Cloud Apps World 2014

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Unlocking the business value of integrating data into the cloud

Transcript of Cloud Apps World 2014

  • Cloud Apps World Excel London November 12. 2014 1

    BITSABusiness/IT Strategy & Architecture

    Cloud Apps World Europe

    Unlocking the value of Big Data/Analytics

    Linkedin: Steef Klein

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    Comprehending the challenges of storing and understanding big data Best practice in using the cloud to better manage data (big and small) Examining the benefits: Case study examples of cloud data management optimising


    Analysis: What tools are available to use the cloud to analyse big data and boost its value?

    Security considerations: Necessary steps organisations should take to safeguard data accessed via the cloud

    Data Management Panel Unlocking the business value of integrating data into the cloud

    #Appsworld: November 12. 14:00

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    Big data competitors. These are organizations that have access to extensive information from operations or customer relationships, and use that data intensively. Examples include investment

    firms and functions such as marketing.

    Overachievers. These are organizations that have limited access to data, but are committed to using it as much as possible to inform decisions. Examples include consumer packaged goods

    companies and operations departments.

    Underachievers. These are organizations that have access to extensive information, but fail to take advantage of it. Examples include telecom companies, and finance and sales departments.

    Disadvantaged. These are organizations with limited access to data that rarely use information to support the business. Examples include healthcare and human resources.

    Big/Data analytics The industries willingness to use it.

    Source: Thomas Davenport

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    The rise of the 3rd platform Dedicated, agile and integrated solutions will prevail

    In 2020 > 90% of the total IT industrys growth will be based upon 3rd platform initiatives

    The industrys 3rd platform revenue will be 40% of the total IT industry's revenue A mature 3rd platform will support all SMACT building blocks.

    Source: IDC SMACT: Social business, Mobile solutions, big-data/Analytics, Cloud services & internet of Things

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    SMACT Building Blocks Social business, Mobile solutions, big-data/Analytics,

    Cloud services & internet of Things

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    Cloud Computing Services SMACT is on the move

    In 2014, parts of SMACT has reached the plateau (aPaaS, SaaS, mobile) Big Data is lagging; software industry must integrate this within aPaaS IoT is on the radar, but still needs time to mature Cloud Services, aPaaS, Mobility, SaaS, iPaaS, will reach plateau within 2 years. Social Technologies not mentioned (from IDC), but is embedded within aPaaS, Mobile, etc

    Source: Gartner

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    Mission, Vision & Strategy Many companies struggle with the execution

    Over 50% of all European companies have a negative Free Cash Flow to Firm (Equity) -2013- Many of these companies struggle to lower their WC, COGS, etc. A sound strategy in combination with an embedded business model change is needed Previous too complex 2nd platform related IT solutions prevented a successful roadmap

    Source: Aswath Damodaran







    ThemeOperations Management Objectives Measurement Target Initatitives Budget

    Operating Margin

    Return on Capital

    Revenue growth

    On time,

    error free


    Short delivery


    value added




    Optimize Supply Chain

    & Manufacturing


    Value Streams &

    Intelligent equipment.

    Strategic SystemsDecision making environment

    Big Data/Analytics supportMobile solutions

    High degree of flexibilitySkilled and trained workforce

    Social manufacturing environmentChange Innovation process (IT)

    Middle Management/

    Workforce alignment

    Improve ProfitabilityImprove present and future excess investment returns

    Increase Revenue

    Right, error free, on time parts

    Be close to the customer Deliver intelligent value

    stream equipment

    Initiate Quality Control Program

    Best in class supply chain & manufacturing KPIs

    Identify Value Streams; Use Mechatronica

    Middle Management & Workforce aligned with


    Develop the necessary skills (Lean/Six sigma)

    Implement modern systems

    Reorganize R&D, multidisciplinary teams

    Acquire IT personnel Introduce SCRUM

    Market value percentageOperating income (EBIT)Return On Capital (ROC) Free Cash Flow to Firm growth (FCFF)

    On time delivery to commitDelivery timeCustomer retention rateNew customers

    > 99% < 2 days> 90% > 10% of Revenue

    >30% > 15% of revenue > 12,5 % > 7,5% annually

    Total supply chain costsOrder fulfillment lead timeKey components material availabilityInventory turnover rateReturn on R&D investment

    8 > 18%

    Strategic awareness

    Strategic job readiness

    Systems availability

    Reorganization readiness

    Profiles & acquisitionSCRUM certification

    Yr1 100%

    Yr1 75%; Yr2 100%

    Yr1 - 75%; Yr2 100%

    Yr1 100%

    Yr1 100%Yr1 80%; Yr2 100%

    $ XXX $ XXX $ XXX $ XXX $ XXX

    $ XXX $ XXX

    $ XXX $ XXX $ XXX

    $ XXX

    $ XXX

    $ XXX

    $ XXX

    Global processes Standardize local factory processes

    Extend Service networkHunter approach

    Renew ERP Implement MES (Incl. Quality)

    Implement APS (SOP)Improve CRM usage Strengthen PLM

    Global Strategy Program

    Job profiles, training

    Communications program

    Develop training schedule & execute

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    Optimising your ROI using the 3rd platform Average annual cost savings about $730K per 100 users

    WC and COGS reduction not taken into account. A 50% reduction of the total supply chain costs is possible within companies which are laggards.




