Forecast deploy1 100_ak2
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The document outlines National Australia Bank's (NAB) cloud strategy and implementation. It discusses NAB's strategic context and drivers for cloud adoption, including aging legacy systems, innovation cycles, and enabling customers and employees. NAB's cloud strategy aims for a hybrid model with 90% of services in the cloud. The strategy addresses regulatory requirements, risk appetite, governance structures, and adapting practices for cloud. It also discusses NAB's participation in the Open Data Center Alliance (ODCA) to help inform its cloud approach and build internal capabilities for cloud adoption.
Forecast deploy1 100_ak2
- 1. CLOUD STRATEGY AND IMPLEMENTATION Denis Curran Head of Strategy & Innovation National Australia Bank
- 2. AGENDA NAB’s Strategic Context NAB’s Cloud Drivers The Path We’ve Travelled Cloud Strategy Strategy Implementation 2
- 3. NAB’S STRATEGIC CONTEXT And how we’re driving our Technology agenda 3
- 4. WHAT IS A BANK? 4
- 5. COMPETITIVE FACTORS DRIVING CHANGE Legacy systems Ageing, intertwined systems High cost to adapt Manual workarounds Unattractive to workforce Cost & risk Simplify E2E processes Reduce rework High/continuous availability Resilience Innovation cycle Consumerisation driving user experience Rapid rise (and fall) of ICT enabled services Competitive threats from new industry models ICT industry development Rapidly falling costs of new technologies Leverage massive data Mature service providers Cloud Enable customers and employees Total Environment Transformation Help, guidance and advice Collaborative Mobile, real-time, 24x7 Secure Self-service Omni-channel Relationship Service/product innovation 5
- 6. EXAMPLE – CUSTOMER CHANNEL PREFERENCE 0% 10% 20% 30% 40% 50% 60% 70% Oct 08 Oct 09 Oct 10 Oct 11 Oct 12 Oct 13 % of total transactions by channel Branch OTC Internet Banking Transactions Mobile Internet Banking Transactions ATM Telephone Banking Trend line 6
- 7. EXAMPLE – CUSTOMER CHANNEL USAGE k 2000k 4000k 6000k 8000k 10000k 12000k 14000k 16000k 18000k 20000k Oct-08 Oct-09 Oct-10 Oct-11 Oct-12 Oct-13 Desktop vs. Mobile Logins Internet Banking Logins Mobile Internet Banking Logins 7
- 8. OUR GOAL IS TO ENABLE A DIGITAL BUSINESS Smart, secure products/services E2E process, real-time, highly resilient Supply chain integration Insights on complete, accurate, timely data Culture - innovation, agility, sustainability Enable a digital business Measures Enable customers and employees 8
- 9. Creating sustainable enterprise outcomes that help our colleagues win in their markets Opening up new possibilities for our customers and colleagues Delivering excellent services that our colleagues value Standing behind what we do, and taking accountability for our actions OUR TECHNOLOGY ORGANISATION’S PURPOSE Technology enabling NAB to win Ideas with impact High performing and customer focused people Smart, integrated, relia ble service delivery Technology’s strategic intent We need to excel at 9
- 10. TECHNOLOGY’S THOUGHT LEADERSHIP THEMES Mobility ↔ Omni-channel Consumer payments Social & knowledge economy Security & trust CloudBig data 10
- 11. NAB’S CLOUD DRIVERS And why ODCA has been critical 11
- 12. NAB’S TECHNOLOGY DRIVERS FOR CLOUD LEADERSHIP Business attractiveness Security and trust Technical and operational capability 12
- 13. NAB’S OBJECTIVES FOR CLOUD Competitive global market Cost effective Choice Innovation Risk Faster, lower cost Known capability Agility & innovation Demand driven Consistent user requirements promote efficient markets 13
- 14. WHY NAB PARTICIPATES IN ODCA Real world industry experience Build capability Engagement of our people Credibility 14
- 15. THE PATH WE’VE TRAVELLED Could it have been different? 15
