Mobility Blueprint 2015 Excerpt for NTT Data€¦ · activity to continue as much work remains in...

30
Thriving In The As-a-Service Economy Enterprise Mobility Services Blueprint Excerpt for NTT Data Ned May SVP Research, Digital Transformation Services & Solutions [email protected] A Maturing Buyer’s Market As Distinctions Across Service Providers Abate April 2015

Transcript of Mobility Blueprint 2015 Excerpt for NTT Data€¦ · activity to continue as much work remains in...

Page 1: Mobility Blueprint 2015 Excerpt for NTT Data€¦ · activity to continue as much work remains in mobilizing key processes and enabling new customer channels. Further, as the uptake

Thriving In The As-a-Service Economy

Enterprise Mobility Services Blueprint

Excerpt for NTT Data

Ned May

SVP Research, Digital Transformation Services & Solutions

[email protected]

A Maturing Buyer’s Market As Distinctions Across Service Providers Abate

April 2015

Page 2: Mobility Blueprint 2015 Excerpt for NTT Data€¦ · activity to continue as much work remains in mobilizing key processes and enabling new customer channels. Further, as the uptake

© 2015 HfS Research Ltd. - Distribution Rights for NTT Data #20150029 Proprietary │Page 2

TOPIC PAGE

Executive Summary 3

Market Overview 7

Research Methodology 17

Service Provider Profile 26

About the Author 28

Table of Contents

Page 3: Mobility Blueprint 2015 Excerpt for NTT Data€¦ · activity to continue as much work remains in mobilizing key processes and enabling new customer channels. Further, as the uptake

Executive Summary

Page 4: Mobility Blueprint 2015 Excerpt for NTT Data€¦ · activity to continue as much work remains in mobilizing key processes and enabling new customer channels. Further, as the uptake

© 2015 HfS Research Ltd. - Distribution Rights for NTT Data #20150029 Proprietary │Page 4

Market matured rapidly in 2014. HfS estimates roughly only one quarter of the Global 2000 remain in the first stage of Mobility today – what we described last year as the App Dev stage. The majority (~65%) are now in the Integration phase with only one in 10 having made it to the Transformation stage. This means that while UI /UX design is still important so too are system integration skills. As a result, we saw a respective shift in the relative positioning of service providers given their core strengths in this regard.

Every service provider moved up in terms of execution and innovation and the gap between them shrank. The shift in weighting towards integration meant fewer distinctions could be drawn in the performance of the global enterprise mobility service providers. True differentiators became harder to find as the core skills demanded around integration are widely held by all within this field.

Scale indirectly became a differentiator much to our chagrin. While HfS downplays size as a ranking criteria within our Blueprints, it creeped back into this one as the maturing market favoured those with broadest scale. Quite simply, critical mass is needed to operate effectively across all aspects of mobility – from UX design and App Development through Integration, Security, and all wrapped with deep vertical industry expertise.

Focus emerged as an import trait. While the largest service providers tended to capture a spot in the Winner’s Circle, HfS witnessed some of the largest gains in position among those who bring a focused approach to their mobility efforts be it in the realm of a particular industry or technology skill set such as testing or security. HfS anticipates this trend will continue as the market moves rapidly along to one that is not just about scale but about focus as well.

IoT showed signs of becoming the next battleground. The notion that a mobile app rollout will create some sort of sustainable advantage has come and gone. That reality led to a focus on execution this year. However, HfS now sees signs that IoT will emerge as the next battle ground for innovation – even if any leadership driven by this will again be short lived.

Looming giants are impacting the edges of the market. If size matters, few bring it like Google, Apple, Microsoft, and Amazon and each of these continue to make plays into the space. As the market matures further, look for these players to commoditize aspects of it in unique ways. e.g. Could Apple’s partnership with IBM be a Trojan Horse?

Key Highlights in Enterprise Mobility Services

Page 5: Mobility Blueprint 2015 Excerpt for NTT Data€¦ · activity to continue as much work remains in mobilizing key processes and enabling new customer channels. Further, as the uptake

© 2015 HfS Research Ltd. - Distribution Rights for NTT Data #20150029 Proprietary │Page 5

App Factories became the norm. For those enterprises needing to push out a regular stream of mobile applications, the industrialization of development took hold as App Factories. Savvy service providers addressed this by helping enterprises build, run and govern them or at the very least provided staff augmentation to help them scale up and down.

JIT training used to address the growing skills gap. With the rapid pace of change across technologies and development models, ramping up internal staff to embrace a new technology is replacing hiring as the best means to keep up with demand. This is favouring those organizations with sophisticated and well honed training academies already in place.

