–1– We make ICT strategies work Detecon SOE Complex Deal Management
– 1 –We make ICT strategies work
Detecon
SOE Complex Deal Management
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Content
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1 Detecon - Overview
2 Service Offering for Complex Deals
3 Joint teams – joint risks – (Performance-based )package pricing
4 A lean and flexible organization for a volatile business – Capacity reduction through DTC Outtasking
5 Excellent preconditions for a successful outsourcing-year for TSI and DTC
Detecon - Positioning
We are a management consulting company serving the ICT industry with strong capabilities to drive transformation projects in multinational environments.
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Expertise ICT industry• 800 consultants employed• Emphasizing share of
“Senior-Consultants” recruited from the ICT industry
Part of DT Group / T-System• Shareholder T-Systems
International GmbH (100%)
International culture• 1/3 of consultants employed
outside Germany• 40 nationalities• Global staffing policy • International Competence
Centers
Global Presence • Branch offices in e.g.
San Francisco, Zürich, Ankara, Abu Dhabi, Bangkok, Johannesburg, Moscow, Peking
• Global project experience
Pragmatic execution oriented
solutions
Global Outside In View
Best fit to work outside Germany
No cash out
Detecon – Value Proposition
Detecon´s Threefold Value Proposition.
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House consultancy of choice (combining fresh thinking with internal know-how)
Acceleration of the implementation of the toughest and most critical projects
From strategy and innovation to network and process implementation
Global coverage with a strong hold on emerging markets
ICT management consulting along the value stack (ICT strategy, processes, infrastructure)
Focus on “Advice” before/ during “Plan-Build-Run”
In sectors where ICT is differentiator and on topics where the telecoms sector is leading
Bridging business and IT side with a focus on Major mature topics (migration,
harmonization) Hot topics on process redesign and
business building Emerging topics that change operations
fundamentally In German speaking Europe and following
our customers abroad Local offices cover logical combinations of
sector and function e.g., financial services/ IT (Swiss), internet companies/Innovation (USA), automotive/ high tech (China)…
ICT in Industries & Services
Deutsche Telekom Group
International ICT Companies
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Detecon – Service Offerings
Detecon´s Knowledge Landscape.
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Sectors Functions Perspectives
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Content
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1 Overview
2 Service Offering for Complex Deals
3 Joint teams – joint risks – (Performance-based )package pricing
4 A lean and flexible organization for a volatile business – Capacity reduction through DTC Outtasking
5 Excellent preconditions for a successful outsourcing-year for TSI and DTC
Service Offering for Complex Deals - Management Summary
.In the last years Detecon and T-Systems worked together in several successful outsourcing deals. To boost this relationship and to show our understanding for the increased price pressure within T-Systems, Detecon has developed a service offering system for this services: Pre-defined packages with a clear scope that address the critical success factors of outsourcing deals. Detecon wants to underline its intention to invest in this valuable relationship with a new pricing model: performance-based payments show our investment and our commitment to this partnership.
We also want to improve our collaboration with T-Systems. A closer inclusion of Detecon into the deal process, especially in early phases gives several advantages: with joint outsourcing-communities, T-Systems can fall back on qualified Deteconconsultants when they need them and don´t bear the risk of high fixed costs. Due to the larger portfolio of Detecon, consultants can be assigned in other projects in periods of lower workload. An essential condition for this collaboration is the early exchange of information – ideally through the formation of Tiger teams in early phases of the deal.
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What we have achieved together
DTC has proven its measurable impact on deal performance in numerous examples.
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Commercial Project Portfolio Management
Transition &Transformation PMO
Transition &Transformation PMO for Outsourcing
Transition &Transformation PMO
Transition &Transformation PMO for DSS Outsourcing
E2E T&T consulting for complex deal200 people, 3000 locs,1500 TPAs
Commercial Startup –setup of financial reporting and assurance of governance (zero profit method)
Commercial Management Improvement of Customer result
TPA Transfer for 800 contracts, asset transfer for 5000 CS assetsInvoicing setup
Commercial Management –Claim management improved result
Global CS Transformation lead
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What we have achieved together: e.on reference case
Detecon contributed significantly to the success of the the e.onoutsourcing deal. The work areas are part of the DTC sourcing offering.
