Although vendor-written, this contributed piece does not promote a product or service and has been edited and approved by Executive Networks Media editors.
The As-a-Service model promises to reshape business service delivery to provide companies with plug-in, scalable, consumption-based services, but the opportunities are vastly untapped. According to an Accenture and HfS Research survey of more than 700 enterprise service buyers, advisors and service provider executives, seven out of 10 enterprises with over $10 billion in revenues do not expect their core operations to be delivered As-a-Service for at least another five years.
Ironically, these are the companies that face the greatest pressures: demands on IT are doubling each year, but budgets are flat. There is intense pressure to improve operations using current levels of resources by moving away from legacy business models and capitalizing on the benefits of As-a-Service capabilities. Meanwhile, small and medium enterprises, and companies in areas such as Asia-Pacific, are moving more quickly.
To evaluate if your organization is benefiting from the full power of As-a-Service, consider whether your service delivery is hitting on the following eight value levers:
* Plug in: Accessing services quickly—in days or weeks, not months. Modular design means companies can mobilize and then demobilize rapidly when necessary.
* Scalable: Ramping up and down to match actual business volume needs.
* Standardized: Moving to a shared services model to standardize and scale processes and delivery. Repeatability is achieved with a multi-client and multi-tenant model.
* Consumption based: Paying based on what is used rather than committing to services or functionality that may not be needed.
* Outcome oriented: Working as part of a relationship where both buyer and provider are committed to specified business outcomes.
* Vendor agnostic: Providing deep knowledge and experience across multiple provider offerings in order to assemble just the combination of solutions appropriate to the business and performance outcomes desired.
* Innovation enabled: Committing to ongoing innovations in business processes, infrastructure and applications.
* Future protected: Shielding the buyer from the potential disruption of upgrades and future change. Services are always up to date, and buyers have continuous access to innovation, scale and in-depth expertise.
Although its potential remains largely untapped, some forward-thinking large companies have adopted an As-a-Service model with encouraging results. Deutsche Bank, for example, is in the midst of a procurement transformation, automating its source-to-pay process – including invoice processing and contract compliance management – and migrating the bank’s current on-premise procurement IT platform to an on-demand, cloud based solution. This has helped Deutsche Bank realize savings in both procurement operations and operational IT costs. The introduction of process automation and the migration to a simpler, standardized, on-demand cloud solution has helped the bank gain even more business value through greater cost control, faster procurement processing, and streamlined transaction processes.
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