This document discusses how technology is driving companies to transition from production-focused models to hybrid production and services models. It argues that successful companies are developing a "fluid core" that allows them to continuously redefine their competitive advantages. It also discusses how companies are pursuing "radical adjacency" by entering new markets outside their core competencies. Mobile and cloud technologies are enabling new service development and innovation paradigms. Additionally, companies are externalizing more processes and building partnerships to access skills and pursue new opportunities in a global, transformative labor ecosystem.
Making the Shift to the Next-Generation EnterpriseCognizant
It's crucial for organizations to assess their next-generation strengths and weaknesses in light of their strategic priorities and then focus on the enablers that will prepare them for the future of work.
The document discusses Thomson Reuters' 2015 Top 100 Global Innovators report. It provides an overview of the methodology used to identify the top 100 innovators based on metrics like patent volume, success rates, geographic coverage, and influence. It also notes some key findings from the report, such as the industries that increased or decreased in innovation activity compared to the previous year. Additionally, it highlights how the Top 100 innovators outperformed other indices in terms of revenue, R&D spending, and other metrics, demonstrating the economic benefits of innovation.
Accenture Technology Vision 2016 Full Report A4WebMichael Biltz
The document summarizes Accenture's Technology Vision 2016, which focuses on the theme of "People First: The Primacy of People in a Digital Age." The summary highlights that:
- Digital technologies now dominate the global economy, accounting for 22% in 2015 and forecasted to reach 25% by 2020.
- While technology is driving immense changes, companies must transform their corporate cultures to truly succeed in this new digital era - their people and ways of working must become digital as well.
- Four key pillars are identified for building a thriving digital culture: being built for change, being data-driven, embracing disruption, and having digital risk awareness.
- The five technology trends covered in the
A recent study revealed that digital leaders (the top 10 percent of
companies leading technology innovation) achieve 2–3x revenue
growth as compared to their competitors—a widening divide that Accenture calls the “Digital Achievement Gap.” upload by Shamayun Miah Management Consultant Accenture
An Insight Report by the World Economic Forum’s System Initiative on Shaping the Future of Consumption prepared in collaboration with Accenture. Published January 2018
Value2.0. Capturing Value From Innovative TechnologiesJoseph Kristy
We are at the beginning of an era of true transformational change. The full power of the Internet, globalization and innovative new technologies are coming together, and in doing so, are changing the rules of business, culture and society. The purpose of this paper is to help
executives understand the new ways in which emerging technologies and principles are enabling value creation through what we call the “new
rules of Value 2.0.”
Why New-age IT Operating Models are Necessary for Enhanced Operational AgilityCognizant
IT organizations need a new operating model consisting of automated tools, refined thinking around operating discipline, and more relevant talent acquisition and management strategies. This new model will not only help IT deliver tailored services to a new generation of users, but it will also unlock the vast potential of emerging digital business opportunities made possible by the quickly maturing SMAC Stack.
Making the Shift to the Next-Generation EnterpriseCognizant
It's crucial for organizations to assess their next-generation strengths and weaknesses in light of their strategic priorities and then focus on the enablers that will prepare them for the future of work.
The document discusses Thomson Reuters' 2015 Top 100 Global Innovators report. It provides an overview of the methodology used to identify the top 100 innovators based on metrics like patent volume, success rates, geographic coverage, and influence. It also notes some key findings from the report, such as the industries that increased or decreased in innovation activity compared to the previous year. Additionally, it highlights how the Top 100 innovators outperformed other indices in terms of revenue, R&D spending, and other metrics, demonstrating the economic benefits of innovation.
Accenture Technology Vision 2016 Full Report A4WebMichael Biltz
The document summarizes Accenture's Technology Vision 2016, which focuses on the theme of "People First: The Primacy of People in a Digital Age." The summary highlights that:
- Digital technologies now dominate the global economy, accounting for 22% in 2015 and forecasted to reach 25% by 2020.
- While technology is driving immense changes, companies must transform their corporate cultures to truly succeed in this new digital era - their people and ways of working must become digital as well.
- Four key pillars are identified for building a thriving digital culture: being built for change, being data-driven, embracing disruption, and having digital risk awareness.
- The five technology trends covered in the
A recent study revealed that digital leaders (the top 10 percent of
companies leading technology innovation) achieve 2–3x revenue
growth as compared to their competitors—a widening divide that Accenture calls the “Digital Achievement Gap.” upload by Shamayun Miah Management Consultant Accenture
An Insight Report by the World Economic Forum’s System Initiative on Shaping the Future of Consumption prepared in collaboration with Accenture. Published January 2018
Value2.0. Capturing Value From Innovative TechnologiesJoseph Kristy
We are at the beginning of an era of true transformational change. The full power of the Internet, globalization and innovative new technologies are coming together, and in doing so, are changing the rules of business, culture and society. The purpose of this paper is to help
executives understand the new ways in which emerging technologies and principles are enabling value creation through what we call the “new
rules of Value 2.0.”
Why New-age IT Operating Models are Necessary for Enhanced Operational AgilityCognizant
IT organizations need a new operating model consisting of automated tools, refined thinking around operating discipline, and more relevant talent acquisition and management strategies. This new model will not only help IT deliver tailored services to a new generation of users, but it will also unlock the vast potential of emerging digital business opportunities made possible by the quickly maturing SMAC Stack.
The Last Word: The 50-Year Journey to Digital BusinessCognizant
To make good on the promise of the digital age, established companies must master a veritable Rubik's Cube of thorny challenges. The solution lies in understanding three key historical precedents and four perennial seasons of change.
Code Rules : A Playbook for Managing at the CrossroadsCognizant
Today’s outliers in revenue growth and value creation are winning with a new set of rules. They are dominating by managing the information that surrounds people, organizations, processes and products — what we call Code Halos™. When Code Halos scale, they spark new commercial models in a predictable five-step model that can take entire industries to "the Crossroads", a compressed period of time in which market dominance can dramatically flip from industry stalwarts to challengers. In this white paper, we define the new rules of success by decoding the business of meaning and the pattern of success that has emerged.
To learn more, visit : http://cogniz.at/codehalos
Learn how to catalyze performance by downloading our new "Code Halos" app : http://cogniz.at/iPadApp
Automating the Petroleum Industry, from Wells to WheelsCognizant
Crude oil price pressures and the Great Crew Change drive automation to lubricate nearly every link of the petroleum supply chain. An automation capability framework that is defined by nine core capabilities advances a company’s ability to become digital.
The 2016 State of Digital Transformation - Altimeter42medien
CX remains the top driver of digital transformation, but IT and marketing still influence technology investments (even without fully understanding customer behaviors and expectations).
Only half (54%) of survey respondents have completely mapped out the customer journey within the last year or are in the process of doing so.
A mere 20% of digital transformation leaders are studying the mobile customer journey and/or designing for real-time “micro moments” in addition to customer journey work.
This document discusses an IMD and Cisco initiative called the Global Center for Digital Business Transformation. The Center conducted a survey of over 900 business leaders from 12 industries to assess the state of digital disruption. Key findings include that digital disruption is occurring faster than ever and displacing incumbent companies, but many companies are not adequately addressing this threat. The document advocates that all industries will experience disruption as innovations become exponential, so companies must assess their vulnerability and either disrupt themselves or risk being displaced by new business models.
Accenture is a global management consulting and professional services firm founded in 1989 and headquartered in Dublin, Ireland. In 2011, it reported revenues of $27.35 billion and employs over 244,000 people globally. Accenture provides consulting, technology, and outsourcing services to help clients create their future by becoming high-performance businesses and delivering innovation to improve the way the world works and lives.
El documento presenta las propuestas de Daniel Tejero para la ciudad de Rawson y el área de Playa Unión si es electo intendente. Algunas de sus propuestas incluyen mejorar la seguridad a través de un mayor control policial, construir un puente para unir diferentes áreas, desarrollar actividades deportivas y culturales para los niños, e instalar oficinas municipales permanentes en Playa Unión. Tejero anima a los radicales a sumarse a su campaña, diciendo que juntos pueden lograr cambios positivos para la ciudad.
