One word defines today’s business environment: Speed

April 09, 2021 | Phil Fersht

Posted in: Digital OneOffice

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It needn't be hell... with Nigel

April 03, 2021 | Phil Fersht

Nigel Edwards is Chief Client Officer, HFS.  Click for LinkedIn and Bio

While we can speculate all day long about what businesses can do when they are given the huge amounts of someone else's money to burn, how about those that are employee-owned and make their own investments using the hard-earned money they actually earned themselves? 

When you look at the growth and success of HFS over the past 11 years to tackle competitors hundreds of times our size, there is one constant throughout the whole experience - the collective array of people who've made it all possible.  While you can buy successful brands, IP, methodologies, APIs, and algorithms, the most important asset you can accumulate is your people.

One such individual, whom I have known since the days just prior to founding HFS, is Nigel Edwards - an enthusiastic and affable character who's weathered the best of the Indian-heritage service providers namely Cognizant. Wipro and EXL, after earning his business and IT services stripes at Accenture in his earlier career.  It was time for "Nige" to take nearly three decades of blood, sweat, BPO and captives and lend it to HFS' long-suffering clients, crying out for a sense of reality and to exploit the current market turbulence.  Now there isn't too much to say about Nigel beyond the fact he's a lifelong Foxes fan (Leicester City), has played cricket with David Gower and gets beaten up in a boxing ring by his son almost daily... so let's hear a bit more from HFS' Chief Client Officer, Nigel Edwards:

Phil Fersht (CEO, HFS):  Before we get to all the work stuff, Nigel, can you share a little bit about yourself… your background, what gets you up in the morning?

The honest answer is that it’s a combination of my 6-year-old (the youngest of my 3 boys), the dog, or the sound of the refuse collection folk reminding me that I did not put out the recycling…

Seriously though, it’s the opportunity to do something creative.  My dad was in the construction industry for many years and he doubled up as a highly accomplished artist, sculptor, and writer. Even at 78 he is still pushing out new ideas each day in his quiet, unassuming but engaging

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Posted in: Business Process Outsourcing (BPO)Global Business ServicesIT Outsourcing / IT Services

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HfS Research receives $223 million in Series C Funding to become the world's favorite tech analyst firm

April 01, 2021 | Phil Fersht

This injection of money is intended to expand HFS' cutting-edge research coverage across all core geographic locations, plugging the gaps the firm missed in recent years.  "Thank God we got the extra cash", exclaimed the firm's President for Research and Business Operations, Saurabh Gupta.  "With the recent pandemic, not being able to cover dynamics in emerging countries like Turkmenistan and Laos was holding us back.  Now we can really hit Gartner where it hurts most...".

HFS is most famous for inventing the industry known as RPA in 2012, before famously killing it off in 2019, only to see its memory kept alive by Gartner and Forrester, which persisted in believing the revenue numbers of firms that were eking out the last of their PR cash.  "I am so excited to fully restart the RPA myth now we have enough cash to throw at it," stated the HFS Founder and CEO Phil Fersht in a recent press conference that was barely audible over Webex. "Without RPA, we had to pretend technologies like Cloud were making a comeback, and even our sustainability analyst has been trying to muscle in on the action."  Later on, Fersht managed to resume the discussion over Zoom, where he added, "All we had to do was promise Hoden we'd bring RPA back to life and we'd get a sizeable check to invest pretty much anywhere we wanted.  I've convinced my head of research the next wave can be found in Turkmenistan and am funding a trip to escort him out there to view it first-hand.  Apparently, they scraped the government's mainframe green screen and managed to get a script to reproduce the content in a Windows app.  Now they're just waiting for Microsoft to give them a free bot to share it over their cloud network".

Details of the investment plans will be available soon when the firm applies for its long-awaited IPO, where it's rumored to claim it is worth at least $10 billion.  There is no reason why HFS will ever be worth anything close to that amount, but at least it gets PE firms excited enough to throw them more money and put out more meaningless press releases.

To learn more about HfS Research, please email [email protected].

# # #

Note to editors: Trademarks and registered trademarks referenced herein remain the property of their respective owners. 

MEDIA CONTACT:

Trevor McTrevor

HFS Research

[email protected]

And of course... this was an:

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Posted in: Digital TransformationDigital OneOffice

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10 things to think about, if you want to be a more successful and genuine person in this emerging economy

March 23, 2021 | Phil Fersht

It’s been quite the year hasn’t it, folks!  I don’t know about you, but this has proven to be a voyage of self-discovery for me personally as we build businesses that can thrive in a world where it doesn’t matter where you are anymore, where the rules of the game are being re-written in a way we could never have imagined a year ago. 

