1. Galit Fein’s work/ Copyright@2014
Do not remove source or attribution from any slide, graph or portion of graph
Galit Fein
EVP and senior analyst
STKI “IT Knowledge Integrators”
galit@stki.info
1
2015 Disruptive
Technology,
IT Governance
Risk and Compliance
STKI Summit 2015
2. Galit Fein’s work/ Copyright@2014
Do not remove source or attribution from any slide, graph or portion of graph
Thanks to Amazon and Apple
•Customers have been spoiled.
•They expect now every organization to deliver products & services swiftly,
with a seamless user experience.
•Customers expect personalized experience on a personal device
•If popular apps can capture their location & dispatch transportation then
why can’t an insurance company provide them with critical health info
when they’re standing in a doctor’s office?
Mobility
Social
Location Real-time online report
of electricity consumption
New phone immediate
activation out of the box
Bank loans approve in
minutes.
Video
3. Galit Fein’s work/ Copyright@2014
Do not remove source or attribution from any slide, graph or portion of graph
What is takes?
• Rapid delivery of digital products & services combined with full access to info
superior user experience
• Customer journey
real-time and personalized treatment
• Hyper-connectivity, sensors
• IoT
• Mobility
around-the-clock availability
consistency
and zero errors
•Complex? BUT when companies get it right, they can also offer
more competitive prices because of lower costs, better
operational controls, and less risk.
3
4. Galit Fein’s work/ Copyright@2014
Do not remove source or attribution from any slide, graph or portion of graph
The Good News…
4
mortgage-application and
decision process digitalization
You can BOND with a
happy customer
The benefits are huge
5. Galit Fein’s work/ Copyright@2014
Do not remove source or attribution from any slide, graph or portion of graph
From “functional” to “bonding” experiences –
לכל קלפים להוסיף
"
דמות
!!!"
5
Emotion-Oriented Systems
6. Galit Fein’s work/ Copyright@2014
Do not remove source or attribution from any slide, graph or portion of graph
Systems of Engagement (IMMERSION)
6
Design starts
with
engagement
processes & data
7. Galit Fein’s work/ Copyright@2014
Do not remove source or attribution from any slide, graph or portion of graph
From Promotion To Emotion
• ~40% of adults distrust ads in any medium
• Young people are particularly resistant - 84% of
millennials dislike advertising
• People are looking for the immersive experience
“Immersion is not engagement. Engagement takes place when a
story, or a marketing message, provokes some sort of action among
the audience—a tweet, a post, a face-to-face conversation.
Immersion takes place when the audience forgets that it’s an
audience at all. Immersion blurs the lines—between story and
marketing, storyteller and audience, illusion and reality.”
Source: Frank Rose The Power of Immersive Media
Source: Nielsen
8. Galit Fein’s work/ Copyright@2014
Do not remove source or attribution from any slide, graph or portion of graph
It Starts with Customer Journey
8
9. Galit Fein’s work/ Copyright@2014
Do not remove source or attribution from any slide, graph or portion of graph
Hyperconnectivity
9
• Increasing digital interconnection of people and things – anytime and anywhere
• Mobile (empowered) customer ever connected to internet, sensors, geolocation,
wearables…and this allows them to get real-time and personalized treatment
Sensors
Sensors
Sensors
Reviews
Sensors
Products
barcodes
online
communication
Wi Fi
Social
10. Galit Fein’s work/ Copyright@2014
Do not remove source or attribution from any slide, graph or portion of graph
Internet of Things
Smart City
Connected Home
Connected Car Future supply chain
IoT equipment can remotely
monitor industrial equipment..
Source: Cisco
11. Galit Fein’s work/ Copyright@2014
Do not remove source or attribution from any slide, graph or portion of graph
Smartphones – Tens of Always connected Sensors
11
12. Galit Fein’s work/ Copyright@2014
Do not remove source or attribution from any slide, graph or portion of graph
Shift in People’s behavior
Source: christianheilmann.com
Mobile as extension of YOU
No waiting no more
42% expect to find a company’s mobile app
27% feel the app should be customized to
their immediate location
Desire for control & complete self service
13. Galit Fein’s work/ Copyright@2014
Do not remove source or attribution from any slide, graph or portion of graph
Customers expect Magic
13
Whatever the problem is
smart device the solution
We get what we want in
the moment of need
“immediately” in
context to “our data”
14. Galit Fein’s work/ Copyright@2014
Do not remove source or attribution from any slide, graph or portion of graph
From Mobile Engagement Systems to Magic Moments
14
Sensors
Customer
Systems of Transactions
Core
Systems of Engagem.
Emotion
APIs APIs
15. Galit Fein’s work/ Copyright@2014
Do not remove source or attribution from any slide, graph or portion of graph
Examples of “engagement systems”
15
16. Galit Fein’s work/ Copyright@2014
Do not remove source or attribution from any slide, graph or portion of graph
Mobile-First and Sometimes the ONLY
16
It's time for a new architecture:
• Web isn't designed to
handle mobile apps or sites.
• It cannot handle the real-
time demands of connected
products.
• Exist architecture built for a
browser-led PC world can't
flex, scale, or respond to the
21st century needs.
17. Galit Fein’s work/ Copyright@2014
Do not remove source or attribution from any slide, graph or portion of graph
40
Source: Megan Quinn, KPCB Partner.
Evolution of Apps to Internet Unbundling
18. Galit Fein’s work/ Copyright@2014
Do not remove source or attribution from any slide, graph or portion of graph
Deutsche Bank Expands Its APPS Store in its website
18
19. Galit Fein’s work/ Copyright@2014
Do not remove source or attribution from any slide, graph or portion of graph
Also Mobile apps have to pass the “toothbrush test”
19
"toothbrush test“
"Is this something you will use once or twice a day,
and does it make your life better?"