Este documento presenta la tercera edición del libro "Microcontroladores PIC Programación en Basic" escrito por Carlos A. Reyes. El libro enseña a programar microcontroladores PIC usando el lenguaje BASIC y presenta varios proyectos prácticos como parpadear LEDs, manejar displays y módulos LCD, generar sonido, comunicación serial y más. El documento también incluye información sobre descargas e instalación de software necesario como MicroCode Studio, PICBasic Pro y el programador IC-Prog.
Ontolica Library Preview allows users to view document previews without downloading files. It provides tools to explore, navigate, and compare documents through features like first page previews, full document previews, zooming, searching within documents, and comparing multiple documents side by side. The solution has no software requirements and supports a wide range of file formats and devices.
Metodologia de Trabajo en Proyectos con DrupalRuben Teijeiro
Esta sesión está pensada para exponer una propuesta de metodología de trabajo en proyectos basados en la plataforma Drupal.
Una sesión sencilla que avanzará desde lo abstracto a lo concreto, desde lo básico a lo avanzado.
La exposición será eminentemente práctica: se usará el caso real de un proyecto web para introducir los conceptos básicos de la estructura de elementos en Drupal, las características principales de Drush como herramienta de configuración y la elaboración de un profile reutilizable con las principales características y módulos más usuales en un proyecto web.
Por último, se expondrán aspectos relacionados con la distribución del paquete final dentro de la comunidad Drupal.
Este documento presenta un árbol genealógico de la familia Viniegra que data desde la primera generación en 1825 hasta la séptima generación en la actualidad. Describe los matrimonios y los hijos de cada generación, incluyendo sus nombres y fechas de nacimiento. El árbol genealógico proporciona información sobre la descendencia de la familia Viniegra a través de las generaciones y cómo se ha expandido geográficamente desde México a Estados Unidos.
This document describes a physician-centric platform called NetworksMD that enables collaboration in healthcare. NetworksMD allows physicians to create patient cases, discuss cases with colleagues, and discover related cases from a global repository. It facilitates clinical consultation, teaching and education, and clinical research. The NetworksMD Public Community is a free, web-based application that allows healthcare professionals to create detailed patient cases, discuss cases with colleagues worldwide, and expand their professional network for referrals or research. It provides flexibility as it can be accessed from any internet-enabled device from anywhere.
El documento describe varios artefactos y obras de arte de la civilización minoica y micénica en Creta y Grecia, incluyendo cerámica, frescos y objetos de oro y plata de entre los años 3000 a.C. y 1300 a.C., como la cerámica de Pyrgos, los frisos del Palacio de Knossos, frescos que representan guerreros micénicos y la procesión de asnos.
El documento analiza el poema "El cuervo" de Edgar Allan Poe. El poema es una obra de ficción contemporánea narrada en primera persona por un hombre que recibe la visita de un misterioso cuervo una noche. El poema utiliza rupturas temporales y contrapuntos para describir la interacción del narrador con el cuervo y sus recuerdos de Leonora.
Seminario sobre una introducción al paraguay actual, jose luis simón g.José Luis Simón G
Programa para un curso universitario sobre la realidad nacional del Paraguay contemporáneo, en perspectiva histórica y priorizando dimensiones sociales, políticas y económicas. Incluye bibliografía detallada.
Ringkasan dokumen tersebut adalah:
1. Dokumen tersebut membahas tentang tahap kemahiran ICT pelajar semester 5 dan 6 program Sarjana Muda Pendidikan Ekonomi di Universiti Pendidikan Sultan Idris.
2. Kajian ini bertujuan untuk mengenal pasti tahap latihan ICT, kekerapan menggunakan peralatan ICT, dan kesesuaian subjek ICT yang diajar.
3. Kajian ini membatasi ruang lingkupnya pada 36 or
The Last Word: The 50-Year Journey to Digital BusinessCognizant
To make good on the promise of the digital age, established companies must master a veritable Rubik's Cube of thorny challenges. The solution lies in understanding three key historical precedents and four perennial seasons of change.
Code Rules : A Playbook for Managing at the CrossroadsCognizant
Today’s outliers in revenue growth and value creation are winning with a new set of rules. They are dominating by managing the information that surrounds people, organizations, processes and products — what we call Code Halos™. When Code Halos scale, they spark new commercial models in a predictable five-step model that can take entire industries to "the Crossroads", a compressed period of time in which market dominance can dramatically flip from industry stalwarts to challengers. In this white paper, we define the new rules of success by decoding the business of meaning and the pattern of success that has emerged.
To learn more, visit : http://cogniz.at/codehalos
Learn how to catalyze performance by downloading our new "Code Halos" app : http://cogniz.at/iPadApp
Automating the Petroleum Industry, from Wells to WheelsCognizant
Crude oil price pressures and the Great Crew Change drive automation to lubricate nearly every link of the petroleum supply chain. An automation capability framework that is defined by nine core capabilities advances a company’s ability to become digital.
The 2016 State of Digital Transformation - Altimeter42medien
CX remains the top driver of digital transformation, but IT and marketing still influence technology investments (even without fully understanding customer behaviors and expectations).
Only half (54%) of survey respondents have completely mapped out the customer journey within the last year or are in the process of doing so.
A mere 20% of digital transformation leaders are studying the mobile customer journey and/or designing for real-time “micro moments” in addition to customer journey work.
This document discusses an IMD and Cisco initiative called the Global Center for Digital Business Transformation. The Center conducted a survey of over 900 business leaders from 12 industries to assess the state of digital disruption. Key findings include that digital disruption is occurring faster than ever and displacing incumbent companies, but many companies are not adequately addressing this threat. The document advocates that all industries will experience disruption as innovations become exponential, so companies must assess their vulnerability and either disrupt themselves or risk being displaced by new business models.
Accenture is a global management consulting and professional services firm founded in 1989 and headquartered in Dublin, Ireland. In 2011, it reported revenues of $27.35 billion and employs over 244,000 people globally. Accenture provides consulting, technology, and outsourcing services to help clients create their future by becoming high-performance businesses and delivering innovation to improve the way the world works and lives.
El documento presenta las propuestas de Daniel Tejero para la ciudad de Rawson y el área de Playa Unión si es electo intendente. Algunas de sus propuestas incluyen mejorar la seguridad a través de un mayor control policial, construir un puente para unir diferentes áreas, desarrollar actividades deportivas y culturales para los niños, e instalar oficinas municipales permanentes en Playa Unión. Tejero anima a los radicales a sumarse a su campaña, diciendo que juntos pueden lograr cambios positivos para la ciudad.
Este documento presenta la tercera edición del libro "Microcontroladores PIC Programación en Basic" escrito por Carlos A. Reyes. El libro enseña a programar microcontroladores PIC usando el lenguaje BASIC y presenta varios proyectos prácticos como parpadear LEDs, manejar displays y módulos LCD, generar sonido, comunicación serial y más. El documento también incluye información sobre descargas e instalación de software necesario como MicroCode Studio, PICBasic Pro y el programador IC-Prog.
Ontolica Library Preview allows users to view document previews without downloading files. It provides tools to explore, navigate, and compare documents through features like first page previews, full document previews, zooming, searching within documents, and comparing multiple documents side by side. The solution has no software requirements and supports a wide range of file formats and devices.
Metodologia de Trabajo en Proyectos con DrupalRuben Teijeiro
Esta sesión está pensada para exponer una propuesta de metodología de trabajo en proyectos basados en la plataforma Drupal.
Una sesión sencilla que avanzará desde lo abstracto a lo concreto, desde lo básico a lo avanzado.
La exposición será eminentemente práctica: se usará el caso real de un proyecto web para introducir los conceptos básicos de la estructura de elementos en Drupal, las características principales de Drush como herramienta de configuración y la elaboración de un profile reutilizable con las principales características y módulos más usuales en un proyecto web.
Por último, se expondrán aspectos relacionados con la distribución del paquete final dentro de la comunidad Drupal.
Este documento presenta un árbol genealógico de la familia Viniegra que data desde la primera generación en 1825 hasta la séptima generación en la actualidad. Describe los matrimonios y los hijos de cada generación, incluyendo sus nombres y fechas de nacimiento. El árbol genealógico proporciona información sobre la descendencia de la familia Viniegra a través de las generaciones y cómo se ha expandido geográficamente desde México a Estados Unidos.
