HfS Network

Monthly Archives: Oct 2016

You'll wake up on November 10th to a new president and the Great Roboboss Debate!

October 28, 2016 | Phil Fersht

Still confused about what robobosses are and why you may be working for one soon... according to some experts?  

Well, your confusion will soon be over, as we've assembled the ultimate interstellar panel consisting of client leaders, technologists, service providers, analysts and advisors to debate - once and for all - the true impact of cognitive computing, artificial intelligence, IT automation, robotic process automation software and smart algorithms are having - and will have - on our lives, our jobs, our enterprises, our politics and our  society.  

Your Robo-Host:
• Phil Fersht, CEO and Chief Roboboss, HfS Research


Robo-Participants should learn about:
• How should we define what a "Roboboss" is... and should be?
• How far from reality are today's viewpoints from other "experts" - what's real and what's fantasy?
• Do we need a Code of Ethics for Intelligent Automation and Cognitive?
• Where are we going to see “real Cognitive applications” in the short-medium term? 
• Where should we start our Intelligent Automation and Cognitive journey?
• Are today’s service providers really going to be the enablers of Intelligent Automation and Cognitive?
• Buyers - if you could start this all over again, what would you do differently?
• How can we develop “Cogno-boss” skills?
• What is the Real Endgame with Intelligent Automation and Cognitive?


Your Robo-Panelists:

• Lee Coulter, CEO Shared Services, Ascension Health
• Matthew Heffron, VP Innovation Initiatives, Wells Fargo
• Mary Lacity, Curators' Distinguished Professor, UMSL
• Cliff Justice, Partner and Innovation/Cognitive Lead, KPMG
• Dr. Thomas Reuner, Research VP, HfS Research
• Chitra Dorai, IBM Fellow & CTO Cognitive Services, IBM Watson
• Mihir Shukla, CEO, Automation Anywhere
• Chetan Dube, CEO, IPSoft
• Alastair Bathgate, CEO, Blue Prism

 

Posted in: Cognitive ComputingRobotic Process AutomationIntelligent Automation

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Accenture, IBM and Cognizant lead the industry's first Intelligent Automation Blueprint

October 23, 2016 | Phil Fersht

Finally... exactly four years after HfS introduced the concept of Robotic Process Automation (RPA) to the services industry, we can reveal to the world how our service provider and advisor friends are performing with the industry's inaugural HfS Blueprint report on Intelligent Automation.  

Back in 2012, HfS brought the topic of RPA (see link) to the attention of the sourcing industry by challenging its dependency on low cost labor made widely accessible through the ubiquity of global sourcing resources. The report, “Robotic automation emerges as a threat to traditional low‐cost outsourcing,” examined whether affordable, easy‐to‐develop software robots would eventually supplant many offshore FTEs to drive down the cost of outsourcing to an entirely new digital level. We concluded that robotic automation, or Robotistan as we affectionately called it nack then, had immense potential to be a highly disruptive and a transformative technology for buyers and service providers that would forge a whole new services industry landscape that incorporated truly global operating models that not only took advantage of globally available labor, but also accessible technology that could help digitize, streamline and standardize business processes. This wasn't only about making thing run more affordably, but this was about helping enterprises digitize their business operations more effectively to respond to their customers', partners' and employees' needs... as those needs arose.  That was then, and was just RPA.

Fast forward 4 years, and the broader notion of Intelligent Automation (IA) is not only top mind of BPO executives but across the whole industry as all the facets of IA are about decoupling routine service delivery from labor arbitrage. However, despite the high profile, the understanding of how IA is impacting the industry is at best blurred as the marketing communication is both scarce and often confusing. Normally, no topic is small enough to be hyped, to be shamelessly exaggerated. Yet, in the context of automation the usual suspects, the service providers, ISVs and sourcing advisor remain coy and largely on the sidelines. Probably the two key reasons for that are that the impact on revenue models is not well understood and the disruption among workforces, the fear factor, the connotations around the topic. As such as our own Lee Coulter aptly put it, in the context of IA we have something akin to the Tower of Babel. We have many languages but can’t understand each other. Enough reasons for our Intelligent Automation expert in residence, Tom Reuner, to take stock as to where the development of IA has advanced to.

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Tom, there appears to be a lot of noise around Intelligent Automation in the industry? Is the hype justified and where does it fit in strategically for buyers?

