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Telecom Outsourcing, GITI Event

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Presentation on theme: "Telecom Outsourcing, GITI Event"— Presentation transcript:

1 Telecom Outsourcing, GITI Event
Roberto Sigona Sr Director, WW IT Operations

2 Agenda Autodesk Corporate Overview Roberto Sigona’s bio
Sourcing strategy Biggest outsourcing deals Lessons learned Q&A Appendix 1: Sample scorecard used with outsourcing partners Appendix 2: Evolution of trust and relationship with partners

3 Roberto Sigona Sr director, WW IT Operations

4 The World’s Leading 2D and 3D Software Company
We are a Fortune 1000 company 100% of the Fortune 100 use our products 7 million registered users around the world An unsurpassed partner network More than 2,500 third-party developers There is no other vendor in the world who delivers the scope of solutions and the depth of services that Autodesk can. Our customers include every company in the Fortune 100, as well as 98% of the companies in the Fortune 500. We are the “trusted advisor” to the worlds biggest (and smallest) companies – because we deliver solutions that work, that are easy to deploy, and that can change the way business is done, offering greater productivity and ROI.

5 Industry Leadership Manufacturing We are a global software leader that offers a diversified portfolio of software tools and industry solutions to help customers experience their ideas before they are real: Conceptual design 2D design and drafting 3D model-based design Simulation, animation, and visualization Collaboration and data management Building Infrastructure By leveraging the company’s expertise in 2D and 3D design we will not only help our customers “experience” the benefits of model-based design in real time, we will also help them to more easily and effectively increase/improve the productivity and ROI of their business. We are expanding the definition of design to include virtual prototyping, visualization, analysis, simulation and more. Engineering this type of power and functionality into our design tools allows our customers to actually “experience” their creations before they exist: saving time, money and valuable resources in the process. This approach is a unique and powerful differentiator for our company and a strong competitive weapon in the market. Our customers are increasingly working within multi-disciplinary teams that may involve various inter-related design components. For example, mechanical designs for elevators that need to coordinate with architectural, building and structural designs. Autodesk is unique in its ability to provide solutions that are both discipline-specific and interoperable across design disciplines. Our product portfolio and industry breadth and expertise are unmatched in the market. As we move forward, we are making a renewed commitment to drive even greater levels of product interoperability into the product portfolio to ensure that our customers have a seamless experience. Specific Industry Strengths: MANUFACTURING: Autodesk is taking a unique approach that focuses on improving the design-to-manufacturing process and delivering the benefits of an end-to-end solution without the cost or complexity. The Autodesk solution for manufacturing is unlike any other offering on the market. It includes the most innovative 2D and 3D design software which enables manufacturers to design, visualize, and test a complete machine before the first prototype is ever produced, and to securely manage valuable design data in a fully collaborative workflow. From the design center to the manufacturing floor to procurement and beyond, Autodesk has a solution that gives customers a truly unique opportunity to decrease operating costs, increase productivity and take advantage of current trends in the marketplace BUILDING: Autodesk is helping Building professionals change the way their work is done.  As the company who invented building information modeling (BIM) – and then brought it to the mainstream, we are continuing to revolutionize the complete building workflow/process for competitive advantage.  Just as we lead the way in state of the art design and drafting tools with AutoCAD so have we reinvented the way design intent is expressed with ADT Autodesk Architectural Desktop. And true innovation, an advanced and comprehensive building model delivered on the Revit platform, allows us to lead the industry with solutions that help architects, structural, mechanical, electrical and plumbing engineers, designers, and contractors do their jobs more efficiently and more effectively than ever before – all while managing data in a customer-friendly, efficient digital format throughout the building lifecycle. Autodesk is delivering the strongest purpose built BIM tools in the industry and extending the power of BIM with analysis for building performance and structural engineering which will deliver value to our customers by enabling smarter decisions earlier in design allowing for sustainable and integrated solutions from conceptual design thru to fabrication and facilities management. INFRASTRUCTURE: Autodesk is changing the way Infrastructure professionals, including employees of government agencies, utility companies, and wireless carriers do their jobs.  From the drafting and design stages of a project to communication with internal and external employees and agencies to producing final client and consumer worthy designs and maps, Autodesk is arming the market with solutions that support organizations in keeping their competitive edge.  Autodesk’s leading 3D solutions for Civil Engineers are changing the way the industry works.  Working with dynamic engineering models, Civil Engineers worldwide are seeing unprecedented accuracy of design and significantly more successful project delivery.  In the Geospatial arena, Autodesk is leading with open Geospatial Solutions that help organizations evolve in the way they manage and share data.  Whether they are delivering location-based services to a mobile workforce, or integrating CAD and GIS data to better manage assets – Autodesk provides interoperable, job-specific, and adaptable solutions, together with partners like Oracle, that are unmatched in the industry. MEDIA AND ENTERTAINMENT professionals are redefining their industry--And they need partners who are up to the task. Autodesk has delivered the products and solutions that have transformed the industry for more than a decade, creating solutions for visual communication & storytelling from concept to delivery . Autodesk provides solutions designed for digital media creation, management, and delivery across many disciplines, from film and television visual effects, color grading, and editing to animation, game development, graphic design, and design visualization. We are there to help our customers turn ideas into breathtaking realities. In all, Autodesk is providing the leadership, software and services to help enable our customers’ business success. Media & Entertainment

