SOE Complex Deal Management - Detecon€¦ · implementation of the ... SOE COMPLEX DEAL MANAGEMENT.PPTX20130313_SP ... Commercial Project Portfolio Management Transition & Transformation

– 1 –We make ICT strategies work

Detecon

SOE Complex Deal Management

© D

etec

on

SO

E C

OM

PLE

X D

EA

L M

AN

AG

EM

EN

T.P

PTX

Content

– 2 –

1 Detecon - Overview

2 Service Offering for Complex Deals

3 Joint teams – joint risks – (Performance-based )package pricing

4 A lean and flexible organization for a volatile business – Capacity reduction through DTC Outtasking

5 Excellent preconditions for a successful outsourcing-year for TSI and DTC

Detecon - Positioning

We are a management consulting company serving the ICT industry with strong capabilities to drive transformation projects in multinational environments.

– 3 –

Expertise ICT industry• 800 consultants employed• Emphasizing share of

“Senior-Consultants” recruited from the ICT industry

Part of DT Group / T-System• Shareholder T-Systems

International GmbH (100%)

International culture• 1/3 of consultants employed

outside Germany• 40 nationalities• Global staffing policy • International Competence

Centers

Global Presence • Branch offices in e.g.

San Francisco, Zürich, Ankara, Abu Dhabi, Bangkok, Johannesburg, Moscow, Peking

• Global project experience

Pragmatic execution oriented

solutions

Global Outside In View

Best fit to work outside Germany

No cash out

Detecon – Value Proposition

Detecon´s Threefold Value Proposition.

– 4 –

House consultancy of choice (combining fresh thinking with internal know-how)

Acceleration of the implementation of the toughest and most critical projects

From strategy and innovation to network and process implementation

Global coverage with a strong hold on emerging markets

ICT management consulting along the value stack (ICT strategy, processes, infrastructure)

Focus on “Advice” before/ during “Plan-Build-Run”

In sectors where ICT is differentiator and on topics where the telecoms sector is leading

Bridging business and IT side with a focus on Major mature topics (migration,

harmonization) Hot topics on process redesign and

business building Emerging topics that change operations

fundamentally In German speaking Europe and following

our customers abroad Local offices cover logical combinations of

sector and function e.g., financial services/ IT (Swiss), internet companies/Innovation (USA), automotive/ high tech (China)…

ICT in Industries & Services

Deutsche Telekom Group

International ICT Companies

11

22

33

Detecon – Service Offerings

Detecon´s Knowledge Landscape.

© D

etec

on

– 5 –

Sectors Functions Perspectives

© D

etec

on

SO

E C

OM

PLE

X D

EA

L M

AN

AG

EM

EN

T.P

PTX

Content

– 6 –

1 Overview





Service Offering for Complex Deals - Management Summary

.In the last years Detecon and T-Systems worked together in several successful outsourcing deals. To boost this relationship and to show our understanding for the increased price pressure within T-Systems, Detecon has developed a service offering system for this services: Pre-defined packages with a clear scope that address the critical success factors of outsourcing deals. Detecon wants to underline its intention to invest in this valuable relationship with a new pricing model: performance-based payments show our investment and our commitment to this partnership.

We also want to improve our collaboration with T-Systems. A closer inclusion of Detecon into the deal process, especially in early phases gives several advantages: with joint outsourcing-communities, T-Systems can fall back on qualified Deteconconsultants when they need them and don´t bear the risk of high fixed costs. Due to the larger portfolio of Detecon, consultants can be assigned in other projects in periods of lower workload. An essential condition for this collaboration is the early exchange of information – ideally through the formation of Tiger teams in early phases of the deal.

– 7 –

What we have achieved together

DTC has proven its measurable impact on deal performance in numerous examples.

