LIVA Business Development

PROJECTS

Below a short description of some of the project areas, we have participated in and contributed to with our client's - often by taking responsibility of leading the project eg. by holding the role of project & programme manager.

OUR PROJECTS

During the last 25 years we have carried out projects in close co-operation with our client's in the following main areas: 

  • Outsourcing of client's IT-infrastructure and IT-operation - multible projects
  • Outsourcing Culture
  • Procurement of hard-/software and systems
  • IT Strategy and business strategy
  • Delevoping project culture and concepts including education of client's employees
  • Programme and Project Management of complex portfolies and projects
  • IT-security policies and procedures
  • ISO27001 certification
  • Designing and implementation of IT-organisations
  • Process optimisation.

SECTORS

Our projects is primary carried out in the following sectors: 

  • Airline
  • Bank
  • Dairy
  • Energi
  • IT 
  • Manufactoring
  • Media
  • Medico
  • Public (Municipalities, Regions and State)
  • Railway
  • Retail
  • Shipping
  • Telecom
  • Transport.

Establish Outsourcing Culture in the company

Before considering actual outsourcing we recommend our client's to develop an outsourcing culture in the compagny adressing areas of impact and value on the current organisation, processes, methods and cooperation structure.


A generic approach designing an outsourcing culture appear in the four step model below.

A

Develop personal
competences

Select the 

right sourcing

projects

Develop
outsourcing competence

D

Appoint the 

right competences

(employees)

Establish & maintain the right outsourcing culture

Select & Use the right
processes

B

Improve Methods

Select & Use the right
methods

C

Improve Processes

Below please find inspiration on challanges and areas to be adresses in each step in the model.

C - Improve Methods


What is the challenge?

  1. Ensure streamlining of methods to effectively support processes.


Areas to be adressed:

  • Method for task delimitation
  • Method for data collection and documentation
  • Method for determining measurement parameters
  • Method for measuring existing service level
  • Method for measuring the supplier's service level in the delivery
  • Contract paradigms
  • Paradigms for relevant documents
  • Templates for reporting.

A - Develop outsourcing competence


What is the challenge?

  1. Position your compagny to manage decisions regarding resource provision
  2. Trim the organization and the production environment
  3. Increase the probability of success
  4. Minimize the risk of failure.


Areas to be adressed:

  • Design sourcing strategy allined with business strategy and goals
  • Define "Make or Buy" criterias
  • Clarification of the purpose of the specific outsourcing

  • Identification of the most important processes and/or functional areas with potential for outsourcing

  • Prioritization and weighting of processes and/or functional areas: a) can be outsourced, b) should be outsourced and c) should not be outsourced

  • Readiness for change

  • Delimitation of processes and/or functional areas for outsourcing in accordance with prioritization and weighting

  • Service goals: a) current level, b) required level and
    c) measurement parameters

  • Interfaces to other processes and/or functional areas

  • Decision on form of agreement and cooperation a) traditional warranty & penalty contract, b) bonus contract and c) joint venture/shared reward and risk

  • Tender form and principles.

B - Improve Processes


What is the challenge?

  1. Define, (re)design and describe the relevant processes
  2. Create the basis for establishing methods and standards that support the processes.


Areas to be adressed:

  • Unique pricing of processes and/or functional areas for outsourcing: a) cost bearers, b) hidden costs and c) assess the extent of overcapacity / overload

  • Assessment of potential/effect related to the purpose of outsourcing

  • Organizing the interaction between the company and the outsourcing partner

  • Affected employees: a) identification of affected employees and b) information.

D - Develop personal competences


What is the challenge?

  1. Ensure right personal competences in your organization in order to be a proffessional outsourcing customer.


Areas to be adressed:


PROFESSIONAL COMPETENCES

  • Depth in knowledge about outsourcing
  • Knowledge of all processes in relation to potential outsourcing area
  • Knowledge about typical areas of failure in outsourcing projects
  • Updated knowledge of the market and the maturity of potential suppliers
  • Handle and distinguish between investments and operational areas.


PERSONAL COMPETANCES

  • Excellent skills in the following areas: a) Management of the overall process, b) Provides quality assurance and c) Master the "toolbox"

  • Negotiation skills

  • Excellent communication and co-operation skills

  • Project Management.


NETWORK COMPETANCES

  • Be able to play with process owners and department heads whitin customer's organization

  • Knowledge of the players in the market for potential outsourcing services

  • Good relations with relevant colleagues whitin customer's organization.


COMMERCIAL COMPETENCES

  • Deep knowledge of the value chain whitin customer's organization
  • Ability to add value to the compagny.


Outsourcing Project Framework

Please find inspiration on performing outsourcong projects including challanges and areas to be adressed in each step in the model below .

Co-operation with outsourcing partner

Sourcing

Strategy

STEP 1

Make decision on IT-outsourcing

Transition

STEP 4

STEP 3

STEP 2

Prepare

RFP

Implementation and anchoring

Entering

Contract

Negotiation with potential suppliers

Below please find inspiration to the content, results and decisions in each step in the model.

