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Defining Innovation
                             from the Service Provider perspective
                             The ISG Discussion with the Service Provider community: Sourcing
                             Industry Conference, May 24, 2012




            Presented by: Information Services Group, Inc.




                  Version: 1.0

                     Date: May 27, 2012



   ISG or Client Contact: Cynthia Hollandsworth Batty

                    Email: cynthia.batty@isg-one.com

                   Phone: +1 201 978 0542




Copyright © 2012 Information Services Group, Inc. All Rights Reserved /
ISG - Defining Innovation SIC 2012-06-13 v1 ARIAL




Table of Contents
1.0 DISCUSSION AND PARTICIPANTS ...................................................................................................... 1
       1.1 ISG view of innovation ............................................................................................................... 1
       1.2 Why is innovation still difficult to realize in services? ............................................................ 2
       1.3 What is the right innovation question?..................................................................................... 3
2.0 QUESTION 1: DEFINE INNOVATION.................................................................................................... 3
3.0 QUESTION 2: BARRIERS TO INNOVATION...................................................................................... 5
4.0 QUESTION 3: PROVIDER LEADERSHIP TO CREATE CHANGE.............................................. 6
5.0 NEXT STEPS .................................................................................................................................................. 7
6.0 APPENDIX ....................................................................................................................................................... 8




Copyright © 2012 Information Services Group, Inc. All Rights Reserved /
ISG - Defining Innovation SIC 2012-06-13 v1 ARIAL




1.0                Discussion and Participants
                   Cynthia Hollandsworth Batty hosted a session at the ISG Sourcing Industry
                   Conference on May 24, 2012 together with Roblyn S. Theodorou, Global Account
                   Executive, CSC Corporation, and Paul Poss, Head of Deal Architecture, BT
                   Global Services.
                   Together we set up the challenge facing service providers today with regard to
                   client and industry perception of innovation in sourced services, and then had a
                   facilitated discussion with the session attendees to try to flesh the definitions and
                   options out further. A list of attendees who asked to be included in the further
                   definition of this important idea is included
                   here, and will receive this write-up.
                   The “Next Steps” section lays out what we
                   would like to have happen next.



1.1                ISG view of innovation
                   The day before this session, the Wall
                   Street Journal had very timely Marketplace
                   cover story, “You Call That Innovation?”
                   which was useful to set the discussion
                   about the devaluation of the word and the
                   need to redefine (or potentially abandon)
                   the word as it masked genuine
                   understanding of the concept.
                   Cynthia Batty opened the session with a review of ISG’s experience in trying to
                   define innovation for clients. The expectation of “innovation” is included in most
                   master services agreements (though notably not in ISG’s IP, which signals that
                   this discussion needs to encompass the legal advisory community as well). In
                   addition, ISG does drive continuous improvement through service level
                   methodology in virtually all contracts.




Copyright © 2012, Information Services Group, Inc. All Rights Reserved/

                                                                                                                 Page 1
ISG - Defining Innovation SIC 2012-06-13 v1 ARIAL




                   However, in 2008 after observing ongoing frustration on the client side with the
                   receipt of innovation in their services, Harvey Gluckman (Partner,
                   ISG) lead a project called the Innovation Initiative to try to
                   understand how to improve the innovation expectations
                   and delivery in sourced services. This project yielded the
                   insight that innovation in a services relationship needed
                   dedicated and applied work by the client, and that
                   client expectations of innovation needed to be
                   tempered with understanding that significant
                   innovation was not provided for free or out of context
                   of the services or relationship; it required internal
                   discipline and change inside the client to be
                   successful.
                   Fast forward five years, and the experience of
                   the ISG organization globally is that despite the addition of Innovation
                   Governance and innovation roles to the RFP and contracts, the actual incidence
                   of innovation in the relationships we observe is minimal, and the frustration of the
                   clients (and providers) continues to be significant – usually named in the top
                   three causes of dissatisfaction with sourcing in industry surveys.



