Showing posts with label IBM Consulting. Show all posts
Showing posts with label IBM Consulting. Show all posts

Saturday, 29 June 2024

Applying generative AI to revolutionize telco network operations

Applying generative AI to revolutionize telco network operations

Generative AI is shaping the future of telecommunications network operations. The potential applications for enhancing network operations include predicting the values of key performance indicators (KPIs), forecasting traffic congestion, enabling the move to prescriptive analytics, providing design advisory services and acting as network operations center (NOC) assistants.

In addition to these capabilities, generative AI can revolutionize drive tests, optimize network resource allocation, automate fault detection, optimize truck rolls and enhance customer experience through personalized services. Operators and suppliers are already identifying and capitalizing on these opportunities.

Nevertheless, challenges persist in the speed of implementing generative AI-supported use cases, as well as avoiding siloed implementations that impede comprehensive scaling and hinder the optimization of return on investment.

In a previous blog, we presented the three-layered model for efficient network operations. The main challenges in the context of applying generative AI across these layers are: 

  • Data layer: Generative AI initiatives are data projects at their core, with inadequate data comprehension being one of the primary complexities. In telco, network data is often vendor-specific, which makes it hard to understand and consume efficiently. It is also scattered across multiple operational support system (OSS) tools, complicating efforts to obtain a unified view of the network. 
  • Analytics layer: Foundation models have different capabilities and applications for different use cases. The perfect foundation model does not exist because a single model cannot uniformly address identical use cases across different operators. This complexity arises from the diverse requirements and unique challenges that each network presents, including variations in network architecture, operational priorities and data landscapes. This layer hosts a variety of analytics, including traditional AI and machine learning models, large language models and highly customized foundation models tailored for the operator. 
  • Automation layer: Foundation models excel at tasks such as summarization, regression and classification, but they are not stand-alone solutions for optimization. While foundation models can suggest various strategies to proactively address predicted issues, they cannot identify the absolute best strategy. To evaluate the correctness and impact of each strategy and to recommend the optimal one, we require advanced simulation frameworks. Foundation models can support this process but cannot replace it. 

Essential generative AI considerations across the 3 layers 


Instead of providing an exhaustive list of use cases or detailed framework specifics, we will highlight key principles and strategies. These focus on effectively integrating generative AI into telco network operations across the three layers, as illustrated in Figure 1.

Applying generative AI to revolutionize telco network operations
Figure 1 -Generative AI in three-layered model for future network operations 

We aim to emphasize the importance of robust data management, tailored analytics and advanced automation techniques that collectively enhance network operations, performance and reliability. 

1. Data layer: optimizing telco network data using generative AI 


Understanding network data is the starting point for any generative AI solution in telco. However, each vendor in the telecom environment has unique counters, with specific names and value ranges, which makes it difficult to understand data. Moreover, the telco landscape often features multiple vendors, adding to the complexity. Gaining expertise in these vendor-specific details requires specialized knowledge, which is not always readily available. Without a clear understanding of the data they possess, telecom companies cannot effectively build and deploy generative AI use cases. 

We have seen that retrieval-augmented generation (RAG)-based architectures can be highly effective in addressing this challenge. Based on our experience from proof-of-concept (PoC) projects with clients, here are the best ways to leverage generative AI in the data layer: 

  • Understanding vendor data: Generative AI can process extensive vendor documentation to extract critical information about individual parameters. Engineers can interact with the AI using natural language queries, receiving instant, precise responses. This eliminates the need to manually browse through complex and voluminous vendor documentation, saving significant time and effort. 
  • Building knowledge graphs: Generative AI can automatically build comprehensive knowledge graphs by understanding the intricate data models of different vendors. These knowledge graphs represent data entities and their relationships, providing a structured and interconnected view of the vendor ecosystem. This aids in better data integration and utilization in the upper layers. 
  • Data model translation: With an in-depth understanding of different vendors’ data models, generative AI can translate data from one vendor’s model to another. This capability is crucial for telecom companies that need to harmonize data across diverse systems and vendors, ensuring consistency and compatibility. 

Automating the understanding of vendor-specific data, generating metadata, constructing detailed knowledge graphs and facilitating seamless data model translation are key processes. Together, these processes, supported by a data layer with RAG-based architecture, enables telecom companies harness the full potential of their data. 

2. Analytics layer: harnessing diverse models for network insights 


On a high level, we can split the use cases of network analytics into two categories: use cases that revolve around understanding the past and current network state and use cases that predict future network state. 

For the first category, which involves advanced data correlations and creating insights about the past and current network state, operators can leverage large language models (LLMs) such as Granite™, Llama, GPT, Mistral and others. Although the training of these LLMs did not particularly include structured operator data, we can effectively use them in combination with multi-shot prompting. This approach helps in bringing additional knowledge and context to operator data interpretation. 

For the second category, which focuses on predicting the future network state, such as anticipating network failures and forecasting traffic loads, operators cannot rely on generic LLMs. This is because these models lack the necessary training to work with network-specific structured and semi-structured data. Instead, operators need foundation models specifically tailored to their unique data and operational characteristics. To accurately forecast future network behavior, we must train these models on the specific patterns and trends unique to the operator, such as historical performance data, incident reports and configuration changes. 

To implement specialized foundation models, network operators should collaborate closely with AI technology providers. Establishing a continuous feedback loop is essential, wherein you regularly monitor model performance and use the data to iteratively improve the model. Additionally, hybrid approaches that combine multiple models, each specializing in different aspects of network analytics, can enhance overall performance and reliability. Finally, incorporating human expertise to validate and fine-tune the model’s outputs can further improve accuracy and build trust in the system. 

3. Automation layer: integrating generative AI and network simulations for optimal solutions 


This layer is responsible for determining and enforcing optimal actions based on insights from the analytics layer, such as future network state predictions, as well as network operational instructions or intents from the operations team. 

There is a common misconception that generative AI handles optimization tasks and can determine the optimal response to predicted network states. However, for use cases of optimal action determination, the automation layer must integrate network simulation tools. This integration enables detailed simulations of all potential optimization actions using a digital network twin (a virtual replica of the network). These simulations create a controlled environment for testing different scenarios without affecting the live network.

By leveraging these simulations, operators can compare and analyze outcomes to identify the actions that best meet optimization goals. It is worth highlighting that simulations often leverage specialized foundation models from the analytics layer, like masked language models. These models allow manipulating parameters and evaluating their impact on specific masked parameters within the network context. 

The automation layer leverages another set of use cases for generative AI, namely the automated generation of scripts for action execution. These actions, triggered by network insights or human-provided intents, require tailored scripts to update network elements accordingly. Traditionally, this process has been manual within telcos, but with advancements in generative AI, there’s potential for automatic script generation. Architectures with generic LLMs augmented with retrieval-augmented generation (RAG) show good performance in this context, provided operators ensure access to vendor documentation and suitable methods of procedure (MOP). 

Generative AI plays a significant role in future telco operations, from predicting KPIs to responding to network insights and user intents. However, addressing challenges such as efficient data comprehension, specialized predictive analytics and automated network optimization is crucial. IBM has hands-on experience in each of these areas, offering solutions for efficient data integration, specialized foundation models and automated network optimization tools.

