Presentation at Right Sourcing Seminar following the publication of the book 'Rightsourcing - Enabling Collaboration'

1. Right Sourcing Seminar
7 June 2013
Utrecht
“If you want to build a ship, don't drum up the men to
gather wood, divide the work and give orders.
Instead, teach them to yearn for the vast and endless sea.”
Antoine de Saint-Exupery,
„The Wisdom of the Sands‟

2. Introduction
Right Sourcing – Enabling Collaboration Rien

3. Outsourcing is now “yesterday‟s model”
Jeff Immelt, CEO of General Electric, 2013

4. There is something happening

5. "Sourcing is a core capability of being a savvy enterprise - however big or small –
and of being a savvy consumer. The faster markets change, and the more options
they offer us, the better at sourcing we all have to be"
Chris Potts
"Sourcing is becoming an increasingly complex task - one that requires fundamental
changes in management thinking, radical new ways in which to communicate and
deal with knowledge, and a totally new and different view of all the stakeholders"
François Gossieaux
“Shortening time to market, increasing transaction volumes, 24 x 7 business at lesser
cost puts a burden on organizations.
The puzzle is how to organize an organization; which business functions are part of the
own organization and which are part of the market.”

6. Sourcing is the process of organizing and procuring an optimal
combination of people, components and services inside and outside
an organization to produce and deliver products and services
Our proposition is that the modern enterprise must fundamentally rethink its
sourcing equation (Organization, People, Economics and Technology) to
become or remain viable.
We have dubbed this Right Sourcing.

7. Right Sourcing,
a bird's eye view
Right Sourcing – Enabling Collaboration Rien Dijkstra/Pieter van der Ploeg

8. Sourcing: the dominant logic
Dominant logic is a risk in rapidly changing environments
But ...
The dominant tendency of the
hedgehog to roll for an upcoming
fox itself is effective.
With an oncoming car another
measure would be better.
The issue of Sourcing is often
approached from a dominant
logic, based on "as we always do"
Sourcing = Outsourcing =Procurement
Buy
Deliver
Customer ProviderSLA/Contract

9. Economy: the boundaries of the
organization
Value chain transition changing the identity and the boundaries of the organization
From a linear
economy with a artificial
linear Value chain
• Based on Take, Make
and Dispose
• Organizational
boundaries based on
focus on cost
minimization
To a circular economy
with a Value grid
• Based on Take, Make
and Re-Use
• Organizational
boundaries based on
focus maximum
collaboration
• Origin of the prosumer

10. Technology: a Digital World
Digitization put presure on old thoughts and methods
From a physical/ industrial
world
• CAPEX & OPEX driven
• With high Replication &
Transportation cost
• Means of production for
“the happy few”
To a digital/virtual world
• OPEX driven
• With Replication &
Transportation cost
almost nil
• Consumerization of the
means of production &
knowledge have
important implications
for ideas about
control, ownership &
production

11. People: a Connected World
From Closedness, Hierarchy & Uniformiteit to
Openness, Collaboration & Diversity

12. Organization: a Wicked Organization
Organizations are limited manageable
t
€
Organizations: contradictions and surprises
Small actions: Large consequences
Rationality decisions: limited by available money, time,
knowledge and resources
No 2nd chance

13. Right Sourcing
Right Sourcing is a core competence, Right Sourcing is Management Innovation
Make?
Buy?
Ally?
Shoring?

14. Join us:
LinkedIn (www.linkedin.com/company/1599968) or
Facebook (www.facebook.com/pages/The-Sourcing-
Initiative/370041019775593)
Or start a discussion about Right Sourcing on our website (www.sourcing-
it.org)
and invite other people to join.

15. Book is Available
from E-tailers' websites like Amazon &
Barnes and Noble, etc.
ISBN-10: 1481792806
ISBN-13: 978-1481792806

16. Book is Available
from E-tailers' websites like Amazon &
Barnes and Noble, etc.
ISBN-10: 1481792806
ISBN-13: 978-1481792806