getting ‘more bang for the buck’ in analytics services · 2020. 6. 14. · researching the...
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Researching the As-a-Service Economy
Getting ‘More Bang For The Buck’ In Analytics Services
22nd May, 2015
Phil Fersht
President & CEO,
HfS Research
Reetika Joshi,
Research Director, Consumer-Driven
Operations & Analytics Strategies
HfS Research
Drew Miller
Executive Director, Marketing Transformation,
Dell
James Kielar
Global Spend & Visibility,
Johnson & Johnson
Anand Swaminathan
Global Head - Analytics,
Infosys
Sankar Narayanan
Vice President,
Fractal Analytics
© 2015 HfS Research Ltd. Proprietary │Page 2
Let’s Meet Our Cast of Characters For Today
© 2015 HfS Research Ltd. Proprietary │Page 3
Phil Fersht
President and CEO, HfS Research – Cambridge, MA
Overview
• 20 years’ business experience in the global IT and business process outsourcing and shared services industry
• Industry analyst, author, speaker, strategist, and blogger • Advised on 100s of global IT services, BPO, and shared services engagements • Facilitates the largest global network of enterprise services ad operations professionals
Previous Experience
• Practice Lead, IT Services & BPO Research, Gartner, Inc. • Global BPO Marketplace Leader, Deloitte Consulting • Consulting Practice Lead, IDC Asia/Pacific • IT Markets Practice Lead, IDC Europe
Education
• BS with Honors in European Business & Technology, Coventry University, United Kingdom
• Diplôme Universitaire de Technologie in Business & Technology from the University of Grenoble, France
© 2015 HfS Research Ltd. Proprietary │Page 4
Unbridled Opinion… Simply Calling It How It Is
www.horsesforsources.com
© 2015 HfS Research Ltd. Proprietary │Page 5
…With a More Serious Side Too! www.hfsresearch.com
© 2015 HfS Research Ltd. Proprietary │Page 6
We Are Looking At This “As a Service Economy” With A
Unique Approach We Call Research 2.0
Major Media Platform and
Blog
Real-time data from 1000’s of
industry stakeholders
Real Unvarnished Community
Dialog
Blueprint Market
Analyses
Buyer-led Working Summits
Strategy, Advisory, Training
© 2015 HfS Research Ltd. Proprietary │Page 7
Q1 2015 (1)
Progressive F&A (Feb)
Q2 2015 (8)
Analytics Services (April)
Application Testing (April)
Enterprise Mobility (April)
Population Health (April)
Workday
Services (April)
Procurement (May)
Engineering Services (June)
Insurance As A Service (June)
2015 HfS Research Blueprint Publication Schedule
Q3 2015 (7)
Health Payer Services (July)
Cloud Service Brokers (Aug)
Application Management (Sept)
As-a-Service Economy Experts (Sept)
Customer Experience Management (Sept)
IoT (Sept)
Salesforce Services(Sept)
Q4 2015 (7)
Autonomics (Dec)
Capital Markets (Dec)
Life Sciences (Dec)
Marketing Operations (Dec)
SAP Services (Dec)
SAP SuccessFactors (Dec)
Supply Chain Management Services (Dec)
This plan is subject to change
© 2015 HfS Research Ltd. Proprietary │Page 8
Making the same mistakes over and over
and expecting different outcomes…
How would you describe the last two
decades of Sourcing?
