digital labor disruption
TRANSCRIPT
© 2016 Information Services Group, Inc. All Rights Reserved.
Stanton JonesResearch Director & Principal Analyst
Digital Labor Disruption
© 2016 Information Services Group, Inc. All Rights Reserved.
The impact of price performance
Technology price performance is increasing exponentially.
In the manufacturing sector, have seen this effect for some time in the form of industrial robots.
In the services sector, just now starting to see this effect in the form of software that mimics the way a human works and makes decisions.
Price
Performance
Performance
Price
Old Equilibrium
Digital Labor.
Software that works like a human, or mimics the way humans make decisions, focused on the automation of knowledge work.
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How is this different?
Intelligent Systems
MachineLearningSystems
Expert Systems
WorkflowSystems
Scripts & Runbooks
Programmed. Procedure-based.
Configured. May perform work
as if it were a human.
References knowledgebase & uses inference system.
Experts provide feedback on quality of decisions.
Algorithms are “trained” using data, not experts.
Assesses probability and classifies results.
Enterprises have traditionally focused
hereWhile digital labor will focus here.
Uses biology as foundation to understand patterns, make predictions & develop behaviors.
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Digital Labor plans.
Robotics
Robotic Process Automation (RPA)
Machine learning / AI / Cognitive
Voice Recognition / Natural Language Processing
Data Science / Big Data
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
23%
22%
13%
13%
6%
18%
22%
21%
18%
18%
24%
24%
29%
32%
23%
23%
20%
23%
21%
29%
11%
12%
14%
16%
24%
Source: ISG 2016 global IT leader survey; n = 352
Not deployed, no plans to useResearching, no current trialsTesting, no plans to deployTesting, plans to deployIn production
Survey Question: Rank the following emerging technologies on a scale from “Not Deployed” to “In Production” as they are in use today
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Enterprises are getting there differently.
Model Benefit DrawbackDo it yourself Retain IP.
Avoid black box syndrome. Employee morale.
Assume risk. Emergent software. Small COE driving big change.
Embed in outsourcing
Transfers risk. Leverage industry processes. Focus on outcomes.
Incentives often not aligned. Software and process are linked. New business model for
providers.
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Digital labor in outsourcing is driving significant productivity gains.
VolumetricProductivity Improvement
(%)Number of Applications Managed +30%Number of Virtual Instances Managed
+29%
Storage GBs Managed +34%Number of End Users Supported +20%Number of End User Devices Managed
+85%
Number of Network Devices Managed
+100%Source: ISG Automation Index
Over past 12 months, seeing dramatic improvements being committed to in ITO contracts.
Traditional productivity improvements 3 to 5 percent.
Cost savings for the IT services contracts we assessed ranged from 26 to 66 percent.
50 percent decrease in the number of resources required to support certain IT services.
© 2016 Information Services Group, Inc. All Rights Reserved.
Do it yourself: Agile automationchampion required.
Nearly all emerging DIY use cases we are researching share three common characteristics: Strong, non-technical automation champion. Using digital labor to increase capacity and
drive consistency / quality. Using Agile approaches.
Agile
Scope
Schedule Budget
Schedule Budget
Scope
Variable
Fixed
Traditional
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Guidance
Start now. Exponential increases in price/performance means digital labor will expand faster than expected.
This is an operating model change (people, process, governance) more than a technology change.
DIY buyers: Focus digital labor on scalability and consistency challenges; cost savings is a derivative.
Sourcing buyers: Cost will remain primary focus, however, ensure supplier can deliver on productivity promises.
Create an digital labor COE; use agile approaches.
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