The next generation of IT Services will take a new approach to business process improvement and information technology. The new approach uses Lean principles to deliver more than cost savings – it drives superior business performance through a relentless focus on waste reduction and continuous improvement.
In the latter part of the last century, product manufacturing industries began implementing Lean production systems across their operations. Lean Manufacturing helped to create a culture of excellence within the businesses that adopted it and eventually revolutionized the way goods are made.
50 or so years later, Lean is now table stakes in most industries, including service organisations, to remain in competition. Lean principles including Total Quality Management and a culture of Continuous Improvement are recognized as absolutely essential to modern manufacturing and most service industries.
It is now high time for IT operations to establish Lean principles as fundamental business technology practice. There is much to be gained: faster concept-to-market, reduced cycle-time in business processes, improved quality of service and superior customer experience. These principles form the foundation for the next generation of IT Services: Lean IT. The focus of the last generation was cost reduction through labor cost arbitrage in India and other countries. In the next generation, IT Services companies will learn from more mature industries that have implemented Lean to transform how work gets done and value is created. IT Services will combine the efficiencies of the global delivery model with leaner, less wasteful approaches. IT will deliver business results through leaner operations, with a focus on creating competitive advantages including: superior customer experience, reduced transaction cycle-times, increased productivity and improved quality.