FY19Q3 Transformation Day Australia - Keynote Slides

© 2019, Amazon Web Services, Inc. or its affiliates. All rights reserved.
M E L B O U R N E
05.09.19

M E L B O U R N E
05.09.19
Matt Fitzgerald
Principal Technical
Evangelist
AWS
Evan Stubbs
Partner & Associate
Director, Data & Digital
Platform
Boston Consulting Group
Andrew Palmer
Senior Executive Digital
Services & Solutions,
Technology and Operations
Medibank Private

Agenda Overview | InterContinental Melbourne
Time Location Session
10:45 – 11:15 Foyer Morning Tea
11:15 – 11:45
Stock & Trade
Track 1 – Activating Data as a Strategic Asset
Activating data as a strategic asset keynote
Wheat & Wool
Track 2 – Infrastructure & Cloud Modernisation
Modernising your enterprise application keynote
11:45 – 12:15
Stock & Trade
The future of cloud data & analytics platform
Wheat & Wool
Accelerating your AWS migration journey
12:15 – 13:00
Stock & Trade
Data driven customer experience
Wheat & Wool
Boral’s journey to the cloud - customer case study
13:00 – 13:45 Foyer Lunch
13:45 – 15:30
Stock & Trade
Interactive roundtable discussion
Wheat & Wool
Interactive roundtable discussion

William Libert
Training & Certifications
AWS
Jeremy Dunning
Vicki Falconer
Data & Analytics
AWS
Stephen Wright
Infrastructure
Modernisation Expert
AWS

M E L B O U R N E
05.09.19
The Future of Enterprise IT:
Becoming a high frequency
enterprise
Matt Fitzgerald
Principal Technical Evangelist
AWS

© 2019, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Amazon Confidential and Trademark
The Enterprise IT Spectrum

1
2
3
Traditional Enterprise IT anti-patterns and modern patterns

Invest in your
workforce
And put them closer
to your customers
Automate your
bureaucracy
To start
finishing
Build it in,
don’t bolt it on
Assume attack
and failure
1
Break up
the work
Monolith to
microservices
2 3 4

© 2019, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Amazon Confidential and Trademark© 2019, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Amazon Confidential and Trademark
1
Reduce the size
of deliverables
Transform
continuously
Maximize work
not done
Break up the work
Monolith to microservices

1
Frequent
value delivery
Smaller blast
radius of risk
Staged
investments
Break up the work
Monolith to microservices

Invest in your workforce
And put them closer to your customers
Realign around customer
value, not systems
Run what you build —
DevOps enabled
You have the team you
need — reskilling
2

Cultural shift to
change as constant
Reduce tech debt
from handoffs
Put your organization
closer to your customer
2

2
Business Analyst Product Manager Project Managers Designers
Developers Testers Implementers Operations
& Support

2
Small, decentralized
teams are nimble
Own/run
what you build
Business Analyst Product Manager Project Managers
Designers Developers Testers
Build & Release Operations
& Support

Traditional Enterprise IT Organization
Front office systems
Brand Websites, Mobile
apps, eCommerce
E-mail, Productivity,
Collaboration, HR,
Finance, ERP
Back Office systems
Desktop Support, Device
Management, Telephony,
IT Support
End User Computing
Fixed Infrastructure
Security

IT Organization Transforming to the Cloud
Cloud + CCoE incl. DevOps
Front office systems Back Office systems End User Computing
Fixed Infrastructure
Security

“Cloud-First" organisation
Run What You Build
End Customer Service Orientation
Automation everywhere
DevOps culture
Cloud + CCoE incl. DevOps
Product/Service Teams Back Office systems End User Computing
Security

Automate your bureaucracy
To start finishing
Replace gatekeeping with
automated controls
Standardize on reusable
building blocks
Finished means
released
3

To start finishing
Enable teams to work
with agile IT assets on
their own timeline
Shorten time
from idea to
implementation
Make
bureaucracy lean!
3

Delivering value using DevOps
3
44%
440x
46x
5x
Source: Puppet Labs State of DevOps Report

Build it in, don’t bolt it on
Assume attack and failure
4
Failure experiments Embed compliance
and security
Make security/reliability
everyone’s job

Build it in, don’t bolt it on
Assume attack and failure
Resilient, flexible
systems
Stems
natural drift
Builds a culture
of security
4

High frequency is a continuous transformation culture
Train team
on cloud
Build/buy
toolset
Shorten
approval cycle
START END START ENDSTART END

High frequency is a continuous transformation culture
Train team
on cloud
Build/buy
toolset
Shorten
approval cycle
START END START ENDSTART END
Train team
with new skills
Refactor & simplify
systems
Keep shortening
approval cycles

