Apps World Europe: Data Management panel

Cloud Apps World – Excel London November 12. 2014 1

BITSABusiness/IT Strategy & Architecture

Cloud Apps World Europe

Unlocking the value of Big Data/Analytics

Linkedin: Steef Klein

https://www.linkedin.com/profile/view?id=5083312

https://www.linkedin.com/profile/view?id=5083312


• Comprehending the challenges of storing and understanding big data

• Best practice in using the cloud to better manage data (big and small)

• Examining the benefits: Case study examples of cloud data management optimising

ROI

• Analysis: What tools are available to use the cloud to analyse big data and boost its

value?

• Security considerations: Necessary steps organisations should take to safeguard data

accessed via the cloud

Data Management Panel Unlocking the business value of integrating data into the cloud

#Appsworld: November 12. 14:00

https://www.apps-world.net/europe/agenda/tracks/cloud-world




• Big data competitors. These are organizations that have access to extensive information from

operations or customer relationships, and use that data intensively. Examples include investment

firms and functions such as marketing.

• Overachievers. These are organizations that have limited access to data, but are committed to

using it as much as possible to inform decisions. Examples include consumer packaged goods

companies and operations departments.

• Underachievers. These are organizations that have access to extensive information, but fail to

take advantage of it. Examples include telecom companies, and finance and sales departments.

• Disadvantaged. These are organizations with limited access to data that rarely use information to

support the business. Examples include healthcare and human resources.

Big/Data analytics The industries willingness to use it.

Source: Thomas Davenport


The rise of the 3rd platform Dedicated, agile and integrated solutions will prevail

• In 2020 > 90% of the total IT industry’s growth will be based upon 3rd platform

initiatives

•The industry’s 3rd platform revenue will be 40% of the total IT industry's revenue

• A mature 3rd platform will support all SMACT¹ building blocks.

Source: IDC ¹SMACT: Social business, Mobile solutions, big-data/Analytics, Cloud services & internet of Things


SMACT Building Blocks Social business, Mobile solutions, big-data/Analytics,

Cloud services & internet of Things


Cloud Computing Services SMACT is on the move

• In 2014, parts of SMACT has reached the plateau (aPaaS, SaaS, mobile) • Big Data is lagging; software industry must integrate this within aPaaS • IoT is on the radar, but still needs time to mature • Cloud Services, aPaaS, Mobility, SaaS, iPaaS, has reached plateau • Social Technologies not mentioned (from IDC), but is embedded within aPaaS, Mobile, etc

Source: Gartner


Mission, Vision & Strategy Many companies struggle with the execution

•Over 50% of all European companies have a negative Free Cash Flow to Firm¹ (Equity) -2013- • Many of these companies struggle to lower their WC, COGS, etc. • A sound strategy in combination with an embedded business model change is needed • Previous too complex 2nd platform related IT solutions prevented a successful roadmap

¹Source: Aswath Damodaran

Process

Learning&Growth

Financial

Customer

STRATEGY MAP BALANCED SCORECARD ACTION PLAN

Process

ThemeOperations Management Objectives Measurement Target Initatitives Budget

Operating Margin

Return on Capital

Revenue growth

On time,

error free

delivery

Short delivery

timeInnovative

value added

products

Improve

Quality

Optimize Supply Chain

& Manufacturing

Processes

Value Streams &

Intelligent equipment.

Strategic SystemsDecision making environment

Big Data/Analytics supportMobile solutions

High degree of flexibilitySkilled and trained workforce

Social manufacturing environmentChange Innovation process (IT)

Middle Management/

Workforce alignment

•Improve Profitability•Improve present and future

excess investment returns

•Increase Revenue

• Right, error free, on time

parts

• Be close to the customer

• Deliver intelligent value

stream equipment

• Initiate Quality Control

Program

• Best in class supply chain

& manufacturing KPIs

• Identify Value Streams;

Use Mechatronica

• Middle Management &

Workforce aligned with

strategy

• Develop the necessary

skills (Lean/Six sigma)

• Implement modern

systems

• Reorganize R&D,

multidisciplinary teams

• Acquire IT personnel

• Introduce SCRUM

•Market value percentage•Operating income (EBIT)

•Return On Capital (ROC)

• Free Cash Flow to Firm

growth (FCFF)

•On time delivery to commit•Delivery time

•Customer retention rate

•New customers

• > 99% •< 2 days

•> 90%

• > 10% of Revenue

• >30%• > 15% of revenue

• > 12,5 %

• > 7,5% annually

•Total supply chain costs•Order fulfillment lead time

•Key components material

availability•Inventory turnover rate

•Return on R&D investment

• <10 % of revenue• < 20 days

•< 7 days

• > 8

• > 18%

•Strategic awareness

•Strategic job readiness

•Systems availability

•Reorganization readiness

•Profiles & acquisition

•SCRUM certification

•Yr1 – 100%

•Yr1 – 75%; Yr2 – 100%

•Yr1 - 75%; Yr2 – 100%

• Yr1 – 100%

•Yr1 – 100%

•Yr1 – 80%; Yr2 – 100%

• $ XXX• $ XXX

• $ XXX

• $ XXX• $ XXX

• $ XXX• $ XXX

• $ XXX• $ XXX

• $ XXX

• $ XXX

• $ XXX

• $ XXX

• $ XXX

•Global processes• Standardize local factory

processes

•Extend Service network•Hunter approach

•Renew ERP• Implement MES (Incl.

