CSC World 2012

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CSC World is our corporate publication that seeks to explain the business meaning behind advances in IT.

CSC World is our corporate publication that seeks to explain the business meaning behind advances in IT.

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  • 1. Summer 2012WORLD theConnectedConsumer Challenging Traditional Financial Roles INSIDE The War for Your Digital Wallet Say Goodbye to Mobile Passwords Innovators Get the Spotlight Why Weather Means Business
  • 2. Let’s face ITThe coevolution of online services and mobile devices is driving BUSINESS SOLUTIONSdemand for fast, easy and affordable authentication solutions. CSC TECHNOLOGYspecializes in delivering comprehensive identity-based services. Weblend the latest technologies, systems, policies and processes to OUTSOURCINGdeliver integrated identity management and privacy assurancesolutions that are secure, efficient and increase business value.Learn more at
  • 3. WORLD Inside CSC WorldDIRECTOR, GLOBAL BRAND & DIGITAL MARKETING In one of America’s most cash-strapped and crime-ridden cities, creative financing is fundingNick Panayi the return of one famous policeman. An idea to build a monument to RoboCop, the part-man,EDITORIAL DIRECTOR part-machine sci-fi movie character, will soon become reality — and the effort behind thePatricia Brown statue is indicative of changes sweeping across the financial services industry.Senior managing editorJeff Caruso Today, a global community of consumers armed with mobile devices is redefining the rela-editor tionship between customers and banks. The ensuing change is bringing about some veryChris Sapardanis creative uses of money. It is enabling projects that never would have been possible before.Contributing WritersJim Battey The idea to bring a statue of the crime-fighting icon to stand watch over the Detroit neigh-Dale Coyner borhoods he patrolled in the movies began as a Tweeted suggestion to Detroit’s mayor, andPeter KrassJenny Mangelsdorf then went viral in February 2011.Art directorDeric Luong Some Detroiters decided to explore how far they could take the proposal by using a financing option called “crowd funding.” Crowd funding describes the process of people networkingDesignKelly Dare online and pooling money or other resources to support projects started by others. The RoboCop team chose Kickstarter, the largest crowd-funding platform, which boasts $200Design & production million pledged to projects since April 2009.Corporate MarketingShared Services — P2 But it isn’t just pop-culture sculpture that can benefit from this alternative financial service.CSC­­­ Crowd funding helps technology innovators who otherwise lack enough capital to bring their ideas to market.THE AMERICAS3170 Fairview Park DriveFalls Church, VA 22042 In May, the Pebble e-paper watch for iPhone and Android became the most-funded projectUnited States in Kickstarter history, gaining more than $10 million in pledges, after asking for $100,000. ItTel: +1.703.876.1000 took the RoboCop crew in Detroit a few weeks to generate $67,436 to build the statue, afterEMEA asking for $50,000, and building is under way.Royal PavilionWellesley RoadAldershot, Hampshire GU11 1PZ Consumers everywhere are supplementing traditional financial services or bypassing themUnited Kingdom altogether. In our cover story, “The Connected Consumer,” CSC World speaks with PatrickTel: +44(0)1252.534000 Molineux, the researcher behind the Leading Edge Forum’s new report about the evolvingAUSTRALIA financial services industry. The report examines changes driven by mobility, microfinance,26 Talavera RoadMacquarie Park NSW 2113 media and mining.AustraliaTel: +61(0)2.9034.3000 Also in this issue, we hear how “The Constantly Connected Customer” is adding mobileASIA devices to the retail shopping experience in stores without the shopkeepers’ blessing. These20 Anson Road #11-01 customers are using their own devices and apps to gather information about products,Twenty AnsonSingapore 079912 brands, pricing and availability.Republic of SingaporeTel: +65.6221.9095 In “The War for Your Digital Wallet,” we explore how companies are vying to meet the needs of these consumers. The battle extends beyond traditional financial services companies,CSC WORLD (ISSN 1534-5831) since a wide range of companies are looking for a piece of this rapidly expanding a publication ofComputer Sciences Corporation. The Connected Consumer is a global phenomenon. In “Mobile Money Can Deposit GreatCopyright ©2012Computer Sciences Corporation Change in Emerging Markets,” we see further implications. In developed countries, mobileAll rights reserved. phones are just another way to access traditional banking, but in emerging markets, theReproduction without permissionis prohibited. effect of “mobile money” is monumental.Comment on what you’ve We hope you enjoy the issue. CSC World is also available atread in CSC WORLD, where you can subscribe, comment on stories or download mobile versions.Or write:CSC WORLD Chris Sapardanis3170 Fairview Park DriveFalls Church, VA 22042 USA Editor, CSC World SUMMER 2012 | CSC WORLD 1
  • 4. CSC WORLD | summer 2012 | VOLUME 11 | NUMBER 2 20 34 24 42 10 NEWS 4 CSC’s footprint grows in Canada, managed security services gain flexibility, major client contracts and accolades are won, and our long-standing support of the U.S. Navy continues. cover story 10 The Connected Consumer As mobile devices become more popular and sophisticated, they are rapidly transforming the relationship between consumers and financial services firms. CSC World speaks with Patrick Molineux, the lead researcher behind “Connected Consumer and the Future of Financial Services,” a report that examines these changes. 14 The War for Your Digital Wallet Consumers are already using their mobile phones to make in-store purchases, and as the technology evolves, the payment-processing industry will never be the same. 16 Mobile Money Can Deposit Great Change in Emerging Markets In developed countries, mobile phones are just another way to access traditional banking services, but in emerging markets, the effect of “mobile money” on financial services is monumental. 18 The Constantly Connected Customer Customers are adding smartphones and mobile devices to their shopping experience in your stores without your blessing. What are you going to do about it?2 CSC WORLD | SUMMER 2012
  • 5. Social media20 Should Healthcare Organizations Use Social Media? New ON CSC.COM Social media is drastically changing the way healthcare Big Data Getting Bigger: The world of data is changing organizations communicate with customers and accomplish dramatically — from the amount of data being produced to their business objectives. the way in which it’s structured and used. This trend presents enormous challenges, but it also presents opportunities.22 Social Business: the Next Big Step Learn more at Add social customer relationship management to Enter- prise 2.0, and you get something truly transformational: CSC Town Hall: CSC introduces its Town Hall events, our social business. continuing series of online conferences on IT topics that matter to you, featuring CSC experts and special guest CLIMATE DATA speakers ready to answer your questions. Registration is24 Climate Economy: Why Weather Means Business free at Climate and weather patterns are in flux and the impact Success Story Briefing Center: View video success stories featur- is being felt across many industries. A new climate data ing CSC subject-matter experts, clients and global partners, or reporting tool provides insights into how these changes search hundreds of stories that cover a wide range of industries, affect bottom lines. locations and clients at Finding Big Fish in Big Data Off Florida’s coast, scientists are diving into a sea of data. They’re tracking tiny Atlantic bluefin tuna larvae using climate and weather data mined from one of the world’s largest data libraries. BIOMETRICS By the numberS28 Say Goodbye to Mobile Passwords 38 Big Data, Bigger Potential Passwords remain a popular security device simply because Once you get your mind around just how big our data they are easy and inexpensive to use. But thanks to new has become, the next trick is to open your mind to the technologies, the last days of forgettable letters and possibilities created by having all that data. numbers may be in sight. IN PRACTICE: Utilities CLOUD COMPUTING 40 National Grid Energizes IT via Virtualization 30 From Pilot to Production: Key Questions Emerge When National Grid was looking for a world-class IT as Companies Adopt Cloud Architectures team to deliver highly reliable and efficient IT support Cloud computing is transforming the IT infrastructure of services, CSC was chosen to provide enterprise services today’s enterprise, helping companies reduce costs, expand for the ecosystem. relationships, support a mobile workforce and respond to changing business conditions. 42  wissgrid Powers Up Cybersecurity S As a strategic player in Europe’s power grid, Swissgrid32 5 Questions CIOs Should Ask Before Moving needs to meet the most robust cybersecurity standards Email to the Cloud or the lights could go out in several countries. The modern office requires instant and rich communica- tions among a dispersed workforce. The cloud provides a SUSTAINABILITY way to give companies that flexibility with collaboration 44 Do Your Suppliers Measure Up to Your and email services. Ethical Standards? Supply chains don’t often make headlines. But when they do, FEATURE it’s usually not good news. CSC advocates environmentally,34 Innovators Get the Spotlight socially and fiscally responsible supply chain practices. Forward-thinking CIOs are on the lookout for emerging technologies that will help position their organization for growth and performance. The CSC Award for Excellence recognizes individuals who have created innovative solu- tions that advance our clients’ business or our own. SUMMER 2012 | CSC WORLD 3
  • 6. news ANNOUNCEMENTS CSC BRINGS PRIVATE CLOUD TO CANADA Although cloud computing is widely known to save businesses addition to CSC’s unified communications and collaboration money and make them more productive, many Canadian firms (UCC) solutions suite. have been slow to adopt the technology due to concerns about data privacy and security. CSC’s UCaaS solution enhances the clients’ productivity and accelerates business processes and decision making while CSC’s latest offering in Canada addresses those issues with the lowering costs. The service was developed in close collaboration availability of CSC BizCloud™, the first on-premises private cloud with Cisco and complemented by CSC’s multiplatform integra- billed as a service and ready for workloads in 10 weeks. BizCloud tion. UCaaS builds on CSC’s capability of providing custom, combines the privacy, security and control of a private cloud with outsourced UCC solutions, serving as the underlying platform the agility, convenience and commercial model of a public cloud. for the full range of collaboration capabilities and services that offer clients communication and collaboration flexibility as their “Cloud computing has tremendous promise in Canada,” says businesses grow and change. Mark Schrutt, director of services and enterprise applications for IDC Canada. “Up to this point, many Canadian businesses have “We welcome CSC’s UCaaS offering to Canada and the opportu- been sitting on the sidelines waiting for in-Canada solutions. nities it presents to organizations looking to realize the benefits of IDC’s research finds that 60% of buyers prefer in-Canada Infra- a hosted collaboration solution,” says Mike Ansley, vice president, structure as a Service offerings. In addition, Canadian businesses partner organization, Cisco Canada. “The combination of CSC want flexibility at cost-effective prices. CSC’s BizCloud hits on all and Cisco provides clients with world-class collaboration services these points. We see BizCloud as a key addition to the Canadian to meet the changing needs in the workplace.” cloud market.” The hosted unified communications service allows businesses BizCloud accelerates the adoption of a private cloud by busi- around the world to bring converged voice, mobile and data nesses and government agencies, eliminating lengthy capital services to every desktop in their organization. Companies that acquisition cycles. Compared to do-it-yourself private clouds, are tightly managing their capital expenditures will be able to where multiple components are acquired and then integrated, take a first step into converged communications by basing BizCloud is based on fully integrated VCE Vblocks and comes their telephony, voicemail, conferencing and unified messaging with a service catalog, chargeback methodology, and automa- technologies on a utility-based, per-user pricing model. tion to simplify management and orchestration. Learn more at or In April, CSC also introduced Unified Communications as a Service (UCaaS), based on Cisco’s Hosted Collaboration Solution for Canada. This offering is the latest standard managed service4 CSC WORLD | SUMMER 2012
  • 7. FLEXIBILITY ADDED TO SECURITY SERVICES TO DETER THREATS CSC will offer its Managed Security Services, including its most advanced capabilities, on a stand-alone basis to help clients better address the continually escalating threat environment. Delivered through the company’s around-the-globe Security Operations Centers, CSC Managed Security Services now offer convenient access to enhanced core security, along with risk- appropriate options for advanced malware protection; global threat intelligence; situational awareness; and governance, risk and compliance support. Now available for a much wider range of client organizations, the offering reflects CSC’s enterprise-level managed services experience, expertise across both public and private sector se- curity environments and record of strengthening cybersecurity for some of the world’s largest intelligence organizations.SAFEAUTO LICENSES CSC LEGALSOLUTIONS SUITE Recognized as a “Leader” in “The Forrester Wave™: ManagedSafeAuto Insurance Co., a direct-to-consumer property and Security Services, North America, Q1 2012,” CSC designed itscasualty insurance carrier, has licensed CSC’s legal matter Managed Security Services portfolio around a flexible, tieredmanagement software, Legal Solutions Suite. SafeAuto sells, approach that helps organizations access security with low risk,markets and underwrites state-required, minimum-limit stages their evolution over time toward the most effective pos-personal automobile insurance coverage in 16 states, as well ture addressing the complexity of today’s threat-and-complianceas higher-limit options in multiple states, and has chosen CSC environment and better aligns spending to their specific needs.Legal Solutions Suite to manage legal expenses and improvecommunication with outside counsel as the company expands “Organizations do not have a single risk profile; some aspects ofoperations into new geographic regions. their business are lower risk while others are of extremely high value and require the most advanced protection available,” saysLegal Solutions Suite helps reduce legal expenditures by Carlos Solari, CSC vice president of cybersecurity technologystreamlining and managing collaboration with outside counsel. and services. “Our services tiers enable our clients to buy risk-The software provides detailed data regarding charges, appropriate coverage, from enhanced core services to the mostperformance and outcomes that will enable SafeAuto to quickly advanced and elevated state-of-the-art cyber-protection.”evaluate patterns and trends among law firms and individualattorneys. Legal Solutions Suite also assists with improving Learn more at and consistency in legal matter planning andbill review.“As we expand our business across the nation, it is critical toenforce outside counsel guidelines and ensure budget compli-ance,” says Mark LeMaster, senior vice president and generalcounsel at SafeAuto. “Legal Solutions Suite will help us efficientlymanage outside counsel and improve our bottom line throughan automated, structured expense-management process.”CSC’s Legal Solutions Suite software automates core processesand enables legal or claims organizations to lower expenses,simplify the legal billing process, analyze legal invoices, docu-ment outside law firm performance and create a collaborativeelectronic workspace for budgeting, planning and strategy.Legal Solutions Suite keeps companies better informedthroughout the case-management process and helps identifyfirms that consistently drive superior results. Learn more at SUMMER 2012 | CSC WORLD 5