- 16. Industry context Nascent EVOLUTION Technology Business users Acquire understanding ODCA Opportunistic buyers Emerging Control expansion Internal cloud Viral growth Maturing Strategy External cloud Discipline 16
- 17. CLOUD STRATEGY Formation and foundations 17
- 18. STRATEGY FORMATION Objectives: • Articulate NAB’s approach to Cloud adoption • Inform (and educate) stakeholders on the evolving Cloud- scape Components: • Regulatory Context • Technology Operating Model • Risk Appetite Statement • (Cloud) Sourcing Principles • Cloud Adoption Framework • Governance Arrangements • Practices and Tools 18
- 19. TARGET STATE 19 Based on ODCA materials Target State 10% 90% HYBRID FEDERATED Foundation services Risk Appetite; Readiness Assessment; Architecture & Design; Implementation & Transition; Security; Service Management
- 20. REGULATORY & LEGAL CONTEXT Banking regulation • Applies to “Material” activities for any Outsourcing • Assumes there is a loss of control and therefore risks increase • Requires: • Policy setting and Board expectations • Diligent selection approach • Formal contract with defined clauses • Regulator access • Consultation or notification • Monitoring and audit requirements • Other impacting regulations Privacy Act • Disclosure of personally identifiable information • Mitigation • Emerging mandatory disclosure of breaches 20
- 21. TECHNOLOGY OPERATING MODEL 21 Leadership Capabilities Engagement, Strategy, Architecture, Innovation Service Planning, Optimisation & Governance Service & Relationship Management External Managed Services Internal Managed Services Security Services Standardised Infrastructure Commercial Platforms Bespoke Systems Multi-Supplier Integration
- 22. RISK APPETITE STATEMENT Regulatory requirement Board endorsed Establishes the level of risk the organisation is prepared to take to achieve benefits Set for outsourcing, of which Cloud is one element Cloud Risk Appetite considerations: • Recognises (external) Cloud is an emerging capability • Sets risk acceptance and control requirements 22
- 23. SOURCING PRINCIPLES Consistent with Outsourcing principles plus: Cloud decisions – good governance using ODCA to drive efficient, consistent, risk balanced benefits based decisions Cloud service providers – approved suppliers complying with minimum requirements Ownership and accountability – Technology Service Owner + Relationship Manager if multiple services delivered 23
- 24. STRATEGY IMPLEMENTATION Approaches, practices, and tools 24
- 25. CLOUD ADOPTION FRAMEWORK Low Medium High Information Classification Regulatory/Materiality Compliance Low Medium High BCP Rating Service Criticality Informs level of risk assessment, controls and governance 25
- 26. GOVERNANCE – PLAN Outsourcing regulation Supplier Council Risk Appetite Statement Outsourcing strategy Board Technical Architecture Forum Strategic Architecture Forum Cloud strategy Proponents 26
- 27. GOVERNANCE – RUN Operations Relationship Executive • Strategy • Relationship • Opportunity • Escalation • Performance overview • Risks • Relationship • Innovation • Contract • Escalation • Performance detail • Issues • Priorities • Improvement • Administration Supplier Council 27
- 28. ADAPTING PRACTICES TO EXPLOIT CLOUD Service Planning and Management Software Development Lifecycle Infrastructure Management Security and Trust 28
- 29. TOOLS Segregation of duties Orchestration Data residency Monitoring Source code management VPN API ScalingResilience Verification 29
- 30. SUMMARY/CALL TO ACTION Customer, employee, legacy and industry drivers creating conditions to pursue Cloud services Engaging with industry, via ODCA, is compelling Cloud strategy is a necessary precursor to systemic adoption The strategy is multi-faceted, requiring organisational change, and investment in tools and practices to be sustainable ODCA Usage Models provide insight and materials we are leveraging in strategy and implementation 30
- 31. © 2013 Open Data Center Alliance, Inc. ALL RIGHTS RESERVED.