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Sourcing partnerships in the real world

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CIOnet UK event - Sourcing partnerships in the real world

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Sourcing partnerships in the real world

  1. 1. Sourcing Partnerships in the real worldCan they work & how?<br />
  2. 2. Richard Boynett – Experienced CIO<br />Extensive experience delivering large global business transformation projects <br />Achieved by building strong mutually beneficial partnerships within the business and with the providers of Information Technology<br />Leveraging the power of strong partnerships to deliver business value<br />Experience in:<br />Automotive manufacturing,<br />Distribution<br />Retail on and off line – B2B & B2C<br />Chemicals,<br />Consumer energy, <br />High tech manufacturing, <br />
  3. 3. Agenda<br />Where have ‘we’ come from?<br />Where do I want to be?<br />What does it take to build a partnership?<br />What are the advantages?<br />Success stories.<br />Questions and discussion<br />Do we still need multi vendor RFP's?<br />Would the a similar approach work internally?<br />
  4. 4. WHERE HAVE WE COME FROM?<br />
  5. 5. Yesterday: Where Have We Come From?<br />Zero Sum Game: Winners and Losers<br />We, the customer:<br />Have poor specifications...<br />...with weak management<br />little or no sponsorship...<br />..weaker project management<br />...no governance...<br />...creeping scopes...<br />...no strategy – all tactical...<br />..with no contingency...<br />...demand the lowest price...<br />...blame the ‘vendor’<br />With no understanding what it takes to build true partnerships<br />It’s all about £££<br />
  6. 6. Yesterday: Where Have They Come From?<br />Zero Sum Game: Winners and Losers<br />Vendors:<br />Bid low...get ‘em on the changes<br />Fixed price?<br />Build in some contingency<br />Bid low...get ‘em on the professional services<br />Time & Materials?<br />License to print money<br />Bid low... They never know what they want<br />Push system changes<br />Margin on margin<br />“Partnership” is a way to ‘milk’the customer <br />Oversell<br />Everybody is a competitor<br />“A” team on the bid, “C” team on the delivery...plus a few trainees<br />Blame the customer... sell them anything<br />It’s all about £££<br />
  7. 7. Where do I want the relationship to be?<br />Mutually beneficial partnerships<br />Lower cost of doing business<br />More responsive to my business<br />Understand my business at the highest level<br />An extension of my IT organisation<br />Jointly caring about the Quality<br />A joint vision of the future , building my strategy together<br />Trust and integrity<br />
  8. 8. Mutually Beneficial Partnerships<br />What does that look like?<br />Energy is spent on creating a larger pie, not fighting over how big the slice is<br />Based on mutual trust<br />Networks of partnerships<br />Adding value by partnering with other partners<br />Using breakdowns to create opportunities<br />Mutual support for new or risky projects<br />Network of commitments<br />No blame culture<br />Committed results driven<br />
  9. 9. What does it take to build a partnership?<br />A good customer<br />Know who are your partners and who are your suppliers (earn the right)<br />Share your business vision and issues<br />A process / contract for the teams<br />Constant and consistent communication - Rate the relationship<br />Know what will happen when one or the other gets it wrong<br />A vision of the future<br />Trust and integrity - It’s all about people and relationships<br />
  10. 10. Partnership Process<br />How to manage? <br />Senior sponsorship from all partners<br />Fast escalation process focused on resolution not penalties<br />Common benchmarking processes<br />Shared savings <br />Regular - joint strategy sessions<br />Willingness to act as reference sites<br />Look for opportunities to add value<br />Joint team development<br />Sharing of technologies<br />
  11. 11. What are the advantages?<br />Credibility<br />Your brand<br />Punch above your weight<br />Lower costs – Joint benchmarking<br />Fast decision making – no apples and Oranges<br />Lower margins now for future business, ‘for the future of the relationship’<br />Innovation<br />Quality - Reference site<br />Pre sales<br />More responsive<br />Build strategy with you<br />Fast to market<br />New products / opportunities<br />Trust and integrity <br />
  12. 12. What are the disadvantages?<br />You may get it wrong<br />Effort to maintain the internal and external relationships<br />Have to be a good customer<br />Based on people, trust and integrity<br />Take the blame<br />You can’t slip back into old ways<br />
  13. 13. Success stories<br />Partner day<br />Innovation<br />Executive credibility, my brand<br />Workshops<br />Lower margins for future business, for the future of the relationship<br />Quality people<br />Vision of the future - Build strategy with you<br />£200k not move the business<br />Gartner white paper<br />More responsive – issues – approvals x2<br />Reference site and Pre sales<br />Looking for a job<br />
  14. 14. Why does it work?<br />Rapid decision making possible because:<br />TRUST: Not frightened to make a decision based on little or no RFP process<br />GROWTH: Using both companies and people from past relationships to quickly grow new associations – learning and gaining benefit earlier<br />HUMILITY: Accepting that expertise is not always in house<br />PEOPLE: Engagement from the right people in each organisation<br />
  15. 15. So… From Vendors to Partners?<br />We’ve gone from:<br />A zero-sum game with winners and losers<br />Focused on short-term revenue<br />And moved to:<br />Deliberate, strategic, long term partnerships<br />Based on open communicationand trust<br />Aligned to mutually beneficial goals<br />Measured by the same stick<br />Our Partners are core members of our business…<br />…and we are key members of their businesses<br />
  16. 16. Questions and Discussion<br />Do we still need large multi vendor RFP's?<br />Would the a similar approach work internally?<br />