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The technology management of tomorrow will be nothing like today


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Chetan Dube, CEO, IPsoft, came to the ISG Sourcing Industry Conference to discuss what technology management will look like tomorrow and how automation is changing the world.

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The technology management of tomorrow will be nothing like today

  1. 1. The technology management of tomorrow will be nothing like today September 10, 2013
  2. 2. Market History • 5000 years focus on subsistence • 1800: arrival of technology. Automation revolution begins:  Physical jobs  Transactional jobs  Knowledge engineering 200m Infrastructure Management  AaaS • 77B  140b curve Are We In the Midst of an IT Revolution?
  3. 3. How is the Market Shifting? • Galvanizing factor: Technological innovation • Defending yesterday is far more risky than adopting tomorrow IT Outsourcing System Integration Labor arbitrage Saturated me-too market Declining rates of growth Margin Erosion Existential threat SMAC Autonomic Cognitive
  4. 4. What Technologies Are Driving The Inflection? • SMAC: Social, Mobile, Analytics, Cloud o Delivery platforms shift: mobility, social, cloud o Collaboration models: social, web o Connectivity: exponential growth- Internet of things o Data: exploding o Analytics: germinating • Autonomics • Cognitive technologies
  5. 5. Automation: A Tectonic Market Shift? The Promise of Automation Labor Arbitrage  15%-30% cost take out  Scales linearly with labor  Custom/complex, legacy :“Your mess for less”  Revenue/Profit correlated to People Labor Automation  60%-80% cost take out  Scalable, largely independent of labor growth  Transformative – New way of doing business  Revenue/Profit NOT correlated to People
  6. 6. How To Realize Gains in Automation Market Leading To Move over manual automation. Here comes Autonomics Can classic (script based manual) automation keep pace?
  7. 7. Deloitte study 56% of Exceptions in 1 in Every 25 Fortune 1000 Companies Remediated Autonomically How Real Is Autonomics? Empirical data • Largest investment bank: 91% • Second largest credit card processor: 68% • Largest banking institution: DB management: 43% • Largest network management company: 87% • Largest media company in US: DSC
  8. 8. Can Machines Think? I propose to ask the question: ― Alan Turing, 1912-1954 What’s The Next Big Wave? Market Impact • Can one truly clone human brain? • Market: majority of revenue of services industries • Pareto principle of 6sigma: 80% tasks relate to 20% root causes • Androids are coming!!
  9. 9. Cognitive Engines: Are Androids Coming? Power of Cognitive Engines As compared to administrative or search engines • Fixed Income/Derivative Desks of One of Largest Investment Bank • Digital Service Desk of Largest Media Company Machines take me by surprise with great frequency. Turing
  10. 10. What Will Happen to Us? What Happened to the Horse & Carriage Driver? • Dystopian  Utopian: constructive destruction • Prepare for tomorrow: proactively • ITO/BPO  expert systems’ engineers • Ultimate liberator