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Enterprise Applications Consultingwww.eaconsult.com • 510.540.8655
Joshua Greenbaum, Principal
Enterprise Applications Consulting
Business TransformaTion and Business ConTenT:
driving The nexT Wave of innovaTion
TableofContents
Introduction:TheTransformativePowerofContent .........................................................page1
DrivingTransformation–TheRoleofContentandInformation........................................page3
PlanningandExecutingContent‐basedBusinessTransformation ...................................page14
Conclusion:StrategicVisionandContent‐basedTransformation ....................................page17
OpenTextBusinessTransformation
Copyright2013EAC 1
Introduction:TheTransformativePowerofContent
Businesstransformationinthe21stcenturyisneitheraluxurynorafad:companiesthatwanttosucceed
intoday’sbusinessclimateneedtobethinkingabout–andactingon–thechangingrequirementsthat
definesuccessacrossahostofindustries,publicsectoragencies,andnon‐profits.Thisdynamicbusiness
climate–drivenbybothexternalandinternalfactors–ispushingcompaniestochangetheirbusiness
processesandorganizationalmodels,aswellastheenterprisesoftwareonwhichthoseprocessesand
organizationalmodelsarebased.Thegoalisnotonlytofindmoreefficientmethodsandpracticesand
todrivedowncosts,butalsotoempoweremployeestobemoreinnovativeandbetterservecustomers,
partners,andotherstakeholders.
Intoday’seconomy,businesstransformationincreasinglyinvolvescontentandinformationaseithera
centraltenetoftransformation,orasanessentialcomponentofalargertransformationalprocess.This
isdrivenbytherealizationthatmostbusinessprocessescenteraroundthelifecycleofkeypiecesof
structuredandunstructuredcontent:processescreateortransformcontent,moveitthrougha
workflow,useittotriggerotherstepsintheprocessorkickoffentirelynewprocesses,andmaintain
andstorecontentforfutureuse.Theresultisthatcontentisnowthelynchpinforthemajorityof
interactionsbetweenenterprises,customers,partners,employees,andotherstakeholders.Inaddition
toitstraditionalsources,contentnowarrivesintheenterpriseasunstructureddatafromwebsites,
socialmediaandremotesensors,addingtothecomplexityifitsmanagementanduse.
Thiscontentalsoneedstobeformattedforuseonanincreasinglybroadrangeofmobiledevicessuchas
smartphonesandtabletsaswellasagrowingrangeofdesktop‐basedformatsandapplications.The
resultisthattheon‐goingrequirementsforbusinesstransformationcannotberealizedwithoutgiving
content,andtheinteractionsitenables,amuchgreater,ifnotcentral,role.
Thesecontent‐centricorcontent‐awaretransformationspromisetoberelativelyeasytoadopt,aswell
asofferrapidreturnonvalue,mostlybecausethiskindofbusinesstransformationcantakeplaceby
applyingnewtechnologyinawaythatlargelyaugmentsexistingbusinessprocessesinsteadofwholly
re‐engineeringthem.Theultimategoalofthiskindoftransformationspeakstobothtoplineand
bottomlineimprovements:Businessesandotherorganizationscanuseinformationandcontent–much
ofwhichisalreadyavailableintheenterprise–asastrategicleverforstreamliningkeybusiness
processes,improvingcustomerserviceandsatisfaction,supportingtherequirementsofincreasingly
complexregulatoryregimes,andenablingnewlyinnovativeprocesses.Thepotentialforupsideis
tremendous,whereasfailuretousecontentproperlywillmeanleavingoutanimportantcomponentin
any21stcenturybusinesstransformation.
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Luckily,failureneednotbeanoption.Therelativeeaseofadoptionandpotentiallybroadscopeof
content‐basedinnovationalsomeansthattransformationneednotalwaystakeplaceinabig‐bang
manner.Manycompaniesareabletobeginlarge‐scaletransformationwithsmall,highlyfocused
projects,andothershavebeenabletoconvertsmaller,stand‐aloneinitiativesintolarger‐scalebusiness
transformations.Theopportunitiesforusingcontentinatransformativewayaboundinmost
companies.
ThisisparticularlytrueintheSAPmarket,wheretheleadingenterprisesoftwarevendor’scustomers
arerunningrelativelymatureimplementationsoftheircoreSAPsystemsthatareripefortransformative
change.Theavailabilityofnewsourcesofinformationandcontentaswellasnewchannelsforcontent
consumptionareparticularlyrelevantintheSAPmarket:informationandcontentincreasinglyarriveat
theenterpriseinvastquantitiesandinrealtime,andtheirpotentialvaluefarexceedstheabilityof
existingtransactionalsystemstomakeuseofthesenewdatasources.Thehistoricalabilitytomanage
masterdataandassociatedprocessinSAPneedstobeextendedtoincludeasimilarlevelofcontroland
managementoverthecontent–muchofitunstructured–thatoriginatesoutsidethecoreSAPsystem.
Inaddition,enterprisesinallwalksoflifeareincreasinglyrequiredbymarketconditionstoempower
newgroupsofdecision‐makers,aswellascustomersandotherstakeholders,withagreaterabilityto
takeactionbasedonup‐to‐dateinformation.ThegoodnewsforSAPcustomersisthatthesenew
requirementsforinformationandcontentmanagement–andthebusinesstransformationthatare
enabled–canbedeliveredwithinanSAPprocess.Thisisanincreasinglyimportantaspecttothe
partnershipbetweenSAPandOpenText: OpenTextECMSuiteforSAPSolutionsallowsSAPcustomersto
extendSAPprocessesandfunctionalitytonon‐structured,non‐SAPcontent.ThisallowsSAPcustomers
tobothbettermanagethecontenttheyneed,andtogetridofcontentthatistransitoryornolongerof
value.