1.2                Why is innovation still difficult to realize in services?
                   ISG observes conditions in many clients which are barriers to innovation,
                   including
                            Existing client corporate culture is not innovation-focused
                            Lack of commitment at the services level on the client side to the cost and
                            effort of an innovation initiative
                            Lack of general governance maturity which would allow true integration of
                            the provider into the business and services
                            Providers not bringing forth ideas, and
                            Clients cutting ideas off without a reasonable hearing
                   To this we would add
                            Understanding of requirements for innovation (on both sides)
                            Trust
                            Perception of motivation of provider (whether deserved or not)
                            Commitment by clients to embrace and enact ideas brought forward by
                            their own staff or by providers


Copyright © 2012, Information Services Group, Inc. All Rights Reserved/

                                                                                                                 Page 2
ISG - Defining Innovation SIC 2012-06-13 v1 ARIAL




                   These factors speak to the fact that organizations have still not directly faced the
                   paradoxical nature of the services relationship: Clients are in it to save money,
                   and providers are in to make money. There is nothing wrong with this set of
                   conditions – rather, that it is important to understand and accept the facts of the
                   relationship, and then to find ways in that context to mine the considerable
                   capability of both the service provider, and of the combined knowledge of a client
                   and provider team delivering services in a specific circumstance, for the benefit
                   of the client in both operations and in general business.



1.3                What is the right innovation question?
                   In our workshop, we focused on three types of definitions as a group, which we
                   hope will help us to define the question of innovation in such a way that a larger
                   industry conversation may be engaged. The three questions were:
                            Define innovation together, now – from the Client perception side and
                            from how Providers see it (i.e., is it Continuous improvement? Business-
                            changing ideas? Financial savings? What is it?)
                            What barriers do we see to the operation of innovation between ourselves
                            and our clients? (Behaviors? Attitudes? Prejudices? Disconnects?
                            Operational and executive views?)
                            What could we provide leadership to change, that would make it possible
                            to move forward? (Governance? Relationship? Identity? Executive
                            engagement? Provision of “idea zone” environment? How might our
                            leadership affect contracting? Relationship? Executive messaging?
                            Approach to customer satisfaction?)
                   This document contains the notes from this session, which we should agree are
                   the content of what we discussed, and then we can take this discussion forward
                   to the industry.



2.0                Question 1: Define Innovation
                   ISG observations of the material captured in this discussion: Participants did not
                   want to talk about innovation per se – they wanted to back up into earlier phases
                   of the sourcing lifecycle to discuss what happened there to affect the service
                   delivery lifecycle phase. It was also noticeable in the discussion that the type of
                   sourcing the participants represented affected their thinking; ITO (very mature
                   service) appeared to have a harder time with it, whereas BPO (less mature, more
                   areas of differentiation) seemed more optimistic.
                   We did not actually end up with a definition of innovation, however we believe
                   one can be inferred from this material something along the lines of the types

Copyright © 2012, Information Services Group, Inc. All Rights Reserved/

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ISG - Defining Innovation SIC 2012-06-13 v1 ARIAL




                   defined by Christensen and reported in the WSJ article: Efficiency, Sustaining,
                   and Disruptive. A next phase of this discussion might be to customize those
                   words and concepts for our industry.
                   Notes are provided as taken – no editing or prioritizing.
                            Advisor community sets expectations of innovation without defining it for
                            clients
                            The paradigm is shifting
                            Outsourcing RFP does not allow innovation
                            Cloud is a disruptive innovation
                            “Better-faster-cheaper” RFP process does not allow innovation discussion
                            Right time/audience for innovation discussion is challenging
                            Seek optimization instead of innovation?
                            Transformation: Innovation on steroids?
                            Innovation is perceived as taking out costs, but also improving customer
                            experience
                            Can’t be structured in RFP – but is part of a long-term relationship. Client
                            should ask the provider about innovation culture when doing the RFP
                            Why use the word innovation? Maybe use continuous improvement rather
                            than “innovation”
                                 o    Service provider subsequent comment: In my opinion it is better to
                                      use the term continuous improvement and link it to the
                                      governance structure in the agreement – this allows the client and
                                      provider to define what needs to be improved throughout the
                                      agreement – e.g., a transformation project, optimizing systems,
                                      implementing new processes to improve services, etc. I believe
                                      the key is for the client and provider to meet annually (preferably
                                      during the client’s budget cycle) to identify potential changes /
                                      updates needed in their environment for the coming year and then
                                      prioritize and agree on the requirements to be addressed.
                            In or out of the box?
                            Able to demonstrate measurable improvement in operations
                            Innovation must be in context
                            Introduction of something new that builds positive change
                            Innovation as defined in the contract – expectations vs. Definition


Copyright © 2012, Information Services Group, Inc. All Rights Reserved/

                                                                                                                 Page 4
ISG - Defining Innovation SIC 2012-06-13 v1 ARIAL




                            Efficiency? (NO – or maybe?)
                            Affects customer satisfaction
                            Measurable
                            Does the client need innovation?
                            Provider will deliver innovation that client benefits from
                            Need a different word!



