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Sourcing partnerships in the real world
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Sourcing partnerships in the real world



CIOnet UK event - Sourcing partnerships in the real world

CIOnet UK event - Sourcing partnerships in the real world



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Sourcing partnerships in the real world Sourcing partnerships in the real world Presentation Transcript

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