Thesefactors,combinedwiththeever‐presentneedtolowercostsandprovidegreateroperational
efficiency,haveledtoanewwaveofinnovationaroundinformationandcontentthatisbecominga
drivingforceinbusinesstransformationtoday.Thisreporthighlightshowthisshiftintheuseofcontent
andinformationishavingamajorimpactonSAPcustomersacrossawidevarietyofindustriesand
geographies,andhowSAP’saward‐winningpartnerOpenTextisenablingkeyaspectsofthis
transformation.
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DrivingTransformation–TheRoleofContentandInformation
Theroleofcontentandinformationhasmaturedsignificantlyinrecentyearsastheunderstandingof
theimportanceitcanplayinbusinesstransformationhasgrown.EnterpriseApplicationsConsulting’s
interviewswithjointcustomersofSAPandOpenTexthaveuncoveredthreegeneraldomainswhere
dramaticallychanginghowcontentandinformationareutilizedinkeybusinessprocesseshasbecomea
centraltenetofbusinesstransformation.
Thethreedomainsare:
1) Customer‐centrictransformation.
2) Efficiency‐basedtransformation.
3) Regulatorycompliance‐basedtransformation.
Whilethesearehardlytheonlyareaswherecontentandinformationcanplayatransformationalrole,
takentogethertheyillustratetheopportunitiesthatarepossiblewhencontentandinformationbecome
centraltobusinesstransformation.
CustomercentricTransformation:ThinkLikeaCustomer
Businesstransformationthatoptimizescustomervalueisincreasinglydependentonasignificantshiftin
understandingtheroleofcontentincustomerengagement,retention,andservice.Inmanyindustries
andpublicsectorentities,theexchangeofcontentintheformofdocumentsistheprimarywayinwhich
customerinteractiontakesplace–viaapurchaseorder,aninvoice,aservicerecord,oracontract,for
example.
Inaddition,thedocumentsthataregeneratedaspartofacustomerinteractionoftenhaveavery
complexandrichlifecycleduringthecourseofthecustomer’sengagementwiththecompanyoragency.
Thismeansthatanindividualdocumentmayhaveacompletelydifferentpurpose–andformat–
dependingonwhereinthelifecyclethatdocumentmaybeused.AninvoicelivesintheERPsystemas
financialdocumentusedforaccountingpurposes,whereaswhenitissenttothecustomeracustomized
offercanbeadded,allowingtheinvoicetoplayanadditionalroleasacomponentinalargercustomer
engagementprocess.Andwhenacallcenterreplooksattheinvoiceonbehalfofadisgruntled
customer,itbecomespartofacustomerserviceandretentionprocess.Gettingthesedifferent
interactionsanddocumentusecasesright–orwrong–canmeanallthedifferenceintermsofthecost
andeffectivenessofcustomeracquisition,retention,andsatisfaction,allofwhicharefactorsthatdrive
profitsorlossesstraighttothebottomline.
Mostcompanieshavetraditionallyfailedtooptimizethenewusesofcustomer‐centriccontent,and
traditionalcontentmanagementapproacheshavebeenlargelyattunedtowardstheneedsofthe
transactionalsystemsthatsupporttheseprocesses.Companiesthataretryingtobetruly
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transformationaltakeamuchbroaderviewofcustomer‐centriccontent,andmakeitsuseacentral
tenantoftheirbusinesstransformations.Enablingthatcontentlifecycle,andoptimizingitsvalue,has
becomeanimportantgoalintoday’sconsumer‐centricbusinesstransformations.
Thesetransformationmodelsarepermeatingold‐linecompaniesthatuntilrecentlydidn’tthinktheir
business‐to‐businessorbusiness‐to‐consumerinteractionscouldbeimprovedbylookingathowcontent
isused.Oneofthesecompanies,autilitycompanybasedintheMidwesternUnitedStatesthatusesSAP
asitsprimaryenterprisesoftwaresystem,explainedtoEACthattheirtransformationalmomentwith
contentcamewhentheyrealizedthattheircustomerinteractionKPIswere“justfine”whenthey
benchmarkedagainstotherutilitycompanies,butwhentheylookedmorebroadlyatnon‐utilityretailers
theirnumbersfellshort.
“OurCEOtoldusthatweneededtostopthinkinglikeautilityandstartthinkinglikeanAmazonora
Zappos,”amemberofthebusinesstransformationteamtoldEAC.Thatledtoawholesalerethinkingof
theutility’sinteractionswithitscustomers.Andwhilethegoalwasamajortransformation,thedecision
wasmadetostartwiththemostimportantformofinteractionbetweentheutilityanditscustomer–
thebill.Thatrequireditsownmini‐transformation:“Ourbillingsystemthoughtofthecustomerasasite
oraresidence,notasaperson,”theteammembertoldEAC.
Theutility’soveralltransformationtomoreretail‐likecustomerinteractionswasbasedonanumberof
importantconsiderations.Oneofthemostsalientwastheneedtolowerthenumberofservicecalls–
andhenceoverallcallcentercosts–byimprovingcustomeraccesstoaccountandbillinginformation.
Theutility’sexpectationsarethatupto300,000callsperyearcanbehandledthroughself‐service
insteadofthroughthecallcenterwhich,basedonanaverageof$5percallinautilitycallcenter,could
resultincallcentersavingsof$1.5millionormore.
Anotherconsiderationwasregulatorycompliance–
spendingupfrontonhavingcustomersbebetterinformed
andengagedisaneffectivewaytomaintainahighlevelof
regulatorycompliance,andmuchlessexpensivethan
spendingonremediatingproblemsresultingfromregulatory
non‐compliance.(MoreonthisissueintheRegulatory
Compliance‐basedTransformationsectionbelow.)
