Clouds, crowds, channel and cool devices

3. Technology Evolution ---industrial age---information age---digital age

5. Journey to a totally digital world Transformation & Enablement • Interaction and collaboration • Better customer relationships • Increasing agility - new market growth • Enabling innovation 4 ©2012 Deloitte. All rights reserved

6. Journey to a totally digital world • Is mobile network operations going to be the bank of future? • Will the retailer of the future be a hybrid-bank, a marketing company or a technology provider? • Are technology companies adopting the same market tensions as the fashion industry? • Will there be difference in business models or industry boundaries? Maybe companies of the future will be builders and managers of communities, where the end-user is driving continuously evolving and changing products and service catalogues 5 ©2012 Deloitte. All rights reserved

7. The 4 Cs The need for convergence

9. The 4 Cs Cloud Computing • Business model for innovation, for on-demand computing and accessibility Clouds • Inexpensive mass storage, high bandwidth, smart devices & consumer acceptance Cool Crowds devices Channel 8 ©2012 Deloitte. All rights reserved

10. The 4 Cs Cloud Computing Social Media • Business model for • A human element, innovation, for on-demand facilitating networks & computing and accessibility interactions (in real-time) Clouds to experience external • Inexpensive mass storage, high engagement, internal bandwidth, ideation, marketing & smart devices political collaboration & consumer acceptance Cool Crowds devices Channel We can expect changes involving social analytics, virtual currencies and a new wave of consumerism 9 ©2012 Deloitte. All rights reserved

11. The 4 Cs Cloud Computing Social Media • Business model for • A human element, innovation, for on-demand facilitating networks & computing and accessibility interactions (in real-time) Clouds to experience external • Inexpensive mass storage, high engagement, internal bandwidth, ideation, marketing & smart devices political collaboration & consumer acceptance Cool Crowds devices Internet and Broadband • Transactional medium that Channel spans industries, serving functions such as marketing, distribution & location-independent services 10 ©2012 Deloitte. All rights reserved

12. The 4 Cs Cloud Computing Social Media • Business model for • A human element, innovation, for on-demand facilitating networks & computing and accessibility interactions (in real-time) Clouds to experience external • Inexpensive mass storage, high engagement, internal bandwidth, ideation, marketing & smart devices political collaboration & consumer acceptance Cool Crowds devices Mobile devices Internet and Broadband • Powerful mobile devices • Transactional medium that increase productivity, Channel spans industries, serving connectivity anywhere functions such as anytime, innovative ways of marketing, distribution & doing business and new location-independent transactional capabilities services 11 ©2012 Deloitte. All rights reserved

14. The 4 Cs Clouds & Crowds • Cloud-based processing power Clouds • Social analytics Cool devices & Crowds • Social media Cool • Mobile Crowds workforce devices collaboration • News collection Channel 13 ©2012 Deloitte. All rights reserved

15. The 4 Cs Clouds & Crowds • Cloud-based processing power Clouds • Social analytics Cool devices & Crowds • Mobile Cool workforce Crowds collaboration devices • Social analytics • News collection Channel & Crowds Channel • Mobile transactions & social media creates new opportunities for consumers • Better marketing • Empowers retailers 14 ©2012 Deloitte. All rights reserved

16. The 4 Cs Clouds & Crowds • Cloud-based processing power Clouds • Social analytics Cool devices & Crowds • Mobile Cool workforce Crowds collaboration devices • Social analytics • News collection Channel & Cool Channel & Crowds devices Channel • Mobile transactions & social • Mobile transactions media creates new opportunities for consumers • Mobile workforce (productivity) • Better marketing • Voice and video calling • Empowers retailers 15 ©2012 Deloitte. All rights reserved

17. The 4 Cs Clouds & Cool devices Clouds & Crowds • Cloud-based processing • Cloud-based processing • Location independence power Clouds • Social analytics Clouds & Cool devices & Channel Crowds • Real-time traffic • Mobile • M2M Cool workforce • Crowds collaboration Accessibility devices • Social analytics • News collection Channel & Crowds Channel & Cool Channel • Mobile transactions & social devices media creates new • Mobile transactions opportunities for consumers • Voice and video calling • Better marketing • Mobile workforce • Empowers retailers 16 ©2012 Deloitte. All rights reserved

19. What have we seen thus far? • Rapid introduction of mobile devices • Increase in risk landscape • Insecure technologies • Push from users vs. push from business and ITs ability to adopt new technology • Bring Your Own Device / Consumerisation • Popularity among technical and non-technical users on every level • Blurring of company and personal use • Eruption of mobile device initiatives and projects • Link to social media and cloud solutions 18 ©2012 Deloitte. All rights reserved

20. The road ahead Where do we go from here?

21. Next steps 1 Alignment to strategy 2 Platforms & Where do you want to go? capabilities Customer needs What are the platforms and • Customer growth and demand capabilities you current have? Business imperatives Platforms • Priorities and plans • Applications (core, support) Value creating forces • Information • Changes to business models What are the • Infrastructure next steps / opportunities? • Benefits 3 Key considerations • Improvements 4 Roadmap What are the risks & potential issues? • ROI What are your current and • Security & Privacy future target strategies, opportunities & goals? • Availability Framework describing • Compliance • Business • Legal & Tax • Technology • Ownership • Architectures • Processes • Resources 20 ©2012 Deloitte. All rights reserved

