Presentation, Capgemini Executive Club - Copenhagen
- 1. Capgemini Executive ClubBusiness and Technology come together in new waysAndy Mulholland – Global Chief Technology Officer Capgemini
- 2. Don’t just ask what the role of the IT department in the Enterprise should be …The key question for 2011Ask what the role of Technology should be in the Business of the Enterprise
- 3. This simple statement covers a lot of new issues!End users autonomy or control – Apple, Web, SaaSSecurity, risks, and extent of controls = new policies and trainingServices and Clouds – evolution or revolutionA finance issue; Capex v Opex; or operational issue; Public, Private or HybridReal-time Data and Social NetworksA huge benefit to be unlocked, or a further problem around DataWhat is meant by ‘at work’If it’s not a physical place with fixed provisioned PCsBook to Bill in an online worldBack-office processes extending and connecting externallyCollaborative Agile BusinessThe decentralised and constantly changing ‘edge of business’
- 4. ‘Innovation!’ What does it really mean ?231The three common forms of innovationTo create VALUE though a new market or productA game-changing move that provides sustained ‘first mover’ advantageTo change COST of production and size of available market A break through in any element of the operation of an enterpriseFor SERVICABILITY to secure existing and new customers Where market or product cannot be innovated, service can be usedThe barriers to innovation Defocusing and loss of Optimisation The immediate and obvious challenge thatany change will bring to an EnterpriseConway’s LawEnterprises cannot change beyond the constraints of their communicationsBUT Change is inevitableInnovation is about controlling the timing and basis of change to be advantageous to our own business
- 5. Innovation - 19 Technology enabled ‘NEW’ Business ModelsSource: Seizing the White SpaceHarvard Business Press by Mark W Johnson
- 6. But there is also ‘Innovation’ in people and their attitudesSource: Lancaster & Stillman (2003)
- 7. Six Different Roles now decide on how and where to use TechnologySmartBusinessModelsBusinessUsers &ManagersCFOCEOBusiness Infrastructure BusinessProcessOutsourcingCIO
- 8. In summary, the use of and value from people has changed…IT has been successfulIn its goal of automating Processes !BusinessProcesses7%But what about the rest?Time Spent by Work Type
- 9. External Conditions have become the ‘real’ issuemixed and weak signalsValue CreatingFocused and strong signalsOpportunitiesOperationsSales SupportBilling &Collections Business IntelligenceTransactionsEventsCost DrivenExternalWeb & CloudsInternal Enterprise ITSource and copyright by Peter Evans-Greenwood, Unicopty
- 10. Four major ‘zones’ of business use and technologyExternalInternalWeb 2.0 ServicesCloud ServicesPeopleWeb ServicesInteractional ServicesState-less Loose Coupled Shared ServicesState-less Loose Coupled ComputersApplicationsTransactionalApplicationsState-full Close Coupled SharedSourcesEverything asa ServiceTraditional ITCloud Computing
- 11. Put together and the real challenges appear …Web 2.0 ServicesCloud ServicesOpportunitiesSupportingPeople and ExpertiseInternational ServicesState-less Loose Coupled Shared ServicesState-less Loose Coupled Value OperationsSales SupportBilling &Collections SupportingComputers and SystemsTransactionalApplicationsState-full Close Coupled SharedSourcesEverything asa ServiceBusiness IntelligenceCostCloud ComputingTraditional ITInternalExternal
- 12. With the resulting conflicts in expectations …Enterprise 2.0How do we encourage decisionsupport and expertise sharing?Cloud & Web TechnologiesTo create products and compete in external markets providing differentiation and customisation for revenues and profitsValue How do we control ‘Social’ toolsand Collaboration?IT TechnologiesAutomation and cost managementinternally and centrally forefficiency and regulatorysupportCan we support a wholly different business model?CostCan we reduce costs by virtualisation and sharing?InternalExternal
- 13. So what are the real changes?The nine key points to grasp
- 14. Clouds – the correct and simple explanation!The current final stage in the development of a technology revolution;The Internet – standardisation of connectivityThe Web (1.0) – standardisation of contentWeb 2.0 - standardisation of social interactionsClouds - standardisation of process elementsA shift from Client- Server Technology which is; Close Coupled; State full and DeterministicTo Browser-Cloud Technology which is;Loose Coupled; Stateless and Non DeterministicThe 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
- 15. 01 People, Real-Time Data and Process are the new focus
- 16. 02 Presentation and usability is radically differentConsumerisation of ITApple iPhone & iPadMicrosoft Phone 7
- 17. 03 How it is developed and deployed changes …Amazon, eBay, YahooFlicker, YouTube, Facebook, MediaWiki, SocialText, PBWiki, TikiWikiAIM, Yahoo, MSN. GtalkGoogle. Bing, Yahoo, CraigslistBlogger, WordPress,TypePadFacebook.TwitterOutlook,Hotmail, Yahoo, GmailWin CE, BB, iPhoneWebEx, Goto Meeting, SkypePublicSAP Portal, MS BPOS-D, LotusLiveMS On-line, Qiuckbase, Custom appOutlook, Yahoo, Hotmail, GmailMS OfficeMS Search, Fast Win CE, BB, iPhoneWebEx, Goto MeetingLive Comm’r,AIM PartnersUser Type/Work TypeRelationship Management12%WorkflowSharepointServicesMS Office, Adobe, IECollaboration38%SAP Portal BlackberryBT \ Tandberg \WebEx LotusDomino – AppsLotus Sametime IDOL – Search Lotus Notes – EmailLotus ConnectionsKnowledgeWork 43%Desktop Apps (SAP, etc.)Static SitesOracle Content ManagementBusinessProcess7%ContentSharingCollaborationConferencingAudio Videoon line meetingsTaskExecution Content PublishBusinessNetworkingMobileMessagingSearchContentCreationeFormsWorkflowReal-timenon-persistent non-searchableUser Interaction
