pay-per-use

cio & leader.com
Next Horizons
Best of Breed
Top IT-enabled
Trends Pg 38
Analytics in Consumer
Firms Pg 20
07
T r a c k t e c h n o lo g y
B u i ld b usi n ess
Shape self
Is Traditional Security Enough? | Reality Check
pay-per-use
Volume 02 | Issue 07
In today's era of pay-per-use,
are longstanding relationships
between CIOs and traditional
IT vendors in for a change ?
page 26
A 9.9 Media Publication
Viewpoint
The Amazon Effect
Pg 48
Volume 02
Issue 07
July 07 2013
150
editorial
yashvendra singh | [email protected]
New-Age
Relationships Pay-per-use
model will only cement the bond
between the CIO and his vendor
I
t is a deep rooted practice.
People prefer to buy from
those who they trust and like,
and with whom they have
long-established relationships.
Enterprise technology decisionmakers are no different. Trust,
credibility and relationship
have been the hallmark of
any CIO-vendor successful
association. However, businesses today are increasingly
demanding speed, capabilities
and flexibility from CIOs. To
meet these needs, enterprise
technology leaders are in turn
looking at emerging pay-peruse models.
The fast acceptance and
rapid adoption of cloud computing has the potential to
radically alter the long-standing
relationship between the CIO
and the vendor.
For proponents of cloud computing, applications, software
and hardware are not platforms
that need to be supported
through long and tough life
cycles. They look at the power
of computing as yet another
disposable commodity.
So, will this change in the
manner in which enterprises
purchase and consume technology spell the death of the
editors pick
26
Pay-Per-Use
In today’s era of pay-per-use,
are longstanding relationships
between CIOs and traditional IT
vendors in for a change?
2
July 07 2013
traditional vendor-CIO relationship? Will the tenets of trust,
strong rapport and bonding
give way to a transactional
relationship? While there may
be those who would differ, we
at CIO&Leader feel that the
pay-per-use and outsourcing
models will only cement the
relationships between the CIOs
and their vendors.
There are enterprise technology leaders who, to achieve the
desired results, work closely
with their cloud vendors. They
select, manage and focus on
their vendors to achieve set
goals of cost, quality service
and satisfaction for their enterprises. In fact, the importance
of taking the relationship to the
next level can be gauged by the
fact that a dedicated discipline
has come to be established.
Called VRM (Vendor Relationship Management), the
new disciple has already been
adopted by companies such
as Cisco Systems and Citi.
Amongst the key objectives of
VRM is to make sure that there
is a concerted effort to align the
efforts of the vendor towards
achieving the objectives of the
enterprise.
On its part, the vendor needs
to understand that managing servers is akin to managing expectations of the CIO.
Instead of for jostling for
superiority, the vendor should
work towards a collaborative
relationship.
In the current issue, we
decided to explore this aspect
of CIO-vendor relationship in
the era of cloud computing. Let
us know how you are managing your relationships with
your cloud vendor. We look forward to your feedback.
july 2013
26
Cover Story
26 | Pay-Per-Use
02 | Editorial
10 | Enterprise
Roundup
48 | viewpoint
S p i n e
cio & leader.com
In today’s era of pay-per-use, are
longstanding relationships between CIOs
and traditional IT vendors in for a change?
RegulArs
Next HorizoNs
Best of Breed
Top IT-enabled
Trends Pg 38
Analytics in Consumer
Firms Pg 20
ViewpoiNt
The Amazon Effect
Pg 48
Volume 02
Issue 07
July 07 2013
150
07
T r a c k T e c h n o lo g y
B u i ld B uSi n eSS
Shape Self
Is TradITIonal securITy enough? | realITy check
4
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pay-per-use
Volume 02 | Issue 07
Please Recycle
This Magazine
And Remove
Inserts Before
Recycling
In today's era of pay-per-use,
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page 26
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NO HOLDS BARRED
46 | The Era of Relationships Dan
Springer, Chairman & CEO, Responsys,
talks about the importance of customer
engagement
34 | tech for governance: is traditional security
enough? Organisations
should look for a service
that operates a global
threat intelligence facility
advertisers’ index
20 | Best of breed:
Applying advanced
analytics in consumer firms Con-
38 | Next Horizons: top itenabled business
trends A look at
sumer facing companies
must be able to gather
and manage the right
data
some trends that loom
large on the top agenda
of CIOs
HPIFC
Smartlink1
Schneider
7, 9
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Zenith Computers
13
SAS Institute
15
ASSOCHAM19
DellIBC
VodafoneBC
This index is provided as an additional
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advisory Panel
Anil Garg, CIO, Dabur
David Briskman, CIO, Ranbaxy
Mani Mulki, VP-IT, ICICI Bank
Manish Gupta, Director, Enterprise Solutions AMEA, PepsiCo
India Foods & Beverages, PepsiCo
Raghu Raman, CEO, National Intelligence Grid, Govt. of India
S R Mallela, Former CTO, AFL
Santrupt Misra, Director, Aditya Birla Group
Sushil Prakash, Sr Consultant, NMEICT (National Mission on
Education through Information and Communication Technology)
Vijay Sethi, CIO, Hero MotoCorp
Vishal Salvi, CISO, HDFC Bank
Deepak B Phatak, Subharao M Nilekani Chair Professor and
Head, KReSIT, IIT - Bombay
NEXT100 ADVISORY PANEL
Manish Pal, Deputy Vice President, Information Security Group
(ISG), HDFC Bank
Shiju George, Sr Manager (IT Infrastructure), Shoppers Stop
Farhan Khan, Associate Vice President – IT, Radico Khaitan
Berjes Eric Shroff, Senior Manager – IT, Tata Services
Sharat M Airani, Chief – IT (Systems & Security), Forbes Marshall
Ashish Khanna, Corporate Manager, IT Infrastructure, The
Oberoi Group
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July 07 2013
5
I Believe
By Zafar Saeed, CTO, Albion Information Security - Internal Threats
the author has recently been involved in managing a wide
range of cloud-based products and services
Employees are
responsible for 95% of
intrusions Most security breaches
do not originate from external hackers,
viruses or worms
With growing dependency on Internet, organisations are spending a sizable
chunk of their total IT budget in information security to protect data, networks
and servers against external threats. An intrusion detection system at gateway,
a sophisticated firewalls and a well-managed virtual private network, collec-
6
July 07 2013
tively called as perimeter security
can only provide security if an attack
is steered from outside. Companies
generally don’t give much attention on securing the network and
information that is on high-risk of
being compromised from within the
boundaries of the organisation.
There are apparent reasons to
believe that networks cannot be
trusted (LAN or WAN) and that
sensitive information is frequently
travels unprotected through local
area network. Conventionally, organisations have put their most information security efforts and budget in
protecting their information assets
from external threats. Internal information security is often being taken
for granted and relied upon trust
relationship with employees.
According to a Gartner, most security breaches do not originate from
external hackers, viruses or worms,
but from employees who commit
more than 70 percent of unauthorised access to information systems.
Employees are responsible for more
than 95 percent of intrusions.
current
challenge
people accessing
internal networks
is always a threat
Top Concerns
The most obvious concern is the
human factor. People accessing
internal networks is always a threat
that is very challenging to control.
It may always not be intentional, for
example an employee may innocently use an infected USB storage that
may result in compromising either
information Confidentiality, Integrity
or Availability, or all of them in worst
case scenario.
1. Unauthorised search or access,
copying, modification, or deletion of
confidential data
2. Brute force password attacks and
installation of Trojans, bots, rootkits
and other malicious software on the
network by users
3. Installation of unauthorised and
unapproved software by users on
their allocated machines.
Chief Sustainability Officer
Production Manager
Maximize production;
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IT Manager
Ensure uptime
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Drive sustainability strategy;
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Facilities Manager
Manage energy, lighting,
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Chief Executive
Officer
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StruxureWare software delivers enhanced visibility for fast, informed decision-making
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©2013 Schneider Electric. All Rights Reserved. All trademarks are owned by Schneider Electric Industries SAS or its affiliated companies. www.schneider-electric.com. Part #998-1169566_IN
LETTERS
COVER STORY | glOCal
glOCal | COVER STORY
1/14
#REASON
cio
& le
ad
No
“SpeciaHoldS BArred
lisation
is the ke
y”
Creatin
g a Co BeSt of Breed
mpetitive
landsc
ape Pg 34
Pg 48
er.c
om
Illustration by Manav Sachdev
By learning globally and06
implementing locally, Indian
CIOs are transforming their
enterprises By Atanu Kumar Das
Tr ac
June 2013
k Tec
h
n o lo
ViewpoiNt
Volume
02
Issue 06
June 2013
150
Pg 60
gy
TOP EnC
ryPT
24
So
ftw
definedareThere can be no substitute to global
experience. We spoke to a few top CIOs
who had the experience of working in a
global enterprise at some point of their
careers and how they are implementing
Buil
d Bu
S i nwhat
they learnt abroad, in India.
eSS
Shap
e Sel
f
June 2013
INTRODUCING IDEAS AWARDS
glocal
S p i
n e
Celebrate ideas that
transform business
TO ATTEND
THE EVENT
25
IOn
BEnEfIT
S
| STrE
AMlInIng
IT AT
CArESTr
EAM HEA
lTH
| TOyO
TA
fInAnCIA
l SErV
ICES SEEk
S IT AgIl
ITy
e 02 |
Issue 06
Volum
L.indd
Media
Join over 900 CIOs on the CIO&Leader LinkedIn group
for latest news and hot enterprise technology discussions.
Share your thoughts, participate in discussions and win
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implem ning globally
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e transf
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es Page 24 ming their
1
are CTOs more
interested in
satisfying the CFO &
Board rather than
the consumer?
6/26/2
013 4:38:3
7 PM
CTO is aligned to the CFO
and the Board in that order.
The CTO will have to also
be good at resume writing
as he will not last too long.
But then the question arises,
is the CFO aligned to the
consumer? If he is not, then
he may be in hot water
sooner or later.
Virtual CTO/CIO
A long term IT partner for your business growth
This is a model that SMBs are slowly waking up to. While
their IT head can chip away with his day-to-day activities,
an external help (a part time CIO) can give their IT a
proper direction and can review performance to ensure
the company's objectives are met.
—Balasubramanian S R
Business & IT Consultant
CIO&LEADER.
COM
Anuj Garg, Technical
Director, Zync Global,
shares his views on
tech leadership
http://www.
cioandleader.
com/cioleaders/
features/10280/leaders-motivateteam
Opinion
the age of applications
arun gupta, CIO, Cipla
Diwakar Dhyani, CTO, Corporate
Infocom, talks about customised apps
There is a need for developing custom applications
by CIO/CTO for the employees.