  • 8. news AWARDS & RANKINGS CSC RECOGNIZED FOR CORPORATE RESPONSIBILITY CSC has achieved a Gold ranking in Business in the CSC also maintains its inclusion for the third consecutive year Community’s (BITC) 2012 Corporate Responsibility Index in the FTSE4Good Index Series, which recognizes companies (CRI), the United Kingdom’s leading voluntary benchmark for their corporate responsibility standards. CSC once again of corporate responsibility. received a high ranking in environmental management. Achieving a Gold-level designation means that CSC is able “We are honored to be part of the FTSE4Good Index Series for to demonstrate openness and transparency through effec- the third consecutive year,” says Susan Pullin, vice president of tive public reporting of its material environmental and social corporate responsibility at CSC. “This achievement is confirma- issues, programs and performance. Gold companies also tion of CSC’s firm commitment to being a responsible corporate tend to expand and adapt their risk management processes citizen, and that we are creating a sustainable business which by incorporating relevant aspects of corporate responsibility takes environmental, social and governance reporting seriously.” risk and opportunity. Their corporate responsibility strategy is articulated in an effective manner and includes clear and Learn more at measurable targets. CSC’s Michael During Cirafesi’s more than 10 years with CSC, the Philadelphia- Cirafesi Wins Top based executive has worked in both commercial and federal Consulting Award consulting. Most recently, in July 2011, he assumed the CTO Michael Cirafesi, a partner and CTO position and rejoined the commercial consulting side. “These for CSC’s Global Business Solu- dramatic changes are why I’ve stayed in consulting,” he says. tions (GBS) Eastern Region, has “I’ve worked with so many different clients and industry segments won this year’s Consulting maga- and accounts and divisions across CSC that I always feel as if I’m zine Top 25 Consultants award for doing something different. Each day is a new challenge.” excellence in technology. Cirafesi is proud of CSC’s culture of putting the client first. The annual Consulting magazine awards honor 25 consultants That means getting close to clients, learning what makes them from leading firms for their extraordinary efforts in seven critical tick, and hanging tough — even when projects get complex service areas: client services, energy, financial services, health- and challenging. “It has a lot to do with being able to deliver care, leadership, public sector and technology. Cirafesi was and being in the trenches,” Cirafesi says. “I consider myself a cited by Consulting magazine for helping GBS achieve record- success when, after a year, I know the business better than the breaking growth; leveraging past relationships to develop new client does.” business; modernizing techniques across the sales, business development and alliance management processes; reinstituting Learn more at the GBS CIO Council; and leading multiple proposals for some $60 million worth of potential consulting and business process outsourcing engagements.6 CSC WORLD | SUMMER 2012
  • 9. INSURANCE BILLING SYSTEM NAMEDAN INDUSTRY LEADERCSC received the XCelent Functionality 2012 and XCelent Service2012 awards from Celent, an industry research and consultingfirm, for its Exceed Billing insurance software. Exceed Billingenables consolidated billing across multiple market segments,lines of business, distribution channels and/or policy systems.The awards are based on Celent’s assessment of CSC’s con-figurable, scalable application, as compared to other offeringsprofiled in a report titled “Stand-Alone Billing System Vendors:North American Property and Casualty Market 2012.”The report uses Celent’s proprietary framework called the ABCDVendor View to profile and benchmark stand-alone systems inuse by property and casualty carriers. Vendors with the highestscore in each category are recognized as XCelent award winners.CSC’s Exceed Billing led the “Functionality” and “Depth ofService” categories following an analysis of the functions andfeatures provided in the base offering; the power and ease ofuse of rules, workflow and product configuration capabilities;supported lines of business and number of deployments; sizeand experience of CSC’s services and support team; and users’ REPORT NAMES CSC AS A ‘LEADER’ INimplementation experiences. MANAGED SECURITY SERVICES Forrester Research Inc. has placed CSC in its strongest cat- Learn more at egory — “Leader” — in the March 26 report “The Forrester WaveTM: Managed Security Services: North America, Q1 2012.” The report evaluated significant providers of managed security services (MSS) against 60 criteria that included current offer- ings, strategies and market presence. “CSC’s current and potential clients now have further indepen- dent validation that they have the best-in-class security protection with CSC,” says Samuel Visner, vice president and lead cyberexecutive at CSC. According to the report, CSC “leverages its large consulting practice to identify suitable candidates for a managed model. CSC uses cost-benefit models to demonstrate the return on investment in its services, and it has one of the better portals in terms of flexibility and features that we tested.” The report also noted that “customers identified its well-run Security Operations Centers and responsiveness as positive attributes for CSC.” CSC’s investment in offering discrete Managed Security Services to the market has been well received by organizations and analysts. Previously available only to its IT outsourcing clients, CSC’s Managed Security Services are now available as a stand- alone offering to a much wider range of client organizations as the company moves aggressively to play a larger and more influential role in this rapidly expanding market. Learn more at SUMMER 2012 | CSC WORLD 7
  • 10. news contract wins Amerisafe Chooses BPO for Legal Services CSC signed a three-year business process services contract with Amerisafe Inc., a specialty insurer in DeRidder, La. Under the agreement, CSC will provide business process outsourcing (BPO) services to manage and automate legal expenditures for Amerisafe by using Legal Bill Analyzer, a component of CSC’s Legal Solutions Suite, strengthening transparency in legal mat- ter planning and communication with outside counsel. CSC’s customized BPO offering for Amerisafe includes a range of services, such as bill review, resolution, reporting, invoice management and Web hosting support. The agreement provides a low-risk approach to transforming operations and controlling costs, and encourages constructive collaboration Merged AMP and AXA Extend between Amerisafe and law firms. Relationship Wealth management company AMP Ltd. has extended its relation- “Growing organizations like Amerisafe are blending compo- ship with CSC to 2016. The comprehensive services contract is nents of Legal Solutions Suite with our BPO capabilities to worth more than AUD$220 million and is designed to support gain measurable efficiencies in legal matter management,” says the merged operations of AMP and AXA Asia Pacific Holdings Jeffery Schwalk, president of CSC’s Property and Casualty Australia and New Zealand. The merger, which took place last year, Insurance Division. “CSC’s customizable software and services brought together two of the region’s most established businesses. ensure transparency for litigated and nonlitigated matters by reducing compliance risks and proactively managing legal The deal expands a six-year, AUD$150 million contract signed in spend, with immediate savings of up to 8%.” 2009, and continues the original engagement between the two companies that was formed in 1993. Currently, CSC provides Learn more at AMP with fully outsourced managed infrastructure services for mainframe, midrange, network, desktop, service desk and cloud email service, as well as information and system security. CSC’s services will enable AMP to maximize efficiencies from the integration of all infrastructure services across the new AMP/AXA entity. CSC will continue to deliver advanced and consistent services across all AMP business units, and work has already begun on the technology integration of AMP and AXA. Transport for London Renews Outsourcing Agreement CSC has signed a new IT outsourcing agreement valued at $33 million with Transport for London (TFL), extending the current contract by 27 months. The contract extension was signed dur- ing CSC’s fiscal 2012 third quarter. Under the extended agreement, CSC will continue to manage a range of IT services for TFL, including service desk, desktop support and the delivery of real-time customer information at a number of London underground stations. “We are delighted to be extending our relationship with TFL and working hand in hand with them as they implement a new IT agenda to support their critical business systems and servic- es,” says Liz Benison, CSC UK president. “Levering our skills and expertise, we will be providing technology-enabled solutions to support them through the transformation.”8 CSC WORLD | SUMMER 2012
  • 11. U.S. NAVY Support for Sealift Program Office The U.S. Navy has awarded CSC a task order to provide pro- gram management support to the Strategic and Theater Sealift Program Office. The order was awarded in the fourth quarter of CSC’s fiscal year 2012 under the Naval Sea Systems Command SEAPORT-Enhanced contract vehicle won by CSC in 2004. The task order has a one-year base period and four one-year options, bringing the estimated total value to $113 million. Under the terms of the agreement, CSC will provide a full range of program management support, including acquisition document preparation, financial management, test and evaluation, integrated logistics, systems integration and technical/engineering. The Strategic and Theater Sealift Program Office is responsible for executing the Joint High Speed Vessel and Mobile Landing Platform acquisition programs as well as the Sealift Research and Development initiative, which includes operational logistics. Training Systems Solutions The U.S. Naval Air Warfare Center Training Systems Division (NAWCTSD) has awarded CSC a Multiple Award Contract (MAC). With a base ordering period of five years and two one- year ordering period options, the Training Systems ContractVideo as a Service to Yield III (TSC III) has a potential ceiling value of $2 billion. It wasBattlefield Intelligence awarded in the third quarter of CSC’s 2012 fiscal year.The U.S. Navy’s Naval Air Systems Command (NAVAIR) hasawarded CSC an Unmanned Aerial Systems (UAS) contract to “Every day, we’re helping the Navy achieve mission-criticaldeliver streaming video as a service. This is an indefinite deliv- requirements, enhance warfighter readiness, improve citizenery/indefinite quantity multiple-award contract with three prime services and, most importantly, save lives,” says Alan B.awardees. The contract has a 60-month period of performance, Weakley, president of CSC’s North American Public Sectorwith a total maximum value of $874 million. Defense Group. “We’ve been developing and enhancing complex training systems for the Navy and other agencies for decades,Under the terms of the agreement, CSC is eligible to receive and this new vehicle will further expedite our customers’ abilitytask orders to fly land-based UAS aircraft to deliver stream- to access additional critical offerings.”ing video from electro-optic and infrared cameras directly tomilitary users in a remote theater of operations. CSC will deploy Under the terms of the contract, CSC will compete for deliverypeople, equipment and supplies. The combination of these orders to design, develop, produce, test and evaluate, deliver,capabilities as a service translates into significant savings to modify and support training systems.customers, who will receive intelligence, surveillance and recon-naissance (ISR) coverage without having to invest in additional Learn more at and equipment. The customer pays only for video hoursdelivered as a service.“CSC has extensive experience delivering technology as aservice,” says Hal Smith, vice president of CSC’s North AmericanPublic Sector ISR Group. “Delivery of video as a service is anatural extension of the CSC business model. We’ll now applythis service delivery model to reliably and efficiently deliverintelligence on the battlefield.” Learn more at SUMMER 2012 | CSC WORLD 9
  • 12. CONNECTED CONSUMER Q&A CONNECTED CONSUMER CSC’s Patrick Molineux Talks About the Quickly Evolving Financial Services Industry by Patricia Brown The dialogue between consumers and financial services firms has taken a number of dramatic turns in recent years. Banking relationships once built on local ties became conversations controlled by voice prompts and customer management systems as mergers and acquisitions turned neighborhood banks into international financial powerhouses. Today, a global community of customers, armed with mobile devices and instant answers, is once again redefining the relationship between customers and banks. Institutions find themselves in unfamiliar territory as they struggle to reconnect with customers on customers’ own turf and attempt to fend off challenges from new companies infiltrating value chains that once belonged exclusively to the financial services industry.10 CSC WORLD | SUMMER 2012
  • 13. The Leading Edge Forum’s most recent report, “Connected A lot of people say mobile technology isn’t secure enoughConsumer and the Future of Financial Services,” examines the to use in financial services and I fundamentally disagree.changes in that relationship through the development of four They’re not comparing it with the right thing. Compare akey areas: mobile technology, microfinance, media and data mobile transaction with cash. Cash is insecure. Cash is almostmining. The report was developed by Patrick Molineux, chief untraceable. It is very easy to steal. It’s the most insecurestrategy officer for CSC’s financial services business. As an LEF thing possible.associate, Molineux drove the research for this report, shapingthe core themes and drawing on a team of CSC experts and Security on mobile devices is changing, and fast. It’s becomingselect financial services and technology firms. Patrick spoke with harder to break the security. We’re starting to see the availabilityCSC World about the quickly evolving financial services industry. of multiple security mechanisms like CSC’s ConfidentIDTM Mobile, which establishes security through multiple layers ofThis report highlights the emergence of the connected identification and authentication.consumer and the ensuing implications for financialservices firms. What aspects of this transformation did In advanced mobile devices, you’ll see security that goes beyondyou find surprising? pass codes using a range of biometric authentication modalities. We don’t know which will be the most practical yet, but mobileOne of the most stunning aspects is the pace of change. We technology is already far more secure than what we’ve hadexamined the impact of four major trends in the report: mobile before and will become even more secure in the near, microfinance, media and data mining. The speed ofconsumer-driven technological change cuts across all four. The report discusses the advent of the super card. Do you see a role for this type of device?This speed is something financial services firms must grasp. Afirm might spend months looking at an innovative idea, and then Compared to other transaction mechanisms, the super card isperform months of feasibility studies, months of implementation, a comparatively new arrival. These are cards with capabilitiespilots and final roll outs. Today at that pace an idea may well be almost rivaling that of a basic phone with digital displays andobsolete or leap-frogged before it hits the street. keypads. These could potentially act as a payment management tool, providing a bank balance, warnings if you reach a presetConsumer control is another important implication. Firms have limit, and multiple accounts from different financial institutions,said for years that the consumer is in control, but it wasn’t really eliminating the need to carry a pocketful of cards.true. Technologies now are making it possible for consumersto gain real control over the financial services process, forcing The report discusses the tug of war between competingfirms to engage on the consumer’s turf for the first time. payment technologies, between super cards and mobile phone technologies. I think there’s a role for both typesThat leads to a third striking development, the need for firms to because payment preferences vary widely by country, culturespeak to consumers in an authentic voice. An authentic voice and not one that has been scrubbed by the legal department,whitewashed by the marketing department, and signed off Will firms need to implement something different on a countryupon by the chief executive. The way firms balance that need by country basis? Will there be a point where we reach afor an authentic voice with the need for maintaining compliance single payment system?will be one of the great customer engagement challenges ofthe next few years. Maybe in 20 years we’ll be such a unified global village that our payment systems will have merged into a single form, but that’sWhat makes these issues important right now? What are the well beyond the time horizon anyone is looking at right now.colliding forces that have created this nexus point? So there will be differences to contend with. Japan is far and away the largest user of NFC [near-field communication] phoneWe care about these issues now because incredibly powerful payments. Kenya is leading the world in SMS-based paymentsmobile devices are so embedded within the consumer lifestyle. with M-Pesa. Sweden may be the most advanced countryThis is driving change in consumer behavior with astonishing moving to a cashless society, with stores in certain townsspeed. The factors are feeding each other — the capability of starting to refuse to accept cash.devices, the acceptance of new forms of conducting financialtransactions, and the sheer number of mobile devices that are To say one payment system will win out over the others wouldin use. It’s almost a vortex of change. require more certainty than I or anyone else should have. Each country has a different kind of infrastructure to cope withYour report examined the impact of mobility in great depth. payments, so the successful transaction technology will be theOne issue we hear about repeatedly is the risk associated with one that’s most convenient: and that’s going to vary by countrymobile devices used for financial transactions. How realistic based on the available alternatives and the transaction at hand.are those concerns and how will they affect the growth ofmobile use in financial services? SUMMER 2012 | CSC WORLD 11
