I introduced the concept of a Cloud Management Platform (CMP) in my last article here on the IBA Group blog and closed by saying that it’s a complex process to choose a specific platform. However, that’s exactly the decision that many managers are exploring right now and it can be even more complex when you need to buy a cloud, but it is your service provider that will actually be using it.
This white paper from the IT research firm Neovise gives some excellent advice on this particular issue. The white paper introduces the need for CMPs, as I did in my last article, but then it lists some specific questions you need to ask when determining the best system to use:
1. Business Requirements:
• What customers do you plan to serve, and what are
their requirements? How well will the cloud platform serve them?
• How much additional work is required for installation/configuration? Integration? Adding missing features?
• How quickly will the cloud platform let you get to market and start generating revenue?
2. Product Requirements:
• Does the platform enable the right compute, network
and storage capabilities?
• Are there specific hardware requirements for the platform? Or can you choose hardware from any vendor? Can you leverage existing
• How extensible is the product? Does it support federation with other providers?
• Does the platform allow you to seamlessly integrate new cloud services with your existing hosting services?
3. Support Requirements:
• Will it require significant resources and expertise
to deploy, customize and operate the platform?
• What do you do if you need help deploying or troubleshooting the platform? Is there customer support? Or just community support? Both?
• Does the platform receive ongoing enhancements? Are new versions difficult or disruptive to install?
These are quite detailed questions and there are
different types of CMP as I outlined in my earlier article, but if you go into
these questions with a clear outline of your specific capabilities, resource,
timeline, and strategy then you can achieve a successful outcome. It’s
recommended to include this information on any RFI or RFP process when
selecting a supplier so you can work with a supplier that supports your
preferences on CMP in addition to just agreeing on a cloud strategy.
Where you have not already deployed a cloud or CMP
then it would be preferable to outline your preferences and needs right from
the RFI – this way a potential partner can advise on the best cloud to use and
the best tools to manage it.
In the early days of cloud adoption, this was all easier. A client would just make requests directly to their supplier if more capacity or storage is needed, but as IT infrastructure has become more complex, and usually involves a mix of cloud and on premises equipment, it is essential to make the right choices about the system you use to manage your cloud – and manage it in a way that works with the needs of your supplier.
21 to June 23 this year, the 16th IBA Group’s tourist rally took place 70 km
away from Minsk. Over 1,000 people got together to enjoy nature and sports. The
participants of the rally ranged in age from several months to their 70s. The
organizers of the event did their best to meet the needs of such a versatile
IBA Group’s tourist rally is an annual tradition for the IBA Group’s community. It is a time when IBA Group’s employees, their families, and friends gathered to celebrate team spirit, endurance, nature, and sports. It is more than just an annual celebration. It is a spotlight on what these values mean to each IBA Group’s employee.
expectations from the event were far from being optimistic as the weather forecast
promised heavy rains and windstorm. That was the first challenge to overcome
for most of the participants. They got through the heavy rain on the way to the
venue of the rally and were rewarded by fantastic weather on the days to
tourist rally has longstanding traditions that developed together with IBA
Group. What started as an 87-people event in 2005, grew into a massive 1,000+ participant
rally. This year, the organizers welcomed a new participating team Lemmingi that defied such veterans as Pertsy, Dynamit, Dobry Vecher, Belki, and
Smarch Cats. The bike biathlon was added to the list of competition
categories. Other team categories included obstacle racing, mud racing,
volleyball, badminton, rock climbing, draniki (potato pancakes) contest, and
some individual disciplines such as ropes course and darts.
evening, to warm up and to dry up the atmosphere, a culinary draniki
competition was held under the guidance of an experienced chef. All
participants and viewers\tasters enjoyed every minute and bite of the contest. The
Mammoth team won the first place.
ceremony of the tourist rally took place at 09.30 am on Saturday. At the
opening ceremony, Sergei Levteev, IBA Group Chairman, made a welcoming speech. According
to the tradition, Alexei Tereschuk, the captain of Smart Cats, the last year’s
winning team, opened the rally by raising the flag.
program was diverse and manifold. Each participant found an occupation to his
or her taste, be it an athlete, a fan, a guest or a child. The program of
workshops was varied. One could opt for an individual pottery class, take part
in a tea ceremony, master a new style of calligraphy, make a nesting house, or
compete in funny duo contests. The strongest could go up against Vyacheslav
Khoroneko, the six-time record holder of the English Guinness World Records,
and a repeated world champion and a record holder in free weight lifting.
Other activities enjoyed by the rally participants included a ride on a trolley, a walk on the rope course, a wall climbing, and a ride in a BRDM-2 military reconnaissance vehicle. Everyone received a charge of positive emotions during a Fun Starts relay race. Wellness lovers could indulge themselves in saunas, bathe in a nearby lake, and get a Hawaii-like suntan.
