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Business Value of Cloud Migration09.35 Wednesday 25 September 2013

Eur Ing John Shaw C.Eng FIEI PE BE MBA PMP

[email protected]

Autumn Summit 2013Croke Park Conference Centre

The CIO: Endangered Species or Innovative Leader

mailto:[email protected]

http://www.kingspan.com/

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Kingspan is the world leader in

Sustainable Building Products

A Nexus of Disruptive IT Forces is changing

how we do business

Kingspan is ideally placed to benefit from this

change

Introduction

• Kingspan Context

• The Nexus of Disruptive Forces

• Business Value of Cloud Migration

• IT Strategy at Kingspan

• Sustainable Cloud

Enterprise Computing Strategy

``

57 % of Revenue 26 % of Revenue

9 % of Revenue

Insulated Panels

Environmental

Insulation

Access Floors8 % of Revenue

• Kingspan is recognized as the global leader in • Sustainable Building Solutions ;

• Agile Management Model, with rapid decision-making• Entrepreneurial Culture, acting on opportunities as they arise• Partnership approach, delivering ‘ Think Global, Act Local’ • Product Leadership built via Innovation & partnership• Integrated Supply Chain maximises Operational performance

• Kingspan’s Business Model spans 4 Product Sets ;

Source: 2013 Interim results

Business Success

96% of Sales Revenue from outside Ireland

6

• Kingspan’s capabilities are demonstrated in key successes to date;• €1.6 Billion Revenue for 2012

• 82 Offices, 48 Factories, 5,800 employees across 6 continents

• Fund-raising consistently meets the targets set

• Kingspan brings value to the Sustainability Sector; Proven track record in delivering product solutions

Acknowledged thought leader on Sustainability

Leading the drive towards reducing energy bills

• Energy Efficiency is what we do at Kingspan;• Product Leadership to maintain market leadership position

• Customer Intimacy to ensure partners are aligned for success

• Operational Excellence to deliver quality products on schedule

Business Capabilities

Kingspan is growing across the globe

Nexus of Forces

People want Ease of Personal Computing at Work

The independent evolution of 4 powerful forces has converged.

Leading to a seamless consumerisation with instant access to information via smart devices.

People now expect this in their workplace.

This creates a Nexus of Forcesthat drives business at an increasingly pace.

Disruptive Vendors driving this –Google, Apple, Amazon, Facebook

Although these 4 forces are disruptive on their own, together they are revolutionising business and society, disrupting old business models and creating new leaders.

Peter Sondergaard, SVP Gartner Research

Every Business needs a ‘ Nexus Forces ‘ Plan

Buyers have changedWhat once worked, will not work anymore

Corporate Executive Board 2012Connect & Sell 2012IBM Buyers Preference Study 2011

97%75% 57%

Of the time

cold calls

do not work

B2B purchaser

influenced

by social media

Buying decisions

are made before sales

rep involvement

Social Media is impacting Business Decision Makers

A Planned Social Selling Strategy

How

How do I get

a warm intro?

+230 MillionLinkedIn members

+2 Billionmember updates per week

Billionsconnections

WhatWhat to

talk about?

WhoWho are the

Right People?

Most of

Our customers

& prospects

Content Marketing

&

Thought Leadership

Implementation

of planned approach

A move away from Serendipity…. To Data Science

Business Need

A company operating exclusively in the Sustainable Building Sector

A Product Manufacturing Company, 48 Factories in 4 continents

A company operating Globally, 6,000 colleagues in 80 countries

A company growing fast, € 1.6 Billion turnover in 2012

Secure, Accessible IT Services are key to the success of Kingspan

Kingspan is an ideal Candidate Organisation for Public Cloud

CategoryCapability

Building BlockDescription

Strategy &Planning

Alignment Definition and execution of Cloud strategy to influence and align to business objectives

Objectives Definition and agreement of Cloud objectives

Process Management

Operations

& Life CycleSourcing, operation and termination of Cloud Services

ICT-Enabled

Business Processes

Provision of Cloud Services that enable improved business outcomes across the extended

enterprise.

Performance &

Reporting

Reporting and demonstration of progress against Cloud specific and Cloud enabled

objectives, across the extended enterprise.

People &Culture

Language

Definition, communication and use of common sustainability language and vocabulary across

ICT and other business units including the extended enterprise, to leverage a common

understanding

Adoption Embedding of Cloud principles across ICT and the extended enterprise.

Evangelising of Cloud successes and contributing to industry best practice

Governance

External

Compliance

Enablement and demonstration of compliance with both ICT and Business legislation and

regulation . Clear accountability for roles and decision making across ICT and the enterprise

Corporate PoliciesEstablishment of common and consistent policies to support Cloud strategy to meet current

and future objectives, as part of periodic review.

