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WORLD
JANUARY 2017
INSIDE
Must-Watch IT in 2017
Surviving Digital Darwinism
Keys to Banking Transformation
The Era of Indu...
Meet the power players:
Our world-class global alliance team.
Your dream team. Together, we deliver
the right solution — a...
1JANUARY 2017 | CSC WORLD
AS ONE ERA ENDS, ANOTHER BEGINS
After years of talking about the digital revolution, we have rea...
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  1. 1. WORLD JANUARY 2017 INSIDE Must-Watch IT in 2017 Surviving Digital Darwinism Keys to Banking Transformation The Era of Industrial Machine Learning WHAT MAKES A DIGITAL LEADER?Our survey spotlights traits of successful digital companies
  2. 2. Meet the power players: Our world-class global alliance team. Your dream team. Together, we deliver the right solution — and the right people — to solve your most critical business challenges. CSCGLOBAL ALLIANCES poweringthe digital enterprise together csc.com/global_alliances
  3. 3. 1JANUARY 2017 | CSC WORLD AS ONE ERA ENDS, ANOTHER BEGINS After years of talking about the digital revolution, we have reached the tipping point at which virtually all organizations depend on cloud, mobile, big data and cybersecurity technologies. The arrival of these technologies is creating opportunities for disruptors to emerge and displace solidly entrenched ways of doing business. You see this in insurance, telecom, media and entertainment — in virtually all industries, including the technology and IT services sector where CSC operates. Many of the strategies that yielded success yesterday seem all but irrelevant today. These industries are changing at a faster rate and are creating a unique and immense opportunity for effective and decisive leadership. In the past, strong lines of demarcation separated and defined the roles of different C-level executives, where CFOs, COOs, CTOs and CIOs each had their space. Today, digital technology is blurring these lines, allowing anyone and everyone to affect every facet of the business. This is changing the way businesses interact with their customers and partners, engage their employees and develop strategies. In this era, a new kind of leader is emerging. A digital leader. To better understand the nature of “digital leadership,” CSC worked with the Economist Intelligence Unit to survey 500 global executives from the entire C-suite, not just CTOs and CIOs as we have in the past. What we learned is that the different C-level positions have become far more fungible than they were just a few years ago. I encourage you to read about the findings, in our cover story on page 10, and to download the full report at csc.com/digitalenterprisesurvey. Leaders look to the future, so be sure to check out our CTO Dan Hushon’s predictions of IT trends in 2017. Dan’s look ahead is always popular with readers, and I guarantee you will get good insight into the upcoming technological developments — from the rise of intelligent machines to the emerging innovation of the Sinosphere — that we can expect to see over the next 12 months. You can read his predictions on page 16. Change, like time, leaves no individual or organization untouched, and CSC is on the cusp of a major transformation itself. Last May, our Board of Directors approved a decision to merge CSC with the Enterprise Services segment of Hewlett Packard Enterprise. The new company is expected to become the world’s leading independent, end-to-end IT services provider, serving more than 5,000 clients in 70 countries. As you can imagine, it’s been an exciting and very busy period as we work to combine the two companies. This, therefore, is the final issue of CSC World. For the past 5 years, I’ve had the honor of serving as this award-winning magazine’s editorial director, working closely with our clients and with colleagues across all of our global businesses. I want to thank the writers, editors and designers who’ve contributed their insightful content and talent to these pages. I would be remiss not to recognize Senior Managing Editor Jeff Caruso and Art Director Deric Luong for their leadership. I also want to thank the CSC leadership team, who have provided such strong support for so many years. We are already planning and defining what this magazine and our overall content strategy will look like at the new company, so stay tuned. Until then, I hope you find this last edition of CSC World full of useful information. Enjoy the issue. PATRICIA BROWN Editorial Director, CSC World CHIEF MARKETING & COMMUNICATIONS OFFICER Gary Stockman EDITORIAL DIRECTOR Patricia Brown SENIOR MANAGING EDITOR Jeff Caruso CONTENT MARKETING EDITORS Christine Neff Lucy Nolan ART DIRECTOR Deric Luong DESIGN & PRODUCTION Creative Services CSC­­­ csc.com THE AMERICAS 1775 Tysons Blvd. Tysons, Virginia 22102 United States ASIA, MIDDLE EAST, AFRICA Level 9, UE BizHub East 6 Changi Business Park Avenue 1 Singapore 468017 Republic of Singapore +65.6809.9000 AUSTRALIA 26 Talavera Road Macquarie Park, NSW 2113 Australia +61(2)9034.3000 CENTRAL AND EASTERN EUROPE Abraham-Lincoln-Park 1 65189 Wiesbaden Germany +49.611.1420 NORDIC AND BALTIC REGION Retortvej 8 DK-2500 Valby Denmark +45.36.14.4000 SOUTH AND WEST EUROPE Tour Carpe Diem 31 Place Des Corolles CS 40075 92098 Paris la Defense Cedex France +33.1.55.707070 UK, IRELAND AND NETHERLANDS The Walbrook Building 25 Walbrook London EC4N 8AQ United Kingdom CSC WORLD (ISSN 1534-5831) is a publication of Computer Sciences Corporation. Copyright ©2017 Computer Sciences Corporation All rights reserved. Reproduction without permission is prohibited. Inside CSC WorldWORLD csc.com/cscworld
  4. 4. 2 CSC WORLD | JANUARY 2017 CSC WORLD | JANUARY 2017 | VOLUME 15 | NUMBER 1 4 NEWS CSC announces alliance with PwC, expands relationship with Hitachi Data Systems and unveils a digital ecosystem for the London insurance market. 6 HEARD ON CSC.COM Experts are coming to csc.com’s blogs and Town Halls to share insights on industry developments and technology trends. 8 CSC WORLD THROUGH THE YEARS Since 2000, CSC World has explored trends in IT, highlighted innovations from CSC and showcased our clients’ successes. COVER STORY What Makes a Digital Leader? The Economist Intelligence Unit (EIU) surveyed more than 500 executives around the world to better understand the links between digital technologies and strategic success. The results are revealing. 14 Infographic: Going Digital Insights from the EIU survey show how IT executives and non-IT executives see the future of digital transformation. CROSS-INDUSTRY 16 Must-Watch IT in 2017 CSC CTO Dan Hushon offers his thoughts on 2017, naming six technology trends to his must-watch list for the year. 18 7 Threats to the Business/IT Relationship Cultural challenges don’t have to hinder the success of an enterprise’s business relationship managers. HEALTHCARE 20 Digital Patient Journal Streamlines Care in Denmark A digital tool used to record and communicate patient conditions from the field is improving outcomes. LIFE SCIENCES 22 3 Scenarios for BPS Success BPS can take companies beyond simply partnering for submis- sion document management and toward true transformation. INSURANCE 24 eDiscovery Pitfalls and How to Avoid Them It’s now possible to eliminate many of the inefficiencies of eDiscovery, while still achieving compliance. BANKING 26 4 Keys to Banking Transformation To position themselves for the future, banks can follow four principles for creating a nimbler reference architecture. MANUFACTURING 28 Firm Transforms User Experience Specialty vehicle manufacturer Oshkosh Corporation gains enterprise visibility with cloud-based service management. 8 10 16 20 22 10
  5. 5. 3JANUARY 2017 | CSC WORLD CYBERSECURITY 40 Digital Tools Bolster Cybersecurity The tools needed to mount an effective defense are appearing as essential design elements in today’s IT infrastructure. 42 The Red Team Is Here to Help Companies can strengthen their response capabilities by pitting internal cybersecurity staff against trained security experts. PLATFORM 44 Going Virtual — and Beyond Virtualization is only the first step toward fully benefiting from the investments made in a modern platform. WORKPLACE 46 3 Roads to Windows 10 Any path to Windows 10 should put an organization further down the road to enabling a digital workplace strategy. LAST WORD 48 Building the 21st Century Organization CSC’s Leading Edge Forum proposes a six-part framework to focus the process of updating business models. COMMUNICATIONS/MEDIA 30 Digital Workplace Powers Creativity The technology available to today’s media companies provides rich opportunities to collaborate and create — anytime, anywhere. TRAVEL AND TRANSPORTATION 31 Smarter Travel Airlines can create personalized customer experiences by connecting services from airports and vendors with their own services. CLOUD 32 4 Steps to Survive Digital Darwinism The fittest organizations are the most agile, able to make rapid adjustments so they can evolve into lasting and sustainable businesses. BIG DATA 34 Industrial Machine Learning Ushers in New Era of Analytics As the volume of available data grows, companies need more powerful tools to gain insights at enterprise scale. APPLICATIONS 36 Blockchain: What You Need to Know CSC experts take a look at what blockchain is, what it does and how it could be coming soon to a business near you. RETAIL 38 Recognizing the Potential in Digital Retail Digital tools help retailers improve business performance, trans- form the consumer experience and speed decision making. ON CSC.COM CSC BLOGS Learn about the latest technology news and trends with thoughtful posts by CSC leaders and expert contributors. blogs.csc.com. CSC TOWN HALLS Join a continuing series of online conferences on IT topics that matter to you, featuring CSC experts and special guest speakers ready to answer your questions. csc.com/TownHall. SUCCESS STORY BRIEFING CENTER View video success stories featuring CSC subject matter experts, clients and global partners. csc.com/Success_Stories. 24 30 42 31
