innovation and outsourcing - nevi procurement day...2017/06/21 · • innovation of outsourced...
TRANSCRIPT
Co-sourcing, Ecosystems and KPIs
Nevi Inkoopdag, 22th June 2017
Bart van der Linden
Theo Bosselaers
Innovation and
outsourcing
Ecosystems
Nice to meet you
Theo Bosselaers,
Canon: contract specialist
WRGL; trainer
E-mail: [email protected]
Bart van der Linden
PhD Candidate Nyenrode
Business University
Founder Source2Innovate
E-mail: [email protected]
Ecosystems
• Introduction
• Platform Outsourcing Netherlands
• Workgroup Innovation
• Co-sourcing
• Introduction
• Case study
• Results
• Ecosystems
• Introduction
• Case study
• Results
• KPI’s
• Q&A
Agenda
• Platform Outsourcing Netherland (PON)
• Started in 2005
• Main objective is to professionalize the Dutch (IT) outsourcing sector with
all stakeholders. Stakeholders are:
• Outsourcers, Service providers, Lawyers, Academics and consulting
firms / professionals
Introduction: background PON
Innovation & IT Outsourcing:
introduction
Can innovation happen after the ink is dry?
‘Creating innovation by outsourcing and
alignment’
Presentation PON (2010)
Background workgroup innovationF
irst
work
gro
up Definition innovation
15 members
3 subgroups
- Optimize IT
- Improve the business
- Innovate the business
Book
Seminar
Scientific paper
Second
work
gro
up Innovation process
20 members
4 subgroups
- Government
- Manufacturing
- Financials
- Rest
Book
Seminar
Article
Third w
ork
gro
up Implementation of
innovation
20 members
3 subgroups
- Co-sourcing
- Ecosystems
- Measurement & KPI’s
Book
Seminar
Scientific paper
Theory: meta-model Innovation pillars
1Dimension of
innovation
Mode of innovation
Market segment of innovation
Impact of innovation
Client of innovation
2Innovation domains
Reason for outsourcing
Phase of outsourcing
Duration of outsourcing
Strategy of outsourcing
Location of outsourcing
3Position IT
organization
Organizational structure
Organizational climate
Organizational culture
4Process models
Modes of collaboration
Innovation process
monitoring systems
5Governance
models
Governance systems
Competences
Leadership
IC1
Innovation
Characteristics
SC2
Sourcing
Characteristics
3OS
Organisational
Structure
4
CPCollaborative
Innovation Process
Go5
Governance
Co-sourcing
Co-sourcing“Outsourcing also now embraces significant partnerships and alliances,
referred to as co-sourcing arrangements, where client and vendor share
risk and reward.” (Hirschheim & Dibbern, 2014)
Co-sourcing: introduction
• Co-sourcing is a joint initiative that, in terms of outsourcing, was initiated
after a period of having an outsourcing relationship.
Examples of Co-sourcing we studied are:
– Business model innovation using IoT (Internet of Things) for the product
portfolio of an manufacturer
– Optimization of the helpdesk-services using A.I.
– Business process optimization by developing smart bins, by Schiphol Next
– Aegon and HCL starting a joint initiative, cXstudio
21-6-2017 11
Cosourcing: introduction
• Cosourcing is a joint initiative that, in terms of outsourcing, was initiated
after a period of having an outsourcing relationship. Examples of
cosourcing we studied are:
– Business model innovation using IoT for the product portfolio of an
manufacturer
– Optimalisation of the helpdesk-services using A.I.
– Business process optimization by developing smart bins, by Schiphol Next
– Aegon and HCL starting a joint initiative, cXstudio
21-6-2017 Pon Werkgroep Innovatie - start werkgroep 12
A collaboration of and
Case:
The contract between Aegon and HCL
21-6-2017 13
• Focus on building the studio
together.
• HCL: designers / developers
• Aegon: product owners, testers,
information analysts.
• HCL takes care of the studio,
workspaces, catering, etc.
• Onshore developers, working with
offshore team was not successful.
Experiences with the contract
• Positive: fixed budget for the studio within which we can
optimize.
• Positive: team culture wins over contracting sides.
• Two Wi-fi’s, two printers etc. so using physical agenda’s for
booking a room.
