Outcome-Based Models for Business
Transformation
10 June 2009
Randy Walker
General Manager, Growth Markets Units
Managed Business Process Services
The Evolution of the Enterprise
International
Corporation
2
Multinational
Corporation
Globally Integrated
Enterprise
Becoming a Globally Integrated Enterprise
Global Optimization
Global Footprint
Locates operations anywhere in the
world based on economics, expertise
and business environment
Leverages Global Footprint to access
global markets and gain operational
advantage
Global Integration
Serve clients by integrating capabilities
horizontally and globally
Key: Being Local in Global Markets
3
Building a Smarter Planet
Sam Palmisano, Chairman, President, and CEO, IBM Corporation
4
The World is Becoming Flatter and Smarter … Business
Pressures are Increasingly Driving Need for Transformation
Economic Pressures
 A strained global economy
 Visibility and control in
business models
 Risk mitigation and profit
optimization
The Demanding Customer
All time high customer
expectations
 Companies utilizing latent
opportunities
 Innovative products/services
aligned to real consumer needs
Global Competition
IT Integration
Cloud Computing and Web 2.0
empowering business users
Driving convergence of business
and IT
Thin line between companies
and customers
 Competitive pressure driving
market efficiency
 Agility of business models
5
Clients’ Reaction to the Current Environment
 Focus on financial survival
•
Reduction: cost slashing, cash preservation
•
Rigor: balance sheet health
•
Resilience: size and optimize cost structure
 Reprioritize projects / investments
•
Payback period under one year
•
Defer large investments
•
Return and risk
 Build strategy for new reality
•
Focus on few big investments, reprioritize
projects
•
6
Build resilient business models
Cost & Cash
Opportunistic
Business Growth
Business Outcome
Focus
Increased Pressure To Do More With Less
VALUE
Cost Pressures
CEO
Agenda
Requires
Continual
Renewal
TIME
7
Making the Transition to a Business Outcome-Led Model
Business Transformation
Outsourcing
Business Process Outsourcing
Labor Cost
Reduction
+
Operational
Improvements
+
Process
Transformation +
Technology
Enablement
Transformation
Existing Process
Improvements
 Enablers for transformational partnership
 Benefits Realization Model
 Assets to enable productivity
improvements
 Governance structures
 Shift clients’ fixed costs to a more variable
model
 Align partner and client incentives to reduce cost
of service
Labor Arbitrage
Improved Cost Efficiency
 Develop a strong operational foundation
Gain Advantage
 Partner with client to improve operations and
share in the benefits
 Leverage gain share models to align partner and
client incentives
Companies demand certainty of outcomes and speed-to-benefit that
extends beyond operational cost savings
8
IBM: Transformation of Global Supply Chain Resulting in
$3 – 5 Billion Savings Every Year
Why?



What we’ve done
Business Outcomes
 Established online links to suppliers, partners and
The ISC is accountable for $40 billion (approx. 50%)
clients
of IBM’s total cost and expense
 95% of business partner orders are now ‘touch less’
ISC was a fragmented
center – distributed
and
 cost
Established
enterprise-wide
common processes
 Manage entire ISC on a global basis – from
‘hard wired’ to business
procurement and logistics to strategy and planning
Pockets of integration but no enterprise-wide

Removed
functional
silos
common processes
 Consolidated transaction processing in global
delivery centers
The business
outcomes
How we’ve done it Cut average processing time
for POs from
30




9
Tied up the ISC with shared measurements to
days to less than 1 day
support end-to-end operations
Leveraged global scale
20,000 employees at
locations $3
in 62
 100
Average
– countries,
5 billion in
speak 80 languages, 31,000 suppliers online
Introduced the world’sthe
first last
supply5 chain
business
years
transformation outsourcing capability
Averaging $3 – 5 billion in savings every year for the
last 5 years
 A 5 point improvement in margins since 2003
 Improving
sales force
productivity
– they now spend
savings
every
year
for
38% more time with clients
 Turning orders 32% faster and improving client
satisfaction

Global CPG Company: Successful Integration Across End-to-End
Global Processes to Drive Standardization and Transformation
IBM Partnership
Contract Overview







 Partnered & Planned a 2-year road map on integration
850+ FTEs in F&A across 4 delivery centers
journey; single ERP platform, common supply chain &
Dedicated centre in Portugal
multiple outsourcing initiatives
End-to-End Suite of Transformational Tools
 Faster transformational journey & world-class change
– AccountsPayable
: DCIW
Transformed
client from a fragmented
managementmulti-country
practices
– T&E : GERS
 Transitioned processes from 20+ countries, 3 business
– O2C : AR Collect
organization
to
an
integrated,
efficient
global
model
lines
and multiple
systems
into 4 IBM delivery centers
24 Countries in EMEA & 2 Countries in NA
created a CoE model
Multiple language requirements
 Partnered in client’s growth journey; executed
End-to-end process
scope : P2P, R2R
& O2C
 Partnered
with
client to establish
a common platform
transformational projects in Treasury & managed the
Multiple External Recognition
books for disposition of business
 2008 FAO Award
Distinction
for ofkey
business processes
 2009 Outsourcing Excellence Award
Business Outcomes
 Delivery executed through 4 global delivery centers –
Sweden
Denmark
Germany
Netherlands
UK
Ireland
Latvia
 World class tool sets deployed for end-to-end processes
France
Lithuania
Poland
Czech
Republic
Slovakia
Spain
10
Finland
Estonia
Belgium
Portugal
Switzerland
Client Locations & FTEs:
 NA – 130
 EMEA - 735
India, Philippines, USA, Poland
USA &
Canada
Poland
Philippines
Romania
Italy Austria Slovenia
Hungary
Croatia
India
IBM Delivery Locations & FTEs:
 India
430 FTEs
 Poland
410 FTEs
 US
10 FTEs
 Philippines
10 FTEs
IBM Daksh Helps Bharti Transform the Customer
Experience Through Global Best Practices
Challenge
Following the success of IT and Network services contract with IBM, Bharti sought to drive more efficiencies, consistency
and improve service in its contact centers
Business Outcomes
Anticipated
 Strategic outsourcing partnership based on
joint Outcomes

Support for 12 million wireless customers

In 2008, 5,300 employees provided customer care to
mobile customers and support for international calling
cards

business outcome objectives
 Scalability to support rapid growth
 Standardized, consistent interactive
customer experience, in all 23 mobile
phone circles in India
 Standardized and consistent customer
15 million calls in a month in 15 languages across 6
locations
experience across the circles

Supports customers across 23 telecom circles

Chosen as the no.1 partner for 3 out of the 4 quarters
in 2008

IBM Daksh is the only partner to service Platinum
customers for Airtel
 Efficiencies through the integration of
contact centers
 Reduction in capital investment for
technology upgrades
 Efficiencies through integration of contact
 Long term business partnership:
centers
Working
with IBM Daksh, Bharti can create a
roadmap for future business transformation
needs
 Scalability to support rapid growth
 A successful domestic BPO engagement
11
Critical Success Factors to Enable Mutually Beneficial
Business Outcomes
 Client Intimacy

Deep account relationships
 Global industry knowledge, skills and
resources
 Technology & Process Innovation


R&D investments
Reusable assets

BPR capability
 Risk Management / Mitigation
 Business Model Innovation


Globally Integrated Delivery engine
Virtual workforce
 Industrialized service delivery model
 End-to-End Solutions


12
Integration Capability
Integration of Process – Technology –
Solutions
Thank You
13
Descargar

Value Driven Proposals