proactive governance driven by data and...

Proactive Governance Driven

by Data and Analytics

Greater Toronto Airports Authority (GTAA)

John AlexisDirector IT Services

Neo Group

Sandeep SureshHead - Research

sig.org/summit

A presentation by GTAA and Neo Group

PROACTIVE [VENDOR] GOVERNANCE DRIVEN BY DATA AND ANALYTICS

JOHN ALEXIS, Greater Toronto Airports Authority (GTAA)SANDEEP SURESH, NEO GROUP

SIG GLOBAL SUMMIT 2017 FLORIDA

SINGULAR FOCUS ON GLOBAL SOURCING LEVERS

SINCE 1999

BY APPLYING

Neo Intellectual Property

Real-TimeAnalytics

Neo ProvenMethodologies

Neo’s ExperiencedAdvisors

Co-Creation w.Clients

© 1999-2017 Neo Group Inc. Proprietary

GLOBAL

TALENT

AUTOMATION ANALYTICS

PROCESS

OPTIMIZATION

WE HELP ACHIEVE RAPID OUTCOMES

BY ADVICING ON LEVERAGING SOURCING LEVERS

NEO GROUPBEYOND ADVICE TO OUTCOMES

Advice with singular focus on global sourcing levers since 1999Automation | Analytics | Global Talent | Process Optimization

2

Toronto Pearson at a Glance

Canada's Largest Airport

2nd Largest International Airport in North America

41 million Passengers Yearly

Growth to 60 million passengers within the next 10-15

years

120,000 Passengers per Day

1400 Flights per Day

40,000 Employees

Accesses more than 60% of the World via Direct Flights

Regional Economic Impact: 6% of Ontario's GDP

© 1999-2017Neo Group Inc. Proprietary

KEY TOPICS COVERED

5

Governance Models• Types of Governance Models• Traditional Governance Tools• Limitations / Risk / Challenges• Information Areas that are Key to Robust

Governance Framework

Data and Analytics• Evolution and Current Scenario

Analytics for Governance• Leverage analytics to derive objective and

actionable insights

Appendix• About Supply Wisdom• How it Works• Risk Framework and Methodology

SECTION I: TRADITONAL GOVERNANCE APPROACH

© 1999-2017Neo Group Inc. Proprietary

Polling Question # 1

Do you have a structured Governance Framework ?

- Yes

- No

© 1999-2017 Neo Group Inc. Proprietary 7

A GOOD GOVERNANCE

- Establishing policies, continuous monitoring of implementation of those policies

- Not about ‘correct’ decisions, but about the best possible process for making those decisions



What does your Governance Framework consists of

a) SLA Metrics Only

b) Combination of SLA Metrics and Market Data


TOOLS IN TRADITIONAL GOVERNANCE


• Cost management

• Optimum value proposition

FINANCIAL MANAGEMENT

• Partner satisfaction

• Strategic alignment

• Risk management

RELATIONSHIP MANAGEMENT

• Compliance and delivery

• Structure, legal documents

• Dispute settlementCONTRACT

MANAGEMENT

• Service quality

• Performance measurement

• Operational efficiency.

PERFORMANCE MANAGEMENT

TOOLSKPI’s• Score cards• Invoice review• Value proposition

management

• Partner satisfaction reviews• Escalation management• Vendor risk assessment

• Contract triggers• Escalation maps

• Quality review• Vendor SLA reports• Regular operational reports.

BUY-SIDE PERSPECTIVE:


- What tools and KPIs are used in typical/

traditional governance models?

- How have they been measured historically?

- What was the experience and are there any case

studies that can be shared?


How satisfied are you with the existing Governance Process ?

a) Extremely Dissatisfied

b) Dissatisfied

c) Neither Satisfied Nor Dissatisfied

d) Satisfied

e) Extremely Satisfied



Subjective Analysis – Risk Assessment is Ignored

Driven by SLAs and Contractual Agreements

Slow and Poor Communication – Reactive Approach

Lack of Autonomy

Lack of Strategic Management – Inability to Adapt to New Technologies

Focus only on Reduction of Costs

Risk is Judged Based on Supplier- Client Relationship

LIMITATIONS AND RISKS OF TRADITIONAL GOVERNANCE MODEL



- What challenges were faced with the traditional approach, and what were the limitations – what was missing?

- How did it impact business outcomes and vendor relations?

- What were the lessons learnt?


