[Music] hi and welcome to another cube conversation this time from the MCS Hilux immersion day at the Santa Clara Marriott beautiful Northern California we're going to be spending the entire day having a series of discussions about what it means to do a better job of both digital services management and operations management and how those technologies are coming together to dramatically alter how business operates how customers get value and ultimately how profits are generated we're going to start this conversation with a CDO a chief digital officer from Genpact sanjay sri tvasta welcome to the cube thank you very much so to start tell us a little bit about Jim pacts interesting company comprised we are indeed Genpact is a large global professional services provider for digital transformation services we serve many of the fortune 500 companies around the world and we help them think through their business processes in the business models and digitally transform that to take advantage of so all the new capabilities that are coming through so digital service outcomes is a very important feature of that because I presume that when you have those conversations with customers you're talking about the outcomes that they're trying to achieve yeah and not just the services that you're gonna provide it's fine so tell us a little bit about what is a digital service outcome and why is it so important yeah well I think the reality is that what technology is doing it it's disintermediating the ecosystem so many of the industries our clients operate in and they have to go back and reimagine their value proposition of the core of what they do with the use of new innovative technologies and it's that intersection of new capabilities of new innovative business models that really use emerging technologies but intersect them with their business models with their business processes and the requirements of their clients and help them rethink reimagine and deliver the new value proposition that's really what it's all about so digital service outcome would then be the things that the business must do and must do well but ideally with a different experience or with a different degree of flexibility and agility or with and cost profile I got that right correct so when we think about that what are some of the key elements of a digital service success we like to think about three critical success factors in driving any digital transformation the first one is the notion of experience and what I mean by that is not user interface for a piece of software but the journey of a customer an employee a provider a partner in engaging with you in your business model and we think about journey mapping that scientifically we think about design thinking on the back of that and we think about reimagining what the new experience looks like one of the largest things we learned in the industry is digital transformation on the back of costs take out a productivity or efficiency is is is insufficient to drive and optimize the value that digital can bring and using experience as the compass is sort of the Northstar in that journey is a meaningful differentiator and drive our business benefits so that's number one in the second area that's become increasingly apparent is the intersection of domain with digital and the thinking there is that to materialize the benefit of digital in an enterprise you have to intersect it with the specifics of that business how users interact what clients seek how does business actually happen you know we talk about it artificial intelligence a lot we do a lot of work in AI is an example and there's key thing about machine learning is goal orientation and what is goal orientation it's about understanding the specifics of your environments you can actually orient the goal of the machine learning algorithm to deliver higher high accuracy results and it's something that can often easily get overlooked so indexing on the two halves of the whole the yin and the yang the the the piece around digital and the innovative technologies and being able to leverage and take advantage of them but equally be founded and domain understand the environment and use that knowledge to drive the right materialization of the and that's the second critical success factor I think to get it right I think that third one is the notion of how do you build a framework for innovation you know it's not the sort of thing where large fortune company 100 500 fortune 500 companies can necessarily experiment and you know it's a little bit for go happy-go-lucky strategy it doesn't really work you have to innovate at scale you have to do it in a fundamental fashion you have to do it as a critical success factor and so one of the biggest things we focus on is how do you innovate at the edge innovation must be at the edge this is where the rubber meets the road but governance has to be at the core let me build on that for a second because you said innovations at the edge so basically that means where the brand promise is being enacted for the customer and that could be at an industrial automation setting or it could be in recommendation if any any number of things but it's where the value proposition is realized for the customer correct okay that's exactly right and that's where innovation must happen so as a large corporation you must be you know it's important to set up a framework that allows you to do innovation at the edge otherwise it's not meaningful innovation if you will it's just a lot of busy work and yet as you do that and if you change your business model is you bring new components to the equation how do you drive governance and it's increasingly becoming more important you think about we're gonna be in a AI first world increasingly more and more that's the reality the world we're going in and in that AI first world you know III work here in Palo Alto I walk into my office a couple of hundred people in any given day if tomorrow morning I walked in and hundred people didn't show up for work I would know right away because I can see them now fast forward to an environment where we have digital workers we have automation BOTS we have conversationally I chat box and in that world understanding which of my AI components are on which ones are off which ones showed up for work today which ones fell sick and really being able to understand that governance and that's just the productivity piece of it then you think about data and security AI changes complete dimensions on that and you think about bias and explained ability to become increasingly important and notion of a digital ethics board and thinking about ethics more pervasively so I think that companies and clients we serve that do really well in digital transformation are those that keen on those three things the notion of experience is the true compass for how you try transformation the ability to intermix domain and digital in a meaningfully intersecting fashion and to be thoughtful proactive and get governance right up front in the journey to come so let me again building out a little bit because people are increasingly recognizing that we're not going to centralized with cloud we're going to greater distribute we're going to distribute data more we're going to distribute function more but you just added another dimension that some some of us have been thinking about for a long time and that's this notion of distributing authorities yeah so that an individual at the edge can make the decision based on the data and the resources that are available with the appropriate set of authorities and that has to be handled at a central in a in a overall coherent governed way so that leaves the next question and just before you go that I mean I think the best example of that is we do that most corporations do that really well in the financial scheme of things business is that the edge make decisions on a day-to-day basis on pricing and and relationships and so on and so forth and yet there's a central audit committee that looks through the financials and make sure it meets the right requirements and has the right framework and much in the same way we're gonna start seeing digital ethics committees that become part of these large corporations as they think about digitizing the business governance at the end of the day is how do you how you orchestrate multiple divergent claims against a common set of assets and and being able to do that it's absolutely essential and it leads to this notion of we've got to cite these ideas of digital business digital services and operations management how are we going to weave them together utilizing some of these new technologies new fabrics that are now possible to both achieve the outcomes we're talking about at scale in its speed yeah well the the technology capabilities are improving really well in that area and so the good news is there's a set of tools that are now available that give you the ingredients the the components of the recipe that's required to make dinner well you know the the work that needs to happen is actually how to orchestrate their that to figure out which components you to come in and how do you pull together a vertical stack that has the right components to meet your needs today and more importantly to address the needs of the future because this is changing like no other time in history you want options with everything you do now you want to make sure that you have a stream of options for the future and that's especially important here that's right that's exactly right and and the the the quick framework we've established there is sort of the three-legged stool of how do you integrate quickly how do you modular eyes your investments and how do you govern them into one integrated whole and those become really important I'll give you examples you know much of the work we do will work with the consumer bank for instance and they'll want to do a robotic process automation engagement will run on for nine months they'll get 1,800 robots up and running and the next question becomes well now we have all this data that we didn't really have because now we have an RPA running how do I learn some machine learning insights from there and so we then work with them to actually drive some insights and get these questions answered and then the engagement changes to well now that we have this pattern recognition that we understand more questions will be asked how do I respond to those questions a automatically and before they get asked this notion of next best action and so you think about that journey of a traditional client you know the requirements change from robotics to machine learning to conversationally AI to something else and keeping that string of investments that that innovative sort of streak true and yet being able to manage govern and protect the investments that's the key role and especially if we do want to look at innovation at the edge because we want to see some commonalities otherwise we freaked people out along the way don't exactly right so I'm J Street of AUSA thank you very much for being on the cube thank you for having me and once again I'm Peter Burroughs and we'll be back with our next guest shortly from BMC Hilux immersion day here at the Santa Clara Marriott thanks very much for listening