Cross platform development tools are increasingly robust. While it used to be a complicated challenge to address the disparate needs of iOS and Android platforms, it is getting increasingly easier to do so with the growing sophistication of development tools.

Testing rose in prominence alongside the expectations that an App will work well right “out of the box”. As end user expectations rose, so too did the demands on application development. This led to a big push among many service providers to offer third party testing – separate from their own development efforts, and we saw Testing-as-a-Service emerge as a prominent delivery model to address natural fluctuations in demand.

Blueprint Winner’s Circle. IBM, Accenture, TCS, Cognizant, Capgemini and Infosys occupy the Winner’s Circle in Enterprise Mobility Services as each has the scale to drives innovation across their respective target markets via their deep industry expertise coupled with refined technical execution.

Blueprint High Performers. Symphony Teleca, EPAM, HP, HCL, Tieto, Atos, Tech Mahindra, and NTT Data are this year’s High Performers and bring a mix of focused scale allowing them to bring robust innovation coupled with strong execution across the markets they target and serve.

Key Highlights in Enterprise Mobility Services (Cont’d)

Page 6: Mobility Blueprint 2015 Excerpt for NTT Data€¦ · activity to continue as much work remains in mobilizing key processes and enabling new customer channels. Further, as the uptake

© 2015 HfS Research Ltd. - Distribution Rights for NTT Data #20150029 Proprietary │Page 6

Enterprise Mobility Services Trends Compared to 2014

Comparatively Moving Up Deeper integration of mobile apps with legacy systems “App Factories” as development model Testing-as-a-Service Extending mobility to include Internet of Things (IoT) Cloud supported delivery Embedding analytics as part a mobility play

Comparatively Moving Down Belief that a mobile app can be a differentiator Boutiques and Agencies as application developers One off development projects not deploying repeatable IP

Here to Stay Co-innovation centers UI / UX teams in house and on-staff Security

Page 7: Mobility Blueprint 2015 Excerpt for NTT Data€¦ · activity to continue as much work remains in mobilizing key processes and enabling new customer channels. Further, as the uptake

Market Overview

Page 8: Mobility Blueprint 2015 Excerpt for NTT Data€¦ · activity to continue as much work remains in mobilizing key processes and enabling new customer channels. Further, as the uptake

© 2015 HfS Research Ltd. - Distribution Rights for NTT Data #20150029 Proprietary │Page 8

As HfS anticipated, Digital Transformation became a unifying market for IT service providers in 2014 and within it Enterprise Mobility Services emerged as a key battleground. We now expect this heightened activity to continue as much work remains in mobilizing key processes and enabling new customer channels. Further, as the uptake around Wearables and the Internet-of-things begins to spread, we expect another round of heightened innovation to drive even more activity by the start of next year. This report examines the current state of Enterprise Mobility and represents HfS’ second undertaking to rate IT Service Providers serving the market. It expands our coverage to include analysis and profiles of 23 service providers active in the market, 9 of which were not covered in last year’s report as our coverage shifted to the largest global IT services providers and away from a more diverse set of market participants.

The Four Horsemen of of Digital Disruption

…creating Business Revolution

Cloud: Accessible

Analytics: Enlightened

Social: Communal

Mobility: Ubiquitous

Enterprise Mobility Services – Why This Blueprint Today

Page 9: Mobility Blueprint 2015 Excerpt for NTT Data€¦ · activity to continue as much work remains in mobilizing key processes and enabling new customer channels. Further, as the uptake

© 2015 HfS Research Ltd. - Distribution Rights for NTT Data #20150029 Proprietary │Page 9

Enterprise Mobility – Multiple Layers of Meaning & Needs

Definitions of Enterprise Mobility often include a wide area of activity across the enterprise such as:

1. The provisioning of networks;

2. The management of devices and;

3. The creation and deployment of internal and externally directed interfaces and standalone apps. Enterprise mobility also includes the security and governance layers required to support these three core areas of activity.

Our HfS research practice for Enterprise Mobility Services is focused primarily on the Enterprise Apps area of activity although we also look at the overlaps that occur across the services specific to devices and networks as third party service providers build and enable the mobile enterprise as well as governance and security.

Devices

Enterprise Apps

Networks

Security

Go

vernan

ce

Page 10: Mobility Blueprint 2015 Excerpt for NTT Data€¦ · activity to continue as much work remains in mobilizing key processes and enabling new customer channels. Further, as the uptake

© 2015 HfS Research Ltd. - Distribution Rights for NTT Data #20150029 Proprietary │Page 10

For this HfS Blueprint Report, we define Enterprise Mobility Services as engagements where a service provider is helping to extend an existing enterprise process onto a mobile device or creating an entirely new process via such a device. These processes may be internally focused such as an HR portal or externally focused such as a customer engagement model.

