Global Sourcing, Value Creation & Opportunitiesoutsourcing.ethosevents.eu/wp-content/uploads/sites/5/... · 2014-06-11 · Global Sourcing, Value Creation & Opportunities ... Host-based

Strategy. Strategy. Sourcing. Sourcing. Globalization.Globalization.

Global Sourcing, Value Creation & OpportunitiesGlobal Sourcing, Value Creation & Opportunities

Global Sourcing World Global Sourcing World –– SpecificitiesSpecificities

The Greek Opportunity The Greek Opportunity –– ModalitiesModalities



Spectrum of Business ModelsSpectrum of Business Models

Spectrum of Business ModelsSpectrum of Business Models

Longevity/ Tenor

Com

plex

ity o

f Pur

chas

ed

Serv

ices

/ So

lutio

nsThird-Party

Group

R&D Co-Investments -Turnkey / JV Models

Shared Services –Interdependent Cost Centers

Shared Services –Independent Cost Centers

Single Focus Captive Cost Centers

Multi-Service/ Solution Collaborative Sourcing – Category Based & Revenue Focused

Multi-Service/ Solution Collaborative Sourcing –Competitive & Efficiency Focused

Standard Service/Solution Sourcing – Efficiency & Cost Focused

Sub-Contracting –Component Focused

GBS

6Source: KPMG, HfS Research 2013; Presented at APOS 2013.

Overview of the GS IndustryOverview of the GS Industry

7Source: Value Notes Research 2013; Presented at APOS 2013.


8


Source: Gartner, Everest, Forester, IDC

9

•• U.SU.S & European& European firms looking for higherfirms looking for higher--value capability from Outsourcingvalue capability from Outsourcing

•• Asian & African firms looking for standardizationAsian & African firms looking for standardization

Source: KPMG, HfS Research 2013; Presented at APOS 2013.

Exemplifying A Distinct Buyer BehaviorExemplifying A Distinct Buyer Behavior

10

•• Reduced Focus on InReduced Focus on In--House or Outsourcing per seHouse or Outsourcing per se

•• Emphasis on Hybrid Models, Portfolio Endeavors, Reduced ComponenEmphasis on Hybrid Models, Portfolio Endeavors, Reduced Componentization tization and Endeavor to Move Away from Linear Delivery Modelsand Endeavor to Move Away from Linear Delivery Models

Source: KPMG, HfS Research 2013; Presented at APOS 2013.

And Constant EvolutionAnd Constant Evolution

11

High

Low

Low

IT IT ServicesServices

•Technical support

•ADM (application development and maintenance)

•Systems Integration, Packaged Implementation

•“On-site” Infrastructure Managed Svc (Outsourcing)

•Remote Infrastructure Management (Outsourcing: Desktop, Data Center, Networks)

•Technical Consulting

•Business Consulting

Low HighComplexity of Service Requirements

Business Risk to Customers ConvergenceConvergence

Platform-Based BPM

Host-based Services

Direction of adoptionDirection of adoption

BP BP ServicesServices

•Data Processing Services (e.g. Claims, Check)

Analytics/KPO/R &D/Engineering

•Document Management

•Discrete/Single “Sub”-Process Management and Execution (e.g. Horizontal: HR, Customer Care, F&A, procurement; Vertical: Banking, Telecom, Healthcare)

•Multi-Functional Outsourcing (e.g. Horizontal: HR, Customer Care, F&A,procurement; Vertical: Banking, Telecom, Healthcare)

•Business Consulting

•Functional Outsourcing (e.g. Horizontal: HR, Customer Care, F&A, procurement; Vertical: Banking, Telecom, Healthcare)

•Multi-Tower Outsourcing (Combining BPO with ITO)