  6. 6. 4 CSC WORLD | JANUARY 2017 NEWS OUR VISION: A DIGITAL ECOSYSTEM FOR LONDON INSURANCE MARKET CSC and PwC have announced a strategic alliance to offer integrated, end-to-end services spanning business and IT, imple- mentation and operations. Clients will benefit from the breadth and depth of CSC’s and PwC’s experience, capabilities and technology-independent solutions. “We are bringing together PwC’s global leadership in business consulting with our global technology services to provide end- to-end transformation services that span strategy, implementation, and run and maintain,” said Carlos Lopez-Abadia, vice president and general manager, Global Consulting, CSC. “Organizations want to fast-track their digital strategies, unlock value from their data to drive business insights, secure the enterprise environment and drive growth through innovation,” said Mohamed Kande, PwC U.S. advisory leader. “Our alliance will be a force multiplier for accelerating our clients’ business and IT transformations and positioning them to win with solutions they can choose with confidence.” PwC will lead strategy and business transformation, supported by CSC. And CSC will lead technology transformation, design and implementation, supported by PwC. CSC AND PwC COLLABORATE FOR DIGITAL TRANSFORMATION CSC recently presented its vision to support commercial insur- ance clients on their digital transformation journeys with a Global Digital Insurance Marketplace, setting a direction for standard- ized Software as a Service, infrastructure on a pay-as-you-use basis, widespread adoption of standard messaging, and further automation of business process services — all supported by CSC’s global alliance partners. “Our vision will enable the London market to prosper globally by adopting secure, advanced and standardized technologies,” said Patrick Molineux, general manager, Insurance, CSC UKI&N. CSC also announced a range of new offerings that form part of the Global Digital Insurance Marketplace vision. These include: a service to help organizations establish clear digital goals that align with business objectives; a scalable and flexible Web-enabled underwriting tool that allows carriers to connect with their trading partners; an enterprise-level deterministic exposure management platform for underwriters, exposure and aggregation professionals, and reinsurance purchasers; cloud- based solutions that let customers easily manage the end-to-end claims process via the Internet; and a digital consumer engage- ment platform for insurance, offering a seamless customer experience across distribution and engagement channels. 4
  7. 7. 5JANUARY 2017 | CSC WORLD To help clients quickly and cost- effectively realize the benefits of cloud-enabled digital transformation, CSC and Hitachi Data Systems (HDS) have expanded their long-standing global alliance to focus on joint delivery of CSC BizCloudTM powered by Hitachi Unified Compute Platform (UCP), Storage as a Service and SAP HANA offerings. “We are capitalizing on and expanding our 20-year strategic relationship to deliver greater value to clients as they transform in the digital economy,” said Dave Zolet, executive vice president and general manager, CSC Americas. “Transformative offerings, such as the CSC BizCloud powered by Hitachi UCP and CSC Agility Platform, can help enterprise clients leverage the power of their data to create economic value.” “Because every client and every transfor- mation is different, we see value in offering many alternatives to help clients navigate this journey and achieve their desired business outcomes,” said Mike Walkey, senior vice president, Global Partner Organization, HDS. “Organizations want trusted partners who can ease enterprise cloud deployment, deliver cost-effective as-a-service offerings, and support corporate mobility initiatives. With a shared vision and strategy to simplify and accelerate the digital transformation journey for our mutual clients, HDS and CSC can be those partners.” The advanced automation and manage- ment capabilities of CSC Agility PlatformTM , combined with the Hitachi UCP converged infrastructure solutions from HDS, can cost-effectively ease and accelerate enterprise hybrid cloud deploy- ments through a single platform. A new CSC Agility Platform reseller agreement enables HDS to offer greater choice and flexibility to clients seeking the best-fit solution for their IT environment. Gartner, Inc. has positioned CSC as a leader in its 2016 “Magic Quadrant for Data Center Outsourcing and Infrastructure Utility Services, North America” report. Among 19 service providers to deliver data center managed services across North America, CSC is positioned as a leader for the sixth consecutive year by Gartner. This year CSC was rated highest among those in the report for its “Completeness of Vision” — as judged on eight main criteria, including innovation, business model, offering strategy and vertical/industry strategy. “We feel our positioning affirms the strength and vision of our cloud solutions and next-generation offerings, including the CSC Agility Platform,” said Steve Hilton, executive vice presi- dent and general manager, CSC Global Infrastructure Services. CSC’s independent hybrid cloud services give clients the archi- tecture best suited to their specific needs, as well as delivering traditional data center services in CSC’s or clients’ data centers. The architecture can integrate on-premises data center and private cloud resources, as well as infrastructure from providers such as Microsoft (Azure) and Amazon Web Services. CSC reduced both its energy usage and greenhouse gas emissions by more than 14% in fiscal year 2016, according to its annual corporate responsibility and sustainability report, which details global achievements in key areas. “Together with our clients and partners, we are committed to sustainable, forward-thinking business practices that build upon the momentum for positive social, economic and environmental outcomes,” said Mike Lawrie, chairman, president and chief executive officer, CSC. CSC focuses its efforts in five areas: environment, clients, employees, community and governance. The company reported progress in all five categories in FY16. Highlights include the following: • Reduced energy use by 14.6% • Attained zero waste to landfill for disposal of company electronic waste products • Achieved 14.3% global greenhouse gas reduction • Scored 100% on the Disability Equality Index • Ranked #13 in Best Corporate Citizens for 2016 by CR Magazine ACCELERATING CLIENTS’ JOURNEY TO THE CLOUD A LEADER IN GARTNER MAGIC QUADRANT MAKING STRIDES IN CORPORATE RESPONSIBILITY 5
  8. 8. 6 CSC WORLD | JANUARY 2017 Strike your agile pose As a lifelong competitive athlete, I think the visual that best illustrates agility is the “ready” stance: feet shoulder-width apart, weight on the balls of your feet and knees slightly bent. In this position you can anticipate the need to pivot. You can step left, step right, skip backward or forward, instantly and as the need arises. That really describes the agility cycle. Jim Houghton CTO for CSC Americas CSC Blog, “Agility: What Is It, and How Do We Get It?” csc.com/agile-stance Heard on CSC.COM Can a robot lead your organization? Robots in positions of leadership can use a set of clear rules and processes to be good managers. But to lead requires more than that. It requires one to sometimes step out of bounds, rise up and inspire others, even in the darkest of times. Sarah James Senior Consultant, CSC CSC Blog, “Why Artificial Intelligence Will Never Be Smart Enough to Replace a Good Leader” csc.com/AI-leader Experts inside and outside of CSC are coming to csc.com to make their voices heard in CSC Town Hall webcasts and our blogs. Here are some highlights. 6 CSC WORLD | JANUARY 2017
  9. 9. 7JANUARY 2017 | CSC WORLD The promise of UBI Consumers, I think, will be receptive to the benefits and the new relationship with their insurer. Broadly speaking, insurers and regulators need to consider how to do [usage-based insurance] better because this is disruptive and consumers are open to the change. James Dodge Senior Consultant, Milliman Town Hall, “Usage-Based Insurance: Overcoming Barriers to Adoption” csc.com/ubi-barriers Clear route to the cloud Companies have become more educated about cloud, which is removing internal concerns to adoption. And today’s tools are data-driven. The discovery tools we use allow us to work with everyone from the CIO to application owners to help them understand how to migrate. Lawrence Guillory CEO, Racemi Town Hall, “Migrating to the Cloud Without the Hassle” csc.com/cloud-migrate The best data Raw data includes information like names, preferences, contact and call center history, purchases, etc., while derived data is information the company is able to synthesize based on raw data, such as customer lifetime value. But the most valuable data is insights generated from predictive analytics that can tell you a customer’s propensity to buy, who’s likely to leave or who’s most profitable to pursue. Victoria Green Customer Intelligence Business Architect, CSC Town Hall, “Customer Intelligence: Turning Insight into Action” csc.com/customer-intelligence Hey Siri, I’m stressed! The idea that my phone might react differently if it determines that I am stressed is welcome in a lot of ways. Maybe the display would change to pastel shades, play concertos rather than drum and bass or order me a decaf rather than an espresso. Glenn Augustus Technologist, CSC CSC Blog, “Should Our Devices Know When We’re Stressed?” csc.com/stress 7JANUARY 2017 | CSC WORLD
  10. 10. 8 CSC WORLD | JANUARY 2017 AT THE BEGINNING OF [THE] WORLD ... we address important topics of the day, including business transformation, globalization, privacy and how best to measure business value. WINTER 2010 This issue focuses on the increasingly complex and important cybersecurity landscape, the healthcare industry technology revolution, NASA’s Jet Propulsion Laboratory, supply chain, and travel and transportation. WINTER 2011 This issue focuses on our in-country cloud services across three continents, as our mission to offer cloud around the world is just beginning to rise. We profile new and existing clients moving to the cloud to test applications, accommodate peaks in demand and grow business in new markets. SUMMER 2010 As the world’s economies recover from the global recession, multinational financial services companies continue to focus on eastern expansion. In this issue, we specifically look at how life insurance companies respond to a growing middle class in Asia. We explore the evolving world of mobility, help readers define their mobile strategy and explore whether the enterprise is ready for iPads. SPRING 2011 This issue features the emerging market of big data and its growing implications for business, as well as tips for success in desktop virtualization and cloud computing. SPRING 2012 CSC’s history at NASA dates back nearly as far as the creation of the space program itself. In this issue, we visit the NASA Center for Climate Simulation, home to one of the largest contingents of earth scientists in the world. Plus, we feature cybersecurity, healthcare and cloud computing content. WORLD Throughtheyears JULY 2009 In 2009, in honor of our 50th anni- versary, we look back to April 16, 1959, when California computer analysts Fletcher Jones and Roy Nutt scraped together $100 to start CSC. By 1961, CSC signed its first government contract with NASA; by ’65 CSC was the largest IT services company in the United States; in ’68, CSC became the first independent IT services firm listed on the New York Stock Exchange. The rest, as they say, is history.