Source: ibm.com

Thursday, 16 May 2024

A clear path to value: Overcome challenges on your FinOps journey

A clear path to value: Overcome challenges on your FinOps journey

In recent years, cloud adoption services have accelerated, with companies increasingly moving from traditional on-premises hosting to public cloud solutions. However, the rise of hybrid and multi-cloud patterns has led to challenges in optimizing value and controlling cloud expenditure, resulting in a shift from capital to operational expenses.

According to a Gartner report, cloud operational expenses are expected to surpass traditional IT spending, reflecting the ongoing transformation in expenditure patterns by 2025. FinOps is an evolving cloud financial management discipline and cultural practice that aims to maximize business value in hybrid and multi-cloud environments. But without a thorough understanding, adopting FinOps can be challenging. To maximize benefits and realize the potential of FinOps, organizations must forge a clear path and avoid common mistakes.

Enhanced capabilities to drive growth 


FinOps is closely intertwined with DevOps and can represent a radical transformation for many organizations. It necessitates a revised approach to cost and value management, challenging organizations to move beyond their comfort zones and embrace continuous innovation. To achieve this, development teams, product owners, finance, and commercial departments must come together to rethink and reimagine how they collaborate and operate. This collective effort is essential for fostering a culture of innovation and driving meaningful change throughout the organization. 

FinOps enables your organization to control costs and enhance consistency by managing average compute costs per hour, reducing licensing fees, decreasing total ownership costs, and tracking idle instances. It also drives improved outcomes and performance through enhanced visibility and planning, which includes comparing actual spending against forecasts, ensuring that architecture aligns with business and technological objectives, and increasing automation.

These improvements lead to faster decision-making, quicker demand forecasting, and more efficient “go” or “no-go” decision processes for business cases. Also, FinOps helps align business and IT goals, fostering an environment where enterprise goals are interconnected, and business cases are developed with clear, quantifiable benefits. This alignment ensures that both existing and new capabilities are enhanced, supporting strategic growth and innovation. 

Challenges and common mistakes when adopting FinOps


Organizations should develop a phased approach over time instead of attempting to implement everything from day one. Having the right people, processes, and technology in place is essential for validating changes and understanding their impact on the consumption model and usability. 

It’s crucial to lay out a clear journey path by defining the current state, establishing the future state, and devising a transition plan from the current to the future state with a clear execution strategy. To ensure repeatability across different organizations or business units within your organization, it’s essential to establish well-defined design principles and maintain consistency in adoption. Monitoring key performance indicators (KPIs) is essential to track progress effectively.

Many organizations are already considering FinOps approaches today, although often not in the most cost-effective manner. Rather than addressing root causes, they apply temporary fixes that result in ongoing challenges. These temporary fixes include: 

  • Periodic Reviews: IT teams convene periodically to address performance issues stemming from sizing or overspending, often in response to complaints from finance teams. However, this reactive approach perpetuates firefighting rather than proactive self-optimization. 
  • Architecture Patterns: Regular updates to architectural patterns based on new features and native services from hyperscalers may inadvertently introduce complexity without clear metrics for success. 
  • External SMEs: Bringing in external subject matter experts for reviews incurs significant costs and requires effort to bring them up to speed. Relying on this approach contributes to ongoing expenses without sustainable improvements. 

To avoid these pitfalls, it’s crucial to establish well-defined KPIs, benchmarking, and processes for real-time insights and measurable outcomes. 

While some organizations assign FinOps responsibility to a centralized team for monitoring spending and selecting cloud services. This approach can create silos and hinder visibility into planned changes, leading to dissatisfaction and downstream impacts on service delivery. Federating FinOps activities across the organization ensures broader participation and diverse skills, promoting collaboration and avoiding silos. 

The next steps in your FinOps journey


Regardless of where you are in your cloud journey, it is never too late to adopt best practices to make your cloud consumption more predictable. IBM Consulting®, along with Apptio as a product, can help you adopt the right architectural patterns for your unique journey.

Source: ibm.com

Friday, 10 May 2024

Build the foundation for SAP ERP modernization

Build the foundation for SAP ERP modernization

Successful SAP ERP modernization programs begin with clear organizational alignment on wanted outcomes and expected business value, end-to-end scope and roadmap. This alignment is critical to enterprises that run their core operations on SAP ECC for years. It helps them determine where to start their modernization initiatives and how to prioritize, organize and plan to see the value of this investment.

To build this strategic plan, enterprises need a fact base that enables them to move forward with critical SAP S/4HANA-enabled transformation decisions across people, process, enterprise architecture and next-gen technology. 

With hundreds of successful implementations of S/4HANA programs that involved both SAP ERP applications and infrastructure modernization, IBM® has a well-defined approach that is called Rapid Discovery. This approach helps determine the what, why and how for SAP ERP modernization and is infrastructure agnostic. Whether you are running SAP ERP on AIX, IBM i, Linux® or Windows, the approach remains the same. IBM’s team of cross-functional experts uses innovative tools and frameworks to build a transformative foundation composed of six essential ingredients: 

  1. Enterprise Capability Model—Agreement on the business process hierarchy that defines the scope of the ERP implementation while also defining business requirements in the to-be business processes 
  2. Governance Model—Clear structure, framework and operating model for program oversight and implementation including key roles, responsibilities and decision authority 
  3. Business Value—Financial case for change in transformation that quantifies the tangible benefits of the program and compares them to the costs of implementation 
  4. Implementation Roadmap—Clear articulation of key architectural decisions, scope of services, data strategy and implementation roadmap for transformation 
  5. Executive Alignment—Alignment of executives across the business on the purpose, priorities, path forward, responsibilities and business benefits of transformation 
  6. Sustainability Framework—Alignment of sustainable goals into the overall ERP strategy to allow for single source of truth data access for regulatory requirements 

As part of Rapid Discovery, we also help clients work through issues that are related to the following enablers: 

  • Modern Enterprise Architecture—Design the future-state enterprise architecture, including strategic direction for application rationalization and RISE or non-RISE cloud strategy. 
  • Data and Analytics—Determine the current-state realities of data readiness and develop an optimized data and analytics strategy to support and utilize the move to SAP S/4HANA. 
  • Security and Controls—Define the security and controls architecture after reviewing the current maturity levels. 
  • Change management—Uncover and understand the organizational change management opportunities and impacts related to ERP transformation and develop a high-level approach to unlock user adoption and value realization.

This well-defined discovery process for SAP ERP modernization helps you assess your current SAP ERP landscape, define your to-be state and align on business case, operating model and a modern enterprise architecture. If you would like to learn more, join us for the webinar, “Build the foundation for SAP ERP modernization with rapid discovery assessment” where we take a detailed analysis of this process. 

Source: ibm.com

Tuesday, 19 March 2024

How IBM helps clients accelerate app modernization and control costs

How IBM helps clients accelerate app modernization and control costs

A large US-based healthcare company recently engaged with IBM to accelerate their cloud adoption with consistent and predictable outcomes. This collaboration enhanced their confidence to navigate app modernization across various applications and landing zones for both hybrid cloud and platform-native modernization.

As a healthcare company, this client had an obligation to provide safe, reliable, time-sensitive, high-quality services to its customers. Ultimately, they needed best-in-class application modernization tooling to help deliver on that obligation.

