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Agile Micro sourcing: Decisions and TrendsAJEESH VENUGOPALAN

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Agenda

Talent Crisis Understanding the procurement Function Bi-Modal Adaptive Strategy Need of the Hour – Innovation & Myths Collective Creativity

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Talent Crisis

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Type of Institution Number E.g.Central Universities (Public) 44 University of Delhi

State Universities (Public) 306 University of MumbaiState Universities (Private) 154 Amity UniversityDeemed Universities (Private or Public) 129 Tata Institute of Social

SciencesInstitution of National Importance (Public) 67 Indian Institute of

TechnologyTotal Degree-granting Institutions 700

Affiliated Colleges (Public or Private) 35,539

Number of Educational Institutes in India

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Field Number ('000) % of TotalArts 7,539 37%Science 3,790 19%Commerce & Management 3,571 18%Engineering & Technology 3,262 16%Education 733 4%Medicine 716 4%Law 373 2%Others 218 1%Agriculture 97 0%Veterinary Science 28 0%

20,327 100%

About 26.5 Million students graduate every year – About 5 Million are engineers

Number of students Graduating Every Year in India

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Hiring is a key challenge for a Large Organisation and hence solution for them would be

Micro sourcing Crowd Sourcing / Crowd Share - Innovation

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Understanding the sourcing Manager

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Digital business and the IoT are driving a paradigm shift, increasing businessexpectations of agility, flexibility and faster on boarding of providers. Sourcingmanagers must embrace an adaptive sourcing strategy with small providersand outcome-based contracts for digital and innovation projects.

--Gartner

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Challenges ■ Traditional sourcing strategies do not meet digital business speed-to-market expectations due

to longer sourcing cycles. Inability to meet digital timelines is resulting in business taking thelead and moving IT budget control into the business.

■ Rapid digital innovation demands updated competencies, skills level and mindset from sourcingmanagers. Accelerated on boarding of small/niche providers for proof of concept with a fastest,fast-fail mindset compels sophisticated contract terms and deliverables.

■ Unlike traditional providers, digital innovation includes new types of partners with uniquecapabilities and offerings who must work together for a mutually beneficial outcome that willrequire new governance and vendor management capability.

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Recommendations Sourcing Managers are Adapting to a more Agile and Iterative approach towards sourcing strategy

Faster decision cycles

Creating a separate POC Environment

Revise the traditional sourcing and contracting processes to address the speed of on boardingproviders required for digital innovation, and integrate more outcome-based, gain-sharingpricing models appropriate to drive quicker time to result.

Create partnerships with service providers for co-development and joint go-to-market strategiesin specific domains to drive innovation with gain-share terms in the contract.

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IT is moving towards Adaptive Sourcing Strategies BI MODAL BY DESIGN

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Innovation Myths

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The myths are:

1. ROI is the most important innovation metric.2. People know what they want; just ask them.3. You know who your best innovators are.4. The value of a new idea is self-evident.5. Big problems require big solutions.

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Success Mantra

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Leaders who create extraordinary new possibilities are passionate about their mission and tenacious in pursuit of it. Many people have good ideas, but many fewer are willing to put themselves on the line for them. Passion separates good intentions and opportunism from real accomplishments.

Step 1: Aspiration Versus Passion

I want to be an Astronaut, but I hate Physics !

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The view that good ideas are rarer and more valuable than good people is rooted in a misconception of creativity.

Step 2: Innovation and Leadership

At the heart of innovative problem solving is the need to both unleash individual slices of genius and harness them into collective genius. Unleashing talent is essential to developing promising ideas and options. Harnessing talent is essential to shaping those ideas and options and selecting new and useful solutions from among them.

Innovative Paradoxes

Harness Collective Creativity

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Step 3: Individualism vs. Collectivism: Our Future, Our Choice

Individualism is the idea that the individual’s life belongs to him and that he has an inalienable right to live it as he sees fit, to act on his own judgment, to keep and use the product of his effort, and to pursue the values of his choosing..

Collectivism is the idea that the individual’s life belongs not to him but to the group or society of which he is merely a part, that he has no rights, and that he must sacrifice his values and goals for the group’s “greater good.”

Good Citizenship

Giving back to the Society

Need Versus Want

Is my business solving a collective problem

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Good Luck and Thank you