This blog is for sourcing and procurement professionals to discuss and share perspectives, point of views, ideas and best practices around key sourcing and procurement topics.

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April 19, 2010

'To Be' or 'Not to Be' in Business Platforms model

While in traditional lift and shift BPO, one of the key activities during any transition is to map the "As-is" processes and create the "To-be" process in an outsourced and/or off-shored model. The success of transition is largely driven by the level of detail in this activity. A Business Platforms based outsourced model presents a different scenario altogether. Here, the delivered functionality within the platform application is largely pre-defined. The "customized" component is a minor element in comparison to the delivered functionality.


What we therefore have is, essentially a "To-be" process which is mapped to the client business context. The "As-is" process has little or no relevance in a platform on-boarding model. What however assumes significance in a platform on-boarding is the change management at the Customer and Service Provider's ends. In a lift and shift transition, change management is more around communication, internal and external, employee strategy and risk management. In a Business Platforms on-boarding model, the change management is at the level of detail of the process or function transition as the 'To be' entity is an entirely new one for both parties.

April 12, 2010

Business Platform model - the New Normal !

As organizations get out of the long recession and start looking at the best possible ways to capture the early green shoots of opportunity - there is a New Normal compared to the Normal  prior to the recession.

This New Normal indeed impacts multiple facets of Organization thinking , Behavior and Actions. Clearly, the New Normal has brought along with new focus and energy on alternative business models  which are geared to deliver to the new reality. Business Platforms is one such model.

Business Platform model - Provides the integrated service model which demystifies the complex governance involved in managing the various moving parts in a large scale transformation to drive business value. The Business Platform model brings together seamlessly  the various pieces of application, infrastructure, processing services and creates a simple accountability  and governance structure.

It also drives seamless ownership and business outcome lead behavior. Clearly this means the old structures of governance will have to be done way with at both the client and service provider end - replaced with a focus on managing business outcomes. This means having folks in the governance who bring a perspective which is cross functional ( cutting across Silos ) and also means the service providers create a client mind-set which is outcome based. This would mean the way service providers hire, train, enhance and retain will all have to change to support this new model.

The new model will need a new mindset and the new mind set will have to change and percolate  across all players in the eco system .This is the only way to survive in the new Normal and be successful!

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