Transcript Digital Transformation:How does one go about it?

Digital Transformation:
How does one go about it?
Anand Deshpande
[email protected]
@anandesh
20 July 2015
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Computer Measurement Group is a not-for-profit,
worldwide organisation of IT professionals committed to
sharing information and best practices focused on
ensuring the efficiency and scalability of IT service
delivery to the enterprise through measurement,
quantitative analysis, and forecasting.
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Computer performance is characterized by the amount of
useful work accomplished by a computer system or computer
network compared to the time and resources used.
Depending on the context, good computer performance may
involve one or more of the following:
● Short response time for a given piece of work
● High throughput (rate of processing work)
● Low utilization of computing resource(s)
● High availability of the computing system or application
● Fast (or highly compact) data compression and
decompression
● High bandwidth / short data transmission time
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http://en.wikipedia.org/wiki/Computer_performance
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In technology, response time is the time a
system or functional unit takes to react to a
given input.
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Question: When should you start
counting?
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When Business makes the
request?
When the IT Department
gets the request?
When Computer Systems
gets the request?
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When Business makes the
request?
When the IT Department
gets the request?
When Computer Systems
gets the request?
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When Business makes the
request?
When the IT Department
gets the request?
When Computer Systems
gets the request?
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Today, we have a problem!
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Businesses are under
pressure.
IT Departments are
not able to respond
fast enough to
business requests.
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We have all
experienced
fabulous customer
experience that was
possible only
because of the
innovative use of
technology.
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For example,
Customer Delight at
the Apple Store.
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Or the “efficient”
experience on the
Amazon
ecommerce site.
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or the sheer innovation in
business models such as AirBnB or
Uber.
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Founded in 2009, as of its last
round of investment, Uber was
valued at over US$40 billion and
unverified reports claim the
company is grossing several
billion US dollars a year in
revenues.
http://www.wsj.com/articles/ubers-new-funding-values-it-at-over-41billion-1417715938
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Born-digital Companies are
the Benchmark for what is
Enterprise Digital!
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How does one compete?
130000
Employees
150,000
Guests/Night
42000
110 Mn
Employees
Users
600
350,000
55
400 Mn
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Digital disruption inspires both fear and
hope
130000
Employees
600
150,000
Active
Accounts
350,000
1.8 Bn
Active
Accounts
148 Mn
$8 Bn
Revenue
$ 6.6 Bn
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Are we at
risk of
getting
extinct?
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Why Software is Eating the World …
More and more major businesses and industries
are being run on software and delivered as
online services—from movies to agriculture to
national defense. Many of the winners are
Silicon Valley-style entrepreneurial technology
companies that are invading and overturning
established industry structures. Over the next 10
years, I expect many more industries to be
disrupted by software, with new world-beating
Silicon Valley companies doing the disruption in
more cases than not.”
The Wall Street Journal in August 2011
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There is a need for a
transformation.
Can IT keep pace?
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Enterprises are on a journey to
leverage SMAC technologies to
upgrade their infrastructure to
improve efficiency and to
reduce costs.
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SMAC driving IT Modernization
●
●
●
●
●
●
●
Virtualization
Cloud Migration
Application Rationalization
CRM Implementation
BYOD Implementation
Setting up big data warehouse
Setting up internal and external
communities
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Efficiency and
Productivity are the
main drivers for
Enterprise IT
Modernization.
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120%
100%
30% reduction
in cost!
80%
60%
Business Apps
40%
ADM
20%
Packaged Software
0%
Infrastructure
Pre Cloud
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Post
Cloud
Migration to the
cloud and IT
Modernization
has the potential
of reducing
costs by over
30%.
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Enterprise IT
Modernization is a
big effort.
Will our customers
Do we have to wait
for it to complete?
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Fundamentally, will
IT Modernization ever
lead us to Enterprise
Digital
Transformation?
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Email
on cloud or on
premise …
it feels the same!