    9% Business productivity

    Infrastructure cost reduction

    IT staff productivity

    User productivity

    Source: IDC

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    High level supply-chain metrics Improving KPIs

    Source: SCOR

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    On premise based Capex & Working Capital

    Revenue 700.000

    EBIT(1-t) 45.000

    Total WC (15% of revenue) 105.000

    Total Capex 42.000

    IT Capex (3% of revenue) 13.704

    Total Capex depreciation 33.600

    Change in NCWC 0

    FCFF 36.600

    Cloud based Capex & working Capital

    Revenue 700.000

    EBIT(1-t) + internal IT Opex 46.824

    Total WC (11.25% of Revenue) 78.750

    Total Capex 37.686

    IT Capex (2.1% of revenue) 9.390

    Total Capex depreciation 30.149

    Change in NCWC -26.250

    FCFF 65.537

    Operational Excellence improvement The possible influence of Enterprise aPaaS on Operational Excellence

    (An example Figures are indicative)

    Revenue of a medium sized manufacturing company Starting WC is 15% of revenue; based on average WC research in the Mfg industry sector. Best in class companies have a Non Cash Working Capital lower than 10% of revenue An optimal supply-chain can reduce NCWC with 50% when a more complex supply-chain is at hand.

    In this example the operating Income Margin (tax rate) equals 6.4% of revenue. (Laggard) The FCFF rises with 168%; the intrinsic value of the company , which is calculated over multiple years will increase.

    A business plan written for many manufacturing companies with a sound strategy will in most cases result in moving from a laggard to a best in class company.

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    How to improve your equipment OEE How can the OEE of an important asset be improved.

    Down time: $100,000 revenue loss each hour. Move to predictive or prescriptive maintenance. Use Big-Data/Analytics to gather and analyze the information, Use the SMACT building blocks in order to inform responsible management. Use Hadoop to gather and process the data from a variety of sources. Use e.g. Apache Mahout, a Hadoop add-on, to create predictive algorithms. Use NewSQL or Graph databases to store collected data. Use an Enterprise aPaaS solution to retrieve and display the information.

    Source: Big Data Predictive Analytics for Proactive Semiconductor Equipment Maintenance: A Review

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    Enterprise aPaaS Platform




    Data Store



















    6 1



    Mapping &





    d D




    y U



    ial d





    & f






    4 Create predictive algorithms inside Hadoop add-on

    5 Store all relevant data into a NewSQL or Graph database

    6 Use aPaaS platform+add-ons to

    display end-results

    1 Define the different sources to mine

    3 Map/Reduce data in Hadoop cluster

    Retrieve initial data and filter and

    format data within aPaaS platform 2

    Big Data/Analytics Use case example

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    Cloud services and security Will public Cloud services be accepted by the industry?

    Having your own Enterprise App store is essential. Monitoring & controlling enhances corporate security, industry compliance and employee


    If your aPaaS platform has a FISMA compliancy it will be certified and accredited by the US Government.

    New dedicated, multi-tenant government instances will allow U.S. federal, state, and local agencies to rapidly deploy the latest social and mobile technologies in compliance with

    FISMA requirements.

    New AppExchange for Government delivers the app marketplace where agencies can find, try and deploy cloud apps for the public sector.

    New Government Partner Accelerator Program will train an army of 1,000 integrators to transform government IT with cloud solutions.

    Two-thirds of U.S. federal Cabinet-level agencies and governments in more than 80 percent of U.S. states trust to power their social enterprises.

    The most eloquent example:

    The US government accepts Salesforce1s aPaaS solution as a secure platform, which is FISMA compliant.


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    Available aPaaS development environments Some available tools to support complete SMACT


    Worlds most powerful aPaaS polyglot platform.

    Elastic Beanstalk

    Amazons aPaaS solution


    Microsofts aPaaS solution


    An aPaaS differentiator


    The Drupal only platform


    The leader in Gartners aPaaS magic quadrant Openshift

    Red Hats aPaaS solution

    Engine Yard

    Ruby, PHP and Node.js

    Google App Engine

    Java and Python


    Primarily Java

    Cloudera Enterprise

    Hadoop based

    Enterprise Datahub Services


    An independent aPaaS solution

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    BITSABusiness/IT Strategy & Architecture