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ITS
Business/IT Strategy & Architecture
Cloud Apps World Europe
Unlocking the value ofBig Data/Analytics
Linkedin: Steef Klein
https://www.linkedin.com/profile/view?id=5083312https://www.linkedin.com/profile/view?id=5083312https://www.linkedin.com/profile/view?id=50833128/10/2019 Cloud Apps World
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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
https://www.apps-world.net/europe/agenda/tracks/cloud-worldhttps://www.apps-world.net/europe/agenda/tracks/cloud-worldhttps://www.apps-world.net/europe/agenda/tracks/cloud-worldhttps://www.apps-world.net/europe/agenda/tracks/cloud-world8/10/2019 Cloud Apps World
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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_20028/10/2019 Cloud Apps World
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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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ITS
Business/IT Strategy & Architecture