If you’d told me we’d be doing multi-million dollar deals over Zoom and holding the attention of a global industry captive for an entire day online while we shared experiences of vaccine brands, I would seriously try and shake myself out of this bizarre dream.  Not to mention the spate of billion-dollar-plus deals being constructed on the back of an envelope…

In fact, I may still be having the same bizarre dream while I sleep-write this, and will wake up shortly to check my seat and meal-selection on my next trans-Atlantic flight, so I hope my ten learnings from the past imaginary year of bizarreness are worth a read:

  1. Take control of your career. Whomever you are in today’s corporate world,  the playing field has been leveled – however, almost everyone you know relies on the same vehicles to get things done. You have more time than you’ve ever had to focus on covering all the bases of your professional and personal lives, so make this time count and prepare for the future with a new attitude of self-assurance and confidence.
  2. Be a great communicator. During his career heyday, my father was a world-famous scientist in protein science and biochemistry.  His one (career) piece of advice to me was “always assume stupidity in your audience”.  People love to hear you talk about the basics of what we do and build from there.  I have never veered from this advice and it always serves me well… and those who engage in my narrative have proven to be anything but stupid!
  3. Make a concerted effort to develop your relationships. While nothing beats a great dinner or a few glasses of good wine, beer, or whisky, the people you knew before the big change are still as important as ever, and you need to do what you can to keep them close and keep the camaraderie moving along.  Relationships got you where you are, and during these new times, it’s even more important to keep the dialog going.  Make time for the people who matter, and develop deeper relationships where you can.  Also, focus on more one-to-one dialogs with people than sitting through hours of turgid discussions with too many people… nothing beats the intimacy of a direct conversation where you can see each other and share your genuine thoughts, ideas and feelings. 
  4. Keep learning new things. No one has any excuse to keep doing the same old things the same way, and in today’s environment, you really don't want to become a dinosaur… post-covid world is definitely not dinosaur-friendly! If you are in sales, learn to sell over Zoom;  if you’re in marketing… learn cool new apps to run promos, get familiar with analytics that help you understand your market, and make publications look awesome;  if you’re in finance, put yourself on some data science courses;  if you’re in IT learn how to cloudify business functions and understand the context.  And if you’re ready to break free of the corporate treadmill, there is no better time to start your own business and reel in some clients.
  5. Show your emotions more freely. Don’t you prefer to know how people really feel about things?  Or if you’re pissing someone off?  And doesn’t it feel good to get things off your chest, instead of letting them simmer for a long time until you blow up like a pressure-cooker?  We have no choice but to preserve/build digital relationships with people, so be more expressive, and people will know you better, and maybe they’ll be more expressive in return. 
  6. Demonstrate your true values. We can peek into each others’ homes, hear our kids screaming and dogs barking… so why not peer a bit deeper into what makes us think the way we do?  There are just too many issues conflicting our world these days, and it helps to share some of our views and beliefs – when it is appropriate.  While it’s wise to avoid politics (unless it’s plainly apparent you’re with like-minded people), it’s healthy to discuss how to manage people better, the culture in which we like to work, how to cope better with stress, how to get a better balance between work life, health and family life.  It’s also healthy to discuss how to balance diversity issues in the workplace, ensure equal opportunities for candidates when we are hiring for roles, respect our planet more, and what we can do collectively as an organization to address sustainability issues.  Because if we never share our values, we can never learn from each other, and we can never evolve with how we think and act. This also means we need to avoid public shaming of people for behaviors that some people may construe as racist or sexist. That only creates deeper divisions between people and does nothing to promote better attitudes.
  7. Make peace with people you value. It’s so easy to fall out with people these days when tensions and stress levels are running high… but it’s also just as easy to smooth things over and get relationships in a better place.  It’s also easy to reconnect with folks you’d fallen out with years ago and find new areas of common value – bury that hatchet!  The modern business culture is so relationship-driven these days, so drop the ego and cultivate relationships with people who matter. 
  8. Move on from people who don’t appreciate you. And on the flip side, those people who just use you when they need something… aren’t you just sick and tired of the take, take, take, and never getting anything back?  These people are already getting left behind, and you need to move on from them.  It’s all about valuing each other, listening to each other, sharing ideas, and mutually helping each other out.
  9. Take the higher ground. How many times do you get pulled into petty squabbles, and you suddenly realize “why am I bothering? This really isn’t important to me”.  Always take a deep breath and think about your higher goals and consider whether you need to fight every battle and distract yourself from the war you need to win?  This isn’t being “political”, it’s simply smart about how you handle yourself.
  10. Don’t forget those who got you here. One of my most important rules is never to forget the helping hands you’ve had during your quest for greatness.  People who supported you know what they did and really appreciate it when you recognize them for it. I have lost count of all the favors I have done for people over the years, but I do remember when someone mentions they appreciated it – even if it’s years later.  However, those who just “take, take, take” get struck off my list pretty fast these days – who has time for the entitled liberty-takers who want whatever they can get when they ask for it?

 Peace Out... ;) 

Posted in: Digital TransformationDigital OneOffice

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Can we get back to a world where we engage with each other again?

March 21, 2021 | Phil Fersht

Posted in: Digital TransformationSocial NetworkingSocial Media

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'I look forward to a day when a company lost business because of how they handle diversity'

March 07, 2021 | Nischala Murthy KaushikPhil Fersht

I spoke with HFS Research CEO Phil Fersht for his thoughts on gender diversity and building inclusive organizations, why we need women at the workplace, how the industry has evolved over the past decade, and ideas for the future to make significant progress for the case and cause of #womenatwork.  A one of its kind and exclusive interview in which Phil shares unfiltered reflections and intriguing insights.

Nischala: So Phil, firstly, thanks for your time to do this interview with me. As you know, the topic of #WomenAtWork is very close to my heart.

I’d like to start with a basic question - Why do you think we should have more women in the workplace?

Phil: Thanks for doing this, Nischala. Appreciate all your initiatives around women at the workplace.

Coming to your question - Firstly, I think that there’s a shortage of talent in the workplace, particularly creative talent. I work in a knowledge industry, where we need creative people - good writers, thinkers, and communicators. In many cases, women are outstanding in these areas, especially writing and communicating.

