Does Your Cloud Provider Develop Talent?

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Digital and IT organisations are going through some dramatic changes as they adopt cloud and as-a-service capabilities. In this post, I want to write about two of these – one that is very much a consequence of the other.

Contract Numbers are Exploding 

We’re seeing an explosion in the number of IT suppliers to a typical organisation.

Pre-cloud, the typical organisation probably had five to ten contracts that covered most of the external services that were in use. With suppliers increasingly providing niche functionality and the increased use of credit cards to buy external services, it is often difficult to determine exactly how many contracts are in place. Or, indeed, have a clear understanding of the terms and conditions of each of these contracts.

Where once an organisation might have had contracts for an on-premises ERP and CRM system, a typical organisation will still have those contracts as well as a supply chain forecasting service, a marketing email management tool, not to mention online spreadsheets and task management capabilities.

So with many more contracts in place, the complexity of managing these contracts and understanding the technical, legal and business risks encapsulated in these contracts has become dramatically more difficult.

I’ll return to this point in a later post, as most organisations struggle with this increasing complexity.

What Is Happening to Your People?

The existence of these contracts means that you are increasingly becoming dependent on the people employed by these external organisations. But when you sign up for these contracts, do you investigate how these suppliers develop their talent?

The New Zealand Herald recently carried an interesting article on one organisation that has developed a paid intern program. Something very rare in the industry.

The article prompted me to think through some of the implications of using cloud services. Tech buyer organisations will have less need for technical capabilities as increasingly these are delivered by the cloud suppliers.

But the growth in demand for digital and IT skills just continues to increase as more and more industries digitalise. In the past, tech buyer organisations would have invested (at least the good employers did!) in the development of their people. The cloud suppliers are increasingly doing this talent development.

Most contract negotiations are based on cost, quality and customer service. A significant proportion of cloud contracts are now boilerplate – you pay with a credit card for a monthly service and have little or no ability to negotiate terms and conditions.

The trade-off is required to get a short commitment term and a variable cost profile. No tech vendor can afford to negotiate bespoke contracts for this type of commercial arrangement.

This situation leaves the question of how tech buyers can influence tech vendors to develop their people’s talent appropriately. Some would say that the tech vendors will do this as a matter of course, but the statistics, as highlighted in the Ecosystm research data in Figure 1, show that we are not bringing people in at the rate the industry requires.

Cloud Skills Management

Advice for Tech Buyers

I recommend you look closely at using two tactics with the tech vendors that you are working with:

  • First, look to consolidate as much workload as practical under a single contract with the supplier. This is not a new recommendation for contracts – but with the increasing use of boilerplate contracts, it is one of the few ways an organisation can increase its value and importance to a tech vendor.
  • Second, start finding those tech vendors that are developing new and existing talent in practical ways and favour these organisations in any purchase decision.

Most organisations, individually, do not have the commercial power to dictate terms to the cloud providers. Still, if enough tech buyers adopt this critical criterion, the cloud providers may see the value in investing in the industry’s talent development in meaningful ways.

The downside? Talent development does not come free. Tech buyers may need to pay a higher fee to encourage the suppliers but paying a low-cost provider who does not develop their talent sounds like a recipe for poor quality service.

If you would like to discuss any of these thoughts or issues further, please feel free to reach out and contact me. This is an industry issue and one for our broader society, so I would be interested in hearing how your organisations are addressing this challenge.

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Fueling Asia’s Innovation Ecosystem

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Since the start of this millennium, no region has transformed as much as Asia. There has been significant paradigm shifts in the region and the perception that innovation starts in the US or in Europe and percolates through to Asia after a time lag, has been shattered. Asia is constantly demonstrating how dynamic, and technology-focused it is. This is getting fueled by the impact of the growing middle class on consumerism and the spirit of innovation across the region. The region has also seen a surge in new and upcoming business leaders who are embracing change and looking beyond success to creating impact.

What is Driving Innovation in Asia?

The “If you ain’t got it, build it” attitude. One of the key drivers of this shift is the age of the average population in Asia. According to the UN the Asia Pacific region has nearly 60% of the world’s youth population (between the age of 17-24). With youth comes dynamism, a desire to change the world, and innovation. As this age group enters the workforce, they will transform their lives and the companies they work in. They are already showing a spirit of agility when it comes to solving challenges – they will build what they do not have.

The Need to enable Foundational Shifts. The younger generation is more aware of environmental, social and governance issues that the world continues to face. Many of the countries in the region are emerging economies, where these issues become more apparent. COVID-19 has also inculcated an empathy in people and they are thinking of future success in terms of impact. The desire to enable foundational shifts is giving direction to the transformation journey in the region. The wonderful new paradigm that is the Digital Economy allows us to cut across all segments; and technology and its advancements has immense potential to create a more sustainable and inclusive future for the world. 