Supplier Information

Areas

Financial Metrics

Service Maturity

Governance

Talent

InfrastructureClient

Partnership / Alliance

Thought Leadership

Legal, Compliance &

Reputation

• Margin Pressure • Growth Challenges• Financial Health

• Geographical Footprint• Service / Vertical Line

Performance

• Senior-level exits

• Team Restructuring

• M&A• Malpractice

• Attrition Rates• Learning &

Development• Skillsets

• New Delivery Centers• Physical / Information

Security Certifications

CRITICAL AREAS FOR ROBUST GOVERNANCE FRAMEWORK

• New Client Wins• Client Losses• C-SAT scores

• Development and strengthening of capabilities through partnerships

• Representation in Global Events

• Patent Filing

• Lien & Settlements• Non-compliance• Employee

Satisfaction

SECTION II: DATA ANALYTICS

© 2016 Neo Group Inc. Proprietary

MOST USABLE DATA GO UNATTENDED


DATA GENERATED AT FASTER PHASE

*a unit of information equal to one sextillion (1021) or, strictly, 270 bytes.

0

10

20

30

40

50

60

2012 2013 2015 2016 2020(f)

Stored Data - Zettabytes

0

5

10

15

20

25

30

35

40

2009 2011 2015 2020(f)

Growth of Global Data – Zettabytes*

• Cost of data storage has consistently declined• New sources/channels of data collection/analysis have been created

50 x

THE STORY AT PRESENT


122 130.1

187203

2015 2016 2019(f) 2020(f)

Global Revenues: Big Data and Business Analytics (US$ B)

Banking13%

Discrete Manufacturing

12%

Process Manufacturing

8%

Federal/ Central Govt8%

Professional Services

7%

Others52%

Industry-wise Market Share: 2016

• Global revenues of Big Data and Business Analytics expected to grow at a CAGR of 11.7% between 2016-20

• Total market revenues forecast to reach US$ 203 B by 2020

• Faster adoption of data and analytics

solutions as enterprises realize benefits of data-driven insights

• Banking sector leads with highest spending



- How does the buy-side use and consume data analytics?

- What benefits do buy-side organizations see with leveraging data analytics?

- What are the buy-side challenges and limitations in wide-spread usage of data analytics?

SECTION III: ANALYTICS FOR GOVERNANCE


ACTIONABLE INSIGHTS DERIVED THROUGH ANALYTICS


System of insight will redefine

business in next 5 – 7 years

Measurable shift expected from

product-driven to insights-driven

services

Demand to surge for personalized and actionable

customer insights

Outcome of Big Data Analytics Drives New Governance Model

Descriptive Analysis

Diagnostic Analysis

Predictive Analysis

Prescriptive AnalysisWhat

Happened ?

Why did it Happen?

What will Happen?

How can we make it Happen?

Determine probable future outcome using statistical techniquesLooks at past

performance and

historical data to

look for the reasons

behind past

success or failure

Suggest actionsto benefit from the predictions

Advance analytics

which examines

data or content to

answer the

question “Why did

it happen?”

WHY DOES THIRD PARTY OVERSIGHT NEED DATA ?


Clearer Insights with Visualization

Smarter Decision Making

Better Forecasting

Uncovering Hidden Risks and Opportunities

Rapid Response to Changing Supply Chain Dynamics and Evolving Risks

CASE STUDY - GLOBAL 100 BANK


Two Assessment levels

• Internal : Contract Metrics

• External : Financial Metrics and Negative News

• Monitoring of multiple VMS tools

• Review Cycles : 12 to 24 months

Implemented Ongoing Risk Monitoring

Analytical Tool for 135 critical vendors

Real Time Monitoring

360 view combined contract and relationship metrics with market data on vendor location and industry

Expert guidance and recommendations

CASE STUDY –GREATER TORONTO AIRPORTS

AUTHORITY


Business objectives are met when vendors deliver on their obligations

Credits/penalties are accurately captured and unnecessary fees are avoided

Proactively managing risk ensures mitigation plans are in place

Closely monitored performance assures improvement of service delivery

Well-managed relationships lead to more favorable outcomes

24

Challenge#1 – Actually Manage / Govern our Vendor Ecosystem

Manage, monitor & report vendor performance, spend & risk

Collaborate with stakeholders to jointly manage vendor relationships • Services Partner is responsible for

business outcomes• GTAA remains accountable

Structured Interactions• Documented, On-Record• Action Owners• Timelines/Targets

Basis for Scorecard Reporting • Contract Performance• Risk• Financials

25

Challenge #2 – Consistently Focus on Vendor / Stakeholder

Governance

Vendor Management Vendor Governance

Information

Decisions

Managed

Services

Audit / Compliance

Finance

Procurement /Sourcing

Legal

Vendor Management and Governance (VM&G) Framework

Contract Manager

RelationshipManager

Vendor Management Office

VM Support & Administration

VM&G workflows orchestrate how key stakeholders will work together.