- 18. 04 Who and where it is used in the Enterprise is newBusinessUsers &ManagersDecentralisedBusiness Technologiescreating go-to-market competitive capabilities
- 19. enabling new revenues & increased market access
- 22. paid for from operating budgets with direct cost allocation to demandPersonaliseAn Individual’s capability to choose their ‘tools’and how they wish to ‘Interact’ and ‘collaborate’CEOSmartBusinessModelsDifferentiateA Manager’s capability to build locally unique ‘differentiating’ capabilities both externally and internally to create revenueCore CompetencesCommon, shared core processes that support each differentiated offer above, and connect to transactional IT applications belowCFOCentralisedInformation Technologyreducing internal operating costs of running enterprise
- 23. necessary for commercial and legal governance
- 26. an overhead that must be budgeted and recovered annuallyCIOComply (ERP, etc.)Traditional Enterprise Applications with organised proceduresand data integrity, keeping compliant business resultsBusinessProcessOutsourcing
- 27. 05 From tight couple computers to loose coupled people! Computer and ApplicationsPUSH structured process dataPeople interact andPULL contextual informationClients Desktops Software PCsServicesIntegrationBrowsersMashUpsDevicesCollaborationNetworkNetworkAbstraction and policiesInformationApplicationsDatabasesServersHardwareStorageMiddlewareVirtualised OperationsHardwareStorageSystemIntegrationTechnology based Integration of the Systems through Enterprise ArchitectureThe user and devices become the focus with management of ‘Services’ the new integration issue
- 28. 06 Introduction of the Next Generation Data CentreShift from deterministic numbers of applications and systems to use of infinite resources and servicesNext Generation Data CentreNext Generation Data CentrePrivate Cloudto support growthin ServicesEntire Data Centre acts as a single Resource not as a collection of individual resources
- 29. Servers, storage elements are all plug and play standardised units
- 30. No individual Operating Systems interfacing applications to hardware but a ‘cloud’ layer’ set of simple APIs interfacing Services to resources
- 31. Policy Management of Resources both own and external shared is keyVirtualised forOperationalFlexibilityOptimised forOperationalOptimisationRe-Active toRequiredApplicationsTimeline showing Shift from support of Applications to support of ServicesUse of Cloud Middleware to support shift to ‘services’ on demandRadical shift in requirements towards participation in a common environment with other data centres through hybrid clouds and new generation of users/devicesChoice of Applicationdictates O/Sand hardwareConsolidationAnd RationalisationWith new tools Virtualisation to improve efficiency in use of servers
- 32. 07 Rich Internet Applications change everything Real-time interaction with and perception of surroundings
- 33. 08 It’s added a whole additional functional environmentClient – Server Information TechnologyWeb 2.0 and CloudsBusiness TechnologyCentralisation for Efficiency
- 34. Automation of core Procedures
- 35. Cost Reduction
- 37. Leverage of Enterprise resources
- 39. Computer and Application centric
- 41. Justification is COST reduction
- 43. Provides local market differentiation
- 47. Extreme flexibility, frequent change
- 48. Direct Bus Unit Attributed cost
- 49. Services and Standards based
- 50. Value creation in sales/margins+
- 51. 09 Smart Business in ‘White Space’ innovation is the goalPoor fit to currentOrganisationDistractingInnovationWhite SpaceInnovationOrganisationalChangeAdjacent BusinessActivitiesCore BusinessActivitiesGood fit to currentOrganisationExisting CustomersWith existing productsExisting or New CustomersExtension to existing productsProduct ChangeSource; Seizing the White SpaceHarvard Business Press by Mark w Johnson
- 52. Where to start?Core focus areas!
- 53. Constructing a focussed Action PlanInfrastructureIntegrationIntelligenceInnovationHeadings are based on the Four Focus points principle of Ray Wang – actions are defined by Capgemini
- 54. Roundtables
- 55. Topics for roundtablediscussionsIs this reality in your company?What are the challenges for you?How will you start the journey?
Editor's Notes
- #16: KEY MESSAGE: Externalisation will force change in the company as well, and open source can be a big catalystSuccess is now about openness to change, sharing, and co working …to enhance your product, service or idea…and this external orientation of course is brought back into the organisation by employees. There are litterally hundreds of social networks available for anyone to connect, share and collaborate online. And in a knowledge-centered economy, this brings huge powers into the organisation when used well. Of course we all know Twitter, which really set off in NL since the crash of Turkish Airlines flight 1951 in February this year. Twitter was found to be the fastest way to get the latest info on what was happening in the fields near Schiphol. And there are many others, like LinkedIn, Plaxo, Facebook, Brightkite etcetera.In the past year, over 4000 Capgemini employees for instance joined Yammer, a Twitter-like service that creates a private community for people with the same domain name in their email address. So in short, everyone registering with a Capgemini email address is automatically inserted into the online Capgemini community. And if I want to know quickly what the majority of last week’s discussions were about, I just have to look at the tag cloud provided. And as you can see, open source is actually on the minds of many of my colleagues.And to make matters more complex, all the services you see here run outside of the control of the often internally oriented, cost-focussed IT organisation!