kpmg and microsoft event presentation for cloud usage companies are using public, private and hybrid...

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KPMG & Microsoft Event

23 August 2016, Hotel Renaissance Zürich


Cloud Transformation &Compliance (CTC)Strategy Offering

Prafull Sharma

Partner, Consulting

23 August 2016

Agenda

1. Introduction to Cloud

2. KPMG’s approach – Cloud Transformation & Compliance Services

4 Steps towards developing a comprehensive Cloud Strategy


1. Introductionto Cloud

The myth of Cloud

Cloud Principles

Service Models

Deployment Models

Benefits

Challenges

Cloud Use Cases

Cloud Readiness

Cloud Economics

Building the Business Case

Facts.

1. Your Firm’s IT Assets are in the cloud

2. You don’t know that you are already in the cloud

Cloud Principles

Strategic

Enable Business

Accelerate Capability

Align Cost/Benefit

Mitigate Risk

Manage Accountability

Ensure Trust

Cloud Principles are general rules and guidelines, intended to be enduring and seldom amended, that

inform and support the way in which an organization sets about fulfilling its cloud vision/mission

Operational

Design Services

Publish Services

Orchestrate Services

Problem Ownership

Change Management

SLA Enforcement

Cost Allocation

Technical

Elastic

Resilient

Available

Secure

Automated

Monitored

Metered

Cloud Deployment Models

The consumer and provider of

cloud services exist within

the same enterprise

Public cloud

The consumer and provider

of cloud services exist in

separate enterprises

Hybrid cloud

• Combines multiple elements of

public and private cloud – a blend

of providers and consumers

• May contain multiple service

layers

Expansion of the organizations involved in consumption and delivery

Private

cloud

Cloud Deployment Models

Private Cloud

Public Cloud

Hybrid / Mix Of

Private & Public

Cloud

• Have custom written applications that were developed internally – key business programs don't want in a

public cloud

• Regulations for some industries prohibit the use of public clouds

• Gives more control and alleviates some security concerns with public clouds

• Like the cost efficiencies gained utilizing public clouds for applications and other non-critical systems;

don't have to own infrastructure or have IT skills in-house to manage

• Private clouds allow for greater control and security over systems and data

• Cost effective – often used for ancillary or non-mission critical applications (don't own infrastructure or

need resources to manage)

• Easier way to 'dip toe in water' with cloud; use it for trials and application development / test environment

• In some instances a desired application is only offered by a provider through SaaS

Rationale For Cloud Usage

Companies are using public, private and hybrid cloud solutions

Cloud Service Models

Servers

Storage

Network

O/S

Middleware

Virtualization

Firewall

Data

Applications

Servers

Storage

Network

O/S

Middleware

Virtualization

Firewall

Data

Applications

Servers

Storage

Network

O/S

Middleware

Virtualization

Firewall

Data

Applications

Servers

Storage

Network

O/S

Middleware

Virtualization

Firewall

Data

Applications

Servers

Storage

Network

O/S

Middleware

Virtualization

Firewall

Data

Applications

Virtual

MachinesCloud Services

Web Sites

Mobile Services

Traditional

Datacenter

Applications

Platform as a ServiceInfrastructure as a

Service

Software as a

Service

Managed by client

Managed by cloud

provider

IaaS PaaS SaaS

Benefits of Cloud

Cloud Benefit Description

1 ON DEMAND SELF SERVICE

2 INTERNET ACCESSIBILITY

3 REAL TIME PROVISIONING

4 ELASTIC CAPACITY

The ability to self provision applications and servers

5

6

7

CONSUMPTION BASED BILLING

LEVERAGE EXTERNAL CAPABILITIES

MAINTAINING CURRENCY

The ability to access applications and/or

infrastructure through the Internet

The ability to provision servers in real time

The ability to increase/decrease processing capacity

as needed

Only get charged for actual use

No need to spend internal time or resources on non-

custom applications

Easier to upgrade applications to current version

4 Steps towardsdeveloping a comprehensive Cloud Strategy

What is CTC?

