My presentation @ Capgemini Architecture Week 2011 in Toulouse

1. Trying to Understand
the Intersection between Business & Technology
jean-francois.caenen@capgemini.com
Chief Technology Officer
Capgemini France

2. Big changes are happening at
the intersection between Business & Technology
Macro Conditions
1st History New Business models
2nd History
of Enterprise IT of Enterprise IT
Consumerization of IT
Cloud Computing
‘‘The future is here.
It's just not widely distributed yet ’’
William GIBSON
| Architecture Week
Trying to Understand the Intersection between Business & technology
© 2011 Capgemini. All rights reserved. 2

3. 1st History: Initial Construction of IS
Business people Productivity Transactions
do not understand technologies
The IT org is the owner Applications automate tasks
IT is rare, expensive The tasks we know [as must be done]
and complex Project by project
Highly technical Culture Hundreds of applications in silos
Fortress of specialists
More & more expensive
Decision based on
Cost center
Cost savings within IT
Cost of Build
Build to last
Unique size Black Box
Cascading
Contract based relationship Long Cycles
Order takers
| Architecture Week
Trying to Understand the Intersection between Business & technology
© 2011 Capgemini. All rights reserved. 3

4. Struggling to deliver business & technology alignment
Alignment implies a waterfall process
Decide on a Business Strategy
Build your technology on that foundation
TOO Shadow IT
SLOW
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Trying to Understand the Intersection between Business & technology
© 2011 Capgemini. All rights reserved. 4

5. Business demand for IT is changing
Business people
understand technology
Technology Driven
Business Differentiation
& Transformation
Time To Value
| Architecture Week
Trying to Understand the Intersection between Business & technology
© 2011 Capgemini. All rights reserved. 5

6. An Inspiring Case
Increase the revenues Support 2020 Program
coming from differentiating
Services to Airlines
Leveraging Airbus assets
Engineering knowledge
Fleet-wide perspective
Information captured onboard the aircraft
Capability to set industry standards to facilitate
closer integration between Airlines, manufacturers
& maintainers
| Architecture Week
Trying to Understand the Intersection between Business & technology
© 2011 Capgemini. All rights reserved. 6

7. | Architecture Week
Trying to Understand the Intersection between Business & technology
© 2011 Capgemini. All rights reserved. 7

8. A shift in mindset
Stop thinking:
We build a collection of applications
that support our business
Application Silos
Start thinking:
We build our business using
technology platforms
Time To Value
Tools & Services allowing
fast & continuous
delivery of user features A Copernican shift
| Architecture Week
Trying to Understand the Intersection between Business & technology
© 2011 Capgemini. All rights reserved. 8

9. 5 ENABLING TECHNOLOGIES
Engaging customers
User
Any Time Any Where Any Device
Experience
Big Data Big Social The
delivers Data Computing Conversation
Big Value Creating Value Economy
Time To Value
Cloud Business
Everything is Process Total
Computing
elastic Mesh Services
| Architecture Week
Trying to Understand the Intersection between Business & technology
© 2011 Capgemini. All rights reserved. 9

10. Think differently about projects
Technology Driven
Business Differentiation
Automate the tasks & Transformation
we know [as must be done]
Increase Business performance
in complex working situations
Usages are well known New Usages
One can completely specify 30% of the specifications
the system before building it are unknown the 1st day of the project
Agile project driven by
Fixed price engagements bunisess value analysis
Long Cycles Short Cycles
& iterations
New engagement models
| Architecture Week
Trying to Understand the Intersection between Business & technology
© 2011 Capgemini. All rights reserved. 10

11. Agile Development Process
The “agile” approach consists in Business
implementing functions by “business” Collaboration
priority, with “continuous” flexibility IT
and acceptance of business change
Deliver & test early
to build the right software
| Architecture Week
Trying to Understand the Intersection between Business & technology
© 2011 Capgemini. All rights reserved. 11

12. Business Value Driven Process
High Priority
Backlog sprint
During each iteration, the top priority
items get implemented
Items with a high
priority are detailed
New items are integrated
with their priority level
Items in the backlog can be
reprioritized at any time
Items with a low
priority are described
in a simple way Items can be removed
from the backlog at any time
Low Priority
Product Backlog
Requirements expressed from the user perspective
| Architecture Week
Trying to Understand the Intersection between Business & technology
© 2011 Capgemini. All rights reserved. 12

13. TRADITIONAL PROJECTS ARE LIKE A CANNON BALL
Assumptions :
The customers know what they want
The developers know how to build it
Nothing will change along the way
Source: Henrik Kniberg
| Architecture Week
Trying to Understand the Intersection between Business & technology
© 2011 Capgemini. All rights reserved. 13

14. AGILE IS LIKE A HOMING MISSILE
Assumptions:
The customers discover what they wants
The optimal architecture is emerging
Things change along the way
Source: Henrik Kniberg
| Architecture Week
Trying to Understand the Intersection between Business & technology
© 2011 Capgemini. All rights reserved. 14

15. Business demand for IT is changing
Innovations
Social Apps
Consumerization of IT
New usage models Extreme Usability
Empowered
Self service
| Architecture Week
Trying to Understand the Intersection between Business & technology
© 2011 Capgemini. All rights reserved. 15

16. Fast changing consumer technology landscape
In 1993, iPad 2
would have been among the
top 30 supercomputers
in the world
| Architecture Week
Trying to Understand the Intersection between Business & technology
© 2011 Capgemini. All rights reserved. 16

