Module #3 Flashcards
These types of decisions should be made using data and evidence rather than emotion, rumor, or unconfirmed reports
Build vs buy decisions
What does this describe:
- the service component heavily relies on knowledge of the org and its business
- Customer demand for personalized products services or experience is high
- The ecosystem is volatile or subject to rapid change
- service components lack mass market adoption
- Compliance to standards and policies is a high priority
- the service provider is undergoing rapid growth, which can lead to inconsistent or frequently changing requirements
Building service components using existing resources works better with that context
What does this describe?
- In house resources are scarce or highly utilized in other areas
- the skills or competencies needed to create, operate, and maintain the component are highly specialized and would take time to build
- the processes to build products and services are immature and need to be developed and implemented
- Components or services are highly commoditized
- The demand for service components is low or subject to significant fluctuation
- The service component is not core to the strategy, brand, or competitive differentiation of the service provider
- Creating the service component is predictable and repetitive work
- the ecosystem is stable and generally not subject to volatility
Buying, or otherwise acquiring service components
When considering whether to build or buy a service component, it is important to consider the current level of _______________ and ongoing industry trends to __________ that component
Commodification, and commodify
When do these factors come into play?
- The orgs current and future sourcing needs
- the current and estimated future costs of sourcing service components
- The scarcity of resources in the ecosystem
- The influence of competition, suppliers and customers within the ecosystem.
- the barriers preventing new suppliers from emerging, and those preventing existing suppliers from winding down
- the costs and risks of sourcing components for an array of suppliers
Defining a sourcing strategy
What does this list define?
- Reflect the needs of all relevant stakeholders
- Cover a broad range of topics and not be limited to users functional needs
- Defined using outcomes
Defining requirements for a sourcing strategy, these requirements should be front of mind (must have)
What is this list of?
- maintainability and supportability
- Geographic location of vendor resources
- Cultural alignment between the org and the vendor
- Cost of service consumption
- Alignment with the organizations business, technical, and information architecture
- Vendor brand and public image
- Interchangeability of vendors
Defining potential requirements for a sourcing strategy (Nice to have)
What is the MoSCoW method?
Must have, Should have, Could have, wont have
What are the three “R”s for selecting a suitable vendor
Request for quote (RFQ)
Request for proposal (RFP)
Request for information (RFI)
This request is used when requirements are defined and prioritized, and the org needs info on how the vendor will meet the requirements, and how much it will cost
RFQ - Request for quote
This request is used when the problem or challenge statement has been clearly articulated, but the exact requirements or specifications of the service components are unclear or likely to change. Vendors are asked to provide recommendations or potential solutions, articulating benefits and outcomes as well as costs
RFP - Request for proposal
This request is used when requirements are unclear or incomplete and external assistance is needed to refine or add requirements. These are often followed by a RFQ or RFP
RFI - Request for information
What is a sourcing model?
A component of an overall sourcing strategy that describes topics such as:
- Conditions under which the org will source service components or a specific type of component
- Roles and responsibilities of the vendor
- Degree of oversight that the organization requires over the vendor resources
- Vendor assessment criteria
- General management policies
- Financial management policies
What are the two common sourcing models?
Insourcing, or outsourcing
What is insourcing?
The orgs existing resources are leveraged to create, deliver, and support service components
What is outsourcing?
The org transfers responsibility for the delivery of specific outputs, outcomes, functions, or entire products or services to a vendor
What are the three types of outsourcing models?
Onshoring, nearshoring, offshoring
What is onshoring?
Vendors are in the same country, and are likely to speak the same language, and have a similar culture