Where Convergence Is ImminentWhere Convergence Is Imminent



Very Transactional &

Discrete

Bulk of Vendors Aspire

to Be Here

Client Needs Vested Here

Convergence Industry Realities

BPO Evolution BPO Evolution -- TransformationalTransformational

Traditional

Hardware Support

Network Consulting

Software Support

Network Integration

Desktop Mgmt

Standard Business Applications

IS OutsourcingUtility

& End-User

Computing

Big Data

Mgmt

Future

Grid Computing

Hosted Unified Comm

s


Vertical Apps

Analytics/ BI Apps

ePortalSelf

Service Apps

Mobility Centric Apps

Storage Services

Security Services

Network Mgmt

Managed Services

SOC

Modern

App Monitoring

App Fine-Tuning


Vertical Apps

Analytics/ BI Apps

ePortals Self Service Apps

Virtualization

TechTech--Centric View to OrganizationsCentric View to Organizations

HR & PDHR & PD

F&AF&A

ITIT

PROCUREMENTPROCUREMENT

SALESSALES

INSURANCEINSURANCEINSURANCE TELECOMSTELECOMSTELECOMS EDUCATIONEDUCATIONEDUCATIONBANKINGBANKINGBANKING

VERTICALVERTICAL--CENTRIC CENTRIC

FUNCTIONSFUNCTIONS

TreasuryBranch MgmtProduct DevInter-BankChannel MgmtPrivate BankCommercialRetailTrade FinanceForex MgmtCredit Lending Revenue MgmtUnderwritingCash MgmtInvestments

E2E Process 1 E2E Process 2 E2E Process 3 E2E Process 4 E2E Process 5






TreasuryBranch MgmtProduct DevInvestmentsChannel MgmtClaims ArrearsCommercialRetailForex MgmtCredit ActuaryUnderwritingRevenue MgmtProduct Mgmt

Spend MgmtSecurityNetworks Data MgmtReportingComplianceAudits Inter-BankCentral BankPolicy MgmtNew ProjectsTech ReadinessExpansionsCorp. Mgmt

Spend MgmtSecurityNetworks Data MgmtReportingComplianceAudits RegulatoryPolicy MgmtNew ProjectsTech ReadinessExpansionsCorp. Mgmt

Spend MgmtSecurityReportingComplianceAudits RegulatoryPolicy MgmtNew ProjectsTech ReadinessExpansionsCorp. MgmtRevenue Ass.

TreasuryBranch MgmtProduct DevInvestmentsChannel MgmtBillingCollectionsCorporateRetailForex MgmtBandwidthTechnical NetworksData MgmtInter-Connects


HORIZONTALSHORIZONTALS


FUNCTIONSFUNCTIONS




FUNCTIONSFUNCTIONS




FUNCTIONSFUNCTIONS



Course ContentEducation Del. Industry-LiaisonResearchStudent MgmtTwinning Prog.Content Rev.Teacher MgmtCapability Rev.PlacementsR&D AwardsProject LiaisonRevenue MgmtGrants Mgmt

Fee MgmtComplianceAuditsRegulatoryPolicy MgmtCampus MgmtBandwidthNetworksTech ReadinessExpansionsPublications

Vert

ical

Spe

cific

ity, S

ecto

r Pr

oxim

ity, C

ompl

exity

VENDOR MGMTVENDOR MGMT

ProcessProcess--Centric View to OrganizationsCentric View to Organizations

Capability

Operating Model

Organization Model

Process Model

People, Skills & Competencies

Tools, Assets & Architecture

Capability Sum Of All Parts, Determining Overall Value IT Can Deliver

Operating Model How IT Function Is Structured

Organization Model How IT Function Is Organized

Process Model Flow of IT Activities Supporting The Operating Model

People, Skills & Human Performance Element, Supporting the Competencies Organization Model

Tools, Assets Knowledge Capital, IT Tools, Architectures And Other Architecture Tangible & Non-Tangible Assets

Demanding Rounded CapabilitiesDemanding Rounded Capabilities

Best in ClassBest in Class -- Shared OwnershipShared Ownership

No Competence No Competence –– Outsource At BestOutsource At Best

CommoditizedCommoditized SpecializedSpecialized

OnshoreIn-houseEmbeddedSpecialty TeamsPerformance-Linked

OnshoreOutsource/ PartnerEntrenched Models Performance-Linked

Onshore & Offshore Process Specialists

Onshore & Offshore Operations Specialists

Dedicated Center, Build Operate Transfer

Joint Ownership, Joint Venture, Acquisition

And Alignment of Models to Business ValueAnd Alignment of Models to Business Value

