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October 24, 2011
Cloud @ Philips – Vision and Reality
Confidential October 24, 2011 2
An introduction to Philips A well-respected, blue-chip company for 120 years
26%
39%
35%
51%
25%
24%
“…a global company of leading businesses creating value with meaningful innovations that improve people’s health and well-being.”
Founded in 1891Headquartered in Amsterdam, Netherlands
Sales of €22.3 billion in 20101
Growth Markets32% of 2010 sales generated in growth markets
Globally recognized brand (world top 50)Our brand value doubled to $8.7bn since 20042
117,000 employeesSales and service outlets in over 100 countries
€1.5 billion investment in R&D, 7% of sales
Who we are Our businesses Our mission
2010
Healthcare
Lighting
Consumer Lifestyle
2Source: Interbrand1Note - All figures from the year 2010 onwards exclude Television as it is treated as discontinued operation
Confidential October 24, 2011 3
Unique leadership positions in many marketsCurrent NPS leadership positions1
GlobalCardiovascular
X-ray
GlobalPatient
Monitoring
GlobalUltrasound
RegionalCardiac
resuscitation
Regional (USA)Home
Monitoring
GlobalMale electric
shaving & grooming
GlobalMother and Child Care
Regional (Latam, China)
Beauty and Skin
Regional (Latam, China)
Kitchen appliances
GlobalOral
Healthcare
GlobalHigh Power
LEDs
GlobalProfessional Luminaires
GlobalLumileds
GlobalAutomotive
Lighting
GlobalProfessional
Lamps
Healthcare
ConsumerLifestyle
Lighting
Confidential October 24, 2011 4
Creating meaningful innovationsImproving lives in new ways
Gain deep insights into people’s needs and aspirations by following a process requiring end-user input at every stage
Transform insights into innovations by combining the diverse perspectives of different disciplines
“Learn fast, fail cheap” by applying a rigorous process to assess value potential early
Lead in open innovation by working closely together with partners in a spirit of open innovation
Confidential October 24, 2011 5
• We know we want to use cloud services– Do we know why?– The usual: cost, speed, opex, reach
• We know our business wants to use cloud services– Do we know why?– The usual: speed, easy to bypass IT (lowcost carrier strategy, swipe
your credit card model)
We rather have a cloud tactic: adopt where usefull
Do we have a cloud Strategy?
Confidential October 24, 2011
Our Journey, a classic journey
Discovery Structuring
IT: what is the cloud?
Business: just buy and expense it
Partners meeting
Seminars
buzz
Proof of Concepts
Pilots
Architecture Principles and
Guidelines
Defined space in the architecture
Systematically looking for cloud
alternatives
BPM
ESB
Make cloud and non cloud work
together
Adoption Integration
Confidential October 24, 2011
Our Journey, a classic journey
Discovery Structuring
IT: what is the cloud?
Business: just buy and expense it
Partners meeting
Seminars
buzz
Proof of Concepts
Pilots
Architecture Principles and
Guidelines
Defined space in the architecture
Systematically looking for cloud
alternatives
BPM
ESB
Make cloud and non cloud work
together
Adoption Integration
Confidential October 24, 2011
Massive discussion
SaaS
PaaSIaaS
Definition
Control Risk
Integration
Compliance
RoadmapMigration
Exit ScenarioIP
SpeedEase
Flexibility
Social
Confidential October 24, 2011
Our Journey, a classic journey
IT
Discovery
Jan 2010 – private cloud with T-SystemsMassive HR Landscape (careers, talent, performance,
training,…)
Our Business
iSite PACS
Confidential October 24, 2011 10
Structuring – why?