To read the full story go to: http://www.cioandleader.
com/cioleaders/features/10235/age-apps
WRITE TO US: CIO&Leader values your feedback. We
want to know what you think about the magazine and how
to make it a better read for you. Our endeavour continues to be work
in progress and your comments will go a long way in making it the
preferred publication of the CIO Community.
Send your comments, compliments, complaints or questions
about the magazine to [email protected]
8
July 07 2013
Diwakar Dhyani,
CTO, Corporate Infocom
Enterprise
Cloud Office
Systems Will
Rise to 33
percent by 2017
Pg 12
Illustration by anil t
Round-up
Interview Inisde
Polycom Unveils Collaboration Apps
The new versions let users securely extend
the use of video collaboration
has announced its RealPresence Mobile
3.0 and RealPresence Desktop 3.0, video collaboration
software applications for mobile devices and personal
computers. The new versions include enhanced
content-sharing capabilities and support across more
devices from companies including Apple, LG, Samsung and Sony. RealPresence Mobile 3.0 and RealPresence Desktop 3.0 video collaboration software are
powered by the Polycom RealPresence Platform.
“Organisations expect a great collaboration experience, whether they’re at headquarters, at home, with
a customer or on the road – or for that matter in a
school, a hospital, a court room, or a manufacturing
Polycom
10
July 07 2013
plant,” said A.E. Natarajan, Senior Vice President of
Worldwide Engineering, Polycom.
Polycom RealPresence Mobile 3.0 software is lets
customers securely extend the use of video collaboration beyond the conference room to easily connect
tablets and smartphones (iOS and Android devices)
with other standards-based video systems, providing
a simple and intuitive video collaboration experience when users are on-the-go, traveling or working
remotely. For a more engaging video collaboration
experience, iPad users can now capture and share
images, live web content and content files - including
.jpg, .png, html pages, PDF, PowerPoint, Excel.
Data Briefing
16%
Will be the growth
of BI software
market in 2013
Enterprise Round-up
They Rahul
Said it Khullar
Reacting to a question from Hindu Business Line on whether
the worst phase was over for telecom players, Khullar feels
that the pain period for telecom sector is getting over slowly.
HP Unveils Cloud Management
Software Helps firms automate the
complete life cycle of IT services
HP has announced the next generation of its data center automation, orchestration
and cloud management software, which is designed to enable enterprise IT to rapidly
deliver services on a massive scale on premises or via the cloud HP's portfolio of software includes HP OO 10, HP SA 10, HP DMA 10 and HP Cloud Service Automation
3.2 which helps organisation to automate the complete life cycle of IT services—from
routine data center maintenance to the delivery of business processes.
HP Operations Orchestration (OO) 10 reduces the time needed to build and deploy
business processes—on premises or via the cloud by automating all application and
infrastructure runbooks. In addition, HP OO 10 speeds time to value with out-of-thebox support for more than 5,000 IT operations, including new support for Amazon S3
Storage, HP ArcSight, HP Fortify, OpenStack and SAP applications. The HP Server
Automation (SA) 10 enterprise-grade server life cycle management platform allows IT
to manage more than 100,000 physical and virtual servers from a single pane of glass
to eliminate management complexity. In addition, HP SA 10 offers HP Server Automation Standard, a virtual appliance that allows smaller organisations and department-level IT teams to begin managing server environments in less than one hour.
Quick Byte on cloud
“I will never say the worst is
behind. The pain period is
ending slowly. We have sorted
out many issues. Industry
finances are improving.
At TRAI, we are looking at
what all of us
– Government
and regulator –
need to do for
the next 2-3
years.”
— Rahul Khullar,
Chairman, Telecom Regulatory
Authority of India
Only eight percent of office system
users employ cloud-hosted email and
desktop applications, according to
analyst company Gartner. However,
that figure is expected to grow rapidly
in the next decade, as the number of
devices that office workers use grows
—Gartner
July 07 2013
11
Illustration by anil t
Enterprise Round-up
Cloud Office Systems Will Rise
to 33 percent by 2017 695 million
office users will use cloud by 2022
Claims that most organisations have
moved, or are moving, to cloud email or
cloud office systems are not consistent with
research by Gartner, Inc. Gartner estimates
that there are currently about 50 million
enterprise users of cloud office systems,
which represent only eight per cent of overall office system users (excluding China
and India). Gartner, however, predicts that a
major shift toward cloud office systems will
begin by the first half of 2015 and reach 33
per cent penetration by 2017.
"Despite the hype surrounding migration
to the cloud, big differences in movement
rates continue, depending on organisations' size, industry, geography and specific
requirements," said Tom Austin, vice president and Gartner Fellow. "While eight per
cent of business people were using cloud
office systems at the start of 2013, we estimate this number will grow to 695 million
users by 2022, to represent 60 per cent."
Although email remains the world's
primary collaboration tool, others, such as
Global Tracker
Security
services' market is forecast
to reach $67.2 billion in
2013
12
July 07 2013
Source: gartner
The worldwide
security technology and
team sites and communities are growing in
importance. Nonetheless, email is typically
pivotal in decisions to move — or not move
— to cloud office systems. Gartner estimates that by the end of 2014 at least 10 per
cent of enterprise email seats will be based
on a cloud or software-as-a-service model.
In addition, there has been a substantial
expansion in the number of devices people
use to access cloud office systems in recent
years. In 2007, when the cloud office system
market first appeared, typical individual
users would employ just one device to
access their enterprise's office systems.
In 2013, that number has soared. Gartner
estimates the typical knowledge worker now
employs up to four devices — for example,
mobile phone, media tablet, personal PC
and enterprise PC — to access their organisation's office system capabilities in a
single week. This explosion in the number
of devices per user could drive some organisations to cloud office systems as they can
reduce the IT burden of software installation, maintenance and upgrades of locally
installed office software.
Device counts are an important consideration. While organisations may need to
buy licenses, for each and every device that
a user uses to access non-cloud office systems and applications, cloud office systems
are typically provisioned to each user, not
to each device. As a result, two alternative
cases emerge: for knowledge workers who
are increasingly using multiple devices,
moving to a per-user (not per-device) payment scheme can lead to significant savings if the customer would otherwise have
to license (or buy subscriptions for) each
device under older, per-device licensing
approaches. Alternatively, organisations
with many devices shared between workers — as in the banking and healthcare
industries — may be better off licensing or
subscribing by device.
Current levels of adoption vary significantly by industry. Organisations in industries at
the leading edge, such as higher education,
discrete manufacturing, retail and hospitality, are significantly more likely to adopt
cloud-based office systems at present. Those
in the intelligence and defense sectors, and
in heavily regulated parts of the financial
services and healthcare industries, are
among the least likely to be early adopters.
Enterprise Round-up
Illustration by anil t
Personal Data On
Company's IT is
the Next Target
Most firms will have
data which they can't
control
Organisations should create a privacy programme that keeps personal data at arm's length,
but under control, according to Gartner, Inc. Gartner predicts that by 2019, 90 percent of organisations will have personal data on IT systems that
they don't own or control.
Enterprises have traditionally been the target of
security threats, and until recently, those hackers
focused on attacking vulnerable IT infrastructure.
As protection for such infrastructure improves,
the attackers' attention shifts to softer targets,
such as employees, contract workers, customers,
citizens and patients.
"As the amount of personal information
increases multifold, individuals and their personal
data will increasingly become a security target.
And, yet in most scenarios the organisation is still
ultimately accountable for the personal data on
its IT systems," said Carsten Casper, research vice
president at Gartner. "The time has come to create
an exit strategy for the management of personal
data. Strategic planning leaders will want to move
away from storing and processing personal data
in the next five years."
"The PCI Data Security Standard (DSS) requires
the implementation of stringent controls of those
who collect and store credit card data. In response,
many companies have decided to eliminate credit
card data from their own systems and completely
entrust it to an external service provider," said
Casper. "The same could happen with personal
data. If control requirements are too strong and
implementation is too costly, it would make sense
to hand over personal data to a specialized 'personal-data processor'"
Gartner has identified the following steps to prepare for such a strategy.
The first step should be to create a policy that
draws a clear line between data that relates to
human beings and data that does not. The former
category includes contact information and health
and financial information, as well as an Internet
Protocol address, geolocation data and other traces an individual leaves in the online world. The
latter category especially includes business plans,
corporate financial data and intellectual property.
Separating the two is necessary, because different
laws apply.
Fact ticker
Govt Unveils Cyber Security
Framework To work with ISPs to
oversee the metadata of Indian users
With cyber security becoming a major concern globally,
the Indian government is now
implementing a new architecture to keep the IT infrastructure secure. According to a
Times of India report, the new
architecture envisages an interlinked set of bodies in departments such as NTRO, defence
14
July 07 2013
and home ministries. CERT
will be the umbrella body that
will take care of the cyber
security. The inter-agency
structure will be headed by
a cybersecurity coordinator,
whose named will be revealed
by end of this month.
The framework, cleared by
the Union cabinet last month,
also envisages working closely
with Internet Service Providers
(ISPs) to monitor the metadata
of Indian users. However, this
would be different from US'
PRISM as it will not be covert.
According to a Business Standard report, the architecture
is rooted in the IT, Act 2000,
particularly Sections 43, 43A,
72A and 79, which make it
mandatory for the companies
to adhere to data security and privacy protection
guidelines. It also envisages
multi-layered protection.
Big Data
T
om Davenport of the International Institute for Analytics (IIA) and Jill Dyché of SAS
has come with a new research
report called Big Data in Big
Companies , which describes
how 20 large firms benefit from
big data projects and how these
companies have deployed analytics to generate value from
their big data assets.
“We’re making a big bet on big
data,” says Bill Ruh, Vice President of GE’s Software and Analytics Center. “With that said, the
pilot projects we’ve put out there
have solved some big problems
already. Our early proof-points
were important. Now we’re
moving forward with even more
complex problem sets. We’re
making this a part of everything
we do.” Research participants
included AIG, Bank of America,
Caesars Entertainment, Carolinas Health Care, CIGNA, Dell,
Discover, Fidelity, GE, Macys.
com, Schneider National, Sears,
T-Mobile, United Healthcare,
UPS, Verizon and Wells Fargo.
“As we engaged big company
executives in conversations
about big data for this report,
they all agreed that big data is
an evolutionary set of capabilities that would have new and
sometimes unanticipated uses
over time,” said Davenport,
Research Director of the IIA and
Visiting Professor at Harvard
Business School.
