PPM is Enabling Infosys to Move from Being an 'Executer' to a 'Transformer'!
What clients expect from transformation?
Transformation is a much used and in some sense much abused buzz word. But I will try and capture what I have seen in the last several meetings that I have had with the various clients in North and South America. Client are expecting us to be a lot more involved in their businesses. Our operations have a direct impact on businesses, and therefore, our decisions are now mostly taken at the CXO level. Clients expect outcomes as compared to effort. Especially in Latin America, FTE based pricing (and labor arbitrage) is not a viable option any more. Clients expect a higher degree of risk from us (more skin in the game) and are willing us to share benefits (higher reward). They also expect us to infuse their business processes with tools and technology to drive productivity. I consider this as the first aspect from a transformation perspective.
The second as aspect that I want to share is, today clients are being forced to evolve at an unprecedented pace. There is almost no predictability, and things change dramatically from one quarter to the next. CXO changes are routine, and M&A activity is at an all-time high. This means that clients have little patience, and the time for transformation is very limited. We need to not only ensure that we go in with a thorough and well-priced solution, but we also target the exact problem points that the customers have.
One of the biggest differences that we see today from a few years ago, is the client's intent and desire to push the boundaries, and create 'innovative' revenue streams. Clients are asking us to come and co-create with them; they are saying "we want to be in certain geographies that we are not and you are, we want to create certain new lines of business, and need someone like you to help create the capability". "Here is IP that we have, and here are the capabilities we don't that you can bring to us". Interestingly, a lot of these capabilities are from different industry verticals. E-Commerce solutions in retail are relevant to the Banking industry. Mobility solutions created for Field Sales in CPG industries are relevant to the manufacturing industry. We are seeing a fantastic opportunity to transform the company's business through co-creation and co-created solutions!
This also takes us to the 3rd point, where the clients are looking to monetize the assets that they have already. These assets might range from shared service centers (SSC) that were created a few years ago, to IP in unique line of business. Most clients went down a pat in shared services - initially they centralized, then standardized, then optimized and finally outsourced. So they had a framework for SSC and today what they are looking to do is they are trying to add a fifth component which is monetizing that! 'Can they take a SSC and can they make it a profit center from a cost center?' Which means, can they take some of these solutions and services and make money out of it? They are asking us some of these very interesting questions and we are coming to the table to create such services.
I think finally, from a client perspective, they are asking us to be partners to them. They are asking us to walk the journey with them! It is a very great time for us from a transformation perspective.
PPM's role in addressing transformation
So what is happening more and more is it that the clients are expecting a lot from us. Now Infosys Process Progression Model (PPM) is a framework that allows us to move from being an executer to a Transformer! Infosys has a large history of executing ON time, ON or UNDER Budget and clients now expect us to be 'Advisors' and advise them on their business strategy as compared to being executers. PPM is a framework which is very comprehensive and at the same time very simple. It allows us to move across three levels using a very practitioner led and structured approach. Level 1 - get the basics right, then improving the process and augmenting it and infusing it with robotics, with automation and with technology and ultimately transform the process! I think the exciting thing about PPM is you are NOT doing it alone primarily just as Infosys but you are working very closely with the client to get an alignment, assessing the operations, coming close to them, working with them to really audit and look at the processes and confirm with them that they are indeed moving up the progression cycle!