Financial Operations, or FinOps, is a framework for managing cloud costs and optimizing cloud spending. The goal of FinOps is to control the cost of cloud adoption without hampering developer creativity and freedom.  FinOps isn’t just about reducing costs but maximizing the value of all cloud expenditures.

The 2024 State of FinOps finds that reducing waste is the highest priority for FinOps practitioners indicating that businesses are looking at ways to reduce spending without reducing the value they are getting from cloud investments.

In another survey carried out by Everest Group, 82% of global organizations struggle with more than 10% of their cloud spending getting wasted. Out of these, 68% experience more than 20% wastage.

The FinOps Imperative  

FinOps empowers organizations to extract business value from the Cloud, wherein cost optimization is a core value proposition. By ensuring different stakeholders have ownership and accountability of the Cloud spend, FinOps ushers in a cultural change by facilitating close collaboration between different teams to achieve conflicting business objectives such as speed, cost, and quality of IT infrastructure.

By implementing FinOps best practices, organizations can effectively manage cost, and resource utilization and maximize ROI. Based on our experience with customers, here are some of the best practices for managing and reducing wasteful expenditure.

Reducing Cloud Waste

1.   Compute

Right Sizing: It is important to select the right Cloud resources and align it with business objectives to achieve the desired level of performance cost-effectively. For instance, compute instances are available with various combinations of CPU speed, CPU count, memory, networking, storage I/O, and GPUs. Right instance selection will require analysis of current workload, and future growth as well as analysis of resource utilization data available from Cloud observability tools.

Use Autoscaling and Load Balancers: Cloud empowers users with automated scaling capabilities, so users can programmatically configure auto-scale to add resources when there is heavy traffic and scale down when the traffic reduces. You can also use load balancers to manage sudden spikes in traffic to distribute calls and optimize performance. Resources can be optimized by observing auto-scaling. For example, if there is frequent scaling up due to high memory usage while CPU usage is very low, it will be more sensible to select a memory-optimized compute resource.

Turn off idle resources: Unlike traditional environments, the ability to shut down resources is one of the major benefits of Cloud. However, as organizations experience a Cloud sprawl with multiple accounts, they often end up paying for idle servers that are left on after a project is over. Tools enable to manage multiple Cloud usage via a central dashboard such as AWS Organization and Google Cloud’s Organization Resources.

Move to Serverless: Based on workload and utilization, one can reduce waste by moving to serverless architecture. Serverless does not require to rent servers and savings are a result of the pay-for-use model and reduced dependence on operations staff. Serverless is suited for non-production environment where latency is not very crucial and automatic pause can be configured to save costs.

2.   Storage

Right Sizing: Selecting the right storage option is imperative to extract the best value. For instance, the selection of hard drives or SSDs must be aligned with performance, latency, and throughput requirements. Different storage tiers such as hot, cool, cold, and archive must be selected based on data size and access pattern. Migration to newer SKUs may also result in saving –for example, EBS volume migration from gp2 to gp3.

Storage Lifecycle: Database backups, snapshots of storage, and logs require large storage capacity and form a significant proportion to cloud cost. Based on business requirements, data must be automatically moved from expensive tiers to cheaper ones and deleted when the retention period is complete.

3.   Unattached/Abandoned Resources

Often when host VMs are removed, resources like network interface cards, managed disks, EBS volumes get unattached but are not deleted. It is important to monitor, switch off/delete these resources to reduce wastage. Robust enforcement of resource provisioning using Infrastructure-as-code can prevent such occurrences while periodic checking for infrastructure anomalies can help detect abandoned resources.  

4.   Idle Resources

Apart from compute and storage, one must monitor other idle or under-utilized resources such as load balancers, containers, app services, and empty databases.

5.   Data Transfer

Ingress and egress charges are costs associated with data transfer across cloud regions, across zones, to and from the internet, and to and from on-premises networks. Generally, Cloud vendors do not charge for ingress, but charge for data egress. The cost of data egress often comes as a shock but designing a thoughtful architecture can significantly cut down data transfer cost by limiting the movement of data out of the region or from the Cloud environment. For example, if some of your on-premises applications are frequently accessing cloud data, it may be time to migrate these applications.

