the lost art of service delivery

© 2016 Information Services Group, Inc. All Rights Reserved.

Deb Taylor & Paul Schreiner

The Lost Art of Service Delivery Challenges in Digital Transformation

© 2016 Information Services Group, Inc. All Rights Reserved 33

How successful are transitions?What is the impact to service delivery?What causes transition delays and problems?What do we do to solve this?

Agenda


Delayed 4 or more months:

0%

36%

14%

50%

0%

33%

17%

All Lift & Shift Digital Projects

57%

14%

29%

0%

3%

33%

12%* ISG Survey Response: 40% L&S, 40% Digital, 20%

Projects

50%52%On Time:

Ahead of Schedule:

Delayed 1-3 months:

How successful are transitions?


What is the impact of transition delaysto service delivery?

Negative impacts to provider: Service provider credibility Client relationship Performance Cost


Possible causes of transition delays:

Has service delivery lagged behind new technologies?

Are clients not quite ready for digital transformations?

Have service providers lost core service delivery talent?

Is the nature of transition simply becoming more complex?


What do you think?

Why Do Transitions Struggle?


Top Reasons for Transition Delays

Provider level of experience

Client re-source

constraints

Complexity of legacy envi-

ronment

Client level of experience

Complexity of solution

Internal de-cision-mak-

ing and manage-

ment

0%

10%

20%

30%

40%

50%

60%

54%

38%

25% 21% 19% 15%


What are the underlying causes?

The line between transition and transformation is blurring. Accelerating drive to Digital introduces new challenges. Transition methodologies aren’t working. Organizational Change Management is falling short. Operational processes must continue to evolve.


The line between transition and transformation is blurring.

GEN 1 & 2 METHODOLOGY

Transition

Service Delivery

Transformation

GEN 3 METHODOLOGY:

Transition + Transformation

Enhanced Service Delivery

Clients and providers are both looking for a leap forward.


Deals with a Digital Component

68%

66% of those didn’t meet client expectations.

68% of all deals had a digital component

Approximately 45% of all deals include a digital component that did not meet client expectations.

66%


Digital Challenges

Transition Program Management need to address:

Application rationalization Cloud management Development Mindset Workflow automation ITSM tool development Scope creep

Cloud 72%58%

Analytics/Social 31%

3%Robotics

19%

3%

Automation

Mobility/Social

IOT

8%Other


Transition methodologies aren’t working Move from “lift & shift” to “transfer & transform” Identify cross dependencies between Providers and Client Involve digital SMEs in transition planning Recognize that process changes require additional OCM Understand the paradox of first-generation outsourcing Align overall Client and Provider expectations

Current methodologies are not adequate.


Organizational Change Management is falling short.

New roles

Training

New hires

Communications

New ways of working Governance

Clear understanding

of responsibilities

New relationship

s


Operational Processes must continue to evolve Create a culture of continuous service

improvement. Ensure the provider evolves

operational processes to support the digital delivery.

Prepare to rapidly incorporate and disseminate knowledge.


What do we do to solve this?

Understand and practice a blend of transition/transformation. Adapt to digital. Enhance transition methodologies. Commit to OCM. Avoid “Declared-Victory Syndrome.”

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