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Support in all areas of HR Transfer Development of best practice approach
Detecon Work Area
HR Transfer
PMO Lead and support functions for Transformation Program
PMO
Inventory and analysis of 2000 TPAs Transfer or negotiation of all
agreements Align TPA portfolio with TSI
transformation strategy
Third Party Agreement and Asset Transfer
Key Deliverables
Design end-to-end processes from order to delivery and invoicing
T-System’s Benefit
Processes implemented in time according to Client requirements
Management of 7 workstreams and up to 250 project members
E2E status tracking, reporting communication & risk management
Mitigated financial and legal risks in TPAs
High cost saving through active contract management
Faster processing of customer orders and backlog reduction
Improved process maturity to cope with 20.000 orders/month
Design Operational Integrator Process Model
Service Delivery Management Process
>90% of transferred staff stayed with the new employer
No penalties during transformation due to fulfillment of all SLAs
Process Architecture Design and
Implementation
Order-to-Cash Process Optimization Task Force
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The Detecon complex deal offering
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Process Architecture Design and Implementation (Advisory and Workstream Lead)
HR Transfer
Third Party Agreement and Asset Transfer
PMO
Technical T&T Management
Due Diligence
Claim Management
Technical Solution Design
Financial Optimization
IT Service Management
RfP Management Contract &Negotiation
T&T Program Management
Manage the
Opportunity
Manage the Bid Implement the Contract
Transition Operation
TransformationScopeOppor-tunity
Qualify
Oppor-tunity
Design
Solution
Create Propos
al
Close Contrac
tRun
Initialize & Plan Proje
ct
Execute & Contr
ol Proje
ct
CloseProje
ct
Initialize & Plan
Project
Execute &
Control
Project
CloseProjec
t
CMO+ FMOCMO
Implement Contract
In line with the TSI outsourcing approach and within the Detecon service offering, consulting packages with pre-defined scope and deliverables can be designed.
ChangeMgmt
Contractor Mgmt
Communi-cation
Staff Transfer
Billing and
Invocing
Claims and Risk Mmgt
Business Case
ProjectControling
End-to-end consulting approach across all T&T Phases Example Packages
SLA and Compliance
Check
Optimization
Transfor-mation Alignment
Truing Up & Transfer
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Agenda
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1 Detecon - Overview
2 Service Offering for Complex Deals
3 Joint teams – joint risks – (Performance-based )package pricing
4 A lean and flexible organization for a volatile business – Capacity reduction through DTC Outtasking
5 Excellent preconditions for a successful outsourcing-year for TSI and DTC
Joint teams – joint risks – (Performance-based )package pricing
DTC is further raising its commitment by offering consulting packages and adjusting pricing models to a clear business case for TSI and Detecon.
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End-to-end consulting approach across all T&T Phases Consulting packages offering clearly defined scope and deliverables Best practice transfer of non-DTAG customers Flexibility in pricing models:
The Time and Material (T&M) model is mainly applied for supporting functions The Fix Price model is of advantage to TSY for project teams The success based Gain Share model forms an attractive option for certain
consulting packages, e.g. for claim management
Packages can be combined with the right pricing
TPA & Asset Transfer
SLA and Compliance
Check
Optimization
Transformation Alignment
Truing Up & Transfer
HR Transfer
ChangeMgmt
Contractor Mgmt
Communi-cation
Staff Transfer
Financial Optimization
Billing and
Invocing
Claims and Risk Mmgt
Business Case
ProjectControling
Time & Material
Fixed Price
Gain Share
Joint teams – joint risks – (Performance-based )package pricing: Package Description Financial Optimization
During the Financial Optimization Detecon applies a toolbox of well proven methodsto safeguard the financial fitness of the outsourcing deal.