Saturday, all participants and guests enjoyed breakfast and lunch.
the day, the kids danced and played with animators, took rides on catamarans
and canoes, played in an inflatable castle, rode a merry-go-round, and watched
cartoons in the karaoke tent.
evening and throughout the night, the teams had wonderful bonfire parties
accompanied by shashlik and guitar songs.
Everyone could unwind at the disco and demonstrate their vocal abilities
in the karaoke tent. The Saturday night also hosted Bez Bileta, a well-known Belarusian group, and the DeTroit cover band. That was one of many
moments when members of competing teams celebrated the company’s spirit and
feeling of being a part of IBA Group’s global family was somehow complemented
by the atmosphere of solidarity inside each team. Most of the teams comprised
colleagues of the same department. The tour rally for them is another chance to
strengthen the team spirit and extend the relationships beyond the working
Each team had a motto, a flag, and a designated territory. The teams’ captains did their very best to win the contests and to feed the teams. Each member of the team was assigned a task, the teams‘ cooks used their creativity and experience to appeal to the taste of each team’s member.
As the tradition has it, there are no ex-employees at IBA. Many retired and ex-IBAers come to the rally to feel themselves a part of the IBA Group’s family. They are the tradition keepers of the rally. On the other hand, we saw many new faces this year who have brought enthusiasm and changes to the company’s life. Tradition and innovation, youth and experience is what makes us so similar and so unique.
teams competed in the multiple categories, including obstacle racing, mud
racing, water relay race, rowing slalom, volleyball, bike biathlon, rock
climbing, and badminton. Rope course, darts, and weights lifting were available
for individual competition.
The award ceremony
took place on Sunday morning. Winning teams, Lemmingi, Dynamite, and SmartCats
and prizewinners in individual categories received medals and prizes. Gennady
Makeev, HR Director, made a closing speech where he summed up the results of
the rally and thanked the organizers and the participants.
You can get a glimpse inside the 16th IBA tourist rally by visiting our Facebook and Instagram.
Most people working in IT today know about the cloud and how cloud-based systems can offer immediate access to storage or computing power easily. Many companies now use a cloud strategy to ensure they can ramp up and down on available systems or storage – it’s a common theme of discussion when planning an IT strategy.
But what is a Cloud Management Platform and in particular how can one be useful to service providers offering IT services to their clients?
Cloud Management Platform (CMP) is a term coined by the industry analyst Gartner. The analyst firm wanted a way to describe products or tools that help companies to optimize and manage their cloud infrastructure for cost, security, and operations. A good CMP strategy should allow users to maintain control over dynamic and scalable cloud environments.
So it is really just a control system that allows the user to maintain dynamic control over their cloud system. Instead of frantically calling a service provider and asking them to quickly scale up storage capacity in their contracted cloud, the customer should be able to use a CMP to just scale their cloud – it should be as easy as sliding a bar on a control panel.
The major CMPs on the market today will all offer these different aspects of cloud management:
These are the three main areas where the customer can manage their cloud and cover more specific areas such as budgeting, rightsizing the cloud, compliance and monitoring, and creating alerts and other analytics.
CMPs are still quite new tools and so there are still different types of tool available. Some are very focused on specific issues, such as controlling security risk or optimising costs. Some allow the option to manage multiple clouds, so if you are using both Microsoft Azure and Amazon AWS then you can manage both clouds from a single tool. Some CMPs even allow the tool to manage a cloud and systems you have on site simultaneously.
Clearly this is an emerging area. There are many new tools solving problems that have only recently become apparent. It was only a few years back that companies started taking cloud-based services seriously and it has become clear that it can be difficult to control the various aspects of a cloud-based system – such as cost control and security. In addition, if a service provider is delivering services on a cloud that is owned and managed by the client then the client needs an easy way to manage areas such as security in partnership with their service provider.
CMPs are still new and it is therefore difficult to advise on which one is perfect for each client, but there is a clear need to work on CMP selection with your service provider as any chosen solution must work for both client and service provider. I’ll explore this question next time here on the IBA Group blog.
I have written in the past about how impressed I was when I visited IBA Group in person. They don’t really shout about it, but their Robotic Process Automation (RPA) team has a level of expertise that I was not expecting to find when I visited Minsk last December. I keep recalling this when I see some of the analyst and media coverage of RPA online because there is still a strange mixture of anticipation and hype in most of the analysis.
HfS Research has been one of the main critics of the hype around RPA. They have consistently called on other analysts to provide realistic market projections and to stop using the ‘robots are taking over’ myths that have grown in frequency in the past two years. Their Horse For Sources blog in particular has been scathing when individual analysts have made RPA claims that just cannot be supported by evidence or case studies.