• Give your teams (architects, project managers, SRC officers, …) an easily readable map to
– Detect opportunities– Understand the risks– Prepare for solution analysis– Prepare for decision support
• Give examples: we already use some cloud applications
Confidential October 24, 2011 11
Structuring – seize the opportunity
BusinessProcessOutsourcing
Stand-alone Low budget Application
To be Integrated with other Applications
Sensitive / privacy information
Bus. Critical / Comp. Adv. Application
Vendor Compl. & DependencyRisk
Standard Appl. from preferred vendor available
Cloud: Private offering
Cloud: Public offering
Cloud: Hybrid offering
Cloud: Community offering
Explore SaaS solutions as a preference
Potential risks, assess and compare to on premise applications
High risk, full assessment required to consider as a solution
Confidential October 24, 2011 12
Structuring– set the principles
1. Prime SaaS candidates: Outsourced bus. processes
Stand-alone & standard business processes
2. No preclusion of SaaS solution candidates based on business process area
3. Business Process Architect must assess risks & approve in all other cases. BIA (Business Impact
Assessment) required; (segregation in multi-tenant offerings; Identity management federation)
1. Prime SaaS candidates: Limited information exchange
with SaaS domain; (to be evaluated from a business process perspective).
2. SaaS candidates dealing with sensitive/ privacy information must be checked against internal and external regulations (Philips Classification, SOX, HIIPA, etc.) : PIA (Privacy Impact
Assessment) required
3. Information architect must approve.
1. Prime SaaS candidates: Loosely coupled applications
(decision by the architects)
No solution planned (8Q RM).
2. SaaS candidates to be tightly integrated with other IT building blocks (both SaaS and non-SaaS) must be checked on: No short term alternative
‘Decoupling hub’ at Philips side taken into account
BIA Assessment required
3. Application architects must assess risk and approve
1. Prime SaaS candidates: Commodity IT-Solutions
Via existing providers.
2. SaaS candidates based on differentiating techno-logy solutions need to be assessed on: Integration & compatibility
between Philips and SaaS Technology Infrastructure.
Integration with Philips security and identity & access management Infrastructure:
SSO & User mgt. federation is key requirement
3. Technology architect must assess risk & approve.
Process
1. SaaS selection, approval and implementation process must follow the ‘normal’ procedure including EAB approval.
2. SaaS solutions must always be taken into account in software selection processes.
3. SaaS vendor dependency must be well managed, especially in case of very business specific ‘niche’ applications, provided by only a few niche vendors
Information Application Technology
Governance
Confidential October 24, 2011 13
Structuring – manage the risk
• You already have the controls!– Look at what you do when you do outsourcing (or BPO)– Leverage your weight to adapt the cloud contract
• Balance– Adapt your principles and checks to catch the risks early– Setup the golden rules to equip your IT and business with the quick
filter to detect potential catch points
Confidential October 24, 2011
Adopting – where is cloud going to help?
Foundation
Enabler
Co Creator
Maintain the state of the companyManage the integrity of the state
Empower usersDeploy services in the fieldAdapt fast
Build in agile and far reaching environmentsScale with business success
Confidential October 24, 2011
Adopting – where is cloud going to help?
Foundation
Enabler
Co Creator
Cloud -
Cloud +
Cloud ++
Confidential October 24, 2011
Transforming accident in success ?
• From adoption everywhere to clear use• Consolidated business plans (!)• Replace user facing solutions with
– Flexible– Fast– Modern
Our CRM?
Confidential October 24, 2011
How?
• Integral business case• Exit scenario• Involve the cloud vendor in your project, qualify with prototyping• Extend with the right partners (integration, functional)
Our CRM?
Confidential October 24, 2011
Structural adoption and integration – cloud style
• Large cloud landscape means large integration with cloud services and your in house systems (doh!)
– Where we are: is an ESB sufficient, do we need accelerators like ironcast, how does SAP PI resist
– You are the glue -> pushing your masterdata model out is less of an option, so you get to build the Rosetta Stone
• Large SaaS drives UI specialization but also UI diversity across a user journey
– Unless… you go for one specific ecosystem (Salesforce +…)
Confidential October 24, 2011
SaaS solutions driving agility: The Technovision perspective
Technovision for PHILIPS
Collaboration
Foundational Business Solutions
Open Standards & Service Orientation
Sharepoint 2010 (BPOS)SocialCast (Connect Us)
Vovici
CollaborationHubs (eg. REACH)
Lighting: CityTouchSalesForce.comConcur
ADP PayrolAribaZycus
AOK soft tokens
HC Service Mgt.(based on Force.com)
Amazon EC2/ EC3
Lighting: CityTouch
• MS Azure Force.comPaymetric
SAVOStepstone
INNT
Agility
Scalability & Efficency