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OnDemandandITOutsourcing

The2004ChinaOutsourcingSummit

Sept15-16,2004

Beijing,ChinaIBMGlobalServices2023/4/30第一頁,共十五頁。Anondemandbusinessisanenterprisewhose

businessprocesses—integrated

end-to-end

acrossthecompanyandwithkeypartners,suppliersandcustomers—can

respondwithspeed

toanycustomerdemand,marketopportunityorexternalthreat.OnDemandBusiness:MorethanJustGettingBetter2023/4/302第二頁,共十五頁。TraditionalTheInternetOnDemandStructuredCalculationsDataProcessingTransactionsOpenStandardsConnectivityFlexibilitySimplicityModularComponentseasilydefinedandmanipulatedDynamicdefinitionandoperationsTheEmergingOnDemandComputingModel2023/4/303第三頁,共十五頁。WhydoGCGclientsneedtotransform?Aclient’smarket-increasingcustomizationofproductsanddeliveryleadtodemandforfasterinnovationGlobalizationhasintensifiedcompetition–fromwithinandoutsidetheregiondemandforcostreductiontoensurecompetitivenessIncreasedscrutinyofbusinesspracticesandethicsalongwithregulatoryissuesleadtonewdataandintegrationchallengesIndustryconsolidationleadtoincreasingfocusoncompany-widetransformationEmergingtechnologiestriggerintegrationacrossvaluechainsIncreasingrelianceoninformationtechnology,buttightbudgets2023/4/304第四頁,共十五頁。OnDemandBusinessDesignsDeliverSignificantResults

SonyChinaPCOutsourcingCLIENT’SBUSINESSISSUES:Lackofproperresourcestosupportits34branchesLargecapitalinvestmentbecomesaburdenIBM’SSOLUTION:Assetsownershipandmanagementtransfer/outsourcetoIBMSOleverageBlueExpress'countrywidecoveragetoprovidePCrelatedservicessuchas:PCrefreshment,upgrade,maintenance,viruscheck,remoteandon-sitesupport,etc.

CLIENT’SBENEFITS:Customer’scapitalinvestmentbecomesmonthlyexpense.Thisflexiblecoststructureenablescustomertoreduceriskandrespondquicklytothefuturechange.Customers'PCconfigurationandservicestandardizedunderIBM’scommittedservicelevel.Customer'sITstaffswillfocusonitscorebusiness2023/4/305第五頁,共十五頁。

WhatisOutsourcing?Outsourcingtakesplacewhenanorganizationtransferstheownershipofabusinessprocessorfunctiontoasupplier.“Inoutsourcing,thebuyerdoesnotinstructthesupplierhowtoperformitstaskbut,instead,focusesoncommunicatingwhatresultsitwantstobuy.Itleavestheprocessofaccomplishingthoseresultstothesupplier.”-TheOutsourcingExchange2023/4/306第六頁,共十五頁。CLIENTBUSINESSPERFORMANCEBEFOREANDAFTEROUTSOURCING:PROFITABILITYPerformanceRelativetoIndustry

(instandarddeviationsfromindustrymean)-0.3-1.1EPSRevenueEPSTrendCompanyperformance(relativetoindustry)priortotheoutsourcingengagementCompanyperformance(relativetoindustry)ina2-3yearperiodaftertheoutsourcingengagement

TheImpactofOutsourcing:

Earlyanalysisinthenewstudyshowssignificantimprovementsinclientprofitabilityina2-3yearperiodafterthestartoftheoutsourcingengagement…IBMResearchDivisionanalysisofpublicfinancialdata80globalcompanies2023/4/307第七頁,共十五頁。KeystoaSuccessfulOutsourcingRelationshipAsuccessfuloutsourcingrelationshipfocuseson:SettingclearexpectationsfortherelationshipattheoutsetEstablishingappropriategovernanceprotocolstoguidejointactionthatcandeliveronthepromiseoftherelationshipRecognizingtheneedtoadjusttherelationshipovertimeSharedriskandreturnMeetingservicelevelexpectations--notjustSLAsContractflexibility--theabilitytochangethescaleandcontentofwhatisbeingdeliveredasthebusinessenvironmentchangesInnovationandTransformationtoanOnDemandbusiness2023/4/308第八頁,共十五頁。OptimizeIndividualDataCentersScaleviaconsolidationsCommonprocessesStandardizationReducecost,streamlineoperationsScaleviaresourcevirtualizationAutonomicmanagementCreatesubstantialnewvalueAlwaysoninfrastructureResources,processandtechnologyondemandCommoditizedcomponentsReconfigurevalueofITapplicationsandservicesSkillsleverageReducecostsPresentFutureImplementOnDemandComputingLeverageGridTechnologiesConsolidateDeliveryCentersProductivity/BusinessValuePastOnDemandOutsourcingandITInfrastructure

Anaturalpartofthecomputingevolution:fromcentersofautomationtochangingthefundamentalsofindustriesandmarkets2023/4/309第九頁,共十五頁。SuppliersCustomersAnenterprisewhosebusinessprocesses–integratedend-to-endacrossthecompanyandwithkeypartners,suppliersandcustomers–canrespondwithspeedtoanycustomerdemand,marketopportunityorexternalthreat.OndemandservicesallowbusinessprocessestosenseandrespondtomeetbusinessobjectivesOfferingsEnterpriseBusinessProcessesParts&ServicesVirtualizedInfrastructure–Servers,Storage,Network…PolicyBasedManagement

OverallVision2023/4/3010第十頁,共十五頁。ERPAutomatedprovisioningbasedonresourcepoolinganddynamicallocationCapacityondemandBetteruseofresourcesSpeedReducedcostITreflectsthepriorityofthebusinessHRCRMOnline

ITprovisionsona“justincase”basisonanassumptionofpeakdemandMassiveOVER-provisioningHigheradministrativeoverheadVastlyunder-utilizedITresourcesITfailstoreflectbusinessneedsOnlineCRMERPHRFreePoolAutomatingInfrastructureDeliversValueThroughBetterAssetUtilization2023/4/3011第十一頁,共十五頁。CostEffectivePeakDemandInfrastructureReducescostofunderutilizedjust-in-casecapacityImprovesservicelevelswithfasterrecoveryandpeakloadsupportApp1App3App2App4App5AppNResourcePoolOrchestrationElementalToolsCode/DataAutomatedBestPracticesProd1Prod2Prod3PeakDemand2023/4/3012第十二頁,共十五頁。4–8HoursTotalTime13–23DaysAutomatedReturnserverto

freepoolVariable<1HourConfiguresecurityandnetworksettings5–10DaysHours<1HourAutomatedInstallsoftware5–10DaysIdentifyappropriateresourceforadditionalworkload3DaysITTasksManualUMImakesitpossibleFlexibleDemandOptionsavingsdependentonclientenvironmentInfrastructureAutomationCanSpeedDeployment,IncreaseReliabilityandSaveMoney2023/4/3013第十三頁,共十五頁。HLJJLLNGSGZHeBHuNJXNMGNXQHSDSXSCXJAHJSZJFJGDHaNYNSaXGXHuBHenTaiwanXZ3HrsFlightChengduChongqingKunmingHarubinShenyangDalianBeijingTianjingJinanNanjinShanghaiHangzhouXiamenWuhanXi'anFuzhouShenzhenHaikouNanningTaipeiTaizhongGaohsuingUrumqiLasaXiningLanzhouYinchuanHohhotChangchunShijiazhuangTaiyuanZhenzhouHefeiNanchangC

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