Clouds, crowds, channel and cool devices

Clouds, crowds, the channel
& cool devices
ISACA SA
Pretoria Regional Chapter Meeting
October 2012

Dr Mariana Carroll

©2012 Deloitte. All rights reserved

Objectives

• Technology evolution
• The 4 Cs
• The road ahead

1 ©2012 Deloitte. All rights reserved

Technology Evolution
---industrial age---information age---digital age

Technology Evolution 2012


Journey to a totally digital world

Transformation
& Enablement

• Interaction and collaboration
• Better customer relationships
• Increasing agility - new market growth
• Enabling innovation


Journey to a totally digital world

• Is mobile network operations going to be the bank of future?
• Will the retailer of the future be a hybrid-bank, a marketing company or a
technology provider?
• Are technology companies adopting the same market tensions as the fashion
industry?
• Will there be difference in business models or industry boundaries?

Maybe companies of the future will be builders and managers of communities, where the end-user is
driving continuously evolving and changing products and service catalogues


The 4 Cs
The need for convergence

The 4 Cs

Clouds

Cool
Crowds
devices

Channel


The 4 Cs
Cloud Computing
• Business model for
innovation, for on-demand
computing and accessibility
Clouds
• Inexpensive mass
storage, high
bandwidth,
smart devices
& consumer
acceptance
Cool
Crowds
devices

Channel


The 4 Cs
Cloud Computing Social Media
• Business model for • A human element,
innovation, for on-demand facilitating networks &
computing and accessibility interactions (in real-time)
Clouds to experience external
storage, high engagement, internal
bandwidth, ideation, marketing &
smart devices political collaboration
& consumer
acceptance
Cool
Crowds
devices

Channel
We can expect changes involving
social analytics, virtual currencies
and a new wave of consumerism

The 4 Cs
& consumer
acceptance
Cool
Crowds
devices

Internet and Broadband
• Transactional medium that
Channel spans industries, serving
functions such as
marketing, distribution &
location-independent
services

The 4 Cs
& consumer
acceptance
Cool
Crowds
devices

Mobile devices Internet and Broadband
• Powerful mobile devices • Transactional medium that
increase productivity, Channel spans industries, serving
connectivity anywhere functions such as
anytime, innovative ways of marketing, distribution &
doing business and new location-independent
transactional capabilities services

The 4 Cs
Clouds & Crowds
• Cloud-based processing
power
Clouds • Social analytics

Cool
Crowds
devices

Channel


The 4 Cs
Clouds & Crowds
power

Cool devices &
Crowds
• Social media
Cool • Mobile
Crowds workforce
devices
collaboration
• News collection

Channel


The 4 Cs
Clouds & Crowds
power

Cool devices &
Crowds
• Mobile
Cool workforce
Crowds collaboration
devices
• Social analytics
• News collection

Channel & Crowds
Channel • Mobile transactions & social
media creates new
opportunities for consumers
• Better marketing
• Empowers retailers

The 4 Cs
Clouds & Crowds
power

Cool devices &
Crowds
• Mobile
Cool workforce
devices
• News collection

Channel & Cool Channel & Crowds
devices Channel • Mobile transactions & social
• Mobile transactions media creates new
opportunities for consumers
• Mobile workforce
(productivity) • Better marketing
• Voice and video calling • Empowers retailers

The 4 Cs
Clouds & Cool devices Clouds & Crowds
• Cloud-based processing • Cloud-based processing
• Location independence power

Clouds & Cool devices &
Channel Crowds
• Real-time traffic • Mobile
• M2M Cool workforce
•
Accessibility devices
• News collection

Channel & Crowds
Channel & Cool
Channel • Mobile transactions & social
devices
media creates new
• Mobile transactions opportunities for consumers
• Voice and video calling • Better marketing
• Mobile workforce • Empowers retailers

The 4 Cs making headlines


What have we seen thus far?

• Rapid introduction of mobile devices
• Increase in risk landscape
• Insecure technologies
• Push from users vs. push from business and ITs ability to adopt new technology
• Bring Your Own Device / Consumerisation
• Popularity among technical and non-technical users on every level
• Blurring of company and personal use
• Eruption of mobile device initiatives and projects
• Link to social media and cloud solutions


The road ahead
Where do we go from here?

Next steps

1 Alignment to strategy 2 Platforms &
Where do you want to go? capabilities
Customer needs What are the platforms and
• Customer growth and demand capabilities you current have?
Business imperatives Platforms
• Priorities and plans • Applications (core, support)
Value creating forces • Information
• Changes to business models What are the • Infrastructure
next steps /
opportunities?
• Benefits
3 Key considerations • Improvements 4 Roadmap
What are the risks & potential issues? • ROI What are your current and
• Security & Privacy future target strategies,
opportunities & goals?
• Availability
Framework describing
• Compliance
• Business
• Legal & Tax
• Technology
• Ownership
• Architectures
• Processes
• Resources

1 Alignment to strategy

How do technologies and services align with business and IT strategic
goals?

