Services Meeting 1, 7th June 2017, Mohammed Shahid Abdulla IT and Systems Area IIM Kozhikode, shahid@iimk.ac.in So, who cares about MITPS ? -Or, Why are we met here ? Participants who: Know what inroads SW has made Who hasnt hailed a taxi cab via App ? Appreciate that SW is not a monolith like before At the very least, there are multiple business models - Customised Solution, SaaS Realize that many of the big consumer and technology stories relate to IT One of our previous courses textbooks is named Marketing IT Many of these stories are immediately accessible to us, theyre not in fantasyland Feel that software is eating the world: Is behind decisions, or even mechanical devices Think it will add some value to the organization youll work for Has this course been around for very long ? 3rd year as an elective this year well have a speaker from the 1st ! Course aims to explain spectrum of IT Products, Services By products or services we mean software, not hardware Part of agenda is to dispel the discomfort that PGPs harbour vis--vis: IT Industry Tech Jargon IT Industry Business Models And to a lesser extent: IT deliverables, like SW, Developer/Maintainer Services, Sys-Integration The Impact IT products/services can have on institutions/organizations The metamorphosis of IT into Technology due to convergence Announcements Class timings: Wed 11.45AM-2PM, Fr 9.15AM-11.30PM Delays may result in missing any quiz/snap-test no compensation Textbooks in the course are of a guideline nature: Reference Marketing of IT is a pure 101 in HW-SW-P/S-Consultancy-IP The ITIL Foundation textbook is geared towards concepts in IT Services Mgt. The ability to think, answer, even oppose/object in class is valuable. We are likely tove 3-4 guest speakers (either in person, or via Skype) Avik Ranjan Sarkar and Arjun Hari, PGP18 and MITPS Alumni, on Enterprise Automation/AI, 30 Jun 10.30AM In talks with Saurabh Mahajan PGP14, Director Prod-Development Olacabs Announcements We will have quizzes at end of even numbered 2hr sessions Occasionally, also to test uptake of reading material. I could post on VC basic material before that even numbered session However, simple and easy-to-follow classroom discussion will be basis The absentee policy for the class tests is as follows: Pre-approved absence merits ROUNDDOWN(class_average)-1 Unapproved absence merits lowest_score-1 Class participation, caselet discussion, snap-tests count for 20 marks <Midterm examination>, Final examination account for 30 marks each Readings (will be many), will be uploaded to Virtual Classroom Special Incentives This is an IT Products and Services course: Youre encouraged to build an IT Product/Service/Solution, however small Novelty and application of MITPS principles will be fundamental yardstick A group of 3 may form a team to be associated with an IT Prod/Serv/Soln Combine your CP and Quiz scores (40 marks) to be evaluated against this Further leverage for SDP, IIMK Reasearch Project and Conference Grant exists Think, write-up your idea on VC (publicly), convince me before 1 July. Example projects ? Eliminate drudgery: cut Queues, solve Lack of RT Information problems ! Apply AI: see how open-source Facial Recognition can measure attendance Apply MBAs mind to small problems: Analytics module for Mom-Pop stores 2 Questions on Global IT trends Well try & answer following questions without benefit of resources: What trends in Global IT do *not* seem to be a result of corporate pressures ? Is there any leverage for the same with respect to enterprise IT ? Many industries will need newer IT and so will spend in the IT Marketplace. From time to time, new industries/models crop up that have the newest IT already factored into them. Can you name some such industries ? Just what sort is the Global IT Market ? Is it mostly retail ? Or is it corporate ? Is hardware included in this ? Are there any principles to remember while competing in IT market ? Interoperability Notion of a Solution Pricing Intellectual Property The tangible mix of what youre offering: Product Services including Solutioning Support Platform Discussion on Rossbach and Ng articles Peter Rossbach: teach B-School grads more technology: not just navigating a spreadsheet Andrew Ng: AI as electricity What is the size of the Global IT Market ? HBR, 1958, Leavitt and Whisler gave a definition of IT: "the new technology does not yet have a single established name. We shall call it information technology (IT) Spending on IT for 2016 has negative growth, but is in vicinity of USD 3.5 Trillion. The devices market (PCs, ultramobiles, mobile phones, tablets and printers) is forecast to decline 1.9 percent in 2016. IT services spending is up 3.1% from 2015. This is due to accelerating momentum in cloud infrastructure adoption and buyer acceptance of the cloud model. Telecom services