to
operate in this new environment.
34© Twynstra Gudde 9-1-2009
ITSM Sourcing specialization 2008-2009
Which Change Colour is dominant?
– For learning, sharing and developing Crowd Sourcing?
Name Yellow Blue Red Green White
Michiel 11 39 10 14 22
Jaime 12 10 35 19 20
Egbert 13 24 24 19 16
Gideon 10 24 24 20 18
Joanmis/Ioannidis 17 24 13 28 14
Ibrahim 17 24 21 19 15
Sofia 16 26 21 23 10
Raage 12 26 23 21 14
Rebin 19 19 24 24 10
Thijs 19 18 16 24 19
35© Twynstra Gudde 9-1-2009
ITSM Sourcing specialization 2008-2009
Which examples do we have together?
– Of crowd sourcing
– In an IT Service Management Environment
36© Twynstra Gudde 9-1-2009
ITSM Sourcing specialization 2008-2009
Tips for building succesfull Crowd Sources
You must:
– Take cues from your lead users
– Build critical mass
– Supply an infrastructure for collaboration
– Take your time to get the structures and governance right
– Abide by community norms
– Let the process evolve
– Hone your collaborative mind
37© Twynstra Gudde 9-1-2009
ITSM Sourcing specialization 2008-2009
The sourcing solutions plotted on this model
Purchasing Risk Is it a standard or a specialized product?
What
is t
he e
xte
nt
to w
hic
h t
he p
roduct
/ s
erv
ice
adds
valu
e f
or
the b
usi
ness
Less
added v
alu
eLa
rge a
dded v
alu
e
Standard Specialized
StrategicLeverage
Bottleneck Routine
Business ProcesOutsourcing
Backofficeoutsourcing
Outsourcingworkplace mgt
Businessdevelopment
Shared ServiceCenters
DataCenteroutsourcingFacilities
outsourcing
Workinnovation
1e generation sourcing 2e generation sourcing
4e generation sourcing
3e generation sourcing
2e generation sourcingCrowd
sourcing
Operationsoutsourcing
38© Twynstra Gudde 9-1-2009
ITSM Sourcing specialization 2008-2009
Dominant change colours per sourcing generation
Purchasing Risk Is it a standard or a specialized product?
What
is t
he e
xte
nt
to w
hic
h t
he p
roduct
/ s
erv
ice
adds
valu
e f
or
the b
usi
ness
Less
added v
alu
eLa
rge a
dded v
alu
e
Standard Specialized
Business ProcesOutsourcing
Backofficeoutsourcing
Outsourcingworkplace mgt
Businessdevelopment
Shared ServiceCenters
DataCenteroutsourcingFacilities
outsourcing
Workinnovation
1e generation sourcing 2e generation sourcing
4e generation sourcing
3e generation sourcing
2e generation sourcingCrowd
sourcing
Operationsoutsourcing
39© Twynstra Gudde 9-1-2009
ITSM Sourcing specialization 2008-2009
All rights reserved. No part of this presentation may be reproduced or published in any form or by any means without the prior written permission of Twynstra Gudde.
Frank [email protected]
www.twynstragudde.nl
Top Related