Saurabh Gupta
 
Chief Strategy Officer 
Learn more about Saurabh Gupta
RPA is dead. Long live Integrated Automation Platforms
April 15, 2019 | Phil FershtSaurabh GuptaElena Christopher

The biggest problem with enterprise operations today is the simple fact that most firms still run most of their processes exactly the same way as they did 20/30/40 years ago, with the only “innovation” being models like offshore outsourcing and shared service centers, cloud and digital technologies enabling those same processes to be conducted steadily faster and cheaper.  However, fundamental changes have not been made to intrinsic business processes – most companies still operate with their major functions such as customer service, marketing, finance, HR and supply chain operating in individual silos, with IT operating as a non-strategic vehicle to maintain the status quo and keep the lights on.

Enter the concept of Robotic Process Automation (RPA), introduced to market in 2012 via a case study written by HFS and supported by Blue Prism, which promised to remove manual workarounds and headcount overload from inefficient business processes and BPO services.  However, despite offering clear technical capability and the real advantage of breathing life into legacy systems and processes, RPA hasn’t inspired enterprises to rewire their business processes – it’s really just helped them move data around the company faster and require less manual intervention.  In addition, most “RPA” engagements that have been signed are not for unattended processes, instead, most are attended robotic desktop automation (RDA) deployments. Attended RDA requires a loop of human and bot interplay to complete tasks.  These engagements are not the pure form of RPA that we invented – they are a motley crew of scripts and macros applying add band-aids to messy desktop applications and processes to maintain the same old way of doing things. Sure, there is usually a reduction in labor needs - but in fractional increments - which is rarely enough to justify entire headcount elimination. Crucially, the current plethora of “RPA” engagements have not resulted in any actual “transformation”. 

The major issue with RPA today is that it is automating piecemeal tasks.  It needs to be part of an integrated strategy

Real research data of close to 600 major global enterprise shows just how not-ready we are to declare any sort of robo-victory. In our recent survey of 590 G2000 leaders, only 13% of RPA adopters are currently scaled up and industrialized. Forget about leveraging RPA to curate end-to-end processes, most RPA adopters are still tinkering with small-scale projects and piecemeal tasks that comprise elements of broken processes.  Most firms are not even close to finding any sort enterprise-scale automation adoption.

RPA provides a terrific band-aid to fix current solutions; it helps to extend the life of legacy. But does not provide long-term answers. The handful of enterprises that have successfully scaled RPA across their organizations have three things in common:

  1. A unifying purpose for adopting automation,
  2. A broad and ongoing change management program to enable the shift to a hybrid workforce, and
  3. A Triple-A Trifecta toolkit that leverages RPA, various permutations of AI, and smart analytics in an integrated fashion.

So HFS is calling it as we see it. RPA is dead! Long live Integrated Automation. And by integrated we mean integrated technology, but also, and all importantly, we mean integration across people, process and technology supported by focused objectives and change management. Integrated Automation is how you transform your business and achieve an end-to-end Digital OneOffice.

Integrated Automation is not about RPA or AI or Analytics. It is RPA and AI and Analytics.

Business problems are not entirely solved by one stand-alone technology but by a combination of technologies. While only 11% of the enterprises are currently integrating solutions across the Triple-A Trifecta, there is emerging alignment. The supplier landscape is also starting to realize that clients will buy integrated solutions (see Exhibit 1) and examples below:

  • RPA products are seeking to underpin AI and data management capabilities. WorkFusion was arguably the first to combine RPA and AI with its “smart process automation” capability. Other subsequent examples include Automation Anywhere with its ML-infused IQBot, Blue Prism announced its AI Lab to develop proprietary RPA-ready AI elements, and AntWorks embeds computer vision and fractal science in its stack to enable the use of unstructured data. What these products having in common is their use of robotics to transform tasks, desktop apps and pieces of processes.  Hence, we need to refer to these "RPA" products as Robotic Transformation Software products which is a far more appropriate description.
  • AI and analytics focused products are starting to embrace Robotic Transformation Software, instead of undermining it. IPsoft launched 1RPA with a cognitive user interface. Xceptor’s data-led business rules and AI-based approach to automation leverage RPA to help extend its functionality. Arago is starting to go to the market where it can help orchestrate RPA capabilities within its platform.  
  • Enterprise software products are integrating the triple-A trifecta capabilities in their products. SAP Leonardo aspires to harness the emerging technologies across ML, analytics, Big Data, IoT, and blockchain in combination. It also acquired RPA software company Contextor (late 2018) similar to Pega when it acquired OpenSpan in 2016 adding RPA functionality to its customer engagement capabilities.
  • System Integrators are orchestrating the Triple-A Trifecta across multiple curated products. This typically combines some of their IP and service capabilities. Accenture launched SynOps in early 2019, offering a “human-machine operating engine.” Genpact’s Cora, a modular platform of digital technologies, similar to HFS’ Triple-A Trifecta, is designed to help enterprises scale digital transformation. IBM’s Automation Platform includes composable automation capabilities that orchestrate responses and alerts between Watson and Robotic Transformation Software solutions. KPMG’s IGNITE brings RPA, AI and analytics tools together with KPMG IP and services.

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Integrated Automation is not just about Technology. It is Technology + People + Process.