If women aren’t an active part of the workforce, I do feel that we’re missing out on a lot of talent, which is critical for business growth. I do recognize that many women disappear from the workplace when they have kids or caring for the needs of the family - and they don’t come back.  Some women come back, and a minimal number are tremendously successful, but not

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Posted in: Policy and Regulations

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OneOffice: Where data is the strategy, automation the discipline, AI the refinement

March 07, 2021 | Phil Fersht

While the last year has blown our minds with the sheer amount of change it has invoked on our professional and family lives, what is has achieved - more than anything - are these two factors:

  • No more flashy bullshit. There is no room for solutions that are confusing, designed to make people look special, but ultimately pathetic in real value and execution.  
  • Data and processes are inextricably linked. The focus on value has shifted firmly to the strategic value of data and how designing processes can help you achieve the data outcomes that create the value.

Bottom-line: We need to understand that data is the strategy and how the data cycle works to get us ahead of our markets. Here are five steps we must take:

  1. Get The Data to Win In your Market. This is where you must align your data needs to deliver on business strategy.  This is where you clarify your vision and purpose.
  2. Re-think processes to get the data, Then you must re-think what should be added, eliminated, simplified across your workflows to source this critical data.
  3. Design your new operational workflows in the cloud. There is simply no option but to have a plan to design processes in the cloud over three-tier web-architected applications.  In the Work-from-Anywhere Economy, our global talent has to come together to create our borderless, completely digital business.  This is the true environment for real digital transformation in action.
  4. Automate processes and data.  Automation is not your strategy.  It is the necessary discipline to ensure your processes provide the data - at speed - to achieve your business outcomes. Hence you have to approach all future automation in the cloud if you want your processes to run effectively end-to-end.
  5. Apply AI to data flows to anticipate at speed. Once you have successfully automated processes in the cloud, it is easy to administer AI solutions to deliver at speed in self-improving feedback loops.  This is where you apply digital assistants, computer vision, machine learning, and other techniques to refine the efficacy of your data.  AI is how we engage with our data to refine ourselves as digital organizations where we only want a single office to operate with agility to do things faster, cheaper, and more streamlined than we ever thought possible.  AI helps us predict and anticipate how to beat our competitors and delight our customers, reaching both outside and inside of our organizations to pull the data we need to make critical decisions at speed.

Posted in: Digital OneOfficeAnalytics, Big Data and BIIntelligent Automation

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RPA is alive...With Super Marios to the rescue

March 02, 2021 | Elena ChristopherPhil Fersht

We've been pushing our concept of Native Automation hard these past few weeks, where it's imperative for organizations to embed an attitude to automation workflows deep into their operations. So what better to promote this native adoption, than to get it for free from the world's juggernaut desktop software institution, Microsoft?  And does this spell trouble for the likes of UiPath and AutomationAnywhere's desire to IPO... now RPA is practically free for all?  They now have little choice but to prove their value beyond RPA.

RPA is not dead, as previously stated. Thanks to Microsoft, it’s going mainstream.

In line with day one of its annual Ignite events, Microsoft announced that it would immediately offer a free version of its Power Automate Desktop robotic process automation (RPA) application. This is available for complimentary download starting today. Additionally, it will

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Posted in: Robotic Process AutomationIntelligent AutomationArtificial Intelligence

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Welcome to Nischala-land!

February 24, 2021 | Phil Fersht

 

Many of you saw we recently hired the analyst industry's first "storyteller"... and do we have some stories to tell!  Nischala Murthy Kaushik has joined us to drive a crisp and enticing narrative for our industry during these turbulent times of change, which she will attempt to fit between her yoga and meditation sessions, and her amazing dinners with hubby Saurabh and young ladies Naisha and Tanishka. 

Nischala will curate the HFS 2025 vision and values to the industry using her substantial social media presence - she was recently named among the Top 20 LinkedIn Voices for India. In addition to working closely with our research team, she is a blogger, thinker, and provocateur in her own right including bylines in Huffington Post and The Economic Times, with a strong focus on inclusion and diversity.  So let's find out a bit more about HFS' latest acquisition...

Phil Fersht: Hi Nischala - we are extremely happy you have chosen to focus the next phase of your career with us.  But taking a step back, can you talk about your early years and why you chose a career in the IT services industry?  Was this the career you always wanted?  

Nischala Murthy Kaushik - Phil – Firstly, Thank you for being instrumental in my career shift. I look forward to working with you and the HFS team for the next phase of my career.

Time travel into the past is always a nostalgic experience. As a kid, I aspired to walk down a new career path in line with the seasons – from a genetic researcher to a doctor, to starting my own business venture (my extended family has lots of doctors, entrepreneurs, and some both!),

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Posted in: IT Outsourcing / IT ServicesOutsourcing Heros

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The 9-to-5 job is officially dead... Work-from-Anywhere becomes our new reality

February 18, 2021 | Melissa O'BrienPhil Fersht

With companies the size and stature of Aetna, Amazon, Nationwide Insurance, Microsoft, and Unilever committing to the hybrid work model well beyond Covid-19, where home working is encouraged, you know a seismic shift to the corporate work culture is firmly underway.  Simply put, most firms are enjoying the lesser reliance on expensive corporate real estate, combined with the novel environment to design and automate processes in a cloud model – because there is simply no choice but to embrace digital head-on if they are to survive.

