Enterprise Applications Consultingwww.eaconsult.com • 510.540.8655

Joshua Greenbaum, Principal

Enterprise Applications Consulting

Business TransformaTion and Business ConTenT:

driving The nexT Wave of innovaTion

TableofContents

Introduction:TheTransformativePowerofContent .........................................................page1

DrivingTransformation–TheRoleofContentandInformation........................................page3

PlanningandExecutingContent‐basedBusinessTransformation ...................................page14

Conclusion:StrategicVisionandContent‐basedTransformation ....................................page17

OpenTextBusinessTransformation

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Introduction:TheTransformativePowerofContent

Businesstransformationinthe21stcenturyisneitheraluxurynorafad:companiesthatwanttosucceed

intoday’sbusinessclimateneedtobethinkingabout–andactingon–thechangingrequirementsthat

definesuccessacrossahostofindustries,publicsectoragencies,andnon‐profits.Thisdynamicbusiness

climate–drivenbybothexternalandinternalfactors–ispushingcompaniestochangetheirbusiness

processesandorganizationalmodels,aswellastheenterprisesoftwareonwhichthoseprocessesand

organizationalmodelsarebased.Thegoalisnotonlytofindmoreefficientmethodsandpracticesand

todrivedowncosts,butalsotoempoweremployeestobemoreinnovativeandbetterservecustomers,

partners,andotherstakeholders.

Intoday’seconomy,businesstransformationincreasinglyinvolvescontentandinformationaseithera

centraltenetoftransformation,orasanessentialcomponentofalargertransformationalprocess.This

isdrivenbytherealizationthatmostbusinessprocessescenteraroundthelifecycleofkeypiecesof

structuredandunstructuredcontent:processescreateortransformcontent,moveitthrougha

workflow,useittotriggerotherstepsintheprocessorkickoffentirelynewprocesses,andmaintain

andstorecontentforfutureuse.Theresultisthatcontentisnowthelynchpinforthemajorityof

interactionsbetweenenterprises,customers,partners,employees,andotherstakeholders.Inaddition

toitstraditionalsources,contentnowarrivesintheenterpriseasunstructureddatafromwebsites,

socialmediaandremotesensors,addingtothecomplexityifitsmanagementanduse.

Thiscontentalsoneedstobeformattedforuseonanincreasinglybroadrangeofmobiledevicessuchas

smartphonesandtabletsaswellasagrowingrangeofdesktop‐basedformatsandapplications.The

resultisthattheon‐goingrequirementsforbusinesstransformationcannotberealizedwithoutgiving

content,andtheinteractionsitenables,amuchgreater,ifnotcentral,role.

Thesecontent‐centricorcontent‐awaretransformationspromisetoberelativelyeasytoadopt,aswell

asofferrapidreturnonvalue,mostlybecausethiskindofbusinesstransformationcantakeplaceby

applyingnewtechnologyinawaythatlargelyaugmentsexistingbusinessprocessesinsteadofwholly

re‐engineeringthem.Theultimategoalofthiskindoftransformationspeakstobothtoplineand

bottomlineimprovements:Businessesandotherorganizationscanuseinformationandcontent–much

ofwhichisalreadyavailableintheenterprise–asastrategicleverforstreamliningkeybusiness

processes,improvingcustomerserviceandsatisfaction,supportingtherequirementsofincreasingly

complexregulatoryregimes,andenablingnewlyinnovativeprocesses.Thepotentialforupsideis

tremendous,whereasfailuretousecontentproperlywillmeanleavingoutanimportantcomponentin

any21stcenturybusinesstransformation.

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Luckily,failureneednotbeanoption.Therelativeeaseofadoptionandpotentiallybroadscopeof

content‐basedinnovationalsomeansthattransformationneednotalwaystakeplaceinabig‐bang

manner.Manycompaniesareabletobeginlarge‐scaletransformationwithsmall,highlyfocused

projects,andothershavebeenabletoconvertsmaller,stand‐aloneinitiativesintolarger‐scalebusiness

transformations.Theopportunitiesforusingcontentinatransformativewayaboundinmost

companies.

ThisisparticularlytrueintheSAPmarket,wheretheleadingenterprisesoftwarevendor’scustomers

arerunningrelativelymatureimplementationsoftheircoreSAPsystemsthatareripefortransformative

change.Theavailabilityofnewsourcesofinformationandcontentaswellasnewchannelsforcontent

consumptionareparticularlyrelevantintheSAPmarket:informationandcontentincreasinglyarriveat

theenterpriseinvastquantitiesandinrealtime,andtheirpotentialvaluefarexceedstheabilityof

existingtransactionalsystemstomakeuseofthesenewdatasources.Thehistoricalabilitytomanage

masterdataandassociatedprocessinSAPneedstobeextendedtoincludeasimilarlevelofcontroland

managementoverthecontent–muchofitunstructured–thatoriginatesoutsidethecoreSAPsystem.

Inaddition,enterprisesinallwalksoflifeareincreasinglyrequiredbymarketconditionstoempower

newgroupsofdecision‐makers,aswellascustomersandotherstakeholders,withagreaterabilityto

takeactionbasedonup‐to‐dateinformation.ThegoodnewsforSAPcustomersisthatthesenew

requirementsforinformationandcontentmanagement–andthebusinesstransformationthatare

enabled–canbedeliveredwithinanSAPprocess.Thisisanincreasinglyimportantaspecttothe

partnershipbetweenSAPandOpenText: OpenTextECMSuiteforSAPSolutionsallowsSAPcustomersto

extendSAPprocessesandfunctionalitytonon‐structured,non‐SAPcontent.ThisallowsSAPcustomers

tobothbettermanagethecontenttheyneed,andtogetridofcontentthatistransitoryornolongerof

value.