Realising the Power of Momentum. The pandemic has caused major disruptions in the region. But every crisis also presents an opportunity to perhaps re-imagine a brighter world through a digital lens.  The other thing that the pandemic has done is made people and organisations realise that to succeed they need to be open to change – and that momentum is important. As organisations had to pivot fast, they realised what I have been saying for years – we shouldn’t “let perfect get in the way of better”. This adaptability and the readiness to fail fast and learn from the mistakes early for eventual success, is leading to faster and more agile transformation journeys.     

Where are we seeing the most impact?

Industries are Transforming. There are industries such as Healthcare and Education that had to transform out of a necessity and urgency brought about by the COVID-19 pandemic. This has led to a greater impetus for change and optimism in these industries. These industries will continue to transform as governments focus significantly on creating “Social Safety Nets” and technology plays a key role in enabling critical services across Health, Education and Food Security. Then there are industries, such as the Financial Services and Retail, that had a strong customer focus and were well on their digital journeys before the pandemic. The pandemic boosted these efforts.

Ecosystm Industry Optimism Index

But these are not the only industries that are transforming. There are industries that have been impacted more than others. There are several instances of how organisations in these industries are demonstrating not only resilience but innovation. The Travel & Hospitality industry has had several such instances. As business models evolve the industry will see significant changes in digital channels to market, booking engines, corporate service offerings and others, as the overall Digital Strategy is overhauled.

Technologies are Evolving. Organisations depended on their tech partners to help them make the fast pivot required to survive and succeed in the last year – and tech companies have not disappointed. They have evolved their capabilities and continue to offer innovative solutions that can solve many of the ongoing business challenges that organisations face in their innovation journey. More and more technologies such as AI, machine learning, robotics, and digital twins are getting enmeshed together to offer better options for business growth, process efficiency and customer engagement. And the 5G rollouts will only accelerate that. The initial benefits being realized from early adoption of 5G has been for consumers. But there is a much bigger impact that is waiting to be realised as 5G empowers governments and businesses to make critical decisions at the edge.

Tech Start-ups are Flourishing.  There are immense opportunities for technology start-ups to grow their market presence through innovative products and services. To succeed these companies need to have a strong investment roadmap; maintain a strong focus on customer engagement; and offer technology solutions that can fulfil the global needs of their customers. Technologies that promote efficiency and eliminate mundane tasks for humans are the need of the hour. However, as the reliance on technology-led transformation increases, tech vendors are becoming acutely aware that they cannot be best-in-class across the different technologies that an organisation will require to transform. Here is where having a robust partner ecosystem helps. Partnerships are bringing innovation to scale in Asia.

We can expect Asia to emerge as a powerhouse as businesses continue to innovate, embed technology in their product and service offerings – and as tech start-ups continue to support their innovation journeys.


Ecosystm CEO Amit Gupta gets face to face with Garrett Ilg, President Asia Pacific & Japan, Oracle to discuss the rise of the Asia Digital economies, the impact of the growing middle class on consumerism and the spirit of innovation across the region.

Designed for change in a rising digital economy
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The Value of People in your Digital Journey

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Fundamentally, any change has to be about people. And the Digital Value Journey that we are introducing in the upcoming CXO Digital Leaders Dialogue Series is no different. 

The journey covers five stages of development involving five capabilities. Still, without the engagement of the people who will be affected by the change, you will not make progress.

And the situation gets even more complicated when external events impact your business. Ecosystm research unearths the impact of COVID-19: over 90% of respondents changed their planned Digital Transformation in some way (Figure 1). These changes will inevitably mean that the anticipated behaviour changes from their teams no longer apply. Getting the affected people re-engaged with the new initiatives will not be a simple task.

COVID-19 forced organisations to transform

For example, when an organisation I worked at integrated an information-as-a-service capability, we found that our most experienced people did not use the new capability! They preferred to stick with their paper sources as they were very good at finding what they needed.

So nothing is achieved unless someone acts differently. We can change the technology, and we can change the process, but unless the people who need to change do change, we will waste everything else we do.

The scale of the change really doesn’t matter. If people are not in a mindset where they are looking to improve, we waste our time.

In the example I mentioned earlier, our store teams used catalogues to look up parts and equipment for customers. Our most experienced people were amazing – they knew which of the myriad of catalogues was going to give them the best part. We had not convinced them that the real-time system, which the supplier updated constantly, was better for them than the last paper version they had received.

So, on the Digital Value Journey, travellers need to remain very aware of the state of mind of the people whose behaviour they expect to change. Getting and keeping these people engaged is essential to the change.

