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Sam Pakrashi Director, Cognizant Rapid Response Rebranding IT by Creating Transformational Business Value
Agenda ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
“ What got you here, won’t get you there.” -  Marshall Goldsmith
What is Rapid Response? Strategic Framework ,[object Object],Lean Principles ,[object Object],Customer Satisfaction  ,[object Object],Business Innovation  ,[object Object],Brand Equity ,[object Object],Rapid Response solutions can help transform IT into a cutting-edge 21 st  century service organization that responds and adapts to the demands of external customers and business stakeholders, thereby reshaping the very brand of IT.
The  Disconnect Between IT and Business The answer lies in not what IT does, but what is perceives to be trivial and chooses not to do. Does IT adequately support critical business objectives like lowering operating costs? ,[object Object],Does IT play a meaningful role in increasing workforce productivity? ,[object Object],Does IT enable business innovation that drives competitive advantage?  ,[object Object],Source: Forrester Study  on the Effectiveness of IT, September 2008   Forrester Study reveals a major disconnect…
Responsiveness: Addressing the “Long Tail” Drives Customer Satisfaction The manner in which IT handles such “moment-of-truth” transactions, defines its brand as a service organization.  Strategic “ Lights-On” Number of Requests Effort Business Driven IT Funded IT/Business Funded Complexity Business Value Technology Projects  Strategic Business Transformation “ Lights-On” Support Business Requests That Drive Operational Excellence Low High High The Long Tail The Missing Link “ The Third Bucket”
Business Innovation: Changing the Game One Customer at a Time Listening to the Customer ,[object Object],Addressing Customer Pain Points ,[object Object],Understanding Customer Preferences  ,[object Object],Tailoring Solutions for Each Customer (N=1)  ,[object Object],Creating New Business Models ,[object Object],Listening to the customer and adapting business models to address fundamental changes in customer preferences requires a seismic culture shift, a mind shift from “we know it all” to making an effort to really understand the changing needs of the customer.
Tipping Point: Doing More For Less Rebranding IT while optimizing costs without sacrificing strategic priorities More Effective and Efficient  Infrastructure Spend Application Spend Strategic Business Transformation  Savings  Focus on Strategic Initiatives  Optimization  Transformation  Why Rapid Response?  Why now? The confluence of external and internal financial constraints, along with heightened customer expectations, has created an obvious “tipping point. Doing nothing is simply not an option.  As economic conditions worsen, the inability of IT to take care of immediate customer concerns will erode the credibility of IT beyond repair. Rapid Response  (Business Critical Requests) Business Funded, Outsourced  A Responsive and Reliable IT Brand Customer Satisfaction
Rapid Response:  How It Actually Works The Rapid Response model borrows a fundamental “Lean” concept known as Little’s Law.  Little’s Law allows for effective prioritization and sequencing of incoming requests, thereby reducing lead times without impacting capacity or quality. Little’s Law Small requests Medium requests Large requests Incoming Service Requests WIP Tier 1 (24 Hrs) Tier 2 (48 Hrs) Tier 3 (72 Hrs) PMO (Prioritization) Business Analysts Little’s Law in Action Lead time =  WIP Productivity
What’s Different About Rapid Response? Demand Management Lean Execution ,[object Object],[object Object],[object Object],[object Object],[object Object],Responsiveness, Reliability, and Cost Optimization Pricing Signals To a large extent, Rapid Response mimics the notion of global shared services, where delivery for services is centralized across business functions.  However, there are fundamental differences in the demand management, execution and pricing models. Rapid Response is different from traditional Shared Services in three fundamental ways: ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Program Mgmt Business Analysis Technical Analysis Quality Assurance Program Manager Business Analysts Technical Analysts Quality Analysts ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Rapid Response Program Management  ,[object Object],Business Analysis Technical  Development ,[object Object],[object Object],Quality Assurance ,[object Object],Anatomy of a Rapid Response Center Typically, delivery is conducted in an onsite-offshore model with a 30:70 staffing ratio, though ratios may vary by platform and request type.  Outcome-based service level agreements enhance the effectiveness of the model.