Thesefactors,combinedwiththeever‐presentneedtolowercostsandprovidegreateroperational

efficiency,haveledtoanewwaveofinnovationaroundinformationandcontentthatisbecominga

drivingforceinbusinesstransformationtoday.Thisreporthighlightshowthisshiftintheuseofcontent

andinformationishavingamajorimpactonSAPcustomersacrossawidevarietyofindustriesand

geographies,andhowSAP’saward‐winningpartnerOpenTextisenablingkeyaspectsofthis

transformation.

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DrivingTransformation–TheRoleofContentandInformation

Theroleofcontentandinformationhasmaturedsignificantlyinrecentyearsastheunderstandingof

theimportanceitcanplayinbusinesstransformationhasgrown.EnterpriseApplicationsConsulting’s

interviewswithjointcustomersofSAPandOpenTexthaveuncoveredthreegeneraldomainswhere

dramaticallychanginghowcontentandinformationareutilizedinkeybusinessprocesseshasbecomea

centraltenetofbusinesstransformation.

Thethreedomainsare:

1) Customer‐centrictransformation.

2) Efficiency‐basedtransformation.

3) Regulatorycompliance‐basedtransformation.

Whilethesearehardlytheonlyareaswherecontentandinformationcanplayatransformationalrole,

takentogethertheyillustratetheopportunitiesthatarepossiblewhencontentandinformationbecome

centraltobusinesstransformation.

Customer­centricTransformation:ThinkLikeaCustomer

Businesstransformationthatoptimizescustomervalueisincreasinglydependentonasignificantshiftin

understandingtheroleofcontentincustomerengagement,retention,andservice.Inmanyindustries

andpublicsectorentities,theexchangeofcontentintheformofdocumentsistheprimarywayinwhich

customerinteractiontakesplace–viaapurchaseorder,aninvoice,aservicerecord,oracontract,for

example.

Inaddition,thedocumentsthataregeneratedaspartofacustomerinteractionoftenhaveavery

complexandrichlifecycleduringthecourseofthecustomer’sengagementwiththecompanyoragency.

Thismeansthatanindividualdocumentmayhaveacompletelydifferentpurpose–andformat–

dependingonwhereinthelifecyclethatdocumentmaybeused.AninvoicelivesintheERPsystemas

financialdocumentusedforaccountingpurposes,whereaswhenitissenttothecustomeracustomized

offercanbeadded,allowingtheinvoicetoplayanadditionalroleasacomponentinalargercustomer

engagementprocess.Andwhenacallcenterreplooksattheinvoiceonbehalfofadisgruntled

customer,itbecomespartofacustomerserviceandretentionprocess.Gettingthesedifferent

interactionsanddocumentusecasesright–orwrong–canmeanallthedifferenceintermsofthecost

andeffectivenessofcustomeracquisition,retention,andsatisfaction,allofwhicharefactorsthatdrive

profitsorlossesstraighttothebottomline.

Mostcompanieshavetraditionallyfailedtooptimizethenewusesofcustomer‐centriccontent,and

traditionalcontentmanagementapproacheshavebeenlargelyattunedtowardstheneedsofthe

transactionalsystemsthatsupporttheseprocesses.Companiesthataretryingtobetruly

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transformationaltakeamuchbroaderviewofcustomer‐centriccontent,andmakeitsuseacentral

tenantoftheirbusinesstransformations.Enablingthatcontentlifecycle,andoptimizingitsvalue,has

becomeanimportantgoalintoday’sconsumer‐centricbusinesstransformations.

Thesetransformationmodelsarepermeatingold‐linecompaniesthatuntilrecentlydidn’tthinktheir

business‐to‐businessorbusiness‐to‐consumerinteractionscouldbeimprovedbylookingathowcontent

isused.Oneofthesecompanies,autilitycompanybasedintheMidwesternUnitedStatesthatusesSAP

asitsprimaryenterprisesoftwaresystem,explainedtoEACthattheirtransformationalmomentwith

contentcamewhentheyrealizedthattheircustomerinteractionKPIswere“justfine”whenthey

benchmarkedagainstotherutilitycompanies,butwhentheylookedmorebroadlyatnon‐utilityretailers

theirnumbersfellshort.

“OurCEOtoldusthatweneededtostopthinkinglikeautilityandstartthinkinglikeanAmazonora

Zappos,”amemberofthebusinesstransformationteamtoldEAC.Thatledtoawholesalerethinkingof

theutility’sinteractionswithitscustomers.Andwhilethegoalwasamajortransformation,thedecision

wasmadetostartwiththemostimportantformofinteractionbetweentheutilityanditscustomer–

thebill.Thatrequireditsownmini‐transformation:“Ourbillingsystemthoughtofthecustomerasasite

oraresidence,notasaperson,”theteammembertoldEAC.

Theutility’soveralltransformationtomoreretail‐likecustomerinteractionswasbasedonanumberof

importantconsiderations.Oneofthemostsalientwastheneedtolowerthenumberofservicecalls–

andhenceoverallcallcentercosts–byimprovingcustomeraccesstoaccountandbillinginformation.

Theutility’sexpectationsarethatupto300,000callsperyearcanbehandledthroughself‐service

insteadofthroughthecallcenterwhich,basedonanaverageof$5percallinautilitycallcenter,could

resultincallcentersavingsof$1.5millionormore.

Anotherconsiderationwasregulatorycompliance–

spendingupfrontonhavingcustomersbebetterinformed

andengagedisaneffectivewaytomaintainahighlevelof

regulatorycompliance,andmuchlessexpensivethan

spendingonremediatingproblemsresultingfromregulatory

non‐compliance.(MoreonthisissueintheRegulatory

Compliance‐basedTransformationsectionbelow.)

