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Presentation by Galit Fein about the Office of the CIO Market 2009 in Israel

Presentation by Galit Fein about the Office of the CIO Market 2009 in Israel

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Office of the CIO 2009 Presentation Transcript

  • 1. Office of the CIO 2009 Your Text here Your Text here Galit Fein VP & Senior Analyst Office of the CIO Strategies Galit Fein’s work Copyright 2009 @STKI Do not remove source or attribution from any graphic or portion of graphic 1
  • 2. IT Trends Agenda 2009 1 IT trends IT Trends 2009 2009 2 IT Budget IT Budget Mngt Mngt 3 Officehere the CIO/ ITAM of Office of the CIO Your Text Your Text here 4 Sourcing/ Cloud Computing Sourcing 5 Conclusion Enterprise Risk Mngt ERM 6 Mobile/ Social Networks Mobile Galit Fein’s work Copyright 2009 @STKI Do not remove source or attribution from any graphic or portion of graphic 2
  • 3. IT Trends IT in Aggressive Cost-Cutting Times 2009 IT Market decreasing -12.53% Capex Crisis IT budget mngt IT Budget cuts Need for better IT Your Text here Your Text here Increased focus Office of the CIO investments on ITG optimization Shift to IT Asset Mngt Technology budget discretionary Sourcing Models is mostly non- cost basis when discretionary Cloud Computing possible Galit Fein’s work Copyright 2009 @STKI Do not remove source or attribution from any graphic or portion of graphic 3
  • 4. IT Trends IT in Aggressive Cost-Cutting Times 2009 Financial crisis Increased spend Enterprise Risk forced better regulations & risk on IT risk mngt Mngt mngt Mobile; Your Text here Your Text here New business Innovation Social models Networking Galit Fein’s work Copyright 2009 @STKI Do not remove source or attribution from any graphic or portion of graphic 4
  • 5. IT Trends Actions taken to cut IT costs 2009 09Jan- Restrict IT travel expenses 61% Freeze IT hiring 59% Postpone discretionary IT projects 58% Your Text here Your Text here Renegotiate IT vendor contracts 52% Freeze or cancel IT capital spending 49% Reduce spending on IT staff training 46% Reduce IT headcount 34% Source: CIO IT Budget & Staffing Survey Galit Fein’s work Copyright 2009 @STKI Do not remove source or attribution from any graphic or portion of graphic 5
  • 6. Top IT’s Priorities for 2009 IT Trends 2009 in Israel Consolidation of IT infrastructure 62% Renegotiation of contract 57% Selection of IT investments based on ROI 53% Your Text here Your Text here Business Intelligence 42% Requirement and Portfolio management 31% Improvement of IT security and compliance 30% Automation and outsourcing testing 21% Source: STKI Galit Fein’s work Copyright 2009 @STKI Do not remove source or attribution from any graphic or portion of graphic 6
  • 7. IT Budget IT in Aggressive Cost-Cutting Times mngt Your Text here Your Text here IT Budget Cuts Capex crisis IT budget mngt Galit Fein’s work Copyright 2009 @STKI Do not remove source or attribution from any graphic or portion of graphic 7
  • 8. IT Budget IT Budget Reduction mngt • Capex Crisis - cash flow is the KING • Move from Capex/Opex to Zero-based budgeting Your Text here Your Text here • Trade non-discretionary costs for discretionary costs Galit Fein’s work Copyright 2009 @STKI Do not remove source or attribution from any graphic or portion of graphic 8
  • 9. IT Budget Non-Discretionary Costs mngt IT budget with previous commitment & no flexibility Your Text here Your Text here Unsure 4% Discretionary spends 36% Non-Discretionary spends 60% Galit Fein’s work Copyright 2009 @STKI Do not remove CIOquot; online survey 2008 any graphic or portion of graphic Source: CIO magazine quot;the State of the source or attribution from 9
  • 10. IT Budget “Hidden” IT costs mngt Expenses assigned before the budget year: ØPeople cost (internal staff) ØProfessional services based on annually contracts Your Text here Your Text here ØHW & SW maintenance (annual app maintenance fees) ØMandatory & “must” projects: Data Storage, Networks Current high non-discretionary costs prevent business agility Galit Fein’s work Copyright 2009 @STKI Do not remove source or attribution from any graphic or portion of graphic 10
  • 11. Trade non-discretionary costs IT Budget mngt for discretionary costs Discretionary Non-discretionary Your Text here Your Text here Galit Fein’s work Copyright 2009 @STKI Do not remove source or attribution from any graphic or portion of graphic 11
  • 12. How to Increase IT Budget mngt Discretionary Budget? ITG IT asset IT management procurement • Office of the • Software • Sourcing models CIO Text here Your Your Text here • Prof. services licenses • Agility • Cloud computing • Portfolio mngt Galit Fein’s work Copyright 2009 @STKI Do not remove source or attribution from any graphic or portion of graphic 12
  • 13. Office of IT in Aggressive Cost-Cutting Times the CIO IT Your Text here Your Text here investments Increased focus Office of the CIO optimization on ITG Upcoming STKI Round Table on Office of the CIO: 10/06/2009 Galit Fein’s work Copyright 2009 @STKI Do not remove source or attribution from any graphic or portion of graphic 13
