James Champy has written a very important column Business Process Decisions Require Executive Involvement, not just Support.
Champy argues that IT has become so intertwined with Business Strategy, Tactics and Operations all the way from shorter cycles for everything – prospecting business, signing up new business, manufacturing and delivering.Quicker, better and cheaper, being the driving force in every industry and services business.
It is not enough if you process a Mortgage Application in a month’s time like you used to before. Your competitors have automated a lot of the process and are doing it in ten days. It is not enough if you ship the ordered goods in ten days time. Next day delivery is the norm these days.
I would extend this to IT/ITES service providers in India and elsewhere. I would venture to say that Business Process Decisions require the involvement of captive and third party providers of shared or outsourced services. In many business processes parts of the business process are done offshore, often replicating how things were done before in the home country.
This may not be enough anymore. Cost savings in sending the business process off to India is of no use if your competitor takes away your business because they can do it here in the U.S in 10 days instead of your cycle time of 15 or 20 days. Offshoring it will be of no use if you less mortgages to process. The outsourcing/offshoring effort and transitioning the existing process takes away valuable time you should be spending in improving your own processes so that it matches your competitors’.
ITES providers may need to be actively involved in Business Process Decisions and in many cases, have an IT arm that is looking for additional business. This is a golden opportunity for service providers to offer services that combine ITES and IT improvements before the process is put in operation. The distinction between IT and ITES services should vanish over time and it should be a single IT Enabled Business Process consulting and implementation services offering.
Being involved in redesigning and innovating new business processes with the help of newer technologies will enable ITES providers truly move up the value chain at a time when it is most needed.
As long as the cost savings are being emphasized and seized upon as the primary driver for outsourcing and offshoring, both buyers and providers are missing the forest for the trees.
Very important and timely article from Champy!