20. Galit Fein’s work/ Copyright@2014
Do not remove source or attribution from any slide, graph or portion of graph
“toothbrush test” examples
20
21. Galit Fein’s work/ Copyright@2014
Do not remove source or attribution from any slide, graph or portion of graph
Mobile APP usage year-over-year growth
21
22. Galit Fein’s work/ Copyright@2014
Do not remove source or attribution from any slide, graph or portion of graph
Applications dominate OVER the mobile Web
22
23. Galit Fein’s work/ Copyright@2014
Do not remove source or attribution from any slide, graph or portion of graph
Platform Wars is OVER!
23
iOS claiming the majority
of the high-end device market
Android winning almost everywhere else:
• ~85% of smartphones run Google’s Android
• ~65% of tablets run Android
• ~70% of all new computing gadgets run
Android
Windows Phone continues to gain developer
mindshare steadily at 28%, although the users
have not followed
24. Galit Fein’s work/ Copyright@2014
Do not remove source or attribution from any slide, graph or portion of graph
UX - the Driving Force Behind the App’s Success
Those that have “BAD” experiences… just die
25. Galit Fein’s work/ Copyright@2014
Do not remove source or attribution from any slide, graph or portion of graph
25
Mobile Payment
26. Galit Fein’s work/ Copyright@2014
Do not remove source or attribution from any slide, graph or portion of graph
Mobile Payment Volume Is About To Explode
26
It will be harder than ever to meet the
increasing demands of the m-payment in 2015.
27. Galit Fein’s work/ Copyright@2014
Do not remove source or attribution from any slide, graph or portion of graph
M-Payment trends
27
• Although consumer adoption is still limited
Less than 10% of U.S. and European
consumers use mobile payments
• Mobile security and fraud risk are not
currently major concerns - mobile
experience is
• Digital consumer wants the simplicity,
contextuality, time savings & entertainment
value offered by Amazon, Get Taxi, Waze &
their favorite retailer’s mobile app
A majority of mobile wallet users
are millennials
28. Galit Fein’s work/ Copyright@2014
Do not remove source or attribution from any slide, graph or portion of graph
Pay Without Wait
28
A New Breed Of Apps Let Users Make In-Store Payments
Entirely From Their Phone — Without A Payment Terminal
29. Galit Fein’s work/ Copyright@2014
Do not remove source or attribution from any slide, graph or portion of graph
Away from Low‐Tech, Paper‐Based Tools, Expensive Registers, Card Swift
29
30. Galit Fein’s work/ Copyright@2014
Do not remove source or attribution from any slide, graph or portion of graph
Your phone becomes the only payment tool you need, wherever you shop
30
31. Galit Fein’s work/ Copyright@2014
Do not remove source or attribution from any slide, graph or portion of graph
How people who make in-store m-payments pay for goods & services?
31
45%
37%
29%
0% 10% 20% 30% 40% 50%
By presen ng a barcode (or QR
code) on my device's screen for
the cashier to scan
By tapping my device on a
payment reader using NFC
By scanning a barcode (or QR
code) using my device's camera
Source: Nielsen July 2014
How People Who Make In-Store Mobile Payments
Pay For Goods And Services - US
32. Galit Fein’s work/ Copyright@2014
Do not remove source or attribution from any slide, graph or portion of graph
No single clear technology winner
•Mobile payment is evolving quickly and chaotically
•With consumer acceptance expected to reach critical mass in the next 2-3 years,
early successes will define the landscape of mobile payments for years to come
•Established players and startups competing for not only market share but also the
ability to establish the business’ rules and technological standards
•It’s still unclear how this market will evolve or which competing mobile payment
technologies and applications will become prevalent
32
33. Galit Fein’s work/ Copyright@2014
Do not remove source or attribution from any slide, graph or portion of graph
Numerous Mobile Payments Startups (100s)
33
Source: angel.co/mobile-payments
34. Galit Fein’s work/ Copyright@2014
Do not remove source or attribution from any slide, graph or portion of graph
Internet giants here too
34
Leaked Screenshots Show Facebook's
Move into Mobile Payments
35. Galit Fein’s work/ Copyright@2014
Do not remove source or attribution from any slide, graph or portion of graph
Apple Pay Google Wallet PayPal
35
Apple Pay
Security wins - tokenization
• Merchant never sees your
credit card number
• Finger print access –
biometric security (iOS 6+)
• Works at less than 5% of retail
locations
Google Wallet
Surpasses Apple’s pay functionality
• Loyalty card
• Send money abroad
• Acceptance by many online retails
• Google stores data in the cloud
• Samsung buys LoopPay:
• Works at 90% of retail locations
• Supports 10,000+ of credit, debit
cards, most gift, loyalty, cards
(Target, Walmart, Starbucks)
PayPal
15 years experience
• If you're PayPal user - mobile
payment adoption very easier
• You’ve to check first if merchant
support PayPal and you need
cellular reception help to make
purchases
• Not many chains
VS VS
36. Galit Fein’s work/ Copyright@2014
Do not remove source or attribution from any slide, graph or portion of graph
Don’t recycle your wallet just yet!