1. Architecture

2. Application Integration

3. Business Process Transformation &

Automation

4. Information Management

II. Compliance & Security

I. Strategy

Offerings

DETAILED

DESIGNBUILD IMPLEMENT IMPROVESTRATEGY

PORTFOLIO, PROGRAM AND PROJECT

MANAGEMENT LEADERSHIP AND CHANGE

VALUE DELIVERY

Cloud Transformation & Compliance (CTC) is our approach to assisting the client

through the cloud transformation journey

Journey

1. Vision & Cloud Business Case

2. Suitability Assessment & Conceptual Architecture

3. Target Operating Model Design (TOM)

4. Impact Assessment & Transformation Roadmap

1. Technology Business Management

2. Workload Migration Factory and Tech Refresh

3. IT Management Enablement & Automation

4. Service Catalog & Provisioning

5. Service Configuration, Integration & Monitoring

6. Security & Resiliency Management

1. Cloud Governance, Risk and Compliance

Assessment

2. Cloud Governance, Controls and Compliance

Design

HIGH-LEVEL

DESIGN

Focus

Value

Risk

Transformation

III. Architecture & Integration

IV. Cloud Management

Focus for today’s

discussion

11

“Strategy” Approach

Four offerings for developing a comprehensive cloud strategy

HIGH-LEVEL

DESIGNSTRATEGY

1.Vision & Cloud Business Case

2. Suitability Assessment & Conceptual Architecture

3. Target Operating Model (TOM)

Scenario

PrototypeClient

Research

12

4. Impact Assessment &Transformation

Roadmap



HIGH-LEVEL

DESIGNSTRATEGY

1.Vision & Cloud Business Case

Scenario

Prototype

ClientResearch

13

Short & LongTerm Visions • Cloud Economics •

Migration Investment • ROI

What are the strategic objectives of the cloud

transformation?Will the transformation be

economically feasible?



HIGH-LEVEL

DESIGNSTRATEGY

2. Suitability Assessment & Conceptual

Architecture

Scenario

PrototypeClient

Research

14

Workloads Assessment • Block Architecture • Biz

Process Impact • Use Cases

For the industry vertical, which apps and services

(operational processes, e.g. order to pay) can

we move and will drive greatest benefit?



HIGH-LEVEL

DESIGNSTRATEGY

3. Target Operating Model (TOM

Scenario

Prototype

Client

Research

15

Delivery Model • Governance •

Organization • Information

What is the baseline TOM for Full, Hybrid

and SaaS deployment?



HIGH-LEVEL

DESIGNSTRATEGY

Scenario

Prototype

ClientResearch

16

4. Impact Assessment &

Transformation Roadmap

IT Maturity • Impact Assessment •

Features Roadmap

How does cloud impact the existing IT

processes and infrastructure?

Understand leadership’s

vision and evaluate the

economic return of

cloud transformation

Short & Long Term

Visions Cloud Economics

Migration Investment

ROI & Business

Justification

•Business Case

•Financial Model

Assess workloads and

processes in scope and

develop architecture

Workloads Assessment

Block Architecture

Biz Process Impact

Use Cases

•Conceptual

Architecture

•Applications

Migration Priority

Design Target

Operating Model for

the new environment

Delivery Model

Governance

Organization

Information

•High level TOM

•TOM transformation

plan

Assess impact of

cloud environment on

existing IT processes,

and establish cloud

roadmap

IT Maturity People,

process &

technology implications

Action plan / next steps

•Cloud features

roadmap

•Cloud adoption &

change mgmt.

strategy

Cloud Strategy:Approach

Summary

Objective

1. Vision & Cloud

Business Case

2. Suitability Assessment &

Conceptual Architecture

3. Target Operating Model

(TOM)

4. Impact Assessment &

Transformation

Roadmap

KPMG Business Case

& Value Gateways

KPMG Cloud

Financial Model

Templates

,

Microsoft Applications

Assessment

Microsoft

Architecture

Scenarios

KPMG IT

Operating Model

Framework

KPMG IT

Maturity Model

Microsoft

Comprehensive

Enablement Feathers

Focus Areas Deliverables Enablers

6


Thank you!

