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CSC World Magazine March 2013
CSC World Magazine March 2013
CSC World Magazine March 2013
CSC World Magazine March 2013
CSC World Magazine March 2013
CSC World Magazine March 2013
CSC World Magazine March 2013
CSC World Magazine March 2013
CSC World Magazine March 2013
CSC World Magazine March 2013
CSC World Magazine March 2013
CSC World Magazine March 2013
CSC World Magazine March 2013
CSC World Magazine March 2013
CSC World Magazine March 2013
CSC World Magazine March 2013
CSC World Magazine March 2013
CSC World Magazine March 2013
CSC World Magazine March 2013
CSC World Magazine March 2013
CSC World Magazine March 2013
CSC World Magazine March 2013
CSC World Magazine March 2013
CSC World Magazine March 2013
CSC World Magazine March 2013
CSC World Magazine March 2013
CSC World Magazine March 2013
CSC World Magazine March 2013
CSC World Magazine March 2013
CSC World Magazine March 2013
CSC World Magazine March 2013
CSC World Magazine March 2013
CSC World Magazine March 2013
CSC World Magazine March 2013
CSC World Magazine March 2013
CSC World Magazine March 2013
CSC World Magazine March 2013
CSC World Magazine March 2013
CSC World Magazine March 2013
CSC World Magazine March 2013
CSC World Magazine March 2013
CSC World Magazine March 2013
CSC World Magazine March 2013
CSC World Magazine March 2013
CSC World Magazine March 2013
CSC World Magazine March 2013
CSC World Magazine March 2013
CSC World Magazine March 2013
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CSC World Magazine March 2013

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CSC's global Client Magazine

CSC's global Client Magazine

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  • 1. Winter 2013WORLDAvis Budget’sRoad to Customer ValueInside the Company’s Journey to GrowRevenue with Big Data AnalyticsINSIDEBig Data Meets Presidential Politics9 Cloud Computing Predictions for 2013Technology Helps Fight a Deadly DiseaseCybersecurity for Industrial Control Systems
  • 2. let the data be your guideHow do you navigate today’s business challenges without a map?CSC’s Big Data and Analytics services Our data-driven insights quickly lead Learn more about how CSCallow you to identify faster routes to clients to reliable results. That means can help you use your data asyour business goals. Our offerings help enabling faster innovation and decision a guide: csc.com/big_data.you stay on course during your business making for greater profitability andjourney, no matter what the terrain. growth along the way.
  • 3. WORLD Inside CSC WorldDIRECTOR, GLOBAL BRAND & DIGITAL MARKETINGNick Panayi Big Data: It’s No JokeEDITORIAL DIRECTORPatricia Brown Big data has typically been about the biggest brains in organizations looking for big solutions to big problems. For years, business intelligence has been the domain of people planning strategy over a relativelySenior managing editorJeff Caruso long time horizon, using tools and tactics that were cumbersome and often counterintuitive. You quite literally had to be a rocket scientist to understand what the huge amounts of data meant to the organization.Senior editorChris Sapardanis But all of this is changing. Advanced processing power and rapidly maturing analytics technology areContributing Writers colliding with a growing appetite among executives for in-depth, customer-based information. As a result,Jim BatteyDale Coyner we are seeing new demands from every level of the organization to access vast amounts of information inPeter Krass support of day-to-day — even minute-to-minute — decision making, not just long-term planning.Jenny MangelsdorfArt director In other words, the most successful entities — whether they are companies, agencies, political parties orDeric Luong even individuals — are not just those that can apply economies of scale to produce competitively pricedDesign & production offerings. Instead, the winners will most likely be those who can microtarget, delivering what differentCreative Services — P2 segments of the market want based on a local understanding of conditions and circumstances duringCSC­­­ specific customer interactions.www.csc.comTHE AMERICAS Take the case of CSC’s own Gary Jackson, who works with companies worldwide on developing big3170 Fairview Park Drive data strategies. He is very serious about big data. But he is also a very funny guy. Seriously, he’s funny. AFalls Church, VA 22042 couple of months ago he swung by D.C. from Hong Kong, and one evening a group of us saw him deliverUnited States+1.703.876.1000 his routine at a downtown comedy café. Comedy is truly a high-wire act, and Gary will tell you that every room is different. This is especially true if you cross continents and cultures. So, how is he able to leaveAsia20 Anson Road #11-01 us all laughing? He has learned how to capture the mood of the room and the moment. Only then can heTwenty Anson segment the crowd to carefully choose the material he will present.Singapore 079912Republic of Singapore+65.6221.9095 A joke, or a product, cannot be delivered in exactly the same way in different places to different cultures in a successful manner. Organizations that understand this will increasingly provide more employees accessAustraliaLevel 6/Tower B to big data resources and offer business intelligence tools to support routine interactions.26 Talavera RoadMacquarie Park, NSW 2113Sydney, Australia This is clearly illustrated in our big data cover story, “Avis Budget’s Road to Customer Value.” Like many+61(0)2.9034.3000 businesses, Avis Budget had loads of customer data with no clear way to analyze it. Today, the companyEurope, Middle East, Africa has a new marketing science organization, a new customer value model, and a new marketing campaignRoyal Pavilion and technology toolset. All of this has led to improved customer loyalty and improved profitability. Best ofWellesley RoadAldershot, Hampshire GU11 1PZ all, it has helped the company increase its revenue by $200 million.United Kingdom+44(0)1252.534000 In the article, “Big Data Meets Presidential Politics,” we show how the Obama campaign successfully used big data analytics to gain votes. The campaign deployed a team of technologists who built a sophisticatedCSC WORLD (ISSN 1534-5831) data platform code-named Narwhal to help segment, track and microtarget voters. And don’t miss theis a publication ofComputer Sciences Corporation. piece by Sashi Reddi, VP and general manager of CSC’s Big Data and Analytics group, which identifies four big data trends you should be tracking.Copyright ©2013Computer Sciences CorporationAll rights reserved. We hope you enjoy the issue and take the opportunity to visit and interact with us online. CSC WorldReproduction without permission is also available at www.csc.com/cscworld, where you can subscribe, comment on stories, watchis prohibited. accompanying videos or download mobile versions.Comment on what you’veread in CSC WORLD atwww.csc.com/cscworld. Best, Patricia BrownOr write:CSC WORLD Editorial Director, CSC World3170 Fairview Park DriveFalls Church, VA 22042 USA www.csc.com/cscworld WINTER 2013 | CSC WORLD 1
  • 4. CSC WORLD | winter 2013 | VOLUME 11 | NUMBER 4 14 28 22 36 8 4 NEWS big data Mergers-and-acquisitions activity dominates the end of 12 4 Ways Big Data Will Transform Business 2012; a new center of excellence for mobility opens, and Customer intelligence is just one example of big data’s CSC’s Yogesh Khanna wins a CTO Innovator award. value. As the technology evolves, big data is expected to accelerate a number of important trends in 2013. 6 heard on csc.com Experts are coming to CSC.com to make their voices 14 Big Data Meets Presidential Politics heard, in CSC Town Halls, online communities and In the 2012 presidential election, the Obama campaign Ingenious Minds blogs. successfully used big data analytics to influence voters. Enterprises can apply these same tactics to influence customers and drive sales. cover story Executive Perspective 8 Avis Budget’s 16 Better Coordination, Better Health People are living longer than ever before, largely as a result Road to Customer Value of improved public health and medical care. But as we start the second century of mass medicine, healthcare systems Technology is disrupting the rental car business. For Avis are under stress. Budget Group, a new emphasis on big data analytics could hold the key to achieving significant growth in the United 17 Australia’s World of Opportunity States and abroad. Australia is the center of the world. Don’t believe it? Gavin Larkings, vice president and general manager of CSC Australia, discusses the importance of natural resources, China and emerging tech in his region.2 CSC WORLD | WINTER 2013
  • 5. financial services18 iPad App Appeals to Younger Clients As one of the oldest banks in Europe, Van Lanschot keeps in step with client needs. But company growth has New ON CSC.COM brought in a younger clientele and has the bank rethinking its digital presence. Infographics Central: Explore key trends and data in visual and interactive ways with a collection of CSC20 Is That Really You? infographics on emerging technologies such as cloud Instant payments, paperless check deposits and one-touch computing, big data and mobile banking. transfers have made online banking wildly popular with csc.com/Infographics customers. But the threat of fraudulent payments and identity theft is up as well. CSC Town Halls: Join a continuing series of online conferences on IT topics that matter to you, featuring HEALTHCARE CSC experts and special guest speakers ready to answer22 Scientists Explore the Origin of Outbreaks Online your questions. csc.com/TownHall When scientists need access to information on medical Success Story Briefing Center: View video success topics such as human genetics and flu outbreaks, they turn stories featuring CSC subject matter experts, clients and to the National Library of Medicine. CSC supports this vast global partners or search hundreds of stories that cover repository of healthcare data. a wide range of solution areas. csc.com/Success_Stories24 Technology Helps Fight a Deadly Disease At least 1.8 million people die from sepsis each year. CSC’s CareVeillance™ real-time clinical surveillance tool is helping The University of Kansas Hospital detect the disease early and save lives. CYBERSECURITY Research 26 How Hospitals Can Immunize Against Hackers 36 Where ‘Mad Men’ Meets ‘Math Men’ Cybercrime and data breaches are among the most Marketing is marketing, technology is technology, data common worries keeping healthcare CIOs up at night. is data, and never the three shall meet — right? Not so, Healthcare organizations must pursue an enterprise-type says Frank Cutitta, a research associate in CSC’s Leading approach to securing data. Edge Forum. 28 Cybersecurity for Industrial Control Systems: 40 Open Source: It’s Not Just for The Time Is Now Software Anymore The need for strong cybersecurity on industrial control IT’s influence is growing beyond the server room to systems is great. These systems — vital to the chemical, rewrite basic business strategy. A new CSC Leading Edge electrical, water and other industries — are increasingly Forum study points to open source software as key to its under attack. expanding sway. cloud computing applications 30 Understanding Cloud and How to Buy It 42 ‘Mobile First’ Movement Drives CSC and EMC sponsored the Outsourcing Center’s Cloud Application Design Buyer’s Guide, to provide a better understanding of cloud The rapid adoption of smart mobile devices has redefined and how it differs from traditional IT outsourcing. industries and spawned new ones in just a few short years. That shift is also causing companies to rethink application32 Overcoming the Fear of Cloud development strategy. Despite cloud’s high adoption rates, lingering doubts about data security remain, according to Information Security Last Word Media Group’s 2012 Cloud Computing Security Survey. 44 9 Cloud Computing Predictions for 2013 The cloud changes nearly everything, including IT’s34 How ‘Everything as a Service’ Can Save relationship with the business. Siki Giunta, vice president and CIOs Money general manager of CSC Cloud Computing and Software Today, nearly any type of hardware, software, IT process or Services, predicts major developments coming this year. business process can be offered as a cloud-based service. It’s called “Everything as a Service,” and the benefits to the enterprise are many. WINTER 2013 | CSC WORLD 3
  • 6. news CSC’s Transformation Takes Big Turns in 2012 Another major transaction was designed to bolster the company’s big data offerings. In October, CSC acquired 42six Solutions, a premier software development company that specializes in big data processing and analytics, and advanced applications support for the U.S. Intelligence Community (IC) and the Department of Defense. “Data services and analytics capabilities are rapidly becoming essential elements of commercial and government operations, and these product offerings hold unmistakable benefits to the intelligence community,” says Sashi Reddi, vice president and general manager, Big Data and Analytics, CSC. “This acquisition aligns directly with CSC’s strategy of offering customers greater value through big data expertise and intellectual property.” In other divestitures, CSC reached an agreement with Adcorp, South Africa’s largest employment services company, to sell Paxus, CSC’s Australian IT staffing unit. The total value of this all-cash transaction is expected to be $73.5 million. “Our turnaround is tracking to plan. We are transitioning to our new operating model and we are aligning our assets with our strategy of leading the next generation of technology services and solutions. Our cost takeout initiatives are yielding results as demonstrated by higher profit margins in all three lines of business when compared with the prior year. As a result, we are raising our target for fiscal year 2013 EPS from continuing operations to $2.50 - $2.70,” says Mike Lawrie, president and CEO. “During the quarter, we divested certain non-core In work that began with the hiring of a new CEO in March 2012, businesses and we are using the proceeds to return cash to CSC’s turnaround plan hit major milestones in recent months. shareholders through our share buyback program and incre- The 54-year-old company is forging ahead with an aggressive mental contributions to our pension plans.” transformation initiative to rebalance its portfolio of services and focus on next-generation technology solutions and services. Also in October, as part of its ongoing service portfolio opti- In its largest move to date, CSC sold its credit services unit to mization, CSC entered into an agreement with Dedagroup, an Equifax for $1 billion in cash. Italian IT services company, for the sale of the consulting and systems integration services part of its business in Italy. The after-tax proceeds from the sale of the business will be approximately $750 to $800 million, based on preliminary plans. After the transaction reaches final agreement, CSC will retain CSC intends to use $300 to $400 million to repurchase shares, a presence in Italy and continue to provide a select portfolio contribute $300 to $400 million to its pension plans and apply of services, including cloud, financial services, infrastruc- the remainder to general corporate purposes. ture, business process outsourcing and healthcare offerings, to multinational companies. CSC will also retain corporate CSC’s credit services unit had owned credit files in 15 financial services products, solutions and services for CSC’s Midwestern and Central U.S. states representing 20% of the international accounts. U.S. population, and had been the largest independent U.S. consumer credit reporting agency and an Equifax affiliate for Under the terms of the agreement, Dedagroup will assume from more than 20 years. CSC all pan-Italian consulting and systems integration projects, as well as fashion industry software products and services.4 CSC WORLD | WINTER 2013
  • 7. CSC’s Yogesh Khanna Wins CTO Innovator Award Yogesh Khanna, chief technology officer (CTO) for CSC’s North American Public Sector, won the 2012 Government Con- tractor CTO Innovator Award in the large company category from the Northern Virginia Technology Council (NVTC) and Washington Technology. The award was presented on November 12 at NVTC’s annual TechCelebration banquet. Khanna’s award recognizes his instrumental role in establishing CSC’s data center consolidation and cloud go-to-market strategy and offerings. He also developed a strategic roadmap for product offerings to support the Federal Data Center Consolidation Initiative and to help CSC’s clients migrate to the “as-a-service” consumption model. In addition, he established an Innovation Task Force, comprising CTOs who represent their respective divisions at CSC. “Yogesh has remarkable passion for and proficiency in delivering results that government customers and internalMobility Center of colleagues value,” says David Zolet, executive vice presi-Excellence Opens in India dent and general manager of CSC’s North American Public Sector. “He leverages more than two decades of experienceWith mobility creating new disruptions in the enterprise, CSC to continuously drive next-generation solutions that help ourhas established a Mobility Center of Excellence that serves as a customers meet their missions and achieve greater efficien-focal point for the company’s worldwide mobility resources and cies. I continue to be impressed by his technical acumen anda base for research and development, testing, demonstrations, engaging approach.”creation of custom prototypes and definition of best practices. Khanna leads the development and implementation of the“Mobility has become a strategic priority for many enterprises,” government cloud strategy and is an active contributor tosays Chirag Srivastava, head of CSC’s Mobility Center of Excellence. CSC’s global cloud computing initiatives. He recently served“However, the opportunities generated by mobility may instigate as a commissioner on the TechAmerica Foundation Big Datasignificant technology and organizational change.” Commission. He is frequently sought after for his opinions and perspectives by media, appearing on Federal News Radio andTo address that change, the center, based in Noida, India, WTOP News in Washington, D.C. He also participates in panelhas opened research and development laboratories in Noida, discussions at industry conferences, presenting frequently atHyderabad and Bangalore, created tools that speed solution technology and business solutions conferences.development, and established processes and project-executionmodels to help clients stay ahead of the mobility curve. This annual award recognizes CTOs within the region’s government contracting community for their critical contri-CSC has a legacy in mobility, creating mobile solutions when butions to achieving results for their customers and theirwired solutions weren’t viable, such as in space or deep in the leadership within their own companies. The winner wasearth. Today, the company’s mobility solutions continue to evolve chosen by an independent panel of leaders from the governmentwith innovation, providing a scalable, manageable, step-by-step contracting community.approach to mobile-enabling processes, people and assets.“On the road or in the office, business must go on,” says Watch Yogesh and His Team in Action:Srivastava. “Our approach is based on proven technologies and From Ideation to Reality — Inside a CSC ­process-transformation methodologies to help clients achieve Innovation Centerrapid results from their mobility investments.” csc.com/innovation. Learn more about CSC Learn more at Centers of Excellence at csc.com/newsroom. csc.com/COE. WINTER 2013 | CSC WORLD 5