36
• The market is very fragmented
• This is confuses consumers
• It will take time before most
merchants will ready to support
mobile payment
37. Galit Fein’s work/ Copyright@2014
Do not remove source or attribution from any slide, graph or portion of graph
Digital currency - Bitcoin and beyond
• Even if you have doubt re bitcoin, there is a
collective desire for digital currencies
• Web provides the interface for digital
transactions representing the exchange of
goods & services
• Bitcoins represent a new phase of internet
use — the internet of value:
Mechanism for the entirely digital exchange of
money & financial transactions – faster & cheaper
37
Creation of a new paradigm for the
digitization & transfer of all things of value
38. Galit Fein’s work/ Copyright@2014
Do not remove source or attribution from any slide, graph or portion of graph
Retail 2.0: the convergence of wearables, iBeacons and big data
• Low-cost iBeacons are here to stay - they provide the absent
indoors micro-location (BLE)
• BUT iBeacons will provide real value to consumers ONLY, with:
Context, relevance & carefully chosen timing of notifications
•Retails will have to tie in big data analytics, sophisticated CRM
and DMP back-ends that will bring out the real value within
iBeacons
•Wearables will be an exciting new area of innovation for creating
unique shopping experiences that go beyond the mobile UX
38
Source: Gigaom
39. Galit Fein’s work/ Copyright@2014
Do not remove source or attribution from any slide, graph or portion of graph
Retail Emerging Technologies
39
searching the item without using words beacon-powered alerts and offers
QR to build shopping lists with info & recommendations
Sharing selfie for on-the-spot opinions before buying
40. Galit Fein’s work/ Copyright@2014
Do not remove source or attribution from any slide, graph or portion of graph
Mobile Workplace
40
Mobile Workforce
Expenses
Real time analytics
Branch/ field Workforce
41. Galit Fein’s work/ Copyright@2014
Do not remove source or attribution from any slide, graph or portion of graph
The Way We Build Software Is Changing
• Enterprises push for greater IT agility, there is a sharp shift toward simpler, more
modular, and more custom apps
• Business users are looking for consumer-grade mobile experiences. They are
pressing IT to give them, in the workplace, the kinds of apps they use every day on
their own devices
• Organizations have to move from enterprise applications to apps
• Organizations must embrace mobile not just as a device, but as a way of working.
41
42. Galit Fein’s work/ Copyright@2014
Do not remove source or attribution from any slide, graph or portion of graph
Enterprise Mobile Transformation
42
NOT just about
smartphones
BUT how people
work in motion
Start
with
access
to
org
info
from
mobile
devices
change
the
core
biz
43. Galit Fein’s work/ Copyright@2014
Do not remove source or attribution from any slide, graph or portion of graph
Enterprise mobile apps IS NOT just an easy access to the enterprise application
43
Rethink how
employees do
their jobs
Exploit full native
device features &
analytics to create
new experiences
Reassess the back-
end systems
Empower biz users
to make first hand
decisions without
the delay and risk
of 'loss on
translation
Never create an app
simply for the sake of
having an app
greater efficiency &
productivity
1st goal
44. Galit Fein’s work/ Copyright@2014
Do not remove source or attribution from any slide, graph or portion of graph
8 W ll t
The hard work isdone! With SDKs…
Mobile SDKs take advantage of NATIVE capabilities
45. Galit Fein’s work/ Copyright@2014
Do not remove source or attribution from any slide, graph or portion of graph
0%
10%
20%
30%
40%
50%
MBaaS
API mngt
Native App
Mobile Middleware (Worklight,
Kony, etc)
HTML5
Which of the following mobile technologies or methodologies
are you now using for your mobile apps?
The gap between HTML5 and native is widening.
The native SDKs introduce new APIs at a faster rate than HTML5 can keep up with.
To harness the power of these new APIs native is the only viable option. 45
is the most widely used
technology
46. Galit Fein’s work/ Copyright@2014
Do not remove source or attribution from any slide, graph or portion of graph
Enterprise App Store
46
can access and install corporate-approved software applications
47. Galit Fein’s work/ Copyright@2014
Do not remove source or attribution from any slide, graph or portion of graph
MobileFirst by IBM and Apple
47
Enterprise apps for iPads & iPhones
•Plan Flight
•Passenger+
•Advise & Grow
•Trusted Advice
•Retention
•Case Advice
•Incident Aware
•Sales Assist
•Pick & Pack
•Expert Tech
Run on iOS devices
and customized
for individual
companies by IBM
on IBM’s cloud
Over 100 industry and
horizontal apps are coming
by the end of 2015
Currently iOS appears to be winning
the battle for enterprise adoption
and revenues
48. Galit Fein’s work/ Copyright@2014
Do not remove source or attribution from any slide, graph or portion of graph
48
Source: Citrix 2014
49. Galit Fein’s work/ Copyright@2014
Do not remove source or attribution from any slide, graph or portion of graph
The Enterprise beyond Email
49
IT STRUGGLES WITH DECISIONS REGARDING:
Source: Citrix 2014
50. Galit Fein’s work/ Copyright@2014
Do not remove source or attribution from any slide, graph or portion of graph
Enterprise Mobility Challenges
50
Source: Mobile Helix/Vanson Bourne
Develop cost
Security
Complexity
51. Galit Fein’s work/ Copyright@2014
Do not remove source or attribution from any slide, graph or portion of graph
Mobile Development Basic Technologies
1. Native toolkits (such as apple's iOS development kit)
2. Web toolkits (such as jQuery mobile)
3. Specialized platforms (such as Appcelerator) that take a more holistic approach to mobile app development.
•MADP vendors often complement native and web toolkits with tooling including:
wrapper tools (such as Adobe's PhoneGap) that allow web apps to work like native apps (so-called
'hybrid' apps);
mobile middleware (such as IBM MobileFirst) that allow native and hybrid apps to communicate securely
with on-premise and cloud-based enterprise applications;
application generators (such as Kony Studio) that deliver native, web and hybrid apps from a single set of
specifications.
•If this sounds like a complex and fast-moving market, that's because it is. “Traditional enterprise software,
low-cost disruptors and open-source sales models are simultaneously having an impact on the market". The
result is that "today's leaders can be tomorrow's laggards", so the market research company cautions
enterprises to "avoid long-term commitments to any one vendor or technology and re-evaluate their mobile
AD strategy often".
51
Source: Gartner
52. Galit Fein’s work/ Copyright@2014
Do not remove source or attribution from any slide, graph or portion of graph
Mobile Application Development Platforms
52
53. Galit Fein’s work/ Copyright@2014
Do not remove source or attribution from any slide, graph or portion of graph
Generation Gap in Workplace
•The growing generation gap between young and veteran workers , each of whom
are comfortable with different technology
•In 5 years companies will have to ensure they’re matching their enabling technology
to the demographic of that time
54. Galit Fein’s work/ Copyright@2014
Do not remove source or attribution from any slide, graph or portion of graph
How to Manage Mobile App Future Growth
•Meet increasing demand from customers and business units to develop and update
apps
•Developing more apps means an exponential increase in updates and maintenance
•Being able to reuse code and update apps is critical to managing this growth
T2M
Development skillset
JavaScript VS iOS & Android
$50 per hour $75 pre hour
MBaaS solution
Decrease
visibility into the apps’ performance, inc. crashes and exceptions
Allow
T2R
Average time to develop
new mobile apps from
20 weeks to 12 weeks
“People don’t download
your app if you have 2
star ratings”.