This document describes a physician-centric platform called NetworksMD that enables collaboration in healthcare. NetworksMD allows physicians to create patient cases, discuss cases with colleagues, and discover related cases from a global repository. It facilitates clinical consultation, teaching and education, and clinical research. The NetworksMD Public Community is a free, web-based application that allows healthcare professionals to create detailed patient cases, discuss cases with colleagues worldwide, and expand their professional network for referrals or research. It provides flexibility as it can be accessed from any internet-enabled device from anywhere.
El documento describe varios artefactos y obras de arte de la civilización minoica y micénica en Creta y Grecia, incluyendo cerámica, frescos y objetos de oro y plata de entre los años 3000 a.C. y 1300 a.C., como la cerámica de Pyrgos, los frisos del Palacio de Knossos, frescos que representan guerreros micénicos y la procesión de asnos.
El documento analiza el poema "El cuervo" de Edgar Allan Poe. El poema es una obra de ficción contemporánea narrada en primera persona por un hombre que recibe la visita de un misterioso cuervo una noche. El poema utiliza rupturas temporales y contrapuntos para describir la interacción del narrador con el cuervo y sus recuerdos de Leonora.
Seminario sobre una introducción al paraguay actual, jose luis simón g.José Luis Simón G
Programa para un curso universitario sobre la realidad nacional del Paraguay contemporáneo, en perspectiva histórica y priorizando dimensiones sociales, políticas y económicas. Incluye bibliografía detallada.
Ringkasan dokumen tersebut adalah:
1. Dokumen tersebut membahas tentang tahap kemahiran ICT pelajar semester 5 dan 6 program Sarjana Muda Pendidikan Ekonomi di Universiti Pendidikan Sultan Idris.
2. Kajian ini bertujuan untuk mengenal pasti tahap latihan ICT, kekerapan menggunakan peralatan ICT, dan kesesuaian subjek ICT yang diajar.
3. Kajian ini membatasi ruang lingkupnya pada 36 or
Este documento presenta recursos de Internet relacionados con varios bloques temáticos de la asignatura de Ciencias II (Física) para secundaria. Incluye enlaces a páginas sobre conceptos como movimiento, fuerzas, ondas, sonido, energía y electromagnetismo. También contiene recursos sobre fenómenos naturales, fuentes de energía, generación eléctrica y cosmología. El objetivo es facilitar actividades donde los estudiantes aprendan a usar la computadora y manejar herramientas tecnológicas y conceptual
El documento presenta el diseño de la perforación de pozos, describiendo los aspectos a considerar como el objetivo, la columna geológica esperada, el programa de toma de información, la recopilación de datos de pozos de correlación, la determinación de gradientes de presión, la selección de profundidades para las tuberías de revestimiento, la selección y programa de fluidos de perforación, el diseño de tuberías de revestimiento, cementación, diseño de sartas de perforación y programas de barrenas. El documento provee una guía
Updated CRRC Presentation - Test Method ChangesJeffrey Steuben
The document summarizes changes to test methods used by the Cool Roof Rating Council (CRRC) to rate solar reflectance and thermal emittance of roofing products. It describes two studies conducted to examine the impact of upgrading the Solar Spectrum Reflectometer device and adopting the Slide Method for thermal emittance testing. The studies found the test method changes resulted in small differences that did not warrant adoption of the new reflectometer version or extrapolation of slide test data, but some product types may be tested using the new methods going forward.
Micro-momentos - El momento decisivo de la relación con el usuario | Digital ...Digital Boost
Presentación preparada para las ponencias del eShow de Madrid - Beatriz Fernández Alonso, Digital Business Specialist en Digital Boost (www.digboost.com).
Cartier-Bresson entendía la fotografía como “la capacidad única de congelar un instante que se habría perdido de no haberse realizado la foto”. Esto es lo que ocurre en la relación entre las marcas y los nuevos consumidores. Hay momentos, breves e intensos, que si no se aprovechan se pierden. Interactuar con el usuario antes o después ya no es suficiente, hay que estar presente en el momento exacto. Ya no estamos en la época de posar de forma organizada, si queremos diferenciarnos tenemos que captar al cliente en movimiento dentro de su viaje omnicanal, reconsiderando los “puntos de contacto” tradicionales. Es decir, dirigirnos hacia los llamados Micro-momentos.
The impacts of the data-technology-automation revolution are all around us, but we have already learned that the age of transformation calls for more than just faster ways of doing old things.
De nombreuses définitions existent au sujet du Cloud Computing et les fournisseurs les cadrent selon une perspective technique, faisant passer le concept à un mot à la mode (Buzz word) égarant ainsi les décideurs, hommes d'affaires et leur laissant une idée confuse de son importance concurrentielle pour l'entreprise.
Ce livre blanc interactif a pour intention d'expliquer le concept du "Cloud Computing", la définition du concept et les technologies principales sur lesquelles le Cloud Computing est fondé.
Il vous présentera les contraintes et les facteurs de l'environnement d'aujourd'hui qui peuvent motiver l'adoption réussie du Cloud Computing dans la stratégie d‘une entreprise.
This document presents a vision for factories of the future developed by the Manufacturing Leadership Council. It discusses how factories will transform over the next 10-15 years as they become more digitized, automated, data-driven, and customized. Key changes include factories becoming more modular and distributed, supply chains becoming integrated and intelligent, and new business models emerging focused on outcomes and services. Workforces will need new digital skills to work alongside increasingly intelligent machines. The future factory is envisioned as a highly connected system using data and analytics to self-optimize production.
This document discusses how business virtualization can help companies unleash true innovation power in the 21st century. It outlines 10 principles of business virtualization including choosing a path of differentiation, moving decision making closer to customers, leveraging partnerships, and building a listening infrastructure. Examples are given of companies like Ritz-Carlton, Samsung, Tesco, GE, Target, and IBM that have applied these principles through practices like empowering employees, partner innovation programs, collaboration tools, open innovation platforms, customer data analysis, and focusing on customer lifetime value. Zynga is highlighted as exemplifying business virtualization through its lightweight infrastructure, outsourcing of non-core functions, and scaling games based on usage patterns.
The document discusses how robots and artificial intelligence are changing the skill sets needed for finance transformation projects. It notes that routine tasks are being automated, increasing the need for skills like data analysis, project management, and strong interpersonal skills. To succeed, organizations must have the right mix of seniority, experience, and skills mapped to their specific project needs. Maintaining the right grade mix over time, as tasks change, is important for delivering projects and long-term services effectively.
Digitalization, globalization, and new technologies are accelerating industrial changes and the fourth industrial revolution. This is putting pressure on supply chains and how production facilities are planned and built. Companies must view assets as part of an integrated value chain to get products to market quickly, with quality, competitive pricing, and responsibly. Key drivers of change include new technologies, globalization, industry consolidation, and attracting talent. As a result, built assets must be responsive, integrated into value chains, and support business needs.
This document provides an executive summary of a World Economic Forum white paper on digital transformation of industries and becoming a digital enterprise. The summary includes:
1) The white paper focuses on digital business models, digital operating models, digital talent and skills, and digital traction metrics that are important for companies to consider when undergoing a digital transformation.
2) It provides recommendations for companies, such as identifying and launching new digital business models, examining all aspects of operations, understanding and leveraging data, and establishing the right digital metrics.
3) It also includes questions for companies to consider in relation to these recommendations, such as evaluating strategic options, agility of approval processes, leveraging analytics, and ensuring cultural transformation.
Organizations need to fundamentally transform their processes and systems to survive intensifying competition. The document outlines pressures for change including technological advancements, shifting customer demands, and shortening product lifecycles. It argues that reengineering business processes and management approaches is necessary to gain efficiencies and adapt to this changing environment. Successfully reengineering is key to improving metrics like costs, quality, and flexibility that are essential for business success.
The document summarizes the key findings of Accenture's Technology Vision for 2016. It discusses how digital technologies are now dominant in every sector of the economy, accounting for 22% of the global economy in 2015. It highlights how companies must transform their corporate culture to keep up with the pace of technological change, which 86% of executives surveyed said would increase rapidly or at an unprecedented rate. It identifies four pillars that companies need to build their digital culture around: being built for change, being data-driven, embracing disruption, and being digitally risk-aware.
The document provides an overview and executive summary of Accenture's Technology Vision for 2016. The three key points are:
1) Digital technologies are now dominant in every sector of the economy, but many companies are experiencing "digital culture shock" as they struggle to adapt their organizations, people and cultures to the pace of change.
