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RE-Invent IT Initiative

-”sometimes
it’s the journey
that teaches
you a lot about
your
destination”-
Drake

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Re-inventing IT
Initiative

“one foot on the


gas pedal
and one foot on the
brakes”

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Re-Invent IT & Cloud Stakeholders:
redesign core
New strategies &
systems, data insights
data-based centers, & (algorithms)
optimization automate processes based decision
procurement (with high SLA) making

Procurement CFO IT Managers LoB Managers Chief Data


VP Technologies Managers
Officer
(used to be called CIO)

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reorganize
IT’s technology
domains redesign
acting based integrated
on ‘insights” core systems

automate
cost
processes all over
optimization the organization
VP Technologies
(used to be called CIO)
4

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these initiatives fundamentally reshape how work gets done and set the 5
stage for new products and business models

Initiatives that re-invent IT


top down:

1. Innovation
drivers 2. Customer Centric
3. Employee Empowerment

Initiatives that re-invent IT


bottom up:
enablers
1. ITaaS
2. Cloud
3. Cyber Governance
4. Data-Centric

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Re-Invent IT Initiative Destination

Organizations are
transforming their
IT departments
into engines for
driving
(not only enabling) CIO’s failure to
business “re-invent IT”
(growth, algorithmic decision may lead to his
making and new opportunities) transition out
of the company

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VP Tech (CIOs) have to re-invent IT so that 7

1. shift in the role of the CIO


Business in the age of from technology operations customers expect a
innovation means that: manager to THE strategic modernized experience
business change leader online and mobile
2. company’s systems and all of its
This has led to an
-” organizations use a partners’ should be part of an
ecosystem in which data increased sense of
mix of technologies, competition
moves seamlessly throughout.
processes and smart
3. implement one unified
decision making integrated core system that BUT,
encompasses all new processes most systems are over
to maximize the
(human and robotic)
company’s competitive 30 years old.
4. Enabling prescriptive and
advantage .”- preventive analytics so that all improvement or change are
actions are based on required in such a
algorithmic integrated data competitive technology
systems. market.

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Re-invent IT Initiative

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Re-invent IT Initiative:

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Trek Name:
REORGANIZE TECHNOLOGY DOMAINS

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Next organizational structure model

move faster
adapt more quickly
learn more rapidly
embrace dynamic career demands

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Enterprise organized by function or
skillset is no longer valid

Here work people who


understand the technologies

Here work people who


understand the business

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Reorganizing IT structure and
breaking down silos

Speed trap

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learning and innovating


efficient& effective
network of agile teams (sharing
hierarchical knowledge)
functional people “create followers” to grow in
influence
lead by direction
lead by orchestration
rule-based
culture of risk-taking
roles/jobs defined teams and responsibilities defined but
upward promoted roles and titles change regularly

process-based project based

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Multi skilled, result oriented team

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Procure
ment

QA App PMO
DBA design
UX
mobile integration infra BA
Security budget
training
networking CTO

Skill oriented team Result oriented team

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IT Model B
An “enabler” organization
IT Model A
an “overhead” division

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Lean and Agile

Design Thinking RE-invent Organization

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Establish IT staff department

The goal is to New Run


• by managing resources
increase the share initiatives the
• using cheaper technologies
of the “New business • open source
Initiatives" to be • sourcing
50% •

automating
re- architecting legacy systems
of the budget

IT Budget

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‫מטה‬
VP
TECHNOLOGIES

BRM OCIO CTO ARCHITECT

IN Business/ IT Planning & Decisions re Whether to replace or


CHARGE experience control existing & new upgrade the core and
OF technologies surrounding systems

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Personalized services just in time
COO CFO HR CDO CMO CRO Data Officer

They ALL need easy data access and technology tools


NOW

• A strategic plan is built in advance


• Most of the budget is allocated in advance
• Very little room for change within a year

Methodological, well-arranged IT must put the


business customers in the center

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BRM – Business Relationship Manager

understands business strategy


mega technology trends
organizational risk appetite
customers' demands
budget allocation
the client’s
foreign minister
into IT organization

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Office of the CIO

OCIO IT budget
IT planning
Methodology and processes
Demand mngt
Project and Portfolio mngt and tools
IT resource mngt
Sometimes reports IT HR and skill mngt
to BRM Optional: QA/ HD/ GRC

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Trek Name:
REORGANIZE TECHNOLOGY DOMAINS

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Robotic Process Automation (RPA)


What it is?

