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April 2015
Webinar on building Next Generation cloud platforms
Identifying core vs. context
2
Agenda
Core v/s Context1
New Age Software Engineering2
Case Study: Identifying Core v/s Context3
About Zinnov4
3
The concept of Core v/s Context is applicable for companies across all industries. This webinar focuses on it for building next generation cloud platforms
Core• Innovation that creates differentiation leading
to customer preference during purchase
• Combats commoditization and margin compression
Context• Everything else, not a source of differentiation
• What was once core becomes context over time
• Can be a source of business and management inertia
Goal of identifying Core from Context• Extract resources from Context to invest in Core
Source: Dealing with Darwin by Geoffrey Moore
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Post identifying Core from Context, there are 5 major levers to extract resources from Context and invest in Core activities
1. Centralize• Ops under single authority to reduce overhead and single decision making to manage risk
2. Standardize• Reduce variety and variability of processes delivering similar outputs
3. Modularize• Deconstruct the system into component subsystems and standardize interfaces
4. Optimize• Eliminate redundant steps, automate standard sequences, streamline, substitute lower cost resources, instrument
the process for monitoring and control
5. Outsource• Drive processes out of the enterprise entirely to reduce overhead, make costs variable, and minimize future
investment• Incorporate monitoring systems into SLAs
Source: Dealing with Darwin by Geoffrey Moore
5
Agenda
Core v/s Context1
New Age Software Engineering2
Case Study: Identifying Core v/s Context3
About Zinnov4
6
The old development process for on-premise software products has undergone a tremendous transformation for cloud products
Design Core Coding Peripheral Coding Integration and Testing Deployment Maintenance and
Support
New Age Software Engineering: Building Next Generation Cloud Platforms
Mobile and Web Interface
Development – UI/UX
Testing Automation
DevOps: Continuous Deployment DevOps: Monitoring
Application Integration – APIs,
iPaaS
Module Development: User Mgmt., Customer
Support and Billing
Penetration Security Testing
DevOps: Continuous Integration
Automated Customer Support
Requirements Gathering
Product Architecture Design
Prototyping
Core Modules Development
Infrastructure Allocation
Feedback: Customer Usage and Competitive Products
Agile Development Cycle
Source Code Security Testing
Developer Platform for custom apps
Source: Zinnov Research & Analysis
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Agenda
Core v/s Context1
New Age Software Engineering2
Case Study: Identifying Core v/s Context3
About Zinnov4
8
Identification of Core v/s Context for needs to be performed separately for two sets of products: Old On-Premise Products and New Cloud Platforms
1. Separate Approach for Old On-Premise Products and New Cloud Platforms• Old On-Premise Products typically have mature stagnant or declining markets and are typically context• Cloud Platforms have established themselves as the eventual future and are typically core
2. Factors impacting Core v/s Context for Old On-Premise Products• Management overheads of products contextual to the mid-term strategy of a company are high for traditional
companies as they typically bring in major share of revenues. Modernization attempts for these products are undertaken to understand New Age Engineering and apply them for the new cloud platforms
• Many traditional companies have successfully focused on outsourcing full product management of the old On-Premise Products, including modernization
3. Factors impacting Core v/s Context for New Cloud Platforms• Identifying the Core v/s Context for building New Cloud Platforms is tricky for traditional companies, as New Age
Engineering is new for the company but not for the industry• A combined assessment of internal company and external ecosystem capabilities needs to be performed for
identifying Core and Context
Source: Zinnov Research & Analysis
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Identification of Core v/s Context takes place in two steps – An internal analysis of the company’s strengths and an external analysis for industry benchmarking
Product Leadership
Zone
Operational Excellence
Zone
Customer Intimacy
Zone
Disruptive Technology
Genentech
Solution Specialisation
Accenture
Product Engineering
BMW
Platform Ecosystem
Power Brand Line Extension
Mattel
Product Design
Apple
Marketing Programs
Amazon
Quality of Experience
Cirque du Soleil
Value Engineering
Walmart
System Integration
SAP
Process Optimization
Toyota
Business Model
Innovation
Salesforce.com
1. Internal Analysis: Company Strengths
Source: Dealing with Darwin by Geoffrey Moore; Zinnov Research & Analysis
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The External Analysis of New Age Engineering Leaders was performed for a client in the software engineering space – Analysing outsourcing and globalization patterns
Source: Zinnov Research & Analysis
2. External Analysis: Peer Benchmarking with New Age Engineering Leaders to discover industry trends
Design Core Coding Peripheral Coding
Integration and Testing Deployment Maintenance
and Support
Mobile and Web Interface
Development – UI/UX
Testing Automation
DevOps: Continuous Deployment
DevOps: Monitoring
Application Integration – APIs, iPaaS
Module Development: User Mgmt., Customer
Support and Billing
Penetration Security Testing
DevOps: Continuous Integration
Automated Customer Support
Requirements Gathering
Product Architecture
Design
Prototyping
Core Modules Development
Infrastructure Allocation
Feedback: Customer Usage and Competitive Products
Source Code Security Testing
Developer Platform for custom apps
• Analysis of trends in outsourcing by New Age Engineering leader companies revealed that Deployment DevOps, Infrastructure testing and Interface Development were context processes for that particular client. The exact context processes will vary for other companies.Core Context
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Agenda
Core v/s Context1
New Age Software Engineering2
Case Study: Identifying Core v/s Context3
About Zinnov4
12
Zinnov is a 13 year of management consulting firm ranked among the Top 20 Outsourcing Advisors by IAOP for 7 years in a row
Engineering & IT
Excellence
Product / Market Definition
Globalization Accelerator
Platform
Industry Benchmarks & Frameworks
Networking opportunity with peers
Thought leadership and on demand insights
Branding opportunities
Business Strategy & Expansion
Business Strategy
Account Management
M&A/Operations Optimization
Customer Connect
Emerging Markets
Direct SalesMaximization
Channel Design and Monitoring
Solution Ideation
Opportunity Assessment & Go to Market
GIC Setup
Charter Definition/ Planning
Zinnov Offerings
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Zinnov’s customers spans the full breath of the industry with a focus on technology companies
Software Products
Engineering Associations &Trade Bodies
Servers & Storage
Consumer Electronics & Semiconductor
Telecom &Networking
Digital Companies
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