Missing Bricks for Value Creation

3 DIMENSIONAL BUSINESS ASSESSMENT

Main Layer (X, Y, Z) Value Creation as function of R...
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Corporate entrepreneurship 3 dimensional Business assessments for value creation by Reza Hagel CPO & Principle

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Procurement Value Creation
as function of Risks, Commercials and Opportunities

Published in: Business
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Corporate entrepreneurship 3 dimensional Business assessments for value creation by Reza Hagel CPO & Principle

  1. 1. Missing Bricks for Value Creation 3 DIMENSIONAL BUSINESS ASSESSMENT Main Layer (X, Y, Z) Value Creation as function of Risks, Commercial and Opportunities Main activity axes defined as Risk, commercial & Opportunity Assessments, Need to be continuously performed at all phases of a future procurement cycle to secure value creation in all deliveries. Second layer relationship (x, y, z) Value creation as function of Efficiency, Sourcing & Innovation Between ‘’Value Creation’’ as the core delivery of procurement organization through: X,Y,Z (Efficiency, Vendor Innovation and strategic Sourcing) 1- Efficiency & Productivity Analysis X- Value Chain Analysis Y- Vendor Performance Analysis Z- Vendor Business Review 2- Sourcing Analysis X- Contract Analysis Y- Service Level Analysis Z- Cost Optimization Analysis 3- Innovation Analysis X- Business Need Identification Y- Vendor Capability Analysis Z- Markets, Trends & vendor data mining Third layer of measurable results (x,y,z) It is the measurable results of Efficiency, Innovations and sourcing strategy: 1- Efficiency & Productivity Improvement X- Vendor performance & deliverables Y- (BOM) Bill of material & Operations analysis through (SOM) Service Operations Modeling Z- Value Chain Optimization 2- Sourcing strategy development: X- TCO reduction, Cash flow optimization Y- Enhance contract compliance Z- Improve service level 3- Vendor Innovation development: X- Joint optimization initiative (existing state to generate innovation based on company identified needs) Y- Joint development initiative (Align vendor potentials and company identified needs for innovation development ) Z- Joint Market initiative (identified market opportunity for mutual growth) Page 1

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