The SIG Webinar will begin shortly. Once the webinar begins, the sound will come from your computer speakers. In the meantime, please take a look at the upcoming SIG networking events listed on the right side of your screen and plan to join us if you are in one of these cities this fall. For more information and to register for all SIG events: www.sig.org NETWORKING EVENTS GLOBAL SUMMITS Oct 17-20 – Carlsbad, CA SYMPOSIUMS Nov 9 – Seattle, WA Nov 9 – London, UK Jan 18 – New York, NY REGIONAL ROUNDTABLES Nov 3 – Pittsburgh, PA
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The SIG Webinar will begin shortly.
Once the webinar begins, the sound will come from your computer
speakers.
In the meantime, please take a look at the upcoming SIG networking events listed on the right side of your screen
and plan to join us if you are in one of
these cities this fall.
For more information and to register for all SIG events:
www.sig.org
NETWORKING EVENTS
GLOBAL SUMMITS
Oct 17-20 – Carlsbad, CA
SYMPOSIUMS
Nov 9 – Seattle, WA
Nov 9 – London, UK
Jan 18 – New York, NY
REGIONAL ROUNDTABLES
Nov 3 – Pittsburgh, PA
Networking and sharing thought leadership are part of SIG membership
Global Summits – attend two large events with 50+ breakouts, 5-8 keynotes and unlimited networking opportunities
Global events in North America, EMEA, APAC – attend SIGnature
events, GBS Roadmap series, Challenge awards
Weekly Webinars and Monthly Town Hall Teleconferences –access virtual thought leadership
Peer2Peer Resource – ask top-of-mind questions for instant responses
SIG Resource Center – access 4,000+ presentations, research, whitepapers, tools, templates and more
Career Network – post and find jobs or internships
Student Talent Outreach – meet students interested in a career in supply chain, sourcing or services
bit.ly/SIGLinkedIn
@SIGinsights
bit.ly/SIGfacebook
bit.ly/SIGYouTube
Stay connected with other SIG members through various social media channels
bit.ly/SIGBlog
SIG Global Summits are semi-annual events with 350-400 decision-makers in attendance
Global Summits
• 3-days of networking in a non-commercial
environment
• 5 keynote sessions
• Global brands
• CPO Roundtables
• Over 50 breakout sessions
• Hundreds of industry thought leaders with a
buy-side ratio of 70:30
Carlsbad, CAOctober 17-20, 2016
67% of delegates are director level or above, of which 43% are
VP/C-level
Recent speakers include:
We are bringing SIG to you…all over the globe
GLOBAL EVENTS
GLOBAL SYMPOSIUMS
Nov 9 – London, England
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For more information go to: www.siguniversity.org
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Proprietary and Confidential. No part of this document may be reproduced in any form or by any electronic or mechanical means,
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Tuesday, October 11, 2016
How to Manage Ecosystems of
Relationships in the New Digital
Enterprise
Governance
Transformation
Presenter
Carlos Hernandez
7
Carlos Hernandez is an accomplishedbilingual management consultant andsourcing solutions executive who bringsmore than 20 years of professionalexperience in both senior ITmanagement and consulting in theTransformation and Governance space.
Carlos led the sourcing strategy andvendor management practice forGartner, North America, providingthought leadership in the governancespace being one of the pioneers of the
vendor management best practices .Carlos has broad experience ininternational sourcing engagements forglobal organizations having led andparticipated in engagements spanningthe entire IT sourcing and transformationlifecycle. His engagements includeinternational clients in Europe, LatinAmerica, and the U.S.
Prior to joining Avasant as a Partner andpractice head, Carlos was a Director atAlsbridge, Gartner and a SeniorConsultant for IBM.
EXPERIENCE INCLUDES:
Areas of Specialization:• Business / IT Transformation • IT Strategy & Modernization• Sourcing Governance Design • Organizational Development • Digital Strategy • Cloud Strategy, Governance• Transition and Transformation
Education and Certification:• University of Oklahoma• BS Information Systems Management
Carlos HernandezPartner
Transformation Practice Lead
About Avasant
About Avasant Closing ThoughtsGovernance
Needs & Case
Study
Market
Perspective
9
98%
Customer
Satisfaction
Deals
Negotiated
Countries
$100B+ 40+
1,000+successful engagements
What we doDigital StrategyDefine 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.
Managed Governance ServicesManage vendor portfolios through best practice
processes, automation, and state-of-the-art
technology to create a simplified, structured, and
cost effective way to maximize sourcing value.
Global StrategyFull range of management consulting services
for private sector, governments and donor
agencies to assist in the development of new
market strategies, 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, 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.
TransformationDevelop and execute a strategic transformation plan creating new
operating model and technology footprint designed to drive business
performance improvement and customer satisfaction.
O V E R V I E W
10
Corporate facts & industry recognition Why Us?
Unparalleled connect with over
500 service providers globally with an updated repository of their capability, pricing and services
Recognized with a "World's Best Outsourcing Advisors" designation by the International Association of Outsourcing Professionals (IAOP) for seven consecutive years
A complete and comprehensive
library of industry best practices and database of benchmarking
information
Avasant maintains a global team of multi-disciplinary IT experts,
professionals, lawyers and management consultants
5 s
tar
rate
d
Market Perspective
About Avasant Closing ThoughtsGovernance
Needs & Case
Study
Market
Perspective
12
The Big Question
“We have mature vendor
management capabilities
with fully functional traditional governance competencies.