Ultimately,theoverallgoalwastoimprovecustomer
satisfactionbyatleastafactoroftwopercent,whichwould
alsohelpreducecosts,improveon‐timepayments,and
otherwiseimpacttopandbottomlineperformance.
Toreachthesegoals,theutilitystartedtolookattheroleof
contentinitscustomerinteractions,andthatstartedwith
THEROIOFECMINA
UTILITYCALLCENTER:
Expectedprocess
transformationsavingsina
utilitycallcenter:
300,000callsdivertedtoself‐
servicesupportthroughbetter
billpresentmentandcustomer
informationaccess.
PotentialSavings:
$1.5millionperyear.
OpenTextBusinessTransformation
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thecustomers’monthlyenergybill.Ratherthanjustformattingbillsandsendingthemout,thecompany
implementedSAP®DocumentPresentmentbyOpenTextsoftwaretoallowthebilltocontain
personalizedmessagesandinformationthatcouldhelptheutilityimproveitsinteractionswithits
customers.TheuseofDocumentPresentmentalsoallowedtheutilitytoautomaticallyformator
repurposebillsandotherdocumentsforuseacrossallthedifferentwaysinwhichcustomerinteractions
takeplace:inthecallcenter,onthecustomer’smobiledevice,andinself‐servicekiosks.Thegoalwasto
capturehardsavingsfromalowernumberofservicecallsandfastertimestoresolution,andtocapture
softsavingsfromhigheroverallratesofcustomersatisfactionduetoimprovedandmorefruitful
interactions.
Withbillpresentmentasafirststep,theutilityalsosetinmotionthecreationofatechnologyplatform
–basedonSAPandSAPDocumentPresentmentbyOpenText–thatwillpositiontheutilitytocontinue
toevolveitsuseofcontentasakeycomponentinitscustomer‐centrictransformation.Asthat
transformationevolves,theutilitywilluseitsnewplatformtoleveragetwoimportantopportunities:set
thestageforunleashingthevastquantitiesofdatacomingfromitssmartmetersandotherdevices,and
fordeliveringthosedataintheformofinformationtothecustomersonsmartphones,tablets,and
othermobiledevices.
Thiscombinationofincrementaltransformation–improvebillpresentment,whileestablishinga
technicalfoundationforbroadertransformationaroundissuessuchaslowerservicecostsandhigher
customersatisfaction–isthekindofjourneythatcontent‐basedbusinesstransformationreadilylends
itselfto,andonethatanincreasingnumberofSAP/OpenTextcustomersareembarkingon.
EfficiencycentricTransformation:ContentasaRootCauseofInefficiency
Theroleofcontentinthepursuitofgreateroperationalefficiencyishardlyanovelconcept,butitsrole
asanimportantagentforbusinesstransformationcenteredaroundoperationalefficiencyisrelatively
new.Theshifthascomefromtakingacloserlookatthecausesofinefficiencyinorganizations:Looking
at“paperwork”andotherwastefulcontent‐basedprocessesasarootcauseofinefficiency,ratherthan
aresultofinefficiency,isaperspectivethatlendsitselftomakingcontentakeyfocusinbusiness
transformation.
Thisunderstandingoftheroleofpaperandcontentasarootcauseforinefficiencyledanotherjoint
SAP/OpenTextcustomer–astateuniversity–toplacecontentmanagementatthecoreofanoverall
SAP‐ledtransformationintendedtomaketheuniversityamuchmorecost‐effectiveinstitution.Forthe
university’stransformationteam,thiswasn’tjusta“nicetohave”idea.“Highereducationisbeginning
torealizethatwe’reabusiness,”saidthedirectoroftheuniversity’stransformationefforts.Andthat
meansthathavingmoreefficientprocesses“isamatterofsurvival.”
Withthisrealizationinmind,contentandinformationhavebecomekeyfocalpointsfortheuniversity’s
transformation.“Weneededtomakeourprocessesmoreeconomical,andpartofthatmeantrethinking
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whattheroleoftheuniversityrelativetocontentshouldbe,”saidthetransformationdirector.“Isbeing
arepositoryofknowledgethesameasbeingarepositoryofdocuments?”
Forthisuniversity,anumberofkeyprocesses–fromstudentenrollmenttograntsmanagementto
humanresourcemanagement–wereheavyusersofcontent,buttheuseofpaper‐basedprocesses
madetheircontentuseimmenselyinefficient.“Ouradmissionsprocesshadlotsofpaperthatwe
processedandhungonto,”thedirectortoldEAC.“Thatforcedustoputonadditionalstaff(during
admissionstime),andtheyworkedextrahourscarryingthedocumentsfromoneroomtoanotherfor
approval.Weneededtogetridofallthat.”
Figure1.EnterpriseContentManagementforTalentSourcing
Source:SAP,OpenText
Themanagementofgrantsatthisuniversityhadasimilarlyflawed,paper‐basedprocess.Inorderfora
governmentresearchgranttobeapprovedbythegrantingagency,ithastobecertifiedasanofficially
sanctioneduniversityproject.Thatcertificationprocesshastoincludeinformationfromdifferent
universitydepartments,andasanun‐automatedpaper‐basedprocess,grantapprovalwashardto
manage.Therisksforfailurearerelativelyhigh:awrongstepinthegrantmanagementprocess–a
missingorlatecertification–couldjeopardizenotjustasinglegrant,buttheuniversity’soverallaccess
tograntsfromthegrantingagency.
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“Nowwehaveaprocesswherethedocumentsflow
electronically,soweknowwheretheyare,”the
directorsaid.“Andwe’vebeenabletoreducethe
approvaltimefromdaystohours.”