Prafull Sharma

Partner

P.O. Box

Badenerstrasse 172

8036 Zürich

T: +41 58 249 77 91

M: +41 79 872 48 06

E: [email protected]

Risk and Compliance Management in Cloud Onboarding

Dr. Thomas BolligerPartner, Consulting23 August 2016

24

Document Classification: KPMG Confidential

© 2016 KPMG AG is a subsidiary of KPMG Holding AG, which is a member of the KPMG network of independent firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss legal entity. All rights reserved.

Agenda

Topic

Determine Cloud Services

Data Governance

Data Classification

Data Identification

Data Allocation

Measures & Control Frameworks

Summary

25



Strategy - Determine Cloud Services

Determine Cloud

Services

1

Office & Collaboration

Big Data Analytics

CRM

Finance

IoT

Campaign Management

(…)

26



Un-coordinated Actions

Cloud Initiative A Cloud Initiative B

Data Governance: Problem

Existing Data Compliance

Regulations

CostsWorkloadUser Acceptance

External Supporters

LegalIT Risk

MgmtAudit IT Security

Env. Health

& SafetyCorp. Gov.

Operation

Control

Business

Risk Mgmt

New Regulations

27



Data Governance: Solution

CxO

Business DataChampions

Data Recipients, Data Stewards and Data Owners

Data

Policy

Roles &

Responsibilities

Build ad hoc Teams

Establish Data

Governance

2

Staff

Functions

28



Data Classification (1): Locations and Cross Border Connections

Identify relevant data locations and cross border data connections3

29



Data Classification (2): Identify Cloud Provider Locations

Identify potential Cloud Provider Data Locations4

Provider B

Provider A

Provider C

30



Data Classification (3): Identify Cloud Locations

Determine Cloud Provider Locations and data flows5

Provider A

31



Data Classification (4): Identify Data Categories & applicable Laws

7

Prepare Data

Categories

Private Data

Private Health Data

Tax Data

Financial Data

Export Controlled Data

(…) Data

8

Identify local data

compliance rules

SUI:

DSG

FINMA RS 08/7

Banking Act

GER:

BDSG

Bafin Datenschutzerklärung

(…)

USA:

(…)

What Data

Categories shall go

to the cloud?

6

x

x

x

32



Data Identification

9

Identify Data per

Location and

Category

Intranet

Data Crawler

Private Data

Tax Data

Financial Data

There is no

100%

solution!

33



Data Allocation

Cloud Data Decision Framework

Non transferrable Data

Transferrable under certain conditions• Encription• Controls• Agreements• Risk acceptance• (…)

Data transferable 30%

20%

50%

Initial Allocation

(% of Data)

10

Keep local

or in private

cloud

Move to cloud70%

30%

Final Allocation

(% of Data)

Apply Measures& Adapt Target Architecture

34



Measures & Control Framework

Clean-up and data

classification process

Set-up controls framework,

technical measures and

target operating model

Cloud Operation Process

CAUTION!

The moment data is categorized

the new TOM must be in place to

assure that all data is allocated

and managed concerning to

compliance rules

11

Prepare Cloud Onboarding

35



Summary

1. Identify Cloud Services

2. Build Data Governance Organization

3. Determine Locations and Cross Border Data connections

4. Determine location of Cloud Providers

5. Identify relevant data categories and applicable laws

6. Identify data in the field

7. Define measures, build TOM and allocate data

8. Make sure TOM is ready the day data is classified and moved to the

cloud!

KPMG Credentials

46



Our Assets to SupportWe leverage our Delivery Backbone for global projects

Datenschutz-recht

M. Bossardt co-authored the book on Data Protection

Law.

