Business Innovation in the Cloud…

Jim Stikeleather

2

A perfect storm is on the horizon…

Enterprise 2.0

Management 2.0

Capitalism 2.0

Economics 2.0

IT 2.0

New Game, New Playing Field, New Rules, New Players…

3

IT consumerization

Smart Everything

A new workforce An old workforce

The new normal

Pervasive simplification

Utility computing

Work mobility & the Hollywood model

Macro forces are driving change

Risk & security management

Regulations & cyber jurisprudence

Innovate to zero

3

4

Future IT services delivery … radical shifts in IT

Externalized service delivery

Requires Business Knowledge

Requires Technology Knowledge

Business Units / End Users

Skill

Business Unit Specific Scale Industry-wide

© 2010 The Corporate Executive Board Company

IT

ITO RIMO OaaS/IaaS ITaaS

Business Shared Services Group

External Providers

IT embedded in business services

Greater business partner responsibility

SaaS

BPaaS

PaaS SaaS BPaaS

ITO RIMO / OaaS IaaS PaaS / SaaS BPaaS (tools)

5

Innovation Defined

Innovation is the process that takes

new ideas and implements them in a way that creates

value in solving unmet needs.

Innovation is not invention.

• Invention is the process of taking capital and turning it into knowledge.

• Innovation is the process of taking knowledge and turning it back into capital.

6

Innovation Must Be Real New Ideas

Forward Thinking Feasible Viable

+ Valuable Not a Marketing Term Business Model

Products/Services

Process

7

Demystifying Innovation

Source: Gartner - Keeping the Innovation Dream Alive During the Economic Downturn 7 April 2009 | ID Number: G00167043

Emerging View

• Can happen across all functions

• Continuous improvement AND breakthroughs

• Organization-wide responsibility

• Ongoing governance process

• Product of a process

• Can be formalized in partner relationships to deliver value

• Requires little or no investment

• Benefits can be immediate

Services

Past View

• R&D and technology

• Breakthroughs

• Led by particular group

• Specialized teams and initiatives

• “Flash of genius”

• Benefits difficult to define and capture

• Significant investment

• Significant time to achieve benefits

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Degrees of Innovation

Transformative Innovation

Pragmatic Innovation

Business Model and Process

Tec

hn

olo

gy

(pro

du

cts

/ se

rvic

es)

New

Near To

Existing

New Near to Existing

What The Everyone

Wants is Game Changing

Innovation

Breakthrough Disruptive

Change

Incremental Sustaining

Breakthrough

9

Process Maps

IDEATION

INTERNAL RESOURCES

IDEATION

EXTERNAL RESOURCES

DRAFT NEW PRODUCT CONCEPTS

NARROW CONCEPTS UNDER

CONSIDERATION OUTLINE FEATURES/

BENEFITS

EXPOSE TO TARGET

CUSTOMERS (QUALITATIVE)

KILL

CONTINUE

REFINE

ESTABLISH SUCCESS CRITERIA

KILL

TEST MARKET (NEW PRODUCT

INCUBATOR)

EXECUTIVE MANAGEMEN

T REVIEW

(Investment Committee)

POST TEST MARKET EVALUATION

DESIGN, DEVELOP &

PILOT (Project

Launched)

FORM

TEAM

DEFINE THE PROBLEM/

OPPORTUNITY

EXPOSE TO TARGET CUSTOMERS FOR

VOLUME ASSESSMENT (QUANTITATIVE)

TEST MARKETING

PREPARATION

HIGH LEVEL REQUIRE-

MENTS

DEVELOP BUS CASE/OBTAIN APPROVAL TO

PROCEED (Mgt Review)

KILL

CONTINUE

REFINE

FINAL ROLLOUT

PLAN

FINAL TIMELINE

WAR GAMES

EXECUTIVE GROUP REVIEW

TRAINING

KILL

ROLL-OUT

EVALUATION AND

MEASUREMENT

PLAN DEVELOPMENT

AND INITIAL TIME LINE

(Proj Request/Sizing)

TURN OVER TO PRODUCT MANAGEMENT

How far back depends on feedback received

May require refinement of business case and financials

Some, or all of these stages may not apply to smaller efforts, or those with low execution risk/low capital investment For large projects, or those requiring post-pilot review and approval, these stages will apply

(e.g. Investment Committee level projects).

Project Release Management Flow Begins (see next page)

Project Lifecycle

Project Lifecycle

START

Start Project

End Project

This: (Convergent Thinking)

And / Or this: (Divergent Thinking)

• Analytic / Rational • Quantitative / Sequential

• Constraint-driven / Objective • Specific details

• Creative / Intuitive • Qualitative / Subjective • Possibilities / Holistic

• Conceptual abstractions

Do both in a systemic, repeatable, managed, measured and rewarded manner

10 Confidential Services

First a definition: What is Architecture?

