Launching

I believe that there is an increasing tendency for adoption of as-a-service operating models. These models focus on pay-for-outcomes as opposed to pay-for-effort. Organizations of all sizes and orientation are weighing the merits of buying defined services at defined prices as part of a broader strategy to reduce the deployment of capital, improve the agility of their operations, and leverage capacity that is provisioned variably in response to demand. 

Product-oriented companies that previously sold and delivered discrete components are needing to reorient their go-to-market and delivery models to respond to the buy-side interest in service-based offerings. These transformations encompass the entire spectrum of demand generation, sales, service delivery, client relationship management, and commercial contracting. Changes to financial reporting (e.g., revenue accounting, taxation, etc.) and supply chain networks are also implied.

Buy-side organizations (governments and commercial enterprises) are driving organizational and operating changes to more efficiently engage in service-based operations, whether these are internally provisioned, contracted to third-parties, or fulfilled as some form of market venture. The changes typically encompass resource realignment/restructure and shift of expense from CAPX to OPEX categories.  The design and implementation of enterprise shared services, for example, is one form of service-based operating construct. 

The transformation of business processes and operating/reporting functions to fully realize the benefits of this shift - as applied to either the provider of services or the consumer of services - requires considerable expertise across the spectrum of organizational change management; commercial contracting; monitoring, reporting and risk management; financial modeling; and asset management. New internal expertise is needed to fully realize the benefits of a buy-vs-build approach to business. Enabling trends that are accelerating the shift to service-based operations include Social Networks, Mobility, Big Data Analytics, and Cloud Services.  Open Source has its role as well. 

I will be leading a global practice committed to enabling successful adoption of "as-a-service" ecosystems. This means that we guide both those who want to buy service-based offerings and transition away from legacy resource-based models to make the shift. We also assist those organizations who seek to take service-based propositions to market to implement the commercial and operating structures to do so. This latter group includes both traditional product companies and newer-age participants in the "as a service" economy. 

I will be an advocate for the transformation towards SMAC-enabled "as a service" ecosystems. 

I decided that the best way for me to participate in this trend is from the vantage of architect, advisor, and implementation leader. I am building a team of like-minded consultants who will work through the methods of transition from resource-based operations to service-based. 

I have tested this concept/need with Private Equity, large enterprise (those outsourced and those with shared services) and with the technology community. The resounding response has been the need for enablers across the full spectrum of commercials, go-to-market, transition, operations, and governance. 

This is a space for which there is no current source of specialized expertise. So, I am excited to be able to pursue my passion in this way. 

Details to follow by mid-September. 

On the verge of Wave 4

Summer's days are numbered.  I know this because my oldest daughter heads off for her freshman year at university in two weeks.  I also know this because my wife has increased the frequency of her questioning about my next job.

Truth be told, my summer was a balance between family, golf, and job-searching.  In turn, the highlights included ...

• Visits to our Maine cottage, and a trip to Los Angeles with my two girls (so that they could see "One Direction" in concert)
• A hole-in-one on Father's Day and generally good rounds at may new courses
• A diverse spectrum of job conversations ranging from start-ups, to Private Equity, to mid-stage; consulting, research, and services

A few of my outreaches weren't answered, but most resulted in at least one substantial conversation.

For each conversation, I referred to the 'manifesto' that I published on LinkedIn which defines my passion for the "as a service" trend across industries.  That has been my standard for gauging alignment of interests.  I credit my friend Peter Fuda for this approach to soul-searching.  Peter's wisdom is posted for all at www.peterfuda.com

Having my framework committed to writing has been exceptionally helpful when presented with an opportunity by enthusiastic advocates.  Guardrails are really powerful.

So, I find myself on the verge of committing to the fourth wave of my career.  It will leverage the lessons (positive and otherwise) from my prior waves, and yet define a new experience.  I hope to touch, and be touched, by new colleagues and new Clients.  I also hope to advance the cause of "as a service" economic realities around Social/Mobile/Analytics/Cloud.