Data Protection Compliance

Data Protection compliance went

from ‘nice to have’ to ‘must have’

We have the tools and methodologies

We are thought leader in Regulatory IT Compliance

Benefit from our established methodology and long term experience in staff background screening.

By leveraging subject matter experts, we can mobilise quickly to provide a solution that’s right for you.

Benefit from a holistic approach from professionals globally.

We leverage world class project delivery tools to deliver on the highest standards.

We have a long-standing relationship with Partners Group

Statutory auditor of most of PG’s

corporate entities

<2005-2016

KPMG is Partners Group statuary

auditor for most of PG’s entities and group auditor for

PG overall.

Regulatory auditor of the Swiss FINMA

licensed entity

<2006-2016

According to FINMA

regulations, KPMG performs the regulatory audits for the Swiss entities.

Global provision of Due Diligence

services

2011-2016

KPMG performed Due Diligence services for

Partners Group’s target investments

of their funds / investment structures.

Cyber Maturity Assessment

Best practices Data Protection certification

frameworks

Cyber Security

"We believe that cyber security

should be about what you can do –

not what you can’t."

IT Compliance

“Do efficient management of

information and IT and compliance with relevant regulations

go together?”

IT compliance framework

KPMG Data Protection

Governance Framework

http://www.kpmg.com/CH/de/Library/Articles-Publications/Seiten/privacy-advisory-factsheet.aspx

http://www.kpmg.com/ch/en/topics/cyber-security/pages/default.aspx

47



Our credentials!KPMG has successfully helped clients worldwide in various industries in becoming data

protection compliant and maintaining their in control status. Below only a select few of our

successes are shown.

KPMG advised the worldwide subsidiaries

of a private bank on compliance with privacy

related regulations.

2013 - 2014

Global Bank

KPMG drives the execution of the client

data confidentiality program and other

privacy and data protection initiatives in

the bank.

2012 - 2016

Major International

Swiss BankKPMG supported an

international pharmaceutical

company in the design and implementation of

their global data privacy framework and

governance model.

2015

Pharmaceutical company

KPMG advised and supported on improving

the governance framework for cross

border date transfers as a result of changes in

the regulatory landscape.2015 - 2016

Pharmaceutical company

48



Thank you!

Dr. Thomas Bolliger

Partner

Badenerstrasse 172

P.O. Box1872

CH-8026 Zurich

T: +41 58 249 28 13

M: +41 79 354 52 67

E: [email protected]

The “real”

Real Story

About Me & the Team

https://es.linkedin.com/in/fcamposf

Fernando

Campos

180+ engagements last year

Dig

ital A

dvis

ory

Serv

ices

Business Outcomes focused

Avid reader about technology, although not an expert

Approx. 100 Digital Advisors

in Western Europe (500WW)

Digital Transformation Lead

Microsoft Western Europe

ES IT

NO SE

AT BE CH DK

IE

NL PT

FI

Inceptor and key member

behind Real Madrid deal

No idea about football and about the football industry !!!!

https://ch.linkedin.com/in/berndschneider



$660 Million 2013-2014 season

Tickets

Members

Friendlies & Int.

13%

TV …

Marketing32%

450 Million FansLess than 3% in Spain

Sponsorships Ticketing and

Annual Passes

TV Rights

Management

Players Market

(buy/sell)

Other Marketing &

Sales

Sports Franchise Brand Value

Digital Advisory Workshops

$660 Million

$3.6 B

Sponsors Ticketing TV Rights Players

market

Other

Sales &

Marketing

• Untapped potential to

develop new digital

assets, suitable for

further sponsoring

opportunities

• Lack of reporting & BI

tools to optimize

sponsor´s ROI and

increase their

satisfaction and

engagement

• Current value-chain

intermediation (e.g. TV

broadcasters or cable

operators)

• Lack of mechanisms to

viably develop and

commercialize new

unexploited audiovisual

assets

• Lack of models to

predict the future

players sportive

performance

• Lack of models with

other inputs affecting

the players market

value (e.g. Social or

Sentiment Tracking)

