lecture about sourcing lesson 1

Download Lecture about Sourcing Lesson 1

Post on 01-Dec-2014

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This lecture is the introduction on sourcing in my role as lector on Hanze University Groningen

TRANSCRIPT

  • 1. ITSM Specialization 2008-2009 The principles of Sourcing
  • 2. College schedule
    • Introduction in basic principles of sourcing, sourcing strategy and building a business case
    • Sourcing approach and change management
    • Outsourcing as a solution
    • Shared services as a solution, new ways of sourcing (collaboration and crowdsourcing)
    • The ICT Directing Organization and the case for the learning task
  • 3. Goal and agenda Sourcing lecture one
    • Goal: Introduction in basic principles of sourcing, sourcing
    • strategy and building a business case
    • Agenda:
    • What is sourcing?
    • Sourcing trends
    • Sourcing strategy
    • Building a sourcing business case
  • 4. What is sourcing?
  • 5. Sourcing definition
    • The dynamic planning and organizing of
    • the supporting processes, people,
    • resources and capabilities,
    • needed to obtain
    • the business
    • goals
  • 6. To expoit capacity in a smarter way (smartsourcing) Directing Outsourcing Collaboration
  • 7. Responding to dynamics Riskmanagement Flexible response to changing demand and supply Innovation
  • 8. Diversity in sourcing appearances Collaboration Outsourcing Off shore sourcing Business process outsourcing Shared Services Insourcing
  • 9. The traditional ICT department disappears Directing Change Different competences
  • 10. And sourcing demands for collaboration Other selection methods Openness and sharing Other commitments
  • 11. Sourcing trends
  • 12. Measures in perspective Measures at task level: Stopping investments Orcutting down on current initiatives Measures at a process level: Collaboration and joint investments Measures at a functional level: Concentration, integration, mergers, Take-over or outsourcing Saving potential Short term (0,5-1 year Medium term (1-2 years Long term (2-5 years) Stopping projects Cutting down on training and learning Cutting down on engaging external consultants System optimazation Collaboration regarding purchasing, support, etc. Optimization and standardization of processes Integration, mergers and concentration Outsourcing of parts of the organization Shared Services Centre Full outsourcing Capitalizing effects
  • 13. Trend # 1 now and the coming years
    • Organizing a professional and flexible capacity between demand
    • and supply (smartsourcing and directing):
    • Shortage of ICT specialists requires different ways of organizing capacity
    • Suppliers are not yet sufficiently to realize cost reduction and innovation and ICT must still be delivered at cheaper costlevel
    • Demandside and principals do not fill in their role well
    • ICT has matured and the issue is about functionality instead of the software and hardware
    • There is great need for business frameworks such as architecture, information architecture and governance capacity which can be focussed
  • 14. The ICT organization is under pressure
    • Great need to change themselves, their business and
    • control of suppliers :
    • There are (too) many models and best practices, where do I begin ?
    • Do I have the right people in the house and do I keep them?
    • My business does not understand me and shows very little involvement?
    • I keep getting more work from my supplier charged when we had made good arrangements SLA
    • And then the outstanding incidents, the increasing storage problems and the large implementation project that is likely to fail
  • 15. Budget shift coming years Budget decreases Budget increases Source: Giarte Topmanagement and IT research 2008 Systems integration Purchase / implementation other standardsoftware Management ERP-platform Buy / implementation fysical infrastructure Application mgt exclusive ERP Infrastructure management Custom software development
  • 16. Outsourcing trend coming years Outsourcing decreases Outsourcing increases Source: Giarte Topmanagement and IT research 2008 Outsourcing applicationmanagement Outsourcing desktops/ office equipment / Helpdesk Outsourcing infrastructuremgt Hiring System Integrators for projects Hiring temporary employees
  • 17. Customer satisfaction on major infrastructure management vendors on average average = 57% Outsourcing Performance 2007, Giarte 0 20 40 60 80 100 (%) LogicaCMG IBM Capgemini Getronics PinkRoccade Atos Origin KPN HP CSC T-Systems EDS 60 64 63 62 56 55 55 53 50 50
  • 18. Customer satisfaction on medium-sized infrastructure management is slightly higher average = 68% Outsourcing Performance 2007, Giarte 0 20 40 60 80 100 (%) Schuberg Philis Simac BT Inter Access Other offshore SBS 83 80 73 60 56 55
  • 19. Customer satisfaction on end-user management providers is woefully low average = 47% Outsourcing Performance 2007, Giarte 0 20 40 60 80 100 (%) IBM Getronics PinkRoccade EDS CSC Atos Origin HP 52 50 50 45 44 38
  • 20. Conclusion on trends
    • Sourcing is booming and will a stable trend fot the next decade
    • Outsourcing is considered a major disappointment politely but organizations want still to deal with it as a solution
    • Other forms of sourcing wil play because of disappointment in outsourcing an increasingly important role
  • 21. Sourcing Strategy
  • 22. Three models should be known bij heart
    • The Kraljic purchasing model
    • The IT Management framework
    • The CMMi framework (Services and Acquisition)
  • 23. The Kraljic Purchasing model Purchasing Risk Is it a standard or a specialized product? What is the extent to which the product / service adds value for the business Less added value Large added value Standard Specialized Strategic Leverage Bottleneck Routine
  • 24. The sourcing solutions plotted on this model Purchasing Risk Is it a standard or a specialized product? What is the extent to which the product / service adds value for the business Less added value Large added value Standard Specialized Strategic Leverage Bottleneck Routine Business Proces Outsourcing Backoffice outsourcing Outsourcing workplace mgt Business development Shared Service Centers DataCenter outsourcing Facilities outsourcing Workinnovation 1 e generation sourcing 2 e generation sourcing 4 e generation sourcing 3 e generation sourcing 2 e generation sourcing Crowd sourcing Operations outsourcing