Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

IBM Award Write Up

38 views

Published on

2018 North American Managed ERP Services Product Line Strategy Leadership Award

Published in: Services
  • Be the first to comment

  • Be the first to like this

IBM Award Write Up

  1. 1. 2018 North American Managed ERP Services Product Line Strategy Leadership Award 2018
  2. 2. BEST PRACTICES RESEARCH © Frost & Sullivan 2018 2 “We Accelerate Growth” Contents Background and Company Performance ........................................................................3 Industry Challenges..............................................................................................3 Product Line Strength and Customer Impact............................................................3 Conclusion...........................................................................................................6 Significance of Product Line Strategy ............................................................................7 Understanding Product Line Strategy Leadership ............................................................7 Key Benchmarking Criteria ....................................................................................8 Best Practices Award Analysis......................................................................................8 Decision Support Scorecard ...................................................................................8 Product Line Strength ...........................................................................................9 Customer Impact .................................................................................................9 Decision Support Matrix ......................................................................................10 Best Practices Recognition: 10 Steps to Researching, Identifying, and Recognizing Best Practices .................................................................................................................11 The Intersection between 360-Degree Research and Best Practices Awards.....................12 Research Methodology ........................................................................................12 About Frost & Sullivan ..............................................................................................12
  3. 3. BEST PRACTICES RESEARCH © Frost & Sullivan 2018 3 “We Accelerate Growth” Background and Company Performance Industry Challenges As businesses prepare their companies to thrive in the digital era, IT executives are transforming their own organizations and resources. To optimize application delivery and support business goals for speed, agility, and innovation, they are deploying new applications in a private or public cloud environment. Existing applications are also coming under scrutiny as IT leaders seek to enhance their long-time critical workloads with benefits such as automated scaling and ease of integration. Consider a complex, mission- critical ERP system such as SAP or Oracle, the workhorse that supports operations for many enterprises. According to a recent Frost & Sullivan survey, 26% of US-based enterprises have deployed SAP’s modern, cloud-based S/4HANA system for at least some of their SAP workloads; another 44% say they plan to do so. Frost & Sullivan notes that simply deploying workloads on a cloud platform is not sufficient to meet escalating business needs and competitive challenges. As IT considers its legacy ERP systems, they are challenged to determine where to invest for maximum return. Which workflows and applications should be moved first, and which should be left on- premises? Which workloads require refactoring, and which can remain in “legacy” mode? How can they reduce the management burden - while still ensuring optimal performance and delivery? How can they ensure security and compliance requirements are met in a cloud environment? For assistance, an increasing number of enterprises are turning to cloud managed services providers for their critical ERP workloads. A managed services provider will lead the migration effort, ensuring that data and applications are moved with minimal business disruption. Such providers are helping businesses to optimize workloads and add efficiencies, without necessarily doing a complete “rip and replace”; for example, integrating legacy SAP data with a new S/4HANA environment. And Frost & Sullivan points out that the right managed services provider will provide ongoing management of the business’ complete ERP environment, enabling internal IT staff to focus on strategic business initiatives. Product Line Strength and Customer Impact IBM has a long-standing history in of serving customers with managed services across a variety of portfolios. They have brought forth managed SAP — originally on the customer premises or hosted — for more than 20 years. The company is also one of SAP’s first certified cloud partners, and has enjoyed a 46-year relationship with SAP. The company also offers strong managed service support for Oracle. In the cloud space, IBM has combined its strength in infrastructure delivery and management with its skill in understanding and exceeding customers’ needs using