People’s Resistance to Change

But why do people resist (or just plain ignore) change? How clear are you on what is in it for them?

Recent research on people’s motivation by psychologists such as Daniel Kahneman highlights that people fear loss much more than they look forward to success. To overcome this loss aversion, we need to help people understand why their lives will be better once we’ve completed the change and specifically address their concerns.

When we were looking at replacing the paper catalogues, we told the store teams that they would be able to quickly and easily search across all the catalogues available to them to give the customer the best deal. We didn’t consider that the ability to find the right part was a source of pride for some of the team. It was a skill that our experienced team members had developed over the years, and they felt we were devaluing their expertise.

We need to help those affected by the change recognise the purpose of the change and what is in it for them. If there is nothing, then why change?

And leaving people behind on the change journey is never going to lead to success. Their clear understanding of the purpose of the change is essential to getting the anticipated benefits.

I’ve seen change activities launch with a hiss and a roar, but as the pressure comes on during the delivery stages, communication and collaboration drop away. Listening carefully and responding authentically is a necessary part of the journey right through implementation until our teams have fully adopted the changes. A change doesn’t end at the implementation of a capability.

And that catalogue replacement? The delivery team kept listening to the store teams and made some great changes that were asked for. Some of the changes we didn’t understand, but the store teams were adamant. And the development paid for itself in less than six months through increased and better quality sales. 


How do digital leaders shift from providing a cost-focused to a value-focused service? At the CXO Digital Leaders Dialogue series, together with Best Case Scenario, we will be in discussion with leaders who will share their experiences on navigating their digital journey.

To learn more, or to register to attend, visit here

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Woolworths Announces Future of Work Fund

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2020 was a strange year for retail. Businesses witnessed significant disruption to supply chains, significant swings in demand for products (toilet paper, puzzles, bikes etc!) and then sometimes incredible growth – as disposable income increased as many consumers are no longer taking expensive holidays. Overall, it was a mixed year, with many retailers closing down and others reporting record sales. The grocery sector boomed – with many restaurants and fast-food providers closed, sometimes the supermarkets were some of the few remaining open retailers.

For many retailers, technology has become a key enabler to their transformation, survival and success (Figure 1).

Technology Focus 2021 - Retail Industry

Woolworths, Australia’s largest retailer, operates across the grocery, department store, drinks, and hospitality sectors. They hold a significant market share in most markets that they operate in. The company had a strong 2019/20 (financial year runs from July 2019 to June 2020) with sales up 8% – and in the first half of the 2020/21 financial year, sales were up nearly 11%. But the company is not resting on its laurels – one of its 6 key priorities is to “Accelerate Digital, eCom and convenience for our increasingly connected customers”. This requires more than just a deep technology investment, but a new culture, new skills, and new ways of working.

Woolworths’ Employee Focus

Woolworths has committed to invest AUD 50 million in upskilling and reskilling their employees in areas such as digital, data analytics, machine learning and robotics over the next three years. The move comes as a response to the way the Retail industry has been disrupted and the need to futureproof to stay relevant and successful. The training will be provided through online platforms and through collaborations with key learning institutions.

The supermarket giant is one of Australia’s largest private employers with more than 200,000 employees. Under Woolworths’ ‘Future of Work Fund’ their staff will be trained across supply chain, store operations, and support functions to enhance delivery and decision-making processes. The retailer will also create an online learning platform that will be accessible by Woolworths employees as well as by other retail and service companies to support the ecosystem.  Woolworths has plans to upskill their staff in customer service abilities, leadership skills and agile ways of working.

Woolworths’ upskilling program will also support employees who were impacted by Woolworths planned closures of Minchinbury, Yennora, and Mulgrave distribution centres due in 2025.

Woolworths’ Tech Focus

Woolworths has been ramping up their technology investments and having tech-savvy employees will be key to their future success. In October 2020, Woolworths deployed micro automation technology to revamp their eCommerce facility in Melbourne to speed up the fulfilment of online grocery orders, and front and back-end operations. Woolworths also partnered with Dell Technologies in November 2020 to bring together their private and public cloud onto a single platform to improve mission-critical processes, applications and support inventory management operations across its retail stores.

Future of Work

For many years, Ecosystm has been advising our clients to invest more in the skills of the business. Every business will be using more cloud next year than they are this year; they will suffer more cybersecurity incidents; they will use more AI and machine learning; they will automate more processes than are automated today. More of their customer engagements will be digital, and more insight will be required to drive better outcomes for customers and employees. This all needs new skills – or more people trained on skills that some in the business already understand. But too many businesses don’t train in advance – instead waiting for the need and paying external consultants or expensive new hires for their skills. Empowered businesses – ones that are creating a future-ready, agile business – invest in their people, work environment, business processes and technology to create an environment where innovation, transformation and business change are accepted and encouraged (Figure 2).