Core offerings from service providers can include:

• Strategy (Innovation workshops, Roadmaps, Technology selection, etc.)

• Design (e.g. UX / UI Design and Business Process Improvement)

• Development (e.g. Application Development, Maintenance & Testing)

• Integration (e.g. System Integration)

• Managed or Outsourced Services (e.g. MDM, and Support)

• Proprietary Platforms

It includes solutions such as BYOD and security when these are bundled with a broader Mobility engagement but it does not include the standalone provisioning of these services nor of wireless network capacity. Neither does it include an engagement where the mobile element is not called out separately but is merely one of many user interfaces created unless a stated outcome of this is explicitly to mobilize a group of stakeholders.

Enterprise Mobility Services Defined

Page 11: Mobility Blueprint 2015 Excerpt for NTT Data€¦ · activity to continue as much work remains in mobilizing key processes and enabling new customer channels. Further, as the uptake

© 2015 HfS Research Ltd. - Distribution Rights for NTT Data #20150029 Proprietary │Page 11

Enterprise Mobility Services Stack

Mobile Strategy

Mobile Design (UI /

UX)

Mobile Integration

Mobile Development

Mobile Strategy

Mobile Design (UX / UI)

Mobile Integration

Mobile Development

Mobile Platforms

Page 12: Mobility Blueprint 2015 Excerpt for NTT Data€¦ · activity to continue as much work remains in mobilizing key processes and enabling new customer channels. Further, as the uptake

© 2015 HfS Research Ltd. - Distribution Rights for NTT Data #20150029 Proprietary │Page 12

2. Integration 3. Transformation

Front Office

Back Office

Mobile Commerce

Mobile CRM

Mobile HR Mobile BI

Redefined process

1.Discrete Apps

As HfS highlighted last year, enterprises generally progress through three phases of mobile adoption not unlike that of the web. As HfS also pointed out, the pace of progression is typically more rapid for mobility. What was unanticipated, however, was how fast this would occur in 2014 when a widespread shift to the realm of integration occurred across the majority of the Global 2000.

• Stage 1: Discrete Apps. Discrete apps created within silos that enable some core function such as customer engagement or field support. Often initiated outside of IT department in areas like Marketing and Sales.

• Stage 2: Integration. Disparate activities need to be rationalized across the enterprise with cohesive approach to integration and governance. Characterized by re-emergence of IT department control

• Stage 3: Transformation. Radical change brought to an underlying business process by leveraging new ways to harvest and interact with information.

A minority (25%) still here

The majority (65%) now here

Tomorrow’s leaders

Enterprise Mobility – 3 Stages of Adoption

Page 13: Mobility Blueprint 2015 Excerpt for NTT Data€¦ · activity to continue as much work remains in mobilizing key processes and enabling new customer channels. Further, as the uptake

© 2015 HfS Research Ltd. - Distribution Rights for NTT Data #20150029 Proprietary │Page 13

2. Integration 3. Transformation

Front Office

Back Office

Mobile Commerce

Mobile CRM

Mobile HR Mobile BI

Redefined process

1. Discrete Apps

Business Process

As HfS highlighted last year, each stage of adoption favors certain skills and in turn certain services providers. That means the fairly dramatic shift in the core market demand has shifted the relative rating of the service providers as well. That said, with the shift in focus to global service providers this year, the field narrowed as each had core strengths in this regard.

KEY REQUIREMENTS:

1. Discrete Apps: User experience and user interface design critical and a bit less so is the ability to scale. 2. Integration: Deep technology implementation skills a requisite and less emphasis at times on design. 3. Transformation: Business process and vertical industry insight is the starting point but all of capabilities of

design and integration will be at play.

Managed services / outsourcing continues to be an option for delivery across each phase and we saw, for example, the rise of Testing-as-a-Services and App Factories in 2014.

Enterprise Mobility’s 3 Stages Require Different Skills

Page 14: Mobility Blueprint 2015 Excerpt for NTT Data€¦ · activity to continue as much work remains in mobilizing key processes and enabling new customer channels. Further, as the uptake

© 2015 HfS Research Ltd. - Distribution Rights for NTT Data #20150029 Proprietary │Page 14

ASSESS YOUR MOBILITY READINESS

Enterprise buyers are advised to carefully match the

service provider’s skills with the need. Deep SAP

integration or snazzy UX / UI skills do not typically

reside under the same roof. Make sure you identify

what is most important for your project not what

catches your attention first.

