managing collaborative supply chains for the digital enterprise
TRANSCRIPT
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Friday July 7th 2017
- for the Digital Enterprise
Managing Collaborative Supply Chains
Presenter
Adrian Quayle
2
How Did We Get Here? Our Outsourcing Journey
• Services Outsourcing (IT) began as ‘Facilities Management’ in the 1960s and rapidly grew,
• Today’s Outsourcing Industry leverages “technology, process & people” to where it is a global industry with revenues over $10+ trillion dollars,
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Digital Enterprise
Enterprise Digital Transformation
Initiatives involve executives other
than the CIO
Executives undergoing formal digital
transformation efforts in 2017
Customer Driven Enterprise Value Chain
Business Processes automated by
transformation-focused
organizations in 2016
Traditional Value Chains
Analog Speed
Digital Enterprise Value Chains
Digital Speed
Source: Altimeter Group and MIT Sloan
88%
78%
59%
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What is driving Governance Transformation?
Evolving Buying Behaviour
Analytics &
Decisions
A new breed of
Suppliers
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02
03
Demand for Digital
Transformation
Focus on Business
Outcomes
Increased Risk &
Regulatory Compliance
06
07
08
Value Optimization
05
04
New Delivery Models
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What is Changing ?
Contract Structure & Management• Standard, shorter and simpler contracts
• Zero Cost and Gain Share Models
• Linked to business capabilities
• Focused on partnership, not services
• Limited operational T&Cs and D&Os
Performance Management• Business metrics measurements
• Simpler reporting /meeting driven approach
• Shared metrics for a single service chain
• Simpler validating and verifying of SLAs
Financial Management• TCO pricing models
• Increased complexity in pay as you use model
• Automated pricing and reporting
• Pricing traceable to specific, tangible deliverables
• Fixed price model for post-design work
Relationship Management• Business driven connected with outcomes
• Control over deliverables, intellectual property, and future
direction of the software and solutions
• Mature project management & delivery
Risk Management• Policy Development to manage technology
• Increased Data & operations risks
• One sided supplier contracts
• Easy entry and exit of suppliers
• volatile supplier ecosystem
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Benefitting from Standards
• Guidance on Outsourcing ISO 37500:2014
o Providing a common reference structure
(language) across the supply chain
o enable mutually beneficial collaborative
relationships
• Collaborative business relationship
management ISO 44001:2017
o Enables verifiable relationships best
practices
o Facilitates ‘win – win’ between organisations
across the supply chain
Source ISO 2014 and 2017
Consortia
Eco systems
Alliances
Partnering networks
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The Result: Business value driven Governance
• Increased Revenue
• Optimal ROI
• Better
• customer experience
Innovation Efficiency Performance
• Applied Innovation
• Competitive Advantage
• Allow for fast transitions
• Improved cycle times
• Cost optimization
• Business centric
• Predictive, proactive,
• leverage trends
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• The increasing focus on business outcomes and
new business transformation initiatives such as
digital are presenting significant challenges to
realizing the value of sourcing
• Traditional governance practices are inadequate
to Manage Ecosystems of Relationships in the
New Digital Enterprise
• Vendor management staff are going to need
strategic perspective, new skills, and greater
understanding of end-to-end, multi-provider
service processes
Closing Thoughts
Empowering Beyond
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