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MBA masterclass AG - Steven ten Napel

Date post: 19-Jan-2017
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“Every company is a software companyAgility, Innovation
  • Every company is a software company

    Agility, Innovation

  • ISVs software is their business

    Enterprises use software to run their businesses

    Is this a valid differentiation in today's world?

    Artificial Silos

    If it is not, what does it mean to either in terms of competencies and/or business models?

  • Ford sells computers on wheels

    DreamWorks technology company in the business of animation

    Fedex a logistics company that runs a software company inside Fedex

    Consider today's Business landscape

    Xerox a photocopying company that is into document management and workflow solutions

  • Growingup,Iusedtoworryaboutmakingandsellingmorecars;butnowIworry,whatifweonlymadecars?Justmakingcarsisnotourfuture BillFord,ExecutiveChairman,FordMotorCo.

  • Innovationintheautoindustryincreasinglyinvolvessoftwareandelectronics.Thestandardestimateisthat60percentofvehicleinnovationisnowsoftwareandelectronics,butwetendtobelieveitisevenhigherthanthat PatrickMilligan,Fordsseniormanagerforvehiclesolutions

  • It is estimated that there are 10 million lines of code in Ford 2010 vehicles!!!

  • Innovation at work - Fords future is driven by



    Fords Smart Mobility

    Customer Experience

    Autonomous Vehicles

    Big Data and Analytics

  • These technology drivers are not unique to Ford and are equally applicable for any enterprise

    that aspires to transform its business and handle digital revolution

  • Whats driving these diverse companies ?

    Ford every automobile it builds has sophisticated electronics with advanced logic and real-time computing power that monitor and drive every component in the vehicle

    DreamWorks uses latest technology to transform animation into a manufacturing lineFedex hundreds of developers build various products that generate and use data on every package it ships in real-time

    Xerox transformed itself into a full-fledged computer services company

  • Mature competencies in technology, specifically computing and software are at the heart of these businesses

    Software IP is driving innovation across these companies

    Even though they are not ISVs, they build, own, and support software (IP)

    They have transformed their traditional businesses into cutting edge technology hubs embracing agility and innovation

  • SMAC, Big Data, AI, IOT, and robotics are transforming how traditional businesses function

    People, technology, and processes both internal and external getting transformed

    Disruptive Innovation is the order of the day

    Technology innovation is creating new business models and generating new revenue streams

  • Enterprise IT will also change the face of ISVs

    IOT is changing the face of manufacturing

    Digital Transformation and Innovation Strategy are key business drivers

    Enterprises will generate terra bytes of data, which can be used by them to create new applications, service lines and revenue streams in a proprietary manner

  • New Business Models and new revenue streams

    GE outfitting industrial machinery with sensors generates real-time data leading to a new business line offering predictive maintenance plans

    Xerox Workflow solutions serving the BPO domain; new business and revenue stream

    Fedex SenseAware in package sensing device, service to healthcare and life sciences companies

  • Ability to deal with technology and software in a sophisticated manner is at the heart of all the enterprises that have handled the challenges associated with digital revolution and successfully transformed their businesses

  • Failure to embrace innovation has a very high cost - Kodak is a great example of an iconic company failing due to its inability to adapt

  • You dont have to be a startup to embrace innovation, as giants like Ford, Disney, and Xerox have proven

  • To successfully navigate the challenges of the digital revolution, every company has to embrace innovation, and transform itself into a software company

  • Can every company become a software company and build IP?

  • Companies need help in transforming Enterprise IT into IP building factories

  • Are enterprises equipped to transform into IP building factories on their own?

  • Digital Transformation challenges for enterprises

  • Companies will have to undergo a fundamental business transformation

    Companies must embrace an organisational transformation to embrace risk, innovation and flatten the decision making processes

    How can companies become software IP factories?

    Enterprise IT mindset must be transformed to a Product mindset

    Engage with mature IT service partners to facilitate this transformation

  • Decouple the management of customer-centric front-end systems and applications from the management of existing transaction-oriented back-end systems

    Deploy state-of-art digital practices for the front-end, consumer-facing applications

    Adopt 2-speed IT strategy

    2-speed IT strategy will enable enterprises to build innovative products and services capable of delivering great customer experiences

  • To overcome shortage of right talent in their native countries

    Faster scalability, optimized costs, de-risking operations and access to diverse skilled talent pool

    Opt for Distributed software development

    Leverage 24x7 development cycles with multi-location, and multi-time zone facilities

    Proximity to emerging, fast growing markets

  • Build the right team

    Leverage Agile methods such as Scrum

    Keys for Optimized software development with distributed teams

    Utilize cloud-based tools

    Adapt cutting-edge productivity tools to facilitate seamless communication, workflow, process, and project management

    Continuously measure key metrics, and refine processes

  • What are the best partnership models that can help enterprise IT transformation?

  • In this era of laser sharp focus on core competencies, enterprises dont have to become IP experts on their own

  • Companies have to build partnerships with mature service providers to acquire this capacity

  • Agility, speed, flexibility, scalability, and time-to-market should be the key drivers

  • People outsourcing and/or project outsourcing will not result in any sustainable transformation Resources, and processes driven and controlled by the service provider low level of integration

    Traditional IT Outsourcing is not the answer

    Low level of task based reactive output, with little incentive for innovation

    Basic, hands off engagement

    Rigid in scope, deliverables dictated and controlled by the nature of contract

  • For developing IP, enterprises need dedicated teams for knowledge continuity

    Need partners who can extend their capacity

    What should an ideal partnership offer to the enterprise?

    As the domain experts, enterprises must be in the drivers seat and not the service providers

    Mature and collaborative engagement

    Complete flexibility in scope to enable you to react fast to changing business and technology landscape

  • coMakeITs strategic engagement framework offers a mature, collaborative model

    Offers sophisticated capacity extension

    Strategic engagement framework - Distributed development with In-sourcing

    Enterprises are in the drivers seat and control the people, process, and the deliverables

    coMakeIT handles all the support infrastructure through its shared services model, and allows the customer to exclusively focus on software and product development

    Complete flexibility in scope to enable you to react fast and innovate to changing business and technology landscape