The Next Big Thing
Posts about next generation technologies and their effect on business.

2015 – a year of service innovation

crystalball.gifI believe that 2015 will be reflected on as a year of real service innovation. All those technological trends of the past decade are going to come to roost in the services of organizations in every industry. Establishments that view services as someone else’s problem will be left in the dust by those that realize the technologies of IoT, automation and analytics are causing change into the expectations of business value by the services that surround them. New services will spring into existence enabled by the flexibility of solutions like 3D printing, SDN, OpenStack and software defined anything (SDx). This post will try to justify that prediction, in a number of ways.

 

The US (NSF, White House) and EU governments recognize that there is a transformation taking place with services and are looking to see how governments can invest in service innovation. They know that the models and techniques used previously are not up to the task and are looking to shift those efforts to take advantage of the abundance of information technology capabilities that now exist and improve the understanding and capability in the services space.

 

The wearable devices we’ve seen to date have remained relatively stand-alone, providing a bit of interaction and information. As the services that consume that information advance, we’ll see a 3rd generation of wearable devices that interact with their environment, to provide a more proactive set of capabilities. This will be part of a shift in the Internet of Things that will stand up from its current crawling position to (at least) toddle along moving close to an Internet of Everything (and Anything), focusing on an enabled environment.

This will shift business resources away from process workers to a more automated environment consuming more and a different kind of analytics, moving to a human-augmented automation approach in many areas (rather than the other way around). Those interested should invest in the book, The Second Machine Age. These approaches will provide greater insight and transparency to customer actions as well as intent, enabling businesses to proactively provide services.

 

For the consumer the move to services that enable a digital life will continue and accelerate. Using the techniques described above, continuous monitoring and assistance will become a possibility. There will be concerns expressed about this monitoring moving from optional to required, in order to receive certain kinds of services. Similarly, the concerns about autonomous cars will shift from an ‘are they safe’ footing to ‘should they be compulsory’ discussion. Although we’ll not see mandatory automation/tracking… in 2015, the discussion and concerns will move from pockets of zealots into the mainstream, impacting everything from healthcare services to insurance…

 

No discussion of the future is complete without some mention of security and privacy. As enterprises move workloads to the cloud, enterprise-level security needs to follow. Most organizations do not have their processes at this level of maturity so security and privacy will bloom into an even larger service industry, since help will be needed. Although cloud computing helps address the issues of limited energy and resources, security and privacy protection services will become a critical concern in the forefront of business in 2015. The same will be true at the micro level as embedded devices leak more behavior information into the environment and the need for their protection becomes clearer.

 

The services for manufacturing and product production will undergo a shift in 2015 as well. Mass production will still be king, but personalized manufacturing will shake up planning in the global economy. According to Gartner, sales of 3D printers will double each year between 2015 and 2018, and exceed sales of more than 2 million. This will trickle down into transportation, logistics and industries other than manufacturing. We’ll see the products become platforms for further customization. Much like you’ve been able to have Coke or M&Ms personalized for a while now, it will be possible for a greater percentage of products (both physical and services). With the additional of sensors, greater connectivity and computing, these personalized platforms will further expand the momentum for intelligent services. These custom platforms will allow greater consumer engagement, with the producer as well as with the other consumers of the product.

 

In the predictive and analytic space the solutions will shift to enable greater flexibility in engineering the attention of service desk personnel as well as the people who call in. Next generation BPO/call centers will rely on greater levels of automation and less on low cost workers. That shift will not take place in 2015, but the products targeted at this shift will become more prevalent this year. These capabilities will move into other business processes as well, enabling them (HR, Finance…) to become systems of action for the enterprise, shifting to address business goals while at the same time providing greater insight and transparency about shifts in usage and consumption.  

 

The final area I wanted to mention was that the interfaces into these services will change too. We will see a reemergence of augmented reality. Virtual reality research received a great deal of attention in the 1980s, but didn't take off due to the expensive hardware, poor sensing, and display capabilities. All of these limits have now been largely addressed and the ubiquitous mobile device (we all carry) makes it a natural for our always on world. Juniper Research states that annual revenues from mobile augmented reality (AR) services and applications will reach $1.2 billion by 2015, moving beyond the demonstration devices by Google and others onto the edge of mainstream.

 

One aspect of this services shift that needs to be considered is the difference between the desired objectives and the unintended consequences that result. This will be a rapidly changing space, so an iterative approach that starts small and works up will be required. Joining organizations like ISSIP and moinitoring the success (and failures) of others will also be a good investment in 2015.

Gamification – required in the service leader toolbox?

gamification.pngI’ve gotten a number of questions about gamification lately. It seems that many more organizations are looking to gamify their internal apps in an attempt to engage employees, solve problems, increase collaboration and generally have a better understanding of progress on goals and initiatives. The use of goal-oriented, metrics-based, behavior modification is entering into the gap analysis phase of application portfolio assessments. It is an area where there are many possibilities, some you can try out today.

 

Gamification is not an approach where you’ll get the right answer the first time, or where there will be one standardized, enterprise approach. It is a technique where you develop a beachhead of understanding and expand through experimentation. Some organizations will stop early while others will use the approach throughout their business to develop a better understanding of its personnel, the roles they play and the progress toward organizational objectives. There is no one right answer.

 

Some of the areas where I’ve seen organizations start their efforts are stimulating the level of collaboration (rewarding individuals that help others) or innovation (through idea generation campaigns). Many HR and Healthcare BPO approaches are embedding gamification into their service in an attempt to improve people’s lives.