The true benefits of digital are all about scaling your business at a speed and cost-efficiency that keeps you ahead of your customers’ needs.  It’s all been about breaking the cycle where you had to keep adding people to ensure growth – for today and tomorrow, it's about doing more business from the same (or less) resources. 

OneOffice is the mindset to put real digital transformation into action, and there has never been a burning platform like the Work-From-Anywhere (WFA) revolution to force this change

Some of the world’s largest enterprises still have up to 100% staff working from home and have managed as a remote workforce for a year now.  A recent HFS study of 400 Global 2000 enterprises reveals that barely more than a third of enterprises intend to return to an office-based corporate model:

Office-based environments will never return to pre-COVID levels: We will have a significant Work-from-Anywhere workforce

 

Click to Enlarge

It is very unlikely that most enterprises will return to full-time office work, and the ramifications are plentiful and we evolve into Work-from-Anywhere

This is a complicated puzzle to solve, especially for large enterprises with a wide breadth of business functions and roles.  This essentially leaves us with four pivotal questions to answer:

  • The 9-5 workday is dead, but what does the new workday (and workforce) actually look like?
  • How can businesses prevent burnout while ensuring productivity at the same time?
  • How can workers adapt their skillsets that will stand them in good stead in this emerging environment?
  • And how do they ensure employee satisfaction while making the right decisions for security and business stability?

The new mentality is all about measuring outcomes from getting work done, as opposed to the inputs of resourcing for work

The nature of work is fundamentally changing, and if companies manage this shift effectively, it will change the work environment for the better for ambitious enterprises.  What’s needed is a solid grasp on what the long-term pivot to a ‘work from anywhere’ means to businesses, and a plan to make the remote workforce a part of the Digital OneOffice mindset.   Ideally, these changes switch the mentality to an outcomes-focused model where all that really matters is that work gets done and customers and employees are satisfied, regardless of where either is physically located.

The why, the what, and the how of Work From Anywhere in 2021... and beyond

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Posted in: Contact Center and Omni-ChannelDigital OneOfficeGlobal Workforce and Talent

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Ready to walk the Sanjay way?

February 07, 2021 | Phil FershtSarah Little

 

It's time to make Sanjay Jalona a services household name in the IT services industry. He made the jump from leadership positions at Infy to CEO and Managing Director of LTI in 2015. When I pulled up their stock chart I had to rub my eyes - thought for a moment that I was looking at the acceleration of COVID across the globe. But no, that's the 5-year snap of LTI's stock growth. Sanjay has lead LTI through an IPO in 2016 to continued momentum in growth across capabilities today.  

The COVID landscape has created massive pivots across the industry, so I was deeply curious where he was taking risks and deep dives for the future – as he will say, the capabilities where he's "throwing the kitchen sink." And speaking of the kitchen sink, we touch on everything from leading and learning with Shoshin (a beginner’s mind) to the positive changes sweeping India. Let’s begin:

Phil Fersht, CEO and Chief Analyst, HFS Research: It’s great to see you again, Sanjay, and have you join us for an HFS conversation. This is the first time we’ve had a “live” discussion, so it’d be great to have you introduce yourself a bit to our network – a little bit about Sanjay Jalona, how you ended up running a business like LTI, and a bit about how you started out. Did you always want to do this, and was this what you dreamed of? And then we’ll talk a bit more about the industry and where things are going there.

Sanjay Jalona, CEO and Managing Director of Larsen & Toubro Infotech (LTI): It’s always a pleasure to talk to you, Phil. I grew up in a small town, up north in India – six hours’ drive from Delhi in the foothills of the Himalayas. My father worked for a pharma company all his life. I studied there in a Hindi Medium school, and then went to study computer science at BITS Pilani. After that, for the last three decades, I have been involved in nothing else but the technology business.

So, I guess I’d reckon that I would completely be useless outside this industry [laughs]

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Posted in: Cloud ComputingDigital TransformationIT Outsourcing / IT Services

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SAP acquiring Signavio is a cheap play to migrate enterprises onto S4/HANA. Instead it just handed the market to Celonis

February 01, 2021 | Phil FershtReetika Fleming

Why we think SAP acquiring Signavio is a non-event and actually frees Celonis from its SAP shackles to inspire its loyal following

The initial buzz from SAP leaders with its Signavio acquisition all points to helping its clients migrate from legacy systems onto cloud-based S4/HANA applications. While that is a worthy goal, SAP needs to embrace how to support both non-IT and IT clients with rapid process redesign, if it is to stand any chance of reclaiming former glories that are long-distant memories in today's high-octane environment. The German software giant has an IT-centric view of the world, where instead we need technology and business to come together to become fluent in understanding the data they need to be effective in their markets.  To create this data, processes need to be designed to deliver data at speed, and these need to be automated in the cloud to keep their enterprises functioning.  Once processes are flowing beautifully in the cloud, you can deploy all sorts of ML and AI tools to gather increasing amounts of intelligence to anticipate your own needs - and your customers - ahead of time.

Until a decade ago, SAP was, perhaps, the most significant brand and voice in enterprise technology.  The German software supremo was the enterprise backbone, the system of record, the “way of doing things” for the majority of the FORTUNE 1000.  Back then, Microsoft was already entering rigormortis as a decrepit office suite, SFDC wasn't much more than a fancy way of managing your contacts, while Workday was confusing everyone with “thin memory”, and Oracle was just a weird collection of tired con-fused software firms run by a guy who resembled a tech billionaire version of Donald Trump.

