Multiple
speakers detailed the emerging challenges facing enterprises, as well as
society, as they undertake the transformation and transition to digitized
operations. Multiple commentators label this “The Fourth Industrial
Revolution.” We (and others) think this shortchanges the depth and extent of
the changes taking place. We believe it merely hints at the extent of the
impact.
Setting the scene
BMC
Chairman and CEO, Bob Beauchamp began the conference with a concise summary of
the growth and performance of their digital business. Privately owned, BMC
doesn’t reveal specific numbers. However, trends in a number of performance
metrics point to strong customer acceptance. For FY16 (April ’15 to March ’16),
these include:
·
900 net-new
customers
·
30% year-over-year
growth in new bookings with each quarter exceeding the previous one
·
24% sales
pipeline growth
·
Selection by
Forbes as one of America’s Best Employers
All of this provides convincing evidence that
privatization has been good for BMC customers, partners and employees. Let’s
see what’s behind all this.
First
is the extraordinarily rapidity of results in app-driven, digitized markets.
One example is the disruptive speed of new business models, seen in banking having
their “Uber moment” and confronting Uber itself as autonomous vehicles enter
the market. Second is the extraordinarily rapid revenue impact of a successful
product. It took only 10 days after the introduction of Pokémon GO for
Nintendo’s market cap to leap from $21B to $42B. A phenomenal increase for any
product, let alone a video game. In addition to market impact, transformation
is driven by an extraordinary number of technologies entering the market. We’ll
talk about them in the next section.
These
few examples of digitization-driven impact dramatically illustrate why BMC
believes their customers must “Go Digital! Or DIE!” Okay, BMC states it a little less
dramatically as, “Go Digital or Go Extinct!” – either way, disruptive,
existential threats that require action do exist. Enterprises, of all sizes,
are realizing they need help to define, plan and execute to move forward.
The technology drivers
Executives acknowledge
that undertaking the journey to become a digital enterprise is inevitable. Successfully
navigating the way to digital requires significant new ways of thinking, as
well as quick adoption and use of disruptive technologies. These include ones
recognized and in use today (e.g. mobile Internet, cloud technology, Internet
of Things, virtual reality, Big Data and analytics). Along with rapid
advancements in base technologies, such as artificial intelligence, natural
language exploitation in combination with newly commercially viable solutions
in such areas as advanced robotics, bots, Blockchain, autonomous vehicles, etc.
The sheer volume creates an unprecedented number of disruptive changes
occurring at remarkable speed across every market segment.
BMC Digital Enterprise Management (DEM) for the transformation
With
last year’s introduction of its DEM initiatives, BMC positioned itself as a
capable, willing partner to help enterprises undertake the transformation.
Robin Purohit, BMC’s Group President of Enterprise Solutions Organization
stated it this way: “Our mission is to equip our worldwide customers with
innovations and solutions they need to start the digital transformation journey,
stay on course, and be successful in digital business.”
A
large ambition. One that will be welcome news to numerous C-level executives
and IT staff who realize: “The digital imperative is clear: go digital or go
extinct.” We’ve heard repeatedly from these teams that they are looking for a
partner to help them advance down a path to digitization. The question is: “Can
BMC deliver what they need?”
BMC’s overview tends to indicate they can. As seen in
the initiatives designed to aid customers in seven strategic areas. Three are
integrated solutions targeting the following:
1. Digital Workplace – BMW provides a faster, better
dealer support experience
2. Secure Operations (SecOps) – Aegon/Transamerica
benefits with better security
3. Service Management Excellence – Wegmans improves
services with data analytics
Then, customers documented successes achieved with
innovative BMC solutions for:
4. Agile Application Delivery – Target described their
experience in speeding app improvements and development
5. Big data – Malwarebytes detailed improving customer
services with faster analysis of greater volumes and kinds of customer data
6. IT Optimization – Swiss Re talked about optimizing IT
operations
7. Multi-Sourced cloud operations – a Ministry of Defense
representative described how they simplified operations involving multiple,
different cloud environments
BMC DEM Solutions and Products for customer success
Customers
ranging from the largest Fortune 100 to mid-size and entrepreneurs provided
further evidence of how BMC services and products help fuel successful
transformations. After sampling the over 80 customer and partner presentations
and demos available, we’ve come to the conclusion that BMC definitely delivers results.
They do so with operational integration efforts involving their own products and applications to facilitate communications and cooperation between developers and LOB staff. The overall goal is to enable “service management excellence.” One example integrates BMC BladeLogic and BMC Remedy for simplified and improved automated change management. Integration details are provided on the BMC website[1] along with customer stories. As we’ve mentioned before, customer results will vary. However, it is always worth investigating the successes (as well as the mistakes) of others.
They do so with operational integration efforts involving their own products and applications to facilitate communications and cooperation between developers and LOB staff. The overall goal is to enable “service management excellence.” One example integrates BMC BladeLogic and BMC Remedy for simplified and improved automated change management. Integration details are provided on the BMC website[1] along with customer stories. As we’ve mentioned before, customer results will vary. However, it is always worth investigating the successes (as well as the mistakes) of others.
Proven in BMC’s own transformation
According to McKinsey & Company research[2], “less than a quarter of organizational-redesign efforts succeed. Forty-four percent run out of steam after getting under way, while a third fail to meet objectives or improve performance after implementation.” That’s one reason we were excited when BMC presented results of the five-step process they followed in their own internal Digital Transformation:
1. Organizing for Digital – organizational and
operational changes support digital transformation.
2. Delivering with speed and agility – increase work
environment use of technology and automation (Data Center consolidation, Global
Command Center, Unified Communications) for cost savings.
3. Optimizing workloads – give people meaningful work, automate
the rest.
4. Communication value through Technology Business
Management (TBM) – measure and report Digital Service Management (DSM) progress
in easily understood terms.
5. Managing software assets and risks – optimize costs
through (pro-)active management.
As
result, BMC went from 62,000 sq. ft. for 36 Data Center/Labs using 1.6 MW power
with a $6.8M operating expense to 7,500 sq. ft. for 4 Data Centers using 640 KW
power with operating expenses of $2.4M. BMC is sharing both the expertise in
applying products and experience in implementation services to help their
customers determine what they can achieve.
One Last Thing
Engage 2016 included much more of interest,
including announcement of an Innovation Suite to address escalating app
development interest by management and business analyst types. Due in November,
it uses an array of the latest development tools (slack, JIRA, Bamboo, docker,
GitHub, Jenkins, CHEF, etc.) linked to existing BMC products to allow what is
essentially ‘drag ‘n drop’ app creation. Intriguing when you consider the
potential to accelerate the move from conception to product delivery! And, we
haven’t even touched on the announcements around mainframe products and
solutions. We’ll cover all that in a separate piece with more added in future
pieces.
BMC
as a private company is proving its ability to act aggressively and effectively
to address the most pressing challenges facing its clients, including Digital
Transformation. BMC distinguishes itself with its comprehensive, understandable
vision of a digital future. They developed and offered DEM as a blueprint for
implementation. Uniquely, BMC also raised the issue of the wider societal
implications of Digital Transformation and how these will impact the future of
the Enterprise and IT in the Enterprise. We will be writing more about that
topic in the future.
[2]
Steven Aronowitz, Aaron De Smet, Deirdre McGinty, “Getting organizational
redesign right,” McKinsey Quarterly, n.d. (accessed October 10,
2016) - https://tinyurl.com/j7za63s
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