Cloud capabilities – Future Shape of Corporate IT

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Corporate IT is challenged by Cloud and Mobile Devices. There are view that Corporate IT is going to replaced fully. My views are different and the presentation presents the evolution and how the Future looks like!

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Cloud capabilities – Future Shape of Corporate IT

  1. 1. Advent of Clouds – Role of the IT functionsClarity in DirectionBalaji Anbil1-May-2013Corporate Forum IT
  2. 2. Cloud – 2 Points 2 Ponder• Cloud definitionNoun: A visible mass ofcondensed water vapourfloating in theatmosphere, typicallyhigh above the ground.• Mobile Phones – PAYG
  3. 3. What to expect?• Not another cloud pros/cons topic• Not about “Why CFOs should look into Op-ex”• Not about “Cloud Migration…” How I see the future’s silhouette! An overview of required capabilities Preparing for next generation IT
  4. 4. Seeing what’s next?• There is no shortage of analysis into the future of Corporate IT− However, there are few studies that highlight the impact on basic shape andremit of the IT function• I usually look for clues…Semiconductor Foundries PayPal, Money in the Cloud!
  5. 5. But first, where are we?...DCLean-ITService DeskWorked hard over manyyears to establish“Enterprise architecture”Worked hard over manyyears to establish “FixedPrice – Cost Effective IT”
  6. 6. But first, where are we?...• Capabilities that were foundations to the ‘path taken’• IT projects and portfolio management• Software engineering and lifecycle (Many certifications)• Infrastructure to enterprise architecture (CCDA through to DYA)• Service Management (ITIL…)• Governance Frameworks (COBIT…)• Strategy & Management• and now we want ‘PAYG IT’ Services that might undo all our goodwork?
  7. 7. Back to history? – We have a choice!• Mainframes – CentralisedComputing• Users handling transactions ina dumb terminal, with ITfunctions in background7• PCs/Servers – Distributed, but lessconnected Computing• Users supported by IT functions inbackground edging into limelight• Internet led Connected &Distributed Computing• Users handling transactionsand technology – ITendeavouring• Internet & Smart Computing• Users handling informationand technology – IT inPartnership?
  8. 8. So, Clouds are here to ‘reign’ !• Most of these capabilities will be fully displaced into the clouds• In addition, Smartphones and Tablets are shaping the workforcepreferences heavily• Future IT organisation will need new capabilities to manage theseshifts…Rarely we get to see the future to this level ofclarity – ‘Start with an end in Mind’
  9. 9. So what’s the future like?
  10. 10. Tale from the mobile clouds…10Android tablet – farmers, geo-location, marigold, pharmaceutical‘Xanthophyll’ for protecting humaneyes and vision – 4 day harvestcyclesAlaskan airlines introduced IPads forPilots that have been very effective! –The PoC helped in reviewing theregulations and supported inamending those regulations!
  11. 11. A landscape of ‘Business Islands’ in a decade…Scale & Price for all sizes of business;Information Led “Business Islands”Mobile access would keep businesses ‘Informed’on the move…Historical clues…• PayPal – EBay• Chip Foundries – Swindon Silicon Systems
  12. 12. What might be IT’s role?“With Authorised Connectivity and Mobile Access, Users willsource the information they need…”If things were straight forward: We need, "to simply play an agent rolei.e. to provide reliable connectivity and authorised access”Assumption: ‘Information as a Service’ is also through cloud;hey! but this is where the value is!
  13. 13. Why develop the capabilities
  14. 14. Replenishing IT Capability for future…• Innovation Value Institutes’ IT CMF• 33 different capabilities of IT management• Typically 50% of these capabilities are alreadyon cloud and another 25% will be displaced• However new capabilities are requiredDelivery EngineInputsOutputsManage• ‘Enhanced’ form of the displaced capabilities• Research from CMM improvements as anindicator• 2-3 years for Maturity• Cloud & Mobile statistics around the worldshow that in 2-3 years these becomemainstream
  15. 15. Every Company is different• Common challenges (Supply/Demand side)• Shape of Future IT• Some building blocks15
  16. 16. Counter-factual future…
  17. 17. Future Generation IT
  18. 18. Key Challenges and how IT can respond…Cloud ArchitectureService ManagementFinancial SkillsInternal IT ResponseConsult, Govern, PartnerConsult/PartnerCustomer RelationshipEmerging Silos : Domain specific clouds –IaaS, PaaS, SaaSIllusion of Infinite resources – not yet fullyoperational as ‘Cloud Provider’“Cost as the prime driver” to sellSupply SideBusiness keen to adopt CloudIT’s traditional approach of ‘Control’Maturity of Service management functionDemand Side
  19. 19. Key Challenges – Both Supply & Demand• Requirements & Contract – What dowe want and what are we buying?• Likes PAYG but prefers Fixed Price –Pricing Mechanisms• Industry wide ‘clouded’ skills –Training and CapabilityDevelopment• Need 2 Embrace IT as a ServicementalityDemand not metValue LostPoor FitUser Experience
  20. 20. Future of IT functions…• IT Department no longer presents itself to the business (in other words, its internalcustomers) as• Primary provider for delivering technical solutions,• but as the guarantor and manager of service level agreements (SLAs)• But has the advantage of understanding of the organization’s activities, culture andchallenges20A Supplier of services to the business through1. Services Strategy & Management2. Enable & Provision3. Service Support12 A facilitator for innovation and value-creation,through cloud and mobile technologyOperationalCapabilitiesIdeationCapabilities
  21. 21. Building Blocks - Future IT in SCM!!• Businesses will source, value-add and providetargeted services for customers• IT will be service provider in the value chaindelivering ‘Infoware1’21 1 – term coined by Tim O’Reilly in 1997Manage & StrategizeProvide/MaintainDiscover/DesignCloud skillsNetworksInfo.ArchService CatalogueCloud PipelineDecision Tree/Financial ModelsLean Centre For BusinessServices for CustomersService Chain Management and OperationsService ManagementIT SCM StrategyService ProvisionDiscovery & Design4. Simple1. Now2. Can I? 3. For Me
  22. 22. Take away…• Key Capabilities (Basic)• Service Management – CMDB, Catalogues…• Cloud & Information Architecture – “It’s Networks & Information!”• Start building the roadmap…• Greater Partnership with the business – Cloud Decision Tree & a Cloudpipeline• Build Pricing & Financial Frameworks• Prepare the networks & identity – Key enablers• Reshape IT workforce: Cloud skills
  23. 23. And do not let yourselves into a ‘cloud alone’situation…23

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