Are Clouds a Game Change? IT says no; Business says yes! Auction Elance.com Set high price and allow...
Transcript of Are Clouds a Game Change? IT says no; Business says yes! Auction Elance.com Set high price and allow...
Are Clouds a Game Change?
IT says no; Business says yes!
Andy Mulholland – Group CTO
Capgemini Group
Engagement Managers
Technology is at a Crossroads today
What role should Technology be playing in my business today?
Technology has become themeans by which Enterprises and theirEmployees can create new revenues by servicing customers and markets in new innovative ways.
The REVOLUTION in the ‘Front’ Office
What is the role of IT dept in the enterprise today?
The EVOLUTION of Back Office
The Revolution leads to Business Innovation
To create VALUE though a new market or product
A game-changing move that provides sustained ‘first mover’ advantage
To change COST of production and size of available market
A break through in any element of the operation of an enterprise
For SERVICABILITY to secure existing and new customers
Where market or product cannot be innovated, service can be used
Defocusing and loss of Optimisation
The immediate and obvious challenge thatany change will bring to an Enterprise
Conway’s Law
Enterprises cannot change beyond the constraints of their communications
The three common forms of innovation
The barriers to innovation
BUT Change is inevitable
Innovation is about controlling the timing and basis of change to be advantageous to our own business
Affinity Club MBNAExclusive membership offering advantages for subs and loyalty
Pay-as-you-go SalesForce.comReplace a CapEx product with an OpEx service
Brokerage Century 21stMatch buyers and sellers for a fee on successful transactions
Premium PhotocopiersExpensive item free, creating a tied market for consumables
Bundling iPod / iTunesConstruct new proposition by simplifying complex transactions
Reverse Auction Elance.comSet high price and allow bidding downward
Crowd Sourcing WikipediaOutsourcing content construction in exchange for broader view
Reverse Premium iPodProvide low-cost consumables to sell high-margin product
Disintermediation WebMDUsing technology to deliver direct not through limited local source
Product to Service HiltiSwitch from selling a unit to providing units as a managed service
Fractionalisation NetJetsCustomer pays for a part of the product but gets full use when needed
Smart Devices VodafonePackage combinations of product and services to maximise market
Freemium SkypeBasic service is free and ubiquitous with premium chargeable
Standardisation MinuteClincLow-cost standardised solution instead of high-cost customisation
Leasing MachineryLinkRecycle expensive products through a managed lease
Subscription Club NetFlixSubscription fee creates a tied in customer base
LowTouch SouthWestLow cost, self service in place of high cost with high service
User Communities Angie’s ListManaged network for common interest with revenue by advertising
Negative Operation
AmazonRe-arbitrage the ‘sell and buy’ cycle to finance the trader
Source: Seizing the White SpaceHarvard Business Press by Mark W Johnson
And the misunderstood topic of ‘Innovation’ (in Business Models)
Centralisation for Efficiency
Automation of core Procedures
Cost Reduction
Recharged Overheads
Leverage of Enterprise resources
Data-driven Transactions
Computer and Application centric
Closed and Secure
Justification is COST reduction
So Two very Different Business Models and Requirements
External Market Optimisation
Provides local market differentiation
People Driven Interactions
Expertise with Collaboration
Open with Privacy
Extreme flexibility, frequent change
Direct Bus Unit Attributed cost
Services and Standards based
Value creation in sales/margins
Client – Server
Information Technology
Web 2.0 and Clouds
Business Technology
+
A ‘Front Office’ Transformation led by Business Users & Customers
Apple Mac Downloads – Dec 12th 2011“In just three years the App Store changed how people get mobile apps,
and now the Mac App Store is changing the traditional PC software
industry,” said Philip Schiller, Apple’s senior vice president of
Worldwide Marketing. “With more than 100 million
downloads in less than a year, the Mac App Store is the largest
and fastest growing PC software store in the world.”
2011 iPad shipment forecast cut to 40M as
Apple faces 'the mother of all backlogs'
Android Smart Phone up 379% in Q2 2011,Android is now the No. 1 smart phone OS worldwide.
