SMAC Pushes Businesses To Embrace ‘Future-Ready’ Models
With increasing impact of disruptive concepts such as consumerization of IT, mobility, cloud, big data, and analytics, there is an urgent need for companies to challenge traditional business models and embrace agile and flexible workplace environments, observes a study by advisory firm, Zinnov. The study titled, ‘R&D for Enterprises: Leveraging Megatrends,’ reveals the key aspects that will drive businesses globally through the next few years. The study also suggests a three-pronged framework of action points that could help organizations take better advantage of these rising Megatrends.
Today, consumerization of IT and mobility are not limited to the software industry, but are seeing increased penetration across industry segments such as healthcare, aerospace, and retail. It has therefore, become imperative for companies to re-define their turnaround time, design innovative solutions and adopt collaborative business models. As results of these changes in the underlying structure and functioning of organizations, Zinnov identified the following Megatrends that are expected to drive markets around the world.
Mobility and IT Consumerization compels companies to focus on flexibility
The rapid growth of smart phones and BYOD practice has had a profound impact on how enterprises consume and invest on technology. However, the transition to mobility comes with the following key challenges, including a rise in the cost of product development, uncontrollable inflow of consumer data and concerns on data privacy and security.
Cloud technology drives large companies to re-define their turnaround time
Cloud adoption has increased tremendously not only amongst small and medium businesses, but also large enterprises aiming at optimizing costs. With the turn-around time on projects reducing drastically, innovative solutions have become the need of the hour across businesses
Leveraging data to understand consumer needs becomes imperative
Further to adoption across consumer facing companies, several enterprise business-to-business companies are today leveraging benefits of Big Data and Analytics. With cloud and mobile data readily available for quick analyses, in-depth studies on customer behavior and preferences are losing significance.
Mushrooming startups across the globe diminish the relevance of geography
Startups, which are breeding grounds for innovation, are posing stiff competition to large players. Convergence of trends has resulted in a whole new set of possibility for digitally native startups disrupting long established businesses.
‘Acqui-hiring’ emerges as a global phenomenon
Acqui-hiring, the practice of acquiring a company for its talent rather than product is gaining popularity among large companies such as Google, Facebook, Yahoo!, Apple, Twitter and Zynga. These acquisitions help large players accelerate their additional capabilities and own versatile offering portfolios. Acqui-hiring is expected to become a global phenomenon for companies focusing on expanding their talent pool with rich digital migrant companies following suit.
Restructuring internal IT, helps adapt to innovative disruption
Large and mature firms are waking up to the change and re-organizing themselves internally, diverging into systems of record (back-office workflow) and systems of engagement (customer facing workflow). Today, enterprises are shifting to Systems of Engagement, which prioritizes usability and design to deliver to roadmaps rather than well-structured requirements. The impact of this re-organization has been more in industries such as B2C – Retail, Hospitality, Travel, Healthcare and Retail banking.
Commenting about the findings of the study, Pari Natarajan, CEO, Zinnov said, “We believe that companies need to adopt a more structured approach to make themselves future ready. Every business is facing the challenge of keeping the changing needs of their customers fulfilled. However, for ensuring business success, it’s necessary to respond in the right way and at the right time to these changes.”
Zinnov suggests a three pronged framework of action points that could help organizations take better advantage of these rising Megatrends.
1. Organizational and Business Process Structuring by creating
-A dynamic product portfolio
-Self-contained global teams
-Consolidation of R&D locations
2. People Strategy involving
-An optimized talent portfolio
-Large Scale Skill assessment & rescaling
-Global focused Acqui-hiring
3. Process Mindset Shift to
-A distributed Agile deployment
-Data driven product management
-Integrated Design process
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