Leveraging Delivery Models for Efficiency - Smart Sourcing

Transcription

1 Judy Kon 10 Nov 2010 Leveraging Delivery Models for Efficiency - Smart Sourcing

2 Discussion points CFO as Value Integrators Smart Sourcing as an enabler for driving efficiency Matching smart sourcing options to your business needs Client Examples of Smart Sourcing Options What s next? 2

3 Value Integrators drive broader improvements in data and analytics, process and people. Technology underpins the efficiency improvements all of these What do Value Integrators do differently? Streamlined information delivery % more 32% Electronic data capture at the source Systematic data cleansing and auditing Business Risks in Performance Reporting Employed Functional Best Practices Utilized automated workflow tools Measurement & monitoring of processes Common reporting platform Common planning platform 35% 31% 22% 31% 25% 41% 31% 22% 0% 20% 40% 60% 80% Percent Adopted 100% Disciplined Operators Constrained Advisors N = 1,454 to 1,469 Note: Defined as those enterprises selecting [5] To a very large extent or [4] on a 5-point scale where [5] To a very large extent and [1] Not at all Source: IBM Institute for Business Value, The Global CFO Study 2008, Value Integrators

4 Smart sourcing can be both an IT strategy and a business strategy, providing a platform for future growth Essential activities Reduce the right costs Transition from fixed to variable costs Drive process automation Implement strategies to reduce risk Identify and focus on key customers Market to growth areas Invest in ways competitors won t How outsourcing delivers Enables companies to offload high-cost, non-revenue producing activities Facilitates the removal of poorly utilized assets and the acquisition of pay-per-use services Increases access to automated services, eliminating the need for and cost of do-it-yourself initiatives Helps lower the risk of data loss and system outages that can disrupt business and damage reputations Provides access to value-added services that improve companies brand and portfolio Extends companies reach to include prospects in developing nations and new markets Bolsters companies confidence through improved performance and support 4

5 Growth Rate We can see large improvements in growth rates of key financial indicators in companies that undertakes sourcing 12% 11% 10% 9% 8% Business impact of outsourcing comparison for industry sector peers 48% Better Performance 9.8% 64% Better Performance 11.0% Annual Growth Rates for Non- Outsourcers Annual Growth Rates for Outsourcers 7% 6% 5% 6.9% 42% Better Performance 6.6% 6.7% 4% 3% 4.0% 2% 1% 0% SG&A Growth (lower is better) Operating Income Growth EBT Growth Source: 2010 Business impact of outsourcing a fact-based analysis, IBM, January

6 You can take advantage of a number of different sourcing models based on your business requirements Staff Augmentation Task/RFP-based Statements of Work Volume purchase agreements Out-Tasking Project integration Standard terms and conditions Multi-year, bottomline contract Forward pricing Outcome-based Co-Sourcing Knowledge transfer Managed skills Service Level Agreements (SLAs) PMO/governance Some transfer of management responsibility to vendor Portfolio Outsourcing Outcome-based SLA-based Application rationalization Access to expertise, skills and innovation Shared investment in dedicated resources Option for FTEs to transfer to vendor Cloud Computing Highly standardized, virtualized environment Rapid provisioning, self-service user access Scalable Can include private, public or hybrid delivery models May include elements of pay as you go Full Outsourcing Strategy Integration Custom terms and conditions SLA/shared riskreward PMO/governance Leverage IBM infrastructure investments Access to expertise, skills and innovations Greatest benefits realization Access specific skills Transfer skills and knowledge Turn over skills and infrastructure 6

7 A service-oriented approach for Managed Hosting Services provided this customer, improvement in technical support & operational efficiency. International Logistics company in Singapore 7 Client Challenges The client was unhappy with the service provided who was not meeting SLA. They were consolidating their data center across AP and refreshing their hardware. They had multiple SLA, platforms and vendors to manage. Therefore they wanted to streamline their IT operations and vendors. Solution IBM proposed the use of virtualization technology to help the customer perform server consolidation and provided serviceoriented charges/ mechanism so that business and IT planning, forecast, etc could be made easier and more manageable. Also offered a stringent SLA coupled with service credit mechanism to penalize and reward SLA achievements The hardware components were incorporated into a total outsourcing project and offer this option as a complete service model with utility charges. In addition, virtualization technology was incorporated to help with consolidation and utility based charges were provided to help the customer to drive business more efficiently. Benefits The client now has the infrastructure management services and tools it needs to streamline its IT operations; and also improved technical support capabilities for better operational efficiency. Client: One of the leading international providers of integrated logistics services in ASEAN

