has an approach for the technology-enabled transformation of the business
that is appropriate for major changes in both the business and ICT system
of a company. This transformation approach serves as context for the
different workstreams of ProgrammeX.
Gemini transformation approach has the following characteristics:
between the Transformation of Business and ICT
transformation approach is aimed at major business and ICT changes
over a longer period of time. The objective of the transformation
is to achieve business benefits thanks to new or renewed business
supported by fundamentally different ICT services. The transformation
is realised through a programme of delivery projects.
aimed at business benefits
current development processes are still aimed at partial solutions.
Some part of the business process is renewed with the support of a
stand-alone IT solution. The Cap Gemini approach sees both the
business and the ICT system as a network. The business part of the
solution must be aimed at the renewal of a coherent part of the business
process, for example a supply chain for the delivery of some type
of product. When the company uses suppliers for components of the
product, the redesign also includes the communication and co-operation
with the suppliers in the whole supply chain. The same holds true
for the supporting ICT system. This is a computer network with distributed
applications. Communication and co-operation between computers and
applications in the network must be carefully designed. When different
companies form a supply chain for the delivery of a product it is
better to extend the redesign to the whole common supply chain. This
means a redesign of the ICT systems of all the companies involved.
Programme for Iterative, Incremental and Interactive Delivery
delivery of the complex transformations in both business and technology
can only achieved in an iterative and incremental way: the solution
grows in a number of iterative transformation cycles to the
final solution. The Cap Gemini approach organises the change
process as a programme of projects that are executed both serially
and in parallel over a longer period of time. Each project corresponds
to the renewal of a part of the business and/or the supporting ICT
system. The resulting new business and ICT system grow in an incremental
way. This differs strongly from the conventional approach, which organises
a transformation, especially the development of information systems,
as a single large linear project. During the delivery of the business
and ICT transformation business experts, ICT experts and customers
work interactively together in multidisciplinary teams.
paragraphs describe the main features of the Cap Gemini transformation
book Transforming the Organization
Gouillart and Kelly give a description of the vision of Gemini on business
transformation. This paragraph describes some highlights of this vision.
company as living organism
premise of business transformation is that the complexity of a modern
corporation defies mechanistic description, that a corporation is tantamount
to a living organism- the biological corporation. Companies
are living, volitional beings - like people - with body, mind and spirit.
Companies are born, they grow, they get sick, they recover, they mature
and they grow old. Companies think, they choose, they learn, they work,
they feel. And like people, companies are mortal - they can die. Unlike
our own demise, however, theirs is not inevitable. For the biological
corporation, we belief the secret of a very long life resides in its
ability to orchestrate the simultaneous transformation of all its systems
in a unified pursuit of common goals.
Connectivity in the Communications Age
as living organism means a fundamental shift in how managers and employees
view their organisation. Our current model of organisation, born in
the Industrial Age is a mechanistic one. Corporations have been agents
in an efficient market system, parts of an ever expanding, even more
complex machine. We are now entering the Information and Communications
Age. It is time to replace our mechanistic view of business with a more
moving beyond the Industrial Age, but our business model is still rooted
there. A lot of people say that the ability that information technology
gives us to manage the flow of information represents the basis for
the new business model of the Information Age. As shown in chapter
3, there is more involved than that. The revolution in communications
technology is merely the facilitator of a more fundamental social and
business influence: an unstoppable trend toward increased connectivity.
So Communications Age is a better term than Information Age.
in the Communications Age
ushered in by the Industrial Revolution and lasting until our own time
was largely driven by technology, but its most important manifestations
were social. The rhythm of life changed profoundly, and because the
spirit of the Industrial Age was mechanical, the qualities of the social
institutions it created (bureaucracy, hierarchy, command-and-control
system and specialisation) were machine-like as well. The line worker
became a cogwheel in the clockwork of the organisation, with no sense
of personal connection to the company and with no feeling of communion
with the environment.
the Communications Age is upon us, replacing the Industrial Age. As
was true in earlier social transformations this one is increasing the
level of social complexity and leading to profound changes in society,
to which the company the dominant institutional creature of the
Industrial Age must adapt. ICT will let grow our networks inexorably
in both size and complexity. This is true not only for individuals but
also for corporations. Companies will form ICT enabled alliances and
partnerships with their suppliers and customers, becoming parts of networks,
and even networks of networks. Companies become part of Web Enterprises,
the physical and financial boundaries between companies are blurring.
