HfS Webinar Slides: Unveiling the Digital OneOffice Premier League

The Services Research Company

Unveiling the 2017 Digital OneOfficeTM Premier League

Phil Fersht, HfS Research Melissa O’Brien, HfS Research

©2017HfSResearchLtd.

PhilFersht,ChiefAnalystandCEO

[email protected]@pfersht

MyResearchPrac:ceAreasfor2017

§  ITServicesStrategyandConsulCng§  Finance&AccounCngOperaConalStrategiesandtheCFO’schallenges§  As-a-ServiceandOutcome-basedDeliveryModels§  TheDigitalOneOfficeTMFramework§  ChangeManagementStrategies

Blueprintsfor2017

§  ITServicesStrategyandConsulCng§  Finance&AccounCng-as-a-Service§  ITServicesbykeyverCcals

KeyThemesImpac:ngMyResearchPrac:cein2017

§  EngrainingtheDigitalOneOfficeintoOperaConsandOutsourcingStrategy§  HowDigitalandCogniCveAutomaConformthefabricofITServices§  UnderstandinghowtomakeRPAmeaningful§  ThefutureroleofthefinanceprofessionalinthefaceofAs-a-Service§  ThestrategicresponseofITandBPOserviceproviderstorevenuecannibalizaCon§  NewbuyerneedsandevaluaConcriteriainselecCngoperaConalservice


MelissaO’Brien,ResearchDirector,ContactCenterandOneOfficeTMCustomerExperiences

MyResearchPrac:ceAreasfor2017

§  VerCcalSpecificCustomerEngagementBPO:RetailandTravel/Hospitality§  DigitalMarkeCngOperaCons§  ContactCenterOperaConsandOmni-ChannelCustomerExperience

Blueprintsfor2017

§  TravelandHospitalityServices§  DigitalOneOfficeTMRetailServices§  VirtualAgentCapability

KeyThemesImpac:ngMyResearchPrac:cein2017

§  ImpactofautomaConandanalyCcsoncontactcenteroperaConsandcustomerexperience

§  ChangingtalentneedsasaresultofconsumerdemandsandautomaCon§  DigitalmarkeCngservicesanditsroleincustomerexperience§  Socialmediaasachannelforcustomerengagement§  Customer experience related business outcomes driving connecCons between

thefrontandbackoffice

[email protected]@MelissaJaneOB


Agenda

•  WhythesmolderingdigitalplaMormhasfinallycaughtfire

•  Howopera:onsarethecri:calenablerforthedigitalorganiza:on

•  WhytheDigitalOneOfficeistheFutureOutsourcingFramework

•  WhoaretheemergingservicesleadersacrossthepillarsofOneOffice

•  WrapUp


B2BDigitalSpendCouldreach$2

TrillioninNorthAmericain

2020,ashighas$7

TrillionGlobally


•  World’slargesttaxicompanyownsnoTaxis:•  Uber•  Themostpopularmediaownercreatesnocontent:•  Facebook•  LargestaccommodaConproviderownsnorealestate:•  Airbnb •  Largestphonecompaniesownnotelecominfrastructure:•  Skype,WeChat•  World’smostvaluableretailerhasnoinventory:•  Alibaba•  Fastestgrowingbankshavenoactualmoney:•  SocietyOne•  Theworld’slargestmoviehouseownsnocinemas:•  NetFlix•  Largestso_warevendorsdon’twritetheapps:•  Google•  Themostpopularemergingresearchfirmdoesn’tsellresearchreports:•  HfS

Data is Eating our World!