  • 14. Office of Taking Advantage of a Downturn the CIO Reduced IT spending: ØFinancial crisis has increased the attention to IT costs mngt Your Text here Your Text here ØIT can’t afford bad decisions Increased focus on Office of the CIO Need for better PPM 2008 2009 2010 Office of the CIO 25.0 20.00% 30.0 16.67% 35.0 Project Management Office Galit Fein’s work Copyright 2009 @STKI Do not remove source or attribution from any graphic or portion of graphic 14
  • 15. Top IT’s Priorities for 2009 Office of the CIO in Israel Consolidation of IT infrastructure 62% Contract renegotiations 57% Improving the ROI of IT investments 53% Your Text here Your Text here Business Intelligence 42% Requirement and Portfolio management 31% Improving IT security and compliance 30% Automating and outsourcing testing 21% Source: STKI Galit Fein’s work Copyright 2009 @STKI Do not remove source or attribution from any graphic or portion of graphic 15
  • 16. Office of IT Organization Today: the CIO • ITO directly affects on every business aspect • Highly embedded for the organization success: ØIncreasing complexity of org. products/ services Your Text here Your Text here ØMulti-channel customer interaction Galit Fein’s work Copyright 2009 @STKI Do not remove source or attribution from any graphic or portion of graphic 16
  • 17. Office of IT Transformation the CIO Internal External Internal Service Service focused IT Provider Provider Your Text here Your Text here •Available & accurate info •Align IT to business •Align IT to customers •IT maintenance •Best solution for •Business partner •IT staff mngt business needs •Business innovator •HW availability &uptime •IT portfolio mngt of engine •Technical support LOBs demands •Transformation initiator Galit Fein’s work Copyright 2009 @STKI Do not remove source or attribution from any graphic or portion of graphic 17
  • 18. Office of IT Transformation through ITG the CIO To Strategic OTC conference table From Text here Your Your Text here Data Center room Galit Fein’s work Copyright 2009 @STKI Do not remove source or attribution from any graphic or portion of graphic 18
  • 19. Office of Business Partnership Office the CIO What is it? Your Text here Your Text here What is it not? Galit Fein’s work Copyright 2009 @STKI Do not remove source or attribution from any graphic or portion of graphic 19
  • 20. Office of Location of Business Referents the CIO LOB LOB LOB International Trends: • BRM is not part of the IT BRM • BR manager – business skills with understanding of IT IT Your Text here Your Text here IT Israeli Trends: • BRM is part of the IT - OTC: Office of the CIO v Political issue PMO, QA, KPIs, CSO • OTC manager – IT manager with understanding of business Infra Develop. Operation Galit Fein’s work Copyright 2009 @STKI Do not remove source or attribution from any graphic or portion of graphic 20
  • 21. Partnership between business & IT – Office of the CIO 2way communication OTC becoming the IT most important office, but Only with CEOs recognition of Your Text here Your Text here IT contribution to business innovation & competitive advantage Galit Fein’s work Copyright 2009 @STKI Do not remove source or attribution from any graphic or portion of graphic 21
  • 22. Office of the CIO Office of the CIO Israeli Trends Advanced - ITG ØInnovation ØP ØStrategic alignment ØB ØBusiness value / IT cost optimization ØB ØDemand / prioritization & mngt ØB You’re Here ØResourceText here ØB Your allocation & mngt Your Text here ØIncreasing PMO efficiency ØB Basic - EPM We all do it to certain extent, but “What got you here, won’t get you there.” Marshall Goldsmith Galit Fein’s work Copyright 2009 @STKI Do not remove source or attribution from any graphic or portion of graphic 22
  • 23. Office of Office of the CIO under New Constraints the CIO 4 Increase IT business value through IT cost optimization 4 Rebalance the IT portfolio to Increase Revenue, Reduce Costs, Manage Risk, with minor investments for Growing Your Text here Your Text here Revenue & Avoiding Future Costs 4 Target discretionary funds for maximum ROI Galit Fein’s work Copyright 2009 @STKI Do not remove source or attribution from any graphic or portion of graphic 23
  • 24. Office of Not ROI but Payback Period the CIO Payback period - how quickly investments are repaid? • Shorter payback period : ØQuick free cash for other investments Your Text here Your Text here ØLower risk - new future regulations, new software, new business requirements Galit Fein’s work Copyright 2009 @STKI Do not remove source or attribution from any graphic or portion of graphic 24
  • 25. Office of OTC/ PMO Staffing Ratio the CIO • Average size of Israeli OTC/ PMO department: 3-5 Ø~2% of IT department (between 0.5% - 4%*) ØCompared to ~5-8% in global orgs Text here Your Text here Your * in large enterprises, varies according to the maturity of IT Governance in the organization Galit Fein’s work Copyright 2009 @STKI Do not remove source or attribution from any graphic or portion of graphic 25
  • 26. Office of Demand Management the CIO Initialization process • Alignment to business LOB strategic goal OTC • Pre-agreed categories set Business Your Text here Your Text here • Business Priority PMO Referent • Risk (new tech, # of LOBs involvement ) • ROI/ NPV • IT Evaluation • Approval Galit Fein’s work Copyright 2009 @STKI Do not remove source or attribution from any graphic or portion of graphic 26