Note, though, that capabilities differ significantly

across verticals and regions and even within each so

be sure to take analysis to the appropriate level

before shortlisting a service provider for your RFP.

MATCH NEEDS WITH A SERVICE PROVIDER’S STRENGTH

Stage 3: Transform

Stage 2: Integrate

Stage 1: Discrete

Apps

Enterprise Mobility Services –

How To Select a Service Provider

Page 15: Mobility Blueprint 2015 Excerpt for NTT Data€¦ · activity to continue as much work remains in mobilizing key processes and enabling new customer channels. Further, as the uptake

© 2015 HfS Research Ltd. - Distribution Rights for NTT Data #20150029 Proprietary │Page 15

Align billing practices with desired outcome. Recurring fees are not the right fit for transformative project yet we regularly hear of service providers setting up this payment scheme. While doing so might keep the bookkeepers happy, it is also likely to alienate the enterprise buyer on the other side of the deal as it keeps the relationship focused on short-term gains rather than strategic goals.

Align contract terms with project expectations. Having a process in place to scope, vet and sign multiyear engagements does not work well when you are signing 3 to 6 months deals. Logic suggests you should not have the same approval in place for a $50,000 deal as you do for a multimillion dollar one – yet this is the case with many service providers and enterprises today.

Be forward thinking. Make sure your project team as well as their project team keeps one foot in today (delivering value) and one in tomorrow (driving innovation). Mobility engagements offers short quick wins but they need to be carried out in the context and understanding of a greater opportunity for change. Too much focus on today will never get you to where you need to go.

Take the extra step to clarify requirements and specs at every stage. Doing so will ultimately save time. Operating in an agile fashion – whether formal or not - opens up the risks that developers assert control when they should remain order takers. If that happens, the paths they go down can create long term delays so to avoid this be explicit and clear around requirements and expectations at every stage.

Key Buyer / Service Provider Recommendations

Once you have settled on a service provider, here are additional steps to take to ensure success:

Page 16: Mobility Blueprint 2015 Excerpt for NTT Data€¦ · activity to continue as much work remains in mobilizing key processes and enabling new customer channels. Further, as the uptake

© 2015 HfS Research Ltd. - Distribution Rights for NTT Data #20150029 Proprietary │Page 16

Enterprise Mobility Services Outlook

Key Trends to Watch Out For in H2 2015 and 2016

“Transformation” likely to slowly gain ground. Just as we saw “Integration” rise above “Discrete Apps” as the number one focus of enterprise buyers within Mobility today, we expect “Transformation” to rise in importance over the coming year. However, the shift will be slower and more subtle. While that might provide comfort to some, it may actually make for a more challenging environment as steady change can go unnoticed until suddenly the shift has become profound.

Testing-as-a-Service becomes de facto approach. Enterprises are targeting a broader and broader list of operating systems with their mobile efforts as cross platform development tools continues to improve. This has created significant demands on testing. In response we have seen a few innovators roll out testing-as-a-service offerings that allows an enterprise buyer to easily spin up and down consumption based on demand. Throw in a bit of automation and some crowdsourcing and we expect testing to become a commodity market in short order.

Apps-as-a-Service begins to take root. With the adoption of testing-as-a-service and the emergence of sophisticated cloud-based cross platform development tools, the ingredients for Mobile Apps-as-a-Service are falling into place. Couple this with maturity around governance and pricing and we will be looking for the App Factory model to migrate into App-as-a-Services model in 2016.

“Digital” continues to subsume “Mobility” (and Analytics and Cloud). The trend to encapsulate the once disparate offerings delivered under Analytics, Cloud, Social and Mobility will continue to gather steam in 2015 and beyond as “Digital” gets recognized as more than the latest buzz but the unifying theme that serves a larger purpose of allowing a mix of enabling technologies to be delivered more effectively. This is more than an issue of semantics as it will begin to redefine how business challenges are thought of and approached.

Page 17: Mobility Blueprint 2015 Excerpt for NTT Data€¦ · activity to continue as much work remains in mobilizing key processes and enabling new customer channels. Further, as the uptake

Research Methodology

Page 18: Mobility Blueprint 2015 Excerpt for NTT Data€¦ · activity to continue as much work remains in mobilizing key processes and enabling new customer channels. Further, as the uptake

© 2015 HfS Research Ltd. - Distribution Rights for NTT Data #20150029 Proprietary │Page 18

Data Summary

For this effort we gathered nearly 1,000 data points covering 23 enterprise mobility service providers.

