trends&strategiesinservices globalizaon/oﬀshoring · digital is changing the world the...

© 2017 Copyright Tholons. All rights reserved.

Intelligent Enterprise

Pla/orm Revolu5on

Intelligent Automa5on

Digital Physical Blur

Architec5ng Resilience

Digital Trust

Ac5ve Defense Trends & Strategies in Services

Globaliza5on / Offshoring

BUSINESS EXPERIENCE Uruguay 2017

March 2017

2 © 2017 Copyright Tholons Inc. All rights reserved.

Trends in Global Offshoring

Intelligent Automation drives cost

savings

Cloud Technology

allows greater

scalability

Significant move from traditional

offshoring to Captives


Tholons Services Globalization Index 2017

!  Open Innovation Ecosystem

!  Start-ups, Diversity & Maturity

!  Innovation Policy and Incentives

!  Unicorns

!  Labour Pool !  Skills Availability !  Graduate Output !  Complexity

!  Cost of Operations !  Cost of Training !  Cost of Real Estate !  Cost of Bandwidth !  Cost of Living !  Cost of other

Infrastructure

!  Political Risk !  Social Risk !  Natural Risk !  Commercial Risk !  Social Infrastructure

(Hospital, Educational Institute etc.)

!  Non-work Culture !  Availability of

Recreation/Leisure Facility

!  Government Benefits / Incentives

!  Competitive Landscape

!  Untapped Labour Pool

!  Employment Profile

!  Connectivity !  Bandwidth

Availability !  Transportation

Innovation/ Digital

Talent, Skills & Quality

Cost Risk & Quality of Life

Business Catalyst

Infrastructure

Digital Transformation

Skills and Scalability

Savings Business Environment

Risk to Business Operational Environment


Digital Nations: Tholons Services Globalization Index 2017

THOLONS TOP 10 COUNTRIES THOLONS TOP 5 DIGITAL NATIONS

Rank Countries

1 India

2 China

3 Philippines

4 Brazil

5 Mexico

6 Canada

7 Chile

8 Vietnam

9 Poland

10 Russia

1   ISRAEL

2   CANADA

3   SINGAPORE

4   INDIA

5   BRAZIL


Super Cities: Tholons Services Globalization Index 2017

THOLONS TOP 10 CITIES THOLONS TOP 10 SUPER CITITES - DIGITAL

1.  TEL AVIV -‐ Israel

2.  SAO PAULO -‐ Brazil

3.  BANGALORE -‐ India

4.  MUMBAI -‐ India

5.  SEOUL – South Korea

6.  SINGAPORE – Singapore

7.  VANCOUVER – Canada

8.  DELHI (NCR) – India

9.  SHANGHAI – China

10.  TORONTO -‐ Canada

Rank Cities Country

1 Bangalore India

2 Mumbai India

3 Delhi (NCR) India

4 Manila (NCR) Philippines

5 Hyderabad India

6 Sao Paulo Brazil

7 Dublin Ireland

8 Krakow Poland

9 Shanghai China

10 Chennai India


Global IT-BPM Sourcing Market of ~US$183 Billion in 2015

Global Services Offshoring Landscape

~US$12B

US$122B

~US$21B

US$~12B

US$~16B

Source: NASSCOM 2015, IBPAP 2015, IDB, Tholons Research and Estimates 2015

* India, Philippines, and China comprise ~70% of the total offshore IT-BPM revenues.

Market upside is immense

$183B à $830B

The question is NOT about global

market demand, but rather about

domestic supply & long-term

sustainability!


Digital Age is here!

PEOPLE ONLINE

PEOPLE ON SOCIAL MEDIA

PEOPLE ON PHONE

GLOBAL MOBILE SUBSCRIPTIONS

FACEBOOK USERS

VALUE OF WORK PERFORMED VIA ONLINE LABOR PLATFORMS LIKE ELANCE AND ODESK BY 2018

3.5B

2.8B

7B

6.5B

1.6B

5B


Digital is Changing the World

The wearable devices market will grow from $1.4 billion this year to $19 billion by 2018

Reviews and WoM are increasing their influence on consumer trust (3-5X more than TV/Radio Ads)

4 of the 5 top global brands are digital at the core (Apple, Google, IBM & Microsoft)

98% of consumers move sequentially between screens & devices to complete a task

80% of consumers are more likely to recommend a brand that offers a simpler experience

Amazon and eBay are the only pure retailers on the list of the top 100 brands

Sources: Accenture, Interbrand, Juniper Research, Google, Jack Morton


The Digital Disruption and Opportunity!

Source: Cisco white paper “Embracing the Internet of Everything To Capture Your Share of $14.4 Trillion”

Customer Experience

Asset Utilization

Employee Productivity

Supply Chain and Logistics

Innovation

$3.7

$2.5

$2.5

$2.7

$3.0

US$14.4 Trillion

2013 2022 This is the combination of increased

revenues and lower costs that is created or will migrate among

companies and industries from 2013 to 2022, due to Digital Technologies.