  • 8. Heard on CSC.com Experts inside and outside of CSC are coming to CSC.com to make their voices heard, in CSC Town Hall webcasts, our online communities and our Ingenious Minds blogs. Here are some highlights. Cloud cover In years past, when you spent time making IT better for your agency, you were probably making it harder to communicate with other agencies. Now managers see [cloud computing] as a way to jump over cultural and technical barriers they had created in the past. You don’t have to blow up what everyone has; you just build over it with applications offered as a service. The new breed Gen. Michael Hayden Former CIA and NSA Director of data scientist csc.com/townhall/shadowIT If you are having a hard time finding and hiring data scientists, you are probably looking for them in the wrong places. Data scientists are not necessarily graduating from universities with degrees in math, statistics or science. They could be graduating from your local school of art and design with a degree in digital media. … There is a massive shift around analytics that our current university graduate is not prepared for. Most university graduates know how to use various analytical tools. They also understand the statistics underlying the tools, but they cannot “abstract” or “story tell” as is demanded in the current market. Gary Jackson Director of Business Analytics at CSC csc.com/ingenious_minds/blog/Gary6 CSC WORLD || WINTER 2013 CSC WORLD WINTER 2013
  • 9. Understand the Practical BYOD challenge innovation The bring-your-own-device (BYOD) trend requires a lot of architectural planning and engineering, and it’s People tend to think of innovation treated just like any large-scale business transformation as cutting-edge technology, project. It requires everyone — help desk, network pie-in-the-sky. But innovation engineers, server admins, architects of a dozen talents, is also about cost, figuring out accountants, legal experts and most important of all, end how to deliver a product a number of times more users — to come up with a solution that’s a) workable; cheaply. I think that’s going to become increasingly b) useful; c) affordable. Using your iPhone to check your important as you have a government customer with a company email might seem effortless and easy, but it’s constrained amount of funding that will be looking for complex stuff. If we’re doing it, we need to know what low-cost providers for the solutions it needs. we’re letting ourselves in for and how much of an open season we really want to declare. Joe Anselmo Editor-in-Chief, Aviation Week & Space Technology magazine Mikio Tsunematsu Town Hall: “Aerospace & Defense Industry Searches for Solid Ground” Networks Specialist csc.com/townhall/aerospace_defense CSC Blog in CSC’s CIO Engage community community.csc.com/community/cio-engage/byo-pita Rise of the machines ValueMachine-to-Machine: It’s the Internet of the future. Therewill be two or three major distribution chains that will use evangelistsmore and more machine-to-machine or credit-card-by-phone Organizations have at least three ways to get value fromnetworks to sell you, say, a Diet Coke at a ball game. In fact, IT: better management of IT itself, better management ofthe Olympics in Brazil will be a total M-to-M type of Olympics. business processes, and enhancing the customer experience, through smart uses of data, new services or new products.Siki Giunta We need to raise awareness about the kind of value ITVice President and General Manager, Cloud Computing can bring to an organization, and then the senior leadershipand Software Services at CSC team needs to be clear about who in the organization is csc.com/cloud2013 responsible for pursuing and achieving and sustaining those three sources of value. Nils Fonstad Associate Director, INSEAD eLab Town Hall, “CIO Barometer: The Rapidly Evolving Role of IT Leadership” csc.com/townhall/CIO_barometer WINTER 2013 | CSC WORLD 7
  • 10. Cover STORY Avis Budget’s Road to Customer Value Inside the Company’s Journey to Grow Revenue with Big Data Analytics by Chris Sapardanis Technology is disrupting the rental car business. In a post-recession market, intense competition is forcing companies to offer new and better services to customers. The resulting touch- screen kiosks, mobile apps and car-sharing options are recent proof of a global $50 billion industry’s innovation awakening.8 CSC WORLD | WINTER 2013
  • 11. For Avis Budget Group, a leading global vehicle rental services Working with a big data team from CSC, Avis Budget began onecompany, and the only one operating two truly global brands, a of the most important programs in the company’s history.new emphasis on technology, data analytics and marketing couldhold the key to achieving significant growth in the United States Their first goal: grow market share. “Avis is the leader inand abroad. commercial car rental in North America,” Gartland says. “We have the No. 1 position when we talk about car rental forA postrecession plan commercial travelers and a 64% share of their wallet. But we stillBack in 2009, nobody was talking about big data. In the midst of have the opportunity for an additional 36%.”the Great Recession, with millions of jobs lost in the United Statesbetween Sept. 2008 and Sept. 2009, companies were cutting The same is true of Budget. “Budget is more of a leisure brand,back significantly on employee expenses such as business travel, and we have about 45% share of wallet with the normal Budgetand the uncertain economic outlook led many consumers to client,” he says. “How do we capture that incremental 55%postpone or cancel their leisure travel plans. share of wallet, so in their decision set they’re always thinking of using the Budget brand? If we could do that, we could addThe recession’s toll on travel meant a reduced demand for rental over two billion dollars of incremental revenue to the Northcars at airports, which lowered revenue for rental car companies. American business.”But instead of keeping their heads down until the economicstorm passed, executives at Parsippany, N.J.-based Avis Budget A customer-centric planbegan formulating a plan to identify new opportunities and grow The result of Avis Budget’s strategic planning during thetheir business using customer data. downturn gave birth to the company’s focus on CRM. A customer value segmentation roadmap would be the starting“The recession was the time to revise our strategic thinking, point. CSC was chosen to help implement a program that wouldand say, ‘When we come out of this, and we will come out of it, enable Avis Budget to derive new insights from their customerwhat is the investment that our company should make in order data and take informed channel-specific actions to marketto enhance the post-recession customer’s experience and drive programs and services.loyalty, revenue and profit for the company,’” says Tom Gartland,president of North America at Avis Budget Group. “Before we arrived and started to work with Avis, the company was a transaction-based company,” says Alex Black, a senior“When we first started talking about a customer relationship partner in CSC’s Analytics Insights and Information practice.management (CRM) and loyalty program, the car rental industry “Avis had a lot of transaction information but none of it waswas seen by many as a commodity business,” he says. “We had aggregated by customer.”the opportunity to change that paradigm, that by the rightcustomer execution, service excellence and an enhanced loyaltyprogram, we would be seen by our potential clients as differentfrom competitors.”Data-driven growthIn the information age, data is a valuable asset. Research firmIDC is predicting a big data market that will grow revenueat 31.7% a year until it hits the $23.8 billion mark in 2016.For companies such as Avis Budget, the potential to minetheir data — and derive actionable marketing insights — ispractically limitless.CSC defines big data as data that consists of large volumes, highvelocity or variety. Avis Budget’s challenge concerned elementsof all three components. The company had significant volumes oftransaction data that needed to be analyzed for real-time actions(offers, service treatments, etc.) and an accelerating volume ofunstructured data coming in from its website, call center, emailsand social media channels.Alex Black, a senior partner in CSC’s Analytics Insightsand Information practice (left), and Tom Gartland,president of North America at Avis Budget Group WINTER 2013 | CSC WORLD 9
  • 12. cover STORY CSC’s initial work with Avis Budget was to help it define and After the lifetime value model was developed and approved, implement a customer-led, service-driven vision. Both the Avis implementation began. CSC applied the model to Avis Budget’s and Budget brands would benefit from the program. 40-million strong customer database. Customers were stack ranked from the top down into value segments. “What we were focusing on was to start with a customer- valuation approach,” says Black. “Let’s build a model, determine “Then we really focused on the top-value segments to drive who the most valuable customers are and figure out how to offers and treatments, as a way to engender loyalty,” Black says. concentrate on them by doing some extra special things. “At the same time we were careful not to discriminate against That meant a lot of data work, a lot of campaign-management lower-value customers because they might be high potential work and a full program that included really transforming the in the future. All of those nuances got involved in applying the entire organization.” results of the model.” Better service via data To validate the modeling, CSC helped Avis Budget develop and The car rental business seems pretty straightforward until you run six marketing campaigns powered by IBM Unica’s marketing pull the skin back. The complexity begins when one considers campaign management tool. Despite the extreme complexity of all of the different touch points and systems. “Ultimately, Avis running multichannel campaigns using a new system, in a short Budget is trying to create a differentiating experience every time time frame, the effort solidified the power of the customer model, someone rents a car,” Black says. “That’s a challenge, because and actually generated additional revenue while the program’s car rental seems like a commodity to a lot of folks.” work continued. The first step in the CRM program with Avis Budget was A 360-degree view developing a customer intelligence roadmap. In six weeks, The more you know about your customers, the better you can CSC delivered a three-year plan that outlined what business, serve them. Powered by IBM’s Master Data Management for technology and organizational projects were needed, broken Customer application, Avis Budget’s customer value scores are down by costs, timelines and dependencies. part of a 360-degree view of the customer that also includes rental history, service issues, demographics, corporate affiliation “A value model predicts a customer’s future value,” Black says. and customer feedback. “Avis had never done any customer value segmentation before. So this was a great starting point. It made a lot of sense to focus on, first and foremost, your most valuable customers and offer them a way to move the dial on their business.”10 CSC WORLD | WINTER 2013
  • 13. In order to develop further customer insights, CSC helped AvisBudget develop and launch an advanced analytics team namedthe Marketing Sciences Organization, including defining keyroles and interviewing candidates. Client: Avis Budget GroupFully launched six months ahead of schedule, Avis Budget’s new Challenge:focus on customer value segmentation is gaining steam. The • Maximize customer lifetime valuecompany is experiencing the benefits of big data analytics and • Meet customer service expectationsa customer database organized by brand, segment and other • Build customer loyaltykey factors. Solution:“The first thing our analytics told us was that we weren’t • A new Marketing Sciences Organizationcapturing all of the potential rentals from our existing clients,” • A new customer value modelsays Gartland, who is responsible for operations, sales, • A new marketing campaign and databasemarketing and customer care for Avis Budget across the United technology toolsetStates and Canada. “We were missing something — which wasreally rich data. And what the data said to us is that there were Results:opportunities to create relationships and provide offers that met • Improved customer loyaltyclient needs.” • Improved profitability • Increased revenue by $200 millionThe data also told Avis Budget that there was significantopportunity for customer upgrades. The company now has theinformation to appropriately enrich offers to upgrade, based on About Avis Budget Group:customer loyalty or different value propositions. The project has Avis Budget Group is a leading rental car supplieralready helped Avis Budget increase incremental revenue by that serves the premium commercial and leisure$200 million. segments of the travel industry. Budget also operates one of the leading truck rental businesses in theUnstructured social data United States.A major source of unstructured data for Avis Budget is social Avis Budget Group and its subsidiaries andmedia. In fact, that’s a growing trend for most companies. The licensees provide a range of vehicle rental servicesNielsen Company found that one in three social media users through 10,000 rental locations in approximatelywith a customer service issue prefer to use social media, instead 175 countries. The company has three operatingof calling the company’s customer service department. regions: North America; Europe, Middle East & Africa (EMEA); and Latin America/Asia Pacific. Avis Budget“Today, any given company can have a customer service Group has approximately 29,000 employees and isproblem that can go viral, and then the whole world knows headquartered in Parsippany, N.J.about it within hours or days,” says Gartland. “Companies thatfail to immediately address customer service problems, whodo not manage these situations as potential customer recoveryopportunities, are putting their brands at risk.” Watch our Avis Budget Group Success Story Videos atTo manage the company’s presence in the social space, as csc.com/avis.well as collect valuable data, Avis Budget’s global social mediateam monitors mentions of the company’s brands acrosssocial channels.“We have a recovery process in place, so if it’s a complaint or acustomer service issue, we can recover immediately, or reach “We are now able to understand whether it’s a customer offer,out to that customer and solve the problem,” Gartland says. whether it’s a customer complaint, or whether it’s an opportunity to recover if there’s a customer service issue,” Gartland says. “WeIn addition to improving customer interactions, CSC is helping now better understand the lifetime value of the people in ourAvis Budget capture this unstructured data. During the database. And we can change our behavior. Our behavior cancustomer value model implementation, CSC led a side project match the customer service expectation and the value of thatcalled a “voice-of-the-customer” roadmap. This project identifies customer for life.”the sources of feedback, figures out how that data can beharnessed and then puts it into an environment where it can beanalyzed and acted upon. CHRIS SAPARDANIS is a senior editor on CSC’s digital marketing team. WINTER 2013 | CSC WORLD 11
  • 14. 4 Big Data ways by Sashi Reddi Big Data Will Transform Business Big data is poised to Big data expands customer intelligence From a customer’s perspective, it’s a simple question to answer: exploit previously “Don’t you remember me?” For any enterprise with hundreds to millions of customers, that recognition doesn’t always happen. That’s changing. As our spotlight on Avis Budget notes, the untapped efficiencies, 1 company uses big data to identify its most valuable customers today and tomorrow. And it’s doing so without penalizing deliver new innovations customers who aren’t frequent renters. and create value. How? Big data differs from narrow applications that look at just one source of data, yielding small answers. Big data examines a broad range of sources that include structured information such as purchase histories, customer relationship management He didn’t realize it, but the ticket agent at the counter was (CRM) data and intelligence from industry partners, as well as about to make an expensive mistake. unstructured information such as social media. In the case of the airline, those partners could include credit card companies, “He said he could put me on standby — no problem — and I hotels and other travel industry sources. felt grateful,” recounted a colleague, telling me of her recent misadventure. But then he said, ‘That’ll be $75 for the change.’” Big data analytics also brings unstructured data into the fold, The agent didn’t know, and his system couldn’t tell him, that information gleaned from social media feeds, blogs, videos and even though her longtime elite status had expired with this other sources. Sorting through this information would have particular airline, my colleague was still an avid traveler whom helped the airline answer a big-picture question that companies they might want to win back — one who rightly expected some have struggled for decades to answer: How do we treat all of small consideration, a nuisance fee waived, as thanks for her our customers like rock stars? past and, more important, her future loyalty. Expanding customer intelligence is just one trend. As the technology evolves, using big data will accelerate three other trends over the coming year.12 CSC WORLD | WINTER 2013