Partner with FinOps Experts for Cost Management

FinOps require unique skills and expertise—it entails deep understanding of different Cloud environment and services, market understanding, expertise in monitoring and management tools and deep experience to identify waste and optimize performance. Working with the right partner brings the insights, experiences and best practices garnered from different customers to reduce the learning curve and maximize the benefits of Cloud quickly and easily.   

If you want to know more about NewVision’s FinOps practice or want help with Cloud cost optimization strategies, write to us at contact@newvision-software.com.

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GenAI will reshape how businesses approach customer care, back-office operations, administration, sales and marketing, HR, training, and everything else. The year will mark the shift from concept to creating solid impact in business operations. Research by the International Monetary Fund finds AI can impact about 60 percent of jobs in advanced economies and 40 percent of jobs in emerging economies.

Knowledge workers will experience profound benefits as GenAI’s research and summarization capabilities will drive productivity and change the way accomplishing tasks.

GenAI will improve customer care with personalized, efficient service

GenAI in customer care operations in 2024 will improve CX with personalized responses and recommendations. Agents will be better prepared and more responsive as GenAI can anticipate potential concerns and provide solutions. Natural Language Processing (NLP) capabilities will exponentially increase customer satisfaction as systems will understand and process user queries contextually to provide better care.

Back-Office Operations: Streamlining Efficiency Through Automation

GenAI’s integration will transform back-office operations by introducing extensive automation, allowing employees to focus on strategic aspects. Organizations will become more productive with GenAI’s summarization capability and collaborate better with automated scheduling and coordination. Its impact will encompass sales, marketing, HR automation, supply chain management, and project execution. It will also play a crucial role in enhancing cybersecurity defenses by simulating scenarios and address evolving threats.

GenAI to Majorly Impact Software Development

GenAI will bring disruptive changes in software development with a flurry of innovation and deliver dramatic improvements in generating code snippets, troubleshooting, and optimizing algorithms. Software engineers will be able to allocate more time to conceptualizing and refining solutions.

GitHub research finds that 88% of developers using Microsoft Copilot are more productive; 74% can focus on more satisfying work; and reduce the time for searching for information (77% of developers). This shift towards AI-driven automation will not only expedite project timelines but also enhance the adaptability and responsiveness of software development.

GenAI will drive digital product design with its ability to summarize and create new content from tons of existing data collapsing the time to research, identify new opportunities, and generate ideas.

AI models get smarter on synthetically generated data, eliminating the need to rely on only real-world data. The Gartner predicts by 2024, AI will generate 60 percent of synthetic to simulate reality, and future scenarios and derisk Artificial Intelligence.

GenAI and Data Analytics

GenAI’s advanced algorithms and machine learning capabilities will empower organizations with improved data accuracy and reliability, identify new data sources, and analyze vast datasets with unparalleled speed and accuracy.

Data cleansing capabilities will significantly improve with intelligent detection of patterns and anomalies in large datasets. GenAI will automatically categorize and tag data based on its attributes, reducing the efforts to organize data repositories. Data consistency will become easier with standardized data formats and structures across different sources and systems through automated data governance processes.

Innovating with Responsible GenAI

Even as we embrace the transformative potential of GenAI, it’s crucial to confront the inherent risks and challenges related to accuracy, cybersecurity threats, and regulatory compliance. It requires a proactive approach to address these issues with ethical development practices and regulatory frameworks, and collaborative efforts among industry stakeholders, policymakers, and developers to establish guidelines that are aligned with global values to usher in positive societal impacts while mitigating unintended consequences.

Buzz to Impact: GenAI heralds a New Era in Business Transformation

The widespread adoption of GenAI in 2024 will witness a shift from hype to tangible impact as businesses integrate GenAI into their operations to experience transformative changes in the way they think and work. With its advanced capabilities such as summarization, NLP, and synthetic data generation, GenAI is poised to revolutionize processes, enhance productivity, and elevate decision-making. From enhancing software development to transforming analytics, GenAI will catalyze a wave of innovation that empowers businesses to adapt and thrive in the digital age.

GenAI heralds a New Era in Business Transformation

Are you ready to embrace the future?