InvestmentBanking

RetailBanking Insurance Technology


ChangingUseofOffshoring–Outsourcing

Howwilloffshoreusechangeinoutsourcingandsharedservicesoverthenext2years?(Netincrease/decrease)

HfS Research in Conjunction with KPMG, State of Industry 2014 N=312 Enterprise Buyers

22%13%

18% 20% 23%

12% 15%19%

15%

-4% -3%5%

12% 16%7%

3% 3% 6%

2014 Today

Increase

Decrease


AllOutsourcing-Tradi:onalvAs-a-Service2015–2020($b)

59 70 81 92 105 121 136

310 308 306 302 298 295 290

369 378 386 394 404 415 426

$0

$50

$100

$150

$200

$250

$300

$350

$400

$450

2014 2015 2016 2017 2018 2019 2020

Tradi:onalOutsourcing AASOutsourcing

CAGRUSDbillion

-1.2%

14.2%

Source: HfS Research, 2017


ValueLeversofNewGenera:onGovernance

Opera:onsTodayisallaboutIntegra:ngCapability

Data Data

Automation

Process Digitzation, Cost-Cutting, Legacy Trade-offs, Change Management, Complex technology, Bot Farms

Software Platforms

Standardize Processes, Scale, Write Off / Ring-

Fence Legacy

Self Learning, Cognitive

Continuous Improvement, Less Human Interaction

for routine activities, Change Management

Digital Business

Holistic View of all Customer Engagement

Cost, Expertise, Scale, Immigration Compliance

Global Labor

Shared Services, GICS

Centralization/Efficiency/Standardization


C-SuitewantsOneOfficeintegra:on,predic:vereal-:medataandspeedtomarket–whileaggressivelydrivingdowncostsHowcri<calarethefollowingC-Suitedirec<vestoyouropera<onsstrategy?(SVPsandabove))

20%

22%

24%

26%

29%

30%

31%

31%

42%

48%

46%

38%

55%

50%

45%

48%

48%

43%

19%

19%

17%

13%

17%

20%

15%

15%

8%

12%

12%

21%

5%

4%

5%

6%

6%

7%

Invest in cognitive technologies and machine learning to reduce reliance on mid/high skilled labor

Invest in process automation and robotics to reduce reliance on low-skilled labor

Policies that restrict the hiring of people

Improve the quality of operations talent

Scalable / Flexible services

Accelerate speed to market with new products

Create real-time data that supports predictive, not reactive decisions

Align middle/back office operations to improve customer experiences

Drive down operating costs

Mission Critical Increasingly Important Emerging Not a Directive

Source: HfS Research in Conjunction with KPMG, “State of Operations and Outsourcing 2017” Sample: n=454 Enterprise Buyers


C-SuiteDirec:ves:Hi-techmostfocusedonchangeandgrowthHowcri<calarethefollowingC-Suitedirec<vestoyouropera<onsstrategy?(“MissionCri<cal”responses–allbuyers)

0%

20%

40%

60%

80%

Drive down operating

costs

Accelerate speed to

market with new products

Create real-time data that

supports predictive, not

reactive decisions

Align middle/back office operations to improve customer

experiences

Improve the quality of

operations talent

Policies that restrict the hiring of people

Invest in process

automation and robotics to

reduce reliance on low-skilled

labor

Invest in cognitive

technologies and machine learning to

reduce reliance on

mid/high skilled labor

BFSI Manufacturing Healthcare&LifeSciences Retail Sokware&HiTech Energy&U:li:es

Source: HfS Research in Conjunction with KPMG, “State of Operations and Outsourcing 2017” Sample: n=454 Enterprise Buyers


TheFutureofOpera:ons:TheDigitalOneOfficeTMOrganiza:on

• Source:HfSResearch2017


Building the Digital OneOffice Service Provider Rankings

Wescoredeachserviceprovideragainstthefollowingfivepillarsandsub-categories:

§ TheDigitalCustomerEngagement:Weigh<ng25%

§ DesignThinkingacrossthefront/backoffice(DesigningDigitalOutcomes):Weigh<ng15%

§ TheDigitalUnderbelly(IncludesCloudInfrastructure)Weigh<ng20%

§  RPAandHybridCloudCapability

§ IntelligentDigitalSupportFuncCons20%

§  F&A,HRSaaS,SalesforceServices,Procurement&SCM

§ IntelligentDigitalProcesses20%

§  Predic<veAnaly<cs,Cogni<veServices,IoTServices

§ AnalystsformulaCngthescores:PhilFersht,MelissaO’Brien,BarbraMcGann,TomReuner,ReeCkaJoshi,DerkErbé,KhaldaDeSouzaandSteveGoldberg



2017Ranking

ServiceProvider Comments

1 IBM VerywellalignedtoOneOffice,demonstraCngproofpointsofdesignthinkingforoperaCons.GreatconsulCngandtransformaConcapabiliCesparCcularlysuitedfortheverylargestofenterprises.CommitmenttoAIandaholisCcapproachtoautomaCon.BelngbigondigitalandparCcularlycogniCvetechnologyforsupportservicedelivery.