SO

E C

OM

PLE

X D

EA

L M

AN

AG

EM

EN

T.P

PTX

2013

0313

_SP

_OU

TSO

UR

CIN

G_V

11 (2

).PP

TX

– 8 –

Commercial Project Portfolio Management

Transition &Transformation PMO

Transition &Transformation PMO for Outsourcing

Transition &Transformation PMO

Transition &Transformation PMO for DSS Outsourcing

E2E T&T consulting for complex deal200 people, 3000 locs,1500 TPAs

Commercial Startup –setup of financial reporting and assurance of governance (zero profit method)

Commercial Management Improvement of Customer result

TPA Transfer for 800 contracts, asset transfer for 5000 CS assetsInvoicing setup

Commercial Management –Claim management improved result

Global CS Transformation lead

© D

etec

on

What we have achieved together: e.on reference case

Detecon contributed significantly to the success of the the e.onoutsourcing deal. The work areas are part of the DTC sourcing offering.

– 9 –SO

E C

OM

PLE

X D

EA

L M

AN

AG

EM

EN

T.P

PTX

Support in all areas of HR Transfer Development of best practice approach

Detecon Work Area

HR Transfer

PMO Lead and support functions for Transformation Program

PMO

Inventory and analysis of 2000 TPAs Transfer or negotiation of all

agreements Align TPA portfolio with TSI

transformation strategy

Third Party Agreement and Asset Transfer

Key Deliverables

Design end-to-end processes from order to delivery and invoicing

T-System’s Benefit

Processes implemented in time according to Client requirements

Management of 7 workstreams and up to 250 project members

E2E status tracking, reporting communication & risk management

Mitigated financial and legal risks in TPAs

High cost saving through active contract management

Faster processing of customer orders and backlog reduction

Improved process maturity to cope with 20.000 orders/month

Design Operational Integrator Process Model

Service Delivery Management Process

>90% of transferred staff stayed with the new employer

No penalties during transformation due to fulfillment of all SLAs

Process Architecture Design and

Implementation

Order-to-Cash Process Optimization Task Force

© D

etec

on

The Detecon complex deal offering

SO

E C

OM

PLE

X D

EA

L M

AN

AG

EM

EN

T.P

PTX

Process Architecture Design and Implementation (Advisory and Workstream Lead)

HR Transfer

Third Party Agreement and Asset Transfer

PMO

Technical T&T Management

Due Diligence

Claim Management

Technical Solution Design

Financial Optimization

IT Service Management

RfP Management Contract &Negotiation

T&T Program Management

Manage the

Opportunity

Manage the Bid Implement the Contract

Transition Operation

TransformationScopeOppor-tunity

Qualify

Oppor-tunity

Design

Solution

Create Propos

al

Close Contrac

tRun

Initialize & Plan Proje

ct

Execute & Contr

ol Proje

ct

CloseProje

ct

Initialize & Plan

Project

Execute &

Control

Project

CloseProjec

t

CMO+ FMOCMO

Implement Contract

In line with the TSI outsourcing approach and within the Detecon service offering, consulting packages with pre-defined scope and deliverables can be designed.

ChangeMgmt

Contractor Mgmt

Communi-cation

Staff Transfer

Billing and

Invocing

Claims and Risk Mmgt

Business Case

ProjectControling

End-to-end consulting approach across all T&T Phases Example Packages

SLA and Compliance

Check

Optimization

Transfor-mation Alignment

Truing Up & Transfer

– 10 – © D

etec

on

© D

etec

on

SO

E C

OM

PLE

X D

EA

L M

AN

AG

EM

EN

T.P

PTX

Agenda

– 11 –






Joint teams – joint risks – (Performance-based )package pricing

DTC is further raising its commitment by offering consulting packages and adjusting pricing models to a clear business case for TSI and Detecon.