When a client is not able to properly visualize all applications and their underlying dependencies properly, they risk experiencing diminished reliability. Managing large internal and vendor teams to maintain multiple applications can be extremely difficult. To accelerate the hybrid cloud journey and control costs, it is critical to prioritize specific execution and transformation steps. 

How IBM helped improve the app modernization strategy


IBM Consulting® worked with the client’s cloud team and technical experts to deploy IBM Consulting Cloud Accelerator, which helped them understand the business logic surrounding their many applications. The solutions deployed included IBM® Application Discovery and Delivery Intelligence (ADDI), Cloud Transformation Insights (CTI), Analysis and Renovation Catalyst (ARC), Mainframe Application Modernizer (MAM) and Candidate Microservice Advisor (CMA).

IBM Consulting Cloud Accelerator understands complex program interactions in the current state of applications and microservices and can perform a what-if analysis of possible target states. It provides flexibility to choose what applications to move and when to move them based on business imperatives. It also helps to enable consistency and provides an accelerated modernization process end-to-end, from rapid discovery to solutioning and low-touch delivery.

Hybrid cloud migration with predictable outcomes and lower risk


The client was able to leverage a repository that provides a collaborative environment where multiple resources can search, modify and test the business rules by ingesting extracted business rules.

The IBM Consulting Cloud Accelerator also provided a detailed discovery of mainframe applications. These improvements are further underscored by the solution’s automated discovery of dead code or unreachable code and its ability to identify microservices in potential target states.

IBM Consulting Cloud Accelerator integrates and orchestrates a wide range of migration tools across IBM’s assets and products, as well as open source, and third-party tools. IBM Consulting Cloud Accelerator offers these capabilities:

  • Cloud transformation planning: Create a wave plan for migration and modernization workloads to the cloud.
  • Application and workload analysis: Collect infrastructure, app data and target state preferences. Produce cloud modernization paths that are optimized for time, cost and business benefits.
  • Migrate, modernize and build capabilities: Migrate workloads to the cloud or develop new applications natively on the cloud with our automation-first, journey-based approach with low-touch factory squads to deliver predictable outcomes.
  • Application and platform design: Create technical blueprints to help guide the implementation of consistent experiences across multiple cloud platforms and services.
  • Cloud services configuration: Automate the build-out and configuration of the cloud platform and the required cloud services for application workloads.
  • Day 2 operations: Drive consistency in cloud operations in a vendor agnostic manner, regardless of choices in cloud providers or landing zones.
  • Co-creation with IBM Garage™: Ideate, build, measure, iterate and scale solutions seamlessly with our end-to-end framework of design thinking, agile and DevOps practices. Achieve speed-to-value and adopt breakthrough technologies through the partnerships between your team and a diverse set of IBM technology, business and design experts.

IBM Consulting Cloud Accelerator enabled the healthcare company by deploying IBM hybrid-cloud capabilities across the client’s locations in a cost-effective manner. This allowed them to deliver higher-quality health outcomes to their customers. The company is now expanding to additional use cases as a result of their collaboration and innovation with the IBM Consulting team.

We believe that this engagement reflects the IBM values of client dedication and innovation that matters. It is our honor and privilege to provide value to our clients. IBM’s mission is to harness the power of data and hybrid cloud to drive real-time, predictive business insights that help clients make intelligent business decisions.

Source: ibm.com

Thursday, 25 January 2024

Procurement transformation: Why excellence matters

Procurement transformation: Why excellence matters

Procurement departments tend to be less visible to many stakeholders than sales, operations or even finance departments, but the impact they have on everything from the bottom line to product quality and service delivery shouldn’t be overlooked, which is why “procurement excellence” is a worthy pursuit.

Optimizing the procurement function can help deliver successful business outcomes, such as:

  • 12–20% in sourcing/demand management savings
  • 95% in improvement in compliance
  • 30% in incremental spend under management
  • 35% in reduction in contract value leakage

Transforming procurement


If your organization isn’t seeing these kinds of numbers, you might be a great candidate for transformation. The first step in the journey is to understand where you are, then use that information to determine where you want to be. It’s difficult sometimes to carve out the required time and thought process to establish the path to excellence, especially when you are focused on supporting the demands expected from others of procurement in a complex organization—every single day, that is.

That’s when partnering with procurement advisory services can help guide your team to procurement excellence, and help you deliver contributions to your enterprise’s goals: increase profitability, enhance service outcomes that can enable revenue growth, build customer satisfaction and ensuring suppliers deliver high-quality goods and services.

Assessing the current environment


One of the most important steps is to review the procurement department’s mission and current role within the organization. A solid assessment delves into the overall procurement lifecycle.

How is procurement linking stakeholders’ needs with the suppliers who can deliver the right capabilities? How are teams organized to align with key objectives?

How are they delivering in these areas:

  • Business planning, stakeholder liaison
  • Sourcing operations and analytics
  • Supplier performance management and compliance
  • Purchasing operations, including requisition processing, and other critical activities

High-performing organizations keep senior management informed on a regular basis to demonstrate the value of procurement to the business. Are you providing reporting, such as:

  • Preferred suppliers use percentage, by category and through an organizational viewSourcing effectiveness, planned events on schedule, savings achieved and a highlight of new suppliers from new major deals
  • Supplier performance metrics, including an executive summary, top 10 performers (and bottom performers, too)

Designing the future state


Attainable goals that build on the outcome of a procurement functional assessment can provide a roadmap to the future. A procurement advisor helps map across the gaps, typically resulting in a plan to advance category management, to develop a target operating model and surfacing other key opportunities where there is need to mobilize action.

At IBM, with operations in more than 170 countries involving over 13,000 suppliers, this wasn’t an easy task. Using Design Thinking, among other methodologies, the procurement team was able to define the vision for its future state and scale a solution that would work. Transforming procurement with intelligent workflows has enabled its procurement professionals to onboard suppliers 10 times faster and conduct pricing analysis in 10 minutes as compared with 2 days. AI, automation, blockchain and more enabled the transformation.

In fact, more procurement organizations are thinking about incorporating generative AI as part of their future plans to drive faster, more accurate decision-making, lower operating costs and improve resiliency.

The importance of the supplier ecosystem


Suppliers are one of the enterprise’s most valuable elements, so it’s important to partner well in this arena. Preferred supplier programs with well-negotiated contracts and prices, in sync with key business strategies, can enhance the delivery of goods and services—and, as important, customer satisfaction.

A thorough review of your entire supplier ecosystem, from vendor selection and source-to-pay to benchmarking pricing, can provide critical insights into the maturity of your ecosystem. Measuring compliance is a critical KPI for accountability. Are internal stakeholders following policies or going outside the system? Are suppliers meeting contract requirements, service levels and sustainability goals?

Driving stakeholder satisfaction


Many companies closely track their net promoter scores (NPS) for both positive and negative trends. Even in the B2B space, customers demand that transactions are intuitive, easily fulfilled and within corporate policy. In many ways, an optimized procurement function sets the stage for the high-quality, on-time delivery of goods and services that exceed expectations and can generate a 30–50% improvement in NPS.

In addition to external-facing stakeholders, it’s important for the procurement team to build and maintain internal relationships. This not only helps in requirements gathering, but also cultivates trust across the organization. A model that encourages close interaction with “category experts” (who often want to handle their own procurement) can help manage sourcing, contracting and measuring success, while maintaining visibility, accountability and spending discipline.