 

One issue that many encounter happens if you stimulate the desired behavior, but then don’t act upon the results. The ‘players’ usually figure it out quickly and this perception of inaction will taint future efforts -- make sure that people understand what’s happening.

There was an article last September in ComputerWorld titled: Case study: 3 heavyweights give gamification a go, it covers a number of situations organizations have encountered.

 

I personally feel that it is a skill set that any leader working in the services space will need. It can build upon the abundance of data and processing power that exists today and have impact at many levels in an organization. Within the ISSIP Service Futures SIG, we discuss the strategic impact of gamification about every 6 months.

Enterprise architecture now more than ever…

Reach.pngI saw this post by Tim DeGennaro about Enterprise Architecture in 2014 it made me think about a discussion I had with a large analyst firms Enterprise Architecture specialist. I mentioned to him that HP’s EAs are not focused on “selling” HP products. They are not part of central organization but instead tied directly to client organizations. Naturally, they have some interest in the product’s being used appropriately, but their main interest is in generating value for the company, within their business, meeting their goals.

 

During our discussion, we kept going back to this topic over and over. It was clear there was a contextual mismatch, since my view is that that there is no way an EA can push product off the back of the wagon and fulfill their role as a trusted advisor. His view was that HP is a product company and therefore the EA must sell product – even though I don’t think he agreed that perspective was best. It was just an assumption he made.

 

The EA needs to be focused on the long term value generation – and the analyst just couldn’t understand that this was our approach. HP Enterprise Services wants to have long-term strategic relationships with organizations (most of the EAs are in HP ES). We view that Enterprise Architecture is at the center of these relationships, whether it is based on infrastructure, applications maintenance and development or business process outsourcing, to truly generate strategic value an enterprise architecture is needed. Often HP personnel perform this function, sometimes the customer’s team carry the load - in any case, we see Enterprise Architecture as foundational to what we do.

 

Transformation journey.png

We look at enterprise transformation as a journey, starting with assessing the current state of IT and its alignment to and support for the business, along a path to a defined “new state”. A state based on the business goals of the organization, not on some product list.

 

One of the important functions of Enterprise Architecture is to communicate the destination as well as the steps and the governance needed along the way. This allows for fact-based expectations, discussions and actions -- reducing confusion and rework. Organizational change management and communication skills are crucial to make this happen.

 

Since the EA deliverables need to be business driven – enterprise architect should strive to always tie back initiatives to business direction and metrics. Sometimes we all can lose sight of why we are here and this traceability helps keep everyone grounded in the needs of the business.

 

Once I was working at a large food manufacturing organization interacting directly with their Chief Technology office. We’d get into deep, esoteric discussions and I’d ask the question “How does this make more cheese?” to focus us back on the business goals.

 

Even though it may seem simple, the connections between the enterprise architecture and business goals allow EA’s try and maintain a practical approach. The architectural work products and the architects themselves need to be used effectively to deliver solutions and not be ivory tower shelf ware.

There is more to BPO automation than just replacing people expense

Human Automation.pngAutomation is one of the ways that businesses can use the abundance of computing capabilities to maximize value. The Horses for Sources blog had a post about the automation of BPO efforts titled: Greetings from Robotistan, outsourcing’s cheapest new destination.

 

The post made the case for replacing people in processes with automation – automation in services is something I’ve mentioned many times before.

 

What the HfS post didn’t cover is the role that people can and must play even in a highly automated environment. Automation is good at handling situations that are fairly well understood. What agent techniques are not good at is knowing what to do when there is not sufficient information or the patterns identified are not well understood. This is a role where humans excel.

 

When performing automation it can be as important identifying what is unusual and how to bring attention to the situation. Human augmentation of automation is as important as the automation itself. Effectively bringing people into the situation to make decisions is an example of scarce resource optimization that is so important in a world of IT abundance. The people involved will have to be knowledge workers who are ready for a dynamic environment that addresses anomalies and be able to describe how their involvement can be replaced by automation in the future.

Are security concerns really an innovation driver?

security.pngI was looking at a Horses for Sources blog post titled: It’s a miracle we’re yet to see any BPO/ITO security disasters that focused on the effect of having the Chief Security Officer show up at an outsourcing meeting and it got me wondering why the security officer would be viewed as such an innovation barrier.

  

The constraints of security could actually provide the framework to focus innovation. There is no doubt that security is a business expectation. It should not be a choice between having security and having innovative solutions, it is about having both. For example a well-designed single sign-on solution improves the security as well as the ease of use. Standards like security allow organization to focus their creativity.

 

Sure the security requirements may be viewed as “onerous” but it takes effort for everyone to work together and develop common goals and reaching an understanding of that “third right answer” that no one could have come up with on their own.

 

The post points out quite effectively that security can’t be bolted on but must be built in. If there is anything we learned from the 1990s, it is that perimeter based security just doesn’t work. As outsourcing and cloud contracts are written, the security needs of the enterprise need to be thought out and documented – not ignored.

Search
Showing results for 
Search instead for 
Do you mean 
Follow Us
Featured
About the Author(s)
  • Steve Simske is an HP Fellow and Director in the Printing and Content Delivery Lab in Hewlett-Packard Labs, and is the Director and Chief Technologist for the HP Labs Security Printing and Imaging program.
Labels
The opinions expressed above are the personal opinions of the authors, not of HP. By using this site, you accept the Terms of Use and Rules of Participation.