A Question of answers | Simon Cowley
Simon Cowley | commscope
Cloud is
Gaining
Momentum
Simon Cowley, Vice President, Global Technical Support,
CommScope, believes that moving to the cloud entails
to gracefully giving up control while maintaining accountability. In a conversation with CIO&Leader, he gives
insights into how cloud is catching up fast among enterprises and is proving to be a game changer
While mobile devices are
coming across as game
changers in today’s businesses,
CIOs are struggling to keep pace
with mobility. How can they balance mobility’s dramatic effects
on workplace productivity and
requirements?
BYOD (Bring Your Own Device) is a
trend that seems like it’s here to stay.
More and more people are coming
to work with their own devices and
expecting to use them seamlessly.
This is true not just for employees
but also for visiting customers or
16
July 07 2013
clients. To meet this demand, an
increasing number of organisations
are implementing in-building wireless and Distributed Antenna System
(DAS) solutions to ensure ubiquitous
coverage and high standards of the
quality of service. Simultaneously,
there are new Wi-Fi standards being
developed, such as 802.11ac and
802.11ad, that are pushing the aggregate available bandwidth beyond 1G.
This in turn is a solid driver for 10G
capable infrastructure throughout
the building to support both Wi-Fi
and desktop applications.
What are the top three most
important technologies/best
practices that a CIO should adopt
to cut down on power consumption?
There are a few solutions that will
allow for a better managed network
that can bend the cost curve and
reduce power consumption in both
the short and long run. Some of
these options include:
A DCIM (Data Centre Infrastructure Management) solution that
automates workflows, empowers
knowledge-based decision-making,
Talk of the town:
Bring-your-own-device
is catching up fast in
enterprises and promises
to stay for a long time
A Question of answers | Simon Cowley
and maximises operational efficiency
An intelligent infrastructure management solution that provides realtime documentation that can take the
guesswork out of what is connected
where, making the job of managing
networks much easier. It will also
assist with finding a device’s physical location in the network with IP
device discovery.
A power management solution,
like Cisco EnergyWise, that can
be used to monitor, control, and
report the energy use of information
technology (IT) and facilities
equipment. Automated locationbased real-time update capability
is paramount to an effective
implementation.
What are the top three challenges confronting today’s
enterprise technology decision
makers? How can they overcome
these challenges?
Recently, CommScope conducted a
Global Enterprise Survey with 1,104
IT professionals across 63 countries
and identified the following gamechangers or trends impacting the
industry:
Enterprise mobility - An in-building
wireless solution to keep-up with the
growing trend of BYOD. According
to the survey, forty-four percent of
surveyed participants see the widespread use of mobile technology as a
game-changer. On average, respondents estimated that forty-three percent of all phone calls in enterprise
buildings involve mobile phones.
Thirty-five percent reported having a Distributed Antenna System
(DAS) deployed on site to support the
indoor wireless traffic.
Cloud services - Moving to the
cloud has been described as gracefully giving up control while maintaining accountability. Tools like
intelligent infrastructure management provide security and management when the cloud infrastructure
is in a remote location, either hosted
or in private cloud, and help mitigate
some of those risks.
18
July 07 2013
The best approach today is to
select an infrastructure that
supports your requirements
and provides you the most
options for the future
Forty-four percent of surveyed
respondents pointed to cloud services as a game-changer. Seventy-four
percent of respondents currently use
cloud services of some kind. While
twenty-one percent currently rely on
cloud technology to run more than
half of their applications, by 2017,
fifty-two percent believe that more
than half of their applications will
reside off-site in the cloud.
40Gbe and 100Gbe- Several transceiver Multi-Source Agreements
(MSAs) are vying for market dominance and these vary by fiber type,
lane speed, the number of lanes,
and application distance support.
The best approach today is to select
an infrastructure that supports your
requirements today but more importantly, provides you the most options
for the future. This will allow for a
cost effective transition to next generation optical technology, regardless
of which implementation wins in the
marketplace.
things I
Believe in
The big trend to
beat is mobility.
According to a
survey seventyfour percent
respondents are
currently using
cloud of some
kind.
Automated
location-based
real-time update
capability is
paramount to an
effective power
management
implementation
Thirty-two percent of respondents
indicated that 40GbE and 100GbE
would have a significant impact on
their future operations, with a majority citing the emergence of laser-optimised multimode. There was also
consensus among the respondents
as to their installation strategies for
future data centers. Sixty-one percent
of operators favored a pre-terminated
data center solution as opposed to a
field-terminated solution.
Going forward what trends
do you see emerging in
the enterprise IT space? How
should CIOs gear up to meet
these trends?
According to our global enterprise
survey, the big trend to beat is mobility. With more people carrying more
than one device and expecting connectivity everywhere they go, it seems
that enterprise IT has to prepare for
the amount of voice and data streaming in and out of the facility.
Best of
Applying advanced analytics in consumer firms
Consumer-facing companies must be able to gather
and manage the right data
By Peter Breuer, Jessica Moulton, and Robert Turtle
R
20
July 07 2013
etailers and consumer-packaged-goods (CPG) companies have long had access to vast
amounts of transaction data: every day, companies capture information about every
SKU sold to every customer at every store. In addition, companies regularly use sophisticated market-research techniques to answer a variety of questions: what products
should we develop and sell? How much is the customer willing to pay? Which products
Illustration by anil t
Breed
a n a l y t i c s | B EST OF B REED
should we discount and when? Which marketing vehicles will allow us to reach the
most customers?
Adding to the reams of data and market
research already at their fingertips, consumer companies now have access to socialmedia information and other large data sets
known as big data. In this article, we discuss
the potential of big data and advanced analytics for the retail and CPG industries and
examine what it takes to turn this potential
into actual value.
Immense possibilities
The combination of big data and advanced
analytics offers retail and CPG companies
countless opportunities across the value
chain. In portfolio strategy and product
development, for example, companies can
get a more detailed understanding of consumer needs and attitudes and more precisely identify consumer segments, improving their ability to target the highest-value
opportunities. They can measure the return
on investment (ROI) for marketing spend
across both traditional and newer marketing vehicles (such as social media), allowing
them to shift marketing dollars to the most
effective channels (see sidebar, “Unraveling the Web: A new way to understand the
online customer”). Through detailed hourly
analysis of in-stock rates by store, retailers
can reduce out-of-stocks, provide a better
shopping experience for consumers, and
boost sales for both themselves and their
CPG partners. Big data and advanced analytics allow companies to make better, faster
decisions in their day-to-day business and
deliver improved performance. A European
CPG company, for instance, revolutionized its retailer-specific assortments and
planograms: by applying advanced analytics
to consumer data, it was able to determine
which SKUs were selling well in which
retail formats and which SKUs to swap in
and out to best meet consumer preferences.
It is now seeing 10 percent sales growth in
a low-growth category. And the potential
impact isn’t just in sales: recent research
by McKinsey and Massachusetts Institute
of Technology shows that companies that
inject big data and analytics into their operations outperform their peers by five percent
in productivity and six percent in profitability. Making it happen: Three ingredients
groups—in this case, customer loyalty,
marketing, and merchandising finance—it
could identify subsegments among its
loyal customers and figure out what types
of direct mail resulted in the most incremental profit for each segment. Once the
retailer understood what data it needed, it
developed a focused process to extract and
clean the needed data and bring it together
for this new purpose. We find that such a
targeted approach often leads to success and
supports quick wins.
Managing the data
Define data-governance standards. Given
As they embark on a data-and-analytics
the vast amount of data that retail and CPG
journey, companies should take a “decicompanies collect and manage, ensursion back” approach that begins by crisply
ing the accuracy and reliability of data is
answering one question: which decisions
a constant challenge. For instance, proddo we want to improve? A retailer may, for
uct information—package sizes, product
instance, seek to make better decisions
descriptions, or even the category in which
about its promotional spending. Here, the
a product belongs—isn’t always up-to-date
range of decisions can be quite broad: do
in retailers’ databases. If the data are needed
we want to optimise the design (number of
for analysis, the old saying “garbage in, garpages, number of products on each page)
bage out” still largely applies.
of our promotional leaflets and circulars?
The increasing value of analysis-ready
Do we want to reassess the distribution
data mandates a mind-set shift: in particuof our circulars—which newspapers they
lar, a shift from simply collecting the most
should be inserted into, which addresses
easily available information and storing it as
they should be delivered to, and so on? Do
is, to establishing rigorous data-governance
we want to rethink the product mix in our
standards that call for clean, consistent data
circulars? Each decision requires different
to be collected and stored in an analysisdata and analyses. Once they’ve determined
ready state. The approach can be quite simithe specific business decisions they want to
lar to the way retailers manage and mainimprove, consumer companies must coltain stores: they have processes and checks
lect and manage the data needed to conduct
in place to ensure that store assets are propinsightful analysis. In our experience, this
erly cleaned, well designed, and periodically
entails three deliberate actions: creatively
refurbished to maintain their useful life. In
sourcing data, defining data-governance
the same way, data-governance standards
standards, and establishing an IT infrastrucshould define what data will be collected,
ture. Creatively source data. Often, we find
the processes for checking and maintainthat a consumer company has the data it
ing the data, and who in the organisation is
needs to unlock business improvement, but
responsible for managing each data set.
the data reside in different business groups
Establish the IT infrastructure. Compawithin the company. In effect, organisationnies need the IT infrastructure to store, easal silos “hide” data from the analysts who
ily access, combine, and analyse
can put it to work.
large data sets. Setting up the
For example, a specialty
IT infrastructure requires close
retailer sought to redesign the
collaboration among business
promotional mailings it sends
managers, analysts, and IT staff
to the more than five million
to ensure that data storage is
members of its loyalty-card prowill be the spending
designed in a way that meets
gramme. While the programme
on platform-as-abusiness needs and technical IT
had been successful, revenue
service by the year
requirements.
and profit from loyal custom2016
One large retailer has taken
ers was stagnating. The retailer
big steps that improve data
recognised that by combining
accessibility. The retailer recentdata from various functional
We have found that fully exploiting data
and analytics requires three capabilities.
First, companies must be able to choose
the right data and manage multiple data
sources. Second, they need the capability
to build advanced models that turn the
data into insights. Third and most critical,
management must undertake a transformational-change program so that the insights
translate into effective action.