Procurement excellence works


In a recent Expert Insights report, “Smart procurement made smarter,” IBM Institute for Business Value found that an integrated operating model fosters procurement decisions based on real-time data through advanced analytics and predictive algorithms. Top-performing organizations have achieved 52% lower costs to order materials and services, as well as 60% lower costs to process accounts payable—and more than half significantly outperformed competitors in revenue growth and effectiveness over three years.

Source: ibm.com

Thursday, 21 December 2023

Business strategy examples

Business strategy examples

A successful business strategy dictates the allocation of resources and outlines how a company will achieve its strategic goals. Whether the organization is focused on developing new products or marketing an existing service to an under-served demographic, having a solid strategy will help an organization realize its long-term goals. Typically, a strategy will be informed by core business objectives and keep key performance indicators (KPIs) in mind. It’s also essential to understand an organization’s market position, as the following business strategy examples will show.

Types of business strategy


Over the last decades, researchers and business leaders have identified a handful of so-called “generic strategies” with broad application across the business landscape. These core business strategies are:

  • Broad cost leadership strategy
  • Broad differentiation strategy
  • Focused differentiation strategy
  • Focused cost leadership strategy

But there are dozens of variations on these core concepts, and an organization may choose to enact certain types of strategies at different points. Good business strategies are carefully considered, but that doesn’t mean they’re static. Successful leaders will routinely review a strategy’s key components and update their plans.

For instance, entrepreneurs looking to increase profits might pursue a cost-cutting strategy, while a business hoping to expand would consider a growth strategy. If customer churn or dissatisfaction is a particular issue, a customer retention strategy would be more appropriate.

For economically healthy companies attempting to move into new markets, a diversification strategy—involving new customers or product lines—or a partnership strategy—involving the acquisition of new companies—might be best.

Still, exploring the core generic strategies can provide insight into how some of the world’s most successful corporations have leveraged market research to create phenomenally profitable roadmaps. Some examples of business strategies that embody these foundational theories are explored below.

Broad cost leadership strategy example: Walmart


When Sam Walton, the founder of Walmart, started his retail career in the 1940s, he had a simple idea: To find less expensive suppliers than those who served his competition and pass those savings on to the customers in his variety stores. Where many business leaders might attempt to profit directly from such favorable margins, Walton decided to pursue an economy of scale, profiting by attracting more customers rather than charging those customers more. In the more than seven decades since, Walmart has become one of the most famous examples of cost leadership strategy, which undercuts competition by offering goods or services at the lowest possible price.

As the company grew, it was able to take advantage of its ubiquity to demand lower prices from suppliers and sell goods for even less over time. Many of these savings have then been passed on to customers shopping in the stores, resulting in progressively cheaper goods. The retailer’s advertisements underscore this fact, encouraging customers to “Save money. Live Better.”

By the early 2000s, Walmart’s cost leadership strategy had been so successful one-third of Americans were frequent Walmart customers, illustrating how winning the price game can lead to a massively successful bottom line. This has been crucial for the big-box retailer as it increasingly competes with e-commerce giants like Amazon.

Broad differentiation business strategy example: Starbucks


When Starbucks was founded as a small business in 1971, high-end coffee was a niche market in the United States. But Howard Schultz, the company’s founder, believed there was an opportunity to import Italian coffee culture and differentiate his business from competitors like Dunkin Donuts.

To gain a competitive advantage over stores offering cheap coffee in fast food-type settings, Schultz opened a series of cozy cafes that encouraged long visits. Though the items sold at Starbucks were more expensive than those of the competitors, they were highlighted in marketing campaigns as unique and superior quality goods. Starbucks also paid careful attention to its supply chain, ensuring is products were ethically sourced and offering specialty drinks that in some geographic locations could be difficult to find. The company’s early focus on talent management for service employees was a major differentiator, as well.

Over time Starbucks also focused heavily on personalization, encouraging customers to create favorite drinks. Later in the company’s tenure, the company introduced loyalty cards and other advantages for repeat customers to encourage customer retention.

Today, Starbucks stores are ubiquitous across the globe, and the company’s success has made it one of the prime examples of differentiation strategy that undercuts competition by providing a premium product that is significantly more desirable than existing goods.

Focused differentiation strategy example: REI


A focused differentiation strategy—unlike a broad differentiation strategy, which seeks to gain massive market share by providing a premium good—tailors its business plan to a select group of consumers. The outdoor outfitter REI has had significant success in focused differentiation through a series of business decisions and marketing strategies that underscore the values of its target demographic. In REI’s case, product differentiation relies on how the business communicates its core values and provides a unique customer experience.

REI frequently positions itself as an ethical and sustainable outdoor brand: As the company says, it prefers to put “purpose before profits.” Since its inception, the company has underscored initiatives like its co-op membership model and sustainability commitments as a way to distinguish itself from competitors catering to more general audiences. Recently, the brand engaged in a relatively risky marketing strategy that reflects its goal of capturing a specific group of loyal customers.

Starting in 2015, REI closed its stores on Black Friday, the most popular shopping day of the year, and encouraged employees to spend the day outdoors. The initiative was accompanied by a social media campaign to bolster the brand’s reach. REI might sell products at a higher cost than its competitors, and operate fewer than 200 stores, but its business model is based on the idea that a loyal group of customers will find its messages and products relevant enough to pay a premium for goods they could easily find somewhere else.

Focused cost leadership strategy example: Dollar General


Where Walmart’s cost leadership strategy relied on becoming ubiquitous and operating at massive scales, the discount chain Dollar General has captured price-conscious consumers in more specific markets. Rather than trying to enter an entirely new market, the company focused on providing low-cost goods to rural consumers. Its strategy has been to open small stores in areas where big-box stores might not be and offer a complementary pricing strategy that attracts budget-conscious consumers.

This strategy has allowed Dollar General to grow into a smart and efficient operation with a strong target market and relatively low overhead. Typically, the chain leases its stores and keeps them small and bare bones, saving money on real estate and extensive labor costs. Stores also typically stock a smaller number of products targeted to its specific customer base, cutting costs and allowing it precise control of its supply chain process. By spending less to open stores, allocating fewer resources to advertising, and targeting regional cost-conscious customers, the chain expanded successfully into a niche market.

The importance of agility in business strategy


As the previous effective business strategies illustrate, strategic planning is crucial for an organization working to achieve its business goals. A strong sense of where the company should be heading makes decision-making easier, and can guide operations across all business units, from the organization’s corporate-level strategy to its product development plans. At their most effective, business strategies can be utilized on a functional level, meaning every department from finance to human resources is guided by the business’ broader goals.

But not all successful businesses strategies will conform precisely to the four generic models outlined above. Often, a company will combine aspects of one or more strategies, or pivot as markets and technologies change. This has been particularly true for startups, which often serve a diverse set of stakeholders and may base their value proposition on new technologies. Still, as the above examples show, the optimization of a business’ operations relies on thinking critically about how its disparate parts can work together to achieve a singular goal.

Business strategy and IBM


Emerging technology and social forces are creating new customer experiences that result in changing expectations and demands and disrupt business models. IBM Consulting’s professional services for business help organizations navigate an increasingly dynamic, complex and competitive world by aligning transformation with business strategy to create competitive advantage and a clear focus on business impact.

