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Business Platforms: A Bundle of Benefits

As more and more clients seek to onboard  Business Platforms ( the new and innovative service delivery model ) and partake in the next generation of outsourcing BPO and IT together, I have been thinking through the core benefits these clients are seeking to get.

The bundle of benefits business platforms hold for clients are:

  1. The ability to keep the technology and the business process layers synchronized over a sustainable period of time
  2. Gain from an wholesome end-to-end process optimization rather than looking at piece-meal optimality
  3. Move  close to best-in-class companies on  relevant business metrics through adoption of a simple and standard business process and tool
  4. Ability to make this quantum leap without much pain and carrying out the change management which comes with outsourcing
  5. Ability to deal with a single partner who manages the whole gamut of services – Infra application & BPO
  6. Ability to be  agile and nimble in the process area moved to business platform , reducing rigidity and  hence having the flexibility to meet emerging business needs 

The bundle of benefits are essentially created through the 3 major planks of business process technology synchronization, Value-added IP layer of  wrapper technology and multi-tenancy along with economies of scope through shared services. The above benefits are over & above the ingrained service model related benefits of reduced Capex and moving largely to an Opex model.
The uniqueness of the bundling of  the infra & application cloud layer through value-added IP technology layer and BPO services is what creates the force multiplication of business benefits.

Comments

I agree with your analysis on business platform benefits. In fact businesses would benefit a lot from tech savvy boxes such as Procure-to-Replenish that can improve their business metrics like inventory reduction, freeing capital. Such innovative services would enable clients to focus on core issues like which items to procure for next season, items that would really sell without frequent markdowns. I think this is one of the critical pain points of many organizations, worldwide, and applicable for manufacturers as well as retailers.

It would be ideal to examine the business requirements before recommending platform solutions which are quite rigid by nature. This may limit its application but for large enterprise-wide transformation/re-engineering scenario. I would like to point to two major challenges here: i. The challenge of selling it to an already process-conscious enterprise. ii. The research gap in the estimation methodology to be employed for the same.

Business Platforms are not the panacea for every client situation, but clearly offer a tremendous value leverage for those who want to realize bundle of benefits in today’s environment. Standardization, process harmonization or use of industry best-practices can be seen by some as rigid, but the pain is worth the Gain. With more & more mainstream adoption of Business Platforms, there are available benchmarks both from a business metrics and operational (effort) standpoint which can be used to calibrate the pricing.

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