Invest in your IT
workforce
Continuous up-skilling
Put them closer to
your business
Realign around
customer value
Automate
bureaucracy
Replace gatekeeping with
automation
Enable teams to work on
their own timelines
Shorten time from idea to
implementation
Build it in, don’t bolt
it on
Embed compliance and
security
Run what you build
Resilient and flexible
systems
1
Break up
the work
Smaller
deliverables
Maximise work
not done
Transform
continuously
2 3 4
Strategies to reach high frequencyStrategies to reach high frequency

Matt Fitzgerald
mattfitz@amazon.com (twitter: mattfitzee)
Thank you

M E L B O U R N E
05.09.19
Medibank Digital
Transformation Story
Andrew Palmer
Senior Executive Digital Services & Solutions, Technology and
Operations
Medibank Private

Andrew Palmer
Snr Exec Digital Services & Solutions

3.77M
customers
26.9%
market share
$5.4+B
benefits

1.57M
Health
interactions
2144
Treated in home
200
Virtual beds

28 Sep 2016
“Trying to use @medibank website for
members. Hopeless. Every page just
shows a spinning gif but never completes.
40mins. Anyone watching?”
18 Oct 2016
“Been unable to make a claim on
@medibank’s website for a week due to
‘technical issues’ – good job people.”
22 Nov 2016
“The @medibank website is so
useless – often has problems with
loading, and I can’t find out how much
I have on my extras cover.”
8 Dec 2016
“@medibank Do you guys realise it’s
impossible to update direct debit
details on your website? Endless
loading screen when I try.”
Where we were

The challenge
Multiple disparate
systems
Monolithic platforms
Stability & performance
issues

The challenge
Multiple disparate
systems
issues
End of life & unsupported
software
Complex, legacy security
standards and controls.
Large no. of incidents

The challenge
Multiple disparate
systems
issues
End of life & unsupported
software
Complex, legacy security
standards and controls.
Large no. of incidents
Agency/vendors operating
in isolation with unclear
accountabilities
Lack of service levels &
transparency

To create the best in-market
digital experience

Approach
Customer first
Invest in people and skillsets
Build partnerships

Approach
Customer first
Build partnerships
High volume / customer value
Think big act small
Build momentum

Approach
Customer first
Build partnerships
Think big act small
Build momentum
Incremental approach
Refactor and rearchitect
Not a lift & shift

Approach
Customer first
Build partnerships
Think big act small
Build momentum
Incremental approach
Refactor and rearchitect
Not a lift & shift
Not about cost
Everything as code
Automation

Typography Grid & layout Colour Accessibility
Digital design foundations
Guidelines
Scalable component library
Web & mobile UI kits
Code & AEM library
Technology foundations
API Gateway Amazon Web Services Content Management Security MonitoringMicro-Services
Approach

Typography Grid & layout Colour Accessibility
Digital design foundations
Guidelines
Scalable component library
Web & mobile UI kits
Code & AEM library
Governance & iteration
at a system level
Technology foundations
API Gateway Amazon Web Services Content Management Security MonitoringMicro-Services
Approach

Outcomes achieved
100% uptime & availability 100% on AWS
26% in digital revenue
92% in load times, 95% open tickets, 85% created
Digital logins 76% with self-service calls 31%
37 points in NPS 23% to 65% of registered policies
1.3m digital claims

Learnings & lessons
Speed changes
everything
Start small

Learnings & lessons
Better educate the
broader business
Continue learning
Speed changes
everything
Start small

Learnings & lessons
Depended on vendor
roadmaps
Better educate the
broader business
Continue learning
Speed changes
everything
Start small

Learnings & lessons
Depended on vendor
roadmaps
Better educate the
broader business
Continue learning
Speed changes
everything
Start small
Empower teams to
use and explore AWS
Culture of self-service

Where to now
Building end to end integration
across the ecosystem
Enabling full pipeline
automation
Extending cloud services
across the enterprise
Services over screens
Unlocking innovation

Where to now
Health & wellbeing

Where to now
PersonalisationHealth & wellbeing

Where to now
Personalisation Health interactionsHealth & wellbeing

Where to now
Personalisation Health interactions Data transparencyHealth & wellbeing

M E L B O U R N E
05.09.19
thought leader
Evan Stubbs
Partner & Associate Director, Data & Digital Platform

5 SEPTEMBER 2018
Evan Stubbs – Partner and Associate Director, BCG
Becoming a high
frequency enterprise:
Unlocking value

Digital maturity is paying off
Champions perform above peers1
"YES, we performed above peers over the last 3 years?"
Key drivers behind performance
Causal effects from digital capability to performance
78% 29%
62% 24%
60% 25%
Competitive
advantage
Time-to-market
Cost Efficiency
Champions Laggards
Go-to-market
New digital
growth
Technology
… like new digital services &
products and start-up incubation
… like next gen tech function,
digital platforms and DevOps
… like digital marketing, sales
and personalization
1. Percentage of digital champions and laggards who said they outperformed peers over the last three years.
Source: BCG study "Digital maturity is paying off" (2018)
BCG Study