Future of Work

Empowered businesses can adapt to new challenges, new market conditions and respond to new competitive threats. By taking these steps to upskill and empower their employees, Woolworths is building towards empowering their own business for long term success.


 Transform and be better prepared for future disruption, and the ever-changing competitive environment and customer, employee or partner demands in 2021. Download Ecosystm Predicts: The top 5 Future of Work Trends For 2021.

Ecosystm Predicts: The Top 5 FUTURE OF WORK Trends for 2021
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Starting Your Digital Value Journey

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Over the next few months, we’re going to be focusing on the five stages of the Digital Value Journey and how an organisation and a leadership team can progress through these stages.

The Journey starts with baselining and then improving your execution capability.

Your Foundation

The quality of your execution needs to be consistently improved as you and your organisation make progress through your Journey. At the start, it is about developing the foundation on which you can build more complex and valuable business capabilities. You need that reliable, performing foundation that delivers what your customers and employees need every day.

For any Digital or IT organisation to succeed, it needs two critical things: a record of consistent success, and the trust from your organisation that past performance is a reliable predictor of the future.

Every day your customers and employees will be evaluating those two things. It’s like sitting a difficult exam every day. Failing one will be remembered – much more so than all the other exams that you successfully passed. To pass that exam you need to clearly understand what people are testing you on every day.

Understanding how the quality of your work will be evaluated is essential to creating and maintaining this firm foundation. Everything you do later in the Journey will depend on the foundation you establish at the start. 

Evaluating your Foundation

And you don’t have the freedom to choose how that foundation is going to be evaluated. There is a universe – or perhaps that should be a multiverse – of metrics that you could use. Selecting the small set of metrics that your stakeholders believe demonstrate your performance is essential.

Too many metrics is just as bad as too few – you won’t know which ones to focus on so you will end up spreading yourself too thinly. Your stakeholders are the best people to tell you how to measure your performance. Work with them to determine the one or two indicators that they really care about.

Schools and universities have improved dramatically in explaining how they are going to evaluate a student’s performance since I attended! As part of almost every assignment, educators include an evaluation rubric to guide each student. This sets out what how the educator will assess the students work. So, getting great grades is dependent on understanding this rubric.

What is your rubric? Without one how will you know what outcomes your stakeholders value and how they will evaluate your work? Spending time to talk with your stakeholders about what they value, is a habit that is worth developing early and maintaining throughout the Journey.

Your Next Best Steps

Getting this execution foundation right is the basis for everything that follows.

In the first of a series of webinars on 22 April, we will be introducing the concepts and ideas that we will expand on over the series.

Getting a quality education is a long hard slog – and I can’t promise that starting this Digital Journey will be any different. At each stage of the Journey different levels of capability will be required, but, as with an education, these higher levels of capability will only be possible if the right foundation is in place. So, join us to see how you can use the Digital Value Journey to lift the performance of your organisation and its Digital or IT Team.


How do digital leaders shift from providing a cost-focused to a value-focused service? At the CXO Digital Leaders Dialogue series, together with Best Case Scenario, we will be in discussion with leaders who will share their experiences with navigating these challenges.

To learn more, or to register to attend, visit here

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2021: The Year of the Customer

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In 2009 one of the foremost Financial Services industry experts was giving my team a deep dive into the Global Financial Crisis (GFS) and its ramifications. According to him, one of the key reasons why it happened was that most people in key positions in both industry and government had probably never seen a full downturn in their careers. There was a bit of a hiccup during the dot com bust but nothing that seriously interrupted the long boom that began somewhere in 1988. They had never experienced anything quite like 2008; so they never imagined that such a crisis could actually happen.

Similarly, 2020 was an unprecedented year – in our lives and certainly for the tech industry. The GFC (as the name suggests) was a financial crisis. A lot of people lost their jobs, but after the bailouts things went largely back to normal. COVID-19 is something different altogether – the impact will be felt for years and we don’t yet know the full implications of the crisis.  

While we would like to start 2021 with a clean slate and never talk about the pandemic again, the reality is that COVID-19 will shape what we will see this year. In the first place it looks like the disease will still be around for a substantial part of the year. Secondly, all the changes it has brought in 2020 with entire workforces suddenly moving to operating from home will have profound implications for technology and customer experience this year.

As we ease into 2021, I look at some of the organisational and technology trends that are likely to impact customer experience (CX) in 2021.

#1 All Business is Now eBusiness

COVID-19 has ensured that the few businesses which did not have an online presence became acutely aware that they needed one. It created a need for many businesses to quickly initiate eCommerce. Forbes reported a 77% increase in eCommerce infrastructure spending YoY. This represents about 4 years of growth squeezed into the first 6 months of 2020!

