hfs webinar slides: becoming an intelligent oneoffice
TRANSCRIPT
Proprietary│Page1
The Services Research Company
Becoming an Intelligent OneOffice
An HfS Webinar, 8th September 2016
Hosts:
PhilFersht,CEO&ChiefAnalyst,[email protected]@pfersht#hfsresearchWeb:www.hfsresearch.com |Blog:www.horsesforsources.com
RobBrown,AVP,[email protected]@twitter_handleWeb:www.cognizant.com |Blog:www.futureofwork.com
Proprietary│Page2©2016HfSResearch Proprietary│Page2
Our Webcast Panelists Today…
RobinGordonChiefDataOfficerCoreLogic
JasonBarkhamVP,BusinessTransformationSolutionsWarnerBros.Entertainment
RobertBrownAVP,CenterfortheFutureofWorkCognizant
VipulKhannaEVP&GlobalHead- BPSCognizant
JamieSnowdonEVP,ResearchOperationsHfS Research
Proprietary│Page3©2016HfSResearch Proprietary│Page3
Overview:• 20years’businessexperienceintheglobalITandbusinessprocessoutsourcing
andsharedservicesindustry• Coinedthe“As-a-ServiceEconomy”in2014• Industryanalyst,author,speaker,strategistandblogger• Advisedandcogitatedon100’sofglobalITservices,BPOandsharedservices
engagements• Meddleswiththelargestglobalnetworkofenterpriseservicesandoperations
professionals
CareerExperience:• PracticeLead,ITServices&BPOResearch,Gartner,Inc• GlobalBPOMarketplaceLeader,DeloitteConsulting• ConsultingPracticeLead,IDCAsia/Pacific• ITMarketsPracticeLead,IDCEurope
Education:• BSwithHonorsinEuropeanBusiness&Technology,CoventryUniversity,United
Kingdom• DiplômeUniversitairedeTechnologieinBusiness&TechnologyfromtheUniversity
ofGrenoble,France
Phil Fersht, Founder, CEO and Analyst, HfS Research
Proprietary│Page4
About HfS, The Services Research Company
©2016HfSResearchLtd. Proprietary│Page5
©2016HfSResearchLtd. Proprietary│Page6
Unbridled Opinion… Simply Calling It How It Is
www.horsesforsources.com
©2016HfSResearchLtd. Proprietary│Page7
…With a More Serious Side Too! www.hfsresearch.com
©2016HfSResearchLtd. Proprietary│Page8
The HfS Service Buyers Summits…next up New York
www.hfsevents.com/new-york-2016
Proprietary│Page9
The As-a-Service EconomyAnd The “Intelligent OneOffice”
©2016HfSResearchLtd. Proprietary│Page10
Digital and Cognitive are Driving Enterprise OperationsDoyouagreeordisagreewiththefollowingstatements?
24%
28%
32%
46%
44%
43%
70%
72%
75%
Deployingintelligentoperationstoalignthefrontofficewithcorebusinesswillhavethe
biggestimpact
Cognitivecomputingisbecomingacriticalcomponentofourfutureoperationsstrategy
Newdigitaltechnologyinitiativesareradicallychangingthewaywemanagebusiness
operations
StronglyAgree SomewhatAgree
Source: “Intelligent Operations" Study, HfS Research 2016Sample: Buyers = 371
©2016HfSResearchLtd. Proprietary│Page11
Senior Management Driving Customer First ThinkingPleaseindicatewhetheryouagreeordisagreewiththefollowingstatementsaboutYOURIntelligentOperationsmind-settoday
Source: “Intelligent Operations" Study, HfS Research 2016Sample: Buyers = 371
31%
34%
38%
42%
47%
48%
53%
55%
53%
50%
46%
45%
16%
11%
9%
9%
7%
7%
Sourcingofexternalas-a-ServicemodelswillbedeliveredbytheexistinglandscapeoftraditionalIT
Serviceproviders
Sourcingofexternalas-a-Servicemodelswilllargelybedeliveredbyaconstellationofnewbreedproviders
Sourcingofexternalas-a-Servicemodelswillbedrivenbyanoperations-first,or“processfirst”strategy
MovingtoIntelligentOperationswillallowourprocessinteractioncoststodecreasedramatically
MovingtoIntelligentOperationswillallowustobettersegmentandorganizeworkandworkprocesses
Sourcingofexternalas-a-Servicemodelswillbedrivenbya“customerfirst”strategy
Agree Neutral Disagree
©2016HfSResearchLtd. Proprietary│Page12
2020 Vision: The “Intelligent OneOffice” will emerge from Digital + Automation
TheDigitally-DrivenFrontOffice
Mobile,Social/Interactive,Real-timeactionabledata,DesignThinking
DigitalUnderbellyIntelligentAutomationofmanualprocessesDigitizationofdocumentsIoT
IntelligentDigital SupportFunctionFrontoffice-alignedIT,Finance,HR,Procurement,SupplyChain
IntelligentDigitalProcessesPredictive&OperationalAnalytics,Cognitive.
