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As our customers continue to evolve as technology shifts around them, they look for a strong partner that will be with them for the long term.
Cisco’s financial strength demonstrates our staying power and our ability to continue to grow and innovate.
They ask themselves such questions as:
Will Cisco be around when I need them? Does Cisco have the financial strength to invest in innovation? Can we count on Cisco to provide a strong portfolio of integrated products and solutions?
In each case, the answer is “yes.” Cisco has weathered may economic storms and captured major market transition.
Growth Areas We Must Focus on for the Future Evolution of the Network Service Provider Cloud and Next-Gen Data Center Security IoT and Apps – show our differentiation relative to IoT (Fog, analytics with Jasper) Analytics
Lets begin with the million-dollar question – Wht is Digital Business Transformation? Gartner defines this as “Digital business is the creation of new business designs by blurring the digital and physical worlds” To transform into a successful digital business you will need 3 critical capabilities Transform Processes and Business Models which leads to faster time to market and leaner operations Explosion of connected devices disrupts value chains paving the way for Business Model disruption. By 2020, one million new devices will go online every hour which enabling quicker automated decisions driving efficiencies to a new level Personalize Customer/Citizen experience which leads to increased customer loyalty and greater insight to predict future purchases Why so? Accenture surveyed ~13,000 consumers in 33 different countries and found that 66% i.e 2 out of every 3 consumers switched providers due to poor customer experience and by 2016 Gartner predicts that “89%i.e 9 out of every 10 companies will compete primarily on the basis of the customer experience Empower their workforce for efficiency and innovation which leads to increased productivity and better employee retention Again, why does this matter? Gallup surveyed over 1000 employees each in about 142 countries representative of 98% of the world population and found that about 87% of employees are disengaged and when companies address this dissatisfaction and bring it town to 10%, their earnings per share jumps by a whopping 50% These changes are forcing companies to become more digital when people and things interact to conduct business
Source: Digital Business Definition Gartner IT Glossart - http://www.gartner.com/it-glossary/digital-business/ 18M quote Gartner G00293702, 30 Oct 2015, Forecast Alert: Internet of Things — Endpoints and Associated Services, Worldwide, 2015 “…Gartner is now projecting shipments of 6.6 billion Internet of Things (IoT) endpoints in 2020 …” Logic In 2020 devices shipped = 6600 million 365*24 hours = 6600 Devices shipped every day in 2020 = 6600/365 = 18.082 M
87% quote Gallup 2013, State of the Global Workplace: Page 7 “…Overall, among the 142 countries included in the current Gallup study, 13% of employees are engaged in their jobs, while 63% are not engaged and 24% are actively disengaged…” 1.5x quote Gallup 2013, State of the Global Workplace: Page 7 “…Organizations with an average of 9.3 engaged employees for every actively disengaged employee in 2010-2011 experienced 147% higher earnings per share (EPS) compared with their competition in 2011-2012. In contrast, those with an average of 2.6 engaged employees for every actively disengaged employee experienced 2% lower EPS compared with their competition during that same time period…” 66% quote Accenture 2013 Global Consumer Pulse Survey – Page 10 “…Globally, there is a 4 percent increase in switching due to poor customer service to 66%...” Sample size: 13168 consumers in 33 countries 89% quote Gartner Survey Finds Importance of Customer Experience is on the Rise; Marketing is on the Hook, Jake Sorofman, Laura McLellan, Sep 2014 Actual quote – “…The trend is clear: the percentage of companies competing primarily on the basis of customer experience is rising from 36% two years ago to 58% today to a whopping 89% two years from now. The implication is that customer experience has become a strategic imperative.”
I put the story of our journey in the below notes. This is not meant to talk word for word, but to pick the points that need to be delivered to the appropriate audience. Each of us have a style of presenting so use your style and speak to key points to get your message across. And it should be a flow and not intended to be a start / stop at each section. It is about it all coming together.
Start of Notes:
ITaaS - The Foundation of Cisco’s Digital Business
IaaS – Catalyst of our Services Architecture.