Since then, the SaaSy likes of Salesforce, Workday, and Coupa have long-driven a narrative that you had to run your processes in the cloud, while SAP labored to catch-up as a “Cloud player”.  Then came the digital juggernauts of Microsoft, Amazon, and Google to ratchet the world of enterprise technology into a very different place, where data is king and it doesn't matter how unstructured it is.

SAP has long-lost its enterprise appeal as the process connoisseur’s tech suite of choice

SAP is a symbol of a long-forgotten time when people’s careers were tied to it, when enterprises thought being locked-into an on-premise software suite was considered a strategically smart thing to do.  Hell, any IT bigwig worth their salt needed SAP plastered all over their resume. But those days faded away after 2010 as the cloud took over the core processes in smart enterprises.  

SAP made its long-rumored acquisition of workflow and process intelligence vendor Signavio official last week. The move has implications not only for the two merging tech companies, but also the market leader in process intelligence, Celonis, that until now, enjoyed a close and successful partnership with SAP. In addition, Celonis has cultivated many strong partnerships with the likes of Accenture, Cognizant, Genpact and IBM.  Will they gravitate towards as SAP-owned Signavio?  And will SAP’s army of customers really take this seriously enough to fight their CFOs for yet more cash to pump-prime the Waldorf machine?  The depressing answer for both SAP and Singavio is simply:  no one really cares.

Why SAP needs all the help it can get to earn credibility as a process orchestration and intelligence player

Every enterprise leader has taken a hard look at their business processes over the last year, seeking ways to streamline and automate tasks and get data on what is working and what broke in the move to remote working. What started as an exercise in somehow keeping the lights on in the pandemic economy, has started to turn into wider initiatives that will have a long-lasting impact. Many enterprises in our research have expressed that ‘there is no going back’, and post-pandemic, they will need a far smarter operating model, technology stack, and data-driven business processes. At the heart of this stack, for most companies, is a hodgepodge of various versions of aging business systems, fragmented over regions and markets, that are responsible for the majority of transactions that keep the business running.

Business leaders seeking their own glory on “digital transformation” and process efficiencies have implemented a plethora of bolt-on tools around core applications over the years, including business process modeling, workflow management, document and content management engines, and of course, robotic process automation. Process intelligence tools have been the latest addition to this mix. In particular, process mining technologies that use transactional system-log data (such as from SAP) to power their analytics and machine learning models.

Why Celonis was so good for SAP customers – and will still be for some time to come

The two principal uses of process mining tools that significantly help enterprises with their SAP estates include:

1) Helping operations leaders make the most of their current ERP  and other source systems, find process bottlenecks and inefficiencies, and redesign processes such as order-to-cash and procurement

2) Helping IT teams with systems migration, such as a move to S4/HANA, where the mining technology can be used to map and monitor as-is and to-be processes, and user adoption over time.

Just with those two points, we can see why SAP’s partnerships in this space have gotten deeper in the last few years and got to a point where SAP felt the need to directly invest in a solution of its own. Hence its acquisition of Signavio.

SAP needed to partner with the likes of process intelligence leader Celonis and UiPath (which acquired ProcessGold) to keep its technology ticking, and provide its customers more process visibility and automation. Now it has the ability to define how a fully integrated BPM, workflow, process mining, and automation capability can augment its core technology, beyond what third-party platforms and a host of SAP-specific products have been able to achieve.

Weaning any client with years of experience off of their beloved Celonis to switch to an inferior product owned by SAP is not going to happen… so good luck with that folks!

When it comes to process augmentation, SAP is lightyears behind the market.  In 2018, It made a low-budget attempt to enter the Robotic Process Automation (RPA)  market with Contextor, a small little-known France-based RPA product to augment SAP Leonardo’s intelligent technologies portfolio.  Nothing has been heard of them since, with no examples of SAP playing in the process automation space.  It’s been a bust.  So if SAP can’t make head nor tail of the most base form of process automation (RPA), why does it think it can take the market by storm acquiring a product which is ranked 13th in process intelligence software:

 

Simply-put, all the hard years the Celonis founders spent driving around Germany selling the software to SAP customers in a VW Camper (yes, I actually know this!), ensured that Celonis has firmly established itself as the process mining solution of choice, necessitating several years of investment, training and change management from its loyal clients. So why on earth would these process-obsessed customers flock to use the industry's thirteenth best solution?

Why Signavio? Its collaboration hub and process simulation capabilities couldn’t be more timely for operating in the pandemic economy

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Posted in: Robotic Process AutomationIntelligent AutomationArtificial Intelligence

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UiPath will finally find its true path as IPO beckons. Now can its leadership develop some humility to embrace this incredible opportunity?

January 24, 2021 | Phil FershtElena Christopher

Having introduced RPA to the world in 2012 I have (sometimes grimly) clung to the belief that RPA will eventually find its path to be a vital cog in the enterprise technology potpourri.  Blue Prism opted for the comfort of floating on the London stock exchange less than four years later in 2016, where its founders and key stakeholders opted for a modest payday, rather than make the really bold play of floating in the Big Apple and making themselves known as the pioneer of automation software.  The other two major robotic software candidates, Automation Anywhere and UiPath then proceeded to demonstrate their beauty to the big iron software giants, which all opted to seek out cheap acquisitions to scratch their RPA itch, with SAPAppian, Microsoft, and IBM all settling for small-scale tech additions, rather than making the multi-billion dollar investments AA (Automation Anywhere) and UiPath were demanding. 