HfS has documented that they believe the ‘big 3’ RPA companies – Automation Anywhere, Blue Prism, and UiPath – are creating a baseline for the entire industry. It’s messy out there because there are loads of companies that are trying to get a piece of the RPA hype and yet not everyone can succeed – not least because each system needs experienced people who can implement and use it. I believe that WorkFusion should also be on this list as they are not only creating a baseline, but they are disrupting the marketing by even offering basic RPA services free.
On March 3rd the Horses For Sources blog said this: “However, beyond scripts and bots and dreams of digital workers scaling up rapidly to provide reams of value, most enterprises are fast coming to the realization that they need an actual process automation platform capability that ingests their data, visualizes it, machine learns it, contextualizes it and finally automates it. ”
The blog goes on to say: “The implication is that for many companies the dream is over. They thought that RPA would work easily and yet they have found that it’s actually quite complex to integrate into their main business processes. You cannot just point an RPA system at a business and say ‘automate that’ in the same way that computer software doesn’t write itself – someone needs to understand how to code so the computer understands what you need.”
Go and follow the link above if you want to read the conclusion to what they think will happen next, although the short story is that they believe that there may be a new phase of RPA led by AntWorks with a more integrated approach to automation. In a way, we are seeing the process of automation becoming more automated.
I think there are two conclusions that can be drawn from what we are seeing in the RPA market at present. First is that most implementations are started to coalesce around the three top system suppliers and that’s a good thing because the market cannot tolerate the fragmentation that dozens of small systems creates. Second, the RPA story is not over yet. It remains quite difficult to implement and anyone making this process easier could well lead the next chapter in the RPA story.
I wrote recently on this blog about the use of SAP to create Digital Twins, a digital representation of a real system so it can be more easily monitored and controlled. As I mentioned earlier, this has been a common practice in aviation for several years. Engine manufacturers will always maintain a digital version of every engine they sell and ensure that the digital version is updated in real-time using sensors on the real engine.
In aviation the advantage of doing this is obvious – it allows for more efficient maintenance and safety procedures when the digital engine allows engineers to monitor real engines remotely. But I believe that the launch of SAP’s Leonardo system last year will really start accelerating the use of Digital Twins as a common business strategy.
It is a combination of technologies and strategies that are creating this possibility, but the three important ones are:
1. The Internet of Things (IoT); as the real world fills with sensors and connectivity as standard for almost every electronic device we will reach a point where systems such as a Digital Twin are essential just to stay on top of what is connected and what information it is reporting. In the home, this may only be devices such as a Kindle, iPad, Echo, phone, lightbulbs, or heating thermostat, but in the industrial environment it can easily be more complex and difficult to control.
2. Artificial Intelligence (AI); with so much data being created constantly by sensors we will need to apply AI principles to the data just to make sense of it all. For example, if your home thermostat detects patterns in the way that you prefer your home to be heated then it should be able to anticipate what you want before you change the settings.
3. Machine Learning (ML); the ability to look at every action and outcome by every sensor inside a network will allow the system to learn about the ideal outcomes and then to suggest recommendations in future based on earlier learning.
It is really the IoT that is at the heart of this development. Imagine the complexity of a modern industrial facility – a large brewery or car factory for example. Across the entire property will be doors, windows, pumps, and various robots that all need to be coordinated. Most companies with these facilities will already have some sort of control mechanism, but the Digital Twin makes an assumption that every component (pump, door, assembly-line robot) has in-built sensors. By taking a feed from all of these sensors we can build a complete virtual mirror of the plant.
The IoT facilitates this by ensuring that the real-time sensor data is available, then the AI system goes to work on spotting potential problems or just process flows that are unusual and alerting workers to places they need to check.
I have seen this type of system deployed for an office management system where every light, heater, door, and window is modelled in the system. I believe that we will see the Digital Twin concept growing much faster as companies find that they can create enormous efficiencies by improving what they do and spotting problems before they happen.
As Forbes magazine recently suggested, it will soon be impossible to plan any kind of digital transformation for your business without creating a digital twin first. The processes will be simply too complex for any one manager to understand from start to end. Not only do you need to map out all the existing components, you need to apply AI to oversee how the entire system is working.
Without these deep insights into the way your business functions at present any transformation plans will be impossible. Digital Twins are not just for those obsessed with being able to manage their existing IoT infrastructure, they are becoming an essential tool for managers who want to see how the future of their business might look.
Artificial Intelligence (AI) has moved from science fiction into the enterprise in recent years. Many companies are using AI systems today to intelligently analyse large volumes of changing data and to notice or predict patterns. Typical business uses today include examples such as:
Rail operators predicting train delays before they happen because the AI system can extrapolate from small delays to predict the impact on the entire network.
Customer service agents being advised on how to help customers by systems that know the answer to every question a customer has asked in the past.