2) To succeed, companies must build a digital culture based on four pillars: being built for change, being data-driven, embracing disruption, and being digitally risk aware.
3) The five technology trends highlighted are intelligent automation, liquid workforce, platform economy, predictable disruption, and digital trust - with each trend emphasizing that people, not just technology, will underpin
The Importance of a Growth Mindset in a Digital WorldWill
This document discusses the importance of developing a growth mindset within organizations in order to take advantage of opportunities in the digital world. It argues that companies need agile cultures that embrace change and innovation. The document provides examples of companies like Netflix, Blockbuster, Starbucks and hospitals that cultivated growth mindsets and were able to adapt to digital transformations, compared to those like Blockbuster that did not and failed. It identifies characteristics of agile organizations like responsiveness, collaboration, and learning mindsets. Leaders must shape cultures, engage employees and align practices to develop these agile cultures.
People — Not Just Machines — Will Power Digital InnovationCognizant
As new technologies cause value chains to rapidly evolve and organizational boundaries to blur, human roles and tasks are also digitizing, as machines alter how knowledge work is performed.
The business landscape is being transformed by a series of megatrends, of which digital technology is already proving to be the most pervasive and potentially disruptive.
Innovation's unsung hero in volatile times: Industrialized business operationsGenpact Ltd
This document discusses how industrialized business operations can drive innovation by harnessing data and processes at scale. It argues that superior operations can transform 20-80% of back office work and support 5-10% of functions like R&D. Examples show how data-driven operations have enabled hyper-growth for companies like Amazon and differentiated customer experiences for Apple. For operations to truly enable innovation, they must embrace practices focused on people, technology, and process to design for agility and react quickly to changing market conditions.
Extreme market volatility has prompted companies across industries to build more
effective business operations1
. Leading innovators such as Apple, Amazon, GE, HSBC,
and PayPal2 among others have addressed those challenges by harvesting the value of
information – at scale - and harnessing the art of the possible in their business operations.
This paper describes how product and business model innovation can be driven and
enabled by smart business process operations, be they transaction or decision support.
The evidence accumulated across hundreds of companies indicates that “industrialized
operations” – thanks to scientific decoupling and consolidation of part of business
processes run as an extended enterprise, utilizing data, metrics, as well as IT and HR
practices in innovative ways - constitute a material yet relatively untapped lever.
Digital transformations require reinventing a company's core capabilities to find new sources of revenue. This involves rethinking the value proposition, people, processes, and technology that comprise a business. A proven approach involves four phases - Discover opportunities, Design new customer experiences, Deliver changes through partnerships, and De-risk the process. Most companies fail because they don't fully execute across all phases, underinvesting in capabilities or not driving change thoroughly. Radical reinvention is needed to remain competitive in the digital age.
Industries, businesses and business models are being radically changed as a consequence of all the technological developments sweeping the world. I am writing a series of papers that cover the implications of all of this for how boards go about doing their work. The first paper is a general overview of these developments.
The document discusses how new technologies are enabling the rise of ecosystems where organizations collaborate beyond traditional boundaries. Ecosystems involve complex webs of relationships across industries and sectors to create value. To succeed in this new environment, organizations will need to shift from focusing solely on themselves to taking an ecosystem-centric view that emphasizes openness, collaboration, and tapping analytics to provide seamless customer experiences. The rapid pace of technological change is increasing customer expectations around simplicity, personalization, and integration across channels. Companies that can harness data and forge new partnership models will be best positioned to meet these demands.
Similar to The Fluid Core: How Technology Is Creating a New Hierarchy of Need, and How Smart Companies Are Responding (20)
Using Adaptive Scrum to Tame Process Reverse Engineering in Data Analytics Pr...Cognizant
Organizations rely on analytics to make intelligent decisions and improve business performance, which sometimes requires reproducing business processes from a legacy application to a digital-native state to reduce the functional, technical and operational debts. Adaptive Scrum can reduce the complexity of the reproduction process iteratively as well as provide transparency in data analytics porojects.
Data Modernization: Breaking the AI Vicious Cycle for Superior Decision-makingCognizant
The document discusses how most companies are not fully leveraging artificial intelligence (AI) and data for decision-making. It finds that only 20% of companies are "leaders" in using AI for decisions, while the remaining 80% are stuck in a "vicious cycle" of not understanding AI's potential, having low trust in AI, and limited adoption. Leaders use more sophisticated verification of AI decisions and a wider range of AI technologies beyond chatbots. The document provides recommendations for breaking the vicious cycle, including appointing AI champions, starting with specific high-impact decisions, and institutionalizing continuous learning about AI advances.
It Takes an Ecosystem: How Technology Companies Deliver Exceptional ExperiencesCognizant
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2. 2 FUTURE OF WORK June 2013
Executive Summary
The 21st century enterprise will likely be defined by one
overarching transition as organizations complete the journey
to what used to be called a post-industrial enterprise —
moving from a purely production-focused model to a hybrid
production-and-services framework.1
This shift is happening precisely as mobile and cloud2
computing enable seamless, friction-free services development.
These technologies are key shapers of the most pervasive
changes we have yet experienced in the global economy —
compelling enterprises to operate well beyond their comfort
zone. Change is so pervasive that many organizations find it
difficult to keep up, keep track and respond in a timely way.
To understand the nature of these changes and the way
in which leading enterprises are responding to them, we
interviewed 30 CIOs and chief innovation officers, as well
as CEOs of service providers that capitalize on, or propel,
enterprise disruption. We interviewed leaders from some of the
largest players in IT (Dell, SAP), financial services (ABN AMRO,
Chubb) and media (The Washington Post Company, Forbes).
Our findings suggest that successful organizations are claiming
the future by understanding a new hierarchy of enterprise
needs, and adopting a new, adaptable infrastructure where
technology, humans and competitive conditions intersect and
can interact in real time (see Figure 1).
Ironically, as service-based models grow, companies that
were born in the services era (Google and Amazon.com,
for example) are rapidly developing their own device-
manufacturing strategies and capabilities. These businesses
are seeking to integrate production and services for what
might be called the “deviceware age,” in which we create and
consume what is at once product and intelligence, product and
software, content and connections.
3. The “services” economy is in fact becoming an embedded
ecosystem, where content, intelligence, service, connection and
transaction are incorporated into an object or device.
At a strategic level, this is changing how companies must
envision and plan the capabilities they will need to be
successful. In place of the old concept of business core and
context, organizations must adopt what we call a “fluid core,”
which enables companies to continuously redefine what is core
to their competitive advantage.
These changes are also making it possible — even imperative —
to complete the transition to ”deviceware,” which compels
organizations to segue from a production focus to a production
and services orientation, and from hardware to software plus
hardware. In this way, companies can build the core necessary
to help ensure a highly adaptive strategic competence and
succeed in the global marketplace.
THE FLUID CORE 3
Figure 1
The New Hierarchy of Need
Strategic
options
management
Externalization
(e.g., new labor ecosystem)
Personal
innovation drivers
Moore’s Law
Flexible service infrastructure
(cloud and mobile)
Radical
adjacency
4. 4 FUTURE OF WORK June 2013
Thinking Beyond the Core Competency
At a strategic level, the relentless pace of technology is forcing companies to think
beyond their core competency. Getting there requires mastery of the following:
• The Fluid Core:3
In place of a rigid “core” the fluid core adapts to new strategic
priorities, primarily the need to seek out new markets and opportunities.
• Radical adjacency: We call the pursuit of new products and markets radical
adjacency — the powerful strategies that adventurous companies develop to
dominate or capture markets where they have little or no prior experience.4
• A new service infrastructure: This is made possible by the second level of the
new hierarchy of need, where cloud and mobile enable rapid new service devel-
opment and new innovation paradigms.
• Drivers and strategy: Sitting above the service infrastructure in the new hierar-
chy are human innovation and radical adjacency.
>> On one side, trends such as bring your own device (BYOD) express personal
empowerment through technology. They disrupt systems and organizational
expectations.
>> On the other side is the power of some companies to address entirely new
markets, and their willingness to work with a fluid concept of what is core to
the business.
>> Taken together, the need for radical adjacency and the tendency of the labor
force to become more empowered is making it increasingly difficult for man-
agement to make critical calls around brand and employee loyalty.