TheCustomer-firstDigitalOrganization
TheEnablingIntelligentOneOffice
The Nervous System, incepting & Processing
all Inputs
The Neural System
The Circular System
©2016HfSResearchLtd. Proprietary│Page13
Greater Urgency to Change the Model Driven From Senior ManagementHowquicklywillyourcoreenterprisefunctionsadapttobecomeIntelligentOperations?
6%
50%
37%
6%2%
7%
36%
44%
9%
4%
Wearealreadythere
Within2years Within5years Within10years Never
SVP+ VPandBelow
Source: “Intelligent Operations" Study, HfS Research 2016Sample: Buyers = 371
Overhalfofuppermanagement(56%)wantchangewithin2years
©2016HfSResearchLtd. Proprietary│Page14
The Service Providers will bifurcate into two groupings
BackOfficeOutsourcersEfficiency,Automation,LaborArbitrageandScalability
OneOfficeEnablersDataOrchestrationandHumanCollaboration
©2016HfSResearch Proprietary│Page15
Source: “Making that leap from effective to strategic BPO/BPM" Study, HfS Research 2016Sample: 343 Industry Stakeholders (Enterprise Buyers = 115, Advisors = 55, Service Providers = 173)
What would you change about the services industry if you had one wish?
4%
10%
14%
22%
5%
18%
10%
19%
13%
3%
13%
20%
10%
10%
20%
10%
3%
6%
8%
10%
11%
14%
24%
25%
Other(pleasespecify)
Nomorevisaissues
Eliminateratecards
LessPowerPoint
Badqualityteleconferencelines
Lesshypearoundautomation
Clients/servicebuyerstellingtheirstories
Morewomeninleadershiproles
Ifyoucouldchangeonethingaboutthisindustrywhatwoulditbe?Buyers Advisors ServiceProviders
©2016HfSResearchLtd. Proprietary│Page16
Our Webcast Panelists Today…
RobinGordonChiefDataOfficerCoreLogic
JasonBarkhamVP,BusinessTransformationSolutionsWarnerBros.Entertainment
RobertBrownAVP,CenterfortheFutureofWorkCognizant
VipulKhannaEVP&GlobalHead- BPSCognizant
JamieSnowdonEVP,ResearchOperationsHfS Research
Proprietary│Page17
The Intelligent Operations Study
©2016HfSResearchLtd. Proprietary│Page18
Executive Summary: Customer First Drives EverythingAlthough business leaders understand the broad benefits of digital to business and the wider economy,enterprises are struggling to come to terms with what it means for them and how to make the mostof it.
• Movingtoacustomerfirstthewayforward– with72%ofmanagers agreeingthataligningbackofficecritical
• Automation numbertwosteponthepathtointelligentoperationsfor“customerfirst”organizations
• SeniormanagersfrustratedbylackofagilityandlookingatpoorIT/Businessintegrationasreason
• Manyenterprises managerswanttoseechange,targetingaggressivematurity increases– mostwantedtodouble
• A“customerfirst”organizations’leadershipviewsthecustomerasthedriverforexternalsourcing– thisgroupismoresureofpathtointelligentoperations
• Thechangeisdrivenfromthetopandmiddlemanagers(almostafifth)arelookingtoexternalchangeagenttodeliver
• Threequartersofbusinessleadersagreethatdigitalischangingthewaybusinessesneedtobemanaged
• Operationsstillfocusedonstatusquo– withambitiouscostsavingtargets.20-30%+seemsaggressivegivenpriorsavings
• Lack ofwillingnesstomovetousenewstyleofoutsourcing–withonlyathirdwillingtomovetonewstyle.As-a-servicescares.