3.0                Question 2: Barriers to Innovation
                   ISG observations of the material captured in this discussion: Service providers
                   are isolated after the contract to the scope of services, and struggle to get to
                   parts of the organization that would have interest and/or commitment to engage
                   in an innovation process. This deprives the client of opportunities for positive
                   change, and the provider opportunities for increased revenue as a result of
                   bringing innovation to the client.
                   Notes are provided as taken – no editing or prioritizing.
                            Need access to the business to have insight into business strategy
                            Customer executives expect business innovation but operations expects
                            technical and process innovation (to the ISG innovation pyramid)
                            Client must buy in
                            No culture of innovation in client
                            Technology seen as a cost – not interested in innovation, though this
                            varies by industry
                            Comes down to money – if it’s free, they want it, if it costs, they do not
                            BPO may have an easier time that IT to get to the “business” – IT speaks
                            to CIO/CTO, BPO is closer to business users
                            Not part of Vendor Management DNA
                            The four C’s [as we created in the meeting!]
                                 o    Common expectations (client knowing what they are asking)
                                 o    Culture
                                 o    Commitment
                                 o    Collaboration


Copyright © 2012, Information Services Group, Inc. All Rights Reserved/

                                                                                                                 Page 5
ISG - Defining Innovation SIC 2012-06-13 v1 ARIAL




                            Relationship framework for discussion to drive technical innovation into
                            the client
                                 o    Service provider subsequent comment: This type of framework
                                      could also address other areas such as cost requirements (ROI,
                                      cost reductions, service level penalties), process improvements
                                      and strategy
                            Continuous improvement deeds a business investment case – risk
                            reduces client interest even with a good business case
                            Pressures on price crushes out margin that could produce innovation
                            Multivendor environment where other providers need to be engaged [one
                            participant had a process to engage with all other providers to do this,
                            quite interesting]



4.0                Question 3: Provider leadership to create change
                   ISG observations of the material captured in this discussion: Honest
                   understanding between client and provider can help create trust, which can then
                   allow opportunity to be explored. Ensuring that the relationship allows the parts of
                   the organization who care about innovation to be engaged is a critical success
                   path for growing the initiative.
                   Notes are provided as taken – no editing or prioritizing.
                            Constraints can help set expectation with client
                             Focus on product
                            Face the paradoxical nature of the relationship
                            Make more money for both – not “save” money
                            If we don’t, someone else will – part of staying sticky
                            Governance is for problems and performance, innovation is a different set
                            of people in the organization, though the process has to be inclusive of
                            the Service Delivery team on both sides
                                 o    Service provider subsequent comment: I think this statement is
                                      too general. Not all companies have this view of governance. I
                                      believe effective providers will integrate ongoing service delivery
                                      and strategic planning into their governance model. To manage
                                      an account effectively the provider needs to be on top of the day-
                                      to-day operations as well as the ongoing needs of the client. This
                                      can only occur if the governance model encompasses both.


Copyright © 2012, Information Services Group, Inc. All Rights Reserved/

                                                                                                                 Page 6
ISG - Defining Innovation SIC 2012-06-13 v1 ARIAL




                            Gainshare [though this brought snorts from several participants]
                            At contracting, ascertain access to parts of a company that could take
                            business ideas forward
                            Drop cap “I” and focus on continuous improvement
                            Annual process to look at business plans for improvement
                            Set goals to affect Business Change
                            Innovation Counsel – with multiple providers participating to create ideas
                            for a client
                            Not a contractual conversation – should be people talking about ideas
                                 o    Service provider subsequent comment: If part of the contract it
                                      should be link with governance and not structured as a clause by
                                      itself.
                            Raise the discussion – like the “Dreamsessions” Xerox has held (P&G
                            example)
                                 o    2-3 day workshop, include other providers in the mix
                                 o    Identify ideas
                                                Service provider subsequent comment: I like this idea;
                                                especially in a multi-vendor environment
                            Look to Strategy, not to Operations



5.0                Next steps
                   If everyone could take a look at the notes, ensure they are right, and add any
                   additions or annotations desired, Cynthia will take this and develop a
                   consolidated position which we will then again review – and publish through
                   ISG’s website and potentially other avenues as well. We’d like to have an
                   industry discussion on this subject.
                   ISG understands that individual companies may need to approve participation in
                   such a discussion through their corporate communications department – if you
                   would prefer that your name or company name not be used in subsequent
                   materials, please let Cynthia know and we will honor that, though we value your
                   input greatly and hope for your collaboration. Also, if you would like to bring in
                   others to the discussion from your company or other companies, that is most
                   welcome.
                   We plan to produce an initial position on this material in the next two weeks.


