Cloud Apps World

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Cloud Apps World Excel LondonNovember 12. 2014 1

ITS

Business/IT Strategy & Architecture

Cloud Apps World Europe

Unlocking the value ofBig Data/Analytics

Linkedin: Steef Klein
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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 itsvalue?

Security considerations: Necessary steps organisations should take to safeguard dataaccessed via the cloud

Data Management PanelUnlocking the business value of integrating data into the cloud

#Appsworld: November 12. 14:00
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Big data competitors. These are organizations that have access to extensive information fromoperations 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 goodscompanies and operations departments.

Underachievers. These are organizations that have access to extensive information, but fail totake 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 tosupport the business. Examples include healthcare and human resources.

Big/Data analyticsThe industries willingness to use it.

Source: Thomas Davenport


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

In 2020 > 90% of the total IT industrys growth will be based upon 3rd platform

initiativesThe industrys 3rd platform revenue will be 40% of the total IT industry's revenue A mature 3rd platform will support all SMACT building blocks.

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


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SMACT Building BlocksSocial business, Mobile solutions, big-data/Analytics,

Cloud services & internet of Things


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Cloud Computing ServicesSMACT 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, will reach plateau within 2 years.

Social Technologies not mentioned (from IDC), but is embedded within aPaaS, Mobile, etc

Source: Gartner


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Mission, Vision & StrategyMany companies struggle with the execution

Over 50% of all European companies have a negative Free Cash Flow to Firm(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

Source: 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 Systems

Decision making environmentBig Data/Analytics support

Mobile solutions

High degree of flexibility

Skilled and trained workforceSocial manufacturing environment

Change Innovationprocess (IT)

Middle Management/

Workforce alignment

Improve ProfitabilityImprove 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 percentageOperating income (EBIT)

Return On Capital (ROC)

Free Cash Flow to Firm

growth (FCFF)

On time delivery to commitDelivery 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 costsOrder fulfillment lead time

Key components materialavailabilityInventory turnover rate

Return on R&D investment

8

> 18%

Strategic awareness

Strategic job readiness

Systems availability

Reorganization readiness

Profiles & acquisitionSCRUM 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 networkHunter approach

Renew ERP Implement MES (Incl.

Quality)Implement APS (SOP)Improve CRM usage

Strengthen PLM

Global St rategy Program

Job profiles, training

Communications

program

Develop training

schedule & execute


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Optimising your ROI using the 3rd platformAverage 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 costreduction

IT staff productivity

User productivity

Source: IDC


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High level supply-chain metricsImproving KPIs

Source: SCOR

O


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On premise based Capex & Working Capital

Revenue 700.000

EBIT(1-t) 45.000Total 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 46.824Total 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 improvementThe 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 laggardto a best in class company.


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

Down time: $100,000 revenue loss each hour.Move to predictiveor 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 NOSQLor 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


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Enterprise aPaaS Platform

Cluster

Data Store

5

N

OSQL

or

N

eo4j

Graph

Database

BusinessLogic

Predictive

Algorithms

6 1

2

Data

Mapping &

Reducing

QueryandDisplay

A

nyUI

Initialdatafilt

ering&formatting

4

3

4 Create predictive algorithms insideHadoop add-on

5 Store all relevant data into a NOSQL orGraph database

6Use aPaaS platform+add-ons todisplay end-results

1 Define the different sources to mine

3 Map/Reduce data in Hadoop cluster

Retrieve initial data and filter andformat data within aPaaS platform

2

Big Data/AnalyticsUse case example


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Cloud services and securityWill 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 FISMA compliancy it will be certified and accredited by the US

Government.

New dedicated, multi-tenant government instances will allow U.S. federal, state, and localagencies to rapidly deploy the latest social and mobile technologies in compliance withFISMA 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 totransform government IT with salesforce.com cloud solutions.

Two-thirds of U.S. federal Cabinet-level agencies and governments in more than 80 percentof U.S. states trust salesforce.com to power their social enterprises.

The most eloquent example:

The US government accepts Salesforce1s aPaaS solution as a secure platform, which

is FISMA compliant.

FEDERAL INFORMATION SECURITY MANAGEMENT ACT (FISMA)
http://en.wikipedia.org/wiki/Federal_Information_Security_Management_Act_of_2002http://en.wikipedia.org/wiki/Federal_Information_Security_Management_Act_of_2002http://en.wikipedia.org/wiki/Federal_Information_Security_Management_Act_of_2002http://en.wikipedia.org/wiki/Federal_Information_Security_Management_Act_of_2002


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Available aPaaS development environmentsSome available tools to support complete SMACT

HerokuWorlds most powerful

aPaaS polyglot platform.

Elastic Beanstalk

Amazons aPaaS solution

AzureMicrosofts aPaaS solution

AppFogAn aPaaS differentiator

AcquiaThe Drupal only platform

Salesforce1The leader in Gartners aPaaS magic quadrant Openshift

Red Hats aPaaS solution

Engine YardRuby, PHP and Node.js

Google App EngineJava and Python

CloudBeesPrimarily Java

Cloudera EnterpriseHadoop based

Enterprise Datahub Services

JoyentAn independent aPaaS solution


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