Trying to understand the intersection between Business & Technology

[email protected]

Chief Technology Officer

Trying to Understand Trying to Understand

the Intersection between Business & Technology the Intersection between Business & Technology

Chief Technology Officer

Capgemini France

Big changes are happening at

the intersection between Business & Technology

1st History

of Enterprise IT2nd History

of Enterprise ITConsumerization of IT

Macro Conditions

New Business models

| Architecture WeekTrying to Understand the Intersection between Business & technology

2© 2011 Capgemini. All rights reserved.

‘‘The future is here.

It's just not widely distributed yet ’’

William GIBSON

Cloud Computing

1st History: Initial Construction of IS

Applications automate tasksProductivity Transactions

The tasks we know [as must be done]Project by project

Hundreds of applications in silos

IT is rare, expensiveand complex

The IT org is the owner

Highly technical CultureFortress of specialists

Business peopledo not understand technologies



Cost centerMore & more expensive

Cost savings within IT

Contract based relationship

Black BoxCascading

Long CyclesOrder takers

Build to last

Decision based onCost of Build

Unique size

Struggling to deliver business & technology alignment

Decide on a Business Strategy

Alignment implies a waterfall process��



Build your technology on that foundation

TOO

SLOW�� Shadow IT

Business demand for IT is changing

Business peopleunderstand technology

Technology Driven



Time To Value

Technology Driven Business Differentiation& Transformation

An Inspiring Case

Support 2020 Program�� Increase the revenues coming from differentiatingServices to Airlines

Leveraging Airbus assets

| Architecture Week

6

Leveraging Airbus assets

Engineering knowledgeFleet-wide perspectiveInformation captured onboard the aircraftCapability to set industry standards to facilitatecloser integration between Airlines, manufacturers & maintainers

Trying to Understand the Intersection between Business & technology

© 2011 Capgemini. All rights reserved.



A shift in mindset

Stop thinking:

We build a collection of applicationsthat support our business

Application Silos



Start thinking:

We build our business usingtechnology platforms

Tools & Services allowing

fast & continuous

delivery of user features

Time To Value

A Copernican shift

User

Experience

Social

Computing

Big

Data

Engaging customers

Any Time Any Where Any Device

The

Conversation

Big Data

delivers

5 ENABLING TECHNOLOGIES

| Architecture Week

9

Computing

Business

Process

Mesh

Cloud

Computing

Data

Total

Services

Conversation

Economy

delivers

Big Value

Everything is

elastic

Creating Value

Time To Value


© 2011 Capgemini. All rights reserved.

Think differently about projects

Automate the tasks we know [as must be done]

Technology Driven Business Differentiation& Transformation

Increase Business performance in complex working situations

Usages are well known New Usages

| Architecture Week


Short Cycles& iterations

New engagement models

Usages are well known New Usages

One can completely specifythe system before building it

Long Cycles

Fixed price engagements

30% of the specificationsare unknown the 1st day of the project

Agile project driven by bunisess value analysis


Agile Development Process

Deliver & test earlyto build the right software

CollaborationThe “agile” approach consists in

implementing functions by “business”

priority, with “continuous” flexibility

and acceptance of business change

Business

IT

| Architecture Week


to build the right software


Business Value Driven Process

High Priority

Items with a highpriority are detailed

New items are integratedwith their priority level

Backlog sprintDuring each iteration, the top priorityitems get implemented

| Architecture Week


Low Priority

Items with a lowpriority are describedin a simple way

Product BacklogRequirements expressed from the user perspective

with their priority level

Items in the backlog can bereprioritized at any time

Items can be removedfrom the backlog at any time


TRADITIONAL PROJECTS ARE LIKE A CANNON BALL

Assumptions :

� The customers know what they want

� The developers know how to build it

� Nothing will change along the way

| Architecture Week

Source: Henrik Kniberg


© 2011 Capgemini. All rights reserved. 13

AGILE IS LIKE A HOMING MISSILE

Assumptions:�The customers discover what they wants�The optimal architecture is emerging�Things change along the way

| Architecture Week

Source: Henrik Kniberg


© 2011 Capgemini. All rights reserved. 14

Business demand for IT is changing

Innovations

Consumerization of IT

Social Apps




Self serviceEmpowered

Extreme UsabilityNew usage models

Fast changing consumer technology landscape

In 1993, iPad 2 would have been among the

top 30 supercomputersin the world



in the world

Extreme Usability, Self-service & Freedom of Choice

App Store1-click browse / install / use

Bring Your Own

DEVICEAPPLICATION



Empowered Users

VisionWhat if Apple were to develop business applications?

