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Digital Transformation Journey
This document discusses digital transformation and how companies can reimagine customer value in a digital world. It outlines how digital disruption will reshape markets in 3 years or less, displacing 40% of incumbents. It advocates adopting a platform approach and developing powerful ecosystems across industries. It also describes Cisco's operating model transformation to deliver IT services using a hybrid cloud approach with everything as a service. This simplifies operations and delivers data-driven insights for continuous innovation.
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Digital Transformation Journey
- 1. Reimagining Customer Valuein a Digital World Digital Transformation Journey Clayton Pyne clpyne@cisco.com @claytonpyne
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- 5. Digital Disruption WillReshape Markets and Industries Market incumbents displaced40% Companies actively responding1 in 4 Expected time to disruption*3YEARS
- 6. From Products toPlatforms Source: How Plaforms are Reshaping Strategy, Harvard Business Review (April, 2016) 2015: 92% of global profits 2007: 90% of the industry’s global profits
- 7. “Platforms Beat ProductsEvery Time” Marshall Van Alstyne, MIT Initiative on the Digital Economy Source: Platform Economy, Accenture (2016)
- 8. Powerful Platform EcosystemsIn Every Industry Source: Platform Economy, Accenture (2016) By 2018, IDC predicts that more than 50 percent of large enterprises—and more than 80 percent of enterprises with advanced digital transformation strategies—will create and/or partner with industry platforms
- 9. New Rules ofPlatform Strategy Everything As A Service Developer As Kingmaker Architecture & API Strategy User Experience Data As Competitive AdvantageSource: How Plaforms are Reshaping Strategy, Harvard Business Review (April, 2016) 2 1 3 From resource control to resource orchestration From internal optimisation to external interaction From a focus on customer value to a focus on ecosystem value Technology Foundation
- 11. Organic Innovation: TheDigital Process at Cisco Simplification Cloud Analytics Experience IT as a Service Operating Model Extend ACI, Hybrid Cloud Data as Differentiation Customer Success Security Enable New Business Models Security Everywhere
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- 13. Data Center Global networkfoundation | Cisco products plus select vendors | Flexible physical environments suited for growth Cisco Products EMC/ NetApp Global Facilities IaaS Catalyst of Service Architecture | Simplified Infrastructure Provisioning | Programmable & Policy Based Cisco UCS Cisco UC&V Cisco Security Cisco Network PaaS Orchestration Foundation | Automation | Open and API Driven | Removed 83% Cost Structure Cisco NSO DaaS Analytics | Visualization | Virtualization | Data Catalog of Services | Role Based Access Cisco Composite Cisco Tetration CDaaS Digitizing Planning to Release Process | Continuous Delivery Toolchain | 80% Agile – 20% Waterfall Cloud NativeERP Collaboration/ Spark APPaaS Mobile | Web | Machine Application Centric Infrastructure | Reduced Apps by 48% IOE/Policy SaaS Improved user experience drives growth | Increased data center utilization IaaS simplification cascades to the data center | PaaS efficiencies reduce data center complexity, power, and costs. Standardized PaaS bundles drive infrastructure efficiency | Containers help dynamically adjust load Better data on utilization trends foster better decisions for ongoing data center deployment, growth, and consolidation Better data provides guidance as to where/when to more effectively deploy infrastructure Data insights helped us avoid an unnecessary $20 million retrofit project Continuous delivery and insight stabilizes planning | further infrastructure efficiencies drive DC efficiencies CDaaS templating requires fewer environment types, optimizing infrastructure even further CDaaS refines control for streamlined development, staging, and production environments CDaaS toolchain templates provide clearer understanding of release automation process Cascading efficiencies from higher services continue to drive data center efficiencies APPaaS efficiencies cascade, freeing resources and optimizing infrastructure APPaaS efficiencies free platform resources Optimization of data types clarifies insight Application reductions streamline continuous delivery Security
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- 18. Malicious Code Launches User Clicksa Link or Malvertising Ransomware Payload Malicious Infrastructure
- 19. Umbrella Next-gen FirewallAMP Stealthwatch Umbrella blocks the request NGFW blocks the connection Web Security / Email Security block the file AMP for Endpoint blocks the file and communication back to home Umbrella blocks the request NGFW blocks the connection Stealthwatch and SLN detect the activity How Cisco Protects Customers
- 20. “We rolled outOpenDNS so quickly that our internal clients didn’t even notice.” Cisco IT Case Study “The deployment was as simple as adding four lines of code to the DNS config file on our internal DNS servers.” Cisco on Cisco Security
- 21. HYBRID CLOUD Adoption &Optimization
- 22. Cloud Adoption: ITWorld Becoming Hybrid Currently Using Public Cloud 34% 73% 83% 90% 92% Private Cloud 35% 75% 88% 93% 95% Lower Maturity Greater Maturity Source: IDC InfoBrief, sponsored by Cisco, Cloud Going Mainstream. All Are Trying, Some Are Benefiting;Few Are Maximizing Value.September 2016 28% 19% 17% 11% 3%
- 23. Network / L4-7Compute Security 1 Modernize Infrastructure: Open and Programmable Data Center 3 Build Your Private Cloud Private Cloud Stack Integrated Infrastructure Hybrid PublicPrivate4 Choose Any Cloud Self-Service Portal (IT as a Service) 6 Extend Policy Model 7 Move Data and Workloads Securely 5 Edge: Push Policy Model8 Security Everywhere 9 Analytics Everywhere10 Storage Policy2 Automate and Simplify Cisco’s Policy-Driven Hybrid Cloud Model
- 24. Enhancing Bi-Modal ITwith ACI and CloudCenter ACI, UCS, UCSD = Mode 1 Public Cloud = Mode 2 Stability With on Premises Model 1. Agility with Public Model 2. Manufacturing IT Department Recent Acquired Company Marketing Department
- 25. Greater Business Agility Lower Capital Expenses ReducedCosts/ Complexity Lower Operating Cost Resource Optimization Cisco on Cisco ACI 58% 25% 21% 45% 10–20% Reduce Network Provisioning CAPEX Reduction Reduce Management Costs Reduce Power and Cooling Costs Compute and Storage Optimization
- 26. Digital Transformation Principles ENABLE NewBusiness Models SIMPLIFY Everything As A Service BUILD Hybrid Cloud, Loosely Coupled,Microservices DELIVER Data as Basis For Competitive Advantage DRIVE Speed, Continuous Delivery, DevOps SECURE Everywhere