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© Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. Incorporating Cloud Computing for enhanced communication Embracing a new style of IT Christian Verstraete Chief Technologist - Cloud

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Presentation given at OpexCon in Prague this October, titled Incorporating Cloud Computing for Enhanced Communication. In it I'm discussing how cloud computing and technology can help enterprises build operational excellence

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Page 1: Incorporating cloud computing for enhanced communication v2

© Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.

Incorporating Cloud Computing for enhanced communicationEmbracing a new style of IT

Christian Verstraete – Chief Technologist - Cloud

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© Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.2

Every Generation has a Defining Industry

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© Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.3

IT is the Defining Industry of Our Generation

The Internet2000sClient/Server1990sMainframe 1970-80sMobile, Social, Big Data & The Cloud

2010s

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© Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.4

Cloud Computing

Cloud computing is a model for enabling convenient, on-demand network access to a shared pool of configurable computing resources (e.g., networks, servers, storage, applications, and services) that can be rapidly provisioned and released with minimal management effort or provider interactions

Source: National Institute of Standards and Technologies

• Self-service

• Pay-per-use

• Rapid Elasticity

• Resource Pooling

• Broad Network Access

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© Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.5

Demands and pace of change are increasing

Organizations are part of a dynamic ecosystem

Partners Devices

Suppliers

Information sources

Communities

Regulators

Your organization

Customers

Citizens

• Everything and everyone’s connected

• Immediate gratification and instant results expected

• Anywhere, any time, any way

• Business and IT one and the same

• Continuous opportunity and competition

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© Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.6

Three possible starting points

Reduce Cost

• Private Cloud = Efficiency

• Managed & Public Cloud =OpEX

Business Improvement

• Process Digitization

• Collaboration

• Standardization

Innovation

• New Product/ServicesCombinations

• New Go-To Market strategies

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© Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.7

Technology is transforming the way enterprises and governments work

A New Style of IT is evolving

Converged cloud

Big Data

Security

MAIMobile Apps Integration

Systems of record(Legacy applications)

Systems of engagement(Social and mobile)

Balancingopportunity and risk

• Visible to and governed by CIO

• Consumes majority of IT budget

• Modernization and cloud migration dominated

• Driven by business objectives

• Easily acquired

• Scale and security are key challenges

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© Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.8

…To bridge the current with the future enterprise architecture

You need an NSIT Roadmap

Business

Application

Information Infrastructure Technology

Cloud Mobility

Big Data

Social Media

Security

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© Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.

Improved Supply Chain Visibility

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© Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.10

Planning your Supply Chain

• Orders• Forecasts• Channel

Inventory• Marketing

Campaign• Competitive

Moves

• SC Inventory• Capacity• Finished

Product Inv.• WIP

• Goods in Transport

Marketing Forecast

Adjustment

Baseline Forecasting

Demand Review Meeting

Operations Planning

Pre S&OP Meeting

S&OP Meeting

Sales Forecast Adjustment

Performance Management

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© Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.11

Sharing Information, gaining visibility

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© Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.12

End-to-end Collaboration

S&OP Analytic

sEnd-to-end Supply Chain Visibility and Performance Management

Procurement Analytics

RFID Track and Trace (Food and Item level)

Logistics Visibility

Warranty Business Performance Management

Manufacturing Traceability

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© Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.13

Create and Exploit Visibility

Redesign to Optimize

– Typification of Ecosystem Behavior– Root Cause Analysis

Analyze Trends

Gain Visibility

– Service Level Agreements– Needed Buffer Stocks– Key Performance Indicator Reporting

– Inventory Levels– Available Capacity– Alerts

– Demand/Supply Evolution– Alert History– Quality Indicators

– Advanced Shipment Notification– Forecasts– Actual Consumption

– Scenario Planning– Simulation

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© Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.

Understand the voice of your customer

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© Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.15

Past - voice of the customer

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© Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.16

Present - voice of the customer

!

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© Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.17 Copyright © 2013 HP Autonomy. All rights reserved. Other trademarks are registered trademarks and the properties of their respective owners.