Traditional

Hardware Support

Network Consulting

Software Support

Network Integration

Desktop Mgmt


IS OutsourcingUtility

& End-User

Computing

Big Data

Mgmt

Future

Grid Computing

Hosted Unified Comms


Vertical Apps

Analytics/ BI Apps

ePortal Self Service Apps

Mobility Centric Apps

Storage Services

Security Services

Network Mgmt

Managed Services

SOC

Modern

App Monitoring

App Fine-Tuning


Vertical Apps Analytics/ BI Apps

ePortals Self Service Apps

Virtualization

ACCESS AUTHORIZATION Controlled, Known, Private Neural, Public, Global, Uncontrolled

Point-to-Point, Controlled, Known

VULNERABILITIES Known, Within N/W Without, Matrix/ Neural, Hi-ExternalitiesWithin/ Without, Matrix, Lo-Externalities

DEVICES Computers Computers, Handhelds Computers, Handhelds, Grids, Inter-Connected devices

ACCESS POINTS Point-to-Point, LAN LAN/WAN, VPNs, Wireless Global N/Ws, Cloud, Matrix, Neural

COMPLIANCE IS Policy, Monitored IS Policy, Monitored, Controls Out-of-Control, Matrix Boundaries

Disruption

Needing Ability to Deal with DisruptionsNeeding Ability to Deal with Disruptions

Step 1 Linear/ Discrete

Step 1 Linear/ Discrete

• Single Revenue Source• Human Resource-Centric• Discrete Service• Operational Nature • Premised on SLA s• Back-Office Aligned• Growth a Fun. Of Volumes

ComplexComplex

SimpleSimple

ToplineTopline

BottomBottom--lineline

Step 2Linear/ Continuous

Step 2Linear/ Continuous

• Single Revenue Source• Human Resource-Centric• Continuous Service• Operational Nature • Premised on SLA s• Back-Office Aligned• Growth a Fun. Of Volumes• Tech. Efficiencies • Process Reengineering etc

Step 3 Linear/ Integrated

Step 3 Linear/ Integrated

• Multiple Revenue Sources

• Function/ Division centric• Continuous Services• Tactical / Vertical Nature • Premised on Outcomes • Back/Mid-Office Aligned• Growth a Fun. Of Value• Tech. Efficiencies • Process Reengineering

etc• End-to-End Outcomes• Bundling Competencies• Perf-Based Pricing

Step 4Non-Linear

Step 4Non-Linear

• Multiple Revenue Sources

• Function/ Division centric• Continuous Services• Vertical / Strategic

Nature • Premised on Outcomes • Client Business Aligned• Growth a Fun. Of Value• Tech, Process Embedded

as Platforms• End-to-End Outcomes• Bundling Competencies,

Channels, Resources• Consulting-Led• Outcome-Based Pricing• Larger Revenues, GBS

Low Client ValueLights-On ApproachCommoditized Global Supply ClutterObsolescence via Tech

FACETS

Medium Client ValueImprove ApproachCommoditized Global Supply ClutterObsolescence via TechScale only View

FACETS

Intrinsic Func. ValuePrice FlexibilityClient Buss AgilityOutcome PursuitsPerformance Goals

FACETS

Vertical Value, GBSBusiness Goals Partner Alignment Bundled SolutioningMarket Orientation

FACETS

Disruptive Technologies &

Practices

Disruptive Technologies &

PracticesSource: Matryzel Consulting Sdn Bhd.

Highly Commoditized, Almost Obsolete

Highly Commoditized, High Pricing Pressure

Almost Obsolete

Complex, Vertical-Aligned High Value

Complex, Vertical-Aligned Transformed High ValueMost Nigerian

Vendor Landscape Doesn’t Even Offer

Services Here

Most Nigerian Vendor Landscape Doesn’t Even Offer

Services Here

And Progressing Up The Value ChainAnd Progressing Up The Value Chain

Personnelcosts

Personnelcosts

Systemscosts

Systemscosts

Facilitiescosts

Facilitiescosts

Personnelcosts

Personnelcosts

Systemscosts

Systemscosts

Facilitiescosts

Facilitiescosts

• Co-location with other facilities• Switch to low-cost locations

• Switch to low-cost locations• Rationalize salary mix within finance staff• Better leverage of high performers within a

larger team• Automation of core processes• Rationalization of services provided via

definition of service level agreement• Continuous improvement / service culture

• Systems rationalisation• Greater process automation• Investment in leading-edge IT capabilities• Maximum interfacing• Consolidated Value from E2E Process