Dan Gaertner, VP of Technology, Homes Media
55. Galit Fein’s work/ Copyright@2014
Do not remove source or attribution from any slide, graph or portion of graph
MBaaS Plarform iOS &
Android delivery (inc.
automated functional testing)
Native iOS & Android
delivery (inc. manual
functional testing)
12 weeks
20 weeks
New Mobile App
* team of 10developers/ testers
63,600
$135,000
Cost to develop new app
6,500
10,800
Cost to update app
4
Number of hours to pinpoint error
125
Average number of defects per mobile
37.5
$
Hourly salary of tester
80000$
License Cost (5-10 Users)
$
30,000
Training and Implementation Costs
56. Galit Fein’s work/ Copyright@2014
Do not remove source or attribution from any slide, graph or portion of graph
57. Galit Fein’s work/ Copyright@2014
Do not remove source or attribution from any slide, graph or portion of graph
0%
10%
20%
30%
40%
50%
MBaaS
API mngt
Native App
Mobile Middleware
(Worklight, Kony, etc)
HTML5
Which of the following mobile technologies or
methodologies are you now using for your mobile apps
58. Galit Fein’s work/ Copyright@2014
Do not remove source or attribution from any slide, graph or portion of graph
11%
19%
19%
22%
29%
0% 5% 10% 15% 20% 25% 30% 35%
DATABASE UPDATES
BACK-END CODING
BACK-END INFRASTRUCURE AND IT
API & MIDDLEWARE IMPLEMENTATION
FRONT END CODING & UX
Over 70% Of Cost And
Effort On Mobile
Projects
Are Spent On
Supporting Back-End
Processing
Development effort during your most recent mobile project
59. Galit Fein’s work/ Copyright@2014
Do not remove source or attribution from any slide, graph or portion of graph
60. Galit Fein’s work/ Copyright@2014
Do not remove source or attribution from any slide, graph or portion of graph
61. Galit Fein’s work/ Copyright@2014
Do not remove source or attribution from any slide, graph or portion of graph
IT mngt
62. Galit Fein’s work/ Copyright@2014
Do not remove source or attribution from any slide, graph or portion of graph
Business Consumer Technology Era
Cloud
based
services
Business managers
IT projects primary or exclusively run by ITO
will decline from 55% to 47% by 2015
63. Galit Fein’s work/ Copyright@2014
Do not remove source or attribution from any slide, graph or portion of graph
Ahead of the Technology Curve
• Consumerization of IT & Self Service trends will lead to restructuring of today’s ITO
• In some cases business itself will be the IT department. Technologists will simply
be the enabler
• Business leaders are more technically savvy and sometimes bypass the IT
Often out of frustration what their needs aren’t addressed
• Business leaders also recognize they need the CIO to negotiate contracts, ensure
security, support, maintainence and to deploy and implement tech product
• IT has to keep the pace in order to know that business consumers are going to ask
for next before they ask for it
64. Galit Fein’s work/ Copyright@2014
Do not remove source or attribution from any slide, graph or portion of graph
Two Speeds IT
64
Invest
in new
systems
Reduce
Operating
Expenses
Long development and
deployment cycles
Touch people
In-moment decisions
Personalized & in-context
Social and analytics driven
Short & rapid releases
Doing IT right,
efficiency, safely
Doing IT fast
IT don't have to be
perfect, just quick
IT with different people, set of
skills processes, and tools
supporting each
65. Galit Fein’s work/ Copyright@2014
Do not remove source or attribution from any slide, graph or portion of graph
Cloud as electronic outsourcing
•In many cases, the failure of traditional outsourcing was inflexibility and stagnation
•Long term fixed contract are simply not fit well to the 21st century needs
•Cloud is, for many intents and purposes, electronic outsourcing
•Many outsourcing providers (TCS, IBM, HP, etc.) now offer strong cloud offerings
Cloud is a New Form of Outsourcing
65
IT factory
Computing
capacity
utility model
Traditional
outsourcing model
66. Galit Fein’s work/ Copyright@2014
Do not remove source or attribution from any slide, graph or portion of graph
Cloud Computing models evolvement: 3 types of ITOs
66
Business
customers
Conservative
IT
Cloud ready
architecture
Modern
IT
Early adaptor
IT
Moving into
Public Cloud
XaaS
• Elasticity
• Automatic procedures
• Devops = application
deployment
• IT Chargeback
Hybrid IT
Private to public
• Automated, standard environment.