  • 15. CSC’s BIG DATA 2 AND ANALYTICS PRACTICEBig data improves operational efficienciesBig data will finally forge the last links of the value chain that We offer consultancy and solutions to help organizations gain competitive advantage by executing on insightswill help companies drive more operational efficiencies from gained through the combination of internal and externalexisting investments. information sources. If your challenge is determining where to find the right information and how to use it toThat feedback loop is created by data generated in the drive the outcomes you require, our Big Data & Analyticsfield, and it’s growing at a pace that’s hard to comprehend. experts can help.Sensors on a single commercial aircraft generate 20terabytes of data an hour. Automobiles are reporting back Learn more atdata collected from onboard sensors and dealer service csc.com/big_data.systems. And let’s not forget the growing tide of RFID-equipped vehicles, crates and packages.These incredible repositories of data, combined with machine- For example, a delivery company with trucks in the field canto-machine interaction, are fueling a new wave of predictive improve on first-generation, efficient-routing tools by usinganalytics, services that enable equipment such as airplanes to smarter tools that can anticipate traffic conditions alongdetermine their own maintenance schedule, alerting the supply certain routes at a specific time of day or create a new route inchain to ensure that the needed parts arrive at the right place response to information about an accident that just occurred orat the right time. information that’s input by the driver. 4Big data is moving from the realm of data scientists into No time to lose — big data and analytics go “as a service”everyday business transactions and encounters. In call centers, Building an internal big data department stacked withanalytics-infused CRM systems can review multiple data sources petabytes of storage, rows of blade servers and a team of datain real time to suggest offers that a representative can present scientists isn’t within the reach or a desired core competencyto a customer. At the doctor’s office, analytics integrated into a of every company. In an earlier time, spreadsheets were thehealth maintenance app may improve outcomes by presenting de facto tool and best friend of marketing managers, collectingthe physician with informed suggestions and next steps to data from campaigns and digesting it into rough but valuableconsider in treating a patient. insights. Ask them how that’s working now.Insurance companies, which have long been data driven, The avalanche of inputs from social media and otherwill benefit significantly from the introduction of big data. unstructured information that is characteristic of big dataIndustry-specific analytics will help them speed claims doesn’t fit the spreadsheet model any longer. The volume,processing while reducing costs and spotting potential fraud variety and velocity of data have made it too complex toby use of analytics-backed solutions that can determine analyze using old-school tools, and not everyone wants towhether a claim can be processed automatically or should be become a data scientist.flagged for review by a specialist. 3 That’s where data and analytics offered as a service will help.Big data + mobile means new business processes Companies of any size can employ big data by sharing a poolAs companies become more data-driven, it’s only natural that of scientists and resources, getting the expertise they needthose insights find their way into the hands of people who can without venturing beyond their core competencies or taking onput them into action. Mobility will accentuate the impact of big a big fixed expense.data on both customer intelligence and operational efficiencyby making everything immediately actionable. Armed with Speaking of expense, that brings me back to my colleague andimmediate decision-making capability and intelligence on your the ticket agent. How did she fare?mobile phone, you will be able to implement new businessprocesses that will change how business is done. “Well, I paid the fee because I really had no choice at that point,” she said. “But I do avoid booking with that airline whenAdding mobility to big data means enabling frontline I can.”employees with real-time insights, when and where they needthem. Those insights will come from blending data in motion That’s an important and expensive lesson. Maybe the issue— information that’s changing on the fly — with data at rest. isn’t whether we can afford to implement big data, but rather,Mobility also enables real-time data collection from the field, whether we can afford not to.adding to the pool of knowledge that will drive insights inanother part of the system. SASHI REDDI is vice president and general manager of CSC’s Big Data and Analytics group. WINTER 2013 | CSC WORLD 13
  • 16. big data Big Data Meets Presidential Politics by Jim Battey In winning the 2012 presidential election, the Obama campaign registration data and online habits. “They developed models successfully employed big data analytics to influence people and predicting who was most likely to vote and then targeted get them to vote. Analytics experts say enterprises can apply follow-up events at those people,” Black says. these same tactics to influence customers and drive sales. Social media played a prominent role in the election. During the The 2012 election was a watershed event for leveraging campaign, Deen Freelon, an assistant professor in the School technology in the political arena. Both the Obama and Romney of Communication at American University in Washington D.C., campaigns relied heavily on technology, but many observers say blogged extensively on the use of technology in the election. the Obama campaign tapped into the power of data analytics Freelon says that although more research needs to be done more effectively. to determine the impact of social media, “There is no question that both candidates took social media seriously.” He says the “Part of the reason for the Obama victory was the campaign’s best evidence of its impact is a study which found that people ability to mobilize the vote, and it used a lot of data to do that,” are more likely to vote if they learn, via social media, that their says Alex Black, who leads CSC’s Enterprise Intelligence Practice. friends will vote. The Obama campaign deployed a team of technologists who built a sophisticated data platform code-named Narwhal that As a by-product of the technology efforts, and the fact that proved highly effective for raising money and tracking voters. Democratic voters skew to a younger demographic, the Obama campaign maintained a lopsided advantage in social media Narwhal served as the technical backbone for campaign circles. (See: “Obama vs. Romney: By the Numbers.”) The operations, integrating data to enable functions such as experts say organizations can capitalize on lessons learned from customized email fundraising and identification of likely voters. Obama’s victory in the use of data analytics and social media. Obama campaign staffers used the system to analyze voters’14 CSC WORLD | WINTER 2013
  • 17. Obama vs. Romney: By the Numbers Barack Obama Mitt Romney 35.4 million Facebook Likes* 11.8 million 24.9 million Twitter Followers* 1.7 million $1.07 billion Total Funds Raised $993 million $690 million Funds Raised Online N/A 9 Swing States Won 1 65,367,939 (51.0%) Popular Vote 60,707,106 (47.3%) 332 Electoral Votes 206*As of Dec. 2012. Sources: Facebook, Twitter, New York Times, Time Magazine, Huffington Post. Watch an Inauguration Day videoAnalytics comes to the fore on Obama’s data-driven victory atObama’s victory confirmed the value of using technology and csc.com/BigData_Politics.data analytics. The technology side of Obama’s campaignwas organized into teams to oversee technology, digital and Learn more atanalytics. Engineers working for the campaign developed csc.com/big_data.tools such as Dashboard, an online organizing community, andObama’s analytics team developed The Optimizer, a tool forplacing television advertisements in front of the most optimal “Companies have a little bit harder time with engaging —audiences for the least amount of money. turning it into a relationship that is continuous — so it helps not only with the purchase, but also helps postpurchase activities,“The Obama campaign proved the power of big data,” says using the product or suggestions about the product,” BlackGary Jackson, CSC’s director of Business Analytics. One lesson says. He advises enterprises to employ a lot of different tactics,learned from the election is that enterprises can employ a and make social media a part of an engagement strategy.concept called the “psychology of analytics” to prompt action “Constantly review the analytics, build models and do a lot offrom a customer. Jackson notes that many companies spend testing and re-testing to see what works best.”a lot of time and money on big data projects only to end upfinding out the same insights they already knew. He calls it “Your Jackson says Obama’s team searched to find people who areMom’s Mom Is a Woman” analytics. The key for businesses, he the influencers and added them to social circles of people whosays, is using data analytics to target the right people. would actually vote for him in the states he needed to win. “He used the ‘psychology of analytics’ to drive the vote in his favor,”“The Obama big data team sought out those who were already he says. “Simply put, big data is about pairing up the ‘want to’sadvocates and did matchmaking using what CSC calls ‘affinity with the ‘have to’s.”ratios’ — linking people with the same life-style and life-stagedetails with people in their social circles to drive action,” Jackson Still, not all analytical data is useful and accurate. Companiessays. “We believe that customer behavior changes only when should beware of poll bias. “A lot of people think that wheninfluenced by other human beings — social circles — or by being there’s a sophisticated algorithm or model, it is statistically pure,compared to people like them.” yet we know many have bias in them. Whether it’s the bias of the researcher or the bias of the mathematician, all points in theDr. Freelon thinks there is no one-size-fits-all strategy that building of models and algorithms are subject to bias.”will work for every organization. “Just because Obama didit doesn’t mean it is right for everyone. Still, we do know the In the end, just as in political campaigns, success in business isObama campaign conducted rigorous message testing of its a matter of engaging customers. “This campaign demonstratedWeb presences to determine what content and style elicited the ability to reach people,” Black says. “We’ve got to get ourthe greatest responses from users.” arms around big data and social media and build an analytical framework so we can gain insights and figure out how theEngage your customers data is going to affect our businesses. Enterprises need toSimilarly, Black says the Obama team successfully engaged in learn how to use the data to come up with ways to improvemicrotargeting voters. “But the key is what you offer them, the operation.”and how you make it stick,” he says. So how can companiessuccessfully engage with their customers? JIM BATTEY is a writer for CSC’s digital marketing team. WINTER 2013 | CSC WORLD 15
  • 18. industry perspective Better Coordinated care makes a difference Research from across the world suggests that “coordinated care,” by which we mean actively managing the relationships among multiple care providers, can both improve health Coordination outcomes and decrease costs. By establishing well-understood care pathways and protocols, a coordinated care system can Better Health make a real difference for patients. The role of technology is clear: information flow, process management, administrative scheduling and record keeping. The technology provider’s requirement is to deliver robust integrated systems that embrace multiple, independent care providers. As we move farther into the 21st century, it will be the way systems work together that will drive improvement as much as the individual systems themselves. A key feature of successful coordinated care systems is the adoption of “evidence-based” medical practices. Clearly, adopting approaches that have been demonstrated to be effec- tive seems like a good idea. It is surprising then that Eric Topol, M.D., in his influential book, The Creative Destruction of Medicine, claims that “A large proportion of tests and prescrip- tions used frequently in medicine have little or no supportive evidence of utility.” He quotes The Institute of Medicine as a by Andrea Fiumicelli source supporting the claim. The massive improvement in human life expectancy was This is not the place to comment on the culture and practice of undoubtedly one of the great achievements of the 20th medicine. One thing is clear, though: The rising use of technology century. While there are still dramatic differences between in medicine means more electronically held patient data. It is a countries, people all over the world can expect to live longer scary thought that online retailers already have better systems than ever before, largely as a result of improved public health for understanding the motivations and habits of their customers and the wide availability of medical care. But as we start the than healthcare systems have for their patients. second century of mass medicine, healthcare systems are showing signs of serious stress, both in developed and Analytical techniques produce evidence developing nations. Applying analytical techniques to patient data will undoubtedly yield a rich source of evidence about populations as a whole, as It’s a complicated picture, but two factors seem clear: The well as insights that can transform the treatment of an individual activities of medical practitioners, no matter how effective they patient. We are already seeing analytics help healthcare payers may be in isolation, are often not well coordinated; and medical improve their businesses. The real health benefits will come interventions are often underpinned by surprisingly little when we use it to improve the provision of care — as, for evidence. Our health, it would seem, is an area where instance, with the CareVeillance solution described elsewhere in information technology can make a significant contribution. this issue. Most of us will have experienced the frustration of dealing with Take a look at any care setting and you will see technology in use. multiple clinicians, each an expert in his or her field but each Medical records and lab results are held electronically; in many with only a partial picture of the situation. In some ways it is cases, appointment booking and scheduling are computer-based; an inevitable reflection of the multiple specialties that make up and of course a wide range of medical devices are measuring vital medical care, but it is also a reflection that healthcare systems signs. In some hospitals, such as Cabrini in Melbourne, Australia, have not yet embraced systems that speed data flow through clinicians routinely carry iPads that give them immediate access their organizations. to patient data. The next step is to coordinate all of that technology across all Watch Andrea Discuss Technology of those care settings, and to harvest the data we are already and the Future of Healthcare at collecting. The foundation is effective next-generation technology csc.com/Future_healthcare. solutions; the result will be better health outcomes. Andrea Fiumicelli is vice president and general manager of CSC’s Healthcare Group.16 CSC WORLD | WINTER 2013
  • 19. regional perspectiveAustralia’sWorldof Opportunityby Gavin LarkingsAustralia is the center of the world. Don’t believe it? Well, doyou monitor energy use? Australia is among the largest naturalresources providers in the world. Concerned about the agingpopulation? To us, it represents a growing market opportunity.How about cloud computing, big data and other IT developments?These and other new technologies have been eagerly adopted byAustralian CIOs. Are you watching China? It’s our single largestforeign market.In fact, as Asia expands, so do our markets. To be sure, so installations slowed dramatically. But now, people are lookingAustralia, with nearly 23 million people, is nowhere near Asia’s to absorb cloud computing in a better manner, and as a result,size and capability; China alone has a population of more than we’re seeing the technology adopted across entire enterprises.1.3 billion. Yet Australia offers many of the vital products andservices that Asia requires. While Asian demand has temporarily Cybersecurity is another growing area of interest in Australia.declined, it’s still far more robust than that of, say, Europe. In Local clients are especially concerned about the risk of cyber-fact, we believe that Asia will remain the source of big demand attacks, especially in light of recent reports that China infiltratedfor Australian products and services over the next decade. Asia the systems of several U.S. newspapers. That’s a big area ofis where our business — both today’s customers and tomorrow’s concern for us, given that China is both a major diplomaticprospects — is growing. partner and a large industrial customer.While much of the world frets over energy use, Australia deals An aging population is another issue that Australia, along withwith it daily. Our natural resources sector includes mining, oil much of the Western world, must deal with — and another thatand gas, and these companies constantly seek greater effi- can be addressed with IT. People 65 and older now representciencies. One example is the adoption of automated trucks. about 14% of Australia’s population, according to the AustralianAustralia supplies great quantities of iron ore and other minerals Bureau of Statistics, while the proportion of those aged 85to China. With this technology, each scoop of minerals from a years and older has more than doubled in the past 20 years, tocrane is carefully measured, which means that trucks are always nearly 2% of the total.filled to precisely the same level. Similarly, Australia is also amajor recycler. In the past year, CSC Australia alone recycled One result: Healthcare has become an important component ofsome 675 kg. (approximately 1,490 lb.) of electronic waste. our national economy. IT can help. One of our healthcare solutions is a patient-administration service that can be provided remotely.Financial services is another critical domain for Australia. Four So if you’re in the hospital in Melbourne or Sydney, your physicianof the country’s top banks rank among the global top 50. Given could monitor your vital signs even while vacationing in Hawaii.Australia’s relatively small markets, that makes these banks These and other challenges represent vital new opportunitieseven more important to our overall economy. Also, Australia has where IT — and CSC — can help chart the future.several large financial services and insurance companies. One ofthem, AMP, has been a client of CSC’s for more than 40 years. Gavin Larkings is vice president and general manager of CSC Australia.Technology for the businessAustralia also is a leader in the transformation of business by IT. Watch Gavin in the Video: Fueling theBig data, cloud computing, virtualization and mobile tech- Australian Economynology are all game changers here. But the emphasis is always csc.com/AUSperspective.on the business, never on technology for its own sake. Cloudcomputing is a case in point. The business results of early cloud Learn more about CSC Australia atimplementations left many Australian companies disappointed, csc.com/au. WINTER 2013 | CSC WORLD 17