The smart phone market grew 73% year-over-year to
more than 107.7 million units shipped last quarter,
According to DigiTimes sources, non-Apple tablets are set to ship at
134% more units for 2012 than in the current year. In raw numbers,
expect 44-45 million non-Apple tablets to ship in 2012, up from
19-20 million. The large increase is attributed to Google’s
next major Android release, codenamed Ice Cream Sandwich, You don’t buy an iPad to use with Enterprise IT
The majority of Smart Phones are user owned
You don’t any longer do the following;
Because most of you bought a Smart Phone, or a Tablet or a Home PC;
Check Cinema showings by using the newspaper; - Buy tickets online
Go to a travel agent to research your holiday; - Book on line
Check a map for directions when driving ; - Use a navigator
Visit a Bank for every transaction; - Online bank account
Develop and send off photographs; - Print at home or share by cloud
Pay Bills by cheque or at an Office; - Online payments
And, and , and, personal behaviour has and is changing many industries;
But you do use a
wide variety new
services from
Internet Connected
Clouds
The Primary Purpose for each is differentand therefore so should the deployment and governance!
November 2006
TS - SAAS CIO
PRESENTATION V5.0.PPT
7
Back Office IT
Cost reduction and
process automation
Front Office
Market and Information
value producing
Application
Market
Customers
Suppliers
PartnersInside - Out
Outside - In
Web & Cloud Services
Innovation in Business Models
Outside – In is enabled by four Big Game changing Capabilities
© 2010 Capgemini. All rights reserved.
Insert "Title, Author, Date"
8
Mobility
Any Connection Any Device
Any Service
Cloud
Computer ResourcesApps and Services
On Demand
Big Data
Real-Time InformationAnd Intelligence
Storage and Search
Social Tools
Any Community Any Media
Any Person
Which together create the Business Revolution; an example around Servicing Aircraft between flights
9
Back Office
IT
Back Office
IT
Back Office
IT
Back Office
IT
Back Office
IT
Back Office
IT
Traditional IT Applications
Individual synchronised predictions
On plane scheduled arrival and
Activities with staff Inside the Firewall
Cloud based Services
Real Time Operations and reactions
Between staff sharing information
And communications
Inside-Out
Outside-In
In more detail the differences become clear
Inside – Out
Back Office IT
Outside - In
Front Office
Business Technology
Unstructured Events
Respond to the buyer
and the market
Unable to tell who may
know the answer or the
names of all the people
Social Networks are the
most effective tool as
they are ‘topic’ centric
and therefore scale
Enterprise IT
Structured by Data and Procedure
Work is delivered as expected
to the Worker/Manager
Roles and
Responsibilities
are clear
eMail is effective
to communicate
to these known
people and process
November 20061
1
The Outside-In v Inside Out paradigm
Close Coupled
State full
Deterministic
Applications
Client Server
Loose Coupled …….
Stateless …………………...
Non Deterministic …..
Services Based ……….
Web/Cloud Model ……
BusinessTechnology
Back Office ……………..
Operational …….
Cost Savings ………..
Compliance ……………...
Invest/Overhead …….
Front Office
Sales & Marketing
Value Creating
Innovative
Consumption
People & Event Centric ….
Shared and Collaborative ........
Standards defined …..……………………
Computer & Data centric
Closed and Limited
Proprietary
Externally Focussed
‘post PC and Mobility’
Tablets and Phones
Social Networks,
Real time Agility
Big Data
Internally Focussed
PC and Desktop
ERP and BI
Development Methods
Clouds; a misunderstood topic – the correct and simple explanation!
The current final stage in the development of a technology revolution;
1. The Internet – standardisation of connectivity
2. The Web (1.0) – standardisation of content
3. Web 2.0 - standardisation of social interactions
4. Clouds - standardisation of process elements
A shift from Client- Server Technology which is;
Close Coupled; State full and Deterministic
To Browser-Cloud Technology which is;
Loose Coupled; Stateless and Non Deterministic
The result?
Its not possible to make an architectural drawing illustrating what
system is connected to what system, how and for what, as a result;
Connectivity and Functionality can only be shown to a specific Cloud
The four different business and technology groups
1
3
Productivity of People
Social Networking
Collaboration
Tablets & Smart Phones
Computing Resource Shift
Everything as a Service
IaaS, PaaS, & SaaS
Evolution of IT Capabilities
Virtualisation of Data Center
Flexibility and Agility
Development & Test
Front OfficeInternal
Back OfficeInternal
ExternalResourcing
New Markets& Revenues
Innovative Business Models
Digital Transformation
Servicing customers
Front Office Revolution
The Cloud Transformed Enterprise
70%
15%
10% 5%
30%
40%
20%
10% 5% 5%5%
85%
5%
30%
60%
5%
20%
40%
30%
10%10%
30%
30%
30%
5%
60%
30%
5% 15%
40%40%
5%
20%
40%
35%
5%
35%
35%
25%
5%
Leader/Executive People ManagerTransactional/Process Execution Worker Knowledge Worker
Administrative AssistantNew Employee Contributor Networker
Professional Track/SME Mobile Worker/Road Warrior
Relationship Management/Decision MakingKnowledge Work CollaborationBusiness Processes
The odd one out!