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The ability to summarize and create new content from tons of existing data will have huge ramifications in designing digital products collapsing the time to research, identify new opportunities and in idea generation. Extensive research is necessary in product designing to understand gaps in existing products, market dynamics and technological trends.

At the heart of successful digital product design is a deep understanding of the end user, based on research that delve into user behaviors, preferences, pain points and expectations. Savvy product designers leverage user personas, journey maps and usability studies to craft user-centric designs that elevate the customer experience.  

GenAI Empowers Research for Digital Products

The time devoted to digital product research and design can vary significantly based on complexity of the product, industry in which it will operate, development methodology and the organization’s approach to product development.

In agile methodologies, commonly used in software development, the design and research phases are often integrated throughout the development process to allow continuous feedback and iteration as the product evolves. On an average, organizations allocate anywhere from 20% to 40% of the time to research and design activities.

A major challenge during research is going though mounds of information lying in disparate knowledge systems. A Gartner survey finds 47% of digital workers struggle to find information to effectively perform their jobs. Employees struggle to stay afloat as information and applications flood the digital workplace. Today an average desk worker—also referred to as a ‘knowledge worker’—uses 11 applications compared to just six applications in 2019.

The problem becomes accentuated for product managers who need to systematically comb through information in enterprise repositories to join the dots to design an ideal digital product. Often a lot of the product information reside outside of PLM environments in collaborative apps, shared file systems and enterprise systems such as the CRM or ERP.  

Navigating between different enterprise systems during research is not just tedious but a serious drain on operational efficiency and time to market. Given that a lot of insights reside in unstructured data, robust search capabilities are crucial. Yet most applications usually support full-text search with limited use of ontologies and semantics, stymieing the ability to discover data that users are not explicitly searching for, but may be relevant to the query.

To understand the enormity of the task, here is a perspective—humans generate approximately 2.5 quintillion bytes of data every day on the internet. This not only makes searching for information tough but also makes inferring tougher.

This is where GenAI can become a disruptive force—GenAI tools can search, synthesize and compose an answer. Based on foundational models with artificial neural network and deep learning capabilities, it has significantly enhanced capabilities to classify data, edit, summarize, query and generate new content based on existing data.

And it is not just the search capabilities. AI models will get smarter based on the synthetic data that GenAI will help create to empower product managers research better by eliminating the need to rely on only real-world data. Gartner predicts by 2024, 60% of data for AI will be synthetic to simulate reality, future scenarios and derisk AI.

Time to Act is Now  

GenAI is set to revolutionize software design and development with swift idea generation facilitating product development to strike a balance between efficiency, creativity and research. GenAI is happening now and organizations with sound data strategy will be better equipped with high-quality data to train AI models. Organizations with an early start will be able to ride the technology crest and dominate with empowered digital product development capabilities.

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But where GenAI makes the difference is that even as it pulls up information it can also generate and provide a context. This is because GenAI tools are based on large language models (LLMs) and equipped with enhanced levels of natural language processing (NLP) capabilities. It also represents a departure from traditional AI systems in that it excels not only in pattern recognition but also in creative and generative capabilities that closely resemble human output.

GenAI’s creative prowess includes the generation of synthetic data that can replicate real-world information. These datasets are designed to be indistinguishable from human-generated data and are crucial in enhancing customer service by facilitating the development and training of AI models—a capability beyond the scope of traditional approaches.

Importantly, GenAI uses a conversational tone that makes the interaction more relatable. It takes agent empowerment to a different level as the application can create personalized content and elevate the CX. These capabilities have profound implications—by empowering to join the dots in a meaningful manner, it has plugged the gaps in harnessing AI.

Translating GenAI-powered CX into ‘Moments of Delight’ 

Gartner predicts that by 2025, 80% of customer service and support organizations will be applying GenAI technology in some form to improve agent productivity and CX. Another Gartner poll finds that 38% of leaders want to improve CX and retention with GenAI applications.

Over time, GenAI will blend within the customer service organization seamlessly assisting agents by taking over repetitive tasks; summarizing customer information from multiple channels; providing context with sentiment analysis, and many such activities. GenAI-enabled systems will move from providing updates and information to bridging the gap between the digital and human realms. According to BCG, GenAI-enabled customer applications will initially assist human agents, and eventually, bots will become as good as human agents.

