The Digitally-driven Front Office drives the Digital Transformation<\/span><\/p>\nDigital, in its purest form, is all about transforming the business to create, support and sustain the digital customer experience. It\u2019s about leveraging the omnichannel (mobile, social and interactive technology) and accessing meaningful analytics to make it happen. Digital enterprises need a support function to service those customers, get their products\/services to market when they want them, manage the financial metrics, understand their needs and future demands and make sure they have got the talent which truly understand the outcomes of their work.<\/p>\n
In their current forms, HPE+CSC has some real capabilities in industries like travel and insurance to lead the market here, but is its stated digital focus is going to be in the operations and infrastructure rather than on design and industry expertise; it will struggle in markets against service providers with very strong digital design practices, such as Accenture Digital and Deloitte Digiday.\u00a0 In fact, Newco would be smart to partner with these firms to provide the digital underbelly capabilities at scale.<\/p>\n
The Digital Underbelly creates the building blocks<\/span><\/p>\nDigitally-driven enterprises must create a Digital Underbelly to support the front office by automating manual processes, digitizing manual documents and leveraging smart devices and Internet of Things, where they are present in the value chain.\u00a0 Smart enterprises have realized they simply can\u2019t be effective with a digital transformation without automating processes and fixing manual interventions and breakages in their process flows.\u00a0 Service providers can get ahead by working with their clients to make their processes run digitally so they can grow successfully their digital businesses and create new growth for themselves. Think about a central nervous system that incepts and processes all the elements necessary to make the enterprise function.<\/p>\n
This is where HfS views the sweet spot for Newco, provided is can really optimize the economies of scale with the merger to be price competitive with the Indian heritage majors, such as TCS, Wipro, HCL, Infosys and Cognizant.\u00a0 It also needs to convince clients it brings world class engineering talent, security and automation expertise to the table.<\/p>\n
Intelligent Digital Support breaks down the legacy functional silos<\/span><\/span><\/p>\nEnterprises need their support functions (like an enterprise circular system), such as IT, finance, HR and supply chain, to be aligned with supporting the customer experience, as opposed to operating in some sort of vacuum, hence, we are terming this \u201cIntelligent Digital Support\u201d, where broader roles can be created.\u00a0 HPE and CSC together have tremendous depth in areas like finance and accounting, contact center and HR from HPE\u2019s traditional services business, while CSC brings it\u2019s newly acquired procurement capabilities from its Xchanging acquisition.<\/p>\n
Newco\u2019s focus needs to shift towards creating a work culture where its delivery staff are encouraged to spend more time interpreting data, understanding their clients\u2019 needs at the front end of their businesses, and ensuring the support functions keep pace with the front office. This is especially the case in industries that are more dependent than ever on real time data, using multiple channels to reach their customers and being able to think out-of-the-box with disruptive business models.<\/p>\n
Intelligent Digital Processes must help enterprises predict and orchestrate, as opposed merely to react and maintain<\/span><\/span><\/p>\nNewco much focus on enabling business processes that align with their clients\u2019 desired digital customer experiences.\u00a0 It\u2019s not about throwing off historical data just to discover what went wrong, it\u2019s about being able to predict when things will go wrong and finding clever ways to get ahead of them. It\u2019s about embedding smart cognitive applications into process chains, about learning from mistakes and new experiences along the way.\u00a0 This is the enterprise neural system.\u00a0 Several of HPE\u2019s IT service competitors have already made strides here with autonomics platforms, such as IBM\u2019s Watson, TCS with its Ignio , Wipro with Holmes, Infosys with Mana and Accenture\u2019s evolving partnership with IPSoft\u2019s Amelia. Without a genuine story in service orchestration and autonomics, Newco could quickly fall behind, as its customers become increasingly eager to embed cognitive and self-learning elements into their business and IT processes.<\/p>\n
However, one key service orchestration platform where we see some real growth potential for Newco is with CSC’s industry-leading ServiceNow practice, which has enjoyed continued growth, especially following its\u00a02015 acquisition of Fruition Partners<\/a>. \u00a0As CIOs increasingly seek ServiceNow implementations on their CVs (in a Workday-esque manner), Newco should be able to divert many existing HPE clients onto its newly-acquired managed service. \u00a0Newco just needs to figure out how to grow that competency as two forces coming together<\/em>, as opposed to ending up with competing P&Ls.<\/p>\nThe Bottom-line: The industry is in transition and the winners are those which can pivot and focus fast. \u00a0Those which can’t will fail<\/span><\/strong><\/span><\/p>\nLet’s cut to the chase here – we’re operating in a services world obsessed with preserving the past and ignoring the new. \u00a0The past was all about predictable revenue and highly-visible cost reduction opportunity – there was a method to the madness. \u00a0But this was because the true value was about doing things slightly better, but at much cheaper costs. \u00a0The future is not so predictable – it is about being smarter, more business aware, and technically superior to piece it all together for clients. \u00a0Oh, and without increased investments. \u00a0It’s hard, and requires a very different focus, which is one of developing talent to learn on the job, one of evaluating experiences professionals to assess their ability to change, of being able to learn new tools and platforms, which require a mixture of process and business understanding to align with real business outcomes.<\/p>\n
The Newco that is HPE+CSC has as good a shot as most to survive the impending service industry carnage, as growth flattens and prices hit the floor for anything that is a mainstream service. \u00a0It’s sheer size and client portfolio should help it absorb the blows as the market shakes out and the need for increasingly complex “digital underbelly” services proliferates. \u00a0As we evolve the levers for the survivors to pull are the right combination of labor arbitrage, automation enablement, cognitive understanding and digital enablement. \u00a0But spending years constantly reorganizing internally to create the beast to deliver all of this with the speed, affordability and agility needed will not work. \u00a0These two firms need to be slammed together with an urgency and focus not yet seen in our industry. This won’t be pretty and needs to be like a very sticky BandAid being ripped off\u00a0very, very quickly…because their biggest threat is within themselves.<\/p>\n
For a deeper dive into the nuts and bolts of the HPE+CSC merger, download our POV<\/a>\u00a0now!<\/em><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"Just stare at that digital underbelly… there’s a lot of work needed down there! When the news broke last month…<\/p>\n","protected":false},"author":3,"featured_media":854,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[48,51,52,56,57,61,78,81,833,90,91,92,831,832,830],"tags":[303],"ppma_author":[19],"yoast_head":"\n
Can HPE + CSC dominate the digital underbelly, or has that ship sailed? - Horses for Sources | No Boundaries<\/title>\n \n \n \n \n \n \n \n \n \n \n\t \n\t \n\t \n \n \n \n \n\t \n\t \n\t \n