Ultimately,theoverallgoalwastoimprovecustomer

satisfactionbyatleastafactoroftwopercent,whichwould

alsohelpreducecosts,improveon‐timepayments,and

otherwiseimpacttopandbottomlineperformance.

Toreachthesegoals,theutilitystartedtolookattheroleof

contentinitscustomerinteractions,andthatstartedwith

THEROIOFECMINA

UTILITYCALLCENTER:

Expectedprocess

transformationsavingsina

utilitycallcenter:

300,000callsdivertedtoself‐

servicesupportthroughbetter

billpresentmentandcustomer

informationaccess.

PotentialSavings:

$1.5millionperyear.

OpenTextBusinessTransformation

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thecustomers’monthlyenergybill.Ratherthanjustformattingbillsandsendingthemout,thecompany

implementedSAP®DocumentPresentmentbyOpenTextsoftwaretoallowthebilltocontain

personalizedmessagesandinformationthatcouldhelptheutilityimproveitsinteractionswithits

customers.TheuseofDocumentPresentmentalsoallowedtheutilitytoautomaticallyformator

repurposebillsandotherdocumentsforuseacrossallthedifferentwaysinwhichcustomerinteractions

takeplace:inthecallcenter,onthecustomer’smobiledevice,andinself‐servicekiosks.Thegoalwasto

capturehardsavingsfromalowernumberofservicecallsandfastertimestoresolution,andtocapture

softsavingsfromhigheroverallratesofcustomersatisfactionduetoimprovedandmorefruitful

interactions.

Withbillpresentmentasafirststep,theutilityalsosetinmotionthecreationofatechnologyplatform

–basedonSAPandSAPDocumentPresentmentbyOpenText–thatwillpositiontheutilitytocontinue

toevolveitsuseofcontentasakeycomponentinitscustomer‐centrictransformation.Asthat

transformationevolves,theutilitywilluseitsnewplatformtoleveragetwoimportantopportunities:set

thestageforunleashingthevastquantitiesofdatacomingfromitssmartmetersandotherdevices,and

fordeliveringthosedataintheformofinformationtothecustomersonsmartphones,tablets,and

othermobiledevices.

Thiscombinationofincrementaltransformation–improvebillpresentment,whileestablishinga

technicalfoundationforbroadertransformationaroundissuessuchaslowerservicecostsandhigher

customersatisfaction–isthekindofjourneythatcontent‐basedbusinesstransformationreadilylends

itselfto,andonethatanincreasingnumberofSAP/OpenTextcustomersareembarkingon.

Efficiency­centricTransformation:ContentasaRootCauseofInefficiency

Theroleofcontentinthepursuitofgreateroperationalefficiencyishardlyanovelconcept,butitsrole

asanimportantagentforbusinesstransformationcenteredaroundoperationalefficiencyisrelatively

new.Theshifthascomefromtakingacloserlookatthecausesofinefficiencyinorganizations:Looking

at“paperwork”andotherwastefulcontent‐basedprocessesasarootcauseofinefficiency,ratherthan

aresultofinefficiency,isaperspectivethatlendsitselftomakingcontentakeyfocusinbusiness

transformation.

Thisunderstandingoftheroleofpaperandcontentasarootcauseforinefficiencyledanotherjoint

SAP/OpenTextcustomer–astateuniversity–toplacecontentmanagementatthecoreofanoverall

SAP‐ledtransformationintendedtomaketheuniversityamuchmorecost‐effectiveinstitution.Forthe

university’stransformationteam,thiswasn’tjusta“nicetohave”idea.“Highereducationisbeginning

torealizethatwe’reabusiness,”saidthedirectoroftheuniversity’stransformationefforts.Andthat

meansthathavingmoreefficientprocesses“isamatterofsurvival.”

Withthisrealizationinmind,contentandinformationhavebecomekeyfocalpointsfortheuniversity’s

transformation.“Weneededtomakeourprocessesmoreeconomical,andpartofthatmeantrethinking

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whattheroleoftheuniversityrelativetocontentshouldbe,”saidthetransformationdirector.“Isbeing

arepositoryofknowledgethesameasbeingarepositoryofdocuments?”

Forthisuniversity,anumberofkeyprocesses–fromstudentenrollmenttograntsmanagementto

humanresourcemanagement–wereheavyusersofcontent,buttheuseofpaper‐basedprocesses

madetheircontentuseimmenselyinefficient.“Ouradmissionsprocesshadlotsofpaperthatwe

processedandhungonto,”thedirectortoldEAC.“Thatforcedustoputonadditionalstaff(during

admissionstime),andtheyworkedextrahourscarryingthedocumentsfromoneroomtoanotherfor

approval.Weneededtogetridofallthat.”

Figure1.EnterpriseContentManagementforTalentSourcing

Source:SAP,OpenText

Themanagementofgrantsatthisuniversityhadasimilarlyflawed,paper‐basedprocess.Inorderfora

governmentresearchgranttobeapprovedbythegrantingagency,ithastobecertifiedasanofficially

sanctioneduniversityproject.Thatcertificationprocesshastoincludeinformationfromdifferent

universitydepartments,andasanun‐automatedpaper‐basedprocess,grantapprovalwashardto

manage.Therisksforfailurearerelativelyhigh:awrongstepinthegrantmanagementprocess–a

missingorlatecertification–couldjeopardizenotjustasinglegrant,buttheuniversity’soverallaccess

tograntsfromthegrantingagency.

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“Nowwehaveaprocesswherethedocumentsflow

electronically,soweknowwheretheyare,”the

directorsaid.“Andwe’vebeenabletoreducethe

approvaltimefromdaystohours.”

