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Posted by Fred Giron on April 23, 2012
Several recent Forrester reports, including “Mobile Is The New Face Of Engagement,” have shown how new business success imperatives are pushing clients to change the way they leverage IT solutions. In my report “The Move To An Asset-Based Services Play,” I describe how IT service providers will have to adapt to these new rules of engagement if they want to stay relevant to their clients in the long run. In particular, the increased focus on business innovation will push service providers to invest more in the development of software assets — or solution accelerators (SAs) — that provide strong business value to multiple clients.
The move to asset-based services will force service providers to invest in new operating models that differ significantly from their traditional models and are closer to the ones leveraged by software providers. In my next report, I will cover some of the associated best practices in terms of the organization, people, processes, and tools that IT services firms need to implement to make this shift happen internally. Service providers will need, among others, to recruit new skills such as product and portfolio managers, incentivize the creation of software assets, fund and incubate the creation of solution accelerators, and overhaul their partnership management processes.
I also believe that service providers will pursue an increasing variety of business models for their solution accelerators in order to offer the flexibility clients are demanding and achieve scale objectives. Here are four examples of business models and the solution accelerators associated with them, going from the traditional project-centric model to the more emerging business process-centric model:
Service providers that pursue these multiple business models will face a rapid and significant increase in the number and complexity of their operating models. In this new reality, strong governance in addition to stringent portfolio management processes will be key success factors for the leading asset-based IT services firms of the future.
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