• Externalization: A new labor ecosystem — one that is global and transforma-
tive — has emerged. It is capable of providing for most enterprise needs. But
it requires companies to strategize around where and how to secure skills and
creativity, and for how long.
>> The new labor ecosystem is part of a broader externalization process, since
companies have to externalize many essential processes that they cannot
excel at internally. Literally, in this environment, companies go outside their
walls for functions that are absolutely central to their identity and success.
The rest of this report examines these themes in more detail, and characterizes
them in a way that can be understood and addressed by senior leadership teams.
New Times, New Rules
In this period of profound change, many of the current orthodoxies about business
opportunity, business models and the technology tools used to run enterprises are
under significant stress. Executives looking around their own or their competitors’
organization recognize that there is significant work to be done in terms of re-
thinking what the business does and re-wiring how it does it.
At the core of the challenges and opportunities that face senior leaders is the need
to adapt to a new chapter of competition by infusing new skills, new tools, new
management models and new faces into the business.
Our research suggests a far different reality on the ground — and in the boardroom —
one that is not the same as simplified explanations from the outside might suggest.
There is no single, linear driver of change; it is constant, multifaceted and over-
whelming in many cases.
5. THE FLUID CORE 5
The overarching change that we are witnessing in the market is the transition from
a pure production-based to a production- and service-oriented enterprise. After
an extended evolutionary period, companies are finally integrating services into
their product offerings, at the precise time that mobile and cloud computing are
enabling seamless, friction-free service development. At the same time, companies
born in the services era — for example Google — are now rapidly developing device
strategies in pursuit of deviceware.
The Nature of the New Service Economy
Companies are experiencing a fundamental change in how enterprise business is
organized. In fact, over the past 30 years companies have transitioned from a prod-
uct-centric to a service-centric organizational form.5
One might think that this transition is over. After all, western economies have
largely shed manufacturing-based, production-type jobs and replaced them with
service roles that require minimal training. However, there is a profound mispercep-
tion about this transition.
Organizations must reappraise the evolution of the services-based economy; what
we are now experiencing is in fact a new phase in its development. Businesses are
being forced to rapidly complete this transition because mobile and cloud technolo-
gies are key enablers that competitors are fastening on to. But that is by no means all.
Rick Kreifeldt, who heads innovation at Harman, the leader in in-car infotainment
systems, puts it this way:
“Traditionally, in our U.S. and European centers we did not pay attention
to emerging markets. New car-makers are doing that now. There is
also technological change. Open source software and cloud computing
are bringing new competitors such as Pandora and Spotify into the
market. These ‘service’ models mean that we have changed from being
a company that was hardware-driven to being one that is software-
driven and one increasingly focused on delivering a ‘service’ by working
in the cloud. Twenty years ago we had a very large hardware component
with little software. Now in a large project we might have 50 software
engineers to one hardware engineer.”
What Kreifeldt is alluding to is the presence of the “device” — an object, often a
smartphone, but increasingly an embedded processor through which products or
services are delivered and transacted. The device is no longer just hardware; it is
hardware, software, services and connections. To move into deviceware quickly, to
complete the transition to service, companies are looking for on-demand skills in
key areas of their businesses.
This trend is characterized by extensive externalization of key processes, many
of which, such as product development or UI/UX design or product design, would
previously have been considered “core” to the organization, and would have
therefore been executed by internal staff on the company payroll.
The trend towards service and externalization is seeing enterprises become almost
entirely “porous.”6
As Kreifeldt says:
“We have big discussions on what is ‘core’ vs. ‘non-core’ in our
operations, for example, in the area of speech recognition, where there
is an engineering focus.
6. 6 FUTURE OF WORK June 2013
Take the whole business of industrial design. Our consumer division
has now gone to outside design firms — for even things that are part
of our brand identity — so that we can get best of class. And we think
that is okay.”
The externalization of business operations enabled by and requiring more produc-
tion-service integration is seeing enterprises reconsider both what they do and
how they do things. Many are consequently looking to change their strategic focus,
pursue new opportunities and shed incumbent legacy parts of their business.
One key tactic to achieve this is through a much greater focus on partnership-
building.
Aaron Levie, the 27-year-old CEO at Box, an online file sharing service, sees it this
way:
“Partners for us are distribution, and recently we partnered with
Deutsche Telekom in Europe where we see a lot of growth … We also
partner with companies like HP, Dell, Salesforce.
Secondly, our platform is a developer platform that third-party
developers can build on top of our technology and take us into different
verticals.”
And Oren Michels, CEO of Mashery, a company that provides API management,
adds:
“We often try to interpret our clients’ externalization of their processes
as APIs. We don’t generally use the term ‘externalization.’ Also, people
think of APIs in terms of a developer community but we use the term
‘partner.’ Our clients are trying to accomplish making their world and
yours better, and the real root of it is a partner strategy, internal or
external.”
Globalization and new waves of non-western competition are creating new com-
petitive threats, which compel western enterprises to search out new areas of
business both in emerging fields and new territories (for example, Microsoft and
Google moved into telephony through the acquisition of Skype and the develop-
ment of “Hangouts,” respectively. Ericsson pushed into various service-centric
business lines, competing with service companies such as IBM in the managed
services arena).
The Rise of Radical Adjacency
Together, these trends are creating much more intensified competition and
much less predictable competition. They are also driving a new behavior: radical
adjacency.
Radical adjacency occurs when companies must step outside their core competency
or core markets in order to innovate or grow in adjacent markets. In reality, that is
precisely what the new service orientation facilitates. Radical adjacency becomes
easier and more necessary.
Radical adjacency occurs when companies must
step outside their core competency or core markets
in order to innovate or grow in adjacent markets.
7. THE FLUID CORE 7
Traditionally, these types of moves have been the toughest call in business; con-
sequently, many enterprises have shied away from making them. But being able
to manage adjacencies is now a core skill; Apple’s move into mobile is but one
example where a radical adjacency play worked out spectacularly well.
Externalization, the rise of the device, radical adjacency and ecosystems are all
manifestations of the core underlying changes happening across the technology
landscape.
As Fabian Schlage, who heads up innovation at telecom infrastructure provider
Nokia Siemens Networks (NSN) puts it:
“... We need stickiness in our products and to do that we look for
technology from other business sectors to create unique products.
In an ecosystem we can help to shape what is happening and we can
integrate other people’s inventions.
We need to make savings in R&D costs also, and we recognize it is not
so important to own the patent now. We need product development
to be faster so a lot of our work is about utilizing the patents of our
partners and in working on projects where we co-create IP.”
Nokia-Siemens, previously a patent-driven company, now thinks in terms of part-
nerships — using other organizations’ or individuals’ technologies; adopting tech-
nologies from adjacent sectors; not owning the patent, and developing strategies
to speed development. This represents a profound shift for a giant old-line business
and is a clear indication of the pressing need to adapt to these new dynamics.
AT&T recognizes these dynamics, but also sees the importance of the role customers
can play within new business ecosystems. The company’s focus, as John Donovan,
SEVP of AT&T Technology and Network Operations notes:
”… is on the intersection of product and customer. A small company
with consumer activity would be having a product release every
Tuesday, already knows which features work and which do not. It is an
adaptive pattern focused on usability. It turns the product manager’s
role into price and place rather than the product.”
You can’t get much more externalized than that. AT&T is signalling that it needs to
operate like a small company and operate at the pace small companies can operate.
Traditional large-company product development and release cycles are a thing of
the past. “Co-innovation;” “partnering;” the use of specialists for core competency
tasks; dual innovation models; narrow innovation, and highly adaptive product
processes are all highly externalized and all key to the new operating principles
required for success in the new markets emerging all around us.
Being able to manage adjacencies is now a
core skill; Apple’s move into mobile is but
one example where a radical adjacency
play worked out spectacularly well.
8. 8 FUTURE OF WORK June 2013
Box’s Levie believes that:
“Enterprise architecture will look vastly different in the future,
especially the role of IT and of tech, and of what becomes do-able in
the enterprise. The cloud makes a lot more possible. IT can move away
from managing servers and data centers to ask how do I manage or
contribute to a world class enterprise.”
The service layer that will enable this vision is already emerging in old-school
organizations like The Washington Post Company. As CIO Yuvi Kochar relates:
“At The Washington Post we are moving more towards a platform
business with a lot more content providers in addition to Reuters and
AP. We associate with a lot of smaller companies or individuals.”