  • 27. Office of Automized Demand Management the CIO Initialization process •Alignment to business strategic goal LOB OTC •Pre-agreed categories set Your Text here Your Text here Business PMO •Risk (new tech, nu Referent of LOBs involvement ) •Anything that helps accurate evaluation Source: CA PPM Galit Fein’s work Copyright 2009 @STKI Do not remove source or attribution from any graphic or portion of graphic 27
  • 28. Office of Prioritization Process the CIO Prioritization Small requests IT Plan done Small requests Large Projects By OTC/ BRM, because they know Your Text here Your Text here Strategic, tactical, regulatory the strategy Large Projects of the business Galit Fein’s work Copyright 2009 @STKI Do not remove source or attribution from any graphic or portion of graphic 28
  • 29. Project Evaluation Office of the CIO Israeli Trends • Projects evaluation is based on previous experience only: Ø No methodology or pricing model! • Top Down budgeting allocation: Your Text here Your Text here Ø Price tag remains the same during the projects’ lifecycle • PMOs don’t use Service Catalog: Ø Requirements variety Galit Fein’s work Copyright 2009 @STKI Do not remove source or attribution from any graphic or portion of graphic 29
  • 30. Office of Holistic View - Portfolio Evaluation Matrix the CIO Projects’ Size, Risk & Value 5 The preferred project 4 3 ROI/ Your Text here Your Text here Payback The size of each 2 bubble is proportional to risk/ IT complexity 1 1 2 3 4 5 Business prioritization/ Strategic alignment Galit Fein’s work Copyright 2009 @STKI Do not remove source or attribution from any graphic or portion of graphic 30
  • 31. Office of General Welfare the CIO • Org. holistic view vs. LOB • Each requirement is examined by its contribution to the org. • Contribution is not necessarily financial: Ø Innovation Your Text here Your Text here Ø Branding • Total cost of ownership (TCO) – training, infrastructure • Requirements integration Integrated Project Project Project/ X Y New infra product Galit Fein’s work Copyright 2009 @STKI Do not remove source or attribution from any graphic or portion of graphic 31
  • 32. Office of Resource Allocation & Mngt the CIO • One DB for resource mngt • Transparency • PlanningText here on based IT Your Your Text here actual data • Planning vs. Execution Galit Fein’s work Copyright 2009 @STKI Do not remove source or attribution from any graphic or portion of graphic 32
  • 33. Office of Real Time Projects’ Dashboard the CIO On Client On Scope Project # Satisfaction Risk On Time Total Budget Quality Gates 25 140 Your Text here Your Text here 32 2 89 Galit Fein’s work Copyright 2009 @STKI Do not remove source or attribution from any graphic or portion of graphic 33
  • 34. Office of ITG/ PPM Tools the CIO Demand mngt Portfolio Reporting mngt Your Text here Your Text here IT process Project mngt mngt Resource Financial mngt mngt Galit Fein’s work Copyright 2009 @STKI Do not remove source or attribution from any graphic or portion of graphic 34
  • 35. ITG/ PPM Tools Office of the CIO Israeli Trends • Most ITOs don’t implement the complete ITG/ PPM solution • Prefer to acquire only the missing PPM modules: Ø Demand mngt Ø Portfolio mngt • Manage thehere Your Text other modules by existing solutions, as: Your Text here Ø Project mngt – MS Project, PS Next, etc Ø Financial mngt – ERP, etc Ø Resource mngt – SP, MS Project, In-house tools, etc Ø IT process mngt - SP, In-house tools, etc Ø Reporting - SP, In-house tools, etc Galit Fein’s work Copyright 2009 @STKI Do not remove source or attribution from any graphic or portion of graphic 35
  • 36. ITG/ PPM Tools Office of the CIO Israeli Trends • PPM tools are not up-to-date, because of limited budget ITOs choose in-house developments • PPM tools are second preference – the real change to the org. Your Text here Your Text here will bring governance procedures & right methodology 2008 2009 2010 PPM 10.0 -20.00% 8.0 87.50% 15.0 Office of the Asset Management 15.0 -13.33% 13.0 53.85% 20.0 CIO Project management 10.0 0.00% 10.0 50.00% 15.0 Galit Fein’s work Copyright 2009 @STKI Do not remove source or attribution from any graphic or portion of graphic 36
  • 37. STKI Israeli Positioning • Not a technological positioning, refers only to Israeli market • Focused on enterprise market (not SMB) Vendor A • Not an STKI recommendation Vendor B t Market Presence (X) ü Market share - existing and new sales (more emphasis) Local Support ü Mind share (how user organizations rate vendors) Your Text here Your Text here Worldwide t Local Support (Y) – is influenced by (X) Leader ü Experience & technical knowledge, localization, support, number and kind of integrators t Worldwide leaders marked, based on global positioning t Vendors to watch: Are only just entering Israeli Market so can’t be positioned but should be watched Vendors to Watch: Vendor C Market Presence Galit Fein’s work Copyright 2009 @STKI Do not remove source or attribution from any graphic or portion of graphic 37
