Outsourcing Strategy Matrix: Aligning Capabilities and Importance PPT
This PPT slide, part of the 50-slide Business Fundamentals PowerPoint presentation, presents an Outsourcing Strategy Matrix, which categorizes departments based on their strategic importance to the company and the relative competence of potential outsourcing partners. The vertical axis indicates the strategic importance of the process to the company, ranging from "Pivotal" at the top to "Support" at the bottom. The horizontal axis measures the competence of the outsourcing option relative to the best in the industry, from "Weak" on the left to "Strong" on the right.
In the upper left quadrant, labeled "Alliance," companies are encouraged to form partnerships when the department is pivotal and the outsourcing partner demonstrates strong competence. This suggests that strategic alliances can enhance capabilities while maintaining control over critical functions. The upper right quadrant, "Joint Venture," indicates a similar approach, but may involve shared ownership or investment, suitable for pivotal departments where collaboration can yield significant benefits.
The lower left quadrant, "Partnership," is for departments deemed supportive, but where the outsourcing partner's competence is also weak. This suggests a more cautious approach, likely involving less critical functions that do not require top-tier expertise. The lower right quadrant, "Sell?!", raises questions about whether to fully divest or outsource departments that are neither pivotal nor supported by strong external competence.
The slide also includes examples from the pharmaceutical industry, illustrating how different processes can be categorized under each strategy. This matrix serves as a valuable tool for executives considering outsourcing options, highlighting the need to align strategic importance with partner capabilities. Understanding these dynamics can lead to more informed decisions about resource allocation and operational efficiency.
This slide is part of the Business Fundamentals PowerPoint presentation.
This presentation is created by former McKinsey, BCG, Deloitte, EY, and Capgemini consultants. It covers business fundamentals, such as org structures, operational issues, and financial statements.
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Small Business Business Basics Sourcing Strategy Joint Venture
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