capioIT July Newsletter – BPaaS, Workday and Unisys, Infosys and Facebook Ethics‏‎

Attached is some of the content from the capioIT newsletter for June. To sign up for the full and free newsletter please check in here –!mailing-list-sign-up/cawx

What’s News

It is amazing to realise that we are now officially halfway through 2014. We hope that you are on track to deliver any major professional and personal goals for 2014. Currently there are some tough environments but there is still significant time left this year to achieve your goals.

capioIT spent a lot of time in June looking at the issue of disruption for legacy IT vendors. To say the impact of disruption is massive and accelerating is a huge understatement. The impact is everywhere. The good news is, that it is far from game over and not suffocating for all, serious inertia is required now in order to avoid being left behind.

One firm who is definitely undergoing a significant degree of transformation is Infosys. In late June it announced that former SAP CTO, HANA architect Vishal Sikka will join Infosys in the role of CEO. If he can transform Infosys to an asset and IP based provider he will succeed extraordinarily, if not he will potentially take Infosys with him. Given the challenges that Infosys has historically had meeting targets for IP based solutions he clearly has his work ahead of him.

In general as capioIT wrote this month, whilst the Indian based services firms are still growing, they do face significant challenges as their core differentiator of offshore service delivery has been largely combated (albeit not always successfully) by the legacy IT services providers, most notably IBM and Accenture. The key outcome of this is that the number of legacy providers has doubled in most markets. This is a key reason why it can be more difficult to get on a short list for an RFP.

The best illustration of the disruption to existing vendors has been highlighted with an analysis of market capitalisation that capioIT undertook in June. HR and Finance SaaS provider Workday has a market capitalisation of US$15B on the back of $0.5B in revenues. By contrast, industry mainstay Unisys has a market capitalisation of US$1.2B on the back of $3.5B in revenues. Unisys is profitable, Workday isn’t. The challenge is for the likes of Unisys, Capgemini, CSC and others is that Workday is the model of the future. Again to re-emphasise the point – legacy vendors have to transform end to end to have a chance to compete.

Not everyone will make it; in fact some of the biggest brands in technology will not survive the next 3-5 years. If the likes of Dell, Fujitsu and HP are to survive the next 3-5 years as legitimate enterprise providers then it will have been an extraordinary effort from their board down. Clearly it will be a bloody battle that will impact everyone around them.

A note on a key interesting client engagement that capioIT has undertook in June. For an emerging retailer we undertook a workshop on Business Process as a Service (BPaaS) and what it means for it. It was focused on defining what BPaaS meant to it on its terms, and what it could do for it and its partners with detailed insight into the transformation required. They realize that the task at hand of shifting process to platform is massive and will take time.

Finally, in late June Facebook was “caught” undertaking “research” to manipulate feeds of users. Personally this is no surprise. Facebook is not an altruistic organisation. As much as it may wince, Facebook’s objective is as dictatorial in philosophy as any one party state. Simply, control the information -> control the agenda. Now consumers could change their behaviour to force Facebook and the ilk to be more open and transparent but that is unlikely. The key technology  risk is that Facebook will set back big data in a similar way as to how NSA impacted the cloud marketplace.

Thanks for taking the time to continue to read the newsletter. We have linked to some of our key content for the month. As always, please let us know if there is any way we can support you and your business requirements, and please provide us with feedback on the newsletter to Phil Hassey.

Short insights from June

    • The Victorian Government named the CenITex bidders. The fact that only one is Australian highlights the lack of innovation in the Australian technology space.
    • India, Singapore and others have a Cabinet Minister for Entrepreneurship. The US, UK, and Australian governments do not have a full cabinet level position for science. No wonder it is Asia’s century.
    • Legacy vendors are cutting costs to make money. It is unsustainable and will lead to increased failure. Growth needs investment not cutbacks.
    • Struggling legacy and growth technology organisations have clearly realised that when organisations fail, it is often as much crippling internal process that kills them as much as customer issues.
    • There is no point of an organisation having a great Net Promoter Score if your customer base is becoming a dinosaur
    • The real organisational value of analytics won’t come from Chief Data Or analytics officer, rather from the business analyst and real users
    • A core connecting theme of IBM analytics clients – predict issues before they impact and understand and predict the cost of impact in productivity and regulatory terms.
    • IBM is finally acting to ensure a cloud first and mobile first for its analytics software and platforms. This is a slow ship to turn but it looks like IBM is making the correct moves.

How capioIT can Help Your Organisation….

End User Consulting

capioIT provides consulting to buyers of IT, primarily from a services/integration, IT Strategy and Business Intelligence or Analytics point of view.

capioIT founder and CEO, Phil Hassey started his career as a power user of GIS, and as a result has a depth of experience in understanding the role of business driven technology to gain competitive advantage.

Since capioIT’s establishment, projects have been completed in key emerging markets globally and across a range of industries. Read More….


About capioIT - Phil Hassey

If you require further information, please contact Phil Hassey, CEO of capioIT. capioIT is an advisory firm focused on helping organisations to understand emerging technology as the world becomes Digital. Phil may be contacted easily in the digital and real world. +61422231793
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