Anotherexampleofhowanoveralldriveforefficiency
canbeusedtomakehighlytargetedprocesschanges
camefromareviewoftheprocessofchanginga
courseattheuniversity.Thetransformationteam
discoveredthatittook72piecesofpapertomakea
change,mostlybecauseaverybroadrangeof
stakeholdersfelttheneedtohaveasayinthechange
process.Changingtheprocesstoanelectronic‐
documentmanagedprocesshelpedeliminatea
significantnumberofstepswhilestillproviding–via
electronicaccess–theabilityforawiderangeof
stakeholderstohavetheirsay.
Thisabilitytofixabrokenprocessandenablepotentiallyevenmorestakeholderengagementisoneof
thereasonswhycontent‐basedtransformationisagoodstartingpointforanoverallbusiness
transformationsuchastheonethatthisuniversityisexecuting.“Ouruserswerereadyandableto
adoptdigitalcontentmanagement,”amemberoftheteamtoldEAC.“Theseusershavebeenvery
positivechampionsinthecampuscommunity”forthetransformation.
Theuseofnewsocialandmobiletechnologybythestudentpopulationhasalsoledtheuniversityto
changeacoresetofprocessesaroundhowitengageswithstudents,particularlywhenitcomestoone
oftheuniversity’sprimarygoals:helpstudentsbecomewell‐educatedandgraduateontime.Tothisend
theuniversityisusingSAPHANAandOpenTextECMsoftwaretoanalyzeabroadrangeofinformation
onstudentperformance,preferences,coursework,studygroupavailability,andotherfactors.The
resultoftheanalysisisanevaluationofastudent’slikelihoodofsuccessinagivenclass.Thesystem
thenrecommendsacourseofaction,suchasattendinganonlineorin‐personstudygroup.Thisplaces
OpenTextECMattheheartofanext‐generationbusinessprocessthatleveragestheadvancedanalytics
ofSAPHANAandtheabilityofSAPtousesocialmediaandmobileasengagementtools.
Theuniversityisalsoundertakingotherbusinessprocesstransformationswiththegoalofproviding
manycentralizedservicestodifferentdepartmentsandentitiesthathavetraditionallybeenhighly
decentralized.Thesetransformations–andthecontentthatiscoretotheprocesses–arehelpingto
rationalizehumanresources,finance,andotheruniversity‐wideprocesses.“IfI’mrunningthe
THEROIOFECMATAUNIVERSITY:
Replacingenrollmentdocument
flowwithonlinecontent
significantlystreamlines
enrollmentprocess.
Streamliningdocumentapproval
processforgrantsmanagement
providesfasterapprovalprocesses
andloweredcompliancerisk.
Aggregatingstudentdatafor
analysissupportsimproved
studentretentionandgraduation
rate.
OpenTextBusinessTransformation
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economicsdepartment,Ishouldbetryingtomaximizetheteachingofeconomics,notmaintainingmy
ownHRorashadowaccountingsystem,”thetransformationdirectortoldEAC.
EfficiencyandContent:UsingContenttoTransformaRailroad
Drivingmoreefficientoperationswasattheheartofamajorbusinesstransformationatamajor
Europeanrailroad,whichimplementedSAPasthecoreofamodernizationefforttenyearsago.Asthe
multi‐yearmodernizationprocessprogressed,itbecameobviousthatmanagement’sefficiencygoals
couldnotbereachedwithoutusinganintegratedplatform–aboveandbeyondthatwhichwasbuilt
intoSAP–tomanagethevastquantitiesofdocumentsusedbytherailroad.
“Ourbusinessprocessesweren’tconsistent,andweneededtomovefromsilosofoperationstoavalue‐
chainapproach,”theprojectmanagertoldEAC.“Weneededtothinkofdocumentsasanimportant
asset.”
Furtherdrivingthedocumentmanagementcomponentoftherailroad’smodernizationeffortswasthe
needtocaptureasmuchaspossibleofthe“soft”knowledgeoftherailroad’sagingworkforceina
formalstructureddocumentsysteminordertoensurethattheprojectedturnoverintheworkforce
wouldnotleavetherailroadwithoutaccesstoitsinstitutionalmemory.
Thatinstitutionalknowledge,aswellasuptodateoperationalandotherinformation,wouldneedtobe
muchmoreaccessibletoawidersetofstakeholders,andthatmeantmakingitavailableontabletsand
otherdevicesthatsupportbothmobilityaswellasatouch‐screenbaseduserinterface.
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Figure2.EnterpriseContentManagementinAssetManagement
Source:SAP,OpenText
TheserequirementsledtheEuropeanrailroadto
implementSAPExtendedECMbyOpenTextasthecontent
managementcomponentofitsefficiencytransformation
project.Thisnotonlyallowstherailroadtoreduceits
overalluseofpaper‐basedmanuals,buttheECMsystem
alsoallowstherailroadtodrivegreaterefficiencytoa
widerangeofcoreprocesses,frombudgetingto
engineeringanddesign.Forexample,puttingtrouble‐
shootinginformationonatabletforitsdriverssavedall
fivethousanddriversfromluggingaround20kilosof
printeddocuments.Inallcases,havingrapidaccessto
THEROIOFECMATARAILROAD
COMPANY:
$30millionperyearinlower
printingandcopyingcosts.
Improvedefficiencythough
replacementof20kilosof
papermanualswithelectronic
versionsavailableonatablet
device.
OpenTextBusinessTransformation
Copyright2013EAC 10
coredocumentswhilestreamliningtheirusehasbeenamajorsourceofsavingsintermsoftimeand
money.“Documentshavebecomeanenablerforouremployeestoexecutetheirdailyworkinabetter
way,”saidtheprojectmanager.