Cloud Assessment: Building Blocks

IVI Cloud Assessment has Clear Building Blocks

Implementation Plan

Phase 1: June – December 2013• Baseline Assessment• Establish Cloud Governance & Program office • Build awareness of principles, policies and practices• Introduce objectives, metrics and Checklist

• Define Principles for Cloud Readiness• Pilot & Benchmark Public Cloud eMail Service• Formal certification to ISO27001• Define 3 Year TCO Roadmap for Hybrid Cloud Strategy

Phase 2: January 2014 – June 2014• Implement policies and metrics • Develop training & communication plans • Pilot & Benchmark Public Cloud Application Service • Define Cost-Benefit Model of Hybrid Cloud Strategy

Phase 3: July 2014 – December 2014• Formalise and enhance audits, benchmarks, metrics and scorecards• Formalise and enhance training & communications • Implement Hybrid Cloud Strategy : begin with email• Retake the test

Determine the cost-benefits of Hybrid Cloud Strategy

Enterprise Computing Principles

• Kingspan’s Enterprise Computing is designed and implemented in line with a set of 8 Design Principles chosen to deliver Business Value.

• 8 Design Principles ;

I. Build technology solutions to meet our business reality – agile, global, growth, 24 x 7, innovative

II. Build for Service & Security Excellence - ensure decisions made in the short-term are future-proof

III. Partner with Innovative Technology Companies - follow the Enterprise Architecture Roadmap to minimise the costs of technology integration, upgrading, training, issue resolution, change

IV. Standardised and Integrated Enterprise Computing Assets and Processes - Aggregate services to minimise cost, to protect investment, to leverage best practices, integrated business analysis

V. Configuration not Customisation – Follow Technology Roadmap, avoid bespoke code, avoid single points of failure to minimise waste, minimise risk

VI. Leading Edge not Bleeding Edge – implement new technology when it is proven elsewhere first, to minimise disruption.

VII. Automate & Outsource repetitive activities – manage via Master Service Agreements to control costs and to maximise service performance

VIII.Cloud First for all decisions on hosting

8 Design Principles are consistently followed to enable “ Cloud Readiness “

Secure Private Cloud Approach

Step Objective Completion

Step 1 : Agree Strategy with Business Leaders June 2013

Step 2 : Select overall IT Management Framework June 2013

Step 3 : Conduct baseline measurement of IT Capabilities September 2013

Step 4 : Define Enterprise Architecture Roadmap September 2013

Step 5 : Identify Reference Architecture for Business Context September 2013

Step 6 : Map Business Process December 2013

Step 7 : Identify Enterprise Priorities December 2013

Step 8 : Define Enterprise Architecture Vision December 2013

Step 9 : Translate Enterprise Architecture to Applications Architecture March 2014

Step 10 : Map Business Applications Architecture March 2014

Step 11 : Build Core IT Infrastructure June 2014

Step 12 : Proactive Management of Enterprise Architecture June 2014

Step 13 : Align Resources June 2014

Step 14 : Control with Good Governance July 2014

Step 15 : External Benchmark July 2014

Step 16 : Capture Business Value July 2014

This Secure Private Cloud Approach delivered via a 16 Step Process

Secure Private Cloud: 16 Step Approach over 2 years

Secure Private Cloud Aim:• Build Sustainable, Secure, Scalable IT Services at Kingspan

• Deliver Services via Single User Signon for all users, all IT services

• Enable Smartphone delivery

DEFINE

MEASURE

ANALYSE

IMPROVE

CONTROL

Financial

Impact/value

Portfolio mgmt

Money/

value

Architecture

Eng/dev/delivery

Project management

IT

products

Security/compliance

Service/support/opsIT

services

Org / RolesPeople

Asset management

Capacity planningIT assets

Business alignment

Governance

Strategic planningIT

strategy

ProcurementSourcing

Limited representation Dominant characteristic

Source: Carnegie Mellon Software Engineering Institute; International O rganization for Standardization; BS15000 Associates Group; UK OGC; Microsoft; ASL Foundation; ISACA; BCG

Major IT functions

Kingspan selected IT-CMF because it “ticks all the boxes “ for the CIO

Step 2 : Select overall IT Management Framework

01 Sept 2013

Oct 2014

Kingspan Adoption of the IT-CMF:• Initial Assessment : identified weakness, opportunities across 4 Strategies

• Improvement plans : targeted across all 4 strategies

Source: Martin Curley, Intel / National University of Ireland

IT-CMF is an Integrated approach to drive IT Value

Maturity Level The 4 IT Improvement Strategies

vs StrategyManaging IT for

Business Value

Managing the

IT Budget

Managing the

IT Capability

Managing IT

like a Business

Level 5: OptimisingOptimising

Value

Sustainable

Economic Model

Core

Competence

Value

Centre

Level 4: Advanced Portfolio & Options

Management

Expanded

Funding Options

Business

Partner

Investment

Centre

Level 3: Intermediate Return On Investment

& Business Case

Improve

Productivity

Technology

Expert

Service

Centre

Level 2: Basic Total Cost

of Ownership

Predictable

Performance

Technology

Supplier

Cost

Centre

Level 1: Initial Beginning Beginning Beginning Beginning

Oct 2014

Target

• "IVI's vision is to consistently realise IT value from IT investment

• ... Through an industry validated ICT best practice Framework.

