Smart Sourcing CIRED, Barcelona 13 May 2003 Sander van’t Noordende.

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Presentation transcript:

Smart Sourcing CIRED, Barcelona 13 May 2003 Sander van’t Noordende

© 2003 Accenture. All rights reserved. 2 Developments in the Utilities market Liberalization & Deregulation Mergers & Acquisitions Cross-border expansion Technology

© 2003 Accenture. All rights reserved. 3 Utilities Issues Customer service Middle management culture Silo’s after restructuring IT Governance (non) Transparency Working Capital

© 2003 Accenture. All rights reserved. 4 Separate “core” from “non-core” functions Marketing & Sales Trading Risk Management Marketing Asset Management Strategy & Management Finance & Administration Human Resources Procurement/Logistics Customer Care Information Technology Services Learning Field Services Facilities and Services Core functionsNon-core functions Build/AcquireSource

© 2003 Accenture. All rights reserved. 5 Impact on the organisation Existing capability gap will widen … Capability Sophistication Business Requirements for support functions Capabilities delivered by support functions Gap TodayFuture

© 2003 Accenture. All rights reserved. 6 Sourcing Partnerships 1. Establish vision of Sourcing alliance 2. Define transformation Process 3. Develop deal structure Time Capability Sophistication Business Requirements for support functions Capabilities delivered by support functions Today

© 2003 Accenture. All rights reserved. 7 Difference with conventional outsourcing Conventional outsourcing: Focus on cost reduction Limited transparency Commodities Static Limited result (< 10%) Bonus/Malus Sourcing Partnership: Cost reduction and strategic initiatives Transparency Strategic relevant capabilities Continuous transformation Significant result (20-50%) Risk/Reward sharing

© 2003 Accenture. All rights reserved. 8

9 Priorities Gain/Retain Control Drive Out Cost Deliver Value Time Typical Accenture Approach Focus

© 2003 Accenture. All rights reserved. 10 Sourcing Partnerships : Some Benefits Highly significant costs savings Access to competitive skills Improved career opportunities Improved management focus Higher, consistent service level Improved flexibility, speed Shared strategic risk Strengthened market position Increased competitiveness

© 2003 Accenture. All rights reserved. 11 Examples