The real point of Integrated Automation is actually to move beyond the tools. Yes, the Triple-A Trifecta offers more functionality, but it still does not work unless you change your business, your people, your processes.  Integrated automation is the effective melding of technology, talent, organizational change, and leadership to get to the promise land. It requires the integration of the Triple-A Trifecta change agents in your toolbox and their application across the original trifecta of people, process, and technology. If you keep throwing technology at a business problem, you will have more technology rather than a solution.

Technology has overpowered the discussion today without adequate focus on people and process:

 

Source: HFS Research 2019

Integrated Automation is not a Product or a Service. It is a Product and a Service.

Just like we realized that throwing bodies at a problem does not solve the problem, we need to recognize that merely hurling software at business process will not drive transformation. The real genius lies in understanding what to use when and how. The software also needs to come with support and services. Otherwise, we’re just selling more snake oil and magic. Strategic and collaborative relationships of the future will be formed by providers that can consult as a trustworthy advisor and execute as an “extension” of clients’ operations. Enterprises need partners to drive innovation, contribute investment, apply automation and new ideas, and focus on delivering business outcomes – and that requires a combination of services and software. An ecosystem approach with symbiotic relationships between service and product companies is a must-have ingredient for automation to succeed and truly be transformative. It is imminently clear that no one can be everything to everyone.

Adoption is not the measure of success for Integrated Automation. It is about Change Management.

Fifty-one percent of the highest performing enterprises see their cultures as holding them back in the digital transformation journey, while only 36% of the lowest performing enterprises identify culture as a problem to progress. Providers need to offer change management approaches that are agile, measurable, and iterative to be impactful. Scaling up digital initiatives and enabling the right governance models are also critical points. The ability to codify “business outcomes” in contractual agreements, pricing structures, and performance measures is also a vital element to drive change. While there is no nirvana around pricing, it needs to be implemented based on every client’s unique requirements and context. The flexibility to put skin in the game with innovative and non-linear commercial models is essential to drive real change.

Integrated Automation will not be effective with a functional approach. It requires an end-to-end “OneOffice” strategy.

Less than 12% of the enterprises we surveyed have an enterprise-wide approach to automation. This strong focus on task-level and process-level automation remind us that automation often takes place in functional silos, with parallel but unconnected initiatives. The ability to balance task-specific and process-specific pilots and production instances with broader enterprise mission and vision is certainly daunting, but it is precisely what needs to occur to enable scaled and successful automation programs.

The collaboration between business and IT is another crucial issue. While automation initiatives require IT involvement, the programs are generally impacting and enhancing business processes—which requires participation from business constituents who understand the functions in question. The ideal leadership mix, then, is a combination of IT and business. However, our data shows that just one-fifth of respondents have created integrated IT and business leadership teams to grapple with automation strategy and deployment.

Bottom Line: Integrated Automation utilizes the power of AND, not OR! 

We are lucky to live at a time where we have a multitude of established and emerging change agents at our disposal: global sourcing, design thinking, Robotic Transformation Software, AI, Analytics, IoT, blockchain among others. But, unfortunately, most of the discussions in the market end up becoming a comparative discussion versus integrative discussion – man versus machine, offshore versus automation, RPA versus AI, consulting versus execution, and so on. These change agents must work together rather than operate in silos to solve real business problems. The power of AND is much greater than OR and Integrated Automation is all about the power of AND. Thus, RPA is dead. Long live integrated automation!

Will Infosys revitalize the mortgage processing market with ABN Amro’s Stater, or is this merely sweating a commodity asset?
March 30, 2019 | Phil FershtReetika FlemingSaurabh GuptaElena Christopher

Infosys has just announced a joint venture with ABN Amro for mortgage administration services, where it will acquire a 75% stake in Stater N.V., a wholly owned subsidiary of ABN AMRO Bank N.V., that offers mortgage services across the value chain including origination, servicing and collections. The transaction is valued at $143.53 million and is Salil Parekh's second acquisitive move in Europe since his appointment as CEO a year ago. Clearly, bolstering its European presence is a big deal for INFY in 2019, gaining more "zero distance" impact with European clients, adding more innovation centers, and strengthening its local footprint and brand across Europe. 

Has Infosys finally gone all "sensible" on us?

Mortgage processing is one of the most commodotized 3rd party banking offerings, where services are heavily outsourced to offshore locations, the technology platforms are mature and robust, with a lot of focus on eliminating manual processes over the last 5-10 years.  In addition, all the major banks have been signed up. So is this the new Infosys?  Making moves

Read More »

Accenture, IBM, EY, KPMG and Cognizant lead the digital change imperative
February 11, 2019 | Phil FershtSaurabh GuptaMadhuparna Banerjee

Let's get to the point: most of the past five years have borne witness to our industry postulate on the why and what of digital (and many still do).  It's time to focus on the how.

Unlike the wild grandiose claims from most services and tech providers that everything they do, these days, is "Digital"... it is far, far more than simply investing in new technologies.  Digital is about embracing interactive technologies, mobile, social and analytics to drive new revenue and customer experiences, as well as harmonizing business silos to support these digital outcomes.

However, success in digital initiatives is much less about technology adoption... and much more about people and culture, and the ability to manage that change. Code errors can always be fixed, workflows stitched together, apps integrated... but taking enterprise teams through the whole volatile experience, helping their staff learn new techniques, creating an environment where an enterprise can keep evolving on its own accord, and not rely on armies of consultants until perpetuity, is how we evaluate the performance of today's ambitious service providers. 