Data was collected in Q4 of 2014 and Q1 of 2015, covering buyers, service providers, and advisors / influencers of these services. If undisclosed, HfS estimated service provider revenue for Mobility Services and how it is split across consumer (B2C), employee (B2E) and business (B2B) facing apps.

This Report Is Based On:

Tales from the Trenches: Interviews with buyers who have evaluated service providers and experienced their services. Some are supplied by service providers, but many are interviewed through interviews conducted with HfS Executive Council members and participants in our extensive market research.

Sell-Side Executive Briefings: Structured discussions with service providers were intended to collect data necessary to evaluate their offerings, structure, and strategy along the lines of innovation and execution.

Publicly Available Information: Financial data, website information, presentations given by senior executives, and other marketing collateral.

Participating Service Providers

Participants were selected as the leading service providers of Enterprise Mobility Services around the globe. As such, the report compares and contrasts the best of the best in mobility today and every service provider covered is capable of meeting an enterprise buyers broad needs.

Research Methodology

Page 19: Mobility Blueprint 2015 Excerpt for NTT Data€¦ · activity to continue as much work remains in mobilizing key processes and enabling new customer channels. Further, as the uptake

© 2015 HfS Research Ltd. - Distribution Rights for NTT Data #20150029 Proprietary │Page 19

Key Factors Driving the HfS Blueprint

EVALUATION CRITERIA

Two major factors:

• Execution represents service providers’ ability to deliver services. It includes:

– Solutions in the Real World – Quality of Customer Relationships – Flexibility

• Innovation represents service providers’ ability to improve services. It includes:

– Strength of Vision for Enterprise Mobility Services

– Future Alignment with Changing Market

– Ability to Go Beyond “Stage 1” Mobility

CRITERIA WEIGHTING

Criteria are weighed by crowdsourcing weightings from the four groups that matter most:

• Enterprise Buyers

• Service Providers

• HfS Research Analysts Team

• Advisors, Consultants, and Industry Stakeholders

Significant changes between 2014 and 2015

• Execution is up / Innovation down (slightly)

• Pricing rose in importance

• UX / UI skills came down off their high

• Acquisitions rose as an important criteria

Page 20: Mobility Blueprint 2015 Excerpt for NTT Data€¦ · activity to continue as much work remains in mobilizing key processes and enabling new customer channels. Further, as the uptake

© 2015 HfS Research Ltd. - Distribution Rights for NTT Data #20150029 Proprietary │Page 20

HfS Enterprise Mobility Blueprint Scoring Percentage

Breakdown

EXECUTION 52.3%

Quality of Customer Relationships 7.4%

Quality of Account Management Team 1.9%

How Service Providers Engage Customers and Develop Communities 2.7%

How Service Providers Incorporate Customer Feedback 2.8%

Real-World Delivery Solutions 33.7%

Portfolio Alignment with Market Needs 9.3%

Partnership Ecosystem 8.1%

Existing Market Understanding Around Industry and Process 11.2%

Proprietary Delivery Models 3.2%

Standard Delivery Methods 1.9%

Flexible Pricing Models to Meet Customer Needs 11.2%

INNOVATION 47.7%

Future Alignment with Changing Market 15.6%

Future Portfolio Planning 6.2%

Skills Acquisition 7.1%

Continuous Improvement Methodology and Capability 2.3%

Strength of vision for Enterprise Mobility Services 8.1%

Ability to Go Beyond Stage 1 Mobility 24.0%

Creation of Proprietary Frameworks for Analyzing Needs 4.3%

Innovation Skills on UX / UI 6.2%

Beyond ”Device" Activity 7.2%

Core Technology Depth 6.3%

Page 21: Mobility Blueprint 2015 Excerpt for NTT Data€¦ · activity to continue as much work remains in mobilizing key processes and enabling new customer channels. Further, as the uptake

© 2015 HfS Research Ltd. - Distribution Rights for NTT Data #20150029 Proprietary │Page 21

Execution Definitions

EXECUTION How well does the service provider execute on it's contractual agreement and how well does the service provider manage the client/provider relationship?

Quality of Customer Relationships How engaged are service providers in managing the client relationship based on the following metrics: quality of account management, service provider / client engagement, and incorporation of feedback?

Quality of Account Management Team What is the quality level of professional skills in the account management team?

How Service Providers Engage Customers and Develop Communities

How well does the service provider engage clients and develop client communities?

How Service Providers Incorporate Customer Feedback

How have service providers taken feedback and incorporated that feedback into their offerings?

