Organisations that continue to adopt Shared Services and Outsourcing are reaping the benefits of a lower cost base, improved productivity and a retained staff base that is focussed on delivering core business competencies.

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“Advances and innovation in technology such as cloud computing, digital process automation and robotics are dramatically improving the standard of offerings from Shared Service and Outsource providers…”

In establishing a strategic vendor management capability, organisations need to consider that contract management alone is not going to be enough to maximise the business value that can be generated from its relationships with suppliers. 

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“Deloitte Vendor Management Services deliver capability uplift into client organisations across eleven core areas in order to achieve maximum benefit from optimising the vendor management approach.”

As organisations face sustained pressure to reduce costs, improve financial and operational performance, Vendor Relationship Management (VRM) is a critical enabler for success. In this week’s post, we will introduce you to the topic by outlining the aims and objectives of the VRM concept.

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“Vendor Relationship Management (VRM) is the discipline of managing vendors to extract maximum possible value from a contractual arrangement through governance and relationship building. The relationship building is key, and understanding what the benefits are for both parties is critical as any one-sided transactional approaches may be less beneficial.”

LegacyIn part I & part II of this topic we have been discussing the need for a core renaissance and how organisations can execute on the five approaches of: Replatform, Remediate, Revitalize and Replace (see part I). In this post we discuss an example of how the US Army are using Platform-as-a-Service (PaaS) as their own secret weapon against legacy applications.

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“The US Army had a core legacy solution that was unable to be moved out of a data centre and into a cloud environment. It was a prime candidate for core renaissance.”

PaaS - Platform-as-a-ServiceFollowing on from Part I of our Core Renaissance blog series, Part II will now discuss how Platform-as-a-Service (PaaS) promises to bring about significant disruption to core legacy systems.

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“Cloud computing technology is radically changing the dynamics for how organisations can execute on the five approaches of core renaissance”

The Deloitte report “Tech Trends 2015 – The fusion of Business and IT” found that on average, 80 percent of time, energy, and budgets are consumed by the maintenance and support of core legacy systems. Within these core systems, unwanted technical debt and complexity likely exist, with systems at various stages of health, maturity, and architectural sophistication.

But the legacy core can also be a strategic foundation that enables experimentation and growth.

As focus shifts from performing business processes to enabling innovation, reinvented core systems can form the foundation for growth and new service development

Deloitte found that leading organisations are building a roadmap for a renaissance of their core — focused not on painting their legacy as the “dark ages,” but on revitalizing the heart of their IT and business footprint.

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“Leading organisations are building a roadmap for a renaissance of their core — focused not on painting their legacy as the “dark ages”.