Right Sourcing Seminar7 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’

Introduction

Right Sourcing – Enabling Collaboration Rien Dijkstra

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

There is something happening

"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.”

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.

Right Sourcing, a bird's eye view

Right Sourcing – Enabling Collaboration Rien Dijkstra/Pieter van der Ploeg

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

DeliverCustomer ProviderSLA/Contract

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

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

People: a Connected World

From Closedness, Hierarchy & Uniformiteit to Openness, Collaboration & Diversity

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

Right Sourcing

Right Sourcing is a core competence, Right Sourcing is Management Innovation

Make?

Buy?

Ally?

Shoring?

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.

Book is Available from E-tailers' websites like Amazon &

Barnes and Noble, etc.

ISBN-10: 1481792806 ISBN-13: 978-1481792806

Book is Available from E-tailers' websites like Amazon &

Barnes and Noble, etc.

ISBN-10: 1481792806 ISBN-13: 978-1481792806