Noise is probably a good way of putting it, Phil. While many talk about automation or least refer to it, few actually provide insights about the market dynamics or even educate stakeholders about the many implications of IA. In my 20 years of being an analyst and consultant I can’t

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Posted in: Business Process Outsourcing (BPO)Cognitive ComputingDigital Transformation

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Wippirio could leave its Indian heritage competitors in the cold... if it gets this one right

October 20, 2016 | Phil FershtKhalda De Souza
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Consolidation in the SaaS services market continues apace with the boldest move yet by an India-headquartered service provider into the SaaS services market to date. Wipro has announced its intention to acquire Appirio, one of the strongest and most respected independent cloud services brands in the world for $500m. 

This is a significant deal in a services industry struggling to find fresh paths for future growth, with revenues slowing and the traditional model of outsourcing around SAP and Oracle environments commoditizing.  This has especially been the case with the Indian majors, whose leaderships are starting to panic with their hyper-growth days now a thing of the past. In our view, Wipro is stepping up to the plate right where the future growth lies, by adding significant capabilities around Salesforce, Workday and ServiceNow platforms, in addition to bolstering its

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Posted in: Business Process Outsourcing (BPO)IT Outsourcing / IT ServicesSaaS, PaaS, IaaS and BPaaS

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HfS strikes HR tech gold with Steve

October 19, 2016 | Phil FershtSteve Goldberg

Steve Goldberg (click for bio) is Research Vice President, HR Technology and Workforce Strategies at HfS Research

Back when enterprise time began and God was handing out the technology dollars, why was the Chief HR Officer always seemingly at the back of the queue?  Why did so many of our beloved enterprises become plagued with the clunkiest, funkiest legacy systems we never could have dreamed up in our worst nightmares? Especially when you consider the data critically and sensitivity of one's employees - their profiles, their health records, their compensation, their performance etc...

So it's no surprise that the advent of the SaaS based HR suite has been embraced like manna from Infosys heaven. Suddenly, our HR-technology plagued enterprises can hatch a plan to rip out the cancerous legacy and slam in something that's standardized, has hire-to-retire process that are sort of adequate, and doesn't require that cobol transformation project each time you try to push through an exception payment. So what better timing than for HfS to bring aboard Steve Goldberg - a true veteran of the HR tech world - to lead our thinking in the space and is freshly returned to his desk from the HR Technology show (read his blogs here).

Welcome Steve!  Can you share a little about your background and why you have chosen research and strategy as your career path?  

Sure Phil.  I've basically operated on all sides of HR Technology, so a real diversity of experiences.  This includes HRIS and Talent Management practitioners in the U.S. and Europe,

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Posted in: HR OutsourcingHR StrategyOutsourcing Heros

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The Intelligent OneOffice - the endgame for the new generation enterprise

October 15, 2016 | Phil Fersht

We're rapidly evolving to an era where there is only "OneOffice" that matters 

The OneOffice paradigm is all about creating the digital customer experience and an intelligent, single office to enable and support it. In a few months, we won’t be talking nearly as much about automation and digital technology as the critical “value levers” for operations, as they become an embedded part of the fabric of the future operations platform for new generation enterprises. Instead, we will be talking a lot more about OneOffice, where an integrated support operation has the digital prowess to enable its enterprise to meet customer demand - as and when that demand happens.

OneOffice is when the needs and experiences of the customer are front and center to the entire business operations, where the old barriers between corporate operations functions (often referred to as “front” and “back office”) are eroded and the constraints of legacy ERP systems are minimized to allow the business to invest in digital technologies and capabilities that enable it to cater proactively for its customer needs at the forefront of its markets and be a very fast responder if these needs change unexpectedly.

In short, OneOffice is the endgame, where the digital enterprise can work in real time to cater for its clients. It’s where the intelligence, the processes and the infrastructure can come together as one integrated unit, with one set of unified business outcomes tied to delighting customers.

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 Why is digital the new language of business?

In a nutshell, people simply want to operate digitally these days, whether they are an employee, customer or partner. They want to use interactive technology, mobile apps, social media, text, online chat etc. to get things done. People are used to using sophisticated digital technologies in their personal lives, and now expect to use them in their professional lives. Whether they are buying products, groceries, renting accommodation, ordering Starbucks, takeout, applying for mortgages, insurances policies etc., digital technology is the new language of business.