Lewis Dvorkin, Forbes Media’s Chief Product Officer, also sees a completely different
model of content production emerging in the field of media — but these changes are
applicable elsewhere, too.
“Technology is a very daunting driver, especially mobile, tablets, smart-
phones. The move from print to the use of the desktop for content
took 20 years but the shift to mobile is lightning fast. The economics
of journalism are broken and in order to find a new model, we need to
look at new labor models and new processes to create quality content.
Anybody, theoretically, can publish; anyone who is smart can find an
audience, very cheaply, without a printing press. And yet in digital,
advertisers do not want to pay for an audience in the same way they
pay in print. So the question is how do you use the tools? How do you
find the talented people to create content for this world?”
Staking the Claim: Finding Skills,
Increasing Personal Responsibility
Executives interviewed for this report commented on many aspects of the structural
and secular changes they see occurring around them. One of the most important,
that all agreed on, is that the nature and type of skills that their organizations need
are changing materially, at every level of their organization.
From the graduate entrant to the top of leadership — in every aspect of enterprise
activity — a new skill, approach or philosophy is now needed. And it is not just
about qualification levels or experience. It is about personality, attitude, creativity,
maturity and responsibility, and finding people who can respond to and lead their
enterprises through an array of transitions in nearly every activity imaginable —
driven by technology, new behaviors, a new competitive environment and many
additional factors that we will describe later.
This dual theme of needing new skills and increasing
personal responsibility runs through most
companies’ analysis of the challenges they face.
9. THE FLUID CORE 9
The Washington Post Company’s Kochar explains it this way:
“Finding the talent that can deal with all these technologies and be
savvy without increasing our costs is a huge challenge. We are up
against all the mobile companies and the product companies. Although
we have an interesting brand, talent remains a huge challenge.
It goes beyond technology and is related to product developers who
can also deliver a new business model. People who are exposed to
social [media], for example, they are emerging and there is not a lot of
experience out there.
There’s a more general issue of how you prepare people for jobs as
jobs are changing so quickly. Kids coming out of college are already
under-prepared and don’t have the skills needed. That’s why ongoing
education is so much more important. People must take on the respon-
sibility of educating themselves.”
This dual theme of needing new skills and increasing personal responsibility runs
through most companies’ analysis of the challenges they face.
There are companies that have mastered this new dynamic, but they tend to be
start-ups and highly adaptive. Levie of Box points to the sheer velocity of change.
He notes:
“I think talent management is changing but the core philosophy is the
same. We are working on a faster cycle time, innovating every month
or two months. We have built an organization and a model that can
respond to change very quickly. It’s an extreme discipline that we have,
not just in engineering but also in, for example, partnerships.”
How are more established players dealing with change? Alberto Prado is respon-
sible for high-performance innovation at European consumer electronics giant
Philips. He alludes to Philips’ pressing need for a more open research environment
to advance its innovation agenda:
“For me open innovation is first and foremost an attitude that requires
behavioral change — apart obviously from requiring the right tools. We
have been training and coaching our engineering teams across all sites
as part of a multi-year program to turn Philips into a more outward-
looking organization.
These skills can be as basic as knowing how to pick up the phone
and have a conversation with an external company/individual, under-
standing what to share and what not to share at each stage of the
relationship.
If you dive into research it is even more challenging. And I think it goes
as far as our educational systems — we are educated to solve problems,
and not to work with others to solve them. This is particularly the case
in science and engineering, where people tend to be naturally introvert-
ed. There is a lot of inertia from those formative years [when] taking
the solution of a problem from somewhere else is equal to failure —
reaching out does not come naturally. Researchers and engineers
have a tendency as a result to become skeptical about the validity of
solutions coming from outside — [the] not-invented-here syndrome.”
Research is the lifeblood of a company such as Philips, but attitude changes are
also on the agenda at companies such as National Geographic. As Digital President
Declan Moore notes:
10. 10 FUTURE OF WORK June 2013
“We have reoriented around three key areas: kids, travel and the core.
In these areas now we are 24/7, 360 degrees. For kids we are 24/7, 360
across the Web, mobile app and TV. In travel it is the same with the
addition of products and events. And with the core also we are thinking
print, digital and events.
We’ve also changed from siloed groups, there is much more engagement
and cross-working…. We absolutely need people who can self-develop.
There are a lot of opportunities but that is for people who can be 360
and take an interest in the Twitter feed, the blog, the online edition,
etcetera. They have to be multitasking and they have to have their
finger on the pulse of what other people are saying.
If you are nimble and can navigate all that there are a lot of opportuni-
ties. It has been a challenge.”
These observations are not confined to companies with an obviously high degree
of creative input such as media and research. In the relatively slow-moving world of
train transportation, Bombardier is struggling with talent. Chief Innovation Officer
Martin Ertl comments:
“It’s a challenge for every company to find the right talent. The real
question is finding the right people for the right purpose, which is differ-
ent from getting the top grads. We have programs, in all large facilities;
we are in constant contact with universities, and local suppliers, to be
an attractive employer.”
But in the world of R&D there is considerable change. At global telecom infrastruc-
ture leader Ericsson, Head of Innovation Magnus Karlsson notes that the company
is now forced to operate two innovation models. The first is the familiar ten-year
journey to create new telecom infrastructures, although that value chain is being
disrupted as Asian competitors commoditize the technology far more quickly than
in the past.
To compensate for this, Ericsson is developing a second model focused on innovation
around services. Karlsson makes the point, though, that there is very little slack left
to double up on innovation:
“The second model is more insight driven, so [it] needs constant
attention to new opportunities. It is an extremely difficult management
challenge — can you create new stuff while delivering what you have?
Ten years ago companies had some kind of organizational slack, stuff
happening under the radar. This is no longer the case — that slack is
gone because we use Six Sigma or operational excellence. R&D is more
factory-like and less exploratory.
So we are becoming more assignment driven as the space to discover is
taken away. Going forward we need to pay attention to exploration and
where we can design in the resource. The management challenge for
us is this type of manager who recognizes the need for an innovative
strategy while delivering on what has to be done.”
The skills challenge extends into the new geography of the organization. Says Andre
Durand at Ping Identity, a 300-person software development company in Denver:
“The first thing that comes to my mind is the talent war or the hunt
for the right talent. If you follow the logic of “hire the best” it soon
makes you very distributed. So we got on to the idea of a talent pool and
11. THE FLUID CORE 11
researched where talent pools exist and why. For example, in Halifax
(Nova Scotia) there are several universities, they are very isolated and
yet people tend to stay there, and they had employment from RIM
(Research in Motion). For those reasons there is a talent pool.
We can’t find talent in one place so we are distributed. It’s a common
theme among CEOs in Denver. We don’t have a Google or a Facebook or
a Stanford so our conversation soon focuses on our struggle to hire.”
On a more generic level, Jon Bidwell, Chubb’s Chief Innovation Officer, sees middle
management skills changing:
“There’s a different set of skills starting to emerge. Going back thirty
years you had a whole layer of middle management that functioned as
an information filter. They figured out what information was needed by
whom and they distributed it pretty much like the World War II model
of organization.
We’re experiencing these networks tools now, business intelligence
tools, and information visualization tools that can give you a good
read on information and get a much better feel of the pulse of what is
happening in the organization rather than relying on someone filtering
it down. The virtual company can exist because the high trust, low
control element is there. In our innovation group we do a lot of work
virtually with people who may have worked for Chubb in the past or
with colleagues or with people we bring in for an assignment.”
Up from middle management, the new enterprise is demanding news skills of
leadership too. As Box’s Levie puts it:
“Leaders need to expect a world where everyone you are working with
will have access to the strategy, to customer feedback, and other types
of information. People will expose information, share and consume, and
create and distribute ideas.
This changes the dynamics of leadership. It’s no longer about going into
a corner and deciding strategy. It’s about many ideas that you become
the curator of and which you help people to execute.”
These executive views are directly in line with findings from a recent Forbes
magazine survey7
of skill requirements, which found that the following attributes
are key to the new types of jobs that enterprises are looking to fill.
• Critical thinking (found in 9 out of the 10 most in-demand jobs), using logic and
reasoning to identify the strengths and weaknesses of alternative solutions, con-
clusions or approaches to problems.
• Complex problem solving (found in 9 out of the 10 most in-demand jobs), iden-
tifying complex problems and reviewing related information to develop and
evaluate options and implement solutions.
