People; Process and Real-Time Data; the battle cry of the new and future technology!

Harnessing Technology to Unlock Human Potential…

People; Process and Real-Time Data;
the battle cry of the new and future technology!

Andy Mulholland
Global Chief Technology Officer

Technology is at a Crossroads today

Ask what the role of Technology
should be in the Business
of the Enterprise?

Technology has become the
means by which Enterprises and their
Employees can create new revenues by
servicing customers and markets
in new innovative ways.

© 2011 Capgemini – All rights reserved

Technology is in every part of the Business Model

Cost Productivity
and time improve-
saving ment

New customer New products /
experience Operational Services
Technology

Customer New
Insights Platforms
Customer Markets
People


This can be seen in roles and activities
Transactional/Process
Leader/Executive People Manager Execution Worker Knowledge Worker
5% 10% 5% 5% 5% 5%
10% 5%
30%
15% 20% 30%

70%
85% 60%
40%

The odd one out!
New Employee Administrative Assistant Contributor Networker
10% 5% 5% 5% 15%
10% 20%
30% 30%
30% 30% 40%
40% 30% 60% 40%

Professional Track/SME Mobile Worker/Road Warrior
5% 5% Relationship Management/Decision Making
20% 25% 35% Knowledge Work
35%
Collaboration
40% 35% Business Processes


The Innovation is to adopt people centric business models
The three common forms of innovation

To create VALUE though a new For SERVICABILITY to secure To change COST of production
market or product existing and new customers and size of available market

A game-changing move that Where market or product A break through in any element
provides sustained ‘first mover’ cannot be innovated, service of the operation of an
advantage can be used enterprise

The barriers to innovation

Defocusing and loss of Optimisation Conway’s Law

The immediate and obvious challenge that Enterprises cannot change beyond the
any change will bring to an Enterprise constraints of their communications

BUT Change is inevitable
Innovation is about controlling the timing and basis of change to be advantageous to our own business


Innovation - 19 Technology enabled ‘NEW’ Business Models
Exclusive membership
Replace a CapEx product
Affinity Club MBNA offering advantages for subs Pay-as-you-go SalesForce.com with an OpEx service
and loyalty
Match buyers and sellers Expensive item free,
Brokerage Century 21st for a fee on successful Premium Photocopiers creating a tied market for
transactions consumables
Construct new proposition
Set high price and allow
Bundling iPod / iTunes by simplifying complex Reverse Auction Elance.com bidding downward
transactions
Outsourcing content Provide low-cost
Crowd Sourcing Wikipedia construction in exchange Reverse Premium iPod consumables to sell
for broader view high-margin product
Using technology to deliver Switch from selling a unit
Disintermediation WebMD direct not through limited Product to Service Hilti to providing units as a
local source managed service
Customer pays for a part of Package combinations of
Fractionalisation NetJets the product but gets full use Smart Devices Vodafone product and services to
when needed maximise market
Basic service is free and Low-cost standardised
Freemium Skype ubiquitous with premium Standardisation MinuteClinc solution instead of
chargeable high-cost customisation

Recycle expensive products Subscription fee creates a
Leasing MachineryLink through a managed lease
Subscription Club NetFlix tied in customer base

Low cost, self service in Managed network for
LowTouch SouthWest place of high cost with high User Communities Angie’s List common interest with
service revenue by advertising
Re-arbitrage the ‘sell and
Source: Seizing the White Space
Negative Operation Amazon buy’ cycle to finance the
Harvard Business Press by Mark W Johnson
trader


Business Innovation rests on the Change in People
Traditionalist Boomers Gen X Millennials
(55 - 65) (45 – 55) (30 – 45) (18 – 30)

Training The hard way Too much and I’ll leave Required to keep me Continuous and expected

Learning style Classroom Facilitated Independent Collaborative and networked

Communication style Top-down Guarded Hub and spoke Collaborative

Problem-solving Hierarchical Horizontal Independent Collaborative

Decision-making Seeks approval Team informed Team included Team decided

Leadership style Command and control Get out of the way Coach Partner

Feedback No news is good news Once per year Weekly/Daily On Demand

Technology use Uncomfortable Unsure Unable to work without it Expected to be Intuitive

Job changing Unwise Sets me back Necessary Part of my daily routine

Source: Lancaster & Stillman (2003)

Its all about getting People to work BETTER
Market

Customers

Outside - In
Suppliers

Inside - Out Partners

Back Office IT Front Office
Cost reduction and
Web & Cloud Services
Market and Information
Innovation in Business Models
process automation value producing


Social Networks are Outside-In, BI is Inside-Out
Market

Social Websites

Unstructured Input
Customers
Social Network
& Collaboration

Suppliers
Structured Capture
Structured
Responses
Knowledge
Partners
Management
Back Office IT Front Office
Cost reduction and Market and Information Web & Cloud Services
process automation value producing Innovation in Business Models


The Outside-In v Inside Out paradigm

Externally Focussed
People & Event Centric …. Computer & Data centric „post PC and Mobility‟
Shared and Collaborative Tablets and Phones
Internally Focussed
Standards defined ……………………… Proprietary Social Networks,
PC and Desktop
ERP and BI
Real time Agility
Development Methods Big Data

Direction of events
and control

Loose Coupled ……. Close Coupled Back Office …………….. Front Office
Stateless …………………... State full Operational ……. Sales ? Marketing
Non Deterministic ….. Deterministic Cost Savings ……….. Value Creating
Services Based ………. Applications Compliance ……………... Innovative
Web/Cloud Model …… Client Server Invest/Overhead ……. Consumption

