“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,Ford’sseniormanagerforvehiclesolutions

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

Innovation at work - Ford’s future is driven by

Connectivity

Mobility

Ford’s “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

What’s 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 line”Fedex – 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 don’t 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 don’t 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

coMakeIT’s 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