  • 20. Financial services iPad App Appeals to Younger clients by Kim Henri Vandenhoute As one of the oldest independent banks in Europe, Paul Timmermans, managing director at Van Lanschot, says the Van Lanschot has kept in step with client needs expansion of the firm’s client base brought in a wave of younger customers in their 30s and 40s who expected online banking consistently over its long history. But even this services at a higher level. “These are clients who are very familiar centuries-old firm was surprised by the rapid with the online world in both their professional and private lives,” change in customer preferences. he says. “They expect to have online access to both their invest- ment portfolio and the information that we offer them in our Early versions of Van Lanschot’s online presence capacity as asset managers and investment advisors.” were limited to online payment services and Designing a future-oriented platform statement viewing. The firm felt customers would Recognizing a significant change in customer needs, Van continue to put greater importance on private Lanschot engaged CSC to develop a new Web portal. Original banking than online access. But it soon became features such as investment portfolio viewing were given a clear that the next generation of investment fresh look. New features were added, including access to a wide range of personalized financial information and research. banking customers expected a different banking experience — one where tablets play a key role. Portal architecture was designed for performance on a wide range of browsers and devices — a notable upgrade from the previous system. Every aspect of the system was designed to be as flexible as possible to accommodate ever-changing customer needs. Client: Van Lanschot The industry quickly took note of the Van Lanschot project. Challenge: Banking & Finance recognized the firm’s new portal winner with • Improve the banker’s online presence and services its 2011 ICT Innovation Award. for customers. • Offer more services that are attractive to all (and Following a successful rollout, the firm began anticipating especially younger) generations. additional services it could offer from its new platform as it sought to evolve a new multichannel organization. The evolution Solution: of tablet computers presented the firm with an opportunity to • A new multi-channel solution consisting of a new secured extend its innovative portal services to this new class of devices. Web portal, which features a fresh look for investment portfolio viewing and upgraded personalization functionality “We saw the steady rise of mobile devices, the tablet in particular, for research and financial information. An app for iPad was with the iPad in the lead,” Timmermans says. “With the new portal also developed. as a base to expand from, it was clear we could immediately seize the occasion. iVan Lanschot would soon be a reality.” Results: • The new portal is flexible, supporting a wide range of The change from a face-to-face, single-channel institution to browser versions. one that serves customers via multiple channels isn’t a task that • A specific app providing advanced portfolio management happens overnight. Timmermans says it required a commitment services is also available for the iPad. from the firm’s business group at all stages of the process, from the original design through delivery.18 CSC WORLD | WINTER 2013
  • 21. down results by region, sector, share prices and more. iPad users also have access to all the research Van Lanschot offers, anytime, anywhere. The resulting iPad application “The whole idea fits into the concept of private banking. With makes Van Lanschot one of the Van Lanschot Private Banking Online and iVan Lanschot, we are clearly differentiating ourselves from our competitors,” first private banks to offer financial Timmermans says. Recognizing the application’s popularity and client service capabilities, Van Lanschot’s Netherlands-based information and research to clients parent company has announced plans to make the application available to clients of other subsidiaries. “We’re quite proud that on a tablet computer. an initiative from a modest subsidiary was taken up in that way,” Timmermans says. For Van Lanschot the success of its iPad application confirms the institution’s strategy; a multichannel approach with a centralOf the firm’s 140 employees, seven members of the business focus on Internet access and mobility. Timmermans expectsgroup provided critical validation at each step, taking a leading that the investment will continue to provide multiple returns asrole on the project. The entire 10-member IT team was involved application use increases. “It’s ultimately about more than that,”as well. The firm also supported the change with a large dose Timmermans notes. “Our clients are just very happy that we canof business transformation coaching to ensure that everyone provide them with a solution via their iPads. And that may bewas prepared. the most valuable return of the project.”From a technical perspective, making the Van Lanschot portal Kim Henri Vandenhoute is a senior consultant foraccessible from a tablet required the coordination of multiple Multichannel Service Offerings, CSC Financial Services.technologies and companies, including IBM for mainframedevelopment, Thomson Reuters for front-office software,Clear2Pay for online payment and UnifiedPost for the delivery Learn more atof digital account statements. csc.com/banking.Effective project management was a key success factor,Timmermans says, noting that a part of the bank’s systems ishosted at IBM and Accenture in the Netherlands. “Initially, wewere going to manage the project ourselves, but we finallyentrusted that aspect to CSC,” he says. About Van LanschotAny undertaking of this magnitude often uncovers the need With a history of more than 270to make additional changes. Van Lanschot’s iPad applicationdevelopment was no exception. Designs called for an update to years, Van Lanschot is one ofThomson Reuters’ eXimius front-office software and improve- the oldest independent banksments to Van Lanschot’s server park, both significant projects intheir own right. in Europe. Its focus is on private banking and providing servicesCSC’s plan to make the maximum use of Web services resultedin a solution based on a service-oriented architecture and related to asset management andhoused in a cloud infrastructure. “It was a good idea to further investment advice. Van Lanschotdevelop the underlying systems along with the modernizationproject that we carried out. Everything now runs with greater manages approximately €50 billionstability than ever before, exactly as an iPad user would expect,” of assets. The Belgian subsidiaryTimmermans says. was created in 1992 to serve DutchOffering information and research in a new way customers settling near the BelgianThe resulting iPad application makes Van Lanschot one of thefirst private banks to offer financial information and research border. Since that time, the firm hasto clients on a tablet computer. Clients receive a structured expanded into the Belgian market.view of their investment portfolio, including a clear overviewof risks, returns realized and maturities. Investors can break WINTER 2013 | CSC WORLD 19
  • 22. Financial services Is That Really You? Authenticating your identity for online banking leaps forward with mobile devices. by Dale Coyner When was the last time you stood in line at a bank? It’s probably been a while. Instant payments, paperless check deposits and one-touch transfers have made online banking wildly popular with customers. And as virtual banking grows, the threat of fraudulent payments and identity theft rises as well. Financial transactions have always been a popular target for thieves, although the nature of the threat has changed over time. Mike Groat, partner executive at Daon, a CSC partner that supplies identity assurance software for CSC’s ConfidentID™ Mobile platform, says it’s more profitable today to conduct financial fraud electronically. “Financial institutions face a number of threats, and adding online and mobile banking increases the number of potential avenues for thieves,” Groat says. “You have direct assaults on a financial system as well as ‘man-in-the-middle’ attacks that try to get between customers and banks. That is becoming more prevalent with the use of mobile devices.” Fraud isn’t limited to hackers pounding on a bank’s firewall. Sometimes it’s an inside job, Groat says. “Some of the largest losses come from employees who misuse funds, engage in unauthorized after-hours trading or [make] transactions that don’t follow policy,” he says.20 CSC WORLD | WINTER 2013
  • 23. Despite the risks, the popularity of online and mobile bankingservices (and attendant cost savings for banks) means that Authenticatefinancial institutions will continue to develop and extend them,even as the variety and sophistication of cyberattacks grow. with ConfidenceDoes mobility equal security? CSC’s ConfidentID Mobile User Authentication is aOn the one hand, the use of smartphones and tablets provides biometric-enabled authentication solution that helpsmore devices for cybercriminals to target with malware and you verify your customers’ identity beyond a shadowTrojan apps that go after sensitive personal and financial data. of a doubt. Powered by Daon’s IdentityX engine, thisConversely, those very same devices are playing an increasing offering is part of the ConfidentID Mobile Securityrole in making mobile banking the most secure channel. Portfolio, CSC’s flexible, many-layered approach to secu- rity in the online banking environment.Geoffrey Weiss, director of channel solutions for banking andcredit services at CSC, says that having a second, independentdevice involved in a transaction improves fraud deterrence. Learn more at“For example, while you’re making a money transfer on your csc.com/ConfidentID.computer, this other device that’s not a party to the transactionor ‘out of band’ can verify your action,” Weiss says.That’s just the start, Weiss says. Smartphones are becomingmore capable with each revision, with more processing power There’s more to come, too. Todd Hawkins, CSC’s director ofand onboard features that can be used to verify a person’s Identity Management Business Initiatives and ConfidentIDidentity with certainty. portfolio manager, anticipates that smart devices will gain the ability to perform more verifications as onboard hardware“This allows us to verify a person’s identity based on more improves. “Within a generation or two, we’ll have cameras onthan one factor,” Weiss adds. “The most secure solution phones with enough resolution to take a picture of your iris tocombines several checks. If you put together something you verify your identity,” Hawkins says.know, like a PIN, something you have like a phone, and physicalcharacteristics like voice recognition, and even where you are, “We are using mobility to secure the mobile channel, as well as,that is the basis for a secure transaction.” using the mobile channel to secure more traditional channels like logical, remote and physical access,” he says.You’re holding the answerCollecting all those factors in an easy-to-use way makes Transparent authentication is the keytoday’s smartphone the perfect platform for verifying an Using built-in capabilities such as the camera, microphone andindividual’s identity. Solutions such as CSC’s ConfidentID touch-screen is critical to the success of identity authenticationMobile use mobile devices to perform identity verification for for consumer applications such as mobile banking.transactions conducted on that device, or as an additionalcheck for Web-based transactions. Weiss says that any solution aimed at improving the security of financial transactions has to be seamless. It has to be familiar andFacial recognition is managed by the onboard camera while easy to use,” he says. “That’s the advantage of ConfidentID on athe microphone picks up the spoken PIN. The number is mobile device. Solutions that rely on special hardware you haveverified, as well as the speaker’s voice. Ownership of a device to add or configure create cost barriers and usability barriers.”can be confirmed to correspond with an account holder.Location matters, too. Using the built-in GPS receiver, location Hawkins agrees. “When you consider how much special hardwarecan be compared to an owner’s address. If you usually circulate it used to require to perform biometric authentication, it’s easyaround Atlanta but a transaction request is on a mobile device to see why it wasn’t suitable for this type of application. Mobilenot registered to you and located in, say, eastern Asia, that devices remove many of those barriers.”raises a red flag. That advance, Hawkins says, has laid the foundation for anLiveness is another factor that today’s powerful devices can easy-to-use, multifactor solution for high-risk transactions thattackle. Every voice has unique speech patterns, tone and timbre requires nothing more than the device you’re holding in thethat can be analyzed. Your face does, too. Adding a factor of palm of your hand.liveness to the mix eliminates the possibility that someonecould employ low-tech covert tactics such as a voice recording “ConfidentID Mobile ensures that you are who you say you are.or a static picture to spoof the system. Beyond a shadow of a doubt.” Dale Coyner is a writer for CSC’s digital marketing team. WINTER 2013 | CSC WORLD 21
  • 24. Healthcare Scientists Explore the Origin of Outbreaks Online by Jim Battey Client: National Library of Medicine (NLM) Challenge: • Provide IT infrastructure support to meet high volumes of Internet traffic and help keep the world’s largest medical repository up and running 24x7. • Digitize and provide online access to a vast collection of historical medical materials. Solution: • Designed and deployed a “best of breed” open source software solution to enable the digitization of thousands of historical documents, photos and videos. • A veteran CSC team delivers technical expertise, development skills and local knowledge to provide ongoing support. Results: • Higher infrastructure capacity, improved security, 24x7 availability of online resources and more efficient use of NLM computing resources. • Ongoing success of the Digital Collections project and reliable worldwide access to online resources, enabling more than one billion searches each year.22 CSC WORLD | WINTER 2013
  • 25. When scientists need access to information on medical topics Tom Gigl, CSC’s program manager for NLM, says that CSC’ssuch as human genetics and flu outbreaks, they turn to the local knowledge and a strong partnership with CSC strategicNational Library of Medicine (NLM). As part of the world’s teammate AAC Inc. are also indispensable. “We’ve been fortunatelargest repository of healthcare information, the NLM is home to to have the bulk of our team providing the same services forvast resources, including the principal DNA sequence database, five-plus years. The people on the ground have a lot of experiencea key resource in researching the genetic factors underlying as well as local knowledge of NLM.”human diseases. Medical resources go digitalFounded in 1836 and located on the campus of the National CSC’s local knowledge came in handy when the NLM undertookInstitutes of Health in Bethesda, Md., NLM plays a critical role in an ambitious digitization project in 2006. A massive digitalenabling biomedical research. Elements of the library’s collection of preservation repository, known as Digital Collections, givesmore than 18 million books, journals, manuscripts and audiovisuals online visitors access to a wide range of historical medical-have been digitized and made available online. related materials, all of which are in the public domain.NLM’s resources are searched more than one billion times each Wei Ma, NLM’s applications branch chief, who led the digitizationyear by users around the globe. Using a combination of local efforts, says, “The content people are like librarians. They knowknowledge and technical expertise, CSC teams with NLM staff the content very well and know how to prioritize which historicaland other contractors to support the shared communications and books and videos should be digitized first.”security infrastructure that helps NLM make these biomedicalresources available to the public and research community. Now, hundreds of rare documents, videos and photographs can be accessed free of charge. Ma says the resources are especially24x7 availability is imperative useful to epidemiologists studying the origins and outbreaks ofSuch an essential collection of resources needs to be reliable diseases, such as the 1918 Spanish flu epidemic, which infectedand secure. Since 2001, CSC has provided IT infrastructure some 500 million people.services that help the library run efficiently. Over the years,CSC’s work has included support for desktop and server In planning the digital repository, the CSC and NLM teamcomputing, communications networking, application development worked together to evaluate and then recommend a leadingand IT security, as well as support for green initiatives and data open source software solution. The open source suite hascenter reengineering. Fedora Commons, a digital asset management architecture, at its core, combined with open source image server andWes Russell, the NLM’s head of network engineering, says CSC book viewer software. The repository is more than just a Webdelivers services in a reliable, efficient and effective manner. “It’s application or database. Using semantic Web technology, itall about the technical staff and their expertise, their knowledge, stores manifestations of content that describes and interrelatesskills and dedication in being able to support our multiple and the materials using descriptive metadata.diverse systems,” Russell says. A user looking for specific content in a video, for example, canNLM requires that services are run 24x7 to continuously support pinpoint just the part that is related to a search and not havethe global medical community, and, Russell says, “The staff to view the entire video. “Without the strong contribution ofis dedicated to doing that. They’re willing to work off-hours the technical development team, the Digital Collection projectand deal with issues, as well as work with other teammates to wouldn’t have been successful. CSC staff, as part of theresolve those problems to keep our services up and running.” technical development team, did a great job supporting the Digital Collections project,” Ma says.Russell points to cybersecurity as a good example of how CSCis able to meet a significant technical challenge. CSC helped Russell adds, “CSC is involved in technical support of thereengineer NLM’s internal network, which included the design communications and security infrastructure that enables makingand implementation of a number of security zones separated by the library’s systems available to researchers and the public. If itfirewalls to protect various sets of private resources that have wasn’t for these reliable IT services, NLM’s mission of enablingrestricted access. biomedical research, supporting healthcare and public health, and promoting healthy behavior could not be fulfilled.”“CSC staff was integral in implementing those systems andmonitoring our security, as well as responding to any kind ofincidents we might have, which are rare, but they do happen. Soit’s very important for us,” Russell says. Jim Battey is a writer for CSC’s digital marketing team. WINTER 2013 | CSC WORLD 23
