© 2011 Sixhills Consulting Ltd‘Virtual’ Network OrganisationThe ‘Virtual’ network organisation focuses on its core competencies whilst delivering best-in-class service at lowest cost either in-house or from an external network of partnersP2IT Commercial Skills Development - Part 2Defining The End State• Functions/components that can be outsourced to leverage the infrastructure of functional providers who have systematically superior economics or not critical to maintaining core competencies•Card Processing•Desktop services•Catering•Cleaning• Associated infrastructure that is either crucial to sustaining core competencies or in which internal capabilities can be consistently best-in-class and maintain competitive advantages (e.g., lowest cost)•Servicing platform (website)•Change Management•Content Management•Risk Management•Credit and Fraud•Branding• Components that are critical to the franchise– analytical competencies– skills and experience– IPRDescriptionExamplesCoreCompetenciesExtendedEnterpriseCriticalInfrastructureCharacteristics of Core Competencies• Skills/knowledge sets• Limited in number• Unique source of leverage• Areas of dominance• Important to customers• Embedded in the organisation
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