Bye Bye Vertical Based GTMs in IT Services
Wipro Limited does business model rejig following what Capgemini started couple of years back and Accenture announced this year.
Key points of this model:
1.GTM is by geographies
2. Service lines are combined into few segments as lines are blurring between different segments
3. Bye Bye vertical based organization.
Why?
Growth is in two areas mainly for large firms.
1. Maximizing revenue from key customers
2. Penetrate new geographies
For this they need to come out of vertical and serviceline silos. For example
Where will EV charging fit in? Is it energy or automotive?
Where will Telematics based insurance fit in? Automotive or insurance?
Where does platforms fit in? Applications or software product engineering?
Where does cloud engineering fits in? Infrastructure or engineering?
Where does product or IoT security fits in? Security or engineering?
Where does manufacturing applications fit in? Engineering or Apps?
Where does wearable fits in? hi-tech or medical device?
I can go on an on as these kind of discussions I have been having with service provider leaders in last couple of years.
No structure is perfect and there will examples where this or any structure creates problems but whole idea is to simplify service lines and vertical based silos.
Will be interesting to see how other service providers evolve their GTM.
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4 年Maybe this is a contrarian and a minority view, but to me these realignments seem more about internal ease of doing business for the IT Services companies than what the customers really want. Seems the industry has come a full circle in last 2 decades to the same point where it started :) I would any day prefer aligning around customer's industry and business processes as it makes it easier to relate to them, appreciate their business pain points better and focus on adding value to drive their business objectives.
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4 年Samuel Christopherdoss This seems interesting!
Good quick note Pareekh Jain. Wipro was the first one to do vertical based GTM and last one to abandon. This is a predominant change coming from evolution of AI enabled technology landscape where evolutionary algorithm creation and seed problem formulation will make domain knowledge redundant. May the best algo in cloud win in future. Resource based business model and monolithic ERP’s may see a big change in future as well.
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4 年This is an interesting topic and calls for serious deliberation. Vertical GTM became imperative as Services biz moved up the value chain by bringing in domain / industry expertise. As the model gets disrupted by digital transformation underway at clients, some pieces of it say customer experience improvements may not need so much domain expertise but say, leveraging Analytics platform or IoT which are inherently domain & data intensive does so as proving the business value requires deep industry/Vertical knowledge. The other model that comes to mind could be Vertical sits as consulting arm within the Org and GTM is geographically organized.
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4 年I personally believe organizing around the client is always the right approach. If that client sits within some blurred/eroding industry boundary that is fine, but the key is the organization is setup to maintain the customer intimacy and trusted advisor relationship .....and to ensure that the full value of the organization is brought to bear for the client and not siloed or complicated by competing GTM with industries and service lines.