$3bn
July 07 2013
21
B EST OF B REED | a n a l y t i c s
ly announced plans to integrate its five-plus
e-commerce Web sites onto one platform
and move the corresponding data into a
single in-house data repository. Whereas
today sourcing of e-commerce data requires
coordination across groups and can take
several weeks, the new infrastructure will
give the retailer’s business leaders instant
transparency and access to e-commerce
data, accelerating insight generation and
business impact.
Translating data into insights
Managing the data is just the first step.
Companies must next make sense of the
flood of data—a task that requires sophisticated and sometimes complex analytic
models. Two guiding principles can help.
First, business users should be involved
in the model-building process; they must
understand the analytics and ensure that
the model yields actionable results. Second,
the modeling approach should aim for the
least complex model that will deliver the
needed insights. The power of these two
steps became evident in a CPG company’s
efforts to assess its marketing-spend ROI.
An external vendor independently built a
model that suggested online paid-search
ads delivered incredibly high ROI. The
CPG company’s marketing executives were
surprised but trusted the results, even
though they didn’t understand the model.
Later, the company’s internal insights group
partnered with the marketing function and
built its own simplified model. The results
were markedly different: this model showed
ROI for paid-search ads to be 15 times lower
than what the vendor’s model estimated.
Further investigation revealed that one of
the external company’s analysts, who had
no knowledge of the business, had grouped
the data erroneously—a mistake that a business practitioner would have easily caught.
Moreover, the complexities of the vendor’s
model hid the error from view.
Turning insights into effective
frontline action
Gathering the right data and developing
transparent models, however, won’t yield
impact unless companies can also turn
data-driven insights into effective action
on the front line. Companies must define
new processes in a way that managers and
frontline workers can readily understand
and adopt. When a large CPG manufacturer
implemented a new demand-forecasting
system that generated automatic forecasts
of each retail customer’s inventory needs,
sales managers weren’t told that the new
process included shipping of safety stock to
every customer. Worried that their customers weren’t receiving adequate stock, sales
managers regularly overwrote the automatic forecasts. It took months before they
changed their behaviour and trusted the
new system. We see great potential for consumer-facing organisations that adopt big
data and advanced analytics as a platform
for growth. Done right, a data-and-analytics
initiative can yield outsize rewards for retailers and CPG companies alike.
—The article is published with prior permission
from Mckinsey Quarterly.
Department of Electronics & IT
Ministry of Communications & IT
Government of India
Department of Science & Technology
Ministry of Science and Technology
Government of India
11th INDIA KNOWLEDGE SUMMIT 2013
Cyber Era - securing the Future
14th – 15th October, 2013 – Hotel Shangri-La, New Delhi
ASSOCHAM India's Apex Chamber for Commerce & Industry was set up in 1920. Today the Chamber is proud to have more than 450,000
Companies as it's esteemed Member which includes many of the global technology companies.
ASSOCHAM is privileged to be a Member of the “Cyber Regulation Advisory Committee” set up by Ministry of Communications and
IT, and the Joint Working Group (JWG) on Cyber Security set up by the National Security Council Secretariat, Government of India.
The ASSOCHAM’s flagship program the Annual INDIA KNOWLEDGE SUMMIT, organized since 1999 has been Addressed in the past by
Noble Laureates, as distinguished ‘Key Note Speaker’ including – Dr. Craig Venter, Sir Harry Kroto, Prof. Aaron Ciechanover, Dr. Raj Reddy, Dr.
A P J Abdul Kalam, Dr. Kirsty Duncan, Prof. John A Pickett to name a few.
This year the 11th INDIA KNOWLEDGE SUMMIT is being organized from 14-15 October, 2013 in Hotel Shangri-La, New Delhi.
The Theme for this year’s Summit is “Cyber Era - Securing the Future”.
Who should Attend
•
•
•
•
•
•
Central Government
Officials
State Government
Officials
Police & Paramilitary
Departments
Enforcement &
Investigating Agencies
Banks and Financial
Institutions
Legal Experts
•
•
•
•
•
•
•
•
IT Software Companies
IT Hardware
Companies
BPO/ ITes
Telecom and Allied
Companies
Cyber Security
Companies
Consultants & Experts
Institutes
IT Security
•
•
•
•
•
•
Professionals
System Administrators
Database
Administrators
Data Privacy Specialists
Application Support
Personnel
Human Resources
Professionals
Operational
Technology Auditors
Why to attend
•
•
•
•
•
•
•
•
Compliance Officers
Corporate Security
Professionals
Civil Activist
Municipal Corporation
Utility Companies
NDMA
Railways
Hospitals
Airports
Petroleum & Natural
•
•
•
•
•
•
•
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Gas Company
Power Generation and
Distribution Companies
CTOs
CIOs
CSOs
IT Managers
Cyber Security
Researchers
PSUs
Scientists
Issues to be discussed
• Gain an insight into the IT incidents
• Understand how nations' premier companies are improving their
cyber security
• Address your questions to the best experts
• Find out how secure you are and what level and form of attack
could come in to you
• Review your level of security and readiness for penetration
• Align your security strategy with critical business and corporate
goals
• Obtain the latest update on state of art in digital treats in cyber
underground
• Utilize the full potential of cyber security
• Learn how to information awareness can minimize your risk
– Stay current on cyber security threats, vulnerabilities and
exploits
– Cost effective security training and peer networking
– Catch up on industry developments and check out vendor
displays
– Find help for information security issues
Technology Partner
For details log on:
fo
rD
Developing Cyber Security Standards
Sharing of best practices and guidelines.
Incident response mechanism.
Proactive threat & vulnerability management.
☞
Improving the Security of the Nation's
Critical Infrastructure
Information sharing between Government
and Private Bodies.
Development of Cyber Security Framework.
Provision of necessary budgetary support by
the Government.
•
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☞
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Improving Public- Private Information
Sharing and Information Security
Capacity Building in the Area of Cyber Crime
and Cyber Forensics.
Bringing innovation through R & D.
Strengthening Telecom Security.
Research & Content Partner
☞
•
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Ensuring Privacy & Civil Liberty
Protection
Compliance driven focus.
Adaptation of Cyber Security Policy.
Collaborative and Cross-Cutting
Approaches to Cyber Security
Capacity building in the area of expertise
and Judiciary.
More power to sectoral CERTs.
Establishment of cyber range to test cyber
readiness.
Staying Safe Online & Mobile Security
Beware of unknown communication.
Installation of regular updates.
Sharing/storing of less personal
information.
Strong password protection.
Supported By
ea
r
r
nt
Ce
e
☞
•
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ch
Knowledge Partner
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cy
igit
al Economy Poli
s
Re
www.assocham.org
www.facebook.com/aiks2013
For further information please contact:
Ajay Sharma
Senior Director
M: 9899188488
E: [email protected]
Varun Aggarwal
Joint Director
M: 9910613815
E: [email protected]
Sahil Goswami
Executive
M: 9871962311
E: [email protected]
Himanshu Rewaria
Executive
M: 9654251077
E: [email protected]
THE ASSOCIATED CHAMBERS OF COMMERCE AND INDUSTRY OF INDIA
5, Sardar Patel Marg, ChankyaPuri, New Delhi-110021 • Tel: +91-11-46550555 (Hunting Line) • Fax: +91-11-23017008/9
Stop being
consumed by
where you are...
...focus instead
on where you
want to be.
Are you at that stage in your career... when you start looking for something more.
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You’ve already come a long way, but it’s time to aim for the top - the pinnacle.
But scaling the next mountain is a big stretch. You need new skills.
You require new perspectives. You want to be a stronger leader.
The Pinnacle Programme will help you do all this - and more.
www.theleadershipinstitute.in
9.9 Mediaworx, B-118, Sector 2, Noida – 201 301, India Tel: +91 120 4010999
By Akhilesh Shukla
design by pradeep gnair
Illustration by Manav Sachdev
pay-per-use
In today's era of pay-per-use, are
longstanding relationships between CIOs and
traditional IT vendors in for a change?
T
he way IT is deployed by organisations has changed. Now, IT
is used more to enhance the business of the firm rather than
vendors selling hardware as mere boxes. Today, vendors are not
only responsible for timely delivery and implementation of the
project but also act as a strategic partners who are responsible for the
project to be successful. The relationship between the vendor and the
client has matured over the years.
C O V E R S T O R Y | p a y- p er - u se
1/14
#REASON
TO ATTEND
THE EVENT
changing phase
INTRODUCING IDEAS AWARDS
Celebrate ideas that
transform business
the vendor-client realtionship is witnessing a welcome change
with the vendor willingly becoming a strategic partner for the CIO
and bringing out innovative ways to grow business
R
ecently, technology major IBM announced
that the company has provided Jet Airways, one of the leading airlines in the
country, a comprehensive solution for
customer contact centre operations. The solution
included improved analytics capabilities as well as an
IT infrastructure upgradation.
Under this agreement, IBM will provide contact
center and back office services for the airline’s 11
lines of business covering its domestic and international reservations, Jet Privilege programme,
cargo, re-issues, refunds and helpdesk services. The
solution not only includes implementation of an
Interactive Voice Response (IVR) system to improve
“vendors are no longer responsible for
implementation of projects, but also meeting
the business needs of the company“
–Baskar Raj, CIO, FIS Global
28
July 07 2013
p a y- p e r - u s e | C O V ER S T O R y
2/14
#REASON
TO ATTEND
THE EVENT
“Patiently
planning for
business
eventualities
is very
important for
a CIO“
ment, cargo management, customer relationship
information system, aircraft maintenance and
operational systems, baggage reconciliation systems
and sales force automation. In simple terms, it
mean that IBM is providing strong technology backup to the airline. It would not be possible for Jet Airlines to strengthen their leadership position in the
Indian air space without IBM being a partner. This
example clearly shows the evolution of CIO-vendor
relationship.
Partnership helps
CIOs have realised that strategic partnership with
few large vendors can help them in improving
business. But this will only happen when a vendor
is willing to look beyond the conventional ways of
doing business. They have to work together, cocreate products and solutions for mutual and beneficial long-term relationship. This trend is slowly
and gradually picking up in India. We often hear
about such deals, but it is more often between a large
enterprises and a large vendor rather than medium
or small enterprises getting involved into it.
“The client vendor relationship has matured over
the years. The reason being today, organisations are
July 07 2013
29
IS YOUR IDEA THERE?
service levels but also advanced analytics technologies to provide increased revenue through insights
gained while managing the contact centre.
Jet Airways and JetKonnect together have over
25 percent of the domestic market share and
international operations across 20 destinations. Jet
Airways wanted to streamline its operations and
bring in technology to increase its flexibility and
scalability and gain competitive advantage. IBM
will also restructure Jet Airways' existing contact
centre personnel. With the new system in place, Jet
Airways is expecting a revenue increase of Rs 20
crore, besides substantial cost savings.