  • 38. Office of ITG/ PPM- Positioning of the Israeli Market the CIO Vendors to Watch: Compuware IBM Worldwide Leader CA Enterprise Local Support Local Solution HP Your Text here Your Text here Mid-Tier Microsoft MSP PS Next This analysis should be used with its supporting documents Market Presence Galit Fein’s work Copyright 2009 @STKI Do not remove source or attribution from any graphic or portion of graphic 38
  • 39. Project Mngt - Positioning of the Office of the CIO Israeli Market Vendors to Watch: Compuware IBM Microsoft Enterprise Existing Israeli Local Support CA experience in Your Text here Your Text here project mng PS Next Worldwide Leader HP Primavera This analysis should be used with its supporting documents Market Presence Galit Fein’s work Copyright 2009 @STKI Do not remove source or attribution from any graphic or portion of graphic 39
  • 40. Office of Another opinion – not all is Bleak! the CIO • ITG is mostly suitable for large enterprises • There is great sense of control in SMBs • Expensive technology & methodology that require Your Text here Your Text here additional resources would bring the desired transparency which will also lead to interventions & high evolvement in IT budgets Galit Fein’s work Copyright 2009 @STKI Do not remove source or attribution from any graphic or portion of graphic 40
  • 41. IT in Aggressive Cost-Cutting Times ITAM Shift to IT Asset Mngt Technology budget Your Text here Your Text here discretionary Sourcing Models is mostly non- cost basis when discretionary Cloud Computing possible Galit Fein’s work Copyright 2009 @STKI Do not remove source or attribution from any graphic or portion of graphic 41
  • 42. IT Asset Management ITAM Some IT assets are still being managed like this Your Text here Your Text here Galit Fein’s work Copyright 2009 @STKI Do not remove source or attribution from any graphic or portion of graphic 42
  • 43. Software Licenses Mngt - Cost savings ITAM • Multiple purchasing options review – NOT automatic SW renewals! • Monitor the actual demand for SW licenses: Ø Inventory of all desktops & what is installed on each Ø AppsYour Text here abandoned, but the vendor is still receiving have been Your Text here licensing revenue Ø Overpayment for licenses that aren't being used applications” (result of volume discount) à “Shelf Good contract is not about getting a good price – it’s about assuring value! Galit Fein’s work Copyright 2009 @STKI Do not remove source or attribution from any graphic or portion of graphic 43
  • 44. IT Application Portfolio Mngt ITAM Israeli Trends • High variety between the ITOs Ø from having no idea where IT assets are – to ITAM with full SW usage metering with integration to ERP & HD • Major challenges: Your Text here Your Text here Ø SW Usage metering Ø Type of usage (change performance/ read only) • The tougher the formal procedures are - the easier ITAM • Lack of ITAM tools maturity • ITAM tools often viewed as an extension of ERP & PPM tools Galit Fein’s work Copyright 2009 @STKI Do not remove source or attribution from any graphic or portion of graphic 44
  • 45. Service Service Desk Desk HD is amongst the primary targets for cost cutting Your Text here Your Text here Galit Fein’s work Copyright 2009 @STKI Do not remove source or attribution from any graphic or portion of graphic 45
  • 46. Service Israeli Trends of Service Desk Desk • Although a lot have been done to improve HD staff productivity: Ø Best practices (ITIL) widespread acceptance among large & more complex ITOs Your Text here Your Text here Ø Desktop configurations standardization Ø Sophisticated HD tools - web-based user self-service, automated email response SW, incident tracking systems Ø Remote access Upcoming STKI RT Ø Outsourcing on SD: 31/05/2009 Galit Fein’s work Copyright 2009 @STKI Do not remove source or attribution from any graphic or portion of graphic 46
  • 47. Vendors Trends of Service Desk Service Desk Tools • Vendors have followed with tools that assist in the implementation of ITIL processes • Major vendors have expanded their offerings: Your Text here Your Text here Ø Asset mngt portfolio Ø SaaS model Ø CMDB • Service desk mngt tool is a mature market Galit Fein’s work Copyright 2009 @STKI Do not remove source or attribution from any graphic or portion of graphic 47
  • 48. IT Service Desk – Service Desk Positioning of the Israeli Market Vendors to Watch: Microsoft IBM CA SAP Worldwide Local Support Leader BMC HP Enterprise Siebel Your Text here Your Text here MID-Tier IT HD Pivotal SysAid PeopleSoft Modules This analysis should be used with its supporting documents Market Presence Galit Fein’s work Copyright 2009 @STKI Do not remove source or attribution from any graphic or portion of graphic 48
  • 49. Sourcing IT in Aggressive Cost-Cutting Times Models Shift to Your Text here Your Text here Technology is not a discretionary Sourcing Models cost basis when discretionary asset possible Galit Fein’s work Copyright 2009 @STKI Do not remove source or attribution from any graphic or portion of graphic 49
  • 50. Sourcing Cost Cutting Outsourcing Models Your Text here Your Text here Galit Fein’s work Copyright 2009 @STKI Do not remove source or attribution from any graphic or portion of graphic 50
