Consumption Management

EquaSiis Enterprise provides a robust and scalable issue tool set for effective and efficient consumption management of delivered services. 

Functionality

  • Consumption scorecard providing the aggregate view of volumes of consumption for all in-scope services provided by one or multiple service providers and/or shared service centers.

Consumption Management

 

Any business case for an outsourcing or shared services initiatives is built on a set of consumption pattern assumptions for in-scope services.  Many organizations are attempting to transform to a future state which includes the adoption of self-service mechanisms.  In IT organizations, for example, this may include consolidated call centers or the implementation of service catalogs.  In human resource organizations this typically includes employee self-service (ESS) and/or manager self-service (MSS) systems. 

Buyers make assumptions about the adoption levels and pace of each of these technologies or consolidated centers.  Buyers typically assume that adoption will occur at a reasonable rate and  will enable the redeployment of the resources that used to perform those services.  This adoption and change of consumption behavior is what produces a large amount of a deal's value.

Getting business units to adopt new services is very challenging and those challenges are typically underestimated.  Providing the required level and quality of change management and communications is challenging.  If adoption plans are not successful, the buyer organization will end up paying the provider for new service delivery capabilities while still paying the resources delivering the services via the old methods.  This is one common way in which organizations fail to realize the expected value of their outsourcing and shared services endeavors.

A second dynamic in an outsourcing effort is that most buyers previously had a natural constraint in their consumption because of the limited number of resources delivering the services.  Capacity constrained usage.  Once buyers have outsourced, their service provider has a virtually unlimited capability to provide services.  Organizations that fail to monitor and put constraints on their consumption will end up paying more after outsourcing than before because of their over-consumption.

Whether monitoring consumption in a transformational deal, or just limiting how much is consumed, organizations need tools that help them track how much they have consumed, who consumed it, and where it was consumed.  Outsourcing buyers lacking these tools excessively find the first indication that their organization is over-consuming, or that new service models are not being adopted, which is when invoices are higher than expected for several months.  Then the research begins to find the cause.  This is like driving while looking in the rear view mirror.  EquaSiis Enterprise can enable outsourcing buyers to manage and drive while clearly looking forward.