Transourcing: A Pragmatic New Strategy for Enterprise Competitiveness >Enable agility through innovative partner collaboration >Tap new customers in mature and emerging markets

Hong Kong, ChinaTools and Work/Tools in Depth

Transourcing™ tools are designed to facilitate all aspects of the company's change process, as enterprise transformation represents a prolonged iterative process. For instance, most companies pursuing Transourcing™ to its fourth Transfromation Stage, Network, will spend five to ten years during their transformation process.

Notably, however, most companies will see economic benefits beginning the first year, chiefly due to improved performance on meeting outsourcing business cases.

  • The Enterprise Roadmap charts the transformation journey
  • The Diagnostic places your agency or company within a Transformation Stage
  • The Transformation Framework is an integrated, suite of methods, techniques and services
  • The Adoption Curve describes the transformation journey of industries and economies
  • The Book synthesizes Transourcing™ drivers, tools and approaches

The Transourcing™ Enterprise Roadmap™

The goal of Transourcing™ is transformation, which is necessary for 21st century companies to thrive in an emerging environment that demands unprecedented agility and innovation. The Transourcing™ Enterprise Roadmap describes the journey by which the industrial enterprise transforms itself into a virtual networked enterprise to dramatically increase its agility, efficiency and innovation.

The roadmap features four "Transformation Stages," each of which describes its beginning state, major milestones and end state. The stages are Ad-hoc, Efficiency, Innovation and Network. In Ad-hoc, outsourcing is practiced deep within business units, as an isolated activity. In Efficiency, outsourcing is federated, and the focus is on developing an enterprise Strategic Outsourcing Competencies (SOCs) to enhance ROI on outsourcing initiatives. Innovation reuses and extends the SOCs to sourcing innovation partners. Network explicitly addresses the "loosening up" of the enterprise's tightly integrated processes so that it can achieve unprecedented agility.

The Roadmap also contains three "Value Curves" that describe the transitions between Transformation Stages in terms of value achieved and time elapsed.

Enterprise Roadmap—click to enlarge

Download the Executive Summary

The Transourcing™ Diagnostic™

The Diagnostic measures a company's or organization's skills, competencies and knowledge relevant to outsourcing and transformation in order to places it within the appropriate Transformation Stage of the Enterprise Roadmap. It works by comparing the companies practices and skills to the major milestones and accomplishments that are achieved in each Transformation Stage.

Diagnostic areas measured include corporate strategy and the company's practices in outsourcing, enterprise knowledge, vendor management, enterprise architecture and transformation.

The self-administered paper version is available for your experimentation on this site. It is derived from the full version we use when advising clients. A fully-automated Web-administered version will be released soon.

Diagnostic—click to enlarge


Go to the on-line self-administered version

The Transourcing™ Transformation Framework™

The Transformation Framework is a full-cycle, integrated set of processes that companies use to progress through the Transformation Stages. All processes are iterative and feature short delivery cycles and extensive collaboration between project leadership and stakeholders.

  • Corporate Strategy helps executives to understand the 21st century environment and to realize the company's emerging opportunities and threats, given accelerating globalization and ubiquitous technology adoption worldwide. Moreover, the company reexamines its customer relationships from current and future state viewpoints and assesses the role that innovation might play in driving value. This understanding of the company's strategy serves as a robust platform from which executives determine core competencies. It prepares them to create a strategic outsourcing plan, which explicitly addresses their intended transformation to a virtual organization.
  • Outsourcing Strategic Services serve to transform the practice of outsourcing from a tactical, operational focus to an enterprise core competency. The company's mastery of outsourcing will enable it to achieve consistently high levels of efficiency and cost savings in the short term and unprecedented innovation and agility in the long term.
  • Transformation Services explicitly address the company's need to build sustainable innovation processes and to transform its relationships with vendors. The company redefines its organization as interoperable business components using a new business architecture. It pilots new loosely coupled models to transform legacy vendor relationships to collaborative partnerships featuring significant shared risk and reward. Moreover, it iterates explicit transformation processes by which it dismantles legacy organizational structures in areas in which it needs to drive unprecedented agility and innovation.

Transformation Framework—click to enlarge

Download introductory slides

The Transourcing™ Adoption Curve™

The Adoption Curve describes how market forces are pressuring organizations of all sizes to achieve unprecedented levels of innovation, efficiency and agility. It describes megatrends such as the global economy's shift from the Industrial Economy to a Knowledge Economy, the Transfiguration Phases through which industries and economies will progress and how the trends interact with other drivers such as:

  • Software trends, including virtualization in which hardware, software and network services are reinvented as software, leading to a new economic model for Information Technology
  • Globalization has been a buzzword for years; however, those sleeping at the wheel may miss the significance of a new richness of global service providers and new consumption
  • Business Process Management trends are digitizing business processes, which will have a similar affect as software on hardware and network services: transparency of how business is conducted; a driver for unprecedented collaboration
  • Security and compliance are forcing mastery and control of business process
  • Customer empowerment are galvanizing customers, and enterprises that don't understand the impact will lose their relevance before they know it. Companies that want to remain relevant will shift their focus away from products and services to the customer experience itself. Global customer segments in emerging markets will present increasing numbers of surprises to companies not tuned into their cultures.
  • The Web 2.0 movement is building the capability for "spontaneous collaboration" and numerous new opportunities for those who get plugged in to it
  • Shortening product and service life cycles will drive unimaginable demand for innovation. The industrial economy mentality of maximizing efficiency and minimizing risk through product extensions and relatively few new product/service introductions is increasingly out of place. Enterprises have to change the rules of innovation or risk losing engagement with customers... and profitability.
  • Backlash against globalization is driving a need for localization. This will make wreak havoc with marketing plans based on assumptions formed in other "international" markets.

The Adoption Curve describes the significance of these threads, how they affect each other and how to use their trends to advantage. Executives who understand the drivers will increase their organizations' competitiveness in the face of increasingly volatile, unpredictable customer demand. These are the underlying forces driving Transourcing™. The Adoption Curve is currently in development.

Transourcing™, the Book

The Transourcing™ book is projected for 2007 publication. It is especially helpful to communicate the rationale behind a Transourcing™ transformation initiative to employees, partners and other stakeholders. It is designed to introduce the concepts, tools and approaches in a concise, readable format. It will include case studies of early pilots. Currently in development.

Outsourcing is a rare opportunity to transform the enterprise into a networked entity—while increasing profitability.

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