  • 14. CONNECTED CONSUMER The report examines the role of microfinance on the world’s financial future. How important is this trend and what’s the impact on financial services? You can look at microfinance from an altruistic perspective and a hard-nosed capitalist perspective. It makes sense from both. From the capitalist’s perspective, microfinance is about a long- term investment that grows new markets for financial services. In the short to mid-term, the benefit of microfinance can be more altruistic, helping people gain a foothold out of poverty, directly affecting lives. Microfinance isn’t a magic wand and we don’t want to misrepresent it. Citizens of developing countries face many challenges, and microfinance is just one tool to help them. But there is clearly huge value in both the near term and long term. If people have more money, they can break themselves out of poverty; providing accessible financial services is one of the tools to equip people with that ability. What are the barriers that firms face in developing microfinance solutions, and how are they overcoming them? Many barriers to microfinance have nothing to do with finance itself. Just one example is education. Many financial products are complex to understand. There’s no need for financial products to be complex. We can make them simple. Low-cost tablets can have an impact. As soon as people have access to tablet technology, they have sufficient screen real estate to engage in financial education along with other learning opportunities. Mobile devices are overcoming another barrier: distance. If you live a day’s walk from a bank, how do you establish a savings account? Even if you got to the bank, the cost of doing business would be so high, saving would be impractical. Today, phone-based savings accounts allow people to manage financial accounts from anywhere. Technology will never be the whole answer but it’s a big part. You highlighted some facets of the connected consumer at the outset, but in the section of your report that discusses the impact of media, specifically, the Internet, what were the other aspects of this phenomenon that stood out to you? We’ve known since the creation of the Internet that it provides consumers with knowledge. The connected consumer is one who uses the Internet to talk with others on a global scale and convert knowledge into power. And by that I mean taking advice from other consumers, challenging the brands and banks if they don’t like the service they’re getting. That conversion of knowledge into power is an extraordinary shift that is unstoppable. Financial services firms used to act as interpreters, magicians almost, explaining things12 CSC WORLD | SUMMER 2012
  • 15. like pensions that few really understood. Now firms are actingas aggregators or executors because customers can go onlineand find out anything financial. This isn’t exclusive to financialservices. It’s happened in many other industries. Learn more at Download the LEF Report at in social media are imperative. It’s easy to say “youneed to get on Facebook.” The hard part is determining whatconversation you’re going to have with consumers when you’rethere and who will handle it. That goes back to the question ofhaving an authentic voice.The particular imperative for financial services firms is toaddress the new consumers coming to a bank for the first time The report discusses the impact of mining as the fourth “M.”expecting that level of engagement with the firm. No firm has What is mining and how is it relevant to financial services firms?worked out exactly how that is going to play out. That’s not afailure of anyone. It’s simply that this is moving so fast. We’re familiar with data mining, using large sets of structured data to answer specific questions. This is a capability manyWill these factors make financial services easier to understand firms are still wrestling with as they try to respond to complexand to buy? Are we seeing more transparency as a result of regulation. Now there are other types as technologies and the influence of media? Web mining refers to posing questions to unstructured dataWe’re seeing financial systems turn toward greater sets. Google made data miners of us all. Consumers usingtransparency and simplicity, almost like a financial version of search engines are constantly and almost unthinkingly creatingiTunes. But that begs the question: How simple can we make sophisticated algorithms such as “Which bank account should Iit? There is a certain sophistication of the products that defies use,” or “Which insurance company has the best claims payoutsimplification. Making a decision to invest in a Latin American record?” Consumers can get good answers because they’refund versus an Asian fund is not an inherently simple decision. asking specific questions at one point in time. Web mining is a harder task for the firm that needs to have a continually updatedThat’s a great comparison. If financial services are as easy view of those buy as a song on iTunes, do you think it will diminish thediscipline of investing? Then there’s a third development. Social mining reveals who is saying things about you, what’s being said about your firm onThere is a danger that too much simplicity can mask the Twitter feeds, what discussions are taking place in online forums.sophistication of the decision. The consequences are low if I This is huge. Firms can even start to adapt their product andbuy a Salt-n-Pepa tune instead of the Pink Floyd track I meant service offerings based on what individual consumers are sayingto buy. Financial mistakes are expensive. Accidentally putting about them into the wrong fund can fundamentally affect myretirement. Perhaps in 10 years time we’ll be having the debate The real revolution may come in what we term “society mining.”around making financial services that bit harder for consumers This is the concept of aggregating a whole range of datato purchase to force them to think through the consequences! sources, public and private, that will help us understand the customer at an incredibly sophisticated level.What impact are digital peer-to-peer (P2P) payments havingon consumers and the financial services industry? There’s a struggle to balance the interests of companies and consumers with respect to this type of data and privacy, but it’sIt’s absolutely huge. A genuine revolution. Everyone’s heard clear that mining data and gaining new insights could be theof PayPal. In China, everyone has heard of Alipay, which now most important theme of them all. Ultimately, perhaps the onlyhas more transactions than PayPal because of the size of the barrier to a firm knowing anything they could ever wish to knowChinese market. Mobile P2P payments are becoming huge as about every customer they have and may wish to have in thewell. Banks face a stark choice: engage in P2P payments or face future is a combination of data privacy regulation and accessdisintermediation. Many firms are entering the payments value to the right technology. We’re not there yet. Will we get there?chain: Safaricom in Kenya, O2 in the UK, technology firms as Leading this report has made me think we might.illustrated by Google Wallet, for example. This is a value chainbeing broken apart by different players; you can join but youcan’t stop it. Patricia Brown is director of content strategy for CSC’s digital marketing team. SUMMER 2012 | CSC WORLD 13
  • 16. CONNECTED CONSUMER THE WAR FO YOUR DIGI R TAL WALLET by Randy Ba rker Consumers are already using their mobile phones to make in-store purchases, and as the technology evolves, the payment-processing industry will never be the same. The shift from plastic to digital wallets and mobile payments is in full swing. Consumers can walk into Best Buy and not only use their phone to make a purchase, but they can also get information on the hottest deals or compare prices with other stores. Mobile devices are sitting at the intersection of payments, advertising and marketing. Credit card companies, banks, mobile service providers, Internet companies and retailers are all scrambling for a piece of the growing market for payment processing, and the winners will be those who demonstrate technology leadership, provide the best user experience, and give the most business value to merchants. Consumers will choose the winners with their digital wallets — but what’s in it for them? What does the typical consumer really want, and how can companies deliver that?14 CSC WORLD | SUMMER 2012
  • 17. Get to the point (of purchase)Many of the top companies in the United States are attemptingto answer these questions. Financial institutions derive asignificant percentage of their annual revenue from processing Payment-processing powerpayments, but that piece of the pie is quickly shrinking.Banks are being crowded out by emerging competition from With decades of financial services industry experi-nontraditional financial services companies, such as PayPal and ence, CSC has the expertise to help all the playersSquare Inc., both of which offer a small hardware device that in the payment landscape to better compete andcan be attached to a cell phone to read credit cards. provide the services that customers want. We offer a broad range of payment-related solutions, including:The number of nonfinancial companies jumping on the payment-processing bandwagon is growing and includes some of thetop retailers. Wal-Mart and Target are among the large retailers • Electronic Payment Processing Software: CSC’sdeveloping technology that will let customers make purchases financial services offerings include the ePaymentsvia mobile phones. In addition, several U.S. mobile carriers have payment processing gateway; the CAMS II Card &created their own mobile wallet technology, Isis, a joint venture Merchant System, the industry’s leading in-houseof Verizon Wireless, AT&T Mobility and T-Mobile USA. cards management system; and Celeriti, our end-to- end suite of enterprise software for global banking,To see who wins the early battles in the payment-processing cards, payments and lending. Learn more atwar, also keep a close eye on the big four companies that have as “consumer darlings”: Apple, Google, Facebook andAmazon. Consumers keep flocking to these brands because • Mobility Solutions: CSC’s mobility portfolio is athey are familiar, and in many cases, their products and services complete and modular system, tailoring solutionshave become interwoven with everyday life. to meet the unique needs of different industries.Apple’s massive popularity with consumers may indicate how Learn more at will choose payment-processor winners. Consumers simplyprefer the sleek design and ease of use of Apple products. In • Cloud Services: We offer a wide array of publicthe case of mobile phones and tablets, user experience trumps and private cloud solutions, such as CloudComputeprice, and Apple has won. Not surprisingly, Apple has publicly and BizCloud. Our Trusted Cloud Services providestated that it will eventually transform its iTunes ecosystem into customers with secure tools and infrastructure.a platform for payment processing. Learn more at do you trust? • FuturEdge: CSC’s application portfolio managementWith all the jockeying for market share, it will be the consumers service helps companies modernize their systems forwho decide the winners — with their wallets. Or their digital improved efficiency. Learn more atwallets, that is. a consumer goes about making a purchase, threequestions come to mind: Whom do you trust the most? Whom are you most comfortable sharing information with? And finally, Learn more about CSC’s services atwho is going to blend the advertising world and the payments most successfully?The companies that win will be the companies that addressthese consumer questions and provide the easiest and mostsecure experience for people who walk into a store to make apurchase by using a mobile phone. The best news for many is that the ultimate winners could be the consumers themselves. Increased competition will driveSecurity is of paramount importance. Consumers demand the down processing fees, and the wider playing field will givemost stringent security possible for their credit card purchases, consumers a better selection of financial services and bankingand companies that can deliver relatively secure solutions offerings to choose from. Still, when it comes to credit cardand can also address concerns about potential fraud will set payments, trust and security will be the key factors. May thethemselves apart from those that cannot. best (and most trusted) solution win. RANDY BARKER is director of channel solutions for banking and credit services at CSC. SUMMER 2012 | CSC WORLD 15
  • 18. CONNECTED CONSUMER MOBILE MONEY Can Deposit Great Change in Emerging Markets by Erica Salinas In developed countries, mobile phones are just another way to access traditional banking services, but in developing nations, the effect of “mobile money” on financial services is already monumental. When the Internet came along, banks in developed countries rushed to provide online banking services. This changed the customer interface and moved services out of the bank branch. Today, mobile phone users pull up an app on their phone rather than on their computer screen. But under it all, the services and the customers have remained essentially the same. Contrast that with developing countries, where mobile phones are bringing financial services to billions of consumers who had previously been completely excluded from the formal financial sector. Many refer to this group of people as the unbanked. The more astute identify them as potential clients: They are the billions of potential clients who need and want financial services and are ready and able to pay for them.16 CSC WORLD | SUMMER 2012
  • 19. The push for mobile money leveraging the mobile channel as well. Financial institutionsMobile money services in developing countries are primarily tar- began offering formal financial services, such as credit, savingsgeted at the unbanked. It is estimated that 2 billion people have and insurance, to newly accessible geographic areas anda mobile phone but do not have a bank account. This means consumer groups.that over half of the world’s unbanked can be accessed througha basic cell phone. With this unprecedented level of access, the While microfinance institutions already serving the unbankedpush for mobile money continues to increase for both social are familiar with the unique needs of the poor, larger financialand profit motives. institutions still struggle to design products for this new client base. Microfinance products are not simply standard financial productsFinancial inclusion is a priority in emerging markets. It has been sold in smaller amounts. Success in this market requires newshown to alleviate poverty, increase social justice and improve qual- products lines designed specifically for those with small incomes.ity of life. Increased financial inclusion also contributes to the eco-nomic growth and stability of an emerging market. Consequently, A future mobile money ecosystemthe potential for mobile phones to overcome so many barriers in The mobile money market is spreading quickly across theserving the unbanked has created great excitement. developing world, particularly in Africa. In 15 African countries, more than 10% of adults used mobile money in 2011. Globally,Many developing countries lack the physical infrastructure there are 137 live mobile money deployments, with 95 mobilerequired to offer financial services, such as roads, bridges and money services in the planning stages.electricity. These issues make it cost-prohibitive for banks toset up branches in rural areas. Mobile phones enable banks to But the current mobile money ecosystem is siloed. Each mobileovercome these physical barriers. money service stands alone, with minimal interconnection to other services or to an international payment service.Even for banks willing to serve the unbanked, the fees necessaryto cover the associated costs of serving them — particularly Despite its shortcomings, the current mobile money ecosystempeople in rural areas — tend to be prohibitively high for the is maturing at a rapid rate. While others started the movement,target consumer. Variable costs for financial services tend to be it is now time for companies with years of IT, financial andbased on number of transactions and not number of customers. mobile expertise to start playing a more significant role. TheThis is particular troublesome for those living on a low income, initial obvious players, MNOs and financial institutions, arewho tend to perform frequent, low-value transactions. being joined by others, such as cell phone manufacturers, platform providers, service integrators and internationalMobile money systems allow financial services to be provided payment providers. Each of these players is key to developingwith low overhead and therefore at reasonable rates. Such and expanding the mobile money value chain, and leaders aresystems also charge customers a fee per transaction, which emerging with the expertise, reputation and market powerallows consumers to weigh the costs against the benefits of necessary to shape the market.frequent transactions and to determine their own personaloptimal number of transactions. Whether a mobile money system is led solely by an MNO or through open partnerships, mobile money will always require aMobile money and microfinance strong multiplayer ecosystem. However, for the mobile moneyFor mobile money to be sustainable in the long term, it must market to maintain and expand its value proposition, thesebe profitable. It is estimated that up to 364 million low-income players will need to develop an open, interoperable ecosystemindividuals will be utilizing mobile money by the end of 2012, based on a scalable, agile and cost-effective platform.which would generate $7.8 billion in revenue. In Kenya, theM-PESA mobile money service is the success case most often The future structure of the mobile money ecosystem is yet toreferenced when discussing profitability. Offered by Safaricom, be determined. However, the potential for a unified ecosystemthe country’s largest mobile network operator, M-PESA’s gross is already coming to fruition. Western Union has numerousrevenues amounted to $157 million in 2010, up 56% from the partnerships established with international mobile networkprevious year. operators. Visa and MasterCard are already developing and supporting multiple mobile money services. As linkages withM-PESA accounts for 13.3% of Safaricom’s total revenue and international payment networks transform national mobileis a significant part of its operations. However, this level of money systems into a unified international mobile moneyprofitability is thus far unique. The mobile money market ecosystem, the life-changing benefits of mobile money willis still very young, so while the potential exists, the level of truly be realized.profitability predicted is still to be achieved.When mobile money services were first offered by mobilenetwork operators (MNO), they consisted of money transfer ERICA SALINAS is a strategy consultant in CSC’s Federaland payment systems. Then financial institutions soon began Consulting Practice, North American Public Sector. SUMMER 2012 | CSC WORLD 17