RPA is a SW with AI & ML


capabilities, that mimics the human
way of doing things and can handle
high-volume, repeatable tasks

RPAs and bots will come of age in 2018 and


become commonplace across service and financial departments

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RPA – Do More with Less

Re-typing
Create spreadsheets Take data from one system and
Gather, organize, report re-key to another
financial info
Double check
Look for mistakes

Fill in
Repeat
forms
Exactly the same process
over and over again

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RPA – Why Now?


I don’t do
spreadsheets!
Workers are different Task Automation
Looking for meaningful job where Mimics the same tasks in a
they can contribute similar way
Time Consuming Hybris Automation
80% of people‘s time is taken up End-to-end process automation
by repetitive, manual tasks with robot-human interaction

Costly Automated process discovery


People are always the most valuable Deep learning & AI
Robot leveraging human actions
and expensive resource in the org. RPA
Human RPA New Generation
Error Prone Talent Revolutionize Business
It is only HUMAN.
Process Execution

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RPA is a Lifeline to the BPO

Outsourcing Staff Augmentation The 3rd alternative - RPA

RPA, with its significant cost savings and short deployment,


is presenting a 3rd alternative
to outsourcing and staff augmentation

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Application Programming Interface (API)
What about it?

API is a programming interface that API is a standard based simple


connects 2 SW programs, so that interface that allows you to plug in to
one can benefit from the other the power of bigger applications

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Open APIs
Why Now?
Majority of the interfaces are still
1
developed for specific project’s needs

Complex interdependencies between


2
systems are proliferating

Remediating existing legacy to be API-


3
friendly is akin to open-heart surgery

IT spaghetti diagram
Most of IT’s budget and effort go to paying back
technical debt and maintaining legacy assets

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Strategic approach managed by C-level
new value in existing assets

Asset
reuse
Scalability New markets

Asset New opportunities Competition


reuse
Agility Speed

Asset
reuse

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Re-invent IT Initiative:

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Trek Name:
COST OPTIMIZATION

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post-2018
pre-2018 it’s no longer as simple as

on-premise data center ON PREMISE = CAPEX


CLOUD = OPEX
CAPEX:
server, network and storage infrastructure plus software OPEX funding arrangements exist across
licenses all IT architectures from
OPEX: on-premise to hybrid to public cloud.
direct costs involved with running a hardware: power, floor
space, storage and IT operations, the
indirect costs such as procurement, accounting personnel, IT
management and operations

data center hosted in the cloud

does not involve any major initial investments but also get to
eliminate most of the operating expense associated with
maintaining a data center. Everything is OPEX.

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Chargeback
Change the way in which people are consuming
the IT resources

Understandable and transparent cost info - control


or predict the cost involved in providing the services

Financial transparency -
resources are focused on
business value-driven areas

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Cost Optimization - procurement


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• Apply new technologies for procurement:


• AI&ML for procurement trends, anomaly's, vendor management
• Use BOTS/RPA for the long tail of procurement

to 2000$ supplier: if
Size of procurement order

you discount 10% we


will pay you bill in 7
days

# of orders in this size

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Cost Optimization - procurement


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• Apply new procurement methods and principles for new needs


• Cloud procurement & finops
• Non-perpetual licensing (sw installed on prem)
• Opensource related terms & contracts
• Container based procurement (the return of the “concurrent”)

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Re-Invent IT Initiative: methodology

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Trek name:
REDESIGN PROCESSES & CORE

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TECHNICAL DEBT:
if the system is Amount “not spent” by
not upgraded it organizations on enterprise
falls further and systems that have become out
further behind of date because of needed
1 technological, processes and
and technical
4 debt increases. vendor updates .
2 3
When the CIO is borrowing from the
future to be able to fund other
projects today

Increasing Technical Debt BUSINESS LEADERS


Leads to Technical Bankruptcy want
reaches a point
where it is new features
exceedingly but they
difficult to pay the do not want
technical debt. to spend the time, money, and effort
for:
testing, rewriting procedures, retraining
users plus the risk of disruption at go-live.

