Proxima helps Activision Blizzard create value and achieve sourcing success
==To access the full presentation click here http://insight.proximagroup.com/proxima-helps-activision-blizzard-achieve-sourcing-success == The video game industry is global, dynamic and ever changing. Developing and marketing of a video game on a worldwide scale can be an expensive proposition. Engaging the right partners and suppliers is crucial for success. No one knows this better than Activision Blizzard, one of the world’s largest and most successful video game developers known for franchises like Call of Duty and Guitar Hero. With pressure to control costs mounting, Activision Blizzard turned to Proxima in 2012 to better manage costs, supplier and partner relationships and sourcing efforts more efficiently. And in just over a year, the partnership yielded significant savings to the business. Activision Blizzard’s Bertrand Leroux, CIO and Head of Global Strategic Sourcing and Proxima’s John Mathew, Client Services Leader, jointly discuss the drivers behind the Activision Blizzard’s sourcing success. In this presentation you will learn: * Hear lessons learned from building a sourcing function in a highly creative no-mandate environment * Understand how the sourcing organization has enabled rather than hindered success * Learn what the wider business impact has been on Activision Blizzard
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Proxima helps Activision Blizzard create value and achieve sourcing success
- 1. www.proximagroup.com Proxima helps Activision Blizzard create value and achieve sourcing success Bertrand Leroux, Activision Blizzard John Mathew, Proxima © Proxima 2013. All rights reserved.
- 2. www.proximagroup.com About Activision Blizzard The company Activision Blizzard is a leading publisher of video games and a distributor of interactive entertainment Revenue $4 billion+ in Calendar 2012 Employees 7,000+ Ticker “ATVI” Did you know? Call of Duty has been one of the most significant entertainment events of each of the last six years. Call of Duty Black Ops 2 grossed $1b in worldwide retail sales in 15 days" Total sales for the Call of Duty franchise have exceeded worldwide box office receipts for “Harry Potter” and “Star Wars” – the two most successful movie franchises of all time 2
- 3. www.proximagroup.com Proxima / Activision engagement Engagement scope Activision Blizzard selected Proxima in 2012 under a multi-year engagement to provide: • Strategic sourcing • On site change management • Category expertise • Sourcing administration support for indirect spend Major areas of indirect spend • Marketing • Video production • Media • POS • HR • Information technology • Professional services 3
- 4. www.proximagroup.com Aims: What will you get from this session Hear lessons learned from building a sourcing function in a highly creative no-mandate environment Understand how the sourcing organization has enabled rather than hindered success Learn what the wider business impact has been on Activision Blizzard 4
- 5. www.proximagroup.com Environment before transformation 1. Spend/ categories influenced was small 2. Responsibility for sourcing sat with managers along with day job 1. No systematic approach to reap innovation from suppliers 2. Little involvement in business planning led to increases 1. Inappropriate suppliers used for operationally critical services 2. Inability to ensure supplier delivered contracted business outcomes and savings 1. Limited spend data visibility and analytics 2. Lack of information in place to track and trap requirements Commercial Measurement/Control Technology Innovation 5
- 6. www.proximagroup.com Drivers for sourcing transformation 1. Evolution of gaming industry and price points require quicker reaction time 2. Digital impact on gaming business 3. Integration commitments 1. Cost management a key aspect of culture 2. Improve supplier costs and service levels 3. Free up valuable resources in Marketing, IT and HR to focus back to core functions 1. Management saw significant opportunities for improvement, in both financial and non- financial terms 1. In order to maximize value, company adopted a centralized structure 2. Management recognized collaboration with stakeholders as key to long term success External pressures Opportunity Organization impact Internal pressures 6
- 7. www.proximagroup.com 2013 2014+ 2012 • Sourcing viewed as a trusted business partner aligned with BU success • Protection and enhancement of the reduced cost base • Openly seeking innovation from suppliers • Professional category management approach through engaging sourcing • Suppliers become allies Activision Blizzard target state Extending sourcing’s influence: Into new categories Across geographic borders Across business units Across functions • Significant savings delivered and taken to the bottom line • Balance of power shifted from suppliers to Activision Blizzard • Sourcing activity devolved across business units • Undertaken in an inconsistent manner • Limited efforts to consolidate or leverage spend • Loss of value 7
- 8. www.proximagroup.com To view how the challenge was answered and the results click here © Proxima 2013. All rights reserved.