Starts with a solid foundation – which in our case we a solid Infrastructure which was the catalyst of our Services Architecture. Our first step was to virtualize / digitize the infrastructure assets of Network, Compute, Storage and Security.. And our key communications services. Which we really termed as Infrastructure as a Service and we branded it CITEIS – Cisco IT Elastic Infrastructure Services
PaaS – enabling orchestration.. Extending the Cloud
That was great because we were able to quickly deploy new core infrastructure services, but our development / business facing teams still needed to have other assets such as App Servers, Web Servers , DB schemas as well. It was still taking weeks to months to get that deployed. We took the same Networked Programmability / Automation mindset and we extended the Cloud so to speak. Moving simplicity up the stack…extending the cloud.
DaaS – Powering faster and scalable insights
This foundation of programmability and automation has allowed not only to look at the infrastructure assets but really look at areas like our Data Architecture. Pulling the same capabilities and disparate data sources and Virtualize them. Using a foundational data approach we used key technologies such as Cisco Composite to Virtualize many data assets and Hadoop to not only allow quick and scalable access to data, but really lay the beginnings of our Data as a Service model. Driving a set of data services to improve the visualization and getting much improved insights into data for fast and more precise decision making. We are taking the same self service, programmable and automated approach to data and we have recently deployed both Cisco Composite (Virtualization) and Enterprise Hadoop (Highly scalable / computations) on our Application Centric Infrastructure – will improve policy management of security and faster provisioning based on data needs.
CDaaS – Continuously delivering FASTER and More Secure!
Over the past 2 years we have focused heavily on improving our release capabilities. We had perfected the art of waterfall, in fact we made them faster, moving to approximately 24 releases per year with that approach. But many people later and still complex PLC processes we began to lay a foundation of agile. We quickly learned of all the silo’d agile activities and determined an approach to deliver software and other key assets of Planning to Release as a Services. We called it Continuous Delivery. There were many tools and methods, so we standardized on a set of tools and digitized the toolchain. We also implemented a standard training through the SAFE agile approach – for both IT and the business We learned that we have to approach the delivery of experiences and capabilities and one team (biz and IT) Over that 2 year period we went from 80/20 Waterfall to Agile to the opposite. And delivery at over 90% improved velocity and releasing – nearly any time.
APPaaS – Delivering Contextual Experiences and Insights, anywhere.
With this Services Everything approach, we have laid a great foundation for our Digital Business and experienced through our applications. At the end of the day, the business policy and process is delivered through applications – mobile, web, machine, IOT, and being able to collaborate across all types of applications. We often here the term bi-modal, multi-modal, or brownfield / greenfield. I believe there is one mode. FASTER and MORE SECURE! And having the ability to program and orchestrate apps through a solid services foundation of data and infrastructure is key. Thus we can really talk about Applications as a Service. And our aim is to embed Unified Collaboration capabilities (SPARK) into our business processes and how we work. Having data, voice, video an an interactive service to provide contextual experiences and insights. Examples are how we collaborate everyday together, but also how we have embedded collaboration into the Services (TAC Kitchen) and Sales (Collaborative deal approvals) processes.
The mindset and culture of simplicity, automation and gaining insights of our ITaaS journey are foundational to Cisco’s Digital Process. We are only touching the surface of what is possible, but the IT and more importantly business outcomes have been accelerated through this foundation.
End of Notes
This should also align very well to the first Digital Process slide – which shows the process and elements, next the blueprint slide which shows the steps, then this target slide to show and describe what we have done… and then subsequent to these three slides we can show the business outcomes. E.g. Supply Chain, Customer Service, Sales, and even IT.. Depending on the audience. In this case we can use the Supply Chain and Customer Service.
Chuck’s Slide: How We Will Transform 5 Digital Principles
Next we will go through examples which illustrate how we have applied each of the principles
This use case shows the end-to-end digitization of the Renewals process, which was previously very disconnected. This use case focuses on providing a frictionless experience for Renewals. Its about providing visibility to actionable insights, using data and analytics to determine the right time for action. The simplified process gives us insight like: When to approach a customer Opportunities for refresh or end of life products and also providing the migration path from old product to new Overall simplified experience throughout the renewals cycle
This use case also showcases the simplification of policy & experience- before digitization, we must clean up our existing processes in the Data Foundation through data cleansing with common definitions and taxonomies.