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Business case development and financial modeling for a profitabel client solution
Ensure Profitability and Transparency according to calculation Guidelines
Analyze and mitigate risks and claims internally and externally
Efficient planning processes and data consistency
Ensure financial/commercial know –how transfer over the whole deal lifecycle
Model business case scenarios and apply weighting Introduction of lean & efficient calculation method Secured interface between budgeting & development Introduction Coherent risk and claim management Ensure consistent billing and inventory with claim
notifications and inventory
The Challenge Our USP: T-Systems Benefit
Project Example / Reference Pricing
Executive Mgmt. slidedeck for (re-) negotiation
Improved customer result through contract claim management.
Customer result improvement through successful customer re-charge claims.
Secured commercial startup and application of the zero profit method for the T&T phase.
based upon KPIs such as
For project support
Time & Material
Fixed Price
Gain Share
For project with defined scope
Customer result improvement Claim value
Organisation A
Organisation EOrg. D
Organisation B
Joint teams – joint risks – (Performance-based )package pricing : Package Description Financial Optimization
Due to TSI’s organizational setup, interrelated topics are currently managed separately. A holistic approach will ensure a close alignment for the crucial work packages.
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Billing and
Invocing
Claims and Risk Mmgt
Business Case
ProjectControling
Interfaces are one of the most important success factors for the profitability of an outsourcing deal Organizational gaps must be bridged during the project Interrelated topics must be managed within an
integrated E2E approach
Org. C
Billing and
Invocing
Claims and Risk Mmgt
Business Case
ProjectControling
Advantages of the integrated consulting package approach: Clear transformation of business case in T&T budget
and controlling Defined interface between budget and development of
project (completion, risks and claims) Close alignment of risk and claim management to
avoid additional costs Billing and inventory consistent with claim notifications
and inventory
DTC Offering: Financial OptimizationCurrent finance situation in deals
ONE Organisation
Joint teams – joint risks – (Performance-based )package pricing: Package Description HR Transfer
The Detecon Method Framework for HR Transfer ensures mitigation of transition risks and safeguarding operational ability from day one onwards.
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Manage complexity driven by number of providers, countries, headcount and cultural differences
Manage challenges in Second Generation Outsourcing Manage yet unclear cost drivers such as company
pensions: costs/benefits, allowances for pension funds Manage risks in regards to penalty clauses
Ensure Change Management alongside Integration, Communication, Trainings and Knowledge Transfer
Manage the formal HR transfer and support social partners negotiations, resource management, payroll initiation
Off- and On boarding, setting up organizational structure and secure operational ability from Day One
The Challenge
Snapshot Method Framework HR Transition
Input D.Beckert
Input D.Beckert
Secured operational ability from Day One by managing Due Diligence and Contract Negotiations. For project support
Time & Material
Fixed Price
Gain Share
For project with defined scope
Our USP: T-Systems Benefit
PricingProject Example / Reference
Joint teams – joint risks – (Performance-based )package pricing: Package Description TPA and Asset Transfer
Standardization of the TPA and Asset transfer process into configuration management and financial management tools enables transparent management.
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Identify TPA /Asset transfer stakeholders Ensure commercial and technical documentation Setup transition and transformation process Define the transfer and saving strategy Initiate and monitor strategy execution as agreed Integrate the TPA/Assets within financial/technical tool’s Prepare Assets data for invoicing and service
Transition strategy, process and method Transition Checklists and templates SLA Compliancy Quick Check Model Database and analysis tool (one DB) Risk assessment and risk mitigation plan Transition and transformation execution Within CMDB and financial tools Data ready for invoicing and service
For project support
Time & Material
Fixed Price
Gain Share
For project with defined scope
For projects with shared commercial risk
Asset transfer of c.a. 7.000 serverand associated agreements
Asset transfer of c.a. 5000 server related components and enabling of invoicing
Executive Mgmt. slidedeck for (re-) negotiation
Asset transfer
Our USP: T-Systems BenefitThe Challenge
PricingProject Example / Reference
Joint teams – joint risks – (Performance-based )package pricing: Summary
Detecon underlines its commitment for a cost-conscious, result-driven deal cooperation across all deal phases.
