Strategy. Strategy. Sourcing. Sourcing. Globalization.Globalization.
Global Sourcing, Value Creation & OpportunitiesGlobal Sourcing, Value Creation & Opportunities
Global Sourcing World Global Sourcing World –– SpecificitiesSpecificities
The Greek Opportunity The Greek Opportunity –– ModalitiesModalities
Global Sourcing World Global Sourcing World –– SpecificitiesSpecificities
The Greek Opportunity The Greek Opportunity –– ModalitiesModalities
Spectrum of Business ModelsSpectrum of Business Models
Spectrum of Business ModelsSpectrum of Business Models
Longevity/ Tenor
Com
plex
ity o
f Pur
chas
ed
Serv
ices
/ So
lutio
nsThird-Party
Group
R&D Co-Investments -Turnkey / JV Models
Shared Services –Interdependent Cost Centers
Shared Services –Independent Cost Centers
Single Focus Captive Cost Centers
Multi-Service/ Solution Collaborative Sourcing – Category Based & Revenue Focused
Multi-Service/ Solution Collaborative Sourcing –Competitive & Efficiency Focused
Standard Service/Solution Sourcing – Efficiency & Cost Focused
Sub-Contracting –Component Focused
GBS
6Source: KPMG, HfS Research 2013; Presented at APOS 2013.
Overview of the GS IndustryOverview of the GS Industry
7Source: Value Notes Research 2013; Presented at APOS 2013.
Overview of the GS IndustryOverview of the GS Industry
8
Overview of the GS IndustryOverview of the GS Industry
Source: Gartner, Everest, Forester, IDC
9
•• U.SU.S & European& European firms looking for higherfirms looking for higher--value capability from Outsourcingvalue capability from Outsourcing
•• Asian & African firms looking for standardizationAsian & African firms looking for standardization
Source: KPMG, HfS Research 2013; Presented at APOS 2013.
Exemplifying A Distinct Buyer BehaviorExemplifying A Distinct Buyer Behavior
10
•• Reduced Focus on InReduced Focus on In--House or Outsourcing per seHouse or Outsourcing per se
•• Emphasis on Hybrid Models, Portfolio Endeavors, Reduced ComponenEmphasis on Hybrid Models, Portfolio Endeavors, Reduced Componentization tization and Endeavor to Move Away from Linear Delivery Modelsand Endeavor to Move Away from Linear Delivery Models
Source: KPMG, HfS Research 2013; Presented at APOS 2013.
And Constant EvolutionAnd Constant Evolution
11
High
Low
Low
IT IT ServicesServices
•Technical support
•ADM (application development and maintenance)
•Systems Integration, Packaged Implementation
•“On-site” Infrastructure Managed Svc (Outsourcing)
•Remote Infrastructure Management (Outsourcing: Desktop, Data Center, Networks)
•Technical Consulting
•Business Consulting
Low HighComplexity of Service Requirements
Business Risk to Customers ConvergenceConvergence
Platform-Based BPM
Host-based Services
Direction of adoptionDirection of adoption
BP BP ServicesServices
•Data Processing Services (e.g. Claims, Check)
Analytics/KPO/R &D/Engineering
•Document Management
•Discrete/Single “Sub”-Process Management and Execution (e.g. Horizontal: HR, Customer Care, F&A, procurement; Vertical: Banking, Telecom, Healthcare)
•Multi-Functional Outsourcing (e.g. Horizontal: HR, Customer Care, F&A,procurement; Vertical: Banking, Telecom, Healthcare)
•Business Consulting
•Functional Outsourcing (e.g. Horizontal: HR, Customer Care, F&A, procurement; Vertical: Banking, Telecom, Healthcare)
•Multi-Tower Outsourcing (Combining BPO with ITO)
Where Convergence Is ImminentWhere Convergence Is Imminent
Global Sourcing World Global Sourcing World –– SpecificitiesSpecificities
The Greek Opportunity The Greek Opportunity –– ModalitiesModalities
Very Transactional &
Discrete
Bulk of Vendors Aspire
