key imperatives for the cio in digital age by lalatendu das digital vp, associate principal at...

18
June 2017 Enabling Digital Transformations Key imperatives guiding CIO’s agenda

Upload: rahul-neel-mani

Post on 21-Jan-2018

191 views

Category:

Technology


2 download

TRANSCRIPT

Page 1: Key Imperatives for the CIO in Digital Age By Lalatendu Das Digital VP, Associate Principal at McKinsey & Company

June 2017

Enabling Digital Transformations

Key imperatives guiding CIO’s agenda

Page 2: Key Imperatives for the CIO in Digital Age By Lalatendu Das Digital VP, Associate Principal at McKinsey & Company

2McKinsey & Company

India is sitting on the cusp of a digital revolution…

SOURCE: http://www.gadgetsnow.com/tech-news/India-sitting-on-cusp-of-digital-revolution-Ravi-Shankar-Prasad/articleshow/50878990.cms

“India is sitting on the

cusp of a digital

revolution”

Ravi Shankar Prasad, Minister of

Information & Technology

Page 3: Key Imperatives for the CIO in Digital Age By Lalatendu Das Digital VP, Associate Principal at McKinsey & Company

3McKinsey & Company

India has the 2nd largest internet user base in the world

SOURCE: KP Internet trends 2017

355

277

198

149

11184

6654

350

400

100

300

200

150

250

50

0

20161512

Number of Internet users in IndiaMillion

14131110

+31% p.a.

2009

Page 4: Key Imperatives for the CIO in Digital Age By Lalatendu Das Digital VP, Associate Principal at McKinsey & Company

4McKinsey & Company

Mobile data prices are falling

SOURCE: KP Internet trends 2017

2.7

3.1

3.53.73.7

3.94.04.24.34.34.44.4

Jan-14 Jul-14 Apr-16

3.5

4.5

4.0

1.0

Jan-17

2.5

1.5

Jan-16

3.0

Jul-16Oct-15

0.5

Apr-17Jul-15Oct-14 Jan-150

2.0

Apr-15Apr-14 Oct-16

1.9

-56% p.a.

Average Price for 1 GB of mobile data by Industry Incumbents in IndiaIn US $

~$0.2 / GB

Reliance Jio

Page 5: Key Imperatives for the CIO in Digital Age By Lalatendu Das Digital VP, Associate Principal at McKinsey & Company

5McKinsey & Company

Jan-dhan bank accounts, Aadhaar and Mobile is ushering in a paperless era

SOURCE: https://www.slideshare.net/indiastack/india-stack-a-detailed-presentation

Page 6: Key Imperatives for the CIO in Digital Age By Lalatendu Das Digital VP, Associate Principal at McKinsey & Company

6McKinsey & Company

Substantial value can be unlocked through rapid digitization

SOURCE: McKinsey Global Institute

Many disruptors are already far ahead

World’s largest hospitality service

doesn´t own any beds

World’s largest retailer doesn´t

have any stores

Average increase in customer

satisfaction through digital channels34%

Average improvement in stock

performance for companies with

successful digital transformations 2x

Average improvement in operating

income from digital transformations 40%

Page 7: Key Imperatives for the CIO in Digital Age By Lalatendu Das Digital VP, Associate Principal at McKinsey & Company

7McKinsey & Company

…however, most organizations are not ready for the speed and flexibility required to become a leader in a digital world

SOURCE: https://blogs.msdn.microsoft.com/mikewalker/2009/03/11/mapping-current-state-architectures-across-the-enterprise/

Sample Enterprise IT Application Map

Page 8: Key Imperatives for the CIO in Digital Age By Lalatendu Das Digital VP, Associate Principal at McKinsey & Company

8McKinsey & Company

Four imperatives for making enterprise IT digital ready

1

2

3

4

1

2 3

4

Data

APIs

DevOps

Agile Delivery

Page 9: Key Imperatives for the CIO in Digital Age By Lalatendu Das Digital VP, Associate Principal at McKinsey & Company

9McKinsey & Company

Data is everywhere; it’s important to distinguish between information and noise

SOURCE: https://image.slidesharecdn.com/wwbd-010716-1-160108020248/95/working-with-big-data-7-638.jpg

1

Page 10: Key Imperatives for the CIO in Digital Age By Lalatendu Das Digital VP, Associate Principal at McKinsey & Company

10McKinsey & Company

Having a clear master data management strategy essential for quality and

consistency

SOURCE: Source

1

Delivery to

touchpoint

s

Applicatio

n

Integration

Presentati

on layer

Data

Factory

Analytics/

App

Services

Me

ta d

ata

/se

ma

ntics m

an

ag

em

en

t

Ho

stin

g(C

lou

d, o

n-p

rim

, h

yb

rid

), In

fra

str

uctu

re, D

evO

ps, S

ecu

rity

, S

up

po

rt, M

on

ito

rin

g, a

nd

Au

ditin

g

Email

Email

marketi

ng

Own

websites

CMS

UGC

e-

Comm

Order

Process

-ing

Payme

nts

Tag

mgmt.

