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Yves Caseau - IT Strategy for Digital Transformation – December 2018 1/20
Information Systems
for Digital Transformation
Yves Caseau
Group CIO, Michelin
National Academy of Technologies
http://informationsystemsbiology.blogspot.com/
https://twitter.com/ycaseau
Yves Caseau - IT Strategy for Digital Transformation – December 2018 2/20
Part 1 : Digital Transformation
Part 2: Digital-Ready
Information Systems
Part 3: IT Transformation
Outline
Multi-modal cell architecture
Biomimicry for layered complexity
Event-driven reactive flows
Self-optimizing through digital twin
Server-less thinking & monitoring
Lean capacity planning for resilience CAP: eventual consistency
C
A P
Support Systems:
Infrastructure, Data, Identity & security, orchestration, API, ….
Product
Development
Supply
Chain
Manu-
facturing
Services &
Solutions
Sales &
CRM
Yves Caseau - IT Strategy for Digital Transformation – December 2018 3/20
Industry 4.0 : Digital Manufacturing, Digital Twin & Digital Workspaces
 AI in Manufacturing to
absorb complexity
 cope with variability
 cope with manufacturing
process complexity
 Augmented humans and
augmented environments
 machine vision &
sensors for enhanced
perception
 End to End
process
optimization
Merck Example
Middleware / HA/ Containers
Shared
Datalake
Shared
Expert
Services
Infrastructucture / Security
Middleware / HA/ Containers
Middleware / HA/ Containers
Middleware / HA/ Containers
Digital Core (App Server / CICD)
Digital Twin
Digital Twin
Digital Twin
Information
Systems
PLM
ERP
MPM
Yves Caseau - IT Strategy for Digital Transformation – December 2018 4/204
Empower your customers to get what they want
“Markets are conversations”
Digital customer targeting enhanced with AI
e.g., Amadeus or IHG Continental
Leverage vibrant service ecosystems
to deliver the best experience.
Cf. Siri to Salesforce/Einstein integration
Exponential Technologies for Digital Customer Management
Yves Caseau - IT Strategy for Digital Transformation – December 2018 5/20
Digital Supply Chains meet Demand Management
Reactive Supply Chain and S&OP coupled with demand
management
Demand Management connected to manufacturing and
logistics
AI & ML to optimize complex chains : the FAA example
Yves Caseau - IT Strategy for Digital Transformation – December 2018 6/206
Product Development and Knowledge Engineering
AI and generative ML techniques
to re-invent product expertise
AI as a tool to capture, share and scale process and product
knowledge
Digital as a support tool for Lean Product Design
Customer to Design, Design to customer
Yves Caseau - IT Strategy for Digital Transformation – December 2018 7/20
“Software is eating the world”
The customer picks the (software) environment
for value creation (B2C & B2B)
Companies must learn to project their strengths outside and
to participates to extended value chains
 Platform to attract software ecosystems / outside excellence
Yves Caseau - IT Strategy for Digital Transformation – December 2018 8/20
Part II
Digital-Ready Information Systems
Yves Caseau - IT Strategy for Digital Transformation – December 2018 9/20
Information Systems as Core Digital Capability
 Digital Fabric
 API / integration
 High Availability
 Data infrastructure
 Support for IOT
 Security & Identity
 Share “digital core” … but
each digital world has its
own ecosystems
 “Servant Leadership”
position of IT services to
support software expansion
Digital Employee
Support Systems:
Infrastructure, Data, Identity & security, orchestration, API, ….
Product
Development
Supply
Chain
Manu-
facturing
Services
&
Solutions
Sales &
CRM
Yves Caseau - IT Strategy for Digital Transformation – December 2018 10/20
Exponential Information Systems : Ready for AI & ML
 Rich Toolbox
 Amazing progress
in perception
 Easily available (open source)
 Data infrastructure
 Lots of meta-heuristics
 Reinforcement
learning, Transfer learning
 Auto-encoders, Adversarial
training ….