© 2015 HfS Research Ltd. Proprietary │Page 9
Technologies to Augment Knowledge Labor Digitization & Robotic Automation
Analytics Mobility Social Media Cognitive Computing
The Optimum Operating Model
Outsourcing Shared Services GBS BPaaS/SaaS/IaaS
Crowdsourcing
A Burning Platform for Change Globalization of Labor High-growth
Emerging Markets Disruptive
Business Models Consumerization
Empowering Talent to Make it Possible
Service Governance Defining Outcomes Creativity Data Science
Welcome to the As-a-Service Economy
Tools/Infrastructure Governance
Agility Collaboration One-to-Many Outcome Focus
Plug-and-Play Services
© 2015 HfS Research Ltd. Proprietary │Page 10
Source: HfS Research in Conjunction with KPMG Note: n=343
38%
36%
35%
27%
40%
47%
42%
42%
48%
45%
52%
38%
37%
46%
46%
9%
12%
13%
33%
21%
14%
21%
23%
18%
22%
21%
35%
42%
37%
39%
53%
52%
51%
40%
39%
39%
37%
35%
34%
33%
27%
27%
21%
17%
15%
Sales
Analytics
Marketing
Payroll
Legal
Procurement
Supply Chain and Logistics
Industry-specific Processes
Human Resources
Customer Service
Finance and Accounting
Facilities Management
Print & Mail Operations
IT application maintenance & development
IT and Network infrastructure support
Shared Services Outsourced In-house (de centralized)
Outsourcing still augments inhouse delivery, as
opposed to replacing it…
© 2015 HfS Research Ltd. Proprietary │Page 11
Something’s Gotta Give: Leadership expects to get to As-a-
Service… their staff do not
53%
42%
42%
37%
32%
32%
26%
21%
21%
21%
12%
15%
14%
16%
19%
14%
Business Cloud
Intelligent Data
Write Off Legacy
Design Thinking
Proactive Intelligence
Brokers of Capability
Intelligent Automation
Intelligent Engagement
% Significant Progress
SVP & Up
VP & Below
Based on your CURRENT investments and services relationships, how much progress do you expect to make achieving these “As-a-Service” ideals in the next 2 years?
Source: "Ideals of As-a-Services" Study, HfS Research 2015
Sample: Enterprise Service Buyers = 178
© 2015 HfS Research Ltd. Proprietary │Page 12
4%
3%
2%
36%
26%
27%
43%
32%
54%
11%
19%
15%
7%
19%
2%
<$1B
$1B - $10B
>$10B
We are already there Within 2 years Within 5 years Within 10 years Never
While 7 out of 10 major enterprises are kicking the can
down the road… How quickly will your core enterprise processes be delivered “As-a-Service”?
Source: "Ideals of As-a-Services" Study, HfS Research 2015
Sample: Enterprise Service Buyers = 178
© 2015 HfS Research Ltd. Proprietary │Page 13
Two-Thirds of Enterprises Lack “As-a-Service”
Skills…
Source: HfS Research State of Industry Study 2014, conducted in conjunction with KPMG (Sample 312 Enterprises)
© 2015 HfS Research Ltd. Proprietary │Page 14
How is technology impacting your decision to pursue a long-term career in outsourcing?
Technology having a highly positive impact on
outsourcing careers…
Positively – Technology has raised the value and of Outsourcing as long-term sustainable career
Neutral – It hasn't really changed my decision-making
Negatively – I am concerned that outsourcing jobs will be automated in the future and will go away
41%
73%
55%
21%
3%
6%
Buyers
Providers
Source: ”Talent in BPO" Study, HfS Research 2015
Sample: Enterprise Service Buyers = 192; Service Providers = 252
© 2015 HfS Research Ltd. Proprietary │Page 15
The skills to get us to the As-a-Service Economy will take
time to develop…
Legacy Outsourcing As-a-Service Economy
< 3 years
Influencing senior executives
Use of automation as first building blocks to decouple labor from routine service delivery
3 – 6 years
Real-time Analytics Modeling
Automation
Defining & impacting value beyond cost
Design Thinking
> 6 Years
Augmenting Labor with Artificial Intelligence
Identifying new ways to drive cost reduction & value
© 2015 HfS Research Ltd. Proprietary │Page 16
Panel Discussion
Phil Fersht President & CEO,
HfS Research
Reetika Joshi Research Director,
HfS Research
Drew Miller Executive Director, Marketing Transformation,
Dell
James Kielar IT Manager - Global Spend & Visibility,
Johnson & Johnson
Anand Swaminathan Global Head - Analytics,
Infosys
Sankar Narayanan Vice President,
Fractal Analytics
Key Themes
Key challenges for enterprises in analytics adoption – and how to overcome them
Leveraging internal and external expertise to create an analytics services infrastructure
Forging collaborative relationships to drive analytics innovation
Critical success factors for the analytics services provider of the future
© 2015 HfS Research Ltd. Proprietary │Page 17
Overview
• Tracks the BPO and Analytics services markets with a special research interest in verticalized BPO trends.
• Regularly contributes to HfS’ research content in the form of reports, rapid insights and blog posts.
• Supports custom research and strategy projects; analyzing data, supporting client inquiry, conducting regular discussions and briefings with both buyers and providers, providing consultative, analytical and expert support to HfS clients.
• Conducts Blueprint reports on service providers across service areas in global sourcing.