Source: ibm.com

Wednesday, 8 November 2023

IBM and Microsoft work together to bring Maximo Application Suite onto Azure

IBM and Microsoft work together to bring Maximo Application Suite onto Azure

IBM and Microsoft believe in providing you with the power of choice so you can leverage the industry-leading asset management capabilities of Maximo Application Suite (MAS) deployed and operating on Azure. MAS is available from IBM or through the Microsoft Azure Marketplace. When you choose to invest in MAS, you’re not just purchasing a license; you’re embracing an opportunity to tailor your asset management journey precisely to your unique needs and aspirations.

The next step in this exciting journey? Choosing IBM Consulting Maximo ManagePlus and leverage IBM experts to manage your MAS application and Azure cloud infrastructure.

Maximo ManagePlus highlights 


IBM Consulting Maximo ManagePlus provides:

◉ Network planning, build, and operation

◉ IBM Consulting provisions, manages, and operates your MAS environment on Azure

Key Benefits of running Maximo Application Suite on the Microsoft Azure Platform


Flexibility

◉ Customize the MAS application per the needs of your enterprise.

◉ Execute a MAS upgrade schedule that continuously aligns with your enterprise’s needs..

Reduce Costs

◉ Eliminate the need to hire, train, and retain MAS application and management expertise. Why incur the cost and risk developing in-house MAS expertise when you can access expertise that supports numerous MAS clients?

◉ Eliminate the need to hire, train, and retain underlying Azure expertise. Why incur the cost and risk developing in-house cloud management expertise when you can leverage the expertise of a proven Azure managed services team that supports hundreds of clients operating thousands of hybrid cloud workloads?

◉ Eliminate the need to deploy and evolve the tooling of standard operating procedures (SOPs) required to exceed your enterprise MAS availability of SLO (service level objectives).

Improve agility and productivity

  • Provide your enterprise MAS users with  24×7 access to MAS application experts.
  • Increase resolution of L2/L3 service requests.
  • Increase your enterprise application support without expanding your application support team.
  • Run your enterprise MAS application  on underlying Azure infrastructure  to continuously monitor and patch. This ensures that your hybrid cloud operations team can focus on other Azure workloads.
  • Increase your Azure workload without expanding your cloud operations team.
  • Streamline time-consuming work.

Improve stability

  • Manage people, process and tools with a proven track record to exceed MAS application and infrastructure availability SLO. Can your enterprise afford unplanned asset management system downtime?
  • Improve the stability of SLOs & service level agreements (SLAs).

Improve cyber security

  • Subscribe to Maximo ManagePlus to improve application and infrastructure patching cadence and automate endpoint security configuration.

Improve margin

  • Subscribe to Maximo ManagePlus to yield savings that the client can invest in new projects that target reducing bottom-line expenses or create/evolve brand differentiating, revenue generating products and services.

Act now with Maximo Application Suite on Azure


IBM and Microsoft have come together to give you the option of deploying Maximo Application Suite on Azure. Subscribing to Maximo ManagePlus allows you to leapfrog tedious MAS installation and management. Contact us today to embark on a secure and future-proof path for your business.

Source: ibm.com

Thursday, 26 October 2023

IBM Consulting accelerates the future of FinOps collaboration with Apptio

IBM Consulting accelerates the future of FinOps collaboration with Apptio

Making the right technology investment decisions today is critical to building competitive advantage, fueling innovation and driving ROI. However, dispersed, unreliable data and time-consuming, error prone processes can lead to bloated budgets, ineffective planning and missed opportunities. Organizations need simplified, integrated and automated solutions to help optimize IT spend, improve operations and drive greater financial returns.

IBM Consulting is uniquely positioned to provide exceptional FinOps and TBM services, from strategic planning to operating model implementation and managed services. Supported by an all-encompassing end-to-end toolchain, IBM Consulting distinguishes itself as an industry leader in the marketplace. And by acquiring Apptio Inc. — a family of technology financial management, cloud financial management and enterprise agile planning software products that allow you to tie your tech investments to clear business value — IBM has empowered clients to unlock additional value through the seamless integration of Apptio and IBM.

IBM Consulting’s vision for the future of FinOps


We at IBM Consulting understand that it is hard to manage, predict and optimize cloud spending. By leveraging our internal knowledge and technology stack to address your cloud spending issues, you gain access to a comprehensive suite of tools and expertise that will enable your organization to make data-driven decisions, optimize costs and maximize the return on your cloud investments, all while driving innovation and growth for your business.

Navigating the complexity of today’s digital landscape


IBM Consulting’s FinOps and TBM solutions drive success through the four methods below:

  1. Cost Management: Controlling organizational costs and ensuring consistency.
  2. Value Optimization: Pursuing operational excellence by focusing on value rather than just cost.
  3. Organizational Transparency: Enhancing performance and driving better outcomes through leadership visibility and planning.
  4. Enterprise Agility: Aligning business and IT goals for increased adaptability and the development of new capabilities.

By leveraging IBM Consulting’s exceptional FinOps and TBM services, organizations can confidently navigate the complexities of today’s digital landscape and ensure long-term success in an increasingly competitive market.

Proven FinOps success: three case studies


The below three case studies showcase the success of IBM Consulting’s FinOps methods:

  1. An American manufacturer needed optimization for multi-cloud environment and DevOps activities. They began in the initial stages of the FinOps journey and maturity. The result of the implemented solution led to a FinOps practice enablement, integrated tooling with ServiceNow and simple leadership transparency. This led to a 16% cloud spend savings.
  2. An international airline needed a major end-to-end hyperscaler migration. They were also challenged by a fast-growing cloud ecosystem. The result of the implemented solutions was increased involvement in the FinOps practice. Increased multi-cloud management and tooling implementation. They also regained control of cloud activities industry compliance regulations. This led to a 22% increase in cloud spend savings.
  3. An international manufacturing company needed to improve asset management and cost allocation processes. They also reportedly had configuration challenges using multi-cloud technologies. The result of the implemented solutions was increased automation and improved budgeting. They also were able to simply cost reporting processes, and they were equipped with self-service implementation tooling. This led to a 25% increase in cloud spending savings.

Unlock your organization’s full potential with IBM Consulting


Embrace IBM’s FinOps and TBM services to overcome complex cloud challenges and unlock your organization’s full potential. Join the ranks of successful companies across industries who have optimized cloud investments, fueled innovation and driven growth.

Source: ibm.com

Saturday, 21 October 2023

Empowering farmers across the digital divide in Malawi with OpenHarvest

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The landlocked country of Malawi, located in southeastern Africa, is home to rich, arable land and a subtropical climate suitable for farming. As a result, over 80% of the population is employed in agriculture, and their livelihood revolves around alternating rainy and dry seasons that dictate how the year’s planting, growing and harvesting will unfold. But the once predictable seasons that smallholder farmers rely on are steadily shifting due to climate change.

When the rainy season arrives later than expected, many Malawian farmers still follow outdated agronomy practices that may lead them to plant too early or too late. Smallholder farmers lack access to hyperlocal weather forecasting and data that can help increase their crops’ chances of success, which jeopardizes the productivity and profitability of their season. Their challenges are compounded further by inherent and unavoidable farming risks, such as pests, contamination and natural disasters.