the individual networks expand, and while business networks become
knowledge networks, there is a human element that warrants careful
attention. Connectivity can be a double-edged sword, triggering either
greater individual isolation or a greater sense of community, depending
on the role companies and other organisations choose for themselves
in the future.
pessimistic side, increased connectivity, especially of the electronic
variety, may cause a loss of genuine human contact. We do not feel longer
emotional about the people we interact with. In companies the economic
logic takes over. Old social contracts expire and are replaced by more
Darwinian models of individual survival. Everyone becomes master of
his own destiny. Employees see no longer the company as their common
destiny. The company no longer cares for his employees; it simply hires
them when needed.
more optimistic scenario is possible. Corporations can provide a new
caring. This will not happen in the paternalistic fashion of the hierarchical
corporation, but it will happen in different forms. Successful corporations
will develop a new role built around the invention of a new social contract.
Corporations will take responsibility for the renewal of individuals,
helping them to acquire new skills. Corporations will redefine the boundary
of their responsibilities, accepting accountability for the way they
use resources and contribute to their environment. Most importantly,
companies will build a new pride in the people who are part of them.
four R's of Business Transformation
the Organization" introduces a biological model of Business Transformation
(see picture). This form of Business Transformation is aimed at transforming
current companies to the biological corporations of the Communications
Age. The model consists of four categories of change called The Four
R's of Transformation: Reframing, Restructuring, Revitalisation,
and Renewal. Each R is divide in three chromosomes. These 12
"chromosomes" comprise the corporate genome. Each chromosome
spawns a biocorporate system that is described in the book.
Transformation is defined as the orchestrated redesign of the genetic
architecture of the company, achieved by working simultaneously
although at different speeds along the four dimensions of Reframing,
Restructuring, Revitalisation, and Renewal.
is the shifting of the company's conception of what it is and what it
can achieve. It addresses the corporate mind. Corporations often
get stuck in a certain way of thinking, and loose the ability to develop
fresh mental models of what they are and what they could become. Reframing
opens the corporate mind and infuses it with new visions.
is a girding of the corporate loins, getting it to achieve a competitive
level of performance. It deals with the body of the corporation.
The need to be lean and fit is the primary consideration. Restructuring
is the domain where the payoffs are fastest and the cultural difficulties
are greatest, often making layoffs and the anxieties associated with
them an unavoidable side effect. The payoffs, however, if invested in
revitalisation and renewal, can be used to heal the wounds, if not to
lessen their severity. Many companies stop at restructuring cajoled
into contentment by their "quick wins". But they will not
gain true health unless they use the wins to fuel longer-term transformations
is about igniting growth by linking the corporate body to the
environment. Everybody wants to grow, but the sources of growth
are often elusive, making the process of achieving growth more challenging
and protracted than restructuring. Of all the four R's, revitalisation
is the single greatest factor that clearly distinguishes transformation
from mere downsizing.
deals with the people side of the transformation, and with the spirit
of the company. It is about investing individuals with new skills and
new purposes, thus allowing the company to regenerate itself. It involves
creating a new kind of metabolism, the rapid dissemination of knowledge
inside the firm, and it involves cultivation of a reflex of adaptation
to environmental changes. Renewal is the most subtle and difficult,
the least explored, and potentially the most powerful of the transformation
6.2 Major Changes
in Business and ICT
The transformation approach of Cap Gemini is not specifically aimed
at the transformation of companies to the ICT enabled Web Enterprises
of the 21st Century. Companies already need today an approach
to manage major changes in an integrated way.
are faced with a lot of changes in their environment. Examples are major
trends like globalisation, mergers and privatisation, and business trends
like changes in their business sectors, developments in the markets
and increased competition. Al these trends force companies to adapt
and respond quickly. The development of new products and services, and
the design of adequate, flexible business processes, purchasing channels
and sales channels are therefore becoming increasingly important.
often a useful resource to support the business changes but ICT itself
is also fast developing. New technologies emerge and offer new services
to the business. This causes a lot of questions. Will these services
offer the possibility for new or renewed business processes? Must the
current technology infrastructure be renewed or replaced? Are our technology
choices the right ones? Which technologies will become the standard?
force companies to major changes in their business and ICT. These changes
are even larger when companies decide to change their strategy and to
develop and introduce new products and/or services.
is that companies need a way to manage a transformation in both business
and ICT in a coherent and integrated way.
a crucial issue in the transformation approach. An adaptation to the
external trends includes:
of new technology in new or renewed business opportunities
of the business and ICT trends in a realignment of the strategy.
design and implementation of new or renewed business processes.
design and implementation of new or renewed ICT applications in support
of the business.
steps are prone to delays. Companies therefore need a transformation
approach that prevents delays that could occur during the transformation.
