CxO’s Ask Why Technology Transformations fail to yield business outcomes planned?

“Managed Transformation” is about the cumulative evaluation of the “microcosmic” milestones over the life of the program. With each milestone seen as a phase or a stage to the...

032The CxO’ grueling moments: CEO – What is the safest way? COO – What is the smartest way? CFO – What is the TCO android? CTO – What is the future proof?

“Managed Transformation” is about the cumulative evaluation of the “microcosmic” milestones over the life of the program. With each milestone seen as a phase or a stage to the eventual goal, the end-goal is undoubtedly clear in the minds of CSPs. 62% IT based transformation projects become legacy monuments that cost the business 27% more to manage (CFO.COM).

CSPs find themselves in a highly volatile economic circumstance now. Fear of outsourcing and transformation are increasingly burgeoning in the mindset of the strategy board, and yet, they cannot remain docile in this era to a situation that can be likened to the era of dinosaurs. CSPs must change business strategy, the definition of a customer and indeed the definition of services based on business processes and technology platforms that they are saddled with today.

But it’s not all gloomy, there are solutions and frameworks that exist today, and themselves re-optimizing to help CSPs evolve. A radical transformation approach, otherwise considered also as a Big Bang model, leaves room for several layers of concern. Taking advantage of squeezing out every drop from an already cast investment in IT is as crucial to CFO’s as it is to COO/CEO. But to make this fruitful process, demonstrating confidence and success to the board, CSPs require CTIO/CIO’s to initiate a transformation program that ensures that success is guaranteed through the journey. CEO’s ask, why must I wait two years to realize the benefits you promise me when the certainty of the market cannot be predicted beyond 6 months with regards to my current strategy. The business remains agile in it’s management to ensure the upkeep of strategy to meeting the business set goals, but operationally handicapped on the actual people, process and technology required.

“Managed Transformation” is a program that brings key to the transformation objective, a continuous business-alignment initiative to the typical transformation environment. Recall, the typical transformation based on change management is linear track where requirements are set, delivery is mandated and closed. In a Managed Transformation situation, there is a CSI component that is implemented to tie to the clear objectives of the business, real needs for business and most importantly weighing the impact of the changes to current and planned objectives.

It is a program model that ensures that each of the partners and their stakeholders have their relevant interest adequately addressed – such as (i) business readiness; (ii) impact of the change on operations, (iii) the varying impact on different business needs, (iv) availed organizational resources, (vi) existing and required process flows to fulfill adequate returns on each investment or delivery phase, (vii) continuously cascading the vision into the delivery program, (viii) maintaining clear and crisp communication; and (ix) instituting a management discipline into both partnerships.

Managed Transformation improves engagement of both partners, brings more credibility to solutions being proposed, facilitates smarter savings for the deployment and removes the shadow cast by process oriented change management. If 70% of change management fail (Ref. Valueteam.biz, Delivering Business Value),

The business case for transformation can make excellent sense, and indeed the era CSPs find themselves now calls for Transformation at business and technology level to survive. Traditional transformation programs that have been triggered as a matter of identified needs failed due to two key reasons:

  1. The Transformation case for technology may be very well aligned to business vision, but the business will have to go through a process of changes to realize that vision. The business itself will not survive freezing operations strategy and is therefore continuously changing. Thus, the impetus that earmarked the kick off of the transformation journey will not hold same at the end of the period. And the transformation promise that was set forth will be archaic at the end of a 2 – 3 years transformation program. The industry, market and customer are changing so fast, a static transformation program is no more a sensible business option.
  2. When partners fail to understand the benefit of clearly staged objectives through the transformation cycle, the benefit map of technology solution fall short the expectations of the business eventually. The flipside is a business that waits whilst continuing to deepen its grip and hold on legacy to the point where changing from legacy to a modernized solution has ramifications that is far too complex, painful and an underpinning degradation on an already ailing business operations. As a result, the business finds itself handicapped with an already sunken investment that it cannot completely realize the promised return on investment.

Managed Transformation is more than an ideology or a way of delivery. In Huawei, when we look at the combined Telecoms Operations Management environment as an integral block comprising Value Added Solution Platforms, Operational Support Platforms, Business Support Systems and an Enabling Enterprise Bus, we see opportunities and benefits of modernizing the evolution drive of CSPs. Using Managed Transformation programs, CSPs can take advantage of the suit of open architectures of TOMs suite brought by the Huawei open suite of software solutions – VAS, SDP, VGS, BSS/OSS etc, to mitigate the current and upcoming future challenges and to well position with a Partner that is continuously re-optimizing business operations and technology management in spate of the trans-revolution in the ICT industry, the customer use of ICT and the revolution of a new service paradigm.

Managing incremental results by adopting the Huawei Managed Transformation solution, implies realizing results from day 1, reaping the financial and customer benefits of our solutions and the ability to re-optimze transformation plans in tandem with changes in your markets, business focus and organizational dynamics.

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