“As is” coststructure

Structural changesin cost base

“To be” coststructure

EconomicValue/savings

realized

Realized by fundamentally changing the cost structure of the funRealized by fundamentally changing the cost structure of the functionction

Emphasizing Economic Value CreationEmphasizing Economic Value Creation

3Cs With Distinct Orientation Around Business Processes Uniting 3Cs With Distinct Orientation Around Business Processes Uniting Technology & OperationsTechnology & Operations

Strategic ZoneStrategic Zone

CostCostCapabilityCapability

CapacityCapacity

YesterdayYesterday

COST IS KING

- Near Term Cost Attributes- Access To Skilled Resources - Effort Oriented, Rather Than Productivity Driven

CapabilityCapability

CapacityCapacity

CostCost

TomorrowTomorrow

COMPOUNDING EFFECT

- Relative Equilibrium Among Sourcing Imperatives- Capability Prominent For Buss. Value Decisions- Greater Client-Provider Collaboration

Through Equal Emphasis on 3CsThrough Equal Emphasis on 3Cs

Traditional View of The Process – Efficiency of a Sub-Process Enterprise-wide View of the Process – Effectiveness of The True E2E Process

End-to-End Service Provisioning Non-Linear Provisioning: Full Life-Cycle Experience

Where Value Is a Function of Both Client Flexibility and Vendor Capability!

And Adopting a Rigorous RoadmapAnd Adopting a Rigorous Roadmap

Focus on Spectrum of VulnerabilityFocus on Spectrum of Vulnerability

Illiterate Youth

Women/ Girl Child/ Disabled

School Dropouts – Primary/ Secondary

People with Jobs

Margin Dwellers – Urban/ Semi-Urban

Laid-Off Employees Unemployed Individuals

Dropouts from Jobs

Relinquished Searching for Jobs

Retirees / 2nd

Career Pursuits

vul·ner·a·ble (vŭl′nər-ə-bəl) adj.

1.a. Susceptible to physical or emotional injury.b. Susceptible to attack: "We are vulnerable both by water and land, without either fleet or army"(Alexander

Hamilton).c. Open to censure or criticism; assailable.

2. a. Liable to succumb, as to persuasion or temptation.

Social & Economic Vulnerability Has Various Causes – Most Driven by Inability to Earn an Income!

indicates relinquished position of vulnerable people when issues remain unaddressedindicates aspirational progression of vulnerable people when hopes drive their movements

Deploy Relevant Impact Sourcing Models Deploy Relevant Impact Sourcing Models

Client IS Intermediary

BoP Employees

ISSP 1

ISSP 1

Intermediary ModelIntermediary Model

Client Established BPO

BoP Employees

ISSP 1

ISSP 1

SubSub--Contracting ModelContracting Model

ClientIS

Intermediary/ SP

Remote BoP Employees


MicroMicro--ModelModel

ClientPartner IS

Service Provider

BoP Employees

Partner1

Partner 2

Partner ModelPartner Model

Client Partner IS SP (Hub)


Center 1 (spoke)

Center 2 (spoke)

Direct ModelDirect Model

BoP – Bottom of Pyramid

Emphasizing Impact Emphasizing Impact –– Sustained ValueSustained Value

Source: Matryzel 2010-14

Businesses Aimed for Impact1

Carving out opportunities from various sectors

Create jobs to positively impact “Marginalized” people

- Outsourcing - Banking - Financial Services - Retail - Manufacturing - Government / NGOs

Impact Types Pursued2

- # of Direct Jobs - # and Type of New

Skills - Self Sufficiency - Economic Impact - Indirect Jobs

(Transportation, F&B, Retail)

- Increased Purchasing Power

- Inclusion / Avoidance (Social Unrest, School Dropouts)

- Alignment of Existing Skills to Markets

Direct

Indirect

Sustainability & National Returns 3

- Increased Household Incomes - More “Employable” Individuals - Increased “Employability”- Increased Retention in Tertiary

