The Business Case for Managed Services. 11 June 2014

Transcription

1 The Business Case for Managed Services 11 June 2014

2 Managed Services in Asset Management 2

3 Quiz! Thomas Edison Samuel Insull

4 What were we waiting for? An enabler: Technology A business challenge! 4

5 11% Cloud 8% Other Outsourced 81% On-Premise Source: Cloud Workload Migration (IDG Connect March 2013) 5

6 Everyday Source: 2013 State of Outsourcing Study (HFS Research January 2013) 6

7 Switching to more customer facing roles Developing improved systems for internal use Developing new systems to exploit/expand commercial opportunities Maintaining current systems Source: 2013 State of Outsourcing Study (HFS Research January 2013) 7

8 And the challenge is growing 8

9 Cloud: The Most Disruptive Innovation? "It seems the cloud is now disrupting every industry it touches. The world s most advanced technologies are no longer only available to large enterprises who can afford to maintain an expensive IT staff, but can be accessed by anybody with an internet connection. That s a real game changer." Greg Satell, Forbes, 5 th January

10 Gartner Predicts By 2015, low cost cloud services will cannibalize up to 15% of top outsourcing players revenue. By 2016, poor return on equity will drive more than 60 percent of banks worldwide to process the majority of their transactions in the cloud. 10

11 And it s not just Gartner Percentage of applications hosted in the cloud and main drivers: Cloud adoption patterns are largely consistent across sectors and geographies. 11

12 Impediments to Cloud Adoption 12

13 What does Cloud mean for our Customers?» Cloud = Simplified IT» Key advantages:» Reduced complexity: infrastructure and support» Flexible pricing» Scalability» Faster time to market» IT costs move from capex to opex 13

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15 In a nutshell» Achieve more with less Grow revenue Do it quicker At a lower cost Using fewer people With more integration and don t make mistakes! 15

16 20% Effort 80% Results Vilfredo Pareto 16

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18 Managed Services Key Messages 18

19 Responsibility for Operations Managed Services Key Messages Vendor Hosted and Managed BPM On Premise or 3 rd Party Deployment Customer Service Level Commitment 19

20 Managed Services Key Messages "We are witnessing the emergence of a new generation, one that aims not so much to 'run' IT as to ensure that the business achieves strategic value from the use of technology," John Mahoney, Vice President and distinguished analyst at Gartner. VENDOR CLIENT VENDOR CLIENT IT & HOST CLIENT 3 RD PARTY HOST CLIENT IT VENDOR & HOST (& IT) CLIENT Hosting and Managing SunGard applications with SunGard means that responsibility for issues and associated support channels are always clear and efficient. 20

21 Lessons Learned: Service Catalogues» Look for simple constructs;» Look for focused services;» Question strategic direction and look for Continual Service Improvement» Understand the impact of customization 21

22 Lessons Learned: The Services Gap 22

23 Disruptive Innovation 23

24 » Blockbuster:» 2002: $5Bn company» 2004: 60,000 Staff, 10,000 Stores» 2009: lost 85% of market share» 2010: $1Bn in debt declared bankruptcy» 2011: purchased by DISH Netflix:» 2000: Valued at $50M» 2007: Introduced digital distribution» 2013: Won an Emmy!» 2014: 48M customers, market capitalization of $19.1Bn» Largest source of Internet traffic 24

25 Disruption: Winners and Losers Disruptive innovations don't have to rule the market, they just have to change the market and force others to follow suit. The goal of disruptive companies is to challenge the conventional market and create a new one. 25

26 The Business Case for Managed Services Kevin Potter