• The IT Capability Maturity Framework, IT-CMF”

Step 3 : Baseline measurement of IT Capabilities

Manufacturing

Order Fulfilment Logistics Customer Service Shared Services

(Sales) ( Delivey ) (Support) (Corporate)

Manufacturing asset

management

Order Management

Customer Lifecycle

Management

Supply Chain

Management

Enterprise Operation ManagementRevenue Cycle

Management*

IT portfolio and asset

management

ProcessesRaw Materials

ManagementLogistics Management Finance / Administration

Human Resources

Management

Legal / Regulatory affair

Management

Enterprise Risk

Management

Strategy Planning

Enterprise

System

Fuel Management

Optimisation Network Design Supply Chain

Asset Performance eCommerce Portal

Customer Relationship

Social Media

Step 6 : Enterprise Process

8 Enterprise Systems to meet Enterprise Process needs

Product Specification

Kingspan.com

Enterprise Resource

Planning

Business AnalyticsBusiness AnalyticsBusiness AnalyticsBusiness AnalyticsBusiness Analytics

Enterprise Resource

Planning

Enterprise Resource

Planning

Enterprise Resource

Planning

Enterprise Resource

Planning

8 Enterprise Systems to meet Enterprise Priorities

Step 7: Enterprise Priorities v Enterprise Systems

Kingspan Priorities

vs

Enterprise Systems

Social Media

Management

Kingspan

.com

Management

eCommerce

Portal

Management

Customer

Relationship

Management

Product

Specification

Management

Asset

Performance

Management

Enterprise

Resource

Management

1. Growth to € 3 Billion Revenue by 2016. X X X X

2. Acquisition of New Businesses. X X X

3. Innovation for better products. X X X

4. Reduce Business Risk. X X

5. Enhance Business Agility. X X X X X

6. Improve Operational Effectiveness. X X X X X X X

7. Integrate Supply Chain. X X X X X

8. Leverage Expertise & Experience. X X X X X X XUnderlying Standard IT technology;

Management Information always available.

Business Analytics System

Service Excellence. Standard Smartphone / Tablet / PC / Print / WiFi Access / Telephony / Video / Web Conf.

Social

Media

Kingspan.com

Business

Analytics

System

Step 8: Enterprise Architecture Vision

eCommerce

Portal

Customer Relationship

Management

System

Product

Specification System

Asset Performance

System

Enterprise Resource Planning

System

Deliver Business Value via Enterprise Systems Integrated on the Cloud

Product

Leadership

A Single

Version of the

Truth

ValueBusiness Need Enterprise Systems

Faster

Decision-

Making

Increased

Personal &

Team

Productivity

Customer

Intimacy

Efficient Work

Flow

Operational

Excellence

Better

Customer

Experience

Fast

Replication &

Collaboration

Enterprise

Resource

Planning

System

Asset

Management

System

Factory

SCADA

Systems

Product

Specification

System

Predictive

Performance

System

Customer

Relationship

System

Sales

Orders

Usage

Decision

Material

Receipts

Procedures

Business

Intelligence

System

Asset

Performance

Operational

Performance

Document

Management

System

Step 9 : Enterprise Systems Map

Maintenance

Decisions

Maintenance

ConditionsAsset

Specifications

Reports

Business

Forecast

Enterprise Systems on Cloud

Customer

Order

Reference

Documents

Billing

Business

Plan

Social Media

Management

Asset

Performance

Management

Kingspan.com

eCommerce

Portal

Management

Customer

Contact

Customer

Contact

Regulations

and

Standards

Customer

Need

Mfg

Assets

Sustainable Cloud ?

Cloud Computing is the delivery of Computing as a service rather than a

product, whereby shared resources,

software, and information are provided

to computers and other devices as a

utility over the internet

Sustainability is the capacity to endure. For humans, sustainability is the long-term

maintenance of well being, which has

environmental, economic, and social

dimensions, and encompasses the concept

of stewardship, the responsible

management of resource use.

Source:

Wikipedia

2 Mega-Trends Collide

http://en.wikipedia.org/wiki/File:Cloud_computing.svg

http://en.wikipedia.org/wiki/File:Cloud_computing.svg

Features

1. Sustainable Cloud Service1. Availability

2. Security

3. Confidentiality

2. Sustainable Energy Supply1. Secure Grid connection

2. Fixed Price contract

3. Direct Energy Asset ownership

3. Sustainable Energy Distribution1. UPS is a storage medium

2. DC powered Servers

3. DC in, DC out

4. Sustainable Energy Use1. Energy Efficient Management

2. Virtualisation

3. Certified Devices

5. Sustainable Building1. Low carbon Design

2. Low carbon Materials

3. Certified

All Elements of Sustainable Cloud already exist....

Sustainable Cloud Computingis the

delivery of computing as a service

over the internet

in a manner which

utilises renewable energy sources,

energy efficient technology and low-

carbon footprint hosting facilities

to deliver

Highly Available, Secure and

Confidential Services.

Sustainable Cloud Framework

Kingspan is the world leader in

Sustainable Building Products

A Nexus of Disruptive IT Forces is changing

how we do business

Kingspan is ideally placed to benefit from this

change

Conclusion