Human Information

90%Information that is created by people and understood by people

Social Media Video Audio

Images Document Email

Text Search engine Transactionaldata

IT/OT Mobile

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© Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.18

Real-time customer insight across all channels

PROMOTE connects touch points across websites, contact centers, stores, mobile and social media to automate action, drive revenue and reduce cost

EmailMobileSocial mediaWebsitesPrintCall center

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© Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.19

Analytics Use cases

Connectivity to touch points across websites, contact centers, and the social web drive broad user applications

Collect

Explore

Brandreputation

mgmt.

Cross channel optimization

Next-gen speech

analytics

Voice of the

customer

Social media

monitoring

Customer interaction

survey

First contact

resolution

Customer experience analytics

Operational efficiency

News Email Blog VoiceWeb Video AppsReview Survey

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© Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.

Implement Technology

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© Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.21

…To bridge the current with the future enterprise architecture

You need an NSIT Roadmap

Business

Application

Information

Infrastructure Technology

Cloud Mobility

Big Data

Social Media

Security

Organization & Governance

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© Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.22

Cloud is a Journey

Standardize and consolidate

Virtualize and automate

Self-service infrastructure

Self-service applications with full lifecycle management

Become a service broker in a hybrid environment

Configure & manage systems

Optimize hardware and manage workloads

Provision infrastructure in minutes with templates and portals

Automate business and IT practices to SLAs

Integrate service providers into a customized, unified environment

Integration, management & security

Infrastructure focused Services focused

Key topics to review:

• What are the business needs

• What are the implications of my technology choices

• What applications do I run where

• Do I expose my data

• How are services delivered

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© Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.23

Dimensions of Service DeliveryIT Service Description for external use, integrated within the Service Catalog and containing value proposition, differentiated service levels, price/costing options as well as “value-add” services. The IT Service Specification provides detailed service (de)composition, architecture, service delivery and service delivery management for internal use.

IT Service

TechnicalInfrastructure & Architecture

Service Management Framework

Governance, Finance & Security

Culture & Staff Best PracticeProcesses

Service Portfolio Management

Integrated, modular, virtualized, service oriented architecture to support delivery of the shared service. Contains service delivery controllers for automation, self-service interfaces, workload & policy engines for maximum agility and dynamic alignment of demand and supply of resources. Supports also the Integrated Mgmt. Information

Integrated Shared Service Delivery Mgmt software toolset in support of the Best Practice Processes to manage all aspects of service planning, selling and delivery, including service usage intelligence. Includes ordering, operations, metering & usage, provisioning, help desk, reporting & dashboard, billing, inventory, service level and capacity mgmt.

The governance, decision making and operation model for aligning the business and IT with respect to the shared service.Includes managing escalations, demand, investment, portfolio, customer relationship and business modeling, as well as defining policies and standards for the shared service.

Provides the organizational and people framework for delivering the service.Includes role definition organizational design, FTE model, staff selection and training to plan, sell and deliver the service effectively to the service level. Also includes management of change and setup of a (consolidated) competency center.

ITIL compliant processes standardized and optimized to deliver the service in its all aspects from planning, selling and delivery

Defines, implementsand manages the services that are provided. Decides whether those are delivered from within the organization or sourced from external providers. In the latter case, negotiation, integration and supplier management. Responsible for the lifecycle of the services provided.

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© Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.24

Organizational Maturity ModelCloud Roadmap Framework

Level Technical Infrastructure & Architecture

Service Management Framework

Governance, Finance & Security

Culture & Staff Best Practices Processes

Service Portfolio Management

5. Cloud Service Provider

Cloud servicesoptimized infrastructure

Continuous value management organization

Value-based pricign Business/commerce centric

Value Chain optimized processes

Commercial service portfolio management

4. Differentiatedservice sourcing

Automated infrastructure pooling

Value-chain based service management

Variable IT costing Optimized policy management

Customer-centric behavior

Service strategy processes

Service brokering

3. Service enabled Shared & virtualized infrastructure

Integrated information & service management

Service-driven policyprinciples

Service focused Process optimization Service portfolio with Operational-Level Agreements and specifications

2. Optimized Consolidated negotiated functionality

Enterprise IT informationmanagement

Negotiated budget/resource management

Expert teams Planning processes SLA based technology services

1. Standardized Enterprise infrastructure architecture

Management control by function/element

Joint, agreed, budget-driven hierarchicalmanagement

Departmental silos & competency “heroes”