But with access to advanced technology, smart farming recommendations and specialized weather forecasts, farmers can build resilient and flexible operations that can help maximize their fields’ productive potential. That’s why IBM and global nonprofit Heifer International collaborated through the IBM Sustainability Accelerator to develop OpenHarvest—a digital tool to empower Malawi’s smallholder farmers through technology and a community ecosystem.

OpenHarvest sets out to close a digital divide


OpenHarvest is an open source platform with a mobile application that expands access to visual agricultural data, delivers specialized recommendations to farmers through AI and climate modeling, and enables better farm and field management.

The OpenHarvest model assigns each participating farmer’s field a set of latitude-longitude points that trigger comprehensive recommendations according to local weather and crop growth stages. Additionally, it monitors soil composition data (nitrogen, phosphorous and other nutrient levels) to identify how fertilizers should be applied.

From the beginning, Heifer International and IBM sought to develop a low-cost tool that maximizes output. A serverless architecture was ideal to keep infrastructure costs to a minimum under a “pay-per-use” model. IBM Cloud Code Engine allowed IBM developers to reduce time to deployment and focus on core objectives for Heifer International and the farms at the heart of the project—namely, being cost-effective, scalable and reliable.

Historically, Malawian farmers have relied on generalized weather information transmitted via radio to make operational decisions. Most farmers do not own smartphones, so Heifer International and IBM had to find an information-sharing method that could transmit precise crop and soil management recommendations generated by the OpenHarvest model, while remaining accessible and affordable to the end user. The solution was an SMS text message.

IBM Consulting also brought their sustainability experience to the pilot deployment of the OpenHarvest solution, joining a project ecosystem that included Heifer International’s community facilitators, volunteers from a local university in Malawi and smallholder farmers. It was crucial to support farmers not only with smart technology, but with a network of hands-on experts to help build trust and implement solutions.

Creating a profitable future


Climate change is not the only risk that smallholder farmers encounter in Malawi. Though the economy relies on agriculture, farmers have limited access to affordable credit or competitive markets. The cycle of poverty and lack of access to capital have historically pushed farmers in Malawi to purchase cheaper supplies (like recycled seed) which can result in low yields and subpar crops. For this reason, access to affordable capital can be an essential component to promote environmentally resilient practices and drive behavioral change.

IBM and Heifer International saw an opportunity to incentivize farmers to adopt best agricultural practices through a digital extension solution, while simultaneously facilitating connections to access finance and the formal market. Ultimately, the OpenHarvest platform is differentiated by this structure, which encourages farmers to embrace digital technology and retain new farming practices. This leads to long-term profitability and success in a changing environment and economy.

Expanding deployment for greater impact


OpenHarvest has now reached 200 users in the district of Mchinji in western Malawi. The application’s impact translates to about 1,000 direct beneficiaries, as Malawi has an average family size of about 5 people. The pilot deployment has now concluded with the sale of the year’s crops. Compared to previous years, most farmers saw increased yields, with some participants even doubling or tripling their output for the season.

As a next step, Heifer International plans to onboard around 300 additional farmers and expand the project into Kasungu, a district in the central region of Malawi. Looking ahead, the program is also evaluating other innovations, such as building out robust AI models and AI integrations based on a roadmap developed with IBM.

IBM and Heifer International are proud to help to change lives in Malawi and build sustainable farming solutions alongside farmers and their communities.

Source: ibm.com

Saturday, 19 August 2023

US Open heralds new era of fan engagement with watsonx and generative AI

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As the tournament’s official digital innovation partner, IBM has helped the US Open attract and engage viewers for more than three decades. Year after year, IBM Consulting works with the United States Tennis Association (USTA) to transform massive amounts of data into meaningful insight for tennis fans.


This year, the USTA is using watsonx, IBM’s new AI and data platform for business. Bringing together traditional machine learning and generative AI with a family of enterprise-grade, IBM-trained foundation models, watsonx allows the USTA to deliver fan-pleasing, AI-driven features much more quickly. With watsonx, users can collaborate to specialize and deploy models for a wide variety of use cases, or build their own—making massive AI scalability possible.

Watsonx powers AI-generated tennis commentary


This year the US Open is using the generative AI capabilities of watsonx to deliver audio commentary and text captions on video highlight reels of every men’s and women’s singles match. Fans can hear play-by-play narration at the start and end of each reel, and for key points within. The AI commentary feature will be available through the US Open app and the US Open website.

The process to create the commentary began by populating a data store on watsonx.data, which connects and governs trusted data from disparate sources (such as player rankings going into the match, head-to-head records, match details and statistics).

Next, the teams trained a foundation model using watsonx.ai, a powerful studio for training, validating, tuning and deploying generative AI models for business. The US Open’s model was trained on the unique language of tennis, incorporating a wide variety of contextual description (such as adjectives like brilliant, dominant or impressive) based on lengths of rallies, number of aces, first-serve percentages, relative rankings and other key stats.

Beyond helping enterprise clients embed AI in their daily workflows, watsonx helps them manage the entire AI lifecycle. That’s why the US Open will also use watsonx.governance to direct, manage and monitor its AI activities. It will help them operationalize and automate governance of their models to ensure responsible, transparent and explainable AI workflows, identify and mitigate bias and drift, capture and document model metadata and foster a collaborative environment.

Using watsonx to provide wide-ranging Match Insights


The US Open also relies on watsonx to provide Match Insights, an engaging variety of tennis statistics and predictions delivered through the US Open app and website.

For example, the IBM Power Index is a measure of momentum that melds performance and punditry. Structured historical data about every player is combined with an analysis of unstructured data (language and sentiment derived from millions of news articles about athletes in the tournament), using watsonx.data and watsonx.ai. As play progresses, a further 2.7 million data points are captured, drawn from every shot of every match. This creates a rich, up-to-the-minute data set on which to run predictive AI, project winners and identify keys to match success. The Power Index provides nuanced and timely predictions that spark lively engagement and debate.

When a tournament draw is released, pundits and fans often assess each player’s luck and path through the field: do they have a “good draw” or a “bad draw”? This year, IBM AI Draw Analysis helps them make more data-informed predictions by providing a statistical factor (a draw ranking) for each player in the men’s and women’s singles events. The analysis, derived from structured and unstructured data using watsonx, determines the level of advantage or disadvantage for each player and is updated throughout the day as the tournament progresses and players are eliminated. Every player has their draw ranked from 1 (most favorable) to 128 (most difficult). Fans can also click on individual matches to see a projected difficulty for that round.

Based on the AI Draw Analysis, users of the US Open app can explore a player’s road to the final and the difficulty of a player’s draw. The AI Draw Analysis feature shows potential matchups, informed by player data derived from the Power Index. For matches in progress, fans can also follow the live scores and stats provided by IBM SlamTracker.

A new era of scalable enterprise AI


Through their longstanding partnership, the IBM and the USTA collaborate to explore new ways to use automation and AI to deliver compelling fan experiences at the US Open. This year’s innovations demonstrate how watsonx can help organizations quickly and effectively implement both predictive and generative AI technologies. Through a collaborative, centrally governed environment that empowers non-technical users to make the most of their organization’s high-quality data and leverage foundation models trained on IBM-curated datasets, watsonx opens the door to true AI scalability for the enterprise.

