Innovation and Transformation in Business Processes: Evolving Paradigms
In the last decade, business process transformation involved leveraging data-driven statistical techniques such as Lean, Six-sigma, and more to improve operations. Transformation was about implementing multiple incremental improvement initiatives to enhance levels of efficiency and quality.
Today, business process transformation deals with changes that align with the overall business strategy and impacts various levels within the company's operating model. Multiple factors driving this change are:
- Customized platforms - With an aim to leverage the wealth of experience that providers garner while working on similar processes across industries, innovation in business processes will be through co-creation of tailor-made products, platforms and solutions.
- New technologies - Emergence of new technologies - cloud, mobility, social media and Big Data analytics will drive innovation and transformation as providers offer these technologies with a layer of business process as an integrated solution. And as cloud adoption increases with tailored platforms, we will have more of 'EaaS'- Everything-as-a-Service.
These technologies are also making the middle-market (we consider companies with revenues from USD $100 Mn to $1 Bn as mid-market) an attractive segment for business process transformation.
And as providers leverage new technologies and solutions to offer customized solutions, their field of play will expand to include:
- Front- and middle-office processes such as marketing support, market analysis, consumer behaviour analysis and social media services.
- Onsite 'client partners' embedded in the client organization to work closely with the CXOs to jointly set the innovation and transformation agenda with appropriate upfront commitments of investments (inputs) and business value (outcomes).
- Separate contract or statement of works (SoW) for innovation and transformation, and for 'business as usual' work.
- 'Global Innovation & Transformation Boards' set up by the client for governance with specialist partners as part of these boards to ensure that the vendors are fully aligned with the client organization and are actively using their expertise to impact the client's global operating capabilities.
- A new level of benchmarking with demand for external benchmarks for all key processes / metrics. In case external benchmarks are not available, creating client-specific internal benchmarks with a roadmap to achieve them.
- Shared resources thought to be far-fetched until now will become a reality as companies open up to the idea when they do not need dedicated full-time resources for some of their processes.
As the scope of BPO-led transformations expand, partnering firms will need to take a holistic look at the client's business processes and deliver diverse outcomes. The scope of impact is only limited by partnering firm's capabilities and willingness to go the extra mile.
To know more about on the evolving paradigms, download our view point.