Operational processes Defined technology services

1. Where do you want to be? Identify desired target state based on cloud strategy

2. Determine current capabilities across the domains based on the gaps

3. Create a roadmap of projects to achieve the desired state

4. Develop a roadmap to close the gap to balance cloud capabilities across domains

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© Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.25

Understand where you are and where you want to be

Level Technical Infrastructure & Architecture

Service Management Framework

Governance, Finance & Security

Culture & Staff Best Practices Processes

Service Portfolio Management

5. Cloud Service Provider

Cloud servicesoptimized infrastructure

Continuous value management organization

Value-based pricign Business/commerce centric

Value Chain optimized processes

Commercial service portfolio management

4. Differentiatedservice sourcing

Automated infrastructure pooling

Value-chain based service management

Variable IT costing Optimized policy management

Customer-centric behavior

Service strategy processes

Service brokering

3. Service enabled Shared & virtualized infrastructure

Integrated information & service management

Service-driven policyprinciples

Service focused Process optimization Service portfolio with Operational-Level Agreements and specifications

2. Optimized Consolidated negotiated functionality

Enterprise IT informationmanagement

Negotiated budget/resource management

Expert teams Planning processes SLA based technology servic

1. Standardized Enterprise infrastructure architecture

Management control by function/element

Joint, agreed, budget-driven hierarchicalmanagement

Departmental silos & competency “heroes”

Operational processes Defined technology services

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© Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.26

Transform applications for the Cloud

Business alignment Technical alignment

Assess• Discover• Analyze• Decide

Transform• Keep• Change• Retire

Manage• Availability• Integrity• Continuity

Traditional IT• Minimal automation• Traditional methods

of service delivery: internal, outsourcing,hosting

Private/public cloud• Partial automation• New disparate

public & privatecloud services

Hybrid delivery• Fully automated self-

service delivery• Orchestrated, managed

& secured hybrid service delivery

• Brokered services based on business requirements

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© Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.

Conclusion

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© Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.28

A little story

And have following information at my fingertips• Latest order status

• Latest issues filed by customer and resolution status

• Info on customer birthday, key family events etc.

• What he/she thinks of our company and has been publishing about it on social media

• Key news affecting the company or its competitors/ customers/market

• Information on products or services he/she expressed interest in

• Etc.

What if I get to my customer…

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© Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.29

to implement the new business requirements to overlay & complement the existing ‘Systems of Record’ (SoRs) with ‘Systems of Engagement’ (SoEs)

There is a need for a ‘New Style of IT’ (NSIT)

The NSIT leads to significant business benefits

BMW supports model launch and develops sales prospects with a social media and cloud-based solutionBMW Latin America kicked off an marketing campaign through Facebook that supported the launch and collected audience data . The Cloud –based solution integrated Facebook with their Microsoft Dynamics CRM environment. They engaged 90,000 consumers, and converted 900 campaign participants into new sales prospects.

Axa’s SmartDriver app providing the driver with driving score aimed at promoting good behaviorsCar vehicle insurance specialist Axa is developing an application for smartphones which can analyze driver behaviors as it attempts to improve how insurance premiums are calculated.

Valentino develops its new Client’s SoE using the NSITTime to order from 5 days to 3 hrsCost of sale reduced by $1m/yrOrders error rate down to 5% from 30%

Shell Oil targets hybrid cloud as fix for energy-saving, agile ITShell Oil's data centers energy use had grow by 3.6 MW over a nine-month period. They also needed to be more agile in deploying IT services and planning for user demand. To reach those goals, they have built a cloud infrastructure using a virtual private cloud to launch

resources in a virtual network. They are now piloting Hadoop in this cloud for big data analytics.

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© Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.30

Think about your business, where can technology help?

Technology Innovation

Exploiting technologies to provide new capabilities

All

Product/Services Innovation

Combine the new technology, IT and business capabilities

for unique service and product offerings

Business Units

Business Innovation

New business models, processes and efficiencies

LOB Management

IT Innovation

Transform IT from a supporting cost centre to a

service provider to LOB

IT

Ecosystem Innovation

Combine own strengths with the ones of the partner

network to increase market responsiveness

Functions

Cloud, Mobile, Social and Big Data are new

technologies that enable innovation throughout the

enterprise and its ecosystem

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© Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.

Thank you

E-mail: [email protected]

Blog: www.hp.com/blog/cloud

Twitter: @christianve