Content STEP 1 - Sourcing Strategy

The first step - STEP 1 -is to develop an outsourcing strategy making the basic for management decision on "do it inhouse" or "buy outside" consiting of the following main activities: 

  • Identification of IT services
  • Overall description of both the IT organization and the business organization
  • Identify business-critical success factors related to relevant services
  • Formulate goals with IT sourcing
  • Assessment of financial potential (CBA) in the event of IT outsourcing
  • Develop IT sourcing strategy including business case
  • Prepare proposals for implementation plan.

Results STEP 1 - Sourcing Strategy

The outcome of step 1 is a documentet sourcing strategy making the basic for management to decide next step including: 

  • Management summary, which consists of a summary of the strategy, business case and an attitude about the further direction

  • Brief description of the company structure and the organizational structure

  • Description of the current IT organizational framework

  • Brief description of the current IT infrastructure

  • Delimitation of critical success factors related to IT operations services

  • Definition of the IT operating services based on the ITIL concept

  • Definition and description of service objectives - Service Level Agreements (SLA)

  • Assessment of economic potential

  • Identification of possible collaboration models, including reporting requirements

  • Identification and brief description of the customer's current agreements on IT services.

Decision after STEP 1

Based on the documented IT-sourcing strategy management decide whether to initiate an outsourcing process or keep the sevices inside.

Content STEP 2 - Prepare Request for Proposal (RFP)

The second step - STEP 2 - is to prepare Request for Proposal (RFP) documents and distribute these to potential suppliers consiting of the following main activities: 

  • Management summary, which consists of a summary of the strategy, business case and an attitude about the further course

  • Brief description of the company structure and the organizational

  • Prepare IT situation description - a description of the IT-landscape

  • Prepare requirements specification, including SLA

  • Design contract basis

  • Preparation of tender conditions and tender form

  • Prepare letter of invitation

  • Prepare internal framework for quantitative (economy) and qualitative (knowledge and approach) assesment of incomming offers.

Results STEP 2 - Prepare Request for Proposal (RFP)

The outcome of step 2 is:

  • Management summary, which consists of a summary of the strategy, business case and an attitude about the further direction

  • Tender conditions

  • Draft contract, ie. the legal part that we recommend is based on best practise paradigm for outsourcing contracts

  • Draft contract documents, including master schedule, transfer project, clarification report, IT situation description, requirements specification, price structure, co-operation organization, service objectives (SLA), security procedures, insurance conditions, subcontractors, change procedures, contract administration and description of IT operations based on an ITIL- reference frame etc.

  • Internal framework for quantitative (economy) and qualitative (knowledge and approach) assesment of incomming offers

  • RFP documents send to potential suppliers.

Content STEP 3 - Entering Contract

The next step - STEP 3 - is to recieve respond on RFP material from potential suppliers, evaluate offers and contract negotiations with prefered supplier consiting of the following main activities: 

  • Contact to potential bidders, including answering questions to the tender material

  • Receive and evaluate offers

  • Prepare recommendation on choice of primary and secondary negotiating partner

  • Conduct negotiations, including preparation and documentation of sequence

  • Prepare and enter into a final contract.

Results STEP 3 - Entering Contract

The outcome of step 3 is a documentet soursing strategy making basic to decide 

  • Report containing an objective qualitative and quantitative assessment of offers
  • Documentation of the negotiation process
  • Finally signed contract.

Decision during STEP 3

During step 3 and based on qualitative and quantitative assessment of incomming offers and the critical values of succes and goals for the compagny a mangagement decision is needed on GO/NO GO in the further process.

Content STEP 4 - Transition

This last step - STEP 4 - is to make a successful transfer of the services to the supplier consiting of the following main activities: 

  • Transfer to IT operations provider

  • Review of project progress

  • Assessment of takeover test

  • Assessment of operational test

  • Internal anchoring

  • Establishment of cooperation organization

  • Establishment of contract management.

Results STEP 4 - Transition

The outcome of step 4 is a successful transfer of IT operations services to supplier including:

  • Successful transfer of IT operations services to supplier has taken place

  • New processes caused by outsourcing are rooted in the overall organization - both the IT and the business organization

  • A well-functioning collaborative organization with the IT operations provider has been established

  • Contract management processes have been established and implemented.

  • Review of project progress

  • Assessment of takeover test

  • Assessment of operational test

  • Internal anchoring

  • Establishment of contract management.

Additional inspiration

Considerations benefits Outsourcing


  • - Increased strategic flexibility
    - Access to critical mass on necessary
      professional competencies
    - Cost reduction
    - Lower zero revenue
    - Reduced investment needs
    - Better task solution

LIVA Business Development is an independent management consulting company that advises clients in the private and public sector.


Our primary areas of competence are Leadership, Information Technology, Value Business Development and Analyzes in selected areas.


CONTACT US

  Udgårdsvænget 16

  8600 Silkeborg

         Denmark

ban@liva.dk

  Tel: +45 30 47 89 02

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