  • 26. Healthcare Technology Helps Fight a Deadly Disease by Jenny Mangelsdorf The numbers are staggering. At least 1.8 million A key challenge with sepsis, which is a treatable condition when people die from sepsis each year, and some say caught early, is how quickly it becomes fatal. The chance of death rises about 1.5% every five minutes treatment is delayed, that the bloodstream infection really kills closer to with the mortality rate jumping to 50% if treatment for septic 18 million worldwide. What’s worse is that those shock is delayed more than four hours. numbers are growing, fueled by an aging population and antibiotic-resistant infection. “Fortunately, quickly catching sepsis is something our tool excels at,” says Bryan Eckert, CSC Health Delivery Group senior principal. “Sepsis is going to be the dominant feature in the A pioneering software tool medical landscape,” says Steven Simpson, professor CSC developed a tool called CareVeillance™ Clinical of medicine, Division of Pulmonary and Critical Care Surveillance, while working with the hospital, which is the Medicine at The University of Kansas Hospital and region’s premier academic medical center and one of the first co-director of the hospital’s sepsis team. “There’s no participants in the international Surviving Sepsis campaign. escaping sepsis unless we do something about it.” CSC drew on its legacy of software development, data inte- gration and data aggregation skills to create the tool, which Since Simpson’s team began working to cut sepsis integrates patient data from disparate systems, analyzes and mortality rates in 2005, the hospital has seen its connects this information, displays consolidated clinical data rates drop from 49% to 22% and savings increase by focused on the condition and alerts clinicians that a patient is $18 million annually. However, for Simpson and the showing early signs of sepsis. hospital, that is not good enough. “In a pilot project we are finding that CareVeillance is a very useful tool and is almost always correct,” says Simpson, who Learn more at adds that they have found that CareVeillance is more than 99% csc.com/health_services. sensitive in its ability to find sepsis when it’s present and highly accurate in diagnosing the disease. “CareVeillance is helping us identify an extra two or three patients a day,” says Simpson. Saving lives with technology Client: The University of Kansas Hospital Unlike existing electronic health record (EHR) and data warehouse systems, CareVeillance leverages new EHR data Challenge: about a patient and compares it, using complex clinical • Lower patient mortality rates from bloodstream infection algorithms, to existing data to identify conditions requiring • Speed detection of sepsis, a leading cause of death investigation or intervention. This gives caregivers the earliest in hospitals possible opportunity to assess and treat at-risk patients and to • Leverage electronic health record data aggregation ensure that best practice measures are delivered during critical and integration time frames. The solution also acts as a predictive tool to identify patients at risk for re-admission. Solution: • CSC’s CareVeillance Clinical Surveillance tool In addition to saving lives, the tool promises to save in other ways, too. Since its development, CSC’s tool has been certified Results: as an inpatient EHR module for quality reporting. By 2015, U.S. • Fewer readmissions and reduction of critical care hospitals that do not demonstrate meaningful EHR use will be length of stay subject to reductions in Medicare fee reimbursements. • Decreased costs • Reduced mortality rates Jenny Mangelsdorf is a writer for CSC’s digital marketing team.24 CSC WORLD | WINTER 2013
  • 27. ConnectCareCollaborate Coordinated care is essential to meeting the healthcare expectations of people across the world. You need a technology provider who can make all of your systems work together. CSC is a global provider of next-generation technology solutions serving public and private sector healthcare clients in provider, payer and life sciences. Our products and services support coordinated care, providing superior returns on technology investments for our clients and improving individual and population health outcomes for everyone. Learn more at csc.com/health_services. WINTER 2013 | CSC WORLD 25
  • 28. CYBERSECURITY How Hospitals Can Immunize AGAINST hackers by Jared Rhoads, Richard Staynings and Ashif Jiwani Cybercrime and data breaches are among The full cost of a breach, however, goes far beyond the fines. According to Ponemon Institute, the cost of identifying and the most commonly cited worries keeping notifying affected individuals — now mandatory under the healthcare CIOs awake at night. Recent law — is on average $214 per record. There are also intangible costs associated with compromised trust and reputation, as surveys show that roughly three-quarters well as other significant costs, including harm to health, or of healthcare organizations have suffered even death. some kind of data breach or security Cybercrime is well-organized, and cybercriminals will go incident in the past 12 months. after valuable information wherever it resides, including within healthcare organizations. Typically, cybercriminals do not distinguish based on public versus private sector, type Hospitals and other healthcare organizations need to broaden of institution or other such factors. Instead, they target the their focus on compliance and pursue a robust, integrated, most valuable information and sell it to the highest bidder. enterprise-type approach to securing data and other According to the World Privacy Forum, a stolen medical key assets. identity has a street value of $50 today, compared to $14 – $18 for a credit card number or $1 for a Social Security number. Under the U.S. Health Information Technology for Economic and Clinical Health Act, hospitals and other organizations Most hackers who infiltrate health IT systems are seeking can be fined up to $1.5 million per year for serious financial data, not medical information. In an analysis of 855 security incidents. data breaches involving more than 174 million records from the healthcare, financial services, retail and hospitality Recently, the Department of Health and Human Services’ industries, researchers found that such breaches are “almost Office for Civil Rights issued for the first time a financial entirely the work of financially motivated organized criminal penalty for a non-major breach (i.e., a breach affecting fewer groups, which typically attack smaller, low-risk targets to than 500 individuals). In this instance, a hospice company in obtain personal and payment data for various fraud schemes,” Idaho that reported the theft of a laptop will be required to according to a Verizon Communications 2012 Data Breach pay a $50,000 fine and agree to a corrective action plan. Investigations Report. The incident is believed to have affected 441 individuals.26 CSC WORLD | WINTER 2013
  • 29. BYOD presents new weaknesses A recent review of healthcare data breaches found that nearlyCybercriminals constantly target new areas of perceived weakness. two-thirds persisted for months before they were detected,Three of the newest trouble areas for healthcare organizations giving criminals ample time to do damage.are mobile devices, portable media and medical devices. Staying current with cyberthreats can be challenging,Mobile devices are targeted by cybercriminals interested but IT security should not hinder an organization’s growthprimarily in identity and financial theft. Although most breaches or prevent it from using data assets to improve care delivery,still come from laptops and paper records, breaches related quality and financial performance. With increased vigilanceto mobile devices are rising the fastest. According to a recent and the right technological tools, healthcare organizations canCSC survey of IT executives, 57% of respondents named mobile achieve true confidence in their cybersecurity.clients and unmanaged devices their top security challenge.Resisting the bring-your-own-device (BYOD) movement, Jared Rhoads is a senior research specialist with CSC’s Globalhowever, is not the best solution. Rather, organizations Institute for Emerging Healthcare Practices.should design a secure way to allow employees to use their Richard Staynings is a CSC cybersecurity and privacy officer.own equipment to do their work without increasing risk to Ashif Jiwani is a partner with CSC’s Healthcare Group.the organization.Portable media is another prime target, especially forcybercriminals interested in identity theft, insurance fraud andfinancial theft. Loss and theft of portable media have affectedmore individuals than any other type of breach. Besides setting 5 Ways to Protect Healthcare Dataand enforcing clear policies and procedures surrounding theuse of portable media, it is important to employ technical Regardless of your current risk profile, consider these ideas andsafeguards as well. recommendations at your next high-level security meeting:Medical devices also need protection. These devices are a 1. Deploy advanced network monitoring. Organizations neednew target of choice for cybercriminals out to wreak havoc automated tools to assess vulnerabilities and look for breaches. Seek out advanced tools to self-test the effectiveness of yourby causing equipment failures and malfunctions. To date, no firewall and consider egress solutions, which automaticallymedical injuries in the United States have been reported as a monitor what is being sent outside the walls of an organization,result of infected medical devices, but sophisticated malware where it is being sent and when.has been “running rampant,” according to some governmentofficials and hospital IT staff. 2. Develop a 21st-century strategy for mobile devices and medical devices. You cannot fight the bring-your-own-device movement, but you can manage it and help employees makeGaining cyberconfidence good decisions. Embrace security practices that are easy forWith lives at stake, security must involve more than locking end users. Try integrating part of the IT security function withdown individual applications and systems; today’s threats the biomedical engineering services department.require a holistic approach. Achieving cyberconfidence enablesorganizations to engage securely with patients, partners and 3. Make system authentication multifactor and adaptive.others in a context of mutual trust. It is the knowledge that the Multifactor authentication systems are much preferred over systems that use only passwords. Multifactor systems areorganization can react to any threat or incident with speed expensive and take a long time to deploy, so get a head startand agility. before they become required.One step toward cyberconfidence is performing a 4. Test yourself by contracting with ethical hackers. Usingcomprehensive risk assessment. An organization can undertake ethical hackers to try to find exploits from the outside can helpits own risk assessment or enlist the help of outside experts. to identify more obscure vulnerabilities that may have been overlooked. Ask ethical hackers to test your technical environ-Publicly available tools also can help. ment as well as the training of your staff (i.e., through social engineering).Once healthcare organizations complete a comprehensive riskanalysis, security should be made part of an ongoing process 5. Consider whether purchasing cyberinsurance might be rightof improvement that ties together security, compliance, risk for you. New insurance products on the market are designedmanagement and corporate governance. specifically with hospitals and other healthcare organizations in mind. While insurance won’t make your systems more secure, it can help you feel more confident about your ability to survive aAs security threats grow more complex and challenging to major adverse incident.keep up with, many organizations are turning to managedsecurity service providers for 24-hour network monitoring, Learn more atincident tracking and immediate incident response. This level of csc.com/health_services.detection and response is critical to an organization’s security. WINTER 2013 | CSC WORLD 27
  • 30. CYBERSECURITY CYBERSECURITY FOR INDUSTRIAL CONTROL SYSTEMS THE TIME IS NOW The need for strong cybersecurity on industrial control systems (ICS) has by Edward J. Liebig never been greater, or more urgent. These systems — vital to the chemical, electrical, water, oil and other indus- tries — help companies control their field devices, collect data and detect problems. And they’re increasingly under attack. Cybersecurity events affecting ICS have increased by 2,100% over the past three years, according to data from the U.S. Department of Homeland Security’s ICS Cyber Emergency Response Team. These include targeted attacks by well-funded organizations, including both nation-states and terrorist groups. Yet today’s ICS environment is difficult to secure, mainly because older approaches no longer work. Historically, ICS environments had been protected from cyberattacks by physically isolating them, a practice known as “air gapping.” ICS environments were also considered low-priority targets. After all, these systems controlled not money, but industrial processes. Now all that has changed. The attacks are real, and they’re increasing. At the same time, businesses in nearly every industry are under pressure to do more with less, and that includes their ICS environments. These systems are now expected to provide insights into business metrics, increase supply chain efficiencies, provide business intelligence, and support mobile computing. Air gapping is no longer a viable approach. What’s more, ICS environments were never designed to support these new business requirements. Many IC systems, in fact, are quite old; some still run on Windows 98 or Windows 2000, versions of the popular OS no longer supported by Microsoft. While the solution would seem to be simple — just upgrade — the reality is more complex. Some hardware and underlying applications can’t run on the newer Windows versions. And many of the vendors of these older applications can’t write software patches, because they’re no longer in business.28 CSC WORLD | WINTER 2013
  • 31. Another challenge stems from how ICS environments are Trends in Cybersecurity: A Forecast for 2013 by Sam Visnerconnected — or, more accurately, not connected. An ICS setuptypically involves discrete processes known as “control loops.” The challenges of securing enterprise data, keeping dataFor example, imagine a chemical plant process that combines private and protecting intellectual property may seem daunt-two chemicals, blends them, then heats them, and finally ing. But fasten your seatbelts: In 2013 we’re also going to startpackages the result. Each step could involve a separate control integrating these concerns with the security of systems usedloop, one that does not communicate with the others. Worse, for manufacturing, supply chains and critical infrastructures.the control loops may not use TCP/IP, the common protocol Here’s what I expect to see in 2013:for both networks and security tools. Getting Integrated: This is the year when we’ll finally getCombine all these factors, and serious about viewing cybersecurity from an integrated perspective. By integrated, I mean moving away from simplyyou get an ICS environment that’s protecting individual desktops and databases, and instead protecting the entire enterprise. That includes mobile devices,complex and difficult to secure. industrial control systems, manufacturing supply chains andCompanies must balance what’s critical IT infrastructures (including the cloud).reasonable from a security viewpoint Control Systems: 2013 will also be the year when people accept the need to get serious about safeguarding the cyber-with what’s feasible for the business. security of not just information, but also the systems that rely on that information for control and management. Consider, forPolicy puzzle example, the control systems of a power plant or hospital.Policies are another piece of the ICS cybersecurity puzzle.Security policies essentially codify industry best practices. Different Strokes: We’ll become more aware this year of the two differing, even competing, visions of cybersecurity.Unfortunately, many common security policies can’t work in In much of the West, cybersecurity means protecting the pri-the ICS environment. For example, consider the practice of vacy and security of confidential information. But elsewhere,giving all users a unique user ID and password. Basic, right? another approach is emerging.Now imagine a factory control room staffed by six or sevenengineers. The control-room displays show critical processes Going Mobile: Bring your own device (BYOD) is here to stay,from across the plant; therefore, they can never go dark. But and as a result, the world of cybersecurity will get more inter-what happens when one work shift ends and the next begins? esting in 2013. Employees have shown they’re willing to spend their own money to buy the devices they want. Now enter-The plant can’t let the system go down while the new work prises will need to spend some of their money, too, ensuringcrew logs in. Somehow, an alternative to individual logins and that these devices — and the applications and databases theypasswords must be created and implemented. can access — are secure.In other words, ICS security differs dramatically from traditional Double-Barreled: Organizations should start to offer cyber-LAN/WAN security. You can’t blindly apply the same policies security from not one, but two perspectives: architecture andor standards to both. You must think about each critically. management. By architecture, I mean taking an integrated view of enterprise-wide security. And by management, I mean taking a top-down approach to cybersecurity. Too many orga-How? Mainly, by assessing risk. CSC has embraced a process nizations try to secure systems from the bottom up.that examines all devices in an ICS setup and then evaluatesthe ramifications or risks they could pose to the business. Invest in Security: I hope this will be the year when we makeThis involves a review of several key risk factors, including life, a far more powerful and enduring investment in the science,health and safety, environmental release, monetary risk and technology, development and engineering behind cybersecurityreputational risk. Next, we review existing security standards technologies. It’s time to reinvigorate our academic base, research base, science base and technology base.to apply not the letter of the law, but its spirit. Then wecobble together a new standard — one that applies to the ICS Big Data, Big Threats: In all the excitement over the poten-environment while also striking a balance between the need tial of data mining, we mustn’t forget to secure and protectfor security, the relative areas of risk, and the unique demands that data. Big data lets us unlock value — but only to theof industrial controls. For any company with an at-risk ICS extent that we have confidence in our data’s security. If weenvironment, that’s one safe bet. don’t know where the data comes from, don’t know whether it’s secure, and don’t know whether it’s been tampered with, then we can’t use it for decision making. Learn more at csc.com/cybersecurity. Sam Visner is VP and general manager of cybersecurity at CSC.Edward J. Liebig is the CTO of cybersecurity consulting at CSC. Watch 5 Cyber Predictions for 2013 at csc.com/cyber2013. WINTER 2013 | CSC WORLD 29