How do we unlock value by becoming digitally mature?
Hiring time
-75%
Fraud False Alerts
-50%
Cost Savings
$1B
Digital & artificial
intelligence based talent
recruitment platform
Real time fraud
detection with lower
risk of false positives
Predictive asset
maintenance across
industries
Hyper-personalized offers
and continuous test and
learn
Optimize resource utilization
through multiple neural nets
Telematics to
optimize routing,
personalized service
Predict next customer
contact channel and
product for servicing
request
Net Incremental
Revenue
3x
Data Cooling Costs
-40%
Miles Reduction
0.1B
Accuracy
88%
Cost savings
0.9B € Digital customer
experience & increased
delivery efficiency
Note: Illustrative digital examples; may not represent BCG case experience

68
Meeting the
challenge…

Rethinking digital end-to-end across the value chain
BUSINESS STRATEGY DRIVEN BY DIGITAL
DIGITIZE THE CORE
CHANGING WAYS
OF WORKING
LEVERAGING THE POWER
OF DATA & TECHNOLOGY
INTEGRATING
ECOSYSTEMS
Customer offer &
Go-to-Market
Operations
NEW DIGITAL
GROWTH
Support
functions
Source: BCG Digital Acceleration Index (DAI)

What differentiates global digital leaders?
Significant digital
investment
Build essential (AI)
enabler capabilities
Invest in digital
talents
Scale up and go
beyond pilots
Focus on New
Digital Growth
Leaders spend a
significant amount of
their OPEX, >10% on
digital
Leaders started early to
build up capabilities
(e.g., AI) incl. a data-
centric organisation
Leader have managed
to increase their Digital
FTEs, >10% of their
workforce
Leaders deliver full
potential by scaling up
solutions and don't
remain in pilot phase
Across all industries,
leaders create new
disruptive businesses,
laggards mostly not
Source: BCG Study "Beyond the hype – The real champions of building the digital future" (2018), BCG DAI Study 2019 (to be published in 05/2019)

Champions manage to scale, and don't get stuck in
pilots
Source: BCG Digital Acceleration Index (results from DAI industry study with focus on manufacturing & engineering, Tech, Bank, Telco)
Vision Operationalization
37
27
-27%
Vision Operationalization
79 77
-3%
Refine pilots into
full-scale solutions
Assess the organization and
define digital actions
43%
16%
29%
Design use cases and
launch quick wins
Scale up
operative solutions and
deliver full potential
8%
10%
15%
26%
53%
Operationalization has not
caught up with Vision
Operationalization almost
pari with Vision
Digital laggards Digital leaders Scaling up is the key challenge
Digital laggardsDigital champions
BCG Study

73
Majority of benefits
realized through
effectiveness:
Business cases for such transformations
includes 4 cost / benefit categories
Transformation
investment
Efficiency Effectiveness Enabler1
Better business
steering: e.g.
increased sales,
lower cost of
procured goods,
inventory costs
Lower process
costs: FTE
rationalization or
IT cost savings
(e.g. licenses)
Platform for
future value
creation and
reduction of risk
exposure
Cost to deliver:
internal FTE,
contractors,
software and
hardware
Costs Benefits
1. Typically not included in the business case
Source: Based on 6 case studies (3 core legacy modernization, 3 DDP)
29%
Efficiencies Effectiveness
71%

Data & digital platforms unlock efficiency benefits by offering new
technologies and enabling new ways of working
x3
time to market
(from 2-3yrs to
3-12month for
MVP)
-20~30%
on IT run cost
Source: BCG experience
Value creation Value acceleration Savings generation
+25~50%
productivity
with cloud
-50~70%
lower change
failure rate
with DevOps
Up to 90%
reduction of
provision activities
thanks to
automation &
DevOps
Productivity
Quality
Delivery
Agility
-30~50%
upfront cost
avoidance
One-off
Run

major
value
pools
3
De-risking next-generation
ERP migration
Cost out through data / digital platform
simplification
High value-
realizing
organisations
target
Revenue and margin growth through
industrializing high-value use cases

1,000
0
500
1,500
Year 1Year 0 Year 2
% cost
Year 3 Year 4 Year 5 Year 6 Year 7 Year 8
Cumulative
benefits
Cumulative
costs
Prioritising effectiveness with supporting efficiency benefits
leads to larger benefits with shorter time to breakeven
500
0
1,000
1,500
Year 1 Year 7
% cost
Year 0 Year 2 Year 3 Year 4 Year 5 Year 6 Year 8
Cumulative
benefits
Cumulative
costs
<%
Breakeven
in 6 years Breakeven
in 1 year
Source: Based on 6 case studies (3 core legacy modernization, 3 DDP), average of cumulative costs / benefits as % of total cumulative cost in year 9
Benefits as
of year 2
Benefits as
of year 1
Transform the core and realise efficiency Liberate data through digital-speed platforms

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