Jobs' approach to the future of computing: Make everything simpler , more universally usable , and less constrained by the narrow orthodoxies of the tech industry.

| Architecture WeekSpeakers' Handbook, Arnaud Buisne, v1.2 - 26/08/2011


User Experience

Like something Apple could have built

Great user experience

• Users can accomplish Useful

| Architecture WeekEnterprise Applications in 2011


It is what businessusers demand.

It is what IT must deliver.

• Users can accomplish their goals.Useful

• Users can easily perform tasks.Usable

• Users enjoy their experience.Desirable


Consumer Technology is more and more influencing the

enterprise world with employees forcing an unprecedented

pace of change.

��

CIOs Surveyed on Tablet Usage



2011

2010

Morgan Stanley, “Tablet Demand and Disruption”, February 14, 2011

A Big Shift in mindset for Enterprise IT

Keep technology diversity in check to keep costs in control.



Harness the technology ideas and initiatives of your empowered employees.

New Capabilities on the Technology side

Cloud ComputingEverything



Cloud ComputingEverything is elastic

Chief Financial Officerslove Cloud Computing !



No investment before use.

Pay for what you need, when you need.

Instead of investing in rigidity, you buy flexibility.

Business Executiveslove



love

Cloud Computing !

Source: HfS Research and London Schoolof Economics, Oct 2010846 Entreprises

By 2015, 50 % or more of NEW enterprise IT spendwill be Cloud-based or Hybrid.

By 2015, 65 % or more of NEW enterprise IT workloads



By 2015, 65 % or more of NEW enterprise IT workloads will be Cloud-based or Hybrid.

By 2015, 25 % or more of TOTAL enterprise IT workloadswill be Cloud-based or Hybrid.

SaaS is driving adoption. PaaS enables custom & composite solutions.

Cloud Computing & Innovation

10-15 years ago,

experimenting was expensive

Culture of Preliminary AnalysisLimitation : Our capability to

elaborate ROI studiesAfraid of : Errors in ROI studies



Experimenting costs as much as (or sometimes less than)the analysis

More value for the time spentMore value for the euro spentLimitation : Our capability to manage

experimentationsAfraid of : Have lost an opportunity

to experiment

Culture of Observation allowing fast learning and adjustments

Cloud Sourcing – New IT Supply Chain

Business People are a new buying center for

Enterprise Technology��

Cloud Service Providers

Several Cloud Service providers will be used��



CloudEnterprise

Cloud Service Providers

Entry

Run

Exit

Total Cost

IT organizations must change

A Capacity oriented IT orgData Centers X 000 m.d. for projects

IT Standards

Process

Demand Management



IT Standards Demand ManagementBuild & Run

A Business Services oriented IT orgFocus will shift to Businessempowerment.Encourage Innovation or Expect to be bypassed !

Business Services & KPIsLess technology selection & more business support

Short Cycles – Dynamic service provider

Integrating, monitoring & supporting Internal & external servicesValue through governance, orchestration & innovation

IT role in business leverage of technology

IT provisioning of technology for

Business’s use of technology

IT provisioned

Business self-

provisionedBusiness

self-provisioned Business

self-provisioned



technology for business

provisioned

Business self-

provisionedBusiness

self-provisioned

Business self-

provisioned

Source:

Innovation will x3 from 5% to 15%

Vendor mngt will x2 from 10% to 20%

Enterprise Arch will x2 from 10% to 20%

Risk mngt will increase from 10% to 15%

A perfect stormat the intersection of

Business & Technology…but a positive one

2 years ago the goal of the CIO wasto cut costs and keep the lights on

Business empowermentDynamic Service Provider



Think differently

Business People understand the value of Technology

Use new technologies and new IT supply chain for competitive advantage

Co-invention / construction

CIO & IT org need to change

Business empowermentDynamic Service Provider

Encourage Innovation or Expect to be bypassed

Build a new governance orExpect to be a cost center

From steward to strategist or revolutionary

www.capgemini.com

The information contained in this presentation is p roprietary. ©2010 Capgemini. All rights reserved

Trying to understand the intersection between Business & Technology

Technology

business demand

business amp

cloud computing

henrik kniberg

architecture

rights reserved

technology

technology