business transformation outsourcing © 2005 ibm corporation service science march 2005
TRANSCRIPT
Business Transformation Outsourcing
Service Science © 2005 IBM Corporation
Service Science
March 2005
Business Transformation Outsourcing
© 2003 IBM Corporation2 March 2005
Improved capability to win new and high-value deals
Improved contract profitability due to better deployment of skills
Improved client satisfaction due to improved domain expertise
Reduced delivery risk and improved deliver capability
Significant improvement to retain talent and create lock-in
Market differentiator for IBM as the employer of choice
Business Benefits
Stakeholder BenefitsCustomer Employee Stakeholder Environment
Satisfaction Enhanced SAT due to continuity of key personnel
Improved quality of service delivery (Domain Expertise and Customer Insight leading to Partnership vs. vendor)
Enhanced skills to perform job better, easier
Improved clarity in career progression
Gain reputed academic credentials
Improved Ability to win high-value deals
Employer of choice – ease in attracting and retaining talent
Win-Win between Academia and Business needs
Productivity Improved productivity Right-skilled to drive process productivity
Improved Domain Expertise to drive business metrics (Big “Y”)
Increased productivity
Retain key employees
Deploy right skill sets
Competitive advantage in the market
Business Transformation Outsourcing
© 2003 IBM Corporation3 March 2005
GoalsCreate a platform for Service Science
to improve contract profitability, delivery efficiency and cost optimization
Integrate Service Science with PDF to deliver maximum benefits
Learning threads with curriculum maps
Framework/roadmap and plan for development of curriculum
Completion Criteria
Multi Generation Plan (MGP)
MGP 1 (Sep 2005) MGP 2 (July 2005) MGP 3
Services Sciences for BTO
Create Learning Threads & Service Science Curriculum Map
Develop Model for Prioritizing Service Science Development
Create plan for L&K to develop Service Science Curriculum
Interlock with IBM Research & external agencies to evolve Service Science for BTO
Establish and institutionalize Service Science for BTO
Business Transformation Outsourcing
© 2003 IBM Corporation4 March 2005
Business Benefits - $ Benefits
Category Operational Definition Base Case Improvements Benefits Assumptions
AttritionImprove productivity, increase through put 90 Mn 0.50% 450000
18 M $ for BLR BTO, that is 20% of total BTO Cost
SkillsAlign skills to the job to increase profitability 90 Mn 0.50% 450,000
18 M $ for BLR BTO, that is 20% of total BTO Cost
Hiring CostReduced hiring and training costs 15 Mn 2.00% 300,000
Reduce by 20% on the current attrition
1.2 Mn
Cost Avoidance
Revenue Growth
Total Benefits ($)
External Productivity
Internal ProductivityWork In
Progress
Work In Pro
gress
Business Transformation Outsourcing
© 2003 IBM Corporation5 March 2005
Our Approach
Create Learning Threads
Model for Prioritizing
Service Science Development
Create plan for L&K to develop Service Science
Curriculum
• Create framework for identifying Learning Threads
• Agree Learning Threads with stakeholders
Create Service Science
Curriculum Map
• Develop Meta Tag framework• Map Service Science curriculum• Map Learning Threads and Service
Science curriculum
• Create Model for prioritizing Curriculum development
• Agree on model for prioritization
• Based on priority and need, develop detailed plan for development and deployment
1 A
2 3
1 B
Business Transformation Outsourcing
© 2003 IBM Corporation6 March 2005
Create Learning Threads
Identify and confirm the threads for dimensional and functional capabilities/skills
Level 1 Level 2 Level 3 Level 4 Level 5 Level 6Demonstrates with regular supervision:
Demonstrates with moderate supervision:
Demonstrates with limited supervision:
Demonstrates with minimal oversight:
Demonstrates independently: Demonstrates with thought leadership:
0.1
Performed basic research and analysis of simple problems, organizing information in an understandable manner
Broke down business process problems, and developed effective analytical solutions
Developed and implemented effective analytical solutions to complex problems within a process area
Applied process knowledge and prior experiences to systematically break down complex multi-dimensional problems into components, recommend alternatives, and develop analytical solutions to solve these problems.
