Value Chain Resilience
Taking Business Continuity Management to the next level
Business and Value Chain Interruptions are globally seen as the corporate risk number 1. Supply chains with their complex global connections and diverse stakeholders can be disrupted in many ways. Such disruptions can be caused by natural or man-made incidents and might involve any combination of suppliers, employees, customers, competitors, the built environment, the natural world, governments, and nongovernmental organizations. The root-cause events either hit a company directly, or impact a deep-tier supplier, maybe even a customer’s customer. Neglecting these challenges can become a threat to the very survival of an organization.
In times of rapidly increasing digitization of business processes and new digital business models companies struggle more often with the threats of Business and Value Chain Interruptions. This could have a major impact on their daily business and hence their production cycle, reputation and revenue. The need for a fast response to those risks and critical events is key to a successful continuity of the business. Awareness of such threats is not sufficient and not the same as true preparation to handle them effectively. In a recent Deloitte study "A crisis of confidence, Deloitte Touche Tohmatsu Limited, 2016" most management executives reported that they feel confident with their organization’s readiness to continue business after critical events. However, a closer look into the real situation has proven the opposite. The reason for the misjudgment is simply because most organizations are lacking a holistic plan and playbook to handle major crisis. They rely on business continuity plans which usually cover only parts of the entire value chain but do not consider the end-to-end flow of goods or services.
Deloitte’s Value Chain Resilience specialists provide consultative and management services to help executives, boards and decision makers to identify, assess, prepare and respond to critical events and strategic risks along the entire value chain.
What we do
We help clients become more resilient and prepared to continue business during and after critical events of any kind, enabling them to continue to serve their customers, protect their people and support communities they serve. Value Chain Resilience takes an end-to-end perspective in assessing, processes, internal and external partners, key resources and IT systems to ensure the overall alignment of emergency capabilities and plans, in order to manage critical events or disasters impacting the business.
We provide advisory for nearly every industry and value chain, helping clients face, prepare for, respond to and recover from critical events.
How we can help
Value Chain Resilience is about ensuring that organizations apply a robust approach and put business continuity as well as IT service continuity concepts in place to deal with critical events or disasters of any kind. We provide services which help our clients to improve their readiness for those disruptions.
Frequently Business Continuity activities are pursued by different parts of an organization and work in silos. The consideration of affiliate processes or functions is insufficient.
We provide services that take a holistic viewpoint and provide full transparency of the entire value chain and a 360° view on its critical enablers.
- Value Chain Assessment – Identifying and mapping the capabilities and robustness of services, resources and interfaces that are involved in the flow of goods and services.
- Enabling Function Assessment – Understanding and evaluating the business impact of critical enabling functions like accounts payable, treasury, facility services, regulatory reporting.
- Business Continuity Plan Review – Assessing consistency and alignment of continuity planning across the key players that are involved in a value chain and between business and IT functions.
Being well prepared for major business threats requires capable, well-orchestrated plans and people as well as functions which oversee and closely collaborate along the entire value chain. However, plans will only remain theory until they have practically proven that they work.
We provide services to develop aligned functional disaster response strategies, corresponding governance concepts and help in proofing that your plans work.
- Business Continuity Governance – Establishing cross-functional and cross-organizational control instances, processes and metrics that facilitate effective preparation and management of disaster situations.
- Business Continuity Planning – Planning for specific risk scenarios and risk events across the globe that can have a profound, disruptive effect on operations, revenue and reputation.
- Simulation and Wargaming – Experiencing and practicing skills staff requires to manage exceptional situations as well as stress testing your continuity planning.
Often the focus of Resilience in IT is on Service Continuity addressing single system events. Larger disastrous events like infrastructure outages or cyber-attacks usually are not addressed appropriately.
We provide advisory services to help organizations withstand or avoid disruptions supported by robust processes and architectures to recover quickly.
- IT post-incident review – Understanding the Root Cause of an IT disruption as well as looking also at the management of the fallout from such events;
- IT service risk assessment – Identifying and mapping critical business activities onto IT applications and infrastructure components to identify resilience risks;
- IT resilience current state assessment – Review of current management processes and capabilities to understand maturity and readiness, yielding an actionable improvement plan;
- IT resilience design – Develop architectural and solution design standards, reference architectures and product /vendor evaluation processes, to support a resilient IT environment.