This document discusses enterprise transformation and moving to the cloud. It notes that 70% of large change programs don't meet their goals. It discusses framing enterprise transformation as an "hourglass" with time against obsolescence. Successful transformations take a holistic approach with top-down and bottom-up sponsorship. The typical elements of a total cost of ownership analysis are discussed, but it is noted that looking only at TCO can disrupt a business case and strategic benefits should also be considered, which are usually 3 times the net TCO value. Savings from transformation should be reinvested in digital innovation.

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The Business Impact Of
Enterprise Transformation
Muneeb O. Ahsan – EMEA Enterprise Transformation Lead - AWS

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Key Takeaways
Be Clear On Why
This Transformation
Is Important To The
Customer Look beyond TCO to
Justify Enterprise
Transformation
Identify Savings To
Re-Invest Into
Digital Innovation

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Agenda
The Business Impact
Of Cloud
The Enterprise
Transformation
Business Case -
Journey
The TCO
Disrupting The
TCO
The Board Level
Business Case
Framing An Enterprise
Transformation

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70 percent of complex,
large-scale change
programs don’t reach their
stated goals.
McKinsey - 2016
https://www.mckinsey.com/industries/retail/our-insights/the-how-of-transformation

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GE: An Example Of A Successful Enterprise
Transformation – Shift From Legacy To Digital
Q1’14 Q2’14 Q3’14 Q4’14 Q1’15 Q2’15 Q3’15 Q4’15 Q1’16 Q2’16 Q3’16 Q4’16
117 147 210 242
377
493
629
884
1031
1312
1657
2066
1000
Migrating Over 9000 Workloads +
300 Disparate ERP Systems
1800
250
800
1000
Aviation Capital Corporate Energy
Mgmt.
GRC HC Intelligent
Platforms
Lighting
Oil &
Gas
Power &
Water
Renewable
Energy
SWCOE Transport
194 4
449
235 55 26 76
259 387
14 3
112
Current and Potential
Workloads by BU
465
250
1500
1200
250

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… Which Also Highlights The Journey From Retiring
Technical Debt To Reinvesting Into Digital Innovation
# of Technical
Debt Workloads
# of Digital
Innovation
Workloads
Currently
80% (Tech Debt)
20% (Digital Innovation)
Going forward
50% (Tech Debt)
50% (Digital Innovation)
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Short Term Medium Term Longer Term
% Of Legacy vs. Digital Workloads
Legacy Digital
Legacy To Digital Shift Trend - Pace

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Successful Enterprise
Transformations costs savings
to invest Into Digital Workloads

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Agenda
The Business Impact
Of Cloud
The Enterprise
Transformation
Business Case -
Journey
Framing An Enterprise
Transformation

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“In a leaking boat, energy devoted
to changing vessels is more productive than energy
devoted to patching leaks.”
— Warren Buffett
“Change is inevitable—except from a vending
machine.” —Robert C Gallagher
“If you want to make enemies, try
to change something.” —Woodrow Wilson

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Let’s Think Of Enterprise Transformation Like An
Hourglass, Counting Time Against Obsolescence
Your
Strategy
Time
YOUR
VISION
Top Line Growth
ABILITY TO
EXUECUTE
Bottom Line Savings
Digital leaders
are 26% more
profitable, on
average, than
their industry
peers.
Source: CapGemini and MIT, "The Digital Advantage: How digital leaders outperform their peers in every industry"

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We Often See Transformations Starting With An IT
Objective & An IT ‘Inspired’ Solution
Business
Strategy
Market &
Customer Vision
Cloud
Strategy
Operating
Model
Application &
Infrastructure
Roadmap
How Can Value Be Realised & Infused Into The Org.?
What Is The Optimal Solution?
Why Change?
Where Should Change Start From?
Let’s Do
Analytics &
Build A Team
Let’s Pick A
Vendor & POC
It
Let’s Sell It To
The Business
Let’s Sell It To
The CEO

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Successful Enterprise Transformations Take A Holistic
Approach, With Top-Down & Bottom Up Sponsorship..
Business
Strategy
Market &
Customer Vision
AWS
Cloud
Strategy
Operating
Model
Application &
Infrastructure
Roadmap
Why Change?
CEO Sold On
Digital
Transformation
Where Should Change Start From?
Business
Leaders Aligned
To Benefits
What Is The Optimal Solution?
Solution
Blueprint
How Can Value Be Realised & Infused Into The Org.?
Centres of
Excellence /
Innovation

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 Cloud Workload &
Application Portfolio
Analysis
 Solution Architecture
 Optimal
Implementation
Approach
CLOUD ARCHITECTURE &
CAPABILITIES
What Is The Optimal AWS
Cloud Architecture?
…Which When Broken Down Further, Builds The
Foundations Of A Cloud Strategy
AWS INNOVATION ROADMAP
STRATEGIC VALUE OF CHANGE
Why Change?
 Case for Change /
Business Drivers For
Change Identified
 Risk Management
 Business Case
 Application Down /
Infra. Up?
 Business / IT Readiness
 Sourcing Approach e.g.
Who will deliver?
CLOUD FORMATION
Where Should Change
Start From?
 IT Operating Model
Analysis
 Centre of Excellence
BENEFITS REALISATION &
OPTIMISATION
How Can Value Be Realised
& Infused Into The Org.?

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Be Clear On Why This
Transformation Is Important
To The Customer

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Agenda
The Business Impact
Of Cloud
The Enterprise
Transformation
Business Case -
Journey
Framing An Enterprise
Transformation

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Not everything that can be counted counts,
and not everything that counts can be
counted. -Albert Einstein
How many millionaires do you know who
have become wealthy by investing in
savings accounts? I rest my case. -Robert G.
Allen

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The Typical Core Elements Of A TCO
People
Costs
Third Party
Costs
Infrastructure
Costs
Application
Costs
Migration
Costs

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5 Year TCO Between On-Premise vs. AWS
A Difference Of
38% Over 5
years (£7.7m)
$11,870,156
$7,122,094
$0
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
On-Premise AWS
On-Premise vs. AWS Database
Transformation over 5 years
Compute Network Storage IT Labour Software
£12.7m
£20.4m

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Stakeholders Beyond IT Can Quickly Destroy Your
TCO – From £7.7m to Negative £4.6m
Vendor Management Finance - Office Of The CFO

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Consider Strategic Benefits Beyond IT - £23m in
Strategic Benefits - Usually 3x The Net TCO Value
Board Level Benefits Case – Enterprise Transformation

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Look beyond TCO… They can
be ‘disrupted’
Build a business case with
strategic benefits

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Concluding Thoughts
Be Clear On Why
This Transformation
Is Important To The
Customer Look beyond TCO to
Justify Enterprise
Transformation
Identify Savings To
Re-Invest Into
Digital Innovation

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Thank You.
Muneeb O. Ahsan
EMEA Enterprise Transformation Lead -
AWS