are clouds a game change? business says yes; it says no!

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The technology industry has frequently been challenged over its ability to ‘hype’ or ‘misrepresent’ a topic, but in the case of Clouds a remarkable new challenge has occurred in the difference in the view of what clouds represent to Business and IT managers. How can this be? And why are the 2012 predications of Analysts adding ‘fuel to the flames’ of the Cloud debate.

Are Clouds a Game Change? Business says Yes; IT says No!

0112 cloud europe.pptx 1

Synopsis

Are Clouds a Game Change? Business says Yes! IT says No!

Andy Mulholland Global Chief Technology Officer, Capgemini Group

This presentation


The difference between Cloud as a cohesive set of capabilities that

together with Mobility, Big Data and Social Networks create a

revolution in business capabilities 1

The use of key technologies from the Cloud to provide an

evolutionary set of capabilities to Enterprise IT 2

Provides a ‘use case’ model to illustrate these differences

in a ‘real’ business situation 3

Explores the drivers and the predicted change

in Enterprise Investment 4

But we are playing in a new confused model and need „partners‟


Innovative Business Models

Digital Transformation

Servicing customers

Front Office Revolution

Computing Resource Shift

Everything as a Service

IaaS, PaaS, & SaaS

Productivity of People

Social Networking

Collaboration

Tablets & Smart Phones

Evolution of IT Capabilities

Virtualisation of Data Center

Flexibility and Agility

Development & Test

The Transformed Enterprise

Front

Office

Internal

Back

Office

Internal

New

Markets

& Revenues

External

Resourcing

Making it understandable by an Example: Servicing the Aircraft


Individual synchronised predictions on

plane scheduled arrival and activities with

staff inside the firewall

Real time operations and reactions

between staff sharing information and

communications

Traditional IT Applications Cloud based Services

Back Office IT Back Office IT Back Office IT Back Office IT Back Office IT Back Office IT

Outside – In

Inside – Out

A Transformed Enterprise uses an external Business Model


Business Technology

Orchestrations

Outside – In

Front Office

Inside – Out

Back Office IT

Information

Technology

Enterprise

Architecture

•Structured Procedural

•Close Coupled

•State-full

•Deterministic

•Monolithic Applications

•Unstructured Events

•Loose Coupled

•State-less

•Non - Deterministic

•Granular Services

The Transformed Enterprise has added a whole new environment


Business Technology

Unstructured Events

Enterprise IT Structured by

Data and Procedure

Work is delivered as expected

to the Worker/Manager

Respond to the buyer

and the market

Roles and

Responsibilities

are clear

Unable to tell who may

know the answer or the

names of all the people

eMail is effective

to communicate

to these known

people and

process

Social Networks

are the most

effective tool as

they are ‘topic’

centric and

therefore scale

Inside – Out Back Office IT

Outside – In Front Office

And its a Web based revolution continued to the next level


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;

To Browser-Cloud Technology which is;

Close Coupled; State full and Deterministic

Loose Coupled; Stateless and Non Deterministic

It‟s 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 result?

Boundaryless Information Flow is technically possible now

but we need to grasp process challenges.

Applications

Client Server

Close Coupled

State-Full

Deterministic

Services

Browser - Web

Loose Coupled

Stateless

Non Deterministic

The Transformed Enterprise is an „Integrated‟ Enterprise;

Technically, Commercially and above all in its Processes!

Focus is

‘Inside – Out’ Focus is

‘Outside – In’

Productivity

of People Innovative Business Models

Evolution

of IT Computing Resources

You don‟t

buy an iPad

to use with

Enterprise IT

A Transformation driven by People as Workers and as Customers

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 check or at an office Online payments

You don‟t any longer do the following: But you do seek

verification of facts

and insights by checking

social networks

increasingly

Because most of you bought a Smart Phone or a Tablet or a Home PC

The majority

of Smart

Phones are

user owned

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,

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.