The IBM- Jet Airways deal highlights the changing relationship of a vendor and a client. IBM is
not just a vendor to Jet-Airways, but a strategic
partner. Both are working together for more than
three years now where in IBM provides a host
of services to Jet Airways, including data centre
operations, end-user services, central helpdesk,
network management services, server storage
operation, and security services. In addition, IBM
is responsible for application management services for the carrier including ERP, flight operations,
revenue management, roster and crew manage-
Unveiling of
Wall of Ideas
–Umesh Mehta, CIO, Jubilant
C O V E R S T O R Y | p a y- p er - u se
3/14
#REASON
FIND OUT WHY?
We refuse to give you
a printed agenda this year
TO ATTEND
THE EVENT
“Price of course is a very important thing
but that is not the only thing. We look for
vendors having strong credentials“
–Manorajan Kumar, CIO Kanoria Chemicals
deploying technology solutions and applications,
to support businesses, rather than only upgrading
hardware. For creating such solutions and applications a vendor needs to sit with the client to understand the nature of business and requirements. In
such scenarios, the relationship is bound to change.
They are no longer responsible for implementation
of projects, but also meeting the business needs
of the company. This means that now we can treat
them as our strategic business partner,” says Bhaskar Raj, CIO, FIS Global.
Raj, while finalising a vendor, looks for long-term
relationships. He prefers to have at least a threeyears vision while working with a vendor. “Information technology is dynamic. We do not know
how it would change after three years. But a threeyears vision is must for working with a vendor. Otherwise I find it not worth considering,” he feels.
Cloud Computing
Every new technology has to battle its way out
among the existing technologies in the market.
CIOs, initially, were skeptical about adopting these
new technologies. They look for case studies, testimonials before taking the risk of implementing it
30
July 07 2013
in the organisation. Similarly, cloud computing has
had its own share of battle, primarily due to a number of potentially damaging misconceptions. One of
the key concerns for the CIOs is that cloud services
have less secure environment built-in compared to
any traditional solutions available in the market. Due
to security reasons, CIOs, while selecting a vendor
for their organisations, take extra precautionary
measures. Such things have taken the relationship
between the vendor and the client to a different level.
The conversation begins largely with the CIOs not
trusting the vendor. In many cases organisations
alter selection process for cloud vendor. They crosscheck, verify and meet numerous vendors before
taking the final decision.
Vendor-client trust, like any business relationship, is crucial for security and performance of any
product and services, especially on the cloud. However, some of the CIOs agree that there is no need
to to reinvent the wheel.
“Patiently planning for business eventualities and
proper division of responsibility between both the
parties will result in required accountability to help successful implementation of any cloud-based solution”
says Umesh Mehta, CIO-India, Jubilant Life Science.
p a y- p e r - u s e | C O V ER S T O R y
E-Procurement
In this era when people network socially online,
the procurement process has also gone online.
Gone or the days where IT vendor had to create
a good image with the CIO or someone within
the IT team to know the purchasing requirements of the company. Large organisations have
already created a portal or developed an application for the procurement process of the organisation. They have a vendor selection process in
which they formally authenticate the vendor to
do business with the organisation. Once done,
these vendors have access to the applications or
vendor portal where they get to know about the
requirements of the organisation. They can bid
or re-bid for any project.
“The entire process is open for everyone and
its quite transparent also. A vendor can see what
other vendors have quoted as their price and
can think of offering better prices. It saves a lot
of time for us and helps the vendors too,” says
Manorajan Kumar, CIO Kanoria Chemicals.
“Price of course is a very important thing but
that is not the only thing. We look for vendors
who have strong credentials and his work experience in that particular domain. We can not
afford to risk the entire implementation just to
save some money,” he affirms.
Start-ups and Tier II vendors
As the cost of currency is increasing, following
the global economy scenario, CIOs are willing
to look beyond established multinational vendors having global presence. Besides, some of
the start-ups and Tier II vendors are offering
innovating and cost-effective solutions.
“We have realised that even the bigger vendors outsource a part of the product or solution
from Tier II and start up companies. So we have
decided to out-source some of the small budget
projects to these companies. Once we started
trusting them, we can consider them for big
projects as well,” says Kumar.
These vendors are willing to go that extra
mile to please their clients or the CIOs. This
again puts pressure on the larger vendors, who
generally prefer to stick to the rule books or
the SLAs. Now, even they have to look beyond
the agreed SLAs.
The vendor-client relationship has matured
over the last few years. But still it has a long
way to go. Some of the vendors are not willing
to look beyond their targets and conventianal
way of functioning. They promise everything
on the earth when it comes to selling the
product, but often such promises fizzle out
post-implementation. Issues of not delivering
the product on time are often reported. On his
part, a CIO and his organisation have to speak
in the same languages so that the vendor is
not confused. They have to clearly spell out the
requirements and expectations from an implementation.
The road ahead for a CIO and his vendor is to
work together and co-create product and solutions for mutual benefits.
July 07 2013
31
4/14
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TO ATTEND
THE EVENT
We will help you
decipher the cryptic DSLR
Similarly, models like pay-per-use have altered
the age-old relationship between the vendors and
the enterprises. Vendors know that price strategy plays a key role in determining success of
Software-as-a-Service (SaaS). One of the primary
category is pay-per-use, where each time a user
uses the software, vendor charges an agreed
amount. This is a very different approach from
fixed pricing. Such model often brings the
CIOs and the vendor on negotiating table. The
frequency of such meetings are usually on a
monthly basis. Besides, the vendor has to justify
price according to the frequency of usage of the
product. If the product is a valuable piece of
software that would be used only once or twice
a month by an organisation, than a CIO would
prefer to pay less, no matter what the cost of the
product is. However, if the product is frequently
used, a CIO might prefer to pay a fixed fee.
This type of model again changes the vendorCIO relations. Both of them would be profoundly engaged for a longer period of time.
The model gives a little bit of edge to the CIO
in terms of service delivery and billing, as theoretically he has an option to move to another
service provider if things doesn't work to his
expectations. However, CIOs still look for longterm engagement with a vendor.
Mehta says, “Theoretically it sounds good that
we can migrate to any service provider. But it is
easier said than done. To migrate from one vendor to another, it is a tedious job and cost to the
company. That is why even in pay-per-use model
we look for long-term relationships with the
vendor.” Jubilant Life Science has subscribed to
the pay-per-use model for its ERP solutions.
However, some of the CIOs are skeptical in
using pay-per-use model, as it is complex to
define the usage of the product. Besides, it is
unpredictable and uncontrollable. Some of the
CIOs find it difficult to prevent an unexpected,
unbudgeted bill at the end of the month.
PHOTOGRAPHY WORKSHOP!
Pay-per-Use
C O V E R S T O R Y | p a y- p er - u se
5/14
#REASON
YOUR SPOUSE DESERVES THE HASSLE FREE
TWO-NIGHTS-THREE-DAYS GETAWAY
Bring them along!
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Vendors and CIOs are
co-creating solutions
Arup Roy, Research Director, Gartner, in an interaction
with Akhilesh Shukla, discusses the evolution of IT
vendor-CIO relationship and what lies ahead
How do you see the vendor-CIO
relationship changing over the last few
years?
For the last five to six years, the relationship
between the vendor and the CIO has evolved a lot.
The relationship is getting much more stronger
due the fact that today IT is evolving very fast
and growing the business is the primary target of
the CIO. Earlier, the consumption was more of
32
July 07 2013
standalone hardware but now the large IT deals
are happening for complete IT solutions. Often
these solutions are customised and are made
to strengthen the business needs of the organisation. As a result, the vendor and the CIO
relationship has matured. Vendors are no longer
selling only hardware boxes. These days they
sit with the client and co-create the solutions to
meet the business demands. Payment, in some
p a y- p e r - u s e | C O V ER S T O R y
How important is it to treat your vendor
as a strategic partner?
As I said earlier, that the relationship between
vendor and partner is not just about deploying
a technology or selling a product and meeting
the numbers. These days the vendor and the
CIO are co-creating and both are learning with
each others’ experience. The outcome of the
implemention is important for both of them, as
the performance of the CIO as well as the payment of vendors often depends on the business
outcome of the solutions. The risk involved in
the co-creation of the solutions is shared by
both the vendor and the client. The outcome
is bound to have a affect on both of them, be
it positive or negative. It is the organisation
that speaks to the client in the same language.
These days the vendor and the organisation
use a single interface to interact with each
other. It reduces the risk of confusion and
The price of the contract may be an
important consideration, but certainly
isn't the only one. What are you thoughts on
this issue?
In this era of economic uncertainty the cost
of currency has increased. Organisations are
investing money where they see value and faster
(Return on Investment) ROI. So, money still
plays a big role. But it would not come until and
unless the client sees a value in the investment.
This value is often seen in financial terms. Even
the payments are made in some of the large IT
deals post the business result. If the outcome
does not meet the expectations of the client, then
it is bound to impact the payment of the vendor.
A vendor therefore has to ensure that all the
expectation are met. So money plays a key role but
it is not the only thing.
Do you agree with the statement that
CIOs who choose to stick only with large
vendor often miss out on tremendous
opportunities offered by going with smaller to
mid-tier players?
The large organisations that have a global foot
print have a reason to go with the safer vendors.
Often their investments are huge and across the
globe. So they could not risk and play a gamble
with the smaller players. Besides, they need vendors having a global presence, which the Tier-II or
start-ups lack. But some of the CIOs have started
exploring these Tier-II and start-up organisations. They start with them for smaller product
and services. If the results are positive then they
started trusting them for bigger implementations
as well. Often it helps CIOs to save money and get
first-hand experience on some of the innovations.
Besides, it helps the Tier-II vendors and start-up
companies to grow much faster.
How you see the future relationship
between the CIO and the vendor evolving
over the next few years?
The relationship between vendor and clients
will continue to improve. The eco system like
evolution of pay-per-use and cloud computing
will also push the CIO and the vendor closer.
They will continue to co-create the products and
solutions and soon the distance between them
will start shrinking.
July 07 2013
33
6/14
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THE EVENT
Ready to step into the
shoes of a CEO/CMO/CFO?
Do most of the organisations have a
proper vendor management process in
place? Tell us how a robust vendor
management system helps an organisation?