  • 51. Sourcing Global Trends of Outsourcing Models • Outsourcing landscape changing due to: ØGlobalization ØCloud Computing Your Text here Your Text here ØProviders will turn to SaaS during the financial crisis Galit Fein’s work Copyright 2009 @STKI Do not remove source or attribution from any graphic or portion of graphic 51
  • 52. Sourcing Global Trends of Outsourcing Models • ITOs will turn to outsourcing for cost cutting Ø Non-discretionary expenditure reduction Ø Avoidance of capital investment Your Text here Your Text here • Growing outsourcing segments: Ø QA Ø BPO - greater variety of offerings • Crowdsourcing – e.g: Amazon.com's Mechanical Turk (http://www.mturk.com/mturk/welcome) Galit Fein’s work Copyright 2009 @STKI Do not remove source or attribution from any graphic or portion of graphic 52
  • 53. Sourcing Israeli Trends of Outsourcing Models • Steady & mature market growth of 3% (from 405 to $417 M) • Outsourcing market grew this year due to increasing scope of existing client & a few new deals • Both largesthere Your Text deals of this year were comprehensive IT Your Text here outsourcing in Public sector • Rest of deals – small selective outsourcing • Decline in number of deals • NO backsourcing deals Galit Fein’s work Copyright 2009 @STKI Do not remove source or attribution from any graphic or portion of graphic 53
  • 54. Current Provider Landscape Sourcing Models Israeli Trends ØHP-EDS, Ness, Malam-Team, IBM ØNew global player: TCS (TATA) Your Text here Your Text here • Number of vendors went up in 2008 due to entrance of many specialized players: ØBynet, Taldor, Yael, El-AD, etc Galit Fein’s work Copyright 2009 @STKI Do not remove source or attribution from any graphic or portion of graphic 54
  • 55. Sourcing Israeli Nearshore Models • Acknowledging the advantage & cost saving (up to 50%) by outsourcing: the transition from PS to here Your Text outsourcing Matrix Global Your Text here • Existing clients have Malam (Ma’alot); Ness (EDC); Aman (Tehila) broaden their scope Offshore: NTS Galit Fein’s work Copyright 2009 @STKI Do not remove source or attribution from any graphic or portion of graphic 55
  • 56. Israeli Trends Sourcing Models of Professional Services • Professional services market has dropped • Mostly due to price & PS working hours reduction Ø PS provided, as promised, flexibility to org, which Your Text here Your Text here had to decrease their activity 2008 2009 2010 temps 72.0 -30.56% 50.0 50.00% 75.0 Galit Fein’s work Copyright 2009 @STKI Do not remove source or attribution from any graphic or portion of graphic 56
  • 57. Israeli Trends Sourcing Models of Professional Services 4Cheapest “Cost Plus” model à buying PS instead of the capacity Your Text here Your Text here 4Failure of the business model à NO premium for flexibility & providers’ financing: (overtime hours, sick pay, miluim, training, support, interest, etc) Galit Fein’s work Copyright 2009 @STKI Do not remove source or attribution from any graphic or portion of graphic 57
  • 58. IT in Aggressive Cost-Cutting Times Shift to Your Text here Your Text here Technology is not a discretionary Cloud Computing cost basis where discretionary asset possible Galit Fein’s work Copyright 2009 @STKI Do not remove source or attribution from any graphic or portion of graphic 58
  • 59. Cloud Computing Cloud Computing Definition • Cloud computing refers to highly scalable IT resources—SW, CPUs, storage capacity—that are housed outside of company data centers, available on demand over the Internet, & whose usage is measured & billed incrementally. Your Text here Your Text here • In-house clouds mimic those characteristics inside the company firewall but lack the economies of scale of public clouds. Source: Informationweek Galit Fein’s work Copyright 2009 @STKI Do not remove source or attribution from any graphic or portion of graphic 59
  • 60. Cloud Cloud Computing Benefits Computing • No Capital Expenditure but pay-per-use • Device & location independence Your Text here Your Text here • Performance is monitored 24x7 • Scalability • Innovation Galit Fein’s work Copyright 2009 @STKI Do not remove source or attribution from any graphic or portion of graphic 60
  • 61. Cloud Cloud Computing Challenges Computing • Mngt & monitoring ability of cloud companies • Credit dilemma • Reliability of cloud service providers (ISO, SAS70 -?) Your Text here Your Text here • Quality of informational security - Regulations issues • Job Security • TCO – Total Cost of Ownership – Will it become lower? Galit Fein’s work Copyright 2009 @STKI Do not remove source or attribution from any graphic or portion of graphic 61
  • 62. Types of Cloud Services Cloud Computing Cloud SW Multi tenancy/Platform-Centric/ User controls the data/ERP-CRM-HR Desktop as a Service PAAS Your Text here Your Text here Platform as a Service Desktop apps via the Internet Write your own application/ Development tools IAAS Infrastructure as a Service Servers / Storage / Networks Galit Fein’s work Copyright 2009 @STKI Do not remove source or attribution from any graphic or portion of graphic 62