• Self service portal
• Faster delivery cycle (days to min)
• IT service catalog
• Better capacity planning
• In/ external service catalog
• Fully automated service
delivery. Utility model
• Cloud Platform Services - Plan,
Optimization
67. Galit Fein’s work/ Copyright@2014
Do not remove source or attribution from any slide, graph or portion of graph
Need to embrace different models of workforce
designated for different purposes
67
Business
customers
Conservative
IT
Cloud ready
architecture
Modern
IT
Early adaptor
IT
Moving into
Public Cloud
XaaS
Hybrid IT
Private to public
• Mostly internal workforce
• Prof. services
• High percent of
permatemps
Workforce models mix:
• Talent core workforce
• Temporary workers
• Managed services –
better adjustment to
cloud-based delivery
Moving into different
sourcing models:
• X-shore / X-site
• Managed services
• Prof. services
68. Galit Fein’s work/ Copyright@2014
Do not remove source or attribution from any slide, graph or portion of graph
Need to embrace different models of workforce
designated for different purposes
IT
Internal talent
workforce
Part-time &
temporary
workers
Sourcing Mix of
non central
activities
68
Lower costs, different models-
Pay per use, transformation to
cloud-based delivery, avoid heavy
asset purchasing
Better allocate talent
and skills, industry
knowledge and
expertise
1/3 1/3
1/3
Flexibility
69. Galit Fein’s work/ Copyright@2014
Do not remove source or attribution from any slide, graph or portion of graph
Same due diligence applied to traditional outsourcing engagements
should be applied to cloud engagements
Cloud Computing
Business Value Outcomes
• Financial/Cost
• Freedom
• Leverage Provider Expertise
• Support Business Innovation
Cloud Management IT
and Business Value Outcomes
• Enforce Standards and
Policies
• Optimize SLAs and Costs
• Govern Access and Budgets
• Reduce Lock-in
Cloud Computing engagements
management
• Know your cloud partners
(financial stability, staff
members and future
roadmaps)
• Invest more time & effort
evaluating an ever-expanding
roster of cloud providers
• Find out about potential
providers
• Be proactive about security
69
70. Galit Fein’s work/ Copyright@2014
Do not remove source or attribution from any slide, graph or portion of graph
The “New” delivery of IT
70
Making the business more
responsive:
• IT fixed cost reduction
• Flexibility to respond
market demands
Cloud underpinning a digital
business:
• Need to deliver digital media
on a scalable, pay per use basis
• flexibility to consume differing
and variable business needs
New cloud-based
services:
• make it easier for users to
consume new services
• lower operational costs
SaaS enables rapid
innovation:
Automatic scaling
and load balancing
Transparency of costs & usage
71. Galit Fein’s work/ Copyright@2014
Do not remove source or attribution from any slide, graph or portion of graph
Dynamic, ever changing environment requires:
New level of
business and IT
alignment
Removing boundaries
Cooperate adaptive
IT portfolio – no
more silos!
Visibility and accountability
Accountability is ultimately more
important than cost cutting
72. Galit Fein’s work/ Copyright@2014
Do not remove source or attribution from any slide, graph or portion of graph
With Innovation and New Service Models Comes Risk
•Digital world is creating new types and levels of risk
•The complexity of digital business means that IT leaders will
experience unintended consequences.
•In digital business, you must change your relationship with risk.
•Digital risk is not something to mitigate.
•Embrace risk. Risk is a conscious leadership decision, Treat your
ability to manage specific risks as a competency and capability.
Focus, so you can see what risks are worth taking.
72
73. Galit Fein’s work/ Copyright@2014
Do not remove source or attribution from any slide, graph or portion of graph
IT, Business and other frustrating stuff…
Ideas, thoughts,
concepts, opinions,
theories, viewpoints,
perspectives, values
Methodologies,
standards,
procedures, quality
assurance, security
IT, Business and other frustrating stuff…
74. Galit Fein’s work/ Copyright@2014
Do not remove source or attribution from any slide, graph or portion of graph
Vendors enterprise selling shift
•Vendors have to response to collaborative IT decision-making process
•The days of silo decision-making, where IT has control over purchase is
gone
•Team based, often involve the use of social networking tools
75. Galit Fein’s work/ Copyright@2014
Do not remove source or attribution from any slide, graph or portion of graph
Sourcing
75
76. Galit Fein’s work/ Copyright@2014
Do not remove source or attribution from any slide, graph or portion of graph
Measure Results not Hours
•Many companies are still determining their outsourcing strategies by hourly rates
alone
•More complex IT programs (compliance, data location sensitivities, a need for high
business interaction) has additional costs to consider in measuring the true value
and best sourcing strategies
•Need for flexible engagement models that blend onsite expertise and strategy with
X-shore execution and ongoing support
76
77. Galit Fein’s work/ Copyright@2014
Do not remove source or attribution from any slide, graph or portion of graph
Technology Risk Mngt:
Governance, Compliance,
Security & Cyber
78. Galit Fein’s work/ Copyright@2014
Do not remove source or attribution from any slide, graph or portion of graph
IT Complexity
Social
APIs
Systems
of Records Systems of
Engagement
Legacy
Cost Center
eCommerce
Enterprise
App Store
Enterprise
Mobility
Engage &
Innovate
Govern &
Protect
Deliver &
Maintain
Engage &
Innovate
Govern &
Protect
Deliver &
Maintain
IT
strategy
79. Galit Fein’s work/ Copyright@2014
Do not remove source or attribution from any slide, graph or portion of graph
Govern and Protect
79
80. Galit Fein’s work/ Copyright@2014
Do not remove source or attribution from any slide, graph or portion of graph
Strategic direction may change by
the time a final budget is approved
Increasing Pace Of Business Change
80
Traditional IT Governance methods:
no longer work in a business world
that demands speed & value
81. Galit Fein’s work/ Copyright@2014
Do not remove source or attribution from any slide, graph or portion of graph
Bimodel IT
81
Invest
in new
systems
Reduce
Operating
Expenses
Long development and
deployment cycles
Touch people
In-moment decisions
Personalized & in-context
Social and analytics driven
Short & rapid releases
Doing IT right,
efficiency, safely
Doing IT fast
IT don't have to be
perfect, just quick
IT with different
• people,
• set of skills
processes,
• and tools
supporting each
82. Galit Fein’s work/ Copyright@2014
Do not remove source or attribution from any slide, graph or portion of graph
Manage Your IT Portfolio Right
82
70%
30%
Email, upgrade,
maintenance, operations
Transformational investments,
new capabilities
Constantly balance and re-balance
IT assets allocation
83. Galit Fein’s work/ Copyright@2014
Do not remove source or attribution from any slide, graph or portion of graph
Do you know your exact IT dollar (resource) allocation?