With this evaluation objective in mind, HFS shortlisted and assessed 10 leading providers: Accenture, Capgemini, Cognizant, EY, Genpact, IBM, Infosys, KPMG, TCS, and Wipro across the following five dimensions of digital-change prowess:

1. Embracing emerging change agents;

2. Creating true partnerships;

3. Promoting the principles of OneOffice;

4. Enabling change management for digital labor;

5. Driving real business outcomes.

Click the table to view more detail

For a limited time, we are making our new report: "The Top 10 Digital Change Management Service Providers" completely free to HFS subscribers. (Click to download)

The cocktail of SAP (ERP), Qualtrics (UX), and Contextor (RPA): Tastes like the OneOffice, but lacks one critical ingredient - RPA experience
November 21, 2018 | Phil FershtSaurabh GuptaElena Christopher

The software giant and world’s premier system of record, SAP, was on an acquisition spree over the last two weeks. First it spent $8billion on the acquisition of Qualtrics, a User Experience (UX) software that helps to collect and analyze data for market research, customer satisfaction and loyalty, product and concept testing, employee evaluations and website feedback. And then it acquired Contextor, a small little-known France-based Robotic Process Automation (RPA) product to augment SAP Leonardo’s intelligent technologies portfolio.

It appears that SAP is starting to mix a heady cocktail that enables its systems of record with the triple-A trifecta (AI, Analytics, and RPA) and embedded UX capabilities. Tastes like the OneOffice?  

Well, definitely for SAP mighty front office portfolio, but the huge disparity between the $8bn splurged on Qualtric and - whatever negligible sum was invested in Contextor - does not excite us that SAP is in anyway deadly serious about dominating the back-to-middle office automation space, which is critical to knit together disparate processes and systems. 

What is the Digital OneOffice and why it matters?

The Digital OneOffice is where teams function autonomously across front, middle and back office functions to promote broader processes with real-time data flows that support rapid decision making. It’s where front, middle and back offices will cease to exist, as they will be, simply, OneOffice:

 The HFS Digital OneOffice

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The OneOffice Framework is a guide to align the entire organization to driving a customer experience (CX) that gives them a competitive edge.  This means breaking down the siloes between front, middle and back office so that information and data flows freely and enterprises are able to predict and cater to customer needs.  OneOffice is realized when the needs and experiences of the customer are front and center to the entirety of business operations.  This means enabling automated data flows between the customer interface, your customer-facing staff and operations staff in order to create common goals and outcomes across the organization. Hence the addition of Qualtrics has terrific potential to bridge critical gaps between customers and employees, and effective RPA provides a real gateway to digitize processes and create a gateway to broader AI possibilities

Qualtrics and Contextor  are attempts to plug SAP’s solution gaps in the OneOffice vision

The reason behind the success of Qualtrics (and the driver for the 20X PSR!) is that Qualtrics-driven UX is not about just a fancy UI. Qualtrics enables SAP to offer solutions that combine front and back-office data. SAP is already a leader in managing organizational transactional data but lacked the capability to understand its implications on customer satisfaction, loyalty, and experience. With Qualtrics this is now a distinct possibility.

Contextor’s addition is focused on providing the missing ‘A’ in SAP’s Triple-A Trifecta capabilities. HFS believes the “Holy Trinity” of service delivery is at the intersection of the Automation, Analytics, and AI or the Triple-A Trifecta. SAP Leonardo already has a portfolio of technologies across Machine Learning, Analytics, IoT and blockchain but lacked the basic automation capabilities that Contextor now provides. Intelligent RPA capabilities are scheduled for inclusion into SAP S/4HANA in the first half of 2019, with other SAP applications to follow.

SAP will still need to justify why embedded capabilities will be better than standalone products

Automation and UX are hot areas with multiple robust Commercially-Off-The-Shelf (COTS) solutions that can integrate well with SAP environments. SAP itself is heavily invested (and rightly so) in building its own ecosystem with the SAP App Center where third-party solution providers can offer solutions that work seamlessly with SAP environments. In today’s world, it is unclear how much more an embedded functionality is worth compared to an ecosystem approach. SAP will need to justify why and how the acquired capabilities will offer a unique or better value proposition than standalone products. 

Qualtrics brings to the table a differentiated value proposition, especially when combined with SAP’s existing operational data and transaction processing market share. But only in theory. Integrated value proposition demonstrated through tangible use cases will be the real proof. The cultural mismatch between SAP and Qualtrics (as pointed out by Dennis Howlett here) will make it even tougher.  

When it comes to RPA, the software giants have been largely MIA. Before SAP’s Contextor acquisition, Pega is potentially the only other software player that recognized the power of RPA with its acquisition of Openspan RPA in 2016. It initially embedded bots into its BPM suite of applications and now gives away unlimited robots with its Pega Platform.

Contextor itself is a very small player in the fast-growing RPA product market dominated by Automation Anywhere, Blue Prism, and UiPath. Power users of Contextor shared with HFS that it is a complex-to-use tool, requires coding experience, and has limited AI hooks. SAP opted not to acquire any of the big three RPA players (perish the thought at their hefty price tags!) and will possibly get basic RPA capabilities with Contextor. However, it will still need to convince clients about the advantages of using embedded RPA capabilities because the stand-alone RPA products can offer the same (perhaps even better). What’s so compelling about Contextor-driven SAP that requires a course correction from clients who are already on their intelligent automation journey? As with Pega, perhaps the answer lies in bundles bots as give aways.

