Building an Outsource Competency Profile

Transcription

1 Business Transformation Outsourcing Building an Outsource Competency Profile The Logistics Institute Asia Pacific Singapore 1 December 2003 IBM Business Consulting Services Allen Jacobs

2 Our clients have asked us to help them overcome the challenges of the On Demand Era Demand for faster innovation Relentless cost pressures Synergies extra-enterprise Shift from fixed to variable cost Demand for predictable ROI Step change in operating costs Transformation continues as a key topic on the CEO agenda 2

3 The Market for Transformation We believe the outcome will see the emergence of the on demand business Traditional Business On Demand Business Push Focus BRAND CAPITAL Pull Focus Production Focus HUMAN CAPITAL Customer Focus High WORKING CAPITAL Low High PHYSICAL CAPITAL Low (Outsourced Network) Companies are driving this transformation through horizontal disaggregation and vertical outsourcing 3

4 To be successful, companies must balance near-term strategies with longer-term transformational requirements Strategic Imperatives Near-Term Objectives Longer-Term Goals Illustrative Make business processes more efficient Rationalize infrastructure to reduce costs and increase flexibility Invest in customer research and technology to uncover links between product/service attributes and customer values Regain customer and investor confidence through revised business plans that focus on key strengths and core businesses Free up capital to make strategic investments in the future Reposition (acquiring, divesting, reorganizing) assets to align investment with the most profitable parts of the business Disaggregate the organization to meet the demands of a restructured industry focusing on some variation of brand/asset/support Design a new operating model to suit the requirements of the selected roles Forge and manage key alliances to complete the transformed value chain 4

5 Building a outsource competency profile consists of analysis and facilitated workshops Illustrative Strategic Requirements 1. Collaboration and teaming 2. Customer insight 3. Assembly of products and services 4. Sense and respond with velocity 5. Core competency focus 6. Variability of cost structures 7. Foundation 5

6 Establishing a robust governance model that defines the rules, processes, metrics and organization is critical Senior Executive Relationship Executive Strategic Functional BTO Executive Delivery Executive Operational Business Units Retained Organization Organizational structure Delivery PE Delivery Organ. Effective governance Relationship Joint processes Strategic Direction Governance Principles BTO is truly a business partnership rather than a customer-supplier model 6

7 Key Outsourcing Partner Characteristics Clients should seek outsourcing partners with the full breadth of capabilities required to drive desired outcomes Not a new entrant to the BTO business Experienced in outsourcing Ability to provide clients complete end-to-end transformation Process and industry expertise Global footprint and a technology enabled delivery model Strong insights into emerging process, industry and technology trends Experience in successfully managing large scale transformation Long history of understanding a specific client s issues to jump start the BTO process 7

8 IBM s BTO Offerings Transformational outsourcing requires a holistic optimization of process, applications and infrastructure Strategy Management Processes Operational Processes BTO BTO Portfolio: Finance & Admin Admin Human Human Resources Procurement Customer Care Care Industry Solutions Business Transformation Strategic Outsourcing/H osting Competency Infrastructure Support Processes Applications Consulting/ AMS Competency 8

9 Business Transformation Outsourcing Thank you. IBM Business Consulting Services Allen Jacobs