Everest Group PEAK Matrix for Digital Service Providers

Transcription

1 Everest Group PEAK Matrix for Digital Service Providers Focus on Accenture October 2017 Copyright 2017 Everest Global, Inc. This document has been licensed for exclusive use and distribution by Accenture

2 Introduction and scope Everest Group recently released its report titled Digital Services PEAK Matrix Assessment and Market Trends 2017: Redefining Customer Experience with Digital. This report analyzes the changing dynamics of the digital services market and assesses service providers across several key dimensions. As a part of this report, Everest Group classified 22 service providers on the Everest Group PEAK Matrix for Digital Services into Leaders, Major Contenders, and Aspirants. The PEAK Matrix is a framework that provides an objective, data-driven, and comparative assessment of digital service providers based on their market success and delivery capability. Everest Group also identified six service providers as the 2017 Digital Star Performers based on the strongest forward movement demonstrated on the PEAK Matrix year-on-year. Based on the analysis, Accenture emerged as a Leader and Star Performer. This document focuses on Accenture s digital experience and capabilities and includes: Accenture s position on the Digital PEAK Matrix Detailed digital services profile of Accenture Buyers can use the PEAK Matrix to identify and evaluate different service providers. It helps them understand the service providers relative strengths and gaps. However, it is also important to note that while the PEAK Matrix is a useful starting point, the results from the assessment may not be directly prescriptive for each buyer. Buyers will have to consider their unique situation and requirements, and match them against service provider capability for an ideal fit. 2

3 Market success (Revenue, growth, transformation impact, and buyer satisfaction) 25 th percentile 75 th percentile Everest Group PEAK Matrix Digital Services PEAK Matrix Assessment and Market Trends 2017 Accenture positioned as Leader and Star Performer Everest Group PEAK Matrix for digital services 2017 High Major Contenders 75 th percentile Leaders Accenture Cognizant Leaders Major Contenders Aspirants Star Performers NIIT Tech Syntel Luxoft EPAM CSS Corp PwC Digital Virtusa Genpact CGI Atos Tech Mahindra LTI Infosys Deloitte Digital TCS Wipro IBM NTT Data HCL Capgemini Low Aspirants Low 25 th percentile High Delivery capability (Scope, domain expertise & innovation, and delivery footprint) Note: Assessment for Capgemini, Deloitte Digital, EPAM, Infosys, and PwC Digital excludes service provider inputs on this particular study, and is based on Everest Group s estimates which leverage Everest Group s proprietary Transaction Intelligence (TI) database, ongoing coverage of these service providers, public disclosures, and interaction with buyers 3

4 Accenture Digital services profile (page 1 of 3) Overview Strengths Accenture strongly leverages its consulting capabilities to help clients envision and formulate their digital strategy To help clients transform their digital customer experience it has been bullish in expanding its design capabilities leveraging Accenture Interactive Areas of improvement Accenture needs to better integrate its digital acquisitions to create a seamless experience for clients Accenture should proactively showcase its digital automation solutions to clients and help them leverage it in their engagements Overview of digital services practice: Digital transformation, design, digital strategy, customer experience, digital marketing, social, e-commerce, content management, analytics, intelligent automation, artificial intelligence, IoT, Industry X.0, cloud, security services, mobility, etc. Digital services revenue by geography >25% 10-25% <10% Europe Digital services: Top 5 industries BFSI Energy & utilities >20% 15-20% 10-15% <10% Manufacturing North America UK MEA APAC Telecom, media, & entertainment Retail, distribution, & CPG South America Digital services revenue by segment >25% 10-25% <10% Digital services revenue by buyer size >50% 20-50% <20% Social Analytics & big data Small (annual revenue < US$1 billion) Cloud applications Internet of Things Medium (annual revenue = US$1-5 billion) Mobility Cognitive intelligence Large (annual revenue = US$5-10 billion) Others Mega (annual revenue > US$10 billion) 4