The other open question around Contextor is how SAP decides to position it internally and with clients. Consider the system integration space. APIs are real-time and resilient but RPA-driven integrations are brittle. IT purists love APIs but businesses don’t really care as long as it works. In reality, enterprises need both options as an “API-everything” world is impractical or at least not terribly timely. But will SAP look at RPA as a viable long-term option for automation or just as a temporary “duct-tape” till it gets the more robust (and expensive) functionality developed within the core application?

Bottom-line: SAP’s acquisitions of Qualtrics and Contextor demonstrate that UX is not limited to the front office, but we question the ability to drive OneOffice integration with a paltry investment in automation 

Qualtrics enables the integration of back-office and front-office data while Contextor will enable automation from front to back within the SAP environment and outside. This is the HFS OneOffice vision where organizational silos start to converge to focus on real-time customer and employee engagement.   

However, the deep process requirements on the client side that are critical to find success with RPA, coupled with strong services partnerships needed to provide the technical expertise, reskilling and change management do not bode well for SAP to find much (if any) success with RPA.  SAP has not proven particularly successful supporting complex process transformation needs of clients outside of the traditional SAP product templates (its BPO alignment division was quietly wound down several years ago) and the services partnerships that have been developed by Automation Anywhere, Blue Prism and UIPath are lightyears ahead of anything Contextor has forged (and some leading consultancies in the space had never even heard of the French firm).  While it is understandable that SAP did not want to invest multiple-billions in a leading RPA solution, we believe it could have targeted a more established middle tier solution, such as Redwood (which is specialized with the SAP template), Softomotive, Kofax or Kryon.  

While it is easy to criticize the Contextor investment as lacking real teeth, at least is it a much larger step forward to bring "big iron" ERP into the robotic process automation age, when you compare it with the complete void of RPA investments yet to be seen from the likes of the SaaS giants Oracle, Salesforce, Workday and the AI platform movers Microsoft, Amazon, IBM and Alibaba.  Now what to expect to see next as this industry stumbles into consolidation....

1. #AutomationAnywhere, 2. #BluePrism, and 3. #UiPath make up the top three in the inaugural HfS Top 10
September 17, 2018 | Phil FershtSaurabh Gupta

The rise of RPA is nothing short of spectacular as the market closes in on $2bn this year. It has captivated the attention of the digital operations executives with the promise of cost-savings beyond labor arbitrage, cost avoidance by extending the life of legacy IT, quicker implementation than traditional IT projects, business-user friendliness, auditability and compliance, straight through processing, and let’s be honest – terrific marketing!

And here is the actual report:  Completely free to celebrate our first "HFS TOP TEN REPORT"

However, confusion around RPA deployments is also rife. There are growing questions whether RPA can deliver on the promised ROI and outcomes. Most RPA initiatives continue to be small and piecemeal. Truly scaled RPA deployments are rare. The industry is still struggling to solve challenges around the process, change, talent, training, infrastructure, security, and governance.

With the mission to demystify this confusion and uncover the truth to successful RPA deployment, we conducted a first of its kind RPA CX research to develop the list of “HFS Top 10 RPA Products” (See Exhibit 1). The research is based on interviews over 350 clients and product partners across the ten leading RPA products across:

  • Ability to execute based on product functionality (Ease of integration with legacy IT, Unassisted automation functionality, OCR functionality, Scheduling functionality, Development tools, Exception handling, Required set-up coding, Ease of product configuration); integration and support (Service extensions and connectors, Documentation, Certification program, Training and customer support, Experience in serving multiple geographies, Adoption across multiple industries, Required IT skill-sets), and security and governance (Uptime and SLA commitments, Version control and upgrade management, Centralized controls, Regulatory compliance, Enterprise security, Disaster Recovery (DR) and Business Continuity Planning (BCP))
  • Innovation capability based on flexibility and scalability (Accommodating process / environment changes, Licensing model flexibility, Ability to handle multiple processes, Workflow templates and library of processes, Handling multiple inputs) and embedding intelligence (Processing structured, semi-structured, and unstructured data, Operational Analytics, Dashboards, and Artificial Intelligence (AI) capabilities)
  • Voice of the customer based on the RPA products ability to drive business outcomes (Realizing cost savings, Speed-to-market, Overall satisfaction, and Client reference ability)

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Key highlights from the HFS Top 10 RPA Provider assessment

  • Overall RPA Client Experience has been 'Good.' The aggregated average CX scores across all assessment dimensions is three on a scale of 4 implying a good overall experience. For most clients, RPA has created value in addition to reducing costs (just not as much and as fast as they heard in the first sales pitch!). For almost all the RPA products assessed, security, controls, accuracy, integration, and out-of-the-box functionality performs as promised. Basically, RPA works!
  • Getting RPA “production ready” is not as easy as promised. The client experience with the amount of coding/configuration required is rated amongst the lowest. Management of version control and upgrades as well the training and support offered by RPA providers was also sub-par. The primary reason behind this is a classic expectation mismatch – the RPA providers oversold and overpromised, raising the client expectations beyond normal, that then resulted in less than required client investments towards process and change management. The disappointment associated with RPA is not about the technology itself.
  • RPA is not very smart (at least as of today). The dimension around embedding intelligence in RPA was rated amongst the lowest by clients. There is considerable confidence in RPA’s ability to process structured data but drops down significantly when asked about unstructured or even semi-structured data. Clients are not convinced about the Artificial Intelligence (AI) capabilities of their RPA products. The good news is that most RPA providers recognize this and are investing in building out capabilities especially around Machine Learning (ML). At HfS, we believe that the holy grail of service delivery will be at the intersection of the Triple-A Trifecta – Automation, AI, and Analytics

