Apps World Europe: Data Management panel. Unlocking the business value of integrating data into the cloud My contribution to this conference.

1. Cloud Apps World – Excel LondonNovember 12. 2014 1
BITSA
Business/IT Strategy & Architecture
Cloud Apps World Europe
Unlocking the value of
Big Data/Analytics
Linkedin: Steef Klein

2. Cloud Apps World – Excel LondonNovember 12. 2014 2
• Comprehending the challenges of storing and understanding big data
• Best practice in using the cloud to better manage data (big and small)
• Examining the benefits: Case study examples of cloud data management optimising
ROI
• Analysis: What tools are available to use the cloud to analyse big data and boost its
value?
• Security considerations: Necessary steps organisations should take to safeguard data
accessed via the cloud
Data Management Panel
Unlocking the business value of integrating data into the cloud
#Appsworld: November 12. 14:00

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• Big data competitors. These are organizations that have access to extensive information from
operations or customer relationships, and use that data intensively. Examples include investment
firms and functions such as marketing.
• Overachievers. These are organizations that have limited access to data, but are committed to
using it as much as possible to inform decisions. Examples include consumer packaged goods
companies and operations departments.
• Underachievers. These are organizations that have access to extensive information, but fail to
take advantage of it. Examples include telecom companies, and finance and sales departments.
• Disadvantaged. These are organizations with limited access to data that rarely use information to
support the business. Examples include healthcare and human resources.
Big/Data analytics
The industries willingness to use it.
Source: Thomas Davenport

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The rise of the 3rd platform
Dedicated, agile and integrated solutions will prevail
•In 2020 > 90% of the total IT industry’s growth will be based upon 3rd platform
initiatives
•The industry’s 3rd platform revenue will be 40% of the total IT industry's revenue
• A mature 3rd platform will support all SMACT¹ building blocks.
Source: IDC¹SMACT: Social business, Mobile solutions, big-data/Analytics, Cloud services & internet of Things

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SMACT Building Blocks
Social business, Mobile solutions, big-data/Analytics,
Cloud services & internet of Things

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Cloud Computing Services
SMACT is on the move
• In 2014, parts of SMACT has reached the plateau (aPaaS, SaaS, mobile)
• Big Data is lagging; software industry must integrate this within aPaaS
• IoT is on the radar, but still needs time to mature
• Cloud Services, aPaaS, Mobility, SaaS, iPaaS, has reached plateau
• Social Technologies not mentioned (from IDC), but is embedded within aPaaS, Mobile, etc
Source: Gartner

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Mission, Vision & Strategy
Many companies struggle with the execution
•Over 50% of all European companies have a negative Free Cash Flow to Firm¹ (Equity) -2013-
• Many of these companies struggle to lower their WC, COGS, etc.
• A sound strategy in combination with an embedded business model change is needed
• Previous too complex 2nd platform related IT solutions prevented a successful roadmap
¹Source: Aswath Damodaran
Process
Learning&Growth
Financial
Customer
STRATEGY MAP BALANCED SCORECARD ACTION PLAN
Process
Theme
Operations Management Objectives Measurement Target Initatitives Budget
Operating Margin
Return on Capital
Revenue growth
On time,
error free
delivery
Short delivery
time
Innovative
value added
products
Improve
Quality
Optimize Supply Chain
& Manufacturing
Processes
Value Streams &
Intelligent equipment.
StrategicSystems
Decisionmakingenvironment
Big Data/Analyticssupport
Mobilesolutions
Highdegreeofflexibility
Skilledand trainedworkforce
Socialmanufacturingenvironment
ChangeInnovationprocess(IT)
Middle Management/
Workforce alignment
•Improve Profitability
•Improve present and future
excess investment returns
•Increase Revenue
• Right, error free, on time
parts
• Be close to the customer
• Deliver intelligent value
stream equipment
• Initiate Quality Control
Program
• Best in class supply chain
& manufacturing KPIs
• Identify Value Streams;
Use Mechatronica
• Middle Management&
Workforce alignedwith
strategy
• Develop the necessary
skills (Lean/Sixsigma)
• Implementmodern
systems
• Reorganize R&D,
multidisciplinaryteams
• Acquire IT personnel
• IntroduceSCRUM
•Market value percentage
•Operating income (EBIT)
•Return On Capital (ROC)
• Free Cash Flow to Firm
growth (FCFF)
•On time delivery to commit
•Deliverytime
•Customerretentionrate
•New customers
• > 99%
•< 2 days
•> 90%
• > 10% of Revenue
• >30%
• > 15% of revenue
• > 12,5 %
• > 7,5% annually
•Total supplychain costs
•Orderfulfillment lead time
•Keycomponentsmaterial
availability
•Inventoryturnoverrate
•Return on R&D investment
• <10 % of revenue
• < 20 days
•< 7 days
• > 8
• > 18%
•Strategic awareness
•Strategic job readiness
•Systems availability
•Reorganizationreadiness
•Profiles &acquisition
•SCRUM certification
•Yr1 – 100%
•Yr1 – 75%; Yr2 – 100%
•Yr1 - 75%; Yr2 – 100%
• Yr1 – 100%
•Yr1 – 100%
•Yr1 – 80%; Yr2 – 100%
• $ XXX
• $ XXX
• $ XXX
• $ XXX
• $ XXX
• $ XXX
• $ XXX
• $ XXX
• $ XXX
• $ XXX
• $ XXX
• $ XXX
• $ XXX
• $ XXX
•Global processes
• Standardize local factory
processes
•Extend Service network
•Hunterapproach
•Renew ERP
• ImplementMES (Incl.
Quality)
•ImplementAPS (SOP)
•Improve CRM usage
• StrengthenPLM
•Global StrategyProgram
•Job profiles, training
• Communications
program
•Develop training
schedule &execute