From a CX point of view there is going to be far more interaction with brands and products through online channels. This is not just about eCommerce and buying from a portal. It is also about using tools like Instagram, Facebook and other social media platforms more widely. It is about learning to interact with the customer in multiple ways and touching their journeys at multiple points, all virtually using the web – mostly the mobile web.

Ecosystm research shows that almost three out of four companies have decided on accelerating or modifying the digitalisation they were undergoing (Figure 1). It is fair to expect that this gives a further boost to moving to the cloud. For the customer it will mean being able to access information in many new ways and connect with products, services, brands at multiple points on the web.

Impact of COVID-19 on Digital Transformation

Since interacting with the customer at multiple points is new for most services, I foresee a lot of missed opportunities as companies learn to navigate a completely different landscape. Customers pampered by digitally native organisations often react harshly to even a small mistake. It will become critical for companies to not just become a bigger presence online but also to manage their customers well.

New solutions such as Customer Data Platforms (CDP), as opposed to CRM will become common. Players who are into Customer Experience management are likely to see huge business growth and new players will rapidly enter this space. They will promise to affordably manage CX across the globe, leveraging the cloud.

#2 Virtual Merges with Real

Virtual and Augmented Reality are not new. They have been around for a while. This will now cross the early adoption stage and is likely to proliferate in terms of use cases and importance.

AR/VR has so far been seen mainly in games where one wears an unwieldy – though ever-improving – headset to transport oneself into a 3D virtual world. Or in certain industrial applications e.g., using a mobile device to look at some machinery; the device captures what the eye can see while providing graphical overlays with information. In 2021 I expect to see almost all industrial applications adopting some form of this technology. This will have an impact on how products are serviced and repaired.

For the mainstream, 2020 was the year of videoconferencing – as iconic as the shift to virtual meetings has been, there is much more to come. Meetings, conferences, events, classrooms have all gone virtual. Video interaction with multiple people and sharing information via shared applications is commonplace. Virtual backgrounds which hide where you are actually speaking from are also widely used and getting more creative by the day.

Imagine then a future where you get on one of these calls wearing a headset and are transported into a room where your colleagues who are joining the call also are. You see them as full 3D people, you see the furniture, and the room decor. You speak and everyone sees your 3D avatar speak, gesture (as you gesture from the comfort of your home office) and move around. It will seem like you are really in the conference room together! If this feels futuristic or unreal try this or look at how the virtual office can look in the very near future.  

While the solutions may not look very sophisticated, they will rapidly improve. AR/VR will start to really make its presence felt in the lives of consumers. From being able to virtually “try” on clothes from a boutique to product launches going virtual, these technologies will deeply impact customer experience in 2021 and beyond

In the immortal words of Captain Kirk, we will be going where no man has gone before – enabled by AR / VR.

#3 Digital CX will involve Multiple Technologies

AI, IoT and 5G will continue to support wider CX initiatives.

The advances that I have mentioned will gain impetus from 5G networking, which will enable unprecedented bandwidth availability. To deliver an AR experience over the cloud, riding on a 5G network, will literally be a game changer compared to the capabilities of older networks.

Similarly, IoT will lead to massive changes in terms of product availability, customisation and so on. 5G-enabled IoT will allow a lot more data to be carried a lot faster; and more processing at the edge. IoT will have some initial use cases in Retail, Services and other non-manufacturing sectors – but perhaps not as strongly as some commentators seem to indicate.

AI continues to drive change. While AI may not transform CX in 2021, this is a technology which will be a component of most other CX offerings, and so will impact customer experience in the next few years. In fact, thinking of businesses in 2025 I cannot believe that there will be a single business to customer (B2C) interaction which will not feature some form of AI technology.

I’d be interested to hear your thoughts on the technologies which will impact CX in 2021 – Connect with me on the Ecosystm platform.


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Ecosystm Predicts: The Top 5 Telecommunications & Mobility Trends for 2021

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2020 saw a shutdown in both supply and demand which has effectively put the brakes on many economic activities and forced a complete rethink on how to continue doing business and maintain social interactions. The COVID-19 pandemic has accelerated digitalisation of consumers and enterprises, and the telecommunications industry has been the pillar which has kept the world ticking over. The rise in data use coupled with the fervent growth of the digital economy augurs well for the telecom sector in 2021.

Ecosystm Advisors Claus Mortensen, Rahul Gupta, and Shamir Amanullah present the top 5 Ecosystm predictions for Telecommunications & Mobility trends for 2021. This is a summary of the predictions – the full report (including the implications) is available to download for free on the Ecosystm platform.

