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R&D Outsourcing in realities of Digital
Transformation World
Yuliya Dubova, AVP Engineering
January 28, 2017
3
About myself
4
• Dr. Yuliya Dubova, PhD in Mathematical Modelling
• 15+ years in Software Engineering starting as a C++
engineer
• Expertise in Media, Telecom, Security, Mobile
• Media and Commerce Division Head at GlobalLogic
(500+ engineers)
• Working mom of an 1-year-old cutie
Speaker introduction
5
Digital transformation
6
What is digital transformation?
7
My take on digital transformation is
• Disruptive technology changing classic
business models
• Convergence of cloud, big data, social, mobile
and IoT
• Connection with end-users to collaborate
together
• Automation of manual work
• Making real-time decisions based on big data
8
Customer
Experience
Product and
Service
Innovation
Distribution
and
Marketing
and Sales
Digital
Fulfilment
Risk
optimization
Enhanced
corporate
control
Connectivity
InnovationAutomation
Decision
Making
How McKinsey defines digital transformation
9
Every industry which is not
affected now
will be affected in the next 3-
5 years
Which industries undergo transformation now?
10
How Digital Transformation affects
R&D outsourcing industry?
11
Why R&D outsourcing is affected?
New
skills
New
drivers
New
clients
12
• Optimize costs
• Minimize time to market
• Get easy access to good
engineering resources
• Free up core resources in-house to
work on new products
• Outsource work which is not the
company’s core competence
Driving factors to outsource R&D
• Find a partner who delivers an end-
to-end solution
• Minimize time to market
• Get access to both engineering &
domain resources
• Receive high-quality advisory on how
to go digital
• Minimize risks by collaborating with a
partner which is experienced in doing
DT
ISVs and IT service providers Companies which undergo DT
13
How should an R&D outsourcing
company change?
14
Four components of the change
People
competencies
Process
stakeholders
Management
mindset
Sale
models
15
• Domain expertise is now required, engineering
knowledge is not enough
• You can not be an expert in one field now, you need to
know all of them
• New roles and qualifications required such as UI/UX
designers, solution architects, subject matter experts,
devops engineers, etc.
• New mindset required: deliver solution in time and of
expected quality “no matter what”
Change: people
16
• New process frameworks to support end-to-end solution
delivery: Scaled Agile Framework, Lean Agile etc.
• New process stakeholders: product owners, release
train engineers, system architects, customer-facing roles
like professional services, customer support, etc.
• More cross-function interactions required, role scope
becomes blurred
Change: process
17
• Management scope increased to include full end-to-end
delivery responsibility
• Classic time&material and fixed-scope models don’t work
anymore, a client expects a company to commit to
scope, time and budget
• Managers have to learn how to estimate a large scope
precisely
• New mindset required: deliver solution in time and of
expected quality “no matter what”
Change: management
18
• The best sales person is now a technology evangelist
• Classic time&material and fixed-scope models don’t work
anymore, new sale models need to be supported:
solution fixed-cost, shared revenue, ROI-based or
transaction model etc.
• Having IP in specific domain helps to sale in that domain
to develop on top of your IP
Change: sale
19
Solutioning mindset
How to deliver the
solution?
20
• Train engineers to learn a domain
• Hire domain experts for PO, PM and QA roles
• Hire or train for new roles like devops, RTE, solution architects, etc.
• Develop your own intellectual property
• Invest into CoE and develop expertise around specific areas
• Develop new business models your company can support
• Don’t be afraid to enter new markets: all markets will eventually be
transformed
Tips to become the best partner
21
Thank you
Yuliya Dubova
AVP Engineering, Media & Commerce Division Head
LinkedIn: https://ua.linkedin.com/in/juliadubovaya
Skype: jdubovaya
Email: Yuliya.Dubova@globallogic.com

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Юлія Дубова "R&D аутсорсинг у світі цифрової трансформації" BDMSummit 2017 Winter

  • 1. 1
  • 2. 2 R&D Outsourcing in realities of Digital Transformation World Yuliya Dubova, AVP Engineering January 28, 2017
  • 4. 4 • Dr. Yuliya Dubova, PhD in Mathematical Modelling • 15+ years in Software Engineering starting as a C++ engineer • Expertise in Media, Telecom, Security, Mobile • Media and Commerce Division Head at GlobalLogic (500+ engineers) • Working mom of an 1-year-old cutie Speaker introduction
  • 6. 6 What is digital transformation?
  • 7. 7 My take on digital transformation is • Disruptive technology changing classic business models • Convergence of cloud, big data, social, mobile and IoT • Connection with end-users to collaborate together • Automation of manual work • Making real-time decisions based on big data
  • 9. 9 Every industry which is not affected now will be affected in the next 3- 5 years Which industries undergo transformation now?
  • 10. 10 How Digital Transformation affects R&D outsourcing industry?
  • 11. 11 Why R&D outsourcing is affected? New skills New drivers New clients
  • 12. 12 • Optimize costs • Minimize time to market • Get easy access to good engineering resources • Free up core resources in-house to work on new products • Outsource work which is not the company’s core competence Driving factors to outsource R&D • Find a partner who delivers an end- to-end solution • Minimize time to market • Get access to both engineering & domain resources • Receive high-quality advisory on how to go digital • Minimize risks by collaborating with a partner which is experienced in doing DT ISVs and IT service providers Companies which undergo DT
  • 13. 13 How should an R&D outsourcing company change?
  • 14. 14 Four components of the change People competencies Process stakeholders Management mindset Sale models
  • 15. 15 • Domain expertise is now required, engineering knowledge is not enough • You can not be an expert in one field now, you need to know all of them • New roles and qualifications required such as UI/UX designers, solution architects, subject matter experts, devops engineers, etc. • New mindset required: deliver solution in time and of expected quality “no matter what” Change: people
  • 16. 16 • New process frameworks to support end-to-end solution delivery: Scaled Agile Framework, Lean Agile etc. • New process stakeholders: product owners, release train engineers, system architects, customer-facing roles like professional services, customer support, etc. • More cross-function interactions required, role scope becomes blurred Change: process
  • 17. 17 • Management scope increased to include full end-to-end delivery responsibility • Classic time&material and fixed-scope models don’t work anymore, a client expects a company to commit to scope, time and budget • Managers have to learn how to estimate a large scope precisely • New mindset required: deliver solution in time and of expected quality “no matter what” Change: management
  • 18. 18 • The best sales person is now a technology evangelist • Classic time&material and fixed-scope models don’t work anymore, new sale models need to be supported: solution fixed-cost, shared revenue, ROI-based or transaction model etc. • Having IP in specific domain helps to sale in that domain to develop on top of your IP Change: sale
  • 19. 19 Solutioning mindset How to deliver the solution?
  • 20. 20 • Train engineers to learn a domain • Hire domain experts for PO, PM and QA roles • Hire or train for new roles like devops, RTE, solution architects, etc. • Develop your own intellectual property • Invest into CoE and develop expertise around specific areas • Develop new business models your company can support • Don’t be afraid to enter new markets: all markets will eventually be transformed Tips to become the best partner
  • 21. 21 Thank you Yuliya Dubova AVP Engineering, Media & Commerce Division Head LinkedIn: https://ua.linkedin.com/in/juliadubovaya Skype: jdubovaya Email: Yuliya.Dubova@globallogic.com