Netflix knows which movie you might want to watch because they know your past behaviour and how similar customers have also behaved.
AI really is all around us today, in the enterprise and as consumers of services. In the present environment it would now be unusual for any company to not be exploring how AI can improve their business.
But AI does have one a fundamental flaw, it is always limited to working on a very specific problem. This means that you can have a very complex system that knows everything that your customer may ask when they call for help or the system may understand how to play chess or Go, but these individual tasks are all that it can do. There is no inherent awareness of the environment around the system – although we use the term intelligence, it’s not really aware or sentient. An AI system that can play Go cannot plan the best route on a map.
This means that the system can only solve the problems it was designed for. Some might argue that this is a benefit, because it means that however good our AI systems get, they never move into the realm of awareness and all the problems that a conscious system might create.
A recent experiment by IBM has demonstrated that AI is developing rapidly though. They demonstrated how an AI system could be asked a random question and it would then have the ability to debate that subject. For example, in the video clip that I watched the system was asked if pre-school facilities should be subsidised by the government. It gave a response, arguing why subsidies are useful for 4 minutes.
This system has been pre-loaded with information on millions of subjects and objects. It’s stuffed full of encyclopedia content and research. But even with all this data it is quite an achievement to turn that into information and then a coherent argument.
Essentially this system is starting to show that perhaps an Artificial General Intelligence might be possible. It would need to be pre-loaded with an enormous amount of general data, and then would need a Machine Learning system to continue learning, but it is looking more feasible than even a year or two ago when Elon Musk started warning that we are heading for an ‘AI apocalypse’ because the machines will eventually have more intelligence than the humans.
I don’t think we will be seeing many business case studies featuring general intelligence just yet, but AI in the form we already know it will certainly be more important. AI is offering companies a chance to identify patterns and trends they could never see manually and this will be a strong source of competitive advantage in the next few years.
The IBA team was there at the event because their expertise in areas such as Cloud Computing and Robotic Process Automation is highly in demand from the CX companies – hopefully they managed to strike a few new partnerships!
As mentioned in the IBA article, I was speaking at the event about the future of the customer experience – how can you profile and understand the customer of the future?
What I tried to do with this talk was to initially frame expectations. It is easy for people to make wild predictions about how customers will behave in future, but what they often forget is that social and technological progress is not always gradual. Sometimes an invention or innovation can completely change the way that people behave.
A good way to think of this is by considering how railways changed society. Before railways people were forced to live within walking distance of their workplace. Railways created the freedom for people to travel to work and this in turn created the concept of the suburb.
We have seen a similar change in the past decade. Since the launch of the Apple iPhone in 2007 and the subsequent explosion in the use of social networks, the way that people communicate with each other has dramatically changed. This has led to a radical change in the way that people communicate with brands and an evolution in the way that the customer journey works – this is the journey from first hearing of a product to learning more and then eventually buying it.
That customer journey used to be quite simple and was focused on advertising or marketing to create awareness and then a sales process followed by customer support. Now we can see brands that are not building customer service contact centres, they are building customer experience hubs. They are using a mix of human and digital technologies and building an ongoing relationship with customers that can last for half a century or more.
What is so interesting about the present day business environment is that there is so much potential for dramatic change in so many ways. A retailer planning strategy in the era of my parents would only ever be planning new store locations and sales promotions – nothing in the future was dramatically different to the past.
Look at the retail environment today. Not only is online retail creating a new era of competition, but the way that town centres are featuring retail is changing. Other huge factors may also change how society interacts with business, such as climate change, geopolitics and the dramatic rise of China, the creation of social inequalities, and the preference to rent experiences rather than owning products.
You can click the link to read through my slides for some more of the ideas I presented at CXOutsourcers, but I think that what we will see more often today is emerging business models and services driven by the online economy and the desire of the customer for greater convenience. Go-Jek in Indonesia started out as a ride-hailing service with motorbikes – like Uber with two wheels. They expanded into offering services such as medicine or food delivery by leveraging their network of riders and eventually they created such a wide array of services that they introduced their own in-app payment system. They now process more payments than any major credit card brand… they are now a financial service brand and they started out offering rides on scooters.
How might this happen in your industry? Think about it, your competition in 2020 may not even exist today or they may be working in a completely different industry. Now that’s scary because it means that we are moving faster than ever to stay ahead of business trends, but we are never going to be going this slow again in future.
I visited IBA Group just a few months ago and one of the most interesting interactions I had during my visit was with Dmitry Konevtsev, the SAP Department Director. In my own experience, attitudes to Enterprise Resource Planning (ERP) systems such as SAP have changed dramatically in the past few years. Systems that were once essential and heavily invested in have proven to be failures for the business. The reputation of ERP has been in decline, but what are real companies doing with ERP today?