Copyright © 2012, Information Services Group, Inc. All Rights Reserved/

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ISG - Defining Innovation SIC 2012-06-13 v1 ARIAL




6.0                Appendix
                   Wall Street Journal article “You Call That Innovation?” – May 23, 2012 notes that
                   the word in danger of becoming a business jargon cliché (if it’s not already). Key
                   statistics from this story:
                            “Innovation” used 33,528 times in quarterly & annual reports last year
                            255 books published in the last 90 days with the word Innovation in the
                            title
                            43% of surveyed execs state they have a Chief Innovation Officer or
                            similar role
                            28% of business schools use the word in their mission statement




Copyright © 2012, Information Services Group, Inc. All Rights Reserved/

                                                                                                                 Page 8

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Defining innovation

  • 1. Defining Innovation from the Service Provider perspective The ISG Discussion with the Service Provider community: Sourcing Industry Conference, May 24, 2012 Presented by: Information Services Group, Inc. Version: 1.0 Date: May 27, 2012 ISG or Client Contact: Cynthia Hollandsworth Batty Email: cynthia.batty@isg-one.com Phone: +1 201 978 0542 Copyright © 2012 Information Services Group, Inc. All Rights Reserved /
  • 2. ISG - Defining Innovation SIC 2012-06-13 v1 ARIAL Table of Contents 1.0 DISCUSSION AND PARTICIPANTS ...................................................................................................... 1 1.1 ISG view of innovation ............................................................................................................... 1 1.2 Why is innovation still difficult to realize in services? ............................................................ 2 1.3 What is the right innovation question?..................................................................................... 3 2.0 QUESTION 1: DEFINE INNOVATION.................................................................................................... 3 3.0 QUESTION 2: BARRIERS TO INNOVATION...................................................................................... 5 4.0 QUESTION 3: PROVIDER LEADERSHIP TO CREATE CHANGE.............................................. 6 5.0 NEXT STEPS .................................................................................................................................................. 7 6.0 APPENDIX ....................................................................................................................................................... 8 Copyright © 2012 Information Services Group, Inc. All Rights Reserved /
  • 3. ISG - Defining Innovation SIC 2012-06-13 v1 ARIAL 1.0 Discussion and Participants Cynthia Hollandsworth Batty hosted a session at the ISG Sourcing Industry Conference on May 24, 2012 together with Roblyn S. Theodorou, Global Account Executive, CSC Corporation, and Paul Poss, Head of Deal Architecture, BT Global Services. Together we set up the challenge facing service providers today with regard to client and industry perception of innovation in sourced services, and then had a facilitated discussion with the session attendees to try to flesh the definitions and options out further. A list of attendees who asked to be included in the further definition of this important idea is included here, and will receive this write-up. The “Next Steps” section lays out what we would like to have happen next. 1.1 ISG view of innovation The day before this session, the Wall Street Journal had very timely Marketplace cover story, “You Call That Innovation?” which was useful to set the discussion about the devaluation of the word and the need to redefine (or potentially abandon) the word as it masked genuine understanding of the concept. Cynthia Batty opened the session with a review of ISG’s experience in trying to define innovation for clients. The expectation of “innovation” is included in most master services agreements (though notably not in ISG’s IP, which signals that this discussion needs to encompass the legal advisory community as well). In addition, ISG does drive continuous improvement through service level methodology in virtually all contracts. Copyright © 2012, Information Services Group, Inc. All Rights Reserved/ Page 1
  • 4. ISG - Defining Innovation SIC 2012-06-13 v1 ARIAL However, in 2008 after observing ongoing frustration on the client side with the receipt of innovation in their services, Harvey Gluckman (Partner, ISG) lead a project called the Innovation Initiative to try to understand how to improve the innovation expectations and delivery in sourced services. This project yielded the insight that innovation in a services relationship needed dedicated and applied work by the client, and that client expectations of innovation needed to be tempered with understanding that significant innovation was not provided for free or out of context of the services or relationship; it required internal discipline and change inside the client to be successful. Fast forward five years, and the experience of the ISG organization globally is that despite the addition of Innovation Governance and innovation roles to the RFP and contracts, the actual incidence of innovation in the relationships we observe is minimal, and the frustration of the clients (and providers) continues to be significant – usually named in the top three causes of dissatisfaction with sourcing in industry surveys. 1.2 Why is innovation still difficult to realize in services? ISG observes conditions in many clients which are barriers to innovation, including Existing client corporate culture is not innovation-focused Lack of commitment at the services level on the client side to the cost and effort of an innovation initiative Lack of general governance maturity which would allow true integration of the provider into the business and services Providers not bringing forth ideas, and Clients cutting ideas off without a reasonable hearing To this we would add Understanding of requirements for innovation (on both sides) Trust Perception of motivation of provider (whether deserved or not) Commitment by clients to embrace and enact ideas brought forward by their own staff or by providers Copyright © 2012, Information Services Group, Inc. All Rights Reserved/ Page 2
