Business Value of Cloud Migration09.35 Wednesday 25 September 2013
Eur Ing John Shaw C.Eng FIEI PE BE MBA PMP
Autumn Summit 2013Croke Park Conference Centre
The CIO: Endangered Species or Innovative Leader
Kingspan is the world leader in
Sustainable Building Products
A Nexus of Disruptive IT Forces is changing
how we do business
Kingspan is ideally placed to benefit from this
change
Introduction
• Kingspan Context
• The Nexus of Disruptive Forces
• Business Value of Cloud Migration
• IT Strategy at Kingspan
• Sustainable Cloud
Enterprise Computing Strategy
• Kingspan Context
• The Nexus of Disruptive Forces
• Business Value of Cloud Migration
• IT Strategy at Kingspan
• Sustainable Cloud
Enterprise Computing Strategy
``
57 % of Revenue 26 % of Revenue
9 % of Revenue
Insulated Panels
Environmental
Insulation
Access Floors8 % of Revenue
• Kingspan is recognized as the global leader in • Sustainable Building Solutions ;
• Agile Management Model, with rapid decision-making• Entrepreneurial Culture, acting on opportunities as they arise• Partnership approach, delivering ‘ Think Global, Act Local’ • Product Leadership built via Innovation & partnership• Integrated Supply Chain maximises Operational performance
• Kingspan’s Business Model spans 4 Product Sets ;
Source: 2013 Interim results
Business Success
96% of Sales Revenue from outside Ireland
6
• Kingspan’s capabilities are demonstrated in key successes to date;• €1.6 Billion Revenue for 2012
• 82 Offices, 48 Factories, 5,800 employees across 6 continents
• Fund-raising consistently meets the targets set
• Kingspan brings value to the Sustainability Sector; Proven track record in delivering product solutions
Acknowledged thought leader on Sustainability
Leading the drive towards reducing energy bills
• Energy Efficiency is what we do at Kingspan;• Product Leadership to maintain market leadership position
• Customer Intimacy to ensure partners are aligned for success
• Operational Excellence to deliver quality products on schedule
Business Capabilities
Kingspan is growing across the globe
• Kingspan Context
• The Nexus of Disruptive Forces
• Business Value of Cloud Migration
• IT Strategy at Kingspan
• Sustainable Cloud
Enterprise Computing Strategy
Nexus of Forces
People want Ease of Personal Computing at Work
The independent evolution of 4 powerful forces has converged.
Leading to a seamless consumerisation with instant access to information via smart devices.
People now expect this in their workplace.
This creates a Nexus of Forcesthat drives business at an increasingly pace.
Disruptive Vendors driving this –Google, Apple, Amazon, Facebook
Although these 4 forces are disruptive on their own, together they are revolutionising business and society, disrupting old business models and creating new leaders.
Peter Sondergaard, SVP Gartner Research
Every Business needs a ‘ Nexus Forces ‘ Plan
Buyers have changedWhat once worked, will not work anymore
Corporate Executive Board 2012Connect & Sell 2012IBM Buyers Preference Study 2011
97%75% 57%
Of the time
cold calls
do not work
B2B purchaser
influenced
by social media
Buying decisions
are made before sales
rep involvement
Social Media is impacting Business Decision Makers
A Planned Social Selling Strategy
How
How do I get
a warm intro?
+230 MillionLinkedIn members
+2 Billionmember updates per week
Billionsconnections
WhatWhat to
talk about?
WhoWho are the
Right People?
Most of
Our customers
& prospects
Content Marketing
&
Thought Leadership
Implementation
of planned approach
A move away from Serendipity…. To Data Science
• Kingspan Context
• The Nexus of Disruptive Forces
• Business Value of Cloud Migration
• IT Strategy at Kingspan
• Sustainable Cloud
Enterprise Computing Strategy
Business Need
A company operating exclusively in the Sustainable Building Sector
A Product Manufacturing Company, 48 Factories in 4 continents
A company operating Globally, 6,000 colleagues in 80 countries
A company growing fast, € 1.6 Billion turnover in 2012
Secure, Accessible IT Services are key to the success of Kingspan
Kingspan is an ideal Candidate Organisation for Public Cloud
CategoryCapability
Building BlockDescription
Strategy &Planning
Alignment Definition and execution of Cloud strategy to influence and align to business objectives
Objectives Definition and agreement of Cloud objectives
Process Management
Operations
& Life CycleSourcing, operation and termination of Cloud Services
ICT-Enabled
Business Processes
Provision of Cloud Services that enable improved business outcomes across the extended
enterprise.