The best way is to take all major decisions about strategy, technology,
business and ICT applications in an early stage before the transformation
itself is started.
6.3 The Cap Gemini
Gemini transformation approach is developed especially for large and
complex changes in both the business and the supporting ICT system.
In this case we are referring to changes so large that the transformation
cannot be realised in one project, but only through a programme of projects,
that realise both serially and in parallel the whole transformation.
approach is aimed at managing complex transformations and at delivering
the solution on time and above customers' expectation.
of a transformation programme is to achieve business benefits
thanks to new or renewed business supported by fundamentally different
starts with the definition of the solution of the transformation.
team of employees of the customer and professionals of Cap Gemini
addresses a fundamental business issue by:
the business aspects and ICT aspects to be established or renewed;
the benefits of implementing the change.
is the agreed solution.
solution is realised by a transformation programme that implements the
change in the form of new or renewed business and ICT systems and realises
the expected business benefits.
supports the complex transformation life cycle of business and ICT with
the following methods:
Analysis and Design (A&D) for the definition of an
agreed solution focused on Business Transformation, e.g. changes in
the client's strategic paradigm or portfolio of activities.
Gemini's SCOPE for the definition of an agreed solution focused
on Systems Transformation, i.e. new or renewed ICT services applied
to new or reengineered business processes.
a transformation of both the business and ICT a combination of the
A&D and SCOPE approach supports the definition of an agreed
solution for major changes in both business and ICT.
is the management of a coherent process of significant business
and ICT change, across business areas, involving multiple
projects and services, to achieve common business objectives
and where success is measured by realisation of significant business
6.4 The Transformation
approach is depicted in the above transformation life cycle.
cycle starts with the solution definition based on the SCOPE and/or
A&D followed by the plan-change-run cycle of:
projects, which design, develop and deploy the changes and together
achieve the transformation.
run phase, where the new or renewed business and supporting ICT systems
are operational and the business benefits of the transformation are
plan-change-run cycle is divided in two main areas:
business, with changes in business aspects such as organisation, commerce,
products, processes, information, personnel and finance;
ICT system, with aspects in changes such as applications, data and
transformation cycle is:
the whole transformation is realised in a number of stages, which
realise a part of the solution.
business management and ICT services management assess the results
of each stage during the run phase. When the solution does not fully
meet the expected business benefits, improvements are designed and
developed in the next stage of the transformation.
of the whole transformation life cycle is the task of Programme Management.
The SCOPE is aimed at the definition of the solution of the transformation.
The SCOPE is the first step of the transformation and results in a global
planning and design of the whole transformation. The SCOPE ends with
the decision by the customer to start or not to start the proposed transformation.
team of employees of the customer and professionals of Cap Gemini
is working together in realising the SCOPE.
focuses on an important business issue for the customer. An excellent
issue for a transformation is for example the renewal of a complete
supply chain of a product or service of the customer.
defines the solution in the following deliverables:
- A Process
Vision consisting of AS-IS description and TO-BE vision of the supply
chain and key processes. With Gemini's A&D this Process Vision
may be extended to a Business Vision which also covers other business
- An ICT
Vision consisting of:
AS-IS analysis of ICT aimed at the current role of ICT in the
business, the systems structure and the ICT organisation;
TO-BE Vision of ICT aimed at the applications to improve, develop,
acquire or remove, at the renewed technology infrastructure and
at the changes in ICT Services Management.
- A Transformation
Design describing the change areas and phases of the change programme
and a preliminary plan for the Programme Management workstreams.
- A Business
Case, which describes the business benefits of the transformation
in the form of quantified and measurable improvements.
Gemini Architecture is used to make a global design of the business
and ICT system that supports the TO-BE business and ICT vision. This
design acts as a city plan of the future business and ICT system.
The design divides the whole business into business areas with supporting
ICT services and defines the interfaces between the different areas.