© D

etec

on

– 12 –SO

E C

OM

PLE

X D

EA

L M

AN

AG

EM

EN

T.P

PTX

End-to-end consulting approach across all T&T Phases Consulting packages offering clearly defined scope and deliverables Best practice transfer of non-DTAG customers Flexibility in pricing models:

The Time and Material (T&M) model is mainly applied for supporting functions The Fix Price model is of advantage to TSY for project teams The success based Gain Share model forms an attractive option for certain

consulting packages, e.g. for claim management

Packages can be combined with the right pricing

TPA & Asset Transfer

SLA and Compliance

Check

Optimization

Transformation Alignment

Truing Up & Transfer

HR Transfer

ChangeMgmt

Contractor Mgmt

Communi-cation

Staff Transfer

Financial Optimization

Billing and

Invocing


Business Case

ProjectControling

Time & Material

Fixed Price

Gain Share

Joint teams – joint risks – (Performance-based )package pricing: Package Description Financial Optimization

During the Financial Optimization Detecon applies a toolbox of well proven methodsto safeguard the financial fitness of the outsourcing deal.

© D

etec

on

– 13 –SO

E C

OM

PLE

X D

EA

L M

AN

AG

EM

EN

T.P

PTX

Business case development and financial modeling for a profitabel client solution

Ensure Profitability and Transparency according to calculation Guidelines

Analyze and mitigate risks and claims internally and externally

Efficient planning processes and data consistency

Ensure financial/commercial know –how transfer over the whole deal lifecycle

Model business case scenarios and apply weighting Introduction of lean & efficient calculation method Secured interface between budgeting & development Introduction Coherent risk and claim management Ensure consistent billing and inventory with claim

notifications and inventory

The Challenge Our USP: T-Systems Benefit

Project Example / Reference Pricing

Executive Mgmt. slidedeck for (re-) negotiation

Improved customer result through contract claim management.

Customer result improvement through successful customer re-charge claims.

Secured commercial startup and application of the zero profit method for the T&T phase.

based upon KPIs such as

For project support

Time & Material

Fixed Price

Gain Share

For project with defined scope

Customer result improvement Claim value

Organisation A

Organisation EOrg. D

Organisation B

Joint teams – joint risks – (Performance-based )package pricing : Package Description Financial Optimization

Due to TSI’s organizational setup, interrelated topics are currently managed separately. A holistic approach will ensure a close alignment for the crucial work packages.

© D

etec

on

– 14 –SO

E C

OM

PLE

X D

EA

L M

AN

AG

EM

EN

T.P

PTX

Billing and

Invocing


Business Case

ProjectControling

Interfaces are one of the most important success factors for the profitability of an outsourcing deal Organizational gaps must be bridged during the project Interrelated topics must be managed within an

integrated E2E approach

Org. C

Billing and

Invocing


Business Case

ProjectControling

Advantages of the integrated consulting package approach: Clear transformation of business case in T&T budget

and controlling Defined interface between budget and development of

project (completion, risks and claims) Close alignment of risk and claim management to

avoid additional costs Billing and inventory consistent with claim notifications

and inventory

DTC Offering: Financial OptimizationCurrent finance situation in deals

ONE Organisation

Joint teams – joint risks – (Performance-based )package pricing: Package Description HR Transfer

The Detecon Method Framework for HR Transfer ensures mitigation of transition risks and safeguarding operational ability from day one onwards.

© D

etec

on

– 15 –SO

E C

OM

PLE

X D

EA

L M

AN

AG

EM

EN

T.P

PTX

Manage complexity driven by number of providers, countries, headcount and cultural differences

Manage challenges in Second Generation Outsourcing Manage yet unclear cost drivers such as company

pensions: costs/benefits, allowances for pension funds Manage risks in regards to penalty clauses

Ensure Change Management alongside Integration, Communication, Trainings and Knowledge Transfer

Manage the formal HR transfer and support social partners negotiations, resource management, payroll initiation

Off- and On boarding, setting up organizational structure and secure operational ability from Day One

The Challenge

Snapshot Method Framework HR Transition

Input D.Beckert

Input D.Beckert

Secured operational ability from Day One by managing Due Diligence and Contract Negotiations. For project support

Time & Material

Fixed Price

Gain Share


Our USP: T-Systems Benefit

PricingProject Example / Reference

Joint teams – joint risks – (Performance-based )package pricing: Package Description TPA and Asset Transfer

Standardization of the TPA and Asset transfer process into configuration management and financial management tools enables transparent management.

