Addressing the Forces of Change

We Are All Agents of Change!

…so why is implementing change so difficult?

Current Perspectives

Slow US Economic Growth: +1.7% GDP

Record US Debt: 16.7T

Job-less Recovery: Unemployment at 7.6%

Downgraded S&P Credit Rating: AA+

Sequestration: 85B in Budget Cuts

Current Perspectives

Slow US Economic Growth: +1.7% GDP

Record US Debt: 16.7T

Job-less Recovery: Unemployment at 7.6%

Downgraded S&P Credit Rating: AA+

Sequestration: 85B in Budget Cuts

Industry Pressures

FINED $1.5B FOR LIBOR RIGGING

NEWS

NEWS

IS TO CUT 2,500 JOBS FROM ITS FINANCIAL AND RISK DIVISION

NEWS

IS TO CUT 4,000 JOBS IN 2013, SAVING $1B IN COSTS

NEWS

ANNOUNCES IT WILL CUT 30% OF ITS IT MANAGEMENT WITHIN

ITS DEFENCE SPACE & SECURITY UNIT

Industry Pressures

FINED $1.5B FOR LIBOR RIGGING

NEWS NEWS

IS TO CUT 2,500 JOBS FROM ITS FINANCIAL AND RISK DIVISION

NEWS

IS TO CUT 4,000 JOBS IN 2013, SAVING $1B IN COSTS

NEWS

ANNOUNCES IT WILL CUT 30% OF IT’S IT MANAGEMENT WITHIN IT’S DEFENCE SPACE & SECURITY UNIT

NEWS

EVEN HOSTESS FILES FOR BANKRUPTCY.ASSET ACQUIRED BY PRIVATE INVESTORS

The IT Scorecard

2013 IT budgets to increase spending by only

1.4%

2013 IT spending facing challenges Expected 2.09T global spend. US to show 7.5% increase

Measured as a percentage of revenues, financial services firms spend more on IT than any other industry. Ranging from $270B to 460B

Financial services IT budgets equal 7.3% of their revenues, well above the industry average of 3.7%

Scorecard Results

‘Keeping the Lights On’

70-80%of IT budget -

IT Perceptions

57%

Significant differences in perception between IT and non-IT employees:

of IT leaders agreed that their organization was "distributed, agile, and flexible”

of business people outside IT agree

29%

Barriers to Innovation

Barriers to Innovation: IT Debt….the backlog

46% did not know the value of their IT debt

44% have no structured process for measuring and managing IT Debt

45% without a process are not planning to implement one

57% say they have an unclear picture of their application portfolio

Source:

$1 trillionGlobal IT debt will rise to by 2015

Barriers to Innovation: the Skills Challenge

Data gathered from a global survey of Academic leaders

1 in 4 Universities surveyed teach COBOL today

65% COBOL is uncool

65% state that COBOL is considered (by students) ‘uncool’ or is unheard of completely

5% of new graduates have COBOL language skills

10,000 US workers reaching retirement age (65) every day - Occurring over next 19 years. Representing 26% of US workforce

Barriers to Innovation: the Skills Challenge

Data gathered from a global survey of Academic leaders

5% of new graduates have COBOL language skills

10,000 US workers reaching retirement age (65) every day - Occurring over next 19 years. Representing 26% of US workforce

1 in 4 Universities surveyed teach COBOL today

65% COBOL is uncool

65% state that COBOL is considered (by students) ‘uncool’ or is unheard of completely

Amid this, 70% of all business Data Processing is still driven by COBOL

70

Disruptive Forces

DIS

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Cloud computing

Mobile

Social Media & Collaboration

Analytics & Big Data

Innovations to Change the Face of Business

Digital Disruption – CIOs, are you disruptive enough?

Gartner and Forrester agree

New Generation technology is taking up a lot of mindshare

new budget

new skills

new technology

new processes

Requiring

Disruptive Forces

DIS

RU

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E TE

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NO

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IES

Cloud computing

Mobile

Social Media & Collaboration

Analytics & Big Data

Innovations to Change the Face of Business

Digital Disruption – CIOs, are you disruptive enough?