Performance &
Reporting
Reporting and demonstration of progress against Cloud specific and Cloud enabled
objectives, across the extended enterprise.
People &Culture
Language
Definition, communication and use of common sustainability language and vocabulary across
ICT and other business units including the extended enterprise, to leverage a common
understanding
Adoption Embedding of Cloud principles across ICT and the extended enterprise.
Evangelising of Cloud successes and contributing to industry best practice
Governance
External
Compliance
Enablement and demonstration of compliance with both ICT and Business legislation and
regulation . Clear accountability for roles and decision making across ICT and the enterprise
Corporate PoliciesEstablishment of common and consistent policies to support Cloud strategy to meet current
and future objectives, as part of periodic review.
Cloud Assessment: Building Blocks
IVI Cloud Assessment has Clear Building Blocks
Implementation Plan
Phase 1: June – December 2013• Baseline Assessment• Establish Cloud Governance & Program office • Build awareness of principles, policies and practices• Introduce objectives, metrics and Checklist
• Define Principles for Cloud Readiness• Pilot & Benchmark Public Cloud eMail Service• Formal certification to ISO27001• Define 3 Year TCO Roadmap for Hybrid Cloud Strategy
Phase 2: January 2014 – June 2014• Implement policies and metrics • Develop training & communication plans • Pilot & Benchmark Public Cloud Application Service • Define Cost-Benefit Model of Hybrid Cloud Strategy
Phase 3: July 2014 – December 2014• Formalise and enhance audits, benchmarks, metrics and scorecards• Formalise and enhance training & communications • Implement Hybrid Cloud Strategy : begin with email• Retake the test
Determine the cost-benefits of Hybrid Cloud Strategy
Enterprise Computing Principles
• Kingspan’s Enterprise Computing is designed and implemented in line with a set of 8 Design Principles chosen to deliver Business Value.
• 8 Design Principles ;
I. Build technology solutions to meet our business reality – agile, global, growth, 24 x 7, innovative
II. Build for Service & Security Excellence - ensure decisions made in the short-term are future-proof
III. Partner with Innovative Technology Companies - follow the Enterprise Architecture Roadmap to minimise the costs of technology integration, upgrading, training, issue resolution, change
IV. Standardised and Integrated Enterprise Computing Assets and Processes - Aggregate services to minimise cost, to protect investment, to leverage best practices, integrated business analysis
V. Configuration not Customisation – Follow Technology Roadmap, avoid bespoke code, avoid single points of failure to minimise waste, minimise risk