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End-to-end consulting approach across all T&T Phases -> no loss of know-how at phase transition-> higher accountability for deal phase results -> higher reliability of deal results with lower result
deviation-> better forecasts-> better steering basis for business decisions and for
future investments
Consulting packages offering clearly defined scope, clear deliverables and a clear case for both partner-> higher commitment for results and deal success-> even closer collaboration in joint teams-> result driven deal expenses-> no more slowing and annoying discussions about
DTC as external workforce and approval processes-> more time to focus on the client
Best practice transfer from non-DTAG customers
Detecon added value
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Agenda
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1 What we have achieved together
2 The DTC sourcing offering
3 Joint teams – joint risks – (Performance-based )package pricing
4 A lean and flexible organization for a volatile business – Capacity reduction through DTC Outtasking
5 Excellent preconditions for a successful outsourcing-year for TSI and DTC
A lean and flexible organization for a volatile business – Capacity reduction through Detecon Outtasking
A closer integration of Detecon into the TSI outsourcing/deal community has clear advantages.
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Fixed staff and the challenge of peak demand Extended community with Detecon
Res
ourc
e D
eman
d
Time
Capacity
Unserved Demand =Missed Out Business Opportunities
Decreased quality and customer satisfaction
Idle Capacity =Inefficient Usage
Res
ourc
e D
eman
dTime
Capacity
Basic workload should be covered by internal resources
Peak loads of deal pipe are difficult and costly to handle with fixed resources
Move of the utilization risk to the part of Detecon, can be diversified with external consulting projects
Balanced workforce in deal and transition/transformation phase: no idle time costs for TSI, no lack of resources
Fast onboarding of Detecon resources due to know-how sharing between TSI and DTC via community and amongst DTC consultants
Proven functional and cooperation quality demonstrated in numerous successful deals
No risk of losing know-how/key resources like in one-man freelancer engagements
Higher loyalty and commitment than in freelancer engagements
No legal difficulties and financial risks arising from the classification of freelancer engagement as “Scheinselbständigkeit”
Via Detecon brand and recruiting channel better position in fight for talents
Winning Together Clear Benefits for T-Systems
PyramidA lean and flexible organization for a volatile business – Capacity reduction through DTC Outtasking
The close cooperation model is highly advantageous for T-Systems.
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Agenda
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1 Detecon - Overview
2 Service Offering for Complex Deals
3 Joint teams – joint risks – (Performance-based )package pricing
4 A lean and flexible organization for a volatile business – Capacity reduction through DTC Outtasking
5 Excellent preconditions for a successful outsourcing-year for TSI and DTC
Excellent preconditions for a successful outsourcing-year for TSI and DTC
Questions? No? Then: All hands on deck for this years joint outsourcing challenge.
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Excellent preconditions for a successful outsourcing-year for TSI and DTC
An even closer cooperation between DTC and TSI in complex deals during deal and transition/ transformation phase offers chances for both partners.