Bottomline. RPA works but is not a magic wand. Best practices are emerging

Based on our in-depth conversations with the RPA clients, we developed a set of best practices that you need to keep in mind when implementing any of the RPA products:

  • RPA is not a silver bullet. Keep expectations realistic
  • RPA cannot automate everything. Choose the use-case wisely
  • RPA success is not about technology. Treat it as a change agent
  • Automated processes are still processes. Invest in documentation, especially as for complex automations
  • RPA vendors are product companies. Do not expect them to behave like service providers
  • Do not side-step your IT folks. RPA success requires IT-business collaboration
  • RPA products are still nascent. Do not short-change security and testing
  • RPA is not a one-time exercise. Change management and ongoing governance and the keys to continued success
  • RPA is not the holy grail. Business outcomes driven by integrated solutions are
  • RPA does not solve your data issues. Data-centric mindset is the key
  • RPA offers more than cost savings. Think beyond cost-reduction and figure out how to measure success

And here is the actual report:  Completely free to celebrate our first "HFS TOP TEN REPORT"

Tinker, experiment, explore, then disrupt: The Hyper-Connected Enterprise will be driven by Intelligent Automation.
August 02, 2018 | Phil FershtSaurabh Gupta

As business operations have advanced through several inflections points over the last three decades, the core component at the heart of these changes has been the emergence of digital interactivity driving the hyper-connected global business – only made possible by intelligent automation.

Digital connectivity has transformed both front and back offices over the last three decades. The key now is to integrate and automate these activities to place the customer at the core of business operations

As you can see in our (below) "voyage to hyper-connected, interactive enterprise" we have leveraged digital connectivity to drive productivity and innovation across both the back and front offices of our organizations. Offshoring and outsourcing became a huge bi-product of digital connectivity to run business processes and apps remotely to save Western businesses huge costs through global labor and centralization of resources.

However, until recently, most of these activities have been restricted to improving efficiencies and reducing costs.  At the front end of the business, the advent of ecommerce hit its stride in the late '90s, where customers could communicate digitally with organizations to make purchases, make genuine inquiries and get connected with others with like-minded business interests. Where automation comes into play is being able to pull together these disparate front and back office activities into one single office (aka the HFS Digital OneOffice), where customer needs are placed front and center across all business processes, where staff performance can be measured on delivering customer driven outcomes, where the entire business operations are in-tune with their customer needs... and superior to those of their competitors to stay ahead of the game.  

The urgency to be Hyper-Connected dictates why we have to drive Automation with real Intelligence

“Basic digital” capabilities (where most companies are today) make it possible for business operations to respond to their customers as those needs happen.  Emerging capabilities in data analytics tools, machine learning and cognitive computing are making it possible to anticipate changing customer needs before they happen, where shifts in global supply chains, market and competitive dynamics, economic or political changes, compliance or regularity issues, all combine to change customer behavior. 

The more intelligent your business operations, the more you can stay ahead of the game, but none of this is possible if your processes are not automated effectively to create this knowledge for your business operators:

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Once the digital baseline is created, enterprises need to create more intelligent bots to perform more sophisticated tasks than repetitive data and process loops. This means having unattended and attended interactions with data sources both inside and outside of the enterprise.  

From Experimenting to Disrupting:  Cracking the Intelligent Automation code in Four Stages

The industry is struggling to solve challenges around the process, change, talent, training, infrastructure, security, and governance. There is deafening noise and hype around Intelligent Automation, but there are very few enterprises that have cracked the code of driving transformative impact by leveraging Intelligent Automation at an industrial scale. Why?

Our research and ongoing conversations over the last six years (remember our ‘Greetings from Robotistan’ in 2012?) in the automation space has allowed us to interact, help, and follow automation initiatives at several global 2000 enterprises. And we leveraged this extensive experience to develop HFS’ Intelligent Automation Maturity Model (see exhibit below).  Our experience suggests that the organizational maturity and the resultant impact from intelligent automation typically follow four stages of evolution:

  1. The experimenter – trying out new ideas, methods, or activities. The intelligent automation journey often starts with some maverick individuals in some corner of the organization playing with different technologies. There is no real strategy at this stage, just passion. The objective is simply driven by automating a particular task that is innately boring or transactional but still time-consuming and inefficient. Different experimenters start at different places across the Trifecta. It is not necessary to start with basic automation and then advance to AI-based automation, but experimenter’s automation solutions are typically piecemeal.  
  2. The tinkerer – trying to improve something in a casual or desultory way, often to no useful effect. The early successes from experimentation often result in the most frustrating stages of the intelligent automation maturity model. The tinkerers start to copy and paste what worked in experimentation for everything else. But if all you have is a hammer, everything looks like a nail. Failures are widespread at this stage, but tinkerers who don’t give up are the ones who eventually succeed to move to the next step. This is the stage where enterprises are trying to find some method to the madness but often with limited success. The tinkering stage is exemplified by rhetoric winning over reality!
  3. The explorer – charting out new territories. As reality dawns after extensive tinkering, enterprises start to realize the different pieces of the puzzle. They start investing in organizational management (often through COEs and a hub-spoke model), recognize that they need to invest in multiple technologies across the trifecta to solve problems and start tackling end-to-end processes versus individual tasks.
  4. The disruptor – radically changing the status quo. Intelligent Automation transcends from a program and becomes an enterprise-wide movement at this stage. Disruptors can bring to bear integrated solutions that combine the power of automation, analytics, and AI. Several automations at this stage are scaled up, and there is a high degree of confidence in scaling up others. It is only at this disruptor level when the promise of intelligent automation starts to become a reality.