Globally we see that large organisations do have
a vendor management team and process in
place. However, in India we have started seeing
the vendor selection and purchase process
being put in place. Earlier, there was no separate
vendor management team. The procurement
team did all the purchasing and the selection
the vendors. Not having a proper management
team in place causes misuse of resources in
the organisation. A client has to do micro
management as well. Often the internal highlypaid employees are just taking care of the third
party infrastructure and resources. Even some
of the clients are involved in the hiring and
appraisal process of the vendor resources. This
is besides traning them as well. Both the client
and vendors have to cover a lot of distance, as far
as vendor management is concerned in India.
helps in improving the outcome. Here it is very
imporant to have SLAs properly defined. The
CIO should take inputs for all the departments
before finalising the SLAs.
THE ROLE-PLAY CHALLENGE - STRATEGYM!
of the large IT deals are calculated, based on
the business out come. Vendors act as strategic
business partners of the client and are responsible for the business outcome as well. However,
this relationship has problems as well. The CIO
often do not like to take the complete ownership
of the deployment. They involve their management in the process. Even the SLAs are not well
defined. Some of the CIOs do not link the solutions deployed with the business outcome which
often leads to conflicts.
TECH FOR
GOVERNANCE
7/14
#REASON
Is Traditional
Security Enough?
Organisations should look for a service that
operates a global threat intelligence facility
34
July 07 2013
image by photos.com
JOIN US FOR IDEAS CAFÉ
Solving problems
by talking!
TO ATTEND
THE EVENT
S ec u r i t y | T E C H F O R G O V E R N A N C E
8/14
#REASON
Attacks and malware are skyrocketing. Security threats
TO ATTEND
THE EVENT
have become increasingly complex, sophisticated and targeted,
conducted over multiple threat vectors in combination—and no
organisation is immune. The AV-TEST Institute states that it now
registers more than 200,000 new malicious programmes every day,
with almost 100 million malicious programmes seen in 2012.
The three vectors for malware entry into an organisation are email, web and endpoint. As traditional
attack methods leveraging just one vector in isolation, such as emails with malicious attachments,
have lost their effectiveness considerably, attackers
have been forced to change tactics.
Today, they are finding it more effective to use an
exploit that blends email and web threat vectors.
The goal is to proactively prevent threats and not
play catch up to attackers.
Consider a variety of security controls that
include email, web and endpoint security solutions to be used in combination as one unified
system in order to be able to defend against
blended threats. The unified system should provide one centralised management console for
administering and managing the security solutions, with one set of security policies enforced
across all components. This will ensure that security is comprehensively enforced across email,
web and endpoint security controls so that there
are no gaps in protection.
One further factor that organisations need to consider
is the need to develop increasingly complex security
policies to take into account the growing burden of
corporate governance and regulatory requirements
that demand that sensitive corporate data is accessed,
processed and stored in a secure manner.
Those policies need to be consistently applied and
enforced across an ever wider range and number
of computing devices and operating platforms to
ensure the protection is uniformly applied.
Having a centralised security console that automates reporting and simplifies policies will save IT
teams time and the headache of dealing with compliance reporting and audits.
It ultimately frees up needed time and resource
which can be spent on being more proactive on
security measures opposed to reactive when something bad happens.
Explore cloud-based options for flexibility.
One of the shortcomings of traditional security
controls is that they were largely designed to protect on-premise users and applications. Organisations now wish to support the productivity gains
and flexibility to work from anywhere that mobile
technologies enable, yet few traditional security
controls provided support for users accessing
resources via mobile devices.
By placing security controls into the cloud, access
is afforded for all users, wherever they are, whenever they want and from whatever device they wish
to use to connect to the resources that they require
to use.
This makes it essential that the system chosen
provides support for a wide range of devices and
July 07 2013
35
At the CEO Debate
Integrated multi-layered security
approach
Don’t let compliance be your burden.
YOU QUESTION… THEY ANSWER - THE SENIOR LEADERS
OF TECHNOLOGY COMPANIES COME TOGETHER TO
ANSWER YOUR QUESTIONS…
Relying on traditional security measures to catch
the bad guy in action or prevent being the victim of
a breach doesn’t cut it in today’s threat landscape,
and IT teams don’t have the time and resources to
address each threat vector in isolation, nor should
they have to. Integration, automation and flexibility
are today’s security commandments maximising
resource and workforce efficiency and effectiveness without worrying the finance department.
Consider the following when designing and/or
implementing your new take a security measures
at work.
T E C H F O R G O V E R N A N C E | S ec u r i t y
9/14
#REASON
PARTICIPATE IN THE GREAT IDEAS CONTEST
Innovate around great
solutions and win prizes
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THE EVENT
regarding the latest threats and malicious
operating systems, going beyond
websites from sources world- wide, includthe traditional focus on Windows
ing from their own customers and specialoperating systems. Additionally,
ised sources.
although traditional reactive antiAs new threats are encountered they can
malware controls still have their
place in guarding against known
will be the gorwth of be blocked before they reach customers
and, as countermeasures are developed,
threats, cloud-based services can
worldwide security
these can be sent out to all customers of
provide a higher level of proactive
market in 2013
the service automatically as soon as they
defense by providing protection
are available.
against new so-called zero day
threats and advanced threats that
use blended attack mechanisms
and vectors of attack.
— This article is printed with prior permission from
Organisations should look for a service that
www.infosecisland.com. For more features and opinions
operates a global threat intelligence facility coveron information security and risk management, please
ing both web and email security, collecting feeds
refer to Infosec Island.
9%
Reality Check
Disclosures of cybersecurity breaches are
constant and IP stolen is staggering
W
e are connecting digital intelligence to our
homes, businesses, critical infrastructure
and national defense at such staggering
rates that we had to come up with methods of collecting "big data." Individuals
now have the ability to access terabytes of information,
millions of apps and thousands of devices that have the
potential of activating critical processes at the touch of
a screen. Security has been a continual afterthought
even in areas as sensitive as our power grid. Even when
security is responsibly deployed, breaches still happen,
disclosing the weaknesses of current security solutions.
There is no one-size-fits-all in cyber solutions. Instead,
the best of the pieces are assembled to achieve the best
possible security. Here are some good pieces of the
security puzzle that when put together, offer resolution
to the big problems faced today in cyberattacks.
Securing the End Points
Whether you want to secure your private conversations or a corporate database, you must first
36
July 07 2013
have a way to authenticate the human or machine
initiating action. Sadly, this needs a lot of work.
Fortunately, there is a lot of available technology to
choose from.
With the password being just about dead, companies are reaching for other ways to effectively
authenticate and validate this all-important initial
process: access. From biometric human authentication to encrypted nano-sensors offering machine
location-based identifiers, we have the technologies to securely authenticate the start of just about
anything. With the computing power and popularity of BYOD, the smart phone may be the go-to
personal control device that will multiply security
access privileges under a single authentication. We
are now just beginning to deploy apps and chip
sets supporting these authentication capabilities.
When we communicate to a machine, the security
beginning and end point is not a port or cable connected to some device. The points are often very
complex microchips with coded processes within
S ec u r i t y | T E C H F O R G O V E R N A N C E
The most common solution of moving secured
information over the Internet is through Virtual Private Networks (VPN). A VPN extends a
private network across public networks like the
Internet by establishing a virtual point-to-point
connection through the use of dedicated connections or encryption. These techniques add
security to the information flow but are expensive and still have security vulnerabilities. Realizing these costs and the security concerns with
VPNs, a team at STTarx developed a method
of truly protecting data-at-rest and data-inmotion and also masking transmissions. Their
networks are stealthy and impenetrable and
messaging is immune to illicit decryption. This
technique offers an economic and secure method of passing data through the Internet. Curt
Massey, the CEO of STTarx Shield, explains this
unique process. "We never accepted the common wisdom that networks must always be vulnerable or that messaging must rely on increasingly complex and cumbersome encryption
algorithms that would eventually be broken.
We used a fundamentally different approach
to solving both issues. Every pen tester for a
period of years has walked away scratching
their heads due to complete failure to either
penetrate our networks or even capture our
traffic. Those to whom we have given sample
STTarx traffic have been completely unsuccessful in decrypting it. We enable other solutions
to focus on protecting the internal network."
Securing the Process
Today we connect multiple levels of people,
applications, software, hardware and networks
to our enterprise, control systems and cloud
computing. There are so many layers that we
are beginning to lose control of what the business process and software logic action is sup-
10/14
#REASON
posed to be doing, even though it is secured
and authenticated. This is why recent exploit
attacks have been directed without detection
toward system process software, not just networks and databases. We need a method of
real-time viewing, auditing and even blocking
multiple simultaneous process actions. Rajeev
Bhargava, CEO of Decision-Zone found this
same problem when trying to debug software
programs which led him to the unique use of
graphical anomaly detection as a new method
of intrusion detection security. This is how he
explains it. "The conventional view of security
is primarily aimed at securing an organization’s assets, including facilities, goods, IT
infrastructure and information silos. However,
the characteristics of the threat environment
organisations are exposed to are changing.
Whereas in the past solitary intruders sought
entry into an organisation's network and facilities and created minor damage; nowadays these
attacks originate from highly organised groups
and are aimed at obtaining services or money
by disrupting or diverting the victim’s normal
business operations. Sometimes this is an
authorised and authenticated insider.
"Processes, by nature, consist of a number of
tasks performed by different individuals, usually
within different departments," said Bhargava,
"making them vulnerable to mistakes, misunderstandings, miscommunications and abuse. A
business process consists of a set of logically interrelated tasks, intended to generate an output beneficial to the organisation. A process aims to create
higher-value output from lower-value input, at a
cost that is lower than the increase in value of the
generated product. These processes have extreme
value to a company and often are the reason they
have a competitive edge.
— This article is printed with prior permission from
www.infosecisland.com. For more features and opinions on information security and risk management,
please refer to Infosec Island.
July 07 2013
37
TO ATTEND
THE EVENT
Join us for the
Manganiyar Night
Securing Data in Motion
The most common
solution of moving
secured information
over the Internet is
through Virtual Private
Networks
THE TRIBES OF RAJASTHAN WILL ENTICE YOU WITH
THEIR MESMERIZING MUSIC
themselves. These trusted computer chips like
BYOD devices can become part of the solution
in cybersecurity -- and part of the problem. Don
Thompson, CEO of MerlinCryption explains
the potential threat of microchip foul play in
cybersecurity. "Embedding malicious code or
'back doors' into microchips is a growing trend
in espionage," says Thompson, "The rogue chip
conspiratorially communicates critical intelligence back to its criminal host. It is paramount
to procure only tamper-proof USA-made chips
to be used in developing the circuit board, then
reinforce the device with robust encryption.”
