Innovation in the cloud transcends information technology. It is woven into the very fabric of customer experience strategies and can be directly applied to how we think about business innovation as an enterprise.
Our Cloud First webinar provided a pragmatic approach to using design thinking to harness the power of cloud for business innovation. We walked through a framework for innovation and demonstrated how to build the right team, apply the right methods, and leverage the right tools to:
-Quickly create value for customers
-Bring people and ideas together
-Foster innovation through continuous delivery
-Release your ideas into the wild
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About Perficient
Perficient is the leading digital transformation
consulting firm serving Global 2000 and enterprise
customers throughout North America.
With unparalleled information technology, management consulting,
and creative capabilities, Perficient and its Perficient Digital agency
deliver vision, execution, and value with outstanding digital
experience, business optimization, and industry solutions.
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Perficient Profile
Founded in 1997
Public, NASDAQ: PRFT
2016 revenue $487 million
Major market locations:
Allentown, Atlanta, Ann Arbor, Boston, Charlotte, Chicago,
Cincinnati, Columbus, Dallas, Denver, Detroit, Fairfax,
Houston, Indianapolis, Lafayette, Milwaukee, Minneapolis,
New York City, Northern California, Oxford (UK), Southern
California, St. Louis, Toronto
Global delivery centers in China and India
3,000+ colleagues
Dedicated solution practices
~95% repeat business rate
Alliance partnerships with major technology vendors
Multiple vendor/industry technology and growth awards
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SCALABILITY SPEED SAVINGS SIMPLICITY
Growth
Elasticity
Diversification
Reduce Cycle Times
Remove Steps
Eliminate Wait Times
Why Innovate?
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SCALABILITY SPEED SAVINGS SIMPLICITY
Growth
Elasticity
Diversification
Reduce Cycle Times
Remove Steps
Eliminate Wait Times
Automation
Reduce Waste
Economies of Scale
Why Innovate?
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SCALABILITY SPEED SAVINGS SIMPLICITY
Growth
Elasticity
Diversification
Reduce cycle times
Remove steps
Eliminate wait times
Automation
Reduce Waste
Economies of Scale
Improved Usability
Consolidation
Consistency
Why Innovate?
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What are your business innovation goals?
• New growth strategies or revenue streams
• Develop new products or services
• Increase operational or client efficiencies
• Automation and reduced costs
• Improved usability and stability
Placeholder for Cloud Maturity Poll Question
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While cloud is recognized
as a technology game
changer, its potential for
harnessing the power of
business innovation
remains untapped.
Untapped Potential
of the Cloud
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Scalability
Operational agility is a top driver for global
cloud buyers, according to a Gartner
survey.
* http://www.gartner.com/newsroom/id/2923217
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• Increase on-boarding of new
customers through multi-tenant
SaaS
• On-demand service provisioning:
reduced wait time from weeks to
minutes
Speed
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HARD SAVINGS
• Reduced spending on compute, storage, networking,
security
• Avoidance of hardware and software purchases (CapEx)
• Reductions in operational costs, backup, and DR/DC
• Reduction in operations-oriented personnel
Cost Savings
SOFT SAVINGS
• Re-use of services and applications that allow you to define
and redefine solutions using the same cloud services
• Increase developer productivity
• Improved employee morale based on the use of cloud-
based resources
• Ability to change business processes quickly around new
and emerging opportunities
• Increase global reach
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Cloud Innovation Team
EXPERIENCE
DESIGN
VISUAL
DESIGN
SOLUTION
ENGINEER
PLATFORM
ENGINEER
Translates low-
resolution
concepts into
high-resolution
product and
experience
insights, ideation,
and design.
Creates high-
resolution
prototype user
interface,
visualization and
interaction
designs and
visual assets.
Full-stack
development of
high-resolution
prototype
features, services,
and capabilities.
Innovation
platform and
simulation
engineering,
support, and
administration.