  11. 11. 9JANUARY 2017 | CSC WORLD MAY 2016 Digital technology has the power to improve customer experience, increase productivity and ensure a competitive edge, among many other things. We believe most organizations are now ready and willing to invest in digital technology, but many wonder how. In this issue, we explore five key technology shifts that enterprises in all industries need to embrace to transform their organizations: digital applications, cloud platforms, integrated digital service management, software-defined networks and the digital workplace. NOVEMBER 2013 NYSE Euronext represents one-third of the world’s equities trading. But increased competition and a slow economic recovery led the company to reduce costs, modernize applications and consolidate data centers. In this issue, Dieter Eisinger, SVP and chief procurement officer, NYSE Euronext, talks about his company’s IT initiatives and strategic partnership with CSC. WINTER 2013 In this issue, we explore “Avis Budget’s Road to Customer Value.” Like many businesses, Avis Budget had loads of customer data with no clear way to analyze it. But then the company added a new marketing science organization, a new customer value model, and a new marketing campaign and technology toolset powered by big data. APRIL 2015 We explore in this issue the key to surviving and thriving in today’s innovation economy: Effectively managing the two sides of the “disruption” coin. We take a closer look at how innovations become disruptions when they displace existing technologies or business models. Think of PCs disrupting minicomputers, or digital photography disrupting film. APRIL 2014 After a historic merger with Wachovia, Wells Fargo undertook several end-to- end process improvement projects to bring the two companies together. In this issue, we go inside the bank’s post- merger transformation. Plus, we explore how teleservices is shaking up healthcare, the value of enterprise hybrid clouds, the latest big data and IT trends, and application testing and sourcing. SUMMER 2013 The healthcare industry is entering a world of great opportunity and tremendous risk. In this issue’s cover story, we hear from Intermountain Healthcare, a nonprofit health system using innovative technology to improve care and cybersecurity. Plus, we explore enterprise clouds, 3D printing, biometrics and more. SUMMER 2012 A global community of consumers armed with mobile devices is redefining the relationship between customers and banks. In this issue, we examine this “connected consumer.” Plus, we explore climate data analytics, cloud computing, biometrics, utilities-industry success stories and more. Explore the CSC World archives at csc.com/cscworld.
  12. 12. 10 CSC WORLD | JANUARY 2017 How Digital Technologies Are Translating into Strategic Success COVER STORY DIGITAL LEADER Operational excellence. Customer intimacy. Product leadership. These values have influenced strategic plans crafted by countless companies around the world for decades. And these values still matter — a lot. But there’s an underlying discipline that companies must now master to achieve any of them. To innovate, serve customers or work more efficiently than competitors, a company today must also be a digital leader. WHAT MAKES A 10 CSC WORLD | JANUARY 2017
  13. 13. 11JANUARY 2017 | CSC WORLD So what, exactly, makes an enterprise a digital leader? A 2016 survey by the Economist Intelligence Unit (EIU), sponsored by CSC, canvassed more than 500 CIOs and other senior executives at companies around the world to better understand the links between digital technologies and strategic success. While the study shows that investments in technologies such as cloud and mobility are escalating, only a select few companies have begun to unlock the full business potential that lies in today’s information technologies and have become fully digital across all major functions. These digital leaders, the survey shows, report better financial performance than their competitors. They’re also better equipped to deliver on those key value disciplines. Characteristics of digital leaders As the survey reveals, companies report a wide range of progress on the digital journey. While many factors can be counted, three elements have a clear influence: who controls IT and its budget, how IT is perceived in the organization, and the specific investments a company has made over the years. At digital leaders, a larger share of CEOs set IT strategy. In the survey, 44% of respondents from companies categorized as digital leaders indicated that the CEO is the primary driver of IT strategy, suggesting that these companies place additional emphasis on the importance of technology in achieving business goals. Another clear indicator is the regard that digital leaders have for IT’s contribution to the business. At a rate of two to one (51% to 25%), respondents at digital leaders — versus at other companies — said IT is crucial to meeting business goals. IT budgets are a different matter. Control of the IT purse strings seems to be in flux. Currently, IT has more control over its budget at digital leaders than at the average company, which may signal a more unified digital strategy. But even among digital leaders, IT budget control is waning, as business units purchase a larger share of cloud solutions, Software as a Service (SaaS) and other resources without involving IT. Digital leadership breaks down barriers and penetrates silos, leading to a greater degree of corporate integration and collaboration. While companies in this survey report greater collaboration as a whole, more than three-quarters continue to struggle with internal barriers to communication and information sharing. Industry Focus: Insurance Insurers now have the opportunity to harness new technologies and vast amounts of data to better serve customers, tap new markets and attain greater levels of efficiency. Indeed, the success of direct-to-consumer insurers with digital models has forced other personal lines companies to respond. Life insurance companies are using digital tools to introduce more opportunities for customer engagement between the time a policy is sold and when a claim is made. Ultimately, both personal and commercial lines companies are recognizing the value that technology can provide in allowing them to underwrite more effectively and to operate more efficiently. Over the next 3 years, insurance executives say they expect to be entirely digital in greater numbers than other respondents in functions such as strategy, finance and customer service. Budget constraints are the largest barrier to meeting their IT goals, followed by a perceived lack of vision at the corporate level about IT’s role in meeting strategic goals. Still, insurers are overwhelmingly confident in IT’s ability to support business strategy in the coming years, with 88% of them confident in IT’s ability to deliver on both technologies and capabilities. “We’ll see more change in our industry in the next 10 years than we’ve seen in probably the last 100.” — Chris Baker CIO, San Diego Gas & Electric and Southern California Gas (affiliates of Sempra Energy) Digital leaders excel at using IT for improved collaboration in areas such as organizational integration, information sharing and digitally driven operations because their functions are entirely digital. Results show that they outpace other companies on organizational integration (28% say these functions are somewhat or entirely integrated) and collaboration (93% share information somewhat or very effectively). Progress made, but work remains Digital technologies and business strategy are aligning in virtually every company, and most expect to become more globally integrated and better at information sharing over the next 3 years, the survey shows. But even among digital leaders, technology investments alone won’t make a company digital or sustain its digital edge. A number of obstacles remain. 37%of digital leaders reported fiscally outperforming competitors. Only 11% of other companies reported the same.
  14. 14. 12 CSC WORLD | JANUARY 2017 Industry Focus: Banking and Capital Markets Technology investments in banks and capital market firms are heavily influenced by privacy, security and regulatory compliance. As such, these companies are significantly ahead of other companies in current use of the private cloud (98% to 58%) and expect to increase their use of this technology more often than others (46% to 24%). Despite their high profile as cybercrime targets and the burden of regulatory compliance, banks and capital market firms trail other companies in spending on cybersecurity tools, with just over a quarter investing in these tools, compared with one-third of other companies. Money is not expected to be a constraint for most banks and capital market firms. However, they are struggling with developing and finding the IT talent they need, as 39% of these respondents cited talent acquisition as a barrier to success, compared with 27% of those at firms in other industries. “It’s no longer enough to be a good technologist. Now you have to bring a strong understanding that technology is the business.” — Rob Reeg President, Mastercard Operations and Technologies, Mastercard Inc. 1 in 7respondents indicate their companies will reduce the use of on-premises servers.
  15. 15. 13JANUARY 2017 | CSC WORLD Industry Focus: Healthcare In the face of myriad changes in the healthcare industry, executives recognize how crucial digital technologies will be. Healthcare organizations more often than other companies indicate that they will increase IT spending somewhat or a lot in the next 3 years (62% versus 52%) — supporting the finding that IT is a cost of doing business, not a differentiator. Investments are expected to include building capabilities and technologies to enable operations through the use of new software development platforms, greater mobility and attention to cybersecurity. Consumers’ demand for more transparency and better service is driving investment in apps and online tools. As new technology-enabled care delivery causes further re-examination of business models, executives will need to invest in platforms that can support practitioners and patients alike. Healthcare organizations must make these investments and others just to keep pace with market forces. “Implementing mobility wherever possible is one of the main pillars of our IT and business strategy.” — Tayfun Küçük CTO and assistant general manager in charge of IT, business solutions, direct banking and transactional banking, Odeabank Among the chief concerns companies have, whether digital leaders or not, is the issue of talent. Companies at all stages of digital transformation need to find people with the right IT skills, especially in areas such as big data (38%) and application modernization (37%). Demand for these skills underscores their critical role in the enterprise. Data analytics serves a broad range of needs, from identifying new markets and product opportunities, to serving customers more effectively and flagging potential risks. Modernizing applications reflects the need that companies have to transition core applications onto today’s more flexible infrastructure. Despite the talent shortage and other familiar challenges such as budget, digital leaders are very confident that their IT function can deliver business results — far more so, in fact, than their counterparts at other companies. By a margin of 88% to 55%, digital leaders believe in IT’s ability to deliver critical business results. Digital intent From one perspective, many companies still view IT as a tactic to trim costs. In the EIU survey, 54% of respondents viewed IT as a way to improve day-to-day efficiencies, compared to a quarter who view digital technologies as a way to compete with new all-digital companies. On the other hand, many companies are clearly transitioning from legacy technologies to emerging ones. Mobile and cloud investments will rise, while money spent on PCs and on-premises servers will fall. Proprietary software, once considered a competitive difference maker, is being supplanted by cloud- based solutions that companies now consider a basic need. The upshot is this: Companies are going all-digital, whether by design or default. Those who view IT strategically are among the digital leaders. Digital leaders see broader opportunities, prioritizing investments in the public cloud, in collaboration software and in cloud-based application services. Further, 63% of digital leaders indicate that they plan to increase their overall IT spending somewhat or significantly in the next 3 years, compared with 52% of other companies. This statistic seems to point out another important, if subtle, defining characteristic of digital leaders. In addition to their ability to deliver on key values, digital leaders also have a positive outlook on their company’s role in its industry and on its ability to compete effectively. Digital leadership, it seems, is also the key to confidence. Why go digital? To becom e m ore effi cientTo cutcosts To keep up w ith new ,fully digitalcom petitors To m eetcustom erexpectations To keep up w ith currentcom petitors To surpass com petitors To m eetanalyst/investorexpectations
  16. 16. 14 CSC WORLD | JANUARY 2017 Going digital How IT executives and non-IT executives see the future of digital transformation A recent survey by the Economist Intelligence Unit, sponsored by CSC, explored the views of global business leaders — both senior IT management and non-IT executives — on what IT is getting right as companies move down the path of closer alignment between business strategy and digital technologies, how companies are managing IT, and the expectations for IT’s role in driving business success. 37% 23% 42% CEO 50% 28% CIO 31% IT executives and non-IT executives most often say either the CIO or CEO is leading the strategy: 37% of CIOs and other IT executives see IT as crucial to meeting their company’s strategic goals, and 23% of executives in other functions agree. IT executives and non-IT executives agree that central IT most often controls at least some budget, and they acknowledge the role of business units: Where’s the money? 50% Business Units 60% 70% 42% Central IT Dept But a third of executives outside IT say so as well. IT executives more often say their functions are mostly or entirely digital. 42% 34% Functions range from strategy to manufacturing to IT.
