Addressing the Forces of Change

We Are All Agents of Change!

…so why is change so difficult?

Our Discussion

Industry

Pressures

The IT Scorecard

Barriers to

Innovation

Introducing

Visual COBOL

The Road Ahead

– Smart Thinking

Current

Perspectives

FLAT US ECONOMIC GROWTH: 0.1% GDP

Current Perspectives

Flat US Economic

Growth: +0.1% GDP

Record US Debt: 16.6T

Job-less Recovery:

Unemployment at 7.6%

Downgraded S&P

Credit Rating: AA+

Sequestration:

85B in Budget Cuts

Current Perspectives

Flat US Economic

Growth: +0.1% GDP

Record US Debt: 16.6T

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 IT’S IT MANAGEMENT WITHIN

IT’S 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

Government Legislative Action

• Fiscal Cliff Negotiations

• Debt Ceiling Debate

• Higher Tax Rates

• New US Healthcare Law

• Sequestration

• State & Local Gov. budget cuts

• IRS

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

RU

PT

IVE

T

EC

HN

OL

OG

IES

Cloud

computing

Mobile

Social Media &

Collaboration

Analytics

& Big Data

Innovations to

Change the Face

of BusinessDigital 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

PT

IVE

T

EC

HN

OL

OG

IES

Cloud

computing

Mobile

Social Media &

Collaboration

Analytics

& Big Data

Innovations to

Change the Face

of BusinessDigital 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

RU

PT

IVE

T

EC

HN

OL

OG

IES

New Architecture

Mobile

Cloud

Development

Efficiency

Skills and

Organization

Introducing Visual COBOL

Scot NielsenProduct Manager

Embracing Innovation with Visual COBOL

REDUCTION OF BACKLOG / IT DEBT

DIS

RU

PT

IVE

T

EC

HN

OL

OG

IES

New Architecture

Mobile

Cloud

Development

Efficiency

Skills and

Organization

Embracing Innovation with Visual COBOL

Cloud

Mobile

New Architecture

Skills and

Organization

Development

Efficiency

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