Anotherexampleofhowanoveralldriveforefficiency

canbeusedtomakehighlytargetedprocesschanges

camefromareviewoftheprocessofchanginga

courseattheuniversity.Thetransformationteam

discoveredthatittook72piecesofpapertomakea

change,mostlybecauseaverybroadrangeof

stakeholdersfelttheneedtohaveasayinthechange

process.Changingtheprocesstoanelectronic‐

documentmanagedprocesshelpedeliminatea

significantnumberofstepswhilestillproviding–via

electronicaccess–theabilityforawiderangeof

stakeholderstohavetheirsay.

Thisabilitytofixabrokenprocessandenablepotentiallyevenmorestakeholderengagementisoneof

thereasonswhycontent‐basedtransformationisagoodstartingpointforanoverallbusiness

transformationsuchastheonethatthisuniversityisexecuting.“Ouruserswerereadyandableto

adoptdigitalcontentmanagement,”amemberoftheteamtoldEAC.“Theseusershavebeenvery

positivechampionsinthecampuscommunity”forthetransformation.

Theuseofnewsocialandmobiletechnologybythestudentpopulationhasalsoledtheuniversityto

changeacoresetofprocessesaroundhowitengageswithstudents,particularlywhenitcomestoone

oftheuniversity’sprimarygoals:helpstudentsbecomewell‐educatedandgraduateontime.Tothisend

theuniversityisusingSAPHANAandOpenTextECMsoftwaretoanalyzeabroadrangeofinformation

onstudentperformance,preferences,coursework,studygroupavailability,andotherfactors.The

resultoftheanalysisisanevaluationofastudent’slikelihoodofsuccessinagivenclass.Thesystem

thenrecommendsacourseofaction,suchasattendinganonlineorin‐personstudygroup.Thisplaces

OpenTextECMattheheartofanext‐generationbusinessprocessthatleveragestheadvancedanalytics

ofSAPHANAandtheabilityofSAPtousesocialmediaandmobileasengagementtools.

Theuniversityisalsoundertakingotherbusinessprocesstransformationswiththegoalofproviding

manycentralizedservicestodifferentdepartmentsandentitiesthathavetraditionallybeenhighly

decentralized.Thesetransformations–andthecontentthatiscoretotheprocesses–arehelpingto

rationalizehumanresources,finance,andotheruniversity‐wideprocesses.“IfI’mrunningthe

THEROIOFECMATAUNIVERSITY:

Replacingenrollmentdocument

flowwithonlinecontent

significantlystreamlines

enrollmentprocess.

Streamliningdocumentapproval

processforgrantsmanagement

providesfasterapprovalprocesses

andloweredcompliancerisk.

Aggregatingstudentdatafor

analysissupportsimproved

studentretentionandgraduation

rate.

OpenTextBusinessTransformation

Copyright2013EAC 8

economicsdepartment,Ishouldbetryingtomaximizetheteachingofeconomics,notmaintainingmy

ownHRorashadowaccountingsystem,”thetransformationdirectortoldEAC.

EfficiencyandContent:UsingContenttoTransformaRailroad

Drivingmoreefficientoperationswasattheheartofamajorbusinesstransformationatamajor

Europeanrailroad,whichimplementedSAPasthecoreofamodernizationefforttenyearsago.Asthe

multi‐yearmodernizationprocessprogressed,itbecameobviousthatmanagement’sefficiencygoals

couldnotbereachedwithoutusinganintegratedplatform–aboveandbeyondthatwhichwasbuilt

intoSAP–tomanagethevastquantitiesofdocumentsusedbytherailroad.

“Ourbusinessprocessesweren’tconsistent,andweneededtomovefromsilosofoperationstoavalue‐

chainapproach,”theprojectmanagertoldEAC.“Weneededtothinkofdocumentsasanimportant

asset.”

Furtherdrivingthedocumentmanagementcomponentoftherailroad’smodernizationeffortswasthe

needtocaptureasmuchaspossibleofthe“soft”knowledgeoftherailroad’sagingworkforceina

formalstructureddocumentsysteminordertoensurethattheprojectedturnoverintheworkforce

wouldnotleavetherailroadwithoutaccesstoitsinstitutionalmemory.

Thatinstitutionalknowledge,aswellasuptodateoperationalandotherinformation,wouldneedtobe

muchmoreaccessibletoawidersetofstakeholders,andthatmeantmakingitavailableontabletsand

otherdevicesthatsupportbothmobilityaswellasatouch‐screenbaseduserinterface.

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Figure2.EnterpriseContentManagementinAssetManagement

Source:SAP,OpenText

TheserequirementsledtheEuropeanrailroadto

implementSAPExtendedECMbyOpenTextasthecontent

managementcomponentofitsefficiencytransformation

project.Thisnotonlyallowstherailroadtoreduceits

overalluseofpaper‐basedmanuals,buttheECMsystem

alsoallowstherailroadtodrivegreaterefficiencytoa

widerangeofcoreprocesses,frombudgetingto

engineeringanddesign.Forexample,puttingtrouble‐

shootinginformationonatabletforitsdriverssavedall

fivethousanddriversfromluggingaround20kilosof

printeddocuments.Inallcases,havingrapidaccessto

THEROIOFECMATARAILROAD

COMPANY:

$30millionperyearinlower

printingandcopyingcosts.

Improvedefficiencythough

replacementof20kilosof

papermanualswithelectronic

versionsavailableonatablet

device.

OpenTextBusinessTransformation

Copyright2013EAC 10

coredocumentswhilestreamliningtheirusehasbeenamajorsourceofsavingsintermsoftimeand

money.“Documentshavebecomeanenablerforouremployeestoexecutetheirdailyworkinabetter

way,”saidtheprojectmanager.