to Be Here
Client Needs Vested Here
Convergence Industry Realities
BPO Evolution BPO Evolution -- TransformationalTransformational
Traditional
Hardware Support
Network Consulting
Software Support
Network Integration
Desktop Mgmt
Standard Business Applications
IS OutsourcingUtility
& End-User
Computing
Big Data
Mgmt
Future
Grid Computing
Hosted Unified Comm
s
Standard Business Applications
Vertical Apps
Analytics/ BI Apps
ePortalSelf
Service Apps
Mobility Centric Apps
Storage Services
Security Services
Network Mgmt
Managed Services
SOC
Modern
App Monitoring
App Fine-Tuning
Standard Business Applications
Vertical Apps
Analytics/ BI Apps
ePortals Self Service Apps
Virtualization
TechTech--Centric View to OrganizationsCentric View to Organizations
HR & PDHR & PD
F&AF&A
ITIT
PROCUREMENTPROCUREMENT
SALESSALES
INSURANCEINSURANCEINSURANCE TELECOMSTELECOMSTELECOMS EDUCATIONEDUCATIONEDUCATIONBANKINGBANKINGBANKING
VERTICALVERTICAL--CENTRIC CENTRIC
FUNCTIONSFUNCTIONS
TreasuryBranch MgmtProduct DevInter-BankChannel MgmtPrivate BankCommercialRetailTrade FinanceForex MgmtCredit Lending Revenue MgmtUnderwritingCash MgmtInvestments
E2E Process 1 E2E Process 2 E2E Process 3 E2E Process 4 E2E Process 5
E2E Process 1 E2E Process 2 E2E Process 3 E2E Process 4 E2E Process 5
E2E Process 1 E2E Process 2 E2E Process 3 E2E Process 4 E2E Process 5
E2E Process 1 E2E Process 2 E2E Process 3 E2E Process 4 E2E Process 5
E2E Process 1 E2E Process 2 E2E Process 3 E2E Process 4 E2E Process 5
E2E Process 1 E2E Process 2 E2E Process 3 E2E Process 4 E2E Process 5
TreasuryBranch MgmtProduct DevInvestmentsChannel MgmtClaims ArrearsCommercialRetailForex MgmtCredit ActuaryUnderwritingRevenue MgmtProduct Mgmt
Spend MgmtSecurityNetworks Data MgmtReportingComplianceAudits Inter-BankCentral BankPolicy MgmtNew ProjectsTech ReadinessExpansionsCorp. Mgmt
Spend MgmtSecurityNetworks Data MgmtReportingComplianceAudits RegulatoryPolicy MgmtNew ProjectsTech ReadinessExpansionsCorp. Mgmt
Spend MgmtSecurityReportingComplianceAudits RegulatoryPolicy MgmtNew ProjectsTech ReadinessExpansionsCorp. MgmtRevenue Ass.
TreasuryBranch MgmtProduct DevInvestmentsChannel MgmtBillingCollectionsCorporateRetailForex MgmtBandwidthTechnical NetworksData MgmtInter-Connects
VERTICALVERTICAL--CENTRIC CENTRIC
HORIZONTALSHORIZONTALS
VERTICALVERTICAL--CENTRIC CENTRIC
FUNCTIONSFUNCTIONS
VERTICALVERTICAL--CENTRIC CENTRIC
HORIZONTALSHORIZONTALS
VERTICALVERTICAL--CENTRIC CENTRIC
FUNCTIONSFUNCTIONS
VERTICALVERTICAL--CENTRIC CENTRIC
HORIZONTALSHORIZONTALS
VERTICALVERTICAL--CENTRIC CENTRIC
FUNCTIONSFUNCTIONS
VERTICALVERTICAL--CENTRIC CENTRIC
HORIZONTALSHORIZONTALS
Course ContentEducation Del. Industry-LiaisonResearchStudent MgmtTwinning Prog.Content Rev.Teacher MgmtCapability Rev.PlacementsR&D AwardsProject LiaisonRevenue MgmtGrants Mgmt
Fee MgmtComplianceAuditsRegulatoryPolicy MgmtCampus MgmtBandwidthNetworksTech ReadinessExpansionsPublications
Vert
ical
Spe
cific
ity, S
ecto
r Pr
oxim
ity, C
ompl
exity
VENDOR MGMTVENDOR MGMT
ProcessProcess--Centric View to OrganizationsCentric View to Organizations
Capability
Operating Model
Organization Model
Process Model
People, Skills & Competencies
Tools, Assets & Architecture
Capability Sum Of All Parts, Determining Overall Value IT Can Deliver
Operating Model How IT Function Is Structured
Organization Model How IT Function Is Organized
Process Model Flow of IT Activities Supporting The Operating Model
People, Skills & Human Performance Element, Supporting the Competencies Organization Model
Tools, Assets Knowledge Capital, IT Tools, Architectures And Other Architecture Tangible & Non-Tangible Assets