Education - Local Solutions - Spin-off Entrepreneurial

Opportunities & Sustenance- Reduced Urbanization Woes through

Slowdown of Migration to Urban Fringe from Villages

- Resurrection of Agriculture & Farm Output

- Rationalized Supply Chains - Technology Deployments for Local

Problems

Greater Details Available HereGreater Details Available Here

Source: Matryzel 2010-14

Matryzel’s CEO has recently authored a comprehensive book titled “Humanomics –Making Sense of the Socio-Economic Impacts of Global Sourcing”, published by Author House (www.authorhouse.com), a Penguin Book Company (headquartered in the USA). The book is available online via Google Books and Amazon.

Publishing Details

Author House (Penguin Random House company)

January 2014, 340 pages

ISBN: Paperback (978-1-4918-3834-1) ISBN: Hardback (978-1-4918-3833-4) ISBN: Ebook (978-1-4918-3832-7)

Compliance, Readiness & AmbiguityCompliance, Readiness & Ambiguity: : Neural Networks, Matrix Relationships, Discrete Solutions, Changing Consumer Demands/ Behavior, New Technology Trends (Lifestyle Oriented vs. Reduced Human Intervention/ Controls), Changing Environmental Realities Creates Ambiguity. Security Solutions Need To Learn On-The-Go DISRUPTIVE

22

Security Needs in a Neural & Matrix WorldSecurity Needs in a Neural & Matrix World: : The Ever-Changing Dynamics Around Keeping Information Secure, Enabling Authorized Access In the Face of Multiple PUBLIC Accesses Requires Security to be HOLISTIC, INCLUSIVE, FLEXIBLE and MALLEABLE, with SELF-CORRECTION, SELF-EVOLVING Methods Built-In To Face Onslaughts from Multiple Access Requests (Both Authorized & Unplanned) - DISRUPTIVEand rewards.

11

33 Dealing with ExternalitiesDealing with Externalities: : Readiness For a Future with Externalities Influencing Security, Compliance & Demands from Human Behavior will Determine A Security Solution’s Viability. Fixing Gaps Is Insufficient. While All-Encompassing Solutions Can’t Work when Environments Are Morphing between Silos & Connected.CONVERGENCE will Demand EMBEDDED SECURITY, not As an ADD-ON. DISRUPTIVE

In SummaryIn Summary

Hire the Right People: Hire the Right People: Pursue and hire people who possess topnotch quantitative-analysis skills, can express complex ideas in simple terms, and can interact productively with decision makers. This combination may be difficult to find, so create a peer-to-peer learning environment. Ready-to-deploy skills DOES NOT EXIST!

44

11Champion Model Evolution from the Top: Champion Model Evolution from the Top: Focus on creating value first, before delivering it to end clients. Understand “Buyer” business goals, not just technology or process goals. Offer “continuous” services at the very least to remain relevant. Discrete services no longer exist.

Create a Single Value Initiative: Create a Single Value Initiative: Focus on a single value for client, entrenched either in the Balance Sheet or in Customer measure. SLAs are meaningless without connects to client’s corporate goals. Smart operations and stupid strategies are collectively detrimental.

22

Establish an Analytics Culture: Establish an Analytics Culture: Instill a companywide respect for measuring, testing, and evaluating quantitative evidence. Urge employees to base decisions on hard facts. Gauge and reward performance the same way—applying metrics to compensation and rewards.

33

Strategy. Strategy. Sourcing. Sourcing. Globalization.Globalization.

Bobby Varanasi Bobby Varanasi COP COP I COPCOP--GOV GOV I COOPM COOPM I Chairman & CEOChairman & CEO

Global Powerhouse 25 LeadersGlobal Powerhouse 25 [email protected]@matryzel.com; ; www.matryzel.comwww.matryzel.com

+60.17.379.0215; +1.302.257.0893+60.17.379.0215; +1.302.257.0893

Documents

Global Sourcing, Value Creation & Opportunitiesoutsourcing.ethosevents.eu/wp-content/uploads/sites/5/... · 2014-06-11 · Global Sourcing, Value Creation & Opportunities ... Host-based