  17. 17. 15JANUARY 2017 | CSC WORLD 35% of IT executives say all of their functions, from strategy to manufacturing to IT, are somewhat or entirely globally integrated. 18% of executives outside IT say so. 35% 18% The tools and capabilities the two groups see as priorities also differ. Notably, 3% of all respondents say they plan to stop using PCs over the next 3 years. The tools and technologies that most IT executives say their companies plan to invest more in over the next 3 years are: They also far more often than other executives plan to increase use of: smartphones public cloud hybrid cloud cloud-based apps social tools The capabilities IT executives think they need most: Executives in other functions have a different third priority: smartphones public cloud collaboration software The capabilities other executives think IT needs most: managing big data and analytics application modernization collaboration 65% 58% 58% 56% 49% 47% 49% 45% 39% 39% 38% cybersecurity mobility application modernization 39% 39% 38% Executives outside IT see far more need for help with collaboration 33% 23% 56% 52% IT executives more often perceive digital technologies as a way to meet customer expectations than non-IT executives. But the most often cited goal for becoming more digital, chosen by more than half of both groups, is to become more efficient. Notably, all executives agree on the top three barriers to IT’s ability to deliver the technologies and capabilities the company will need: What are the barriersto overcome? Why and how do companies become more digital? Budget constraints Resources primarily focused on managing existing IT workloads Difficulty finding staff with the needed capabilities In summary Business executives in IT and those in other functions may have different takes on IT’s effectiveness, how it’s managed and how it should improve. But everyone agrees on the barriers IT will have to overcome to help corporate leaders meet their strategic business goals. From this common starting point, executives across functions should be able to work together to overcome those barriers, increase companies’ digitization and increase IT’s contributions to business success. Source Sponsored by Global survey by the Economist Intelligence Unit, “CIOs and the Future of Business Strategy,” 2016. © Economist Intelligence Unit 2016
  18. 18. 16 CSC WORLD | JANUARY 2017 CROSS-INDUSTRY 1.RECONFIGURING THE ENTERPRISE FOR THE 21ST CENTURY If your company has already adopted 21st century technologies — cloud, software- defined networks, big data analytics, etc. — congratulations! Now comes the hard work of rethinking how your enterprise operates in this new era with these new tools. 2017 will be about embracing agile principles that allow for shifting priorities; empow- ering employees with “small-team” mentalities that drive innovation; and using data to put the right information at the right time in front of every single employee. In short, it’s about changing … everything. And guess what? That reconfiguration starts at the top. Executives will need to be substantially more digitally savvy to do this well — putting in effective guardrails to guide their organizations, rather than slowing progress with red tape and bureau- cracy. Time for a training session, perhaps? (Read more about becoming a 21st century enterprise, on page 48.) 2.RISE OF THE INTELLIGENT MACHINES Something amazing happened in 2016 that may have slipped through your Twitter feed: Artificial intelligence beat a human expert at the highly complex, intuition-based game of Pokémon Go. The event signaled a growing awareness that technology is becoming better at “people tasks” than are actual people. In many cases, machines can outthink us, integrate broad information sets, find correlations and predict best possible outcomes. What does this mean for business? Meet your new employees! In 2017, intelligent machines will be coming to the workplace — to the board- room, to the physician’s office, to the factory and beyond. We’ll be looking for these information purveyors to improve outcomes, innovation and enterprise productivity — and the workplace will be forever changed by their rise. 6 TECHNOLOGY TRENDS That Will Change Business in 2017 Technologists tend to have one eye firmly focused on the future, convinced that there is always a better, faster, more effective way to solve today’s challenges and that technology can help us achieve it. CSC CTO Dan Hushon offers his thoughts on 2017, naming six IT trends to his “must-watch” list for the year. He predicts a business world that is less hierarchical, more innovative, better connected and more accepting of emerging technology.
  19. 19. 17JANUARY 2017 | CSC WORLD 3.MATURING OF IoT AND THE INDUSTRIAL INTERNET Bold prediction: Every manufacturer and service firm will have an Internet of Things (IoT) strategy by the end of 2017. Why? Because enterprises are starting to realize how valuable IoT data is for improving supply chains, service capabilities, customer experience, partner relationships and more. In 2017, enterprises will be looking to invest in platforms that make it easier to incorporate IoT in the overall business strategy, Hushon says. When combined with sensor-based devices, the emergence of 5G networking and the Industrial Internet (the tools that bring it all together), IoT data can be used to improve the business and productivity. Now, that’s worth the investment. 4.EMERGENCE OF THE SINOSPHERE AS AN INNOVATION LEADER Those who orbit Silicon Valley may discount the innovation happening in the rest of the world. But that could change in 2017, as tech companies in the Sinosphere — the East Asian cultural sphere historically influenced by China — emerge as possible competitors to the Silicon Valley crowd. The region invests heavily in mathematics, science and computer education. It’s also experiencing a bit of a renaissance due to a growing cultural acceptance of risk. The countries have large, unique populations that make up a huge marketplace. Accompanied by technical resources and a surge in innovation, the Silk Road of history may play a more prominent role in markets closer to the Silicon Valley galaxy. 5.NEXT WAVE OF DIGITAL INTERFACE: VIRTUAL AND AUGMENTED REALITY Who didn’t catch Pokémon Go fever in 2016? The augmented reality game thrilled players and brought to life the great potential of virtual and augmented reality (VR/AR). 2017 will be the year these game-changing technologies move more aggressively into the workplace. Expect VR/AR pilot projects to turn into established tools that can aid workers in fields as diverse as travel and transportation, manufacturing, healthcare, public sector, retail, training and more. Hushon expects these tools to advance in the months to come and increase productivity as they are adopted. Get your devices ready! 6.INCREASED ADOPTION AND SIMPLIFICATION OF CLOUD PLATFORMS “Business is cloud bound” — that’s so 2016. What’s “in” for 2017 is increasing the pace and extent of cloud adoption while making it easier for the enterprise to control it. In talking to business leaders, Hushon hears many describe an 80/20 plan for the years ahead. They expect to migrate 80% of their operations to the cloud by 2020, a remarkable shift in perspective from just a few years ago. The massive growth in cloud use may increase competition and consolidation among providers, forcing them to distinguish themselves through simplicity, automation and functions of agility, analytics and cognition computing. As a result, the cloud of 2017 — and beyond — will be easier, safer and cheaper for the enterprise. Learn more at csc.com/2017. HOW DID CTO DAN HUSHON’S 2016 PREDICTIONS WEATHER THE TEST OF TIME? LET’S TAKE A LOOK! Contextual data drives value No question, 2016 was the year of contextualized information. We saw it guiding presidential elections, enterprise decisions and beyond. And the trend is only ramping up. Increase in cyberattacks The threat landscape certainly expanded in 2016, and cybercriminals took full advantage of it with major attacks that may have even played a role in the U.S. presi- dential election. Business is scrambling to catch up. API economy is strong Couldn’t be stronger. “We’ve seen companies reinvent themselves under their APIs,” Hushon says. CIOs partner to bring information into context IT continues to be an integral partner of the business — not an adjunct but core to the business strategy. Enterprise platform players converge 2016 saw the historic merger of Dell and EMC. The consoli- dation answered market demand for more standard- ized, agile platform solutions. At CSC, we call this approach Modern Platform and see it being a promising area in 2017, as well. GRADING 2016
  20. 20. 18 CSC WORLD | JANUARY 2017 CROSS-INDUSTRY 7 THREATSto the BUSINESS/IT RELATIONSHIP by Christine Neff With technology now crucial to all aspects of business, organizations must find ways to build strong relationships between IT people and their colleagues in the rest of the enterprise. In an attempt to resolve this age-old problem, the role of business relationship manager (BRM) has emerged. At some companies this is a dedicated role, while other organizations task everyone in IT with the important work of collaboration. With either approach, some organizational challenges can hinder the success of the BRM function. Dr. Robina Chatham, a research associate at CSC’s Leading Edge Forum, describes seven cultural challenges that can have a negative impact on the work of BRMs in an enterprise — and how to overcome them. 1. INCONSISTENT MESSAGES As go-betweens for IT and the other business units, BRMs often receive conflicting messages about priorities and constraints. “On the one hand, a business unit may be given to believe that IT should be able to deliver anything that is wanted, whereas the message given to IT is to work within a limited budget,” Chatham says. Successful BRMs will seek to resolve this conflict by asking for clear direction from the very top of the organization. They will promote a culture of open and candid conversations and prioritize demand according to business objectives. 2. DIFFICULTY COLLABORATING Beyond having the tools to collaborate, employees need the will to share ideas and work toward a common goal. Unfortunately, that doesn’t always happen. “Employees must be generous with their time and resources and be prepared to sacrifice departmental advantage for the greater good of the organization as a whole,” Chatham says. 3. FEAR OF FAILURE Success today relies on innovation and forward thinking — and that often requires taking a risk. When employees are afraid to make a mistake or do something wrong, new ideas can be stifled, Chatham says. “You need a culture where there is no fear of failure and where mistakes are viewed as an opportunity to learn,” she says. 18 CSC WORLD | JANUARY 2017
  21. 21. 19JANUARY 2017 | CSC WORLD 5SURPRISING TRAITS OF SUCCESSFUL BRMs Not everyone is cut out to be a busi- ness relationship manager (BRM). In fact, some of the most high-achieving IT employees have trouble mastering this role. Dr. Robina Chatham of the Leading Edge Forum offers these five traits of successful BRMs: HUMBLENESS “You need to exercise a degree of humility in dealing with people, but this needs to be coupled with a fierce resolve to make a difference,” Chatham says. LIKABILITY A likable personality can help BRMs develop important business relation- ships. We tend to listen to and spend more time with people we like and who give us energy than with people we don’t like and who drain us of energy. OPTIMISM A successful BRM needs a positive, “can-do” attitude. CURIOSITY With technology advancing at a crazy pace, BRMs need to always be open to change and curious about what’s next. BEING A MISFIT The oddball, the outsider, the generalist, the person who doesn’t quite fit in — he or she might make an ideal BRM. Read the Leading Edge Forum report, Raising IT’s Game Through BRM, at leadingedgeforum.com/ publication/raising-its-game- through-brm. While many organizations are saddled with these seven challenges, they can be overcome. Chatham recommends opening employees’ eyes to the cultural roadblocks by recruiting a small, catalytic group — at first — of people willing to challenge the status quo, authority and accepted wisdom. 4. THE IT STEREOTYPE IT folks are a little geeky, too analytical and more comfortable with computers than with people, right? Well, even though that’s not true, BRMs should make a conscious effort to dispel the myth by emulating the behavior of their business partners, Chatham says. “It’s about being seen first and foremost as a businessperson who just happens to be focused on IT-related matters,” she says. 7. LACK OF DIVERSITY Enterprises can fall into the trap of hiring and promoting people who seem to be “clones” in terms of their personal backgrounds, job experience and person- alities. Doing this can limit innovation, as employees look at problems through the “same set of eyes,” Chatham says. Instead, organizations should strive to build teams with people from diverse backgrounds, work history, cultures and so forth. “The more diversity you have, the more likely you are to come up with great ideas,” she says. 5. LITTLE ACCESS TO BUSINESS PARTNERS Having the right people on your side can make all the difference to the success of a project, but this is sometimes easier said than done. BRMs may have trouble getting access to the right leaders, especially if that person has a higher title or status, Chatham says. “If you don’t have that access, you might not be able to get your job done,” she says. This poses more of a challenge in the United States than in the United Kingdom, according to Chatham’s research. 6. ELEPHANTS IN THE ROOM A challenge that’s more common in the United Kingdom than in the United States is a desire to avoid “taboo” subjects or forbidden conversations, even when those issues desperately need to be discussed. “We end up having elephants in the room: zones of uncomfortable debate,” Chatham says. BRMs must learn to raise issues in an acceptable way — depersonalizing them can help — to solve problems and facilitate change. CHRISTINE NEFF is a content editor with CSC’s global content team.