  • 32. CLOUD COMPUTING Understanding Cloud How to Buy It and An Outsourcing Center Cloud Buyer’s Guide Reveals How to Optimize a Cloud Contract. by Jim Battey More sourcing professionals are evaluating cloud contracts from a variety of service providers. While cloud is often called another type of outsourcing, the contract terms, service level agreements and pricing are very different. In order to provide a better understanding of cloud computing and how it differs from traditional IT outsourcing, CSC and EMC sponsored the Outsourcing Center Cloud Buyer’s Guide to highlight some distinctions that require special attention. Here’s an excerpt of that report. The value of cloud The advent of cloud brings to enterprises new agility, speed and flexibility. Cloud enables them to contain capital expenditures, reduce operating costs, and scale up and down with ease to meet fluctuating market demands. For the past few years, everyone’s been talking about cloud, and for good reason. This delivery model has changed how companies work and the speed at which they can respond to changing market demands. The fast provisioning, dynamic scalability and pay-as-you-go cost model deliver big advantages to businesses and more fluidity to users. The cloud model: delivery types The cloud model is a measured service that promotes availability and delivers key benefits, such as on-demand self-service, broad network access, resource pooling and rapid elasticity. There are three basic cloud delivery models, and enterprises can employ one model or a combination of different models: Private or internal cloud: Cloud services are provided solely for an organization and are managed by the organization or a third party — or a combination of both. These services may exist on the customer’s choice of premises. This is similar to a traditional data center environment, but the services are provided within the cloud capabilities, not as complete IT service delivery.30 CSC WORLD | WINTER 2013
  • 33. Public cloud: Cloud services are available to the public compare their measurement to a standard set by the customer,and owned by an organization selling cloud services, such using the Intel Xeon X processor as a baseline, and assess howas Amazon, Google, Rackspace or other cloud businesses. many vCPUs it takes to equal that capacity.Typically, a public cloud solution leverages a sharedinfrastructure service for all customers and may or may not RAM and Storage: Some vendors do not include RAM as aenable the end customer to specify or even identify where data measured service because, as a commodity, it is a very smallresides or applications are executed. fraction of the total cost. Regarding storage, in the majority of cases, customers should base their cost structure on persistentHybrid cloud: An integrated cloud services arrangement that storage only.includes a cloud model and something else. For example,data stored in a private cloud or a customer’s database in a Network: It is important to accurately estimate the volumetraditional infrastructure is manipulated by a program running of data traffic the network solution may require, so eitherin the public cloud. dedicated connections or an expansion of current capacity can be planned prior to implementation.Cloud benefits over outsourcingCloud computing provides a threefold advantage over the Capacity Planning and Usage: Customers can opt fortraditional IT outsourcing (ITO) model: agility, predictability in Capacity on Demand, which typically refers to a specific set ofcosts (including moving expenses from CAPEX to OPEX), as circumstances in the private cloud that lets a customer reserve awell as potential cost savings, particularly when compared to minimum capacity but lets the usage “burst,” with the customera nonleveraged model. The three basic types of cloud service paying for the additional capacity only when using it. Or,offerings are Software as a Service (SaaS), Platform as a Service customers can opt for Guaranteed Capacity, in which a “block”(PaaS) and Infrastructure as a Service (IaaS). of computing resources is purchased, but not all of it used due to any number of reasons; however, the capacity has a finite limit.The cloud brings cost benefits in that enterprises can quicklyleverage new technology to be more efficient when compared Support: The single most important point to consider is theto introducing new technology by traditional means. On the delineation of support between the provider and the customer.infrastructure-management side, the benefits result from In most instances, management and support ends either atusing a shared, multitenant infrastructure or by consolidating the virtual hardware level or at the OS level, with all additionala company’s infrastructure through virtualization. On the application support provided by the customer.application run-and-maintain side, cloud allows for a moreleveraged shared-services model for applications with which Cloud contracts are less complex than traditional ITO contractsthe supplier has competence and capacity. but also less negotiable, because customers are buying a bundled service. A typical cloud contract will have little flexibil-On the application side, cloud benefits result from an ity in negotiating terms and penalties. The only real option in aenvironment that can be quickly established for application true cloud implementation will be a credit for downtime, withdevelopment, testing, QA and staging for production. Being no enhancements for loss of business-critical functionality.able to replicate in a low-cost environment to reconfigure,change, test or stage before moving to production is a Jim Battey is a writer for CSC’s digital marketing team.definite advantage. This saves time, accelerates applicationdevelopment to meet critical business or mission requirements,and provides a higher level of quality across an organization. The Cloud Buyer’s GuideHow to buy cloud servicesCloud agreements require a living document of business The Cloud Buyer’s Guide was created by the Outsourcingrequirements, containing only those technical requirements Center (outsourcing-center.com) and sponsored by CSCthat are absolutely necessary. When soliciting cloud services, and EMC. CSC provides cloud solutions for the enterpriseenterprises should be stating their specific business challenges that are secure, reliable, easy to use and supported byand any explicit requirements they may have for that system — an innovative business model; it offers the only OPEXsuch as interconnectivity, middleware or data exchange. private cloud — CSC BizCloud™ — billed as a service and ready for workloads in just 10 weeks.Because every provider defines a virtual CPU (vCPU) differently,companies need to ask some specific questions to adequately Download the full version of thecompare services in the cloud. When assessing a cloud solution, Cloud Buyer’s Guide atconsider the following: csc.com/CloudBuyersGuide.vCPU: It’s important to understand how the provider is Learn more atmeasuring CPU capacity: in gigahertz, number of cores or some csc.com/cloud.combination. Smart customers should request that providers WINTER 2013 | CSC WORLD 31
  • 34. CLOUD COMPUTING OVERCOMING “Organizations need to ensure that their cybersecurity policies and protections cover information assurance — particularly as they seek to unlock the value of information and big data and THE FEAR use it to make high-value decisions regarding customer strategy, public policy and national security. The survey shows we still have some way to go to allay these types of cybersecurity concerns.” OF CLOUD Almost three-fourths of the respondents reported that security concerns prevent them from adopting many cloud services. Of the services they currently or will shortly use, application hosting tied email/messaging at the top of the list, both at 34%, Results from the 2012 Cloud with data storage following at 29%, collaboration software at 25% and application development/testing at 23%. Computing Security Survey Popular Offerings by Jenny Mangelsdorf What cloud services does your organization have or will shortly deploy? (top five answers listed) Despite cloud’s stratospheric adoption rates among businesses, governments and personal users, lingering doubts about data Application hosting 34% security remain. Information Security Media Group’s 2012 Cloud Email/messaging 34% Computing Security Survey found security concerns are still top- of-mind for users considering cloud adoption. Data storage 29% Collaboration software 25% The CSC-sponsored survey examines cloud security concerns, as well as how risks are being addressed through policy, technology App dev/testing 23% and vendor management. The survey queried senior leaders who are involved with cloud computing decision Vendors, trust and risk making in their organizations and help determine their Tied to cloud security are issues such as cloud vendors’ trustworthi- organizations’ IT and/or IT security budgets. ness, risk, ultimate responsibility and the cloud’s effect on the bot- tom line. More than two-thirds of the survey’s respondents expect The survey found that nearly one-third of respondents’ cloud computing will save their organizations money. When asked organizations haven’t used any cloud architecture, about the benefits of cloud computing, respondents ranked cost citing worries about data protection as their savings at the top, followed by better scalability and improved flex- “greatest reservation,” followed by “enforcement ibility as second and third, respectively. of security policies” and “data loss.” Even though survey respondents believe in the cloud’s benefits, “Data protection is a particularly important approximately 40% of respondents’ organizations had allocated concern,” says Sam Visner, vice president just 10% or less of their IT budgets on public, community and hybrid and general manager, cybersecurity. clouds. Nearly 40% hadn’t budgeted for these types of clouds at all. When organizations use the cloud, they believe that trust is key to adoption. More than 85% stated that external certification of a cloud provider is crucial. To reduce risk, 66% of respondents used a third-party organization to “certify or attest a cloud provider’s security,” whereas only 7% reported not verifying provider security in any way. Checking Out Cloud Providers What are the primary ways your organization verifies the security your cloud provider offers? (top six answers listed) Third-party attestation 35% Conduct own assessment 28% Joint vulnerability testing with provider 16% Accept word of provider 7% We don’t verify 7% Follow lead of another company similar to yours 5%32 CSC WORLD | WINTER 2013
  • 35. “Information technology professionals in general, and CIOs in The Guardiansparticular, need to be informed about the controls necessary Who’s responsible for ensuring security of cloud resources?to protect their operations and the providers’ approach tomeeting those controls,” says Visner. “Those contemplating Cloud provider 48%the acquisition of cloud services should look carefully at howsecurity certification or attestation is being performed, and IT or IT security organization 14%who is performing it.” 38% Business side/data ownerFor U.S. federal government respondents, 57% said they usethird-party providers to vet cloud providers’ security. Thatwill change as a new U.S. initiative called the Federal Risk and “One of the things people thought [was], ‘Maybe we couldAuthorization Management Program becomes operational get out from under some of this risk if we move things to thethis year. Under the initiative, the government will require cloud,’” says David Matthews, City of Seattle deputy chiefagencies to use third-party assessment organizations to information security officer, in the survey report. “We just haveindependently verify and validate that cloud providers meet to assume that we’ve got, if anything, maybe more risk, or asecurity requirements. different kind anyway.”While 79% of respondents stated that security is a “high As enterprise computing continues to move to the cloud,priority” when evaluating a cloud provider, only 41% believe ultimately security will be the IT security professional’sthey have adequate policies and procedures to enable safe responsibility, the survey reports. However, the survey adds, inand secure cloud use. Just 50% of respondents also stated taking that responsibility, professionals should partner with theirthat internal audit reviews provide appropriate feedback to organization’s IT and business groups as well as the cloud provider.improve cloud security. Two reasons respondents cited for thislow confidence in internal audits is a lack of education and Jenny Mangelsdorf is a writer for CSC’s digital marketing team.sophistication in many cloud initiatives.To enhance confidence, NASA’s Jet Propulsion Laboratory(JPL), an early cloud adopter, has created a Cloud ComputingCommodity Board, whose members span JPL, from departments 6 Principles for Effective Cloud Computingsuch as finance and acquisitions to individuals such as the ISACA, the professional association focused on ITscientists and researchers who will be using the cloud. governance, says organizations adopting cloud should adhere to the following principles:“We don’t put everything in one cloud because different cloudsare good at different things,” says Tom Soderstrom, JPL chief • Enablement: Plan for cloud computing as a strategictechnology officer/IT, in the survey report. “So far we have data enabler, rather than as an outsourcing arrangement orin 10 different clouds, and we let the users dictate which one is technical platform.the stronger.” • Cost/benefit: Evaluate the benefits of a cloud acquisitionUltimate responsibility based on a full understanding of the costs of cloudRegardless of how well vetted a cloud provider’s security may compared to the costs of other technology solutions.be, respondents show different views on who ultimately has • Enterprise risk: Take an enterprise risk managementresponsibility for security. perspective to manage the adoption and use of cloud. • Capability: Integrate the full extent of capabilities that“Whether you put [your data] in the cloud or in the trunk cloud providers offer with internal resources, to provide aof your car, it’s your responsibility,” says Françoise Gilbert, IT comprehensive technical support and delivery solution.Law Group managing director, in the survey report. “It maybe even more responsibility than before because there are • Accountability: Manage accountabilities by clearlysituations where the cloud provider does not have a clue defining internal and provider responsibilities.about the data that you have ... because that’s not • Trust: Make trust an essential part of cloud solutions,their business.” building trust into all business processes that depend on cloud computing.Just more than half of the respondents agree with Gilbert, with38% handing responsibility to the IT or IT security organization,and 14% giving it to the business side/data owner. However, Download the full Cloud Computing48% of respondents give responsibility for ensuring security Security Survey report atof cloud resources to the cloud provider. csc.com/CloudReport2012. WINTER 2013 | CSC WORLD 33
  • 36. CLOUD COMPUTING HOW ‘EVERYTHING AS A SERVICE’ CAN SAVE CIOs MONEY by Jim Battey Cloud computing is changing the way IT serves the enterprise. Today, nearly any type of hardware, software, IT process or business process can be offered as a cloud-based service. It’s called “Everything as a Service” (XaaS), and the benefits to the enterprise include greater agility, higher levels of innovation, faster responsiveness to market changes, and a new, improved ability to contain costs and reduce the need for capital. XaaS is a combination of utility-based services quickly.” The report also says, “To clients, the offerings that can be consumed on attractive marketing features of most as-a-service a flexible per-seat, per-month model, cloud offerings are lower costs, pay-as-you-go per based on usage. Companies with broad transaction, limited or no capital investment and technology portfolios such as CSC are able increased speed to solution.” to bundle as-a-service offerings and deliver to CIOs only the products and services they want As cloud computing emerges as a viable enterprise and need. strategy, CIOs have more options than ever to choose from. But how does XaaS reduce costs, and Wendy Hartzell, CSC’s CIO for Global Sales and how does everything fit together? Marketing, sees XaaS as a paradigm shift in IT. “We are in the midst of one of the most exciting times Flexible model in technology, fueled by the combination of mobile As CSC’s executive director of Global Unified devices and emerging XaaS capabilities,” she says. Communications and Collaboration Solutions, Dean “This is requiring an overhaul of our thoughts Fernandes helps customers craft their IT strategies. around IT, the IT department, budgeting models, “What CIOs are looking for today is a way to manage and in fact, ‘everything.’” costs,” he says. “And they want their costs to be usage based. They want to pay for things such as Research firm Gartner also views as-a-service as a email storage on an ‘as-you-go’ basis, and they also significant trend. According to an August 31, 2012 want the model to be flexible enough that it can be report, “Market Trends: Cloud Business Process as a delivered either on premises or in the cloud.” Service Outsourcing Trends,” by Cathy Tornbohm, a research vice president at Gartner, “Cloud and For example, enterprises can experience dramatic ‘as a service’ are being promoted as great ways for swings in network traffic, Fernandes says. “It’s very customers to cut costs and access technologies and seasonal, and this is especially true when you have34 CSC WORLD | WINTER 2013