  • 63. Cloud Computing Examples Cloud Computing PAAS Desktop as a Service Platform as a Service Docs & spreadsheets Your Text here Your Text here IAAS SAAS Infrastructure as a Service Software as a Service Galit Fein’s work Copyright 2009 @STKI Do not remove source or attribution from any graphic or portion of graphic 63
  • 64. Cloud Cloud Computing Trends Computing • Cloud computing not widely accepted yet Ø Reluctance to lose control Your Text here Your Text here • Main areas of increase: Ø Especially in IaaS area Ø In some markets SaaS is highly Source: Insight Research Corporation popular Galit Fein’s work Copyright 2009 @STKI Do not remove source or attribution from any graphic or portion of graphic 64
  • 65. Cloud The necessity to evaluate the new model Computing • Hot new area with great potential • ITOs are already starting to evaluate: Ø During companies acquisition Your Text here Your Text here Ø Shortage of cash, servers - while testing Amazon EC2 platform • During today’s economic crisis even the most conservative of people will have to evaluate the new model Galit Fein’s work Copyright 2009 @STKI Do not remove source or attribution from any graphic or portion of graphic 65
  • 66. Cloud STKI Recommendation Computing For Users: Ø to experience in the establishment of Amazon EC 2 servers Ø to use SaaS apps for marginal org. needs Your Text here (pilot) Your Text here For Vendors: Ø to evaluate which service/ product is appropriate for cloud work environment - to proceed the new players Galit Fein’s work Copyright 2009 @STKI Do not remove source or attribution from any graphic or portion of graphic 66
  • 67. Pricing Cloud Computing • Use- based charge: Infrastructure • S3 –$0.15c/month per a gig Cloud • EC2–pay per use via on demand VMs-$0.10 VM instance/hour. (Amazon) Desktop Cloud • Free to $10 per user per month Your Text here Your Text here • Pay per use: Platform Cloud • $15 per light license per month • Pay per seat: Cloud Application • CRM: $40-$140 per user per month High costs due to being a monopoly. Cost may go down when new comers arrive Galit Fein’s work Copyright 2009 @STKI Do not remove source or attribution from any graphic or portion of graphic 67
  • 68. IT in Aggressive Cost-Cutting Times ERM Financial Text herecrisis Your global YourEnterprise Risk Text here Increase spend forced better on IT risk mngt Mngt regulations & risk mng Galit Fein’s work Copyright 2009 @STKI Do not remove source or attribution from any graphic or portion of graphic 68
  • 69. Enterprise Risk Mngt ERM Bernard Madoff Your Text here Your Text here Galit Fein’s work Copyright 2009 @STKI Do not remove source or attribution from any graphic or portion of graphic 69
  • 70. IT Enterprise Risk Mngt ERM Global Trends 2009 • Global financial crises & increasing number of recent new regulations frauds exposed the need for & better enforcement • General dissatisfaction with poor corporate Your Text here Your Text here governance, regulatory oversight & risk mngt • Increased org. budget for regulation & risk mngt 2008 2009 2010 Governance & Risk Management (also BCP) 2009 @STKI35.0 remove42.86% 50.0 50.00% 75.0 Galit Fein’s work Copyright Do not source or attribution from any graphic or portion of graphic 70
  • 71. IT Enterprise Risk Mngt ERM Global Trends 2009 • Risk mngt based on set of approved standards raises the In-house level of customers confidence ITIL, CobiT, ISO methodology • Increased standards of regulation & risks mngt Your Text here Your Text here automation requires more • ITOs seek for solutions that meet regulations at minimal disruption reasonable cost & with Galit Fein’s work Copyright 2009 @STKI Do not remove source or attribution from any graphic or portion of graphic 71
  • 72. Enterprise Risk Management ERM • CEO must know what are the risks associated with IT investments just as he aware of risks associated with finance - Doubtful Debt / or other important risk • IT investment / project: Your Text here Your Text here aROI aBudget aSchedule ? Risk factors Galit Fein’s work Copyright 2009 @STKI Do not remove source or attribution from any graphic or portion of graphic 72
  • 73. Prepare to the Unpredictable ERM Satyam, Madoff Admits Who Can? Wipro, 50 Billion $ Fraud Comverse, IBM, Oracle, Amdocs, Infosys, Cognizant, firing HP 9/11 Your Text here Your Text here Banking crisis: Wall Street crisis Lehman Brothers bankruptcy Galit Fein’s work Copyright 2009 @STKI Do not remove source or attribution from any graphic or portion of graphic 73
  • 74. Top Pressures Driving ERM Enterprise Risk Mngt Top Pressers Driving ERM 46% New/ changing regulations YourBetter risk mngt Text here Your Text here 38% 31% Protect the organization 24% Improve operational efficiencies Source: Aberdeen Group 2008 Galit Fein’s work Copyright 2009 @STKI Do not remove source or attribution from any graphic or portion of graphic 74
  • 75. GRC – Governance, Risk & Compliance ERM unify compliance with risk mngt Process Balanced risk portfolio, examination development & of real, quantifiable procedures costs associated with establishment based different types of IT on set of risks measurements Your Text here Your Text here SOX / Sector regulations compliance Galit Fein’s work Copyright 2009 @STKI Do not remove source or attribution from any graphic or portion of graphic 75
