HPE BPS Still Needs a Clear Differentiator in Move to As-a-Service Economy

At a recent analyst event, Hewlett Packard Enterprise (HPE) Business Process Services unit (BPS) shared an update on its strategy to invest in tools and technologies to support clients in the digital age. HPE’s asset investment is linked to understanding the customer’s digital impression and behaviour, or “digital halo,” which to our minds is not unlike Cognizant’s “Code Halo” concept.

HPE BPS is developing digital frameworks that outline the desired business outcomes, customers’/ employees’ digital halo, key processes to consider and the underlying technology and services offered by HPE BPS. These will be included in all new deals. Each framework also has an associated customer transformation journey map, which includes an interesting estimate of the percentage of reduced costs and increased revenues for clients resulting from each step of the journey. True to the strategy it outlined earlier this year, HPE is leading with technology expertise, some of which includes industry sector specificities:  see: HP Sketches Out a New Identity.

The new frameworks include investments in automation (including but not limited to Blue Prism) and customization of customer interfaces. Current frameworks and example offerings are:

• Customer Experience Digital Framework: A strategic partnership with Avaya in the customer experience space and joint offerings including the Rapid Analytics Customer Environment (RACE) which identifies likely client buying patterns
• HR Digital Framework: A HR portal (based on Autonomy) and a new chat facility with fellow Workday partner, Dovetail
• F&A Digital Framework: The F&A Business Process Analytics Tools (BPAT), now available by industry sector
• Digital Banking Framework: 43 assets linked to processes such as incoming emails. HPE BPS hopes to extend this framework to other industry sectors

HPE is aware of the inevitable cannibalization of some of its traditional service revenue created around labor services, and has decided to make the necessary investments in its own tools and technologies to respond to this eventuality. However, this merely enables HPE to retain its position as a leading service provider, as most of its competitors are following a similar strategy. This does not in itself create a clear differentiator in the market for HPE BPS.  

HPE does realize that it will need new engagement models with clients and is actively re-working current contracts, often to include outcome-based pricing, but this will be a long process. In addition, it needs to get slicker with its marketing and communications of the new solutions focus. There is still scope to drive consistency in the look and feel of the digital frameworks and it needs to make a clear decision on whether the term “digital halo” is key or not, as its use is sparing.

HPE BPS has enjoyed a good year, but it has been dominated by renewals. 2016 will prove to be more challenging, as it will have to pursue new logos. Its tighter, selective deal pursuit strategy will help, but HPE BPS needs to still come up with a nugget that will make it stand out in the crowded service provider landscape.