BPO: A Transformational StrategyDaikin U.S. Sales Meeting, Dallas TX, June 7-8, 2005
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Definitions
DEFINITION: Business Process Outsourcing occurs when an organization turns over the management and optimization of a business function, such as accounts payable or purchasing, to a third party that conducts the activity based on a set of predetermined performance metrics. – Computer World
DEFINITION: - Transformation a : to change in composition or structure b : to change the outward form or appearance of c : to change in character or condition: - Webster’s
Trend: BPO Market will grow to 146 billion dollar industry by 2008 - Forrester
Daikin U.S. Sales Meeting, Dallas TX, June 7-8, 2005
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Cost Containment – Delivering Lower Unit Cost
Processing Flexibility That Adapts to Business Direction & Strategy
IT solutions That Support And Deliver The Business
Adding Functionality Without Complexity
* Have These Really Changed Over The Years?
Daikin U.S. Sales Meeting, Dallas TX, June 7-8, 2005
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Better Delivery – Products & Services
Better Processes – Streamlined & Clean
Lower Costs – Business & IT
Consolidation – Fewer Moving Parts
Increased Share Holder Value
Business First – Technology Second
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Legacy /
Business
Transformation
Outsourcing (BPO)
Business Processes
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BPO Is A Transformation Strategy
Transformation Is About Change, It’s Not Repeating Or Replicating Today’s Limitations & Issues
BPO Is Transformation
Delivers Better Processes – Facilitates Today's Business Objectives, Best Of Breed
Delivers Modern Applications – No More Piecing Together Disparate Packages
Delivers End To End Well Configured Components – Common Look and Feel Across All Products
Delivers Time To Market and Lower Cost
Daikin U.S. Sales Meeting, Dallas TX, June 7-8, 2005
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BPO Is a Bundled Approach To Transformation – Processes, Technology, Service & People
Legacy Applications Are So Intertwined Within A Company’s Infrastructure That Change Becomes More Difficult And More Expensive
BPO Strategy Focuses On Core & Non Core Functions By Bundling Technology, Business Process Improvement, Re-Engineering And Productivity Improvements Implemented As A Program In One Box
BPO Transformation Is A fundamental Change From Legacy Business Problems And Legacy Applications To Best Of Breed Business Processes And Modern Technology Platforms
Daikin U.S. Sales Meeting, Dallas TX, June 7-8, 2005
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Conventional Outsourcing
BPO Transformation
Isolates – Delivers Some Degree Of Control
Executes Legacy Business Processes
Delivers Higher Performance – Specialized Company
Reduces Non Core Functions From The Business To Provide A Single Release Of Capitol
Business Focus – Business Driven
Deliver Confidence – Manages Risk
Delivers Higher Performance & Economies Of Scale
Business Transformed Enabling Sustained Savings & Sustained Value
Daikin U.S. Sales Meeting, Dallas TX, June 7-8, 2005
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BPO Transforms When:
You Derive Value From Every Aspect Of The Business – Not Just An IT Solution
Deliver The Business Consistently Across Products – Fewer Resources Required
Business Processes Align With Business Objectives
Legacy Maintenance No Longer Stifles Business Growth
Business Results Are Improved
BPO Is Less Effective When:
Outsource The Business, Focused Only On The Savings From Labor Arbitrage
Haven’t Driven Savings From All Aspects Of The Business
Replicate The Deficiencies Under The Management Of Others
Viewed As A Technology Solution
You Haven’t Positioned Your Business For Growth And Business Results Are Not Self Evident
Daikin U.S. Sales Meeting, Dallas TX, June 7-8, 2005
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The Current Budget Paradigm Does Not Support Growth
Budget Dollars Are Consumed By Maintaining The Business
Application Maintenance
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