The global design makes it possible to design and develop the changes
in the business areas in parallel or in a series over a longer period
and still have the guarantee that they eventually fit together.
example of the virtual bank, the figures
of the business, information system and technology infrastructure can
be viewed as three global maps corresponding to the city plan of the
business and ICT system of the virtual bank.
design may contain some different scenarios for the transformation based
on different expectations of future developments of business and ICT,
for instance different market developments for the business or the availability
of certain types of technology in the near future.
SCOPE is aimed to support the decision-making about the transformation.
All deliverables together give a high level description of the results,
the costs and the business benefits of the transformation. The SCOPE
team only investigates or describes details when necessary to support
a soundly based decision by the customer.
step in the SCOPE is the decision by the customer to start or not to
start the proposed transformation.
Management is the method for managing the transformation programme of
a large transformation of business and ICT as defined by the solution
of a SCOPE and/or A&D.
Programme is a coherent process of significant business and ICT change,
across different business areas and involving multiple projects
and supporting services, to achieve the business and
ICT vision as defined in the solution. The success of the transformation
is measured by the realisation of the business benefits as defined in
the business case of the solution.
management is the task of a programme manager assisted by a programme
management team. The programme manager is the key officer responsible
for the realisation of the transformation.
programme consists of delivery projects, which are executed both serially
and in parallel. Each project delivers a part of the transformation.
deliver for example the process changes in the different business areas,
ICT applications or a part of the technology infrastructure.
development projects may use different approaches such as:
- A linear
approach for back-office transaction systems, which need a careful
design prescribing the structure and functionality of applications
- A package
based approach for the customisation and implementation of application
- An iterative
application development approach (IAD) for the delivery of applications
which need customer interaction and prototyping during the development
in order to establish the necessary functionality. For instance front
office and middle-office applications where usability for the end-users
picture depicts the phases of Programme Management:
establish the programme details and confirm the objectives and strategy.
the projects realise the design and development of the programme deliverables
of business, ICT and people change.
review how well the results of the projects are performing and what
ensure managed ramp-down to realise long-term benefits to the customer
and Cap Gemini.
programme as established in the preparation phase, defines the global
result and the planning of the delivery projects. The programme synchronises
the changes in business and ICT. The planning of the projects is based
on the following arguments:
benefits are leading. The changes that are most useful for the business
are addressed first. This results in early business benefits.
of required staff (both business and ICT), of the required technology
and of the necessary knowledge and experience.
a project takes no longer than 6 months. With Component-Based Development
the delivery projects for applications will be considerably shorter.
changes must be done first on a minor scale. For instance new technology
must first be applied in a pilot situation before full-blown application
in a business critical situation.
within the program are grouped in achievement/assessment cycles. The
result is an iteration of transformation cycles each consisting of an
achievement and assessment phase. Each cycle realises and evaluates
a next stage in the transformation. These stages act as islands of
stability in the way from the AS-IS situation to the TO-BE vision.
of the achievement/assessment cycles are deliverables feasible in the
short term, all of which contributing to realising the long-term objectives
and business benefits as defined in the agreed solution.
of the phases of programme management are grouped in workstreams, which
focus on the following aspects:
and communication within the projects.
realisation of the business benefits.
availability of the required people and resources.
of the different projects and their results.
i.e. all planning, management, monitoring, control and auditing activities.
Management may adapt the transformation programme when there are changes
in the business requirements, when new or better technology becomes
available, or when the intermediate results of the achievement/assessment
cycles does not meet the expectations. The results and planning of the
rest of the programme are redefined and projects may be included to
adapt the already operational parts of the business and ICT. In the
case of large changes even a "rescoping" is possible. The
SCOPE is repeated and a new adapted transformation programme is defined.
6.7 The Competencies
of ProgrammeX in the Transformation Life Cycle
approach services as background for the development of new competencies
within ProgrammeX. The picture provides an overview how the four workstreams
of ProgrammeX influence the business and ICT system life cycle.
Enterprise Management will be a new approach of integrated Business
and ICT Management specifically aimed at the virtual, agile and adaptive
plays the most important role in supporting the design of the new or
renewed business and supporting ICT system.
software development influences the ICT Development. It supports
a fast and incremental path for the development of complex distributed
Approach influences the planning, design and development of the
business and ICT transformation.