Real-World Delivery Solutions Does the solution provided compare favorably to peers with regard to value creation through current offerings, partnerships, subject matter expertise, and delivery models?

Portfolio Alignment with Market Needs What is the service provider’s current portfolio of services across its respective segments and what are the ways clients receive value?

Partnership Ecosystem What if any current partnerships does the service provider have across mobility and does it work with agencies, other consultants, software and / or network providers? If so, who and how?

Existing Market Understanding Around Industry and Process

What specific skills sets or competencies does the service provide bring that is tailored to unique needs of offerings for a particular industry or process?

Proprietary Delivery Models What if any proprietary software platforms and process structures has the service provider created to deliver these services?

Standard Delivery Methods What if any standard software tools and business platforms does the service provider utilized to deliver these services?

Flexible Pricing Models to Meet Customer Needs How flexible are service providers when determining pricing of contracts? Have they aligned these terms with the unique demands around Mobility projects?

Page 22: Mobility Blueprint 2015 Excerpt for NTT Data€¦ · activity to continue as much work remains in mobilizing key processes and enabling new customer channels. Further, as the uptake

© 2015 HfS Research Ltd. - Distribution Rights for NTT Data #20150029 Proprietary │Page 22

Innovation Definitions

INNOVATION Innovation is the combination of improving both services and business outcomes.

Future Alignment with Changing Market How future looking is the service provider in terms of aligning itself – both in skills and offerings – with the evolving market demand? Is it keeping pace, a fast follower, or leading the way?

Future Portfolio Planning How does the service provider anticipate its portfolio of offerings will change in the next 12 months and how well is it communicating those changes?

Skills Acquisition Has the provide made recent acquisitions in the mobility services space that have changed or extended its vision and capabilities into new emerging areas? Does it utilize other methods for new staying abreast of skills such as training academies?

Continuous Improvement Methodology and Capability

How well does the service provider execute on improving its operational process and capabilities around its solutions?

Strength of Vision for Enterprise Mobility Does the service provider have a strong vision for services across enterprise mobility?

Ability to Go Beyond Stage 1 Mobility How well have service providers integrated innovative new approaches and emerging skills and technologies into their services? Does it also bring the core technology platform to assist an enterprise deploy the next level of mobility solutions?

Creation of Proprietary Frameworks For Analyzing Needs

What if any proprietary frameworks does the service provider utilize to analyze the underlying business need?

Innovation Skills on UX / UI Does the service provider have a dedicated team or skill development around innovating user experience design? If so, how large a center and what activities are or have been underway?

Beyond "Device" Thinking Does the service provider have any IoT specific offerings? If so, what are the nature of these and how far advanced is it in building this area out?

Core Technology Depth What offerings does the service provider have regarding BYOD, security, as well as middleware?

Page 23: Mobility Blueprint 2015 Excerpt for NTT Data€¦ · activity to continue as much work remains in mobilizing key processes and enabling new customer channels. Further, as the uptake

© 2015 HfS Research Ltd. - Distribution Rights for NTT Data #20150029 Proprietary │Page 23

WINNER'S CIRCLE:

Organizations that demonstrate excellence in both execution and innovation.

• From an execution perspective, service providers have developed strong relationships with clients, execute services beyond the scope of hitting green lights, and are highly flexible when meeting clients’ needs.

• From an innovation perspective, service providers have a strong vision, concrete plans to invest in future capabilities, a healthy cross-section of vertical capabilities, and have illustrated a strong ability to leverage external drivers to increase value for their clients.

HIGH PERFORMERS:

Organizations that demonstrate strong capabilities in both execution and innovation but are lacking in an innovative vision or execution against their vision.

• From an execution perspective, service providers execute some of the following areas with excellence, but not all areas: high performers have developed worthwhile relationships with clients, execute their services and hit all of the green lights, and are very flexible when meeting clients’ needs.

• From an innovation perspective, service providers typically execute some of the following areas with excellence, but not all areas: have a vision and demonstrated plans to invest in future capabilities, have experience delivering services over multiple vertical capabilities, and have illustrated a good ability to leverage external drivers to increase value for their clients.

To distinguish service providers that have gone above and beyond within a particular line of delivery, HfS awards these service providers a “Winner’s Circle” or “High Performer” designation. The below provides a brief description of the general characteristics of each designation:

Winner’s Circle and High Performers Methodology

Page 24: Mobility Blueprint 2015 Excerpt for NTT Data€¦ · activity to continue as much work remains in mobilizing key processes and enabling new customer channels. Further, as the uptake

© 2015 HfS Research Ltd. - Distribution Rights for NTT Data #20150029 Proprietary │Page 24

EXECUTION

• Accenture, Capgemini, Cognizant, IBM, and Wipro all cited for their industry depth

- Clients stressed the need for a deep understanding of their underlying business issues to help them be more effective over time and Accenture, Capgemini, Cognizant, IBM and Wipro all had the most satisfied clients for this category.

