Vision | Traction | Results

Implats’ Journey to the CloudDiscussion Session Case Study

CIO Mining Africa Summit

May 2016

Vision | Traction | Results

Overview• Introduction

• How the Cloud Journey Started

• Building the Strategy

• Our Process and Timeline

• Outcomes

• Why it Succeeded

• Learnings / Guidance

About ImplatsAdapting to Market Dynamics

Implats at a Glance

• Business is mining, refining and marketing of platinum group metals (PGMs), as well as nickel, copper and cobalt.

• Mining, concentrating and smelting operations at Rustenburg.

• Base metal and precious metal refining operations at Springs.

• Mining and concentrating operations at Marula.

• Mining and concentrating operations at Selous, Zimbabwe.

• Group produced 1.27Moz of platinum (approximately 75% of global primary platinum supply).

• Employs approximately 57,000 people (including contractors) across its operations.

• A very successful and well run company.

• History of successful IT projects, good governance, conservative approach, low cost operation.

The Changing Market

• Overall demand for PGMs is still strong in an uncertain global market.

• Vehicle and emissions. Probable absolute growth in vehicle sales. Tepid growth in developed countries.

• Focussed effort in China and India for jewellery.

• Industrial growth 3 to 4%.

• Labour challenges and safety issues affecting production.

• Changing political dynamics (Zimbabwe).

• Continued supply challenges in South Africa.

• Reduced capital investment (preservation) amidst commodities turmoil.

• “Overly bearish” sentiment generally.

• Prices to remain low until fundamentals improve.

About estrat

We're a leading IT consulting practice providing strategic advisory and expert services relating to IT applications, infrastructure, and cloud.

We provide "change" and "transformation“ services as we help our clients tackle their big decisions, standing with them each step of the way to achieve their end goals.

We manage our clients’ risk, help them to wisely invest their money, ensuring that their projects are implemented properly first time and deliver sustainable business value.

Headquartered in Perth, Western Australia we also have staff in South Africa and the United Kingdom.

We have a LOT of experience in Africa.

What We Have DoneOver the past 16 years estrat has:

• Written more than 30 IT strategies

• Managed over 50 programmes

• Overseen $500M worth of projects for our customers

• Worked in more than 18 countries

• Created strategies and designs recognised by companies as diverse as Gartner, VMware and Amazon Web Services (AWS).

Our clients include; AngloGold Ashanti, Barrick Gold, Horizon Power, Impala Platinum, Leighton, Ok Tedi Mining, News Limited, RCR Tomlinson, Rio Tinto and the West Australian Government.

We deliver complete transformation programs, technical upgrades, platform implementations, organisational redesigns, outsourcing contracts, hosting and cloud architectures, and end to end IT strategies.

Our Projects

Some HistoryImplats as the Model Low Cost IT Operation

IT Timeline

2002 2004 2006 2008 2010 2012 2014 2016

“Rebangwe” Infrastructure Refresh

and SAP Implementation

Outsource Change

2018

Virtualisation

SAP Evolution

Asset Sweating

WAN Upgrade

“Cloud Hosting”, O365 and Managed

Services Transformation

Cyclical Infrastructure (CAPEX) Refreshes Hardware /

Software

Disaster Recovery 1.0

IT LandscapeDescription

Legacy Infrastructure Environment

SOE BuildingBlocks

Microsoft, VMware, Cisco, Dell, EMC, NetBackup, Telkom, IS, Zscaler

Data Centres 8 (all on-premise)

Servers +- 250

Storage +- 200Tb (excl. DR)

Mailboxes +- 4,500

SAP Users +- 2,300

WAN Telkom / Internet Solutions

Internet Internet Solutions

How Did the New Journey Start?

In 2013…

Cloud market maturity

“Jurassic to Joystick” mantra

Shadow IT emerging

Escalating organisational challenges

Strategy and adoption framework

Feasibility Study

• Integrity of the structures was eroding through age and at limit despite virtualisation.

• Significant portions of the server / storage / data protection environments were coming out of warranty.

• Higher level IT skills scarcity (backup/server/SAN etc).

• Data storage demands were growing exponentially, and data protection was overly complex.

• Applications / systems not then administered by BIIS were be brought into scope.

• Disaster recovery required refresh and expansion.

• Labour unrest resulted in lock-out with high likelihood of further escalation.

Tactical Issues

• Overriding desire to build an IT strategy to:

• Match the next phase of business growth / change.

• Exploit advantages of new technology and ‘consumption’ offerings.

• Maintain Implats’ ‘low cost’ operating model.

• Requirement to align with new CAPEX preservation strategy.

• Need to find alternative to imminent unpalatable CAPEX refresh.

• Simplification of IT support desired.