  • 76. Current Situation in Israel ERM • Quick fix one-time, often outsourced, regulation projects • “SOX is the must have - it will not have strategic impact on the organization” Your Text here Your Text here • Fragmented approach to GRC is inefficient & becoming a huge cost driver • “Existing tools handle only documentation of SOX compliance procedures -they don’t check the level of enforcement!” Galit Fein’s work Copyright 2009 @STKI Do not remove source or attribution from any graphic or portion of graphic 76
  • 77. Governance, Risk & Compliance! ERM • Need for ongoing effort to comply with regulation • Firms can no longer afford to approach compliance as Your Text here Your Text here tactical project like meeting the SOX deadline • GRC technologies move from niche specialist vendors towards the large systems Galit Fein’s work Copyright 2009 @STKI Do not remove source or attribution from any graphic or portion of graphic 77
  • 78. The Growing Interest of SW vendors ERM • GRC acquisitions Ø 2006: SAP acquired Virsa, ERM SW provider, to bolster SAP’s SW compliance skills Ø 2007: Sun reached for startup Vaau Ø 2008: Oracle picked up longtime partner LogicalApps Your Text here Your Text here • Israeli new enforcement Start-ups: Ø Xpandion – Risk mngt & behavioral analyzing SW solution Ø SPATIQ – provides an automatic tool for Entitlement mngt • GRC often viewed as an extension of ERP & BPM tools • Tools cannot provide a complete solution without actual process change Galit Fein’s work Copyright 2009 @STKI Do not remove source or attribution from any graphic or portion of graphic 78
  • 79. IT in Aggressive Cost-Cutting Times Mobile Mobile; New business Your Text here Your Text here Innovation Social models Networking Upcoming STKI Round Table on Mobile: 06/05/2009 Galit Fein’s work Copyright 2009 @STKI Do not remove source or attribution from any graphic or portion of graphic 79
  • 80. Mobile Phones 2009 Mobile Mobile EVERYWHERE Your Text here Your Text here Galit Fein’s work Copyright 2009 @STKI Do not remove source or attribution from any graphic or portion of graphic 80
  • 81. The Mobile Revolution is just Begun Mobile • Mobile phones • Smart phones • Pocket PCs • PDAs Your Text here Your Text here Galit Fein’s work Copyright 2009 @STKI Do not remove source or attribution from any graphic or portion of graphic 81
  • 82. Mobile Phone - MEGA Trends 2009 Mobile Private Sector M O • Primary interface for Internet & Social Networks B • Personalization I L • Consumers will watch more TV on mobiles Text here E Your Text here Your • Dominant platform for listening to music T R • Mobile Wallet E N D S Galit Fein’s work Copyright 2009 @STKI Do not remove source or attribution from any graphic or portion of graphic 82
  • 83. Time Allocation per Mobile Smartphone Application Productivity Utility Games 1% 4% 4% Browsing 8% VoiceText here Voice Messaging Your Text here Your only 13%! 39% 13% PIM 15% Multimedia 17% Source: Smartphone 360 study Nokia Galit Fein’s work Copyright 2009 @STKI Do not remove source or attribution from any graphic or portion of graphic 83
  • 84. Mobile Phone - MEGA Trends 2009 Mobile Business Use M O • Greater variety of platforms & apps B • Increasing complexity & capacity I L • Employees use their private mobile devices for work so E Your Text here Your Text here expect org. technical support T Ø Therefore , outsourcing for R E technical support N D S Galit Fein’s work Copyright 2009 @STKI Do not remove source or attribution from any graphic or portion of graphic 84
  • 85. Mobile Phone - MEGA Trends 2009 Mobile Business & Private Use M O • ‘Real’ smart phone –blurring lines between B I business & personal use L • Constant Text here internet connection E Your Your Text here • Digitalized ID T R • Video conference through online accounts E N You won’t need your laptop anymore?! D S Galit Fein’s work Copyright 2009 @STKI Do not remove source or attribution from any graphic or portion of graphic 85
  • 86. When you’re NOT in front of the Computer Mobile Now you can: • purchase a product or service • conduct financial transactions • mobile ticketing Your Text here Your Text here • send/ receive digital pictures • download entertainment content Many org. haven't yet fully understood the opportunities offered by mobility Galit Fein’s work Copyright 2009 @STKI Do not remove source or attribution from any graphic or portion of graphic 86
  • 87. New–generation Mobile Apps: Mobile Remote monitoring Mobile Enterprise Mobile Commerce & control Location-based, Multiplayer, mobile Your Text here Your Text here Mobile ID/key context-aware gaming services services (GPS) Voice over Wireless IP Galit Fein’s work Copyright 2009 @STKI Do not remove source or attribution from any graphic or portion of graphic 87