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The Bottom-Line:  The more hyper-connected we get, the more this is about people, purpose, and planning - and less about whichever shiny new gadget is the flavor of the month

While the industry is busily adding fancy new words to their résumés and job titles, we have to remember that our technological journey is gradual.  Change comes slowly and incrementally and you can't just rip off the proverbial BandAid, hire a bunch of Millennials and Gen-Z kids... and it's mission accomplished. As the Hyper-Connected journey illustrates, it took 30 years to get where we are today - and that's because both front and back offices needed to go through major, secular changes to become efficient and digitized.

But the next phase is not a trade-secret - this "Future of Work" is merely a phased transformation of the present.  Dumb robots evolving into intelligent assistants... ineffective supply chains plagued with manual breakpoints becoming fluid, autonomous and intelligent - with the ability to interact with other supply chains.  Quantum computing and blockchain emerging to challenge the very logic of TCP/IP and computing architectures. But to get there, we need to be experimenting, tinkering, exploring and disrupting with the kit that available today to get our organizations in a place where all these far-flung innovations can have some real possibilities.  

So let's have less talk about the future of work and focus on the present... we know where we are and what we need to do.  So let's do it!

Accenture, IBM, Cognizant, Infosys, Wipro and TCS lead the first Digital OneOffice Blueprint
June 10, 2018 | Phil FershtMelissa O'BrienAnirudh PillalaSaurabh Gupta

Digital is all about an organization's ability to respond to the needs of their customers as those needs happen - or even be smart enough to anticipate those needs before they happen. This is all enabled by interactive technologies to create those touchless interfaces with the customers.  Smart analytics and AI enable organizations to anticipate these needs based on the ability to recognize patterns and inferences over time, but nothing can really substitute for human intelligence to bring customers, suppliers and employees closer together, unimpeded by frustrating silos and legacy processes. 

Remember, every broken process chain, or poorly converged dataset, slows down an organization's ability to do business in real-time and stay ahead of its market.  Traditional barriers between front, middle and back offices hinder the true ability of companies to operate in this real-time, responsive and anticipatory digital fashion, which is why we coined the term "OneOffice", where the unification of digital business models, intelligent automation, analytics and creative talent is happening before our very eyes.

The HfS Digital OneOffice Framework (see below) describes how organizations must integrate their digital customer interfaces with their operations in order to fulfill and anticipate their customers' needs. It is the organizational end-state to survive and succeed in a world where digitized processes dictate how responsive, agile, cost-effective, predictive and intelligent firms have to be to stay competitive.  

To this end, we have delved deep into all the four dimensions of the Digital OneOffice, and conducted deep analyst discussion to aggregate service provider performance at delivering the sum of the Digital OneOffice parts:  

  1. Digitally driven front office
  2. Digital underbelly
  3. Intelligent digital support functions
  4. Predictive digital insights

HfS Premium subscribers can click here to access their full copy of the 2018 Blueprint Report: Digital OneOffice Services

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So how did the Winner's Circle service providers fair?

Accenture

Strengths

  • Well-rounded portfolio across OneOffice: Accenture has the best performance overall across the OneOffice portfolio, and a breadth of industry expertise to complement it. Accenture placed in the Winners' Circle for each of the Blueprint studies used to compile this OneOffice assessment.
  • Strong marketing operations capabilities to support integrated digital OneOffice offerings.  Accenture has 16,000 business-focused staff dedicated to delivering digital marketing assignments - a considerable asset that goes well beyond the firm's IT delivery.
  • Strong intelligent automation capabilities. Acquisition of GenFour and exciting partnerships, with significant investments, with the likes of Automation Anywhere, Blue Prism and IPSoft.
  • Winning with thought leadership: Accenture is well-known as a thought leader across many of the change agents as well as within individual industries. 
  • C-Suite relationships beyond IT.  Digital business and intelligent automation decisions are largely being driven by both IT and business C-Suite executives in the Global 2000.  Accenture has the combination of strategic relationships outside of IT, in addition to the managed services execution. 
  • Leveraging creative assets for CX and UX design: Accenture has developed an industry-leading focus on becoming a customer experience expert, as evidenced by its 30+ design agency assets, by the broadest portfolio of digital design assets in the services industry (click here for a full list of digital M&A in services.)