Technology Business



Shaping the ‘future’;
Business Driven Change

The ‘Outside’ view of a Pharmaceutical Company
Health & Medical Integrated
Pharmaceutical Medical
Information analysis
diagnosis Network condition
monitoring
healthcare
records contraindications

treatment drug interactions
search options
diagnostics
Patient viral Pharmaceutical
marketing Business
health
business safety
education
architecture management

brand strategic
regulatory
approval
Regulators
recruitment
management management
life care
product treatment
partner
portfolio guidelines
disease management management
management
commercial trials marketing
treatment
choice personalised management
manufacturing
treatment
logistics new product
dispensing development
animal models
prescribing analysis sales
novel diagnostics
care epidemiology discovery
Healthcare Suppliers
surrogate
end-points

basic off-label
research use

Academia


Innovation model means provider-centric to patient-centric
Across the globe, patients are taking control of their healthcare regimen.
Patients expect instant access to health and drug information
Old Story: Where Pharma is broadcasting to the consumers …….from being provider-centric to patient-centric

Hospital
Patient

Patient Payer Patient Care
Patient physician

Shift
Pharma Patient
Happens
Company
Retail
Pharmacy Specialist
Patient
Patient

Patient Lab

In the era of the Blackberry and iPhone, consumers are used to having instant access to information and services.
With Google at their finger tips, they can answer any question they can think of, at any time of the day.
With the use of the internet being so high, social media shows great promise for marketing as well as for disease education.


Back to People and Interactive Technology!
Listen Engage Collaborate
Pharma
Company

Information

Pharma Pharma
Information

Company Company

Gather information/data from the group of
people: also consider market research and Need to adopt an organization-wide
competitive intelligence and clinical customer-centred approach and
information develop products, mobilize
stakeholders and innovate
Provide information on company’s
product, and services and ask for
feedback and opinions

Source: Deloitte survey of brand/ marketing or risk/ compliance professionals from pharmaceutical, biotechnology, medical device, or diagnostics companies July 2010 (n= 208 )


Key Roles in the ‘Futures’ Enterprise
Smart Business Business Users &
Models Managers

CEO CFO

CIO BPO


A shift in Roles and Responsibilities



Shaping the ‘future’;
Technology Enabled Change

Clouds – the correct and simple explanation!
The current final stage in the development of a technology revolution;

1. The Internet – standardisation of connectivity
2. The Web (1.0) – standardisation of content
3. Web 2.0 – standardisation of social interactions
4. Clouds – standardisation of process elements

A shift from Client- Server Technology which is;
Close Coupled; State full and Deterministic

To Browser-Cloud Technology which is;
Loose Coupled; Stateless and Non Deterministic

The result? Its not possible to make an architectural drawing illustrating what system is
connected to what system, how and for what, as a result;
Connectivity and Functionality can only be shown to a specific Cloud


Gaining the benefits
“Inside-Out” cloud benefits “Outside-In” cloud benefits

 Reduce the capital and operating  Shift the focus to customer-centric
costs of existing systems joined-up services
 Improve operational performance  Actively engage customers
of technology and business  Reduce time, cost and complexity of
 Improve manageability providing all forms of services
 Increase flexibility and agility to  Reduce the cost on introducing
respond to change innovative models
 Reduce the cost of systems  Reduce cost to serve though new
change to meet future models that better fit with customers
requirements  Pay only for the computational services
 Refine cost allocation needed when they are needed with
 Create possibilities to share automatic cost allocation
services amongst common public  Improve engagement with customers in
agencies pursuing better outcomes
 Integrating with social and business
networking to improve outcomes


The Agile Enterprise
Business Decentralised
Users & Business Technologies
Managers  creating go-to-market
Personalise
An Individual’s capability to choose their ‘tools’ competitive capabilities
and how they wish to ‘Interact’ and ‘collaborate’  enabling new revenues &
CEO increased market access
 constantly changing
 open and interactive
Differentiate Smart  paid for from operating
A Manager’s capability to build locally unique ‘differentiating’ Business budgets with direct cost
capabilities both externally and internally to create revenue Models allocation to demand

Centralised
Core Competences Information Technology
CFO
Common, shared core processes that support each differentiated  reducing internal operating
offer above, and connect to transactional IT applications below
costs of running enterprise
 necessary for commercial
CIO and legal governance
Comply (ERP, etc.)  stable and procedural
Traditional Enterprise Applications with organised procedures
 closed and secure
and data integrity, keeping compliant business results  an overhead that must be
Business
Process budgeted and recovered
Outsourcing annually



and the Futures Forum ……

A Complex set of Business and Technology
Futures to consider!
New Technology Trends:
Customers  What comes after Cloud? What are the disruptive
relationship technological trends to be awaited?
changes  Where is their business potential?
– For our customers?
– For us?
Employees
role changes
New Business Trends:
 What comes next? What are the
Business technological needs/impacts?
Technology
model  What change on the business side will
changes
changes influence us the most?
New External
capabilities
How do we ride the change?
 In which areas are we prepared for the change?
 What is the right methodology for getting business
Alignment changes into relationship to technology changes?
To Internal  How can we spread knowledge about on going
Operations changes?


People; Process and Real-Time Data; the battle cry of the new and future technology!

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People; Process and Real-Time Data; the battle cry of the new and future technology!