In order to know it, IT needs structured, automated and well-documented process
83
Allocation
decisions based
om real time data
Overall portfolio
review
Performance
monitoring
Clear trade-offs
demonstration
Scarce capital/
resources
optimization
84. Galit Fein’s work/ Copyright@2014
Do not remove source or attribution from any slide, graph or portion of graph
Provide visibility into the IT
“…And that in quick view what
we have in our IT today”
Programs
& projects
HW & SW
assets
Contracts
Vendors
Partners
Costs
Accountability is ultimately more important today
than cost cutting
85. Galit Fein’s work/ Copyright@2014
Do not remove source or attribution from any slide, graph or portion of graph
IT Governance
85
Programs
& projects
HW & SW
assets
Contracts
Vendors
Partners
Costs
Chargeback
Service catalog
Business models
Financial stability
Vendor evaluation
& mngt
Demand mngt
Agility
Project mngt
EA
Asset mgt
Agreement mgt
Benchmarks
SOW
SLA mngt
Skill mngt
Resource
mngt
ITIL
Risk
mngt
Accountability
Future roadmaps
Business – IT
Orchestrator
Navigator
IT
86. Galit Fein’s work/ Copyright@2014
Do not remove source or attribution from any slide, graph or portion of graph
IT services highest business value possible
86
Internal
IT
XaaS
External
provider
• Demand identification
shaping, aggregation
& prioritization;
• Expectation mngt
• Business value
• Business change
success
• Services & products
supply in terms of
quality and capacity
• Resources coordination
• IT services & products
catalog
• Agility
Explore technology trends and
new potential business review
Alignment to business strategy
and risk appetite
BRM
Internal impact
Outside impact
LoB
LoB
LoB
87. Galit Fein’s work/ Copyright@2014
Do not remove source or attribution from any slide, graph or portion of graph
87
Source: The BRMP®
88. Galit Fein’s work/ Copyright@2014
Do not remove source or attribution from any slide, graph or portion of graph
IT Governance evolvement: 3 types of ITOs
88
Conservative
IT
PPM
Modern
IT
Early adaptor
IT
Tactical
BRM
Strategic
BRM
• Demand mngt
• Portfolio mngt
• Project mngt
• Resource mngt to ensure
correct services & products supply
• Project tool
• Reporting
• Project risk mngt
• Demand coordination and
aggregation, PPM
• Enterprise architecture
• Resource mngt
• PPM / Governance tool
• Business & IT executives
dashboards
• Technology risk mngt –
compliance & proper reporting
• Facilitate business and IT
convergence
• Removing boundaries – embeds
IT capabilities within LoBs for
increase agility and business value
• Innovation
• Enterprise architecture
• PPM
• Holistic IT Governance tool
• Proactive technology risk mngt
89. Galit Fein’s work/ Copyright@2014
Do not remove source or attribution from any slide, graph or portion of graph
Technology
Risk
Management
89
90. Galit Fein’s work/ Copyright@2014
Do not remove source or attribution from any slide, graph or portion of graph
The dark side of innovation & new business models
90
• Emerging technologies bring completely new and often unknown challenges and risks:
Digital information is growing exponentially
Access to enterprise info is often done from customers and employees' private smart devices
Boundaries between customer and organization are blurred
• Same is with new business models:
Managing privacy, regulatory compliance and legal aspects
in public cloud technology.
On demand or sharing economy leads us to a necessity
to manage our own online reputation
• Growing risk of security breach or data loss
91. Galit Fein’s work/ Copyright@2014
Do not remove source or attribution from any slide, graph or portion of graph
Start with your personal data
91
Ministry of Defense's Personal Security Online educational campaign:
'Think Before You... Share'
92. Galit Fein’s work/ Copyright@2014
Do not remove source or attribution from any slide, graph or portion of graph
Sharing (on-demand) economy
92
share our living spaces
share our knowledge
share our cars
share our parking space
How do I know an Airbnb guest won’t ransack my apartment?
Is it guaranteed that a Getaround user will return my car?
93. Galit Fein’s work/ Copyright@2014
Do not remove source or attribution from any slide, graph or portion of graph
Reputation economy
93
94. Galit Fein’s work/ Copyright@2014
Do not remove source or attribution from any slide, graph or portion of graph
Who are you Galit Fein?
Who is responsible for the
personal risk management?
95. Galit Fein’s work/ Copyright@2014
Do not remove source or attribution from any slide, graph or portion of graph
Why Manage Risks?
Corporate catastrophes are all too common
95
BP will plead guilty to manslaughter charges stemming from the 2010 Deepwater Horizon explosion
and oil spill in the Gulf of Mexico, and agreed to pay $4.5 billion in government penalties, Attorney
General Eric Holder announced Thursday.
96. Galit Fein’s work/ Copyright@2014
Do not remove source or attribution from any slide, graph or portion of graph
Risk is also a new opportunity
96
97. Galit Fein’s work/ Copyright@2014
Do not remove source or attribution from any slide, graph or portion of graph
What is Risk?
• Risk is intentional interaction with uncertainty
• Enterprise risk is effect of uncertainty on
objectives and goals of the organization
• Risk mngt - In today’s uncertain times we have
to prepare response for unwanted events
in advance
• Accepting risk is OK; ignoring risk is tragic
97
98. Galit Fein’s work/ Copyright@2014
Do not remove source or attribution from any slide, graph or portion of graph
Managing technology risk is now a business priority
• With an increase in the importance of technology and
business reliance on technology – focus was referred to
technology risk
• It’s not about project risks, it will continue to run in PMO
• Risk IT is not limited to security
• For the first time business executives ask IT:
“What may be the impact on the organization,
from all IT-related risks?”
98
Source: Riskjournal
99. Galit Fein’s work/ Copyright@2014
Do not remove source or attribution from any slide, graph or portion of graph
Technology risks
Project related
• Entering (NOT) new technology
• Difficulty related to new technology
hatmaa
• Big project failure
• Is the project technically feasible?
• Could the technology be obsolete
before a useful product be produced?
