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The Context of GBO Insights from LEF Research

The Context of GBO Insights from LEF Research. Kirtland C. Mead LEF. The Emerging Two - Tier Economy; Where Will The Netherlands Play?. High (Complex, Proprietary). Smart Products (PL). Advanced Service (CI). Need for High – Skilled People. Customer Partnership Brilliant People

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The Context of GBO Insights from LEF Research

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  1. The Context of GBO Insights from LEF Research Kirtland C. Mead LEF

  2. The Emerging Two - Tier Economy; Where Will The Netherlands Play? High (Complex, Proprietary) Smart Products (PL) Advanced Service (CI) • Need for High – • Skilled People • Customer Partnership • Brilliant People • TEBS • SW as a Service • Smart Products • Strong Brands • “Witch Doctor” • Intellectual Property • Black Tee - Shirts Value & Uniqueness Local Service (OE) Distributor (OE) • Global Product/ • Service Supply • Low Value Jobs • Big Box Retailers • Strong Brands • Global Supply • eBusiness • Local Locations/Staff • Consumer Self Service • Internet-Based Service • Remote Call Centers • Local Locations/Staff Low (Commodity) Services Products

  3. Competition and M & A are Driving Complexity • Relentless search for value and differentiation in saturated markets • Increased specialization • Customer-specific solutions • Ever more product/service variations • Increased functionality, much of it delivered through IT • Desire to offer complete solutions across the specialties • Buying our way into new markets

  4. Most Firms Are Choosing to be Specialistsor Integrators Specialists Integrators Niche markets Clear offerings Core competencies Price/performance Rapid change Broad markets Complex offerings Integrated capabilities High switching costs Managed change

  5. Success is Managing Complexity for the Customer and Getting Paid for it 3MGraphicArts Example: American Asset Mgt Business Estate Planning Financial Advisor Client Financing College Retirement Plans My Finances Small Cap Stocks Real Estate Investment Trusts (RITs) • Stock Anal. • Financial Modeling • Planning tools • CRM Etc.

  6. Specialists Sell Good Complexity: The Apple iPod • Easy to use, flexible • Excellent human factors • Layers of functionality • Enormous complexity, but out of sight and managed • “Witch doctor” quality • Proprietary • Value priced