The primary value proposition includes responsiveness, reliability, and cost optimization. Rapid Response Responsiveness Cost Optimization Managed Services Automation Demand Mgmt Specialization Reusability Standardization Reliability Responsiveness ,[object Object],Reliability Cost Optimization ,[object Object],[object Object],The Rapid Response Value Pyramid
Evolution of Rapid Response Value Managed Services Automation Rapid Response solutions are best implemented in three phases that progressively build on the effectiveness and efficiency of the model as demand scales.  Lean Responsiveness Standardization Productivity Enhancement Time Phase 1 Phase 2 Phase 3 Cost Phase 1:  Responsiveness ,[object Object],Phase 2:  Standardization Phase 3:  Productivity ,[object Object],[object Object]
A Case in Point… ,[object Object],[object Object],[object Object],Situation  Challenge Approach Results A global industrial goods manufacturer is one year into its implementation of a Rapid Response Solution.  The first phase has just been completed.  The results, so far, have been quite remarkable. “ Rapid Response has been a true savior.  It has allowed our department to cut lead times and costs by simplifying and automating non-value-added tasks.  Our customers are thrilled with the lead times that we deliver to them now. Besides, we would have never achieved our budget goals without the rapid turnarounds on process and technology enhancements.” ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Impact of Rapid Response… 2006 2007 80% 60% 40% 20% 2007 2008 1600 1200 800 400 2006 2007 Productivity  (Requests / FTE) 60 50 40 30 2000 Applications Requests Customer Satisfaction 2008 2008 2006 ,[object Object],[object Object],[object Object],Customer Satisfaction Overall Demand Productivity
Impact of Rapid Response…(continued) 2007 2008 4 3 2 1 2007 2008 Quality (DPMO) 5σ 4σ 3σ 2 σ Average Lead Times (Months) 6σ 2007 2008 70 60 50 40 Hourly Blended Rate ($)  2009 2009 2009 Responsiveness Reliability Cost Optimization ,[object Object],[object Object],[object Object]
Building Brand Equity  Something ventured, something gained. Customer Delight ,[object Object],Business Innovation ,[object Object],Rebranding of IT ,[object Object],Political Capital  ,[object Object],Competitive Advantage ,[object Object]
References Marshall Goldsmith, “What Got You Here Won’t Get You There”, Hyperion, New York, NY,  2007. Marc Beaujean, Jonathan Davidson, Stacey Madge, “The Moment of Truth in Customer Service,” McKinsey Quarterly, 2006. Survey conducted by Forrester Research, September 2008. Chris Anderson, “The Long Tail: Why the Future of Business Is Selling Less of More,” New York, NY, Hyperion, 2006. C.K. Prahalad, M.S. Krishnan, “The New Age of Innovation: Driving Co-Created Value through Global Networks,” New York, NY, McGraw Hill, 2008. Malcolm Gladwell, “The Tipping Point: How Little Things Can Make a Big Difference,” New York, NY, Back Bay Books, 2000. Michael George, “Lean Six Sigma for Service,” New York, NY, McGraw Hill, 2003.
Thank YOU

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Rapid Response: Rebranding IT By Creating Transformation Business Value

  • 1. Sam Pakrashi Director, Cognizant Rapid Response Rebranding IT by Creating Transformational Business Value
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  • 3. “ What got you here, won’t get you there.” - Marshall Goldsmith
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  • 6. Responsiveness: Addressing the “Long Tail” Drives Customer Satisfaction The manner in which IT handles such “moment-of-truth” transactions, defines its brand as a service organization. Strategic “ Lights-On” Number of Requests Effort Business Driven IT Funded IT/Business Funded Complexity Business Value Technology Projects Strategic Business Transformation “ Lights-On” Support Business Requests That Drive Operational Excellence Low High High The Long Tail The Missing Link “ The Third Bucket”
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  • 8. Tipping Point: Doing More For Less Rebranding IT while optimizing costs without sacrificing strategic priorities More Effective and Efficient Infrastructure Spend Application Spend Strategic Business Transformation Savings Focus on Strategic Initiatives Optimization Transformation Why Rapid Response? Why now? The confluence of external and internal financial constraints, along with heightened customer expectations, has created an obvious “tipping point. Doing nothing is simply not an option. As economic conditions worsen, the inability of IT to take care of immediate customer concerns will erode the credibility of IT beyond repair. Rapid Response (Business Critical Requests) Business Funded, Outsourced A Responsive and Reliable IT Brand Customer Satisfaction
  • 9. Rapid Response: How It Actually Works The Rapid Response model borrows a fundamental “Lean” concept known as Little’s Law. Little’s Law allows for effective prioritization and sequencing of incoming requests, thereby reducing lead times without impacting capacity or quality. Little’s Law Small requests Medium requests Large requests Incoming Service Requests WIP Tier 1 (24 Hrs) Tier 2 (48 Hrs) Tier 3 (72 Hrs) PMO (Prioritization) Business Analysts Little’s Law in Action Lead time = WIP Productivity
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  • 18. References Marshall Goldsmith, “What Got You Here Won’t Get You There”, Hyperion, New York, NY, 2007. Marc Beaujean, Jonathan Davidson, Stacey Madge, “The Moment of Truth in Customer Service,” McKinsey Quarterly, 2006. Survey conducted by Forrester Research, September 2008. Chris Anderson, “The Long Tail: Why the Future of Business Is Selling Less of More,” New York, NY, Hyperion, 2006. C.K. Prahalad, M.S. Krishnan, “The New Age of Innovation: Driving Co-Created Value through Global Networks,” New York, NY, McGraw Hill, 2008. Malcolm Gladwell, “The Tipping Point: How Little Things Can Make a Big Difference,” New York, NY, Back Bay Books, 2000. Michael George, “Lean Six Sigma for Service,” New York, NY, McGraw Hill, 2003.