  • 20. CONNECTED CONSUMER The Constantly A dramatic change is sweeping across the retail landscape. Connected Customers are adding smartphones and mobile devices to their shopping experience in your stores without your blessing. Your customers are using their own tools and apps to gather Customer information about products, brands, pricing and availability — and this could be sending sales to your competition. This change is more seismic than e-commerce. It introduces real-time digital interaction to the shopping experience. by John Gentry Customers like it. They feel in control. Yet, they have a set of expectations that go with it — expectations you need to meet. They are the Constantly Connected Customers, and right now they are unilaterally changing your relationship with them. Customer power Today’s Constantly Connected Customers are equipped with smartphones, tablets and other mobile devices. They engage with Twitter, Facebook and other social networks. And they can quickly and easily comment online — and read the comments of others — about their favorite (and not-so- favorite) retail brands. At stake is nothing less than control of the retailer-customer relationship. In the past, retailers held most of the cards, primarily controlling their relationship with the customer. Now, control of the relationship is quickly moving to the Constantly Connected Customer empowered by all of this technology. For most of our history, customers engaged with retailers through one or two channels: the brick-and-mortar retail store and the catalog. Over the past 15 years, retailers have expanded to four channels by adding online and mobile channels. Retailers have typically operated each of these channels separately, and this approach met customers’ needs for a while.18 CSC WORLD | SUMMER 2012
  • 21. But times are changing. Today, when Constantly Connected Retail Enterprise IntelligenceCustomers enter a brick-and-mortar store, the retailer does notnecessarily recognize them or the extent of their relationship In the evolution of Web 1.0 to 2.0, those who began earlywith the retailer across all of its channels. Now a new challenge and learned about what works for their businesses andfaces retailers: Offer a cross-channel view to customers, their stores gained market advantage. Companies thatone that integrates mobile, online and the brick-and-mortar embraced e-commerce are already ahead, and many havechannels into a complete, consistent and seamless shopping transformed processes and policies to enable profitableexperience that increases sales. growth. No one can specify what the final digital shopping experience will be, but it is sure that those who are notIn social media and on your own e-commerce site, Constantly experimenting and developing it now will miss a significantConnected Customers can now gather information to make business opportunity.purchase decisions regarding a brand without the brand’sinvolvement — a new and unprecedented situation. CSC is ready to help those retailers that see the opportunity. We can help you “get mobile” with industrial-For example, a customer could shop for a brand from his or grade, secure mobile apps to interact with your customers.her smartphone using nothing more sophisticated than a basic CSC can integrate that new “digital” location with theWeb browser and common search engine. What’s more, the enterprise systems that feed it data, and operationalsearch results will likely be displayed without any of the brand’s systems that fulfill, ship and bill the order.carefully crafted messaging. Our Enterprise Intelligence for Retail solution providesCashing in the business intelligence tools you need to make sure thatRetailers that cater successfully to the Constantly Connected your plans are working: if products are moving, if sales areCustomer will reap significant competitive advantage. For one, up, and if service levels are honored. In short, if you areConstantly Connected Customers purchase more than their ready to embrace the value of the Constantly Connectedless-wired counterparts. It’s all about basket size and lift — and Customer, CSC stands ready to help with proven capability.these customers will respond to better information and relevantpromotions, spending more. Additionally, these customers Learn more at more strongly with their favored brands, translatinginto greater revenue over time.In a new IDC Retail Insights case study1, UK department storeretailer John Lewis is reportedly reaping the benefits of cateringto multi-channel shoppers. Among the findings: Over 60% of Connected Customers expect personalized treatment,their customers research online before going to the store, and advantageous promotional pricing, more product and service40% use their phones to interact with the brand when in the information, and the ability to purchase online yet pick upstore. Plus, the study says these multi-channel shoppers spend and return at the store. Simply put, they want the ability to3.5 times more. buy anywhere, anytime and have it fulfilled anywhere — at competitive prices.Moreover, these customers create streams of digital informationabout how they browse the Web — and because of location- Constantly Connected Customers also share their unfiltered,aware smartphones — how they browse the store and the very sometimes negative, opinions of retail brands and stores. Andshopping mall that contains that store. Combined with point-of- thanks to social media, they can share these views quickly andsale (POS) data, smart retailers can use this information to gain to a potentially large worldwide audience. Complaints, whetherinsights, improve operations, forecast demand and even create fair or not, can quickly go viral, dissuading thousands of othernew products. consumers from purchasing a brand. You can’t control this, but you can mitigate it with active awareness of comments aboutFinally, Constantly Connected Customers provide more your than do other customers, essentially acting as avirtual focus group that provides an ongoing stream of quick On the upside, this same awareness can spot good commentsreactions and suggestions. about your products or brand that create new opportunity for your business. Good or bad, it’s there, and there is a gold mineHigher expectations of value in the information.The emergence of the Constantly Connected Customer also 1, analyst Christine Bardwell, John Lewis: Multichannelpresents retailers with several challenges. Connected Customers shoppers spend 3.5 times more, May 17, 2012.expect more from retailers. There is more to it than offering amobile version of your e-commerce site. Certainly this is a goodplace to get started, but as soon as you do it, your customers JOHN GENTRY is managing director of CSC’s Global Consumermove up the expectation curve. Products and Retail Group. SUMMER 2012 | CSC WORLD 19
  • 22. Social Media Should Healthcare Organizations Use Social Media? by Jared Rhoads Social media has revolutionized the way people interact, and it is drastically changing the way healthcare organizations communicate with customers and accomplish their business objectives. On average, global consumers spend nearly a quarter of their online time using social media sites. One out of every seven minutes spent online is on Facebook, according to the research firm comScore. Leveraging the popularity of these and other sites can be advantageous for healthcare organizations. In our recent report, “Should Healthcare Organizations Use Social Media — a Global Update,” CSC’s Global Institute for Emerging Healthcare Practices describes best practices shared by early adopters around the world. The report shows that healthcare organizations are already taking advantage of social media to accomplish a number of strategic goals related to marketing, information sharing, engaging patients and encouraging innovation.20 CSC WORLD | SUMMER 2012
  • 23. External communications Belgium-based biopharmaceutical company UCB is one organiza-Social media can supplement an organization’s overall commu- tion that uses aggregated, de-identified patient data from thesenication and marketing strategy. For instance, by maintaining sites (with patients’ permission) to look for new product ideas.a presence on Facebook, Twitter and YouTube, German drugmaker Boehringer Ingelheim shares news, promotes events and The experiences of early adopters demonstrate that socialpublic awareness campaigns, and presents the company to a media can be a valuable tool. Healthcare organizations thatglobal audience. have not yet started to use social media should take the leap; if they wait, they may find themselves playing catch-up toMany hospitals have also launched Facebook pages to promote their competitors.their facilities. Some also use social media to facilitate patientengagement and care management, and to gain early feedback Our recommendationswith regard to products in development. Organizations should develop an overall strategy that uses social media to help influence customers and accomplish strategicFacebook and Twitter have fostered the development of several healthcare goals. As healthcare organizations consider what toonline health communities. In addition, a number of health-specif- do with and about social media, we offer the following advice:ic sites have been created to encourage information sharing and,especially, to provide a context for giving and getting support. 1. Don’t take a “wait-and-see approach.” Although some believe social media is a passing fad, we believe it is herePatient interactions to stay, and the sooner your organization develops anPhysician-patient interaction on social media sites is a less com- active presence, the less distance you will have to makemon but growing phenomenon, as more patients are initiating up with their physicians through social media than ever 2. Establish a social media policy. At a minimum, this willbefore. Through patient networking sites such as PatientsLikeMe help protect against security, privacy or ethics breachesin the United States and HealthUnlocked in the United Kingdom, by your employees or customers. You should also offerpatients and caregivers are forming communities of people with staff education. Training and outreach are necessary tolike conditions, creating profiles to document details of their ensure that your staff fully understands and is able tohealth condition, sharing advice on treatments and providing carry out the policy.motivational support. 3. Follow your customers. Listen to what others are say- ing about your organization, your product(s) and yourEarly reports indicate that participation in online communities brand(s). Monitor the social media activities of others incan help educate and engage patients as well as encourage your market, and use social media to listen to what othershealthy behaviors. For this reason, a number of groups are saying about your competition.encourage patients to participate in such interactions. Some 4. Consider starting where many organizations start. Useproviders, such as Raboud University Nijmegen Medical Centre social media to enhance marketing, branding, recruitment,in the Netherlands and the Mayo Clinic in the United States, reputation management, customer relations and customerhave launched their own online communities to promote service. However, educate yourself first on what is allow-patient interaction. able under existing laws in your country. 5. Start small and monitor outcomes. You don’t have toSome groups leverage online communities to connect patients develop a full-blown social media strategy now, butand providers, and to aid in care-management activities. How Are eventually you will need one. Ask yourself what yourYou, a website launched by the National Health Service (NHS) organization should be doing now to anticipate a widerMidlands East and Cambridge Healthcare, connects patients with use of social media to help accomplish key healthcare goals.their network of formal and informal (family) caregivers. 6. Recruit social media managers internally. Distribute responsibilities among staff that know your organization,The site prompts patients to enter periodic status updates are Internet-savvy and are excited about using socialabout how they are feeling, which are communicated to media to benefit your organization. Keep social mediatheir followers. Tracking patient updates on the site helps content accurate and current.providers and loved ones monitor a patient’s well-being andrecognize when an individual may need medical assistance or earn more at Ladditional encouragement.Product developmentPatient communities can also help companies develop the nextgeneration of prescription drugs and medical devices. Conver-sations on patient networking sites provide insight into diseaseprogression, how medications and devices are used, their JARED RHOADS is a senior research analyst in CSC’s Globaleffectiveness, their side effects and unmet patient needs. Institute for Emerging Healthcare Practices. SUMMER 2012 | CSC WORLD 21
  • 24. Social Media Social Business The Next Big Step by Mark Walton-Hayfield22 CSC WORLD | SUMMER 2012
  • 25. Add social customer relationship management (CRM) to create value with each other. If you can design products andEnterprise 2.0, and you get something truly transformational: services that answer the “What’s in it for me?” question andsocial business. keep everyone in that simple but diverse ecosystem happy, your chances of success are much higher.Social CRM encapsulates a business strategy and approachfor serving customers in a more personalized way. Ultimately, Getting startedthis personalized approach, using social media, makes it much Businesses have a long way to go. While 52 percent of marketerseasier and less frustrating for customers to consume goods and reported to CMO and Lithium that they believe their brandsservices from suppliers. have enjoyed greater influence thanks to their presence in social networks, only 17 percent said that social media is fully meshed,The corresponding phenomenon inside an organization is aligned and integrated into the overall marketing mix.Enterprise 2.0. This business strategy enables true collaboration,participation and engagement among employees in an The single biggest barrier to successfulenterprise and sometimes suppliers to the enterprise as well. social business projects is the subject of change itself: business change, cultureDespite their differences, these two worlds are closelyintertwined. It is time for businesses to take the next step — to change, organizational change and changesbecome social, inside and out. to the products and services offered by businesses to customers.Last year, the CMO Council shed some light on the value of be-ing social, in a survey run in partnership with Lithium, a social “There are significant concerns regarding an organization’scustomer solutions provider. In “Variance in the Social Brand capacity to engage customers in social media as resourceExperience,” they surveyed more than 1,300 consumers and 132 requirements and availability was the top concern (67 percent)senior marketers. Not surprisingly, 80% of the marketers sur- voiced by marketers,” the report states. “The ability—or moreveyed reported moving social media up their priority list in the specifically the inability—to quantify and measure the effective-past 12 months, citing its opportunity to directly engage with ness of engagement is also a concern for 49 percent of marketers,consumers and the belief that social media can enhance brand while 43 percent believe these initiatives require expertise thatinfluence online. they do not have.”Creating value networks Further, the survey found that marketers are struggling to fullyTo be successful, social business has to be about making trans- integrate social media into their multi-channel strategies. In fact,formational business change happen in the enterprise as well. 34 percent say they have not developed fully integrated strate-In the past, projects for the delivery of Enterprise 2.0 and Social gies for social media, while another 23 percent say they areCRM were often built on buzzwords and flaky business benefits. developing social media strategies, but execution is a struggle.Initiatives focused on something perceived to be “cool” andthe technology required to deliver it, rather than the business Closing the gapschange required to make a difference. The overlap at the intersection of Enterprise 2.0 and social CRM is social business. It is a much larger and broader effortThe single biggest barrier to successful social business projects to tackle, but it is necessary to do so to achieve buy-in from allis the subject of change itself: business change, culture change, involved and deliver real change and benefit from investmentsorganizational change and changes to the products and ser- in people, process and technology in this area.vices offered by businesses to customers. The courtship between social CRM and Enterprise 2.0 is heatingToday, we know to take these factors into account. We know up and will continue to blossom. Product vendors willto apply tried and tested methods and processes to span the continue to build their software suites through developmentinterconnected networks of customers, partners and employees, and/or acquisition. However, ultimately, the ability to executebringing them together in collaborative value networks. social business as “business as usual” will increase.These networks will provide a shared workplace to co-create I know we will have been successful when the “social” monikerproducts and services while addressing the simplest question is dropped and the principles underpinning social businessfrom all stakeholders: “What’s in it for me?” become just another part of the fabric of everyday business. Organizations seeking to obtain value for money from theirIf you are trying to persuade people to do something, they need investments in social business will most likely do so by deliveringto understand the reason they should do it. It is even better if a social business portfolio that connects and drives commonalitythat reason aligns with their core values and beliefs. Therefore, across employee, partner and customer networks.a combination of excellent service design and social businessis essential for linking the physical and virtual networks that MARK WALTON-HAYFIELD is a principal social businessconnect employees, partners and customers, enabling them to strategist at CSC. SUMMER 2012 | CSC WORLD 23