So with only $450m actually being invested in RPA acquisitions from the tech sector, the $1 billion+ UiPath has been burning through (and a not-dissimilar amount with AA) clearly indicates IPO is the only realistic path forward 

It's easy to blame Covid on many things, such as the negative impact it has had on my performance in cleaning the kitchen, but one thing has been clear:  Covid amplified situations where enterprises were struggling or doing well.  In UiPath's case,  pre-Covid they tried to force a market situation before their market was ready... all they needed was the patience to wait for their market to open up for them and keep the robotic love story emerging among its starry-eyed clients. However, during 2020 UiPath far outstripped all its competitors because it has an employee base to upsell, and it made its solutions the easiest for services firms and consultants to implement. The efforts made to push their platform into as many clients as possible pre-Covid has paid real dividends with sales cycles severely restricted to those clients who already use your software.

Step up UiPath, your time is now

UiPath’s potential IPO has been whispered about for a couple of years now, but pre-Covid, AA was widely expected to be the first to IPO. With UIPath's stellar sales performance in 2020, the race to IPO has clearly swung towards UiPath as it has considerably outpaced both AA and Blue Prism in terms of license sales, and you just can't IPO when your sales performance is flagging.

To this end, in mid-December Bloomberg reported and UiPath eventually confirmed that it filed a draft registration statement on a confidential basis with the SEC for a proposed public offering of its Class A common stock.  While the filing may be confidential, UiPath is making sure the buzz about it is anything but.  If the likes of Microsoft, Oracle, and Salesforce are failing to see the value of acquiring the firm with a very, very effective services partnership strategy and rampant installed base, then it"s time to open up to the public where there is well over $1 trillion of funds just primed for a tasty investment in a tech firm that has captured the excitement of the Global 2000.

Ultimately, IPO is the only path forward for UiPath. It has received more than a $1B in funding and its investors would like some return. And when valuation makes you a "deca-corn" it's tough to find a buyer. Public markets to the rescue. While we’ve been VERY vocal about our view that RPA is in no way transformative, there is a ton of “now” value to be reaped from helping enterprises prop up legacy for another couple of years.  Their investors have always been very clear that the “now” value of RPA is what makes it investment-worthy. And in a pandemic, clearly more so.

All the ingredients are there for UIPath to IPO and change its mindset 

Meanwhile, UiPath continues to invest in its product functionality both organically and via M&A, driving capabilities beyond core rules-only RPA to help it better grapple with unstructured data and support process intelligence. However, HFS sees zero chance of UiPath ever realizing its vision of a robot for every human (which we affectionately refer to as a thinly veiled plan for a license for every client employee) or at least not in its current incarnation which is still predominantly unattended. Microsoft, which just completed the native integration of Winautomation from its acquisition of Softomotive is tracking much more in this direction (Clippy2 anyone?) and has a massive base of desktop users to convert.  Nor is UiPath poised to become the “new ERP” as suggested in their recent 2021 predictions – largely because RPA alone, despite the upgrades, does not possess enough functionality to be the epicenter of process and workflow orchestration that sits atop existing enterprise apps.    

As for the IPO path, UiPath has been adding customers hand-over-fist, generating massive growth figures. UiPath would be successful by every measure if they could crack the customer scale code. But that’s the challenge – they won’t. RPA has an expiration date that kicks in with legacy modernization. It doesn’t scale not because it can’t but because enterprises don’t need it to. Enterprises can keep using the same 50 bot license and get what they need year on year. 

Bottom-line: @UiPath holds the attention of the RPA industry vying to become the first public multi-billion-dollar robotics platform to float on the #NASDAQ.  Now its leadership must show maturity and embrace reality. Their time is now .

While it's easy to criticize anyone in a market that is still flying by the seat of its pants, we have to give UiPath credit for outpacing all its competitors over 2020 and finding itself in pole position to IPO as early as next month.  When you consider the only other recent tech IPO was the long-established Cloud firm Rackspace, the market will welcome the market leader in robotics software and make its investors very happy after a  frustrating three years of confusing marketing, fantastical narratives, and an incredibly poor ability to win the hearts of many influential analysts.  But you know HFS, we can dish it out, and we can also take a punch or two.  But we always err on the side of reality, and the reality here is that UiPath will succeed in being the first robotics platform to IPO.  It has become the automation platform for many of the leading service providers, and while scaling has been a real challenge, UiPath is winning that battle.  The company actually refuses to talk to me or my brilliant colleague Elena Christopher these days because its leadership couldn't stomach some hard truths we dished out to them pre-Covid (and refused to spend a few minutes digesting data on 372 enterprises).  But that's OK - if you want to control all the narrative and cannot find the humility to take a few punches when you need to take them, you only need to look at other leadership disasters to see where that attitude takes you.  Huge egos and inability to listen will see anyone fail.  Creating a narrative everyone can believe in, embracing your critics and designing a strategy we call all learn to love are the keys to success beyond IPO.

So this is a time to embrace the hard-won success of Daniel Dines and his team to see RPA finally establish itself in the "work from anywhere" enterprise tech stack.  Now let's hope they can control their egos a bit better to embrace the much more lucrative industry that awaits them.