 Randomization, Generation
 Expected from IT
 Modern SW stack
 Data infrastructure excellence
 Open architecture
Open
question
Precise
question
Few data Lots of data
Classical
« Data Science »
Machine
Learning
Rules
NLP, OR, …
Agents
Evolutionary Game Theory
Deep Learning
(CNN)
Semantic nets
(e.g. Watson)
Int elligence Artificielle et Apprent issage Aut omat ique –May 2018 8/16
Quelques éléments clés de la boîte-à-outils
l Regression linéaire
/ logistique
l Réseau Bayésien
l Régularisation
l (K-mean) clustering
l Random Forest
l Gradient Boosting
l Support-Vector
Machines
l Réseaux
Neuronaux
l Ontologies
l Lexicographie
l ARMA, ARIMA, etc.
2:La“boïte-à-outils
Yves Caseau - IT Strategy for Digital Transformation – December 2018 11/20
Reactive Systems
 Optimize for throughput & latency
 Complex Event Processing (CEP) &
automation
 Open boundaries (API)
 Transparent publish/subscribe
 Message-passing
 Hierarchical event model
 Scalable through distribution
 Leverage Internet-issued
technologies: e.g., Kafka
Event-Driven Open Reactive
Yves Caseau - IT Strategy for Digital Transformation – December 2018 12/20
Organize for Constant Change and Refresh
“Newton law” :
Energy to adapt = ‘System weight’ x Rate of change
 Information System as Flows
From continuous build to continuous delivery
“Whitebox integration” : scripting & abstraction
less code & higher level code
Yves Caseau - IT Strategy for Digital Transformation – December 2018 13/20
Data Infrastructure Principles
 Deconstructing databases
event-sourcing
 Hot & cold (e.g., l architecture)
 Flow computing lends to distribution
and serverless processing
Flows & Streams
 CAP Theorem
 Eventual consistency
synchronized with Business Processes
 Right-time architecture (events)
 REST API foundations
 Shared semantics (AI ready)
 Rosetta stone for standards and
platform strategy
Pivot Business Objects Change Driven
Yves Caseau - IT Strategy for Digital Transformation – December 2018 14/20
Part III
IT Transformation
Yves Caseau - IT Strategy for Digital Transformation – December 2018 15/20
Multi-Modal Cellular Architecture
 API based
 Modularity / decoupling
 Adapt to complexity
 Support variable refresh
rates
 Only way to cope with legacy
 Adapt to change from
Outside to inside
 Fractal pattern: generalization
of bi-modal (FAST IT on the
edge)
 Recursive Requirement:
Demand core API from your
suppliers !
Yves Caseau - IT Strategy for Digital Transformation – December 2018 16/20
Constant Focus on Technical Debt
Reduce inertia : pruning / refactoring / decommissioning
… Refactoring at system scale – modularity & decoupling
Automate install & des-install CI(CD)2 : Continuous Deletion
“Evergreen” up-to-date software & hardware infrastructure :
zero obsolescence / zero late patching
Yves Caseau - IT Strategy for Digital Transformation – December 2018 17/20
Resilient Architecture and Chaos Engineering
Resilience and High Availability is a critical performance
goal of digital systems
 Decoupling & Redundancy +
Monitoring & Automation
Chaos Engineering =>
Self-monitoring + self-optimizing + self-repair
Yves Caseau - IT Strategy for Digital Transformation – December 2018 18/20
Performance Engineering
 Throughput / latency / availability
 Cloud service orchestration (BAM)
 “Digital Twin” by design : CMDB,
introspection API and event logs
Activity monitoring
 Predictive maintenance for IT
 Splunk to advanced ML
 Self-healing : automate adaptative
behavior
 Transverse activity : business to
platform to infrastructure
 Key for change management
 Continuous testing (N+2)
Capacity Planning AI for IT
Yves Caseau - IT Strategy for Digital Transformation – December 2018 19/20
Software Craftmanship & Systems Engineering Culture
Continuous learning / kaizens and katas
Maximize autonomy for delivery teams
From “Show & Share” to “Love your code”
Develop and value software excellence
Lean & Agile software factories : Rites & tools
One customer / One system
Yves Caseau - IT Strategy for Digital Transformation – December 2018 20/20
 Exponential Information Systems to
support the digital transformation
 Systems Engineering has never been so
exciting 
Exponential revolution is happening now
 “It happens on the gemba”
We need to train a new generation of
business & process engineers with
hands-on IS experience
Multi-modal cell architecture
Biomimicry for layered complexity
Event-driven reactive flows
Self-optimizing through digital twin