The most substantial recent relevation of importance was the significance of diversity in experience that I value.  Colleagues during my prior waves will attest to the fact that I enjoy learning via multitudes of activity.

So, Wave 4 is defined in my mind and I will lock this down imminently.  After a few more rounds of golf, another trip to Maine, and a weekend with my wife in Martha's Vineyard ... I will start calling on Clients on 16 September.

Thanks for your many kind notes and words of support.

Peter

Weighing Options

I am blessed for the opportunity to take up a fourth major chapter in my career.  Most people don't have the fortune of being a participant in so many substantial waves of change.  

In 1982 I worked for a company called BBN that was building today's Internet.  I was fresh out of university, and soaked up the wisdom of the brilliant minds who conceived, develop, and deployed the foundation of connectivity among computing machines and their users.  We deployed the revolutionary capabilities for government uses first, and then for the first commercial email service - MCIMail.  I learned about the power of networking devices.  Wave 1.

In 1989 I joined CSC and had the opportunity to lead business development activities take up substantial general management assignments.  This was a lesson in leadership, planning, and risk management.  It was also my introduction to global business operations, financial services, and the economic model called outsourcing.

My three years in Seattle as Chairman/CEO of a small publicly-listed consulting company was my lesson through failure.  It also taught me the power of alignment among colleagues around relevancy and purpose.  During this time, the internet wave accelerated and busted ... and I was frustrated by the fact that I didn't find a way to participate more substantially in this euphoric period.  Then again, I didn't take the losses that many experienced when things blew up.  The lesson here was around economic fundamentals and markets ... if things seem too good to be true, they likely aren't true.  Wave 2.

From 2001 thru 2007 I was privileged to serve alongside a cadre of remarkable colleagues in the outsourcing advisory firm of TPI.  I took the role after we sold the Seattle company, and purely as a way to stay connected in the industry while I figured out what I really wanted to do next.  The eight-year run was invigorating for one principle reason.  We served some of the most accomplished companies in the world, providing advice and structure to their contracting strategies for business process and IT services.  

The eighteen months that I spent helping Procter & Gamble with their business process sourcing strategy was the most memorable and influential.  I learned about corporate culture, leadership traits, executive decision-making styles, "moments of truth" in marketing, and the sell-side tactics of major service providers.  The lessons here were life-changing for me.  From P&G to McDonalds to Disney to JPMorgan to UBS ... some of the biggest brands across industries.  Make-vs-Buy trade-offs in the allocation of capital, the engagement of employees, the leverage of intellectual property, and the hedging of risk.  Wave 3.

My most recent 3.5 years at CSC as leader of global sales & marketing leveraged the experiences of all three of the waves I had experienced previously, and flavored my worldview through the spices of transformation in a large-scale setting and the power of cohesiveness in terms of message/purpose/mission.  I am still internalizing the take-away lessons from CSC, but I am most influenced by the talented people and their commitment to their Clients.  There's much to be said about the value earned through transparency, candor, objectivity, and personal engagement.

That brings us to today.  What to do next?

I have a few months to refine my thoughts, but the leanings are around a central thesis:


After all of these incredible experiences, the one thing I have learned above all others is that true innovation is brought to life through the combination of information technology and commercial services constructs. Why? It is clear to me that the expectations of consumers and businesses are converged. Both are looking to leverage technology as holistic services, rather than as discrete parts. Innovators who are developing the next-generation of technologies recognize this reality and are seizing the opportunity to create services-based offerings that will scale. I have studied and practiced in this realm for my entire career, and the market circumstances are ideal for creating tremendous new service offerings in an “As a Service” fashion.


My expertise is earned in multiple disciplines through leadership positions for outsourcing/offshoring management consulting, IT services sales and marketing, and service delivery management:

• Architect of technology-enabled managed services ... creating service-based relationships
• Emphasis on distributed/networked business models through global operations
• Strong marketing and sales orientation, including extensive public speaking and digital marketing techniques
• Track record of building high-performance teams through strong engagement and personal commitment
• Passion for innovation in scale-based practical application of technology solutions and commercial models
• Reputation for partnerships/alliances for maximum leverage in solutions
• Expertise in commercial contracting terms for complex and risk-oriented propositions
• Excited to take ambitions from conceptual to operational

My next position will allow me to leverage and apply this unique combination of practical experience and market awareness to drive growth, scale, and shareholder value through high-energy and passionate leadership for capitalizing on the “As a Service” economy.  Wave 4 ... ahead.