2 Accenture AholisCcstrategyforIntelligentAutomaCon,strongcustomerexperiencedesignfocus,andmajorinvestmentanduseofdesignthinkinginternally.Playingtoitsstrengthsininfrastructurebylookingtobetheconsultantandadvisorleveragingbestinclassinfrastructureprovisiontodelivercustomersamanagedserviceexperience.

3 Cognizant HolisCcautomaConstrategyandstrongthoughtleadership.Verycompellingandpolishedmessagingaroundcustomerexperiencefocus;forwardthinkingleadershipanddesignorientedacquisiCons.

4 Deloile Strongproviderwithbreadthanddepthofskills.AnearlymoverinRPAandthesurroundingecosystem.

5 Infosys BroadcapabiliCesandincreasingpotenCalforintegraConwithanalyCcsassetsofMANAplaporm.Makinginvestmentsindesignthinkingandtalent;needsmoreprovenclientcasestudiesandoutcomes.

6 Capgemini UniqueinvestmentsindesignthinkingandevolvingtowardaholisCcautomaConstrategy.Needsmorefocusandleadershipstrength.

7 Wipro(+Appirio) RecentacquisiConsbolsteritsdigitalporpolio,includingstrategicdesignexperCse.TakesaconsultaCveapproachtoBPOandRPAwithitsEnterpriseOperaConsFramework.

8 TCS DiverseexperCseandaforwardthinkingtalentstrategyareleadingelementsofthedigitalcustomerengagement.Technicalstrengthandresourcesdominatethestrengthininfrastructureservices,whileanautomaConstrategyleveragingassetslikeignioishelpingthemovetowardmoreholisCcautomaCon.

9 Genpact Demonstratestraining,partnershipsandproofpointswithdesignthinking.

10 NTTDATA(+DellSvs) AstrongapproachtoITautomaConandconsulCng-leddigitalcustomerengagementfocus.

11 Sutherland HasprovidedrealclientsandexamplesofoutcomesforitsdesignthinkingpracCce,whichissCllsmallbutexpanding.

12 HPE(+CSC+Exchanging) Heavyfocusonthe“underbelly”element;ahistoryofbeingverycapableininfrastructureservices,parCcularlywiththeverylargestofdeals.Talksoffrontendcustomerdesignbutdoesn’thavetheclientstoriestoshowit.CSCmergerwillprovideamuchmoreholisCcapproachtoRPA,focusedonlargecomplexdeals.

PROPRIETARY – NOT FOR

REDISTRIBUTION


2017Ranking

ServiceProvider Comments

13 HCL LeadershipisemphasizingastrongfocusonautomaCon;needstoexecute.ThecustomerexperiencedesignandexecuConstoryisthere,butneedsstrongermessaging.

14 EXL StrengthincustomerexperienceisprimarilywithanalyCcsexperCse.Exploringearlystagesofdesignthinkinginternally.

15 Conduent(Xerox) Aspiringtobealeaderindigitalcustomerengagementandhassomestrongthoughtleadership;needscustomerproofpointsandastrongermessagingtopivottherebrand.

16 TechMahindra AcceleraCngautomaCondevelopmentwithproprietaryandthirdpartytoolstrategy.NeedtostartleveragingandintegraCngrecentacquisiConsforgreatermoneCzaConandinnovaCon.GoodappeCteforinnovaConandposiConingitselfwellinIoTservices.

17 WNS(+Denali) AkeystrengthisembeddinganalyCcsintosupportprocesses,whichenableclientorganizaConstobecomemoreintelligent.DenaliacquisiConaddsstrategicdigitalsourcingtoitsporpolio.

18 EY StrongautomaConcapabiliCesandemergingdigitaltransformaConfocus,butneedsmorescaletodeliveramoreholisCcsuiteofofferingsacrossthepillars.

