Click here to close now.




















Welcome!

News Feed Item

Intersection of Operational Excellence and Innovation Revealed as 'Sweet Spot' for Successful Business Transformations

New TCS Commissioned Research Reveals Changing Landscape and Best Practices

NEW YORK and MUMBAI, India, Aug. 26, 2014 /PRNewswire/ -- The results of a new study launched today by Tata Consultancy Services (TCS), (BSE: 532540, NSE: TCS), a leading IT services, consulting and business solutions organization, reveal that while enterprise-wide transformation projects are becoming increasingly complex, success lies at the intersection of two key dynamics: innovation and operational excellence. The July 2014 study, 'Business Transformation in a Digital Age,' commissioned by TCS and conducted by Forrester Consulting, evaluated the changing nature of business transformation, unveiled a number of factors that are changing the focus and expected outcomes for executives, and identified the tools to ensure successful transformation programs. 

Tata Consultancy Services.

Changing Landscape

The link between innovation and operational efficiency is driving many business transformations today, although these have traditionally been viewed as separate issues. The study found that 84 percent of transformation leaders view their programs as a critical part of their innovation strategy. At the same time, transformational innovation is not possible without operational excellence, with 85 percent of respondents indicating that reducing operational costs and increasing internal efficiencies were top innovation priorities. The study highlights that in order for transformation projects to scale in terms of security, reliability and maintainability, the innovation and operational efficiency agendas must work together for maximum success.

"Across the board, we are seeing a fundamental shift in what success looks like for enterprises undergoing business transformations," said Krishnan Ramanujam, Global Head of Enterprise Solutions for TCS. "There has always been an expectation that transformation involves sweeping, radical changes to a company's business model. However, in working with our customers, we have seen increasingly more focus on redesigning smaller operations at the ground level in order to effect larger changes throughout the organization."

Digital business requirements and the shift from Business Intelligence (BI) to advanced analytics, along with tablets/smartphones  and cloud deployments, are changing the focus and expected outcomes for transformation projects. Organizations are reshaping their infrastructure across the board to support mobile functionality that employees and customers have come to expect. And despite the challenges that come with integrating the cloud with existing legacy technology, the cloud is often used as a tool to speed up deployments of new transformation programs. Ramanujam added, "The companies that adopt this idea of 'digital empowerment' will be at the forefront of innovation and transformation." 

The use of new mobile, cloud-based technologies requires customization and business process redesign. More than half (54 percent) of the executives in the survey reported that a high level of customization was required for a successful transformation of core business systems, while 20 percent felt it required very high customization.

Faltering Transformations

Due to the increasing complexity of enterprise-wide projects, not all transformations succeed: almost half (47 percent) of enterprises indicated their project ROI was less than ten percent, and a mere one out of ten (9 percent) indicated an ROI higher than 35 percent. Given the technical elements of these transformations, companies need strong IT capabilities, but technology skills are no longer sufficient to ensure success. Five out of the top six primary skill gaps faced when implementing a transformation were non-technical, 'soft' skills.     

Businesses face many challenges when funding and measuring the results of transformation programs, which can affect many functional areas, involve multiple internal stakeholder groups, and create many different business outcomes, making the issue of project ownership increasingly complex. The study indicates that the difference between those that achieved high ROIs and those that had little-to-no ROI lay in the willingness to make significant changes during the project, based on clear measures of results.

Organizations must create the right mix of IT and business metrics, constantly adjust measurements and invest in governance. And seven out of ten (70 percent) survey respondents indicated that their transformation partner is a critical element of success, whether they are considering operational or innovation requirements. Such partners must be evaluated on every capability they bring to the table, while recognizing the overlap between them. They must also be able to address many priorities at once and have the ability to find alternatives, whether they are provided in-house or through partnerships.