Balanced workforce
Reduced idle time costs
Chance to position as sell-side advisor
Further access to non-captive markets via deals
span networks in other departments
help TSI address budgets in G&A departments
Chance to further improve the DTC industry knowledge
Generating of non-captive reference cases
Advantages for Detecon
Balanced workforce No idle time costs for TSI No lack of resources Fast onboarding of Detecon
resources Proven functional and cooperation
quality No risk of losing know-how/key
resources Higher loyalty and commitment than
in freelancer engagements Via Detecon brand and recruiting
channel better position in fight for talents
Advantages for T-Systems
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Balanced workforce in deal and transition/transformation phase -> no idle time costs for TSI, no lack of resources
Fast onboarding of Detecon resources due to know-how sharing between TSI and DTC via community and amongst DTC consultants
Proven functional and cooperation quality demonstrated in numerous successful deals
No risk of losing know-how/key resources like in one-man freelancer engagements,
Higher loyalty and commitment than in freelancer engagements
Via Detecon brand and recruiting channel better position in fight for talents
Coordination of a cooperation model with service level, lead times, contact points, pricing model…
Regular agreements on deal pipe, methodology, know-how sharing, recruiting …
Balanced workforce with reduced idle time costs
Chance to position DTC as sell-side advisor by leveraging the customer deal knowledge, where TSI was not successful in winning the deal
Further access to non-captive markets via deals, base to address consulting budgets in the IT department and to span networks in other departments and help TSI address budgets in G&A departments
Chance to further improve the DTC industry knowledge
Generating of non-captive reference cases for an improved positioning not only in the non-captive but also in the captive market
Frame Template
Advantages for DeteconAdvantages for T-Systems
Necessary investment on both sides and next steps
Excellent preconditions for a successful outsourcing-year for TSI and DTC
An even closer cooperation between DTC and TSI in complex deals during deal and transition/ transformation phase offers chances for both partners.
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Examples of our vast Outsourcing Experience
Through our various assignments within TSI Outsourcing Deals we know about their challenges and are able to address those at an early stage during Ramp Up activities.
Trademarks displayed are examples of Detecon‘s assignments. List is not exhaustive.
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E.ON
Through our various assignments within TSI Outsourcing Deals we know about their challenges and are able to address those at an early stage during Ramp Up activities.
Various Topics Transforward Process Architecture Design and Implement. HR Transfer Third Party Agreement and Asset Transfer Technical Transformation Order-to-Cash Process Optimization Task
Force And many other topics
Project deliverables / client benefits are highlights out of Detecon’s assignments. List is not exhaustive.
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Philips
Through our various assignments within TSI Outsourcing Deals we know about their challenges and are able to address those at an early stage during Ramp Up activities.
Commercial Management & Transformation Mgmt.
Phoenix: Provided TSI Executive Management with transparency in financials to steer the contract
Energy: Interim Transformation Management EMEA
Project deliverables / client benefits are highlights out of Detecon’s assignments. List is not exhaustive.
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BP
Through our various assignments within TSI Outsourcing Deals we know about their challenges and are able to address those at an early stage during Ramp Up activities.
Commercial Start-Up Setup of financial reporting and assurance
of governance Contract re-negotiation Financial engineering and business case
optimization
Project deliverables / client benefits are highlights out of Detecon’s assignments. List is not exhaustive.
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TUI
Through our various assignments within TSI Outsourcing Deals we know about their challenges and are able to address those at an early stage during Ramp Up activities.
Commercial Management & Business Case Redesign
Setup of financial reporting, monitoring and forecasting of T&T and BAU costs
Developed and optimized business case for client negotiations regarding contract prolongation
Project deliverables / client benefits are highlights out of Detecon’s assignments. List is not exhaustive.
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West LB
Through our various assignments within TSI Outsourcing Deals we know about their challenges and are able to address those at an early stage during Ramp Up activities.
Commercial Management Further development and optimization of
project planning and project reporting towards deal executives
Review of quality and risk management Business case optimization
Project deliverables / client benefits are highlights out of Detecon’s assignments. List is not exhaustive.
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Valora
Through our various assignments within TSI Outsourcing Deals we know about their challenges and are able to address those at an early stage during Ramp Up activities.
Technical Transformation Manage technical transformation for
devices, underlying infrastructure and business applications
Scope of 1.000 desktop workstations
Project deliverables / client benefits are highlights out of Detecon’s assignments. List is not exhaustive.
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