• Lack of tools to retrieve

the 360º informational

data from fans to

enhance engagement

and sales

• Inefficiencies in on

premise infrastructures,

when the scope is

managing such a

substantial amount of

data

• Low-sophistication in

predicting ticketing

demand to optimize

the pricing

• Incapability to

monetize ticketing,

when demand exceeds

maximum physical

supply (seats)

Addressable Challenges Identified

Business Transformation Journey

Your Business

Roadmap of Innovation

Business

Transformation

Envisioning “The Art of the Possible”

TV Rights

• Current value-chain

intermediation (e.g. TV

broadcasters or cable

operators)

• Lack of mechanisms to

viably develop and

commercialize new

unexploited audiovisual

assets

Video Platform Benefits for Real Madrid

DIGITAL PLATFORM

OTT

M a t c h D a y

Match Time

EXTENTED OTT TS

SECOND SCREEN

Rest of Week Rest of Week

Document Owner: Fernando CamposMarch, 2014

Envisioning “The Art of the Possible”

Ticketing

• Low-sophistication in

predicting ticketing

demand to optimize

the pricing

• Incapability to

monetize ticketing,

when demand exceeds

maximum physical

supply (seats)

Painting the Vision

Modelling Business Scenarios

THE EXTENDED-OTT PLATFORM –IN COMBINATION WITH THE DIGITAL PLATFORM AND CONSUMER APPS THAT

ENABLE “SECONDSCREEN”

AND OTHER CONSUMER SCENARIOS-- ALLOWS SPORTS FRANCHISES TO HOLD A

DIRECT RELATIONSHIP WITH THEIR FANS, LOWERING THE EXISTING INTERMEDIATION IN THE SPORTS

AUDIOVISUAL INDUSTRY AND CREATING A LEAPFROG IN THE MONETIZATION OF THEIR AUDIOVISUAL ASSETS,

ACCORDING TO THE FOLLOWING FORMULA:

Where:

• AM = Additional Monetization

• ACV = Audiovisual Contents Value (as perceived by the end-users and for which they are willing to pay a certain amount of money)

• TSA = Total Segmented Audience (Total Number of profiled users in the Digital Platform)

• IL= Intermediation Level coefficient between the audiovisual assets and the end-users, with IL being equal or higher than 1 (IL=1 when the

sports franchises sells and monetize directly, and IL>1 when there are 1 or more players intermediating in the audiovisual value-chain)

Digital Platform & OTT Disintermediation Capabilities

Document Owner: Fernando Campos

March, 2014

Business Modeling Process

Olympic Rings of Digital Transformation

Transformation goes beyond customers, it holistically changes the heart of a company

CUSTOMER

ENGAGEMENT

Attributes, recognition

Identity

OPERATIONS

Value chain, suppliers

NEW BUSINESS

MODELS

EMPLOYEES

Organization

BRAND

New Products and

Services

Portfolio of Intangible

Assets

Olympic Rings of the Digital Transformation

Digital Transformation Journey

STAGES

Our value

proposition

What we

ask

Outcomes

Plan

Customer

Outcome(s)

Selection

Envisioning

Access to business and IT

leadership

Business priority alignment

Current technology capability

footprint

Business leader participation in the

workshop

Create and commit to a prioritized

plan for digital development

Business leader sponsorship

Commitment of time to provide

input towards development of final

business case analysis

Technical resources to collaborate

on POC and Solution Architecture

Formally commit your investment

by executing a project contract

Sponsor adoption and change

management activities

Business Validation Technical Validation Contract AgreementImplementation &

Value Realization

Empower your

employees

Engage your

customers

Optimize your

operations

Transform your

products

CUSTOMER

EXPERIENCE

TECHNICAL

FEASIBILITY

BUSINESS

VIABILITY

Desired, Feasible & Business Value

Identifying the True Sweet Spots of Digital Transformation

About Me & the Team


Bernd Schneider

750+ engagements

Dig

ital A

dvis

ory

Serv

ices

Industry focused

Ou

tco

me d

riven

Cu

sto

mer

Exp

eri

en

ces

14 Digital Advisors

in CH (500WW)

Digital Advisor

DT Manufacturing Lead

Microsoft Switzerland




AnalyticsData Cloud

AnalyticsData Cloud

Digital Transformation

Engage your customers

Empower your employees

Optimize your operations

Transform your products

Rolls-Royce Delivers Advanced Operational Intelligence to Airlines

Challenge

• Improve aircraft

efficiency.

