The rise of the As-a-Service Economy is rapidly evolving and emerging solutions, such as Automation, Analytics and Digital technologies are providing a catalyst for enterprises to adopt intelligent and adaptive operating models in a radically different way. Coupled with a customer-first approach, organizations need to rethink and redesign operating models to support this convergence toward intelligent operations. In this webinar, experts from HfS Research, Cognizant, Warner Bros., and CoreLogic discussed the impact of aligning back, middle and front office approaches – resulting in new operating models that are increasingly “born digital,” data rich, and outcome-based, in support of the business to which the strategies align. Wach this webinar replay and learn: How end-to-end processes need to bring together customer experience with operational agility Understanding the disjoint between upper management “vision” and middle managers’ trepidation with “how to get there” How an outside-In approach can drive a “middle office first” strategy to fix the digital/operations divide. View the webinar: http://www.hfsresearch.com/pov/hfs-webinar-becoming-intelligent-oneoffice

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The Services Research Company
Becoming an Intelligent OneOffice
An HfS Webinar, 8th September 2016
Hosts:
Phil Fersht, CEO & Chief Analyst, HfS Research
phil.fersht@hfsresearch.com
@pfersht #hfsresearch
Web: www.hfsresearch.com | Blog: www.horsesforsources.com
Rob Brown, AVP, Cognizant
Robert.H.Brown@cognizant.com
@twitter_handle
Web: www.cognizant.com | Blog: www.futureofwork.com

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Our Webcast Panelists Today…
Robin Gordon
Chief Data Officer
CoreLogic
Jason Barkham
VP, Business Transformation Solutions
Warner Bros. Entertainment
Robert Brown
AVP, Center for the Future of Work
Cognizant
Vipul Khanna
EVP & Global Head - BPS
Cognizant
Jamie Snowdon
EVP, Research Operations
HfS Research

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Overview:
• 20 years’ business experience in the global IT and business process outsourcing
and shared services industry
• Coined the “As-a-Service Economy” in 2014
• Industry analyst, author, speaker, strategist and blogger
• Advised and cogitated on 100’s of global IT services, BPO and shared services
engagements
• Meddles with the largest global network of enterprise services and operations
professionals
Career Experience:
• Practice Lead, IT Services & BPO Research, Gartner, Inc
• Global BPO Marketplace Leader, Deloitte Consulting
• Consulting Practice Lead, IDC Asia/Pacific
• IT Markets Practice Lead, IDC Europe
Education:
• BS with Honors in European Business & Technology, Coventry University, United
Kingdom
• Diplôme Universitaire de Technologie in Business & Technology from the University
of Grenoble, France
phil.fersht@hfsresearch.com
Phil Fersht, Founder, CEO and Analyst, HfS Research

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About HfS, The Services
Research Company

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Unbridled Opinion… Simply Calling It How It Is
www.horsesforsources.com

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…With a More Serious Side Too! www.hfsresearch.com

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The HfS Service Buyers Summits…next up New York
www.hfsevents.com/new-york-2016

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The As-a-Service Economy
And The “Intelligent OneOffice”

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Digital and Cognitive are Driving Enterprise Operations
Do you agree or disagree with the following statements?
24%
28%
32%
46%
44%
43%
70%
72%
75%
Deploying intelligent operations to align the
front office with core business will have the
biggest impact
Cognitive computing is becoming a critical
component of our future operations strategy
New digital technology initiatives are radically
changing the way we manage business
operations
Strongly Agree Somewhat Agree
Source: “Intelligent Operations" Study, HfS Research 2016
Sample: Buyers = 371

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Senior Management Driving Customer First Thinking
Please indicate whether you agree or disagree with the following statements about YOUR
Intelligent Operations mind-set today
Source: “Intelligent Operations" Study, HfS Research 2016
Sample: Buyers = 371
31%
34%
38%
42%
47%
48%
53%
55%
53%
50%
46%
45%
16%
11%
9%
9%
7%
7%
Sourcing of external as-a-Service models will be
delivered by the existing landscape of traditional IT
Service providers
Sourcing of external as-a-Service models will largely be
delivered by a constellation of new breed providers
Sourcing of external as-a-Service models will be driven
by an operations-first, or “process first” strategy
Moving to Intelligent Operations will allow our process
interaction costs to decrease dramatically
Moving to Intelligent Operations will allow us to better
segment and organize work and work processes
Sourcing of external as-a-Service models will be driven
by a “customer first” strategy
Agree Neutral Disagree

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2020 Vision: The “Intelligent OneOffice” will emerge from
Digital + Automation
The Digitally-Driven Front
Office
Mobile, Social/Interactive, Real-time
actionable data, Design Thinking
Digital Underbelly
Intelligent Automation
of manual processes
Digitization of
documents
IoT
Intelligent Digital Support
Function
Front office-aligned IT, Finance,
HR, Procurement, Supply Chain
Intelligent Digital
Processes
Predictive &
Operational Analytics,
Cognitive.
The Customer-first Digital
Organization
The Enabling Intelligent
OneOffice
The Nervous System,
incepting & Processing
all Inputs
The
Neural System
The
Circular System