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Optimising your ROI using the 3rd platform
Average annual cost savings about $730K per 100 users
WC and COGS reduction not taken into account.
A 50% reduction of the total supply chain costs is possible within companies which
are laggards.
44%
14%
34%
9% Business productivity
Infrastructure cost
reduction
IT staff productivity
User productivity
Source: IDC

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High level supply-chain metrics
Improving KPI’s
Source: SCOR

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On premise based Capex & Working Capital
Revenue 700.000
EBIT(1-t) 45.000
Total WC (15% of revenue) 105.000
Total Capex 42.000
IT Capex (3% of revenue) 13.704
Total Capex depreciation 33.600
Change in NCWC 0
FCFF 36.600
Cloud based Capex & working Capital
Revenue 700.000
EBIT(1-t) + internal IT Opex 46.824
Total WC (11.25% of Revenue) 78.750
Total Capex 37.686
IT Capex (2.1% of revenue) 9.390
Total Capex depreciation 30.149
Change in NCWC -26.250
FCFF 65.537
Operational Excellence improvement
The possible influence of Enterprise aPaaS on Operational Excellence
(An example – Figures are indicative)
• Revenue of medium sized manufacturing company
•Starting WC is 15% of revenue. Based on average WC research in the Mfg industry sector.
• Best in class companies have a Non Cash Working Capital lower than 10% of revenue
• An optimal supply-chain can reduce NCWC with 50% when a more complex supply-chain
is at hand.
•In this example the operating Income Margin (–tax rate) equals 6.4% of revenue. (Laggard)
• The FCFF rises with 168%; the intrinsic value of the company , which is calculated over
multiple years will increase.
• A business plan written for many manufacturing companies with a sound strategy will in
most cases result in moving from a laggard – to a best in class company.

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How to improve your equipment OEE
How can the OEE of an important asset be improved.
• Down time: $100,000 revenue loss each hour.
• Move to predictive – or prescriptive maintenance.
• Use Big-Data/Analytics to gather and analyze the information,
• Use the SMACT building blocks in order to inform responsible management.
• Use Hadoop to gather and process the data from a variety of sources.
• Use e.g. Apache Mahout, a Hadoop add-on, to create predictive algorithms.
• Use NOSQL – or Graph databases to store collected data.
• Use an Enterprise aPaaS solution to retrieve and display the information.
Source: Big Data Predictive Analytics for Proactive Semiconductor Equipment Maintenance: A Review

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Enterprise aPaaS Platform
Cluster
Data Store
5
NOSQL
or
Neo4j
GraphDatabase
Business
Logic
Predictive
Algorithms
6 1
2
Data
Mapping &
Reducing
QueryandDisplay
AnyUI
Initialdatafiltering&formatting
4
3
4 Create predictive algorithms inside
Hadoop add-on
5 Store all relevant data into a NOSQL or
Graph database
6
Use aPaaS platform+add-ons to
display end-results
1 Define the different sources to mine
3 Map/Reduce data in Hadoop cluster
Retrieve initial data and filter and
format data within aPaaS platform
2
Big Data/Analytics
Use case example

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Cloud services and security
Will public Cloud services be accepted by the industry?
• Having your own Enterprise App store is essential.
• Monitoring & controlling enhances corporate security, industry compliance and employee
productivity.
• If your aPaaS platform has a FISMA¹ compliancy it will be certified and accredited by the US
Government.
• New dedicated, multi-tenant government instances will allow U.S. federal, state, and local
agencies to rapidly deploy the latest social and mobile technologies in compliance with
FISMA requirements.
• New AppExchange for Government delivers the app marketplace where agencies can find,
try and deploy cloud apps for the public sector.
• New Government Partner Accelerator Program will train an army of 1,000 integrators to
transform government IT with salesforce.com cloud solutions.
• Two-thirds of U.S. federal Cabinet-level agencies and governments in more than 80 percent
of U.S. states trust salesforce.com to power their social enterprises.
The most eloquent example:
The US government accepts Salesforce1’s aPaaS solution as a secure platform, which
is FISMA compliant.
¹FEDERAL INFORMATION SECURITY MANAGEMENT ACT (FISMA)

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Available aPaaS development environments
Some available tools to support complete SMACT
Heroku
World’s most powerful
aPaaS polyglot platform.
Elastic Beanstalk
Amazon’s aPaaS solution
Azure
Microsoft’s aPaaS solution
AppFog
An aPaaS differentiator
Acquia
The Drupal only platform
Salesforce1
The leader in Gartners aPaaS magic quadrant Openshift
Red Hat’s aPaaS solution
Engine Yard
Ruby, PHP and Node.js
Google App Engine
Java and Python
CloudBees
Primarily Java
Cloudera Enterprise
Hadoop based
Enterprise Datahub Services
Joyent
An independent aPaaS solution

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BITSA
Business/IT Strategy & Architecture