Thepotentialsavingsaresignificant.SAP®DocumentPresentmentbyOpenTextaloneallowsthe
railroadtoconsolidateprintingandcopyingcoststhathavethepotentialtosavetherailroad$30million
peryear.Inaddition,therearesoftsavingsandimprovementsthatarehardertoquantify,butofequal
importancetotherailroad.Forexample,newrailroadprojects
arefrequentlyundertakenwithexternalpartners,andthe
railroadisnowabletosetupcollaborationroomswherethe
internalandexternalprojectmemberscanhaveaccesstothe
documentationthatsupportstheseprojects.
Theresulthasbeenaseachangefortherailroad,whichhas
seentheimprovementsindocumentmanagementasan
importantpartofatransformationaljourneythatisstillunder
way.“WestandardizedourERPsystemandatfirstdidn’tsee
thevalueofbusinessdocuments,”theprojectmanagersaid.
“Nowweknowthatinnovationwillcomefromenterprise
contentmanagement.”
EfficiencyandContent:ContentattheCoreofaGasUtility’sTransformation
Whilemostcompaniescometoappreciatetheroleofcontentmanagementaftertheyhaveengagedin
abusinesstransformationproject,suchastheEuropeanrailroad,somejointSAP/OpenTextcustomers
seethetransformativevalueofcontentfromtheverybeginningoftheirtransformation.Thiswasthe
caseforanaturalgasutilitycompanythatwantedtomakecontentacorecomponentofanumberof
keybusinessprocesses.Oneofthemorestrategicandcomplexprocessesforthisutilityistheeffortthat
goesintoworkingwithdeveloperstobuildlargeresidentialdevelopments.Thisprocesshastwobasic
goals:tomakesurethatthedeveloperisincentedtouseasmuchnaturalgasinthenewhomesas
possible,andtoensurethatthesedealsrunsmoothlyandwithasmuchriskmitigationaspossible,
despitethecomplexnatureofthesedeals.
Whentheutilitycompanybeganareviewofhowitsdealsaremade,severalaspectsstoodout.Thefirst
wasthatthedealprocesswasoverlycomplex–therewere17individualsteps,andlotsofplaceswhere
theprocesscouldgetderailed.Thisprocesscomplexitymeantthatittookanaverageoffivemeetings
withthedevelopertocloseadeal–withthechancesoflosingthedealincreasingwitheverysuccessive
meeting.Alsoatplaywastheenormousamountofdocumentsandothercontentthatwasneededto
getthejobdone,includingsatelliteimagery,GISdata,demographicinformationonthepeopleexpected
toliveinthenewhomes,andfinancialcalculationsrelatingtocostsandrelativerisks.
“WestandardizedourERP
systemandatfirstdidn’tsee
thevalueofbusiness
documents.Nowweknow
thatinnovationwillcome
fromenterprisecontent
management.”
—Transformationproject
manager,Europeanrailroad.
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Thesedevelopmentprojectsinvolveenormousupfrontcapitalexpendituresonthepartoftheutility
andthedeveloper,withthereturnonthoseinvestmentsatleast15yearsoutandatthemercyofa
mind‐bogglingnumberoffactors.Itwasclearthatwithsomuchatstake,theutilityneededtotransform
whatwasaninefficientandpoorlydesignedprocess.
Theutilitytookatwo‐partapproachtransformingthiskeyprocess.ThefirstwastoinstallSAPCRMin
ordertohandlewhatwaseffectivelyacustomerrelationship–thedevelopers–inamorestructured
manner.ThesecondpartwastoimplementOpenTextECMSuiteforSAPtoprovideacomprehensive
contentandinformationmanagementcomponenttothetransformedprocess.
Figure3:EnterpriseContentManagementforSales
Source:SAP,OpenText
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Copyright2013EAC 12
Thecontentcomponentitselfhadtwomajorpurposes–thefirstwastoprovideanorganizational
structureforthecontent,andthesecondwastomakeitreadilyavailabletoamobilesalesforceasthey
meetwithdeveloperstostructureadeal.Alongtheway,theutilitywasabletostreamlinehowitused
certaindocuments,suchasengineeringreportsthatwerebeingmadeaccessibletothesalesstaffasa
completedocument,whenallthatwasneededforthedealwasasummaryofthereport.“Wewere
abletoreducetheamountofinformationandprofoundlyimproveitsrelevance,”theformerCIOofthe
utilitycompanytoldEAC.
Theresultsfromthiscontent‐centricapproachhavebeentrulytransformative.Reducingtheprocess
complexityandbringingthecontentintoplayinahighlyaccessiblemannerreducedtheaveragetimeto
closefromfivedaysto1½days.Smallerdealsthatmeetspecificcriteriabuiltintotheworkflowcannow
beclosedonthespot,whilelargerdeals,andtheirsupportingdocuments,canbesentupthechainof
approvalandactedoninamatterofhours.
“Thedealiscenteredonthedocuments,”saidtheformerCIO.“Nowwehavealltheresourcestowalk
thedeveloperthroughtheprocess.Yougettomakegooddecisionsthataremoreintelligent–youcan’t
dothatwithouthavingallthatdataintheworkflowattherighttime.”
Thisandotheraspectsoftheutility’scontent‐centric
transformationhaveresultedinsignificantnewrevenuesand
savings.Therevenuesarerelativelystraightforward–more
smallerdealscangetdonewithmarkedlylowersalescosts,
andtheabilitytomorerapidlycloselargedealsprovidesboth
lowersalescostsandpotentiallyhigheroverallcontractvalues.
Othereffortshaveledtoeasily‐quantifiablesavings.
