1. Are Clouds a Game Change? Business says Yes; IT says No!
Synopsis
The technology industry has frequently been challenged
over its ability to ‘hype’ or ‘misrepresent’ a topic, but in
the case of Clouds a remarkable new challenge has
occurred in the difference in the view of what clouds
represent to Business and IT managers. How can this be?
And why are the 2012 predications of Analysts adding
‘fuel to the flames’ of the Cloud debate.
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2. Are Clouds a Game Change?
Business says Yes! IT says No!
Andy Mulholland
Global Chief Technology Officer, Capgemini Group

3. This presentation
The difference between Cloud as a cohesive set of capabilities that
1 together with Mobility, Big Data and Social Networks create a
revolution in business capabilities
The use of key technologies from the Cloud to provide an
2 evolutionary set of capabilities to Enterprise IT
Provides a ‘use case’ model to illustrate these differences
3 in a ‘real’ business situation
Explores the drivers and the predicted change
4 in Enterprise Investment
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4. But we are playing in a new confused model and need „partners‟
Front
Productivity of People Innovative Business Models New
Office Social Networking Digital Transformation Markets
Internal Collaboration Servicing customers & Revenues
Tablets & Smart Phones Front Office Revolution
The Transformed Enterprise
Evolution of IT Capabilities Computing Resource Shift
Back External
Virtualisation of Data Center Everything as a Service
Office Resourcing
Internal Flexibility and Agility IaaS, PaaS, & SaaS
Development & Test
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5. Making it understandable by an Example: Servicing the Aircraft
Traditional IT Applications Cloud based Services
Individual synchronised predictions on Real time operations and reactions
plane scheduled arrival and activities with between staff sharing information and
staff inside the firewall communications
Outside – In
Back Office IT Back Office IT Back Office IT Back Office IT Back Office IT Back Office IT
Inside – Out
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6. A Transformed Enterprise uses an external Business Model
Business Technology
Information
Orchestrations
Technology
Enterprise
Architecture
Inside – Out
Back Office IT
• Unstructured Events
• Structured Procedural • Loose Coupled
• Close Coupled • State-less
• State-full Outside – In • Non - Deterministic
• Deterministic
• Monolithic Applications
Front Office • Granular Services
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7. The Transformed Enterprise has added a whole new environment
Outside – In
Inside – Out Front Office
Back Office IT
Enterprise IT Structured by Business Technology
Data and Procedure Unstructured Events
Work is delivered as expected Respond to the buyer
to the Worker/Manager and the market
Roles and Unable to tell who may
Responsibilities know the answer or the
are clear names of all the people
eMail is effective Social Networks
to communicate are the most
to these known effective tool as
people and they are ‘topic’
process centric and
therefore scale
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8. And its a Web based revolution continued to the next level
The current final stage in the development of a technology revolution;
1. The Internet - standardisation of connectivity
2. The Web (1.0) - standardisation of content
3. Web 2.0 - standardisation of social interactions
4. Clouds - standardisation of process elements
A shift from Client-Server Technology which is; Close Coupled; State full and Deterministic
To Browser-Cloud Technology which is; Loose Coupled; Stateless and Non Deterministic
It‟s not possible to make an architectural drawing illustrating what system
The result? is connected to what system, how and for what, as a result; Connectivity
and Functionality can only be shown to a specific Cloud
Boundaryless Information Flow is technically possible now
but we need to grasp process challenges.
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9. The Transformed Enterprise is an „Integrated‟ Enterprise;
Technically, Commercially and above all in its Processes!
Productivity Innovative Business Models
of People
Focus is
‘Inside – Out’ Focus is
‘Outside – In’
Evolution Services
Browser - Web
Applications of IT
Computing Resources Loose Coupled
Client Server
Stateless
Close Coupled
Non Deterministic
State-Full
Deterministic

10. A Transformation driven by People as Workers and as Customers
You don‟t any longer do the following: But you do seek
verification of facts
Check cinema showings by using the newspaper Buy tickets online and insights by checking
social networks
Go to a travel agent to research your holiday Book on line
increasingly
Check a map for directions when driving Use a navigator
Visit a bank for every transaction Online bank account
Develop and send off photographs Print at home or share by cloud
Pay bills by check or at an office Online payments
Because most of you bought a Smart Phone or a Tablet or a Home PC
According to DigiTimes sources, non-Apple tablets are set to ship at 134% more units for 2012 than in the current
You don‟t
year. In raw numbers, expect 44-45 million non-Apple tablets to ship in 2012, up from 19-20 million. The large
buy an iPad
increase is attributed to Google’s next major Android release, codenamed Ice Cream Sandwich,
to use with
2011 iPad shipment forecast cut to 40M as Apple faces 'the mother of all backlogs' Enterprise IT
Android Smart Phone up 379% in Q2 2011, Android is now the No. 1 smart phone OS worldwide. The smart
phone market grew 73% year-over-year to more than 107.7 million units shipped last quarter.
The majority
Apple Mac Downloads – Dec 12th 2011 “In just three years the App Store changed how people get mobile apps, of Smart
and now the Mac App Store is changing the traditional PC software industry,” said Philip Schiller, Apple‟s senior Phones are
vice president of Worldwide Marketing. “With more than 100 million downloads in less than a year, the Mac App user owned
Store is the largest and fastest growing PC software store in the world.”