• HCL, HP, Infosys, NTT Data, and TCS bring the most flexibility in mobility services pricing.

- Pricing is an important parameter for enterprise mobility services and clients valued the approaches taken by these service providers to match pricing models to mobility development’s new demands.

• Accenture, IBM, and Infosys lead in partnerships. - In the complex realm of emerging mobile technology,

partnerships are viewed as a critical way to deliver effectively and efficiently and these three providers were all cited for working effectively with their technology partners.

• Atos, iGate, NTT Data, Unisys, and Virtusa all lauded for their testing capabilities.

- Testing is emerging as a key battle ground as the market matures and enterprise buyers look show less and less tolerance for lapses in quality.

Major Service Provider Dynamics – Highlights

INNOVATION

• IBM, Cognizant and EPAM are aggressive acquirers as they build out Mobility skills and tech

- These service providers are actively gathering talent and technology by acquiring emerging service providers that lead in a particular niche. In a hyper competitive field, it is a sure fire way for large companies to stay ahead.

• IBM, EPAM, Accenture, CI&T, and TCS all cited for their UI / UX design capabilities.

- Though we saw a decrease in the relative importance of UX / UI within the overall rating criteria, it remains a key element and these service providers were all scored high by enterprise buyers in this regard.

• Tech Mahindra, CSC, Atos, NIIT and Wipro rated highly around IoT

- Enterprise buyers indicated they are beginning to think beyond simple mobile devices as they look out toward future plans and collectively they rated these five service providers as particularly strong in working with the Internet of Things.

Page 25: Mobility Blueprint 2015 Excerpt for NTT Data€¦ · activity to continue as much work remains in mobilizing key processes and enabling new customer channels. Further, as the uptake

© 2015 HfS Research Ltd. - Distribution Rights for NTT Data #20150029 Proprietary │Page 25

INN

OV

ATI

ON

Enterprise Mobility Blueprint Service Provider Matrix

EXECUTION

Winner’s Circle

High Performers

Page 26: Mobility Blueprint 2015 Excerpt for NTT Data€¦ · activity to continue as much work remains in mobilizing key processes and enabling new customer channels. Further, as the uptake

Service Provider Profile

Page 27: Mobility Blueprint 2015 Excerpt for NTT Data€¦ · activity to continue as much work remains in mobilizing key processes and enabling new customer channels. Further, as the uptake

© 2015 HfS Research Ltd. - Distribution Rights for NTT Data #20150029 Proprietary │Page 27

Relative Strength Across Stages of Mobility Adoption

NTT DATA Deep resources and strong project management skills makes it a good choice for complex integration efforts. High Performer

Client Industry Verticals Key Clients Global Operations Technology Offered

Focus on Key Verticals: • Financial Services & Insurance (includes

Banking) • Commercial (retail, manufacturing,

automotive) • Public Sector • Healthcare

Revenue Mix: • 25% B2B • 75% B2C

Targets the midmarket to large enterprises

Clients Include: • Banking and financial services in all the

regions • Global automotive group • Large telecom companies • Global travel company • International transport company • Major airline

Mobility Headcount: • ~1,500 FTEs

Key Delivery Locations: • China • India • Canada • Romania • Italy • Brazil

Acquisitions: • Optimal (2013, SAP) • everis (2014, Spanish speaking region) • EBS (2013, Romania)

Proprietary Platforms & Software: • DyMoRa, MERMaides, BizMonolis, nREAP,

MoRe, iLIbrary, VT-Docs, M-Ticketing, SocialSync Relation

Key Partnerships: • SAP, Oracle, HP Exstream, SalesForce.com,

AirWatch, Mobile Iron, AppAround, Good Technologies, Verivo

2014 Mobility Revenue / Growth: HfS Est.: $190M (1% / 50% exc. Japan)

Strengths Challenges

• Cited by clients as having strong project management teams that do not nickel and dime every change order but rather delivery under the spirit of the original deal.

• Very acquisitive as an overall enterprise which means it is regularly refreshing its talent base and overall energy.

• As a leading service provider to Japanese Telecom market it maintains a very big R&D focus in mobility and makes it a leading innovator.

• Buyers see a willingness to be innovative around pricing models to structure deals that are win-win in mobility.