Industries will be disrupted to the amount of:

What are the major trends in Digital impacting your firm, that Captives need to address? 1 What capabilities should Captives build to support “Digital Business” ambition? 2 How can Captives accelerate innovation leveraging talent & tapping into external ecosystem partners in Uruguay and Beyond?

3

Digital opens up $14.4 Trillion dollar opportunity Key implications for GIC leaders


Journey of High Growth Captives: Being a Leader!

VALUE

EFFICIENCY

TYPE OF RELATIONSHIP

Strategic growth partner

Parent – GIC (growth enabler)

On-shore/Off-shore (cost saver)


Digital is Disrupting and Transforming Businesses

Source: Accenture 2015

Markets Segmented by Customer Experiences B2C

Markets Driven by Insights and Connected Industry B2B

Shopping Producing Learning Staying Healthy Traveling Paying

Smart Factories

Connected Supply Chains

Smart PLM

Intelligent Infrastructure

Intelligent Services


Key Technology and Business Trends 2016 – 2020

Cloud Business of

Apps

Create Digital

Network at Scale

Internet of Me

Design for Analy5cs to Get the “Right” Data

Take Advantage of Data “Velocity”

Data Supply Chain

Intelligent Enterprise

Platform Revolution

Intelligent Automation

Digital Physical

Blur

Liquid Workforces

Workforce Reimagined

From Workforce to Crowd Source

Architecting Resilience

Digital Trust

Active Defens

e


Challenges of Building Robust Digital Business Models

Digitize Channels

Digitize Processes

Digitize Business Models

Digital Front Office Digitizing marketing, sales and service delivers revenue gains

Digital Back Office Digitizing operations delivers efficiency and productivity gains

Internal Focus: Employee Engagement

External Focus: C

ustomer E

xperience

Digital Business Profitable growth is achieved through a fully digitalized business model across the entire enterprise

Business Strategy Function Strategy Technology Strategy


Captives: “Disrupt” by Driving Strategic Imperatives!

Time

Bus

ines

s B

enef

its

Defend Establish digital channel Meet market expectations Stem loss from digital competitors

Differentiate Build a fully differentiated digital business model

Disrupt Reimagine the business to deliver wow customer experience

Business Imperative

Technology Imperative

Functional Imperative

•  Where are the new digitally defined markets •  How do we reinvent ourselves and the industry

to serve this new market?

•  Develop architectures and solutions to anchor and develop a disruptive business model

•  Define management, governance and organizational systems for a business model that changes the terms of industry competition


Captives / Service Provider in Digital Economy

Digital Services

!  Socialmedia, Interactive,

Analytics / Big Data, Mobility

and Cloud

!  Most have Digital as a

separate business unit

!  Investments

- Acquisition, Innovation hubs

and Open Innovation Platform

!  Liquid, Intelligent

(comprehend, act and learn)

and Connected Applications

!  Industrialization

!  Technology / Industry Assets

!  Intelligent Tools & Innovation

Intelligent Tooling Using Application


New Generation of Digital Talent Management

Attracting differently - Innovation Jockeys, Digital Workshops, Hackathons Training rapidly - Learning Boards, POD-based learning Engaging continuously - Contests, Communications, Boards Talent Profile - 10% digital capability (vs total headcount), re-skilling and strategic lateral (creative) hire - Compensation for Mobility, Social and Analytics is 10 to 25% higher than traditional services Workforce Strategy - Utilization is lower for digital (65% vs 80%) Delivery Model - Onsite delivery headcount is higher by 10%

Managing Digital Talent


Intelligent Sourcing, Mobility Enabled Employees and Extended Workforce

Job / Candidate Search

Interviews

Competency / Fit Assessment

Mobile Onboarding, Learning & Engagement

Time, Leave & Expense Management


Unleash your Full Digital Potential!

Engage Explore Act

Digital “Way of Life”