RevampingprocurementprocesseswithacombinationofSAP
andOpenTextsoftware,forexample,allowedtheutilityto
saveeightmilliondollarsperyearonstrategicsourcingcosts.
Someofthesavings,however,arehardertoquantify:Losinga
developerdeal,forexample,whichmeanshousesarebuilt
withall‐electricappliancesinsteadofamixofgasandelectric,isalossthatcannotberevisitedfora
decadeormore,ifatall,asindividualcustomersareloathetoswitchfromoneenergysourceto
another.Beingabletomovemorerapidlytocloseadealalsoprotectstheutilityfromthesekindsof
long‐termlosses.Havingabetterunderstandingoftherelativeriskofadealalsohassignificantsavings
potential,particularlyintermsofbeingabletobetterhedgeagainstrisk.Eventhoughthesavingsare
generallyhardtospecificallyquantify,thepotentialsavingscanrunintomanymillionsofdollarsfor
evenamodestlysizedutility.
THEROIOFECMATAGAS
UTILITY:
Contentandinformation
managementhelpyield
$8millionperyearin
strategicsourcingcosts.
Reduceaverageclosetime
indeveloperdealsfrom
fiveto1½days.
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RegulatoryCompliancebasedTransformation:“BePrepared.”
Amongthemanycatalystsforcontent‐basedtransformation,oneofthemostimportantistheever‐
changingregulatoryenvironment.Thecreationofnewregulationssuchasthosethatresultedfromthe
2002Sarbanes‐OxleyActisanexcellentexampleofjustthiskindofcatalyst.LikeSarbanes‐Oxley
compliance,mostregulatorycomplianceprovidesauniqueopportunitytoplacecontentmanagement
attheheartofbusinesstransformation.
FortwooftheSAP/OpenTextcustomersdiscussedabove,theoriginsofthecontent‐basedbusiness
transformationsstartedwithregulatorycompliance.Fortherailroad,Europeanregulationsrequirethat
keydocuments,suchasmaintenancerecords,beretainedandaccessibleforaperiodof40years,and
thoserecordsneedtoincludeinformationonthespecificpartsusedinrepairsandthemaintenance
workerwhodidtherepair.
Fortherailroad,andmanyothercustomers,itisnotenoughtohavethedocumentsavailable–they
needtobeinawidevarietyofformatsdependingontherequirementsoftheaudit.Inaddition,that
accessneedstobeasimmediateaspossible.Inmanyregulatedindustries,regulatorscanspecifya
specifictimewindowforthepresentationofdocuments,afterwhichsanctionscanbeimposedonthe
company.Sanctionsfordelaysindiscoveryarealsoathreatincourtcasesaswell.
Forthenaturalgasutility,Sarbanes‐Oxley’srequirementsforauditabilityprovidedonestimulusfor
contentmanagement,butotherregulationsregardingtheliabilityoftheutilityinthecaseoffiresand
otherincidentsfurthercementedtheneedforregulatory‐basedcontentmanagement.“Everytime
thereisahousefirewegetsued,”saidtheex‐CIOofthenaturalgasutility.“There’slotoflegal
discovery”forwhichtheutilityhastoprovidedocumentation.
Evencustomer‐centrictransformationslikethatoftheMidwesternutilitycompanycanhavea
regulatorycomponent,accordingtothetransformationteammember.“Ifwekeepourcustomers
happy,ithelpsourregulatoryposition,”shetoldEAC.“Beingagoodcorporatecitizenhelpsusmanage
ourregulatoryrequirements.”
Theseexamplesshowthatcontentandinformationplayanimportant,ifnotcentral,roleinbusiness
transformationacrossmultipleindustriesandfunctionalareas.Utilities,transportation,andhigher
educationarejustafewofthedomainswheretheinterplaybetweencontentandbusinessprocessesis
becomingakeyelementinbusinesstransformation.Thisinterplayisalsogermaneinregulated
industriessuchasfinancialservices,pharmaceuticalsandmedicalequipment,aswellasengineeringand
construction,manufacturing,andprofessionalservices.
Thescopeoftransformationthatcontentandinformationcansupportisbroad.Theaboveexamples
illustratehowcontentwaskeytobusinesstransformationinoperations,customerservice,planningand
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budgeting,compliance,andhumanresources,aswellasmoreindustryspecificareassuchasgrants
managementinhighereducation.
Theseexamplesarehardlytheonlyones.Otherexamplesoftheapplicabilityofcontentandinformation
tobusinesstransformationcanbefoundinassetmanagement,procurement,andlegalservices,among
others.Thekeytounderstandingwherecontentandinformationcanbepartofbusinesstransformation
istolookforprocesseswheredocumentsandcontentarekeyelementsintheinteractionsofthepeople
whohelpcreateorinfluencebusinessoutcomes.Wherethesecriteriaexist,chancesarethatcontent‐
basedbusinesstransformationcanmakeadifference.
PlanningandExecutingContentbasedBusinessTransformation
Acompanyorotherentitylookingtoplanandexecuteacontent‐basedbusinesstransformationhas
manyoptionsinhowitcanproceed.BasedonEAC’sresearchtherearefourbasicconsiderationstobear
inmindthatcanhelpensuresuccess.Theseare:
Understandtheinterplaybetweencontentandcorebusinessprocesses.
Planforandengagepeople.
Thinkstrategically,executeincrementally.
Leavethetechnologyintegrationtothevendors.
UnderstandtheInterplaybetweenContentandCoreBusinessProcesses
Thisisaprioritheobviousstartingpoint,buthowtounderstandthisinterplayisoftenlessthanobvious.