Server-less thinking & monitoring Lean capacity planning for resilience
CAP: eventual consistency
C
A P
Conclusion

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Information Systems for Digital Transformation

  • 1. Yves Caseau - IT Strategy for Digital Transformation – December 2018 1/20 Information Systems for Digital Transformation Yves Caseau Group CIO, Michelin National Academy of Technologies http://informationsystemsbiology.blogspot.com/ https://twitter.com/ycaseau
  • 2. Yves Caseau - IT Strategy for Digital Transformation – December 2018 2/20 Part 1 : Digital Transformation Part 2: Digital-Ready Information Systems Part 3: IT Transformation Outline Multi-modal cell architecture Biomimicry for layered complexity Event-driven reactive flows Self-optimizing through digital twin Server-less thinking & monitoring Lean capacity planning for resilience CAP: eventual consistency C A P Support Systems: Infrastructure, Data, Identity & security, orchestration, API, …. Product Development Supply Chain Manu- facturing Services & Solutions Sales & CRM
  • 3. Yves Caseau - IT Strategy for Digital Transformation – December 2018 3/20 Industry 4.0 : Digital Manufacturing, Digital Twin & Digital Workspaces  AI in Manufacturing to absorb complexity  cope with variability  cope with manufacturing process complexity  Augmented humans and augmented environments  machine vision & sensors for enhanced perception  End to End process optimization Merck Example Middleware / HA/ Containers Shared Datalake Shared Expert Services Infrastructucture / Security Middleware / HA/ Containers Middleware / HA/ Containers Middleware / HA/ Containers Digital Core (App Server / CICD) Digital Twin Digital Twin Digital Twin Information Systems PLM ERP MPM
  • 4. Yves Caseau - IT Strategy for Digital Transformation – December 2018 4/204 Empower your customers to get what they want “Markets are conversations” Digital customer targeting enhanced with AI e.g., Amadeus or IHG Continental Leverage vibrant service ecosystems to deliver the best experience. Cf. Siri to Salesforce/Einstein integration Exponential Technologies for Digital Customer Management
  • 5. Yves Caseau - IT Strategy for Digital Transformation – December 2018 5/20 Digital Supply Chains meet Demand Management Reactive Supply Chain and S&OP coupled with demand management Demand Management connected to manufacturing and logistics AI & ML to optimize complex chains : the FAA example
  • 6. Yves Caseau - IT Strategy for Digital Transformation – December 2018 6/206 Product Development and Knowledge Engineering AI and generative ML techniques to re-invent product expertise AI as a tool to capture, share and scale process and product knowledge Digital as a support tool for Lean Product Design Customer to Design, Design to customer
  • 7. Yves Caseau - IT Strategy for Digital Transformation – December 2018 7/20 “Software is eating the world” The customer picks the (software) environment for value creation (B2C & B2B) Companies must learn to project their strengths outside and to participates to extended value chains  Platform to attract software ecosystems / outside excellence
  • 8. Yves Caseau - IT Strategy for Digital Transformation – December 2018 8/20 Part II Digital-Ready Information Systems
  • 9. Yves Caseau - IT Strategy for Digital Transformation – December 2018 9/20 Information Systems as Core Digital Capability  Digital Fabric  API / integration  High Availability  Data infrastructure  Support for IOT  Security & Identity  Share “digital core” … but each digital world has its own ecosystems  “Servant Leadership” position of IT services to support software expansion Digital Employee Support Systems: Infrastructure, Data, Identity & security, orchestration, API, …. Product Development Supply Chain Manu- facturing Services & Solutions Sales & CRM
  • 10. Yves Caseau - IT Strategy for Digital Transformation – December 2018 10/20 Exponential Information Systems : Ready for AI & ML  Rich Toolbox  Amazing progress in perception  Easily available (open source)  Data infrastructure  Lots of meta-heuristics  Reinforcement learning, Transfer learning  Auto-encoders, Adversarial training ….  Randomization, Generation  Expected from IT  Modern SW stack  Data infrastructure excellence  Open architecture Open question Precise question Few data Lots of data Classical « Data Science » Machine Learning Rules NLP, OR, … Agents Evolutionary Game Theory Deep Learning (CNN) Semantic nets (e.g. Watson) Int elligence Artificielle et Apprent issage Aut omat ique –May 2018 8/16 Quelques éléments clés de la boîte-à-outils l Regression linéaire / logistique l Réseau Bayésien l Régularisation l (K-mean) clustering l Random Forest l Gradient Boosting l Support-Vector Machines l Réseaux Neuronaux l Ontologies l Lexicographie l ARMA, ARIMA, etc. 2:La“boïte-à-outils