Best Practices

As a result of the interviews undertaken with transformation decision-makers, several best practices were identified:

  • Innovate with operational excellence. IT needs to take on the job of improving core systems, processes and data to support innovative initiatives. Trying to improve customer experience through advanced analytics without the functionality and data of your core systems is largely a waste of time for today's organizations. 
  • Remain focused on business outcomes. Transformation initiatives will only be meaningful to organizations if they generate tangible business outcomes. The focus should be on how programs contribute to top- and bottom-line innovation goals.
  • Respect organizational change. Many organizations spend a great amount of resources on technology investments, but decide to "wing it" when it comes to change management. The science of organizational change has evolved significantly over the past 20 years, with many best practice frameworks for process re-design and cultural change management. Engage service partners who have proven frameworks and methodologies.
  • Invest in new generation technology. While no organization wants to spend ahead of the technology adoption curve, it's not going to do any good to invest in a multi-year transformation project if you're investing in outdated technology. Explore how to effectively leverage a combination of social, mobile, analytics, and cloud.

To view detailed results from the full study, please visit http://www.tcs.com/resources/white_papers/Pages/Business-Transformation-Digital-Age.aspx.  

Methodology

In this study, Forrester interviewed 10 business transformation leaders and conducted an online survey of 100 US and UK decision makers with significant involvement in business transformation projects. Survey participants included decision-makers in IT and Line of Business Director and above. Questions provided to the participants asked about their goals, their metrics and best practices around business transformation projects. The study began in February 2014 and was completed in May 2014.

About Tata Consultancy Services Ltd. (TCS)

Tata Consultancy Services is an IT servicesconsulting and business solutions organization that delivers real results to global business, ensuring a level of certainty no other firm can match. TCS offers a consulting-led, integrated portfolio of ITBPS, infrastructureengineering and assurance services. This is delivered through its unique Global Network Delivery Model™, recognized as the benchmark of excellence in software development. A part of the Tata group, India's largest industrial conglomerate, TCS has over 305,000 of the world's best-trained consultants in 46 countries. The company generated consolidated revenues of US $13.4 billion for year ended March 31, 2014 and is listed on the National Stock Exchange and Bombay Stock Exchange in India. For more information, visit us at www.tcs.com.

Follow TCS on Twitter.

Subscribe to an RSS Feed of TCS Press Releases.

Logo - http://photos.prnewswire.com/prnh/20131002/LA90934LOGO-b


 

SOURCE Tata Consultancy Services Ltd.