  4. 4. BEST PRACTICES RESEARCH © Frost & Sullivan 2018 4 “We Accelerate Growth” managed and professional services to create a managed ERP portfolio delivered on cloud infrastructure that customers are highly satisfied with. Customer Ownership Experience IBM has built a strong reputation in the managed cloud ERP market, and its services have become quite vital to the success of its customers’ ERP deployments in the cloud. Among those using managed cloud services, 76% of IT decision-makers surveyed by F&S said that the managed service had helped them to improve the security of their ERP workloads (specifically SAP or Oracle). Additionally, 70% of respondents who are using managed cloud services cite faster delivery of services to the business, 68% cite the ability to provide better customer service, and 66% cite the ability to better optimize SAP and Oracle workloads. Among respondents to a Frost & Sullivan survey about managed cloud service usage, 45% of respondents were using IBM, with 23% using IBM as their primary managed cloud vendor. Respondents rated IBM the highest in customer satisfaction, with a 97% satisfaction rating. Among those survey respondents that currently use managed cloud services, 46% agreed that the assistance from their managed cloud provider had become an essential part of their overall IT strategy. Price/Performance Value Frost & Sullivan feels IBM has properly identified the market drivers that are clearly enabling the company to create a strong pipeline of managed cloud service prospects. Specifically, IBM recognizes the difficulty and challenges that businesses face in deploying legacy ERP applications in the cloud without assistance. By the year 2020, businesses expect to increase the extent of their cloud-based ERP deployments by more than 40%; in 2017, 34% of businesses had deployed more than half of their ERP workloads using managed cloud services; by 2020, the percentage of businesses will more than double to 75%. In addition, customers cite distinct challenges in deploying their ERP applications in the cloud. Among survey respondents, 79% of businesses cite concerns over application performance and reliability when deploying managed cloud services for ERP, 77% are concerned over whether they will choose the right provider to help deploy ERP in the cloud, 75% are concerned over the security of their data, and 72% fear that their managed cloud ERP deployment will not offer strong enough ROI. In recognition of these numbers, IBM has honed a managed cloud for ERP portfolio of offers designed to help customers effectively launch ERP applications in the cloud, with the appropriate performance, security, and ROI. With the help of a provider like IBM, 66% of managed cloud users said they are able to better optimize their ERP deployments, and
  5. 5. BEST PRACTICES RESEARCH © Frost & Sullivan 2018 5 “We Accelerate Growth” 68% are better able to manage their ERP costs. By being able to cite such strong and predictable results to prospects, IBM has grown a robust managed ERP service pipeline that will ensure growth into the future. Customer Purchase Experience IBM has a long history in the managed services space, and in pleasing customers through a high-touch deployment process. A top restraint to managed services adoption is concern about the implementation process; however, those that actually deploy managed ERP services find that the challenges they most feared are actually the places where the greatest gains in performance are made. Migration is one such area. IBM has well- documented migration procedures — including data replication and synchronization measures, processes for workload discovery and mapping, and automated tools to ease the migration process. In addition, IBM offers a team of services professionals who are experts at providing migration assistance. Security is another key area of concern, both during implementation and on an ongoing basis. The IBM managed service platform includes mature, well-established security features, as well as a robust plan for managing security proactively. Though data security may seem mere table stakes, not every managed service provider can demonstrate a high level of data security and a history of providing secure services and facilities to customers. IBM states that it generally meets or exceeds the security levels that customers can achieve internally, as well as offer highly secure cloud data centers. The company also integrates the latest security tools and technology with an expert team that has access to global threat intelligence, and can configure and deploy a service that can thwart not only known or usual threats, but will detect advanced, new, or unusual threats as well. Brand Strength A proven technology leader, the longevity of IBM is a true testament to the company’s ability to grow and evolve with the market, and to develop meaningful, impactful solutions that meet customers’ needs over the long term. IBM has shifted its business to focus not only on hardware, but to be a strong presence in the cloud services market, particularly with managed cloud services. Customers respect the tenure of the brand in the market, and concrete results that IBM offers in terms of successful managed ERP deployments provides even more substantiation for the strength of the IBM brand in the managed services market. Frost &Sullivan concludes that IBM’s 97% customer satisfaction rate for managed ERP services speaks to not only the quality of the managed service offer, but to customers’ comfort with the IBM brand as a whole.