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Greater Urgency to Change the Model Driven From Senior
Management
How quickly will your core enterprise functions adapt to become Intelligent Operations?
6%
50%
37%
6%
2%
7%
36%
44%
9%
4%
We are already
there
Within 2 years Within 5 years Within 10 years Never
SVP + VP and Below
Source: “Intelligent Operations" Study, HfS Research 2016
Sample: Buyers = 371
Over half of upper
management (56%) want
change within 2 years

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The Service Providers will
bifurcate into two groupings
Back Office Outsourcers
Efficiency, Automation, Labor Arbitrage
and Scalability
OneOffice Enablers
Data Orchestration and Human
Collaboration

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Source: “Making that leap from effective to strategic BPO/BPM" Study, HfS Research 2016
Sample: 343 Industry Stakeholders (Enterprise Buyers = 115, Advisors = 55, Service Providers = 173)
What would you change about the services industry if you had
one wish?
4%
10%
14%
22%
5%
18%
10%
19%
13%
3%
13%
20%
10%
10%
20%
10%
3%
6%
8%
10%
11%
14%
24%
25%
Other (please specify)
No more visa issues
Eliminate rate cards
Less PowerPoint
Bad quality teleconference lines
Less hype around automation
Clients / service buyers telling their stories
More women in leadership roles
If you could change one thing about this industry what would it be?
Buyers Advisors Service Providers

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Our Webcast Panelists Today…
Robin Gordon
Chief Data Officer
CoreLogic
Jason Barkham
VP, Business Transformation Solutions
Warner Bros. Entertainment
Robert Brown
AVP, Center for the Future of Work
Cognizant
Vipul Khanna
EVP & Global Head - BPS
Cognizant
Jamie Snowdon
EVP, Research Operations
HfS Research

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The Intelligent Operations
Study

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Executive Summary: Customer First Drives Everything
Although business leaders understand the broad benefits of digital to business and the wider economy,
enterprises are struggling to come to terms with what it means for them and how to make the most
of it.
• Moving to a customer first the way forward – with 72% of
managers agreeing that aligning back office critical
• Automation number two step on the path to intelligent
operations for “customer first” organizations
• Senior managers frustrated by lack of agility and looking at poor
IT/Business integration as reason
• Many enterprises managers want to see change, targeting
aggressive maturity increases – most wanted to double
• A “customer first” organizations’ leadership views the customer
as the driver for external sourcing – this group is more sure of
path to intelligent operations
• The change is driven from the top and middle managers (almost a
fifth) are looking to external change agent to deliver
• Three quarters of business leaders agree that digital is changing
the way businesses need to be managed
• Operations still focused on status quo – with ambitious cost
saving targets. 20-30%+ seems aggressive given prior savings
• Lack of willingness to move to use new style of outsourcing –
with only a third willing to move to new style. As-a-service scares.
“Customer First”
drives digital and
makes operations
intelligent
There is a huge sense
of urgency to
transform, but
direction is not clear
Digital has promoted
a state of change
56% of senior management
want core business function
transformation within 2 years,
but still look to existing
solutions to deliver the change
Business Leaders
understand the power
of digital technologies
Automation, analytics
and design thinking
the way forward

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Download Now!

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Are we ready for
intelligent operations?

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The Road to Intelligent Operations—How Mature Now?
How much progress has your enterprise made achieving each “Intelligent Operations” end-state today, and
where do you expect to be in 3 Years’ time, based on current investment plans and operational maturity?
(% respondents answering 4 & 5)
Maturity Now Planned in 3 Yrs
LEGACY OPERATIONS INTELLIGENT OPERATIONS
Simplification
Write Off Legacy
Design Thinking
Brokers of Capability
Collaborative Engagement
Intelligent Automation
Actionable & Accessible Data
Holistic Security
Plug & Play Digital Business Services
Low Maturity High Maturity
2.6
2.8
2.6
2.8
2.7
2.8
2.8
2.5
3.1
3.3
3.1
3.2
3.2
3.4
3.3
3.1
1 52 3 4

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How do you see the
disconnect between
management layers?

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Management Layers Are Asking Different Questions
Senior Managers
More optimistic about leveraging technology for
operations (32% strongly agree)
Want to move to an as-a-service style provider to
achieve operational goals
View intelligent operations as way to rethink work
& achieve business change (58%)
Middle Managers
Less optimistic about technology and operations
(18% strongly agree)
Want a change agent to achieve their operation
goals
View greater collaboration as the way to achieve
change (57%)

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How can we create
engaging careers?