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
Learn how to solve the problem of keeping files in sync between multiple Docker containers. In his session at 16th Cloud Expo, Aaron Brongersma, Senior Infrastructure Engineer at Modulus, discussed using rsync, GlusterFS, EBS and Bit Torrent Sync. He broke down the tools that are needed to help create a seamless user experience. In the end, can we have an environment where we can easily move Docker containers, servers, and volumes without impacting our applications? He shared his results so yo...
Palerra, the cloud security automation company, announced enhanced support for Amazon AWS, allowing IT security and DevOps teams to automate activity and configuration monitoring, anomaly detection, and orchestrated remediation, thereby meeting compliance mandates within complex infrastructure deployments. "Monitoring and threat detection for AWS is a non-trivial task. While Amazon's flexible environment facilitates successful DevOps implementations, it adds another layer, which can become a ...
With SaaS use rampant across organizations, how can IT departments track company data and maintain security? More and more departments are commissioning their own solutions and bypassing IT. A cloud environment is amorphous and powerful, allowing you to set up solutions for all of your user needs: document sharing and collaboration, mobile access, e-mail, even industry-specific applications. In his session at 16th Cloud Expo, Shawn Mills, President and a founder of Green House Data, discussed h...
The Software Defined Data Center (SDDC), which enables organizations to seamlessly run in a hybrid cloud model (public + private cloud), is here to stay. IDC estimates that the software-defined networking market will be valued at $3.7 billion by 2016. Security is a key component and benefit of the SDDC, and offers an opportunity to build security 'from the ground up' and weave it into the environment from day one. In his session at 16th Cloud Expo, Reuven Harrison, CTO and Co-Founder of Tufin,...
SYS-CON Events announced today that MobiDev, a software development company, will exhibit at the 17th International Cloud Expo®, which will take place November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. MobiDev is a software development company with representative offices in Atlanta (US), Sheffield (UK) and Würzburg (Germany); and development centers in Ukraine. Since 2009 it has grown from a small group of passionate engineers and business managers to a full-scale mobi...
There are many considerations when moving applications from on-premise to cloud. It is critical to understand the benefits and also challenges of this migration. A successful migration will result in lower Total Cost of Ownership, yet offer the same or higher level of robustness. In his session at 15th Cloud Expo, Michael Meiner, an Engineering Director at Oracle, Corporation, analyzed a range of cloud offerings (IaaS, PaaS, SaaS) and discussed the benefits/challenges of migrating to each offe...
Chuck Piluso presented a study of cloud adoption trends and the power and flexibility of IBM Power and Pureflex cloud solutions. Prior to Secure Infrastructure and Services, Mr. Piluso founded North American Telecommunication Corporation, a facilities-based Competitive Local Exchange Carrier licensed by the Public Service Commission in 10 states, serving as the company's chairman and president from 1997 to 2000. Between 1990 and 1997, Mr. Piluso served as chairman & founder of International Te...
Mobile, social, Big Data, and cloud have fundamentally changed the way we live. “Anytime, anywhere” access to data and information is no longer a luxury; it’s a requirement, in both our personal and professional lives. For IT organizations, this means pressure has never been greater to deliver meaningful services to the business and customers.
In a recent research, analyst firm IDC found that the average cost of a critical application failure is $500,000 to $1 million per hour and the average total cost of unplanned application downtime is $1.25 billion to $2.5 billion per year for Fortune 1000 companies. In addition to the findings on the cost of the downtime, the research also highlighted best practices for development, testing, application support, infrastructure, and operations teams.
In their session at 17th Cloud Expo, Hal Schwartz, CEO of Secure Infrastructure & Services (SIAS), and Chuck Paolillo, CTO of Secure Infrastructure & Services (SIAS), provide a study of cloud adoption trends and the power and flexibility of IBM Power and Pureflex cloud solutions. In his role as CEO of Secure Infrastructure & Services (SIAS), Hal Schwartz provides leadership and direction for the company.
Puppet Labs has announced the next major update to its flagship product: Puppet Enterprise 2015.2. This release includes new features providing DevOps teams with clarity, simplicity and additional management capabilities, including an all-new user interface, an interactive graph for visualizing infrastructure code, a new unified agent and broader infrastructure support.
For IoT to grow as quickly as analyst firms’ project, a lot is going to fall on developers to quickly bring applications to market. But the lack of a standard development platform threatens to slow growth and make application development more time consuming and costly, much like we’ve seen in the mobile space. In his session at @ThingsExpo, Mike Weiner, Product Manager of the Omega DevCloud with KORE Telematics Inc., discussed the evolving requirements for developers as IoT matures and conducte...
Container technology is sending shock waves through the world of cloud computing. Heralded as the 'next big thing,' containers provide software owners a consistent way to package their software and dependencies while infrastructure operators benefit from a standard way to deploy and run them. Containers present new challenges for tracking usage due to their dynamic nature. They can also be deployed to bare metal, virtual machines and various cloud platforms. How do software owners track the usag...
Explosive growth in connected devices. Enormous amounts of data for collection and analysis. Critical use of data for split-second decision making and actionable information. All three are factors in making the Internet of Things a reality. Yet, any one factor would have an IT organization pondering its infrastructure strategy. How should your organization enhance its IT framework to enable an Internet of Things implementation? In his session at @ThingsExpo, James Kirkland, Red Hat's Chief Arch...
Providing the needed data for application development and testing is a huge headache for most organizations. The problems are often the same across companies - speed, quality, cost, and control. Provisioning data can take days or weeks, every time a refresh is required. Using dummy data leads to quality problems. Creating physical copies of large data sets and sending them to distributed teams of developers eats up expensive storage and bandwidth resources. And, all of these copies proliferating...