Atthenaturalgasutility,businesstransformationbeganwithan
exercisewhereeverykeybusinessprocesswasbrokendown
intoitsconstituentprocessesandthenanalyzedwithrespectto
efficiency,effectiveness,andtherolethatcontentandpeople
playintheprocess.Thisresultedinsomedramaticprocess
change,andagreaterrealizationoftherolecontentcouldplay
inimprovingthoseprocesses.
Thiskindofprocessdeconstructioncanbeashardtodoasitis
revealing–allthreeofthecustomersportrayedinthisreport
wentthroughanexerciseofthisnature,anddiscoveredan
enormousamountofinefficiencyandwastedeffort.Thisprocess
deconstructionalsorevealedhowparticularstakeholdersviewed
particularprocesssteps,whichmeantthatprocess
transformationrequirednotjustthedigitizationofcontent,for
example,butalsoawholesalerethinkingofhowcontentisused
Processtransformation
requiresnotjustthe
digitizationofcontent…
awholesalerethinkingof
howcontentisusedandby
whom.Byaddressingthese
questions–andbytackling
thecontent,people,and
processissuesatthesame
time–amuchmore
comprehensivebusiness
transformationcanbeginto
takeplace.
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andbywhom.Byaddressingthesequestions–andtacklingthecontent,people,andprocessissuesat
thesametime–amuchmorecomprehensivebusinesstransformationcouldbegintotakeplace.
PlanforandEngagePeople
Thenotionthatcontent‐basedbusinesstransformationisasmuchaboutpeopleasitisaboutcontent
andprocessisessentialinunderstandinghowtocreateasuccessfulbusinessprocesstransformation.
Thismeansunderstandingandplanningforhowpeople–customers,employees,partners,andother
stakeholders–createandusecontent.Notonlydoesthetransformationhavetoincludearethinkingof
howpeopleinteractwithcontent,italsomeansthatthosepeopleneedtobepartofthetransformation
processitself.
Thegoalistoensurethatbusinessprocesschanges–whichcanbeseenashighlydisruptiveandoften
resultinproblemswithend‐useracceptance–havethegreatestpossiblechancesforasuccessful
deployment.Thismeansthatanimportantbestpracticeistoengageandempowerinternal
stakeholdersasmuchandasearlyaspossible,andinparticular
ensurethattheyunderstandhowtheprocesschangewillenable
anetimprovementinthewaytheywork.
TothisendtheEuropeanrailroaddeliberatelystartedits
businesstransformationbylookingfor“highlyvisible”areasof
improvementthatwouldengageemployeesandhelpdriveinput
andacceptance.Theuniversitytransformationteamrunsservice
fairsandsendsoutnewsletterswithinformationonhowthe
differentaspectsofthetransformationimpactdifferent
stakeholders.AttheMidwesternutility,theCEOandCIOare
bothpersonallyinvestedinthetransformationandhaveworked
activelytocommunicatetheimportanceofthetransformation
totheiremployees.Thisabilitytostartthetransformationby
thinkingabouthowitwillimpactindividualstakeholdersandthenactivelyengagingwiththose
stakeholderstoensureacceptancecanspellthedifferencebetweenasuccessfulbusiness
transformationandanunsuccessfulone.
ThinkStrategically,ExecuteIncrementally
Theeraofbigbangimplementationsislongover,andwhiletheneedformajortransformationshasn’t
goneaway,thestateoftheartismovingtowardsamoreincremental,piece‐by‐pieceapproach.Thisis
verymuchinlinewithcurrentthinkingaboutagiledevelopmentmethodologies.Bymovingforward
withsmaller,incrementalchange,companiesareabletolimitrisk,improveuseracceptance,andbetter
managecost.Content‐basedtransformationlendsitselfwelltothismodel,andallthejoint
Animportantbestpractice
istoengageandempower
internalstakeholdersas
muchandasearlyas
possible,andinparticular
ensurethatthey
understandhowtheprocess
changewillenableanet
improvementintheway
theywork.
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SAP/OpenTextcustomersthatEACinterviewedhaveimplementedtheirsolutionsinthisway.Asnoted
above,thismethodologyhashelpedthesecustomerswiththedesignofnewbusinessprocessesand
theircontentaswelltheuptakeofthesenewmethodsandtechnologiesbytheirusers.
OpenTextECMSuiteforSAPisparticularlywell‐suitedforenablingthiskindoftransformation.The
breadthoffunctionalityprovidedbythesuiteallowstransformationteamstoenvisionafullyformed
transformationbasedonasingletechnologyplatform.TheOpenTextSuitealsolendsitselfwellto
incrementalimplementations,whichmeanstransformationteamscanimplementtheirstrategypiece
bypiece.AttheEuropeanrailroad,thisincrementalapproachhasallowedtherailroadtocarefully
constructacomprehensiveinformationarchitecturewhileprovidinganewplatformforcontent
creationandnavigationtoarapidlyincreasingnumberofusers.Similarly,attheMidwesternutility,an
incrementalapproachhasallowedittogetstartedquicklywiththebillpresentmentpartofits
transformation,whilecontinuingtosortoutthedetailsofitslargerinformationarchitecture.
LeaveTechnologyIntegrationtotheVendors
Afinalcontent‐basedbusinesstransformationbestpracticeisto“outsource”thecomplexitiesof
technologyandcontentintegrationandtransformationtovendorsthatcanprovideasmuchofthese
requirementsinan“outofthebox”manneraspossible.Sortingoutthebusinesssideofcontent‐based
transformationishardenoughformostorganizations.Sortingouttheunderlyingtechnologyissuesthat
emergeaddsanenormouslayerofcomplexitytothetransformationprocess.