I asked Dmitry for his views on how businesses are approaching ERP today. He said: “The implementation of ERP has been a matter of many discussions since the early days. People often feel uncomfortable about any changes to their business and ERP can often overhaul the operation of the entire enterprise. Therefore, employees are opposed to ERP, but the key is to approach it as a business task, not an IT implementation.”
Dmitry explained a recent project that IBA has been involved in implementing. He said: “We initiated the introduction of the newest SAP Profitability and Performance Management 3.0 technology at a major mobile operator. The customer aimed to develop a self-service analytics system that provides a comprehensive insight into the overall company performance. The project is one of the first SAP Performance Management for Financial Services (FS-PER) implementations in the world. The analytical solution is complicated, as it is designed to integrate and harmonize numerous heterogeneous data sources and involves millions of measurement units.”
Dmitry explained how IBA has experience across many different industries, including oil and gas, railways, and telecommunications. ERP is an important tool across all these industries and although the media image of ERP installations has been largely negative in recent years, the reality is that many companies still require ERP to manage complex logistics and supply chains.
The idea of a digital twin is a concept that many industries are growing, especially as Internet of Things (IoT) sensors become more common. The digital twin has been common in the aerospace industry for many years – an engine manufacturer such as Rolls Royce will maintain a digital version of every engine they deliver and it is updated in real-time from the real engine using a stream of data from sensors, capturing a complete digital twin of the real engine.
Tools such as SAP can deliver this concept for other solutions. Dmitry showed me an example of a building management system. Now I am not an expert on managing buildings, but I can imagine the complexity of managing every single power socket, lightbulb, fire extinguisher, window, and door in a large building. It used to require pages of maps and floor layouts in addition to constant inspections. Now the entire building can be coded into a graphical interface so the user can see everything in 3D on screen and sensors all over the building feed data into the SAP model. A fire extinguisher can send an alert if it has been used and is now empty. A power socket causing a circuit to short out can be identified the moment there is a problem. The model I saw looked stunning because the graphics resembled a video game – maintaining a building like this would clearly be far more efficient than the old system of only fixing problems after they happen. With real-time monitoring and sensors, some problems can be predicted before they happen – and then prevented.
Dmitry explained: “Digital twins are a development of the IoT concept. Earlier, IoT was viewed as a technology of passive sensors that receive and send data. Today, it is a concept of smart sensors that analyze data and make decisions locally based on the data they process. In 2018, Gartner suggested that this is a technology stuck in the hype cycle, but we can see real clients asking for projects like this using SAP Leonardo.”
It is clear that ERP has evolved. The integration of IoT is allowing ERP to not only represent process flows, but also to predict and make changes. We are now in an age of intelligent ERP and the failed installations of the past can now stay in the past. Solutions like digital twins using SAP are demonstrating that there is a bright new future for companies ready to explore how ERP can help them to redefine and manage their business processes.
It’s always great to see when the new issue of Intelligent Sourcing arrives. It’s updated all the time online, but there is still something nice about seeing a collection of news bound together in a real magazine. I know that’s old fashioned, but a quarterly business journal is like a collection of thoughts from that time.
The issue is focused on innovation and I contributed a column that you can read if you click the later link to the magazine. Although my article was a focus on Customer Experience (CX) innovation, as I read it again I noticed that so many of the specific innovations I was documenting require technology expertise.
This is quite a change from the days when customer experience was called customer service and involved nothing more than a contact centre full of phones. Handling interactions between customers and brands today is highly complex and operates across a number of channels. Here are some of the key areas shaping CX innovation today as outlined in the Intelligent Sourcing feature:
Customer expectations and journey; interacting with customers today takes place 24/7 across many different channels (including social) and involves thinking about a 50-year ongoing relationship with the customer, not just managing a single phone call.
Technology; almost every emerging technology you can think of is being applied to the customer relationship. To list just a few – Artificial Intelligence, Machine Learning, Augmented Reality, Virtual Reality, Robotics, location awareness, cloud computing, the app store. All these technologies are being shaped and influenced by the way that brands are using them to interact with real customers.
Automation; Robotic Process Automation (RPA) is being extensively deployed as a tool to make customer service agents more efficient. The blend between digital service and human service is now one of the most important areas of research in this field.
Customer-centricity; new companies can design their entire service around what customers want in an age of smartphones. There is no need to copy how a bank or insurance company operates – especially if they designed their processes many years ago. This is having an enormous impact on traditional brands that are being challenged by brand new companies that can deliver services better.
CX and Business Process Outsourcing is often presented as an entirely separate type of business that is unconnected to what IT service companies are doing, but I believe that most of the innovation taking place in CX is being driven by IT. In fact, many of the IT experts are now becoming experts in areas such as RPA and that means they are rapidly becoming CX experts. The market for technology services is changing and CX innovation is creating many of these new opportunities.