• Judgment and decision making (found in 9 out of the 10 most in-demand jobs),
considering the relative costs and benefits of potential actions to choose the
most appropriate ones.
• Active listening (found in 9 out of the 10 most in-demand jobs), giving full atten-
tion to what other people are saying, taking time to understand the points being
made, asking questions as appropriate and not interrupting.
Enterprises need people who are self-educating, and able to re-educate fast; who
are able to work in small teams that can generate new business models alongside
12. 12 FUTURE OF WORK June 2013
technological or service innovations; who can create and execute; who have their
“finger on the pulse,” and who can generate new insights into new customer needs.
They need middle managers who can redeploy away from being simply “gatekeep-
ers” into leading the newly emerging global service economy; and leaders who can
act more like peers — extending higher levels of trust to people in their teams.
In other words, a new skill set is essential to thrive, and also to make the key transi-
tions implied by the new hierarchy of need.
Externalizing the Core
Mobile and cloud computing are accelerating a number of paradigm shifts. For
instance, the ability to quickly create new service offerings by combining cloud
services into one new master service. The shift to BYOD8
... the acceleration of the
open or porous enterprise… and the more general “consumerization of IT,” for
example, have reduced the power of the Wintel monopoly — the alliance between
Microsoft and Intel that sold millions of desktops, laptops and notebooks for decades.
As Box’s Levie suggests:
“In the past 95% of desktops and laptops were controlled by Microsoft.
Now Microsoft controls less than 50% of the devices that people use
to work and share information. So enterprises need to source a whole
range of new applications, which is a huge change for the business.”
The growth of cloud computing is not only allowing enterprises to access key
processes as external services; it is also enabling them to incorporate users into
product development initiatives, to access original ideas and to make use of new
labor pools. In summary, the cloud is allowing enterprises to redefine innovation.
The cloud provides ubiquitous access for trusted collaborators, often through appli-
cation programming interfaces (APIs). This requires the development of software
platforms that have multiple access points for members of the extended partner
base/workforce (also known as the ecosystem), and a more open mindset by senior
executives.
This approach can be seen widely across a range of enterprises and industries,
including media (where Forbes, as an example, now uses 1,000 external contribu-
tors, this white paper’s co-author Haydn Shaughnessy among them, and only has
200 employees) and also in auto manufacturing, consumer electronics, retail and
heavy industries.
Bombardier’s Ertl explains:
“On APIs we have a first attempt in the EU to obtain funding for API
development. We are looking for one billion euro there. We are looking
for new ways of interacting with each other on an integration level,
open standards and then APIs.”
Mobile and cloud computing are accelerating a
number of paradigm shifts. For instance, the ability
to quickly create new service offerings by combining
cloud services into one new master service.
13. THE FLUID CORE 13
In consumer electronics too, category leader Philips is conscious of the need to
move in a similar direction, as outlined by innovation head Prado:
“If you are referring to opening up the APIs of our device software and
letting app developers create applications for our devices — we are
still not there. My other role within Philips is head of digital innovation
and I lead a program to digitize our portfolio, i.e., integrate sensors,
connectivity, analytics and leverage on smartphones and tablets to
enhance the product experience of our consumers. Strategically I
know that, taken as a reference for what happened with smartphones,
household appliances could benefit from having external app developer
ecosystems that target our device hardware to create choice of experi-
ences for our consumers.”
Many aspects of the SMAC StackTM
(i.e., social, mobile, analytics and cloud) are
actually a more profound externalization of processes, often core processes.9
One
expression of that externalization model is the rapidly developing notion of “crowd-
sourcing” (obtaining services, ideas or content by soliciting contributions from a
large group of people — especially an online community — rather than from tradi-
tional employees or suppliers.10
ABN AMRO has pioneered the use of the crowd in both ideation and funding through
SEEDs (the company’s crowd funding platform) and Dialogues (its crowdsourcing
platform). Notes Jaspar Roos, Chief Inspiration Officer:
“We are also outsourcing key processes and building suppliers into
partnerships. We are also looking into data APIs but that will take time.
We are talking with Kodak about opening up a picture API with maybe
a Pinterest type of development. The banks see all industries doing this
(API) so we will look into it.”
This is a view heavily endorsed by Box’s Levie:
“We do think about the crowd and our platform because the old Bill Joy
saying that there are more talented engineers outside your organiza-
tion has to be true. We have only 700 employees and there are millions
out there in companies that we want to sell to, so there is a huge focus
for us in working with the ecosystem, mostly via our APIs, and so they
can build distribution out.”
A platform/cloud/crowd/API approach affords phenomenal flexibility for enter-
prises to build partnerships, to access new labor pools and to increase the speed
of business, but for many, is going hand in glove with a more radical view of an
organization’s core purpose.
Many aspects of the SMAC Stack are actually a more
profound externalization of processes, often core
processes. One expression of that externalization model
is the rapidly developing notion of “crowdsourcing.”
14. 14 FUTURE OF WORK June 2013
Reassessing Core vs. Context
At the heart of the impact of these new approaches lies a reassessment of what is
“core” and what is “context” — what is a core competency and what can be handed
off to suppliers. The idea of core competency has been central to corporate strategy
for two decades. But that is now changing — to be replaced by the idea of a fluid-core
strategy and competency.
Box’s Levie sees core as a highly flexible concept:
“If you follow trends in different ecosystems you can see this concept
change. For example ... in 1995, if you had said that Apple would be
big in retail with the highest value per square foot no one would have
believed it, but now retail is an essential part of its distribution.”
Patrick Reynolds, who runs radio audience measurement company Triton Digital,
adds:
“The advance of technology brings incredible financial pressure to
define what core competency is. In the radio game, players have to
decide whether they are in distribution or in content creation or in
building audience engagement.
Some still want to build towers, some want to get down to the real
core, having programming at the heart of it. New Internet pure play
providers have real digital chops. Social, search, etcetera, is what they
do. Old-line terrestrial companies think content building is their core. In
Boston, WFNX [was] a seminal rock station that broke big bands. The
Boston Globe bought the talent, root and branch, and put it online and
called it Radio BDC. Very similar to Pandora. They wanted to increase
engagement with the audience who could now read the Globe and listen
to Radio BDC [Boston.com].”
What was core to a radio station — the tower, ownership of the distribution network,
DJs, even content — is increasingly becoming irrelevant. What becomes core is having
serious knowledge of how to connect with audiences through digital channels, how
to stimulate audiences to create their own playlists, and how to stimulate use and
sharing.
Just as with Harman, the assessment of what is the enterprise’s core competency is
changing. For Harman, it is no longer hardware, it is software. Along with software
goes service. Even more important, it’s no longer even the design of its products.
To secure success, companies are adopting radical adjacencies — like Apple moving
into retail, a competency that given its PC and consumer device design heritage it
has no right to dominate.
Harman illustrates that same point, but also shows how virtual products, assembled
with multiple partnerships, are an important part of this process. As Kreifeldt notes:
A platform/cloud/crowd/API approach affords
phenomenal flexibility for enterprises to build
partnerships, to access new labor pools
and to increase the speed of business.
15. THE FLUID CORE 15
“Certain Web services we just do externally. We use Amazon for
example. But it is also a capability thing. As we build our services we
need partnerships. I don’t know would our previous leadership have
embraced that. We typically wanted to develop everything ourselves.
Now, increasingly, we are building partnerships.
We partnered with Nuance for speech recognition for example. We didn’t
really have the wherewithal to make the investment to be excellent at
it so we sold a speech recognition unit to Nuance and now license from
them.”
And this has allowed Harman to build out a next-generation platform that is unlike
anything it has produced in the past. Kreifeldt continues:
“Our cloud acquisition, AHAA mobile, is a content aggregation service
for automotive. AHAA provides a comms API to the car so what’s
coming from say Spotify and other content services, AHAA provides
a common interface. Eventually we will have it so that you can self-
publish content to the platform — say for example podcasts — and the
driver can select.”
This virtual platform comes from a company that used to produce radios. By
abandoning a traditional view of core competency, engineering, Harman has rapidly
made itself more relevant to its market.
The mixture of platform, radical adjacency and a new, fluid vision of “core” is allowing
companies to redefine themselves — not in some transitional sense by replacing one
identity with another or one competency with another, but by allowing enterprises
to be flexible about what they define as core and therefore what products will win
in the marketplace.