2011 iPad shipment forecast cut to 40M as Apple faces 'the mother of all backlogs'

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.”

And noted in Gartner Predictions for 2012


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 this 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.

Source: http://www.information-management.com/news/cloud-unstructured-data-mobile-Gartner-2012-10021632-

1.html?ET=informationmgmt%3Ae2781%3A2263207a%3A&st=email

http://www.information-management.com/news/cloud-unstructured-data-mobile-Gartner-2012-10021632-1.html?ET=informationmgmt:e2781:2263207a:&st=email

















Transforming the 1990s BPR and ERP internal Business Model

analysis

treatment

options

diagnosis

healthcare

records

search viral

marketing

health

education

life care

recruitment

treatment

choice

disease

management

prescribing

care

basic

research

off-label

use

diagnostics

drug interactions

contraindications

condition

monitoring

analysis

new product

development

manufacturing

marketing

discovery

trials

sales

regulatory

approval

treatment

guidelines

Healthcare

Patient

Health & Medical Information

Medical

Regulators

Suppliers

Academia

Integrated Pharmaceutical

Network

commercial

management

partner

management

brand

management

strategic

management

business

architecture

safety

management

product portfolio

management

personalised

treatment

dispensing

animal models

novel

diagnostics epidemiology

surrogate

end-points

logistics

Pharmaceutical

Business

Which introduces the misunderstood topic of „Innovation‟ (in Business Models)


Affinity Club MBNA Exclusive membership

offering advantages for

subs and loyalty Pay-as-you-go SalesForce.com

Replace a CapEx product

with an OpEx service

Brokerage Century 21st Match buyers and sellers

for a fee on successful

transactions Premium Photocopiers

Expensive item free,

creating a tied market for

consumables

Bundling iPod / iTunes Construct new proposition

by simplifying complex

transactions Reverse Auction Elance.com

Set high price and allow

bidding downward

Crowd Sourcing Wikipedia Outsourcing content

construction in exchange

for broader view Reverse Premium iPod

Provide low-cost

consumables to sell

high-margin product

Disintermediation WebMD Using technology to deliver

direct not through limited

local source

Product to

Service Hilti

Switch from selling a unit

to providing units as a

managed service

Fractionalisation NetJets Customer pays for a part of

the product but gets full use

when needed Smart Devices Vodafone

Package combinations of

product and services to

maximise market

Freemium Skype Basic service is free and

ubiquitous with premium

chargeable Standardisation MinuteClinc

Low-cost standardised

solution instead of

high-cost customisation

Leasing MachineryLink Recycle expensive products

through a managed lease Subscription Club NetFlix

Subscription fee creates a

tied in customer base

LowTouch SouthWest Low cost, self service in

place of high cost with high

service

User

Communities Angie’s List

Managed network for

common interest with

revenue by advertising

Negative Operation Amazon Re-arbitrage the „sell and

buy‟ cycle to finance the

trader

The Innovation is to adopt people centric business models


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 that

any 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

Outside – In is enabled by four Big Game changing Capabilities

© 2010 Capgemini. All rights reserved.

0112 cloud europe.pptx

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5

Mobility

Any Connection Any Device

Any Service

Cloud

Computer Resources Apps and Services

On Demand

Big Data

Real-Time Information And Intelligence

Storage and Search

Social Tools

Any Community Any Media

Any Person

Its not just a revolution in Technology but in working practices too


Traditionalist (55 - 65)

Boomers (45 – 55)

Gen X (30 – 45)

Millennials (18 – 30)

Training The hard way Too much and I’ll leave Required to keep me Continuous and expected

Learning style Classroom Facilitated Independent Collaborative 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 style Command and control Get out of the way Coach Partner

Feedback No news is good news Once per year Weekly/Daily On Demand

Technology use Uncomfortable Unsure Unable to work without it Expected to be Intuitive

Job changing Unwise Sets me back Necessary Part of my daily routine

Summary