  7. Marketing/ General Order to Supply Field Call Postage Human Leasing Sales E-Commerce Accounting Cash Chain Services Center By Phone Resources Force Billing Consignm SAP ACOM - Adjustme Credit Batch Business Customer ent Robot Check nts Scoring United Setting Order Planning Inventory Decision Copier Benesoft Printing Way Extranet - Collections Import Processing Support Invoice AAP / EEO Remarketing Accounts Robot Asset Manageme Free System Reporting Receivable PathFinder ACESS Manageme Save nt (CMS) Reset (DSS) PTMS T3 nt (BV) (Property Bill A/R Cash Automatic CSSS On- Computer Tax on EMA's Line Onyx Added Management Budgets Electronic Account Layout System) Info Data Backlog INFO Authoria APTP CSS Center Interchange History Knowledge Horizon (EDI)- Ptt Meter Business CSO SFP Link Customer Setting Rewards - Italy Sales Credit Travel Credit Extranet - Create National Compen Card website Enterprise SAP AP CSR Form Cards Account C.S.I.C. sation Function Inventory Field SAP AM application (Accounts Direct System Contract Control Console Service (Asset Payable) Mktg. Manage Duplicate Integration Leased Tracking Managem Equip. Disability ment Invoice Self EMA System ent) IPInterface Orders System Install Web Balance Extender JDE- Source Import Consolid Chairman OTG Accounts Implement Stock ated Sales On-line Opportunity FTP D3 Payable or Option Financial Compensa Notices Customer Accounting Client EMA Invoice Balance IBM O/S Program tion Service/ Services Billing - Control Extract 400 PCN Reporting Call P.A.R.T.S. Collections Initial (ICS) Disability Operations Extranet - Manage Denver T3 on-line Field EDI ment (AS400) Statement Service EMA Product Product Gen (BV) Feed Returns JD Configurator Taxware Process Edwards- EMA Multicash Equipment Recovery Intranet - Address Solicitations Lease Lease Employee EDI (Sterling 2000 FRACA Equipment Manual Distributor Book Trade- Mainten / Gentran Stock Lease Withdrawal Billing Tool up/in ance Purchase EDI) Inquiry Authorizatio DC IBM Secap Exception n (EWA) Kardex Fax Lease Sara T3ExCode Billing 400 Management Docent Import Major General (Billing and Account Exception Ledger(incl. Cash Inventory Customer System Order FN)**replac Escheatm Application) Accounting Intranet - PBI Region Rate Service/ International e with ents KunCorrect Facility Online Backlog Change Collections Export Job SAP** Full Order Management Lease (RBL) Mgt(AS400) System-Front Inventory Opps Cancellatio Funds Extranet - System Manageme Accounting End User PBMS n Tie Out MOCAH nt (LMS) - DB2 Interface Sales Invoice PFS Generator Tier3 Garnishme XCOM - Property JDE- Educational End of nts Emulation Tax - Accounts Tier3 Reimbursem Day PBCC Receivable MRU ent Internatio G/L Lease Presiden EXPERT nal Export Purchase T3ExShop Account Manager t's Page Power System Assignment Reporting HCA/DCA Gainsha LORI Report administrator General Scheduler ring Fixed (Benesoft) Service Ledger National Assets EFT Billing Advance/ Tier3 Extranet - Account Common (PBCC) Parts/ T3POExtr Intranet - Credit Card Letters Blackbox/ Permit Mail Revenue Customers Windchill Supplies BV version act System Cashbox (BV) Executive Reporting PTMS Marketing Marketing /Service Staffing SAP B2B Siebel/Call Analysis Reporting (Property (CHRIS) MCA On- Procureme Center Trade up Tax Tier3 Line Proc nt On- Management Quotes Admin Tier3 LineAlpha Online System) Batch PbP meter CFS Marketing List T3SockInt Equipment Apply function Batch Comp. (CS Utilization Funds Production SAP InfoLease Update and jobs) Reporting Mail Open Production PbP OHM Document Planning JDE- Prepare Health Care Medical Master Territory Sharing (PP) Fixed Damage Meter University systems - Maint. Dist. DB2 Software Extranet - JDE-Sales Assets Waiver Services clinics Agree Postage by Control Order Tier3 Protection Phone (BV) Processing SMART Collect FICO/PA/ Prodata Web Engine Master Data DB Utility SPL (Finance Extender/ PbP Product- Warehouse General SAP Application PbP Alliance maintain Admin Feeds Ledger) Materials Extender OMRS Feed funds Meter Manageme PbP Rental Lead PARS/ nt (MM) USPS Telemarketi JDE-GL One Time Data Portfolio GEAC reporting SAP ng (AS400) Property Credit Service Financial Feed Billing Internet - Purchasing Tax EDI - Desk Data Reports Invoicing Pitneywork (MM) Electronic Tier3 PbP Order Mart Tier3 s BV Data Value, Comet marketing Entry Audit RegTdm Installation Interchange JDE- Residual Server info (TOS) Telemktg- Trail PBC PbP Inventory (ITC) Inbound Organizatio Postal PEB Striped nal Chart JDE- Zone Tier3 related Payroll Lightning Web Site General Shop Web Extranet - Interface Supan Electronic Ledger Floor SBS Lease Base 2000 Signature MSF Order Territory Tier3 Control Equipment Manageme Diversity Entry Dist. Online Store nt PbP Web Site HR DB2 Mailing Sales Credit Jemtech maintain Loads Siebel Systems STARS Reporting Line Finance account Telesales Compensati Lease Lease Meter on Information Vertex Interim Admin. Tier3 Checklist System (Sales & Rent Client/ Reports Automatio (LIS) Use Tax) System Server n Periodic Lease Internet - JDE- VendorSite Billing Adjustment pb.com Purchasing F.U.E.L. System Warehouse Scorecard (LAS) PbP Empower Management Executive Sales Reserve System ment Tier3 Compensation Tool Accounting (Newtown) VRU PbP System Positive Kit Supplies Info Warehouse Order (APEQS) Pay inquiry Extranet - Order General Ledger Lease Management History Supplies Fulfillment Front End (40 + System Trade Up (BV) TOCK Legacy Feeds) Spread of (HIRISE) Payroll Quotes Meter PBFS Imaging PbP Income Equipment Manager Datamart Feed Licensing Accounts Pricing PbP WEB System Reset Workstation (Revenue File System - CMLS Payable - services Applicati meter Recognition) PBCC on Bad Complexity Hurts Everyone: US Multinational

  8. How the Best Organizations are Managing Complexity High Value (Good Complexity) High Value (Good Complexity) Bad Complexity Bad Complexity Standard, Independent Services & Interfaces Standard, Independent Services &Interfaces

  9. IT-enabled products and services Adventure, innovation, and risk IT staff integrated with business Impatient with Central IT, want to do their own thing The future ERP, financial control, and minding the store Careful culture of control and risk-avoidance IT organized into a shared service unit Managing the legacy monster, but this is also job security The past; seeking a future IT’s Two Worlds Black Tee - Shirts Traditional IT

  10. How GBO Helps Holland High Value (Good Complexity) High Value (Good Complexity) Bad Complexity Bad Complexity Standard, Independent Services & Interfaces Standard, Independent Services &Interfaces GBO

  11. The Context of GBO – Key Points • The Netherlands is competing to provide high value products and services in a globalizing world • Dutch firms need to become effective and efficient specialists and integrators • We need more good complexity, and less bad complexity • GBO can help the government, and Dutch firms, manage the complexity and cost of generic IT services

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