  • 26. CLIMATE DATA CLIMATE ECONOMY Why Weather Means Business by Jenny Mangelsdorf For biologists, the year 2000 is remembered for the unveiling of director for science in the White House’s Office of Science and the human genome. For climate scientists, the start of the new Technology Policy. “Even if you don’t want to think about why millennium was famous for another reason ­ that is, until recently. — they’re changing, you have to at least be asking how your business might be affected.” The streak from November 1999 to October 2000 is no longer the hottest 12-month period on record, according to the U.S. CSC supports climate research and helps manage some of the National Oceanic and Atmospheric Administration (NOAA). The world’s largest climate and weather data collection and storage recent mild winter and warm spring in the U.S. were a pleasant systems. To help organizations whose operations rely on or are surprise for some, but they were also historic. May 2011 to April affected by the weather, CSC launched ClimatEdgeTM, an online 2012 were the warmest 12 months ever recorded (since 1895) in reporting service providing previously untapped earth observa- the U.S., edging out the previous milestone by 0.1°F and beating tion data gathered by the U.S. government coupled with finan- the 20th century average by 2.8°F. cial analysis and scientific insight — delivering more accurate intelligence for better informed decisions. But it isn’t only weather in the U.S. making headlines in 2012. In March, Scotland felt its warmest temperature ever recorded; “Climate change can also represent opportunity,” says Dan Victoria, Australia, broke monthly rainfall records in one day, and Walker, CSC’s chief climate scientist. For example, exploiting Norway had its warmest March since national records began knowledge of how emerging climatic conditions may favor in 1900. With extreme weather becoming more commonplace, certain crops could maximize production even in the face of what used to be the province of the scientific community is change. “People are thinking about how to adapt to change,” increasingly moving mainstream, as public and private sectors adds Walker, “but what they always stub their toe on is how do search for better climate insights and techniques to mitigate they spend their resources most wisely?” risk, limit disruptions and adapt. The finances of weather Adapting to change The financial community certainly thinks about the subject, as “Whatever the cause, climate and weather patterns have evidenced by the U.S. Securities and Exchange Commission’s fundamentally changed,” says Sharon Hays, vice president of (SEC) issuance of the world’s first economy-wide climate risk CSC’s Office of Science and Engineering and former deputy disclosure requirement. In the SEC’s interpretive guidance,24 CSC WORLD | SUMMER 2012
  • 27. it directs companies to evaluate for disclosure purposes the particularly over long time scales, and what actions we canactual and potential material impacts of environmental implement now that make us more resilient 10, 20 or 50 yearsmatters on their business. down the road.”NOAA’s Comprehensive Large Array-data Stewardship System, To help water utilities assess local climate threats anda secure and evolutionary environmental data storage and incorporate critical infrastructure needs associated with climatedistribution system that CSC helps maintain, has seen an change into long-term capital planning strategies, a CSC teamincrease in inquiries for weather data, with property and casualty developed a climate resilience evaluation and awareness toolinsurers, reinsurers and catastrophe modelers being among the (CREAT) in support of the U.S. Environmental Protection Agency.familiar groups of requesters. Commodities traders, in their ownright, keep a close eye on this information as well. “This climate data-driven, adaptation decision support tool, which has been piloted at some of the nation’s largest water“Any perturbation in the climate has ripple effects on everything utilities, will save both water and wastewater utilities — and theirfrom grain and cocoa prices all the way through to meat and public rate-payers — hundreds of millions of dollars in avoideddairy. These industries are feeling the change in climate more infrastructure impacts due to emerging risks,” says Shalinideeply than the rest,” says Guy Turner, director of commodity Jayasundera, CSC program management principal research at Bloomberg New Energy Finance, noting thepower markets’ sensitivity to weather, too. “Businesses Climate risks also affect other global issues, such as food secu-that depend on or are highly sensitive to the weather are rity, biodiversity and pollution. CSC and ORNL, which is the U.S.having to look at those risks and put plans in place to mitigate Department of Energy’s largest science and energy laboratory,the potential impact.” have agreed to collaborate on solutions to help customers address potential effects of climate change. One key challengeCSC supports many organizations’ interest in the climate is the sheer quantity of the data.through its suite of ClimatEdge reports, which are availabledirectly or through services such as Bloomberg Professional, a “When you’re talking about 100 terabytes of data, that’s orderssoftware platform that provides real-time and historical data, of magnitude beyond what many people out there in the userand market-focused news and analytics. Commodities traders community can use or need to use,” Preston says. “Then theand risk managers looking at energy and agriculture, for question is how we synthesize those data streams in order toexample, can leverage the reports when making purchasing get at key bits of information. That’s where folks like CSC, whodecisions and managing risk through financial futures and options. are quite comfortable working with large data streams, can play a helpful part.”The reports provide insight into potential market risk by apply-ing advanced analytics and aggregating satellite and earth-basedobservation data to create sector-specific knowledge, indices Advanced Analytics for Climate Data Miningand maps. They allow users to identify potential weatherand climate risks several months into the future, supporting CSC ClimatEdgeTM is a suite of reports that use data fromdecisions on investments with a 30- to 60-day horizon. NASA, NOAA and other sources to help commodity trad- ers, financial analysts and infrastructure managers make“Most of the weather industry has a short-term focus,” says better decisions. ClimatEdge applies advanced analyt-Michael Ferrari, CSC Climate Informatics director and senior ics to satellite, modeling and Earth observation data toscientist. “By tapping into this data and applying new techniques enhance business insights and knowledge needed toand methods, we can help our clients identify weather risks manage climate-related risk and exposure.over a longer time frame than other industry analysis offers.” ClimatEdge was previously exclusive to users of theImpact on infrastructure Bloomberg Professional® service, but is now available toWhile many sectors keep a semi-annual or seasonal focus any customers by subscription. ClimatEdge examines cli-on the weather, others consider a decade a short run. Those mate and weather events several months into the future,involved in infrastructure typically factor the climate, as op- supporting decisions on investments with a 30- to 60-posed to weather, into their calculations, and the potential for day horizon. By mining “Big Data” sources, the reportsvariability in future patterns has them looking for better data uncover unique relationships and create predictive indi-and knowledge. ces that provide additional insight into market behavior.“There’s been a lot of discussion around climate change for Learn more at some time, but traditionally that’s been around energyefficiency and greenhouse gas mitigation,” says Ben Preston,deputy director of the Oak Ridge National Laboratory’s (ORNL)Climate Change Science Institute. “What’s more recent is thethinking about climate adaptation and risk management, JENNY MANGELSDORF is a writer for CSC’s digital marketing team. SUMMER 2012 | CSC WORLD 25
  • 28. CLIMATE DATA Finding Big Fish in BIG DATA by Jenny Mangelsdorf Off Florida’s Gulf Coast, scientists are diving into a sea of data. They’re tracking tiny Atlantic bluefin tuna larvae, and their Challenge: parents, to better protect and monitor the environmentally • Capture and process satellite-generated delicate and highly migratory fish. data reliably • Archive hundreds of millions of environmental To help locate the fish, which can grow to more than 1,500 observations pounds, researchers turn to Mitchell A. Roffer, president of Roffer’s • Process increasing requests for environmental Ocean Fishing Forecasting Service. He taps the systems that and climate data capture the world’s climate and weather data, including the U.S. National Oceanic and Atmospheric Administration’s Solution: Comprehensive Large Array-data Stewardship System, or CLASS. • Unique mirroring architecture that ensures big data reliability With CLASS, which has ocean and weather data ranging • Infrastructure and network capabilities that from temperatures and currents to sea color, Roffer can better support NOAA researchers and forecast where bluefin are spawning, oil spills are spreading more than 500 external users and ships should be moving. • Big data systems engineering, integration and testing, and operations “CLASS is a valuable system, providing data that helps us better understand the effects of environmental conditions,” Results: Roffer says. As a forecaster and researcher supporting NASA, • Creation of the premier online facility for the NOAA, fishing, and oil-and-gas industry research projects, distribution of NOAA and U.S. Department Roffer has accessed this data for decades. of Defense environmental satellite data • Efficient management of a dynamic system Storing a world of data that grows more than five terabytes a day CSC works with NOAA’s data, too. First supporting the • Accessible global weather and climate data predecessor to CLASS, CSC helped develop CLASS and now helps ensure that the system, which acts as an extremely big, interactive electronic library, can process and store satellite data and respond to requests from users such as Roffer. Some users, especially those focused on climate research, want to dig into the past. The CLASS team continually works to ensure that the system’s archive, which includes hundreds of millions of environmental observations dating back to the mid-1970s, is available and will last into the next century. “Just as today’s scientists and researchers revisit historical weather data and run new models, future generations will want to run models on this era’s weather, a great deal of which is on CLASS,” says Kern Witcher, NOAA CLASS project manager. As the CLASS team members work to ensure the data’s longevity, they also strive to improve the system’s performance. “A big challenge is throughput,” Witcher says. “We’re getting to a point where in the next decade we’ll be ingesting 35 terabytes of data a day.”26 CSC WORLD | SUMMER 2012
  • 29. CLASS receives data generated by numerous geostationary and The requests are diverse, the data demands are substantial, andpolar-orbiting satellites. One in particular, launched last October, the data is irreplaceable. To meet these challenges, CSC helpedrequired NOAA to supercharge the ability of CLASS to manage NOAA create an innovative architecture that would better pro-the increased amounts of data it would be receiving. tect and manage the CLASS data. As part of the architecture, they built two mirroring systems, located in two different U.S.Now circling the Earth every 102 minutes, the Suomi National states that simultaneously receive and store CLASS data.Polar-orbiting Partnership (NPP) satellite collects data at aresolution of 25 meters per pixel, providing a fourfold improvement “Everyone copies their data, but not at this level,” Cremidis quality over older instruments. With those instruments, CLASS “We keep the two systems online and available at all times.”was capturing about 300 gigabytes of data a day. When SuomiNPP went live, CLASS added five terabytes to its daily diet. “The system has become almost like a living organism,” Witcher adds. “We have so many things happening with it. It’s always“That first day was like a rollercoaster — it started very slowly evolving, moving, shifting and dynamically changing.”and then went extremely fast,” recalls Constantino Cremidis, CSCCLASS project manager. “At the beginning, it was quite a ride.” Change for every part of the CLASS system seems a constant. CSC supported the system’s predecessor at a time when fewProtecting data integrity used the Internet. Today the CLASS team is exploring how it canBesides helping CLASS store and manage its data, another improve its use of social media to better meet user needs, whilegoal is making the CLASS data easily accessible to the public. preparing for the next jump in data.“Of course, when a user wants months of data and there aremulti-terabytes of data a day, this is a difficult challenge tomeet,” Cremidis says.About 500 users and organizations around the world tapCLASS for climate science and research, or for data for thefinancial, agricultural and oceanographic industries. JENNY MANGELSDORF is a writer for CSC’s digital marketing team. SUMMER 2012 | CSC WORLD 27
  • 30. Biometrics Say Goodbye to Mobile Passwords by Dale Coyner The rapid advance of Web and mobile applications has ushered because the lines that form a pattern in your palm are unique, in a new era of productivity and convenience, with one notable just like fingerprints.” exception: Accessing anything online still means directing a blank stare to the prompt on your smartphone or tablet and Stealing your face wondering, “What was that password again?” Biometric authentication schemes like these may be convenient and accurate, but would you trust a picture of your face or Passwords are routinely forgotten, guessed or stolen — yet your hand to protect your bank account? Hawkins explains that these cryptic snippets remain the first, and often the only, line of biometric markers are often used in combination, a technique defense protecting your digital domain from marauding packs referred to as multifactor authentication. of bots and hackers. “Someone can easily get your picture or a recording of your Passwords remain a popular security device simply because voice, or even a fingerprint or DNA,” Hawkins says. “You leave they are easy and inexpensive to implement. But now, thanks to those traces everywhere. So, systems that use biometrics for new tools and technologies, the last days of forgettable letters authentication won’t rely on those factors alone. That’s where and numbers may be in sight. ‘liveness’ comes into play.” Alternatives evolve Liveness refers to the ability to discern the difference between The co-evolution of online services and mobile devices is driv- individuals based on the smallest aspects of facial expression, a ing more demand for fast, easy and affordable authentication. tilt of the head or the blink of an eye. The same is true for your Those same devices, packed with processing power and instant voice. “Taken together — face, voice and palm images, plus face connectivity, are providing the platform needed to make new and voice liveness — that gives us five factors of authentication. methods possible. And that can be used to verify your claim of identity beyond the shadow of a doubt,” Hawkins says. Steve Hooks, director of the CSC Identity Labs, says biometric authentication, using unique physical attributes to verify your Christiansen agrees. “Many individual forms of authentication identity, is a plausible successor. “Twenty years ago, biometric are relatively weak,” he says. “On an individual basis, face, voice applications were used primarily in law enforcement, matching and finger biometrics can be compromised, or your device might fingerprints. The war effort in the early 2000s accelerated de- have a hard time reconciling them against one another and velopment and brought biometrics to the battlefield. Now those existing accounts and associated passwords. Combining several results are filtering into the private sector,” Hooks says. biometrics, however, can provide much stronger authentication.” IDC analyst Chris Christiansen says familiar methods such as hand Expect more scanners are used to secure physical facilities, but applications are While most biometric solutions are making do with the hard- limited by hardware that is fixed in place. Considering today’s ware in today’s devices, new hardware will soon be added that mobile computing trends, lugging such a scanner with you just make possible more forms of authentication — for example, isn’t realistic. “Biometric authentication won’t achieve broad cameras sensitive enough to distinguish an identity by the adoption in mobile devices unless it’s almost transparent to the user’s iris. Formerly, these customized solutions needed to be user, and the capabilities have to be built into the device,” he says. purchased separately and high costs limited deployment to high-security physical security solutions. Todd Hawkins, director of identity management business initiatives at CSC, says today’s smartphone has the capability to Hooks says iris scanning has an advantage over face matching overcome the limitations and make emerging forms of authen- because it is more precise and not subject to the effects of tication practical. “Without adding extra equipment or expense, aging. “You could have a picture taken for a bank account when we can use your smart device for face recognition and voice you’re 18, but by the time you’re 38, your face has probably recognition,” Hawkins says. “We can also use your palm image changed. That doesn’t happen with the iris.”28 CSC WORLD | SUMMER 2012