8 ABB utilizes GTS managed services to reduce risks in data center environment and realized long term costs savings Power Company in Australia Client Challenges ABB was facing substantial risks in their data centre environment (e.g. temperature control, air-con full capacity operations, space limitation, high cost in power consumption etc) These challenges could not satisfy current operations and future business growth. Solution GTS provided consultant services for relocation planning and implementation. The team also build new machine room with customized cabling, power supply during the relocation project, and provide managed server services at the first year and transforming to the full operations outsource in 5 years. Benefits Provided the client with high reliability and the shortest down time relocation services. Worked within clients budget limited and enabled cost savings in the run long Client: ABB is a leader in power and automation technologies that enable utility and industry customers to improve their performance while lowering costs. 8

9 A major financial services provider improves its enterprise-wide development processes with IBM s Smart Business Desktop Cloud A major financial services company in Australia 9 Client Requirements This customer success is largely attributed to its ability to provide quality and innovative tools and platforms to their financial advisers. With the shrinking pool of available development resources, securing access to development resources became a business priority. They wanted to engage a robust service partner to implement a new IT infrastructure that would best support their expansion and its requirements for a distributed team of developers, testers and users. Solution IBM Global Technology Services came in to help them plan, design and implement IBM s innovative and unique IBM Smart Business Desktop Cloud. The solution had to be integrated with the company s existing VMware environment and be deployed with their XenDesktop Broker and Solution Overlay, basically providing the customer with an overall solution package for their end user framework that is both flexible and efficient to manage. Benefits The client is very pleased with the services delivered and how IBM was able to secure a development environment for the company s dispersed developers, testers and users across the world. Now, the company enjoys: Improved access to resources anywhere, anytime. Lowered maintenance and support costs through remote desktop management and user support. A flexible and scalable infrastructure to support the peaks and troughs of resource demands. Client: One of Australia's largest financial services groups and a recognized leader in the investment administration industry. The company currently has more than 5,000 financial advisors and manages over $40 billion of superannuation, retirement and investment savings for more than 400,000 investors.

10 Mumbai International Airport streamlines IT operations when it engages GTS to provide centralized Help Desk Services for its data center Airport in India Client Challenges The client was unhappy with the service provided by its existing IT provider who has weak infrastructure management services. Needed a services vendor to streamline their IT operations Solution MIAL engaged GTS End User Support Services to provide management and end-user support at airport terminals, corporate/ project and airline staff. GTS provides support for the client s data center and network through a centralized help desk service. The services is supported by the Network Operation Center- Inside (NOCi) tool, which is used for call logging, call monitoring and asset management processes. A total of 65 GTS staff manage and monitor MIAL s data center and take care of the SLA commitments Benefits The client now has the infrastructure management services and tools it needs to streamline its IT operations; and also improved technical support capabilities for better operational efficiency. Client: Mumbai International Pvt. Ltd (MIAL), is a joint venture airport management company in India that manages the Chhatrapati Shivaji International Airport in Mumbai. The airport caters to more than 40 million passengers annually. 10

11 Build a Strategic Partnership with IBM - Benefits Reduce cost and risk, conserve cash, and enable innovation Actions to take: Sponsor a C-Level Workshop Determine areas of partnership Agree on solution options and business model Start reducing risk and conserving cash NOW How IBM can help: Take cost out of your IT Back-office: + Considerable flexibility / security benefits Take cost out your Business Back-Office: + Considerable cash conversion improvement Put the best Research Organization in the world on your toughest problems Fuel hedging, telco revenue leakage, steel slab manufacturing Shift Capex to smooth monthly Opex Hardware, Software, and Services paid over 3+ years Reduce IT investment risk Business models that vary IT spend with business performance Access world-class skills when and where you need them Largest global bench of IT and business consulting expertise 11

12 It s time to make your move How will your company move forward today? Please contact your respective sellers and account managers or Write to me Judy Kon: konblj@sg.ibm.com 12