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Dawn of DX Economy, Rise of EXOs (Exponential Organizations), How can Service Management Complement?

In a world that’s changing so quickly, the biggest risk you can take is not taking any riskMark Zuckerberg, Founder/CEO, Facebook

 

In today’s fast-paced world of, ‘Customer First in Digital Age’, the  Experiences, Expectations, and Perceptions of Customers backed by technological advances and business model mindset shifts have a paved avenue for competitive market space to Businesses.

 

A lot is being heard these days about Digital Transformation, DX Economy, Disruption, and Disruption to the extent of Disruptive Innovation, Speed of Change, Mobility, IoT, SMAC, EXOs. We are getting to the point of XaaS(Anything/Everything-as-a-Service) to the magnitude of MLaaS (Machine Learning-as-a-Service) and AIaaS (Artificial Intelligence-as-a-Service), PMaaS (Project Management-as-a-Service), IOT-as-a-Service, etc as buzzwords in the industry.

In the event of such pace; to remain a provider of choice, Businesses need to accelerate their Service Quality, VALUE Delivery and focus on CX (Customer Experience). This would enable capture of diverse market segments in alignment with their MTPs (Massive Transformative Purposes).

Sounds challenging, isn’t’ it? And gets us to the point of specific queries throwing food for thought for a strategy on the road ahead –

 

  • What does this pace of change and various Predictions, Trends Analysis, Hype-cycles, Magic Quadrants, etc. from leading consulting firms such as Gartner, IDC, Forrester, Forbes, McKinsey, etc providing market intelligence and advisory services have to offer for today’s businesses to thrive and stay ahead of the competition?
  • How are Digital Transformation, Exponential Organizations, and Service Management conceptually linked and how can each become an enabler for the other?
For the transformational leap, let’s take a sneak at Prediction from Industry Analysts for a way ahead.


Prediction from Analysts

 

 

 

 

IDC

IDC’s Future Scape for Worldwide Digital Transformation (DX) [1] Below mentioned two predictions are amongst a list of 10 from the report:

Prediction 1By the End of 2019, DX Spending Will Reach $1.7 Trillion Worldwide, a 42% Increase from 2017

Prediction 2:By 2019, All Digitally Transformed Organizations Will Generate at Least 45% of Their Revenue from “Future of Commerce” Business Models

IDC on Service Management Software market [7] “The worldwide IT Service Management software market achieved a level of $4.69 billion in 2017, according to IDC estimates. The market as a whole is forecast to grow at a compound annual growth rate of 8.1% during the 2017–2022 period.”
 

 

Gartner

 

Gartner’s Magic Quadrant for ITSM Tools – 2017 [2]

 

Gartner’s Magic Quadrant for ITSM Tools, which assesses the viability of vendors and their competitive strength in the ITSM tool marketplace has indicated ServiceNow and BMC emerging as Leaders through the exhibition of their levels of product, marketing and sales capabilities required to drive market acceptance.
 

Forbes

On Why The ‘As-A-Service’ Model Works So Well for Digital Transformation [3] The global XaaS market will grow at a compounded annual growth rate of nearly 40% from 2016 to 2020, with services ranging from storage to pet-sitting to food delivery … XaaS is becoming a mindset as much as it is a strategy.”
Two approaches to Digital Transformation [4] In this article, Forbes talks about two approaches to achieving Digital Transformation-

1.       Linear

2.       Exponential

 

When we look at these predictions, we see a convergence of DX (Digital Transformation), EXO (Exponential Organization) and SM (Service Management). A convergence abled by Service Thinking further compounded by an Integrated framework of Best Practices involving not just delivery, quality, lifecycle approaches etc, but also, on Governance and checks on compliances.

We are experiencing history’s highest rate of change. So push harder, act sooner and never give up”   ~ Ray Kurzweil, Founder of Singularity University

Towards Convergence of the Worlds of DX Economy, EXOs and Service Management.

Lets’ look at each of these three dimensions for a conclusion on the road ahead.

From an article on CIO.com – “Digital Transformation is on top of every CIO’s agenda these days. However, the increasing level of complexity that accompanies the fast-paced, cloud-based world of digital requires going back to basics, i.e., that is, implementing a solid, modernized IT Service Management strategy (ITSM), to make sure that digital transformation coincides with Operational Excellence, Customer Satisfaction and IT Agility”.

As we look to the future and an aspired convergence on these dimensions for businesses, a logical deduce could thus ensue –


In the world of EXOs – Everything will become Digital. Yuri Van Geest

With Digital Transformation, the Consumer rather than the technology is in the driver’s seat. And these matters – Forbes

A robust ITSM strategy for an Organization is vital for Digital Transformation – cio.com

Being on par regarding Price and Quality only gets you into the game. Service wins the game ~ Tony Allesandra

Digital technology is enabling completely new operating models [9]. They’ve equipped Uber’s 2,000 internal employees to manage the complex logistics of 200,000 drivers. And they’ve enabled WhatsApp to grow to over 450,000 users with fewer than 30 employees. A service-oriented approach to managing the business backed by mindset shift to obtaining exponential growth would significantly enable the much-needed transformation.

So, the key is Adaption and Adoption. This could involve step-up from Legacy to Digital and Adapt to NextGen. DIY Tools as enablers would greatly enhance and complement the journey.

Road Ahead

– “in the future, the defining metric for organizations won’t be ROI (Return on Investment), but ROL (Return on Learning).” [10]

What the future will bring is always open to interpretation. As the march to becoming a digital native enterprise continues [11], organizations and industries will be destroyed and rebuilt.

Exponential Organizations present an unprecedented opportunity for innovation and growth on one end, as work is getting reshaped, customers are getting engaged in different technologies, and competition is being reimagined.

IoT involving digitization of physical world, with Customer Service Considerations key for IoT, it offers a great avenue for application of Service Management practices.

Lakshmi Nanduri -SMO Lead @YASH Technologies

References

 

  1. https://www.idc.com/getdoc.jsp?containerId=prUS43188017
  2. https://www.gartner.com/doc/reprints?id=1-49PLHSG&ct=170811&st=sb
  3. https://www.forbes.com/sites/danielnewman/2017/06/27/why-the-as-a-service-model-works-so-well-for-digital-transformation/#748fb5186490
  4. https://www.forbes.com/sites/barrylibert/2017/03/21/two-essential-approaches-to-digital-transformation/#102f451b53b1
  5. https://www.idc.com/getdoc.jsp?containerId=US41883016
  6. https://www.gartner.com/doc/3439529/implement-service-management-office-consolidate
  7. https://www.idc.com/getdoc.jsp?containerId=US43530918
  8. https://www.yash.com/blog/exponential-organization/
  9. https://hbr.org/2015/06/the-history-and-future-of-operations
  10. Salim IsmailExponential Organizations: Why new organizations are ten times better, faster, and cheaper than yours
  11. https://www.idc.com/events/futurescapes
Posted by Lakshmi Nanduri
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June 1, 2018

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