Carlos Gonzalez Yanes, Founder Institute

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Outsourcing, Partners and Suppliers Switzerland Summer 2012 What should you outsource, and what do you need to do in-house? How to segment the vendors that you need? What vendors do you need right when you start, and what vendors will you need as you grow? How do you recruit and select the important vendors? What are tips and tricks to manage vendors in order to ensure a consistent level of quality? How do you fire and replace under-performing vendors? What are common mistakes made when dealing with vendors?

Founder Institute
Puerto Rico Summer 2012 Semester
August 29, 2012

Outsourcing, Partners and Suppliers…

Carlos González-Yanes
Managing Partner
CRITERION Strategic Services Group

Why?

• Speed and Scalability
• Expertise (Hyper-especialization and
†echnification)
• Cost Structure and Cost Reduction
• Flexibility
• Competition…

What?

• Define what is REALLY Core and Strategic.

Everything else is Support…

… and can be Outsourced.

Then, what is CORE?
• Where Competitive Advantage is.
• Where Intellectual Property is.
• Where Mid-term Growth is.
• Where Flexibility, Speed and Control are game
changers…

CORE is…
• Software Design and Architecture

• Business Intelligence / KPI Control

• “Code Integrity” and Standarization

• Corporate Strategy / Funding

• …

So, what to Outsource?
• Professional Services: Legal, Accounting, HR, …
• Marketing: SEO, SEM, Advertising, PR, Lead
Generation, Graphic Design, …
• Technology: Infrastructure, Web Design,
Mobile, Back-end Apps, Hosting, CDN,
Support, Testing, …
• Operations: Administrative, General, Input
purchases, …

Typical Enterprise App. Portfolio:
• Portal/CMS
• Payments/eCommerce
• CRM/ERP
• Project Management
• Analytics/BI
• Collaboration
• Administrative

What is the level of control that I need with these?

Outsource the tool, but control it inhouse

Selecting Vendor
• What service?
• Can I start small and cheap?
• Can it scale up?
• How is the level of support?
• Where will it be in 5, 10 years?
• Support & Development Ecosystem.

How to do it?
• Identify
• Evaluate and Compare
– Not only price
– Trusted advisors/references
– Expertise/specialization
– Flexibility/Fit-to-need
• Be prepared: study the market, understand
current prices and trends, methodologies,
proposal structuring, mix & combos, …

How to set it up?
• Standarized, performance-based agreements
• Trials/Pilots (start with something!)
• Prizes, penalties for delays, thresholds, …
• Service Level Agreement (SLA): Quality,
milestones, evaluation, termination, …
• Performance monitoring/dashboarding
instead of final deliveries
• Review, review, review (weekly, monthly, Q.)

Software Development & Coding
Employee Contractor/F Insourcing/lo “Near Offshoring
reelance cal Out. shoring”*

Benefit Control Some Control Some Control Lower Cost Price
Faster “Packages” Packages
Replacement Warranties Joint Venture

Risk Expensive Retention Long Term Language/Culture High risk for
Rotation Commitment Commitment Learning Curve very small/lean
Availability IP loss Overhead Project businesses
Conflict of Preassure Management
Interest
Expertise Vendor Management, Project Management, Architecture, Web Design, Software
/ Skills Development, Testing, Operations, Support, …
Required
(Availability / Cost :: High – Low)

Important:
• Use Technology to control and enhance
Vendor/Partner relation
• Business & IT Strategies must be aligned
• Do not depend on one sole vendor but be
careful not to overstretch
• Keep in mind that a robust communication
structure (seriously!) has to be in place
• Never give away your IP and your Core

Thank You!
Carlos González-Yanes

1200 Brickell Ave., Suite 1950
Miami, FL 33131 USA
+1-305-310-2928
carlos@criterionstrategic.com

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[To download this presentation, visit: https://www.oeconsulting.com.sg/training-presentations] This PowerPoint compilation offers a comprehensive overview of 20 leading innovation management frameworks and methodologies, selected for their broad applicability across various industries and organizational contexts. These frameworks are valuable resources for a wide range of users, including business professionals, educators, and consultants. Each framework is presented with visually engaging diagrams and templates, ensuring the content is both informative and appealing. While this compilation is thorough, please note that the slides are intended as supplementary resources and may not be sufficient for standalone instructional purposes. This compilation is ideal for anyone looking to enhance their understanding of innovation management and drive meaningful change within their organization. Whether you aim to improve product development processes, enhance customer experiences, or drive digital transformation, these frameworks offer valuable insights and tools to help you achieve your goals. INCLUDED FRAMEWORKS/MODELS: 1. Stanford’s Design Thinking 2. IDEO’s Human-Centered Design 3. Strategyzer’s Business Model Innovation 4. Lean Startup Methodology 5. Agile Innovation Framework 6. Doblin’s Ten Types of Innovation 7. McKinsey’s Three Horizons of Growth 8. Customer Journey Map 9. Christensen’s Disruptive Innovation Theory 10. Blue Ocean Strategy 11. Strategyn’s Jobs-To-Be-Done (JTBD) Framework with Job Map 12. Design Sprint Framework 13. The Double Diamond 14. Lean Six Sigma DMAIC 15. TRIZ Problem-Solving Framework 16. Edward de Bono’s Six Thinking Hats 17. Stage-Gate Model 18. Toyota’s Six Steps of Kaizen 19. Microsoft’s Digital Transformation Framework 20. Design for Six Sigma (DFSS) To download this presentation, visit: https://www.oeconsulting.com.sg/training-presentations