Thepotentialsavingsaresignificant.SAP®DocumentPresentmentbyOpenTextaloneallowsthe

railroadtoconsolidateprintingandcopyingcoststhathavethepotentialtosavetherailroad$30million

peryear.Inaddition,therearesoftsavingsandimprovementsthatarehardertoquantify,butofequal

importancetotherailroad.Forexample,newrailroadprojects

arefrequentlyundertakenwithexternalpartners,andthe

railroadisnowabletosetupcollaborationroomswherethe

internalandexternalprojectmemberscanhaveaccesstothe

documentationthatsupportstheseprojects.

Theresulthasbeenaseachangefortherailroad,whichhas

seentheimprovementsindocumentmanagementasan

importantpartofatransformationaljourneythatisstillunder

way.“WestandardizedourERPsystemandatfirstdidn’tsee

thevalueofbusinessdocuments,”theprojectmanagersaid.

“Nowweknowthatinnovationwillcomefromenterprise

contentmanagement.”

EfficiencyandContent:ContentattheCoreofaGasUtility’sTransformation

Whilemostcompaniescometoappreciatetheroleofcontentmanagementaftertheyhaveengagedin

abusinesstransformationproject,suchastheEuropeanrailroad,somejointSAP/OpenTextcustomers

seethetransformativevalueofcontentfromtheverybeginningoftheirtransformation.Thiswasthe

caseforanaturalgasutilitycompanythatwantedtomakecontentacorecomponentofanumberof

keybusinessprocesses.Oneofthemorestrategicandcomplexprocessesforthisutilityistheeffortthat

goesintoworkingwithdeveloperstobuildlargeresidentialdevelopments.Thisprocesshastwobasic

goals:tomakesurethatthedeveloperisincentedtouseasmuchnaturalgasinthenewhomesas

possible,andtoensurethatthesedealsrunsmoothlyandwithasmuchriskmitigationaspossible,

despitethecomplexnatureofthesedeals.

Whentheutilitycompanybeganareviewofhowitsdealsaremade,severalaspectsstoodout.Thefirst

wasthatthedealprocesswasoverlycomplex–therewere17individualsteps,andlotsofplaceswhere

theprocesscouldgetderailed.Thisprocesscomplexitymeantthatittookanaverageoffivemeetings

withthedevelopertocloseadeal–withthechancesoflosingthedealincreasingwitheverysuccessive

meeting.Alsoatplaywastheenormousamountofdocumentsandothercontentthatwasneededto

getthejobdone,includingsatelliteimagery,GISdata,demographicinformationonthepeopleexpected

toliveinthenewhomes,andfinancialcalculationsrelatingtocostsandrelativerisks.

“WestandardizedourERP

systemandatfirstdidn’tsee

thevalueofbusiness

documents.Nowweknow

thatinnovationwillcome

fromenterprisecontent

management.”

—Transformationproject

manager,Europeanrailroad.

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Thesedevelopmentprojectsinvolveenormousupfrontcapitalexpendituresonthepartoftheutility

andthedeveloper,withthereturnonthoseinvestmentsatleast15yearsoutandatthemercyofa

mind‐bogglingnumberoffactors.Itwasclearthatwithsomuchatstake,theutilityneededtotransform

whatwasaninefficientandpoorlydesignedprocess.

Theutilitytookatwo‐partapproachtransformingthiskeyprocess.ThefirstwastoinstallSAPCRMin

ordertohandlewhatwaseffectivelyacustomerrelationship–thedevelopers–inamorestructured

manner.ThesecondpartwastoimplementOpenTextECMSuiteforSAPtoprovideacomprehensive

contentandinformationmanagementcomponenttothetransformedprocess.

Figure3:EnterpriseContentManagementforSales

Source:SAP,OpenText

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Copyright2013EAC 12

Thecontentcomponentitselfhadtwomajorpurposes–thefirstwastoprovideanorganizational

structureforthecontent,andthesecondwastomakeitreadilyavailabletoamobilesalesforceasthey

meetwithdeveloperstostructureadeal.Alongtheway,theutilitywasabletostreamlinehowitused

certaindocuments,suchasengineeringreportsthatwerebeingmadeaccessibletothesalesstaffasa

completedocument,whenallthatwasneededforthedealwasasummaryofthereport.“Wewere

abletoreducetheamountofinformationandprofoundlyimproveitsrelevance,”theformerCIOofthe

utilitycompanytoldEAC.

Theresultsfromthiscontent‐centricapproachhavebeentrulytransformative.Reducingtheprocess

complexityandbringingthecontentintoplayinahighlyaccessiblemannerreducedtheaveragetimeto

closefromfivedaysto1½days.Smallerdealsthatmeetspecificcriteriabuiltintotheworkflowcannow

beclosedonthespot,whilelargerdeals,andtheirsupportingdocuments,canbesentupthechainof

approvalandactedoninamatterofhours.

“Thedealiscenteredonthedocuments,”saidtheformerCIO.“Nowwehavealltheresourcestowalk

thedeveloperthroughtheprocess.Yougettomakegooddecisionsthataremoreintelligent–youcan’t

dothatwithouthavingallthatdataintheworkflowattherighttime.”

Thisandotheraspectsoftheutility’scontent‐centric

transformationhaveresultedinsignificantnewrevenuesand

savings.Therevenuesarerelativelystraightforward–more

smallerdealscangetdonewithmarkedlylowersalescosts,

andtheabilitytomorerapidlycloselargedealsprovidesboth

lowersalescostsandpotentiallyhigheroverallcontractvalues.

Othereffortshaveledtoeasily‐quantifiablesavings.

