This is lecture 4 from 5 about three types of sourcing; shared services, collaboration and crowdsourcing. Specially the crowsourcing will be an revolutionair way of sourcing.

1. ITSM Sourcing specialization 2008-2009 Shared Services, Collaboration and Crowdsourcing

3. But first: how about the outcome of the Digital Selftest?

4. Experience with the outcome of the Digital Selftest Test should be made on http://www.twynstragudde.nl/tg.htm?id=8635 10 24 24 19 19 Rebin 18 20 24 24 10 Gideon 16 19 24 24 13 Egbert 20 19 35 10 12 Jaime 22 14 10 39 11 Michiel 19 24 16 18 19 Thijs 14 21 23 26 12 Raage 10 23 21 26 16 Sofia 15 19 21 24 17 Ibrahim 14 28 13 24 17 Joanmis/Ioannidis White Green Red Blue Yellow Name

6. Shared Services

8. Measures in perspective Measures at task level: Stopping investments Orcutting down on current initiatives Measures at a process level: Collaboration and joint investments Measures at a functional level: Concentration, integration, mergers, Take-over or outsourcing Saving potential Short term (0,5-1 year Medium term (1-2 years Long term (2-5 years) Stopping projects Cutting down on training and learning Cutting down on engaging external consultants System optimazation Collaboration regarding purchasing, support, etc. Optimization and standardization of processes Integration, mergers and concentration Outsourcing of parts of the organization Shared Services Centre Full outsourcing Capitalizing effects

9. Concentration leads to economies of scale Internal SSC Insourcing/ External Supplier Costs Volume Efficiency- effects Economy of Scale

10. Are the trends moving up and down? Yes, to take maximum concentration and complexity there will be need for new solutions. Costs Volume Startingpoint Impact Scale reached Impact Scale reached Complexity Costs will increase

12. Variants of Shared Services supportfunctions Management primairy functions Shared Support Process Shared Business Process Shared back-offices

13. The components of Shared Services How to manage the environment, where the process is cut and who is responsible for what processes? What is the proper organization, which staff and how are we ready for the future? How are technology, process and organization knotted together ? The core of the service Processes Organization Systems Customers SSC 1 SSC 3 SSC 2 SSC 4 Opstellen van Business Cases Inrichten van processen Managen van projecten Governance Regie Architectuur

14. Name the change components Ontwikkelen maatwerk Ontwikkelen maatwerk Beheer infrastructuur Beheer infrastructuur Beheer & draaien pakketten Beheer & draaien pakketten Support/ Helpdesk Support/ Helpdesk Ontwikkelen maatwerk SSC 1 Beheer infrastructuur SSC 3 Beheer & draaien pakketten SSC 2 Support/ Helpdesk SSC 4 Response, context and vision of SSC's clear and design direction activities Target focus on service domains ICT - governance Governance Regie Regie Architectuur Architectuur Make Governance agreements Professionalize demand ICT - governance Governance Regie Regie Architectuur Architectuur Transform demand management ICT - governance - Governance Regie Regie Architectuur Architectuur SSC 1 SSC 3 SSC 2 SSC 4 Opstellen van Business Cases Inrichten van processen Managen van projecten Governance Regie Architectuur

15. An Change approach for Shared Services … . Change idea Intervention-oriented communication about plan and implementation Support by Change help desk Assessment by Change board Consultation with Sounding board group CIO Client … Characteristics of interaction Characteristics of employees Characteristics of products, pro- cesses & structure Clients, Governance & suppliers Histor y Reason Environment View on change Kick off Change analysis + Culture scan DD MM YYYY Change goals Aligning structure and processes Organizing control and and prepairing SSC implementation Contracting and realizing SLA’s Culture change and competence development Learning to collaborate Inter- ventions And (re) planning Reconsider- Ing goals Measuring progress Plateau 2 Inter- ventions and (re) planning Reconsider- ing goals Measuring progress Plateau 1

16. Example of a Target Efforts Network More innovative power and sharing knowledge Higher efficiency pension processes Better quality ICT services and products 75% Reuse pension processes and systems (FO & BO) 20% Faster market introduction pension products 30% Cheaper implementation processes 20% Less duplication 60% Knowledge pension products more accessible 95% Reliable service in accordance SLA Mission Goals Measurable goals Projects and activities Mission Develop a Shared Service Center that is a knowledge-and information-engine around pension products, by sharing forces to deliver better innovation and deliver at lower cost high quality products and services to

17. Collaboration

18. Collaboration is not obvious “ Working together requires the courage to stand away from yourself without losing sight of. That is the great challenge”. Edwin Kaats Own control Give up part autonomy Alignment Domains Give away knowledge Slow decision-making Sharing Trust

19. Organizing between organisations Choos youe position in the group! Build an effective collaboration! Develop a legitimated organization for cooperation! Way of descision making Length of the relationship Marktet behaviour Organising Between organisations Concern Gomes-Casseres organisation organisation III. Organisation II. Collaboration relation organisation organisation organisation organisation I. Group organisation

20. Build an effective collaboration Consent Condtional Assimilation Independant Exchangeable Appropriate partners Consensus Primary importance Coëxistential Mutually dependent Exclusive Unique partners Better Different Stability and continuïty Creativity Result Description Ambition and goals First order solutions Second order solutions Tomorrow Future Client - contractor Similar Step by step Innovation Transactional Exploring Functional Entrepeneural Control Target subsystem Behavioral Agreements Operational development Different in: Find, get, start, run, restructure!

21. The Kraljic Purchasing model Purchasing Risk Is it a standard or a specialized product? What is the extent to which the product / service adds value for the business Less added value Large added value Standard Specialized Strategic Leverage Bottleneck Routine

22. The sourcing solutions plotted on this model Purchasing Risk Is it a standard or a specialized product? What is the extent to which the product / service adds value for the business Less added value Large added value Standard Specialized Strategic Leverage Bottleneck Routine Business Proces Outsourcing Backoffice outsourcing Outsourcing workplace mgt Business development Shared Service Centers DataCenter outsourcing Facilities outsourcing Workinnovation 1 e generation sourcing 2 e generation sourcing 4 e generation sourcing 3 e generation sourcing 2 e generation sourcing Crowd sourcing Operations outsourcing

23. Crowd Sourcing

37. The sourcing solutions plotted on this model Purchasing Risk Is it a standard or a specialized product? What is the extent to which the product / service adds value for the business Less added value Large added value Standard Specialized Strategic Leverage Bottleneck Routine Business Proces Outsourcing Backoffice outsourcing Outsourcing workplace mgt Business development Shared Service Centers DataCenter outsourcing Facilities outsourcing Workinnovation 1 e generation sourcing 2 e generation sourcing 4 e generation sourcing 3 e generation sourcing 2 e generation sourcing Crowd sourcing Operations outsourcing

38. Dominant change colours per sourcing generation Purchasing Risk Is it a standard or a specialized product? What is the extent to which the product / service adds value for the business Less added value Large added value Standard Specialized Business Proces Outsourcing Backoffice outsourcing Outsourcing workplace mgt Business development Shared Service Centers DataCenter outsourcing Facilities outsourcing Workinnovation 1 e generation sourcing 2 e generation sourcing 4 e generation sourcing 3 e generation sourcing 2 e generation sourcing Crowd sourcing Operations outsourcing

39. All rights reserved. No part of this presentation may be reproduced or published in any form or by any means without the prior written permission of Twynstra Gudde. Frank Willems [email_address] www.twynstragudde.nl