Source: ibm.com

Monday, 14 August 2023

How generative AI correlates IT and business objectives to maximize business outcomes

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The effective use of IT resources to support business goals can be a game changer for any organization. But significant challenges delay the integration of transformative technology into business processes. Business owners often grapple with the frustrating reality of discovering IT issues impacting their operations only after customer complaints have arisen, leaving them with little opportunity to mitigate problems proactively. The lack of timely awareness hinders swift issue resolution and leads to a disconnect between the IT team’s efforts and the overall organizational business objectives. This disconnect is exacerbated further by the necessity of using multiple vendor support teams for problem resolution, siphoning time and resources away from core business functions.

The transformative potential of generative AI technology, along with strategic implementation and collaboration, can bridge the gap between IT and business objectives to drive continued success and ensure your organization delivers targeted business outcomes.

Breakthroughs in generative AI powered by large language models (LLMs) continue to inspire new solutions that help companies overcome these longstanding organizational challenges. These breakthroughs come hot on the heels of evolutionary leaps in IT and cloud technologies that enable enterprise businesses across industries to grow at scale, expand into new markets and find new pathways to success. Chief among these advancements is improvement in hybrid cloud technology, which makes it easier to deploy, manage and secure applications across multiple cloud environments. 

However, an extensive hybrid cloud estate can quickly become a complicated one that IT teams must spend significant time observing to ensure security and operationality. Many organizational IT networks host tens of thousands of applications operating within their hybrid cloud network. With this many applications, it becomes a significant challenge for IT operations to focus on achieving desired business outcomes. Every application creates a signal that IT professionals need to observe and understand quickly to determine application and network health, so they can react if something negatively impacts business performance. In a complex hybrid cloud IT landscape, it is difficult to correlate IT operations to business outcomes and take proactive actions.

The gap between IT observability and stakeholder communication


IT teams observe and make decisions by using various application performance monitoring tools to determine the health of the many applications running throughout their IT and hybrid cloud ecosystem. Business leaders don’t have easy access to this crucial information (or the technical training needed to understand it), which often leaves them in the dark about IT complications and how they may impact day-to-day work and business goals. This communication disparity can lead to confusion and inefficiency in addressing critical issues.

Effectively conveying the impact of technical issues to relevant business stakeholders is a big challenge. Organizations struggle with tailoring communication to different business personas, as various stakeholders have varying technical expertise.

IT operations must be sure that different integrated systems and platforms remain comprehensively observable, which requires considerable effort and coordination. Establishing the appropriate key performance indicators (KPIs) to measure the effectiveness of observability efforts can also be challenging, as relevant metrics must demonstrate the value and impact of observability on business operations (which isn’t always clear from an IT context). IT operations must show how observability directly contributes to business success and outcomes.

Unlocking the potential of generative AI for IT solutions and business impact


Standard observability tools allow IT experts to monitor and analyze IT alerts to determine their relevance to the business. However, this process often lacks alignment with business priorities, leading to inefficiencies and miscommunication. Communicating the business impact of IT issues to the right stakeholders is a complex task, as business leaders require contextualized information to make informed decisions.

Despite these challenges, the application of generative AI offers a promising solution to help organizations maximize business value while minimizing negative IT impacts. IT operations can put generative AI’s flexibility (in terms of multi-domain and broader functionality around content generation, summarization, code generation and entity extraction) to the task of observing the network to inform IT experts about possible issues and IT events. Meanwhile, large language models can provide detailed, contextual insights to articulate and specify IT impacts on different segments of the business.

Generative AI helps bridge the gap by conveying IT alert information to the right business stakeholders in language they can understand, with relevant details. It can deliver personalized information based on the business persona, enabling stakeholders to understand how the issue will impact them specifically.

The generative AI solution uses LLMs to inform business users about the impact on their processes, pointing out what specific aspect of their process is affected. It can provide information such as the point of impact, the implications for their division or profit center, and the overall effect on the organization.

For example, suppose an interface between Salesforce and SAP goes down. In that case, generative AI can provide details on how the IT event occurred (such as an interface or data load issue) and identify every downstream process that could affect business outcomes. IT ops can then inform stakeholders of the problem using AI-generated, domain-specific language to help leaders on the organization’s business side comprehend the event’s context and potential impacts. Additionally, generative AI can offer workarounds or alternative steps for business users to continue operations if their standard processes are affected. This level of contextualized information allows business leaders to continue their operations smoothly, even in the face of IT challenges.

Leveraging generative AI for business-driven decision making


Generative AI using LLMs provides faster and more precise analysis. This allows organizations to transform IT operations by prioritizing business-driven decision making, which leads to more effective and efficient operations. Using generative AI to validate and prioritize IT issues based on their relevance to the business and providing personalized communication of IT issues to appropriate stakeholders further empowers business leaders in making informed decisions.

While a fully integrated solution is still under development, generative AI using LLMs facilitates a more feasible way of notifying business leaders with contextual information and providing possible resolutions beyond basic event notifications. Organizations can begin incorporating various tools and systems to harness these benefits today. Integration efforts can focus on incorporating generative AI into existing technologies (such as SAP, CPI interfaces, Signavio and Salesforce) to achieve targeted outcomes. 

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These integrations allow for a holistic view and effective handling of IT alerts across different systems. IBM Consulting offers integrations across various tools, and we can ensure an enterprise-wide solution beyond specific proprietary platforms. 

Generative AI presents a transformative opportunity for organizations to maximize business value while minimizing negative IT impacts. Generative AI empowers organizations to make informed decisions and maintain smooth operations by aligning IT operations with business priorities, leveraging contextualized information and providing targeted workarounds.

Source: ibm.com

Saturday, 24 June 2023

How data, automation and AI are transforming Business Process Outsourcing into a competitive advantage

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When IBM Consulting’s Neeraj Manik spoke recently with a large pharmaceutical client about how to streamline and improve its front-office and back-office financial processes, he pointed to a web of interconnected business challenges the organization was facing: “too many invoices, too many suppliers, too much money being paid to suppliers,” as Manik put it.

Manik, VP and senior partner for IBM Consulting, outlined a massive opportunity to strategically redesign the client’s finance operations and payment processing by leveraging AI, data analytics, metrics and automation. Ultimately, modernizing these processes could save hundreds of millions of dollars, improve the employee experience and make the company more agile and competitive, he says. Manik sees leveraging this technology as a fundamental change from years past, when a company might outsource business processes to save as little as 30% without considering how outsourcing might affect organizational efficiencies, job accuracy, and employee and client experience.

Technologies such as AI and automation have transformed the outsourcing market and BPO services, giving companies the ability to create efficiencies while also modernizing processes rather than relying on offshore outsourcing.

Labor arbitrage, or outsourcing labor to the lowest-cost workforce, has been the central strategy associated with business process outsourcing (BPO) for years. It often meant sourcing customer support, information technology and other office operations from countries with lower costs of labor. Today, though, technologies such as AI and automation have transformed the outsourcing market and BPO services, giving companies the ability to create efficiencies while also modernizing processes rather than relying on offshore outsourcing.

Technology-enabled business process operations, the new BPO, can significantly create new value, improve data quality, free precious employee resources, and deliver higher customer satisfaction, but it requires a holistic approach. Tapping into AI and automation helps businesses streamline and strengthen their operations, while providing rich information that helps enterprises quickly predict and respond to trends and threats alike.