RevampingprocurementprocesseswithacombinationofSAP

andOpenTextsoftware,forexample,allowedtheutilityto

saveeightmilliondollarsperyearonstrategicsourcingcosts.

Someofthesavings,however,arehardertoquantify:Losinga

developerdeal,forexample,whichmeanshousesarebuilt

withall‐electricappliancesinsteadofamixofgasandelectric,isalossthatcannotberevisitedfora

decadeormore,ifatall,asindividualcustomersareloathetoswitchfromoneenergysourceto

another.Beingabletomovemorerapidlytocloseadealalsoprotectstheutilityfromthesekindsof

long‐termlosses.Havingabetterunderstandingoftherelativeriskofadealalsohassignificantsavings

potential,particularlyintermsofbeingabletobetterhedgeagainstrisk.Eventhoughthesavingsare

generallyhardtospecificallyquantify,thepotentialsavingscanrunintomanymillionsofdollarsfor

evenamodestlysizedutility.

THEROIOFECMATAGAS

UTILITY:

Contentandinformation

managementhelpyield

$8millionperyearin

strategicsourcingcosts.

Reduceaverageclosetime

indeveloperdealsfrom

fiveto1½days.

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RegulatoryCompliance­basedTransformation:“BePrepared.”

Amongthemanycatalystsforcontent‐basedtransformation,oneofthemostimportantistheever‐

changingregulatoryenvironment.Thecreationofnewregulationssuchasthosethatresultedfromthe

2002Sarbanes‐OxleyActisanexcellentexampleofjustthiskindofcatalyst.LikeSarbanes‐Oxley

compliance,mostregulatorycomplianceprovidesauniqueopportunitytoplacecontentmanagement

attheheartofbusinesstransformation.

FortwooftheSAP/OpenTextcustomersdiscussedabove,theoriginsofthecontent‐basedbusiness

transformationsstartedwithregulatorycompliance.Fortherailroad,Europeanregulationsrequirethat

keydocuments,suchasmaintenancerecords,beretainedandaccessibleforaperiodof40years,and

thoserecordsneedtoincludeinformationonthespecificpartsusedinrepairsandthemaintenance

workerwhodidtherepair.

Fortherailroad,andmanyothercustomers,itisnotenoughtohavethedocumentsavailable–they

needtobeinawidevarietyofformatsdependingontherequirementsoftheaudit.Inaddition,that

accessneedstobeasimmediateaspossible.Inmanyregulatedindustries,regulatorscanspecifya

specifictimewindowforthepresentationofdocuments,afterwhichsanctionscanbeimposedonthe

company.Sanctionsfordelaysindiscoveryarealsoathreatincourtcasesaswell.

Forthenaturalgasutility,Sarbanes‐Oxley’srequirementsforauditabilityprovidedonestimulusfor

contentmanagement,butotherregulationsregardingtheliabilityoftheutilityinthecaseoffiresand

otherincidentsfurthercementedtheneedforregulatory‐basedcontentmanagement.“Everytime

thereisahousefirewegetsued,”saidtheex‐CIOofthenaturalgasutility.“There’slotoflegal

discovery”forwhichtheutilityhastoprovidedocumentation.

Evencustomer‐centrictransformationslikethatoftheMidwesternutilitycompanycanhavea

regulatorycomponent,accordingtothetransformationteammember.“Ifwekeepourcustomers

happy,ithelpsourregulatoryposition,”shetoldEAC.“Beingagoodcorporatecitizenhelpsusmanage

ourregulatoryrequirements.”

Theseexamplesshowthatcontentandinformationplayanimportant,ifnotcentral,roleinbusiness

transformationacrossmultipleindustriesandfunctionalareas.Utilities,transportation,andhigher

educationarejustafewofthedomainswheretheinterplaybetweencontentandbusinessprocessesis

becomingakeyelementinbusinesstransformation.Thisinterplayisalsogermaneinregulated

industriessuchasfinancialservices,pharmaceuticalsandmedicalequipment,aswellasengineeringand

construction,manufacturing,andprofessionalservices.

Thescopeoftransformationthatcontentandinformationcansupportisbroad.Theaboveexamples

illustratehowcontentwaskeytobusinesstransformationinoperations,customerservice,planningand

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budgeting,compliance,andhumanresources,aswellasmoreindustryspecificareassuchasgrants

managementinhighereducation.

Theseexamplesarehardlytheonlyones.Otherexamplesoftheapplicabilityofcontentandinformation

tobusinesstransformationcanbefoundinassetmanagement,procurement,andlegalservices,among

others.Thekeytounderstandingwherecontentandinformationcanbepartofbusinesstransformation

istolookforprocesseswheredocumentsandcontentarekeyelementsintheinteractionsofthepeople

whohelpcreateorinfluencebusinessoutcomes.Wherethesecriteriaexist,chancesarethatcontent‐

basedbusinesstransformationcanmakeadifference.

PlanningandExecutingContent­basedBusinessTransformation

Acompanyorotherentitylookingtoplanandexecuteacontent‐basedbusinesstransformationhas

manyoptionsinhowitcanproceed.BasedonEAC’sresearchtherearefourbasicconsiderationstobear

inmindthatcanhelpensuresuccess.Theseare:

Understandtheinterplaybetweencontentandcorebusinessprocesses.

Planforandengagepeople.

Thinkstrategically,executeincrementally.

Leavethetechnologyintegrationtothevendors.

UnderstandtheInterplaybetweenContentandCoreBusinessProcesses

Thisisaprioritheobviousstartingpoint,buthowtounderstandthisinterplayisoftenlessthanobvious.