6 Roberto Sigona’s brief Bio
Italian and Swiss national, born in Switzerland Bachelor degree in Electronic/Electrotechnic Engineering With Autodesk since 1991 Variety of roles within Customer Support and Information Technology both in Switzerland and Headquarters (USA) Currently Sr Director, WW IT Operations, responsibilities include: 150+ people in 40 countries, 110 sites supported $60M+ budget Datacenters and infrastructure WW Field staff, Desktop and Help Desk Telecom, Network and Security Site Manager for Autodesk Development S.à.r.l in Neuchâtel

7 IT’s Sourcing strategy

8 Drivers of Outsourcing
Increase IT Capabilities Focus on Core Competencies Cost Reduction and Control Cash Needs/Asset Minimization Increase IT Capabilities Take advantage of rapidly-changing technology and gain access to hard-to-hire skills resulting in reduced time to implementation Focus on Core Competencies Non strategic services eliminated leading to improved service levels Cost Reduction and Control Better economies of scale, access to lower-cost labor pools Cash Needs/Asset Minimization Decrease assets on balance sheet and eliminate related maintenance Streamline Cash Flow - Predictable cash flow (opex) through standard monthly or annual fees and avoidance of upfront investment

9 Strategic Sourcing is a process rather than a series of activities
Strategic Sourcing as a Process Traditional Contracting/Purchasing Strategic Sourcing Focus on tasks Function isolated Reactive Insular, static Unit price based Reliance on tendering Adversarial supplier dealings Suppliers as the enemy Win/lose Corrective measures Gold plating or undefined standards Lowest price bidder, price driven Focus on process performance Function integrated Proactive External focus, dynamic Total cost framework Diverse sourcing strategies Creative collaboration, trust Suppliers as a key resource Win/win Preventive measures Fit for purpose Best value bidder, value driven Gregg Strategic Sourcing is a process rather than a series of activities

10 Outsourced deals and lessons learned

11 BT/Infonet Objectives/scope Highlights of the last 3 years
Single service provider for global data, voice, video network 3 year contract, $21M commitment Private, global MPLS Network Guaranteed service levels Consolidate 40+ providers Highlights of the last 3 years Achieved expected benefits in service quality Relationship has improved over time Unclear lines of responsibilities for VoIP, quality issues

12 HCL Objectives Highlights of Y1 implementation
Hosting and management of critical enterprise applications 5 year contract, $58M commitment Leverage world class processes and economies of scale Consolidate business critical applications into one location on new hardware Guaranteed service levels Business continuity within 24 hours Foundation for future services consolidation and staff augmentation Highlights of Y1 implementation Smooth go-live and better than expected month one steady state Staff resistance Initial issues around right levels of skills on both sides Differences around sense of urgency, communication, project management Contract and SOW only covered steady state not implementation

13 Typical Failure Points in IT Outsourcing
Underinvestment in selection and management process Difficulties around adapting to change Misalignment of client-vendor objectives, incentives Unclear cost / performance baseline

14 Highlights of lessons learned
Initial groundwork a “must,” not nice to have Strategy first - define core competencies, know future expectations Trust takes time to build (see appendix) Contract is critical – get help Clear SOW both for implementation and steady state Good partner management = investments and resources Both sides must manage the relationship, not just the performance Maintain alignment of strategic objectives and health of relationship through regular reviews

15 Quality Management Clear and measurable SLA for both parties with penalties when missed Monthly Operational Review (MOR) Quarterly Management Review (QMR) Benchmarking clause for contracts Quarterly Management Review (QMR) Overall health check of the contract and relationship Are objectives of doing business together being met? Opportunity to review successes, share expectations and escalate issues and corrective actions This is NOT a detailed review of operational issues

16 Thank you! Questions?

17 Appendix 1 Scorecard used with Outsource partners

18 Scorecard - Introduction
Scorecard built around 5 categories that incorporate our original objectives and SLAs: Acct Mgmt Financial Mgmt Project Mgmt Operational Mgmt Strategic Development Each category has several components (not shared in this review but shared prior to meeting) Weightings assigned to each category and component within the category Based on current priorities; will change over time Input from all key interface points and consolidated into averages Scorecard done by Autodesk and partner

19 Example Scorecard Scorecard Summary Key Overall Weighting Q1'06 Q2'06
Weighting Q1'06 Q2'06 Q3'06 Q4'06 Account Management 25% Financial Management 15% Project Management Operations Management 30% Strategic Development 5% Overall 100% Key Green – above expectations 3.75 5.00 Yellow – approaching or meets requirements 2.75 3.74 Red – inconsistent performance and/or does not meet expectations 0.00 2.74 Example

20 Appendix 2 Evolution of trust and relationship with partners

21 Managing Trust and Control
Management Dynamics Trust Dynamics 5 4 3 2 1 - 1 - 2 - 3 - 4 - 5 Organizational Trust Group Trust Individual Trust Individual Distrust Group Distrust Organizational Distrust “Co-management” established “Co-management” initiated Seek Best Practice Ad Hoc & Random You & Me You v. Me Us v. Them Red Team v. Blue Team War Exit Most successful outsourcing relationships have a trust rating of higher than 1.5


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