1 Digital - What is it?

2 Design Thinking – Work like a Startup!

3 Design Strategy – Reimagining!

4 Human Computer Interaction

5 Interaction Design

6 Measuring User Experience

7 Designing for Devices

8 Cross Channel Design

9 Emotional Design: How to make products people will love

10 Psychology for Digital Behavior Change


Digital Transformation and Open Innovation Platform

Fin-

Tech

Edu-Tech Industrial Manufacturing

Health-Tech

Digital Services Platform

Proof of Concept

Pilot

Investment

Client Win

M&A

Startups

Accelerators

VCs & CVCs

Angels

Incubators

Corporate Accelerators

Universities/Government

Ar5ficial Intelligence

Industry Innovation Platform Clients


Tholons Global Digital / Innovation Network

GLOBAL NETWORK OF

STARTUPS

CIRCLE OF MENTORS

PLATFORM BUILDERS FUNDING

STRATEGIC PARTNERS

GO TO MARKET CLIENTS

Client Partners

1100 1200

1050 500

Mentors with big corporation and entrepreneurship experience


Wealth Management Accelerator

START-UPS Mentors

SI / Platform Builder

Client Partners

Host

Startup Partners

SI Partners

ACCELERATOR

FUND STRATEGIC PARTNERS

Clients $3M


$1M

Tech Investor $1M

Total: $5M

CLIENT

Investment Assistance

Retirement

Cash Flow

Tax / Accounting

Investment Assistance

Retirement

Cash Flow

Tax / Accounting

Cyber Security

Lending

Cyber Security

Lending

Mentors with big corporation and entrepreneurship expereince


Diabetes Management Accelerator D

isea

se

Dia

gnos

is Diagnosis

Monitoring

Treatment / Complica5ons

Pa5ent Educa5on & Self-‐care

New Therapeu5c Modali5es

Dis

ease

M

anag

emen

t


Manufacturing and IOT Accelerator

CLIENTS START-‐UPS MENTORS SI

ACCELERATOR

Startups

FUND

STRATEGIC PARTNERS

Clients $3M


$1M

Tech Investor $1M

Total: $5M

Client Partners

Host

Startup Partners

SI Partners

Mentors with big corporation and entrepreneurship expereince


Potential Opportunities from Digital

Talent Management Startup Partnership Vendor Collaboration Cloud-based Management

Access to new ideas and talent pool, acceleration of

technology can help captive centers increase agility

Developing specialized in-house training

programs and industry accelerators to

inculcate specific digital skills and solutions

Partnering with specialized technology vendors and traditional

service providers for more ready access to talent and technology.

Working on the cloud increases collaboration benefits within captive

firms (GIC)

Contact

Avinash Vashistha Chairman & CEO

[email protected] [email protected]

M: +1-646-250-3828 | +1-646-875-4945

North America

Suite 205, 46 W. Julian Street San Jose, CA 95110

415 Madison Avenue, 14th Floor

New York, NY 10017 USA

Europe

2505 The Landmark West Tower 22 Marsh Wall, London

E14 9AL United kingdom

India

346, 17th Cross HIG / Dollars Colony Bangalore 560 094

Singapore

120, Lower Delta Road #05-14, Cendex Centre

Singapore 169 208

Philippines

Unit 803, Richmonde Plaza 21 San Miguel Avenue, Ortigas Center,

Pasig City 1600, Metro Manila,

Philippines

South America

Luis Bonavita 1294 Of. 216 11300 Montevideo

Uruguay


Five Pillar Strategy Built on an Open Innovation Platform

Investment

Invest with inside

knowledge; reap enormous

rewards building digital platforms with

successful B2B start-ups

Startup Por/olio

Critical mass of high quality B2B

start-ups will help build

solutions and enable digital transformation

Corporate Customers

Critical mass of marque

corporations engaged in the leading

open innovation

platform with best of breed B2B startups

Strategy/ Consul5ng

Provide Strategy and Consulting to start-ups and client to align solution and

digital transfor-mation

SI / Digital Partner

A Systems Integration /

Digital Partner to implement,

scale and maintain large

client enterprise solutions

Open Innovation Platform (Where Magic Happens!)


CXO Connect

Media & Entertainment Financial Services Healthcare CRE

Manufacturing / IoT Energy Cyber Security Others

100 100 100 100

100 50 50 200


Emerging Technology (Innovative Startups)

Manufacturing / IoT Construc5on & CRE Fin-‐Tech

1200 250 1100

Pillar Technologies

Cyber Security Energy Media & Entertainment Digital Health

1150 500 300 400


Partners

STRATEGIC PARTNER SI PARTNER ACCELERATOR


Venture Capital Firms in Services Globalization

Healthcare

Media & Entertainment

Construction & CRE Cyber Security

Media & Entertainment Energy

Finance


Digital, Open Innovation, Entrepreneurship…

Implementation of a Startup / Innovation Platform for Uruguay:

!  Uruguay should orient the connecting startup program for open innovation, where Venture Capital (VC), Angels, Accelerators, Industry, Startups and Universities come together

!  Run a competition to select 5 start-ups which are focused on biggest opportunities and key challenges of the industry (B2B)

!  These 5 start-up go to the silicon valley for three months and they will be based out of one of the technology plug and play accelerators where there are already other countries, other startups, other corporates in that ecosystem

In our recent discussion with industry & government stakeholders, there seems to be a significant interest and alignment to implement such a program. Estimated Cost: $500K - $1M


Country Ranking Framework

Component Weightage

Workforce Population 20%

Super Cities 20%

Innovation / Digital 18%

Talent, Skills & Quality 12%

Cost 12%

Risk & Quality of Life 6%

Business Catalyst 6%

Infrastructure 6%

Component Weightage

Number of Startups 30%

Open Innovation Ecosystem 20%

Startup Diversity & Maturity 20%

Innovation Policy / Incentives 20%

Unicorns 10%

OVERALL DIGITAL


City Ranking Framework

Component Weightage

Innovation / Digital 20%

Talent, Skills & Quality 20%

Cost 16%

Risk & Quality of Life 16%

Business Catalyst 16%

Infrastructure 12%

Component Weightage

Number of Startups 30%

Open Innovation Ecosystem 20%

Startup Diversity & Maturity 20%

Innovation Policy / Incentives 20%

Unicorns 10%

OVERALL DIGITAL

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