The Top 5 Telecommunications & Mobility Trends for 2021

  1. The 5G Divide – Reality for Some and Hype for Others

Despite the economic challenges in 2020, GSMA reports that the global 5G subscriptions doubled QoQ in Q2 2020 to hit at least 137.7 million subscribers. This accounts for 1.5% of total subscribers – and is expected to rise to 30% by 2025.

The value of 5G will become increasingly mainstream in the next few years. 5G offers a tailored user-centric approach to network services, low latency and significantly higher number of connections which will power a new era of mobile Internet of Everything (IoE).

However, there are many operators who are still sceptical about 5G. In the US, many operators failed to get any tangible positives from 5G. In the near term, many operators will continue to evolve their 5G capabilities – a full grown standalone 5G technology implementation in some verticals might take longer. 

The unsuccessful launch of 5G by the US operators does not mean that 5G is a failure, however. It also implies that we need to look at other geographies to lead us into 5G – and Asia Pacific may well emerge as a leader in this space. China, for example, leads the drive in 5G adoption; and 5G smartphones account for more than half of global sales in recent months.

  1. Telecom Operators Will Accelerate Digital Transformation

Telecom operators are facing increasing demands for cutting-edge services and top-notch customer experience (CX). The global pandemic has caused revenue loss, due to struggling economies and many operators will aim to reduce OpEX to circumvent these financial pressures, raise the quality of CX and retain existing customers. To realise this, there will be much focus on improvement in efficiencies, better operations management as well as improving the IT stack. These digital transformation efforts will enable rapid and flexible services provisioning, which will be better prepared for the tailored services customers now demand.

Many operators are increasingly incorporating cloudification alongside the 5G network deployment. Operators are moving towards transforming their operations and business support systems to a more virtualised and software-defined infrastructure. 5G will operate across a range of frequencies and bands – with significantly more devices and connections becoming software-defined with computing power at the Edge. Operators will also harness the power of AI to analyse massive volumes of data from the networks accessed by millions of devices in order to improve CX, ramp up operational efficiencies as well as introduce new services tailored to customer needs to increase revenue.

  1. Remote Working Will Transform Telecommunications Networks

The changing patterns in peak network traffic and the substantial movement of traffic from central business districts to residential areas require a fundamental rethink in network traffic management. In addition, many businesses continue to ramp up digital transformation efforts to conduct business online as physical channels will remain limited. Consumer onboarding will also be fervent, as organisations look at business recovery – resulting in increase in bandwidth requirements.

The increasing remote working trend is amplifying the need for greater cybersecurity. Cybersecurity has catapulted in importance as the pandemic has seen a worrying increase in attacks on banks, cloud servers and mobile devices, among others. Cyber-attack incidents specifically due to remote working, has seen a rise. A telecom operator’s compromised security can have country-wide, and even global consequences.

  1. SASE Will Grow – and Sprawl

Although it was perhaps originally seen as an Over-The-Top (OTT) provisioned competitive service to operators’ MPLS services, many telecom service providers have been embracing SD-WAN over the years as part of their managed services portfolio. “Traditional” SD-WAN offers some of the flexibility needed to address the change towards a more distributed access and the workload requirements that the pandemic has accelerated – the technology does not address all of the issues related to this transformed workspace.

Employees are now working from a variety of locations and workloads are becoming increasingly distributed. To address this change, organisations are challenged to move workloads and applications between platforms, potentially compromising security. Despite all the challenges that the pandemic brought with it – both human and technical – it has also provided organisations with an opportunity to rethink their IT and WAN architectures and to adopt an approach that has security at its core.

We believe that secure access service edge (SASE), which is a model for combining SD-WAN and security in a cloud-based environment, will see a drastic rise in adoption in 2021 and beyond.

  1. OTT Players Will Continue their Expansion in the Telecommunications Space

Facebook, Google, Amazon are no longer considered as web companies as they moved from standalone ‘web’ companies to become OTT providers and are now significant players in telecom space. With the Facebook-Jio deal in India earlier this year, and with Google and Amazon actively eyeing the telecom space, these players will continue to explore this space especially in the emerging markets of Asia and Africa. There are telecom providers in these countries which will be prime targets for partnerships. These operators could be those that have a large customer base, are struggling with their bottom lines or are already looking at exit routes. OTT players were already offering services like voice, messaging, video calling and so on which have been the domain expertise of mobile operators for a long time. The market will see instances where telecom providers will sell small stakes to OTT players at a premium and get access to the vast array of services that these OTT providers offer.