  22. 22. 20 CSC WORLD | JANUARY 2017 HEALTHCARE DIGITAL PATIENT JOURNAL Streamlines Care in Denmark An ambulance arrives at the scene of an accident. Paramedics rush to assist an injured pedestrian. They assess vital signs — heart rate, blood pressure, oxygen saturation levels. They load the patient into the vehicle and race to the hospital. In emergencies like these, time is critical — and errors can be life-threatening. But until recently, ambulance crews in Denmark faced significant challenges. Paramedics used pen and paper to record patients’ vital signs. And they had to communicate with the hospital by telephone. That has changed with the implementation of Pre-hospital Patient Journal (PPJ), a digital tool used to record and communicate patient conditions from that very first encounter. The project, which was designed, integrated and delivered by CSC, has been adopted throughout Denmark and is improving patient outcomes.
  23. 23. 21JANUARY 2017 | CSC WORLD Saving time and lives Formerly, when treating patients at the scene and on the way to the hospital, Danish paramedics documented vital signs and patient conditions in a handwritten journal. These notes — recorded during a very hectic time — were often unreadable. With the digital PPJ, the ambulance team can communicate directly with doctors and nurses at the hospital. Paramedics key in vital information while on the way, and data from the ECG monitor transfers directly to the PPJ via Bluetooth. Hospital staff can access this data in real time, and the mobile team can access medical records from the field, preventing major errors, such as giving medication that might cause an allergic reaction. “The [PPJ] solution has solved a number of different daily challenges,” says Jan Lindberg, AMK control center director in the region of North Jutland. “One of them is the registration of information about the patient from the moment you arrive at the patient until the patient is at the hospital. In some situations, there is both an acute ambulance doctor and an ambulance [crew] involved in the treatment of the patient, and with the new prehospital solution, both the ambulance doctor and the paramedics are able to write in the same journal. And subsequently, at the hospital, you can follow the treatment of the patient.” Healthcare professionals have benefited greatly from the system. “We can see when [an emergency crew] has completed a task and delivered a patient to us at the hospital. Then we can go into our system and see what happened at the scene, what were the values, what happened before the patient arrived and so on,” says Dorthe Kragelund, emergency department nurse. The PPJ also lets healthcare professionals evaluate and transmit a patient’s condition ahead of arrival, allowing the hospital to prioritize care. A status recommendation of “red,” “yellow” or “green” is made, Kragelund says, depending on severity. A “red” or more seriously ill patient will arrive as a “priority one.” “The [PPJ] screen helps me coordinate my patients so I know [whom] to take in or out of the departments,” she says. “I can also chat live via the screen with the ambulances at the scene, so I can tell them ‘Drive to Room 1.’ I can continuously evaluate what is incoming and what to prioritize now and later. It makes the workflow easier throughout the whole system.” An example of agile healthcare The project required a smart, sophisticated approach, as Torben Christensen, program manager at CSC, explains. “It is clearly a complex technical issue to integrate more than 500 ambulances, medical cars [distress cars with doctors] and emergency helicopters in the whole of Denmark with the emergency centers that receive the patients.” Client: Danish Regions Challenge: • Lack of digital recordkeeping for ambulance and emergency medical teams • Diverse approaches to prehospital care throughout the country • Poor coordination between paramedics and hospital staff Solution: • Implement digital Pre-hospital Patient Journal (PPJ) • Train ambulance and medical personnel across Denmark • Integrate PPJ with hospital systems and dispatch centers Results: • Optimized patient treatment and data delivery • Coordinated prehospital care throughout Denmark • Improved patient outcomes Learn more at csc.com/healthcare. To accommodate the unique needs of five distinct regions and ensure success with implementing a common system, Christensen says, “CSC has facilitated a process where the regions are involved to meet diverse needs in the new common solution. Now it is the same solution in every ambulance, no matter where you encounter it in Denmark.” The PPJ, described as “intuitive” and “user friendly,” is the first system that unifies the approach to what Denmark calls “prehospital” care. “The best thing about the system is the raising of the patient’s safety,” says Mads Kjær Nielsen, paramedic at Region North Jutland. “It is easier to create an overview of the state of the patient. It eases the medical treatment. It eases the conditions in the transition of vital information to the receiving departments, and overall, the registering of the complete patient progress is much easier and more streamlined now than it was before.” In addition to designing and delivering the solution, CSC led the cooperative efforts of five companies involved in the work, and it now supports the customer operations center as a managed service, 24x7. The client expects to call on CSC for future improvements. “We already have ideas for new functions to implement in it, and I am totally confident that CSC will be part of the advanced expansion for the coming years,” Lindberg says.
  24. 24. 22 CSC WORLD | JANUARY 201722 CSC WORLD | JANUARY 2017 Life sciences companies are pulled in all directions. They must stay abreast of complex regulatory devel- opments that affect their entire product life cycle. They must innovate to grow. And they must embrace digital technology and the disruptions that come with it — the new ways of thinking, collaborating and engaging with partners, affiliates and health authorities. With so many demands on time and resources, business leaders want to procure compliant technology and proficient personnel efficiently and cost effectively. Business process services (BPS) can meet those needs. BPS spans strategic consulting, business process development, technology expertise and document analysis — right down to the preparation of regulatory documents. Here are three scenarios in which BPS takes life sciences companies beyond simply partnering for submission document management and toward achieving true transformational change. LIFE SCIENCES by Michelle Gyzen 3 SCENARIOS FOR BPS SUCCESS IN LIFE SCIENCES AGILE WORKLOAD MANAGEMENT Life sciences leaders must sustain a delicate but critical balance between run-and-maintain and build-and-grow. The industry’s global nature means that companies will likely have products in regions where the primary focus is on life-cycle maintenance, and systems and data centers must be properly resourced. On the other hand, companies must also manage times of constraint, while ensuring that the business doesn’t falter when challenges arise. BPS lets companies not only maneuver the overflow from multiple regulatory activities, but also engage SMEs to improve processes. Regulatory departments are particularly subject to the peaks and troughs of global submissions, with staff members underutilized for some periods and overtaxed at others. BPS helps fill those gaps. Scenario 1: A midsize pharmaceutical company with a focus on pioneering pain management underwent significant corporate cost reductions, taking its regulatory department from 18 people to five. As this occurred during a period of increased regulatory submission demand, the loss of expertise made it difficult to meet those demands. Choosing a BPS partner that could support significant increases in workload was a priority. The company selected a robust document management system and a cloud-based solution to flexibly manage electronic document submissions and allow both its staff and its BPS partner to perform publishing and quality control. By selecting a partner with follow-the-sun capabilities, the company took advantage of both onshore and offshore capacity to effectively manage its workload. 22 CSC WORLD | JANUARY 2017
  25. 25. 23JANUARY 2017 | CSC WORLD 23JANUARY 2017 | CSC WORLD OPERATIONAL EFFICIENCY Life sciences companies of all sizes are trying to cut costs while delivering higher-quality outcomes. Company growth and divestments occur frequently, often creating situations where companies are growing rapidly, changing direction, or trying to integrate new businesses or products — all with fewer people. Small innovative companies with little regulatory expertise might be focused on getting a product through research and development and approval, and must remain lean to attract buyers or partners. Larger companies might focus on diversification and reinvention, while having a partner handle the day-to-day activities involved in getting submissions out the door. BPS lets companies grow, at whatever stage they are, without having to add permanent head count. Scenario 3: A small oncology-focused life sciences company had an investigational new drug and was preparing its first electronic submission to the FDA. Its small regulatory group had no publishers in-house, no tools to leverage an electronic submission and no expertise to manage the process properly. With a BPS partner, the company gained access to high-performance tools, domain expertise and submission-publishing best practices. Through the partnership, the company has gained a flexible and scalable model for submissions, allowing it to focus on value-add and core competency activities. OPERATIONALIZING BUSINESS CHANGE Change is the one constant. Whether it’s a new product, new region, downsizing, an acquisition, diversification or meeting new requirements, life sciences leaders are continually assessing their ability to manage change. It’s key to determine what is required to support business change and how best to respond to an increasingly patient-centric healthcare marketplace. BPS aligns technology and processes to increase efficiency and create a productive environment for change. Scenario 2: For more than 10 years, a small biotech company with a focus on rare diseases has worked with an outsourcing partner to handle full submission management to the U.S. Food and Drug Administration (FDA) and the European Medicines Agency. At first, the company had a small regulatory group with no publishing capabilities in-house and no expertise for managing Electronic Common Technical Documents (eCTD) submissions. In recent years, the company wanted to bring some publishing in-house and sought help to manage this change through a software-as-a-service platform and ongoing BPS support. Thanks to the guidance gained through a long-term part- nership, the company has matured and changed to the point that it can now take ownership of publishing while working with its BPS partner as needed. The life sciences industry is evolving rapidly, and today’s healthcare ecosystem is becoming increasingly complex. By combining flexible, progressive processes and technology with deep domain experience, a strategic business process services approach can help companies drive change. Learn more at csc.com/bps. MICHELLE GYZEN is global head of life sciences business process services at CSC. 23JANUARY 2017 | CSC WORLD