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63%
13%13%
69%69%69%
83%
53%
34%
91%
76%
49%
My BPO role is fundamental
to business performance
BPO today is an exciting career
choice
BPO has a defined career
track and a certain future
To what extent do you agree / disagree with the following? (Agrees to a great extent)
1 in 8 professionals new to BPO view an exciting
and long-term career path
< 2 Years 2 to 5 Years 5 to 10 Years > 10 Years
Source: ”Talent in BPO" Study, HfS Research 2015
Sample: Enterprise Service Buyers = 192
Experience:

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Top skills in 2020 shift to critical thinking, creativity and
Emotional Intelligence…

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Maturity of Intelligent
Operations – Do We
Share These Goals?

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Expectations for Operations Maturity Sky High Across
Business Function
Which of your business functions are the most mature in terms of intelligent operations now?
Where would you like them to be in 3 years? (Scale 1-5, just 4&5)
19%
19%
19%
23%
25%
25%
25%
26%
41%
44%
45%
50%
50%
54%
53%
50%
Finance and Accounting
Human Resources
Procurement
Supply Chain and Logistics
IT application maintenance & development
IT and Network infrastructure support
Customer Service
Sales / Marketing / CRM
Target for 3 years Maturity Now
Source: “Intelligent Operations" Study, HfS Research 2016
Sample: Buyers = 371
Tolerance for poor
innovation
intentions is only
seen in retail and
pharma industries

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What is getting in the
way of Intelligent
Operations?

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Budget, Change Management and Standardization
Concerns Slow Adoptions
What are the top 3 obstacles to your firm achieving more intelligent operations? [Pick top 3.]
28%
29%
21%
27%
25%
23%
28%
24%
17%
17%
24%
22%
24%
27%
28%
32%
Current outsourcing engagements do not have
scope for innovation
Lack of co-ordination between IT and business
units on technology investments
Senior management has no incentive or desire
to change
Inability to write off, work around or integrate
legacy systems
Lack of capability from IT leadership to
understand business
Lack of process standardization
Lack of resources or investment for change
management
Lack of budget
VP and
Below
SVP+
Source: “Intelligent Operations" Study, HfS Research 2016
Sample: Buyers = 371
Senior managers worry
about lack of IT / BU co-
ordination and current
agreements lack of
flexibility
Who is the broker of
capability in your
organization?
Senior managers are
looking for help making
their vision a reality

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Do we “fail fast” or
“learn incrementally”
with OneOffice?

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Perverse Infinite Monkeys

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What has to change to
make this a reality?
(In technology, enterprise
behavior, the market overall,
the economy)

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Senior Management Concerns Focus on Internal
Communication when Achieving Operational Change
Obstacle 1 - Lack
of co-ordination
between IT and
business units on
technology
investments 29%
Obstacle 2 - Lack
of resources or
investment for
change
management 28%
Obstacle 3 -
Current
outsourcing
engagements do
not have scope for
innovation 28%
Obstacle 1 - Lack
of budget 32%
Obstacle 2 - Lack
of resources or
investment for
change
management 28%
Obstacle 3 - Lack
of process
standardization
27%
SVP+
VP and Below
Source: “Intelligent Operations" Study, HfS Research 2016
Sample: Buyers = 371
What are the top 3 obstacles to your firm achieving more intelligent operations? [Pick top 3.]
Senior managers are
looking for help making
their vision a reality
Someone needs to be the
broker of capability to help
deliver on vision

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Automation Is the Place to Start
What is the most impactful timing to begin these actions?
16%
19%
18%
19%
20%
24%
21%
23%
28%
31%
33%
33%
32%
30%
34%
34%
33%
30%
32%
29%
26%
30%
28%
26%
18%
15%
11%
13%
16%
12%
10%
12%
5%
6%
6%
7%
5%
4%
7%
4%
Replace your existing (legacy) service provider(s) with “As-a-
Service” driven providers
Accomplish creative problem solving / "Design Thinking"
Retrain existing internal operations talent to redesign
processes
Invest in specialized change management support to reorient
operations staff
Invest in internal IT talent to help us migrate away from legacy
systems
Invest in effective analytics tools & skill
Identify / hire a transformational leader / change agent
Invest in intelligent automation
Now Within the next year Within 3 years Within 5 years Never
Source: “Intelligent Operations" Study, HfS Research 2016
Sample: Buyers = 371
Senior management much more aggressive about timing for the move to Intelligent Ops for core
enterprise functions, with 56% saying it must be within the next 2 years—only 43% of VP and Below
agree that is realistic.

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Questions?

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Appendix

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About The Survey

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About the Survey: Industry Groupings
Please specify your company's industry
Source: Source: “Intelligent Operations" Study, HfS Research 2016
Sample: Enterprise Buyers = 371

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About the Survey: Company Size Groupings Used
What are your company's annual revenues? (in U.S. dollars)
Source: Source: “Intelligent Operations" Study, HfS Research 2016
Sample: Enterprise Buyers = 371

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About the Survey: Title Function Groupings
What (job) title best describes you?
Source: Source: “Intelligent Operations" Study, HfS Research 2016
Sample: Enterprise Buyers = 371