  6. 6. BEST PRACTICES RESEARCH © Frost & Sullivan 2018 6 “We Accelerate Growth” Conclusion Managed services will continue to be a key component of the enterprise IT portfolio, as businesses strive to focus more closely on core business and turn over the running of their IT systems to a proven expert. IBM has developed a strong managed services offering around business-critical ERP services, and has proven the worth and benefits of its managed ERP services with customer results statistics. With its strong overall performance, IBM has earned the 2018 Frost & Sullivan Product Line Strategy Leadership Award.
  7. 7. BEST PRACTICES RESEARCH © Frost & Sullivan 2018 7 “We Accelerate Growth” Significance of Product Line Strategy Ultimately, growth in any organization depends upon customers purchasing from a company and then making the decision to return time and again. A full, comprehensive product line that addresses numerous customer needs and preferences is, therefore, a critical ingredient to any company’s long-term retention efforts. To achieve these dual goals (customer value and product line strength), an organization must be best-in-class in three key areas: understanding demand, nurturing the brand, and differentiating from the competition. Understanding Product Line Strategy Leadership Driving demand, strengthening brand, and differentiating from the competition all play a critical role in delivering unique value to customers. This three-fold focus, however, must ideally be complemented by an equally rigorous focus on building a superior and comprehensive product line.
  8. 8. BEST PRACTICES RESEARCH © Frost & Sullivan 2018 8 “We Accelerate Growth” Key Benchmarking Criteria For the Product Line Strategy Leadership Award, Frost & Sullivan analysts independently evaluated two key factors—Product Line Strength and Customer Impact—according to the criteria identified below. Product Line Strength Criterion 1: Breadth Criterion 2: Scalability Criterion 3: Technology Leverage Criterion 4: Features Criterion 5: Supply Chain Reliability Customer Impact Criterion 1: Price/Performance Value Criterion 2: Customer Purchase Experience Criterion 3: Customer Ownership Experience Criterion 4: Customer Service Experience Criterion 5: Brand Equity Best Practices Award Analysis for IBM Decision Support Scorecard To support its evaluation of best practices across multiple business performance categories, Frost & Sullivan employs a customized Decision Support Scorecard. This tool allows our research and consulting teams to objectively analyze performance, according to the key benchmarking criteria listed in the previous section, and to assign ratings on that basis. The tool follows a 10-point scale that allows for nuances in performance evaluation. Ratings guidelines are illustrated below. RATINGS GUIDELINES The Decision Support Scorecard is organized by Product Line Strength and Customer Impact (i.e., these are the overarching categories for all 10 benchmarking criteria; the definitions for each criterion are provided beneath the scorecard.). The research team confirms the veracity of this weighted scorecard through sensitivity analysis, which confirms that small changes to the ratings for a specific criterion do not lead to a significant change in the overall relative rankings of the companies.
  9. 9. BEST PRACTICES RESEARCH © Frost & Sullivan 2018 9 “We Accelerate Growth” The results of this analysis are shown below. To remain unbiased and to protect the interests of all organizations reviewed, we have chosen to refer to the other key participants as Competitor 2 and Competitor 3. Measurement of 1–10 (1 = poor; 10 = excellent) Product Line Strategy Product Line Strength Customer Impact Average Rating IBM 10.0 10.0 10.0 Competitor 2 7.0 7.0 7.0 Competitor 3 7.0 6.0 6.5 Product Line Strength Criterion 1: Breadth Requirement: Product line addresses the full range of customer needs and applications. Criterion 2: Scalability Requirement: Product line offers products at a variety of price points and functionality levels. Criterion 3: Technology Leverage Requirement: Demonstrated commitment to incorporating leading-edge technologies into product offerings results in greater product performance and value. Criterion 4: Features Requirement: Products offer a comprehensive suite of features to serve customers at multiple levels of functionality, ease of use, and applications. Criterion 5: Supply Chain Reliability Requirement: There is sufficient control over the supply chain to ensure availability of key components and thereby the availability of products in the product line. Customer Impact Criterion 1: Price/Performance Value Requirement: Products or services offer the best value for the price, compared to similar offerings in the market. Criterion 2: Customer Purchase Experience Requirement: Customers feel they are buying the most optimal solution that addresses both their unique needs and their unique constraints. Criterion 3: Customer Ownership Experience Requirement: Customers are proud to own the company’s product or service and have a positive experience throughout the life of the product or service.