Atthenaturalgasutility,businesstransformationbeganwithan

exercisewhereeverykeybusinessprocesswasbrokendown

intoitsconstituentprocessesandthenanalyzedwithrespectto

efficiency,effectiveness,andtherolethatcontentandpeople

playintheprocess.Thisresultedinsomedramaticprocess

change,andagreaterrealizationoftherolecontentcouldplay

inimprovingthoseprocesses.

Thiskindofprocessdeconstructioncanbeashardtodoasitis

revealing–allthreeofthecustomersportrayedinthisreport

wentthroughanexerciseofthisnature,anddiscoveredan

enormousamountofinefficiencyandwastedeffort.Thisprocess

deconstructionalsorevealedhowparticularstakeholdersviewed

particularprocesssteps,whichmeantthatprocess

transformationrequirednotjustthedigitizationofcontent,for

example,butalsoawholesalerethinkingofhowcontentisused

Processtransformation

requiresnotjustthe

digitizationofcontent…

awholesalerethinkingof

howcontentisusedandby

whom.Byaddressingthese

questions–andbytackling

thecontent,people,and

processissuesatthesame

time–amuchmore

comprehensivebusiness

transformationcanbeginto

takeplace.

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andbywhom.Byaddressingthesequestions–andtacklingthecontent,people,andprocessissuesat

thesametime–amuchmorecomprehensivebusinesstransformationcouldbegintotakeplace.

PlanforandEngagePeople

Thenotionthatcontent‐basedbusinesstransformationisasmuchaboutpeopleasitisaboutcontent

andprocessisessentialinunderstandinghowtocreateasuccessfulbusinessprocesstransformation.

Thismeansunderstandingandplanningforhowpeople–customers,employees,partners,andother

stakeholders–createandusecontent.Notonlydoesthetransformationhavetoincludearethinkingof

howpeopleinteractwithcontent,italsomeansthatthosepeopleneedtobepartofthetransformation

processitself.

Thegoalistoensurethatbusinessprocesschanges–whichcanbeseenashighlydisruptiveandoften

resultinproblemswithend‐useracceptance–havethegreatestpossiblechancesforasuccessful

deployment.Thismeansthatanimportantbestpracticeistoengageandempowerinternal

stakeholdersasmuchandasearlyaspossible,andinparticular

ensurethattheyunderstandhowtheprocesschangewillenable

anetimprovementinthewaytheywork.

TothisendtheEuropeanrailroaddeliberatelystartedits

businesstransformationbylookingfor“highlyvisible”areasof

improvementthatwouldengageemployeesandhelpdriveinput

andacceptance.Theuniversitytransformationteamrunsservice

fairsandsendsoutnewsletterswithinformationonhowthe

differentaspectsofthetransformationimpactdifferent

stakeholders.AttheMidwesternutility,theCEOandCIOare

bothpersonallyinvestedinthetransformationandhaveworked

activelytocommunicatetheimportanceofthetransformation

totheiremployees.Thisabilitytostartthetransformationby

thinkingabouthowitwillimpactindividualstakeholdersandthenactivelyengagingwiththose

stakeholderstoensureacceptancecanspellthedifferencebetweenasuccessfulbusiness

transformationandanunsuccessfulone.

ThinkStrategically,ExecuteIncrementally

Theeraofbigbangimplementationsislongover,andwhiletheneedformajortransformationshasn’t

goneaway,thestateoftheartismovingtowardsamoreincremental,piece‐by‐pieceapproach.Thisis

verymuchinlinewithcurrentthinkingaboutagiledevelopmentmethodologies.Bymovingforward

withsmaller,incrementalchange,companiesareabletolimitrisk,improveuseracceptance,andbetter

managecost.Content‐basedtransformationlendsitselfwelltothismodel,andallthejoint

Animportantbestpractice

istoengageandempower

internalstakeholdersas

muchandasearlyas

possible,andinparticular

ensurethatthey

understandhowtheprocess

changewillenableanet

improvementintheway

theywork.

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SAP/OpenTextcustomersthatEACinterviewedhaveimplementedtheirsolutionsinthisway.Asnoted

above,thismethodologyhashelpedthesecustomerswiththedesignofnewbusinessprocessesand

theircontentaswelltheuptakeofthesenewmethodsandtechnologiesbytheirusers.

OpenTextECMSuiteforSAPisparticularlywell‐suitedforenablingthiskindoftransformation.The

breadthoffunctionalityprovidedbythesuiteallowstransformationteamstoenvisionafullyformed

transformationbasedonasingletechnologyplatform.TheOpenTextSuitealsolendsitselfwellto

incrementalimplementations,whichmeanstransformationteamscanimplementtheirstrategypiece

bypiece.AttheEuropeanrailroad,thisincrementalapproachhasallowedtherailroadtocarefully

constructacomprehensiveinformationarchitecturewhileprovidinganewplatformforcontent

creationandnavigationtoarapidlyincreasingnumberofusers.Similarly,attheMidwesternutility,an

incrementalapproachhasallowedittogetstartedquicklywiththebillpresentmentpartofits

transformation,whilecontinuingtosortoutthedetailsofitslargerinformationarchitecture.

LeaveTechnologyIntegrationtotheVendors

Afinalcontent‐basedbusinesstransformationbestpracticeisto“outsource”thecomplexitiesof

technologyandcontentintegrationandtransformationtovendorsthatcanprovideasmuchofthese

requirementsinan“outofthebox”manneraspossible.Sortingoutthebusinesssideofcontent‐based

transformationishardenoughformostorganizations.Sortingouttheunderlyingtechnologyissuesthat

emergeaddsanenormouslayerofcomplexitytothetransformationprocess.