  • 37. a contact-center business where there are peak call times will update our customers’ environment as part of the cost. Thatand non-peak call times,” he says. To accommodate these way, they are always up to date with the hardware and software,fluctuations, cloud technology provides infrastructure flexibility, and we continue to manage that service for them.”giving CIOs the choice of deploying a private cloud, a publiccloud or a hybrid. In Gartner’s report “Market Trends: Cloud Business Process as a Service Outsourcing Trends,” August 31, 2012, author CathyXaaS reduces costs in that you pay for only what you use, says Tornbohm observes that as-a-service offerings are increasinglyFernandes. “Our clients want to go from a fixed-cost model being configured for specific industries. “Options for buyingto a variable-cost model, based on usage,” he says. “If you business services have never been more varied, with heavilyunderstand your usage and your usage goes up or down, that’s customized offerings still being available and a host of verywhat you want to pay. You don’t want to pay for the capacity prescriptive, potentially configurable offerings emerging,” theyou’re not using.” report states.Hartzell adds, “The flexibility introduced by XaaS will introduce The financial services industry is especially ripe to benefit froma more dynamic element to the budgeting process. There will XaaS, Fernandes says: “Some of our biggest financial servicesbe a shift from the major long-term capital investments needed customers are looking at using multiple portfolios and offeringsfor traditional on-premises systems to subscription-based, as-a- from across CSC.” CSC’s vast network of partnerships andservice offerings.” alliances serves as a solid foundation for making XaaS happen. Fernandes says, “CSC can offer as-a-service subscription modelsIntegrating everything only if our partners help us get there — they have to provide aSince XaaS is all about everything, a key challenge for CIOs is special licensing model.”how to integrate everything. “At CSC, we have been buildingour portfolio around as-a-service, and we have the ability to Through it all, Fernandes says, the key for CIOs is to identify whichintegrate various services together and provide our customers cloud option and what as-a-service offerings best meet theira per-month, per-user bill based on their requirements,” needs: “CSC can tie the various offerings together and funnelFernandes says. those to the customers so they get a bundled solution of all the products and services that we offer in an as-a-service model.”For instance, in the area of unified communications, CSCoffers a virtualized environment on a per-seat, per-user basis. Jim Battey is a writer for CSC’s digital marketing team.“Not every user in the company uses the same features, sowhy should customers pay for features they’re not using?”Fernandes asks.Fernandes says people should be able to collaborate and talk 3 Flavors of Cloudto each other in the way they want to. The various as-a-service Cloud-based services are available in several variet-models provide employees diverse ways to communicate ies, giving CIOs and their enterprises a wide range ofand help make them more productive. “With mobility and choices and options. But choosing the best solution canthe consumerization of IT, we are able to communicate very be complicated. Here are three main approaches to take:effectively across all the mediums on iPads, iPhones or other • Private cloud: Offered on an enterprise’s privatedevices wherever we are and whenever we want to,” he says. network, this approach provides the highest levels of security and control. But it also requires the highestThe best news for CIOs is that XaaS lets technology levels of staffing and equipment, which can limit orprofessionals concentrate on what they do best. “XaaS offers even cancel the cost savings.great opportunity for the IT department to redirect focus tomore forward-thinking and strategic initiatives while confidently • Public cloud: Helps an enterprise reduce its need forleveraging XaaS offerings,” Hartzell says. capital, staff, hardware, software and maintenance. Public clouds also provide an enterprise with added flexibility and speed. The tradeoffs include less controlEvergreen model and, possibly, lower levels of security.The beauty of XaaS also lies in the fact that an evergreen modelis built into it. “One of our customers’ biggest complaints is that • Hybrid cloud: Combines the strengths of public andafter three to five years, the technology becomes obsolete.” private clouds. For example, in a setup known asWith XaaS, Fernandes says, “Whenever we have an update, we “cloudbursting,” a retailer that normally runs its appli- cations on a private cloud could rely on a third-party public cloud during periods of high activity. Learn more at csc.com/cloud. WINTER 2013 | CSC WORLD 35
  • 38. research Where Marketing is marketing, technology is technology, data is data, and never the three shall meet — right? Not so, says Frank Cutitta, a research associate in CSC’s Leading Edge Forum, which provides clients a knowledge base and global network ‘Mad men’ of innovative thought leaders on the current and future role of IT. To find out why, CSC World, spoke recently with Cutitta. An edited version of that conversation follows. meets How can IT and marketing learn to cooperate and coordinate? Cutitta: We’re researching that right now with our Weapons of Mass Discussion™ project, which is an offshoot of the “socially awkward” research we completed last year. That research looked into the relationship — or lack thereof — between ‘math men’ marketing and IT. We found there really were two cultures. In some organizations, it’s a pitched battle, while in others, more of a “friendly fire” situation. Either way, there’s still the age-old stereotype that IT is the “land of slow and no,” and marketing is the realm of unguided missiles. by Patricia Brown The truth is somewhere in between, of course. But many people still believe that IT’s major function is simply to keep the lights on, while marketing is much more customer-facing. An interview We’ve also found a great deal of anxiety among CIOs and other with Frank Cutitta IT professionals. They worry about marketing taking share and control of IT budgets. CIOs also see marketing absorbing Research Associate, traditional IT functions, mainly in a quest for greater agility. And, CSC Leading Edge Forum in an age of instantaneous metrics, there’s even a difference36 CSC WORLD | WINTER 2013
  • 39. between how IT and marketing define agility. This has a bearing technologist. But that’s like saying that if I take a physics courseon investments, because a lot of marketing technology doesn’t and a biology course, I could become a biophysicist. It’s justlook like traditional IT. Marketing doesn’t have to worry about not that simple. What’s needed instead are people who thinkemail, databases, networks and the like. Yet many other things in a way that combines both marketing and technology. It’s likethat walk like IT and quack like IT are now part of marketing’s budget. learning a second language; when you start dreaming in French, you know you’ve got it. The same is true here.You mean things such as social media? Then, making it even more complicated, we need to add data.Cutitta: Yes. IT often doesn’t have a personal relationship with So now you’ll be seeing the convergence of IT, marketingsocial media. In fact, in both our socially awkward research and and data. This will herald a new way of thinking. It may alsoother surveys we’ve done, CIOs and other IT professionals tend give data scientists an advantage over IT professionals. Datato view social media as little more than using LinkedIn as a CV scientists already possess many IT skills, and it’s relativelyor resume service. They don’t see social media from the conver- easy for them to acquire additional behavioral marketing andsational marketing point of view. psychology skills.Could this be resolved by creating C-level positions that What can CIOs do to improve the situation?combine marketing and IT? Cutitta: CIOs need to develop personal branding strategies onCutitta: In some cases there will be chief marketing information a global scale. This will help them enhance their careers, beofficers, chief information marketing officers, perhaps even chief viewed as legitimate partners by other parts of the organization,marketing data officers. So we can see the development of a and form new alliances among IT, marketing and data.whole new alphabet soup. Data is a separate issue. You might suppose that anythingJob titles aside, our research shows that organizations need new having to do with data automatically belongs in the IT depart-skill sets to reflect the rapid coevolution of IT, marketing and data. ment. But we’re finding new organizations that cannibalize bothThese skill sets will differ significantly from those of the past. marketing and IT. We’re also finding that less-than-agile busi-It relates to what I call the biophysicist problem. In IT and ness intelligence organizations can fall victim to new big datamarketing, we think that if someone has taken a marketing and predictive behavior groups.course and an IT course, [he or she] could become a marketing WINTER 2013 | CSC WORLD 37
  • 40. You mean by way of “shadow IT”? was coming from customer relationship management (CRM) systems and finance feeds, IT was able to hold onto it. Mainly Cutitta: Yes, and we’re seeing a lot of it. In the past, it was for historical and legacy reasons, this data was considered the limited to marketing stealing IT people to create agile, domain of IT. But now, as data becomes more predictive — and technology-powered marketing programs. But now, new as data intersects with both the science of “why they buy” and data organizations are emerging that are independent of IT technology-driven loyalty programs — a new way of thinking and marketing. Within these organizations, data scientists has emerged. are setting up shadow IT and shadow marketing. While they operate in a world that’s separate from marketing and IT, they’re One example is the way Target has identified women customers also dependent on them. in their first trimester of pregnancy — in at least one case, even before the father knew the baby was coming! Target essen- In response, marketing is saying, “Wait a second! Data is now tially triangulates the shopping patterns of women customers part of social media. I need that information for my metrics.” based on tiny, obscure buying “blips.” Maybe a woman buys At the same time, IT is saying, “Hold on. We’ve always handled a new vitamin, an organic food, or something else that seems data. Why aren’t we handling this?” unrelated to her pregnancy. But in this way, Target can pretty accurately determine when a woman customer is in her first So it behooves both marketing and IT to look closely at trimester of pregnancy. Then the retailer uses that information how data has evolved. In the past, data was like a rear-view for targeted messaging. Target’s research shows if it captures mirror, showing us historical data. Now, it’s more like the women at this earliest stage, they are more likely to consider front windshield, giving us a much more predictive view. Target a preferred supplier after their baby is born and, more importantly, as their family grows. Could data scientists be the ones to bridge the IT/marketing gap? So data marketing involves far more than just social media? Cutitta: Certainly, they add a third party to the relationship. But we’re still trying to determine how data science operates within Cutitta: Yes. It’s part of the “Internet of Things.” We have literally the organization. Is it independent, or is it really an extension of hundreds of new kinds of feeds, and these make data different IT and/or marketing? from what it had been before. We’re also at a moment when CEOs are fed up with all this Of course, this is also related to the phenomenon of big data. I infighting. As a workaround, some CEOs have established inno- like to say that the “big” is actually a verb: We’ve got to “big” the vation centers that report to them and incorporate IT, marketing data. Though it doesn’t mean you must have petabytes of data. and data science. It may be that where IT/marketing alliances fail, data-minded CEOs can succeed. Certainly, our research For CIOs and others in IT, data is a big challenge. They must shows that when a marketing-technology or data-science look at the unstructured, conversational data coming from deployment is driven from the top, it has a much greater blogs, customer feedback and the help desk. Thomson Reuters, chance of success. for example, has nearly 19,000 indices it tracks, based on the intersection of news and social media feeds. Has something important changed the nature of data? Typically, that’s outside the mentality of IT as we know it. Yet Cutitta: We’ve always had database managers, and they tended enterprise IT is increasingly under pressure to turn unstructured to be part of IT. Every now and then, you’d see an instance data into a corporate and competitive asset. When we talk where data was totally independent. But because much data about “weapons of mass discussion,” that information — the ability to optimize conversational content — is, in effect, the enriched uranium. Target has identified women customers in their first trimester of You seem to be making a distinction between content and data. Why? pregnancy — in at least one case, even before the father knew the Cutitta: You can’t optimize data unless you optimize the content that generates it. This data can be traditional (print/broadcast), baby was coming! Target essentially online, social or conversational. Then IT has to look at what I call triangulates the shopping patterns the “alchemy of content” as inseparable from data. That means inculcating a culture of content as data, then developing an inti- of women customers based on tiny, mate relationship with the content developers in the enterprise. obscure buying “blips.” For example, what are the characteristics of the content that let me make a supposition about what a recent engagement meant?38 CSC WORLD | WINTER 2013
  • 41. This is essentially a lab test on content. We want to quantify Other marketing tips for CIOs from your research?data’s characteristics, much as a physician might analyze yourblood sugar or cholesterol level. Needless to say, this is quite a Cutitta: Perhaps the most important area involves adoptingstretch for IT. But in the new “content as data” culture, it is an what we call an “outside-in” approach to deployment strategy.essential skill. Our research shows that many deployments fail as a result of an updated version of the old last-mile telecom problem. The technology gets to the curb, but not into the house. Often, “CIOs need to develop personal it’s because either IT or marketing neglected to research the branding strategies on a global limitations of the current corporate infrastructure, skills sets or ingrained habits. scale. This will help them enhance their careers, be viewed as legitimate Consider healthcare: While physicians use a great deal of technology to treat patients, when it comes to putting those partners by other parts of the patients’ healthcare records online, doctors mainly scribble organization, and form new alliances illegibly on a paper notepad. Then they hand it off — often, to someone who can’t read their handwriting — to be uploaded among IT, marketing and data.” into a medical records system. As a result, the accuracy rate for transcribed dosages can be frighteningly low. That’s what IAnything else IT executives can do to retain their mean by the problem of the last mile.marketing relevance? To what degree are these issues generational? SomeCutitta: CIOs should get more involved in the social enterprise, workers are digital natives, but many of us are recent digitalas opposed to customer-facing social media. Mainly because immigrants.the social enterprise is, like CRM, still seen as an IT concern.Also, because marketing tends to have a much more indirect Cutitta: It’s definitely an issue. CIOs should survey their usersrelationship with the internal social enterprise, this presents an to determine their mix of digital natives and immigrants.opportunity for IT. Otherwise, they could end up supposing that all of their users are comfortable with social media or tablet usage, when that’sBesides, the social enterprise is a great place for CIOs to get not true. In fact, some CIOs may need an entirely new gametheir feet wet. By using platforms such as Jive, Chatter and plan, one that involves either re-educating workers or makingYammer, CIOs can learn about the psychology of communi- sure they get their data in a form that’s digestible.cation and unstructured data. The social enterprise can alsoimprove the way IT is perceived within the organization. It’s In this way, a CIO could avoid a budgetary surprise when, say,a subliminal way to market IT internally. And many CIOs are transforming to a data-driven sales force or agent network —bringing in shadow marketing talent to do just that. and that surprise could be more expensive than the technology infrastructure modernization. Further, our research shows that inOnce you’ve established credibility within the organization, you this outside-in model, an analysis of the digital immigrants in thecan extend your credibility to external, customer-facing projects. field should precede any work on the design and deployment ofBecause now you know the dynamics and metrics related to “Weapons of Mass Discussion.”social enterprise interactions. You also have the street cred whenit comes time to extend to external, social CRM deployments. Patricia Brown is director of digital content strategy at CSC.Can you give an example of how that might work?Cutitta: One of the fastest-growing areas in the social enterpriseis reducing the number of help desk tickets. IT can do this by Watch CSC Town Hall Sound Bites: Weaponsimplementing a pre-emptive social self-help service. In effect, of Mass Discussion — Enterprise Social Mediaemployees help each other. Other social enterprise initiatives csc.com/EnterpriseSocialMedia.have found IT and HR working together to create collabora-tion platforms. These let people across the organization share Learn more about the LEFideas and knowledge, as well as offer suggestions to corporate and its latest research atmanagement. So the social enterprise can touch IT in a positive csc.com/LEF.way from both a perception point of view and in terms of costreductions and resource efficiencies. WINTER 2013 | CSC WORLD 39