Customer reps will be empowered to answer more complex queries with accurate responses based on real and synthetic data. For instance, if a traveler has a botched reservation during a vacation, GenAI will assist with insights into the customer journey, gaps in the reservation, insights into current rates, customer preference, and comparative rates with new reservations, while also throwing up data about different loyalty programs—all on a single screen empowering the agent to kickstart an informed conversation on an empathetic note.      

In effect, bots will execute the tedious work allowing agents to focus on establishing a human connection during a moment of crisis. At the same time, GenAI’s capacity to analyze customer sentiment and predict churn will assist representatives in proactively addressing issues with offers and outreach programs.

As systems mature empowered bots will become indistinguishable from humans assisting customers with most queries, transitioning from reactive to proactively solving problems by directly reaching out to customers with preventive solutions.

Eventually, GenAI-enabled support will be customized to act as a personal assistant of individual customers who fully understand the relationship with the company, anticipate needs, and interact with other systems to get a complete picture of the customer life cycle.

Getting the Next Steps Right is Vital

Companies are fervently experimenting with use cases to identify the correct ones. This is a crucial step in training the model on business-specific data. Use cases with the highest ROI are ideal to start with and empower agents with context around the customer, product, and interaction, as well as guidance on how to best solve the customer’s issue. Research finds that a connected agent strategy improves contact center efficiency by 30%, and reduces attrition.

While GenAI is good to act as an assistant, it is still not mature enough to demonstrate human-like agency. Businesses will take time to figure out the right use cases, correct model, the ROI and align it with the overall strategy. Yet the action on the ground is more important than intent and a well-formulated strategy around customer experience is the natural thing to gravitate to—it is where the biggest learning, refining, and impact happens. The unprecedented race has begun and a thoughtful strategy that encompasses design, strategic alignment, workforce collaboration, and synthetic data will empower organizations to achieve GenAI-enabled CX transformation.

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To harness this potential, companies need a systematic approach towards product engineering that is robust with prototyping techniques, and other best practices. The process of product engineering encompasses the complete product life cycle, from concepting the idea to continuing through deployment and user acceptance testing.

Business Imperative of Product Engineering

Product engineering is a disciplined approach to designing, developing, and maintaining software products with a focus on innovation and user experience while bolstering the organizational ability to build high-quality products efficiently and cost-effectively. It empowers businesses to stay ahead of the competition and meet the ever-evolving demands of customers.

Product Engineering Process

The product engineering process encompasses the entire product lifecycle, from conceptualization to design, development, software testing, and maintenance. It is a well-defined and structured approach that ensures product quality and success, marked by careful planning, iterative development, and constant improvement.

Prototyping techniques are integral to the product engineering process. They allow businesses to visualize and test concepts before full-scale development. Techniques like wireframing, mockups, and proof of concept help refine ideas, reduce risks, and gain early user feedback, all of which are invaluable for product success.

In addition to prototyping, world-class software product engineering teams embrace best practices to strengthen the development process and deliver superior outcomes. These approaches include:

• User-Centered Design: Prioritizing user needs and preferences in product design ensures higher user satisfaction and adoption.
• Agile Product Development: Agile methodologies enable flexibility and adaptability throughout the development process, fostering innovation.
• Design Thinking: A human-centric approach that encourages empathy, creativity, and problem-solving to drive product innovation.
• Innovative Product Design: Pushing the boundaries of creativity to develop unique and disruptive products that captivate users.

High Performance with Quality Assurance and Product Lifecycle Management (PLM)

Quality assurance is non-negotiable in product engineering and therefore rigorous testing and validation are adopted to ensure that the software meets the highest standards of reliability, security, and performance. PLM is crucial for tracking and managing the evolution of a product, keeping it competitive and in sync with changing market dynamics.

Another crucial aspect of achieving high performance is to have performance metrics that measure consistent user experience and business outcomes. This is ensured through meticulous monitoring and measurement of product performance metrics such as speed, uptime, security, and user engagement are pivotal for long-term success.

Empowering Businesses with Product Engineering Services

Product engineering services have emerged as a powerful game-changer for businesses looking to harness the full potential of software products. These services provide access to specialized skills, cutting-edge technologies, and a well-established framework for product development. By partnering with product engineering service providers, businesses can leverage expertise and resources to accelerate innovation and achieve a competitive edge.