Thekindsoftransformationsdescribedhereallmakebetter

useofanextremelybroadrangeofdocumentsand

informationtypes.Forcingthetransformationteamsto

acquiredetailedtechnicalknowledgeofhowtomaketheir

newprocessesworkwithanevenbroadercontentand

informationbasethaneverbefore–aswellasenablethose

newprocessestosupportanever‐changingassortmentof

inputandoutputdevices–simplyaddsalevelofcomplexity

tobusinesstransformationthathasthepotentialofmaking

itprohibitivelyexpensivetodeployandmaintain.

Leavingtheseissuestobesortedoutbysolutionsvendors

suchasSAPandOpenTextprovidesasignificantadvantage

tothejointcustomersofthecompanies.Thisadvantageis

reallytwofold–asaclosepartnerofSAP,OpenTexttakes

responsibilityforprovidingthetechnicalandfunctional

platformthatallowsSAPcustomerstoavoiddealingwith

muchoftheunderlyingcomplexityofcontent‐based

AsjointSAP/OpenText

customersmoveintonewareas

ofinnovation,suchasSAP

HANAandbigdata,mobility,

andcloud,therelationship

betweenthesetwovendors

providesaformofinnovation

insurancepolicythatallows

customerstoconsiderthe

impactofthesenew

technologieswithouthavingto

worryaboutapotential

negativeimpactontheir

content‐basedtransformation

plans.

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transformation.AndasajointSAP/OpenTextcustomer’stransformationevolves–andthat

transformation’sunderlyingprocessesandcontentelementsevolve–OpenTextisabletosupportnew

technologicalrequirementswhileminimizingtheirimpactonnewandexistingbusinessprocesses.

ThiscapabilityisindeedthecorevalueoftherelationshipbetweenSAPandOpenText,andthe

continuedimportanceoftherelationshipisborneoutinEAC’sinterviewswithcustomersaswellasits

reviewofthetechnologyandservicesprovidedundertheaegisofthetwocompany’spartnership.

Asthesecustomersmoveintonewareasofinnovation,suchasSAPHANAandbigdata,mobility,and

cloud,therelationshipbetweenthesetwovendorsprovidesaformofinnovationinsurancepolicythat

allowsSAPcustomerstoconsidertheimpactofthesenewtechnologieswithouthavingtoworryabouta

potentialnegativeimpactontheircontent‐basedtransformationplans.

Conclusion:StrategicVisionandContent­basedTransformation

Theexamplescitedinthisreportarenotnecessarilytypicalofhowcompaniesapproachbusiness

transformation.Thisabilitytounderstandtherolethatcontentandinformationcanplayinstrategic

businesstransformationisstillrelativelyexceptional.Thisisdueinparttothefactthatstrategicvision

regardingcontentandinformation,ifitexistsatall,isscatteredamongdifferentfunctionalsilosinthe

enterprise:legaldepartmentshavedifferentrequirementsandadifferentstrategicvisionforcontent

thanthevicepresidentofcustomerservice,andtheCFO’srequirementsdon’tnecessarilysynchupwith

thoseofthechiefprocurementofficer,forexample.Theresultisabusinessenvironmentthatisoften

devoidofamandateforstrategicvision,muchlessanexecutivewiththepowertoimplementone.

Addingtothecompartmentalizationofcontentandinformation‐relatedstrategiesarethesilosof

technologythatoftenexacerbatethesepotentiallyconflictingpointsofview.Thelackofenterprise‐

widestrategicvisionhasledtoatechnologyacquisitionstrategythathasaddedtothecomplexityof

contentandinformationprocesses.Inmanyenterprisesthislackofstandardizationmakesthe

implementationofastrategicvisiondoublyhard:Addingsignificanttechnologicalbarrierstothealready

dauntingbusinessbarriersthatconfrontanymajortransformationlooksverymuchlikeaprescription

forfailure.

ThecloserelationshipbetweenOpenTextandSAP–OpenTextECMSuiteforSAPisoneofthefew

solutionsbrandedandresoldbySAP–isamajorreasonwhythejointcustomersfeaturedinthisreport

havebeenabletothinkstrategicallyaboutcontent‐centricbusinesstransformation.Whileevery

companyneedstodealwiththequestionofstrategicvisionandleadership,havingatechnology

solutionthatisabletoeliminatesilosofcontentandinformationmanagementandprovideasingle

platformonwhichtobaseastrategicvisionisakeyadvantageforSAP/OpenTextcustomers.

ThepartnershipbetweenthetwocompaniesalsomeansthatSAPcustomerscantakeacorestrengthof

SAP–theabilitytomanage,atabest‐practiceslevel,industry‐specifictransactionsanddatawithinthe

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SAPenvironment–andextendthattothenon‐SAPcontentmanagementintheenterprise.Inaddition,

thispartnershipallowscustomerstodelivertheuserexperienceneededtobothcreateandconsume

thatcontenttothemobileusers,whethertheyarestudentsatauniversitylookingforastudygroupor

engineerslookingforamanualtoservicealocomotive.

Perhapsmostimportantly,thispartnershipallowscompaniestoplanforthelong‐termstrategywhile

implementingthatvisionincrementally.Thisgoesalongwaytosupportingtherealitythatmost

companiesfacewhenlookingatlong‐termtransformationalchange.Takinganincrementalapproach

allowsformorecarefulplanning,isbetterforuseracceptance,lowersfinancialrisk,andallows

transformationtobetrulytransformativewithoutbeingdestructive.

Whetherthebusinesstransformationiscomplexandresource‐consumingorrelativelystraightforward,

whenitcomestocontent‐basedtransformationintheSAPcustomerbase,usingOpenTextECMSuite

forSAPasthetechnologicalandfunctionalfoundationoftransformationprovidesasolidfoundationfor

strategicchangeinanarea–contentandinformationmanagement–thatwillonlygrowinimportance

overtime.