17. Extreme Usability, Self-service & Freedom of Choice
App Store Bring Your Own
1-click browse / install / use DEVICE
APPLICATION
Empowered Users
| Architecture Week
Trying to Understand the Intersection between Business & technology
© 2011 Capgemini. All rights reserved. 17

18. Vision
What if Apple were to develop business applications?
Jobs' approach to the future of computing:
Make everything simpler, more universally usable,
and less constrained by the narrow orthodoxies of
the tech industry.
| Architecture Week
Speakers' Handbook, Arnaud Buisne, v1.2 - 26/08/2011
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19. User Experience
Like something Apple could have built
Great user
experience
• Users can accomplish
Useful their goals.
• Users can easily
Usable perform tasks.
It is what business • Users enjoy their
Desirable
users demand. experience.
It is what IT must deliver.
| Architecture Week
Enterprise Applications in 2011
© 2011 Capgemini. All rights reserved. 19

20. Consumerization of IT
Consumer Technology is more and more influencing the
enterprise world with employees forcing an unprecedented
pace of change.
CIOs Surveyed on Tablet Usage
2011
2010
Morgan Stanley, “Tablet Demand and Disruption”, February 14, 2011
| Architecture Week
Trying to Understand the Intersection between Business & technology
© 2011 Capgemini. All rights reserved. 20

21. A Big Shift in mindset for Enterprise IT
Keep technology
diversity in check to
keep costs in control.
Harness the technology
ideas and initiatives of your
empowered employees.
| Architecture Week
Trying to Understand the Intersection between Business & technology
© 2011 Capgemini. All rights reserved. 21

22. New Capabilities on the Technology side
Everything
Cloud Computing is elastic
| Architecture Week
Trying to Understand the Intersection between Business & technology
© 2011 Capgemini. All rights reserved. 22

23. Chief Financial Officers
love
Cloud Computing !
No investment before use.
Pay for what you need, when you need.
Instead of investing in rigidity, you buy flexibility.
| Architecture Week
Trying to Understand the Intersection between Business & technology
© 2011 Capgemini. All rights reserved. 23

24. Business Executives
love
Cloud Computing !
Source:
HfS Research and London School
of Economics, Oct 2010
846 Entreprises
| Architecture Week
Trying to Understand the Intersection between Business & technology
© 2011 Capgemini. All rights reserved. 24

25. By 2015, 50 % or more of NEW enterprise IT spend
will be Cloud-based or Hybrid.
By 2015, 65 % or more of NEW enterprise IT workloads
will be Cloud-based or Hybrid.
By 2015, 25 % or more of TOTAL enterprise IT workloads
will be Cloud-based or Hybrid.
SaaS is driving adoption. PaaS enables custom &
composite solutions.
| Architecture Week
Trying to Understand the Intersection between Business & technology
© 2011 Capgemini. All rights reserved. 25

26. Cloud Computing & Innovation
Culture of Preliminary Analysis
10-15 years ago, Limitation: Our capability to
elaborate ROI studies
experimenting was expensive Afraid of: Errors in ROI studies
Experimenting costs as much as More value for the time spent
More value for the euro spent
(or sometimes less than) Limitation: Our capability to manage
the analysis experimentations
Afraid of: Have lost an opportunity
to experiment
Culture of Observation allowing
fast learning and adjustments
| Architecture Week
Trying to Understand the Intersection between Business & technology
© 2011 Capgemini. All rights reserved. 26

27. Cloud Sourcing – New IT Supply Chain
Business People are a new buying center for
Enterprise Technology
Several Cloud Service providers will be used
Cloud Service Providers
Total Cost
Entry
Cloud
Enterprise Run
Exit
| Architecture Week
Trying to Understand the Intersection between Business & technology
© 2011 Capgemini. All rights reserved. 27

28. IT organizations must change
A Capacity oriented IT org
Data Centers X 000 m.d. for projects
Process
IT Standards Demand Management
Build & Run
A Business Services Business Services & KPIs
Less technology selection &
oriented IT org more business support
Focus will shift to Business Integrating, monitoring & supporting
Internal & external services
empowerment. Value through governance, orchestration
Encourage Innovation or & innovation
Expect to be bypassed ! Short Cycles – Dynamic service provider
| Architecture Week
Trying to Understand the Intersection between Business & technology
© 2011 Capgemini. All rights reserved. 28

29. IT role in business leverage of technology
Business’s use of technology
Business
Business self-
self- provisioned
provisioned Business
self-
provisioned
IT provisioning of
IT
technology for
provisioned
business
Business
self- Business
provisioned self-
provisioned
Business
self- Innovation will x3 from 5% to 15%
provisioned Vendor mngt will x2 from 10% to 20%
Enterprise Arch will x2 from 10% to 20%
Source: Risk mngt will increase from 10% to 15%
| Architecture Week
Trying to Understand the Intersection between Business & technology
© 2011 Capgemini. All rights reserved. 29

30. 2 years ago the goal of the CIO was
to cut costs and keep the lights on
A perfect storm
at the intersection of
Business & Technology
…but a positive one
Business empowerment
Dynamic Service Provider
Business People
understand the value of Encourage Innovation or
Technology Expect to be bypassed
Think differently CIO & IT org need to change
Use new technologies and Build a new governance or
new IT supply chain for Expect to be a cost center
competitive advantage
From steward to strategist
Co-invention / construction or revolutionary
| Architecture Week
Trying to Understand the Intersection between Business & technology
© 2011 Capgemini. All rights reserved. 30

31. www.capgemini.com
The information contained in this presentation is proprietary. ©2010 Capgemini. All rights reserved