22. 1 Alignment to strategy How do technologies and services align with business and IT strategic goals? • Examine specific business areas and activities to establish impact (i.e. minimal investment of time and money) • What business benefits can be derived by utilising new technologies, and to what degree? • Is the strategy align with value creation (elevated growth, improved marketability, expanded market share, enhanced productivity, increased differentiation or prolonged sustainability)? Example BUSINESS OBJECTIVE: Business analytics - understanding of business performance to elevate growth and expand their market share IT OBJECTIVE: Capacity to process data (requires a lot of computer processing power (occasional basis)), Cost & energy efficiency SOLUTION: Move data analytics to the cloud as a efficiency measure, by effectively “renting” capacity when required – Company gained performance it required at an affordable cost 21 ©2012 Deloitte. All rights reserved

23. 2 Platforms and capabilities What is your current state across each of the 4 components (clouds, crowds, the channel and cool devices)? • Examine existing applications and infrastructure (where do you already make use of the 4 Cs?). • What type of disruption would implementing new technologies cause? • What controls are in place to manage potential risks? • What future targets or projects are in the pipeline? • What are the staff implications of implementing new technologies? • Are internal IT architecture and organisational structures ready? Example OBJECTIVE: Assess the feasibility of implementing a cloud-based email system REQUIREMENTS: Flexibility and capacity OUTCOME: While there is a range of solutions on the market, non offered the flexibility and storage capacity required by the company 22 ©2012 Deloitte. All rights reserved

24. 2 Platforms and capabilities Applications Design Frameworks – use cases, target devices, functional requirements, etc. Architectures Data and application services affected. Infrastructure Understand the role of middleware and evaluate architecture options. Wireless Understand wireless expectations, authentication measures, reliability, security, Networks connectivity, etc. Security & Perform security reviews throughout development process, evaluate security for each Governance application stack. Develop a framework to address risks throughout the SDLC. Device Develop mobile device procurement, security and management standards, Define Management device management and data protection requirements and solutions. BYOD Develop a BYOD policy, Implement network access controls. Define minimum security requirements. Implement systems and processes to provide control. 23 ©2012 Deloitte. All rights reserved

25. 3 Key considerations Data Controls Who owns the data? How is it be used? Are controls in place? Security and How is security achieved? What is the level of privacy protection? Privacy Audit and Are there risk management controls to applications and data? Assurance Tax and Legal Can you meet needs for legal compliance and tax issues? Disaster Are data backup, retention, and disaster recovery practices sufficient? Recovery Vendor Is the vendor limiting interoperability or access to your data? “Lock-In” IT Operations What IT services and applications are best suited for the cloud? IT Readiness Are internal IT architecture and organisation structures “ready”? Alignment with Enterprise Risk and Governance strategy will help organisations address the operational hurdles to cloud adoption 24 ©2012 Deloitte. All rights reserved

26. 3 Key considerations How will sensitive data be restricted? Is a data classification framework in Data Controls place? What will these devices be used for? Are policies and procedures formalising Use acceptable use of mobile devices in place? Device How will these devices be managed (asset lifecycle process and restricted Management use)? How will the security of these devices be managed and monitored (mobile OS Security settings, authentication, network access control, wireless connections, application security standards)? What are the technology requirements (i.e. remote control, remote access of Technology virtual desktop solutions)? Providing employees with powerful mobile devices increases productivity and allows them to be continuously connected from anywhere 25 ©2012 Deloitte. All rights reserved

27. 3 Key considerations Who is responsible for data governance? Are key master data elements Data Controls managed? How do you: • Manage social media risks? • Account for new intangible assets and intellectual property? • Apply revenue recognition standards to new enterprise structures and Technical issues international accounting standards in other jurisdictions? • Manage the volume of data and data analytics work? • Deal with legal and tax issues in an emerging virtual space? • Advise on tax issues related to intercompany intellectual property transfers and associated transfer pricing? Explore ways to transform social presence to maximise benefits and mitigate risks 26 ©2012 Deloitte. All rights reserved

28. 3 Key considerations Example OBJECTIVE: Moving HR infrastructure into the cloud MAIN CONCERN: Hosting employee's personal information overseas MITIGATION: Controls to mitigate this concern should include: • Ensuring that the data remains in SA or • Adding a contractual obligation that requires the cloud provider to handle personal information according to the organisation’s requirements 27 ©2012 Deloitte. All rights reserved

29. 4 The road ahead What are your current and future target strategies, opportunities & goals? Roadmap Considerations Criteria Definition • Collective organisational values, beliefs, and behaviors support the IT Culture adoption of the new technology • The ability of functional units within an organisation to effectively Operational Environment adopt and utilize new technologies and services Transition Cost • The associated adoption costs, both tangible and intangible Capability Maturity • Readiness of a capability to be migrated Economic Return • The economic value of the adoption of new technologies The roadmap connects the current state to the proposed final state using the opportunity analysis and strategic decisions as the guiding principals to identify roadmap objectives and goals 28 ©2012 Deloitte. All rights reserved

30. Summary & Close

31. • The 4 Cs are likely to continue to compose and converge • Enabling organisations to serve their customers more efficiently and meet business demands in an agile way • Step-up and take advantage – an important first step 30 ©2012 Deloitte. All rights reserved

32. Contact information For additional information, please contact: Dr Mariana Carroll Leader - Cloud Computing Centre of Excellence Risk Advisory | Deloitte & Touché Mobile: +27 (0)83 333 5536 mcarroll@deloitte.co.za 31 ©2012 Deloitte. All rights reserved

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