Key Imperatives for the CIO in Digital Age By Lalatendu Das Digital VP, Associate Principal at...
18
June 2017 Enabling Digital Transformations Key imperatives guiding CIO’s agenda
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Transcript of Key Imperatives for the CIO in Digital Age By Lalatendu Das Digital VP, Associate Principal at...
June 2017
Enabling Digital Transformations
Key imperatives guiding CIO’s agenda
2McKinsey & Company
India is sitting on the cusp of a digital revolution…
SOURCE: http://www.gadgetsnow.com/tech-news/India-sitting-on-cusp-of-digital-revolution-Ravi-Shankar-Prasad/articleshow/50878990.cms
“India is sitting on the
cusp of a digital
revolution”
Ravi Shankar Prasad, Minister of
Information & Technology
3McKinsey & Company
India has the 2nd largest internet user base in the world
SOURCE: KP Internet trends 2017
355
277
198
149
11184
6654
350
400
100
300
200
150
250
50
0
20161512
Number of Internet users in IndiaMillion
14131110
+31% p.a.
2009
4McKinsey & Company
Mobile data prices are falling
SOURCE: KP Internet trends 2017
2.7
3.1
3.53.73.7
3.94.04.24.34.34.44.4
Jan-14 Jul-14 Apr-16
3.5
4.5
4.0
1.0
Jan-17
2.5
1.5
Jan-16
3.0
Jul-16Oct-15
0.5
Apr-17Jul-15Oct-14 Jan-150
2.0
Apr-15Apr-14 Oct-16
1.9
-56% p.a.
Average Price for 1 GB of mobile data by Industry Incumbents in IndiaIn US $
~$0.2 / GB
Reliance Jio
5McKinsey & Company
Jan-dhan bank accounts, Aadhaar and Mobile is ushering in a paperless era
SOURCE: https://www.slideshare.net/indiastack/india-stack-a-detailed-presentation
6McKinsey & Company
Substantial value can be unlocked through rapid digitization
SOURCE: McKinsey Global Institute
Many disruptors are already far ahead
World’s largest hospitality service
doesn´t own any beds
World’s largest retailer doesn´t
have any stores
Average increase in customer
satisfaction through digital channels34%
Average improvement in stock
performance for companies with
successful digital transformations 2x
Average improvement in operating
income from digital transformations 40%
7McKinsey & Company
…however, most organizations are not ready for the speed and flexibility required to become a leader in a digital world
SOURCE: https://blogs.msdn.microsoft.com/mikewalker/2009/03/11/mapping-current-state-architectures-across-the-enterprise/
Sample Enterprise IT Application Map
8McKinsey & Company
Four imperatives for making enterprise IT digital ready
1
2
3
4
1
2 3
4
Data
APIs
DevOps
Agile Delivery
9McKinsey & Company
Data is everywhere; it’s important to distinguish between information and noise
SOURCE: https://image.slidesharecdn.com/wwbd-010716-1-160108020248/95/working-with-big-data-7-638.jpg
1
10McKinsey & Company
Having a clear master data management strategy essential for quality and
consistency
SOURCE: Source
1
Delivery to
touchpoint
s
Applicatio
n
Integration
Presentati
on layer
Data
Factory
Analytics/
App
Services
Me
ta d
ata
/se
ma
ntics m
an
ag
em
en
t
Ho
stin
g(C
lou
d, o
n-p
rim
, h
yb
rid
), In
fra
str
uctu
re, D
evO
ps, S
ecu
rity
, S
up
po
rt, M
on
ito
rin
g, a
nd
Au
ditin
g
marketi
ng
Own
websites
CMS
UGC
e-
Comm
Order
Process
-ing
Payme
nts
Tag
mgmt.
