automation Archive

Stepping Back from Globalization and Offshoring

A sea change is starting because of digital technologies. The impact as companies apply these technologies to their business will be massive – much bigger than the Industrial Revolution with the invention of the loom for manufacturing clothing and Ford inventing the production for manufacturing automobiles. Everyone has been talking for some time about

How to Determine Whether Automation is Worth the Cost

There is a lot of talk in the marketplace about the benefits of automation. Even so, people ask Everest Group whether automation is worth the journey. Essentially, they want to know if, after having gone through the cost and effort of automating and deploying a robotic or cognitive agent they will have saved enough

“This Time it’s Different” are Dangerous Words

“This time is different” are often thought of as the most dangerous words on Wall Street. I’ve been in the outsourcing services industry since 1983 in the early days of outsourcing pioneer EDS. I watched the rise of the asset-intensive infrastructure space. Then I watched the rise of labor arbitrage and the enormous changes

Bot Farm: Next Step Forward in Automation

In another blog almost a year ago, I called for a consumption-based pricing mechanism for automation. Like the software industry has proved, I believe the concept of moving away from a traditional software license structure to a SaaS basis makes sense in the automation space. Instead of paying for a robot, a company would

Does More Automation Mean More Profit for Service Providers?

One of the prevailing myths in the services industry is that more automation means higher profits for the service providers. The theory: as they introduce automation they reduce the number of FTEs per revenue dollar; therefore, they would get higher profits. The reality: it’s not true in the market overall. Higher profits from automation

Companies Consistently Run into Problems in Automation Efforts

It’s very clear that robotics process automation (RPA) and cognitive computing have tremendous capacity to digitize our workforce and reduce the number of back-office FTEs. Leading companies are looking at doing this in a big way, looking to automate thousands of jobs that have been performed by FTEs. But they consistently run into a

Is Technology the Reason You’re Not Achieving Performance Breakthroughs?

In my prior blog, I discussed the phenomenon that vetted, powerful new technologies such as cloud, analytics, cognitive computing and robotic process automation (RPA) should be making big differences in businesses; but for the most part, they’re achieving only modest, incremental benefits. Why aren’t they delivering performance breakthroughs? In answering this question, we need

Service Providers Face the End of Enterprise Infrastructure Function

In the new world we’re moving into, where we have a high degree of automation and hyper-scale data centers, cloud, SaaS and re-usage, why do companies even have an IT infrastructure function or department? As companies integrate their software-defined ops function with their software development function, creating DevOps, they no longer need an IT

Automated Services Need a New Licensing Structure

Service Delivery Automation (SDA) encompasses cognitive computing as well as RPA (robotic process automation). Software providers that provide SDA come to market with an enterprise licensing structure that basically requires the customer to license a number of agents for a specific length of time. But in using this licensing model, service providers unintentionally constrain

DevOps: Disruptive and Changing the Purchase of IT Services

Businesses now demand that IT departments dramatically change the velocity of the cycle time it takes to take ideas from concept to production – often from as long as 12-18 months to only four to six weeks. Organizations can’t achieve a change of this magnitude with just a change in methodology. To do this, they