Demanding Rounded CapabilitiesDemanding Rounded Capabilities
Best in ClassBest in Class -- Shared OwnershipShared Ownership
No Competence No Competence –– Outsource At BestOutsource At Best
CommoditizedCommoditized SpecializedSpecialized
OnshoreIn-houseEmbeddedSpecialty TeamsPerformance-Linked
OnshoreOutsource/ PartnerEntrenched Models Performance-Linked
Onshore & Offshore Process Specialists
Onshore & Offshore Operations Specialists
Dedicated Center, Build Operate Transfer
Joint Ownership, Joint Venture, Acquisition
And Alignment of Models to Business ValueAnd Alignment of Models to Business Value
Traditional
Hardware Support
Network Consulting
Software Support
Network Integration
Desktop Mgmt
Standard Business Applications
IS OutsourcingUtility
& End-User
Computing
Big Data
Mgmt
Future
Grid Computing
Hosted Unified Comms
Standard Business Applications
Vertical Apps
Analytics/ BI Apps
ePortal Self Service Apps
Mobility Centric Apps
Storage Services
Security Services
Network Mgmt
Managed Services
SOC
Modern
App Monitoring
App Fine-Tuning
Standard Business Applications
Vertical Apps Analytics/ BI Apps
ePortals Self Service Apps
Virtualization
ACCESS AUTHORIZATION Controlled, Known, Private Neural, Public, Global, Uncontrolled
Point-to-Point, Controlled, Known
VULNERABILITIES Known, Within N/W Without, Matrix/ Neural, Hi-ExternalitiesWithin/ Without, Matrix, Lo-Externalities
DEVICES Computers Computers, Handhelds Computers, Handhelds, Grids, Inter-Connected devices
ACCESS POINTS Point-to-Point, LAN LAN/WAN, VPNs, Wireless Global N/Ws, Cloud, Matrix, Neural
COMPLIANCE IS Policy, Monitored IS Policy, Monitored, Controls Out-of-Control, Matrix Boundaries
Disruption
Needing Ability to Deal with DisruptionsNeeding Ability to Deal with Disruptions
Step 1 Linear/ Discrete
Step 1 Linear/ Discrete
• Single Revenue Source• Human Resource-Centric• Discrete Service• Operational Nature • Premised on SLA s• Back-Office Aligned• Growth a Fun. Of Volumes
ComplexComplex
SimpleSimple
ToplineTopline
BottomBottom--lineline
Step 2Linear/ Continuous
Step 2Linear/ Continuous
• Single Revenue Source• Human Resource-Centric• Continuous Service• Operational Nature • Premised on SLA s• Back-Office Aligned• Growth a Fun. Of Volumes• Tech. Efficiencies • Process Reengineering etc
Step 3 Linear/ Integrated
Step 3 Linear/ Integrated
• Multiple Revenue Sources
• Function/ Division centric• Continuous Services• Tactical / Vertical Nature • Premised on Outcomes • Back/Mid-Office Aligned• Growth a Fun. Of Value• Tech. Efficiencies • Process Reengineering
etc• End-to-End Outcomes• Bundling Competencies• Perf-Based Pricing
Step 4Non-Linear
Step 4Non-Linear
• Multiple Revenue Sources
• Function/ Division centric• Continuous Services• Vertical / Strategic
Nature • Premised on Outcomes • Client Business Aligned• Growth a Fun. Of Value• Tech, Process Embedded
as Platforms• End-to-End Outcomes• Bundling Competencies,
Channels, Resources• Consulting-Led• Outcome-Based Pricing• Larger Revenues, GBS
Low Client ValueLights-On ApproachCommoditized Global Supply ClutterObsolescence via Tech
FACETS
Medium Client ValueImprove ApproachCommoditized Global Supply ClutterObsolescence via TechScale only View
FACETS
Intrinsic Func. ValuePrice FlexibilityClient Buss AgilityOutcome PursuitsPerformance Goals
FACETS
Vertical Value, GBSBusiness Goals Partner Alignment Bundled SolutioningMarket Orientation
FACETS
Disruptive Technologies &
Practices
Disruptive Technologies &
PracticesSource: Matryzel Consulting Sdn Bhd.
