Capgemini’s TechnoVision:Survival Tool for theDownturn

Addressing the New Challenges – and NewSolutions – Raised by the Downturn

the way we see it

help them address the questionsraised by the downturn, notably:

• Changes in business priorities meanchanges in business drivers and theappearance of entirely new businessdrivers – but which changes andwhich new drivers?

• In the previous downturn,information technology (IT) wasseen by many as part of theproblem; now it is often seen aspart of the solution – what does thenew contribution of technology tobusiness look like, what impact canbe expected and within whattimeframe can tangible results bedelivered?

• Despite the contribution oftechnology, IT costs are still atempting target for cost cutting –where do cuts make sense andwhere can IT actually save money inthe business?

Capgemini’s TechnoVision providessignificant help in addressing

these difficultquestions.

Today’s uncertain economicenvironment leads to significant shiftsin business priorities for mostorganisations. Access to capital ismore difficult, so financing newbusiness initiatives or even workingcapital becomes a challenge. Lack oftrust hampers the functioning ofbusiness ecosystems. Companies inindustries like manufacturing andretail face unprecedented drops indemand. Consumer habits changerapidly, closing existing opportunitieswhile opening new ones. And for

some organisations, survivalbecomes the one and only

objective.

In this new context,organisations

require newtools to

TechnoVision Brings BusinessTechnology to LifeTechnoVision is Capgemini’s approachto mapping emerging technologysolutions and determining how thesesolutions relate to the business needsof a particular organisation orindustry. This provides much-neededclarity to business and technologyexecutives in order to understandeach other, focus efforts and worktogether effectively. More than ever, inthe downturn we need technologysolutions that directly addressbusiness requirements and can beimplemented quickly and effectivelyin the nearest proximity of thebusiness: this is where “informationtechnology” evolves into genuine“business technology.”

TechnoVision has two objectives insupporting this evolution. First, itaims to offer clarity on emergingtechnology solutions by categorisingthem into 17 trends and thenconveniently grouping them intoseven clusters (see the accompanyingillustration). Second, TechnoVisionaims to provide a betterunderstanding of the relationships

between business and technology,using a simple, but highly

effective matrix approach.

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Capgemini’s TechnoVision provides a proven, yet simple approach to align the needs of the business withthe power of emerging technology solutions. This is all the more relevant in a period of economicdownturn, in which new challenges – and new solutions – need to be considered with focus, dedicationand the right timing. TechnoVision provides exactly these qualities, making it an excellent “survival tool”for the downturn.

keywords here are simplification,standardisation and rationalisation;concepts that obviously resonate wellwithin the current economic climate.

In addition to these six operationalclusters, TechnoVision incorporatesone technology cluster – “OpenStandards and Service Orientation”– that is not operational in itself, butunderpins all the others. Here we findthe design qualities that can make thedifference between a successfulbusiness/technology transformationand uncontrolled failure.

More information about these clusterscan be found in an earlier report,“TechnoVision 2012: BringingBusiness Technology to Life.”

Making the Link BetweenBusiness and TechnologyTo understand how these technologyclusters relate to the business,TechnoVision uses a simple andelegant matrix approach: on one axis,the matrix describes the key “businessdrivers” within an organisation and onthe other axis the six technology

The Seven Clusters ofTechnoVisionCapgemini’s TechnoVision visualisesthe seven clusters in an architecturaldiagram. With the proper amount ofimagination, one could see thecontours of an iPod-like device in thisdiagram. And why not: The “scrollwheel” at the top of the structurecontains two clusters (“YouExperience” and “From Transactionto Interaction”) that consist of fast-moving, highly dynamic technologysolutions that can have a far-reachingimpact on systems, solutions andentire business models.

Solutions in this top area typicallyinspire organisations because theycontain all the ingredients for real,forward-looking change. They help toenvision compelling future scenariosthat literally act as a magnet fortransformation. In the period ofdownturn, solutions in these clustershelp to find new, unexpected ways todeal with seemingly unsolvablechallenges. Also, they may provide aroute to fresh, yet unexplored growthopportunities.