NEXT
11/14 HORIZONS
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image by photos.com
JEFF SAMPLER, DISHAN KAMDAR, HARVEY KOEPPEL
WE HAVE HEARD THEM ALL
Get inspired by transformational
speakers this year.”
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Top IT-enabled
Business Trends
A look at some pivotal trends that loom
large on the top-management agenda
of CIOs
By Jacques Bughin, Michael Chui, and James Manyika
38
July 07 2013
m a n a g e m ent | N E X T H O R I Z O N S
July 07 2013
39
TO ATTEND
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Be a part of the SIT
Innovation Workshop
2%
12/14
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INNOVATE ISRAELI ISHSTYLE!
T
thing as a service. The creeping automation of
hree years ago, we described some informaknowledge work, which affects the fastest-growing
tion technology–enabled business trends
employee segment worldwide, promises a new
that were profoundly altering the business
phase of corporate productivity. Finally, up to three
landscape. The pace of technology change,
billion new consumers, mostly in emerging marinnovation, and business adoption since
kets, could soon become fully digital players, thanks
then has been stunning. Consider that the world’s
chiefly to mobile technologies. Our research sugstock of data is now doubling every 20 months; the
gests that the collective economic impact (in the
number of Internet-connected devices has reached
applications that we examined) of information tech12 billion; and payments by mobile phone are hurnologies underlying these four trends could range
tling toward the $1 trillion mark.
from $10 trillion to $20 trillion annually in 2025.
This progress both reflects the trends we
The next three trends will be most familiar to
described three years ago and is influencing their
digital marketers, but their relevance is expanding
shape. The article that follows updates our 2010 list.
across the enterprise, starting with customer-experiIn addition to describing how several trends have
ence, product, and channel management. The integrown in importance, we have added a few that
gration of digital and physical experiences is
are rapidly gathering momentum, while removing
creating new ways for businesses to interact with
those that have entered the mainstream.
customers, by using digital information to augment
The dramatic pace at which two trends have been
individual experiences with products and services.
advancing is transforming them into 21st-century
Consumer demand is rising for products that are
business “antes”: competitive necessities for most if
free, intuitive, and radically user oriented. And the
not all companies. rapid evolution of IT-enabled commerce is reducing
Big data and advanced analytics have swiftly
entry barriers and opening new revenue streams to
moved from the frontier of our trends to a set of
a range of individuals and companies.
capabilities that need to be deeply embedded across
Finally, consider the extent to which government,
functions and operations, enabling managers to
education, and health care—which often seem outhave a better basis for understanding markets and
side the purview of business leaders—could benefit
making business decisions. Meanwhile, social techfrom adopting digital technologies at the same level
nologies are becoming a powerful social matrix—a
as many industries have.
key piece of organisational infrastructure that links
Productivity gains could help address the imperaand engages employees, customers, and suppliers
tive (created by aging populations) to do more with
as never before.
less, while technological innovation could improve
Implicit in our earlier work, and explicit in this
the quality and reach of many services. The embrace
update, is a focus on information and communicaof digital technologies by these sectors is thus a trend
tion technologies. Other forms of technology are
of immense importance to business, which indirectly
changing, too, of course, and as we’ve been updating
finances many services and would benefit greatly
this list, we’ve also been conducting new research on
from the rising skills and improved health of citizens
the most disruptive technologies of all types. Four
everywhere.
of the trends described here reflect IT disruptions
elaborated in that separate but related research, which
encompasses fields as wide-ranging as genomics and
Joining the social matrix
energy and materials science. Social technologies are much more than a conThe Internet of All Things, the linking of physical
sumer phenomenon: they connect many organisaobjects with embedded sensors, is being exploited at
tions internally and increasingly reach outside their
breakneck pace, simultaneously creatborders. The social matrix also extends
ing massive network effects and opporbeyond the cocreation of products and
tunities. “The cloud,” with its ability to
the organisational networks we examdeliver digital power at low cost and in
ined in our 2010 article. Now it has
small increments, is not only changing
become the environment in which more
the profile of corporate IT departments
and more business is conducted. Many
but also helping to spawn a range of
organisations rely on distributed probwill be the growth
new business models by shifting the
lem
solving, tapping the brain power of
of global it spending
economics of “rent versus buy” tradecustomers
and experts from within and
in 2013
offs for companies and consumers. The
outside the company for breakthrough
result is an acceleration of a trend we
thinking. Pharmaceutical player
identified in 2010: the delivery of anyBoehringer Ingelheim sponsored a
N E X T H O R I Z O N S | m a n a g e m ent
13/14
#REASON
Let’s get Social
VAST NETWORKING OPPORTUNITIES AT THE
14TH ANNUAL CIO&LEADER CONFERENCE
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competition on Kaggle (a platform for data-analysis
contests) to predict the likelihood that a new drug
molecule would cause genetic mutations. The winning team, from among nearly 9,000 competitors,
combined experience in insurance, physics, and
neuroscience, and its analysis beat existing predictive methods by more than 25 percent.
In other research, we have described how searching
for information, reading and responding to e-mails,
and collaborating with colleagues take up about 60
percent of typical knowledge workers’ time—and how
they could become up to 25 percent more productive
through the use of social technologies. Global ITservices supplier Atos has pledged to become a “zero
e-mail” company by 2014, aiming to boost employee
productivity by replacing internal e-mail with a collaborative social-networking platform.
Companies also are becoming more porous,
able to reach across units speedily and to assemble
teams with specialised knowledge. Kraft Foods, for
example, has invested in a more powerful socialtechnology platform that supports microblogging,
content tagging, and the creation and maintenance
of communities of practice (such as pricing experts).
Benefits include accelerated knowledge sharing,
shorter product-development cycles, and faster
competitive response times. Companies still have
ample running room, though: just 10 percent of the
executives we surveyed last year said their organisations were realising substantial value from the use
of social technologies to connect all stakeholders:
customers, employees, and business partners.
Social features, meanwhile, can become part of
any digital communication or transaction—embedded in products, markets, and business systems.
Users can “like” things and may soon be able to
register what they “want,” facilitating new levels of
commercial engagement. Department-store chain
Macy’s has used Facebook likes to decide on colors
for upcoming apparel lines, while Wal-Mart Stores
chooses its weekly toy specials through input from
user panels. In broadcasting, Europe’s RTL Group is
using social media to create viewer feedback loops
for popular shows such as the X Factor. A steady
stream of reactions from avid fans allows RTL to
fine-tune episode plots.
Indeed, our research suggests that when social
perceptions and user experiences (both individual
and collective) matter in product selection and
satisfaction, the potential impact of social technologies on revenue streams can be pronounced.We are
starting to see these effects in sectors ranging from
automobiles to retailing as innovative companies
mine social experiences to shape their products and
services.
40
July 07 2013
Competing with ‘big data’ and
advanced analytics
Three years ago, we described new opportunities to
experiment with and segment consumer markets
using big data. As with the social matrix, we now
see data and analytics as part of a new foundation
for competitiveness. Global data volumes—surging from social Web sites, sensors, smartphones,
and more—are doubling faster than every two
years. The power of analytics is rising while costs
are falling. Data visualisation, wireless communications, and cloud infrastructure are extending the
power and reach of information.
With abundant data from multiple touch points
and new analytic tools, companies are getting
better and better at customising products and services through the creation of ever-finer consumer
microsegments. US-based Acxiom offers clients,
from banks to auto companies, profiles of 500 million customers—each profile enriched by more than
1,500 data points gleaned from the analysis of up to
50 trillion transactions. Companies are learning to
test and experiment using this type of data. They are
borrowing from the pioneering efforts of companies
such as Amazon.com or Google, continuously using
what’s known as A/B testing not only to improve
Web-site designs and experiences but also to raise
real-world corporate performance. Many advanced
marketing organisations are assembling data from
real-time monitoring of blogs, news reports, and
Tweets to detect subtle shifts in sentiment that can
affect product and pricing strategy.
Advanced analytic software allows machines to
identify patterns hidden in massive data flows or
documents. This machine “intelligence” means that a
wider range of knowledge tasks may be automated at
lower cost (see the fifth trend, below, for details). And
as companies collect more data from operations, they
may gain additional new revenue streams by selling
sanitised information on spending patterns or physical activities to third parties ranging from economic
forecasters to health-care companies.
Despite the widespread recognition of big data’s
potential, organisational and technological complexities, as well as the desire for perfection, often
slow progress. Gaps between leaders and laggards
are opening up as the former find new ways to test,
learn, organise, and compete. For companies trying
to keep pace, developing a big-data plan is becoming
a critical new priority—one whose importance our
colleagues likened, in a recent article, to the birth of
strategic planning 40 years ago.
Planning must extend beyond data strategy to
encompass needed changes in organisation and
culture, the design of analytic and visualisation
m a n a g e m ent | N E X T H O R I Z O N S
Tiny sensors and actuators, proliferating at astounding rates, are expected to explode in number over
the next decade, potentially linking over 50 billion
physical entities as costs plummet and networks
become more pervasive. What we described as
nascent three years ago is fast becoming ubiquitous,
which gives managers unimagined possibilities to
fine-tune processes and manage operations.
Through FedEx’s SenseAware program, for
example, customers place a small device the size of
a mobile phone into packages. The device includes a
global positioning system, as well as sensors to monitor temperature, light, humidity, barometric pressure,
and more—critical to some biological products and
sensitive electronics. The customer knows continuously not only where a product is but also whether
ambient conditions have changed. These new datarich renditions of radio-frequency-identification
(RFID) tags have major implications for companies
managing complex supply chains.
Companies are starting to use such technologies to
run—not just monitor—complex operations, so that
systems make autonomous decisions based on data
the sensors report. Smart networks now use sensors
to monitor vehicle flows and reprogram traffic signals accordingly or to confirm whether repairs have
been made effectively in electric-power grids.
New technologies are leading to what’s known as
the “quantified self” movement, allowing people to
become highly involved with their health care by
using devices that monitor blood pressure and activity—even sleep patterns. Leading-edge ingestible sensors take this approach further, relaying information
via smartphones to physicians, thereby providing
new opportunities to manage health and disease.
Offering anything as a service
The buying and selling of services derived from
physical products is a business-model shift that’s
gaining steam. An attraction for buyers is the
opportunity to replace big blocks of capital investment with more flexible and granular operating
expenditures. A prominent example of this shift is
the embrace of cloud-based IT services. Cosmetics maker Revlon, for example, now operates more
— Jacques Bughin is a director in McKinsey’s Brussels
office
— Michael Chui is a principal with the McKinsey
Global Institute (MGI) and is based in the San Francisco office
— James Manyika is a director of MGI and is also
based in the San Francisco office.
