I concluded my March 2013 report on the role of software assets in business innovation by proposing that “The combination of software assets, strong domain expertise, analytics, and as-a-service delivery models will increasingly allow traditional service providers to reinvent the way they deliver business value to their clients.” I was glad to hear that IBM recently announced a deal with L’Oréal that directly supports this position. The announced engagement actually includes all these components:
The procurement domain expertise of IBM Global Business Services addresses business pain points. L’Oréal USA grew rapidly over the past few years via an aggressive acquisition strategy that caused indirect procurement processes to remain highly disparate. The company knew that there was a significant gap between negotiated savings and realized savings in its indirect procurement operations. IBM GBS consultants brought strong procurement expertise to work with L’Oréal’s existing sourcing team to transform existing processes. IBM Global Process Services (GPS) category experts are working with L’Oréal to develop and implement category sourcing strategies.
The IT services industry is being challenged on two opposite fronts. At one end, IT organizations need efficient, reliable operations; at the other, business stakeholders increasingly demand new, innovative systems of engagement that enable better customer and partner interactions.
My colleagues Andy Bartels and Craig Le Clair recently published thought provoking reports on an emerging class of software — smart process apps — that enable systems of engagement. In his report, Craig explains that “Smart process apps will package enterprise social platforms, mobility, and dynamic case management (DCM) to serve goals of innovation, collaboration, and workforce productivity.” In other words, smart process apps play a critical role in filling gaping process holes between traditional systems of records and systems of engagement.
The Renaissance was possible because of dissemination of ideas from the later 15th century. The availability of paper and the subsequent invention of the printing press in 1445 forever changed the lives of people in Europe and, eventually, all over the world. Previously, bookmaking entailed copying all the words and illustrations by hand, often onto parchment or animal skin. The labor that went into creating books made each one very expensive to make and acquire. The advent of the printing press helped produce books better, faster, and cheaper and led to disruptive cultural revolution.
We are experiencing a very similar phenomenon today. We are in the midst of digital disruption. The printing press of our time is platforms such as social, mobile, cloud and analytics that help propagate value to our customers better, faster and more cheaply than previously available options. So whether you are on board or not, this disruption is taking place; the two choices you have are: become a disruptive CIO or be disrupted.
Benchmark data from the survey will feed into our Sustained Business Innovation Playbook. We're aiming to publish the results in December or January. If you're not a client, enter your email at the end of the survey, and we'll share the results with you.
. . . and thanks in advance for sharing your experiences.