Previous Experience
• Project Manager at the sourcing research wing of business research and consulting firm ValueNotes, encompassing a range of responsibilities including research product design and development for the outsourcing community, managing custom research engagements, developing thought leadership through targeted content and community interaction, and supporting the business development team.
• Research assignments across global sourcing including niche BPO and KPO areas such as analytics, medical transcription, market research and e-learning.
• Served clients through bespoke research engagements including in-depth competitive intelligence studies, market and investment opportunity assessments, demand-side surveys and marketing communication optimization for outsourcing buyers, providers, consultants and investors.
Education
• Reetika holds a Bachelor’s in Business Administration degree from Symbiosis International University, India and a Master’s in Marketing Management degree with Beta Gamma Sigma honours from Aston University, UK.
Reetika Joshi Research Director, BPO & Analytics Strategies, HfS Research – Cambridge, MA
© 2015 HfS Research Ltd. Proprietary │Page 18
ENTERPRISE ANALYTICS SERVICES VALUE CHAIN
HfS Definition of Enterprise Analytics Services
In-Scope For This Discussion
Analytics Software, Infrastructure Design, and Maintenance
Analytics Data Preparation and Management
Routine BI Reporting and Dashboarding
Advanced Analytics Modeling And Ongoing Decision Support
Analytics Consulting
© 2015 HfS Research Ltd. Proprietary │Page 19
Q. What role can each of the following emerging technologies play in improving the outcomes of your current and future outsourcing engagement(s)?
Source: HfS Research 2014. Note: n=189 Enterprise BPO Clients
12%
25%
30%
47%
49%
24%
29%
31%
29%
33%
24%
31%
28%
17%
13%
24%
9%
7%
4%
3%
16%
6%
4%
3%
2%
Social
Mobile
Cloud
Automation
Analytics
5. It is a critical component 4 3 2 1. None - no value in it for BPO
Impact of Technology in Business Processes
© 2015 HfS Research Ltd. Proprietary │Page 20
Key Analytics Challenges For Services Buyers in 2015
Lack of enterprise-wide strategy for services
Complex big data and analytics technology landscape
Lack of collaboration between IT and business
© 2015 HfS Research Ltd. Proprietary │Page 21
Analytics Services Trends Compared to 2013 Blueprint
Comparatively Moving Up More focus on business context Collaboration between IT and business Integrated analytics solutions Deployment of analytics platforms IoT and sensor data-driven analytics Talent as a differentiator Increased deployment of big data programs
Comparatively Moving Down Pure staff augmentation based models Debate of the required storage and software in initial discussions Social/digital as ‘hype’ or not applicable
Here to Stay Industry-focused advanced analytics use case development Cross-pollination of analytical techniques across verticals Mingling internal/external talent and tech to develop capabilities Digital-driven interactive marketing/customer analytics
© 2015 HfS Research Ltd. Proprietary │Page 22
HfS Blueprint 2015: Enterprise Analytics Services IN
NO
VA
TIO
N
EXECUTION
High Performers
Winner’s Circle IBM
Label
Accenture Cognizant Capgemini
CSC Infosys
Wipro
EXL Dell
Genpact TCS
HP
WNS Xerox
iGate
eclerx Xchanging
Concentrix Sutherland
© 2015 HfS Research Ltd. Proprietary │Page 23
Panel Discussion
Phil Fersht President & CEO,
HfS Research
Reetika Joshi Research Director,
HfS Research
Drew Miller Executive Director, Marketing Transformation,
Dell
James Kielar IT Manager - Global Spend & Visibility,
Johnson & Johnson
Anand Swaminathan Global Head - Analytics,
Infosys
Sankar Narayanan Vice President,
Fractal Analytics
Key Themes
Key challenges for enterprises in analytics adoption – and how to overcome them
Leveraging internal and external expertise to create an analytics services infrastructure
Forging collaborative relationships to drive analytics innovation
Critical success factors for the analytics services provider of the future
© 2015 HfS Research Ltd.
16%
8%
37%
21%
47%
62% 10%
SVP & Up
VP & Below
Absolutely critical Critical Significant Insignificant
Leadership has the desire to drive the change, not the
operational layer… How significant do you see the “As-a-Service Economy” for your organization?
Source: "Ideals of As-a-Services" Study, HfS Research 2015
Sample: Enterprise Service Buyers = 178
© 2015 HfS Research Ltd. Proprietary │Page 25
Two-Thirds of Enterprises Lack “As-a-Service”
Skills…
Source: HfS Research State of Industry Study 2014, conducted in conjunction with KPMG (Sample 312 Enterprises)
© 2015 HfS Research Ltd. Proprietary │Page 26
Which of the following actions would improve the quality and outcome of your current sourcing initiative(s)?