‘Front Office Events’ are changing roles and activities
Traditionalist(55 - 65)
Boomers(45 – 55)
Gen X (30 – 45)
Millennials(18 – 30)
Training The hard wayToo much and
I’ll leaveRequired to keep
meContinuous and
expected
Learning style Classroom Facilitated IndependentCollaborative
and networked
Communication style Top-down Guarded Hub and spoke Collaborative
Problem-solving Hierarchical Horizontal Independent Collaborative
Decision-making Seeks approval Team informed Team included Team decided
Leadership styleCommand and
controlGet out of the
wayCoach Partner
FeedbackNo news is good news
Once per year Weekly/Daily On Demand
Technology use Uncomfortable UnsureUnable to work
without itExpected to be
Intuitive
Job changing Unwise Sets me back NecessaryPart of my daily
routine
Source: Lancaster & Stillman (2003)
The Social Revolution is a people and behaviours shift
The Agile Enterprise
SmartBusinessModels
BusinessUsers &
Managers
CEO
DecentralisedBusiness Technologies creating go-to-market
competitive capabilities enabling new revenues &
increased market access constantly changing open and interactive paid for from operating
budgets with direct cost allocation to demand
CIO
CFO
BusinessProcess
Outsourcing
CentralisedInformation Technology reducing internal operating
costs of running enterprise necessary for commercial
and legal governance stable and procedural closed and secure an overhead that must be
budgeted and recovered annually
PersonaliseAn Individual’s capability to choose their ‘tools’
and how they wish to ‘Interact’ and ‘collaborate’
DifferentiateA Manager’s capability to build locally unique ‘differentiating’
capabilities both externally and internally to create revenue
Core CompetencesCommon, shared core processes that support each differentiated offer
above, and connect to transactional IT applications below
Comply (ERP, etc.)Traditional Enterprise Applications with organised procedures
and data integrity, keeping compliant business results
Development & Deployment has to change to support the Agility
November 2006
TS - SAAS CIO
PRESENTATION V5.0.PPT1
7
PersonaliseAnIndividual’scapabilitytochoosetheir‘tools’
andhowtheywishto‘Interact’and‘collaborate’
Differen ateAManager’scapabilitytobuildlocallyunique‘differen a ng’capabili esbothexternallyandinternallytocreaterevenue
CoreCompetencesCommon,sharedcoreprocessesthatsupporteachdifferen atedofferabove,
andconnecttotransac onalITapplica onsbelow
Comply(ERP,etc.)Tradi onalEnterpriseApplica onswithorganisedprocedures
anddataintegrity,keepingcompliantbusinessresults
System
environments
SAAS
Solutions
Methodolog
y
Acceleration
centers
Factories Pricing
Apps
BOBJ
Business
Explorer
RoamBI
AppStore
SCRUM
Rapid Design
& Visualisation
Rapid
Innovation
Workshop
BI Reports
Apps
Factories
Per Report
Per App
Menu Card
Netweaver
BPM
Cordys
Duet Enterprise
Sharepoint
2010
Cordys BPM SCRUM
Rapid Design
& Visualisation
Rapid
Innovation
Workshop
Rapid Solution
Workshop
BPM Services As a service
Per
functionpoint
Menu Card
Netweaver
Sybase
Force.com
Business
ByDesign
Common
Reference
Architecture
(CORA)
Rapid Solution
Workshop
PI Factory Price per
interface
As a service
CRM
SRM
Sales on
Demand
SalesForce.co
m
Deliver
Rapid Design
& Visualisation
Scrum
Rapid Solution
Workshop
BI (Cubus) As a Service
Menu Card
Fixed Price
ERP Business
ByDesign
Deliver Rapid Solution
Workshop
Remote
Design &
Configuration
As a Service
Menu Card
Fixed Price
Copyright Capgemini 2012
1
8
Those cloud and mobile factors bring capabilities to handle mass amounts of data in
new ways, but also changes in responsibility for internal IT departments and their
accompanying budgets, Plummer said.