How does Robotic Process Automation (RPA) really change the enterprise? Naturally, there is a need to seek out the expertise of companies (like IBA Group!) that have expertise in all the main software systems – because it pays to bring in experts when delivering a completely new system, but what about the wider changes that continue after the implementation?
I think this is an interesting question. RPA has the potential to fundamentally change the way that workflows are organised inside many companies and yet I rarely see this discussed in most of the coverage. In fact, most RPA media coverage can be summarised as focused on the size of the market and how automation can replace employees.
Of course, the market size is important, and the potential for automation to replace people is also important – and scary. Many people are getting worried by media headlines suggesting that the robots are about to take their jobs.
Most of this reporting is irresponsible and doesn’t reflect how companies are really exploring the use of automated systems such as RPA. The current debate around RPA reminds me of the lump of labour fallacy. This was suggested by some economists who believed that the amount of work in the economy is fixed, so if you restrict the hours that employees can work then you will reduce unemployment. Work isn’t so simple and the amount of labour is certainly not fixed.
Why is RPA becoming so popular? There are demonstrable benefits that can be attributed to RPA projects. Some of the clear business benefits that can deliver a Return on Investment (ROI) include:
Faster time to market: products and services can be delivered faster when a part of the value chain has been automated, allowing quicker delivery and an improved time to market for new ideas.
Productivity boost: more can be achieved with fewer resources, so the same team can boost what they were delivering before automation.
FTE requirements: if a significant part of your business processes can be automated then logically the number of team members required to process this information can be reduced.
These are the initial short-term benefits. Naturally, the immediate benefits of an automation project will be that the processes work faster, allowing the same team to be more productive, but there are some additional longer-term benefits that should be considered beyond the initial boost.
First is the ability to transform your business. Many industries are experiencing a wave of rapid change at present. Change really is the only constant for almost every traditional business model. Look at banks becoming apps, or news publishers searching for a revenue stream. Many traditional industries are finding that they need to change in order to survive in a very different business environment. If a significant part of your business can be automated then this facilitates innovation in the rest of your processes. It could even be argued that a significant digital transformation project will never succeed if you cannot automate the repetitive processes in your value chain.
Streamlining the processes you have yet to automate is another significant advantage – expanding the scope of automation beyond what you can initially achieve. Once you can see just how much of your business can be automated, there is a strong temptation to increase the processes your business manages using RPA. It’s important to create a period of stability once RPA is initially rolled out, but after that expansion should be encouraged.
Automating many of your systems allows governance checks to be applied automatically by the system and all processes and actions to be recorded. This can help with compliance and governance by removing the opportunity for manual errors and ensuring that a comprehensive audit trail exists for all automated actions.
It won’t be easy to see all the potential benefits from RPA immediately because there are just so many software vendors and no single control mechanism. We are still watching the growth of a market that will transform how companies operate far more than ERP or CRM ever did. But questions remain about how to link RPA into other systems within the enterprise – the Internet of Things for example. Instead of building these links differently for every organisation why are we not building RPA systems like USB cables – able to just plug in anywhere?
RPA will fundamentally change how enterprises are designed in the next decade, but some important decisions will need to be taken along the way. Not every RPA vendor will survive, just as Betamax video was killed off by the market acceptance of VHS. It’s going to get interesting out there as more companies rely on automation to compete.
I wrote recently on this blog about my surprise at how sophisticated the RPA solutions offered by IBA Group already are. As I mentioned, they are offering solutions that are far from the typical vapourware offered by some IT specialists – they already have genuine case studies using all the major RPA platforms.
Forrester makes some bold claims. Principal Analyst JP Gownder said: “Automation will be central to the next phase of digital transformation, driving new levels of customer value such as faster delivery of products, higher quality and dependability, deeper personalization, and greater convenience.”
That’s strong support for RPA in 2019, but Forrester also notes that we are now reaching a tipping point for automation. The Forrester argument suggests that we will now start expecting professional employees to be augmented by automation. This alters the workforce and drives companies to focus on customer value.
In fact, this is a common theme in talks that I have given on automation. I believe we will see this being a much more pervasive change in the way that professionals work and are hired for their jobs. At present we still see RPA as a function of the technology department, but soon we will see job adverts on LinkedIn for HR professionals, credit analysts, and accountants all asking that the applicants have relevant RPA coding experience – that’s going to be quite a change.
· Government adoption will soar; governments always need to do more than less so they will be quick adopters of RPA.
· Less focus on headcount reduction; the focus for RPA will shift from saving cash to improving employee engagement and how employees work.
· Death of BPO; controversially they also predict the end of Business Process Outsourcing because RPA tools allow internal teams to create their own efficiencies.
· RPA blended with AI; put them together and you can create a wave of new intelligence – they each help each other.
