Microsoft Next 2014 - Keynote2 - ISS and Cloud, v. Henrik Trepka 291014

1. Henrik Trepka, Group CIO, ISS A/S
Microsoft Next –All about Cloud
29. oktober2014, Bella Center
Cloud-løsningergiver ISS konkurrencefordele

2. Agenda
2
1
2
3
Introduction to ISS
Which Cloud?
ISS and Cloud

3. 3
ISS Vision
3

4. World’s Best Outsourcing Provider
ISS Ranking since 2008
2008: 31
2009: 7
2010: 6
2011: 2
2012: 5
2013: 1
2014: 1
4

5. Financial highlights of 2013
5
Revenue
78,459
2012: 79,454
Operating Profit
4,315
2012: 4,411
Operating Margin
5.5%
2012: 5.6%
Number of employees
522,000
2012: 534,373

6. What we do
49%
Cleaning29,583,169,977 total m2 of Cleaning Contracts served. Globally. Annually. Includes IFS Contracts.
11%
Catering1,164,547 total mealsprepared per day. Globally.
8%
Support<45,000 Receptions manned. Globally. Daily.
8%
SecurityMore than 498,341 h training hours within Security Service
19%
PropertyMore than 7,000 employed engineers.
4%
Facility Management3 million work orders generatedper year in the ISS Facility Management System.
6

7. Whowedo it for
End-market exposureFocused on the segments most receptive to our offering. Diversified exposure to end-markets.
Delivery model
Single service excellence with IFS upside. IFS 26%
Global presenceA strong mix of Europe and Emerging Markets
Client sizeMargin upside through optimisation of the customer base. Focus on larger clients
Business Services & IT
Industry & Manufacturing
Public Administration
Healthcare
Retail & Wholesale
Transportation & Infrastructure
Energy & Resources
Single services
Multi-services
Integrated Facility Services (IFS)
Key Accounts
Large & Medium
Small
Route based
Western Europe
Nordic
Asia
Pacific
Latin America
North America
Eastern Europe
7

8. How we deliver our value proposition
We self-deliver services with our own employees who apply our processes and enabling technology
People
To deliver the service
Processes
To ensure quality and consistency
Technology
To automate and ensure transparency
INSIGHT@ISS
FMS@ISS
CRM@ISS
CRAM@ISS
8

9. ISS global IT architecture
9
Builds the future
Drives Differentiation
Drives Operational Efficiencies
Global network
Office365
Security
Standard/ Comodity
Unique
INFRASTRUCTURE
SYSTEM OF RECORD
SYSTEM OF ENGAGEMENT
INNOVATION
ISS global IT architecture is build upon a global standard infrastructure as basis for a number of unique ISS systems
Foundation of IT operation –Utility Mindset
Purpose
Example
ERP
FMS@ISS
INSIGHT@ISS

10. Emergingmegatrend –Internet of Things
10
Source: www.cognizant.com/smac

11. We are entering the 3rd IT revolution for enterprises
11
60’ & 70’ –Industrial Era
Role of technology
Key source of data
CIO Challenge
Process Automation through ERP
Process standardisation
Data on internal enterprise processes
Apply new computing models to established ways of doing business
Align IT to Business
Rise of the Internet
Coordination and integration across individual activities to global supply chains
Data on cross-enterprise processes
Apply new computing models to established ways of doing business
Align IT to Business
80’, 90’, 00’ –Information Era
IT as integral part of the Product itself (IoT)
Business is now technology and technology is the business
Multiple types of data from each product and customer
New technology is creating new business models
IT is an integral part of business (and key attribute of product) – and at the heart of product development –Value Proposition
2015 ->

12. Michael Porter: New Technology Stack for smart connected products
12
Identity
and
Security
Product Cloud
Connectivity
Product
External
Informa-tion
Sources
Integration
with
business
systems
Source: Harvard Business Review November 2014

13. The Sportsmarketis changingthroughintegratingsensors in products. 13
Product + Connectivity + Cloud
No longer a shoeproduct–but an IT productto improvepersonalphysicalhealth

14. The New Stackcreatesnew business models
14
Product +Connectivity +Cloud
No longer a dental product–but an IT productto improvepersonaldental health
Parent?