• Issue: multi-disciplinary optimization hindered by two budgets.
• Issue: balancing focus on costs versus focus on agility.
• Sometimes HCL receives request to pick up work when it’s the
product owners (from Aegon) who didn’t prioritize the work.
• What are the next steps taking into account that IT is becoming
more and more strategic?
Lessons learned
• Co-sourcing is not fully developed yet.
• The cases developed out of an existing outsourcing-relation.
• How to start an initiative:
• Change existing contract: statement of work.
• Traditional tenders for Co-sourcing.
• Outside-in innovation.
• Co-sourcing in different situations
• Innovation of outsourced services i.e. first line helpdesk.
• IT related innovation for the business (i.e. newspaper case).
• Innovation of products: new services for existing products bases on data analytics.
• Success factors
• Incentives must reflect the need for cooperation.
• Align the right stakeholders.
• Teamwork of members of the different organizations is essential including the business.
• Knowledge of business of the partner is essential.
• Necessity of monitor tools (Excel is nog always sufficient).
Ecosystems
Ecosystems“A Business Ecosystem consists of a large number of participants, which
can be business firms and other organizations. They are interconnectedin the sense that they have an effect on each other. Interconnectedness
enables various interactions between the members. These interactions can
be both competitive and cooperative. Together with interconnectedness
they lead a shared fate among the organizations. The members are
dependent on each other, and the failures of firms can result in failures of
other firms”.
(Peltoniemi, 2006)
Case Brainport: ASML as ecosystem connectorintroduction
Ecosystem: introduction
• The concept of IT ecosystems is relatively new
• The following items need to be shared within the ecosystem:
– Objective (e.g. optimization IT landscape or innovation)
– Way of working (e.g. process and platform)
– Shared trust
• Examples of IT ecosystems we studied are:
– Business process optimization by developing smart bins, by Schiphol Next
– Shell’s One IT ecosystem
– FrieslandCampina IT ecosystem
21-6-2017 19
• Goal: promote innovation: we cannot do it ourselves
of members of the ecosystem (FrieslandCampina and IT partners)
Innovation of (out)sourcing strategy and process
Case FrieslandCampina Ecosystem
Shared responsibly Shared approach Shared success
Ecosystems
Case: how to start (planned)
First results
• Collaboration board
• Responsible for initiatives to improve quality in end2end processes and
innovation proposals.
• Same starting points apply for all members
• i.e. IT adds value when users are productive, systems are running, adequately
reaction on changing in business needs, ...
• Monthly meetings
• Focus on eXperience KPI’s
• How does the system contribute tot end2endprocess
• workshops
Case: Governance
• Presence of a lead firm
• Ecosystem connector (facilitator)
• Create executive and management buy-in by all members
• Establish joint vision, targets and rules of engagement
• Create transparency on performance
• Priority initiatives identified collaboratively
• Facilitate joint execution of initiatives
• Celebrate success (show cases)
• Share failures
Case: success factors
• New concept for IT business
• Share and agree on
• Goals (i.e. optimization of IT, cost reduction of innovation
• Way of working (processes, platforms)
• Trust each other (goals, processes, stakeholders)
• Different type of ecosystems
• IT ecosystems for improving e2e services with multiple IT partners:
FrieslandCampina
• IT ecosystems for innovation using IT Innovation lab
• IoT ecosystems for the business (i.e. Schiphol, business ecosystems such as
Brainport – ASML)
Lessons learned
KPI
KPI
How to measure innovation?
• Process KPI’s (i.e. 8 of Mc Kinsey)
• % successful innovations
• Value of innovation is also important
Not easy to establish useful KPI’s
We found out that:
• Measurement in first phases is crucial and difficult
• After business case phase it is business as usual
KPI
First phases: simple 5 W model was successful (based on article Hajdasinski)
• Case: printing company and delivery of newspapers
• What,
• Why,
• Why: TMTM financial model for start-ups
• When (time),
• With whom,
• In What way
Q&A
References
• Hirschheim, R., & Dibbern, J. (2014). Information technology
outsourcing: towards sustainable business value. In Information Systems
Outsourcing (pp. 1-19). Springer Berlin Heidelberg.