transforming and integrating capabilities in m&a scenario

© BA Convention 2017

Transforming and Integrating Capabilities in M&A

Scenario using Business Capability Framework

Ashok Faujdar

Anirban Chattaraj

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2© BA Convention 2017

Index

1. Background - Business Context

2. The Problem

3. The Objective

4. The Approach

5. The Solution I. Discovering Key Capabilities

II. Defining transformation and integration focus

III. Assessing process & capabilities gap

IV. Analysing the transformation needs

V. Designing capability integration

VI. Delivering the Solution

6. The Outcomes

7. The Learnings



Index


2. The Problem

3. The Objective

4. The Approach







6. The Outcomes

7. The Learnings



Background - Business Context: VMware & Airwatch

Trusted platform provider of choice for more than 500,000 customers globally, VMware is the pioneer in virtualization and an innovator in cloud and business mobility. A proven leader, we allow you to run, manage, connect and secure applications across clouds and devices in a common operating environment, so you get both freedom and control.

Founded 1998, Palo Alto, USA

Employees 18000+

Key Products vShpere, NSX, vSAN, vRealize… many more

AirWatch has over 16,000 customers in 150 countries, and supports Android, Apple iOS, Apple TV, BlackBerry, Chrome OS, Mac OS X, Symbian, Tizen, and Windows platforms. It was originally named “Wandering WiFi”.

Founded 2003, Atlanta, USA

Employees 2300+

Key Products Airwatch, Airwatch Express, Workspace ONE

In February 2014, VMware acquired AirWatch



3.5 Billion

Mobile DevicesDeployed by 2019

>50%Customer-facing and employee-facing IT investments will be

Mobile-focused

$190 Billion

Invested in processes for mobile employees

and customers

Background - Business Context …..

5

With acquisition of Airwatch, large market opportunity is available

Source: Forrester report



Background – Airwatch Business Model



Index


2. The Problem

3. The Objective

4. The Approach







6. The Outcomes

7. The Learnings



The Problem… Customer experience perspective

8

After three years of acquisition, Airwatch BU* remains partially integrated with VMware

Customer journey & challenges

BU - Business Unit, AW-Airwatch



The Problem… Capabilities perspective

*BU - Business Unit, AW-Airwatch

After three years of acquisition, Airwatch BU* remains partially integrated with VMware

Capability Challenges

• Separate Teams – handling similar

business operations

• VMware and AW processes are not

integrated

• AW has multiple manual processes

• Multiple redundant systems

• Lack of integration

• Separate systems, processes, teams and management

leading to control, risk & management issues

• Different date models & reports

• Breakage of data flow

• Approx. 40% (i.e. over 12K ) orders are still on AW systems

• Avg. Order processing time for AW orders is twice of VMware orders

• 20+ AW Systems to be assessed for integration with VMware



Index


2. The Problem

3. The Objective

4. The Approach







6. The Outcomes

7. The Learnings



AW End-State Program was initiated in 2016 to achieve the following…

The Objective

11BU - Business Unit, AW-Airwatch

Program

Objective

Business

Impact

The Team

Ensure unified and frictionless customer experience by:

• Integration of the Airwatch people & processes which are still separate from

VMware into core processes

• Integration/unification of systems, data insights and governance

Deliver AW offerings through common set of value chain capabilities providing for

a unified customer experience, improved revenue capture and operating cost

Cross-functional team across echnology, Business Operations, Data Science led

by Business Transformation & Automation team



Index


2. The Problem

3. The Objective

4. The Approach







6. The Outcomes

7. The Learnings



Discover Define Analyze Design Deliver

Identify

capabilities and

business impact

Identify/Answer

key strategic

questions on

direction.

Identify & define

scope &

requirements

Identify key

differences that

need to be

reflected in end

state

Design of end

state solution:

Draft/Review

End State with

key business

stakeholders

Deliver /

Implement the

solution

(roadmap

initiatives)

The Approach



Detailing the approachOperational Enablement Approach – Activities, Deliverables



Index


2. The Problem

3. The Objectives

4. The Approach







6. The Outcomes

7. The Learnings



Discovering key capabilities

Business Capability“WHAT” a business does to enable its strategy

A capability comprises People, Process, Data Insights, Technology and Governance

People (Talent)

The skills, incentives,

and workforce planning

that enable optimal

talent base to execute

the capability

Process

An integrated set of

activities to achieve the

desired outcome

Governance

Clear roles & responsibilities, organizational structures, decision rights, policies and operating standards

Data Insights

The information,

analytics and data flow

that drive informed and

timely decision making

Technology

The technologies

needed to enable the

desired outcome


• Identify Capabilities• Assess Business Impact

• Prioritize Opportunities• Develop Business Case



Key Capabilities to be integratedLegends:

Discovering key capabilities: Business Model ComponentsDiscover Define Analyze Design Deliver

• Identify Business Model Components in scope



Discovering key capabilities: Capability FrameworkDiscover Define Analyze Design Deliver

Key Capabilities to be integratedLegends:

• Use Business Capability Framework to identify the capabilities to be transformed



Defining transformation and integration focus

19


• Define Detailed Scoping & Requirements

• Conduct Scope & Feasibility Study

• Supporting rationale for “out-of-scope” areas of the value chain

• Validate Business Impact

• Define Extended Team, Resource, Requirements

• Expected budget, resource requirements to deliver in-scope items

• Expected timeline to deliver in-scope items

Scope Feasibility Study Scope & RequirementsScope & Requirements

• Specifics RTMs needed?• Selling methodology used – VMW vs AW?• Any impact to partners?• Pricing and Licensing model?• Order validations and provisioning?• Maintaining entitlements?• IVR flow, Issues Routing & Escalation processes

Strategic questions to be considered



Analysing process & capabilities gapDiscover Define Analyze Design Deliver

• Analyze L2/L3 Capabilities & identify capability increments

• Gap Analysis/ Requirements : People, Process, Data, Systems, Governance

• Analyze Processes & Policies:

• Conduct L3 Mapping of present processes

• Conduct detailed analysis of current state process / performance

o L1/ L2 /L3 To-Be CFPM*/ Value analysis

• System Analysis : Applications impacted

• Data Analysis: Metrics / Operational definition

Process Analysis Data Analysis

OM moves stage to Closed Won Awaiting

Fulfillment

SFDC sends email to dedicatedenvreg@air-

watch.com indicating env needs to be created

Product – Deployment type = Dedicated

Class = New

Creates Zendesk ticket for SaaSOps

(Sales Rep + OM cc’d)

Environment created by SaaSOps based on dedicated env request

form

7-10 business day queue

SaaSOps closes ticket and provides URL

Login + Customer USN & TEMP PSWD

Order Fulfilled

OM sends manual order acknowledgement email with

environment details to customer

OM to move stage from Closed Won Awaiting Fulfillment to

Closed Won Invoiced

SF Email trigger sent to AW Accounting to begin revenue recognition

OM ensures Rep has dedicated setup form filled out by customer

SFDC sends Order Acknowledgement email

to Customer with Customer Name, Order#

and Deployment TypeOM pushes deal back

to Rep for action OR

Requests Return

Opp Passed all Validation Checks?

NoYes

No Form

[email protected]

m BCC’d

Business Line = VMware

Order Information populated in AW SFDC

AW Partner PO

AW Direct Customer PO

VMW Oracle

OM validation of opportunity New or Existing Customer?

New, Add-on, Renewal, Upgrade?

AW Paper – Legal check, Discount Approvals

*CFPM – Cross functional process mapping

Capability Analysis Systems Analysis



Designing capability integration Discover Define Analyze Design Deliver

Design future state capabilities:

• Design future state operating model

• Roles, levels, skills, locations

• Design future state E2E processes

• Business requirement documentation

• Design to-be architecture

• Draft technical specifications

• Draft policies & controls

• Draft RACI

• Draft metrics/ data definitions/ KPIs

• To-be reports/ analytical models



Designing capability integration: To-Be state (sample)Discover Define Analyze Design Deliver



Delivering the solution Discover Define Analyze Design Deliver

• Solution development & implementation plano Implement process changes / solution

o Change management

o Support solution & process stabilization

• Define operating procedure

• Facilitate continual improvement

• Track / Report - outcomes & objective



Index


2. The Problem

3. The Objective

4. The Approach







6. The Outcomes

7. The Learnings



The Outcomes

Seamless self-service experience

Consistent support experience across VMW and AW products

Enhanced value with bundled offerings

Optimized and efficient Trial-to-Purchase process

Consolidated Renewals

Common Partner programs

Frictionless customer experience through.. 85% CSAT

100% AW Orders integrated to VMW Systems

50% Reduction in order processing time

Well defined, & optimized processes

AW-VMW System Integrated



Index


2. The Problem

3. The Objective

4. The Approach







6. The Outcomes

7. The Learnings



The Learnings

“Failing to plan is planning to fail”

Drive transformations through capability-led-approach

“Solve the right problem”

Define program objectives with most significant positive

impact to customer experience and business

“Managing the change is key to success”

Apply a holistic and proactive change strategy

(internal & external)

“Create value for your customers”

Need to define the “desired customer experience” that

reflects our vision

transforming and integrating capabilities in m&a scenario

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