• An architecture is the use of abstractions and models to simplify and communicate complex structures and processes to improve understanding and forecasting

• Architecture uses sets of abstractions and models of an environment, problem space or domain, either physical or logical, with a set of associated views into that domain to provide: – Simplification and management of complexity in all of its forms (structural,

procedural or informational), in particular the management, understanding and integration of the business and technical domains.

– Communication and common understanding of the problem space to multiple stakeholders from widely different environments by the use of multiple domain specific views of the architectural model.

– Completeness and relationship analysis of proposed solutions in the problem space or domain by examining the models and architectures from multiple differing viewpoints for incompleteness and gaps.

– Forecasting and predicting future architectures, strategies, structures, patterns, relationships and technologies in the business and technical space by extrapolation of present abstractions and models.

11 Confidential Services

An Architecture for Innovation

Foresight

3rd Product Lifecycle

Ambiguity Curves

Content Analysis

Thought Leaders

Info Immersion

Patterns / Emergence

Emerging Themes

Values

Common Wisdom

Expectations

Behavior Clusters

Environments

Conditions

Constructed Scenarios

Combined Themes

Stories

Implications

Markets

“Needs”

1+1 = 3,4,5,…

Analysts and Consultants

Linear Trends

Best Practice

Surveys

Industry

Market

Standards and Practice

De Jure

De Facto

Technology

Business

Law / Regulation

R&D

Basic

Applied

Technology

Market

PoC /Trials

Frameworks

Plans

Strategic Plans

Objectives

Reference Architectures

WOTS

Resources

Vision Purpose

Operational and Annual

Strategy

FORESIGHT INSIGHT FOCUS

Innovation for Market Challenges

Incubator & Innovation Portfolio

Capability Development

Product Service Plans

Innovation for

Customer & Delivery

Challenges

Value Challenges

6 σ

Cross Application

Plan of Investigation

Plan of Intent

Plan of Record

Relative Innovation

Continual Improvement

Problem Solving

White Papers

References

Innovation in the Large

Innovation in the Small

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“I can’t support all of our business demands with such high maintenance costs”

IT Innovation Malaise – Diagnosis / Prescription?

“I need to make my costs more flexible, able to go up & down in sync with the business”

“No matter how fast we develop new capability, my business needs us to move faster”

“I’m afraid of my business leaders doing their own IT via cloud providers”

• Virtualize your current environment

• Rationalize your diverse application portfolio

• Leverage SaaS services to help you lower your costs today

• Change from a capital based IT program to one that is operating based

• Look at cloud based options, private, pubic and hybrid

• Implement Dell’s VIS platform for rapid infrastructure resource provisioning

• Augment your internal teams

• Upgrade / renovate / reengineer / replace your applications

• Look at what services can be delivered by others, versus what you need to deliver internally

• Develop a cloud based strategy and then partner with your business leaders on how to leverage the cloud

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The Future Automate Standardize Simplify

The unneeded

Mgmt. &

tools Centralize

Virtualize Compute, storage, network

Tasks &

steps Processes

Self-service Introduce

Federation Refresh &

upgrade Modernize

Intelligent Capacity

Data Center Automation

Server Consolidation

Test and Development

Computing Clouds

Policy-Based Workloads

On-Demand Scalability

Self-Service

Self-Service

Abstraction Abstraction Abstraction Abstraction Abstraction

Virtual Infrastructure

Virtual Infrastructure

Virtual Infrastructure

Virtual Infrastructure

Management Monitoring Compliance

Management Monitoring Compliance

Management Monitoring Compliance

Orchestration (internal)

Orchestration (internal)

Choreography (external)

Eliminate

Getting started

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What’s stopping you? Five things to do now

Foundational work to

prepare for the cloud

• Accelerate use of virtualization in production environments

• Rationalize your application portfolio

• Inventory “*aaS” you may or may not know about

Prioritize workloads/ & processes

• Determine which workloads and processes are best performed in-house versus via the cloud

Pick something to move to the

cloud TODAY

• Email

• Storage

• Web based applications

• Something in the backlog

Establish a cloud strategy

for your company

• Understand what work should be done where:

Legacy

Private cloud

Public cloud

Hybrid cloud

Where can you leverage

others?

• Virtualizing your environments

• Cloud strategy

• Application migration and renovation

• Iaas

• SaaS

Thank you!

Available March 2012 http://www.mkpress.com/BIC/