• Late project delivery
Non project related
• Obsolete or inflexible IT architecture
• Cloud based solution
• Unstable systems
• Not achieving enough value from IT
• Compliance
• Misalignment
• IT service delivery problems
• Employee related fraud
99
100. Galit Fein’s work/ Copyright@2014
Do not remove source or attribution from any slide, graph or portion of graph
Technology Risk Mngt evolvement: 3 types of ITOs
100
Conservative
IT
Modern
IT
Early adaptor
IT
IT risk mngt concept/
office at place
• Risks managed in silos per
specific project, tech, etc.
• GRC as unnecessary and
burdensome reactions to
regulations and risk events
• Policy & methodology
• Time to time risk
assessment
• Regulatory Compliance
• Holistic & continues approach
• Substantial need
• Proper processes & activities of
the IT supporting & promoting
business goals
Strategic & proactive
IT risk mngt
IT risks managed as
part of PM or security
Value
Burden
Risk mngt
Crisis mngt
101. Galit Fein’s work/ Copyright@2014
Do not remove source or attribution from any slide, graph or portion of graph
Framework for IT Risk
101
Source: Riskjournal
102. Galit Fein’s work/ Copyright@2014
Do not remove source or attribution from any slide, graph or portion of graph
Perfect Storm of Regulations
•Data Privacy Laws
•Freedom of Information Act
•HIPAA
•Payment Card Industry Data Security Standard
•Homeland Security
•Sarbanes-Oxley
•BAZEL II
•Industry specific regulations (HACCP)
•Federal Rules of Civil Procedure
102
Legal costs, fines and
damages could be
reduced by 25% if
organizations applied
best practice
procedures to records
management, security
and e-Discovery.
Source: Monica Crocker, Land O’Lakes at #AIIM13
103. Galit Fein’s work/ Copyright@2014
Do not remove source or attribution from any slide, graph or portion of graph
Technology Risks Compliance
•Technology Risks Compliance = legal requirements + industry standards +
organizational policies and guidelines, and more...
• Finding and retrieving information on demand
• Controlling access and confidentiality
• Monitoring and reporting for enforcement
• Comprehensive auditing
• Secure retention and destruction
103
Compliance is key:
deceptive marketing,
debt traps, dead ends,
discrimination, retailer
data breaches,
emerging technologies
protections
There’s a huge price
for non-compliance!
104. Galit Fein’s work/ Copyright@2014
Do not remove source or attribution from any slide, graph or portion of graph
And Remember:
104
105. Galit Fein’s work/ Copyright@2014
Do not remove source or attribution from any slide, graph or portion of graph
105
Notas del editor
They expect all service providers to have automated access to all the data they provided earlier and not to ask the same questions over and over again. They wonder why a bank needs their salary slips as proof of income when their money is being deposited directly into the bank every month by their employer
The benefits are huge: by digitizing information intensive processes, costs can be cut by up to 90 percent and turnaround times improved by several orders of magnitude. Examples span multiple industries: one bank digitized its mortgage-application and decision process, cutting the cost per new mortgage by 70 % and slashing time to preliminary approval from several days to just one minute. A telecommunications company created a self-serve, prepaid service where customers could order and activate phones without back-office involvement. A shoe retailer built a system to manage its in-store inventory that enabled it to know immediately whether a shoe and size was in stock— saving time for customers and sales staff. An insurance company built a digital process to automatically adjudicate a large share of its simple claims
Conspiratorial whisper.
Expect to hear a lot about connected homes, connected cars, and how IoT is spilling beyond these areas deeper into the supply chain.
Early adopters should keep their eyes peeled for next generation IoT applications in transportation, manufacturing, warehousing and other parts of the extended supply chain.
The IoT market for commerce isn't as solid as the futurists speaking at MWC will have you believe. Players are still jostling for position, which makes planning for IoT a little tricky. Try to get a sense for the direction this budding technology market is heading when it comes to standards and IoT platforms. Are we moving closer to standards that will make the connectivity between networks simple? Or is IoT continuing down the path towards specific platforms and standards for different parts of the IoT ecosystem?
Smartphones are becoming an extension of our brains; we pull them out every time we
need help. Every successful interaction reinforces the idea that whatever the problem,
a mobile device provides the solution -- or should. The result of all this positive
reinforcement is a Pavlovian response we call the mobile mind shift.
On a global level, the platform wars are ending with iOS claiming the
majority of the high-end device market and Android winning almost
everywhere else. Windows Phone continues to gain developer
mindshare steadily at 28%, although the users have not followed.
mobile payments will only account for 3% of in-store payments by 2018
No single clear technology or set of business standards have been developed and widely adopted
Amid mounting pressure from Apple and Google on the mobile wallet front and with its separation from eBay fast approaching, PayPal has made a strategic move and announced it is buying Paydiant, a mobile payments company, for an undisclosed amount.
The Wall Street Journal reports Paydiant provides the underlying technology for mobile apps that allow for in-store payments using a scannable code at checkout. With its purchase, PayPal gains access to a number of merchants that currently use Paydiant’s technology, including Subway and Target. In addition, the acquisition expands payments options for its 155 million active users, according to PayPal. The deal, which is expected to be finalized at the end of March, comes ahead of PayPal’s split from eBay, at which point it becomes a separately traded company.
Slow proprietary money-transfer systems and procedures replacement
Utilizing the GPS functionality to recommend a store near the consumer
Taking a photo of an item and searching for similar items without using words (Pinterest)
Sharing a photo of yourself in an outfit with a community for on-the-spot opinions before buying
Reading bar codes and QR codes to build shopping lists and get product information
and recommendations
beacon-powered alerts and offers
Scanning and storing your license or credit card in your phone and transferring data
via the encrypted mobile signal instead of handing your card to a stranger (i.e., the
cashier) or typing data into an online form
Organizations must embrace mobile not just as a device, but as a way of working.
Although mobile transformation has clearly started, few organizations have completed a successful deployment. In a recent Constellation Research survey of 500 organizations, mobile transformation registered as a top priority for 50 percent of organizations, yet only 36 percent of organizations perceived their transformation projects as progressing satisfactorily.
