Nearing the end of a long-term managed services agreement, DPS sought to evaluate its options and leverage a competitive sourcing process that defined a range of solution alternatives. The company’s over-arching objective was to drive transformational change that significantly increased service maturity and resulted in cost savings and other benefits, including improved speed to market, enhanced reliability and availability. DPS used an experienced and focused internal IT and Legal team, with support from ISG and external legal counsel, to execute the RFS methodology.
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Dr Pepper Snapple Group Leverages "Request for Solution" for Flexibility, Agility and Speed to Market
1. Dr Pepper Snapple Group Leverages “Request for
Solution” for Flexibility, Agility and Speed to Market
“The Request for Solution process provided significant benefits compared to the RFPbased sourcing processes we have traditionally utilized. In 24 weeks, we went from
constructive discussions with six providers to a fully executed contract.”
-Scott Bonneau, VP IT, Corporate & Hosting Services
Client:
Dr Pepper Snapple Group
Industry:
Beverage
ISG Services:
Sourcing Strategy
Overview
Dr Pepper Snapple Group (NYSE: DPS) is a leading North American refreshment beverage
company. The company manufactures, bottles and distributes more than 50 brands of
carbonated soft drinks, juices, teas, mixers, waters and other premium beverages. Dr Pepper
Snapple (DPS) earned $5.995 billion in revenue in 2012.
client requirements
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Business Need
Nearing the end of a long-term managed services agreement, DPS sought to evaluate its options
and leverage a competitive sourcing process that defined a range of solution alternatives. The
company’s over-arching objective was to drive transformational change that significantly
increased service maturity and resulted in cost savings and other benefits, including improved
speed to market, enhanced reliability and availability. Additional objectives included leveraging
emerging technologies, specifically in the areas of data center/hosting service offerings. The
executive team was also committed to a rapid decision-making and implementation process,
coupled with assurances that risk factors could be effectively mitigated and that anticipated
benefits could be quantified and tracked.
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Transformational change
Alternatives assessment
Rapid implementation
Risk mitigation
ISG support
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RFS framework
Due diligence and down-select assistance
Provider selection and pricing support
client benefits
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Commencement of transformation
Technology refresh
Cost savings
ISG Approach
While attending an ISG client conference, DPS executives became acquainted with ISG’s
“Request for Solution” (RFS) methodology. Rapidly emerging as an alternative to the traditional
sourcing models, the RFS takes a more open-ended approach by focusing on general problems,
goals and objectives rather than on pre-defined approaches and specific terms and conditions.
Rather than developing, socializing and agreeing on a detailed RFP up front, the RFS emphasizes
a collaborative approach to identifying opportunities and defining potential solutions.
The objective of operational transformation through innovation, coupled with an aggressive
timeline, made the RFS an attractive option for DPS. In a transformational scenario, where there
is typically more than one right answer, the RFS can be particularly effective in facilitating
creativity and innovation, and showing clients the range of possible alternatives.
DPS used an experienced and focused internal IT and Legal team, with support from ISG and
external legal counsel, to execute the RFS methodology. DPS issued an engagement package
based on the RFS model that solicited initial proposals from six providers. Through collaboration
and dialogue between client executives, provider teams and ISG, the initial pool was downselected to two providers over a 10-week period. This was followed by an 8-week due diligence
exercise with the two finalists, who provided detailed transformation plans and firm pricing. Six
weeks later, the winning provider was selected and contracts signed.
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