In the middle area, we find twocrucial clusters (“Process-on-the-Fly”and “Thriving on Data”) that helporganisations build new capabilitiespertaining to flexible business processmanagement and deep data insight.These are the capabilities companiesneed in order to flourish in the“network of everything.” As they arecapabilities that often directly addressthe typical ad-hoc business drivers ofthe downturn, they take centre stagein the strategy plans of today.

However, innovation, flexibility andinsight require a proper foundation.And this is what the bottom area(with the clusters “Sector-as-a-Service” and “InvisibleInfostructure”) can provide in termsof technology solutions that helporganisations run the non-differentiating part of both IT andbusiness as a utility-style service. The

the way we see it

Capgemini’s TechnoVision: Survival Tool for the Downturn 3

Identifying the Technology Trends That Matter Most

Real-TimeIntegratedBusiness

Intelligence

Real-TimeBusinessProcessControl

MashupApplications

Sensing NetworksPackaged Sector/

Segment Solutions

Smart BusinessNetworks

Software-as-a-Service

iPodification

Jericho-StyleSecurity

MasteredData Management

SocialCollaboration

Tools/Wikinomics

Role-Based User Portals

UtilityBusiness

Infrastructure

Rich InternetApplications

Googlefication

Free AgentsNation

CompositeApplications

Source: Capgemini

Capgemini’s analysis of technology developments led us to identify 17 important technologytrend areas that have a profound effect on business. We then structured these 17 buildingblocks into seven technology clusters.

clusters are positioned. Businessdrivers typically “drive” theorganisation forward both in terms ofissues that need to be resolved andopportunities that need to be grasped.They are specific to every individualorganisation (although market-specificbusiness driver categories have beenidentified by Capgemini to acceleratethe analysis) and they are described inaction-oriented, “smart” terms.

To identify the relationship betweenbusiness drivers and the technologysolutions, we focus on twocorrelations. First, how do thetechnology solutions address abusiness driver, bring it to a higherplateau of performance or evenresolve it? To answer this question of“impact,” we use four indicators:

1. The technology is the Cause of thebusiness driver; in other words, it isthe trigger for the emergence of thebusiness model itself.

2. Or the technology is a Must; inother words, it is vital andindispensable in addressing thebusiness driver.

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3. Or the technology is Helpful: asupportive element in dealing withthe business driver, but the drivercould be addressed without thetechnology solution.

4. Or, finally, the technology is notrelevant to the business driver atall.

Second, proper prioritisation is addedto the relationship between the driverand the technology to decide whethera particular topic is to be taken upimmediately or at a later time.

Creating a TechnoVision matrix thusconsists of identifying andunderstanding the crucial businessdrivers of an organisation, mappingthem to technology solutions in theclusters and then ranking both theimpact and the timing aspects of thesesolutions, relative to the business

The TechnoVision Matrix

drivers. This is a highly valuableexercise that provides the vital insightthat is needed to make the rightdecisions in the face of the downturn.

TechnoVision in the DownturnUnderstanding the impact of emergingtechnology solutions on businessdrivers, as described in Capgemini’sTechnoVision, enables organisations –especially in the downturn – to:

• Liberate themselves from theconstraints and costs of thecurrent systems and solutions,which typically consume a lot ofbudget and IT and managementattention, without necessarilyproviding real differentiation.

• Move towards businesstechnology solutions and awayfrom the traditional thinking aboutinformation technology. Businesstechnology typically empowers theusers to be in more direct control ofthe technology needed to performtheir tasks. This is an absolutenecessity to deal with the quicklysurfacing challenges of a difficulteconomic climate.

• Gain agility, transparency andcontrol through Service-OrientedArchitecture and the concept ofservices, which build the necessarybridges between technology andbusiness.

• Link through open standards,allowing organisations to connecttheir own components as well asconnect with partners and clients orcustomers.

In today’s economic downturn thesebenefits are important, butTechnoVision also allows companiesto address new questions and newbusiness drivers. Harnessing thepower of TechnoVision in the currentclimate requires two key steps:reworking the business drivers andrethinking the use of the technologyclusters.