Highly Commoditized, Almost Obsolete
Highly Commoditized, High Pricing Pressure
Almost Obsolete
Complex, Vertical-Aligned High Value
Complex, Vertical-Aligned Transformed High ValueMost Nigerian
Vendor Landscape Doesn’t Even Offer
Services Here
Most Nigerian Vendor Landscape Doesn’t Even Offer
Services Here
And Progressing Up The Value ChainAnd Progressing Up The Value Chain
Personnelcosts
Personnelcosts
Systemscosts
Systemscosts
Facilitiescosts
Facilitiescosts
Personnelcosts
Personnelcosts
Systemscosts
Systemscosts
Facilitiescosts
Facilitiescosts
• Co-location with other facilities• Switch to low-cost locations
• Switch to low-cost locations• Rationalize salary mix within finance staff• Better leverage of high performers within a
larger team• Automation of core processes• Rationalization of services provided via
definition of service level agreement• Continuous improvement / service culture
• Systems rationalisation• Greater process automation• Investment in leading-edge IT capabilities• Maximum interfacing• Consolidated Value from E2E Process
“As is” coststructure
Structural changesin cost base
“To be” coststructure
EconomicValue/savings
realized
Realized by fundamentally changing the cost structure of the funRealized by fundamentally changing the cost structure of the functionction
Emphasizing Economic Value CreationEmphasizing Economic Value Creation
3Cs With Distinct Orientation Around Business Processes Uniting 3Cs With Distinct Orientation Around Business Processes Uniting Technology & OperationsTechnology & Operations
Strategic ZoneStrategic Zone
CostCostCapabilityCapability
CapacityCapacity
YesterdayYesterday
COST IS KING
- Near Term Cost Attributes- Access To Skilled Resources - Effort Oriented, Rather Than Productivity Driven
CapabilityCapability
CapacityCapacity
CostCost
TomorrowTomorrow
COMPOUNDING EFFECT
- Relative Equilibrium Among Sourcing Imperatives- Capability Prominent For Buss. Value Decisions- Greater Client-Provider Collaboration
Through Equal Emphasis on 3CsThrough Equal Emphasis on 3Cs
Traditional View of The Process – Efficiency of a Sub-Process Enterprise-wide View of the Process – Effectiveness of The True E2E Process
End-to-End Service Provisioning Non-Linear Provisioning: Full Life-Cycle Experience
Where Value Is a Function of Both Client Flexibility and Vendor Capability!
And Adopting a Rigorous RoadmapAnd Adopting a Rigorous Roadmap
Focus on Spectrum of VulnerabilityFocus on Spectrum of Vulnerability
Illiterate Youth
Women/ Girl Child/ Disabled
School Dropouts – Primary/ Secondary
People with Jobs
Margin Dwellers – Urban/ Semi-Urban
Laid-Off Employees Unemployed Individuals
Dropouts from Jobs
Relinquished Searching for Jobs
Retirees / 2nd
Career Pursuits
vul·ner·a·ble (vŭl′nər-ə-bəl) adj.
1.a. Susceptible to physical or emotional injury.b. Susceptible to attack: "We are vulnerable both by water and land, without either fleet or army"(Alexander
Hamilton).c. Open to censure or criticism; assailable.
2. a. Liable to succumb, as to persuasion or temptation.
Social & Economic Vulnerability Has Various Causes – Most Driven by Inability to Earn an Income!