Restarting the Engine

Greetings to all who find these words ... I am restarting my blog.

When I joined CSC in 2009, I sustained the blog for a few months but ultimately elected to place it in hibernation.  The reason was simple: as an officer of a Fortune 150 company, it was just too risky to express the sort of opinions for which I had become known.

Time has passed and circumstances are changed.

Over the coming weeks I will be re-framing the orientation of this blog.  I am inclined to share the process of considering new opportunities while I simultaneously outline the thesis I am developing around our services-based economy.

More to follow.  Thanks for visiting.

Peter

If you believe ---

So, here's the skeleton of my thesis on why the IT Services market has entered a phase of truly different growth/innovation characteristics.

If you believe ...

• Virtualization of computing/storage/communications resources is real. Enabling ...
  • capital expense avoidance
  • higher levels of operational efficiency
  • greater resilience of infrastructure services
  • material improvements in enterprise flexibility
• Business functionality is increasingly able to be fulfilled via off-premise, built-for-purpose platform offerings.  Such as ...
  • Software-as-a-Service delivered via public cloud architectures (e.g., salesforce.com)
  • Ecosystems of specialized managed services providers (e.g., ADP for payroll)
  • Modular extensions to ERP foundations (e.g., SAP and Oracle)
  • Interfaced with proprietary business process applications
• The requirements for confidence & integrity in business operations are dominant. To encompass ...
  • Resilience of services in response to threats to availability and continuity
  • Confidentiality of information
  • Assurance of correctness in business transactions
• And, that successful enterprises will achieve optimal leverage in its allocation of investments. To wit ...
  • Make-vs-Buy tradeoffs for non-core aspects of the business
  • Industry partnerships/ventures

Then, you require ...

• Vertical Integration among infrastructure, applications and operations.  Ensuring ...
  • Efficiency and accountability for distinct business services
  • Alignment between business strategies and enabling services
• Service Integration among the ecosystem of internal and external service participants.  To include ...
  • Operational linkages among and between service elements
  • Congruency for Enterprise Data used by all parties
  • Trust-enablement of business services

Deliberations ...

Many have asked:  "What's up with the lack of content, Peter?"


So, the long gap in postings has not been for lack of thoughts, opinions, perspectives, or ideas.  Rather, I am debating the merits of continuing to host this personal blog.


Friends such as Phil Fersht have shown that one can represent a company and still maintain a personal line-of-banter with industry colleagues.  I admire him for that.  As for me ... I'm not yet sure.


In the interim, while I wrestle with this question, please know that I am more engrossed in the machinations of the IT Services industry than ever before.  I spent this past week in India - Delhi and Mumbai - with colleagues and industry acquaintances. The annual NASSCOM conference in Mumbai was bigger than ever, and full of the customary bravado about growth of outsourcing and offshoring. 


I gave a speech as part of a panel on "non-linear business models."  The essence of my opinion/perspective was that we're entering a period that has the potential to equal that of the dot-com era in terms of innovation and value-creating business models.  And, I think there are better chances for sustainability of growth today than we saw in the 2000-era.


Why am I so optimistic? I see a confluence of events/trends that seem to be coming together at just the right time - if the recession is truly over.  


I guess I ought to explain, huh?  OK ... I'll post that logic thesis tomorrow.  


Tally ho.

For the Weary Travelers ... The Year in Twelve Posts

This from The Economist ...





THE YEAR IN 12 POSTS
It may not have been the worst year ever for business travellers, but 2009 had its unpalatable moments. These 12 episodes make us wonder whether we shouldn't just stay at home in 2010.


Read more:
http://news.economist.com/cgi-bin1/DM/y/eB6cS0bxhbJ0Mo0GJLC0Eh