  • 31. The Many Faces of Biometrics Dozens of different types of biometric authentication methods exist and are often used in combination. Some are restricted to physical locations, while others are well suited to mobile applications. Type of Biometric Status Applications Fingerprints One of the first biometrics, now in widespread use; fingerprint Law enforcement, physical access, computer access must be clean and clear Face/voice No special hardware, reasonably accurate; combined with liveness Coming to smart devices for mobile authentication recognition for important uses Liveness Used with face and voice recognition to enhance accuracy and Will follow face/voice recognition to mobile defeat spoofing attempts Hand geometry Measures dimensions of hand compared with past image; Largely confined to physical access applications accurate but bulky Vascular Infrared light illuminates finger to compare blood vessel structure; Mass public use applications such as ATM access skin integrity not an issue Iris Uses a special camera to take an image of the iris for comparison Expected to be built into smart devices for mobile use Keystroke A continuous form of authentication designed to identify a user In development; may help covertly identify targets in dynamics based on typing style and habits the fieldChristiansen says the future is coming to Apple’s app store, Hawkins does see a time in the very near future that applicationswhere users will be able to purchase biometric authentication running on your smart device will allow you to smile for the cameraapps for add-on security. “Finger, face, and voice aside, some of and enter your online accounts with ease and complete security.the forms that may become available will seem strange to us. Forexample, I’ve heard discussion of an app that uses the iPhone’s And those pesky passwords? “The time has come now thataccelerometer to authenticate the user by gait or the way you walk.” smart devices have advanced to the level that they can fuse together these multimodel different methods for authenticationOne system designed to use multiple forms of authentication and that’s more secure,” Hawkins says. “Passwords have served usother data points is being developed by CSC. (See sidebar below.) for hundreds of years. I think it’s time to retire them.”ConfidentIDTM creates a safe transaction environment for mobilesystems. While biometrics are an important part, ConfidentIDadds other elements, including rule checking, your physicallocation and other features to create a more secure system. Dale Coyner is a writer for CSC’s digital marketing team.Confidence in Motion CSC recently teamed with identity authentication specialist It authenticates both individuals and their transactions and Daon to launch a biometric service for banks. helps organizations meet stringent requirements, including those prescribed by the Federal Financial Institutions The service is called ConfidentIDTM Mobile, and it combines Examination Council. This level of authentication is critical passwords and public key infrastructure with optional bio- when authorizing financial transactions, especially transac- metrics factors, such as face recognition, voice recognition tions involving large sums of money. and palm identity. It can even use GPS, cellular triangulation and other data to add location intelligence. When the customer initiates a transaction on the bank’s website or mobile application, such as transferring money The solution, built on Daon’s IdentityX platform, is hard- from one account to another, a request is made to the user ware-independent and supports smartphones and tablet for authentication. ConfidentID Mobile directly informs the computers. It uses the technology already present in mobile service provider of successful authentication on the back devices to perform the authentication, so no external tokens end without further action from the customer. or input devices are necessary. For more information, visit SUMMER 2012 | CSC WORLD 29
  • 32. cloud computing From Pilot to Production Key Questions Emerge as Companies Adopt Cloud Architectures by Dale Coyner Cloud computing is transforming the IT infrastructure of transparency. While the term “cloud” implies resources that are today’s enterprise, helping companies reduce operating costs, available but indistinguishable, it is important to quantify some expand customer relationships, support a mobile workforce and aspects of the cloud. respond to changing business conditions. Transparency means that you know where your data resides, Corporate adoption is growing at a torrid pace. IDC’s study “IT how applications are performing, and that you can compare Cloud Decision Economics” reports spending that reached $21.5 actual performance of your applications to established service- billion in 2010 will grow to $72.9 billion by 2015, a compound level agreements (SLA). Transparency also means you can view annual growth rate of 27.6%1. your current configuration, access rights and controls over change management. Eli Almog, CTO of CSC’s Trusted Cloud and Hosting solutions, says cloud technology is evolving so rapidly, some companies Effective cloud providers have a governance policy to document don’t even know what questions they should be asking. how the company responds to customer requests and concerns. Almog recommends asking a prospective provider to share the Whether your firm is in the planning stages, running pilots or details of this policy. operating a production cloud platform, Almog says there are three areas to consider as the industry evolves and cloud capabilities grow. Managing risk Every IT architecture carries a set of risks, and cloud technologies Taking control are no different. Similarly, the risks inherent in cloud architectures Whether a private, public or hybrid cloud model is adopted, can be managed as successfully as any other approach. Almog explains that the architecture you choose must offer the level and quality of service required by the business. David Tapper, vice president of IDC’s outsourcing marketing research, says risk mitigation begins by having a complete under- “It’s important to set up key performance indicators for each standing of the SLA governing your cloud infrastructure. “Every application you plan to move into the cloud. This includes fac- vendor offers different measures of availability, and it’s really tors such as availability, security, consistency of service, latency, important to realize that not all offer the same recourse. Narrowly change management and control procedures,” Almog says. defined SLAs and limited liability may offer you few options if a Another important and less understood control factor is solution does not perform as well as expected,” Tapper says.30 CSC WORLD | SUMMER 2012
  • 33. Security is a natural concern for many companies, and it has Flexible Cloud Solutionsto be evaluated from different perspectives. Is the physicalenvironment physically secure? Protected by external network CSC offers cloud solutions that help companies reap thethreats? And does the approach being considered offer benefits of cloud computing — increased agility, rapidsufficient protection for data in the event of a physical disaster application deployment, improved business processes andor equipment failure? cost containment — without the complexity associated with building and maintaining a private cloud solution.Not all applications require the same level of security. Almog saysan important part of the process lies in determining which applica- CSC BizCloudTM is the industry’s only on-premise privatetions and data truly merit the highest “mission-critical” designation. cloud billed as a service, offering the advantage ofWith such a list in hand, Almog suggests asking vendors about turning large capital expenditures into a manageablespecific security standards and options. A short checklist might monthly operating expense.include firewalls, intrusion detection, forensics, authentication,encryption, data loss protection and spyware protection. CSC cloud solutions also offer the highest levels of security, coupled with unsurpassed data integrity assurance.Maintaining agility Transparency is an important feature as well. CSC cloudConsidering lessons from past IT adoptions, companies are solutions offer the reporting needed to ensure industrysmart to consider the impact cloud technologies will have on reporting requirements are satisfied and service-leveltheir agility. Will a cloud architecture deliver on the adaptability agreements are met.and flexibility it promises? Learn more at Almog points out, most companies define agility as theability to rapidly respond to changing business requirements.“You maintain agility by selecting a cloud provider you can leanon to make rapid, smooth transitions,” Almog says. “Refactoring,security, disaster recovery, a customized application catalog —getting these and more from your cloud vendor will free your IT Questions CIOs Askdepartment to focus on other important projects and require-ments. When you can trust your cloud provider to do more, you What’s on the mind of CIOs as they evaluate cloud technol-can achieve and sustain your agility.” ogies? A recent IDC study, titled “U.S. Buyer Requirements of Cloud Services,” identified top concerns and questions.Growing expectationsThe benefits of cloud technology are readily apparent, yet • What security, reporting or compliance requirementssmart CIOs recognize that no one technology is a panacea. must a cloud technology support?A proper course of due diligence will ensure your company • What level of transparency is available to assure serviceadopts the right cloud technology for the right reasons. quality is optimal and consistent? • Do we have the talent to build and support a cloud?As you evaluate your options, use your company’s strategic and Do we need outside help?tactical business objectives to drive your cloud requirements. • What fits us best? Public, private or hybrid cloudStay focused on business outcomes. Scrutinize SLAs and make architecture?sure your industry’s catalog of security and regulatory man- • Are controls available to prevent cost overrunsdates are satisfied by the solutions you are considering. associated with usage? • Is the system capable of supporting our mission-criticalCloud technologies offer new levels of performance, savings requirements?and flexibility, but success remains contingent on the same • Will cloud technologies integrate with our applicationsfactors as ever — asking many, many questions. And as more and architectures seamlessly?companies transition to cloud architectures, expectations of • What tools, processes and support does a vendor offerthose three key factors — management control, risk mitigation to ensure a successful transition?and agility — continue to rise.“The expectations and responsibilities for cloud providers arehuge, and will only grow,” Tapper says. “Vendors must really know 1 IDC, IT Cloud Decision Economics: 10 Best Practices for Public IT Cloud Servicehow to run an operation at the level that clouds require. That’s a Selection and Management, doc #229207, July 2011.daunting task, but it’s a requirement.” DALE COYNER is a writer for CSC’s digital marketing team. SUMMER 2012 | CSC WORLD 31
  • 34. cloud computing 5 Questions CIOs Should Ask Before Moving Email to the Cloud by Michael Whalen The modern, far-flung office requires instant and rich communications among workers located around the world. They need access to tools and services on many different types of devices and at all times throughout the global workday. Cloud computing provides a way to give companies that flexibility with their collaboration and email services. Plus, they can trim upfront and ongoing email costs, free up IT resources for strategic initiatives and provide new functionality that makes end users more productive. Users want applications to be available on any device, any- where and anytime with a consistent user experience across devices. Employees want to experience the same ease of use and access to data and applications in their professional lives as they have come to expect in their personal lives. Answering this need using legacy email platforms is simply not feasible. Adding to the end user challenge is a proliferation of separate applications such as Salesforce, Oracle and SAP, as well as social and Web applications like Facebook and WebEx. Today’s employees want a hub of communications that aggregates and integrates multiple applications into the one they use most frequently: email. Unfortunately, many legacy email applications are practically impossible to extend to third-party applications to meet the needs of the business and make life easier for end users. Another challenge is the IT support cost to manage and admin- ister legacy email platforms and provide the level of availability expected and required for any organization’s email engine.32 CSC WORLD | SUMMER 2012
  • 35. An emerging answer Next-Gen Email and CollaborationTo meet today’s business needs and improve operational ef-ficiency, many organizations are moving to an IT-as-a-Service CSC CloudMail for VMware Zimbra offers Zimbra’s innova-delivery model. IT as a Service allows a company to shift from tive email, files, calendar and collaboration platform. Zimbraproducing IT services to optimizing production and consumption enhances productivity by connecting people, applicationsof those services in ways consistent with business requirements. and data on any device with an open, scalable platform that integrates easily with third-party platforms. Zimbra includesEmail is one of the applications that organizations are mov- virtualization and portability across private and public to this new model, because they want to reduce costs andmake their messaging systems available to a growing mobile CSC delivers the VMware Zimbra platform as a fullyand flexible workforce requiring anytime, anywhere access to managed service, with the reliability and securitymail and documents. enterprises require. CloudMail for VMware Zimbra provides end-to-end application management backed by availabilityOrganizations need an IT-as-a-Service approach for their SLAs. It can be deployed from our CSC Trusted Cloud datamessaging platform that offers built-in security and reliability centers or on your premises, with both deployment optionsand reduces administrative support burdens. Companies are offered at as-a-service pricing.selecting cloud solutions that make it simple for administratorsto manage service levels, perform remote device wipes of data Zimbra has the proven ability to scale to millions ofand easily install software and security updates. Cloud-based mailboxes. The CSC shared infrastructure leverages thesolutions also lift storage limits by leveraging economies of base infrastructure across multiple clients, creatingscale to offer low-cost storage. economies of scale while delivering a dedicated virtual application for every client. Digital transparency ensuresCompanies need the flexibility to deploy applications in a pri- that you know where your data is at all times — and ifvate or public cloud depending on their unique security needs required, to specify where that data must reside.or industry compliance requirements. In order to maximize flex-ibility and drive down the total cost of ownership, applications Learn more at to be portable and provide support for standards-basedvirtualization and cross-platform backup tools, further easingthe IT management burden.Right solutionIf you are considering moving your email and collaboration to volume and hierarchical storage management to accommodatethe cloud, there are several questions to ask when deciding on large quotas on commodity storage and can provide multiplewhich solution is right for your organization: mail domains to support changing business needs.1. Can users access email both online and offline and on any 5. What are your total costs, including software, infrastructuredevice? Be sure the vendor you select can support a variety of and operating expenses? Consider your operating expenses formobile devices. Best-of-breed solutions offer a comprehensive administration, bandwidth and data center resource costs. Oncecollaboration suite that includes unified communications, social you understand these costs, you will have a benchmark to comparemedia integration, support for a variety of mobile devices and alternative cloud solutions to your current on-premises application.other value-added services that are aligned with business functions. Next steps2. Is the platform based on an open, extensible architecture? Collaboration and communication are critical business tools, aIntegration with third-party or custom enterprise applications simple fact that has led popular messaging systems down thewill greatly enhance end-user productivity, allowing end users path of increasing size and complexity as they try to keep upto access other applications without leaving the messaging with changing needs. Users have become accustomed to light,interface, and eliminating additional steps required to copy and cloud-based collaboration capabilities that work across theshare information easily across applications. many types of devices they own, wherever they happen to be. And they expect the same at the office.3. What level of management support and security doesyour company require? You need to understand the level of Cloud-based email solutions help companies meet those grow-management support that is included with the service and the ing expectations, reduce costs and increase resources availableavailability and response-time SLAs that will be delivered. You for innovations instead of maintenance. It’s the next step in thewant to confirm that the cloud infrastructure provides the nec- cloud-enabled enterprise, and it’s one that will reward bothessary physical, logical and access-control security standards. employees and the bottom line.4. Does the supplier build on a modern, distributed and highly MICHAEL WHALEN is a senior product manager in CSC’sscalable architecture? Best-of-breed applications offer native Trusted Cloud and Hosted Services group. SUMMER 2012 | CSC WORLD 33