5 Accenture Digital services profile (page 2 of 3) Solutions and co-innovation labs Vision: Through Accenture Digital, it aims to help clients unlock value to transform their businesses and empower them to become digital at the core, in order to generate growth and create new business models that drive higher performance across the entire organization. Digital services proprietary solutions (representative list) Solution Accenture Connected Platforms as a Service (CPaaS) Accenture Genome Accenture Cloud Platform Accenture Insights Platform (AIP) Accenture Digital Assistant Details IoT platform provides devices integration and services orchestration through a cloud-based platform with analytics that derive business insights and outcomes, and APIs that allow developers to build vertical applications Personalization technology that helps accelerate transformation by enabling brands to create individualized experiences based on individual customers unique motivations Multi-cloud management platform that integrates with a broad range of public and private clouds such as Microsoft Azure, Amazon Web services, and NTT Communications to enable service automation and orchestration, consumption-based metering & billing, and centralized governance Comprehensive solution with an integrated suite of technologies, a pre-configured architecture, and an advanced analytics design studio including a ready catalogue of pre-developed intelligent industry solutions and apps Improves natural language interactions through machine learning and integration into system & live data, leverages social and other channels for continuous learning Design studios / co-innovation labs (representative list) Location Multiple locations worldwide Details Accenture Technology Labs: Seven labs across the world that pilot new capabilities & POCs, and help clients develop an innovation agenda through 400+ innovation client workshops per year Accenture studios: Includes design studios for ideation and innovation and Liquid Studios for rapid application development Over 20 Innovation Centers including five Advanced Analytics Centers and 13 Accenture Innovation Centers for mobility 50+ Accenture Interactive design studios, R&D offices, and Centers of Excellence Accenture Research: includes 250 in-house researchers 5

6 Accenture Digital services profile (page 3 of 3) Investments and partnerships Digital services investments (representative list) Investment theme Acquisitions Talent Details The Monkeys and Maud: Australian creative agency to strengthen customer experience capabilities of Accenture Interactive OCTO Technology: Technology consultancy to help enhance digital transformation services Altitude: Product design and innovation firm that brings expertise in consumer insight, design, and product engineering Karmarama: Creative agency to help Accenture build campaigns for clients and better engage with its customers SinnerSchrader: Digital agency in Germany to expand customer services capabilities of Accenture Interactive Search Technologies (annc):technology Services firm that specializes in the design, implementation, and management of big data and search analytics, using AI to generate more precise insights Wirestone (annc): US-based creative marketing agency, focuses on customer experiences and digital marketing solutions Accenture Ventures: evaluates start ups and partners to invest in the most promising innovations in the market Certified 20,000+ employees in the Accenture Technology Academy, certification program designed by the MIT and Accenture Educated more than 70,000 workers on new architectures, intelligent platforms, and automation over the past year Digital services partnerships (representative list) Accenture has an extensive network of partnerships with technology providers including Salesforce.com, Amazon Web Services, Oracle, SAP Hybris, Adobe, GE, Alteryx, Apigee, Cloudera, Hortonworks, HP, IBM, Informatica, Intel, Microsoft, Oracle, Pega, Qlik, Apple, Samsung, among others. Recent activities (representative list) Activity Established new Industry X.0 practice that uses digital technologies to reshape current business models or create entirely new businesses and provides a range of services from R&D, engineering, and product design through Closed Loop and Agile Manufacturing. 6

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8 Market success (Revenue, enterprise adoption, revenue growth, and buyer satisfaction) 25 th percentile 75 th percentile Everest Group PEAK Matrix is a proprietary framework for assessment of a service provider s capability Everest Group PEAK Matrix for Digital Services High Major Contenders 2 nd or 3 rd quartile performance across market success and capability 75 th percentile Leaders Top quartile performance across market success and capability Aspirants Low 4 th quartile performance across market success and capability Low 25 th percentile Delivery capability (Scale, scope, domain expertise & innovation, and delivery footprint) High Everest Group s PEAK Matrix is a composite index of a range of distinct metrics related to a service provider s scale, scope, technology/domain investments, delivery footprint, and resultant market success in the context of a given services function. 8

9 Market success Service providers are positioned on the Everest Group PEAK Matrix based on the evaluation of two key dimensions Leaders Major Contenders Measures digital services revenue, revenue growth, enterprise adoption, and buyer satisfaction Aspirants Delivery capability Measures ability to deliver services successfully. This is captured through five subdimensions Scale Measures the scale of operations through: Firm-wide revenue Contribution of digital revenue to the firm-wide revenue Scope Measures the scope of services provided through: Focus across service segments Coverage across verticals Geographic scope Domain expertise and innovation Measures the extent of capability in innovation and investments to enhance digital capabilities such as M&A s, partnerships, proprietary IP and solutions, and talent investments Delivery footprint Measures delivery footprint across geographies 9