· Growth will be bigger than you expect; despite many analysts predicting strong growth for RPA, the team at UiPath says it will be bigger than you expect in 2019.
I think that both UiPath and Forrester have some interesting insights here and I tend to agree with them both. I believe we really are at a tipping point and the effect will go far beyond the technology team. The adoption of RPA will affect just about every professional employee and will demand that they start adopting new skills and methods.
This is why UiPath can speak with such confidence. If the analysts are still focused on the ability of RPA to redefine processes that are defined by the CIO then of course there will be growth, but if we start to see every single business process being redefined and automated then the current growth projections will be nowhere near large enough. Let’s see what 2019 has in store for us all!
One of the biggest changes in recent years in the IT market has been the use of platforms to deliver solutions. Software development may have moved on from the old waterfall style developments to agile delivery models, but many projects still required analysts to design solutions, developers to build them, and engineers to then deliver the product.
Consider just these three types of platform and the change becomes obvious:
1. Cloud; the ability to use a system remotely without local hardware or storage requirements and usually charged on a pay-as-you-use basis.
2. App Store; developing systems for Android or iOS and releasing them to the App Store allows software to be globally distributed instantly.
3. Social and mobile; the success of games such as Farmville or Mafia Wars has largely been because they were designed to be social – play is integrated into social networks such as Facebook so friends can actively engage with your game or compete with you.
These are all major changes to the way that software is designed and released. Not least, one of the biggest changes because of these platform adjustments is that business line heads – rather than the CIO – will make decisions on new IT systems. If the IT tools can be delivered without affecting the infrastructure of the client company then this is much more likely.
In particular, the cloud is changing how enterprise systems are delivered. Business users can pay for systems on a subscription basis without the need to plan for infrastructure and this is radically transforming how many companies see their use of IT and supportive software systems, such as ERP or CRM.
But even the cloud is undergoing rapid change. Many developers are now suggesting that there are some key trends to look for in the cloud market in 2019, such as:
1. Multicloud; AWS, Google, and Microsoft are the cloud giants and all have their strengths, but many companies are now exploring how to reduce their reliance on a single cloud supplier – for security, resilience, and to gain advantages from the strengths of each one.
2. Migration; it will be more common to migrate across different clouds to take advantage of deals or strengths from specific suppliers. New tools will make this much easier.
3. Governance; many companies still have fairly weak rules governing their cloud use and this will get stronger in 2019.
These are interesting points and worth noting. It has never been a good strategy to get locked into a single IT supplier and now we are seeing the same caution with cloud suppliers. 2019 will not only be a year of opportunity for various platforms, it will be a year where we start auditing how these platforms are being used.
From January 24 to January 25, IBA Group hosted the Rocket.Build Local 2019 – Minsk, Belarus hackathon. For the first time, the annual event took place at the IBA Group’s High-Tech Park campus. Rocket.Build is a Rocket Software’s annual hackathon. This event brings together engineers and programmers from around the world to work in teams to develop new products that help Rocket customers solve their business and technology challenges.
IBA has been cooperating with Rocket Software since 2016, the primary area of cooperation being mainframe products. Rocket develops products in diverse fields, including analytics, networks, data, storage, and enterprise software. The firm’s products are designed to run on mainframes, Linux/Unix/Windows, IBM i, cloud, and hybrid/virtualized systems.
IBA Group specialists who are involved in Rocket Software projects took part in the hackathon. All 90 participants were divided into teams, each team consisting of two to four members. The teams came up with 26 various ideas to solve production issues.
Having finished working on projects, the participants presented their ideas to the customer. In a strictly limited three-minute presentation, the teams had to convey the value of the proposed solution to the audience and the customer, and to demonstrate its functionality.
Anjali Arora, Chief Product Officer at Rocket Software, chose the winner of the main prize, the CPO Award. The winning team is expected to travel to Boston to participate in Rocket Build Global to be held from June 9 to June 13 at Rocket Global Headquarters. In addition, a peer voting was held at Rocket.Build Local 2019 and three teams were selected as winners.
The hackathon was a delightful event for IBA Group employees, giving them an opportunity to demonstrate their skills in a friendly and innovative atmosphere.
Cloud computing has transformed how the enterprise uses both storage and applications. Local storage is no longer a requirement with remote server farms immediately managing any requirements and applications using cloud resources to cope with heavy loads – such as online retailers on particularly busy shopping days. All these benefits of the cloud have become normalised, but could we be achieving more with cloud-based services?
A recent feature in ZDNet suggests that we can – digital transformation. Most enterprises view digital transformation through the lens of a change in business model, for example a retailer with a focus on in-store sales shifting their attention to apps. However, the ZDNet research shows that enterprises with a requirement to quickly change business model or offer an improved digital service could be more effectively exploring cloud-based services.