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Transformation is primarily being
effected in these three areas
`
…In our sample, no
company has fully
transformed all
elements…
Speed and
prioritization of
building blocks varies
by customer…
MIT Sloan 2013 Digital Transformation Global Exec Study and Research
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“When companies adopt
technology, they do old
things in new ways;
when companies internalize
technology, they find
disruptive new things to do.”
Mark Zuckerberg,
CEO Facebook
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Enterprise Digital
Transformation
Enterprise IT
Modernization
Enterprise IT Modernization and Enterprise Digital Transformation do
not mix!
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IT’s approach is to
build a complete
solution
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∀𝑥
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Business
will accept
∃𝑥
Starting with some 𝑥
incrementally getting to all.
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How does one go about a Digital
Transformation?
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1
Six Facets of Digital
Transformation
Think Vision:
Build to a
Roadmap
Software driven business
Platform, not solution.
Technology led, to transform the
business model.
Disrupt
with
Technology
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1
Six Facets of Digital
Transformation
Software driven business
Think Vision:
Build to a
Roadmap
Involve All
Stakeholders
Design thinking to innovate
Involve stakeholders, make it
matter to business
Focus on User
Experience
Disrupt
with
Technology
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1
Six Facets of Digital
Transformation
Software driven business
Think Vision:
Build to a
Roadmap
Build
Incrementally
& Iteratively
Involve All
Stakeholders
Digital team: Domain experts,
UX and full-stack technology.
Agile: Incremental and iterative
Focus on User
Experience
Build a Digital
Team
Disrupt
with
Technology
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Build bi-modal capability, operating at
two speeds, with common governance
Business Demand
DIGITIZATION
Small, Bite sized chunks
….Its a journey and not a
destination…
App
App
App
DIGITAL PROGRAM
App
App
IT
Infrastructure
App
MODERNIZATION
Big Efforts ….and we don’t
have to wait for it to
complete….
Time
Courtesy: APIGEE
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3
Data strategy is central to
Enterprise Digital Transformation
Data
Apps
ERP
Database
Operating
Systems
Mainframe
1975
1985
1995
2008
2016
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What comes first -- Structure or data?
Data
Schema/
Structure
Structure First is Constraining
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Is the Data Path Chaos BLOCKING
your path to a Digital Enterprise?
Public
API’s
Contact
Center
Smartphone
Apps
Website
Apps
Tablet
Apps
Store/Branch/PoS
RESTful
services
BPO
IM
DB
CMS
DB
Despite decades of
IT investments, most
companies do not
have a digital
operating model
because they could
not scale integrations
easily, an opportunity
possible today with
RESTful APIs.
ESB
ETL
Unstructured
Information
Courtesy: Ignite Service Design Forum
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API first approach speeds up your ability
to deliver a Digital Enterprise
Task Specific Apps
Process Specific/
Orchestration Apps
Corporate
Directory
Search
Technology
Public
API’s
Contact
Center
Smartphone
Apps
Tablet
Apps
Website
Apps
Store/Branch/PoS
API and Services Platform
Mobile Device Management, Mobile Container, Enterprise App Store,
Enterprise App Management Console, App Orchestration Environment
ShareInsights
Persistent’s Data Stack 3.0 Solution
Public Data
Sources
Cloud Data
Sources
API Handlers
SoR’s
ERP, PLM,
SCM……
Standardized
API Layer
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Speed of Delivery is crucial
Establish a six-week rhythm. Deliver complete
products (not pilots) incrementally and iteratively.
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Drinking our own cool aid !! Our journey
● Our Company has nearly 8000 Employees
● The team is globally distributed – across time-zones and
geographies.
● Most employees are tech-savvy, demanding programmers who
have an opinion on everything.
● We are a developer shop. Most employees are working on
projects for customers.
● The existing intranet was ageing. We decided to design it
mobile-first, and also make it easy to find insightful
information from the loads of data we had within our systems.