  • 42. research Open Source: It’s Not Just for Software Anymore An idealistic trend from the ’90s emerges as a key economic force in today’s connected, global economy by Dale Coyner As the backbone of private companies and public institutions alike, information technology has become more than a technical marvel. Rapid data sharing, analysis and instant communication enabled by IT have unlocked immeasurable economic value, reinvented industries and even toppled governments. Now IT’s influence is growing beyond the server room to rewrite basic business strategy. The key to its expanding sway? A new CSC Leading Edge Forum (LEF) study, titled “Beware of Geeks Bearing Gifts: Strategies for an Increasingly Open Economy,” points to a trend that has grown remarkably in size and influence from its inception in the early 1990s — open source software. Open source is more than free The author of the study, LEF Researcher Simon Wardley, says there’s an important distinction between software given away at no cost, free software and open source projects. “Software that companies don’t charge you anything to obtain is still controlled by a person or a company. Free software is software that you have access to the code, it can be used and modified by anyone and it is free from many tradi- tional constraints. Open source software, on the other hand, had not only a focus on freedom from constraints but encouraged the growth of a community and a collaborative manner of development around a piece of software. That’s a critical aspect of the open nature.” Wardley says Linus Torvalds, creator of the Linux operating system, pioneered today’s concept of open software development. “Torvalds created more than an operating system; he built a large community around his project. This collaborative way of working helped rapidly evolve the project and drew more people and companies into the Linux universe.” Popular open source projects can become global collaborative efforts, Wardley explains, with features and bug fixes contributed by software developers around the world.40 CSC WORLD | WINTER 2013
  • 43. Open as a strategy While individuals may participate in open source projects to demonstrate their expertise, companies are generally motivated by economics. Wardley explains that open initiatives are a tactic Simon Wardley companies can use to tilt markets in their favor. LEF Researcher, “You have to understand your value chain very well, and if you CSC Leading Edge Forum do, an open strategy creates opportunities for you to build walls around some aspects of your value chain, or perhaps lower barriers [to] entry at other points that would impact your“It’s a highly collaborative approach that encourages the competitors,” Wardley says.development of a community around an idea,” Wardley says.“Individuals contribute to open source projects because they’re Google, for example, uses a mix of proprietary and open strate-interested in the solution a piece of software provides, but it is gies to maintain its market leadership. “Google offers manyalso a means to improve and display their coding skills and gain products that are open, such as its Android operating system,peer recognition.” but its search algorithms remain proprietary. In the case of Android, you can view this open approach as a way for GoogleClearly, the incentives to participate are powerful, and popular. to protect its value chain around data from the walled gardenBlack Duck Software, which maintains a knowledge base of open that Apple was creating. It’s a highly competitive play to buildsource software projects, estimates that as many as 600,000 open an alternative ecosystem to compete with Apple.”source software initiatives have created more than 100 billion linesof code through 10 million person-years of human effort. While the vast majority of companies consume open technology, the most advanced companies think highly strategically andWithout open source products such as Apache, mySQL and appear to use open as a competitive weapon.Hadoop, Wardley says, transformative technologies such asthe Internet, cloud computing and big data would be far more IT as consultantexpensive and limited, if they existed at all. The growing influence of the open movement and its roots in information technology offers an interesting opportunity for theWhat drives the influence of open? enterprise IT department.Today, the open concept is spreading to areas beyond software –from open data to open hardware. This open notion of collaborative Wardley says that the experience IT departments have gained withand community-based efforts is gaining acceptance in manufac- open models in software and services makes them natural consul-turing, science, higher education, government and beyond. tants to other parts of businesses that want to adopt open models.“Software is indispensable in virtually every industry, so it should “IT’s knowledge in these areas can be leveraged in new andcome as no surprise that the dynamics of the software industry often highly strategic ways, from methods of collaboration toshould begin to be modeled elsewhere,” Wardley says. tactical game play to the importance of transparency, gover- nance and standards to the practical details of how to operateThe collaborative work practices honed by software developers an open project,” Wardley says.are being borrowed by other departments inside the business.Competitive pressures play a role, too. Wardley’s research shows Many businesses lack experience in these areas, and the formsthat the continuing need to drive out costs while increasing of cooperative competition they often imply remain strangeinnovation is causing companies to consider new and more ideas to many people who built businesses through proprietary,open strategies. closed methods.The open movement extends well beyond commercial interests. Wardley believes that the ability to adapt to open methods isWardley says that both a growing emphasis on open science an imperative that companies must address. And what fate liesin universities and free curricula have roots in the open source ahead for companies that fail to adapt?movement. Government is getting in on the act, too, with agrowing commitment to more transparent operation, the publica- “That’s an open question,” he says, adding, “Failing to adapt to ation of data and creating level playing fields with open standards. changing environment doesn’t normally work out well, though.”The open movement isn’t limited to intangibles such as soft- Dale Coyner is a writer for CSC’s digital marketing team.ware or data; the manufacture of physical products is seeingthe effects of the open movement as well. “One of the mostintriguing aspects is the power of open source manufacturing The Power of Opendesigns when combined with 3D printing,” Wardley says. “There lef.csc.com/PowerOfOpenis now open activity at virtually every level of business and IT.” WINTER 2013 | CSC WORLD 41
  • 44. applications ‘Mobile First’ movement Drives Application Design New tools and evolving standards answer a growing need to develop mobile apps quickly and easily. by Dale Coyner The rapid adoption of smart mobile devices has redefined Jim Petrassi, managing director, Systems Integration & industries and spawned new ones in just a few short years. That Development at CSC, agrees. “A few years from now, you won’t sudden shift is also causing companies to rethink strategies for say ‘We need a mobile application,’ you’ll just say ‘We need an application development. application.’ Mobility will be presumed,” Petrassi says. Jonathan Marshall, CSC’s global portfolio director for end-user Developing applications that accommodate devices with services, says tablets and smartphones have completely changed different screen sizes, input methods and connectivity is a how we think about applications. “Mobile devices demand sniper- special challenge. In the enterprise, Marshall says application like applications with very specific functions. That stands in development can follow the Henry Ford model: “You can have contrast to the shotgun-like approach of desktop applications.” any device you like, as long as it’s an iPad.”42 CSC WORLD | WINTER 2013
  • 45. Applications for a broader audience have a greater need X-Ray Vision for Your Phoneto operate across platforms. HTML5, the new standard fordescribing Internet documents and applications, brings important Any kid who ever held a comic book gazed longinglycapabilities to mobile Web development that have previously over ads for magic tricks, go-karts plans and otherbeen available only in native development environments. youthful ephemera. But all eyes were drawn to the ads for X-ray glasses. The promise to “see through anything” • Offline Support — Tools such as AppCache and Database was tantalizing, but too good to be true. Or is it? inside HTML5 enable developers to store data locally on a device, ensuring that Web-based apps will work in environ- Richard Brown, CSC’s application visualization lead at ments with limited connectivity. the Stennis Space Center in Mississippi, says augmented • Canvas and Video — These features support graphics reality apps coming to market may help mobile devices and video on a page without the need for plug-ins. This do just that, in a manner of speaking. capability may have influenced Apple’s decision to support HTML5 in its mobile devices instead of the popular Flash Keyed by GPS, location markers or visual clues, plug-in published by Adobe Systems. Adobe has since augmented reality apps on mobile devices will enable discontinued Flash support for mobile devices to focus workers in a wide range of industries to find relevant on HTML5. information immediately. • Advanced Forms — HTML5 improves frequently used features such as forms that will make mobile applications If a building has been mapped, an augmented reality app easier to use. For example, HTML5 forms will be able to will reveal the location of everything hidden behind the validate data such as credit card numbers and zip codes walls, including pipes and cable runs. “That concept can inside the browser instead of relying on add-ons. That be replicated for gas mains, water or electrical utilities or means less communication and faster processing. nearly any type of infrastructure,” Brown says.Petrassi says that in addition to HTML5, many of the standards And it can have life-saving applications too. “It will be aand best practices that communicate to back-end systems are real aid in nighttime operation. For example, a firefighterstill relevant for mobile apps. will [be able to] open a display to locate fire hydrants in the dark,” he says.“Mobility adds a layer of complexity because you need lighter-weight protocols to reduce the amount of data you’re moving “We’ve had augmentations in military aircraft forover cellular networks,” Petrassi says. “You need to make sure the decades, but it’s about to become a widespreaddata is secure — not only when it’s in transit, but when it’s sitting technology. I think the winning scenarios are whereon that device, too. Is it encrypted? Can I wipe it if I need to?” augmented reality lets you see what can’t be seen and know what isn’t known.”Petrassi expects a growing number of enterprise applicationswill be built with open standards such as HTML5, especially as Sounds like those X-ray glasses weren’t so far-fetched after all.it matures. “There will always be applications that require nativecode, but I think over the next couple of years, we can build - Dale Coynerthree of four mobile apps on open platforms,” he says.Accelerating that trend is a new crop of hybrid applicationtoolkits such as PhoneGap, a development environment that “When you apply adoption curves to this market, it’s clear thatcombines native code with HTML5. Native code offers access we are still in the innovation phase,” Petrassi says. “We’ll see a lotto device-specific features such as a camera, while the overall of change, dead ends, and exciting things in app developmentapplication is wrapped in HTML5. This reduces the amount of and management over the next few years. But one thing is cleartime required to port an app from one device family to the next. — everything will be built with mobility in mind.”And lest we forget, the impact of Windows 8 has yet to be fullyfelt in the marketplace. “It’s hard to predict these things, but I Dale Coyner is a writer for CSC’s digital marketing team.do believe Windows 8 is a game changer,” Petrassi says.Marshall notes that even though Microsoft is arriving late to the Learn about CSC’s FuturEdge, a uniquemobile party, its large base of enterprise clients and mature approach to applications modernizationmanagement tools make it relevant. He believes that Microsoft csc.com/FuturEdgeVideo.may yet play a role in setting, or influencing standards, whetherofficial or de facto. Learn more at csc.com/applications. WINTER 2013 | CSC WORLD 43
  • 46. 9 last word Watch Siki Discuss 5 Cloud Predictions for 2013 at csc.com/cloud2013. Public sector: “Shadow IT” hangs around. Thanks to the cloud, individuals can order IT services directly, with- out having to go through their IT departments. Known as “shadow cloud IT,” this development may be empowering for individuals, but it’s a problem for both IT and public sector organizations. Fortunately, government programs are now formalizing cloud contracts, and Computing eventually, there should be no need for individual workers to order IT services directly. But “shadow IT” will not disappear overnight. Predictions Enterprise applications: Get on board. for 2013 This year, automated production workloads — enterprise-class applications — should move to the cloud en masse. Increasingly, automated templates will be used to initiate applications in the cloud. This, in turn, should spur the development of enterprise- by Siki Giunta class clouds that are secure, scalable, automated and easy to use. Cloud computing is without question Disaster recovery: From “nice-to-have” to vital. the most important IT development Last year the United States saw devastating hurricanes, in recent memory. The cloud changes blizzards and droughts. Yet many cloud vendors still offer nearly everything, including the role of disaster-recovery services that are less than top notch. This the CIO, how companies pay for comput- must change. Enterprises today demand instant availability, ing power, even IT’s relationship with the continuity and recovery. These demands will only intensify, business. And these changes show no placing cloud providers under severe pressure to respond. sign of slowing. In fact, we expect to see several new and dramatic cloud-comput- Mobile computing: Love the cloud. ing developments this year: Mobile computing and the cloud were made for each other. As 4G service becomes more widely available, and as the quantity Security: The conversation matures. of data that flows in and out of our smartphones and computing While the business continues to worry about security and tablets grows exponentially, the cloud becomes indispensible. compliance in the cloud, the security trade-offs are now better Mobile apps and data will increasingly live in the cloud. understood. Some workloads are appropriate for the cloud; others are not. One result of this should be a rapid adoption of virtual Cloud brokers: Gaining prominence. private clouds. These systems let CIOs provision private, isolated Expect to hear a lot this year about cloud brokers, community sections of larger public clouds. This approach helps CIOs lower platforms that offer template-based services. Users of these costs while offering security at nearly data center levels. cloud brokers can now buy software, infrastructure or other platforms — all as a service. For now, however, the cloud-broker Financial services: Accepting the cloud. market is still somewhat vaguely defined. That will change. In Until very recently, the financial services industry distrusted fact, we believe cloud brokers represent cloud computing’s the public cloud and instead chose to build private clouds, next generation. essentially virtualized data centers. However, building private clouds has proven expensive, with few benefits to show. As a Asia: Leapfrogging to the cloud. result, we expect financial services companies to begin China’s market for cloud services will likely exceed $100 million engaging trusted service providers to offer selected IT services. for the first time this year. That will set the stage for even more investment and segmentation. Other areas of Asia — notably Manufacturing: Machine-to-machine. Malaysia and Indonesia — are ripe for the cloud, too. These The cloud is a great platform for machine-to-machine (M2M) countries have a tradition of leapfrogging technologies. For communications. A soda-vending machine can now commu- example, while the West transitioned from the mainframe to nicate with banking systems, via the cloud, to securely accept the minicomputer to the PC, much of Asia jumped directly credit cards. Automobiles will increasingly stream over the from mainframes to the Web. Now these countries are mostly cloud videos, applications, driver manuals, security information skipping virtualization and heading directly to the cloud. and more. And houses connected by the cloud could assist the elderly while also helping all of us reduce energy use. M2M is Siki Giunta is VP and general manager of cloud computing the Internet of the future. and software services at CSC.44 CSC WORLD | WINTER 2013
  • 47. SolvingGovernment’sMost Difficult Challenges Improve mission performance. Reduce costs. Secure data. Meet mandates. With more than 50 years of government and commercial experience, CSC brings your agency world-class best practices around next-generation technology — cloud, applications modernization, cybersecurity, big data and mobility — to address the nation’s biggest challenges. We proudly serve nearly every agency and department of the U.S. government, helping our clients achieve excellence through best commercial practices, innovative IT, business operations and engineering services. Worry less about business processes and technology. Focus more on the mission. Learn more at csc.com/government. WINTER 2013 | CSC WORLD 45
  • 48. Worldwide CSC HeadquartersThe Americas3170 Fairview Park DriveFalls Church, Virginia 22042United States+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.”© 2013 Computer Sciences Corporation. All rights reserved. www.csc.com/cscworld

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