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2020 3 4 OnDemandandITOutsourcingThe2004ChinaOutsourcingSummitSept15 16 2004Beijing China IBMGlobalServices 2 2020 3 4 Anondemandbusinessisanenterprisewhosebusinessprocesses integratedend to endacrossthecompanyandwithkeypartners suppliersandcustomers canrespondwithspeedtoanycustomerdemand marketopportunityorexternalthreat OnDemandBusiness MorethanJustGettingBetter 3 2020 3 4 Traditional TheInternet OnDemand StructuredCalculationsDataProcessingTransactions OpenStandardsConnectivityFlexibilitySimplicity ModularComponentseasilydefinedandmanipulatedDynamicdefinitionandoperations TheEmergingOnDemandComputingModel 4 2020 3 4 WhydoGCGclientsneedtotransform Aclient smarket increasingcustomizationofproductsanddeliveryleadtodemandforfasterinnovationGlobalizationhasintensifiedcompetition fromwithinandoutsidetheregiondemandforcostreductiontoensurecompetitivenessIncreasedscrutinyofbusinesspracticesandethicsalongwithregulatoryissuesleadtonewdataandintegrationchallengesIndustryconsolidationleadtoincreasingfocusoncompany widetransformationEmergingtechnologiestriggerintegrationacrossvaluechainsIncreasingrelianceoninformationtechnology buttightbudgets 5 2020 3 4 OnDemandBusinessDesignsDeliverSignificantResultsSonyChina PCOutsourcing CLIENT SBUSINESSISSUES Lackofproperresourcestosupportits34branchesLargecapitalinvestmentbecomesaburdenIBM SSOLUTION Assetsownershipandmanagementtransfer outsourcetoIBMSOleverageBlueExpress countrywidecoveragetoprovidePCrelatedservicessuchas PCrefreshment upgrade maintenance viruscheck remoteandon sitesupport etc CLIENT SBENEFITS Customer scapitalinvestmentbecomesmonthlyexpense Thisflexiblecoststructureenablescustomertoreduceriskandrespondquicklytothefuturechange Customers PCconfigurationandservicestandardizedunderIBM scommittedservicelevel Customer sITstaffswillfocusonitscorebusiness 6 2020 3 4 WhatisOutsourcing Outsourcingtakesplacewhenanorganizationtransferstheownershipofabusinessprocessorfunctiontoasupplier Inoutsourcing thebuyerdoesnotinstructthesupplierhowtoperformitstaskbut instead focusesoncommunicatingwhatresultsitwantstobuy Itleavestheprocessofaccomplishingthoseresultstothesupplier TheOutsourcingExchange 7 2020 3 4 CLIENTBUSINESSPERFORMANCEBEFOREANDAFTEROUTSOURCING PROFITABILITY PerformanceRelativetoIndustry instandarddeviationsfromindustrymean TheImpactofOutsourcing Earlyanalysisinthenewstudyshowssignificantimprovementsinclientprofitabilityina2 3yearperiodafterthestartoftheoutsourcingengagement IBMResearchDivisionanalysisofpublicfinancialdata80globalcompanies 8 2020 3 4 KeystoaSuccessfulOutsourcingRelationship Asuccessfuloutsourcingrelationshipfocuseson SettingclearexpectationsfortherelationshipattheoutsetEstablishingappropriategovernanceprotocolstoguidejointactionthatcandeliveronthepromiseoftherelationshipRecognizingtheneedtoadjusttherelationshipovertimeSharedriskandreturnMeetingservicelevelexpectations notjustSLAsContractflexibility theabilitytochangethescaleandcontentofwhatisbeingdeliveredasthebusinessenvironmentchangesInnovationandTransformationtoanOnDemandbusiness 9 2020 3 4 OptimizeIndividualDataCenters ScaleviaconsolidationsCommonprocessesStandardizationReducecost streamlineoperations ScaleviaresourcevirtualizationAutonomicmanagementCreatesubstantialnewvalue AlwaysoninfrastructureResources processandtechnologyondemandCommoditizedcomponentsReconfigurevalueofITapplicationsandservices SkillsleverageReducecosts Present Future ImplementOnDemandComputing LeverageGridTechnologies ConsolidateDeliveryCenters Productivity BusinessValue Past OnDemandOutsourcingandITInfrastructureAnaturalpartofthecomputingevolution fromcentersofautomationtochangingthefundamentalsofindustriesandmarkets 10 2020 3 4 Anenterprisewhosebusinessprocesses integratedend to endacrossthecompanyandwithkeypartners suppliersandcustomers canrespondwithspeedtoanycustomerdemand marketopportunityorexternalthreat Ondemandservicesallowbusinessprocessestosenseandrespondtomeetbusinessobjectives OverallVision 11 2020 3 4 ERP AutomatedprovisioningbasedonresourcepoolinganddynamicallocationCapacityondemandBetteruseofresourcesSpeedReducedcostITreflectsthepriorityofthebusiness HR CRM Online ITprovisionsona justincase basisonanassumptionofpeakdemandMassiveOVER provisioningHigheradministrativeoverheadVastlyunder utilizedITresourcesITfailstoreflectbusinessneeds AutomatingInfrastructureDeliversValueThroughBetterAssetUtilization 12 2020 3 4 CostEffectivePeakDemandInfrastructure Reducescostofunderutilizedjust in casecapacityImprovesservicelevelswithfasterrecoveryandpeakloadsupport App1 App3 App2 App4 App5 AppN ResourcePool Orchestration ElementalTools Code Data AutomatedBestPractices PeakDemand 13 2020 3 4 4 8Hours TotalTime 13 23Days Automated Returnservertofreepool Variable 1Hour Configuresecurityandnetworksettings 5 10Days Hours 1Hour Automated Installsoftware 5 10Days Identifyappropriateresourceforadditionalworkload 3Days ITTasks Manual UMImakesitpossible FlexibleDemandOptionsavingsdependentonclientenvironment InfrastructureAutomationCanSpeedDeployment IncreaseReliabilityandSaveMoney 14 2020 3 4 HLJ JL LN GS GZ HeB HuN JX NMG NX QH SD SX SC XJ AH JS ZJ FJ GD HaN YN SaX GX HuB Hen Taiwan XZ 3HrsFlight Chengdu Chongqing Kunming Harubin Shenyang Dalian Beijing Tianjing Jinan Nanjin Shanghai Hangzhou Xiamen Wuhan Xi an Fuzhou Shenzhen Haikou Nanning Taipei Taizhong Gaohsuing Urumqi Lasa Xining Lanzhou Yinchuan Hohhot Changchun Shijiazhuang Taiyuan Zhenzhou Hefei Nanchang Changsha Guiyang Guangzhou 4HrsFlight USA 9
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