Challenges

  • Size can work in its disfavor: Its size and success have given Accenture a reputation as a premium, high cost, and less responsive organization. In particular, for smaller companies, just this perception in the market can steer buyers instead toward more niche specialized agencies and the attention, flexibility, and experience they receive from a smaller provider.
  • Finding the right culture balance: Accenture is well known for its results-driven, traditional consultancy culture, which will need to be balanced out or effectively blended with the more left-brain focused acquisitions in order to retain creative talent and remain generally effective.
  • Proving to the industry it can deliver the end-to-end Digital OneOffice portfolio: There is no doubt that Accenture can pick up strategic work and execute for clients, but being able to demonstrate to the industry it can deliver both the strategic design integrated with complex operational delivery - at scale - is still in its infancy.  Many of its competitors will fight hard for execution work where Accenture is delivering the high-end design and consulting. It needs to demonstrate the "one-stop OneOffice shop" is where it wins.

IBM

Strengths

  • Strong intelligent OneOffice offering: Market leading capabilities to drive the OneOffice underbelly (automation, security, cloudification) and neural networks (AI, smart analytics, blockchain, and IoT). Impressive development of credible global automation capability and several notable early wins.
  • Portfolio breadth: End-to-end and scaled IT and business process services across front, middle, and back-office.
  • Horizon 4 investments: Very strong investments and IP in horizon 4 (and beyond) technologies that will shape the future (e.g., Quantum Computing).
  • Design Thinking: Has made some considerable investments in recent years, but needs to align more aggressively with OneOffice approach
  • Watson: The analytics/cognitive powerhouse has a significant role to play as a cognitive virtual agent, an analytics resource that has huge scalabiity and a long-term investment area for firms with deep interests in their cognitive capabilities.

Challenges

  • Size can be a disadvantage: IBM is a large and complex organization, which makes it hard to seamlessly deliver all that it has to offer.
  • Translating tech to business outcomes: IBM is often perceived as a technology powerhouse, but one lacking the business translation and context to successfully apply emerging technologies.
  • Agility: Lacks the nimbleness and flexibility of smaller players.
  • Focus on cognitive may impede its ability to compete for design-focused end-to-end deals:  IBM has substantial credibility to drive analytics-driven, cognitive/automation projects, but its lesser focus (over the last couple of years) on true digital design may see it lose out to firms such as Accenture and Cognizant, where digital is firmly established at their core.

Cognizant

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The why, the what and the how of the HfS Digital OneOffice
May 21, 2018 | Phil FershtSaurabh Gupta

We've talked a lot about the HfS Digital OneOffice operating framework - it's the HfS vision for the business operations endstate for digital organizations:

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The Digital OneOffice is where teams function autonomously across front, middle and back office functions to promote broader processes with real-time data flows that support rapid decision making. It’s where front, middle and back offices will cease to exist, as they will be, simply, OneOffice.

Why Digital OneOffice?

Digital organizations must have an operating framework that maps out how they have to operate in the future. Traditional operating models, while creating some incremental productivity value if managed effectively, struggle to drive the unification of digital business models with emerging technologies across a business's operations:

  • A true digital business cannot succeed without unifying front, middle, and back office
  • Traditional approaches (organizational restructuring) have failed to have a purpose beyond incremental efficiency / productivity 
  • The Digital OneOffice is the organizational end-state to survive and succeed

What is the Digital OneOffice?

The Digital OneOffice focuses on real-time customer and employee engagement. OneOffice is:

  • Collaborative (Collective outcomes)
  • Unified (Without silos and hierarchies)
  • Dynamic (Agile and scalable)
  • Intelligent (Predictive, not reactive)
  • Responsive (Real-time)
  • Simple (Touchless and autonomous)

How to achieve Digital OneOffice?

The Digital OneOffice is the framework for achieving a true digital organization:

CX is not just fancy UI. Make CX the core of all your business operations from front to back.
Cost reduction is not a strategy. Drive organizational alignment and metrics that measure value creation, not only cost reduction. 
Weed out the people unprepared to change. Invest in an inclusive talent strategy, based people who want to learn and share.
Your tech infrastructure is everything. Automate, digitize, cloudify, and secure your organizational underbelly.
Build co-innovation relationships and shed legacy relationships. The partners who got you’re here may not be the ones to take you where you want to go.
Stop kicking the intelligent technology can down the road. It’s all here and now you need to make decisions on where you go with it
Stop thinking about the Future of Work. It’s already here...act now!

The Bottom-line: Traditional operating models have been focused on incremental improvements, not creating genuine frameworks for digital organizations

While traditional models such as outsourcing, shared services and global business services promote incremental efficiencies based on centralization of support functions and use of offshore to lower operating costs, none of these models have provided an ideal endstate for ambitious digital organizations.  Without having a true picture of how you want to operate in the future, you will be perennially be searching for short-term fixes to drive out further costs, and never be able to map out a strategic journey that will bring together your two most critical assets: your customers and employees.

Unveiling the HfS 1-2-3-4 Research Agenda
August 26, 2017 | Phil FershtJamie SnowdonBram WeertsSaurabh Gupta

 

Last week, we launched the Analyst 2.0 Model along with the HfS ThinkTank to revolutionize our industry. And today we unveil the new HfS 1-2-3-4 Research Agenda. The updated agenda serves the real needs of our clients. The tired legacy analyst model continues to only look at the past and lacks out-of-the-box, stimulating, and forward-looking thinking. We aim to turn this legacy Analyst 1.0 Model on its head, by delivering impactful knowledge and insights that will help our clients survive and succeed in the VUCA (Volatile, Uncertain, Complex, and Ambiguous) world that we all live in.

