Erick WatsonMicrosoft ChinaStrategic Partnership Group

Moving from Outsourcing to a 360° Partnership

Northwest Chapter

Sourcing competition increases daily

“Global Sourcing market should grow 20% YoY” (Everest Group 2011 Market Predictions)

Commoditization threatens your existence“Cost will remain the #1 concern

for companies who outsource” (Gartner on Outsourcing 2010)

Sourcers need a Cultural Revolution!

Clear culture creates clear value

>80M units shipped in first year

<2M units shipped in first year

1. Organizations2. Solutions 3. CustomerExperiences

Sourcers must integrate…

…via well-designed culture

1. ORGANIZATIONAL STRATEGY

Define & establish your cultureCulture – noun : a set of shared attitudes, values, goals and practices that characterizes an institution or organization.

Proclaim authentic valuese.g. Microsoft Values: Integrity & Honesty; Open & Respectful; Big Challenges; Passion; Accountable; Self-Critical

Say “No” to what doesn’t fit

2. SOLUTION INTEGRATION

Begin with the basics

Lay claim to integrated value

Fight back againstcustomer

“disintegration”

3. CUSTOMER EXPERIENCES

Organize from customer’s perspective

Create customer evangelists

U.S. Bricks & Mortar Shoe Retailers: 5

Online Shoe Retailers: >41,000

Zappos Market Cap: $1.2 Billion in 9 yrs.

Measure, track & improve

DISCLAIMER:"Everything that can be counted does not necessarily count; everything that counts cannot necessarily be counted".

Anonymous

Can sourcers achieve cultural integrity?

Commoditization undermines value

1. Organizations2. Solutions 3. CustomerExperiences

Sourcers must integrate…

…via well-designed culture

Cultural integrity delivers customer value

Erick Watsonerick.watson@microsoft.com(425)894-3301 http://www.linkedin.com/in/erickwa

Culture creates 360° Partners…

APPENDIX

Image CreditsSlide 03: http://grassrootsgourmet.net/2009/02/10/top-5-most-irresponsible-meals-of-all-time/commodity-corn/ Slide 04: http://www.dev.net.npSlide 05: courtesy of Microsoft Corporation http://www.microsoft.com Slide 07: http://commons.wikimedia.org Slide 08: http://idzinecards.com Slide 09: http://www.lichfield.gov.uk Slide 10: http://www.flickr.com Slide 11: courtesy of The Boeing Company http://www.boeing.com

Image Credits (Continued)Slide 13: courtesy of Apple Computer http://www.apple.com Slide 14: courtesy of Warner Brothers http://www.warnerbros.com Slide 16: http://www.targetcastgroup.com Slide 17: courtesy of Zappos http://www.zappos.com Slide 18: http://www.flickr.com Slide 19: courtesy of Microsoft Corporation http://www.microsoft.com Slide 20: courtesy of the Hormel Company http://www.spam.com