  • 88. Mobile Enterprise – Field Force Mobile • Mobile workers –additional products/services offering to field customers • Access to/ update of enterprise info - guidance for fixing malfunctions, dynamic scheduling Your Text here Your Text here • Remote monitoring & control - Real-time field data analyzing (what, when, how much?) Selective Examples: Matrix (CallDinator)– Bezeq, HOT, Ort One (ONE1Mobile) – Bank Hapoalim, Hospitals Taldor – IDF, USPostal Galit Fein’s work Copyright 2009 @STKI Do not remove source or attribution from any graphic or portion of graphic 88
  • 89. Mobile Banking Mobile The use of a mobile phone for financial transactions Your Text here Your Text here Galit Fein’s work Copyright 2009 @STKI Do not remove source or attribution from any graphic or portion of graphic 89
  • 90. Mobile Banking Mobile • Bank transactions from any location in real-time: Ø Account activity, deposits/withdrawals, money transfer • Stock trading: Ø Real-time data, news & updates alerts, virtual stock portfolio, buying & selling of stocks Text here Your Text here Your • Credit cards: Ø Credit card charges Ø Real-time data of checking account balance, rapid loans Ø Location-based, context-aware services – relevant real-time discounts (mall parking, in-shop sale, etc) Selective Examples: Matrix (Bank2go) – Bank Leumi; Netwise – Mizrahi Live Galit Fein’s work Copyright 2009 @STKI Do not remove source or attribution from any graphic or portion of graphic 90
  • 91. Mobile Commerce Mobile • Online shopping Ø Purchasing retail items through scanning - mobile wallet • Advertising : Ø Mobile ROI measurement & analytics use to better deliver mobile campaigns & understanding consumer needs here Your Text here Your Text • Appointments reminders & scheduling, Martix medical results receiving: • Travel reservations & ticketing • Shorten business process - e.g. car acquisition – real time check on mobile - who is the owner, legal owner/stolen, does it have a test? Galit Fein’s work Copyright 2009 @STKI Do not remove source or attribution from any graphic or portion of graphic 91
  • 92. Mobile Players in Israel Mobile Partial List (alphabetical) Bynet (Paybox) • IBM (Lotus mobile) • Matrix (MMIS) • Ness (Sybase) • Netwise Text here Your (Mintbox) – browsing solution Your Text here • (Cellerium) – client solution • One (One1Mobile) • Taldor Galit Fein’s work Copyright 2009 @STKI Do not remove source or attribution from any graphic or portion of graphic 92
  • 93. Social Social Networking Networking Your Text here Your Text here Galit Fein’s work Copyright 2009 @STKI Do not remove source or attribution from any graphic or portion of graphic 93
  • 94. Social Why is Social Networking Important? Networking • ~500 million social network members • Be where consumers are & where future consumers will be • The largest & fastest growing application in the history Your Text here Your Text here of the web • Social networking extends the marketing reach of traditional methods : Ø Communication, Hiring, KM, Public relations, R & D Galit Fein’s work Copyright 2009 @STKI Do not remove source or attribution from any graphic or portion of graphic 94
  • 95. Social STKI Group in LinkedIn Networking During a 2 month period: 483 members from all of the world, tens of In online discussions, summit participation approvals Your Text here Your Text here Galit Fein’s work Copyright 2009 @STKI Do not remove source or attribution from any graphic or portion of graphic 95
  • 96. Social My Blog Networking Galit Fein’s World Your Text here Your Text here Current Country Totals From 15 Oct 2008 to 16 Feb 2009 Israel (IL) 2,203 Galit Fein’s work Copyright 2009 @STKI Do not remove source or attribution from any graphic or portion of graphic 96
  • 97. Summary • Increased focus on Office of the CIO à Advanced IT Gov.: Ø Business value / IT cost optimization Ø Innovation Ø Strategic alignment Your Text here Your Text here • Alternative Sourcing Models – Cloud Computing • GRC-Need for ongoing effort backed by mngt frameworks • New business models – Mobile, Social Networks Galit Fein’s work Copyright 2009 @STKI Do not remove source or attribution from any graphic or portion of graphic 97
  • 98. Your Text here Your Text here Galit Fein VP & Senior Analyst galit@stki.info Galit Fein’s work Copyright 2009 @STKI Do not remove source or attribution from any graphic or portion of graphic 98
  • 99. IT Budget Capex - Capital Expenditure mngt Allowed company to increase their profit in the yearly report by Your Text here Your Text here depreciating to the investment over several years Galit Fein’s work Copyright 2009 @STKI Do not remove source or attribution from any graphic or portion of graphic 99
  • 100. IT Budget What is Capex ? mngt Company‘s physical assets: Your Text here Your Text here Capex can include everything from repairing a roof to building a brand new factory Galit Fein’s work Copyright 2009 @STKI Do not remove source or attribution from any graphic or portion of graphic 100
  • 101. IT Budget Zero-Based Budgeting mngt • Bottom Up Budgeting - justification of all expenses must be done every year Your Text here Your Text here • Zero-Based Budgeting is built based on what is needed for the upcoming period Instead of History Based Budgeting Definition: Investopedia Galit Fein’s work Copyright 2009 @STKI Do not remove source or attribution from any graphic or portion of graphic 101