The pace of change and disruption in the technology industry has always been faster than other industries. It is very easy for companies to fail â€“ Compaq, Novell, Nortel, and Nokia were all great companies which got disrupted and collapsed in a fairly short duration. The fast pace of evolution means that the threshold for failure has gone down and capital/ scale can no longer defend an untenable business model. In order to ride this wave of change and not be disrupted, current Indian IT-BPM players have evaluated what â€œCLOUDâ€ means to their business and prepared for this disruption. The implications of cloud is felt across the value chain, though to varying degrees. While there is no one-size fits all solution and players have developed strategy specific to their market place and internal assessment, an overarching requirement for competing in the cloud world has been a change of mental models for the Indian players. How to â€œthinkâ€? Succeeding in the cloud market place needs a fundamental change in how companies think about approaching their clients and markets. As demonstrated by the likes of Salesforce and Amazon, new mindset and business models are needed which is not easy given the legacy current IT-BPM players have built over the last couple of decades. In the traditional model, companies needed to focus on â€œgetting it rightâ€ the first time, develop large integrated solutions to meet end-to-end client needs, build everything to order and forge partnerships and relationships targeted towards enterprise clients. This effectively meant linear growth models for most players. In the cloud world, speed is of essence and it is critical to â€œfail quicklyâ€ and re-invent rather than have long innovation cycles. Players especially in the SaaS space think like mobile application developers of today â€“ speed to build network effects. Solutions have been modularized and â€œdesigned to failâ€ so that failure of a component does not bring down the entire application. Players have also put thought on value chains and ecosystems in the cloud stack to figure out where they would like to play and who do they partner with. This will be especially important because of the new breed of players (e.g. telcos, market pivots, startups etc) have entered the services space and also to expand customer base beyond the traditional client base. What to â€œdoâ€? IT-BPM players have re-architected their go-to-market along various dimensions in light of the cloud threat. While strategies have been customized for each player scenario, key areas of focus has been delivery models, talent and capabilities, partnerships and investments.
- Cloud enablement has led to significant delivery model changes for IT-BPM players
- New talent and capabilities have been inculcated
- Partnership and alliances baked into standard go-to-market strategy
- Key investment areas identified and strategic bets taken
- External standards and security considerations have been managed