“The business was good for us last year. Thank You for your hard work and keeping our customers happy. We were able to improve our business with repeat customers and get more revenue from existing accounts – a key strategy that we followed for last fiscal”, announced the CEO of a leading system integration (SI) company. The speech continued, “We have decided to share profits with all of you. Our People Head will be reaching out to you in next few days with the update.” The cheer filled the room. After all, room was full-pack with young, energetic sales representatives, software engineers and analysts filled with aspirations and ambitions.
CEO was happy with the achievements of the team; but, there was a thought which is bothering him. His executive head of strategy had shared with him on his insights about the changing business landscape and evolution of clients’ business model across geography. CEO knew that Enterprises which were once the source of Innovation are quickly reshaping themselves to ‘Costs Vs Value’ discussions globally and seeking more than services or product offerings from marketplace. This was, however, not the reason for worry.
The worries of CEO were deep-rooted in the effort that his team has put in last three years to create a niche positioning within the addressable market. They have traveled a path of Custom Projects to Solutions to Self-Hosted Solutions only to realize that “transformation” in their own business model is the need of the day. Not long ago, Products and Services were two different business models. Then what made him realize that his business too needs to be transform as his clients’? This need is been driven by Disruptive Trends happening in the Industry and Productization of Services. He knew that doing nothing is not an option.
After some time when cheers of celebration toned down; CEO walked towards the drawing board in the conference room. He picked up his black marker from the desk nearby and wrote, “Digital Transformation.” This exercise wasn’t new for him. In the past, with evolution of Technology trends and everlasting disruptions; he had worked successfully transforming businesses and had redefined so-called “established business models.”
Digital Transformation Services Road map
He further added the three things that he is considering way forward:
Include more “digital” products and services in our capabilities
Make better use of “digital” capabilities to improve the customer experience
Include better use of “digital” capabilities to improve internal operations.
CEO unveiled the Digital transformation approach for the organization stressing on formulating the Platform (PaaS) strategy followed by identifying the 3rd platform technologies to focus on, SaaS and IaaS Strategy and Organization alignment ( People, Process and Technology) .
He further stressed the need to work on the approach to transform the current Application development practices and Infrastructure management practices to work seamlessly with cloud era. He used this opportunity to lay down the approach for short, medium and long-term. On his drawing board he identified Key Activities and established “when and how” to build the integrated capabilities over upcoming period of 6-12-24-36 months.
On a side note for Geography Strategy, CEO, given his exposure with global market, chose to detail it further. He said, regionally, the Americas, EMEA, and Asia/Pacific have different priorities with respect to the digital services and the information is part of the marketing and sales strategy. In the Americas, digital projects are strongly focused on internal operations: improving the information architecture, effectiveness of operations, and capturing data. Customer experience is a hygiene expectation there. In EMEA, while improving processes are important, the focus is somewhat more on customers and the customer experience. In Asia/Pacific, there is greater focus on using digital-related projects to spread the usability and information about the products and services. Customer services are of high priority there as well.
CEO closed the meeting congratulating the audience again on the fruitful last year and reminded the challenging times ahead to shape in or cave out. ‘Early bird catches the worm’ as his closing remark were clear direction for the audience as they dispersed back to their respective desks!