Product Engineering – Bedrock of Modern Enterprises

Product engineering is the bedrock of modern enterprises empowering developers to create innovative, user-centric products that stand out in the market. By embracing the best practices, staying focused on quality, and leveraging services of third-party product engineering services, companies can unlock new opportunities and outperform their competitors in today’s fast-paced, tech-driven world.

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Much of the disruption is being driven by technology and medical advancements facilitating a holistic approach—preventive and continuous care as opposed to treatment; omnichannel engagement as opposed to facility-based interactions; and personalized care as opposed to standardized protocols.

At the same time, US healthcare market is witnessing a flux with increased mergers and acquisitions and non-traditional players entering the market. Retail pharmacies such as Walgreens and CVS Pharmacy are making fast moves into healthcare with new models of primary care, just as Amazon’s acquisition of care provider Primary One is set to disrupt delivery, insurance, and pharmacy services.

These trends—fanned by an imperative to reform healthcare delivery—are converging towards preventive and value-based approaches to healthcare, which are gaining currency across all stakeholders.

DIGITAL ACCELERATING NEW HEALTH TRENDS

Digital is playing a crucial role in accelerating reforms towards affordable care; new patient-centric models; improved health outcomes and lowering the total cost of care for members and customers. Significantly, consumers are driving digital innovations demanding convenience and choice with new models of delivery such as telehealth, embracing m-health applications and virtual care via remote monitoring.

Healthcare reforms like The Affordable Act have triggered a shift amongst insurers to engage with consumers directly and digital channels like member portals presented opportunities to deliver new customer experiences (CX). Digital empowered providers and payors to drive CX and better health with deeper collaboration amongst specialists, equipment manufacturers, and support services. These imperatives are forcing healthcare to innovate at speed and scale to create best-in-class products that appeal to consumers.

RAISE THE GAME WITH DIGITAL PRODUCT DEVELOPMENT

Healthcare companies are at a crossroads struggling to focus on value-creation while designing superior digital products due to IT skill shortages and high attrition rates. Winning healthcare companies are beating this challenge by partnering with specialist digital product studios and healthcare IT consulting services to create products at speed.

According to Gartner, the shortage of IT skills is the most significant barrier to emerging tech adoption, and attrition amongst IT employees is higher than in other professions—tech workers change jobs every 2.7 years while employees in other professions do so every 3.2 years.

Lack of career development is the number one reason for attrition and IT employees usually do not find satisfactory career paths in non-IT companies as they may not have the technical breadth and depth.

CRAFTING HEALTHCARE EXPERIENCES WITH DIGITAL PRODUCT STUDIO

Digital product studios are a select breed of partners with a deep understanding of healthcare with a digital-native lens helping organizations identify, design, and build the right digital products. Teams comprising UI/UX designers, developers, project managers, and CTOs with scalable resources coalesce to build outstanding digital products.

Specifically, the following benefits accrue when partnering with this category of partners to develop healthcare IT solutions.

Digital-native lens for UI/UX: Deep understanding of the healthcare customer journey to design experiences with UX design principles, intuitive interfaces, seamless navigation, and personalized experiences for insurance claims and payment; physician consultation; support services; treatment, and prevention.

Digital Assurance: Brings ownership to ensure digital transformation success with quality assurance across the chain in process, data, and CX. Stabilize healthcare user journey with unified digital experience testing, automation, and AI-powered methodologies.

Automation: Intelligent automation combining RPA and AI/ML to automate provider lifecycle management; patient engagement; claims adjudication; and risk adjustments for payors and providers.

NEWVISION’S HEALTHCARE PLAY

NewVision has been partnering with top US payors and health-tech companies to deliver cutting-edge digital products by leveraging the following key concepts.

Embrace a service-design approach: Develop a data-driven understanding of how payers use digital tools and widen the spectrum of services to meet new needs across the provider lifecycle.

Understand the power of new platforms: Deep collaborations with industry giants like PEGA, UiPath, and Microsoft where a platform approach uses data to develop intelligent, highly customized experiences that integrate several services with a single touchpoint.