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Legacy platforms: when do I stop? 41

Last longer than anyone expected but : The slope to oblivion:


1. New technology arrives (immature but gaining momentum)

2. Legacy vendors raise prices

3. Shortage in new\young personnel

4. Less support from 3rd parties (ie – security)

5. Important functionality\standards missing

6. Availability / performance / unresolved issues

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Re-platforming Re-platforming
Re-architecting Re-hosting
(automatic) (re-writing)
• Keeping the same • Moving from an • Rewriting the old • The old code and
technology but old, not supported code and architecture
arranging the infrastructure to a architecture to transformed by
code and different newer new, updated rewriting the
architecture one . while code with modern code.
differently. keeping the architecture by
application applying • Manual code
• Eliminating untouched automatic should be clear
unneeded code, translation tools. and maintainable
simplifying • From:
application flow, • Unix to Linux • Highly dependent • However since
introducing ESB, • VSE to modern on the “readiness” done manually
separating MF and this step might be
business logics maintainability of expensive.
• MF to Linux
and ui, improve the resulting code.
monitoring and • Etc.
tracking by
writing logs, etc.

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Q:“what is application modernization?”

A:“taking monolithic application running on


physical\virtual server on prem\ in cloud and
moving it to microservices \ containers\ serverless”

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The evolution of running code

server-less
container
cloud compute

virtualization
physical

source: datree.io

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Microservices: the cloud native architecture

Monolith Microservices

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Microservice architecture

Business agility Combine several


technologies in Better scale, Runs in
the same project more robust containers

Might cause
latency

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Specialized cloud application migration tools

Cost estimation Code to be modified

Source: fedr8

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Develop now in microservices &


containers (opensource, devops,
agile, cloud, serverless will follow)

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1. Interoperability: The ability of machines, devices, sensors, and


people to connect and communicate with each other via the
Internet of Things (IoT) or the Internet of People (IoP) . Adding
IoT & edge computing will further automate the process to a
large extent

2. Information transparency: The ability of information systems


to create a virtual copy of the physical world by enriching
digital plant models with sensor data. This requires the aggregation
of raw sensor data to higher-value context information.

3. Technical assistance:
a. the ability of assistance systems to support humans by
aggregating and visualizing information
comprehensibly for making informed decisions and
solving urgent problems on short notice.
b. the ability of cyber physical systems to physically support
humans by conducting a range of tasks that are
unpleasant, too exhausting, or unsafe for their human
co-workers.

4. Decentralized decisions: The ability of cyber physical systems


to make decisions on their own and to perform their tasks as
autonomously as possible. Only in the case of exceptions,
interferences, or conflicting goals, are tasks delegated to a higher
level.

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Re-Invent IT Initiative: methodology

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Implement Data Science
methods & tools

Hire and nurture


analytic talent
Create executives’ data
literacy and culture Implement “DataOps”-
like methodologies

Trek name:
Acting on insights

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Actions based on Insights


(The last mile of the data-driven imitative)
a. Establish data driven decision processes
b. Turn decisions into actions
c. Deal with the cultural aspects

Maintenance Procurement
Experience Financee
Management
Logistics
Engaging
Data-driven
Actions Inventory
Hiring Supply-Chain
Operations Strategy

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The Evolution of data-based actions:

Data science jobs are


climbing up the data
driven supply chain –
All the way to
1
actions!
2 3 4 5
Reporting Analysis Predictive Prescriptive Autonomous
Analytics Analytics Actions

“What happened?” “Why?” “What will happen?” “What should I do? “Do what’s best
automatically”

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Meet Data Scientist’s younger


(and cooler) brother:

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Data-based Actions tools and providers

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