11. And noted in Gartner Predictions for 2012
Those cloud and mobile factors bring capabilities to handle mass amounts of data in
new ways, but also changes in responsibility for internal IT departments and their
accompanying budgets, Plummer said.
"As users take more control of the devices they will use, business managers are taking more
control of the budgets IT organizations have watched this shift over the last few years. As the
world of IT moves forward, CIOs are finding that they must coordinate their activities in a
much wider scope than they once controlled,” Plummer said. “While this might be a difficult
prospect for IT departments, they must now adapt or be swept aside.“
Gartner predicts up to 35 percent of enterprise IT expenditures will be
managed outside of the IT department’s budget by 2015.
Because of this financial shift, IT departments will not always be contextualized
by the technology that surrounds them, and their budgets will more often be
reallocated to other areas in the enterprise or redefined on the basis of projects,
according to Gartner.
Source: http://www.information-management.com/news/cloud-unstructured-data-mobile-Gartner-2012-10021632-
1.html?ET=informationmgmt%3Ae2781%3A2263207a%3A&st=email
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12. Transforming the 1990s BPR and ERP internal Business Model
Health & Medical Integrated
Pharmaceutical Medical
Information analysis Network
diagnosis
condition
monitoring
healthcare
records contraindications
treatment Pharmaceutical drug interactions
search options Business diagnostics
viral
Patient marketing
business safety
health architecture management
education brand strategic
management management
regulatory Regulators
recruitment approval
life care
treatment
product partner guidelines
disease
portfolio management
management management trials marketing
treatment
commercial
choice personalised manufacturing
management
treatment
logistics
dispensing new product
animal models development
prescribing analysis
sales
novel
care epidemiology diagnostics discovery
Healthcare Suppliers
surrogate
end-points
basic off-label
research use
Academia

13. Which introduces the misunderstood topic of „Innovation‟ (in Business Models)
Exclusive membership
Replace a CapEx product
Affinity Club MBNA offering advantages for Pay-as-you-go SalesForce.com
with an OpEx service
subs and loyalty
Match buyers and sellers Expensive item free,
Brokerage Century 21st for a fee on successful Premium Photocopiers creating a tied market for
transactions consumables
Construct new proposition
Set high price and allow
Bundling iPod / iTunes by simplifying complex Reverse Auction Elance.com
bidding downward
transactions
Outsourcing content Provide low-cost
Crowd Sourcing Wikipedia construction in exchange Reverse Premium iPod consumables to sell
for broader view high-margin product
Using technology to deliver Switch from selling a unit
Product to
Disintermediation WebMD direct not through limited Hilti to providing units as a
local source Service managed service
Customer pays for a part of Package combinations of
Fractionalisation NetJets the product but gets full use Smart Devices Vodafone product and services to
when needed maximise market
Basic service is free and Low-cost standardised
Freemium Skype ubiquitous with premium Standardisation MinuteClinc solution instead of
chargeable high-cost customisation
Recycle expensive products Subscription fee creates a
Leasing MachineryLink
through a managed lease
Subscription Club NetFlix
tied in customer base
Low cost, self service in Managed network for
User
LowTouch SouthWest place of high cost with high Angie’s List common interest with
service Communities revenue by advertising
Re-arbitrage the „sell and
Negative Operation Amazon buy‟ cycle to finance the
trader
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14. The Innovation is to adopt people centric business models
The three common forms of innovation
To create VALUE though a new For SERVICABILITY to secure To change COST of production
market or product existing and new customers and size of available market
A game-changing move that Where market or product A break through in any element
provides sustained „first mover‟ cannot be innovated, service of the operation of an enterprise
advantage can be used
The barriers to innovation
Defocusing and loss of Optimisation Conway’s Law
The immediate and obvious challenge that Enterprises cannot change beyond the
any change will bring to an Enterprise constraints of their communications
BUT Change is inevitable
Innovation is about controlling the timing and basis of change to be advantageous to our own business
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15. Outside – In is enabled by four Big Game changing Capabilities
Mobility Social Tools
Any Connection Any Community
Any Device Any Media
Any Service Any Person
Cloud Big Data
Computer Resources Real-Time Information
Apps and Services And Intelligence
On Demand Storage and Search
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5

16. Its not just a revolution in Technology but in working practices too
Traditionalist Boomers Gen X Millennials
(55 - 65) (45 – 55) (30 – 45) (18 – 30)
Training The hard way Too much and I’ll leave Required to keep me Continuous and expected
Collaborative and
Learning style Classroom Facilitated Independent
networked
Communication style Top-down Guarded Hub and spoke Collaborative
Problem-solving Hierarchical Horizontal Independent Collaborative
Decision-making Seeks approval Team informed Team included Team decided
Leadership style Command and control Get out of the way Coach Partner
Feedback No news is good news Once per year Weekly/Daily On Demand
Technology use Uncomfortable Unsure Unable to work without it Expected to be Intuitive
Job changing Unwise Sets me back Necessary Part of my daily routine
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17. Summary
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