Emerging Cloud Business Models

A Forum to promote sustainable, value-based cloud service delivery business models for vendors, channels, IT, and end users/consumers

Conexo Services Integration Clinics
Drive Down Costs in a Service Delivery Stream


For a single delivery chain, use a single Services Integration workspace to focus on the
key cost factors within each step, normally hidden by silos, firewalls, or channel sales.

Map the handoffs where teams, functions, subcontractors, or service partners
exchange information or control as part of marketing, sales, delivery, or support.
Work together to open up bottlenecks, improve coordination, and decrease errors and omissions.

Each Clinic is customized with the service functional or program leader,
followed by two 90-minute working online sessions with key shareholders plus 3 weeks of free workspace. 


Focusing on Handoffs and Exchanges

Bridges with Conexo Services-Integration

·   Resource Vendor - Resource Buyer

·   Service Provider - Service Consumer

·   Engineering - Manufacturing - Prod Mgt

·   Marketing - Sales - Delivery - Support


Indirect Costs (Overhead or Sales & General Expense)

 

·   Getting critical data that is accurate and timely

·   Explaining results

·   Transferring knowledge and background material

·   Meetings and travel to coordinate teams and share information

·   Training to help everyone use the same core processes and tools

·   Rework (reverse processing and re-delivery)

·    Service lifecycle management (launch, upgrades, replacement)


Indirect activity typically represents 2/3 of the total cost structure in the service delivery chain.  Indirect costs collapse into a single purchase amount at every handoff in the delivery chain and invisible beyond each firewall or ERP system.  Handoff costs are scattered between functions and businesses, their larger impact buried in lead time statistics and performance to the end customer.


With a service cost focus in a single workspace, the delivery chain can see the exchanges between those who make the commitments and those who must fulfill them.


The processes of planning, ordering, committing, and delivering that occur between two delivery chain partners, and between the delivery chain and it’s end customers, represent a continuous feedback loop.  Where resources and money are being wasted, the shared view gives participants an opportunity to drill down to the root causes and cost drivers. 


Many effective analysis tools are in place, like the flow diagram below, but the first step is a single lasting workplace as a bridge where people get to know each other and communicate frequently.

 


With one workspace, Service Delivery partners share a view of flows or costs - just one example: