1. Management Skills for the CloudAn LSE study, sponsored by Microsoft Dr. Jonathan Liebenau London School of Economics Copyright 2010 LSE; reproduction is forbidden without permission. All rights reserved

2. background Management differences explain much of the variation in ability to benefit from ICT-led productivity growth Clear differences arise among countries European industry lags in ability to exploit ICT Changes expected from cloud services demand adjustments to managerial practices © 2010 LSE 2

3. What is different about skills for cloud? Changing competences The European context Innovation & productivity Ways forward © 2010 LSE 3 agenda

4. © 2010 LSE 4 cloud differs from internal and outsourced services Management skills for internal operations focus on: Analysis Design Maintenance Detailed budgeting Upgrading

5. 5 cloud differs from internal and outsourced services Management skills for outsourcing Vendor relations(SLAs) Internal information utilization SystemAnalysis SystemDesign

6. © 2010 LSE 6 cloud differs from internal and outsourced services Management skills for cloud focus on: Dispersed responsibilities; associated standards, routines & flexible boundaries Frequent, precise, flexible relations focusing on exchange (service orientation) Systems architecture The move from reactive provider to proactive advisor

7. changing competences Management skills for cloud computing Management skills for outsourcing Vendor relations(SLAs) Dispersed responsibilities Vendor relations(SLAs) Internal information utilization & delegation SystemArchitecture Service oriented design SystemAnalysis SystemDesign

8. areas of change Cloud Computing 1) OPEX CAPEX Upskilling/Deskilling 2) SMEs 3)

9. © 2010 LSE 9 changing competences Moving from capital expenditure to operational expenditure Organizational effects Managerial practice implications Accounting for cloud services Taxation and financial services effects Cloud Computing OPEX CAPEX

10. © 2010 LSE 10 changing competences Deskilling &/or upskilling From traditional IT Department to information utilization advisor Knowing your architecture From blue-collar to white-collar perspective From reactive to proactive Which jobs will be displaced Which jobs will be redefined to include skills to manage cloud operation

11. © 2010 LSE 11 changing competences Special issues of medium sized businesses Knowing the architecture of your IT in order to know the needs you have of providers

12. © 2010 LSE 12 the European context Special challenges to overcome European productivity gaps

13. © 2010 LSE 13 innovation and productivity demands Low entry barriers promote opportunities for risk taking Experimentation and rapid prototyping opportunities

15. Rapid adaptation of services and the organization’s ability to utilize them

16. Seizing opportunities to innovate at the boundary between your organization and service provider© 2010 LSE 14 innovation and productivity demands