Riaan Van Nierkirk, CIO at Mc Gregor spoke at the CIO Africa Event 2013

1. Riaan van Niekerk
Can Business Transformation
be successfully enabled by Cloud?

2. The current CIO Dilemma

3. IT does not live up to Business expectations
“More than seven in ten business decision-makers believe that
their business’ IT do not facilitate their need to achieve their
priorities for 2012”
- Matt Davies (BusinessComputingWorld)

4. CIO vs CDO
“The Chief Digital Officer will prove to be the most exciting strategic role in
the decade ahead.”
and
“The Chief Digital Officer plays in the place where the enterprise meets the
customer, where the revenue is generated, and the mission accomplished.
They’re in charge of digital business strategy.”
- Gartner (David Willis)

5. CIO vs CMO
Some forecasts say the CMO will soon be calling the shots for IT;
while I don’t buy into that, I do agree that CIOs who choose to sit
back and wait for “the business” to tell them what to do will end
up reporting to the CMO within a year or two.
- Forbes (Bob Evans)

6. Am I on par with my Cloud Strategy?
“By 2014, IT organizations in 30% of Global 1000 companies will
broker (aggregate, integrate and customize) two or more cloud
services for internal and external users, up from 5% today.”
- Gartner(2013)

7. The future CIO might have to choose
IT leader Business leader
(focus on tech apsects) (ensure projects are conceived
and executed in the service of
customers, business execution
and engagement)

8. How will Cloud help?

9. Cloud Computing Today

10. Google doc’s
CRM, sales force, gaming, Dropbox
communication, office & Gmail
productivity SAAS Salesforce
Netsuite
Force.com
Google App Engine
Runtime environments,
Microsoft Azure
databases, web servers, PAAS Morph
development tools
Virtual machines, Rackspace
servers, storage, load Amazon Web Services
balancers, Go Grid
networking
IAAS
components

11. Components

12. Risk relationship with Cloud Service Delivery

13. Cloud attributes
– On Demand
– Self Provisioning
– Metering/Billing
– Elasticity
– Multi-Tenancy

14. Cloud Drivers
– Economic (Outsource non-essential Tasks to reduce IT
Costs)
– Strategic (IT as a service, more responsive to business
needs)
– Flexibility/Time to market (accelerated enterprise
mobility)

15. Cloud Barriers
– Security/Data Privacy (compliance mandates,
jurisdictional issues, varying SLAs in their infancy)
– Performance
– Openness (vendor lock in, data ownership, application and
service portability, high switching costs?)

16. Advantages to CIO
– Cost Reduction (Reallocate direct resources from
commodity IT tasks to more strategic initiatives, less client
side management, reduced application support costs)
– Strategic (run IT as an internal service provider – know
what IT costs to deliver to do potential chargeback)

17. Challenges to CIO
– Security (Identity and data protection, risk management)
– Management (managing virtual workloads vs. physical infrastructure)
– Migration and integration (legacy applications are difficult to integrate
or mobilise)
– Managing multivendor relationships (integration between different
SaaS apps, monitoring SLAs from multiple providers)

18. What is the difference between a Cloud
Strategy
and
Cloud as a Business Enabler?

19. Cloud strategy
– Journey to improve overall IT Optimisation (datacentre
conditioning, consolidation, virtualisation, service
management and cloud deployment options)
– Encompasses public, Hybrid and Private Cloud
– Company will have to progress through several steps in
order to have a meaningful cloud journey
physical > virtual / cloud readyness > cloud

20. Cloud as a Business Enabler
• CIO and CEO normally jointly creates the plan
• Not tech-centric
• A broader vision for business transformation of the full
enterprise
• Takes social, customer engagement, Big Data, and business
analytics into consideration

21. Unlocking business value with a Cloud strategy
CFO CEO CIO
Oversees Driving and Transforms
shift from orchestrating into
CAPEX to the change Business
OPEX Leader
HR Legal CTO
Now Starts Cloud
recruits for addressing
Technology
mobile cloud-related
issues Leader
workforce

22. Phased approach towards building a Cloud
Strategy
Build Business Develop the Assess Gain
Case Strategy Readiness Approval

23. Step 1:Building the Business Case
• Link the key initiatives to the business objectives
• Gain support from senior stakeholders
• Set a baseline for assessing the impact of the investigation
• Estimate costs and resource requirements

24. Step 2: Develop the Strategy
• Align the investigation with the business strategy
• Show how it can deliver business value
• Clearly indicate changes that will affect the business
environment
• Work with key stakeholders to identify business needs

25. Step 3: Assess Readiness
• Identify the budgetary, staffing, technology and other
requirements
• Develop a tco analysis framework
• Review established policies for assessing risk and managing
governance

26. Step 4: Prototype
• Develop and communicate detailed requirements
• Manage the prototype
• Assess and communicate the results

27. Step 5: Gain Approval
• Analyze results
• Revise the strategy and business case
• Present findings to senior stakeholders and business leaders

28. How do I align my cloud strategy with our
business value chain and capability map?
• Core and context capabilities

29. Questions?