“CustomerFirst”drivesdigitalandmakesoperations
intelligent
Thereisahugesenseofurgencytotransform,but
directionisnotclear
Digital haspromotedastateofchange
56%of seniormanagementwantcorebusinessfunctiontransformationwithin2years,butstilllooktoexistingsolutionstodeliverthechange
BusinessLeadersunderstandthepowerofdigitaltechnologies
Automation,analyticsanddesignthinkingtheway forward
©2016HfSResearchLtd. Proprietary│Page19
DownloadNow!
©2016HfSResearchLtd. Proprietary│Page20
Are we ready for intelligent operations?
©2016HfSResearchLtd. Proprietary│Page21
The Road to Intelligent Operations—How Mature Now?Howmuchprogresshasyourenterprisemadeachievingeach“IntelligentOperations”end-statetoday,andwheredoyouexpecttobein3Years’time,basedoncurrentinvestmentplansandoperationalmaturity?
(%respondentsanswering4&5)
MaturityNow Plannedin3Yrs
LEGACYOPERATIONS INTELLIGENTOPERATIONSSimplificationWriteOffLegacy
DesignThinking
BrokersofCapability
CollaborativeEngagement
IntelligentAutomation
Actionable&AccessibleData
HolisticSecurity
Plug&PlayDigitalBusinessServices
LowMaturity HighMaturity
2.6
2.8
2.6
2.8
2.7
2.8
2.8
2.5
3.1
3.3
3.1
3.2
3.2
3.4
3.3
3.1
1 52 3 4
©2016HfSResearchLtd. Proprietary│Page22
How do you see the disconnect between management layers?
©2016HfSResearchLtd. Proprietary│Page23
Management Layers Are Asking Different Questions
SeniorManagers
Moreoptimisticaboutleveragingtechnologyforoperations(32%stronglyagree)Wanttomovetoanas-a-servicestyleprovider toachieveoperationalgoalsViewintelligentoperationsaswaytorethinkwork&achievebusinesschange(58%)
MiddleManagers
Lessoptimisticabouttechnologyandoperations(18%stronglyagree)Wantachangeagentto achievetheiroperationgoalsViewgreatercollaborationasthewaytoachievechange(57%)
©2016HfSResearchLtd. Proprietary│Page24
How can we create engaging careers?
©2016HfSResearchLtd. Proprietary│Page25
63%
13%13%
69%69%69%
83%
53%
34%
91%
76%
49%
MyBPOroleisfundamentaltobusinessperformance
BPOtodayisanexcitingcareerchoice
BPOhasadefinedcareertrackandacertainfuture
Towhatextentdoyouagree/disagreewiththefollowing?(Agreestoagreatextent)
1 in 8 professionals new to BPO view an exciting and long-term career path
<2Years 2to5Years 5to10Years >10Years
Source: ”Talent in BPO" Study, HfS Research 2015Sample: Enterprise Service Buyers = 192
Experience:
©2016HfSResearchLtd. Proprietary│Page26
Top skills in 2020 shift to critical thinking, creativity and Emotional Intelligence…
©2016HfSResearchLtd. Proprietary│Page27
Maturity of Intelligent Operations – Do We Share These Goals?
©2016HfSResearchLtd. Proprietary│Page28
Expectations for Operations Maturity Sky High Across Business Function
Whichofyourbusinessfunctionsarethemostmatureintermsofintelligentoperationsnow?Wherewouldyoulikethemtobein3years?(Scale1-5,just4&5)
19%
19%
19%
23%
25%
25%
25%
26%
41%
44%
45%
50%
50%
54%
53%
50%
FinanceandAccounting
HumanResources
Procurement
SupplyChainandLogistics
ITapplicationmaintenance&development
ITandNetworkinfrastructuresupport
CustomerService
Sales/Marketing/CRM
Targetfor3years MaturityNowSource: “Intelligent Operations" Study, HfS Research 2016Sample: Buyers = 371
Toleranceforpoorinnovation
intentionsisonlyseeninretailandpharmaindustries
©2016HfSResearchLtd. Proprietary│Page29
What is getting in the way of Intelligent
Operations?
©2016HfSResearchLtd. Proprietary│Page30
Budget, Change Management and Standardization Concerns Slow Adoptions
Whatarethetop3obstaclestoyourfirmachievingmoreintelligentoperations?[Picktop3.]