  • 5. ISG - Defining Innovation SIC 2012-06-13 v1 ARIAL These factors speak to the fact that organizations have still not directly faced the paradoxical nature of the services relationship: Clients are in it to save money, and providers are in to make money. There is nothing wrong with this set of conditions – rather, that it is important to understand and accept the facts of the relationship, and then to find ways in that context to mine the considerable capability of both the service provider, and of the combined knowledge of a client and provider team delivering services in a specific circumstance, for the benefit of the client in both operations and in general business. 1.3 What is the right innovation question? In our workshop, we focused on three types of definitions as a group, which we hope will help us to define the question of innovation in such a way that a larger industry conversation may be engaged. The three questions were: Define innovation together, now – from the Client perception side and from how Providers see it (i.e., is it Continuous improvement? Business- changing ideas? Financial savings? What is it?) What barriers do we see to the operation of innovation between ourselves and our clients? (Behaviors? Attitudes? Prejudices? Disconnects? Operational and executive views?) What could we provide leadership to change, that would make it possible to move forward? (Governance? Relationship? Identity? Executive engagement? Provision of “idea zone” environment? How might our leadership affect contracting? Relationship? Executive messaging? Approach to customer satisfaction?) This document contains the notes from this session, which we should agree are the content of what we discussed, and then we can take this discussion forward to the industry. 2.0 Question 1: Define Innovation ISG observations of the material captured in this discussion: Participants did not want to talk about innovation per se – they wanted to back up into earlier phases of the sourcing lifecycle to discuss what happened there to affect the service delivery lifecycle phase. It was also noticeable in the discussion that the type of sourcing the participants represented affected their thinking; ITO (very mature service) appeared to have a harder time with it, whereas BPO (less mature, more areas of differentiation) seemed more optimistic. We did not actually end up with a definition of innovation, however we believe one can be inferred from this material something along the lines of the types Copyright © 2012, Information Services Group, Inc. All Rights Reserved/ Page 3
  • 6. ISG - Defining Innovation SIC 2012-06-13 v1 ARIAL defined by Christensen and reported in the WSJ article: Efficiency, Sustaining, and Disruptive. A next phase of this discussion might be to customize those words and concepts for our industry. Notes are provided as taken – no editing or prioritizing. Advisor community sets expectations of innovation without defining it for clients The paradigm is shifting Outsourcing RFP does not allow innovation Cloud is a disruptive innovation “Better-faster-cheaper” RFP process does not allow innovation discussion Right time/audience for innovation discussion is challenging Seek optimization instead of innovation? Transformation: Innovation on steroids? Innovation is perceived as taking out costs, but also improving customer experience Can’t be structured in RFP – but is part of a long-term relationship. Client should ask the provider about innovation culture when doing the RFP Why use the word innovation? Maybe use continuous improvement rather than “innovation” o Service provider subsequent comment: In my opinion it is better to use the term continuous improvement and link it to the governance structure in the agreement – this allows the client and provider to define what needs to be improved throughout the agreement – e.g., a transformation project, optimizing systems, implementing new processes to improve services, etc. I believe the key is for the client and provider to meet annually (preferably during the client’s budget cycle) to identify potential changes / updates needed in their environment for the coming year and then prioritize and agree on the requirements to be addressed. In or out of the box? Able to demonstrate measurable improvement in operations Innovation must be in context Introduction of something new that builds positive change Innovation as defined in the contract – expectations vs. Definition Copyright © 2012, Information Services Group, Inc. All Rights Reserved/ Page 4