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Ecosystm Predicts: The Top 5 Retail & eCommerce Trends for 2021

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The Retail industry has had to do a sharp re-think of its digital roadmap and transformation journey – Ecosystm research shows that about 75% of retail organisations had to start, accelerate, or re-focus their digital transformation initiatives. However, that will not be enough as organisations move beyond survival to recovery – and future successes. While retailers will focus on the shift in customer expectations, a mere focus on customer experience will not be enough in 2021. Ecosystm Principal Advisors, Alan Hesketh and Alea Fairchild present the top 5 Ecosystm predictions for Retail & eCommerce in 2021.

This is a summary of the predictions, the full report (including the implications) is available to download for free on the Ecosystm platform here.

The Top 5 Retail & eCommerce Trends for 2021

  1. There Will Only be Omnichannel Retailers

The value of an omnichannel offer in Retail has become much clearer during the COVID-19 pandemic. Retailers that do not have the ability to deliver using the channel customers prefer will find it hard to compete. As the physical channel becomes less important new revenue opportunities will open up for businesses operating in adjacent market sectors – companies such as food and grocery wholesalers will increasingly sell direct to consumers, leveraging their existing online and distribution capabilities.

Most customers transact on mobile device – either a mobile phone or tablet.  New capabilities will remove some of the barriers to using these mobile devices. For one, technologies such as Progressive Web Apps (PWA) and Accelerated Mobile Pages (AMP) will provide a better customer experience on mobile platforms than existing websites, while delivering a user experience at par or better than mobile apps. Also, as retailers become AI-enabled, machine learning engines will provide purchase recommendations through smartwatches or in-home, voice-enabled, smart devices.  

  1. COVID-19 Will Continue to be an Influence Forcing Radical Shifts

In driving the economic recovery in 2021, we will see ‘glocal’ consumption – emphasis on local retailers and global players taking local actions to win the hearts and minds of local consumers. There will be significant actions within local communities to drive consumers to support local retailers. Location-based services (LBS) will be used extensively as consumers on the high street carry more LBS-enabled devices than ever before. Bluetooth beacon technology and proximity marketing will drive these efforts. Consumers will have to opt-in for this to work, so privacy and relationship management are also important to consider.

But people still want to “physically” browse, and design aesthetics of a store are still part of the attraction. In the next 18 months, the concept of virtual stores that are digital twins will take off, particularly in the holiday and Spring clearance sales. Innovators like Matterport can help local retailers gain a more global audience with a digital twin with a limited technological investment. At a minimum, Shopify or other intermediaries will be necessary for a digital shop window.  

  1. The Industry will See Artificial Intelligence in Everything

AI will increase its impact on Retail with an uptake in two key areas.

  • Customer interactions. Retail AI will use customer data to deliver much richer and targeted experiences. This may include the ability to get to a ‘segment of one’.  Tools will include chatbots that are more functional and support for voice-based commerce using mobile and in-home edge devices. Also, in-store recognition of customers will become easier through enhanced device or facial recognition. Markets where privacy is less respected will lead in this area – other markets will also innovate to achieve the same outcomes without compromising privacy but will lag in their delivery. This mismatch of capability may allow early adopters to enter other geographic markets with competitive offers while meeting the privacy requirements of these markets.
  • Supply chain and pricing capabilities. AI-based machine learning engines using both internal and increased sources of external data will replace traditional math-based forecasting and replenishment models. These engines will enable the identification of unexpected and unusual demand influencing factors, particularly from new sources of external data. Modelling of price elasticity using machine learning will be able to handle more complex models. Retailers using this capability will be in a better position to optimise their customer offers based on their pricing strategies. Supply chains will be re-engineered so products with high demand volatility are manufactured close to markets, and the procurement of products with stable demands will be cost-based.
  1. Distribution Woes Will Continue

Third party delivery platforms such as Wish and RoseGal are recruiting additional international non-Asian suppliers to expand their portfolios. Amazon and AliExpress are leaders here, but there are many niche eCommerce platforms taking up the slack due to the uneven distribution patterns from the ongoing economic situation. Expect to see a number of new entrants taking up niche spaces in the second half of 2021, sponsored by major retail product brands, to give Amazon a run for their money on a more local basis. 

As the USPS continues to be under strain, delivery companies like FedEx in the US who partner with the USPS are already suffering from the USPS’s operational slowdown, in both their customer reputation and delivery speed. In 2021, COVID-19 – and workers’ unions – will continue to impact distribution activities. Increased spending in warehouse automation and new retail footprints such as dark stores will be seen to make up for worker shortfalls.  

  1. China’s Retail Models Will Expand into Other Markets  

China’s online businesses operate in a large domestic market that is comparatively free of international competitors.  Given the scale of the domestic market, these online companies have been able to grow to become substantial businesses using advanced technologies. All the Chinese tech giants – among them Alibaba, ByteDance, DiDi Chuxing, and Tencent – are expanding internationally.