The Hyper-importance of Creativity
and Responsibility
The most pressing demand generated by all of the change discussed and outlined in
this report is for a new generation of leadership and employees.
We have come a long way from the old days of truly hierarchical management. But
it is nonetheless likely that many leaders still underestimate the changes required
to make today’s highly externalized, hyper-innovative enterprise function well. The
first requirement is to be more hands-off. As AT&T’s Donovan puts it:
“Leaders need to create a vision and inspire without managing in a
‘traditional’ sense. If you try to manage it, it will not scale at speed.
You have to breathe life into it. You have to prioritize the framework,
the structure and initiative, and downgrade process and project
management.”
The mixture of platform, radical adjacency and
a new, fluid vision of “core” is allowing companies
to redefine themselves by allowing enterprises to be
flexible about what they define as core and therefore
what products will win in the marketplace.
16. 16 FUTURE OF WORK June 2013
This goes hand-in-hand with being more peer-like. And the reason for that is simple.
With today’s highly educated, creative workforce it is imperative that leaders see
themselves as first among equals. Box exemplifies this. As Levie notes:
“It’s no longer about going into a corner and deciding strategy. It’s about
many ideas that you become the curator of and which you help people
to execute. We want ideas shared across the organization. My role is to
enable and to be a force multiplier; absolutely more of a peer. I spend a
lot of my time as a peer and in projects contributing like everyone else.”
As Forbes’ Dvorkin comments:
“We are working in a space where we cannot afford to have clones
working for us — we need people who think differently, who challenge
us, are quirky. We need to figure out how to make them successful.”
The need to change management cultures and mores is widespread. As Chubb’s
Bidwell notes:
“…. leaders need to understand that high control can’t work. They need
to set the guidelines with their roles limited to setting the outcomes,
and articulating principles, and then find and allow people to execute
to that.”
But in an environment in which many enterprises have taken away “bench time,”
when employees used to swap ideas and innovate on the fly, there is also a challenge
for leaders to reinstate space to take risks and innovate. Here is how NSN’s Schlage
frames it:
“I try to create an environment where people can own what is an appre-
ciated behavior within the company — to participate in new things and
to have the freedom to do this.”
This is exemplified by the need for managers to take on more of a leadership role,
even in enterprises where middle management has long held discretionary roles.
Ericsson’s Karlsson captures it well when he says:
“In the area of management and leadership there is a strong sense that
leaders have to be less like managers and managers have to be more
like leaders. A manager delivers while a leader looks at the horizon. It is
difficult to incentivize the manager to get their eye on the horizon. We
want our managers to become leaders and focus on both things, also
on team work but not by the numbers but through leadership, empow-
erment, collaboration, focused on delivery but also on innovation and
ideas from employees.”
In an environment in which many enterprises
have taken away “bench time,” when employees
used to swap ideas and innovate on the fly, there
is also a challenge for leaders to reinstate
space to take risks and innovate.
17. The new character of good leadership that emerges from our interviews can be
summarized as:
• Being able to lead and innovate simultaneously, exhibiting the fluidity needed
in strategy through leadership behavior. In other words, taking responsibility for
bridging the execution-innovation gap.
• Being openly networked and transparently open in the networked economy, so
employees get the value of less hierarchical connectedness.
• Developing a peer-centric leadership style.
• Allowing employees to determine desired behaviors, especially in innovative
environments, and creating space for peers to interact on innovation.
• Focusing on empowerment rather than command and control, realizing that
to manage is to limit scale.
• Externalizing the core wherever it offers world-class participation.
Conclusion: Creating the Fluid Core
The fundamental nature of the changes we see all around us demands changes
in how people think and act, lead and manage. This extends to how enterprises
respond, react and adjust to a completely new environment.
While today’s successful companies are becoming “service first,” they are also
looking to integrate services with products, and to create devices — products with
services and content built in. In essence, their businesses have to integrate devices
and services because the service has to be delivered, improved or analyzed via
some object.
As the nature of this new objective becomes clearer, and as global competition
intensifies, companies are pursuing radical adjacencies in order to seek and execute
on opportunities beyond their core business. This introduces the concept of a fluid
core, which executives can adapt to suit circumstances and opportunities. This
is why, for example, Google is pushing into telephony and tablets (to sustain its
primary service businesses), or Apple builds out its apps store to complement its
iPhone and iPad devices. These leading companies are acting on operating platform
strategies, exploiting radical adjacencies and re-analyzing their views of their core
competencies.
To maximize flexibility, they are offloading processes to service providers in the
cloud, and also often offload what were formerly core competencies. They are rede-
fining what is core and what is not — redefining it in some cases as a flexible asset.
THE FLUID CORE 17
While today’s successful companies are becoming
“service first,” they are also looking to integrate
services with products, and to create devices —
products with services and content built in.
18. 18 FUTURE OF WORK June 2013
Footnotes
1
Daniel Bell, “The Coming of Post Industrial Society.” Basic Books, July, 1976.
2
Gartner Forecast Overview, Public Cloud Services Globally. “End-user spending on
public cloud services is expected to grow at a compound annual rate of 17.7% from
2011 through 2016.” February, 2013. Katherine Rushton, “The number of smart-
phones in circulation topped 1 billion in October 2012 and is expected to reach
2 billion by 2015.” The Daily Telegraph, October, 2012.
3
Prahalad, C.K. and Hamel, G., “The Core Competence of the Corporation.”
Harvard Business Review, 1990, (v. 68, no. 3) pp. 79–91.
4
Nicholas Vitalari and Haydn Shaughnessy, “The Elastic Enterprise.”
Telemachus Press, May, 2012.
5
Richard Florida, “The Rise of the Creative Class.” Basic Books, 2nd Edition,
June, 2012.
6
There is no established literature on the idea of a porous enterprise but the idea
has wide circulation. In general it means companies do not wall themselves off from
the outside world and instead collaborate with new partners, experts and even
crowds.
7
Meghan Casserly, “The Ten Skills That Will Get You Hired in 2013.” Forbes.com,
December 10, 2012.
8
Logicalis Infographic. CXOUnplugged.com, November, 2012.
9
Malcolm Frank,“Don’t Get SMACked: How Social, Mobile, Analytics and Cloud
Technologies are Reshaping the Enterprise,” Cognizant Technology Solutions,
November, 2012.
10
http:// www.merriam-webster.com/dictionary/crowdsourcing.
11
http://online.wsj.com/article/SB10001424053111903480904576512250915629460.
html.
As software “eats the world,”11
more and more enterprises are aiming to focus more
on technology-enabled services, which in turn means they are now operating to
software industry rules of rapid and accelerating innovation. But time does not stand
still, as Apple and Google reveal. The new game is software companies launching
into devices.
The changes discussed in this report are enabled in large part by the rapid devel-
opment of mobile and cloud technologies. The collision of these technologies, new
expectations by consumers, and transforming business models is forcing enterpris-
es to reconfigure themselves and the way they attract, retain and use all assets,
including the new labor ecosystem, the external ecosystem and new strategic
insights. All in all, it adds up to a new operating system that is powering success —
the fluid core.
19. About the Author
Haydn Shaughnessy is a 25-year veteran of the innovation and transformation
business as an advisor and writer. He has worked in technology management at
the EU, supervising an early project in broadband applications, as well as mobile.
He was previously a partner at the first social agency, The Conversation Group,
where he wrote the first social media playbooks for global corporations. His con-
tributions to Forbes.com attract six-figure audiences each month. He has worked
with many major corporations and has written for The Wall Street Journal, The
Times, Harvard Business Review and GigaOm, as well as produced TV for the BBC,
Channel 4 and RTE. He is a research fellow at the Center for Digital Transforma-
tion at UC Irvine, where he is also an advisory board member. He can be reached at
Haydn@cogenuity.com | LinkedIn: www.linkedin.com/in/haydn.
Cognizant’s Center for the Future of Work
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tive workforce that embodies the future of work. With over 50 delivery centers
worldwide and approximately 162,700 employees as of March 31, 2013, Cognizant
is a member of the NASDAQ-100, the S&P 500, the Forbes Global 2000, and
the Fortune 500, and is ranked among the top-performing and fastest-growing
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Cognizant.
THE FLUID CORE 19