Digital Transformation Frameworks: Driving Digital Excellence

Operational Excellence Consulting

[To download this presentation, visit: https://www.oeconsulting.com.sg/training-presentations] This presentation is a curated compilation of PowerPoint diagrams and templates designed to illustrate 20 different digital transformation frameworks and models. These frameworks are based on recent industry trends and best practices, ensuring that the content remains relevant and up-to-date. Key highlights include Microsoft's Digital Transformation Framework, which focuses on driving innovation and efficiency, and McKinsey's Ten Guiding Principles, which provide strategic insights for successful digital transformation. Additionally, Forrester's framework emphasizes enhancing customer experiences and modernizing IT infrastructure, while IDC's MaturityScape helps assess and develop organizational digital maturity. MIT's framework explores cutting-edge strategies for achieving digital success. These materials are perfect for enhancing your business or classroom presentations, offering visual aids to supplement your insights. Please note that while comprehensive, these slides are intended as supplementary resources and may not be complete for standalone instructional purposes. Frameworks/Models included: Microsoft’s Digital Transformation Framework McKinsey’s Ten Guiding Principles of Digital Transformation Forrester’s Digital Transformation Framework IDC’s Digital Transformation MaturityScape MIT’s Digital Transformation Framework Gartner’s Digital Transformation Framework Accenture’s Digital Strategy & Enterprise Frameworks Deloitte’s Digital Industrial Transformation Framework Capgemini’s Digital Transformation Framework PwC’s Digital Transformation Framework Cisco’s Digital Transformation Framework Cognizant’s Digital Transformation Framework DXC Technology’s Digital Transformation Framework The BCG Strategy Palette McKinsey’s Digital Transformation Framework Digital Transformation Compass Four Levels of Digital Maturity Design Thinking Framework Business Model Canvas Customer Journey Map

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Innovation Management Frameworks: Your Guide to Creativity & Innovation

Digital Transformation Frameworks: Driving Digital Excellence

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Carlos Gonzalez Yanes, Founder Institute

1. Founder Institute Puerto Rico Summer 2012 Semester August 29, 2012 Outsourcing, Partners and Suppliers… Carlos González-Yanes Managing Partner CRITERION Strategic Services Group

2. Why? • Speed and Scalability • Expertise (Hyper-especialization and †echnification) • Cost Structure and Cost Reduction • Flexibility • Competition…

3. What? • Define what is REALLY Core and Strategic. Everything else is Support… … and can be Outsourced.

4. Then, what is CORE? • Where Competitive Advantage is. • Where Intellectual Property is. • Where Mid-term Growth is. • Where Flexibility, Speed and Control are game changers…

5. CORE is… • Software Design and Architecture • Business Intelligence / KPI Control • “Code Integrity” and Standarization • Corporate Strategy / Funding • …

6. So, what to Outsource? • Professional Services: Legal, Accounting, HR, … • Marketing: SEO, SEM, Advertising, PR, Lead Generation, Graphic Design, … • Technology: Infrastructure, Web Design, Mobile, Back-end Apps, Hosting, CDN, Support, Testing, … • Operations: Administrative, General, Input purchases, …

7. Typical Enterprise App. Portfolio: • Portal/CMS • Payments/eCommerce • CRM/ERP • Project Management • Analytics/BI • Collaboration • Administrative What is the level of control that I need with these? Outsource the tool, but control it inhouse

8. Selecting Vendor • What service? • Can I start small and cheap? • Can it scale up? • How is the level of support? • Where will it be in 5, 10 years? • Support & Development Ecosystem.

9. How to do it? • Identify • Evaluate and Compare – Not only price – Trusted advisors/references – Expertise/specialization – Flexibility/Fit-to-need • Be prepared: study the market, understand current prices and trends, methodologies, proposal structuring, mix & combos, …

10. How to set it up? • Standarized, performance-based agreements • Trials/Pilots (start with something!) • Prizes, penalties for delays, thresholds, … • Service Level Agreement (SLA): Quality, milestones, evaluation, termination, … • Performance monitoring/dashboarding instead of final deliveries • Review, review, review (weekly, monthly, Q.)

11. Software Development & Coding Employee Contractor/F Insourcing/lo “Near Offshoring reelance cal Out. shoring”* Benefit Control Some Control Some Control Lower Cost Price Faster “Packages” Packages Replacement Warranties Joint Venture Risk Expensive Retention Long Term Language/Culture High risk for Rotation Commitment Commitment Learning Curve very small/lean Availability IP loss Overhead Project businesses Conflict of Preassure Management Interest Expertise Vendor Management, Project Management, Architecture, Web Design, Software / Skills Development, Testing, Operations, Support, … Required (Availability / Cost :: High – Low)

12. Important: • Use Technology to control and enhance Vendor/Partner relation • Business & IT Strategies must be aligned • Do not depend on one sole vendor but be careful not to overstretch • Keep in mind that a robust communication structure (seriously!) has to be in place • Never give away your IP and your Core

13. Thank You! Carlos González-Yanes 1200 Brickell Ave., Suite 1950 Miami, FL 33131 USA +1-305-310-2928 carlos@criterionstrategic.com

Editor's Notes

Never give away your core business or IPDon’t think short term
Never give away your core business or IPDon’t think short term
Never give away your core business or IPDon’t think short termIs it very especific or generic?
Content delivery network (akamai)
Where is your IP?
Can it scale up without replacingAre there a lot of people to run it?
List of suppliersGet the feel, references, call them, ask them how current are, specific expertiseBE CAREFUL OF MARKETING
If they are good will say ok to performance basedAvoid single vendors
Employee: Project Management, ArchitectureFreelance: Project Management, Web Design, Coding,
Eg. Web Design can become legacy…Ejemplo electric socios…Ejemplo tkf directtv

Carlos Gonzalez Yanes, Founder Institute

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Editor's Notes