Own

mobile

App

Registr

a-tion

SMS

Game

ID/thum

b-print

Geo-

location

Retailer

app

Coupon

s

Social

media

Own

social

media

portals

Off-site

social

media

Kiosk

Identific

a-tion

Videos

3rd Party

Website

SEO

SEM

Online

ad

platform

Survey

Prefer-

ences

Interest

s

Call

Center

Feedba

ck

Enterprise application integration Cache High speed stream

External

data

Data

storage

Data integration ETL EAI Batch Feeds Data Stream

Master

Data

Call center Micro E Geo Census Social

Cha

ng

e m

an

ag

em

en

t a

nd

co

llab

ora

tio

n

Operational

Data

Dashboar

ds

Ad-hoc,

self-serve

Discovery

Experime

nt-ation

(Data

science

sandbox)

Business

Intelligenc

e

Retailer

HW/SW

Redem

p-tions

Content Services Analytics Services

e-

Commerce

Web

content

manageme

nt, DAM

Website

portals

Social

media

manageme

nt

Web / Social /

Mobile analytics

Personalization engine

Rules engine Customizatio

n manager

Retailer Consumer

Data Lake

API (micro-services,

REST)

View Store In-memoryMarts Graph DB

Computation

Custom

hardwar

e

Data

capture

ESB

Device

data

DISGUISED CLIENT EXAMPLE

Page 11: Key Imperatives for the CIO in Digital Age By Lalatendu Das Digital VP, Associate Principal at McKinsey & Company

11McKinsey & Company

Illustrative API led information architecture

SOURCE: Source

Experience APIs

Process APIs

System APIs

Custom

2 DISGUISED CLIENT EXAMPLE

Page 12: Key Imperatives for the CIO in Digital Age By Lalatendu Das Digital VP, Associate Principal at McKinsey & Company

12McKinsey & Company

A robust collection of APIs significantly accelerates time to market for

new solutions

LOB – Lines of Business, EA – Enterprise Architecture

Developers/

Digital Teams

LOB

Central IT/ EAAPI Standards

System APIs

API Exchange

Process APIs

Experience APIs

2 DISGUISED CLIENT EXAMPLE

Page 13: Key Imperatives for the CIO in Digital Age By Lalatendu Das Digital VP, Associate Principal at McKinsey & Company

13McKinsey & Company

DevOps practices are essential to sustain agile delivery at scale3

< ~10 mins to check-in code and push to

production

Time

duration

Code commit,

merge and

auto-build

1-click

deploy

Dev

QA

Staging

1 click setup

of local

environmentProd

Salesforce-like

platform20+ omni-channel

apps

50+ home grown micro-

services

Bracket Bracket

Dynamic

provisioning of full

containerized

environment that

mirrors production

Suite of 1000+ tests (e.g., unit,

functional, E2E, etc.) automatically

run and validated

Auto-scaling of AWS infrastructure

based on customer demand and

traffic

Lean, developer-

heavy, product-

aligned (co-located)

Agile teams focused

on building new

business features

Central, fixed size

(60-70 FTEs) team

focused on managing

the platform and

building new services

DISGUISED CLIENT EXAMPLE

Page 14: Key Imperatives for the CIO in Digital Age By Lalatendu Das Digital VP, Associate Principal at McKinsey & Company

14McKinsey & Company

NOT EXHAUSTIVE

DescriptionCategory

▪ Software repository to store, version and track all software source code and related

artifacts (e.g., tests, configurations, other documentations)

Source code

management

▪ Software frameworks, tools to automate multiple levels of testing:

– Unit tests: Individual units and modules of source code

– Integration tests: Multiple components grouped and tested

– Functional tests: User interface functionality

– Cross browser tests: Multiple device, browser combinations

– Performance tests: Response time of application functionality

– Security tests: Security vulnerabilities of application functionality

Automated

testing

▪ Software tools that automate and coordinate the integration, building and testing of code

with transparent reporting on build and testing status

Continuous

integration

▪ Software tools and frameworks to automatically provision, configure and manage

infrastructure (e.g., web servers, databases, load balancers, etc.)

Infrastructure

automation

▪ Software tools that automate the compilation of software source code files into executing

programs that can run on computer servers

Build tools

▪ Software tool to measure and report the quality of source code against best practices

(e.g., complexity, duplications, modularity)

Code quality

measure

▪ Service provider that offers infrastructure or platform services that are managed and

accessible either via a private (i.e., private cloud) or public network (i.e., public cloud)

Infrastructure /

platform as a

service

▪ Software tools that monitor the health and performance of the application, infrastructure

and overall site usage

Monitoring

Log

management▪ Software tools that centralizes and automates the collection, analysis and insights

generation of applications logs for trouble shooting and identifying root causes of

application issues

Example tools

A number of tools are available to support agile engineering and

DevOps3

Page 15: Key Imperatives for the CIO in Digital Age By Lalatendu Das Digital VP, Associate Principal at McKinsey & Company

15McKinsey & Company

1

2

3

4

1

12

2

3

4

4

5

5

2

3

4

5

Prioritisation of DAD modules

SOURCE: Disciplined Agile 2.X

Wave 1 (deliver,

programme management,

release management )

Wave 2 (support, portfolio

management, IT

governance)

Wave 3 (operations,

enterprise architecture)

Wave 4 (product

management, reuse

engineering, people

management)

Wave 5 (data

management, continuous

improvement)

Successful digital organizations have deployed agile @ scale4

1

Page 16: Key Imperatives for the CIO in Digital Age By Lalatendu Das Digital VP, Associate Principal at McKinsey & Company

16McKinsey & Company

One last thing..

Page 17: Key Imperatives for the CIO in Digital Age By Lalatendu Das Digital VP, Associate Principal at McKinsey & Company

17McKinsey & Company

“Organizations which design systems

... are constrained to produce

designs which are copies of the

communication structures of these

organizations”

- Melvin E Conway

Watch out for Conway’s Law

Page 18: Key Imperatives for the CIO in Digital Age By Lalatendu Das Digital VP, Associate Principal at McKinsey & Company

18McKinsey & Company

Lalatendu Das [“LD”]Vice President

Core Leadership, McKinsey Digital Labs – Asia Pacific

18+ years' experience in agile, DevOps consulting

[email protected]

Certified Scrum Professional

@d_lalit

https://www.linkedin.com/in/lalatendudas/