• Deep legacy expertise and robust partnerships in the B2Employee space with SAP and Oracle make it a very good choice.

• Able to deliver best in class of security design and architecture if it’s required.

• Seen as being a bit too literal at times as clients cited the need to make sure their underlying intent is very clear before embarking too far down a development path.

• As an aggressive acquirer, the enterprise struggles a bit to integrate all its disparate parts around the globe and this leads to confusion around capabilities as overlap and gaps exist region to region.

• It remains dominated by its Japanese business, while the efforts to increase its global footprint are definitely progressing.

Stage 3: Transform

Stage 2: Integrate

Stage 1: Discrete

Apps

Page 28: Mobility Blueprint 2015 Excerpt for NTT Data€¦ · activity to continue as much work remains in mobilizing key processes and enabling new customer channels. Further, as the uptake

About the Author

Page 29: Mobility Blueprint 2015 Excerpt for NTT Data€¦ · activity to continue as much work remains in mobilizing key processes and enabling new customer channels. Further, as the uptake

© 2015 HfS Research Ltd. - Distribution Rights for NTT Data #20150029 Proprietary │Page 29

Ned May

[email protected]

Senior Vice President, HfS Research

Overview

• Ned’s remit at HfS is to develop cutting edge research focused on the business impact of emerging technologies across the full spectrum of IT services. His coverage areas include digital transformation with a focus around cloud computing, enterprise mobility, and analytics.

- As a senior adviser to IT and business executives, Ned combines a love of long term thinking with a strong appreciation for excellence in execution.

- Over his nearly 20 year career, he has helped hundreds of clients navigate and capitalize on changing landscapes and led diverse research teams while launching and running new products often aimed at directly cannibalizing existing offerings.

- He is an acknowledged industry advisor, strategist, author, and speaker.

Previous Experience

• Vice President and Practice Leader, Outsell Inc. Authored groundbreaking studies on the impact of emerging technologies, the evolution of business information, and the new opportunities presented by mobile interfaces. Oversaw the development of an interactive online benchmarking tool serving executives.

• Program Manager, IDC. Ran the Worldwide IT Services research program and covered the largest global players during the emergence of offshore outsourcing and utility computing. Was also responsible for the creation of the Worldwide Quarterly Services Tracker – a successful product which continues to this day.

Education

• MBA, summa cum laude, from Babson College • BA from Bowdoin College with a double major in Economics and Government

Page 30: Mobility Blueprint 2015 Excerpt for NTT Data€¦ · activity to continue as much work remains in mobilizing key processes and enabling new customer channels. Further, as the uptake

© 2015 HfS Research Ltd. - Distribution Rights for NTT Data #20150029 Proprietary │Page 30

About HfS Research

HfS Research is the leading analyst authority and global network for IT and business services, with a specific focus on global business services, digital transformation, and outsourcing. HfS serves the research, governance, and services strategy needs of business operations and IT leaders across finance, supply chain, human resources, marketing, and core industry functions. The firm provides insightful and meaningful analyst coverage of best business practices and innovations that impact successful business outcomes, such as the digital transformation of operations, cloud-based business platforms, services talent development strategies, process automation and outsourcing, mobility, analytics, and social collaboration. HfS applies its acclaimed Blueprint Methodology to evaluate the performance of service and technology in terms of innovating and executing against those business outcomes.

HfS educates and facilitates discussions among the world's largest knowledge community of enterprise services professionals, currently comprising 150,000 subscribers and members. HfS Research facilitates the HfS Sourcing Executive Council, the acclaimed elite group of sourcing practitioners from leading organizations that meets bi-annually to share the future direction of the global services industry and to discuss the future enterprise operations framework. HfS provides sourcing executive council members with the HfS Governance Academy and Certification Program to help its clients improve the governance of their global business services and vendor relationships.

In 2010 and 2011, HfS Research's Founder and CEO, Phil Fersht, was named “Analyst of the Year” by the International Institute of Analyst Relations (IIAR), the premier body of analyst-facing professionals, and achieved the distinctive award of being voted the research analyst industry's Most Innovative Analyst Firm in 2012.

In 2013, HfS was named first in rising influence among leading analyst firms, according to the 2013 Analyst Value Survey, and second out of the 44 leading industry analyst firms in the 2013 Analyst Value Index.

Now in its seventh year of publication, HfS Research’s acclaimed blog “Horses for Sources” is widely recognized as the most widely read and revered destination for unfettered collective insight, research, and open debate about sourcing industry issues and developments. Horses for Sources today receives over a million web visits a year.

To learn more about HfS Research, please email [email protected].