Vendor Management Conference
15
consulting | research | contracting Value co-creation for the customer Partnering to deliver value in the end to end customer journey
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Transcript of Vendor Management Conference
consulting | research | contracting
Value co-creation for the customer
Partnering to deliver value in the end to end customer journey
Ag
en
da
1.Why do we outsource
2.The balancing act
3.Outsourcing the customer
centric way
3
Why do we Outsource?
Inte
rna
l Focus
What about the customer?
4
The Balancing Act
Customers
Costs
Operational Efficiency
Best Practice
Suppliers
Market Forces
Regulation &
Governance
Staff
Customer Centricity….
What is Outside In?
6
What is Outside In?
21st century philosophy for managing an organisation by putting the customer at the heart of everything we do.This requires a change in mind set which moves away from our Industrial
Age thinking towards a Customer Centric model.
The way you organise work within every department and across the
enterprise MUST change.
7
8
The Triple Crown
9
REVENUE
COST
SERVICE
Winning the Triple Crown
10
Shift of focus to the full customer journey uncovers massive opportunities to improve the greater value chain by
targeting and improving Moments of Truth, Breakpoints and Business Rules
Doing the right thing
Southwest Airlines Value Chain
Key focus on
this process
only for
internal
efficiencies,
cost control
& throughput
Doing
things right
Outside In
Inside Out
Enquire about a trip
Navigate to the airport
Experience hospitality
Baggage transportation
Ticket Sale and Baggage
CollectionEnjoy the trip
Relax in hotel room
Return homeEnjoy coffee
at home
11
Shift of focus to the full customer journey uncovers massive opportunities to improve the greater value chain by
targeting and improving Moments of Truth, Breakpoints and Business Rules
Doing the right thing
Southwest Airlines Value Chain
Enquire about a trip
Navigate to the airport
Experience hospitality
Baggage transportation
Ticket Sale and Baggage Collection
Enjoy the tripRelax in hotel
roomReturn home
Enjoy coffee at home
Outside In
Baggage
Charging for
checked bags
(will save $36
million)
Hotels
Helping
passengers
book rooms
($17 million)
Car Rental
Partnering with
Hertz ($70
million)
Airport
Concession Splitting sales
with terminal
vendors
(proposed)
Parking
Sharing fees
with lot owners
(proposed)
In-Flight
Services Offering cell use,
gambling, and
seat back ads
(proposed)
In-Flight
Concessions
Selling drinks
and snacks
($61 million)
Plane-Wrap
AdvertisingSelling space on
fuselage exteriors
($100,000 per
airplane)
Baggage
Check in
luggage when
you book out of
hotel
12
Identify New Customer
Need
Broaden the Value Chain to meet the
full need
Identify Suppliers and Partners to
provide an end-to-end solution
Build strategic view & operating
model (skills and
capabilities)
Empower and Manage
Suppliers
Meet the
Need
GOAL: Business Growth
How does an Outside In Organisational Strategy align with Outsourcing in South Africa?
Mind set
change
KPI’s &
SLA’s
51% black owned
30% black women owned
QSE’s or EME’s
Shared
Value
Customer
Community Organisation
Creating jobs
13
Want to know more?
Next course starting 14 September– book today!
14
Questions
?