  • 7. ISG - Defining Innovation SIC 2012-06-13 v1 ARIAL Efficiency? (NO – or maybe?) Affects customer satisfaction Measurable Does the client need innovation? Provider will deliver innovation that client benefits from Need a different word! 3.0 Question 2: Barriers to Innovation ISG observations of the material captured in this discussion: Service providers are isolated after the contract to the scope of services, and struggle to get to parts of the organization that would have interest and/or commitment to engage in an innovation process. This deprives the client of opportunities for positive change, and the provider opportunities for increased revenue as a result of bringing innovation to the client. Notes are provided as taken – no editing or prioritizing. Need access to the business to have insight into business strategy Customer executives expect business innovation but operations expects technical and process innovation (to the ISG innovation pyramid) Client must buy in No culture of innovation in client Technology seen as a cost – not interested in innovation, though this varies by industry Comes down to money – if it’s free, they want it, if it costs, they do not BPO may have an easier time that IT to get to the “business” – IT speaks to CIO/CTO, BPO is closer to business users Not part of Vendor Management DNA The four C’s [as we created in the meeting!] o Common expectations (client knowing what they are asking) o Culture o Commitment o Collaboration Copyright © 2012, Information Services Group, Inc. All Rights Reserved/ Page 5
  • 8. ISG - Defining Innovation SIC 2012-06-13 v1 ARIAL Relationship framework for discussion to drive technical innovation into the client o Service provider subsequent comment: This type of framework could also address other areas such as cost requirements (ROI, cost reductions, service level penalties), process improvements and strategy Continuous improvement deeds a business investment case – risk reduces client interest even with a good business case Pressures on price crushes out margin that could produce innovation Multivendor environment where other providers need to be engaged [one participant had a process to engage with all other providers to do this, quite interesting] 4.0 Question 3: Provider leadership to create change ISG observations of the material captured in this discussion: Honest understanding between client and provider can help create trust, which can then allow opportunity to be explored. Ensuring that the relationship allows the parts of the organization who care about innovation to be engaged is a critical success path for growing the initiative. Notes are provided as taken – no editing or prioritizing. Constraints can help set expectation with client Focus on product Face the paradoxical nature of the relationship Make more money for both – not “save” money If we don’t, someone else will – part of staying sticky Governance is for problems and performance, innovation is a different set of people in the organization, though the process has to be inclusive of the Service Delivery team on both sides o Service provider subsequent comment: I think this statement is too general. Not all companies have this view of governance. I believe effective providers will integrate ongoing service delivery and strategic planning into their governance model. To manage an account effectively the provider needs to be on top of the day- to-day operations as well as the ongoing needs of the client. This can only occur if the governance model encompasses both. Copyright © 2012, Information Services Group, Inc. All Rights Reserved/ Page 6
  • 9. ISG - Defining Innovation SIC 2012-06-13 v1 ARIAL Gainshare [though this brought snorts from several participants] At contracting, ascertain access to parts of a company that could take business ideas forward Drop cap “I” and focus on continuous improvement Annual process to look at business plans for improvement Set goals to affect Business Change Innovation Counsel – with multiple providers participating to create ideas for a client Not a contractual conversation – should be people talking about ideas o Service provider subsequent comment: If part of the contract it should be link with governance and not structured as a clause by itself. Raise the discussion – like the “Dreamsessions” Xerox has held (P&G example) o 2-3 day workshop, include other providers in the mix o Identify ideas Service provider subsequent comment: I like this idea; especially in a multi-vendor environment Look to Strategy, not to Operations 5.0 Next steps If everyone could take a look at the notes, ensure they are right, and add any additions or annotations desired, Cynthia will take this and develop a consolidated position which we will then again review – and publish through ISG’s website and potentially other avenues as well. We’d like to have an industry discussion on this subject. ISG understands that individual companies may need to approve participation in such a discussion through their corporate communications department – if you would prefer that your name or company name not be used in subsequent materials, please let Cynthia know and we will honor that, though we value your input greatly and hope for your collaboration. Also, if you would like to bring in others to the discussion from your company or other companies, that is most welcome. We plan to produce an initial position on this material in the next two weeks. Copyright © 2012, Information Services Group, Inc. All Rights Reserved/ Page 7
  • 10. ISG - Defining Innovation SIC 2012-06-13 v1 ARIAL 6.0 Appendix Wall Street Journal article “You Call That Innovation?” – May 23, 2012 notes that the word in danger of becoming a business jargon cliché (if it’s not already). Key statistics from this story: “Innovation” used 33,528 times in quarterly & annual reports last year 255 books published in the last 90 days with the word Innovation in the title 43% of surveyed execs state they have a Chief Innovation Officer or similar role 28% of business schools use the word in their mission statement Copyright © 2012, Information Services Group, Inc. All Rights Reserved/ Page 8