hfs webinar slides: becoming an intelligent oneoffice

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

[email protected]

Phil Fersht, Founder, CEO and Analyst, HfS Research

Proprietary│Page4

About HfS, The Services Research Company


Unbridled Opinion… Simply Calling It How It Is

www.horsesforsources.com


…With a More Serious Side Too! www.hfsresearch.com


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”


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


Senior Management Driving Customer First ThinkingPleaseindicatewhetheryouagreeordisagreewiththefollowingstatementsaboutYOURIntelligentOperationsmind-settoday


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


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


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


Overhalfofuppermanagement(56%)wantchangewithin2years


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


Our Webcast Panelists Today…

RobinGordonChiefDataOfficerCoreLogic

JasonBarkhamVP,BusinessTransformationSolutionsWarnerBros.Entertainment

RobertBrownAVP,CenterfortheFutureofWorkCognizant

VipulKhannaEVP&GlobalHead- BPSCognizant

JamieSnowdonEVP,ResearchOperationsHfS Research

Proprietary│Page17

The Intelligent Operations Study


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


DownloadNow!


Are we ready for intelligent operations?


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


How do you see the disconnect between management layers?


Management Layers Are Asking Different Questions

SeniorManagers

Moreoptimisticaboutleveragingtechnologyforoperations(32%stronglyagree)Wanttomovetoanas-a-servicestyleprovider toachieveoperationalgoalsViewintelligentoperationsaswaytorethinkwork&achievebusinesschange(58%)

MiddleManagers

Lessoptimisticabouttechnologyandoperations(18%stronglyagree)Wantachangeagentto achievetheiroperationgoalsViewgreatercollaborationasthewaytoachievechange(57%)


How can we create engaging careers?


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:


Top skills in 2020 shift to critical thinking, creativity and Emotional Intelligence…


Maturity of Intelligent Operations – Do We Share These Goals?


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


What is getting in the way of Intelligent

Operations?


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+


SeniormanagersworryaboutlackofIT/BUco-ordinationandcurrentagreementslackof

flexibility

Whoisthebrokerofcapabilityinyourorganization?

Seniormanagersarelookingforhelpmakingtheirvisionareality


Do we “fail fast” or “learn incrementally”

with OneOffice?


PerverseInfiniteMonkeys


What has to change to make this a reality? (In technology, enterprise

behavior, the market overall, the economy)


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


Whatarethetop3obstaclestoyourfirmachievingmoreintelligentoperations?[Picktop3.]

Seniormanagersarelookingforhelpmakingtheirvisionareality

Someoneneedstobethebrokerofcapabilitytohelp

deliveronvision


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


SeniormanagementmuchmoreaggressiveabouttimingforthemovetoIntelligentOpsforcoreenterprisefunctions,with56%sayingitmustbewithinthenext2years—only43%ofVPandBelow

agreethatisrealistic.


Questions?


Appendix

Proprietary│Page38

About The Survey


About the Survey: Industry GroupingsPleasespecifyyourcompany'sindustry

Source: Source: “Intelligent Operations" Study, HfS Research 2016Sample: Enterprise Buyers = 371


About the Survey: Company Size Groupings UsedWhatareyourcompany'sannualrevenues?(inU.S.dollars)



About the Survey: Title Function GroupingsWhat(job)titlebestdescribesyou?