  10. 10. BEST PRACTICES RESEARCH © Frost & Sullivan 2018 10 “We Accelerate Growth” Criterion 4: Customer Service Experience Requirement: Customer service is accessible, fast, stress-free, and of high quality. Criterion 5: Brand Equity Requirement: Customers have a positive view of the brand and exhibit high brand loyalty. Decision Support Matrix Once all companies have been evaluated according to the Decision Support Scorecard, analysts then position the candidates on the matrix shown below, enabling them to visualize which companies are truly breakthrough and which ones are not yet operating at best-in-class levels. High Low Low High CustomerImpact Product Line Strength IBM Competitor 2 Competitor 3
  11. 11. BEST PRACTICES RESEARCH © Frost & Sullivan 2018 11 “We Accelerate Growth” Best Practices Recognition: 10 Steps to Researching, Identifying, and Recognizing Best Practices Frost & Sullivan analysts follow a 10-step process to evaluate Award candidates and assess their fit with select best practice criteria. The reputation and integrity of the Awards are based on close adherence to this process. STEP OBJECTIVE KEY ACTIVITIES OUTPUT 1 Monitor, target, and screen Identify Award recipient candidates from around the globe  Conduct in-depth industry research  Identify emerging sectors  Scan multiple geographies Pipeline of candidates who potentially meet all best- practice criteria 2 Perform 360-degree research Perform comprehensive, 360-degree research on all candidates in the pipeline  Interview thought leaders and industry practitioners  Assess candidates’ fit with best-practice criteria  Rank all candidates Matrix positioning of all candidates’ performance relative to one another 3 Invite thought leadership in best practices Perform in-depth examination of all candidates  Confirm best-practice criteria  Examine eligibility of all candidates  Identify any information gaps Detailed profiles of all ranked candidates 4 Initiate research director review Conduct an unbiased evaluation of all candidate profiles  Brainstorm ranking options  Invite multiple perspectives on candidates’ performance  Update candidate profiles Final prioritization of all eligible candidates and companion best-practice positioning paper 5 Assemble panel of industry experts Present findings to an expert panel of industry thought leaders  Share findings  Strengthen cases for candidate eligibility  Prioritize candidates Refined list of prioritized Award candidates 6 Conduct global industry review Build consensus on Award candidates’ eligibility  Hold global team meeting to review all candidates  Pressure-test fit with criteria  Confirm inclusion of all eligible candidates Final list of eligible Award candidates, representing success stories worldwide 7 Perform quality check Develop official Award consideration materials  Perform final performance benchmarking activities  Write nominations  Perform quality review High-quality, accurate, and creative presentation of nominees’ successes 8 Reconnect with panel of industry experts Finalize the selection of the best-practice Award recipient  Review analysis with panel  Build consensus  Select recipient Decision on which company performs best against all best-practice criteria 9 Communicate recognition Inform Award recipient of Award recognition  Present Award to the CEO  Inspire the organization for continued success  Celebrate the recipient’s performance Announcement of Award and plan for how recipient can use the Award to enhance the brand 10 Take strategic action Upon licensing, company is able to share Award news with stakeholders and customers  Coordinate media outreach  Design a marketing plan  Assess Award’s role in future strategic planning Widespread awareness of recipient’s Award status among investors, media personnel, and employees
  12. 12. BEST PRACTICES RESEARCH © Frost & Sullivan 2018 12 “We Accelerate Growth” The Intersection between 360-Degree Research and Best Practices Awards Research Methodology Frost & Sullivan’s 360-degree research methodology represents the analytical rigor of our research process. It offers a 360-degree-view of industry challenges, trends, and issues by integrating all 7 of Frost & Sullivan's research methodologies. Too often companies make important growth decisions based on a narrow understanding of their environment, leading to errors of both omission and commission. Successful growth strategies are founded on a thorough understanding of market, technical, economic, financial, customer, best practices, and demographic analyses. The integration of these research disciplines into the 360-degree research methodology provides an evaluation platform for benchmarking industry participants and for identifying those performing at best-in-class levels. About Frost & Sullivan Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth and achieve best-in-class positions in growth, innovation and leadership. The company's Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined research and best practice models to drive the generation, evaluation, and implementation of powerful growth strategies. Frost & Sullivan leverages more than 50 years of experience in partnering with Global 1000 companies, emerging, businesses and the investment community from 45 offices on six continents. To join our Growth Partnership, please visit http://www.frost.com. 360-DEGREE RESEARCH: SEEING ORDER IN THE CHAOS

×