for alb conference 2006 outsourcing: reducing operational risk adrian amariei ceo, axonite adrian...
TRANSCRIPT
for ALB Conference 2006
Outsourcing: reducing operational riskOutsourcing: reducing operational risk
Adrian Amariei
CEO, Axonite
Adrian Amariei
CEO, Axonite
19 oct 2006 2 of 18for ALB Conference 2006
AgendaAgenda
The promise of outsourcing
Who does it and why
Selecting and managing an outsourcing partner
Our experience at Axonite: the sell, the good, and the bad, and still the good
The promise of outsourcing
Who does it and why
Selecting and managing an outsourcing partner
Our experience at Axonite: the sell, the good, and the bad, and still the good
Today we will talk about:Today we will talk about:
19 oct 2006 3 of 18for ALB Conference 2006
Current trendsCurrent trends
Factors driving today’s business environment
• Standardization
• Increasing competition
• Ever-changing legislation
• Upturn in the economy
• Economic migration
• Demographic changes
• Social trends
• The Digital networked economy
Factors driving today’s business environment
• Standardization
• Increasing competition
• Ever-changing legislation
• Upturn in the economy
• Economic migration
• Demographic changes
• Social trends
• The Digital networked economy
19 oct 2006 4 of 18for ALB Conference 2006
Why outsource?Why outsource?
• Non-responsive IT department missing delivery dates = lost market opportunities.
• Difficulties to catch up with Technology changes and innovation
• Shrinking IT CAPEX
• Own IT organization does not provide industry best practices and processes
• Multi-IT vendor environment = resources spent into managing contracts
• Need to focus on core business.
• Non-responsive IT department missing delivery dates = lost market opportunities.
• Difficulties to catch up with Technology changes and innovation
• Shrinking IT CAPEX
• Own IT organization does not provide industry best practices and processes
• Multi-IT vendor environment = resources spent into managing contracts
• Need to focus on core business.
19 oct 2006 5 of 18for ALB Conference 2006
Who does it and whyWho does it and why
• Economies of scale and scope
• Arbitrage: labor, skills and infrastructure
• Economies of scale and scope
• Arbitrage: labor, skills and infrastructure
19 oct 2006 6 of 18for ALB Conference 2006
Outsourcing guidelines 1 of 2Outsourcing guidelines 1 of 2
• Answer this: “why do you want to do it?”
• Consider any activity and processing that:
• Is rule based
• Is transactional
• Is repetitive
• Is not core
• Has high volumes
• You can measure properly
• Don’t touch Strategic differentiators
• Answer this: “why do you want to do it?”
• Consider any activity and processing that:
• Is rule based
• Is transactional
• Is repetitive
• Is not core
• Has high volumes
• You can measure properly
• Don’t touch Strategic differentiators
19 oct 2006 7 of 18for ALB Conference 2006
Outsourcing guidelines 1 of 2Outsourcing guidelines 1 of 2
Managing your outsourcer
• Pay attention to SLA
• Check regulations on the issue and outsourcer compliance
• Verify security of data transfers and processing
• Ask for referrals
• Check reaction time and quality to your requests
Managing your outsourcer
• Pay attention to SLA
• Check regulations on the issue and outsourcer compliance
• Verify security of data transfers and processing
• Ask for referrals
• Check reaction time and quality to your requests
19 oct 2006 8 of 18for ALB Conference 2006
My Experience at AxoniteMy Experience at Axonite
• Axonite is about enabling the “real-time enterprise” with mobile messages.
• We bridge business processes to real people in 6 seconds.
• We connect Enterprise applications and databases to mobile phones.
• Challenges we encountered, despite clear value proposition:
• Enterprise pricing expected to be same as retail pricing.
• “I can do that too” and TCO
• Data quality
• Axonite is about enabling the “real-time enterprise” with mobile messages.
• We bridge business processes to real people in 6 seconds.
• We connect Enterprise applications and databases to mobile phones.
• Challenges we encountered, despite clear value proposition:
• Enterprise pricing expected to be same as retail pricing.