  26. 26. 24 CSC WORLD | JANUARY 2017 Many companies that regularly navigate the challenges of eDiscovery still suffer significant inefficiencies. There is, however, a way to eliminate many of these inefficiencies, while still achieving compliance. by Ed McCracken INSURANCE
  27. 27. 25JANUARY 2017 | CSC WORLD n electronic discovery, as in most things, it’s best to learn from others’ mistakes. Consider one company’s decision to handle its own eDiscovery needs. Facing a class action lawsuit, the firm’s leaders determined, reasonably enough, that an esti- mated cost of $30,000 for data collection was a lot of money. They concluded further that they had capable, highly trained IT staff who could collect the necessary emails and other electronic files for the lawsuit’s discovery phase. Nevertheless, their decision cost the company an additional $800,000 to answer a plain- tiff’s claim of spoliation of evidence. They simply didn’t have the knowledge or tools to correctly gather and share data in a legally defensible way. While larger companies are unlikely to take a comprehensive do-it-yourself approach to eDiscovery, they are prone to making similar mistakes — such as thinking in terms of “data” rather than “evidence,” and involving unqualified individuals in the chain of custody for that evidence collection and handling. Just because an act or result may be technically defensible doesn’t mean it is legally defensible. And even in cases where companies partner with eDiscovery providers, they are likely to significantly overspend on the process through lack of standardized systems and processes. Emerging challenges In many cases, companies leave management of eDiscovery partners to legal counsel. While that may provide competent oversight, it can lead to serious inefficiency. One reason is that law firms in different jurisdictions are likely to partner with different eDiscovery firms, which means losing the potential advantages associated with a single eDiscovery partner. More important, law firms may act without deference to their clients’ budgetary constraints, and a given case can become a black hole of expense, with legal counsel ordering services without regard to cost. In the case of both systems and partnerships, compliance is typically offered as the rationale for multiple, disconnected capabilities; and, where there are different jurisdictions, compa- nies often believe it is prudent to maintain distinct capabilities. But fragmentation of systems and processes opens the door to irregular treatment of data, particularly for global companies whose data may reside in multiple jurisdictions. In the discovery process, data becomes evidence, and evidence requires a higher standard of care. Parties to a suit must be able to demonstrate an unbroken chain of custody of evidence, preserved in its original state, in a forensically sound manner. This requires the use of proper tools designed to both preserve the evidence’s metadata and provide an audit trail from beginning to end. Too often, data-collection tasks are assigned to IT professionals who are not forensically trained or certified. It is not unusual under such circumstances for data to be accidentally altered or even deleted, and there is a chance discovery will be either under- or over-inclusive. Well-trained IT staff may properly encrypt data before sending to an eDiscovery partner, but at any time during transit it could be intercepted or compromised — or even simply sent to the wrong address. When the discovery process reaches across national borders, the risk is even greater. The right approach All of these sources of inefficiency and potential error are solv- able with a single-partner model. With that in mind, here are key components of an effective eDiscovery solution: • Single partner. With a single service provider, companies are able to standardize workflow into highly repeatable and defensible processes. A single-partner approach also supports preferred pricing and volume discounting. • Single system. The right single-database system suite can provide uniform capabilities with a rich suite of intuitive tools necessary for conducting eDiscovery in compliant fashion, with vital integration into relevant client systems. • Elastic cloud infrastructure. eDiscovery is an extremely unpredictable process, which can drag on for months or years beyond expectations — or come to an abrupt end. It would be hard to find a software capability better suited to a variable cost, consumption-based approach, which allows a client to easily scale up and scale down as needed. • Globally standardized protocols. Global reach means highly defensible forensic processes, compliant in all jurisdictions. It also means consistent, repeatable processes to both maxi- mize efficiency and reduce the opportunity for error caused by handoffs. • Proven enterprise network. A highly scalable infrastructure should provide agile configuration as well as control over where data is processed and stored, and with whom. It should also include excellent standard security layers and tiered storage capabilities. Those who place eDiscovery in the hands of specialists will signif- icantly reduce risk and increase efficiency, enabling eDiscovery management at an enterprise level, and even on a global scale — all with a single partner. ED McCRACKEN is eDiscovery offering lead at CSC. I
  28. 28. 26 CSC WORLD | JANUARY 2017 The key to enabling transformation in today’s banking industry is to develop a nimble and efficient reference architecture. At a strategic level, a reference architecture determines the best delivery method for specific technologies within an institution’s IT infrastructure. It documents the hardware, software, specifications and configurations needed to deliver IT resources in the most efficient manner, and it provides the standard for change. An effective and up-to-date reference architecture reduces integration complexity and aligns business goals with IT. And, when continually revised and updated, it can position a financial institution to better address new regulatory demands and unlock additional revenue through an improved customer experience. by Venkataraman Balasubramanian BANKING to Banking TRANSFORMATION 26 CSC WORLD | JANUARY 2017
  29. 29. 27JANUARY 2017 | CSC WORLD 1 4 2 3 Embrace an outside-in perspective An outside-in approach — a corporate mindset that first looks outside the enterprise for inspiration, expertise and innovation — can provide a critical forward-thinking per- spective to a bank’s transformation initiatives. While inside-out practices will never fully go away, the key is to blend in-house capabilities and best practices with an openness to emerging outside-in possibilities. To do this, a bank’s reference architecture should be consistent and enterprise-wide, allowing all relevant areas of an organization to benefit and share the information and advantages that outside-in technologies and best practices can provide. Be open to the utility model Over the course of reworking a reference architecture, you may determine that certain non-core functions are better off outsourced or performed by a utility. Very few institutions in any vertical excel at everything. Operational tasks that are not core competencies can be outsourced to third parties that specialize in a given area. This can help streamline operations and release additional resources for core functions and for innovation. Take advantage of new data With the rise of ubiquitous connectivity and the increas- ing use of social media, more personal information is available about consumers — much of it freely accessible in online databases. By tapping into this information, banks can improve the way they interact with their current and potential customers. Turning data into actionable intelligence is far from easy; companies in all industries struggle with this task. But with the right architecture, banks can turn consumer data into insight that can be used to inform and support intuition and innovative decision making. Start your transformation now It can be easy for banks to simply follow the path of least resistance and leave old systems in place, untouched. But in a market that requires true transformation, this kind of “if it ain’t broke” mentality is no longer acceptable. Instead, banks must start the process of evolving their purpose-built systems to improve efficiency and match today’s accelerated business requirements. No one evolutionary path is right for all institutions. Some systems may be best switched out, while others may benefit from more gradual improvement through an outside-in approach that ultimately leads to delivery as a service. Those in the earlier stages of transformation may benefit from external consulting and commercial off-the-shelf software, which can often replace proprietary legacy systems. Others might be ready to move to cloud infrastructure or even native cloud applications and outsourced business processes. The battle in today’s banking industry is for control of the customer experience. This software-enabled interface layer is where value and profit margins now reside. To gain control of this layer — and, by extension, of the customer experience — banking institutions require a new business strategy and a revised reference architecture that aligns IT resources with new business goals. The process must begin soon, if banks hope to win against an increasing number of competitors. VENKATARAMAN BALASUBRAMANIAN is chief technology officer for the banking and capital markets industry at CSC. To achieve this, banks should follow four key principles: 27JANUARY 2017 | CSC WORLD
  30. 30. 28 CSC WORLD | JANUARY 2017 MANUFACTURING Client: Oshkosh Corporation Challenge: • Reliance on 15 different systems and custom SharePoint sites for IT service management • Lack of a single tracking and reporting system, reducing enterprise visibility • Poor experience for internal customers, with no mobile access or status reporting Solution: • Centralize enterprise-wide service management with ServiceNow for 8,500 users • Create shopping cart experience similar to that of online retailers • Launch mobile app globally Results: • Reduced 5-year IT spend forecast by $3 million • Eliminated 36,000 unneeded approvals annually • Dramatically improved service levels, enterprise oversight, audit compliance Firm Transforms User Experience with IT Service Management Specialty vehicle manufacturer Oshkosh Corporation, maker of the U.S. military’s Joint Light Tactical Vehicle, recently faced a major challenge. The company was supporting 15 different systems and custom SharePoint sites for IT service management, making it difficult to track and update service requests from more than 13,000 employees and thou- sands of contractors in 23 countries.