  • 36. feature Innovators Get the Spotlight CSC Award for Excellence Highlights Emerging Technologies in Practice by Jim Battey34 CSC WORLD | SUMMER 2012
  • 37. Accessing Patient Data on Mobile Devices The CSC Mobility Suite is a prime example of how mobile computing is improving the efficiency and effectiveness of healthcare professionals. Enabled by this solution, doctors and nurses at the Cabrini hospital system in Melbourne, Australia, are able to access patient information on their iPads or iPhones. This allows them to review data at a patient’s bedside or access information anytime, anywhere. CSC technologist Brian Ackland served as the CSC Mobility Suite’s chief architect, leading the code development by tapping into his more than 20 years of healthcare software experience. The key was to provide a simple, clean interface, and doctors at Cabrini have come to love the application. The CSC Mobility Suite brings together the information doctors need. The solution serves as a proxy to aggregate information from various sources. Patient records are displayed immediately at the simple touch of a screen, and this information is available to all the healthcare professionals involved in the patients’ care. “The most obvious and immediate benefit we’re seeing is much faster and more convenient access to information for clinical decision making, which means we can provide even better care for our patients and their families,” says Simon Woods, execu- tive director of Medical Services at Cabrini. Driving a Historic Business TransformationForward-thinking CIOs are constantly on the In the largest-ever business transformation project in thelookout for emerging technologies that will help insurance industry, CSC helped China Pacific Insurance Co. (CPIC) migrate data for 115 million policyholders and 170 millionposition their organization for growth and per- insurance policies to a new system. The project consolidatedformance. Success in business today is tied just 38 separate life insurance policy systems spread across CPIC’sas much to the quality of leadership as it is to the branches in China into one centralized system. The migrationability to keep pace with technological change. involved 12 terabytes of data clustered on 128 CPUs, and the new system can support up to 80,000 transactions per hour.The CSC Award for Excellence recognizes individu- The CSC team of Dominic Wong, Feng Rong Zhu, Edison Chiuals and teams who have created innovative solu- and Xiao Zhan Zhang helped CPIC create a high-performancetions to significantly advance our clients’ business, IT environment that is enabling the company to improve service, introduce new products faster and compete moreor our own. These outstanding projects and solu- effectively. Our financial services team in Asia engaged thetions exemplify the commitment to partnership, CSC Performance Engineering group to devise a new set ofexcellence and innovation that CSC demonstrates architectural strategies, and the units worked together toevery day. develop a scalable data warehouse model. The team then licensed CSC’s FUTUREfirst®/Asia insuranceThe 2012 Award for Excellence highlights projects policy administration software and eventually rolled out aon the cutting edge of hybrid cloud and as-a- first-of-its-kind insurance industry data model. Parallel processingservice business models, mobile workplaces and and online data conversion technologies were deployed to accomplish complicated computing tasks simultaneously. Incomplex global engagements. addition to creating a single data source, the deployment of a central data hub reduced architecture complexities andHere’s what makes these recipients extraordinary: eliminated redundancies. SUMMER 2012 | CSC WORLD 35
  • 38. “The successful implementation of the P10 core business system The solution is the largest business-to- has enhanced the overall management and innovation capabilities enterprise mobile project in France of CPIC,” says Xu Jing Hui, chairman of CPIC. “The centralized that uses only commercially available management platform will greatly support our front-line sales, devices for a mission-critical activity. extend our service scope and encourage innovation.” It also involved many innovations (like using GPS technology) and The entire migration program was carried out with minimal a major business transformation disruption to users. Employee access to enterprise data has and business change program. dramatically improved, and month-end closing processes that used to take up to 10 days can now be completed in less than Launching a three hours. Federal Cloud The U.S. government is trying to A Mobile Solution for Train Drivers do more with less. CSC is helping one A CSC-designed system is enabling train drivers in France to of our federal clients save money with the use a smartphone to perform essential tasks such as planning deployment of an innovative private cloud that routes, driving trains and filing daily reports. CSC developed this reduces the agency’s development time while mobile solution for the 16,000 train drivers of France’s national increasing scalability. state-owned railway company, the Société Nationale des Chemins de fer Français (SNCF). To trim costs, new federal mandates require government agencies to consolidate their IT assets and embrace cloud The CSC team tapped into our transportation industry leader- computing. CSC’s solution, Development/Test as a Service ship and expertise in mobile applications to build the solution. (DTaaS), is the first federal as-a-service enterprise portal cloud CSC’s role was to define, design and implement the solution, computing solution deployed in a client’s data center that which is built around a Windows mobile HTC Touch HD smart- meets the new standards. The initiative combines our long-term phone kit, with a rough casting design to fit the train driver’s government experience with our cloud computing and security needs and constraints. Team members included Cécile Anglada, expertise, and was made possible by CSC professionals Jerry Jérémy Goldschmidt, Christophe Lienhard and Olivier Seka. Bamgbade, Tom Fusting, Jonathan Kronimus and Joe Montione. The business value the solution brings to the railway The DTaaS solution includes a vertically integrated stack of includes reductions in operational tasks and server, storage, and networking hardware and software to error rates, improved distribution of facilitate sharing, reuse and dynamic resource allocation. The route planning, electronic processing environment is based on an x86 VMware, Cisco and NetApp of daily reports and management platform. Key features include advanced automation, integrated of critical activity data. The data protection and an efficient, always-on infrastructure with new capabilities have also elastic scalability. enhanced the train drivers’ image and pride. Technology service delivery at the agency has been migrated to a cloud-based, pay-per-use computing environment. Appli- “This solution takes us a cation development and testing activities, previously costly major step forward in and cumbersome, are now much easier to access and more modernizing the train affordable. DTaaS removes up-front provisioning bottlenecks drivers’ activity, enabling through self-service provisioning, enabling developers to get to them to better achieve work delivering solutions in less than a day. operational excellence in what is becoming a “DTaaS provides a common operating, development and testing more competitive and environment that removes the siloed approach and speeds up challenging environment the quality and efficiency of the developers by removing the for SNCF, all the while infrastructure concern and allowing developers to do what they contributing to sustain- do best, which is write code,” says Joe Montione, principal cloud able development,” says applications architect at CSC. Jean-Aimé Mougenot, former director of the SNCF train drivers’ human resources department.36 CSC WORLD | SUMMER 2012
  • 39. Changing the Conversation About Enabling Growth for Insurance CompaniesPrivate Clouds CSC financial services professionals recognized the need forCSC BizCloud™ enables organizations in the public and private a low-cost solution that would let insurance companies entersector to unlock business and mission value when workloads markets more easily, at a lower cost and with fewer risks. Acall for a private cloud. The introduction of BizCloud changed team of CSC technologists developed Business Process as athe conversation about implementing a private cloud. Private Service (BPaaS) for Insurance, which is designed to helpclouds don’t have to be capital and labor intensive; BizCloud’s companies deploy operations in new markets in record financial model provides the ability to flex up and scaleback with efficiency. Companies doing business in the workers’ compensation insurance market face a complex maze of regulations that areBizCloud is a private cloud deployed on the customer’s choice constantly changing and vary from state to state. Our firstof premises, billed from a rate card and ready for workloads in BPaaS offering was created to help companies tackle this com-just 10 weeks. Only CSC offers a cloud solution that combines plex world. Using an innovative delivery model, our Workers’the agility of an on-premises private cloud with the elasticity of Compensation as a Service (WCaaS) system can be up andpay-as-you-go pricing associated with public clouds. The CSC running in just 45 days, and at a fraction of the cost of a typicalteam of Sunil Bhargava, Pamela Casale, Gabe Kazarian and business process outsourcing arrangement. Team members includ-Enrique Valencia forged key alliance partnerships to create a ed Louis Fields, John Husband, Eamon Kelly and Jennifer Kesser.standardized delivery model with unique financial engineeringso the solution can be deployed quickly with attractive economics. “Our challenge was to offer a new delivery model that would provide the insurance market with a solution meeting both their“BizCloud is ideal for the enterprise cloud — it is scalable, business and technological needs,” says Kesser, CSC deliverysecure and easy to use,” says Bhargava, product director for Bi- manager. “With BPaaS, we have taken our core business pro-zCloud. “The Infrastructure-as-a-Service layer, the rate card and cesses into the cloud.” She says WCaaS takes CSC’s traditionalthe service levels are the same across all CSC cloud models.” worker’s compensation solution and pre-configures it based onClients are able to access the right cloud for sensitive work- industry standards and state regulatory requirements.loads, for disaster recovery or backup, or to develop, test andQA applications moving into production. Financial engineering Among the many innovations provided by BPaaS are integratedmakes it possible to standardize cost across the models. and pre-populated solutions available in the cloud, a Web- based console to automate client-specific configurations, andCSC BizCloud lets customers choose a private cloud without transformation of business requirement processes based onthe complexity of traditional models, says Bhargava. “That standardized configurations. In addition, CSC insurance expertssounds simple enough, but when you consider the complexity ensure that the system meets the rules and regulations for allof adding a service catalog, chargeback, orchestration of 50 states, plus the District of Columbia.workstreams or a self-service portal featuring transparency, yourealize just what BizCloud provides,” he says. “Sometimes ouroffer to the market is so simple, it takes a while forprospects to comprehend the incredible value.” JIM BATTEY is a writer for CSC’s digital marketing team. SUMMER 2012 | CSC WORLD 37
  • 40. By the Numbers Big Data Getting to information They say that information is power, but information shouldn’t be Bigger confused with data. Power comes from mining the data to get at the information it contains. That’s where things get interesting. Most of the data we are generating and will continue to generate is called “unstructured” data. That means that much Potential of it doesn’t fit neatly into the fields of a relational database. Unstructured data is less rigid, less ordered and more interrelated than traditional data. All those photos, videos and passages of text fall into this category. by Jeff Caruso Given the volume, variety and velocity of data, the tools for analysis are changing. More people can peer into the data in Once you get your mind around just how big our data has more ways for more meaning. Analytics is no longer confined to become, the next trick is to open your mind to the possibilities a few people working with a subset of data on a small analytics created by having all that data. server off in a corner. The industry term is Big Data, but it really ought to be called Today analytics is moving to center stage as more people Huge Data or perhaps Ginormous Data. In 2011, the total data can access the tools and analyze all the data, leveraging data that had been created was 1.8 zettabytes. A zettabyte is a tril- from multiple sources and unleashing the power of a distributed lion gigabytes, or sextillion bytes. By 2020, IDC expects annual grid of computing resources to do the heavy lifting involved in data generation to increase 4,300% from 2009, with total data the analysis. produced to be around 35 zettabytes.1 Analytics is now moving to the “predictive edge,” where the More than 70% of the data is generated by individuals, and analysis is more time-sensitive and closes in on real-time results, herein lies the opportunity for enterprises: to access this data, as CSC’s William Koff and Paul Gustafson write in their research combine it with the enterprises’ data and analyze it all for new report, “Data rEvolution.” insights. EMC says the number of customers storing a petabyte (1 million gigabytes) or more was 1,000 in 2010, and estimates Practical uses that it will be 100,000 customers before the end of the decade. One example they highlight is insurance fraud analysis. In the past, companies may have run fraud analysis every two months Think about how much data you generate every day. You take — which may have meant that fraudulent claims had already a picture and store it in the cloud. Maybe you post a video on been paid. With Big Data tools, insurance companies can run YouTube. Certainly you make a few purchases on your credit those analyses twice a day, catching fraudulent claims in hours. card, send email, browse more than a few websites or post a tweet. Now multiply those actions by billions of people. Add 2015 in data generated by sensors, from weather satellites in space, to manufacturing sensors on a factory floor, to sensors on the ocean floor, to sensors in your car. An exabyte here, an exabyte there, and pretty soon you’re 2012: customers talking about really massive data. will start storing 1 EB of information. THE RAPID GROWTH OF GLOBAL DATA 1.2zb The production of data is expanding at an astonishing .96zb pace. Experts now point to a 4300% increase in annual .36zb data generation by 2020. Drivers include the switch from 0 01 analog to digital technologies and the rapid increase in data generation by individuals and corporations alike. 2 Size of Total Data Enterprise Managed Data Enterprise Created Data .79zb 200938 CSC WORLD | SUMMER 2012
