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Wednesday Nov 15th 2017

Collaboration across Digital Supply Chains

Presenter

Adrian Quayle

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DigitalDefine and execute digital business strategies by structuring and managing the strategic partnerships of the digital ecosystem to create competitive differentiators.

Strategic SourcingOptimize IT and Business Process operations through strategic partnerships to achieve core business objectives beyond predictable and low cost services.

Governance, Risk & ComplianceAssess, manage and mitigate governance, compliance, audit and Cyber risks. Maximize Sourcing value through Managed Governance Services (MGS) for vendor portfolio and relationships leveraging best practice processes, automation, and state-of-the-art technology.

Global StrategyFull range of management consulting services for private sector, governments and donor agencies to assist in the development of new market strategies to support sustainability and catalyze business acceleration.

Avasant LawExpansive suite of custom tailored legal services, delivered with experienced legal team with focus, across Technology Transactions, Corporate Law, Intellectual Property, Market Expansion, and Information Privacy & Startup Advisory areas.

Avasant FoundationOur mission is to enable emerging regions to realize their potential. In partnership with leading foundations and institutional donor agencies, we provide deserving youth access to skills training and education with the goal of job creation in the digital economy.

O V E R V I E W

98%

Customer

Satisfaction

Deals

Negotiated

Countries

$100B+ 50+

1,000+successful engagements

What we doBusiness & IT TransformationDevelop and execute a strategic transformation plan creating new operating model and technology footprint designed to drive business performance improvement and customer satisfaction.

3

How Did We Get Here? Our Outsourcing Journey

• Services Outsourcing (IT) began as ‘Facilities Management’ in the 1960s and rapidly grew,

• Today’s Outsourcing Industry leverages “technology, process & people” to where it is a global industry with revenues over $10+ trillion dollars,

4

Digital Enterprise

Enterprise Digital Transformation

Initiatives involve executives other

than the CIO

Executives undergoing formal digital

transformation efforts in 2017

Customer Driven Enterprise Value Chain

Business Processes automated by

transformation-focused

organizations in 2016

Traditional Value Chains

Analog Speed

Digital Enterprise Value Chains

Digital Speed

Source: Altimeter Group and MIT Sloan

88%

78%

59%

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Benefitting from Standards

• Guidance on Outsourcing ISO 37500:2014

o Providing a common reference structure

(language) across the supply chain

o enable mutually beneficial collaborative

relationships

• Collaborative business relationship

management ISO 44001:2017

o Enables verifiable relationships best

practices

o Facilitates ‘win – win’ between organisations

across the supply chain

Source ISO 2014 and 2017

Consortia

Eco systems

Alliances

Partnering networks

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Collaborative Business Relationship Management - ISO 44001:2017

• Gathered pan-industry good

practice for:

o establishing,

o running,

o improving,

• Covers range of

collaborative relationships -

including outsourcing deals.

• Collaborative relationships

can be multidimensional

Consortia

Eco systems

Alliances

Partnering networks

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Why is the Collaborative Business Relationship Standard so Powerful?

• Process enables (permits) the parties to have (otherwise) difficult discussions on the relationship

• Preparation and sharing of the joint Relationship Management Plan (RMP) puts collaboration issues and social value on the table

• Joint RMP meetings focus parties on the (mutual) benefits of the collaboration

• In a collaborative ecosystem it provides consistent common processes, language and alignment between organisations

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Collaboration Standard Benefits - Case Study

• Leading global technology group -

high capital value project business

division (Business A) and SME supplier of

services (Business B)

• Business A wanted to demonstrate to

customers and other group businesses

independently that it was a highly

collaborative business (USP) using BS

11000 / ISO 44001

• At initial joint RMP meeting SME

indicated the invoicing process was

highly labour intensive and costly.

• Outcome - Very quickly the business

group’s finance team implemented a

new process – dramatically reduced

the processing costs for all suppliers.

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• The increasing focus on business outcomes and

new business transformation initiatives such as

digital presenting significant challenge in realizing

value across supply chains

• Good industry practices in collaboration can help

in Managing Ecosystems of Relationships in the

New Digital Enterprise

• Sourcing and supplier management staff need a

strategic perspective and skills in collaborative

relationship management to facilitate delivery of

end-to-end, multi-provider service processes

• Review your outsourcing activities against the

good industry practice principles of the ISO

Collaborative Business Relationship Management

and Guidance on Outsourcing Standards

Closing Thoughts

Empowering Beyond

GET CONNECTED

www.Avasant.com

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New YorkDallas

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(Headquarters)

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Main: +1 (310) 643-3030

Adrian QuayleManaging Partner Europe

adrian.quayle@avasant.com

Mobile: +44 7770 431 409

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What is driving Governance Transformation?

Evolving Buying Behaviour

Analytics &

Decisions

A new breed of

Suppliers

01

02

03

Demand for Digital

Transformation

Focus on Business

Outcomes

Increased Risk &

Regulatory Compliance

06

07

08

Value Optimization

05

04

New Delivery Models

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What is Changing ?

Contract Structure & Management• Standard, shorter and simpler contracts

• Zero Cost and Gain Share Models

• Linked to business capabilities

• Focused on partnership, not services

• Limited operational T&Cs and D&Os

Performance Management• Business metrics measurements

• Simpler reporting /meeting driven approach

• Shared metrics for a single service chain

• Simpler validating and verifying of SLAs

Financial Management• TCO pricing models

• Increased complexity in pay as you use model

• Automated pricing and reporting

• Pricing traceable to specific, tangible deliverables

• Fixed price model for post-design work

Relationship Management• Business driven connected with outcomes

• Control over deliverables, intellectual property, and future

direction of the software and solutions

• Mature project management & delivery

Risk Management• Policy Development to manage technology

• Increased Data & operations risks

• One sided supplier contracts

• Easy entry and exit of suppliers

• volatile supplier ecosystem

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The Result: Business value driven Governance

• Increased Revenue

• Optimal ROI

• Better

• customer experience

Innovation Efficiency Performance

• Applied Innovation

• Competitive Advantage

• Allow for fast transitions

• Improved cycle times

• Cost optimization

• Business centric

• Predictive, proactive,

• leverage trends