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CLOUD STRATEGY AND IMPLEMENTATION
Denis CurranHead of Strategy & InnovationNational Austral ia Bank
AGENDA
NAB’s Strategic ContextNAB’s Cloud DriversThe Path We’ve TravelledCloud StrategyStrategy Implementation
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NAB’S STRATEGIC CONTEXT
And how we’re driving our Technology agenda
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WHAT IS A BANK?
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COMPETITIVE FACTORS DRIVING CHANGE
Legacy systems
Ageing, intertwined systems
High cost to adapt
Manual workarounds
Unattractive to workforce
Cost & risk
Simplify E2E processes
Reduce rework
High/continuous availability
Resilience
Innovation cycle
Consumerisation driving user experience
Rapid rise (and fall) of ICT enabled services
Competitive threats from new industry models
ICT industry development
Rapidly falling costs of new technologies
Leverage massive data
Mature service providers
Cloud
Enable customers and employees
Total Environment Transformation
Help, guidance and advice
Collaborative
Mobile, real-time, 24x7
Secure
Self-service
Omni-channel
Relationship
Service/product innovation
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EXAMPLE – CUSTOMER CHANNEL PREFERENCE
Oct 08 Oct 09 Oct 10 Oct 11 Oct 120%
10%
20%
30%
40%
50%
60%
70%% of total transactions by channel
Branch OTC Linear (Branch OTC) Internet Banking Transactions Mobile Internet Banking Transactions ATM
Trend line
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EXAMPLE – CUSTOMER CHANNEL USAGE
Oct-08
Dec-08
Feb-09
Apr-09
Jun-09
Aug-09
Oct-09
Dec-09
Feb-10
Apr-10
Jun-10
Aug-10
Oct-10
Dec-10
Feb-11
Apr-11
Jun-11
Aug-11
Oct-11
Dec-11
Feb-12
Apr-12
Jun-12
Aug-12
Oct-12
Dec-12
Feb-13
Apr-13
Jun-13
Aug-13
Oct-13
k
2000k
4000k
6000k
8000k
10000k
12000k
14000k
16000k
18000k
20000kDesktop vs. Mobile Logins
Internet Banking Logins Mobile Internet Banking Logins 7
OUR GOAL IS TO ENABLE A DIGITAL BUSINESS
Smart, secure products/services
E2E process, real-time, highly resilient
Supply chain integration
Insights on complete, accurate, timely data
Culture - innovation, agility, sustainability
Enable a digital business
Measu
res
Enable customers and employees
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Creating sustainable enterprise outcomesthat help our colleagues win in their markets
Opening up new possibilitiesfor our customers and colleagues
Delivering excellentservices that our colleagues value
Standing behind what we do,and taking accountability for our actions
OUR TECHNOLOGY ORGANISATION’S PURPOSE
Technologyenabling NAB to win
Ideas with impact
High performing and customer focused
people
Smart, integrated, reliable service delivery
Technology’s strategic intent We need to excel at
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TECHNOLOGY’S THOUGHT LEADERSHIP THEMES
Mobility ↔ Omni-channel
Consumer paymentsSocial &
knowledge economy
Security & trust CloudBig data10
NAB’S CLOUD DRIVERS
And why ODCA has been critical
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NAB’S TECHNOLOGY DRIVERS FOR CLOUD LEADERSHIP
Business attractiveness
Security and trust
Technical and operational capability
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NAB’S OBJECTIVES FOR CLOUD
Competitiveglobal market
Cost effective
Choice
Innovation
Risk
Faster, lower cost
Known capability
Agility & innovation
Demand driven
Consistent user requirements promote efficient markets
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WHY NAB PARTICIPATES IN ODCA
Real world industry experience
Build capability
Engagement of our people
Credibility
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THE PATH WE’VE TRAVELLED
Could it have been different?