  31. 31. 29JANUARY 2017 | CSC WORLD Oshkosh Corporation had acquired numerous systems through business acquisitions, across four main business segments: access equipment, defense, fire and emergency, and commercial. IT staff had to work with numerous dated systems to develop spread- sheets, reducing enterprise visibility and hurting audit compliance. “Multiple tools were used for tracking work and gave us no useful reporting,” recalls Greg Downer, the company’s senior IT director. “The tool enhancements were costly, and 60 IT teams across 14 global companies had their own processes.” Today, after consolidating on ServiceNow through the consulting and implementation services of Fruition Partners, a CSC company, the IT organization provides centralized, cloud-based service management. Service is available via mobile devices through a shopping cart experience similar to that of online retailers. When Downer first came to Oshkosh, he says, he almost imme- diately reached out to ServiceNow provider Fruition Partners, which was acquired by CSC in 2015. The ServiceNow system they envisioned and implemented is called OSCAR, short for Oshkosh Service Catalogue and Request. OSCAR went live over a weekend through a big-bang conversion, delivering enterprise IT service management in a single system to all of the company’s organizations. The consolidated system reduced the 5-year IT spending forecast by $3 million — money the company can now use for other customer-focused IT projects. And that’s a significant savings, given the company’s size. In its fiscal year 2015, the company had $6.1 billion in revenue. Improved service levels OSCAR has resulted in a dramatic improvement in service levels, says Downer. Before deploying the new system, the company had no mobile capability, online status report or portal. For a service request, users submitted an email form or created a form in SharePoint that did not have automated workflow capability. “When we compared the old workflows to the new, we found that we eliminated 36,000 non-value-add approvals a year,” Downer said. “We just had approvals everywhere, and many of them were not necessary.” OSCAR now does immediate software distribution for 8,500 users. As soon as a request for standard software is approved and a package is available, the company deploys it immediately. There’s no human triage or workgroup or assignment group. The company receives about 2,000 of these kinds of requests a year, says Downer. Other features include single sign-on, a shopping cart experience similar to online retailers for service requests, real-time chat with a service desk agent by language and by region, and online, real- time status visibility for all issues and requests. “We now have one single portal for all 8,500 users that we support,” Downer says. “And the deployment of analytics on mobile devices for our IT management has provided better decision support.” Expanding across the business Roughly 30 days after Oshkosh Corporation went live with OSCAR, employees in Human Resources (HR) came to IT with quite a few challenges. “They had tons of systems, tons of Domino databases and SharePoint sites, the way we had in the IT depart- ment,” Downer says. “They asked if they could put their data in OSCAR, and we said that is the absolute intent of the system.” The process is ongoing. Downer says HR has about 18 months of process work to do before the department will be ready to automate. The IT department faced a similar time frame; it took about a year before OSCAR went live. “The technology was there, but we just had a ton of workflow processes to get through internally,” Downer explains. Rolling out OSCAR across other areas of the business will require working through many workflow challenges. Downer hopes all departments, from Facilities to Legal to Purchasing, will work closely with Fruition Partners to use OSCAR. “The accelerators and intellectual property that Fruition Partners invests in are everything to us,” he says. “That helps us move faster and avoid common pitfalls, which is the true definition of consulting. Other companies claim to have accelerators, but they are not as sophisticated and mature as Fruition Partners’ practice at CSC.” Images courtesy of Oshkosh Corporation
  32. 32. 30 CSC WORLD | JANUARY 2017 Media companies once relied on darkrooms, printing presses, videotape and antennas to create, archive and distribute content — but the technology available to today’s media provides much richer opportunities to collaborate and create, anytime, anywhere. A YouTube star can shoot a high-quality video with her smart- phone in the comfort of her home, edit it with user-friendly tools and upload it to an audience of millions in a few short hours. A reporter on the beat in a war-torn country can publish a story and respond to reader comments and questions via social media from half a world away. The possibilities are amazing — but they’re not yet endless. Far too many organizations are behind the times when it comes to the digital workplace. These enterprises may have data siloed in inaccessible systems, applications that fail to communicate with each other, and security policies that can’t accommodate an outside-in approach to work. For content producers, those lags result in lost productivity. For businesses, they result in poorly enabled employees, talent- retention issues and ultimately, missed revenue opportunities. To empower employees, engage with audiences and realize revenue potential, media companies must perfect the dance of co-creation among producers (photographers, journalists, videographers, filmmakers, citizen reporters), editors, vendors and audiences — wherever they are and whenever they feel like dancing. The good news is that digital technologies — modern platforms, applications, networks, clouds and security tools — make it entirely possible to build this type of work experience. Here’s what that experience might look like: • Simplified access to information: Employees should be able to access applications and information from various physical and virtual devices, both inside and outside the firewall. But this can create challenges for IT in protecting enterprise secu- rity while enabling access. One solution enables identity and resource access controls through enterprise security systems, providing a gateway to both privately and publicly hosted applications and information. • A collaborative experience with centralized controls: Controlled collaboration improves productivity and, especially in this industry, creativity. The right tools will break down barriers of location, data, systems compatibility and access control. • Enabled end users: Self-service is the primary driver of digital applications. End users should be able to access, install, configure, use and retire applications whenever necessary. • Personalized experiences for each role: Solutions should focus on the employee and their job requirements, as these factors dictate access to certain tools and information. Enabled employees are productive employees and, better yet, creative employees. As media companies confront the myriad pressures to compete in the digital marketplace, it’s imperative that their enterprises empower employees and retain talent in the produc- tion of high-quality, cutting-edge products, while attracting new audiences and driving revenues. By making collaboration quick and easy for producers, wherever they may be, technology can spur innovation, creativity and success. SCOTT DRYBURGH is CSC’s industry lead for media. Digital Workplace by Scott Dryburgh COMMUNICATIONS, MEDIA AND HIGH TECH REC POWERS CREATIVITY
  33. 33. 31JANUARY 2017 | CSC WORLD The airline industry has made momentous advancements in recent years. The planes are top notch, and services are better than ever. Passengers on some planes can now watch their favorite TV shows and log on to Wi-Fi while reclining in an ergonomic seat. But the industry hasn’t yet figured out how to transfer that positive experience to outside the plane. The process of air travel continues to be challenging, often frustrating and open to unexpected inconveniences for travelers. In the Age of the Consumer, this approach simply doesn’t fly. In a lot of ways, the technology needed to improve the transit track wasn’t up to the task. But with the Internet of Things (IoT), mobile devices, ubiquitous Wi-Fi and modern business processes, airlines can now usher customers through that end-to-end travel journey in a way that improves the overall experience. They can pull together an ecosystem of service providers that can communicate with each other and with customers through new, connected channels. Imagine this scenario: A weather event results in delayed and canceled flights. Airline staff scrambles at the gates, trying to respond to passengers and help them find alternate routes to their destination. Tensions are high, and customers are not happy. A service agent whips out a secret weapon: a mobile tablet loaded with an application that provides real-time visibility into customers’ location and travel data. Knowing exactly where a million-miler is waiting, she walks into the rewards lounge and calmly asks to speak with “Mr. Smith,” pulling his profile up on the device. “I see you were headed to Chicago. As you may be aware, your flight has been canceled. I have an open seat on our flight to Midway boarding now at Gate A5. Can I make that change for you, and send a map to your phone to help you get to the gate? May we arrange a car to drive you to your original destination, O’Hare?” Before a grateful Mr. Smith can even say “Thank you,” she adds, “I also sent a complimentary drink ticket to your airline app so you can relax with your favorite Chardonnay.” Sound too good to be true? I bet Mr. Smith thinks so. And I bet he continues being a valued customer of the airline. By connecting applications, data and services from the airline, the airport, the airport vendors, IoT, sensors and a variety of sources, airlines can create this personalized and helpful mobile experience. And they know they have to. According to Atmosphere Research Group, airlines rate their mobile apps as their fifth most important customer service channel today, but they anticipate mobile becoming the most important channel by 2021. With the rich data generated by a platform like this, service providers can learn about customers’ preferences and behavior. Aggregated data can be analyzed to drive insights and help business leaders make better decisions about inventory, operations, staffing and more. Best of all, the industry can improve on and truly own the full experience, turning passengers into smarter, happier travelers. PAUL WAGNER is industry general manager for travel and transportation at CSC. TRAVEL AND TRANSPORTATION SMARTER TRAVELby Paul Wagner The industry is ready for a digital app ecosystem that can improve the transit track Learn more about CSC’s Time Traveler offering at csc.com/timetraveler.