Source: Capgemini

the way we see it

Capgemini’s TechnoVision: Survival Tool for the Downturn 5

Reworking Business DriversThe downturn obviously andunavoidably changes businesspriorities. An immediate consequenceis that the business drivers of yourorganisation change too. The existingdrivers must be re-examined andconfirmed, amended or dropped. Atthe same time, new ones may beadded.

Capgemini has identified eight areasof business priorities that are typicalto the downturn, based on theexperience of numerous client cases.This list, of course, is not meant to beall-inclusive and it is essential thatcompanies tailor the priority areas totheir own operation.

1. Operational cost and cash: Evenmore than cost control, whichoften brings savings only later,preservation or even generation ofcash today is crucial. “Cash is king”is now more true than ever.

2. IT cost and cash: The ITdepartment also has to make itscontributions in a downturn bylooking at every dollar or eurospent. Application portfoliorationalisation, server virtualisationand the energy bill are areas to lookinto, as is the spend on non-criticalnew developments.

3. Customer focus and sales: Cutsshould not be at the expense of thecustomer experience, which isessential to maintaining or evenexpanding market share. Sellinggoods and services at the rightprice level in a fast-changingenvironment is a key capability,requiring a focus on areas such asprice/revenue optimisation.Customer preferences will changefast in the downturn, for instancetowards “substitution” goods orservices. So a relentless focus onthe customer is crucial.

4. Products and services: It is timeto analyse where you are reallymaking money and where not.Which goods and services arereally contributing to profit andwhich are margin dilutive?

5. Supply chain and partners:Supply chains need to become leanand agile. Inventory buffers need tobe reduced as they tie upunnecessary capital, and thecontinued volatility in supply anddemand means that responsivenessin supply chain planning andexecution becomes key.

6. Workforce planning and HR:Communication and motivation areimportant in uncertain times.Headcount reductions aresometimes unavoidable and needto be handled swiftly. The

Priority Areas in the Downturn

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remaining workforce must becarefully allocated to optimiseoutput and service levels.

7. Trust and transparency: Lack oftrust and transparency almostbrought the finance industry to itsknees. Restoring these attributes isessential – for clients, for regulatorsand for the broader community,which is expecting responsiblecorporate behaviour now morethan ever.

8. Rising in the recovery: Andfinally, among the survivors, thewinners will be those that keep aneye on what to do when thingsturn around. How to expandmarket share, how to attractcustomers that others used toserve, how to invest against theodds.

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To take into account the currenteconomic environment, theTechnoVision matrix can be builtusing the business priority areas asexamples for the shifting businessdrivers. Again, customising thepriority areas to your own business iskey to effective use of TechnoVision.

How the Technology ClustersApply in the DownturnWe can now look at the matrix withthe shifting business drivers andevaluate how the technology clustersshould be contributing to address thechallenges of today. We believe thatthe re-examination of what is donewith each technology cluster is auseful way to respond to the currenteconomic situation – specifically,rather than through general,undifferentiated steps like across-the-board cuts. The work under way ineach technology cluster can continueunabated, be accelerated, be amended(for example, through a reshuffling ofpriorities), or be dropped or frozen.And new work can be added – forexample, to provide management withnew tools to cope with the downturn.

To understand how the clusters canbe used most effectively, werecommend examining separatelythree groupings of the operationalclusters as well as the seventh, non-operational cluster, and applying themas appropriate to your own business.

The two top clusters – YouExperience and From Transactionto Interaction – together representthe possibility of rapid innovation forbetter communication and peoplenetworking. They can be used tobuild new tools for the downturn (“D”Tools) to help executive andoperational management cope withthe harsher circumstances.

For example, in the downturn,relationships – inside the organisationand between the company and itsclients and partners – suffer; thesurvival instinct dominates. These twoclusters are of prime importance forpreserving the relationship withclients (or citizens in thepublic sector).