• Examine specific business areas and activities to establish impact (i.e. minimal
investment of time and money)
• What business benefits can be derived by utilising new technologies, and to
what degree?
• Is the strategy align with value creation (elevated growth, improved
marketability, expanded market share, enhanced productivity, increased
differentiation or prolonged sustainability)?
Example
BUSINESS OBJECTIVE: Business analytics - understanding of business performance to elevate growth
and expand their market share
IT OBJECTIVE: Capacity to process data (requires a lot of computer processing power (occasional
basis)), Cost & energy efficiency
SOLUTION: Move data analytics to the cloud as a efficiency measure, by effectively “renting” capacity
when required – Company gained performance it required at an affordable cost


2 Platforms and capabilities

What is your current state across each of the 4 components (clouds,
crowds, the channel and cool devices)?

• Examine existing applications and infrastructure (where do you already make
use of the 4 Cs?).
• What type of disruption would implementing new technologies cause?
• What controls are in place to manage potential risks?
• What future targets or projects are in the pipeline?
• What are the staff implications of implementing new technologies?
• Are internal IT architecture and organisational structures ready?
Example

OBJECTIVE: Assess the feasibility of implementing a cloud-based email system
REQUIREMENTS: Flexibility and capacity
OUTCOME: While there is a range of solutions on the market, non offered the flexibility and storage
capacity required by the company


2 Platforms and capabilities

Applications Design Frameworks – use cases, target devices, functional requirements, etc.

Architectures Data and application services affected.

Infrastructure Understand the role of middleware and evaluate architecture options.

Wireless Understand wireless expectations, authentication measures, reliability, security,
Networks connectivity, etc.
Security & Perform security reviews throughout development process, evaluate security for each
Governance application stack. Develop a framework to address risks throughout the SDLC.
Device Develop mobile device procurement, security and management standards, Define
Management device management and data protection requirements and solutions.
BYOD Develop a BYOD policy, Implement network access controls. Define minimum security
requirements. Implement systems and processes to provide control.


3 Key considerations
Data Controls Who owns the data? How is it be used? Are controls in place?

Security and
How is security achieved? What is the level of privacy protection?
Privacy

Audit and
Are there risk management controls to applications and data?
Assurance

Tax and Legal Can you meet needs for legal compliance and tax issues?

Disaster
Are data backup, retention, and disaster recovery practices sufficient?
Recovery

Vendor
Is the vendor limiting interoperability or access to your data?
“Lock-In”

IT Operations What IT services and applications are best suited for the cloud?

IT Readiness Are internal IT architecture and organisation structures “ready”?

Alignment with Enterprise Risk and Governance strategy will help organisations address the
operational hurdles to cloud adoption


How will sensitive data be restricted? Is a data classification framework in
Data Controls
place?

What will these devices be used for? Are policies and procedures formalising
Use
acceptable use of mobile devices in place?

Device How will these devices be managed (asset lifecycle process and restricted
Management use)?

How will the security of these devices be managed and monitored (mobile OS
Security settings, authentication, network access control, wireless connections,
application security standards)?

What are the technology requirements (i.e. remote control, remote access of
Technology
virtual desktop solutions)?

Providing employees with powerful mobile devices increases productivity and allows them to be
continuously connected from anywhere


Who is responsible for data governance? Are key master data elements
Data Controls
managed?

How do you:

• Manage social media risks?

• Account for new intangible assets and intellectual property?

• Apply revenue recognition standards to new enterprise structures and
Technical issues international accounting standards in other jurisdictions?

• Manage the volume of data and data analytics work?

• Deal with legal and tax issues in an emerging virtual space?

• Advise on tax issues related to intercompany intellectual property
transfers and associated transfer pricing?

Explore ways to transform social presence to maximise benefits and mitigate risks


Example

OBJECTIVE: Moving HR infrastructure into the cloud
MAIN CONCERN: Hosting employee's personal information overseas
MITIGATION: Controls to mitigate this concern should include:
• Ensuring that the data remains in SA or
• Adding a contractual obligation that requires the cloud provider to handle personal
information according to the organisation’s requirements


4 The road ahead

What are your current and future target strategies, opportunities & goals?

Roadmap Considerations Criteria Definition

• Collective organisational values, beliefs, and behaviors support the
IT Culture
adoption of the new technology
• The ability of functional units within an organisation to effectively
Operational Environment
adopt and utilize new technologies and services

Transition Cost • The associated adoption costs, both tangible and intangible

Capability Maturity • Readiness of a capability to be migrated

Economic Return • The economic value of the adoption of new technologies

The roadmap connects the current state to the proposed final state using the opportunity analysis and
strategic decisions as the guiding principals to identify roadmap objectives and goals

• The 4 Cs are likely to continue to compose and converge
• Enabling organisations to serve their customers more efficiently and meet
business demands in an agile way
• Step-up and take advantage – an important first step


Contact information

For additional information, please contact:

Dr Mariana Carroll
Leader - Cloud Computing Centre of Excellence
Risk Advisory | Deloitte & Touché
Mobile: +27 (0)83 333 5536
mcarroll@deloitte.co.za


Clouds, crowds, channel and cool devices

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