Business and IT: How do you see IT?
Digital Transformation has completely reshaped the way Business and IT interact – the Business both utilizes and sees IT very differently now. The emphasis on end-user experiences and new technologies like IOT has redefined the way products and services are being funded, developed, and delivered to the market.
An impossible act? Keeping the lights on – and moving into the spotlight
In 2018, Gartner, Inc. found that 47% of CEOs are challenging their boards to deliver Digital Transformation. While the CIO and IT function have a critical role to play here, analysis shows that between 50-70% of IT budget is tied up in just “keeping the lights on”. They also predict that by 2022, 60% of application management service RFPs will include a requirement to support clients’ digital and innovation agenda beyond cost savings.
What’s more, in our recent joint-published report with Everest Group, Applications Transformation for the Digital Age, we found only 20% of enterprises believe that application services have helped them gain access to new sales and delivery channels. While just 16% felt that application services have contributed to reducing time to market.
These increased demands and the paradigm shift driven by Digital Transformation can leave many IT professionals feeling overwhelmed – especially as IT begins to operate in a more unconventional manner – both in terms of its services and operating models.
Navigating a brownfield jungle full of dinosaurs
Every large organization has its dinosaurs – huge systems running big chunks of business transactions. They impede your speed and innovation efforts, while tying up costs and inhibiting value delivery. However, there’s still pressure on you to deliver all of your services in the same way, with a demand for unifying processes, while making them thinner and more agile.
A small price for a big headache: Fractional structures and Mergers & Acquisitions
Complicated, fractional vendor support structures can really stand in your way here as well. These complex structures usually stem from the fact that while technology and environments have changed, procurement has not adapted accordingly. While IT teams are talking about upgrading skills here, procurement teams don’t share their enthusiasm.
In ADM deals, pricing often becomes the core focus within contracts. Furthermore, unconventional contracts may not match with the needs of handling modern technologies, new ways of doing business, or delivering IT services. Organizations with a price-driven focus look to secure the cheapest price from a host of different vendors providing varied services. Many times, these vendors are not committed to helping their customers with the whole transformation. They’re solely motivated to look after the piece they are responsible for, or merely just focus on business as usual. And like a relay team, one slow or intractable vendor can really pull your operations down. Mergers & Acquisitions can compound things further – one major side effect is duplicated functionalities. You can end up paying twice for same thing – and the more spread out your organization is across geographies can amplify this considerably.
In response to this, I see many players seeking out a partner who can offer them one consolidated solution – a value chain that enables them to extract maximum value from their IT estates. They want a business savvy partner who can see the big picture – a problem solver rather than strictly a delivery partner.
Business and IT together: Holistic, business-focused application management
I’ve helped many of my clients eagerly embark on a business-focused application management approach that worked to transform their IT-centric capabilities into insight-driven and business-centric enablers. This really seems to be the magic formula for value extraction. It enables their IT to better understand their current blueprint and spot inefficiencies and errors in current processes. As suppliers, this approach helps us avoid focusing blindly on manual, repetitive, and time-consuming tasks for simplification or automation by ignoring the full chain of processes on which these are embedded.
They’re also able to extract fact-based insights to better decide how much of the new burden they want to address – and to what extent. They can challenge the business in improving its processes, highlighting what needs to change, and where it would be best to stick to the basics.
New approaches require new measures
I’ve seen first-hand how focusing on business expectations and outcomes always helps us to make our clients successful. With this approach, performance and efficiency of end-to-end business processes take the front seat, while availability of applications and infrastructure play a more dominant role. Delivery of expected business benefits is now the measure for change, in addition to delivery on-time.
To deliver this successfully, within Capgemini’s ADMnext offering, we created our Business Command Center (BCC), a dedicated service that brings in strategic attention to the complete business value chain.
BCC also provides a constant feed for transformation, with the business blueprint evolving from a thorough understanding of the business processes. This enables our clients to keep up with the complexity and increased pace of change demanded by Digital Transformation, whilst at the same time helping reduce legacy IT constraints like mushroomed customizations without adequate documentation.
BCC: Performance, efficiency, competitiveness, business insights
With BCC, we’re ultimately able to improve business process performance, efficiency, and competitiveness. And with the application of analytics, BCC also provides key business insights. Its capability to create the business blueprint greatly helps decision making and speed of transformation.
Contact me here to learn more about BCC and how we can help you implement and reap all the benefits of a business-focused application management strategy.