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Moving From Outsourcing To A 360 Degree Partnership Erick Watson
The document discusses the shift from outsourcing to forming 360° partnerships, emphasizing the importance of a well-defined organizational culture to create value. With the global sourcing market expected to grow significantly, sourcing organizations must focus on integrating solutions and enhancing customer experiences to fend off commoditization threats. It highlights the need for cultural integrity within sourcing to deliver customer value and build strong partnerships.
Moving From Outsourcing To A 360 Degree Partnership Erick Watson
- 1. Moving from Outsourcingto a 360° PartnershipErick WatsonMicrosoft ChinaStrategic Partnership GroupNorthwest Chapter
- 2. Sourcing competition increasesdaily“Global Sourcing market should grow 20% YoY” (Everest Group 2011 Market Predictions)
- 3. Commoditization threatens yourexistence“Cost will remain the #1 concern for companies who outsource” (Gartner on Outsourcing 2010)
- 4. Sourcers need aCultural Revolution!
- 5. Clear culture createsclear value>80M units shipped in first year<2M units shipped in first year
- 6. Sourcers must integrate…3.CustomerExperiences2. Solutions1. Organizations…via well-designed culture
- 7.
- 8. Culture – noun: a set of shared attitudes, values, goals and practices that characterizes an institution or organization.Define & establish your culture
- 9. Proclaim authentic valuese.g.Microsoft Values: Integrity & Honesty; Open & Respectful; Big Challenges; Passion; Accountable; Self-Critical
- 10. Say “No” towhat doesn’t fit
- 11.
- 12. Begin with thebasics
- 13. Lay claim tointegrated value
- 14. Fight back againstcustomer“disintegration”
- 15.
- 16. Organize from customer’sperspective
- 17. Create customer evangelistsU.S.Bricks & Mortar Shoe Retailers: 5Online Shoe Retailers: >41,000Zappos Market Cap: $1.2 Billion in 9 yrs.
- 18. Measure, track &improveDISCLAIMER:"Everything that can be counted does not necessarily count; everything that counts cannot necessarily be counted". Anonymous
- 19. Can sourcers achievecultural integrity?
- 20.
- 21. Sourcers must integrate…3.CustomerExperiences2. Solutions1. Organizations…via well-designed culture
- 22. Cultural integrity deliverscustomer value
- 23. Culture creates 360°Partners…Erick Watsonerick.watson@microsoft.com(425)894-3301 http://www.linkedin.com/in/erickwa
- 24.
- 25. Image CreditsSlide 03:http://grassrootsgourmet.net/2009/02/10/top-5-most-irresponsible-meals-of-all-time/commodity-corn/Slide04: http://www.dev.net.npSlide 05: courtesy of Microsoft Corporation http://www.microsoft.comSlide 07: http://commons.wikimedia.orgSlide 08: http://idzinecards.comSlide 09: http://www.lichfield.gov.ukSlide 10: http://www.flickr.comSlide 11: courtesy of The Boeing Company http://www.boeing.com
- 26. Image Credits (Continued)Slide13: courtesy of Apple Computer http://www.apple.comSlide 14: courtesy of Warner Brothers http://www.warnerbros.comSlide 16: http://www.targetcastgroup.comSlide 17: courtesy of Zapposhttp://www.zappos.comSlide 18: http://www.flickr.comSlide 19: courtesy of Microsoft Corporation http://www.microsoft.comSlide 20: courtesy of the Hormel Company http://www.spam.com
Editor's Notes
- #2 Thank you for having me…Part of my job at Microsoft is to grow our China-based Partners, and to help transform their businesses from “outsourcers” to “360 degree partners”My job today is to help you think about your business differently, and to share some ideas that I hope you find beneficial…
- #3 Here’s a view of all the countries that I could identify that are actively growing their sourcing commerce, both outbound and inbound. Traditional outbound markets include North America and Western Europe. Inbound growth markets include China, Southeast Asia, Eastern Europe, and South America. India and Philippines are facing growth pressure due to wage inflation there.Everest Group stats. 20% YoY Growth
- #4 What’s driving the growth? A waterfall of global labor arbitrage. For every outsourcing contract in play there are a ten other companies in a dozen different countries ready to pick up the business if you should falter. How do you put more distance between yourself and the competition while continuing to grow your business?
- #5 With apologies to my Chinese friends, I submit that today’s Sourcers need to experience a Revolution in their Culture.What’s the one critical difference between a partner with staying power and one that’s running a race to the bottom? It’s Culture.What differentiates an “outsourcer” from a “360 degree Partner”? It’s Culture.(Evolution vs. Revolution)
- #6 Original XBOX vs. Zune Case Study“Kick-ass” vs. “Who are we building this for?”
- #8 How should you think about organizing in a way that builds strong culture while still meeting your objectives?
- #9 Culture (def.) : The set of shared attitudes, values, goals and practices that characterizes an institution or organization.Language, AttitudeSymbols, Signs & ActionsAll the little details…
- #10 Microsoft Values: Integrity & Honesty; Open & Respectful; Big Challenges; Passion; Accountable; Self-Critical
- #11 No to employees, customers, deals or behaviors that don’t meet the bar…
- #12 Boeing 737 vs. 787 Case Study…
- #13 Good people. Strong competencies. Flawless execution
- #14 “Name and Claim” the value that you add by taking an integrated approach. Shout about it! Defend it!iPod Shuffle Case Study
- #15 Push back on customers and others who ask you to compromise on your culture and the benefits of your integrated approach…