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The Setup
Think Vision:
Build to a
Roadmap
Build
Incrementally
& Iteratively
Build a Digital
Team
Focus on User
Experience
Involve All
Stakeholders
Leverage
Disruptive
Technology
● We set ourselves a 6-week
agile rhythm for all the
projects.
● We setup a three level teams:
– Infrastructure team
– Middleware team
– End user team
● Release cycles were staggered
by two weeks.
● Released multiple apps that
can be used by end-users in
every 6-week cycle.
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Components of our Platform
Desktop App
Shareinsights Dashboards
Managed Mobile Apps
Widgets
App Life Cycle Management – Enterprise App Store,
Directory
Search
Shareinsights BigData
Infrastructure
Enterprise Data Sources
External
and Public
Data
Sources
Billing
(MBS)
Invoice
(IMS)
Leaves
(LAMS)
HRMS
Travel
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Demo …
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Cloud computing
is already mainstream!
● Driven by economics ...
… about 30% reduction in costs!
– Cost of infrastructure
– Cost of management of infrastructure
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Mobility will be all pervasive
● Mobility is not just small screen.
There is more.
– Anytime, Anywhere access
– Built for Presence and Location,
– Task specific apps
● Mobile Devices  tablets and smart phones
 smart devices  smart sensors
● Build for mobility.
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Sensors  Connectivity  People  Processes
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Availability and
ability to analyze
large volumes of data
has created new datacentric businesses.
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Big Buzz around Big Data
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Enterprise Value is Shifting to Data
Data
Apps
ERP
Database
Operating
Systems
Mainframe
1975
1985
1995
2008
2015
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We live in a world of platforms and
apps
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More than 75 Billion Apps Downloaded on
the Apple AppStore.
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Open APIs has
made the App
EcoSystem
possible.
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We are moving to a world of disposable
apps in the enterprise!
● DIY apps
● Rapid development
cycles
● Task-centric apps
● Common API-based
platform
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User Experience is most important
Mobile Devices
Touch
Gestures
Voice
Wearable Devices
Sensor Networks
Augmented Reality
Large Touch
Monitors
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Rethinking the user
and their need
to be social
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The cost of software
development is
significantly lower in
the new cloud based
software stack
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½ the time; ½ the team  ¼ the cost!
Traditional
Ways
Team
Size
On the
Cloud
Time
Period
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Questions?
Anand Deshpande
[email protected]
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A famous aphorism of David
Wheeler goes: "All problems in computer
science can be solved by another level of
indirection";[1] this is often deliberately misquoted with "abstraction layer" substituted
for "level of indirection". Kevlin
Henney's corollary to this is, "...except for
the problem of too many layers of
indirection."
“Don't mistake activity with achievement.”
― John Wooden
"All computers wait at the same speed."
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The fundamental theorem of software engineering (FTSE) is a term originated by Andrew Koenig to describe a remark by Butler Lampson[1] attributed to the late
"We can solve any problem by introducing an extra level of indirection."
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system when only part of the system is
improved. It is often used in parallel
computing to predict the theoretical
maximumspeedup using multiple
processors. The law is named
after computer architect Gene Amdahl, and
was presented at theAFIPS Spring Joint
Computer Conference in 1967.
The speedup of a program using multiple
processors in parallel computing is limited
by the time needed for the sequential
fraction of the program. For example, if a
program needs 20 hours using a single
processor core, and a particular portion of
the program which takes one hour to
execute cannot be parallelized, while the
remaining 19 hours (95%) of execution
time can be parallelized, then regardless of
how many processors are devoted to a
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1) The speed at which a computer operates,
either theoretically (for example, using a
formula for calculating Mtops - millions of
theoretical instructions per second) or by
counting operations or instructions performed
(for example, ( MIPS ) - millions of instructions
per second) during a benchmark test. The
benchmark test usually involves some
combination of work that attempts to imitate
the kinds of work the computer does during
actual use. Sometimes performance is
expressed for each of several different
benchmarks.
2) The total effectiveness of a computer
system, including throughput ,
individual response time , and availability.
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