Gartner and Forrester agree

New Generation technology is taking up a lot of mindshare

new budget

new skills

new technology

new processes

Requiring

It’s Time to Think Differently.

To Think Smarter.

The Road Ahead

Forces of Change

REDUCTION OF BACKLOG / IT DEBT

DISRUPTIVE TECHNOLOGIES

Understanding Your Options

Modernization: Clearing a Pathway to Success

53%Success with Application Modernization

30%Success with replacing application with a COTS package

4%Success when re-writing application from scratch

42%Chance of project failure or excessive delays

Package:

A Customer Perspective: Application Modernization

Package

Rewrite

Modernize

COST

RISK

TIME TO VALUE

COMPETITIVE ADVANTAGE (0 – 10)

Lowest cost

High risk

Medium risk

Low risk

2-3 years

3-5 years

4 months

4x cost

10x cost

1x cost

0/10 competitive advantage

6/10 competitive advantage

10/10 competitive advantage

Lowest risk

Shortest time

Greatest advantage

Package

Rewrite

Modernize

Package

Rewrite

Modernize

Package

Rewrite

Modernize

Smart Thinking

REDUCTION OF BACKLOG / IT DEBT

DIS

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INNOVATION

New Architecture

Mobile

Cloud

Development Efficiency

Skills and Organization

Introducing Visual COBOL

Embracing Innovation with Visual COBOL

REDUCTION OF BACKLOG / IT DEBT

DIS

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NO

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INNOVATION

New Architecture

Mobile

Cloud

Development Efficiency

Skills and Organization

Embracing Innovation with Visual COBOL

Cloud

Mobile

New Architecture

Skills and Organization

Development Efficiency

INNOVATION

Efficiencyhighly effective development results with Visual COBOL

• Faster code compile, edit and debug process

• 30% improvement in developer productivity

• Greater development team collaboration

• Advanced COBOL development tooling – background parsing, autocomplete, smart editing, etc.

• Unified development environment supporting efficient cross-team development

• Developer collaboration across all languages

Benefits Capability

Industry standard development tools

27

Skills & the OrganizationBridge the Skills Gap with Visual COBOL

• Address the skills challenge issue

• Attract a new talent pool

• Protect the value & importance of your core apps

• Works with industry standard IDEs - Visual Studio and Eclipse

• Consistent development experience for C/C++, .NET, Java and COBOL developers

• Smart editing tools make cutting “new” COBOL code easier to learn than ever

Benefits

Capability

Cloud ComputingScalable, cost-effective application deployment to the Cloud

• Up to 70% reduction in IT costs

• Increased application reliability, availability and serviceability

• Rapid service delivery

Benefits

Capability

• Deploy existing on-premise COBOL applications into the Cloud

• Access data from SQL Azure, Amazon S3 and other Cloud data storage

• Supports Amazon and Azure Cloud models

Mobile ComputingEnhance the User Experience with Visual COBOL

• Build vibrant user interfaces. Deliver a better user experience

• Respond to consumer service demands

• Get ahead of the competition.

• Access COBOL applications and data from IPhone, Android, Windows 8, and Blackberry devices

• Create Web 2.0 & HTML 5 applications

• Build SOA-enabled systems

Benefits

Capability

ArchitecturePortable, agile, application deployment with Visual COBOL

• Reduce your Time to Delivery by up to 50%

• Flexible application deployment & greater choice

• Build once. Deploy anywhere!

• Enterprise-wide portability of COBOL business apps

• Application deployment across 50+ platforms including Windows, Unix, Linux, z/Linux, .NET, and JVM.

• Integration with modern technologies such as XML, SOA, Web Services, and Relational Databases

Benefits

Capability

Next Steps

Summary Points• Addressing the Forces of Change

requires a different approach: Innovative Thinking

• For the Enterprise application developer, the solution is:

The Value Profile Day• Understand your existing

application portfolio• Identify suitable candidates• Develop an application

roadmap • A ‘Free of Charge’ Service

Your Next Step

Book a Value Profile Day!