— The article is printed with prior permission from
McKinsey Quarterly.
July 07 2013
41
14/14
#REASON
TO ATTEND
THE EVENT
Welcome to the Fairmont, Jaipur
Deploying the Internet of All Things
than 500 of its IT applications in a private cloud
managed by an external provider. It saved $70 million over two years, and when one data center in
Venezuela was hit by a fire, the company was able to
shift operations to New Jersey in two hours. Moves
like this, which suggest that cloud-delivered IT can
be reliable and resilient, create new possibilities for
the provision of mission-critical IT through external
assets and suppliers.
This model is spreading beyond IT as a range of
companies test ways to monetize underused assets
by transforming them into services, benefitting corporate buyers that can sidestep owning them. Companies with trucking fleets, for instance, are creating new B2B businesses renting out idle vehicles by
the day or the hour.
And a growing number of companies with excess
office space are finding that they can generate revenue by offering space for short-term uses.
The Los Angeles Times has rented space to film
crews, for example. Cloud-based online services are
feeding the trend both by facilitating remote-work
patterns that free up space and by connecting that
space with organisations which need it.
Other companies are seizing opportunities in consumer markets. Online services now allow rentals of
everything from designer clothing and handbags to
college textbooks.
Home Depot rents out products from household
tools to trucks. IT that can track usage and bill for
services is what makes these models possible.
While we and others have written about the
importance of cloud-based IT services for some
time, the potential impact of this trend is in its early
stages. Companies have much to discover about
the efficiencies and flexibility possible through
reenvisioning their assets, whether that entails
shifting from capital ownership to “expensed” services or assembling assets to play in this arena, as
Amazon.com has done by offering server capacity
to a range of businesses. Moreover, an understanding of what’s most amenable to being delivered as
a service is still evolving—as are the attitudes and
appetites of buyers. Thus, much of the disruption
lies ahead.
EXPERIENCE THE BEAUTIFUL MÉLANGE OF
COLORS OF RAJASTHAN AND ULTRA-MODERN,
LUXURIOUS AMBIENCE OF A SEVEN STAR
tools frontline managers can use effectively, and the
recruitment of scarce data scientists (which may
require creative approaches, such as partnering
with universities). Decisions about where corporate
capabilities should reside, how external data will
be merged with propriety information, and how to
instill a culture of data-driven experimentation are
becoming major leadership issues.
IT MAY BE TIME
TO TAKE YOUR HEAD OUT
OF THE GROUND.
photo credit: getty images
2012 - INDIA IS STILL
HOME TO 41% OF THE
WORLD'S POOREST.
For India to truly change, we need to address this issue.
PRADAN is powered by the belief that the best minds
in the country need to work at the grassroots to change
the face of poverty in India. Their teams have been
working with endemically poor communities for 30
years with some amazing results.
Their focus is to work with women and tribal
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have introduced models, which have helped entire
communities find livelihoods and emerge from poverty.
They have touched over 1 million people, changing
their lives in a range of ways – from ensuring food and
livelihood, to creating choice and dignity.
They pictured the change. And changed the picture.
It may be time to take your head out of the ground.
Donate now to help change the picture. For any further
information on how you can help, please visit 30.pradan.net
or send an email to [email protected]. You could choose
to either make a personal donation or join hands with
PRADAN as part of your CSR initiatives.
PROFESSIONAL ASSISTANCE
FOR DEVELOPMENT ACTION
picture the change | change the picture
9.9 Media supports PRADAN.
N O H O L D S B A R R E D | D an S p r i n g er
DOSSIER
Company:
Responsys
Established:
1998
Went Public:
20111
Partners:
Adobe, Salesforce.
com, CalmSea, IBM
Coremetrics, Return
Path, etc
channel
partners:
SimpleFeed
Velti
The era of
Relationships
In an interaction with CIO&Leader, Dan Springer, Chairman and CEO,
Responsys, talks about the importance of relationships and believes companies
that succeed will be those who can create and maintain individual relationships
at massive scale
46
July 07 2013
D a n S p r i n g e r | N O H O L D S B ARRE D
How is the market for SaaS in
India? What benefits and challenges do India CIOs see in SaaS?
According to Gartner, the public cloud services market in India is expected to grow
36 percent in 2013 to total $443 million,
up from $326 million in 2012. Agility, low
cost of investment, quick implementation
and being cost effective and efficient are
some of the primary benefits associated
with SaaS. Data security continues to be
a primary concern amongst CIOs when it
comes to deploying SaaS solutions. The
other significant concerns with SaaS are
latency issues, total dependency on the
internet and integration with system
applications.
How can Indian enterprise technology decision makers leverage
Responsys for enabling growth for their
enterprises?
Responsys is a leading provider of marketing cloud software and services that
enable companies to deliver the right
marketing to their customers across the
digital channels of email, mobile, social,
display and the web. Companies who are
typically large enterprises leverage our
technology to target their customers with
offers and promotions that are highly relevant and personalised. We’ve found that
applying an individualised, relationshipbased approach at massive scale drives
increased revenue, improved customer
engagement and higher long-term customer value for our clients. Our technology platform, called Interact Marketing
Cloud, is a platform built for the relationship era of marketing and is architected
around the customer. We start by building
profiles of customers with rich data. We
then help marketers design experiences
that unfold over each customer’s lifetime. And finally, out of those individual
experiences come personalised messages
and offers.
Can you share a few examples of
how some of your top clients have
benefited from associating with you?
We help marketers manage their digital
relationships and deliver the right marketing to their customers across email,
mobile, social, display and the web. By
partnering with us, our customers can
see increased revenue, improved customer engagement and higher long-term
customer value. For example, by working
with us to layer display retargeting on
top of their email reminder programme,
Dollar Thrifty Automotive Group saw a
22 percent increase in revenue and 47x
improvement in ROI. By cleaning its
email list and creating a strategy with
Responsys to reengage its subscribers,
EPSON achieved a 25 percent increase
in conversions.
“We’re seeing
incredible
enthusiasm and
excitement for
cloud technology,
particularly
marketing cloud
technology.”
What are the top three trends in
enterprise technology?
The future of enterprise technology is
absolutely in the cloud. According to
Gartner Research, more than 60 percent
of all enterprises will have adopted some
form of cloud computing in 2013. We’re
seeing incredible enthusiasm and excitement for cloud technology, particularly
marketing cloud technology. In fact, we
recently reported strong earnings on the
backdrop of a rather sluggish quarter for
traditional software companies, further
indicating that cloud companies are positioned incredibly well. While “big data” is
the buzzword, at Responsys we like to talk
about the right data. With so much data
being collected, it’s important for brands
to understand what data is right for them
and what data they can actually act on to
achieve business goals. We’ve entered the
relationship era, where the companies that
succeed will be those who can create and
maintain individual relationships at massive scale. To do this, they need technology that is architected completely around
the customer and gives them the ability
to reach millions of customers in personalised and relevant ways.
What are Responsys’ plans for the
Indian market?
As Responsys continues to grow, we’re
tapping into all global pools of talent.
The office in Bangalore provides Responsys with access to local engineering talent in the region, who contribute to the
development and delivery of product
innovations for our customers. The reason why Responsys chose Bangalore for
our Development Center is because of
its proven reputation and huge pool of
skilled and technologically savvy workers.
At the Bangalore Development Center,
we have an Engineering team that works
on core product development, from technical design to implementation and delivery. Many key product features included
in our releases are developed out of the
office in Bangalore. We also have a Quality Assurance team and a Responsys
Operations Center (Product Application,
Network Operations, System Operations), which was established in 2012 and
helps manage Responsys’s Global Data
Centers and various other infrastructure
management activities. In 2013, we plan
to add product management functionality
to the team in Bangalore so that we can
improve capabilities across the product
development cycle.
July 07 2013
47
VIEWPOINT
Steve Duplessie | [email protected]
The Amazon
Effect....Continued
In this case I don’t believe Cisco
can ultimately keep SDN from
happening universally, but it sure
as heck is going to slow down that
train for a while. Eventually, if it
does see the light of day as I suspect it will, Cisco’s core networking
boondoggle will come under heavy
fire - and it will be forced to adapt
its business model in that sector, or
abandon it - eventually.
This article was posted on Computerworld this AM (by me).
It made me think about other
crazy business models that aren’t
overtly logical - and how our behavior makes them take shape.
Do you know how LinkedIn
makes money?
Headhunters. Because you are
good enough to not only tell all
the world about yourself, your
experience, your job, your likes
and hates, etc., you make it easier
for headhunters to search the site
to find you if you fit the bill for an
opening.
Do you think that the sudden
“endorsements” feature of the site
is REALLY about having people
48
July 07 2013
endorse you? No, it’s about having people tell the headhunters
what other attributes they can tag
you with and thus search you for.
Headhunters pay for this function.
It may make you feel nifty that
Joan in accounting endorsed you
for being a “snappy dresser” but in
reality what is happening is your
profile is being fine tuned such that
the search function of the headhunter can be equally fine tuned.
It’s brilliant.
Now, having said that, there are
often unintended consequences of
a successful business model.
In this example, how long will it
be before HR departments bypass
the headhunters altogether and
simply do this for themselves?
The richer the data set on you
the person, the easier it is to hone
in on what HR is looking for in an
employee.
As a more interesting example
of how existing industry victors
always react to new or pending
movements, read what Big Switch’s
CEO wrote today here http://
bigswitch.com/blog/2013/06/05/
illusratuib by raj verma
I don’t believe Cisco can
ultimately keep SDN from
happening universally
About the
author:
Steve Duplessie
is the founder of
and Senior Analyst
at the Enterprise
Strategy Group.
Recognised
worldwide as
the leading
independent
authority on
enterprise storage,
Steve has also
consistently been
ranked as one of
the most influential
IT analysts. You
can track Steve’s
blog at http://www.
thebiggertruth.com
big-switch-steps-down-from-opendaylight-platinum-status regarding
getting out of the open source SDN
movement it essentially FOUNDED
because Cisco has taken control.
It shows the awesome power of
the incumbent to derail many
technology-led transformations
that have the ability to disrupt the
money flow.
In this case I don’t believe Cisco
can ultimately keep SDN from
happening universally, but it sure
as heck is going to slow down that
train for a while.
Eventually, if it does see the light
of day as I suspect it will, Cisco’s
core networking boondoggle will
come under heavy fire - and it will
be forced to adapt its business
model in that sector, or abandon it eventually. In the meantime, it will
keep pushing off the market.