Innovation is a two-way street in a BPM relationship

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Innovation is a 2-way street in a BPM relationship”, says Keshav Murugesh, WNS’s Group CEO, in a conversation with Raconteur, an independent business publication distributed along with the highly …

Innovation is a 2-way street in a BPM relationship”, says Keshav Murugesh, WNS’s Group CEO, in a conversation with Raconteur, an independent business publication distributed along with the highly respected daily, The Times, in the UK. Read the complete interview here –
http://bit.ly/18mFEHS

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  • 1. - BANK -FINANCE$_28.May.2013PAGE 03BOOST BUSINESSAS WELL ASCUT YOUR COSTSPAGE 07TWEET AND POSTIN THE NEW AGEOF SOCIAL MEDIAPAGE 12MAKING NOODLESIS CHEAPER HERETHAN IN CHINA_ _ _
  • 2. 05theraconteur.co.uk twitter.com/raconteurmediaBUSINESS OUTSOURCING05theraconteur.co.uk twitter.com/raconteurmedia 5COMMERCIAL FEATUREInnovationisatwo-waystreetinaBPMrelationshipIn a Q&A, Keshav R. Murugesh, group chief executive of WNS Global Services,discusses innovation in a business process management (BPM) contextEvery client talks about “innova-tion” as the key area of focus in anoutsourcingengagement.However,very few say they actually see it intheir relationship with the provider.Whyisinnovationsodifficult?The conventional definition of inno-vation may not fit into a BPM con-text. If buyers are looking for “dis-ruptive” innovation, it may nothappen at a regular interval like inthe case of Google or Apple. This isnot to say that disruptive innovationisimpossibleinaBPMcontext,butitwillbefarandfewinbetween.Innovation in a BPM environmentis more a two-way street, actually.If the engagement model is aroundpartnership, then innovation is morelikely to happen. Providers and cli-ents have to engage in a relationshipthat has matured far beyond the“vendor-buyer” construct. Thereare also innovations that may seemvery risky at the start of a relation-ship, more so when non-linearmodels are proposed. The engage-ment maturity guides the innovationinaBPMcontext.I would equate innovation in a BPMcontext as viewing the hour-hand ofa clock; it does not move if you keeplooking at it. It’s only after a point oftimethatyouseeithasmoved.Howdoyoudefineinnovation?I see it in a few forms in our industry:a completely new disruptive businessidea; completely new high-impactbusiness outcome, possibly creatinga new revenue stream for the client;a dramatic idea that changes the wayour client engages or interacts withitsend-customer;orevenanideathatcan change the steer of the client’sorganisation internally. All these, forme,areinnovations.What do buyers do to help or hin-der the changes you want to makethatleadtoinnovation?Innovation should be an “aspiration”for both sides. The provider and cli-ent must partner with each otherto create something truly worthy ofrecounting or partaking in the out-come. It definitely cannot be whatI call the “tick-the-box” approach.It cannot be led by service-levelagreements (SLAs) where a pro-vider is under pressure to showinnovation because it is part of aquarterly review. Hence, the earlierpointsImadearoundsharingarela-tionship of equals and partneringis far more conducive to the buyer-providerconstruct.Clients can help innovations byasking questions that can spur it.For instance, what more can I driveinto my process to make the out-come more dramatic? What kind ofanalytics can change the way I workin one of my processes? How willI be able to generate a completelynew revenue stream with my exist-ingsalesandmarketingforce?How do you go about the process?Anybenchmarks?Reducing headcount on a par-ticular project would prima facieseem like a great way to improveefficiency and reduce cost on theproject. But that may not alwaysbe an incentive for the providerand its staff to innovate. Insteadgain-sharing, productivity and out-come-based benchmarks are bet-ter methods to innovate.Providers should nurture a cli-mate of innovation and motivatethe staff by including contractualincentives. Providers should alsowork towards creating leaders thatmotivate the staff and inspire themto work towards measurable inno-vation-centricprojects.Providersandclientshavetoengageinarelationshipthathasmaturedfarbeyondthe‘vendor-buyer’constructInspired to outsource? In needof reviewing your existing rela-tionships? Whether you are newto outsourcing or a veteran inneed of some focused analysis,a conference in London nextmonth could help businessesfrom all sectors.The Gartner Outsourcing &Strategic Partnerships Summitpromises to deliver practicalguidance and strategic adviceon outsourcing and IT services.The September 9-10 confer-ence focuses on rethinkingsourcing strategies and devel-oping best practices.“The truth is that almost allfirms will need to considerthe issues on the summit’sagenda,” says Gartner. “Dis-ruptive forces – social, mobile,information and cloud – havecreated a new imperative fororganisations’ sourcing strate-gies to evolve.