ERP is starting a slow journey to the cloud. Now is the time to start asking yourself – and your ERP vendor – tough questions to prepare for a high ROI. Join Cloud Computing Visionary David Linthicum (SVP at Cloud Technology Partners) for a fascinating discussion: >Redefine your cloud KPIs for achieving agility. >The “missing link” formula that determines ERP cloud value. >The 17 point stepping to the cloud checklist.

1. Understanding the Value
of Agility in the Cloud
•August 2015
•PANAYA WEBINAR

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Today’s Speakers
Ofira Shafir
Your Moderator
Panaya
David S. Linthicum
SVP
Cloud Technology Partners
PANAYA WEBINAR

3. How Real is All This?

4. The Traditional View of Cloud ROI
4

5. Why cloud?
The existing trajectory is not good
$
Capability

6. © 2006 The Linthicum Group. All Rights Reserved.
Reproduction without prior written permission is strictly prohibited.
•UNDERSTANDING THE ROI

7. © 2006 The Linthicum Group. All Rights Reserved.
Reproduction without prior written permission is strictly prohibited.
$500,000
$1,000,000
On-Premises

8. © 2006 The Linthicum Group. All Rights Reserved.
Reproduction without prior written permission is strictly prohibited.
Cloud Delivered

9. The New View of Cloud ROI
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10. The Value Proposition of Cloud
Computing: Agility
• We implement Cloud Computing for two major
reasons.
– First is the ability to save development dollars through
reuse of services (public or private).
– Second is the ability to change the IT infrastructure
faster to adapt to changing needs of the business, or
agility.
– Enhance, not replace, existing IT.

11. Reuse…Yes Again
• Under the concept of cloud (private and public)
service reuse, we have a few things we need to
determine to better define the value. These
include:
– The number of services that are reusable.
Complexity of the services. The degree of reuse
from system to system.
• The number of reusable services is the actual number of new
services created, or, existing services abstracted, that are
potentially reusable from system to system.
• The complexity of the services is the number of functions or
object points that make up the service.
• Finally, the degree of reuse from system to system is the
number of times you actually reuse the services. We look at
this number as a percentage.

12. So, What do you Do?
• In order to determine their value we must first determine
the Number of Services that are available for Reuse
(NSR), the Degree of Reuse (DR) from system to
system, as well as the Complexity (C) of each service.
• The formula to determine value looks much like this:
Value = (NSR*DR) * C

13. Cloud Computing=Agility
• Agility is a strategic advantage that is difficult to
measure in hard dollars, but not impossible. We first
need to determine a few things about the business,
including:
• The degree of change over time is really the number
of times over a particular period that the business reinvents itself to
adapt to a market.
• The ability to adapt to change is a number that states
the company’s ability to react to the need for change over time.
• Finally, the relative value of change is the amount of
money made as a direct result of changing the business.

14. What Does this All Mean?
• The ROI of cloud computing is problem
domain dependent.
– Your mileage will vary.
– There are few best practices.
• The concept of agility typically provides
more value than “traditional” cloud
computing ROI metrics.
– Hard to measure, but worth trying.
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15. Clouds are a fit when:
1. Processes, applications, and
data are largely independent
2. Points of integration are
well defined
3. Lower level of security is fine
4. Core internal enterprise
architecture is healthy
5. Web is the desired platform
6. Cost is an issue
7. Applications are new

16. Path to the clouds
Path to clouds: start
with the architecture
Understand:
• Mission drivers
• Information under
management
• Existing services under
management
• Core business
processes

17. Stepping to the Clouds

18. Final Words of Advice

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ERP systems attuned to best
practices and market needs
Fast and simple changes
Agile ERP for new services
ERP ‘catch-up’ process is risky,
cumbersome and expensive
Complex, error prone changes
Changes measured in months
not weeks
Delivering on the ERP Promise (?...)
The ERP
Promise
The ERP
Reality

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Listen to What the Man Said
“Eighty to ninety percent of our potential problems
were taken care of by Panaya” Mercedes-Benz
“Aibel has standardized on Panaya CloudQuality
Suite™” Aibel
“Panaya took Eaton from manual testing to the
achievable reality of attended automated testing” Eaton
“Thanks to Panaya, we all of a sudden have the
visibility of what we need to test” Embry-Riddle Aeronautical University
•PANAYA

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•Change Analytics and Test Accelerators
•Change Analytics
What will break
How to fix it
What to test
•Test Accelerators – “Attended Automated Testing”
Real-time snapshot of testing process
Automatic recording and running of test scenarios
Pass the baton between testers to reduce idle time
Where Panaya Comes In

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