26

Challenge #3 – Understand our Operating Framework

28

Obligation

Tracking

Obligation

Compliance

Contract

Interpretation

Document

Change Management

Obligation Extraction

Change Order or

Contract

Amendment

Governance

2 3 4

5

7

8

6

Issue

Management

Document

Repository

1

?

Challenge #4 – Institute a Framework

29

Challenge #5 – Centralize Data & Implement Tools

Need to be agile in today’s ever-changing business

environment

Need to be flexible, given rapid advancements in technology,

infrastructure and services

Need to build trusted, mutually beneficial partnerships with

vendorsWE

ME

29

Outcome #1 - Achieve our Goals


Enterprises Will Become More Data-Focused

Spending On Cloud-Based Analytic and Big Data Solutions

Will Surge

Predictive and Prescriptive

Analytics Will Gain Traction

• Emphasis on data security to regain momentum

• Disruptive technologies such as Internet of Things (IoT) will drive the surge in structured/unstructured data

• News ways/technologies to analyse data will emerge

• Evolution of “Best Practices” surrounding data

• Potential shortage of professionals skilled in data/analytics oriented technologies

WHAT IS IN STORE

USA 129 Newbury St., Suite 400

Boston, MA 02116, USA

www.neogroup.com

AMSTERDAM, NETHERLANDS

BANGALORE, INDIA

BOGOTA, COLOMBIA

GUADALAJARA, MEXICO

LONDON, UK

NEW YORK, USA

SAO PAULO, BRAZIL

SILICON VALLEY, USA

SYDNEY, AUSTRALIA

JOHN ALEXIS

Director of IT Services

[email protected]

SANDEEP SURESH

Head- Research

[email protected]

www.NeoGroup.com

www.SupplyWisdom.com

[email protected]


THANK YOU!

mailto:[email protected]


http://www.neogroup.com/

http://www.supplywisdom.com/

APPENDIX


DATA AND ANALYTICS: SUPPLY WISDOM


REAL-TIME

GLOBAL

CONTINUOUS

PROVEN

• LEVERAGES PROVEN RISK FRAMEWORK developed by globally recognized experts on proven methodologies and co-created with our clients

• AGGREGATES DATA & APPLIES ANALYTICS in real-time to over 300+ risk elements to assess and alert changes in risks

• ADDS GUIDANCE to deliver key insights as well as trend analysis of risk across suppliers and locations

• CONTINUOUS & REAL-TIME MONITORING enables

faster action with an operations perspective

• CLOUD-BASED DELIVERY eases and automates the process for risk monitoring

CLIENT CO-CREATED PROPRIETARY RISK FRAMEWORK*MOST COMPREHENSIVE IN THE INDUSTRY SINCE 2014

SUPPLIERRISKS

FINANCIAL CLIENTS PEOPLEALLIANCES &

PARTNERSHIPS

SERVICECAPABILITY

GOVERNANCE INFRASTRUCTURE THOUGHT

LEADERSHIP

CITYRISKS

MACRO-ECONOMIC FINANCIAL BUSINESS INFRASTRUCTURE

GEO-POLITICAL LEGAL SCALABILITY QUALITY OF LIFE

COUNTRYRISKS

MACRO-ECONOMIC FINANCIAL BUSINESS INFRASTRUCTURE

GEO-POLITICAL LEGAL SCALABILITY QUALITY OF LIFE

* Patent Pending

Risk Categories

COMPLIANCE &

REGULATORY

SUPPLY WISDOM RISK FRAMEWORK SAMPLE SUPPLIER RISK

METRICS

FINANCIAL

• Key investment, ratios balance sheet,

liquidity, profitability, and

revenue/revenue diversity metrics

CLIENTS

• Acquisition, retention/flight,

concentration, and satisfaction

PEOPLE

• Attrition (overall attrition for the

quarter), new hires, productivity,

utilization, and employee development

& training measures

COMPLIANCE & REGULATORY

• Notices, Actions, Incidents

SERVICE CAPABILITY

• Key talent pool size, quality

certifications, specialized certifications,

operating model, service & vertical

lines, and geographical metrics

10 - Point Standard Risk Rating Scale

Moderate Extreme HighLow

4.0 8.0 100 6.0

35

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JOHN ALEXISDirector of IT Services

[email protected]

SANDEEP SURESHHead- Research

[email protected]

www.NeoGroup.com

www.SupplyWisdom.com

[email protected]

https://twitter.com/hashtag/SIGSpring16?src=hash

http://bit.ly/SIGOrlando



http://www.neogroup.com/

http://www.supplywisdom.com/

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