Managing Suppliers Quality

Transcription

1 Managing Suppliers Quality Why quality of supplier is more important than costs. Why digital transformation requires modernization of traditional supplier management practices Prague Zdeněk Kvapil

2 Can we embark on Digital transformation without modernizing supplier management practices? 2

3 Contracts AI, chatbots, data science,... Can we define SLAs for anything complex? Is concept of SLAs suitable for digital era? AI SLA 3

4 Quality what it is? ISO 9001 and ISO approach Quality of supplier means meeting requirement defined by Customer. Assumption that customer is smarter than supplier and can specify all possible requirements in contract and SLAs. Suitable for buying simple and trivial services, i.e. request processing time. 4

5 ISO/IEC 20000:2011 ISO 20000: Supplier management Service provider shall agree with the supplier service levels to support and align with SLAs between the service provider and the customer Supplier shall monitor performance of the supplier at planned intervals Performance is measured against service targets and service obligations Results shall be recorded and reviewed for nonconformities Review should ensure that contract reflects current requirements. 5

6 CUSTOMERS (External & Internal) ISO/IEC 20000:2018 pre-release Service Management System (SMS) Context of the Organisation Organisation and the Context Interested Parties Scope of the SMS Establish the SMS Leadership Leadership & Commitment Policy Roles, Responsibilities and Authorities Control of Parties involved in the Service Lifecycle Service requirements Resources Planning Risks and Opportunities Objectives Plan the SMS Support of the SMS Competence Awareness Communication Documented Information Knowledge Services Operational Planning & Control Service Portfolio Plan the Services Service Catalogue Management Configuration Management Service Delivery Relationship & Agreement Business Relationship Management Service Level Management Supplier Management Performance Evaluation Monitoring, Management, Analysis Evaluation Internal Audit Management Review Operation of the SMS Supply and Demand Budgeting & Accounting for Services Demand Management Capacity Management Service Design, Build &Transition Change Management Service Design & Transition Release & Deployment Management Resolution & Fulfilment Incident Management Service Request Management Problem Management Service Assurance Service Availability Management Service Continuity Management Information Security Management Improvement Nonconformities and Corrective Actions Continual improvement 6

7 ISO/IEC logic Supplier/Customer ISO 9001 and ISO logic of ITSM Supplier 1 Supplier 2 Supplier 3 Service provider IT department is acting as a internal service provider service business - customer Customer Business Suppliers delivering mainly technical services or software support. 7

8 COBIT 5 (2019 is coming) APO 10 Manage Suppliers APO 09 Manage Service agreements Details HOW referenced in ISO and ITIL Same logic as ITIL and ISO

9 Request Control logic Service provider S1 S3 S2 S4 S6 Request Control Payment Organization Why should supplier try to innovate in this model? 9

10 SFIA 7 skills management framework SUPP Supplier management: The alignment of an organisation s supplier performance objectives and activities with sourcing strategies and plans, balancing costs, efficiencies and service quality. The establishment of working relationships based on collaboration, trust, and open communication in order to encourage co-innovation and service improvement with suppliers. New in SFIA since 6/

11 Summary Only SFIA framework so far identified need for collaboration and innovation in proper Supplier management Other models are based on factory thinking your ordered, supplier produced or delivered. Suppliers are servants, not innovators. 11

12 Collaboration and evolution Humberto Maturana identified structural coupling as a driver of evolution and coevolution. In biology it is the process whereby and organism interacts with its environment in such a way that the organisms changes the environment and the environment changes the organism. The horse didn t evolve, the field grass didn t evolve. It is the relationship that evolved. The horse and the tundra with grassy plains are interlocked Patterns of Strategy, ISBN ,

13 Collaborative models are coming ISO 44001:2017 Collaborative business relationship management systems Specifies requirements for the effective identification, development and management of collaborative business relationships within or between organizations. Non IT targeted. 13

14 Collaboration A new paradigm needed in IT practices. Innovation happens through collaborative effort inside of organization coupled with collaboration of partners or innovative suppliers. Innovation of one partner creates opportunity for other collaborating partners. Large source of inspiration is ecosystems, evolution and biology. Focus on mutual benefits 14

15 Driving forces Collaboration Sharing common objectives. Customer/ Service provider Profit of customer versus profit of service provider. Opposing forces 15

16 We need to do what is not in best practices yet. 16

17 Quality is better than others Requirements 17

18 Focus on QUALITY 4 categories of suppliers quality is a new dimension A Quality B Quality and Cost Consultancy I.e. Man-day rate Services I.e. service with simple SLA Commodity I.e. consumables C Costs and Quality Innovators New solutions D Costs Focus on COSTS 18

19 Maintaining ecosystem of suppliers Quality focus suppliers group A: Has to be searched for Frequently SME or startup as Corporates innovate first themselves (MS, Amazon, Google) Busy with new ideas, will NOT be calling you to sell you something very new. Research, new, cool staff, not much tested yet. 19

20 Ecosystem of suppliers Value of your suppliers network is in structure and proportions Balance costs focus where suitable - D Mixed focus where creativity is expected C,B New trends, disruption of existing practices - A D costs C costs and quality B quality and costs A quality 20

21 Ecosystem of suppliers Quality of supplier ecosystem consists of Balanced mix of all types of suppliers. Ability to change proportions when needed. Adaptability avoid supplier lock contracts. D costs C costs and quality B quality and costs A quality Size is representing spending for specific supplier (example) 21

22 Category A Surprisingly Central purchasing are OK with suppliers quality categorization. While many IT managers locked in searching for lowest price and missing innovative potential of SMB or start-ups. 22

23 Group A - contract conditions: Widely defined WHAT, usually estimated MD or specific innovation project. Iterative progress and payments. Allow easy termination if mutual benefits are not delivered. Uncertainty of outcomes. 23

24 Collaboration Interactions matter. 24

25 D or A type 25

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29 Framework agreement 29

30 What Digital transformation means for CIO? Future is collaborative management models. Past Future Thinking & innovation Business Customer IT is active Suppliers Collaboration Thinking & innovation Business Requirements Solution New digital capabilityuncertainty, risk, opportunity IT is passive Suppliers Business Case, ROI, Project, RFC Service provider Solution developer New business models and opportunities

31 Practical Balance and proportions New/Old Search for something what others don t do yet. 31