Service buyers battle with letting go…
43%
10%
5%
10%
24%
9%
"Letting go” and giving more responsibility and value processes to our service provider
Jettison FTE pricing altogether
Move to a more consultative-led engagement
One-year SOWs that are regularly evaluated
Have the threat of a competitive bid create anxiety in our service provider
Nothing – we paid for cheap and cheerful, that’s what we are stuck with
Source: HfS Sourcing Executive Council members, November 2014
© 2015 HfS Research Ltd. Proprietary │Page 27
Knowledge Industries like Healthcare, Media and Hi-tech
ready for radical change
39%
35%
38%
35%
31%
41%
37%
52%
26%
30%
61%
53%
22%
67%
28%
60%
50%
40%
20%
40%
Invest in effective analytics tools & skills
Accomplish creative problem solving/"Design Thinking"
Identify/hire a transformational leader/change agent
Write-off legacy IT investments and move straight into cloud delivery of processes
supported by As-a-Service partner(s)
Replace your existing (legacy) service provider(s) with "As-a-Service" driven providers
% Significant Impact
Banking & Financial / Insurance
CPG / Mfg / Retail / Transp
Healthcare / Pharma
Entertainment, Media, Pubs / Software & Hi-Tech
How much impact would taking the following actions help you reach your desired “As-a-Service” end-state, if you were to make them today?
Source: "Ideals of As-a-Services" Study, HfS Research 2015
Sample: Enterprise Service Buyers = 178
© 2015 HfS Research Ltd. Proprietary │Page 28
86%
63%
50%
13%
13%
13%
88%
69%
88%
69%
50%
69%
84%
83%
74%
53%
47%
34%
88%
91%
86%
76%
67%
49%
BPO is a force for innovationand change within business
My BPO role is fundamental to business performance
I am excited about the future of BPO as an industry
BPO today is an exciting career choice
There has been a big recent shift in the recognition of a career in BPO
BPO has a defined career track and a certain future
To what extent do you agree / disagree with the following? (By years’ experience)
Only one-in-eight outsourcing professionals new to
sourcing are seeing it as a long-term career…
< 2 Years 2 to 5 Years 5 to 10 Years > 10 Years
Excitement about BPO
as a force for change
Not fully translating into sustainability as a career for those new to it
Source: ”Talent in BPO" Study, HfS Research 2015
Sample: Enterprise Service Buyers = 192
© 2015 HfS Research Ltd. Proprietary │Page 29
Panel Discussion
Phil Fersht President & CEO,
HfS Research
Reetika Joshi Research Director,
HfS Research
Drew Miller Executive Director, Marketing Transformation,
Dell
James Kielar IT Manager - Global Spend & Visibility,
Johnson & Johnson
Anand Swaminathan Global Head - Analytics,
Infosys
Sankar Narayanan Vice President,
Fractal Analytics
Key Themes
Key challenges for enterprises in analytics adoption – and how to overcome them
Leveraging internal and external expertise to create an analytics services infrastructure
Forging collaborative relationships to drive analytics innovation
Critical success factors for the analytics services provider of the future
© 2015 HfS Research Ltd. Proprietary │Page 30
APPENDICES
© 2015 HfS Research Ltd. Proprietary │Page 31
Overview
• Drew Miller is the Executive Director of Dell’s Global Marketing Analytics & Insights organization. His teams help Dell marketers & sales people say the right things, to the right customers, in the right place, at the right time via analytics, business intelligence, social listening, and research.
Previous Experience
• Prior to this role Drew served in a variety of marketing leadership roles at Dell beginning in 2000. Most recently he was the Chief of Staff for Dell’s CMO Karen Quintos. I this capacity he assisted Karen in shaping and driving near term go-to-market priorities and long term transformation of the company’s marketing model.
Education
• Drew joined Dell after graduating from the University of North Carolina’s Kenan-Flagler Business School. Before attending Kenan-Flagler he served as an Infantry Officer in the U.S. Army and consulted to the United Nations on international disaster relief. In his undergraduate studies he focused on business management at the University of Virginia.
• He loves to travel with his wife and two young sons, coach & play soccer, ski, and fish.