Thekindsoftransformationsdescribedhereallmakebetter
useofanextremelybroadrangeofdocumentsand
informationtypes.Forcingthetransformationteamsto
acquiredetailedtechnicalknowledgeofhowtomaketheir
newprocessesworkwithanevenbroadercontentand
informationbasethaneverbefore–aswellasenablethose
newprocessestosupportanever‐changingassortmentof
inputandoutputdevices–simplyaddsalevelofcomplexity
tobusinesstransformationthathasthepotentialofmaking
itprohibitivelyexpensivetodeployandmaintain.
Leavingtheseissuestobesortedoutbysolutionsvendors
suchasSAPandOpenTextprovidesasignificantadvantage
tothejointcustomersofthecompanies.Thisadvantageis
reallytwofold–asaclosepartnerofSAP,OpenTexttakes
responsibilityforprovidingthetechnicalandfunctional
platformthatallowsSAPcustomerstoavoiddealingwith
muchoftheunderlyingcomplexityofcontent‐based
AsjointSAP/OpenText
customersmoveintonewareas
ofinnovation,suchasSAP
HANAandbigdata,mobility,
andcloud,therelationship
betweenthesetwovendors
providesaformofinnovation
insurancepolicythatallows
customerstoconsiderthe
impactofthesenew
technologieswithouthavingto
worryaboutapotential
negativeimpactontheir
content‐basedtransformation
plans.
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transformation.AndasajointSAP/OpenTextcustomer’stransformationevolves–andthat
transformation’sunderlyingprocessesandcontentelementsevolve–OpenTextisabletosupportnew
technologicalrequirementswhileminimizingtheirimpactonnewandexistingbusinessprocesses.
ThiscapabilityisindeedthecorevalueoftherelationshipbetweenSAPandOpenText,andthe
continuedimportanceoftherelationshipisborneoutinEAC’sinterviewswithcustomersaswellasits
reviewofthetechnologyandservicesprovidedundertheaegisofthetwocompany’spartnership.
Asthesecustomersmoveintonewareasofinnovation,suchasSAPHANAandbigdata,mobility,and
cloud,therelationshipbetweenthesetwovendorsprovidesaformofinnovationinsurancepolicythat
allowsSAPcustomerstoconsidertheimpactofthesenewtechnologieswithouthavingtoworryabouta
potentialnegativeimpactontheircontent‐basedtransformationplans.
Conclusion:StrategicVisionandContentbasedTransformation
Theexamplescitedinthisreportarenotnecessarilytypicalofhowcompaniesapproachbusiness
transformation.Thisabilitytounderstandtherolethatcontentandinformationcanplayinstrategic
businesstransformationisstillrelativelyexceptional.Thisisdueinparttothefactthatstrategicvision
regardingcontentandinformation,ifitexistsatall,isscatteredamongdifferentfunctionalsilosinthe
enterprise:legaldepartmentshavedifferentrequirementsandadifferentstrategicvisionforcontent
thanthevicepresidentofcustomerservice,andtheCFO’srequirementsdon’tnecessarilysynchupwith
thoseofthechiefprocurementofficer,forexample.Theresultisabusinessenvironmentthatisoften
devoidofamandateforstrategicvision,muchlessanexecutivewiththepowertoimplementone.
Addingtothecompartmentalizationofcontentandinformation‐relatedstrategiesarethesilosof
technologythatoftenexacerbatethesepotentiallyconflictingpointsofview.Thelackofenterprise‐
widestrategicvisionhasledtoatechnologyacquisitionstrategythathasaddedtothecomplexityof
contentandinformationprocesses.Inmanyenterprisesthislackofstandardizationmakesthe
implementationofastrategicvisiondoublyhard:Addingsignificanttechnologicalbarrierstothealready
dauntingbusinessbarriersthatconfrontanymajortransformationlooksverymuchlikeaprescription
forfailure.
ThecloserelationshipbetweenOpenTextandSAP–OpenTextECMSuiteforSAPisoneofthefew
solutionsbrandedandresoldbySAP–isamajorreasonwhythejointcustomersfeaturedinthisreport
havebeenabletothinkstrategicallyaboutcontent‐centricbusinesstransformation.Whileevery
companyneedstodealwiththequestionofstrategicvisionandleadership,havingatechnology
solutionthatisabletoeliminatesilosofcontentandinformationmanagementandprovideasingle
platformonwhichtobaseastrategicvisionisakeyadvantageforSAP/OpenTextcustomers.
ThepartnershipbetweenthetwocompaniesalsomeansthatSAPcustomerscantakeacorestrengthof
SAP–theabilitytomanage,atabest‐practiceslevel,industry‐specifictransactionsanddatawithinthe
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SAPenvironment–andextendthattothenon‐SAPcontentmanagementintheenterprise.Inaddition,
thispartnershipallowscustomerstodelivertheuserexperienceneededtobothcreateandconsume
thatcontenttothemobileusers,whethertheyarestudentsatauniversitylookingforastudygroupor
engineerslookingforamanualtoservicealocomotive.
Perhapsmostimportantly,thispartnershipallowscompaniestoplanforthelong‐termstrategywhile
implementingthatvisionincrementally.Thisgoesalongwaytosupportingtherealitythatmost
companiesfacewhenlookingatlong‐termtransformationalchange.Takinganincrementalapproach
allowsformorecarefulplanning,isbetterforuseracceptance,lowersfinancialrisk,andallows
transformationtobetrulytransformativewithoutbeingdestructive.
Whetherthebusinesstransformationiscomplexandresource‐consumingorrelativelystraightforward,
whenitcomestocontent‐basedtransformationintheSAPcustomerbase,usingOpenTextECMSuite
forSAPasthetechnologicalandfunctionalfoundationoftransformationprovidesasolidfoundationfor
strategicchangeinanarea–contentandinformationmanagement–thatwillonlygrowinimportance
overtime.