1: Research coverage across each element of the OneOffice

HfS launched the OneOffice Framework in January 2017. Our industry is evolving to an era where there is only "OneOffice" that matters anymore, one that is focused on creating an impactful customer experience and intelligent operations to enable and support it. At HfS, we like to practice what we preach. We have aligned our research practices with the OneOffice with designated research leaders.

  • The Digital Front Office research explores customer engagement, design thinking, contact center, marketing and sales, as well as social, mobile, and interactive solutions.
  • The Digital Underbelly research focuses on desktop automation, robotic automation, and security.
  • Our coverage for Intelligent Digital Support Functions spans across IT services, Finance, Procurement, Supply Chain, Payroll, and Engineering services.
  • The Intelligent Digital Processes research explores advancements in artificial intelligence, smart analytics, blockchain, and IoT.

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2: Voice of the Customer embedded in the Analyst 2.0 Model

In-sync with the Analyst 2.0 Model, we designed the new research agenda to help us become the leading Voice of the Customer. Our team of global analysts speaks to over 3000 stakeholders across the Global 2000, our industry summits provide us with an unmatched platform to interact with senior stakeholders, and our analysts publish real client stories. We’ve always mandated customer reference calls for every Blueprint report that we publish and with the new research agenda, we are taking this customer focus a notch higher. Some key initiatives:

  • Our recently published and upcoming IT-services research, based on a Global 2000 client-only survey that helps us get beyond the supplier marketing and sales spiel.
  • Similar survey(s) for mature horizontal business process areas as well as industry-specific offerings.
  • Our major Blueprint reports will now be accompanied by a summary of client conversations in the space to present aggregated patterns of how clients view market execution and innovation.
  • A unique buyer experience guide for the top RPA products, based solely on interviews with RPA clients. 

3: Forward-looking research across three-time horizons

A key reason for clients to engage with us is the provocative nature of our research.  We’re future looking, and unafraid to call a spade a spade. The new research agenda aims to arm our clients with the knowledge and insights across three-time horizons they need to navigate the future of operations:

  • Horizon 1 - Act-now: Mainstream topics in the market, such as Robotic Process Automation (RPA). Horizon 1 research is aimed to deliver practical insights into current market trends, supplier capabilities, as well as current client experience that will help institutionalize the concepts.
  • Horizon 2 - Watch-out: Emerging themes and topics that are likely to become mainstream in the next 1-2 years, such as Artificial Intelligence (AI). The objective is to help clients test value propositions and understand potential benefits and challenges in their industry.
  • Horizon 3 - Investigate: Areas that show tremendous potential but are still too nascent to predict adoption, such as blockchain. The purpose of covering such topics is to ensure a healthy dialog with key industry stakeholders to define these spaces, articulate challenges and support awareness.

4: Four-dimensional view of business operations

The future of business operations is not one-dimensional. To provide our clients with a completely holistic view of the market, we have a team of four-dimensional analysts who understand the market across four lenses in their area of specialty:

  • Dimension 1 - Change agents: Major change agents driving the industry including automation, artificial intelligence, blockchain, digital business models and smart analytics.
  • Dimension 2 - Business functions: Detailed coverage across Business Process Services (both back office and front office), IT Services, and engineering services.
  • Dimension 3 - Industry orientation: Business operations impact across 10+ industries including Banking & Insurance, Healthcare, Energy, Utilities, Manufacturing, Telecom, Retail, Travel & Hospitality, and Public Sector.
  • Dimension 4 - ThinkTank: Bringing together our collective knowledge and insights across change agents, business functions, and industries to think out-of-the-box and collaboratively solve real business issues.

 

Bottom-line: We are raising the bar, and we are revolutionizing the industry with our new HfS 1-2-3-4 Research Agenda.

Check out the details of the Analyst 2.0 Model, ThinkTank, and our 1-2-3-4 Research Agenda.

Hyping the hyperledger with blockchain boffin Brian Behlendorf
August 24, 2017 | Phil FershtSaurabh Gupta

HfS' Saurabh Gupta recently caught up with Brian Behlendorf (see bio), the Executive Director of Hyperledger at the Linux Foundation. Brian was a primary developer of the Apache Web Server – the most popular web server on the internet. He was a founding member of the Apache Software Foundation, the founding CTO of CollabNet, the CTO of the World Economic Forum, and the managing director at Mithril Capital Management LLC before heading Hyperledger. He is also a board member of the Mozilla Foundation since 2003 and the Electronic Frontier Foundation since 2013.

Two decades after developing the Apache HTTP server that played a key role in giving us the internet and the web, Brian is reimagining our world again with blockchain. We discussed a range of topics around the reality and practicality of blockchain for enterprises along with the one wish that he wants to come true. 

Saurabh Gupta, Chief Strategy Officer, HfS Research: Brian, one of the stated goals for Hyperledger is to create enterprise grade frameworks and solutions. Why do you think enterprises should adopt blockchain?

Brian Behlendorf, the Executive Director of Hyperledger at the Linux Foundation: We have lots of transaction networks that, Saurabh, because of historical network choices, have resulted in many central actors who facilitate digital transactions like a hub in a hub-and-spoke network. And we have to proxy our trust to them - sometimes they do a noble job and charge a nominal rate, but there are times when these central actors charge unreasonable double-digit rates. Blockchain allows business models to become more equitable and agile by behaving more like

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