Before attending MWC, evaluate your organization's mobile transformation progress by identifying its position on Constellation's four-stage mobile transformation framework.
Set your goals to advance stage-by-stage until transformation is complete.
Stage 1: Starting infrastructure (hardware and software) and resource (people and money) allocations to begin projects.
Stage 2: Updating existing tools and processes to be accessible from mobile devices.
Stage 3: Updating existing tools and processes to be leverage mobile specific features such as cameras, GPS, accelerometers, etc. and to work across a variety of device types.
Stage 4: Implementing new tools and/or processes that change the core business (products, services, revenue models, etc.) of the organization.
They should always be mindful of their goals in mobile, and should design their app from the ground up to meet those goals.
While mobile apps are often viewed as products to be created and shipped out the door, most of them should be seen as an ever-evolving entity to be developed, tested, measured, and maintained over the long haul.
. Massive amounts of data mean nothing if the business behind the app doesn’t take the time to identify patterns and figure out what they mean and how to leverage them. The better a business understands its customers the better it can help serve them. And
Plan Flight (for travel and transportation companies) helps companies track and trim their fuel expenses by letting pilots view flight schedules, flight plans, and crew manifests in advance, report issues in-flight to ground crews, and make more informed decisions about discretionary fuel.
Passenger+ (for travel and transportation companies) lets flight crews offer more services in-flight like special offers, re-booking, and baggage information.
Advise & Grow (for banking and financial companies) lets bankers access client profiles and analyses to make more personalised recommendations for small businesses and complete secure transactions.
Trusted Advice (for banking and financial companies) allows advisors to access and manage client portfolios on the road, modelling recommendations and do secure transactions.
Retention (for insurance companies) helps agents manage customer contacts with analysis, alerts, and recommendations. It also lets them complete transactions using e-signatures.
Case Advice (for government) supports caseworkers as they visit families and people. It also helps them identify at-risk situations using big data analysis.
Incident Aware (for government) gives law enforcement officers real-time access to maps and video-feeds of incident locations on their iPhones. It also shows them information about victim status, escalation risk, and crime history ability to call for back-up, too.
Sales Assist (for retail) lets salespeople see customer profiles on the retail floor so they can make recommendations. It also lets them check inventory, locate items in-store, and ship out-of-store items.
Pick & Pack (for retail) helps retailers track items in the story and connects with inventory order systems.
Expert Tech (for telecommunications companies) taps into FaceTime for all sorts of needs, whether it’s employees asking an question to an expert or customers talking to a support tech.
The high cost of developing or rewriting enterprise applications for mobile use is, according to 81 percent of Mobile Helix's survey respondents, down to the complex and fragmented nature of the mobile market. When it comes to developing native mobile apps, only 32 percent felt they had the requisite skills, while nearly half (47%) of those that had developed a mobile app reported reservations about repeating the process due to time, cost and complexity issues.
Productivity gains can be delivered by mobile deployments of enterprise applications. That much seems unarguable. However, it looks as though today's mobile application development platforms (MADPs) could serve the market better.
M
In many cases, the failure of traditional or comprehensive outsourcing
http://www.forbes.com/sites/joemckendrick/2014/10/18/cloud-may-be-the-new-outsourcing-but-the-same-due-diligence-must-apply/
Organization’s will to save 20% or move out non-core processes changed into a need for scalable, flexible, utility model for computing capacity
Cloud ready Architecture This will enable the organization the move to public cloud
Automate environment construction including server, storage, network, dbms, middleware
Self service portal for building environments.
Moving environments from dev to test to prod automatically
Achieving:
Standard environments. No human errors.
Faster delivery cycle (from days to minutes)
Chargeback\showback option
Better capacity planning
Next near steps:
Elasticity (at the environment level)
Automatic procedure (restart environment each day at 24:00 because of memory leak)
Devops = application deployment
Next advanced steps: Hybrid clouds (private to public)
Cloud ready Architecture This will enable the organization the move to public cloud
Automate environment construction including server, storage, network, dbms, middleware
Self service portal for building environments.
Moving environments from dev to test to prod automatically
Achieving:
Standard environments. No human errors.
Faster delivery cycle (from days to minutes)
Chargeback\showback option
Better capacity planning
Next near steps:
Elasticity (at the environment level)
Automatic procedure (restart environment each day at 24:00 because of memory leak)
Devops = application deployment
Next advanced steps: Hybrid clouds (private to public)
The biggest challenge that biz face in executing their strategy is focusing the right people and resources on strategic initiatives
Org are looking to ensure that their talent is focused on core areas of their biz
Transparent and flexible IT need to enable biz easy way to move people and resources from one part of biz to another
In order to quickly react to ever-changing reality org need to embrace different models of workforce designated for different purposes
You Can NOT Win It Alone
The Age Of The Customer Forces Firms To new level of Business and IT Alignment by integrating business strategic planning and operational execution. IT portfolio performed in silos no longer works in a dynamic business environment
Empowered customers demand more
innovative products and high-quality services in an increasingly mobile environment. Market conditions can change so rapidly that strategic direction
may change by the time a final budget is approved
financial stability, staff members and future roadmaps
ites like Airbnb and Getaround have taken drastic measures implementing features, such as ID verification and social graph integration, to guard against safety issues. Startup TrustCloud, too, has ambitions to create a portable measure of trust that can be referenced from any place on the web
Think how different the technology landscape looked just ten years ago. In 2001, there were no iPhones delivering apps on the go, social media was in its infancy and few people had heard of cloud computing
http://riskjournal.oliverwyman.com/2011/05/29/taming-it-risks/
GRC efforts as unnecessary and burdensome reactions to regulations and risk events
1. Boards have a responsibility to determine how great the risk is that competitors’ innovative use of IT could alter their own business’s core value proposition. How does the management team evaluate the evolving IT capabilities of their competitors? What steps are being taken to ensure that the company’s position and its ability to maintain margin and grow revenues are not threatened?