  • 41. Another example is in financial services. On one level, banks canmake connections to figure out which of their customers arethe most profitable for them. On another level, they can use Big For a deep dive into this brave new world, see theData techniques to perform capital adequacy modeling — that “Data rEvolution” report, published by CSC’s Leadingis, to ensure they have enough cash in reserve compared to Edge Forum: outstanding loans. For more insights into Big Data, visitIn life sciences, one biotech company was able to analyze data, cutting through billions of pieces of geneticinformation to identify 23 optimal genes for predicting heartdisease. It then created the first gender-specific diagnostic testsfor heart disease.Big data is about big data sets, and “data as a service” isemerging so that enterprises can access the data withouthaving to own it — think climate data or consumer financialdata, for example. Data as a service — and ultimatelyanalytics as a service — makes sense because the data 2020: More than 1/3 of the datamust be available to multiple parties, who need to come produced willtogether and collaborate on the data. live in or pass through theIn many industries, the data just keeps coming. We cloud.keep gathering it, storing it. At this point, it iscoming in faster than the questions we ask ofit, and surely it has more stories to tell.1 “The Digital Universe Decade — Are You Ready?”IDC, sponsored by EMC Corp., May 2010.JEFF CARUSO is seniormanaging editor for CSC’sdigital marketing team. 20 20 SUMMER 2012 | CSC WORLD 39
  • 42. in practice: UTILITIES Challenge: • Decrease operating costs by deploying a more efficient and flexible IT infrastructure • Implement an integrated, multivendor virtualization solution for servers and storage, with the ability to expand to the desktop environment • Consolidate, migrate and virtualize servers using standard data center solutions CSC Solution: NATIONAL • Deploy CSC Cloud Computing Services (CSC CloudCompute, VCE Vblock Platform) • Use CSC Virtual Desktop Services GRID • Provide CSC Hosting/Data Center Results: • Reduced costs and increased flexibility via the migration of more than 1,000 servers to ENERGIZES IT VIA Vblock platforms • Centralized the management of servers and storage, enabling VIRTUALIZATION a more robust computing environment and control in a single location • Avoided business disruption by Jim Battey through detailed planning and coordinated communication with alliance partners40 CSC WORLD | SUMMER 2012
  • 43. When National Grid was looking for a world-class team of IT For end users at National Grid, a smooth, pain-free transformationproviders to deliver highly reliable and efficient IT support is important. Elaine Hatzis, tower services manager for Nationalservices, CSC was chosen to provide enterprise services for Grid, says, “Success for the end users would be measured bythe ecosystem. minimal disruptions to their business processes and the tools they need, and being able to meet their goals.”Our continued support through an as-a-service model and thedeployment of four cloud-based Vblock platforms is helping the Cloud solution proves cost-effective, efficientUK-based gas and electricity company reduce costs and increase National Grid had the technology, the vision and the desire tothe resiliency of its IT systems. reduce costs, and CSC provided the integration expertise using an “as-a-service” model to tie everything together in an efficientEnterprises want to pay only for what they use, and the as-a- and cost-effective manner. National Grid turned to a Vblock so-service approach is reaping big benefits for companies such as lution, which is delivered to CSC customers in concert with keyNational Grid. Working closely with our alliance partners, CSC is alliance partner VCE. For Welch, forging a strong relationshipproviding a wide range of enterprise services, including desktop with alliance partners is essential for success. “Having a relation-computing resources, storage, data centers and network security. ship with those companies gave us an opportunity to innovate about how to deliver these kinds of environments more quicklyVblock provides an integrated solution at lower risk and at lower cost,” he says.National Grid furnishes energy to millions of customers in theUnited Kingdom and the Northeast United States. With morethan 1,000 servers spread across locations throughout thesecountries, National Grid was looking to consolidate. “The value of what CSC and VMware are bringing to the tableReducing the number of servers would not only cut costs, itwould mean increased efficiency and a more reliable operating is that we are making the promiseenvironment. Enterprises are turning to multivendor virtualizationsolutions provided by the likes of industry leaders VMware, VCE, of cloud computing a reality andEMC and Cisco. not just a promise.”Simon Statham, program executive, CSC, says, “We were - Bob Millradt, global alliances director, VMwarelooking at ways to reduce their operational expenditures, andvirtualization was presented as an ideal solution.” Bob Millradt, global alliances director at VMware, says theVblock is an integrated virtualization solution offered by VCE advantage of the end user experience is that customers arethat allows companies to stand up server instances very quickly. able to experience the same desktop with the same look andVblock provides virtual servers, desktops and storage, plus feel they’ve always had, but they no longer have to manage allnetworking in a single rack. National Grid’s servers went online of the data and an operating system on their desktop. “It is allin a matter of days, instead of the company’s having to order moved to the data center and managed centrally in a safe andhardware, wait for delivery and go through a time-consuming secure manner,” Millradt says.setup process. Millradt says the “always-on” nature of cloud computing pro-Pain-free server migration vides numerous benefits. “What CSC and VMware do withTransforming systems is no easy task. Especially for a utility the BizCloud and Cloud Compute offerings is give custom-company, maintaining reliable services without a hitch is ers the confidence that their computing will be always on.”essential. Bob Welch, president of CSC’s Chemical, Energy and He adds that cloud computing allows customers to focus onNatural Resources Group, says, “What National Grid asked CSC the business and let CSC and VMware worry about where thewas an environment that had the kinds of high availability that computing capacity is coming from. “The value of what CSCwould rapidly transform to a lower-cost platform that didn’t and VMware are bringing to the table is that we are making thedegrade availability and would reduce National Grid’s cost to promise of cloud computing a reality and not just a promise.”operate in a highly reliable way.” Learn more at systems is a very delicate process. Statham says.“When moving servers, you need to be cautious because everyserver is precious to some individual.” CSC developed a methodi-cal process where we were able to move servers very quickly.The result, Statham says, was that “throughout the migration, wedid not disrupt the business in any way.” JIM BATTEY is a writer for CSC’s digital marketing team. SUMMER 2012 | CSC WORLD 41
  • 44. in practice: UTILITIES SWISSGRID POWERS UP CYBERSECURITY by Jenny Mangelsdorf Switzerland has played a central role in Europe’s electricity grid for more than 50 years. In 2006, Swissgrid began taking responsibility for the country’s transmission grid following the As a strategic transmission player in European Union’s liberalization of electricity markets. In 2013, Europe’s power grid network, Swissgrid Swissgrid will have complete control of the country’s 6,700- needs to meet the most robust cyberse- kilometer high-voltage grid network. curity standards. The company worked Swissgrid ensures that power is available within the country. It with CSC to assess its operations and also coordinates the movement of electricity and manages grid benchmark them against U.S. critical use when energy suppliers in other countries use the grid to infrastructure protection standards. move power across Europe to other countries. “There’s an enormous amount of power coordination going on “Every company today is asking the same that Switzerland manages,” says Hank Hensel, CSC technical question: ‘How safe are we?’” says Rajesh security expert. “If its grid were to go down, lights could go out Nair, Swissgrid head of strategy and in another country.” architecture. “That’s like asking a person, Protecting infrastructure stability ‘How good are you?’ You can’t answer Besides the typical intricacies of managing intracountry power that, but if you take a path using something transfer and flow, cyberattacks add an increasing challenge to that you can benchmark against, then you maintaining grid stability. know where you stand and have some- In a 2011 survey by CSC partner McAfee and the Center for thing to base your investments on.” Strategic and International Studies, 40% of 200 IT security executives from critical electricity infrastructure enterprises in 14 countries reported that their industry’s vulnerability had increased. More than 40 percent of these executives said they expect a Challenge: major cyberattack within the next year that will cause severe • Evaluate infrastructure against U.S. cybersecurity loss of services for at least 24 hours, a loss of life or personal standards injury, or the failure of a company. • Find processes to mitigate risks • Determine the impact of smart technologies on the grid To prepare for these realities, Swissgrid looked to the North American Electric Reliability Corp. (NERC) U.S.-mandated Solution: Critical Infrastructure Protection (CIP) standard for the • Measure infrastructure against NERC-CIP standard country’s bulk-power system. • Analyze risks, using tools from U.S. Department of Homeland Security “NERC-CIP, of which v4 should be approved this year, is the • Recommend ways to mitigate cybersecurity risk only full standard that addresses high-voltage transmission and Supervisory Control and Data Acquisition (SCADA) systems Results: used for critical infrastructure,” says Meir Shargal, CSC utilities • Swissgrid now has a better-fortified infrastructure strategy leader. • Semi-annual cybersecurity audits are planned • Swissgrid is implementing the CSC recommendations Swissgrid chose CSC to benchmark it against the standard because of our NERC-CIP knowledge and expertise combined with our understanding of how to apply this to utilities.42 CSC WORLD | SUMMER 2012
  • 45. The company also selected CSC because of our history inworking with international energy companies to meet U.S.Department of Energy regulatory requirements for classifiedand unclassified industrial control networks, as well as our workin helping define and review cybersecurity infrastructure standards.Benchmarking cybersecurityCSC provided consulting services, subject matter experts,and U.S. and international regulatory expertise to benchmarkSwissgrid’s security standards, procedures and processesagainst NERC-CIP. CSC experts evaluated the company’ssecurity measures while conducting a risk and gap analysisusing the U.S. Department of Homeland Security’s (DHS)Cyber Security Evaluation Tool. “Every company today is asking the same question: ‘How safe are we?’” - Rajesh Nair, Swissgrid head of strategy and architecture“We also used DHS tools that are set up explicitly to assess acompany’s posture for NERC-CIP itself,” Hensel says. “At theend we gave Swissgrid a baseline of where it is relative to thestandard and a road map it can follow to ensure that it hasrobust cybersecurity in place for the future.”Today Swissgrid is acting on CSC’s recommendations andimplementing processes and initiatives to mitigate risksidentified during the benchmark. It also plans to perform abi-yearly NERC-CIP audit to track improvements and ensurethat its security remains robust.“In the future, as smart grid technologies and other deviceswith IP addresses increasingly link to networks, utilities will haveto securely manage those connection points,” Shargal says.“By thinking about this now, Swissgrid won’t have to redesignits security infrastructure as its connections, vulnerabilities andrisks increase.” Learn more at MANGELSDORF is a writer for CSC’s digital marketing team. SUMMER 2012 | CSC WORLD 43
  • 46. Sustainability Do Your Suppliers “In our world of ‘extended producer responsibility,’ companies, particularly those with big brand names, will be held Measure Up to Your accountable for the shortcomings of their suppliers,” Daniel Ethical Esty and P.J. Simmons write in their book, The Green to Gold Business Playbook. Supply chain sustainability is taken very seriously at CSC. We Standards? recognize that we have an obligation to a triple bottom line: environmental, social and economic. We also recognize that with our considerable purchasing power comes considerable respon- sibility and accountability. As a result, CSC advocates environ- by Susan Pullin and Kathryn Hinton mentally, socially and fiscally responsible supply chain practices. It is important that people at CSC tasked with procurement have a 360-degree view of what a supplier brings to us. Pur- chasing is not just about price; it’s not just about technology; it’s also about sustainability, diversity, location and value. CSC has developed a set of principles we are fully committed to, which include: • Procurement Guidelines: We have developed guidelines which will ensure that CSC considers social, ethical and en- vironmental factors when procuring products and services. These guidelines are being incorporated into contracts with our suppliers, and we will hold them accountable to uphold our standards. • Training: All of our key supply chain professionals will be trained in sustainable supply practices to ensure effective implementation of our policies. We have trained our supply chain staff to look for sustainability reports from our suppliers. In addition, we will randomly conduct audits on suppliers to ensure that their reports are accurate. • Energy Efficiency: We are sharply focused on procuring energy efficient products, products from recycled materials or other environmentally preferable products for us and our clients. Each year, our major IT suppliers continue to improve the energy efficiency of their products. Supply chains don’t often make headlines. But when they do, it’s usually not good news. Most recently, reports of working • Disposal of Assets: As contracts renew and new equipment conditions at manufacturing plants in China and coverage of is purchased, we are following best sustainability practices “pink slime” added to ground beef created such media frenzies for the disposal of IT assets owned by CSC. We have and consumer outcries about suppliers that companies were contracted with a number of suppliers to conduct proper forced to publicly address the issues. asset disposal for us in ways that take environmental concerns into consideration. At CSC, as a professional services company whose focus is business to business (B2B), our understanding of the full It is our intention, through these principles, to bring about significance of our supply chain practices continues to evolve. reduced energy and water consumption and a smaller carbon footprint for ourselves and our clients. We can also assure With the increasing spotlight on sustainability, our stakeholders our stakeholders that we hold our suppliers responsible and are holding us more accountable for the business practices of accountable for their business practices. our suppliers all the way down the supply chain. When a customer asked us to assure them that no child labor was used in the manufacture of the computer equipment we had SUSAN PULLIN is vice president of corporate responsibility and procured for them, it served as a wake-up call about the KATHRYN HINTON is vice president, supply chain management importance of a responsible supply chain. for CSC.44 CSC WORLD | SUMMER 2012
  • 47. CONFIGURE IT OUTYOURSELF BUSINESS SOLUTIONS Solve the challenges puzzling your organization with TECHNOLOGY OUTSOURCING CSC’s financial services solutions. You’ll find the software and services you need to put every piece of your strategy in place. And you can easily configure our solutions to meet the growing demands of the connected consumer. Deep industry experience and innovative solutions — they’re the perfect fit. CSC.COM/FINANCIALSERVICES SUMMER 2012 | CSC WORLD 45
  • 48. BUSINESS SOLUTIONS TECHNOLOGY OUTSOURCINGWorldwide CSC HeadquartersThe Americas3170 Fairview Park DriveFalls Church, Virginia 22042United StatesTel: +1.703.876.1000Asia20 Anson Road #11-01Twenty AnsonSingapore 079912Republic of Singapore+65.6221.9095AustraliaLevel 6/Tower B26 Talavera RoadMacquarie Park, NSW 2113Sydney, Australia+61(0)2.9034.3000Europe, Middle East, AfricaRoyal PavilionWellesley RoadAldershot, Hampshire GU11 1PZUnited Kingdom+44(0)1252.534000About CSCThe mission of CSC is to be a global leader in providing technology-enabled businesssolutions and services.With the broadest range of capabilities, CSC offers clients the solutions they need tomanage complexity, focus on core businesses, collaborate with partners and clients andimprove operations.CSC makes a special point of understanding its clients and provides experts with real-worldexperience to work with them. CSC leads with an informed point of view while still offeringclient choice.For more than 50 years, clients in industries and governments worldwide have trusted CSCwith their business process and information systems outsourcing, systems integration andconsulting needs.The company trades on the New York Stock Exchange under the symbol “CSC.”Copyright © 2012 Computer Sciences Corporation. All rights reserved.