As we embark on business
transformation initiatives such
as digital and pay-as-you-go
IT, how must we change the
way we govern to realize the
value of our future digital ecosystem?”
Director VMO, largest Non-Profit in NA
13
Pick the statement that best represents the
current state of business and digital
transformation within your organization:
a) We are presently developing a digital
transformation strategy
b) We are in the midst of executing our
digital transformation strategy
c) We are just beginning execution of our
digital transformation strategy
d) We presently have no strategy but
plan to begin developing one in the
next six to twelve months
Polling Question #1:
14
Today’s most common Governance challenges…
Antiquated contracting
modelsIrrelevant metrics
Misalignment with desired
business outcomes
Organization immaturity
Delivery focused, missing
technology & architecture
Milestones / deliverables not based on new
capabilities
Complex and diverse vendor
ecosystem
15
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
16
How is Governance Transforming?
Outsourcing Maturity
Nu
mb
er
of
Ve
nd
ors
SLA Based Contracts Outcome based Contracts
Fe
w S
tra
teg
icM
ulti-So
urc
ed
Extr
em
ely
Fra
gm
en
ted
Governance Focus
Governance Focus
Traditional Outsourcing Model
Multi-sourced Outsourcing Model
Digital based outsourcing
model
Risk Management & Relationship Management take higher priority with more of outcome
based contracts in a heavily fragmented outsourcing model
Governance Focus
17
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
18
Manage Performance through Business Outcomes
Manage Scope, Price and Value
Support bimodal structure
Factors to enable Governance Transformation
Technology• Automated workflows and
Analytics
• Dashboards & Reporting
• Process Management
Manage partner integration linked to BUs
Collaboration / Engagement & virtual teams
• Technology & architecture skills
• Business domain knowledge
• Data analytic skills
• Vendor risk management
• From cost to performance and
innovation optimization
• Less approvals, more decision
making
• High Volume & diversity handling
• Automated workflows and
Analytics
• Service integration
• Dashboards & Reporting
• Process Management
People Process Technology
19
Managed Governance Services is an available option to
accelerate your journey
• Optimizing and simplifying governance
• Driving performance and ROI
• Connecting business outcomes
• Enabling vendor collaboration
• Reducing operational risk
20
The journey…
Update Policy & Prepare for Change Train the team
Redefine Processes &
update capability
Enable Governance Structure for the new
Ecosystem
Leverage managed governance services to rapidly
evolve in the maturity curve of vendor management
Implement technologies
21
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
22
Pick the statement that best represents how well you believe your organization is prepared to manage your ecosystems of relationships in the new digital enterprise:
a) We are in the midst of business transformation and are implementing a holistic, comprehensive and strategic approach to managing our ecosystems of relationships
b) We are in the midst of business transformation and have begun planning
how we are going to manage our ecosystems of relationships in the future
c) We are just beginning business transformation and have not yet considered the impact upon our ecosystems of relationships in the new digital enterprise
d) We have no coordinated enterprise-wide approach to managing our global portfolio of suppliers and service providers
Polling Question #2:
23
Realize Value through Governance Tools & Technologies
1
2
3
4
5
Standardization, Complexity and Volumes are driving tool adoption
Value leakage is a reality – 40-60% of lost value
Innovation and Quality through Automation
Competitive Advantage through a 360˚ view
Enables Governance through efficient Management
Increased Value
Enhanced Compliance
Maximized Opportunities
Governance Needs & Case Study
About Avasant Closing ThoughtsGovernance
Needs & Case
Study
Market
Perspective
25
THE GOAL: With current membership well over 40
million and continued growth on the horizon, AARP
sought to design a new IT organizational structure
with a focus on service level excellence and cost
savings.
Case Study: AARP
Approach:
Generated efficiencies resulting in a 30%
operational savings and improved vendor
governance
Conducted a transition readiness assessment
inclusive of multiple workshops with the senior
leadership team to create demand
management processes and a communication
management strategy
Designed key Vendor Management processes
to create a Project Management Organization
Closing Thoughts
About Avasant Closing ThoughtsGovernance
Needs & Case
Study
Market
Perspective
27
• The increasing focus on business
outcomes and new business
transformation initiatives such as
digital are presenting significant
challenges to realizing the value of
sourcing
• Traditional governance practices
are inadequate to Manage
Ecosystems of Relationships in the
New Digital Enterprise
• Vendor management staff are
going to need strategic
perspective, new skills, and greater
understanding of end-to-end, multi-
provider service processes
Closing Thoughts
28
• The increasing focus on business
outcomes and new business
transformation initiatives such as
digital are presenting significant
challenges to realizing the value of
sourcing
• Traditional governance practices
are inadequate to Manage
Ecosystems of Relationships in the
New Digital Enterprise
• Vendor management staff are
going to need strategic
perspective, new skills, and greater
understanding of end-to-end, multi-
provider service processes
Closing Thoughts
Thank you for
participating in today’s
webinar!
Empowering Beyond
GET CONNECTED
www.Avasant.com
Washington DC
New YorkDallas
Los Angeles
(Headquarters)
Houston
Austin
Toronto
London
Port of Spain
Düsseldorf
Bangalore
Mumbai
Beijing
Tokyo
Delhi
Dubai
Hanoi
Partner
Carlos Hernandez
Main: (310) 643-3030 Mobile: (469) 524-9564
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