Re-Industrializing InfraOps

Identifying the Problem

Customer satisfaction is at an all-time low, with the Forrester 2024 US Customer Experience Index revealing that only 3% of companies are customer-obsessed. But this decline in CX quality is not surprising when 80% of stakeholders' energy is spent on non-essential administrative tasks, leaving only 20% for truly impactful work. Why is so much energy being devoted to processes that have so little impact on the bottom line?

The answer lies in the often-overlooked realm of InfraOps. It turns out that most multinational companies are squandering a significant portion of their time and resources on inefficient InfraOps processes. These include redundant manual tasks, outdated communication methods, and fragmented systems that fail to integrate smoothly. As a result, employees are overwhelmed with administrative burdens that detract from their ability to focus on strategic initiatives that drive real value.

This inefficiency trickles down to customer experience. When internal processes are chaotic, it becomes challenging to deliver effective and seamless services to customers. The Forrester report highlights that CX performance dropped across all three dimensions of quality – effectiveness, ease, and emotion. This decline can be traced back to poor InfraOps management, resulting in customers being left frustrated by inconsistent experiences, slow responses, and a lack of cohesive service delivery.

InfraOps plays a crucial role in the overall health of an organization, particularly in the realm of customer service. It is the backbone that supports business functioning, ensuring that systems run smoothly and efficiently and customers can get what they need when they want it. When InfraOps is mismanaged, it creates a domino effect that impacts every aspect of the business, from behind-the-scenes internal operations to the front-end experience. To improve CX and overall business performance, it is imperative to address the inefficiencies in InfraOps.

The Cost of Inaction

Inefficiency in InfraOps is not just a minor operational inconvenience; it represents a significant financial burden. Ignoring these inefficiencies is costly. The 2024 US Customer Experience Index notes that companies that are not customer-obsessed experience slower revenue and profit growth compared to their customer-centric counterparts. In a highly competitive market, risking increased customer churn and diminished brand loyalty can lead to declines in market share and financial performance.

The Gartner forecast indicates that worldwide IT spending will surpass $5 trillion in 2024, with a significant portion allocated to outsourced IT services. This trend suggests that many organizations rely heavily on external partners to manage their IT infrastructure, often at a substantial cost. However, doing so leads to specific inefficiencies that are costing companies customers:

1. Outsourcing Overheads: Many organizations spend more on consulting and outsourced IT services than on developing internal capabilities. This dependency can lead to higher costs, slower response times, and reduced control over critical operations.

2. Fragmented Processes: Current IT production methods often involve craft methodologies, where each task is handled in isolation without an integrated approach. This results in duplicated efforts, increased errors, and extended timelines.

3. Operational Downtime: Inefficient systems lead to more frequent outages and longer recovery times, impacting productivity and customer satisfaction. The cost of downtime can be significant, both in terms of lost revenue and damage to the organization’s reputation.

4. Underutilized Resources: In this model, internal resources are often underutilized, with equipment sitting idle and staff relegated to spending excessive time on administrative tasks rather than focusing on value-added activities.

The costs associated with maintaining outdated, fragmented, and inefficient systems are too high to ignore. But by embracing an industrialized InfraOps framework, organizations can transform their operations, reduce costs, and position themselves for long-term success.

The Case for Industrialization

To illustrate the potential benefits of industrializing InfraOps, imagine needing to expand your current IT infrastructure by 10X. Under the existing playbook, this would be an overwhelming task, requiring additional outside partners, plagued by inefficiencies, and ultimately running up against resource constraints. However, by adopting an industrialized approach to InfraOps, this becomes a manageable and scalable process. Here’s how:

1. Streamlined Operations: By adopting assembly line principles, organizations can streamline operations, rede redundancies, and ensure that each step in the process adds value. This allows for better resource allocation and faster project completion.

2. Enhanced Control: Bringing IT services back in-house gives organizations greater control over their operations. They can implement standardized protocols and best practices across all departments, leading to more consistent and reliable outcomes.

3. Cost Efficiency: Industrialized processes reduce the reliance on expensive consultants and outsourced partners. By building internal expertise and leveraging automation, organizations can lower operational costs and reinvest those savings into further innovation.

4. ​Scalability: An industrialized approach is inherently scalable. Whether an organization needs to double its infrastructure size or increase it tenfold, the same principles apply. This scalability is crucial for adapting to changing business needs and staying competitive in a rapidly evolving market.

5. ​Improved Quality: With standardized processes and a focus on continuous improvement, the quality of IT operations markedly improves. This leads to fewer errors, higher uptime, and better overall performance.

The change from current craft methodologies to an industrial model shift is not just desirable but necessary. Moving from today’s inefficient and unsustainable IT infrastructure to more streamlined and automated processes is the only sustainable future – both operationally and financially. However, current trends in IT spending suggest that many organizations are not yet embracing this shift.

Despite the pressing need for change, many companies continue to rely heavily on outsourcing. The Gartner report forecasts that worldwide IT spending will grow by 8% in 2024, with IT services on track to eclipse $1.52 trillion. Despite this massive expenditure, much of this spending will be directed toward external IT services rather than investing in the underlying technical hardware and robust in-house systems. To break this cycle, InfraOps stakeholders must instead seize this opportunity to industrialize their operations.

To effectively make this shift, studying organizations where industrialization is already underway is crucial. By examining successful case studies, companies can learn practical strategies for implementing change and avoid common pitfalls. In the next edition, we'll explore such examples, with the ultimate goal of creating a more efficient, scalable, and resilient InfraOps framework that can support growth and deliver superior customer experiences.