Business Transformation Outsourcing © 2005 IBM Corporation Service Science March 2005.

Business Transformation Outsourcing

Service Science © 2005 IBM Corporation

Service Science

March 2005


© 2003 IBM Corporation2 March 2005

Improved capability to win new and high-value deals

Improved contract profitability due to better deployment of skills

Improved client satisfaction due to improved domain expertise

Reduced delivery risk and improved deliver capability

Significant improvement to retain talent and create lock-in

Market differentiator for IBM as the employer of choice

Business Benefits

Stakeholder BenefitsCustomer Employee Stakeholder Environment

Satisfaction Enhanced SAT due to continuity of key personnel

Improved quality of service delivery (Domain Expertise and Customer Insight leading to Partnership vs. vendor)

Enhanced skills to perform job better, easier

Improved clarity in career progression

Gain reputed academic credentials

Improved Ability to win high-value deals

Employer of choice – ease in attracting and retaining talent

Win-Win between Academia and Business needs

Productivity Improved productivity Right-skilled to drive process productivity

Improved Domain Expertise to drive business metrics (Big “Y”)

Increased productivity

Retain key employees

Deploy right skill sets

Competitive advantage in the market



GoalsCreate a platform for Service Science

to improve contract profitability, delivery efficiency and cost optimization

Integrate Service Science with PDF to deliver maximum benefits

Learning threads with curriculum maps

Framework/roadmap and plan for development of curriculum

Completion Criteria

Multi Generation Plan (MGP)

MGP 1 (Sep 2005) MGP 2 (July 2005) MGP 3

Services Sciences for BTO

Create Learning Threads & Service Science Curriculum Map

Develop Model for Prioritizing Service Science Development

Create plan for L&K to develop Service Science Curriculum

Interlock with IBM Research & external agencies to evolve Service Science for BTO

Establish and institutionalize Service Science for BTO



Business Benefits - $ Benefits

Category Operational Definition Base Case Improvements Benefits Assumptions

AttritionImprove productivity, increase through put 90 Mn 0.50% 450000

18 M $ for BLR BTO, that is 20% of total BTO Cost

SkillsAlign skills to the job to increase profitability 90 Mn 0.50% 450,000

18 M $ for BLR BTO, that is 20% of total BTO Cost

Hiring CostReduced hiring and training costs 15 Mn 2.00% 300,000

Reduce by 20% on the current attrition

1.2 Mn

Cost Avoidance

Revenue Growth

Total Benefits ($)

External Productivity

Internal ProductivityWork In

Progress

Work In Pro

gress



Our Approach

Create Learning Threads

Model for Prioritizing

Service Science Development

Create plan for L&K to develop Service Science

Curriculum

• Create framework for identifying Learning Threads

• Agree Learning Threads with stakeholders

Create Service Science

Curriculum Map

• Develop Meta Tag framework• Map Service Science curriculum• Map Learning Threads and Service

Science curriculum

• Create Model for prioritizing Curriculum development

• Agree on model for prioritization

• Based on priority and need, develop detailed plan for development and deployment

1 A

2 3

1 B




Identify and confirm the threads for dimensional and functional capabilities/skills

Level 1 Level 2 Level 3 Level 4 Level 5 Level 6Demonstrates with regular supervision:

Demonstrates with moderate supervision:

Demonstrates with limited supervision:

Demonstrates with minimal oversight:

Demonstrates independently: Demonstrates with thought leadership:

0.1

Performed basic research and analysis of simple problems, organizing information in an understandable manner

Broke down business process problems, and developed effective analytical solutions

Developed and implemented effective analytical solutions to complex problems within a process area

Applied process knowledge and prior experiences to systematically break down complex multi-dimensional problems into components, recommend alternatives, and develop analytical solutions to solve these problems.

Achieved recognition as a subject matter expert in process transformation outsourcing and applied knowledge to resolve issues across the organization

Achieved recognition as subject-matter expert and thought leader outside own region, and as a leader in the external marketplace

0.2

Demonstrated understanding of the requirements of customer contract (SLA) as it related to role, and ensured commitments were met in a timely manner when responding to client requests

Applied understanding of the customer contract (SLA) (short term and long term contract obligations) to consistently meet expectations and respond to client requests as they related to the process

Recognized and addressed the need for customer contract (SLA) changes to activities and drivers, and escalated appropriately

Detected problems that affected customer contract (SLA) well in advance of a serious problem or risk occurring, analyzed and documented potential solutions, and presented recommendations for improvements.

Consistently managed client expectations, ensured delivery of highest quality service in accordance with the customer contract (SLA), and recognized contract business drivers across processes

Acted as trusted and broad-based business advisor to senior level client management

0.3

Understood the purpose of established internal and client controls and documented processes

Identified potential gaps in controls and common processes, and understood the implications of non-compliance

Proposed possible solutions in areas of non-compliance and potential gaps in service delivery, to provide an effective control environment for clients and business transformation outsourcing

Recommended or initiated enhancements to controls and common processes, and guided and mentored team members in their use.

Reviewed and revised the suite of controls as changes to internal/external clients occurred or new clients were added, and provided recommendations for creating or changing existing controls and common processes

Challenged and revised the suite of controls provided across industries, geographies, and clients, and recognized for standardizing processes or replicating solutions across processes

Current Level Desired Level


1 A



Evolve a system of meta tags to organize existing curriculum

– Process transformation_basic_number

– Process transformation_intermidiate_number

– Process transformation_advanced_numberSample

Sample

Evolve Tagging systemCreate

Curriculum Map

1 B



Map Learning Threads & Curriculum

Learning Threads

Basic Intermediate Advanced

LT1: Customer Relationship

Course 1

Course 2

Course 3

Course 1

Course 2

Course 3

LT2: Process Transformation

Course 1

Course 2

Course 3

Course 1

Course 2

Course 3

LT3: Content Management

Course 1

Course 2

Course 3

Course 1

Course 2

Course 3

LT4: Compliance & Controls

Course 1

Course 2

Course 3

Course 1

Course 2

Course 3

Identified Gaps

Sample

Sample

Create Curriculum

Map

1 B



None

CompleteLearning and Knowledge

Service Science

Incorporate

Quick Hit Refine L&K New

Out of Scope

Input for prioritization

Priority for Development – Step 1

Plot each course that needs to be developed in the graph below

Complete

None


2



Priority for Development – Step 2

Plot each course that needs to be developed in the graph below

High Impact

Low Impact

Easy to ImplementHard to Implement

Curriculum & Course Ready

Minimal ‘e’ effort

Course To be developed and created

Stakeholders pain area

Early impact on the ground

Not an immediate need

Start Here

Quick Wins


2



Develop plan for development

Align with L&K and IBM research to evolve a development map

– Based on prioritization, available material, impact and cost of development

– Resources available

Develop deployment plan

– Align with stakeholders to deploy the curriculum

– Utilize the PDF platform and network for the deployment

Create plan for

Development

3



Proposed planCreate plan

for Development

3

Business Transformation Outsourcing © 2005 IBM Corporation Service Science March 2005.

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