spending will decline 1.2% in 2016, impacted by the abolition of roaming charges in the European Union IT Interoperability: US Healthcare as example John Halamka So what is Interoperability anyway ?: Background: US HIPPAA and HITECH Acts: Meaningful Use of EHRs, Vendors charging Interface fees despite using $30B HITECH windfall CIO.com Is Healthcare IT Interoperability (Almost) Here ?, 2013: Cut needed on $750B in annual unnecessary healthcare spending hundreds of standalone systems that create and maintain EHR Healthcare IT focused on Bus. Process Automation, not care delivery what patient care quality measures need to appear in a dashboard ? Three levels of interoperability Foundational interoperability: Data, such as clinical image files, can be exchanged from one IT system to another. Structural interoperability: The exchange of data from one system to the next can be interpreted at the data field level - it is preserved or unaltered. Ideally, this would create a uniform movement of healthcare data that remains unchanged in its operational and clinical forms. Semantic interoperability: This process would make codified data clear because systems would use the same vocabulary and there would be no discrepancies between EMRs. How to deliver ITs Value-Proposition to customers ? Product Solution Service: Remote In-Product On-Site Support Products Vs Solution Product companies may have to behave like they are selling solution: Conceive of an entire ecosystem of services that will support the product SW Products may not be useful unless suitable Complementors exist Big companies can ignore the ecosystem (e.g. Microsofts 97% revenues come from partnerships with vendors/ISVs etc), but not startups (Ashish Sinha, nextbigwhat.com, 2009) How do they differ in Messaging ? Products are Push, Solutions are Pull Concept story: solution content might not even mention a product. Its more focused on engaging the audience in a conversation, at least at first http://www.siriusdecisions.com/blog/whats-really-the-difference- between-solution-and-product-content/ (Marisa Kopec, GTM VP) Product Vs Solution -By Rob Enderle, CIO.com, Aug 2013 Discounted Bundles, Bloatware are not solutions Solutions usually come from Generalist groups/organizations Example of Dell: Sell Servers Vs. Server Management SW Product Organizations may be too focused on what they sell Solutions organizations have broad set of tools, solutions partnerships Dont ask for solution if youre replacing a broken piece of equipment Dont ask for a product when you know not whatll fix your problems Solutions organizations are true problem solvers Smart Cos. are the bane of Solutions sellers HBR 2012: customers didnt know how to solve their own problems (but now with) increasingly sophisticated procurement teams and purchasing consultants armed with troves of data, companies can readily define solutions for themselves Silver Lining: target agile organizations in a state of flux, find skeptical change agents rather than friendly informants Insight Selling and the job of Solution-salespeople as consultants. Customers come with well-scoped RFPs: get ahead of the RFP. http://hbr.org/2012/07/the-end-of-solution-sales/ So, solutioning implies Products->Services ? Many vendors are trying to manage the transition from Products to Services: Some are trying to get their Go-To-Market Messaging right. Solutions are Products combined with Services for a defined outcome One such service is that of a system integrator All product organizations seek to transition to: services on installed base due to better margins. the product organization thus seeks to increase the Installed Base. Interestingly, a recommendation to this IB-services profit centre is: An Information System that manages services http://www.iei.liu.se/externt/mba-proma/course-information/txpr16-industrial- marketing-and-pruduct-developmen/filearchive/Handouts/1.134770/A-ROliva- Kallenberg-Managing_the_transition_from_products_to_services.pdf Is there any *broadest* classification of IT ? A good choice is to classify as per this HBR article of Andre McAfee: A Strategic Information System: A Virtual Company Creating a Virtual Company
A virtual company uses IT to link
People Organizations Assets Ideas Inter-enterprise information systems link Customers Suppliers Subcontractors Competitors Buzzword of the Day SMAC Social, Mobile, Analytics and Cloud Let us discuss the following questions: Which of these drivers is absolutely the *newest* ? Satya Nadella 1st mantra is Mobile First, Cloud First. What does it mean ? Nadella also says Platforms and Productivity. What links SMAC to Platform ? How is the Social functionality leading to better enterprise software ? Remember, even Services firms like Infosys are selling a Social angle How can arbitrary software be integrated with Analytics ?