• Scalable platform needed for forecast digital evolution (OT, IOT)

Strategic Drivers

Building the Strategy

Strategy Roadmap• Firstly, realising a strategy was necessary.

• Market assessment.• Paper research.• Industry / peer practice and trends.• IS trends generally.

• Recent projects.

• Re-look at Implats environment for:• Candidate use-cases.• High level work-load characteristics (performance, availability, business criticality, interfaces).

• Readiness Assessment.

• Establishing bone-fide drivers.

• Preliminary “End-State” posture and Business Case

Iterative Strategy Framework

Business Alignment

People & Organisation

Operations &

Processes

Architecture & Platform

Security

Contract & Vendor

Management

C. How We Get There

D. What We Need To Do To Make It

Happen

A. Where We Are Now

B. Where We Want To Be

Guiding Principles

Simple Rules that Kept Us Grounded

• Strategic alignment with business strategy.

• Continuing to keep it (real) simple / no bells and whistles.

• OPEX focus – capital avoidance.

• Strong industry support.

• Don’t lead the pack.

• Bringing people along for the journey.

• Being paranoid about the detail.

• Keeping users at the forefront of all our thinking.

Our Process and Timeline

Timeline

2013 2014 2015 2016

Preliminary Feasibility Study

O365 Pilot

RFI

StakeholderBuy In

RFP

Managed ServicesTransition

Site InfrastructureUpgrades

Cloud HostingImplementation

O365 Migration

SAP Testing

SAP Go-Live

Business Case

Governance

• Formal Steercom.

• “Stage Gate” process.

• Exec buy in and mandate.

• Stakeholder buy-in.

• Procurement involvement and rigour.

• Legal / contract engagement.

• Program and Risk Management.

Scope

• O365.

• Cloud hosting.

• Cloud security.

• Site infrastructure.

• Enterprise data protection and disaster recovery.

• Application migration including full SAP solution landscape.

• SAP (PROD) virtualisation.

• WAN / Internet.

• Yammer.

• Full infrastructure outsource contract.

• Organisational restructure.

What the Solution Looks Like

Springs

Pretoria

Illovo

Marula

Public Cloud

Private Cloud Rustenburg

MetroLAN

Remote Branch Office serversMine Specific Workloads

Remote Branch Office serversRefinery Specific Workloads

Remote Branch Office serversOffice Specific Workloads

Remote Branch Office serversMine Specific Workloads

Remote Branch Office serversOffice Specific Workloads

Dev, Test, QA, Prod SAP, Hospital system and other

workloads

Disaster recoveryEnterprise Backup

Technical Solution Elements

Element Solution

Cloud Hosting Dimension Data MCP (Private and Public) –vBlock, VMware, Microsoft

Site Converged Infrastructure Dell / EMC

Disaster Recovery / Replication DoubleTake

Application Migration DoubleTake

Enterprise Data Protection NetBackup

Email and Unified Communications

Microsoft Office 365

Network Telkom and IS

What We Looked For In Partners

• Capability (technical, commercial, operational).• Deep pockets, authentic cloud strategy, and financial stability.• Integration capability.• Security.• Agility.• Three happy customers.• Technology direction.• "Enterprise“ focus.• Affinity with Implats’ technology stack.• Contract sophistication.

Outcomes

What We Achieved

• Vastly superior agility.

• Demonstrably superior performance.

• Faultless SAP migration.

• Budget predictability.

• Greatly reduced Site footprint.

• Disaster Recovery step change.

• De-risking for unrest achieved.

• Platform for growth and flexibility.

• Great acceptance by users and applications teams.

And, Why it Succeeded…

• A great team, including partners.

• Exec buy in from all organisations.

• Sticking to our original principles.

• Transparent and robust communication.

• An integrated program across all areas of infrastructure, applications and organizational elements.

• Experience.

• Clever use of social tools.

• Accomplished project management.

Learnings

Looking Back…

• Understanding application characteristics is critical.

• A highly experienced technical and project management team is also vital.

• Visibility of WAN and key infrastructure elements needs to be in place up front.

• Desktop ‘hygiene’ is important for O365 as is appropriate internet capacity and availability.

Future

Opportunities Ahead for Implats

• Greater use of automation to drive efficiencies and lower support costs.

• Further reduction in site infrastructure footprint.

• Platform and processes in place to support IOT / OT / industrial internet applications.

• Unified Communications and Mobility are on the near horizon and will benefit from project experience.

Guidance

From “the Trenches”

• Take people on the journey with you (applications, exec etc) and expect resistance.

• Do the science but make a start.

• Understand the business case and be clear about the real drivers.

• Consider the holistic design.

• Consider issues of data sovereignty.

• Engage contract experts.

• Contemplate the strategic opportunities (OT, IOT, data analytics).

Thank You!