China’s rapidly recovering economy puts those businesses in a strong position to fund a competitive expansion into international markets using their domestic base, particularly with their Government’s promotion of the country’s tech sector. It is harder to impose restrictions on software-based businesses, unlike the approach that we have witnessed the US Government take for hardware companies such as Huawei – placing constraints on mobile phone components and operating systems.

These tech giants also have significant experience in a Big Data environment that provides little privacy protection, as well as leading-edge AI capabilities. While they will not be able to operate with the same freedom in global markets, and there will be other large challenges in translating Chinese experience to other markets – these tech players will be able to compete very effectively with incumbent global companies. Chinese companies also continue to raise capital from US stock exchanges with The Economist reporting Chinese listings have raised close to USD 17 billion since January 2020.  


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Automation Drives Digital Transformation at the University of Staffordshire

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The Education sector is currently facing immense challenges with enabling a remote learning environment and ensuring the safety of staff, employees, and students. This is on top of the usual challenges of resource optimisation, student retention, student recruitment, and so on. Moreover, today’s students are millennials and post-millennials, who are digital natives – pushing educational institutions to adopt technology to attract the right cohort and provide an education that equips the students for the workplace of the future. The industry is being driven to transform, to keep up with student expectations on delivery, access to the resource, and how they choose to communicate with their educators and peers.

Ecosystm Principal Advisor, Dr Alea Fairchild says, “Education administration budgets are not increasing, but the pressure for quick response and more personalised interaction for students, means that administrators need to focus on interaction as the core competency. This requires institutions to automate as much of the volume back-office activity as feasible. The challenge is that individualised course structures mean more complex billing configurations.”

Dr Fairchild, who is active in international education in Belgium, says, “Individual study paths, including Erasmus exchanges, create a need for an audit trail on transfers, exemptions and completions.”

Ecosystm research finds that educational institutions are focused on adopting emerging technologies mainly to improve student services (Figure 1). The processes are being automated to reduce risks, errors and turnaround times for results and application processing, while also removing repetitive tasks so administration can focus on more value-add student-facing activities.

Top Tech Priorities in Education

University of Staffordshire Embraces Digital Transformation

The University of Staffordshire is a “connected university” with an emphasis on industry connections and graduate employability. At the heart of Stoke-on-Trent and a regional hub for healthcare education, the university has six schools as well as a well-known degree in computer games design.

The UK-based University has over the years built a reputation for being keen on embracing digital as a way of better management, offering better student services, and serving the larger community. In 2018, Staffordshire University announced plans to build a multi-million-pound apprenticeship hub at its Stoke-on-Trent campus supported by tech giants including Microsoft to equip students with digital skills and to deliver more than 6,500 new apprenticeships over the next decade.

Last year, the University implemented a digital assistant, called Beacon, hosted on Microsoft Azure Cloud that provides support to their students on their learning and on-campus activities, including monitoring their emotional well-being and providing recommendations on groups and societies that they might be interested in. Beacon aims to ease the life of a university student, acting as a digital coach, and to minimise drop-outs due to stress and uncertainty.

Like its peer organisations, in the wake of the pandemic, the university was able to implement a blended learning program – offering courses through digital and remote learning systems from this semester for the entire 2020-21 session.

Focusing on Transformation through Automation

The University of Staffordshire, recently implemented robotic process automation (RPA) as part of its digital transformation plan. Talking about the role of RPA in Education, Dr Fairchild says, “This is a recent trend in higher education, with other new initiatives seen at the University of Auckland and University of Melbourne. RPA as a tool is used in Education to achieve the service levels required to meet both students’ and potential students’ expectations. This includes downloading student applications, processing language waiver requests, and entering academic results. These are all rule-based, high volume applications where automation increases speed and reduces errors.”

The University is using Blue Prism Cloud to access the RPA software and has plans for a automation-led digital transformation roadmap. Dr Fairchild says, “Blue Prism is based on Java and uses a Top-Down approach. It offers a visual designer with no recorders, scripts, or any intervention. Blue Prism is based on process diagrams that utilise core programming concepts and create the operational process flows to analyse, modify and scale business capability.”

The Staffordshire Digital team initially implemented RPA in the Finance department, as it involves a lot of administrative and back-office operations such as management of finance, records, tuition fees details and more. The University’s emphasis is to free up personnel and make them focus on more productive areas. This is beneficial for both the administrative staff’s feeling of personal contribution as well as student service satisfaction levels. “Using RPA gives the opportunity to universities to revisit, redesign, and improve their existing processes in line with expectations from digital native students. For prospective students, the next wave of RPA integration is intelligent machine learning algorithms to help route emails and integrate chatbots to address questions on course selection,” says Dr Fairchild.


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