The research group IDC claims that spending on digital transformation in 2017 topped $1.3 trillion, so this is a market where a lot of enterprises are spending, but are they getting the best value and results from that investment?
The problem in many cases is that the technology makes the problem look simple. The cloud, Big Data, the Internet of Things (IoT) – on the surface all these technologies are easy to understand. Executives can sit in the boardroom and proclaim that we need a business strategy that builds on the IoT, yet it is one thing to declare that you want to use a certain type of technology and another to figure out how to make that an integral part of your business in a way that delights your customers.
This is where ZDNet believes that a focus on the cloud can pay dividends. Too many enterprises do not have an efficient or well-structured IT department. There are disparate apps spread across different storage facilities and no easy way to share and analyse data across all the business applications being used. Rather than focusing on technology-led solutions, such as what can we do with AI or the IoT, it makes more sense to fix this central core of the organisation by using cloud-based services. Fix the platform and your applications and data use will naturally transform.
Secure cloud access is a proven technology and it is simple to deploy if you hire a good partner with cloud expertise. The initial focus can be on storage, but you can build out from there to centrally manage business applications and data.
This approach can drive digital transformation in your business, not because it is a radical change to manage storage or apps in this way, but because once you organise your systems around this central core, with strong business application support and the ability to share data across systems, you will be able to quickly design new solutions that could only ever work in this environment.
Sometimes it is better to build the platform and let the solutions arrive through innovation, rather than trying to build the solution on day one. Once you have a platform in place that allows data sharing, then the ideas will flow and your teams will automatically start exploring digital transformation options that are driven by business needs – not just technology.
I recently visited IBA Group in Minsk and I had the pleasure to speak with Andrei Lepeyev, the director of software development at IBA Group. As someone who studied software engineering at university myself, I’m always fascinated by the way that platforms such as cloud computing and the app store have changed what it means to deliver software, so it was really great to catch up with Andrei.
You can hear our conversation on the CX Files podcast by clicking here or search your favourite audio podcast provider, such as iTunes, Spotify, SoundCloud, or Stitcher. Because we were focused on CX we talked about some of the technologies and systems that Andrei is working on that have a direct impact on the quality of CX for the clients of IBA Group.
I had initially asked Andrei about how Artificial Intelligence (AI) is being used to predict customer behaviour, but he explained to me that IBA has gone further and created a product called APPULSE that offers a complete Level 1 and 2 support service for mainframe computer systems.
Andrei said: “APPULSE not only detects the system and finds problems, it uses Machine Learning to learn about the solutions so in many cases it can create a self-healing mainframe system. Mainframes are still really important and unbeaten in the range of directions they are deployed. They are the most stable and virus-free systems, but their user-interface is not usually so good.”
Andrei was talking about the importance of keeping mainframes running because they are often overlooked by most customers, yet your bank will be relying on those systems to be running if they want to offer a 24/7 online banking platform. Ensuring that the system can heal itself before problems even happen is an enormous improvement in the way that a traditional IT support operation would run – fixing problems only after they have caused a problem. That’s always a disaster for customers who need service now.
He said: “First we think about the support level of each supplier. Can they provide education or trial systems? Can they add specific requests to the software? Can they give extra information to a company like ours that may be implementing the solution?” However Andrei also added an interesting point which is not often discussed in the industry – sometimes it is just which software system is seen first by the customer. He said: “It is also important to see how each of the companies is marketing their product to the client. Often we will be approached by a potential client who already has a pilot system – developed free by the software vendor – and it can be very hard to move them to another system even if we think it could be better.”
Andrei mentioned Machine Learning when describing the mainframe support system and I asked him about the popularity of this in 2019. Are more and more customers asking how to make their systems learn about customers and systems automatically?
Andrei said: “Yes, many more clients are asking about it. The main reason is that there has been an evolution of hardware. A simple mobile phone allows almost every standard machine learning platform to work. Ten years ago this was impossible. We are not talking about huge brands like Google and Amazon – even smaller companies can deploy a machine learning system today – there is a very low barrier to entry now.”
When I asked Andrei about his priorities for 2019 he said that he wanted everyone in the industry to remember that none of these technologies exist in a vacuum – they all need to interact with other technologies and business processes. He said: “When we are talking about AI we cannot talk about it alone, it should be the business application of AI. We can’t talk about RPA without Machine Learning. We can’t talk about Cloud Computing without talking about the solutions that are built and deployed on the cloud. I’m looking forward to some projects in 2019 that involve AI using RPA and are delivered on the cloud.”
My conversation with Andrei provided a great insight into how some of these technologies are really affecting the customer experience. A large amount of media coverage is just hype, but as Andrei demonstrated, there is a great deal of substance here. These technologies can deliver game-changing systems, but the companies using them to interact with their customers need to have great products and services – it is not the use of an RPA or AI platform alone that will help them to be more successful.