Posted in: Robotic Process AutomationIntelligent AutomationRobotic Transformation Software

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The proposed Atos-DXC takeover is papering over some very deep cracks from a bygone era

January 10, 2021 | Phil FershtTom Reuner

The IT services market has arrived at its most critical infection point in 20 years, where the role of service providers that survive the Covid era will be those that have made the shift from support firm (Phase 1) to a business partner (Phase 2).  We've talked about this services shift ever since Tom Reuner and I were young analysts.  And we're not very young anymore.  Especially Dr. Reuner.  

So why on earth is Atos bidding to make some wild takeover of DXC?  Let's understand the burning platform driving this

When the first major tranche of IT support deals evolved to a heavy dependence on India as a delivery location to exploit lower-cost labor at scale, made possible by the original Internet revolution. In the early days of the offshore era, the more ambitious traditional IT services firms, at the time, developed their own global delivery models with the goal of staying relevant, in the face of emerging competition from the "Indian Pure Plays" (as they were known in those days).

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Posted in: Business Process Outsourcing (BPO)Cloud ComputingIT Outsourcing / IT Services

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OneOffice is all about anticipating customer needs before they even know what they are...

January 09, 2021 | Phil Fersht

OneOffice is all about putting the customer front and center by having end-to-end processes automated in the cloud enabling great AI to help you make winning decisions...

Posted in: Absolutely Meaningless ComedyDigital OneOffice

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Introducing the Tech Stack to power Native Automation, Data and Process Design: The OneOffice Platform

December 30, 2020 | Phil FershtElena ChristopherTom Reuner

Posted in: Business Process Outsourcing (BPO)IT Outsourcing / IT ServicesDigital OneOffice

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He's got the Cloud in his soul... his name is Joel

December 28, 2020 | Phil Fersht

Joel Martin heads for the Cloud with HFS to lead the Cloud strategies practice

It's funny when you meet these people across all corners of the globe during your career and you get that feeling that you'll cross paths again in the future.

I first met Joel in 2002 when I was a Bio-IT analyst (yeah, I actually did that) in Australia working for IDC and Joel was running the PC tracker for the ANZ region.

Fast forward 19 years and Joel, and after his 10-year IDC stint, a couple of cyber-security and research startups; and a product marketing stint at Microsoft, got in touch about something that had nothing to do with the role for leading our new Cloud Practice was being advertised...   I even asked him if he knew anyone when I thought "Hang on Joel, what are you doing these says...".

To cut a long story short, Joel is now our first permanent Canadian employee, based in tropical Ottowa, with 2 daughters, (tries to) play guitar, and has mastered Bar B Qing at -20C. He has lived and worked all over the world and somehow still ended up in Ottowa.  But that's OK because we now officially have HFS Canada!  He is also leading HFS' new Cloud Practice to help the big pivot into the virtual work-anywhere world.
 

Phil Fersht, HFS: Before we get to all the work stuff, Joel, can you share a little bit about yourself….your background, what gets you up in the morning?

Joel Martin, Vice President Cloud Strategies, HFS:  Great question Phil, thanks for asking. 

About me, well, I like to think that I am a classic overachiever. I have built a career from a humble beginning to one that has allowed me to live, work, and experience cultures and peers in Europe, Asia, Australia, and North America. I love immersing myself in a new culture, have been fortunate to lead operations, sales, and research teams across the world, and thoroughly enjoy the customers I have engaged in finding new revenue opportunities. 

I grew up in a small town in the United States, proud son of a Red Cross executive. As such, I got involved in community service from an early age, which continues to be important to me. Travel is something that I also grew up with, as early in my life, we lived in Germany and then across the U.S. 

While at university, I built a partnership between the University in Leipzig and Houston, leading to my joining an international student-led program based out of New York City. This allowed me to travel extensively in Eastern Europe in the early and mid-90s, and honestly, I haven't looked back. I started my technology career in Prague, Czech Republic, with IDC in 1997 and moved to Australia in 1999 and Toronto in 2004. Building a career in research, consulting, and practice leadership. Then I moved to Microsoft, where I was product marketing lead for the ERP business for Canada. In fact, I was part of the initial plans to move that product to the Cloud. After that, I was recruited by TechInsights, an Ottawa based Intellectual Property firm, to lead global marketing and product management. During this stint, I was part of the executive team that sold the business to a Private Equity firm and was retained to build exit strategies for different business lines. 

During this time, both the company and the business I led went through significant digital transformation, taking our products and systems to the Cloud. This was a major undertaking as we fundamentally changed our financial, operations, HR, and customer-facing tools and experiences. That was 2015-2016, hard to believe nearly 5 years have passed. 

Over the most recent 3 years, I ran workshops, managed client engagements, and wrote blueprints on building better supply chain relationships. I also supported a new program that focused on the impact of emotional connections between users that the software tools they use. Our hypothesis was that it is essential to look beyond the capabilities and features and understand what emotions drive satisfaction—a crucial component for marketing, sales, and buyer synergies. 

Now I am excited to join HfS! As you and I worked together in the early 2000s in Sydney, while our paths diverged, we've found ourselves working together again. 

As for what gets me up in the morning, I am an early riser, so after that first coffee cup, I like to explore problems with a fresh perspective. You know, before the in-box and to-do list from your boss dulls your creativity.  

You've had a very global analyst career spanning several countries and continents... can you share some of your experiences over the years... what would you do all over again, and what would you definitely avoid?