15. Our(old) world
15

16. The ISS 2020 Vision series:
New Ways of Working is changing the role of the office
16

17. 17

18. 18

19. 19

20. 20

21. 21

22. Smart Buildings is changingFacility management.
22
Product +Connectivity +Cloud
Sensors connected to the ISS Cloud
ISS Service Cloud

23. Integration of ISS sensors to exisitingoperationalsystems
23
INSIGHT@ISS
FMS@ISS
Service Performance
Service Delivery
Product +Connectivity +Cloud
No longer a ”cleaning” product –but an IT product to improve customer staff satisfaction and customer asset utilisation –and transparency
ISS Service Cloud

24. Our vision: Workplace will become an experience, not a facility
ISS Key customer value proposition enabled by the New
Technology Stack :
Provide service where and when needed based on data
Transparency to service delivery – globally, instantly
Improve service quality – from reactive to proactive
Ease of requesting service - Multi platform ”consumer”
Maximize utilization of customer assets based on evidence
Energy optimisation through analytics of building use
24
Through ISS global self delivery model – and
Cloud - we can deliver a unique value
proposition and transparency to Facilities
Services

25. If we started all over today, would we spend resources building this competency from scratch?
1
Are we so good at this, that other companies would likely pay us to deliver this service?
2
Is this area the part of our business from where we expect to source our future talent and leaders for our overall business?
3
Taking out complexity through being clear on our core
25

26. Product Cloud for stronger value proposition
ISS & Cloud –Enabling topline growth and lowering cost of IT
26
Builds the future
Drives Differentiation
Drives Operational Efficiencies
INFRASTRUCTURE
SYSTEM OF RECORD
SYSTEM OF ENGAGEMENT
INNOVATION
Utility IT service
Product Cloud
Infrastructure cloud for lower cost and flexibility
InfrastructureCloud

27. Summary: Cloudwillhave a profoundimpacton Facility Service
Internet of ”ISS Things”
Instrumentation of buildings–ISS sensors
Integration with customersystems –power, cooling… controlsystems
ISS Service cloud
ISS end-to-end IT security
ISS Customer value:
Enhancedcustomerservice experience
Bettercustomerasset utilisation
No needto focuson non-coreactivities–evidence
27
ISS Service Cloud

28. Recomendation: Go Cloud …Internet of YOUR Things
Infrastructure Cloud
Is just another way of sourcing a (commodity) IT service
Get started NOW… build your experience –you need it for the future
Product Cloud:
How to use sensors and the cloud in your product/services? Instrumentation?
How will your industry structure change?
IT has to be agile –and drive governance of enterprise architecture… (Cloud services could drive mushrooming business solutions)
CIOs Role
Get business attention to the new IT (R)evolution–IT engaged in strategy execution
28

29. Questions–duringthe break…
29
“The third wave of IT-driven transformation thus has the potential to be the biggest yet, triggering even more innovation, productivity gains, and economic growth than the previous two”
“Smart, connected products will have a transformative effect on industry structure”
Michael Porter, HBR, November 2014
“We see five key early verticals of adoption (Wearables, Cars, Homes, Cities, and Industrials) as test cases for what the IoTcan achieve.
Focus on: new products and sources of revenueand new ways to achieve cost efficiencies that can drive sustainable competitive advantages.
Key to watch: privacy and security concerns –a likely source of friction on the path to adoption.
Just as the first two waves of the Internet era led to profound changes in the economy, the internet of Things will create new winners and leave in this wake a host of losers based on companies’ abilities to adapt to a new world where things are connected.”
Goldman Sachs Equity Research (September 2014): The Internet of Things: The Next Mega-Trend

30. The End
30