Quality)

•Implement APS (SOP)•Improve CRM usage

• Strengthen PLM

•Global Strategy Program

•Job profiles, training

• Communications

program

•Develop training

schedule & execute


Optimising your ROI using the 3rd platform Average annual cost savings about $730K per 100 users

WC and COGS reduction not taken into account. A 50% reduction of the total supply chain costs is possible within companies which are laggards.

44%

14%

34%

9% Business productivity

Infrastructure cost reduction

IT staff productivity

User productivity

Source: IDC


High level supply-chain metrics Improving KPI’s

Source: SCOR


On premise based Capex & Working Capital

Revenue 700.000

EBIT(1-t) 45.000

Total WC (15% of revenue) 105.000

Total Capex 42.000

IT Capex (3% of revenue) 13.704

Total Capex depreciation 33.600

Change in NCWC 0

FCFF 36.600

Cloud based Capex & working Capital

Revenue 700.000

EBIT(1-t) + internal IT Opex 46.824

Total WC (11.25% of Revenue) 78.750

Total Capex 37.686

IT Capex (2.1% of revenue) 9.390

Total Capex depreciation 30.149

Change in NCWC -26.250

FCFF 65.537

Operational Excellence improvement The possible influence of Enterprise aPaaS on Operational Excellence

(An example – Figures are indicative)

• Revenue of medium sized manufacturing company •Starting WC is 15% of revenue. Based on average WC research in the Mfg industry sector. • Best in class companies have a Non Cash Working Capital lower than 10% of revenue • An optimal supply-chain can reduce NCWC with 50% when a more complex supply-chain is at hand.

•In this example the operating Income Margin (–tax rate) equals 6.4% of revenue. (Laggard) • The FCFF rises with 168%; the intrinsic value of the company , which is calculated over multiple years will increase.

• A business plan written for many manufacturing companies with a sound strategy will in most cases result in moving from a laggard – to a best in class company.


How to improve your equipment OEE How can the OEE of an important asset be improved.

• Down time: $100,000 revenue loss each hour.

• Move to predictive – or prescriptive maintenance.

• Use Big-Data/Analytics to gather and analyze the information,

• Use the SMACT building blocks in order to inform responsible management.

• Use Hadoop to gather and process the data from a variety of sources.

• Use e.g. Apache Mahout, a Hadoop add-on, to create predictive algorithms.

• Use NOSQL – or Graph databases to store collected data.

• Use an Enterprise aPaaS solution to retrieve and display the information.

Source: Big Data Predictive Analytics for Proactive Semiconductor Equipment Maintenance: A Review


Enterprise aPaaS Platform

Clu

ste

r

Data Store

5

NO

SQ

L

or

Ne

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Gra

ph

Da

tab

as

e

Business

Logic

Predictive

Algorithms

6 1

2

Data

Mapping &

Reducing

Qu

ery

an

d D

isp

lay

An

y U

I

Init

ial d

ata

fil

teri

ng

& f

orm

att

ing

4

3

4 Create predictive algorithms inside

Hadoop add-on

5 Store all relevant data into a NOSQL or

Graph database

6 Use aPaaS platform+add-ons to

display end-results

1 Define the different sources to mine

3 Map/Reduce data in Hadoop cluster

Retrieve initial data and filter and

format data within aPaaS platform 2

Big Data/Analytics Use case example


Cloud services and security Will public Cloud services be accepted by the industry?

• Having your own Enterprise App store is essential.

• Monitoring & controlling enhances corporate security, industry compliance and employee

productivity.

• If your aPaaS platform has a FISMA¹ compliancy it will be certified and accredited by the US

Government.

• New dedicated, multi-tenant government instances will allow U.S. federal, state, and local

agencies to rapidly deploy the latest social and mobile technologies in compliance with

FISMA requirements.

• New AppExchange for Government delivers the app marketplace where agencies can find,

try and deploy cloud apps for the public sector.

• New Government Partner Accelerator Program will train an army of 1,000 integrators to

transform government IT with salesforce.com cloud solutions.

• Two-thirds of U.S. federal Cabinet-level agencies and governments in more than 80 percent

of U.S. states trust salesforce.com to power their social enterprises.

The most eloquent example:

The US government accepts Salesforce1’s aPaaS solution as a secure platform, which

is FISMA compliant.

¹FEDERAL INFORMATION SECURITY MANAGEMENT ACT (FISMA)

http://en.wikipedia.org/wiki/Federal_Information_Security_Management_Act_of_2002




Available aPaaS development environments Some available tools to support complete SMACT

Heroku

World’s most powerful

aPaaS polyglot platform.

Elastic Beanstalk

Amazon’s aPaaS solution

Azure

Microsoft’s aPaaS solution

AppFog

An aPaaS differentiator

Acquia

The Drupal only platform

Salesforce1

The leader in Gartners aPaaS magic quadrant Openshift

Red Hat’s aPaaS solution

Engine Yard

Ruby, PHP and Node.js

Google App Engine

Java and Python

CloudBees

Primarily Java

Cloudera Enterprise

Hadoop based

Enterprise Datahub Services

Joyent

An independent aPaaS solution


BITSABusiness/IT Strategy & Architecture