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Characteristics of a Cloud-based Innovation Platform
CLOUD-BASED SIMULATION TEST-DRIVEN CONTINUOUS
Elastic platform,
software, and
services outside
of Core IT
for rapid, high-
resolution testing.
Ability to virtualize
and de-identify
Core data and
3rd party service
capabilities.
Automated and
repeatable
verification and
validation.
Rapid and early
code integration,
code delivery,
and continuous
innovation.
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How we use cloud to drive
innovation at the speed of
business for our clients
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Improved patient readmissions prediction
accuracy with cognitive computing and cloud
An Ohio-based unified health system, needed a better
way to determine a patient’s propensity to readmit to the
hospital, in order to meet new regulations in the
Affordable Care Act. Using cognitive computing and
analytics in the cloud, we developed a predictive
modeling solution for readmissions. The solution
analyzes a wealth of structured and unstructured data not
typically included in predictive models, including doctors’
notes and psycho-social needs of the patient and the
family. By incorporating this previously untapped source
of information, the client’s readmissions prediction
accuracy jumped to 93%. It is better positioned to
reduce hospital readmissions across its entire patient
population by educating patients and their families on
how to better manage their conditions while coordinating
various services within the provider community.
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Cloud sparks business innovation and case
deflection by 17%
Activision is an American video game publisher. A large
part of Activision Support’s case load came from players
experiencing connection issues with a particular online
gaming service. The support team had to manually gather
alerts and communicate outages. We leveraged the cloud
to build a new Online Services self-service support
experience for gamers. Players can view the current
status of games and platforms experiencing issues, access
troubleshooting tips, or report an outage. Moving to a cloud
model has completely transformed Activision’s
customer support experience and increased case
deflection by 17%.
All this tell us that it’s a customer-drive, customer-centric universe
Truth is that you have to do both and balancing them is critical
But it’s not easy
Truth is that you have to do both and balancing them is critical
But it’s not easy
Innovating for Scalability (elasticity, growth)
Innovating for Speed (reduce cycle times, remove steps, eliminate wait times)
Innovating for Savings (automation, reduce waste, economies of scale)
Innovating for Simplicity (reduce failure points, improve usability)
Innovating for Scalability (elasticity, growth)
Innovating for Speed (reduce cycle times, remove steps, eliminate wait times)
Innovating for Savings (automation, reduce waste, economies of scale)
Innovating for Simplicity (reduce failure points, improve usability)
Innovating for Scalability (elasticity, growth)
Innovating for Speed (reduce cycle times, remove steps, eliminate wait times)
Innovating for Savings (automation, reduce waste, economies of scale)
Innovating for Simplicity (reduce failure points, improve usability)
Innovating for Scalability (elasticity, growth)
Innovating for Speed (reduce cycle times, remove steps, eliminate wait times)
Innovating for Savings (automation, reduce waste, economies of scale)
Innovating for Simplicity (reduce failure points, improve usability)
These are outcomes you want to focus on from innovation perspective and then the cloud also aligns to the outcomes. What then is the intersection between innovation and cloud? It’s a process of innovation, a platform on cloud, and a multi-disciplinary team
Justify your cloud strategy and investments based on your digital business strategy
This is one of the key aspects / benefits of cloud computing: agility & scalability.
Cloud computing can have a big impact on how a business operates and the thinking of the business. The opportunities the business will explore, market adjustments, countering competition, ability to innovate can all positively impacted by the decision to move to the cloud.
Gartner survey
Other top drivers “modernization, “innovation”, and ”cost”. But cost was a cited by more junior level resources IT Staff vs focus of senior IT execs, including the CIOs, was to leverage the cloud to establish a modern, innovative IT environment, with operational agility and business advantages as key outcomes.
So what are we really talking about when we say operational or business agility?
Business agility is the ability of a business to adapt rapidly and cost-efficiently in response to changes in the business environment.
More often than not, the questions I get from IT organizations related to the cloud are about how can cloud reduces by capital expenditures and operating budget? Yet like the gartner survey showed, that’s not necessarily the perspective of senior leaders. The IT equation is one of cost-agility and we need to consider both sides of this equation to be able to effectively communicate the overall value IT can bring to the business.