VI. Leading Edge not Bleeding Edge – implement new technology when it is proven elsewhere first, to minimise disruption.
VII. Automate & Outsource repetitive activities – manage via Master Service Agreements to control costs and to maximise service performance
VIII.Cloud First for all decisions on hosting
8 Design Principles are consistently followed to enable “ Cloud Readiness “
• Kingspan Context
• The Nexus of Disruptive Forces
• Business Value of Cloud Migration
• IT Strategy at Kingspan
• Sustainable Cloud
Enterprise Computing Strategy
Secure Private Cloud Approach
Step Objective Completion
Step 1 : Agree Strategy with Business Leaders June 2013
Step 2 : Select overall IT Management Framework June 2013
Step 3 : Conduct baseline measurement of IT Capabilities September 2013
Step 4 : Define Enterprise Architecture Roadmap September 2013
Step 5 : Identify Reference Architecture for Business Context September 2013
Step 6 : Map Business Process December 2013
Step 7 : Identify Enterprise Priorities December 2013
Step 8 : Define Enterprise Architecture Vision December 2013
Step 9 : Translate Enterprise Architecture to Applications Architecture March 2014
Step 10 : Map Business Applications Architecture March 2014
Step 11 : Build Core IT Infrastructure June 2014
Step 12 : Proactive Management of Enterprise Architecture June 2014
Step 13 : Align Resources June 2014
Step 14 : Control with Good Governance July 2014
Step 15 : External Benchmark July 2014
Step 16 : Capture Business Value July 2014
This Secure Private Cloud Approach delivered via a 16 Step Process
Secure Private Cloud: 16 Step Approach over 2 years
Secure Private Cloud Aim:• Build Sustainable, Secure, Scalable IT Services at Kingspan
• Deliver Services via Single User Signon for all users, all IT services
• Enable Smartphone delivery
DEFINE
MEASURE
ANALYSE
IMPROVE
CONTROL
Financial
Impact/value
Portfolio mgmt
Money/
value
Architecture
Eng/dev/delivery
Project management
IT
products
Security/compliance
Service/support/opsIT
services
Org / RolesPeople
Asset management
Capacity planningIT assets
Business alignment
Governance
Strategic planningIT
strategy
ProcurementSourcing
Limited representation Dominant characteristic
Source: Carnegie Mellon Software Engineering Institute; International O rganization for Standardization; BS15000 Associates Group; UK OGC; Microsoft; ASL Foundation; ISACA; BCG
Major IT functions
Kingspan selected IT-CMF because it “ticks all the boxes “ for the CIO
Step 2 : Select overall IT Management Framework
01 Sept 2013
Oct 2014
Kingspan Adoption of the IT-CMF:• Initial Assessment : identified weakness, opportunities across 4 Strategies
• Improvement plans : targeted across all 4 strategies
Source: Martin Curley, Intel / National University of Ireland
IT-CMF is an Integrated approach to drive IT Value
Maturity Level The 4 IT Improvement Strategies
vs StrategyManaging IT for
Business Value
Managing the
IT Budget
Managing the
IT Capability
Managing IT
like a Business
Level 5: OptimisingOptimising
Value
Sustainable
Economic Model
Core
Competence
Value
Centre
Level 4: Advanced Portfolio & Options
Management
Expanded
Funding Options
Business
Partner
Investment
Centre
Level 3: Intermediate Return On Investment
& Business Case
Improve
Productivity
Technology
Expert
Service
Centre
Level 2: Basic Total Cost
of Ownership
Predictable
Performance
Technology
Supplier
Cost
Centre
Level 1: Initial Beginning Beginning Beginning Beginning
Oct 2014
Target
• "IVI's vision is to consistently realise IT value from IT investment
• ... Through an industry validated ICT best practice Framework.
• The IT Capability Maturity Framework, IT-CMF”
Step 3 : Baseline measurement of IT Capabilities
Manufacturing
Order Fulfilment Logistics Customer Service Shared Services
(Sales) ( Delivey ) (Support) (Corporate)
Manufacturing asset
management
Order Management
Customer Lifecycle
Management
Supply Chain
Management
Enterprise Operation ManagementRevenue Cycle
Management*
IT portfolio and asset
management
ProcessesRaw Materials
ManagementLogistics Management Finance / Administration
Human Resources
Management
Legal / Regulatory affair
Management
Enterprise Risk
Management
Strategy Planning
Enterprise
System
Fuel Management
Optimisation Network Design Supply Chain
Asset Performance eCommerce Portal
Customer Relationship
Social Media
Step 6 : Enterprise Process
8 Enterprise Systems to meet Enterprise Process needs
Product Specification
Kingspan.com
Enterprise Resource
Planning
Business AnalyticsBusiness AnalyticsBusiness AnalyticsBusiness AnalyticsBusiness Analytics
Enterprise Resource
Planning
Enterprise Resource
Planning
Enterprise Resource
Planning
Enterprise Resource
Planning
8 Enterprise Systems to meet Enterprise Priorities
Step 7: Enterprise Priorities v Enterprise Systems
Kingspan Priorities
vs
Enterprise Systems
Social Media
Management
Kingspan
.com
Management
eCommerce
Portal
Management
Customer
Relationship
Management
Product
Specification
Management
Asset
Performance
Management
Enterprise
Resource
Management
1. Growth to € 3 Billion Revenue by 2016. X X X X
2. Acquisition of New Businesses. X X X
3. Innovation for better products. X X X
4. Reduce Business Risk. X X
5. Enhance Business Agility. X X X X X
6. Improve Operational Effectiveness. X X X X X X X
7. Integrate Supply Chain. X X X X X
8. Leverage Expertise & Experience. X X X X X X XUnderlying Standard IT technology;
Management Information always available.
