2006/10/06 16:35 Val Rahmani, "Injecting Science into the Art of Services: A Perspective from IBM Global Technology Services"

2006/10/06 16:35 Val Rahmani, "Injecting Science into the Art of Services: A Perspective from IBM Global Technology Services", SSME - Education for the 21st Century Conference, IBM Palisades, New York

Services Science, Engineering and Management Conference, at IBM Palisades, October 6-7

This digest was created in real-time during the meeting, based on the speaker's presentation(s) and comments from the audience. The content should not be viewed as an official transcript of the meeting, but only as an interpretation by a single individual. Lapses, grammatical errors, and typing mistakes may not have been corrected. Questions about content should be directed to the originator. The digest has been made available for purposes of scholarship, posted on the Coevolving Innovations web site by David Ing.

Val Rahmani, General Manager, Infrastructure Management Services, "Injecting Science into the Art of Services: A Perspective from IBM Global Technology Services" 

Have been in IBM hardware, moved to services in March

Could use help in research

Have come from a product mentality

IBM has products and services, but how do we put them together

  • Services are 50% of revenue, but less than 50% of profits

CEO Study, with CIO implications

  • Innovation starts at the top
  • Innovation isn't just products and services, it's business model innovation
  • Collaboration is more important, need to be both internal and external
  • Gap between 80% knowing what we need to do, and 20% saying that the they know how to do it

Partners and customers edge out employees for ideas

  • R&D is #5

IT services market is changing

  • Used to think we could sell standalone services, now want integrated solutions
    • Customer doesn't want to be beta tester, integration by FedEx (meaning assembled when it arrives)
  • Not full-scope outsourncing, now want selective out-tasking (e.g. call centre, payroll, security, etc.) so that I can see real value and doesn't lock me to one supplier
  • From customized offerings (where they pay extra) to standardized services
    • e.g. 17-1/2 windows cost $2500, 18" windows cost $200
  • Local labour goes to global delivery (which may mean make whole services into a process)
  • Labour-based models, moved to asset-based models (meaning anything repeatable and scalable, e.g. methods, software)

GTS Strategy:

  • Globalize: traditionally, have had local teams working with person power
    • When make them assets, the people will have less power
  • Simplify: Don't have the skills, make a simple set of steamlined portfolio
  • Standardize
  • Automate: If can't standardize, automate
  • Have put some work in India right beside Research Labs

Can services be more like products?  Business Week Online

Ten Service Product Lines cover all of our IT services:

  • IT Strategy and Architecture: middle-skilled consultant with better tools
  • ....

Most interesting places for security services

  • Biggest cost in security is people, particularly doing stuff that could be automated

Similar approach in server services

[Questions]

Missing link is not in innovation, but whether it's easy to use?

  • Yes

Don't automate me, informate me.

Privacy.  Have non-technologists involved in planning

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