indicates relinquished position of vulnerable people when issues remain unaddressedindicates aspirational progression of vulnerable people when hopes drive their movements
Deploy Relevant Impact Sourcing Models Deploy Relevant Impact Sourcing Models
Client IS Intermediary
BoP Employees
ISSP 1
ISSP 1
Intermediary ModelIntermediary Model
Client Established BPO
BoP Employees
ISSP 1
ISSP 1
SubSub--Contracting ModelContracting Model
ClientIS
Intermediary/ SP
Remote BoP Employees
Remote BoP Employees
MicroMicro--ModelModel
ClientPartner IS
Service Provider
BoP Employees
Partner1
Partner 2
Partner ModelPartner Model
Client Partner IS SP (Hub)
Remote BoP Employees
Center 1 (spoke)
Center 2 (spoke)
Direct ModelDirect Model
BoP – Bottom of Pyramid
Emphasizing Impact Emphasizing Impact –– Sustained ValueSustained Value
Source: Matryzel 2010-14
Businesses Aimed for Impact1
Carving out opportunities from various sectors
Create jobs to positively impact “Marginalized” people
- Outsourcing - Banking - Financial Services - Retail - Manufacturing - Government / NGOs
Impact Types Pursued2
- # of Direct Jobs - # and Type of New
Skills - Self Sufficiency - Economic Impact - Indirect Jobs
(Transportation, F&B, Retail)
- Increased Purchasing Power
- Inclusion / Avoidance (Social Unrest, School Dropouts)
- Alignment of Existing Skills to Markets
Direct
Indirect
Sustainability & National Returns 3
- Increased Household Incomes - More “Employable” Individuals - Increased “Employability”- Increased Retention in Tertiary
Education - Local Solutions - Spin-off Entrepreneurial
Opportunities & Sustenance- Reduced Urbanization Woes through
Slowdown of Migration to Urban Fringe from Villages
- Resurrection of Agriculture & Farm Output
- Rationalized Supply Chains - Technology Deployments for Local
Problems
Greater Details Available HereGreater Details Available Here
Source: Matryzel 2010-14
Matryzel’s CEO has recently authored a comprehensive book titled “Humanomics –Making Sense of the Socio-Economic Impacts of Global Sourcing”, published by Author House (www.authorhouse.com), a Penguin Book Company (headquartered in the USA). The book is available online via Google Books and Amazon.
Publishing Details
Author House (Penguin Random House company)
January 2014, 340 pages
ISBN: Paperback (978-1-4918-3834-1) ISBN: Hardback (978-1-4918-3833-4) ISBN: Ebook (978-1-4918-3832-7)
Compliance, Readiness & AmbiguityCompliance, Readiness & Ambiguity: : Neural Networks, Matrix Relationships, Discrete Solutions, Changing Consumer Demands/ Behavior, New Technology Trends (Lifestyle Oriented vs. Reduced Human Intervention/ Controls), Changing Environmental Realities Creates Ambiguity. Security Solutions Need To Learn On-The-Go DISRUPTIVE
22
Security Needs in a Neural & Matrix WorldSecurity Needs in a Neural & Matrix World: : The Ever-Changing Dynamics Around Keeping Information Secure, Enabling Authorized Access In the Face of Multiple PUBLIC Accesses Requires Security to be HOLISTIC, INCLUSIVE, FLEXIBLE and MALLEABLE, with SELF-CORRECTION, SELF-EVOLVING Methods Built-In To Face Onslaughts from Multiple Access Requests (Both Authorized & Unplanned) - DISRUPTIVEand rewards.
11
33 Dealing with ExternalitiesDealing with Externalities: : Readiness For a Future with Externalities Influencing Security, Compliance & Demands from Human Behavior will Determine A Security Solution’s Viability. Fixing Gaps Is Insufficient. While All-Encompassing Solutions Can’t Work when Environments Are Morphing between Silos & Connected.CONVERGENCE will Demand EMBEDDED SECURITY, not As an ADD-ON. DISRUPTIVE
In SummaryIn Summary
Hire the Right People: Hire the Right People: Pursue and hire people who possess topnotch quantitative-analysis skills, can express complex ideas in simple terms, and can interact productively with decision makers. This combination may be difficult to find, so create a peer-to-peer learning environment. Ready-to-deploy skills DOES NOT EXIST!
44
11Champion Model Evolution from the Top: Champion Model Evolution from the Top: Focus on creating value first, before delivering it to end clients. Understand “Buyer” business goals, not just technology or process goals. Offer “continuous” services at the very least to remain relevant. Discrete services no longer exist.
Create a Single Value Initiative: Create a Single Value Initiative: Focus on a single value for client, entrenched either in the Balance Sheet or in Customer measure. SLAs are meaningless without connects to client’s corporate goals. Smart operations and stupid strategies are collectively detrimental.
22
Establish an Analytics Culture: Establish an Analytics Culture: Instill a companywide respect for measuring, testing, and evaluating quantitative evidence. Urge employees to base decisions on hard facts. Gauge and reward performance the same way—applying metrics to compensation and rewards.
33
Strategy. Strategy. Sourcing. Sourcing. Globalization.Globalization.
Bobby Varanasi Bobby Varanasi COP COP I COPCOP--GOV GOV I COOPM COOPM I Chairman & CEOChairman & CEO
Global Powerhouse 25 LeadersGlobal Powerhouse 25 [email protected]@matryzel.com; ; www.matryzel.comwww.matryzel.com
+60.17.379.0215; +1.302.257.0893+60.17.379.0215; +1.302.257.0893