Another interesting post on robotic automation versus offshoring from Ann All at Global Delivery Report. In addition to quality coverage, it does possibly, ahem, position Ann within a certain generation (indeed, my own). Do you remember the Jetsons? Bet you can’t remember the name of the robot maid – Ann has the answer to that too.
Archive for November, 2012
Yesterday I attended the Operational Agility Forum Steering Group’s seventh meeting hosted by Npower in Swindon. Attendees includes both large enterprises and BPOs. The focus is on business process. It was a lively and interesting debate and I learnt some important stuff.
In implementing an OA strategy, most members subscribe to a Eliminate/Automate/Offshore (EAO) methodology. Firstly using tools like Lean to reduce process labour, then automating and finally offshoring as a means of reducing cost for processes that cannot be automated. Of course, there is still very much an onshore presence for customer service and political reasons.
When using automation tools like Blue Prism – they need to sit as part of the operational strategy, not the IT strategy. IT guys in the room all subscribed to the need for IT to provision the tools, create scalable hardware and provide governance and support. But agility only comes when business ops control their own destiny, build their own processes, choose their own priorities.
Culture is an important success factor with some subscribing to the idea that Business and IT should share the same KPIs to align objectives and motivations. One member had outsourced business processes to Accenture and noted that their KPI alignment delivered enormous agility.
It is also clear, as with any initiative that involved cost reduction as one of its objectives, the cultural side of change is important. It was interesting note that, of the Blue Prism users in the room who had between them reduced their FTE headcount by many hundreds, not one single worker had been made redundant as a result. There is a soft side to change that needs to be taken care of.
Would you rather work in banking or energy retail? Bit like being an estate agent in the 1980s. Easy targets for the press, the public and the Government. But there is a bit more to the stories when you scratch under the surface. Despite recent scandals, much good is done by banks and energy cos that is overlooked in the furores. It seems one company has had enough of the bad press.
Following a staunch defence of British Gas profits last week, in an article in The Daily Telegraph today, the CEO and chairman of SSE, one of the “big six” British energy companies, both argue that their company needs to make profits to “employ people, pay tax, provide services that customers need, make investments that keep the lights on and create jobs”.
My experience of retail energy suggests it focusses as hard on operational efficiency as any other industry I could name. Pricing is always a controversial topic as one imagines freezing cold pensioners on Christmas day contrasted with fat cat bosses sunning themselves on the Med. But the retailers are at the mercy of wholesale energy prices and, even if, as alleged, they had a hand in rigging the wholesale price, this hasn’t resulted in exceptional profits. I would prefer my pension fund to invest in non-energy stocks at the moment.
More follow up from the Horses for Sources blog post that has been picked up by CIO Magazine.
It’s another interesting take, but I wonder if there is room for more CIO reaction? And what’s in it for the IT function at all levels? There are real technical and strategic advantages from extending the value of your already stretched resources by delegating and empowering business ops to self serve solutions against a controlled set of challenges.
Flak flying from the Horses for Sources article about Robotistan (see my previous post) has now reached the UK offices of Computer Weekly. Karl Flinders, on his Inside Outsourcing blog points out that “Automation software is providing businesses with a real alternative to cheap offshore labour” especially if the software enables business users rather than major IT programs to design and build the automation.
Analyst firm, Horses for Sources, who are driving most of the adventurous thought leadership in the global outsourcing industry, have taken a look at Blue Prism and made their views public on their lively and provocative blog.
In a humourous post, James Slaby argues that robots will drive down processing costs for BPOs and reduce the need to offshore for cost saving reasons. If you get the automation strategy right the economics are “jaw-dropping”.
“Outsourcing has always been about people, process and technology. Scratch that. It’s about process and technology, with people an optional extra…..” – Read the rest of the blog post here.