When I look back at the crazy times of hitchhiking between meetings in Eastern Europe in the 90s to negotiating with a crooked cabbie in the middle of the night on a highway in China about the fare, there are undoubtedly many memories. And many things I would AND WOULD NOT do again! 

The most important thing I always found while working abroad was being willing to listen. Not just to the customer or executive in the meeting, but to the colleagues, cabbies, and folks you meet while spending time in their country. Understanding another's views based on their experiences, society, and culture has allowed me to apply my experiences in ways that have built more successful outcomes. In my experience, we often rush into conversations with our opinions and should take more time to listen. 

So I do my best to avoid talking until asked. Instead, encourage the sharing of experiences, challenges, and opportunities. By making this investment, together, we can then build a prosperous relationship. Without doing so, it can be hard to establish the trust needed to collaborate equally and fruitfully. 

How did you end up back in research after spending time with Microsoft?  

My career's second decade was on the supply side of the market. At Microsoft and TechInsights, I succeeded in developing products, managed partner programs, and delivering on go-to-market strategies. Something I'd advised on in my first decade at IDC, but with little

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Posted in: Cloud ComputingIT Outsourcing / IT ServicesOutsourcing Heros

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HFS Vision 2025 is here: The New Dawn to become a OneOffice Organization

December 07, 2020 | Phil FershtReetika FlemingMelissa O'BrienTom ReunerSaurabh GuptaElena ChristopherSarah Little

Posted in: Digital OneOffice

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And here's an hour of my life I thoroughly enjoyed. I hope you to do... with Cognizant CEO Brian Humphries.

December 01, 2020 | Phil FershtSteve DunkerleySarah Little

Posted in: IT Outsourcing / IT ServicesDigital OneOfficeCloud and Business Platforms

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Infosys can save the UK from Economic Fossilization. Here's how

November 30, 2020 | Phil Fersht

In today's world of constant fake news it was refreshing to get some real news that literally made me choke on my 57th microwaved frozen chicken jalfrezi of the year.  The fact that this real news emanated from the Daily Mail (the UK equivalent of the New York Post or Air India's in-flight magazine) was an indicator of how bad today's media has become.  Also, the fact that my head of marketing actually reads the Daily Mail gives me serious concerns for our 2021 marketing strategy... 

Anyway, let's get to the point.  Our Chancellor of the Exchequer (CFO for you corporate types), "Dishy" Rishi Sunak is married to the daughter one of India's IT industry's founding godfathers, none other than Akshata Murthy, daughter of Narayana Murthy, the man who created Infosys.  Like that happened and no one's noticed until someone at the Daily Mail discovered this... and they wed in 2009.

The UK is in a mess so bloody big we need to redefine "mess"

If a depression-driven Covid catastrophe wasn't bad enough, the mother country is going into a catatonic depression so bad, it may lead to an economic fossilization (that is my term for something worse than a depression) when we throw a no-deal Brexit into the mix... due end of 2020.

Anyone observing the thrilling performance of the Indian-heritage service providers this year will observe how the leaders have somehow kept the IT outsourcing industry actually growing a little bit, despite a predicted 8-10% nosedive that analysts many predicted.  And this owes a huge amount to its standout performer of 2020, Infosys, which has chugged along signing megadeals and reinforcing its commitment to the cloud at a time when enterprises are desperate for a partner to help them pivot at breakneck speed into the cloud model.

Anyway, as a disillusioned British born analyst (and global citizen) I suddenly see hope...

I have a lot more faith in these entrepreneurs from Bangalore than the current old-boys network running Her Majesty's economy into the ground.  I always knew Rishi was the only smart one in there, and now we have the evidence.

So... now good old Infosys has no choice butto bail us out as they married into... the UK!  

I am sure they will appreciate some free advice on the governance team that can drag us quickly out of our current predicament, so here's an initial strawman architecture:

UK Prime Minister:  Ravi Kumar S.  No one spins it better than old Ravi... all he has to do is bulldoze our media with pics of his new baby girl all over twitter and have us guessing forever on the mysterious "S"...

Chancellor:  Pravin "UB" Rao... this man can keep a ship sailing through any storm.  This current crisis stuff is child's play compared to rogue CEO's in private jets and dodgy Israeli automation purchases..

Head of the UK Coronavirus Task Force:  Vishal Sikka... time to dust off the former CEO to convince the UK public that we needn't worry about Covid as "AI will provide the answer" (after showing up 30 minutes late to every briefing).

Brexit Secretary:  Salil Parekh... who better to carve us out of the EU than the king of the carve-out deal himself?  He'll even do the deal on the golfcourse showing the rest of Europe how it's done.

Head of Cybercrime:  Mohit Joshi... who better to arm our cyber-defenses than the man who can iron-wall any bank still running on Cobol mainframes?  Easy, just move all our sensitive data onto Finacle and the Russians and Chinese will go crazy trying to figure out what the hell we just did...

Vaccine Distribution Czar:  Radhakrishnan "Radha" Anantha... who better to command the British vaccination process than InfosysBPM kingpin Radha himself, who will ensure everyone needs to "calm down and just focus on the outcomes".  If things get a bit dicey, he will take questions from his kitchen where we'll be far more interested in what on earth his kids are sneaking out of the fridge while he's too busy talking to us...

But what about Rishi himself?

Oh, he's far too smart for us.  Can't you get him to take over from that Modi guy?  Rishi makes money appear from magic, you know?

Posted in: Outsourcing HerosPolicy and Regulations

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