Achieved recognition as a subject matter expert in process transformation outsourcing and applied knowledge to resolve issues across the organization
Achieved recognition as subject-matter expert and thought leader outside own region, and as a leader in the external marketplace
0.2
Demonstrated understanding of the requirements of customer contract (SLA) as it related to role, and ensured commitments were met in a timely manner when responding to client requests
Applied understanding of the customer contract (SLA) (short term and long term contract obligations) to consistently meet expectations and respond to client requests as they related to the process
Recognized and addressed the need for customer contract (SLA) changes to activities and drivers, and escalated appropriately
Detected problems that affected customer contract (SLA) well in advance of a serious problem or risk occurring, analyzed and documented potential solutions, and presented recommendations for improvements.
Consistently managed client expectations, ensured delivery of highest quality service in accordance with the customer contract (SLA), and recognized contract business drivers across processes
Acted as trusted and broad-based business advisor to senior level client management
0.3
Understood the purpose of established internal and client controls and documented processes
Identified potential gaps in controls and common processes, and understood the implications of non-compliance
Proposed possible solutions in areas of non-compliance and potential gaps in service delivery, to provide an effective control environment for clients and business transformation outsourcing
Recommended or initiated enhancements to controls and common processes, and guided and mentored team members in their use.
Reviewed and revised the suite of controls as changes to internal/external clients occurred or new clients were added, and provided recommendations for creating or changing existing controls and common processes
Challenged and revised the suite of controls provided across industries, geographies, and clients, and recognized for standardizing processes or replicating solutions across processes
Current Level Desired Level
Create Learning Threads
1 A
Business Transformation Outsourcing
© 2003 IBM Corporation7 March 2005
Evolve a system of meta tags to organize existing curriculum
– Process transformation_basic_number
– Process transformation_intermidiate_number
– Process transformation_advanced_numberSample
Sample
Evolve Tagging systemCreate
Curriculum Map
1 B
Business Transformation Outsourcing
© 2003 IBM Corporation8 March 2005
Map Learning Threads & Curriculum
Learning Threads
Basic Intermediate Advanced
LT1: Customer Relationship
Course 1
Course 2
Course 3
Course 1
Course 2
Course 3
LT2: Process Transformation
Course 1
Course 2
Course 3
Course 1
Course 2
Course 3
LT3: Content Management
Course 1
Course 2
Course 3
Course 1
Course 2
Course 3
LT4: Compliance & Controls
Course 1
Course 2
Course 3
Course 1
Course 2
Course 3
Identified Gaps
Sample
Sample
Create Curriculum
Map
1 B
Business Transformation Outsourcing
© 2003 IBM Corporation9 March 2005
None
CompleteLearning and Knowledge
Service Science
Incorporate
Quick Hit Refine L&K New
Out of Scope
Input for prioritization
Priority for Development – Step 1
Plot each course that needs to be developed in the graph below
Complete
None
Model for Prioritizing
2
Business Transformation Outsourcing
© 2003 IBM Corporation10 March 2005
Priority for Development – Step 2
Plot each course that needs to be developed in the graph below
High Impact
Low Impact
Easy to ImplementHard to Implement
Curriculum & Course Ready
Minimal ‘e’ effort
Course To be developed and created
Stakeholders pain area
Early impact on the ground
Not an immediate need
Start Here
Quick Wins
Model for Prioritizing
2
Business Transformation Outsourcing
© 2003 IBM Corporation11 March 2005
Develop plan for development
Align with L&K and IBM research to evolve a development map
– Based on prioritization, available material, impact and cost of development
– Resources available
Develop deployment plan
– Align with stakeholders to deploy the curriculum
– Utilize the PDF platform and network for the deployment
Create plan for
Development
3
Business Transformation Outsourcing
© 2003 IBM Corporation12 March 2005
Proposed planCreate plan
for Development
3
Business Transformation Outsourcing
Service Science © 2005 IBM Corporation
Thank You