On March 4, 2013, NASSCOM, the industry association for the IT BPO sector in India, announced a restructuring plan to help realize its goal of India becoming a $300 billion industry by 2020. The restructuring plan is based on an independent committee’s recommendations, chaired by Infosys cofounder N.R. Narayana Murthy. Key highlights from the announcement:
Realignment of the NASSCOM structure into seven verticals (IT services, business process management, global in-house centers, engineering and R&D services, Internet and mobile, products, and domestic market) and five enablers (global trade, policy advocacy, outreach, skills and talent, and regional connect).
Executive Council to be reconstituted to have adequate representation from the seven identified verticals
Formation of various councils, including national vertical councils, country councils in key markets, and strengthened regional councils to address local issues.
Set up five centers of excellence in five years for software engineering, emerging technologies, vertical solutions, eCommerce, service excellence, and governance.
Facilitate 100,000 certifications in specialist skills and domain areas.
My trip to the Mobile World Congress in Barcelona this year drew mixed emotions: excitement over the vast changes in the mobile world, followed by frustration at having my laptop bag stolen. The last time I was there, in 2008, Motorola was a phone and infrastructure manufacturer, Nortel Networks was still in business, and Nokia Siemens Networks was barely a year into its merger.
Today, Nortel (and my bag) is but a distant memory, Motorola Mobility is part of Google, and others, like Alcatel Lucent, have battled to stay relevant in an age of cheaper products and services. Nokia Siemens Networks, for instance, is today a more focused, leaner company, recently announcing a return to profitability after quarters of losses. Even the venue has shifted from the old grounds to a newer, larger facility.
The GSM Association (GSMA) projects in a global report that developed economies will save US$400 billion in healthcare costs from mobile health services by 2017, and a reduction in carbon emissions of 27 million tons (the equivalent of planting 1.2 billion trees) via smart metering technology in the same period.
Deutsche Telekom launched the joyn messaging service in Germany today. It is hardly the first carrier to do so; Telefonica, Vodafone, MetroPCS, and SK Telecom have already launched such services. But Deutsche Telekom’s launch gives me the chance to point to an opportunity for joyn that has not been talked about a lot so far.
Rich communication services (RCS), which is marketed as joyn, is a joint-service initiative between carriers and handset manufacturers that empowers people to combine ways to be in touch with contacts in their address book: talking, chatting, and sharing videos, photos, and files. For the most part, joyn is aimed at consumers. Joyn is usually seen as a carrier response to counter the threat to traditional revenues from OTT providers like WhatsApp. I believe, however, that the real potential for joyn is in the business arena. Joyn is hardly going to generate any direct revenues for carriers. It’s the potential of joyn as a platform for interactive social engagement that is more interesting:
Businesses confront a major shift in communication behavior. Businesses are dealing with the impact of changing systems of engagement and the implication of mobility and big data in the business environment. Social media services, including chat, video sharing, and file exchange, are experiencing rapid uptake. But these emerging systems of engagement depend on an underlying communications infrastructure. The successful CIO will embrace the trend of interactive social engagement and turn it into a competitive advantage for his business.
On February 28, 2013, India (as part of its 2013-2014 budget) announced that it would increase the excise duty on mobile phones costing more than $36 to 6%, up from the current level of 1%. Forrester believes that this increase will not affect the mobile industry in India very much because:
Sub-$100 smartphones will trigger new kinds of competition in the market. As high-end mobile phones get more expensive, Forrester predicts that smartphones costing less than $100 will be in much greater demand. Moreover, handset manufacturers will absorb a large portion of the price increase to sustain their sales.
Explosive mobile Internet growth. With increasing urbanization and improving per capita income, more people will begin to use the Internet, and the use of smartphones will rise quickly. We forecast that the mobile Internet user base in India will grow by more than 30% year-on-year over the next five years.
Addicted social media youngsters. With more than 61 million Facebook users, India ranks as Facebook’s third-largest audience in the world after the US and Brazil. Half of these users are between 18 and 24 years of age, and the majority of them use their mobile phones to connect to the world.
Rapid eCommerce growth complementing the mobile sector. Forrester estimates that eCommerce revenues in India will increase more than fivefold by 2016, jumping from US$1.6 billion in 2012 to US$8.8 billion in 2016. Mobile-friendly sites from various players and eCommerce website aggregators will help accelerate mobile Internet adoption.
Well, it looks like the folks in Washington have done it. The device, called "sequestration," that imposes mandatory across-the-board cuts in Federal defense and non-defense spending is actually going into effect. That mechanism was created back in 2011 at the time of the US debt ceiling crisis as an outcome so terrible that it would force Republicans and Democrats to find a compromise that starts reducing the US Federal deficit. Instead, it has itself become the compromise between a Republican plan that would impose all of the planned $85 billion in budget cuts in the current fiscal year on non-defense spending, and an Obama proposal for $85 billion in tax increases, future cuts in entitlement spending, and selected defense and non-defense cuts. Republicans would rather see actual cuts in current US spending, even if that cuts spending on defense, their favorite category of Federal spending, rather than support any increase in taxes. And Democrats would rather see cuts in non-defense discretionary spending rather than in Social Security or Medicare, even if that means many of their favorite Federal programs will face cuts.
The only source of competitive advantage is the one that can survive technology-fueled digital disruption — an obsession with understanding, connecting with, and serving customers. Forrester’s recent research, summarized in our CRM playbook, spotlights the six key challenges you must navigate in 2013.
Thanks to digital platforms, your customers live in a world of heightened expectations and abundant options; they can get more of what they want, in more places, at more times, than ever before. A new breed of competitors is on the scene that uses digital tools and platforms to get closer to customers and engage with them in deeper and novel ways. Digital disruptors threaten to make your organization irrelevant by delivering a more compelling product and service experience than you can and at a lower cost.
Trend 2: Companies Transform To Become Experience-Driven Organizations
Application owner or application product manager roles are increasingly common in many organizations and these roles play a critical part in application rationalization efforts. Organizations fill these roles with staff from a diverse range of backgrounds including enterprise architecture, business analysis, application development and business operations. In some cases, it is not a discrete role, rather an additional responsibility for an individual staff member or group of staff members. However the role is organized and structured, it is important both in terms of accountability for the application as well as defining and delivering the application's direction and value add. So what are the key skills or characteristics that makes this role successful? What are the knowledge domains, behavioral characteristics and aptitudes that differentiate high performers in this role?
There are four primary areas of domain knowledge (with knowledge defined as familiarity, awareness and understanding gained through experience or study) that can inform the profile of domain skills your organization may require:
- Technical knowledge —how does this application work and what are its effects?
- Business-specific knowledge —what makes our organization work operationally and culturally?
- Process knowledge — which processes fuel our organization and its competitive edge?
- Industry sector knowledge — which forces, markets and models characterize our industry sector.