From establishing new Cloud-based platforms to operational processes, emerging market leaders must prioritize flexibility, speed, and ongoing development to break through current internal systems that are typically silos.

We elevate the game from passive partners of healthcare IT services to active co-creators of value-driven healthcare.

If you want to know more about our Digital Product Studio services, write to us contact@newvision-software.com 

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A technology services provider with a digital native mindset understands the significance of this shift and embeds agility and adaptability in its DNA. This equips the service provider partner to quickly identify new technology trends and translate them into value by combining a deep understanding of the business environment, functional needs, and new operating models.

For instance, when IDC says worldwide digital transformation investments will reach USD 3.4 trillion by 2026 it presents opportunities for a digital native technology company to pro-actively invest and build capabilities in emerging technologies such as Cloud, automation, digital product engineering, data engineering, and automation to create continuous value for its customers.

Thriving with Digital Transformation

A digitally transformed business is empowered with disruptive capabilities that include the following.

UX-LED DIGITAL PRODUCTS: An ability to create innovative digital products to meet customer expectations, replete with UX design principles, intuitive interfaces, seamless navigation, and personalized experiences. Companies like Apple, Uber, and Airbnb have excelled in this area creating immense stakeholder value.

PREDICTIVE ANALYTICS: Employs advanced analytics and tools to extract actionable insights from vast amounts of data. For instance, Netflix utilizes analytics to understand user behavior, viewing patterns, and preferences to personalize recommendations and optimize the content library accordingly. Data-driven decision-making enables companies to understand customers better, predict trends, and drive strategic initiatives.

AUTOMATION-LED EMPOWERMENT: Empowers the workforce with automation, transparency, and streamlined internal processes. Technologies like RPA can weed out inefficiencies of manual processes allowing employees to focus on higher-value activities—chatbots in a customer service center can handle routine queries while agents attend calls that require empathy and understanding.

Winning with a Digital-Native Partner

The road to digital transformation is fraught with danger with a failure rate as high as 70% – 80% according to research. Working with an experienced digital-native partner navigating the transformation journeys of many companies provides access to institutional knowledge and industry best practices to ensure predictable and successful outcomes. Specifically, benefits include the following.

INTUITIVE DESIGN APPROACHES: Deep understanding of business that places the customer at the heart of everything it does. This enables the partner to design innovative digital products or enhance existing ones by defining customer journeys via intuitive design approaches with cutting-edge technologies. From ideation to design and development, digital-native partner brings value with a user-centric approach and a commitment to creating continuous value.

AGILE METHODOLOGIES: Businesses can take advantage of a continuous feedback loop, frequent experimentation, and feature adaptation to achieve the best business outcomes by using an agile and iterative approach to development and problem-solving.

TESTING & ASSURANCE: Testing capabilities assure digital products are highly available, secure, and deliver high performance in the production environment.

MIGRATE WITH CLOUD-NATIVE ARCHITECTURES: Successfully migrate with Cloud-native architectures to take advantage of flexible, scalable infrastructure. Empowered with agile infrastructure, businesses can experiment frequently, expand quickly and collaborate with partners seamlessly by exploiting the API economy.

DATA & ANALYTICS: Translate the latent power of data into powerful insights and informed decision-making. Data is the fuel for digital transformation and an expert in advanced data architecture and analytics can help you unlock meaningful insights from vast amounts of data to identify new opportunities, optimize operations, and enhance customer experiences.

ENABLE AUTOMATION: Drive driving operational efficiency and agility with robotic process automation (RPA), workflow automation, or IT process automation. Streamline repetitive tasks, reduce errors, and enhance productivity, while allocating resources to strategic activities to accelerate growth and innovation.

LEVERAGE ACCELERATORS & BEST PRACTICES: Working with a vast array of customers across industries, digital-native technology partners have insights into different verticals and are able to pass on the insights to businesses in the form of accelerators, institutional knowledge, and industrialized processes that shorten the time to digital transformation.

NewVision As Partner of Choice

Businesses need technology services providers who are more than technical experts to navigate the course as digital partners in the quest for transformation. NewVision is a digital-native technology company with an entrepreneurial mindset that works alongside customers to facilitate digital-enabled growth; provide scalable models to support expansion; and manage and optimize business operations to bring certainty, reliability, and predictability to drive success.

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