Digital Systems Integration (DSI)
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This document discusses the growth of emerging technologies like software as a service (SaaS), social media, business intelligence and analytics. It notes that starting in 2014, enterprise software markets will undergo major disruptions and growth opportunities. The document also discusses how companies want to adopt emerging technologies like cloud services and mobile apps. However, transitioning to these technologies depends on reducing investments in traditional systems of record. The document advocates that organizations need to be "reborn digital" by overhauling strategies with digital technologies like mobility, big data and the internet of things. It presents HCL's approach to digital systems integration as a journey to help traditional organizations transform into digital enterprises.
Digital Systems Integration (DSI)
- 1. Copyright © 2012 HCL Technologies Limited | www.hcltech.com 1
- 2. Copyright © 2012 HCL Technologies Limited | www.hcltech.com We all observe the explosive growth of emerging technologies 2 12.3 14.5 22.1 2011 2012 2015 Worldwide SaaS Revenues 11.8 16.9 34 2011 2012 2015 Worldwide Social Media Revenues 12.9 13.8 17.1 2011 2012 2015 Worldwide BI & Analytics Revenues Source: Gartner, Jan 2013 - The Nexus of Forces Changes Everything: Gartner Symposium 2012 Keynote 0 0.5 1 1.5 2 2.5 3 2011 2016 Worldwide Growth of Mobile Devices by Device Type Tablets Ultramobiles Notebook PCs Smartphones Desktop PCs “Starting in 2014, the enterprise software markets will undergo their greatest level of disruptions, growth and new opportunities since the year 2000” - Gartner
- 3. Copyright © 2012 HCL Technologies Limited | www.hcltech.com3 Companies desire for Emerging Technology to dominate their landscape 79% 58% 45% 7% 12% 9% 5% 12% 12% 1% 5% 14% 3% 12% 16% 0 3% 5%5% 15% 24% 2013 2016 2018 Back-end application simplification Services orchestration Systems of engagement cloud-based services Systems of engagement analytics Smartphone and tablet management Smart product, tablet and phone client app dev Systems integration Traditional services Emerging services “SAP states that more than 80% of new license sales in recent quarters come from products that did not exist two years ago. Most of these newer products focus on disruptive technologies, such as cloud, social, mobile, and analytics” – Forrester, 2014
- 4. Copyright © 2012 HCL Technologies Limited | www.hcltech.com But the transition to Emerging Technology is dependent on Systems of Records expenditure halving 45% 79% 41% 18% 14% 3% 2016 2011 Systems of record investments Systems of engagement spending System of Innovation Source: Forrester, Forrsights Services Survey, 2013 “There is cause for worry about underinvestment in systems of engagement… these systems need several key technologies, with a critical focus on back-office integration. The survey reveals that integration with back-office systems is the biggest barrier to system of engagement delivery – Forrester, 2013
- 5. Copyright © 2012 HCL Technologies Limited | www.hcltech.com Organizations that are Born Digital are not restricted by Legacy Technology, Business Process and Thinking. These organizations are disrupting traditional business models. 5 Business Model Shifting of value from Front-end to Back-end Innovations Collaborative filtering for individual customer targeting Competitors Under Threat Business Model Digitization of Media content Innovations Digital content distribution through internet Competitors Under Threat Business Model Subscription of movies vis-à-vis fee based Innovations Digital distribution of movies on subscription basis Competitors Under Threat All Media Companies Business Model SaaS model of Software delivery – moving Capex to Opex Innovations Reaching the bottom of the pyramid in software service delivery – eliminating incidents Competitors Under Threat Competition is being Amazoned or is looking down the barrel of a Kodak Moment
- 6. Copyright © 2012 HCL Technologies Limited | www.hcltech.com Traditional organizations have started adopting digital technologies with varied success. They need a complete overhaul in their corporate and IT strategy - they need to be “Reborn Digital” 6 Traditional Business Model Lack of automation and analytics in drilling Innovations Changed business model & impact Built-in GPS, wind sensors, motion sensors and compasses, allows Shell to drill wells with new precision 40% fewer workers required on drilling ships, 50% faster construction of oil rigs Predictive analytics utilized in drilling mechanism Traditional Business Model Traditional fixed price facilities management Changed business model & impact Innovations Expanding service delivery through e-commerce platform, cross service delivery 30% revenue through e-commerce Multi-level, multi-channel facilities delivery Traditional Business Model 18 different legacy systems to run payments Changed business model & impact Innovations Partnered with SAP to create a Single platform with standardized processes for all payment type 40% Reduction in time to respond to mandatory regulatory requirements Secure straight-through processing of > than 7.4 billion payments a year Traditional Business Model Pharmaceutical manufacturing, research and distribution Changed business model & impact Innovations Tie-up with Nintendo for delivering Blood Glucose monitoring system DIDGET 10% faster drug delivery and better control over production Better, enhanced and superior drug delivery Traditional Business Model Traditional manufacturing of automobiles through LEAN processes Innovations BMW eKanban – LEAN process monitoring with mobility apps Better, enhanced production control 10% additional cost savings in production
- 7. Copyright © 2012 HCL Technologies Limited | www.hcltech.com For organizations to be Reborn Digital there has to be a change in the current perception of digitalization that overlooks creating the right Strategic and Technological platform 7 Digital Technologies: Omnichannel Mobility Big Data Collaboration Internet of Things Current Perception of digitalization Sources Of Failure Is the organization able to envisage a digital business model in its industry? Has the organization been able to create a digitalization strategy? Does the digitalization strategy applied across the value chain or only the front end? Are current applications a liability or an asset in the process of digitalization? Is data an enterprise wide resource or it is siloed? Is digitalization impacting the economic value add of the enterprise? Traditional Enterprise Digital Enterprise
- 8. Copyright © 2012 HCL Technologies Limited | www.hcltech.com Digital Systems Integration from HCL has been created as a Journey for a traditional organization to be Reborn Digital 8 Approach to DIGITAL SYSTEMS INTEGRATION Digital Discovery tool set Co’s Vision Blue Print aligned to Vision Gaps Analysis Digital Operational Index Digital Systems Integration Data FabricApplication Modernization Digital Transformation HCL’s Digital Systems Integration HCL toolset to asses current status Vision of the Enterprise Blue print to realize enterprise vision To identify the gaps to bridge HCL’s DSI Propositional to bridge the gaps Feedback for the next phase of transformation Justification and Prioritization of digitalization Creation of a digitalization blue print for a strategic view of digitalization Focus on transforming processes which create the maximum value Legacy Modernization and Cloud Enablement Creation of a seamless Data Fabric System Integration Approach 1 2 3 4 5 6 DSI focuses on
- 9. Copyright © 2012 HCL Technologies Limited | www.hcltech.com Digital Assessment & Advisory Start your first step to a digital journey! 9
- 10. Copyright © 2012 HCL Technologies Limited | www.hcltech.com Thank You