© D

etec

on

– 16 –SO

E C

OM

PLE

X D

EA

L M

AN

AG

EM

EN

T.P

PTX

Identify TPA /Asset transfer stakeholders Ensure commercial and technical documentation Setup transition and transformation process Define the transfer and saving strategy Initiate and monitor strategy execution as agreed Integrate the TPA/Assets within financial/technical tool’s Prepare Assets data for invoicing and service

Transition strategy, process and method Transition Checklists and templates SLA Compliancy Quick Check Model Database and analysis tool (one DB) Risk assessment and risk mitigation plan Transition and transformation execution Within CMDB and financial tools Data ready for invoicing and service

For project support

Time & Material

Fixed Price

Gain Share


For projects with shared commercial risk

Asset transfer of c.a. 7.000 serverand associated agreements

Asset transfer of c.a. 5000 server related components and enabling of invoicing

Executive Mgmt. slidedeck for (re-) negotiation

Asset transfer

Our USP: T-Systems BenefitThe Challenge

PricingProject Example / Reference

Joint teams – joint risks – (Performance-based )package pricing: Summary

Detecon underlines its commitment for a cost-conscious, result-driven deal cooperation across all deal phases.

© D

etec

on

– 17 –SO

E C

OM

PLE

X D

EA

L M

AN

AG

EM

EN

T.P

PTX

End-to-end consulting approach across all T&T Phases -> no loss of know-how at phase transition-> higher accountability for deal phase results -> higher reliability of deal results with lower result

deviation-> better forecasts-> better steering basis for business decisions and for

future investments

Consulting packages offering clearly defined scope, clear deliverables and a clear case for both partner-> higher commitment for results and deal success-> even closer collaboration in joint teams-> result driven deal expenses-> no more slowing and annoying discussions about

DTC as external workforce and approval processes-> more time to focus on the client

Best practice transfer from non-DTAG customers

Detecon added value

© D

etec

on

SO

E C

OM

PLE

X D

EA

L M

AN

AG

EM

EN

T.P

PTX

Agenda

– 18 –

1 What we have achieved together

2 The DTC sourcing offering




A lean and flexible organization for a volatile business – Capacity reduction through Detecon Outtasking

A closer integration of Detecon into the TSI outsourcing/deal community has clear advantages.

© D

etec

on

– 19 –SO

E C

OM

PLE

X D

EA

L M

AN

AG

EM

EN

T.P

PTX

Fixed staff and the challenge of peak demand Extended community with Detecon

Res

ourc

e D

eman

d

Time

Capacity

Unserved Demand =Missed Out Business Opportunities

Decreased quality and customer satisfaction

Idle Capacity =Inefficient Usage

Res

ourc

e D

eman

dTime

Capacity

Basic workload should be covered by internal resources

Peak loads of deal pipe are difficult and costly to handle with fixed resources

Move of the utilization risk to the part of Detecon, can be diversified with external consulting projects

Balanced workforce in deal and transition/transformation phase: no idle time costs for TSI, no lack of resources

Fast onboarding of Detecon resources due to know-how sharing between TSI and DTC via community and amongst DTC consultants

Proven functional and cooperation quality demonstrated in numerous successful deals

No risk of losing know-how/key resources like in one-man freelancer engagements

Higher loyalty and commitment than in freelancer engagements

No legal difficulties and financial risks arising from the classification of freelancer engagement as “Scheinselbständigkeit”

Via Detecon brand and recruiting channel better position in fight for talents

Winning Together Clear Benefits for T-Systems

PyramidA lean and flexible organization for a volatile business – Capacity reduction through DTC Outtasking

The close cooperation model is highly advantageous for T-Systems.