Own
mobile
App
Registr
a-tion
SMS
Game
ID/thum
b-print
Geo-
location
Retailer
app
Coupon
s
Social
media
Own
social
media
portals
Off-site
social
media
Kiosk
Identific
a-tion
Videos
3rd Party
Website
SEO
SEM
Online
ad
platform
Survey
Prefer-
ences
Interest
s
Call
Center
Feedba
ck
Enterprise application integration Cache High speed stream
External
data
Data
storage
Data integration ETL EAI Batch Feeds Data Stream
Master
Data
Call center Micro E Geo Census Social
Cha
ng
e m
an
ag
em
en
t a
nd
co
llab
ora
tio
n
Operational
Data
Dashboar
ds
Ad-hoc,
self-serve
Discovery
Experime
nt-ation
(Data
science
sandbox)
Business
Intelligenc
e
Retailer
HW/SW
Redem
p-tions
Content Services Analytics Services
e-
Commerce
Web
content
manageme
nt, DAM
Website
portals
Social
media
manageme
nt
Web / Social /
Mobile analytics
Personalization engine
Rules engine Customizatio
n manager
Retailer Consumer
Data Lake
API (micro-services,
REST)
View Store In-memoryMarts Graph DB
Computation
Custom
hardwar
e
Data
capture
ESB
Device
data
DISGUISED CLIENT EXAMPLE
11McKinsey & Company
Illustrative API led information architecture
SOURCE: Source
Experience APIs
Process APIs
System APIs
Custom
2 DISGUISED CLIENT EXAMPLE
12McKinsey & Company
A robust collection of APIs significantly accelerates time to market for
new solutions
LOB – Lines of Business, EA – Enterprise Architecture
Developers/
Digital Teams
LOB
Central IT/ EAAPI Standards
System APIs
API Exchange
Process APIs
Experience APIs
2 DISGUISED CLIENT EXAMPLE
13McKinsey & Company
DevOps practices are essential to sustain agile delivery at scale3
< ~10 mins to check-in code and push to
production
Time
duration
Code commit,
merge and
auto-build
1-click
deploy
Dev
QA
Staging
1 click setup
of local
environmentProd
Salesforce-like
platform20+ omni-channel
apps
50+ home grown micro-
services
Bracket Bracket
Dynamic
provisioning of full
containerized
environment that
mirrors production
Suite of 1000+ tests (e.g., unit,
functional, E2E, etc.) automatically
run and validated
Auto-scaling of AWS infrastructure
based on customer demand and
traffic
Lean, developer-
heavy, product-
aligned (co-located)
Agile teams focused
on building new
business features
Central, fixed size
(60-70 FTEs) team
focused on managing
the platform and
building new services
DISGUISED CLIENT EXAMPLE
14McKinsey & Company
NOT EXHAUSTIVE
DescriptionCategory
▪ Software repository to store, version and track all software source code and related
artifacts (e.g., tests, configurations, other documentations)
Source code
management
▪ Software frameworks, tools to automate multiple levels of testing:
– Unit tests: Individual units and modules of source code
– Integration tests: Multiple components grouped and tested
– Functional tests: User interface functionality
– Cross browser tests: Multiple device, browser combinations
– Performance tests: Response time of application functionality
– Security tests: Security vulnerabilities of application functionality
Automated
testing
▪ Software tools that automate and coordinate the integration, building and testing of code
with transparent reporting on build and testing status
Continuous
integration
▪ Software tools and frameworks to automatically provision, configure and manage
infrastructure (e.g., web servers, databases, load balancers, etc.)
Infrastructure
automation
▪ Software tools that automate the compilation of software source code files into executing
programs that can run on computer servers
Build tools
▪ Software tool to measure and report the quality of source code against best practices
(e.g., complexity, duplications, modularity)
Code quality
measure
▪ Service provider that offers infrastructure or platform services that are managed and
accessible either via a private (i.e., private cloud) or public network (i.e., public cloud)
Infrastructure /
platform as a
service
▪ Software tools that monitor the health and performance of the application, infrastructure
and overall site usage
Monitoring
Log
management▪ Software tools that centralizes and automates the collection, analysis and insights
generation of applications logs for trouble shooting and identifying root causes of
application issues
Example tools
A number of tools are available to support agile engineering and
DevOps3
15McKinsey & Company
1
2
3
4
1
12
2
3
4
4
5
5
2
3
4
5
Prioritisation of DAD modules
SOURCE: Disciplined Agile 2.X
Wave 1 (deliver,
programme management,
release management )
Wave 2 (support, portfolio
management, IT
governance)
Wave 3 (operations,
enterprise architecture)
Wave 4 (product
management, reuse
engineering, people
management)
Wave 5 (data
management, continuous
improvement)
Successful digital organizations have deployed agile @ scale4
1
16McKinsey & Company
One last thing..
17McKinsey & Company
“Organizations which design systems
... are constrained to produce
designs which are copies of the
communication structures of these
organizations”
- Melvin E Conway
Watch out for Conway’s Law
18McKinsey & Company
Lalatendu Das [“LD”]Vice President
Core Leadership, McKinsey Digital Labs – Asia Pacific
18+ years' experience in agile, DevOps consulting
Certified Scrum Professional
@d_lalit
https://www.linkedin.com/in/lalatendudas/