Drew Miller Executive Director, Marketing Transformation, Dell
© 2015 HfS Research Ltd. Proprietary │Page 32
Overview
• Anand Swaminathan is the head of Data Science and Analytics practice at Infosys. He started the Analytics business unit at Infosys, and is responsible for driving market strategy, and growth, Talent Strategy – Hiring and retention, Training and Enablement, and Solutions and Offerings.
• Anand has built a strong data science team, with excellent focus on Training, Partnerships (Academia and Industry), Data Science and Analytics methodology and frameworks. Under his leadership, Infosys has developed into a strong brand in Analytics with excellent client roster and analytics programs.
• Anand consults with top companies across industry verticals on Analytics strategy, and advises them on their analytics journey, including subjects related to developing Data Science Teams, Reskilling existing teams with Big Data and Analytics skills, instituting engagement models with business teams, identifying analytics use cases etc
• Anand has strong understanding of the Analytics market evolution, and is always interested to share perspectives in the evolving Analytics landscape.
Anand Swaminathan Global Head - Analytics, Infosys
© 2015 HfS Research Ltd. Proprietary │Page 33
Overview
• James Kielar is an IT manager in Johnson & Johnson’s Enterprise Technology Corporate Services division.
• Jim’s Business Unit IT team partners with the Finance and Global Procurement groups to deliver global spend visibility for J&J worldwide.
• Project Vision provides insight into spending, which helps drive future strategies and decisions.
• With over 25 years of experience with Johnson & Johnson, Jim has worked across multiple business areas including Global Procurement, Worldwide Compensation, Enterprise Legal, Global Security, Environmental and Safety, Global HR, Finance and Government Affair.
James Kielar Global Spend & Visibility, Johnson & Johnson
© 2015 HfS Research Ltd. Proprietary │Page 34
Overview
• Sankar Narayanan ('SN') is a member of the global executive leadership team at Fractal, reporting into the Group CEO and heading Fractal's Europe and ANZ business.
• Expertise in consulting & problem solving, building multi-disciplinary teams and implementing analytics across retail banking, insurance and consumer goods industries to help 85+ organizations achieve measurable top line and bottom line impact.
• Multi-market experience in bringing together structured problem solving, advanced analytics and business intelligence to improve customer engagement, create revenue/profit impact, and reduce operational costs/inefficiencies.
• Sankar brings a healthy mix of a physicist's experimentation mentality and an economist's interpretation ability to drive the creation and consumption of analytics.
Sankar Narayanan Vice President, Fractal Analytics
© 2015 HfS Research Ltd. Proprietary │Page 35
About HfS Research
HfS Research is the leading analyst authority and global network for IT and business services, with specific focus on global business
services, digital transformation and outsourcing. HfS serves the research, governance and services strategy needs of business operations
and IT leaders across finance, supply chain, human resources, marketing, and core industry functions. The firm provides insightful and
meaningful analyst coverage of best business practices and innovations that impact successful business outcomes, such as the digital
transformation of operations, cloud-based business platforms, services talent development strategies, process automation and
outsourcing, mobility, analytics and social collaboration. HfS applies its acclaimed Blueprint Methodology to evaluate the performance of
service and technology in terms of innovating and executing against those business outcomes.
HfS educates and facilitates discussions among the world's largest knowledge community of enterprise services professionals, currently
comprising 150,000 subscribers and members. HfS Research facilitates the HfS Sourcing Executive Council, the acclaimed elite group of
sourcing practitioners from leading organizations that meets bi-annually to share the future direction of the global services industry and to
discuss the future enterprise operations framework. HfS provides sourcing executive council members with the HfS Governance Academy
and Certification Program to help its clients improve the governance of their global business services and vendor relationships.
In 2010 and 2011, HfS Research's Founder and CEO, Phil Fersht, was named “Analyst of the Year” by the International Institute of Analyst
Relations (IIAR), the premier body of analyst-facing professionals and achieved the distinctive award of being voted the research analyst
industry's Most Innovative Analyst Firm in 2012.
In 2013, HfS was named first in rising influence among leading analyst firms, according to the 2013 Analyst Value Survey, and second out of
the 44 leading industry analyst firms in the 2013 Analyst Value Index.
Now in its seventh year of publication, HfS Research’s acclaimed blog “Horses for Sources” is widely recognized as the most widely-read
and revered destination for unfettered collective insight, research and open debate about sourcing industry issues and developments.
Horses for Sources today receives over a million web visits a year.
To learn more about HfS Research, please email [email protected].