• “I can do that too” and TCO
• Data quality
19 oct 2006 9 of 18for ALB Conference 2006
How it works, actually How it works, actually
• Let's see a quick live demo.
• If you want to be part of it, please send a SMS with command ‘N’ and your first name to: 0788 555 555
Example: ‘N Gabi’
• Let's see a quick live demo.
• If you want to be part of it, please send a SMS with command ‘N’ and your first name to: 0788 555 555
Example: ‘N Gabi’
19 oct 2006 10 of 18for ALB Conference 2006
Why is this outsourcing strategic, and “real-time”…… all at the same time??Why is this outsourcing strategic, and “real-time”…… all at the same time??
19 oct 2006 11 of 18for ALB Conference 2006
Performance Indicators Framework 1 of 3Performance Indicators Framework 1 of 3
Customer
• Customer Satisfaction
• Self-service
• Completeness Response Rate
• Service Availability
Customer
• Customer Satisfaction
• Self-service
• Completeness Response Rate
• Service Availability
“If you can’t measure it – it doesn’t count” John Yard“If you can’t measure it – it doesn’t count” John Yard
Customer, Financial, StrategicCustomer, Financial, Strategic
19 oct 2006 12 of 18for ALB Conference 2006
Performance Indicators Framework 2 of 3Performance Indicators Framework 2 of 3
Financial
• Call-Center OPEX
• Aging of accounts receivable
• Risk management
Financial
• Call-Center OPEX
• Aging of accounts receivable
• Risk management
“If you can’t measure it – it doesn’t count” John Yard“If you can’t measure it – it doesn’t count” John Yard
19 oct 2006 13 of 18for ALB Conference 2006
Performance Indicators Framework 3 of 3Performance Indicators Framework 3 of 3
Strategic
• Business advancement in face of competition
• Time to market
• Innovation
• Continuous Improvement
Strategic
• Business advancement in face of competition
• Time to market
• Innovation
• Continuous Improvement
“If you can’t measure it – it doesn’t count” John Yard“If you can’t measure it – it doesn’t count” John Yard
19 oct 2006 14 of 18for ALB Conference 2006
What’s next?What’s next?
• It’s all about money in and money out. That is, PROFIT.
• Gain your independence – escape the prison named ‘license’
• You need to be agile in the market place – though times are ahead
• Have your next providers earn your money
• Go SaaS with some of your business processes.
• It’s all about money in and money out. That is, PROFIT.
• Gain your independence – escape the prison named ‘license’
• You need to be agile in the market place – though times are ahead
• Have your next providers earn your money
• Go SaaS with some of your business processes.
19 oct 2006 15 of 18for ALB Conference 2006
Quick review 1 of 3Quick review 1 of 3
Trends:
• Increasing competition
• Ever-changing legislation
• Upturn in the economy
• Demographic changes
• Social trends
• The Digital networked economy
Trends:
• Increasing competition
• Ever-changing legislation
• Upturn in the economy
• Demographic changes
• Social trends
• The Digital networked economy
19 oct 2006 16 of 18for ALB Conference 2006
Quick review 2 of 3Quick review 2 of 3
Why outsource?
• Non-responsive IT department = missing market opportunities.
• Difficulties to catch up with Technology changes and innovation.
• Shrinking IT CAPEX
• Own IT organization has natural limitations
• Need to focus on core business.
Why outsource?
• Non-responsive IT department = missing market opportunities.
• Difficulties to catch up with Technology changes and innovation.
• Shrinking IT CAPEX
• Own IT organization has natural limitations
• Need to focus on core business.
19 oct 2006 17 of 18for ALB Conference 2006
Quick review 3 of 3Quick review 3 of 3
OK, we outsource – IF…
• Is rule based
• Is transactional
• Is repetitive
• Has high volumes
• You can measure properly
OK, we outsource – IF…
• Is rule based
• Is transactional
• Is repetitive
• Has high volumes
• You can measure properly
19 oct 2006 18 of 18for ALB Conference 2006
Adrian Amariei shall welcome your comments at
+40 21 323 94 63
Adrian Amariei shall welcome your comments at
+40 21 323 94 63