Indranil Guha10th Sep 2012

IT TransformationChallenges & Choices …

22

Key Challenges FINANCIAL

• Reduced Funding (Budgets)• Balance Spending on “Run” vs “Change”• “Lights-ON”, Secure, Comply, Change• IT is perceived “Expensive” & “Slow”

TECHNOLOGY• Legacy Infrastructure & Application Systems• Availability, Reliability, Maintainability &

Performance• Silo Systems lacking integration• Poor Architecture• Lacks Agility – Says “No” & justifies vs. “Yes” can be

done

PROCESS• None or Sub-optimal Processes• Lacks Quality & Consistency• IT is losing the control and governance

PEOPLE• Technical Skills Brush-up• Belief in Process, Initiative Taking & need to Do

Things Differently

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New Paradigms Brings New Opportunities“IT Simplified” & “Blurring Lines”:

Business - IT JVs- Collaborative; Not Reactive CIO & CxO Roles – Enhanced Common Grounds Proliferation & Consumerization of IT – BYOD New Computing Models – Smarter Applications

Business (almost) Selects IT Solutions – Impacts Architectural Harmony; Security; Performance & Sustainability

Constant Race Against Time – Delays Imply Loss of Competitive Edge

Eroding Budgets; Pressure of Cost Effectiveness – Be Efficient & Be Agile !

44

Way Forward – Quick Wins

DISTRACTORS & INHIBITORS • Lights-ON issues?• Too many changes are being implemented?• Doubts on what is being implemented follows

an architectural blue-print?• Simple routine activities do not follow a well

defined process?• Is any sort of Enterprise Monitoring available?

QUICK WINs Probably Change Control is a bit slack; Tighten

it Implement a “good enough” release

management Come up with an Architectural Blue-Print Implement proper processes for key & routine

activities Ensure monitoring of key CIs & Systems –

Manual Check-List, if required

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Lights-ON Improved Scenario

Lesser Breakdowns Will Allow You Plan

Better

Don’t Hesita

te To Share The “THEN” &

“NOW” Scenarios with the CEO &

Executive Management

Summarize The Key Issue & The

Actions Taken

This will help in gettin

g sponsorship for your

forthcoming plans

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Strategic PlanINPUTS Corporate Strategy Business Plans Business Targets Security & Threat Landscape Risk & Compliance Requirements Application Systems Robustness & Ability to Deliver

Value Degree of Current Automation & STP (Straight-Through-

Processing) Budgets & IT Costs

IT STRATEGY 3~5 Years How IT will support the business in Agility, Innovation &

Growth IT Architecture – Internet, Extranet, Intranet & Security Systems – Keep, Upgrade, Replace Integrate via Middleware – Avoid Point-to-Point Infrastructure (Security, Network, Servers & Storage) DR Capabilities Governance, Risk & Compliance Process, Quality & Certifications Skills Matrix, Training & Succession Planning IT Career Path

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Tactical Plan

TACTICAL PLAN 2~3 Years Cover Holistic View of People, Process & Technology

Key Initiatives/Projects Showing Current Pains & Expected Benefits

Investment Dashboard

Quarterly Breakdown of Investment Plan

These Plans Are To Be Well

Communicated to Executive

Management

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Risk & ComplianceRe

gula

tory

Au

thor

ities

Bu

sine

ss

Plan

s

Outs

ide

& In

side

Sec

urity

Th

reat

s

Risk

&

Com

plia

nce

Security Frameworks & Policies

ICT

Initi

ativ

es

Effective IT Governance: Enterprise Architecture – Predict & Architect; Reengineer (if

needed) IT Architecture Board (ITAB) – Ensure Architectural Compliance.

Avoid Rework & Wastage Risk & Compliance (Cloud related policies too….) – Policies. Roles

(Who Does What). Govern & Comply!IT Governance

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Building Blocks Towards Agile ITAGILE IT Enterprise Architecture

Modular Infrastructure, Application & Security (SOA) Infrastructure

Virtualize Servers – TCO, Provisioning Time, Asset Utilization

Virtualize Desktops/Applications – Mobility, Deployment, Upgrade, Security

Virtualized & Tiered Storage – Interoperability, Performance, Thin-Provisioning

Backup, DeDup & Archival – Faster Backup, Secure Data Movement

Active-Active DR Capability – Resilience & Site Recovery, Investment Utilization

ESB Avoid Point-Point connection; Use a solid

Middleware Modularity

SDLC Optimized SDLC, Faster & Consistent Service

Provisioning ERP, CRM, BI, EDMS & Workflow

Automation & Integration for enhanced Efficiency

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Policies, Processes, Work Instructions …. IT Asset Lifecycle – IMAC-D Distinguish Between:

• Policies• Processes• Work Instructions• Checklists• Guidelines

Policies Are Clear, Concise, Unambiguous & Addresses IMAC-D

Processes Exists for all Routine & Operational Activities

Work Instructions & Checklists are equally important Apply PDCA approach for Continuous Improvement

Importance Process Training & Awareness

Cannot Be Overemphasized

1111

IT as a Service & Charge-Back to BusinessIT Services & Service Catalog Ensure to have all IT Service Delivery Processes Well

Documented

Have all Services Listed

Create an User Friendly IT Service Catalog with Service Costing

See which Services can be offered as a Self-Service

Have an SLA signed with the Business

Have relevant Under-pinning Contracts

Provide the Services

Generate Service-Reports by Department, By User etc.

Charge-Back the Business for the Services OfferedEnsure to Have the Services Delivered Efficiently and Cost Effectively

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Outsourcing & Managed Services

Key Considerations:• Is This Strategic or Even Tactical?

• Which is a good candidate for outsourcing?

• Dimensions of Outsourcing – How Much is Too Much

• Contractual side of IT Sourcing

• Service Levels Agreements (SLAs)

• SLA Matrix and KPI

• Intangible; yet key factors of successful outsourcing

1313

Business & IT TransformationIn-House

Outsourcing Cloud

Do IT In-House- Full Control- Secure (CIA & IP)

- Lack of Agility- Complex Environment- High Tech Skills- High Mgmt Overheads- Technical Management

Business Process Outsourcing

Large Scale or Total Outsourcing

- Improved Efficiency & Accuracy

- Low Tech Skills- Reduced Technical Mgmt- Medium Mgmt Overheads- Fosters Focus towards

Core Business Matters

- Risks Around IP & CIA- New Dimensions of IT

Vendor Management- Challenge of Performance &

SLA Measurement- Risk of Cost Escalation

Cloud Services (PaaS, IaaS, SaaS)

- Much Improved Agility- Substantial Reduction of

Managing Technical Complexity

- Fosters Focus towards Innovation & Core Business Matters

- Complex Decision Making- Risks Around CIA & IP- Where is the Cloud (Here,

Near or Far)?- What Are The Standards?- What Are The Governing

Laws- How Do I Retrace My Steps?

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Risk Takers, Early Adopters & Vantage Players New Business Models – New Advantages, New

Risks, New Challenges

Early Adopters Are The Risk Takers Who Shapes Transformations

Corporate IT Strategies To Include Cloud The “Here”& “Near” Scores Higher

Local ISP Clearly Are at A Vantage Pointo Example: Common Security Threats

Service Delivery of Routine & Common Services:o Holding & Government Organizations Can Setup Their

Private Cloud

1515

Decision Making – To Spark Your Thoughts …..

• Is this Service Related To Your Core Competencies? – If Not, Think….

• What Is the Cost & Effort to Provide This Service? - If Substantial or Even Considerable, Work Out the ROIs ….

• Is A Cloud Service Available? – Locally, In the Region, Distant….

• Are There Any Governing Policies/Laws That Inhibits? – Within Your Org or Local

• If Indicators Are Favorable - Go

1616

Project Funding & Business Case IdeasCAPEX intensive projects Joint Ventures & Co-Funding

Differed Payment Models

3 years OPEX, TCO & ROI + Indirect Costs

Business Cases – “The Tough Nuts” Risk, Probability & Impact -- $$$

Cost of lost Opportunity

Cost of losing Market-Share

Cost of losing Image as “Innovates & In The Forefront”

1717

Maturity Models & CertificationsIT Maturity – Evolve your IT Reactive – Business decides; IT requirement is

conveyed

Collaborative & Proactive – IT is involved with Business

Predictive & Influential – IT predicts & influences Business

Service Oriented & Well Orchestrated – Agile IT

IT Costs are Charged-Back – IT has to be Competitive

Frameworks, Capability & Quality Certifications COBIT CMMI ITIL ISO – Service Management; IT Security, IT

Governance

Business Is Happy; Credibility is Endorsed !!

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Summary of IT Transformation Road Map

Quick Wins

Strategic Plans

Tactical Plans

IT Risk, Compliance & Governance

IT Architecture – Simple, Modular, Secure & Future-Proofed

Agile IT – Infrastructure, Applications, SDLC & Process

Cloud, Outsource, Co-source, JVs & Insource – Balance IT Right

Service Delivery – Efficient, Optimized & Consistent

HR Assets – Honed Skills, Motivated & Believes Keep All Stakeholders Well Informed

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Thank Youindranil.guha@cbd.ae

Questions?