• Increase aircraft

availability.

• Reduce engine

maintenance costs for

airlines.

Strategy

• Aggregated data from

engines remotely with

Azure IoT Suite.

• Utilized Cortana

Intelligence Suite to

assess health and

detect operational

anomalies.

Results

• Retain asset value throughout an

engine’s life cycle.

• Reduce flight disruptions.

• Potential cost savings of millions

of dollars per year.

“The Microsoft Azure platform makes it a lot easier for us to deliver on our vision without

getting stuck on the individual IT components. We can focus on our end solution rather

than on managing the infrastructure.”

— Richard Beasley, Senior Enterprise Architect, Rolls-Royce

Engage your customersEngage your customers

• Harness data for a complete customer view

• Draw actionable insights

• Deliver personalized, differentiated experiences



• Protect your organization, data and people

• Create a productive workplace to embrace diverse workstyles, anywhere

• Provide insights to drive faster, better decisions



• Accelerate the responsiveness of your business

• Improve service levels and reduce costs

• Anticipate the future with intelligent processes



• Utilize data to shift from hindsight to foresight

• Disrupt with new business models, products & services

• Differentiate & capture new revenue opportunities

Build a digital innovation lab.

Bring your Book of Dreams to life.

Your Digital Dream Factory

Recruit and form your

digital transformation unit.

Your Digital Dream Team

Ideate, and document your

digital transformation journey.

Your Book of Dreams

Your Digital Transformation Journey – Our Approach

Digital Transformation Journey – Service Mapping

Design Design to realize the

value of the vision

DeliverDeliver, adopt and realize

the vision and value

DreamImagine and envision the

art of the possible

Industry

Trends &

Insights

Prioritized

Scenarios

Roadmap

Digital

Vision

Journey

Map

Capability

Model

Digital

Business Design

Solution

Storyboards

Technical

Storyboards

Business Model

Evaluation* (DVE)

Value

Management

Adoption

& Change

Mgmt

Technical

Architecture Program

Plan Governance,

Risk and

Compliance Plan

Value Realized

ReportingDigital

Transformation

Unit Business

Case* (DVE)

Digital

Transformation

Plan

*Digital Value Engineering (DVE)

Digital Envisioning Digital Transformation Planning Value Management & Reporting

Industry

Trends &

Insights









YOU + MICROSOFT

• One platform fueling

experiences across devices

• Advanced analytics to

understand customers,

predict behavior, and

personalize engagement

• New, natural ways of

interacting with customers

across computing channels

or “canvases”

• Innovations across hardware,

natural user interaction and

intelligent agents

• Protect your organization,

data and people

• Create a productive

workplace to embrace

diverse workstyles

• Provide insights to drive

faster, better decisions

• Enable your people to get

things done anywhere

• Real-time operations enabled

by connecting field equipment

and other business assets

• Adaptability to events

with integrated CRM and

operations workflows

• Continuous learning and

predictive analytics for

intelligent service

improvements

• Improve operations and

drive down costs by moving

processes from analog

to digital

• Preconfigured solutions for core

IoT scenarios that help uncover

new business models and

revenue streams

• Cognitive understanding that

makes apps “smarter,” such as

facial and vision recognition,

speech and language

understanding, learning, and

emotional perception

• Intelligent agents to interact

wherever users are

communicating

• Devices that allow you to visualize

and interact with your company

and customer data in new ways

TRUSTWORTHY

FLEXIBLE INTEGRATED

Thank you

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