10 Market success Everest Group confers the Star Performers title to providers that demonstrate the strongest forward movement over time on the PEAK Matrix Methodology Everest Group selects Star Performers based on the relative YOY movement of each service provider on the PEAK Matrix Year 1 Service provider Year 0 Capability In order to assess advancements on capability, we evaluate the performance of each service provider on the PEAK Matrix across a number of parameters including: Annual growth in scale Increase in scope of services Expansion of delivery footprint Technology- / domain-specific investments In order to assess advancements on market success, we evaluate the performance of each service provider on the PEAK Matrix across a number of parameters including: Yearly revenue growth Number of new clients added Number of contract extensions Value of new contract signings This slide to be used ONLY for Star Performers The top quartile performers on each of the specified parameters are identified and the Star Performer rating is awarded to the service providers with: The maximum number of top quartile performances across all of the above parameters At least one area of top quartile performance in both market success and capability advancement 2017 Digital Services Star Performers The Star Performers title relates to YOY performance for a given service provider and does not reflect the overall market leadership position. Those identified as Star Performers may include Leaders, Major Contenders, or Aspirants. Service providers such as CSS Corp, Deloitte Digital, NIIT Technologies, NTT Data, and PwC Digital are not accounted for in the Star Performer analysis due to their non-participation in the Digital Services PEAK Matrix analysis in

11 FAQs (page 1 of 2) Does the PEAK Matrix assessment incorporate any subjective criteria? Everest Group s PEAK Matrix assessment adopts an objective and fact-based approach (leveraging service provider RFIs and Everest Group s proprietary databases containing providers deals and operational capability information). In addition, these results are validated / fine-tuned based on our market experience, buyer interaction, and provider briefings Is being a Major Contender or Aspirant on the PEAK Matrix, an unfavorable outcome? No. PEAK Matrix highlights and positions only the best-in-class service providers in a particular functional/vertical services area. There are a number of providers from the broader universe that are assessed and do not make it to the PEAK Matrix at all. Therefore, being represented on the PEAK Matrix is itself a favorable recognition What other aspects of PEAK Matrix assessment are relevant to buyers and providers besides the PEAK Matrix position? PEAK Matrix position is only one aspect of Everest Group s overall assessment. In addition to assigning a Leader, Major Contender or Aspirant title, Everest Group highlights the distinctive capabilities and unique attributes of all the PEAK Matrix providers assessed in its report. The detailed metric level assessment and associated commentary is helpful for buyers in selecting particular providers for their specific requirements. It also helps providers showcase their strengths in specific areas What are the incentives for buyers and providers to participate/provide input to PEAK Matrix research? Participation incentives for buyers include a summary of key findings from the PEAK Matrix assessment Participation incentives for providers include adequate representation and recognition of their capabilities/success in the market place, and a copy of their own profile that is published by Everest Group as part of the compendium of PEAK Matrix providers profiles 11

12 FAQs (page 2 of 2) What is the process for a service provider to leverage their PEAK Matrix positioning status? Providers can use their PEAK positioning rating in multiple ways including: Issue a press release declaring their positioning/rating Customized PEAK profile for circulation (with clients, prospects, etc.) Quotes from Everest Group analysts could be disseminated to the media Leverage PEAK branding across communications ( signatures, marketing brochures, credential packs, client presentations, etc.) The provider must obtain the requisite licensing and distribution rights for the above activities through an agreement with the designated POC at Everest Group 12

13 About Everest Group Everest Group is a consulting and research firm focused on strategic IT, business services, and sourcing. We are trusted advisors to senior executives of leading enterprises, providers, and investors. Our firm helps clients improve operational and financial performance through a hands-on process that supports them in making well-informed decisions that deliver high-impact results and achieve sustained value. Our insight and guidance empower clients to improve organizational efficiency, effectiveness, agility, and responsiveness. What sets Everest Group apart is the integration of deep sourcing knowledge, problemsolving skills and original research. Details and in-depth content are available at Dallas (Headquarters) info@everestgrp.com Bangalore india@everestgrp.com Delhi india@everestgrp.com London unitedkingdom@everestgrp.com Stay connected Website Group New York info@everestgrp.com Blog Sherpas In Blue Shirts Toronto canada@everestgrp.com