The issue facing many traditional business today is the fact that while the consumer is increasingly digitally sophisticated, many enterprises are still beholden to legacy technologies

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Posted in: Digital TransformationDigital OneOfficeThe As-a-Service Economy

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Dinner with Watson, Coulter and Holmes...what’s on the menu?

October 12, 2016 | Phil Fersht

If there's one character, on the client side, who's really take on the mantel of "Chief of the Robo-Buyers" it's Lee Coulter, the year's Chairman for the HfS Sourcing Executive Council.  

He probably won't appreciate the moniker, as his standards group has already dropped the term "Robo", but we'll call him that anyway...  So without further ado, let's hear more from Lee as he gathers his thoughts after the recent HfS Cognition Summit: 

Server: “Hi there, my name is HAL, and I will be your server. Can I get you started with something to drink? Sparkling water or something else perhaps?”

Watson: “I’d like a Hadoop martini, Drilled not Dremeled.”

Holmes: “That’ll be fine for me, too, but with some Flume and a touch of Pig”

HAL: “Sure. And have you had a chance to look at the menu? Do you know what you’d like?”

Watson: “I’d like the Presto with Storm please. Can I get a side of Sqoop as well?”

Holmes: “I’d love some Oozie with the Mongo preparation and Thrift as a starter.”

Server: “Very good. I am putting myself to the fullest possible use, which is all I think that any conscious entity can ever hope to do.”

A few weeks ago, at Phil’s event in White Plains, I got to hang out with some of industry's best and brightest. Of course, as we have been doing at HfS for years, we looked to the future for trends, disruption, and new capabilities that will influence what the SSO industry will be facing. I also had the privilege to hang out with Gerd Leonhard for a couple hours over a drink. That was a real treat.

Not surprisingly, there was a lot of talk about automation, machine learning, AI, cloud, aaS, and so forth. I remarked to Phil that gone are the days when we were wrestling with how to do transitions well, how to contract for BPO, location strategies, and even the years-long discussion about why we aren’t getting innovation from our service providers. In the last three years, the conversation has totally changed. Whether you are a Utopian or a dystopian, the

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Posted in: Cognitive ComputingIntelligent Automation

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Bye bye bricklayers?

October 09, 2016 | Phil Fersht

When you see major advances in disruptive robotics, such as the soon-to-be-unveiled Hadrian X, which claims to build a house in two days, moving four times faster than human construction workers, you realize that making invoice process workflows more automated is small-time, when it comes to achieving real robotic efficiencies:

The robot, named Hadrian after the Roman emperor who built defence walls in England, is being primed to work day and night, lay 1,000 bricks per hour, and could potentially build 150 homes in a single year. That's a lot of construction workers who may just not be needed anymore... and where you get genuine hard cost savings because you're removing actual labor, not merely automating some annoying manual steps in a process chain.

Posted in: Robotic Process AutomationThe As-a-Service Economy

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Let’s make Outsourcing Great Again!

October 02, 2016 | Phil Fersht

What a September that was the industry formerly known as “outsourcing”!

An "industry" still searching endlessly for an identity, a purpose and a value proposition, founded on more than dredging up cost savings through lower wages, tortuous conferences for bored sourcing advisors and pompous analysts who ask idiotic “questions” which end up confusing themselves… but finally we finding some salvation for our industry! Finally outsourcing doesn't have to fester on the scrap heap of legacy commoditized business models, akin to what happened to the telecom industry...

The State of Denial is over in the States. In White Plains for the HfS Cognition Buyers’ Summit, the mood was the most upbeat I have experienced in a long time – clients were peeping above the bed covers and saying “I want real examples, I want to touch and feel this automation stuff… tell me what I need to know and how this is done”. There as a stark admission that “our kids will be alright, they live and breathe what is needed in organizations today, its us mid-career folks who need to be worried – we’re the ones who need to reinvest ourselves if we are to stay relevant”.

Many of the Indian providers want to extend their stay in Denial a while longer. Then we took the HfS team over to Bangalore, India for NASSCOM’s 19th BPM (BPO) Strategy Summit, where most of the local service provider dignitaries were firmly hiding under their bed covers asking the same old question: “How can we sell higher value deals to the same clunky big enterprises without doing anything differently since we started doing this stuff 19 years ago?”.  Clearly most of these guys won't change course while they're still enjoying a (diminishing) 5% revenue

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Posted in: Business Process Outsourcing (BPO)Digital TransformationThe As-a-Service Economy

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