Monthly Archives: Sep 2021

RPA's true value is helping enterprises function commercially in the virtual economy, connecting legacy with the cloud

September 26, 2021 | Phil FershtTom Reuner

New insights by HFS Research from FORTUNE 1000 leaders provide the context of how we have to reimagine the automation narrative. It is not about the myopic view of one bot for every employee or bold claims of progressing toward the autonomous enterprise. It's about delivering immediate outcomes by designing workflows that take the RPA value out of the back office, where most RPA has been buried, and aligns its capabilities with helping the immediate commercial needs for the enterprise.  The need to create immediate solutions with the digital hyperscaler platforms is now far greater than ERP suites, as that is where the hyperconnected business environment operates, as opposed to the traditional back office.

RPA impacts when it helps enterprises function effectively in new virtual customer and supplier environments

Over half of organizations are realizing that it requires rapid investments in process innovation to be effective in virtual environments. Before and during the pandemic, organizations that deployed RPA as a band-aid on badly designed or even broken processes were found badly wanting.  Firstly, scaling fragile processes with RPA fixes is a huge challenge - they are brittle, and usually results in perpetuating a legacy environment.  Secondly, RPA can have much more impact when it is deployed to bridge existing commercial systems with digital platforms that are essential for survival.

The RPA fraternity has reacted to this by accelerating tie ups with the Hyperscalers. The most recent example is Blue Prism (see news) who significantly expanded capabilities across the AWS ecosystem. However, what is urgently needed are proof points of how we are managing the new complexity of cloud native deployments. If applications or processes are running on containers, the interdependencies and consequently the reasons for failure increase exponentially.

As our current in-progress study of the automation focus of the FORTUNE 1000 is already revealing, the majority of automation investments enterprises are making are with the digital platform giants (75%).  Only half of them still keep faith in ERP, while even less are focused on workflow suites and the RPA platforms themselves.  Hence, hooking up with AWS is a masterstroke as it dominates so much of the commercial supply chain in the virtual economy:

The onus shifts from fluffy "strategy" to immediate need fulfillment 

Addressing immediate critical needs at the business and supply chain end is happening... when you get into the whole commerce space the needs are immediate.  Like how does a consumer products firm take data from legacy supply chain systems into an AWS environment... not the sort of thing you can solve overnight.  You literally can't operate seamlessly in the virtual economy if you don't have the tools to link the old with the new, and RPA must be part of the toolbox to make immediate impact with the suppliers and customers which are the lifeblood for survival in a world where supply chains are falling apart at the seams, customer needs are immediate and stitching together processes from the front to the back office is the only way to function in today's hyperconnected markets.  As this new data shows us, more than half of today's F1000 organizations are under intense pressure to implement new capabilities to take them into the future, as opposed to clinging on to the past:

Bottom-line:  Automation is not a strategy it's the native discipline to keep the wheels on as you rush to the future

Organizations are gearing up to drive fundamental operational change. To stay relevant in the virtual world, application and processes must be designed in and run on the cloud. This requires not only a broader ecosystem of cloud native capabilities but a new mindset and culture of running operations. It is literally about operationalizing the OneOffice by driving change that finally delivers on overcoming the organizational silos and experience-led outcomes. Yet, we can only get there by converging IT and business operations and by leveraging IT and business automation

Posted in: Digital OneOfficeRobotic Process AutomationIntelligent Automation

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We’ve now got to get our sh*t in the cloud, but our data’s still crap...

September 07, 2021 | Phil Fersht

So what's our new cloud guru Joel Martin, saying about the frantic rush to the cloud these past few months?  Let's just hear it from the horse's mouth...

Phil Fersht, CEO and Chief Analyst, HFS Research: Hey, Joel. So how should we be thinking about cloud today? What do you think has changed in the last couple of years, and how should we think about the market as it starts to evolve?

Joel Martin, Research Leader, Cloud Strategies, HFS Research: The cloud is the architecture people are building their businesses on. As we move to these virtualized economies, virtualized businesses, and virtualized experiences, inside and outside the organization, the cloud is the only way companies can scale up and scale down their ability to reach those customers and deliver services. They can’t do that within their private data centers. And that’s the biggest differentiation of using hybrid or public cloud, is that scale versus continuing to invest in in-house IT talent, resources, and tools.

The thing that has changed Phil, is the speed of the network. With fiber, 5G, and gigabit speeds working in the cloud feels like you are working on a device on a local network. The pure speed at which we can create, collaborate, and innovate with others, with systems, and with a growing number of AI solutions is truly mind-blowing. And it’s become so simple to use. People don’t have to be technology literate to create solutions others can benefit from ease-of-use at scale is really what we are benefiting from these days.

Phil: Okay. So tell me about the flow of workloads in the cloud. We hear about private cloud, we hear about public cloud, and then we hear about hybrid cloud. What do you think is going to be the ultimate outcome with these workflows, and how are people going to engage with the cloud in the future?

Joel: There are two things I’ll focus on. First, looking at HFS’s recent Pulse survey data, and which workloads are moving to those different cloud models paints a very interesting picture. As you look at that data, and it looks like a black hole. There’s no clear direction of how firms are preferring to deploy, develop, or adopt workloads. Instead, companies are moving their workloads to the Cloud because they have to move; remaining complacent is not an option

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Posted in: Cloud ComputingDigital TransformationIT Outsourcing / IT Services

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Offshore has become Walmart... as Outsourcing becomes more like Amazon

September 05, 2021 | Phil Fersht

We're operating in a short-term period between the "world that was and the one we're emerging into"... there's some feel-good that we survived a pandemic, but the hard change, the very survival of companies' business models and peoples' careers starts now

And we can't get there without the help of partners to plug the skills and resource gaps that will help out businesses make this pivotal shift to survive in this Virtual Economy...

Services are increasingly about accessing skills that are not ubiquitous in a traditional offshore model

In the Virtual Economy, no one cares much about “offshore” as a strategy - it has become part of the fabric of managing a global operating model, where operations leaders just tap into whatever global resource they need to achieve their desired outcomes. This doesn’t mean that traditional “offshore” global delivery locations, such as India and the Philippines, are going bust overnight. But it does mean the playing field is leveling out as the need for emerging skills trumps the desire simply to reduce labor costs.

Our recent HFS Pulse Data of more than 800 major global enterprises is showing the focus on offshoring has sipped behind onshore, nearshore - and even most profoundly - agnostic-shore as enterprises look to realign their operating models:

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The Virtual Economy has shifted the operational emphasis to outsourcing partnerships

In fact, we've never seen a boom like this in demand for tech and business process services since the dot-com days.  What’s more, we believe the services market for the Virtual Economy

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Posted in: Business Process Outsourcing (BPO)Digital TransformationIT Outsourcing / IT Services

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