  34. 34. 32 CSC WORLD | JANUARY 2017 CLOUD “Digital Darwinism” is a popular term in business today, summarizing the impact of technology on enterprises, industries and countries, while subtly implying the consequences for those who fail to adapt. Also, it’s a trap. While this media-friendly euphemism neatly packages the idea, it doesn’t go far enough to convey the scope and urgency of change in today’s competitive environment. 4 Steps to SurviveDigital Darwinism by H. Sean Ross Making the Evolutionary Leap with Cloud
  35. 35. 33JANUARY 2017 | CSC WORLD Evolution, scientist Charles Darwin said, is the small, steady accumulation of evolutionary traits. IT, however, faces multiple waves of change all at once: a) the dramatic rise of inexpensive computing power, storage and fast network speeds; b) compression-driven virtualization and software automation throughout the IT stack; and c) disrupted economic levers signaling unprecedented change in traditional business models. As in nature, the most agile businesses are the fittest. The companies that are destined to survive and thrive can envision their “great change,” as well as the intermediate steps needed to achieve it. They have the ability to make rapid adjustments to create a lasting and sustainable business. Here are four strategies to avoid falling victim to Digital Darwinism. Put people first People issues should get front-and-center attention in every large-scale technology transformation. Cloud migration projects, in particular, broadly impact IT staff. For example, platform engineering is a function typically replicated across the enterprise. In the new cloud operating model, platform engineering is consolidated into a single team that provides services to all business units. As the company leverages new technologies, it needs less brawn and task management, and more brainpower and accountability. But success hinges on the people most affected. Leaders must communicate the business vision for the organization, make a genuine, pragmatic and empathetic case for the need to change, and strike a healthy balance between fear and excitement when discussing the consequences of inaction and the opportunities that change presents. Target the right opportunities In our experience, a frequent cause of transformation failure is that too many companies embark on projects that target existing applications or infrastructure. This reengineering wastes time and resources and doesn’t move the enterprise forward or generate momentum. Consider the life cycle of a virtual machine (VM). It once required 60 to 90 days to provision and hand off a VM to users. Many of the provisioning tasks were steeped in years of traditional project-and-approval management, including weeks to define the network and firewall assignments for each VM. As they moved toward cloud, many organizations initially tried to replicate that process in an online system. This was a costly mistake, resulting in an even lengthier time to provision. After taking a step back, CSC identified patterns for network configuration that could make the process transparent to users of the VM. This created a more reliable network, and it improved hand-off times by 80%. Establish lighthouse teams A core group of stakeholders who have the skills, ambition and resources needed to drive change in the business should set the trans- formation process in motion. These employees have the staff and the political and financial resources to effect change. They understand the imperative, the important business drivers and the necessary skills. This lighthouse team will learn how to use new tools and approaches, explore how roles will change in the future and learn how to function effectively in those new roles. Empowered with an executive mandate, funding and technologies, these teams can begin experimenting and producing tangible results that align with the company’s new strategic direction. They can collaborate with business unit leaders and key staff members to make a case for future change. Begin your journey today The opportunities presented by today’s cloud operating model, rapid-development tools and the automation of hybrid cloud management are exciting, daunting and essential. Companies that adopt these next-generation technologies equip themselves with a new foundation for success. Those that do not, face a difficult and dangerous future. The impact of these changes is enterprise-wide, and for the IT department, it represents an entirely new way of doing business. Roles shift. Consolidation occurs. New skills and mind-sets are required. The shift to a digital operating model is not an easy transition to make, but it is absolutely essential in the survival of the fittest. It’s a journey we at CSC have experienced many times with our clients and in our own business operations, which are constantly evolving. Many of our traditional offerings have evolved into new, digital offerings, such as our hyperconverged and software- based CSC Agility Platform™. We’ve integrated our digital service management offerings, retrained our teams and created new positions — all with the goal of empowering our clients’ transformations. H. SEAN ROSS is a global leader for cloud professional services at CSC. 1 3 4 2
  36. 36. 34 CSC WORLD | JANUARY 2017 INDUSTRIAL MACHINE LEARNING USHERS IN NEW ERAOF ANALYTICS by Jerry Overton 34 CSC WORLD | JANUARY 2017 BIG DATA
  37. 37. 35JANUARY 2017 | CSC WORLD Many large enterprises realize that their data can give them rapid, useful insights for implementing changes that will benefit their business. But as the volume of data grows, it becomes more difficult for these companies to extract meaning from it. The solution is industrial machine learning (IML), which can consistently produce data-driven insights at enterprise scale. IML can ingest data, build algorithms, deploy them into production and generate continuous insights into ongoing business problems. A modern twist IML is a modern take on a very old idea: the scientific method. Data scientists start with a hypothesis and collect data that could be useful in evaluating the hypothesis. They then gener- ate a model and use it to explain the data. They evaluate the model’s credibility based on how well it explains the observed data, and continue to evaluate it based on how well it explains new data collected later. When it comes to discovering insights, this method works consistently well. The modern twist uses digital infrastructure to apply this method in an enterprise, collecting data through a continuous pipeline and using business algorithms running in production as the models. Experiments are done in very short sprints that force data scientists to focus on discovering insights in small, meaningful chunks. IML for healthcare In healthcare, insights about hospital procedures can help improve patient care and hospital outcomes. We used a data strategy based on IML to supplement hospital administrative data with rich information from the healthcare provider, includ- ing electronic patient records and other routinely collected data. We looked for features that were most important in predicting length of stay for patients undergoing hip or knee replace- ments. We found key leading indicators, such as the patient’s age, their core healthcare providers and secondary diagnosis. From these, we built a regression model, which allowed us to predict how long a patient would stay in the hospital. Those predictions became the basis of operational dashboards that alerted hospitals to future costs and helped identify patients who might experience problems in recovery. IML in energy In mining, smart equipment management can save a lot of money and improve operations. Thousands of factors affect the performance of complex machines, but by using a data strategy based on IML, we can monitor operations and predict machine problems before they happen. In a study, we found that the main causes of unscheduled machine maintenance were time spent waiting for other processes, crew meetings and training. The mining crew tends to spend downtime maintaining the equipment; it’s helpful to create a new maintenance category to track and give credit for these opportunistic maintenance events. Equipment damage happens after the crew spends a lot of time waiting due to mine blasting delays: The blasts create dust and, over time, the dust accumulates in the machinery. We found that some failures could be prevented just by alerting operations when a machine logs too many hours waiting due to blasting delays. Endless possibilities While these two examples illustrate the thinking and process of IML, the technique can be applied to businesses in all industries as a way to improve data-pipeline management, optimize applications and networks, enhance security and incident management, and streamline other tasks. Potential projects include: Retail and e-commerce • Optimizing supply chain • Managing inventory • Fueling recommendation engines and real-time, smart coupon delivery • Enabling 360-degree views of customers • Enhancing clickstream and social media analysis • Optimizing ad delivery Communications and media • Enabling smart metering and billing • Optimizing antennas • Monitoring equipment Banking • Enhancing fraud detection • Monitoring risk • Improving mobile transactions • Enabling intelligent alerts and notifications Insurance • Enhancing fraud detection • Improving underwriting and reducing risk • Enabling dynamic pricing models There is no shortage of data: Organizations must now produce reliable, data-driven business insights at enterprise scale, or find themselves at a serious disadvantage. This is the beginning of a new phase of big data, one that has little to do with data capture and storage — and everything to do with producing understandable and useful insights. JERRY OVERTON is a CSC Distinguished Engineer and head of advanced analytics research in CSC’s ResearchNetwork. BEN BRIDGEWATER, senior principal industry strategist in healthcare, and REBECCA POE, business manager for CSC’s healthcare and life sciences research network team, contrib- uted to this article. 35JANUARY 2017 | CSC WORLD
  38. 38. 36 CSC WORLD | JANUARY 2017 WHAT IS IT NOT? It’s not a database, at least not a traditional one. Data does not reside in a central location or server. A block- chain is distributed across a peer-to-peer network and therefore does not require a central “authority” to store and secure it. And it’s not Bitcoin — or at least, not exclusively. “Bitcoin is just one application of a blockchain and happens to be a very popular one,” says CSC Distinguished Engineer Faisal Siddiqi, an architect for CSC Mobile Insurance. The alternative currency has been influential in bringing the value of blockchain technology — and its possible applications — to light. WHAT ARE THE BENEFITS? One of the top benefits is trust. Unlike a traditional database, where trusted users must have secure access to a central server, in a blockchain trust is built into the transactions, which are secured by cryptography functions similar to those that secure many other types of transactions on the Internet. Other benefits include transparency (all transactions are visible to all participants) and immutability. It’s nearly impossible to make changes to transactions in the blockchain without detection, which reduces the chance of fraud and censorship. Rick Wilhelm, vice president of technology, CSC Global Business Services, also notes the availability and interoperability of the blockchain. “It’s allowing the transactions themselves to be broadly available for interaction, instead of worrying about the systems working with each other to pull the records out from a centralized, closely held repository,” he says. WHAT IS IT? A blockchain is, simply stated, a distributed data structure, a digital ledger. Transactions submitted by a network of users are collected into “blocks.” These are linked into a chain, with each block referencing the secure hash of the preceding block in the chain. Thus, the chain is always growing. The chain is maintained by a peer-to-peer network of specialized computing nodes, but any user can access and examine the full ledger at any time. “It’s a relatively simple concept, and that’s what makes it elegant,” says CSC Distinguished Engineer Bill Ohnemus, a principal in CSC’s insurance industry practice in the Americas. What You Need to Know Blockchain has been a hot topic in recent months, with startups and established companies alike exploring ways to put the technology to use. CSC experts see the potential it could bring to the many industries we serve. Here’s a look at what it is, what it does and how it could be coming soon to a business near you. by Christine Neff BLOCKCHAIN APPLICATIONS
  39. 39. 37JANUARY 2017 | CSC WORLD HOW CAN IT BE USED? Possible applications run the gamut, from speeding up banking transactions to improving loyalty rewards programs, from maintaining wills and land registries to opening up a new way for musicians to control the sale of their music. Here are some potential applications identified by CSC experts: INSURANCE As usage-based insurance for vehicles gains traction, made possible by the Internet of Things (IoT) and the connected car, blockchain becomes a natural discussion point for enabling the associated transactions. Martin Bartlett, a chief product architect in CSC’s insurance industry practice and a CSC Distinguished Engineer, says blockchain could be used to complete micropayments for a pay-as-you-go auto insurance model. The telemetry in the car could record and transmit mileage data, using the blockchain to charge customers on a per-mile basis. HEALTHCARE A blockchain could safely store and share information that’s commonly held in an electronic health record, says Siddiqi. The system could go a step further by completing insurance transactions based on the blockchain. “It bothers me that when I go to the doctor, there’s very little transparency. The authority [to use my data] is all over the place, and there’s no easy way for me to get permission to use my own data,” he says. “Blockchain could be the solution.” MANUFACTURING As the IoT continues to progress in manu- facturing, enterprises need a central source for tracking and maintaining data provided by multiple vendors in the supply chain. Wilhelm sees blockchain as a potential option. The technology, he says, could be used to capture and store data in the cloud, so multiple parties can gain visibility to a shared view of part, component and assembly data as manufacturing and logistics advance and obstacles are overcome. CROSS-INDUSTRY With biometrics and other technologies shifting the realities of identity authentica- tion, blockchain seems an intriguing next step in the evolution. Ohnemus describes the potential to create a “digital identity” that, once verified, creates a permanent history of a person’s transactions. “Once you build that initial block that contains your identity, it should be immutable and something you can use to prove identity.” As CSC experts and others continue to imagine, investigate and bring to life blockchain-based applications, it’s clear the technology has the potential to bring big changes to the world of business ­— and the impact will be felt across multiple industries. CHRISTINE NEFF is a content editor with CSC’s global content team.
  40. 40. 38 CSC WORLD | JANUARY 2017 Recognizing the Potential in DIGITAL CONSUMER AND RETAIL by David Woodhead Retailers have come to realize that customer experience is a moving target. What worked in the past — brick-and-mortar stores with high-touch service — no longer meets the needs of today’s highly networked and time- strapped consumers. And the demands of tomorrow may be different from the expectations of today. RETAIL

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