© D

etec

on

– 20 –SO

E C

OM

PLE

X D

EA

L M

AN

AG

EM

EN

T.P

PTX

© D

etec

on

SO

E C

OM

PLE

X D

EA

L M

AN

AG

EM

EN

T.P

PTX

Agenda

– 21 –






Excellent preconditions for a successful outsourcing-year for TSI and DTC

Questions? No? Then: All hands on deck for this years joint outsourcing challenge.

© D

etec

on

– 22 –SO

E C

OM

PLE

X D

EA

L M

AN

AG

EM

EN

T.P

PTX


An even closer cooperation between DTC and TSI in complex deals during deal and transition/ transformation phase offers chances for both partners.

Balanced workforce

Reduced idle time costs

Chance to position as sell-side advisor

Further access to non-captive markets via deals

span networks in other departments

help TSI address budgets in G&A departments

Chance to further improve the DTC industry knowledge

Generating of non-captive reference cases

Advantages for Detecon

Balanced workforce No idle time costs for TSI No lack of resources Fast onboarding of Detecon

resources Proven functional and cooperation

quality No risk of losing know-how/key

resources Higher loyalty and commitment than

in freelancer engagements Via Detecon brand and recruiting

channel better position in fight for talents

Advantages for T-Systems

– 23 –

Balanced workforce in deal and transition/transformation phase -> no idle time costs for TSI, no lack of resources

Fast onboarding of Detecon resources due to know-how sharing between TSI and DTC via community and amongst DTC consultants

Proven functional and cooperation quality demonstrated in numerous successful deals

No risk of losing know-how/key resources like in one-man freelancer engagements,

Higher loyalty and commitment than in freelancer engagements

Via Detecon brand and recruiting channel better position in fight for talents

Coordination of a cooperation model with service level, lead times, contact points, pricing model…

Regular agreements on deal pipe, methodology, know-how sharing, recruiting …

Balanced workforce with reduced idle time costs

Chance to position DTC as sell-side advisor by leveraging the customer deal knowledge, where TSI was not successful in winning the deal

Further access to non-captive markets via deals, base to address consulting budgets in the IT department and to span networks in other departments and help TSI address budgets in G&A departments

Chance to further improve the DTC industry knowledge

Generating of non-captive reference cases for an improved positioning not only in the non-captive but also in the captive market

Frame Template

Advantages for DeteconAdvantages for T-Systems

Necessary investment on both sides and next steps


An even closer cooperation between DTC and TSI in complex deals during deal and transition/ transformation phase offers chances for both partners.

– 24 –

Examples of our vast Outsourcing Experience

Through our various assignments within TSI Outsourcing Deals we know about their challenges and are able to address those at an early stage during Ramp Up activities.

Trademarks displayed are examples of Detecon‘s assignments. List is not exhaustive.

–25

–

E.ON


Various Topics Transforward Process Architecture Design and Implement. HR Transfer Third Party Agreement and Asset Transfer Technical Transformation Order-to-Cash Process Optimization Task

Force And many other topics

Project deliverables / client benefits are highlights out of Detecon’s assignments. List is not exhaustive.

– 26 –

Philips


Commercial Management & Transformation Mgmt.

Phoenix: Provided TSI Executive Management with transparency in financials to steer the contract

Energy: Interim Transformation Management EMEA


–27

–

BP


Commercial Start-Up Setup of financial reporting and assurance

of governance Contract re-negotiation Financial engineering and business case

optimization


–28

–

TUI


Commercial Management & Business Case Redesign

Setup of financial reporting, monitoring and forecasting of T&T and BAU costs

Developed and optimized business case for client negotiations regarding contract prolongation


–29

–

West LB


Commercial Management Further development and optimization of

project planning and project reporting towards deal executives

Review of quality and risk management Business case optimization


–30

–

Valora


Technical Transformation Manage technical transformation for

devices, underlying infrastructure and business applications

Scope of 1.000 desktop workstations


–31

–

Documents

SOE Complex Deal Management - Detecon€¦ · implementation of the ... SOE COMPLEX DEAL MANAGEMENT.PPTX20130313_SP ... Commercial Project Portfolio Management Transition & Transformation