“What does that mean for you– assessing new products andservices, selecting new vendors,adapting evolving deliveryoptions and new pricing models,addressing a host of geographicopportunities, and optimisingthe vendor ecosystem?“Attending this conferencewill help you to make informedsourcing decisions based on thelatest industry thought-leader-ship and best practices.”The agenda is designed forkey sourcing roles:Track A – Chief informationofficers and senior leaders:Growing and succeeding in adigital worldTrack B – Sourcing andcontract managers: Selecting,evaluating and contracting foroptimal dealsTrack C – IT vendor manag-ers: Optimise your IT vendorecosystemTrack D: Activating the nextgeneration enterprise with cloudand industrialised servicesTrack E: Workshops, roundta-bles and networking.To view the full agendaand register, visitgartner.com/eu/outsourcingOUTSOURCINGANDSTRATEGICPARTNERSHIPSSUMMIT£ £5msavingsfromLondonFireBrigade’sten-yearcontractwithCapitatorunits999serviceSource: Financial Times$ $50kpaidbyUScomputerprogrammerAndrewValentine,whoearned$250,000,tosecretlyoutsourcehisownjobtoChinaSource: The Telegraphoffirmsusingoutsourcingcitecostasthenumber-onereasonSource: IBM27%10.7%projectedsalaryincreasesinIndiafor2013Source: Aon50%ofcouncilsoutsourcerubbishcollectiontocutcostsSource: Local Government Association71%ofchiefinformationofficersarefrustratedbyhiddencostsofmainframecomputeroutsourcingSource: Compuware Corporationtheraconteur.co.uk twitter.com/raconteurmedia 5COMMERCIAL FEATUREInnovationisatwo-waystreetinaBPMrelationshipIn a Q&A, Keshav R. Murugesh, group chief executive of WNS Global Services,discusses innovation in a business process management (BPM) contextEvery client talks about “innova-tion” as the key area of focus in anoutsourcingengagement.However,very few say they actually see it intheir relationship with the provider.Whyisinnovationsodifficult?The conventional definition of inno-vation may not fit into a BPM con-text. If buyers are looking for “dis-ruptive” innovation, it may nothappen at a regular interval like inthe case of Google or Apple. This isnot to say that disruptive innovationisimpossibleinaBPMcontext,butitwillbefarandfewinbetween.Innovation in a BPM environmentis more a two-way street, actually.If the engagement model is aroundpartnership, then innovation is morelikely to happen. Providers and cli-ents have to engage in a relationshipthat has matured far beyond the“vendor-buyer” construct. Thereare also innovations that may seemvery risky at the start of a relation-ship, more so when non-linearmodels are proposed. The engage-ment maturity guides the innovationinaBPMcontext.I would equate innovation in a BPMcontext as viewing the hour-hand ofa clock; it does not move if you keeplooking at it. It’s only after a point oftimethatyouseeithasmoved.Howdoyoudefineinnovation?I see it in a few forms in our industry:a completely new disruptive businessidea; completely new high-impactbusiness outcome, possibly creatinga new revenue stream for the client;a dramatic idea that changes the wayour client engages or interacts withitsend-customer;orevenanideathatcan change the steer of the client’sorganisation internally. All these, forme,areinnovations.What do buyers do to help or hin-der the changes you want to makethatleadtoinnovation?Innovation should be an “aspiration”for both sides. The provider and cli-ent must partner with each otherto create something truly worthy ofrecounting or partaking in the out-come. It definitely cannot be whatI call the “tick-the-box” approach.It cannot be led by service-levelagreements (SLAs) where a pro-vider is under pressure to showinnovation because it is part of aquarterly review. Hence, the earlierpointsImadearoundsharingarela-tionship of equals and partneringis far more conducive to the buyer-providerconstruct.Clients can help innovations byasking questions that can spur it.For instance, what more can I driveinto my process to make the out-come more dramatic? What kind ofanalytics can change the way I workin one of my processes? How willI be able to generate a completelynew revenue stream with my exist-ingsalesandmarketingforce?How do you go about the process?Anybenchmarks?Reducing headcount on a par-ticular project would prima facieseem like a great way to improveefficiency and reduce cost on theproject. But that may not alwaysbe an incentive for the providerand its staff to innovate. Insteadgain-sharing, productivity and out-come-based benchmarks are bet-ter methods to innovate.Providers should nurture a cli-mate of innovation and motivatethe staff by including contractualincentives. Providers should alsowork towards creating leaders thatmotivate the staff and inspire themto work towards measurable inno-vation-centricprojects.Providersandclientshavetoengageinarelationshipthathasmaturedfarbeyondthe‘vendor-buyer’construct