Business Analytics System
Service Excellence. Standard Smartphone / Tablet / PC / Print / WiFi Access / Telephony / Video / Web Conf.
Social
Media
Kingspan.com
Business
Analytics
System
Step 8: Enterprise Architecture Vision
eCommerce
Portal
Customer Relationship
Management
System
Product
Specification System
Asset Performance
System
Enterprise Resource Planning
System
Deliver Business Value via Enterprise Systems Integrated on the Cloud
Product
Leadership
A Single
Version of the
Truth
ValueBusiness Need Enterprise Systems
Faster
Decision-
Making
Increased
Personal &
Team
Productivity
Customer
Intimacy
Efficient Work
Flow
Operational
Excellence
Better
Customer
Experience
Fast
Replication &
Collaboration
Enterprise
Resource
Planning
System
Asset
Management
System
Factory
SCADA
Systems
Product
Specification
System
Predictive
Performance
System
Customer
Relationship
System
Sales
Orders
Usage
Decision
Material
Receipts
Procedures
Business
Intelligence
System
Asset
Performance
Operational
Performance
Document
Management
System
Step 9 : Enterprise Systems Map
Maintenance
Decisions
Maintenance
ConditionsAsset
Specifications
Reports
Business
Forecast
Enterprise Systems on Cloud
Customer
Order
Reference
Documents
Billing
Business
Plan
Social Media
Management
Asset
Performance
Management
Kingspan.com
eCommerce
Portal
Management
Customer
Contact
Customer
Contact
Regulations
and
Standards
Customer
Need
Mfg
Assets
• Kingspan Context
• The Nexus of Disruptive Forces
• Business Value of Cloud Migration
• IT Strategy at Kingspan
• Sustainable Cloud
Enterprise Computing Strategy
Sustainable Cloud ?
Cloud Computing is the delivery of Computing as a service rather than a
product, whereby shared resources,
software, and information are provided
to computers and other devices as a
utility over the internet
Sustainability is the capacity to endure. For humans, sustainability is the long-term
maintenance of well being, which has
environmental, economic, and social
dimensions, and encompasses the concept
of stewardship, the responsible
management of resource use.
Source:
Wikipedia
2 Mega-Trends Collide
Features
1. Sustainable Cloud Service1. Availability
2. Security
3. Confidentiality
2. Sustainable Energy Supply1. Secure Grid connection
2. Fixed Price contract
3. Direct Energy Asset ownership
3. Sustainable Energy Distribution1. UPS is a storage medium
2. DC powered Servers
3. DC in, DC out
4. Sustainable Energy Use1. Energy Efficient Management
2. Virtualisation
3. Certified Devices
5. Sustainable Building1. Low carbon Design
2. Low carbon Materials
3. Certified
All Elements of Sustainable Cloud already exist....
Sustainable Cloud Computingis the
delivery of computing as a service
over the internet
in a manner which
utilises renewable energy sources,
energy efficient technology and low-
carbon footprint hosting facilities
to deliver
Highly Available, Secure and
Confidential Services.
Sustainable Cloud Framework
Kingspan is the world leader in
Sustainable Building Products
A Nexus of Disruptive IT Forces is changing
how we do business
Kingspan is ideally placed to benefit from this
change
Conclusion