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Industry context
Nascent
EVOLUTION
Technology Business users
Acquireunderstanding ODCA
Opportunistic buyers
Emerging Controlexpansion Internal cloud
Viral growth
MaturingStrategy
External cloudDiscipline
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CLOUD STRATEGY
Formation and foundations
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STRATEGY FORMATION
Objectives:• Articulate NAB’s approach to Cloud adoption• Inform (and educate) stakeholders on the evolving Cloud-scape
Components:• Regulatory Context• Technology Operating Model• Risk Appetite Statement• (Cloud) Sourcing Principles• Cloud Adoption Framework• Governance Arrangements• Practices and Tools
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TARGET STATE
19Based on ODCA materials
Target State
10% 90%
HYBRID
FEDERATED Foundation servicesRisk Appetite; Readiness Assessment; Architecture & Design; Implementation & Transition; Security; Service Management
REGULATORY & LEGAL CONTEXT
Banking regulation• Applies to “Material” activities for any Outsourcing• Assumes there is a loss of control and therefore risks increase• Requires:
• Policy setting and Board expectations• Diligent selection approach• Formal contract with defined clauses• Regulator access• Consultation or notification• Monitoring and audit requirements
• Other impacting regulations
Privacy Act• Disclosure of personally identifiable information• Mitigation• Emerging mandatory disclosure of breaches
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TECHNOLOGY OPERATING MODEL
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LeadershipCapabilities
Engagement, Strategy,Architecture, Innovation
Service Planning, Optimisation & Governance
Service & Relationship Management
External Managed Services
Internal Managed Services
Security Services
Business C
hange
Bus
ines
s Res
ilien
ce
Standardised Infrastructure
Commercial Platforms Bespoke Systems
Multi-Supplier Integration
RISK APPETITE STATEMENTRegulatory requirementBoard endorsedEstablishes the level of risk the organisation is prepared to take to achieve benefits
Set for outsourcing, of which Cloud is one element
Cloud Risk Appetite considerations:• Recognises (external) Cloud is an emerging capability• Sets risk acceptance and control requirements
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SOURCING PRINCIPLES Consistent with Outsourcing principles plus: Cloud decisions – good governance using ODCA to drive
efficient, consistent, risk balanced benefits based decisions
Cloud service providers – approved suppliers complying with minimum requirements
Ownership and accountability – Technology Service Owner + Relationship Manager if multiple services delivered
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STRATEGY IMPLEMENTATION
Approaches, practices, and tools
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CLOUD ADOPTION FRAMEWORK
Low Medium High
Information ClassificationRegulatory/Materiality
Compliance
Low
Medium
High
BCP RatingService Criticality
Informs level of risk assessment, controls and governance
Platinum
Gold
Silver
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GOVERNANCE – PLAN
Outsourcing regulation
Supplier Council
Risk Appetite Statement
Outsourcing strategy
Board
TechnicalArchitecture Forum
StrategicArchitecture Forum
Cloud strategy
Proponents
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GOVERNANCE – RUN
Operations
Relationship
Executive• Strategy• Relationship• Opportunity• Escalation
• Performance overview• Risks• Relationship• Innovation• Contract• Escalation
• Performance detail• Issues• Priorities• Improvement• Administration
Supplier Council
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ADAPTING PRACTICES TO EXPLOIT CLOUD
Service Planning and Management
Software Development Lifecycle
Infrastructure Management
Security and Trust
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TOOLS
♭♩♪♫
ΔΦ
Segregation of duties
Orchestration
Data residency
Monitoring
Source code management
VPN
API
ScalingResilience
Verification
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SUMMARY/CALL TO ACTIONCustomer, employee, legacy and industry drivers creating conditions to pursue Cloud services
Engaging with industry, via ODCA, is compellingCloud strategy is a necessary precursor to systemic adoption
The strategy is multi-faceted, requiring organisational change, and investment in tools and practices to be sustainable
ODCA Usage Models provide insight and materials we are leveraging in strategy and implementation
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© 2013 Open Data Center Alliance, Inc. ALL RIGHTS RESERVED.