"As users take more control of the devices they will use, business managers are taking more control of
the budgets IT organizations have watched shift over the last few years. As the world of IT moves
forward, CIOs are finding that they must coordinate their activities in a much wider scope than they once
controlled,” Plummer said. “While this might be a difficult prospect for IT departments, they must now
adapt or be swept aside.“
Gartner predicts up to 35 percent of enterprise IT expenditures will be managed
outside of the IT department’s budget by 2015.
Because of this financial shift, IT departments will not always be contextualized by the technology that
surrounds them, and their budgets will more often be reallocated to other areas in the enterprise or
redefined on the basis of projects, according to Gartner.
Will It Happen?Taken from a public Web Site; Gartner Predictions for 2012
Source; http://www.information-management.com/news/cloud-unstructured-data-mobile-Gartner-2012-
10021632-1.html?ET=informationmgmt%3Ae2781%3A2263207a%3A&st=email
Microsoft Phone 7
Apple iPhone & iPad
2. Presentation, Usability and User Interface Experiences
The Post PC Era;
3. From Big IT Applications to Small Orchestrated Services
6.From tightly coupled computers to loosely coupled people!
Clients Desktops Software PCs
Network
ApplicationsDatabases
ServersHardware
StorageMiddleware
BrowsersMashUpsDevices
Collaboration
NetworkAbstraction and policies
Information
Virtualised OperationsHardware
Storage
ServicesIntegration
SystemIntegration
Technology based Integration of the Systems through Enterprise Architecture
Computer and Applications
PUSH Structured process & data
People interact and
PULL Unstructured Insights & Actions
The user and devices become the focus with management of ‘Services’ the new integration issue
7. Development & Deployment is changing
November 2006
TS - SAAS CIO
PRESENTATION V5.0.PPT2
6
System
environments
SAAS
Solutions
Methodology Acceleration
centers
Factories Pricing
Apps
BOBJ
Business
Explorer
RoamBI
AppStore
SCRUM
Rapid Design
& Visualisation
Rapid
Innovation
Workshop
BI Reports
Apps
Factories
Per Report
Per App
Menu Card
Netweaver
BPM
Cordys
Duet Enterprise
Sharepoint
2010
Cordys BPM SCRUM
Rapid Design
& Visualisation
Rapid
Innovation
Workshop
Rapid Solution
Workshop
BPM Services As a service
Per
functionpoint
Menu Card
Netweaver
Sybase
Force.com
Business
ByDesign
Common
Reference
Architecture
(CORA)
Rapid Solution
Workshop
PI Factory Price per
interface
As a service
CRM
SRM
Sales on
Demand
SalesForce.co
m
Deliver
Rapid Design
& Visualisation
Scrum
Rapid Solution
Workshop
BI (Cubus) As a Service
Menu Card
Fixed Price
ERP Business
ByDesign
Deliver Rapid Solution
Workshop
Remote
Design &
Configuration
As a Service
Menu Card
Fixed Price
Interchange
Public shared
Infrastructure
Private Internal
Infrastructure
8.Introduction of the Next Generation Data Centre
Next Generation Data Centre
Entire Data Centre acts as a single Resource not as a collection of individual resources
Servers, storage elements are all plug and play standardised units
No individual Operating Systems interfacing applications to hardware but a ‘cloud’ layer’ set of simple APIs interfacing Services to resources
Policy Management of Resources both own and external shared is key
Timeline showing Shift from support of Applications to support of Services
Shift from deterministic numbers of applications and systems to use of infinite resources and services
Re-Active toRequiredApplications
Optimised forOperationalOptimisation
Virtualised forOperationalFlexibility
Private Cloudto support growthin Services
Next Generation Data Centre
Choice of Applicationdictates O/Sand hardware
ConsolidationAnd RationalisationWith new tools
Virtualisation to improve efficiency in use of servers
Use of Cloud Middleware to support shift to ‘services’ on demand
Radical shift in requirements towards participation in a common environment with other data centres through hybrid clouds and new generation of users/devices
9. Mobility in Everything and Every Sense!
From Devices and Connections
To
Locations and
Interactions
But that won’t be all .....Consumer Trends are now driving even more