28%
29%
21%
27%
25%
23%
28%
24%
17%
17%
24%
22%
24%
27%
28%
32%
Currentoutsourcingengagementsdonothavescopeforinnovation
Lackofco-ordinationbetweenITandbusinessunitsontechnologyinvestments
Seniormanagementhasnoincentiveordesiretochange
Inabilitytowriteoff,workaroundorintegratelegacysystems
LackofcapabilityfromITleadershiptounderstandbusiness
Lackofprocessstandardization
Lackofresourcesorinvestmentforchangemanagement
Lackofbudget
VPandBelow
SVP+
Source: “Intelligent Operations" Study, HfS Research 2016Sample: Buyers = 371
SeniormanagersworryaboutlackofIT/BUco-ordinationandcurrentagreementslackof
flexibility
Whoisthebrokerofcapabilityinyourorganization?
Seniormanagersarelookingforhelpmakingtheirvisionareality
©2016HfSResearchLtd. Proprietary│Page31
Do we “fail fast” or “learn incrementally”
with OneOffice?
©2016HfSResearchLtd. Proprietary│Page32
PerverseInfiniteMonkeys
©2016HfSResearchLtd. Proprietary│Page33
What has to change to make this a reality? (In technology, enterprise
behavior, the market overall, the economy)
©2016HfSResearchLtd. Proprietary│Page34
Senior Management Concerns Focus on Internal Communication when Achieving Operational Change
Obstacle1- Lackofco-ordinationbetweenITandbusinessunitsontechnologyinvestments29%
Obstacle2- Lackofresourcesorinvestmentforchangemanagement28%
Obstacle3-Currentoutsourcingengagementsdonothavescopeforinnovation28%
Obstacle1- Lackofbudget32%
Obstacle2- Lackofresourcesorinvestmentforchangemanagement28%
Obstacle3- Lackofprocessstandardization27%
SVP+
VPandBelow
Source: “Intelligent Operations" Study, HfS Research 2016Sample: Buyers = 371
Whatarethetop3obstaclestoyourfirmachievingmoreintelligentoperations?[Picktop3.]
Seniormanagersarelookingforhelpmakingtheirvisionareality
Someoneneedstobethebrokerofcapabilitytohelp
deliveronvision
©2016HfSResearchLtd. Proprietary│Page35
Automation Is the Place to StartWhatisthemostimpactfultimingtobegintheseactions?
16%
19%
18%
19%
20%
24%
21%
23%
28%
31%
33%
33%
32%
30%
34%
34%
33%
30%
32%
29%
26%
30%
28%
26%
18%
15%
11%
13%
16%
12%
10%
12%
5%
6%
6%
7%
5%
4%
7%
4%
Replaceyourexisting(legacy)serviceprovider(s)with“As-a-Service”drivenproviders
Accomplishcreativeproblemsolving/"DesignThinking"
Retrainexistinginternaloperationstalenttoredesignprocesses
Investinspecializedchangemanagementsupporttoreorientoperationsstaff
InvestininternalITtalenttohelpusmigrateawayfromlegacysystems
Investineffectiveanalyticstools&skill
Identify/hireatransformationalleader/changeagent
Investinintelligentautomation
Now Withinthenextyear Within3years Within5years Never
Source: “Intelligent Operations" Study, HfS Research 2016Sample: Buyers = 371
SeniormanagementmuchmoreaggressiveabouttimingforthemovetoIntelligentOpsforcoreenterprisefunctions,with56%sayingitmustbewithinthenext2years—only43%ofVPandBelow
agreethatisrealistic.
©2016HfSResearchLtd. Proprietary│Page36
Questions?
©2016HfSResearchLtd. Proprietary│Page37
Appendix
Proprietary│Page38
About The Survey
©2016HfSResearchLtd. Proprietary│Page39
About the Survey: Industry GroupingsPleasespecifyyourcompany'sindustry
Source: Source: “Intelligent Operations" Study, HfS Research 2016Sample: Enterprise Buyers = 371
©2016HfSResearchLtd. Proprietary│Page40
About the Survey: Company Size Groupings UsedWhatareyourcompany'sannualrevenues?(inU.S.dollars)
Source: Source: “Intelligent Operations" Study, HfS Research 2016Sample: Enterprise Buyers = 371
©2016HfSResearchLtd. Proprietary│Page41
About the Survey: Title Function GroupingsWhat(job)titlebestdescribesyou?
Source: Source: “Intelligent Operations" Study, HfS Research 2016Sample: Enterprise Buyers = 371