  • 11. Yves Caseau - IT Strategy for Digital Transformation – December 2018 11/20 Reactive Systems  Optimize for throughput & latency  Complex Event Processing (CEP) & automation  Open boundaries (API)  Transparent publish/subscribe  Message-passing  Hierarchical event model  Scalable through distribution  Leverage Internet-issued technologies: e.g., Kafka Event-Driven Open Reactive
  • 12. Yves Caseau - IT Strategy for Digital Transformation – December 2018 12/20 Organize for Constant Change and Refresh “Newton law” : Energy to adapt = ‘System weight’ x Rate of change  Information System as Flows From continuous build to continuous delivery “Whitebox integration” : scripting & abstraction less code & higher level code
  • 13. Yves Caseau - IT Strategy for Digital Transformation – December 2018 13/20 Data Infrastructure Principles  Deconstructing databases event-sourcing  Hot & cold (e.g., l architecture)  Flow computing lends to distribution and serverless processing Flows & Streams  CAP Theorem  Eventual consistency synchronized with Business Processes  Right-time architecture (events)  REST API foundations  Shared semantics (AI ready)  Rosetta stone for standards and platform strategy Pivot Business Objects Change Driven
  • 14. Yves Caseau - IT Strategy for Digital Transformation – December 2018 14/20 Part III IT Transformation
  • 15. Yves Caseau - IT Strategy for Digital Transformation – December 2018 15/20 Multi-Modal Cellular Architecture  API based  Modularity / decoupling  Adapt to complexity  Support variable refresh rates  Only way to cope with legacy  Adapt to change from Outside to inside  Fractal pattern: generalization of bi-modal (FAST IT on the edge)  Recursive Requirement: Demand core API from your suppliers !
  • 16. Yves Caseau - IT Strategy for Digital Transformation – December 2018 16/20 Constant Focus on Technical Debt Reduce inertia : pruning / refactoring / decommissioning … Refactoring at system scale – modularity & decoupling Automate install & des-install CI(CD)2 : Continuous Deletion “Evergreen” up-to-date software & hardware infrastructure : zero obsolescence / zero late patching
  • 17. Yves Caseau - IT Strategy for Digital Transformation – December 2018 17/20 Resilient Architecture and Chaos Engineering Resilience and High Availability is a critical performance goal of digital systems  Decoupling & Redundancy + Monitoring & Automation Chaos Engineering => Self-monitoring + self-optimizing + self-repair
  • 18. Yves Caseau - IT Strategy for Digital Transformation – December 2018 18/20 Performance Engineering  Throughput / latency / availability  Cloud service orchestration (BAM)  “Digital Twin” by design : CMDB, introspection API and event logs Activity monitoring  Predictive maintenance for IT  Splunk to advanced ML  Self-healing : automate adaptative behavior  Transverse activity : business to platform to infrastructure  Key for change management  Continuous testing (N+2) Capacity Planning AI for IT
  • 19. Yves Caseau - IT Strategy for Digital Transformation – December 2018 19/20 Software Craftmanship & Systems Engineering Culture Continuous learning / kaizens and katas Maximize autonomy for delivery teams From “Show & Share” to “Love your code” Develop and value software excellence Lean & Agile software factories : Rites & tools One customer / One system
  • 20. Yves Caseau - IT Strategy for Digital Transformation – December 2018 20/20  Exponential Information Systems to support the digital transformation  Systems Engineering has never been so exciting  Exponential revolution is happening now  “It happens on the gemba” We need to train a new generation of business & process engineers with hands-on IS experience Multi-modal cell architecture Biomimicry for layered complexity Event-driven reactive flows Self-optimizing through digital twin Server-less thinking & monitoring Lean capacity planning for resilience CAP: eventual consistency C A P Conclusion