Tag: Forbes

Data Management: An Unwitting Game of Russian Roulette | Blog

I noted in several recent blogs that the COVID-19 crisis increased the need for digital transformation because the crisis brings new value-creation opportunities to businesses, and I explained how to capture those business advantages even in a recession. It necessitates implementing the right infrastructure – not just cloud and automation, but also a robust data management capability. Unfortunately, many companies accelerate digital transformation without a robust data management structure. Warning: Lacking this ability for data mastery, they essentially play Russian roulette with their business going forward.

Read my blog on Forbes

Impact Of Coronavirus Threat To The IT Services Industry | Blog

Clearly, the coronavirus (COVID-19) already has an impact on the global economy and broader market. Companies are cancelling conferences and events. They are closing their campuses to outsiders. Travel is restricted. And in some instances, companies impose a work-from-home policy. In the IT and BPO services industry, decision-making is stalled, and we already see clients cancelling planned contracts.

How bad is the disruption to the services industry? It will have a negative impact on revenue growth in the next quarter (ending in June 2020) and potentially in several quarters to come. New projects will be postponed or cancelled. This is because, first, companies simply cannot buy complicated services without some form of travel. Second, any large initiatives require executive support and energy, and they won’t have time to push contracts forward during the next few months.

Read more in my blog on Forbes

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Hyperscale Cloud Providers Shaping The Platform Marketplace | Blog

Today, nearly all companies invest in assembling digital platforms as a source of significant efficiencies and competitive advantage. Platforms enable a data-driven world and allow companies to create new business value in improving experiences for customers, employees and partners. Multiple platforms and other software components usually comprise the platform a company assembles. For example, a consistent component of almost all platforms is the heavy use of cloud and the rich set of capabilities available from the hyperscaled platforms. But companies need to understand the consequences of the presence of this component in the platform they build.

Read more in my blog on Forbes

Digital Transformation: Underperforming Or Growing? | Sherpas in Blue Shirts

We’ve moved from a point of the media talking about the digital transformation’s promises and opportunities to a point of media pointing out many digital transformation projects are underperforming in expectations. Adding fuel to that fire is Gartner’s recent claim that digital transformation is going through the trough of disillusionment. But the facts belie that. We at Everest Group struggle with the Gartner claim, given that we are seeing an uptick in the size of digital transformation projects. What’s the explanation for the difference between Gartner’s claim and what we’re seeing?

Here’s what we see: the size of digital transformation projects is exploding. Last year we saw relatively small, focused projects of $500,000 to $3 million. Now digital transformation projects consistently hit $20-$100 million in size.

We find Gartner’s comment interesting, but I think it’s dangerous to take that comment in isolation.

Read more at my Forbes blog

Building Capability For Successful Business Transformation | Sherpas in Blue Shirts

Many studies over the past decade reveal the high rate of failure in business transformation initiatives. I think that’s a daunting record that signals risk for companies considering transformation. Even so, I’ve worked with companies that succeed in major transformation. So, I blog frequently about some of the most significant principles for approaching these initiatives, de-risking the journey and the factors influencing success or failure. Recently, I spoke with an executive who is driving a major, company-wide transformation initiative at an energy company. What they’re doing is noteworthy and a model your company may wish to follow.

The company’s transformation initiative arose because the CEO realized the business needed to be more agile to survive and prosper in this new age of flexible energy production. In addition, except for the IT group, bench marking revealed gaps in departments and business units compared to world-class performance.

Principle: Go Slow To Gain Buy-In And Build A Culture For Change

As the executive explained to me, the CEO understood that successful transformation would first necessitate building a culture of change into the organization – a belief in their ability to transform. Rather than starting with large structural changes, they first created a simple but powerful framework to build the capability for change. The framework focused on starting with smaller initiatives that allow employees and leaders to learn how to drive projects, succeed and build belief in their ability to deliver.

Read more at my Forbes blog

SMBs Turning To Finance and Accounting Outsourcing Because Of The Cloud | Sherpas in Blue Shirts

An interesting phenomenon is happening because of digital transformation. As enterprises collapse their technology and functional stacks through digital, it disrupts their talent model and leads to a new organizational risk. At the same time, it’s starting to drive a new market for service providers. Let’s take a closer look at this developing trend where it’s currently most evident – in the Finance and Accounting (F&A) processes in small and mid-sized enterprises.

In collapsing the technology stack, companies move from running financial management software on their servers with a license update to cloud-based SaaS systems (such as Intacct or NetSuite) that provide the software and a more flexible set of reporting functions. The standardization and functionality benefits are great.

Read More Here

The Primary Challenge To Blockchain Technology | Sherpas in Blue Shirts

Any emerging technology goes through a hype stage. It takes a while to get the kinks out and for pilots and proofs of concepts to prove use cases and shift the curve to broad adoption. The power and disruption of blockchain is evident in the news almost daily, and people are beginning to understand how blockchain distributed ledger technology works. I’ve previously blogged about soaring investments in pilots and proofs of concepts (POCs) on its security and examples of use cases. Even so, there are several issues currently slowing adoption.

Blockchain adoption is currently crossing the chasm, and I believe the next two years will be critical for resolving issues now slowing broader adoption.

Read more at Forbes blog

Why Anticipated Value From Digital Implementation Often Disappoints | Sherpas in Blue Shirts

Every senior executive recognizes that digital disruptions are both a huge potential blessing and an enormous threat. Companies can be Uberized out of existence, as is happening with taxi cabs. Or like Amazon, companies can create whole new offerings and competitive advantage. GE uses the power of the Internet of Things to create a new $5 billion business and transform its competitive position. But if it didn’t, new competitors could take its place. It’s no wonder companies often fall into the trap of believing technology can create value.

Businesses recognize the power of digital technology. However, the technology business presents a great lie to the market: Buy this technology and you will be able to do wonderful things. At one level, that’s true. Companies that have bought technology have accomplished wonderful things. But it isn’t true that the technology drives the benefit. The business model drives the benefit.

Read more in my blog at Forbes.

What’s Driving The Vibrant Growth In Global In-House Centers for Services? | Sherpas in Blue Shirts

There is a do-it-yourself (DIY) movement building in the services space. At Everest Group, we continually track the number of Global In-house Center (GIC) startups, and the number is accelerating. Along with new startups, existing GICs (formerly known as “captives,” or enterprise shared-services organizations in low-cost areas) are expanding their scope. In this post, I’ll highlight four reasons why the DIY GIC movement is growing and delivering value.

  1. Lower Barriers to Entry
    Historically, building a GIC or captive has been difficult and risky due to the substantial barriers to entry. It’s a daunting prospect to go into a country where you don’t have a presence, particularly in a developing country such as India or Eastern Europe or South America and master the complexities of local property regulations, business licensing, hiring practices, finding and identifying the right leadership, finding and hiring the necessary talent teams.

Read more at Peter’s Forbes blog.

Thinking Bigger with Digital | Sherpas in Blue Shirts

It’s no surprise that companies are diving into digital. When combined with new business models, digital technologies not only result in extreme efficiencies but also set the stage for the ability to change a company’s competitive posture. We’re seeing markets transform as they rotate into digital. Moving into the digital world drives two effects. It clamps down on efficiencies and productivity. But what’s really interesting to me is digital’s rippling effect.

Like pebbles tossed into a pond, rotating into digital uncovers new addressable markets. For example, let’s look at the new market that digital creates in the call center space.

Read more at Peter’s Forbes.com blog

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