Navigating through the cloud: A case study in opportunities & risks

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1 Navigating through the cloud: A case study in opportunities & risks September 2015 Part of the IT Applications Now and in the Future Theme ACS Conference Canberra 2015

2 Major Trends Mobility Consumer Creation As a Service

3 Mobility 54? 65? Jun-14 Jun-15 Courtesy:

4 Consumer Creation Co-operative design started as early as in 1970 Grew in pace through the 1990 s: User-centred design and customer centred systems Mass customisation emerged through mid-late 1990 s Continued in 2000 s: Design based on the Voice of the Customer in Six Sigma around 2002 And: Emergence of Platform or network business models Apple App Store introduced in 2008, now 1.4M apps Powered by Amazon self publishing launched in 2011 Open Data supports Consumer Creation

5 Cloud (As a Service) Courtesy:

6 What are the Reasons Stated Benefits by Cloud User Percentage Reduction in IT costs 34.0 Flexibility to either up-scale or down-scale services 33.1 Simplicity of deployment of cloud-based solutions 47.2 Increased productivity 46.3 Other benefits 9.7 No benefits 15.0 Courtesy:

7 Additional Reasons in Government Cloud or As A Service / Cloud First Policies Contestability Agenda Shared Services Proving Value for Money Productivity Dividend Are there cost savings? Keeping ahead of your clients The new Shadow IT Emerging Brokerage Roles How many cloud services is your organisation using? How many that you don t know about?

8 This Case Study Government Owned Organisation Owns Major Assets / Asset Management is core capability Information Management and ICT Strategy was the basis for determining systems refresh and investment priorities ERP Implementation of Asset Management & Maintenance/Contract & Property Management/GIS/Finance/HR Making parallel improvements to Content and Records Management Systems Few hundred employees

9 How are Organisations Making the Move to Cloud Opportunistic Specific problem solving Unique Architecture Stacks Unique Skill Sets Step Investments Required Strategic Capability assessment Opportunities, risks Costs and performance benchmarks Strategic Value Timing windows Return on Investment

10 The Risks of an Opportunistic Approach Cost, contract and service quality risks Integration and inter-operability Upgrades, adaptability and tailoring Skills and capability Client service agreements, standard service quality Emerging brokerage models Transition out options Market Capability

11 The Basics What type of Cloud IaaS Infrastructure as a Service Access to supplier owned networks, servers, storage and operating systems via the Internet PaaS Platform as a Service Access to a supplier owned and managed environment through which to create or acquire applications using e.g. languages, libraries and tools. SaaS Software as a Service Access to a supplier s applications e.g. via a browser

12 Major Decisions Made Application Decision Opportunistic IaaS PaaS SaaS Why - Scalability - Deployment Simplicity ERP Project Cloud Specific Risks - Costs, contract, Service Quality - Market Capability In Parallel Strategic Information Strategy Information and Enterprise Architecture ICT Strategy

13 Business Process & Data What is a Strategic Approach to Cloud INPUTS ICT Services Catalogue Policies Procurement/Contracts Contract & Vendor Mgmt ERP Hosting OUTPUTS Cases for Change Implementation Roadmap Sourcing Strategy ICT Strategy Activity Based Costing Performance Benchmarks Core Business Supports Client Viewpoints Strategic Assessment Application Portfolio Cloud Solutions Contestability Shared Services Productivity Dividend

14 The SaaS Systems Implementation Lifecycle Workstreams Phases >>> Governance Management Business Process COTs Functional Software Development Integrations Data Management IT Support Legacy Systems Change Organisational Change Training Plan & Prep Business Design System Design Development Deploy Support & Transition A SaaS solution will provide both acceleration and some constraints in these areas. Parallel activities to mitigate strategic risks

15 Systems Implementation Differences Business Process Can be constrained to SaaS supported process designs COTs Functional Software Development Specific configuration / can be different to licensed software Understand the architectural direction and changing footprint Specific capabilities and restrictions Integrations Specific capabilities and restrictions Data Management Some loading and cleansing tools may be available Specific business rules may apply / can be different to licensed software

16 Case Study Issues Cloud Specific Issues Market Readiness (Moderate-High) Contract (High) New Implementation Methods and Tools (Low-Moderate) Business As usual Issues Business Process and Data/Information Expertise (Subject Matter Experts) Program and Project Management Disciplines Mitigated Risks Enterprise, Applications and Information Strategy, Governance, Standards & Policies Stakeholder Interests and Concerns

17 In Summary Initiate based on an opportunistic or strategic decision making If opportunistic, protect against strategic risks / mis-steps Market capability growing Due Diligence Plan for impacts on the Systems Implementation Lifecycle

18 Closing Questions Article: "Sourcing IT as a Service Talk to you at the SME desk Thank You

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