19 Hexaware RefreshingdisrupCveapproach,withanappealingautomaConfocusandprovenSaaSimplementaConcapabiliCes,notablyintheHRspace.Needstointegratenewclientsandproveitishereforthelonghaul.

20 HGS Approachto“UnifiedCustomerExperienceStrategy”combineselementsofautomaCon,analyCcs,andvariouscommunicaConchannels(chat,text,social),includingapivottohumanstaff,whichalsohighlightsasmartblendoftalentandtechnology.Mainlyplayinginthedigitalcustomerengagementspace.

21 Concentrix StrongdigitalcustomerengagementexperCseandforwardthinkingapproachtotechnologyandpartnershipsaswellasembracingtheOneOfficeconcept;needsgreaterfocusinmessagingandidenCtymovingforward.

22 Atos TremendoussophisCcaConandmarketpenetraConinIoTwithgoodsecuritycompetenciesandincreasinglyendtoendanalyCcscredibility.

23 Syntel ApioneerofholisCcautomaConwithSyntbots.Prowessinthebankingsector,butlimitedtoahandfuloflargebanks.NewCEOneedstolayouthisroadmapandexecute.

24 Teleperformance Heavydigitalcustomerengagementprovider;largestcontactcenterintheindustryandagreatreputaConfordeliveringontradiConalandincreasinglydigitalcustomerservice.ChallengednowtopivotthebusinesstocomplementandincorporateautomaCon.

PROPRIETARY – NOT FOR

REDISTRIBUTION


Key Trends Impacting the Digital Customer Engagement Landscape

• Ever-increasingchannelsformarkeCngandengagement

• TradiConal/analogtouchpointscombinedwithdigital

CustomerChannels/TouchPoints

• GoingmuchdeeperthantradiConalcustomersegmentaCon

• Impactonloyalty,returnsalesandadvocacyPersonalizaCon

• Experiencesarenotlimitedtothecustomer:Employee,enterprise,ecosystemareallapartofre-imaginingexperienceswithinacustomer-centricparadigm

MarketDisrupCon:TheExperience

Economy


Digital Customer Engagement: Carving out a value proposition

UXDesign

CustomerJourneyMapping

Strategy/Design CopywriCng

WebDesign SEO/SEM

Social/Mobile

Engagement

Design Development ExecuCon

AnalyCcsandSegmentaCon

ContentCreaConandPersonali-zaCon


The Service Providers will bifurcate into two groupings

DigitalOrganiza:onEnablersEfficiency,Automa:on,LaborArbitrageandScalability

DigitalBusinessDesignersDataOrchestra:onandHumanCollabora:on

HfS ResearchisTheServicesResearchCompany™—theleadinganalystauthorityandglobalcommunityforbusinessoperationsandITservices.Thefirmhelpsorganizationsvalidateandimprovetheirglobaloperationswithworld-classresearch,benchmarkingandpeernetworking. HfSResearchwasnamed"IndependentAnalystFirmoftheYearfor2016"bytheInstituteofIndustryAnalystRelationswhichvotedon170otherleadinganalysts.HfS ChiefAnalyst,PhilFersht,wasnamedAnalystoftheYearin2016forthethirdtime.

HfS coinedtheterms"TheAs-a-ServiceEconomy"and"OneOffice™",whichdescribeHfS Research'svisionforthefutureofglobaloperationsandtheimpactofcognitiveautomationanddigitaltechnologies.HfS' visioniscenteredoncreatingthedigitalcustomerexperienceandanintelligent,singleofficetoenableandsupportit.HfS’ coremissionisabouthelpingclientsachieveanintegratedsupportoperationthathasthedigitalprowesstoenableitsorganizationtomeetcustomerdemand-asandwhenthatdemandhappens.WithspecificpracticeareasfocusedontheDigitizationofbusinessprocessesandDesignThinking,IntelligentAutomationandOutsourcing,HfS analystsapplyindustryknowledgeinhealthcare,lifesciences,retail,manufacturing,energy,utilities,telecommunicationsandfinancialservicestoformarealviewpointofthefutureofbusinessoperations.

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Date post:	20-Mar-2017
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