Not only do companies that work with IBM Consulting get IBM’s experience in process design and business strategy; they also get the added bonus of IBM’s deep partnerships with companies like ServiceNow, Celonis and Salesforce. Ultimately, instead of being forced to focus on a single solution or technology, organizations can partner with IBM Consulting to invest in broad, transformational business initiatives and outcomes.

The new BPO is no longer just about cutting operational costs. When done right, it can make a business flexible, smarter and able to quickly scale to meet shifting market conditions. “Modern BPO is a creator of growth, differentiation and competitive advantage,” Manik says.

Spotting hidden opportunities


At a time of rising costs, talent constraints and economic uncertainty, technologically enabled BPO offers an opportunity for companies to build intelligent workflows and leaner processes across finance, human resources, procurement, supply chain and customer operations. According to organizational consulting firm Korn Ferry, more than 85 million jobs could go unfilled by 2030 because there aren’t enough skilled workers to take them. The new BPO enables companies to quickly access more expert, technical, functional and industry specific talent than they can assemble in-house, driving new levels of efficiency across their business functions.

When working with clients, Manik looks for business opportunities that might be hidden under the surface: How can an organization’s BPO capabilities and methods enable a larger business transformation?

“What we can see is sometimes just the tip of the iceberg. There’s so much underneath this that can be unlocked in terms of business value.” Neeraj Manik

“It is our role as IBM Consulting to say, ‘how do we help you connect the dots?’” Manik says. “‘What we can see is sometimes just the tip of the iceberg. There’s so much underneath this that can be unlocked in terms of business value, that can improve how you go to market, how efficiently you run your supply chains, and how you can raise your margin profile.’”

For IBM Consulting, it’s not only about producing a list of recommendations for action, Manik says, but about following through and helping companies implement process automation and manage change, ensure adoption and get results.

The results can be apparent quickly. In the case of insurance giant Generali, for example, IBM Consulting rolled out two new AI assistants in France—one that helped upskill employees and another that interfaced directly with customers. Generali also became one of the first insurance companies to use AI to tackle the complex task of escheatment, or returning unclaimed assets and property. The new tools augmented the work of thousands of insurance agents, saving $1million in the first year of deployment, and increasing productivity by 5%. The program’s success in France led Generali to scale AI solutions internationally.

Seeing the bigger picture


As companies plot their investments in various transformation projects, Manik has one central piece of advice: “Make sure every decision you make about technology starts with and has a clear and direct link to business outcomes,” he says. “It sounds obvious, but it’s something that many C-suite leaders tend to forget as they get excited about new technology or a specific upgrade,” Manik says. It’s his role to help leaders take a step back and look at the big picture: “Don’t focus solely on what to adopt next,” he says, “but ask yourself why you need it in your operating model.”

One car manufacturer, for example, opened up a conversation by asking about an upgrade to its data servers. Manik reframed the question. “Hang on — we recognize your need to modernize, but to what end?” he told them. “How will this technology decision deliver the business impact you need?”

That question sparked a conversation about the carmaker’s larger goals, including its push to produce more autonomous vehicles. “Once we really understood that they are trying to change how quickly they can produce cars and different types of vehicles, we realized they needed a different supply chain design,” Manik says. “We are now on a path with them around supply chain transformation.

“Many times the conversation starts with technology, but migrates somewhere else,” Manik says. “Ultimately, it’s not about adopting new technology for technology’s sake, it’s about rethinking business processes and core competencies to uncover new business opportunities and areas to optimize — sometimes in ways that customers aren’t expecting.”

Source: ibm.com

Saturday, 17 June 2023

The real secret to a successful digital transformation? Human empathy


According to Debbie Vavangas, IBM Consulting VP, one of the main reasons digital transformation efforts fail is that organizations don’t fully account for the humans involved. They don’t fully consider the various people working throughout the organization, and how changes affect their daily lives. When it comes to things like automation, AI, and intelligent workflows, it may seem like taking people out of the process is the whole point. In certain circumstances, it’s tempting to remove the human element in a digital transformation. 

But no matter how technical a transformation project might be, Vavangas says, “Digital transformation works at the people level. It’s how you design experiences that are adopted; it’s how people learn to love things. ​​If you’re not thinking about your people, your innovation is doomed.” 

“If you’re not thinking about your people, your innovation is doomed.”Debbie Vavangas

It’s not that organizations don’t recognize that people matter; they often get caught up in the more tangible elements of a digital transformation—app modernization, AI, automation or operational efficiency. If investments in digital technology are not grounded in stakeholder needs and preferences, they will not drive organizational value. If these investments in digital transformation and new ways of working are a challenge for employees to embrace, a company’s transformation ambitions will unravel. 

​​Vavangas is no stranger to digital transformation as the global lead for IBM Garage, a unique end-to-end model for accelerating digital business transformation that puts innovation at the heart of enterprise strategy. She’s one of IBM’s thought leaders on innovative ways of working and change management. In her observation, the importance of how people experience transformation is “almost always woefully underestimated.” 

​Human-centered transformation can be achieved through a combination of user research, breaking down organizational barriers, and ensuring that your organization’s culture is eager to adapt to change. 

​​“Transformation is pointless when we do it without purpose.”Debbie Vavangas
​​“Transformation is pointless when we do it without purpose,” Vavangas says. If you transform an organization into something that doesn’t serve those responsible for its success, you will only waste time and money. 

Human-centered digital transformations begin with understanding what’s inside the hearts and minds of the people your organization depends on, then using those insights to inform how you embark on new initiatives and include everyone in the journey. To plan for the real-world human factors that can make or break a digital transformation, consider these three underused best practices for analyzing human experience, overcoming challenges and driving successful digital transformation: 

​​​​​1. User research: “I believe in my bones in the power of user research to make sure that you get to the crucial secret sauce, which is adoption,” Vavangas says. ​​Conducting comprehensive user research—from specific qualitative interviews to extensive data analysis—is key to determining the right success factors for a digital transformation, as well as to ensure employees are prepared to deliver. By incorporating metrics and user feedback early and often, companies can manage risk and ask, “Is this working?” and “What can we do better?” If you don’t have the data you need for user research, synthetic data can help. 

​​​​​2. Breaking down human barriers: Vavangas is adamant about clearly defining the human pain points that can derail your digital transformation and calculating the cost of those roadblocks down to the dollar. Reluctant leadership, the culture shock of organizational change, bringing siloed teams together, rigid rules, and new technology systems—all of these can be obstacles unless managed effectively. Think about the actual costs of your sticking points so you can push for workarounds. “When you know how much an impediment is costing you each day,” Vanvagas says, “it creates a very different lens to problem-solving.” 

​​​​​3. Cultural transformation: “If you don’t change the culture, transformation doesn’t get adopted,” Vavangas says. Yet lasting cultural change is one of the most difficult things for an organization to achieve. It requires buy-in across your organization, and that won’t happen unless leadership teams understand employees’ experiences and respond to their needs. “Measure how people are feeling as you’re rolling out programs,” Vavangas says. “What does it feel like to work in this different way? Are they feeling supported? Do they feel like they’re growing? Have we made things easier?” 

If your organization is looking for a way to accelerate digital transformation while keeping the human in mind, learn more about ​​IBM Garage and how it helps enterprises boost innovation and achieve lasting cultural transformation. 

Source: ibm.com