The Role of the Clusters in the Downturn

CREATE“D” TOOLS

PROTECTESSENTIALS

ACCELERATEFOR SAVINGS

ACCELERATEFOR SAVINGS

Source: Capgemini

the way we see it

These clusters are also instrumental inbuilding trust, cohesion andtransparency. With these kinds ofactions, the business technologyorganisation can seize the initiativeand demonstrate that they are part ofthe solution.

The two intermediate clusters –Process-on-the-Fly and Thriving onData – are the essential link betweenthe operational foundations ofbusiness technology and theinnovation “wheel” at the top. Theyrepresent some of the core capabilitiesto keep your organisation running,and to differentiate yourself from thecompetition through better processesand more clever use of data.

When looking for savings, executivesmay see these two clusters astempting targets, as a substantial partof the budget may be allocated tothem. However, many of thedownturn issues – as seen in thebusiness priority areas – depend onthe successful mining of every sourceof data, and on additional processflexibility. Even more importantly,restarting the machine of these twoclusters when things are looking upcan be a costly and lengthy process.

In view of these factors, we proposethat the overriding objective withregards to these clusters is to protectthe essentials. Some of the keyprojects need to keep going, to avoidregression. And the core capabilities,which are much in demand even in adownturn, need to bepreserved.

Additionally Service-OrientedArchitecture is needed more than everto make these substitutions ofbusiness services possible. In thedownturn, a new sense of urgency hasto prevail.

Looking at the sum of these four setsof actions – involving all theTechnoVision clusters – we can seebusiness technology contributing in amajor way to rising in the downturn,delivering on all the business priorityareas.

TechnoVision as Survival ToolGiven the severity of the economicdownturn, it’s easy to simply hopethat the storm will pass. That thecritical questions – What do we needto address? Why do we do this? Canwe do it for less money? Can we do itfaster? – will remain unasked if weavoid any noise.

The contrary is true. Passive attitudes,like the ostrich with its head in thesand, do not work in downturnsituations. Taking the initiative –using the powerful tool ofTechnoVision – is a key to masteringthe downturn.

Capgemini’s TechnoVision: Survival Tool for the Downturn 7

Business technology can thereforeteach the rest of the organisation –where similar situations no doubt exist– the art of intelligent cost cutting.

The foundation clusters – Sector-as-a-Service and InvisibleInfostructure – may not look likeeasy targets for savings as they formthe foundation to keep the operationsrunning. But these basic functionsoften represent non-differentiatingservices that can be replaced by morecost-effective solutions or be sourcedexternally.

Under normal circumstances, thesechanges will be adopted with greatcaution, so as not to rock the boat ofthe operations. In the downturn, amore aggressive approach is justified.The objective is to accelerate the paceof change, knowing that major savingsare possible in a shorter term thantraditionally thought. For example,cloud computing can be consideredfor services that are not directlymission critical or truly differentiating.

Finally, the non-operational cluster– Service Orientation/OpenStandards – offers new possibilities,coming from outside the organisation.With the further adoption of openstandards, the time has come to re-examine the standards governing theorganisation. Open source oftencombines open standards with a priceadvantage, making it a very attractivealternative.

www.capgemini.com/technovision

©2009 Capgemini. No part of this document may be modified, deleted or expanded by any process or means without prior written permission from Capgemini.

Rightshore ® is a trademark belonging to Capgemini.

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Capgemini, one of theworld's foremost providers of

consulting, technology and outsourcingservices, enables its clients to transformand perform through technologies.

Capgemini provides its clients withinsights and capabilities that boost theirfreedom to achieve superior resultsthrough a unique way of working, theCollaborative Business Experience™.The Group relies on its global delivery

model called Rightshore®, which aimsto get the right balance of the best talentfrom multiple locations, working as oneteam to create and deliver the optimumsolution for clients. Present in more than30 countries, Capgemini reported 2008global revenues of EUR 8.7 billion andemploys over 90,000 people worldwide.

More information is available atwww.capgemini.com

About Capgemini and the Collaborative Business Experience™

For more information on Capgemini's TechnoVision, pleasecontact your local Capgemini office or the authors directlythrough technovision@capgemini.com