The Transformers

IBM Business Consulting Services (IBM BCS) last week released the results of an admittedly self-serving survey of more than 450 CEOs from across the globe, which found that as the economy begins to improve, most CEOs are again focusing on revenue growth rather than just cost containment.

But to accomplish that, CEOs need to create new products and services or improve existing ones. The problem, concludes the survey, is that 80 percent of those surveyed said their organization was somewhat capable of responding to changing business conditions, while 7 percent said they were not capable.

To resolve this issue, the majority of the CEOs said they need to get closer to their customers to understand their needs and create more flexible processes that let them respond to changing requirements in realtime. Alas, 43 percent of the CEOs rated their company's record for managing change as unsuccessful; well over half said they suffered from limited internal capabilities and leadership to manage change.

Ginni Rometty, managing partner for IBM BCS, interprets this as a clear mandate for business-transformation consulting services, or simply, services that help executives figure out how to alter their business models. IBM BCS plans to focus on helping customers master business intelligence disciplines such as analytics and dashboards. Other focuses, she said, include telematics technologies such as RFID that gather data in realtime, and more efficient models for handling CRM, financial management and supply-chain applications, which may necessitate outsourcing these functions to IBM in order to fund the business-transformation process.

IBM's message is clear. It's not enough to deliver technology and related services. Solution providers must add value by functioning as trusted business advisers to customers that are transforming their businesses. But business transformation is like charity, it begins at home. For many solution providers, transforming their own businesses to gain a deeper understanding of the vertical markets their customers serve will be the biggest challenge they face in 2004 and beyond.

What's your transformation plan? I can be reached at (516) 562-7477 or via e-mail at [email protected].