Business agility provides: ability to enter new markets, reduce complexity, increase employee productivity, and, yes, reduce costs.
There’s a direct link between cloud and business agility. Verizon-HBR survey finds, for example, those enterprises more advanced in their cloud deployments are more likely than their less-advanced counterparts to have entered a new market in the past three years (49 percent) or to have been part of a merger or acquisition (49 percent). Cloud helps bring the IT transformation closer to the transformations occurring in our businesses.
http://www.forbes.com/sites/joemckendrick/2014/07/14/cloud-computing-increases-business-agility-whatever-that-means/#5626a7284f8a
https://www.vmware.com/files/pdf/accelerate/VMware_Business_Agility_and_the_True_Economics_of_Cloud_Computing_White_Paper.pdf
https://hbr.org/resources/pdfs/tools/Verizon_Report_June2014.pdf
Healthcare customer that was building custom environments for every client with upwards of 125 servers per client. Large backlog of customers but onboarding / technical challenges were significant. Shifting to a SaaS model and experiencing dramatic onboarding time reduction.
Another customer, On-demand service provisioning: reduced wait time down from weeks to minutes. Developers were able to click a button to add a database to their development environment and by the time they had switched screens it was available for them to start developing. Compare this to the 4-6 week lag time they previously experienced. Talk about radical changes. Fully integrated app templates app layer to database. App store of services.
Might be difficult to quantify but critical aspect of considering a holistic cloud ROI!-
Look for metrics like
Reduced infrastructure overhead
Reduced operational cost
Reduced backup cost
Reduced loss of business
Reduced development cost
Increased Utilization
Reduced power consumption
Lower people cost
Lower capital cost
Resiliance without redundancy – cloud automatic redundancy without all the duplicate hardware
Greater cost agility in IAAS
Increased retained cash
Reduced opportunity cost
ROI
Capital Cost
Operating cost
Indirect Cost
No large upfront capital investment
Reduced software costs with upgrades included in the monthly fees
Reduced spending for IT support
Business Continuity is included in the Cloud environment
Savings gained through higher worker productivity and greater efficiency
Tax Benefits
Figure 1 shows the challenges of the traditional model. The blue line depicts hardware purchases which are completed periodically to increase capacity ahead of projected utilization. The red arrow indicates the cost an enterprise bears in excess capacity while the red shaded area represents the danger of underestimating utilization.
As we have hopefully shown today if you are just adding up the costs of infrastructure in the cloud vs on-prem you will miss the value of cloud
It’s not only minimzing costs through leveraging cloud but it’s about maximizing the value of cloud through ways we’ve discuss today and more!
Increase velocity of application delivery
Cost-effective operations
Increase Investment Flexibility
Expand markets
Reduce risk – enhanced security, shared risk
Cloud ROI (Joel)
a. More wallet share
b. New revenue streams
c. Reduced cost but increased responsiveness
d. Enhanced security - reduced insurance premiums
Digital business requires speed and agility that cloud computing provides through the use of cloud services – which become available to a broader set of users through a self-service interface. Users “help themselves” to these cloud services, stimulating creativity and innovation.
Process icon must be a cycle or mimic d.school hexagons
1. All the basics will need to be “Built-in” not rethinking them every time you roll out something new. Need to allow development teams to move quickly but with standardized DevOps processes that have built-in support for security, development standards, and platform configurations.
2. Application Portfolio management needs
So the best way to deal with the compounding of uncertainty is to go fast, to learn fast, to learn what works and what doesn’t work through techniques such as agile sprints, rapid prototyping, minimum viable products, a-b testing, and related techniques
Standards, secure, connectivity, speed “built-in”
Application portfolio management
Automated CI/CD
Continuous DevOps
Machine learning
Big Data analytics
Rapid prototyping
Minimum viable products
A-B testing
Quick market validation
Idea discovery to market testing in weeks