We can simplify processes as much as we can, and automation can be used to further hide the complexity of systems and processes. This is an example of a Digital Assistant automating our commerce interactions.
Visibility is Key in Catching threats BEFORE they can do harm
Cisco is working hard to keep up with the threat landscape and our technology plays a vital role in this. And although the numbers seem daunting in terms of the amount of traffic we inspect, the number of network events we monitor, etc., the capabilities to automatically detect and remediate as well as retrospectively remediate are what allows us to deal with 95% of our incidents.
Automation is also playing a key role in dealing with the remaining 5% of incidents with capabilities such as context-aware security analytics, StealthWatch identifies known bad behavior or anomalous activity. For instance, if a user or machine normally only interacts with a few megabytes of network data a day but suddenly starts collecting many gigabytes of data in a short period of time, it could be hoarding data in preparation for exfiltration. StealthWatch can detect this activity by building baseline profiles to understand what normal, everyday traffic patterns looks like and then alarming on activity that falls outside accepted thresholds.
We want to stop ~95% of the bad stuff knowing that ~5% (advanced threats) will get through.
Incident Detection and Response (ID&R) promotes operational metrics back into the work flow process and provides attention on maturing our Data Loss Prevention service lifecycle, which is paramount at all levels of our service. These metrics shows how we are improving the service, providing value back into the organization, and ensuring that we are securing our customer’s assets:
Traffic and Events 27TB traffic inspected per day – equivalent to 2.2K hours of Blu-ray video 1.2T network events 425 devices detecting and preventing security incidents
Data Collected and Analyzed 4TB data collected and analyzed 15B NetFlow records analysed per day (Lancope) 5.8B DNS records per day (Passive DNS) 1.5M alerts per day from ~350 sensors (IDS/IPS)
Data Loss Prevention FY13: 15 FY14: 94 FY15: 42 H1FY16: 2
Product quality is a function of component quality, software defects and how we diagnose & support our products.
RMA are product returns. Analytics helped identify a category of returns that are completely avoidable. They are result of mis-diagnosis of the issue by the support personnel. Support case from customer is likely a result of mis-configuration or setup but we issue a return. Its costly for cisco and customer is frustrated as the new product has the same exact issue.
Analytics is now helping support identify the support cases which may likely fit this pattern and we have been able to reduce our return rates and improve customer satisfaction as a result. Machine learning / analytics can now help drive consistency in how we support our product and drive a measurable change to bottom line & customer sat.
Value metrics • 50% reduction in UCS-B returns • Its now being rolled out across support for all products
Logistic regression modeled on open source Apache Spark Machine Learning Library. AI BOT leverages the same model by querying it from Cisco Spark.
This slide is similar to slide #20- do we need both?
Automated metrics generated from analyzing the code and usage of the continuous delivery platform has been critical to drive the adoption of CD in IT.
We don’t need to ask or get status on adoption or security vulnerabilities or usage
Measure and get status directly from the platform / tools on which applications are leveraging it or not. Measuring developer productivity. #s of lines of code, defects, # of check-ins Automated checking for Security vulnerabilities
Digital Transformation - Cisco's Journey
Vice President, IT
April 13th 2017
Why the Move to Digitization?
Digitization Use Cases
Acquisitions since 1993
#1 or #2
in most market
380 global sites in
Center, Cloud &
Cisco’s Key Focus Areas
Cisco at a Glance
Billing and Revenue
Enterprise Inventory &
Service Level Optimization
Service Contracts and
Install Base Management
Fulfill to Activate Invoice to Cash
Service & Consumption Experience
Monitor to Usage IB / Contract Mgmt
Issue to Resolution
Data & Analytics
Knowledge Management Customer Success Management
Selling & Buying Experience
Cisco Technology Landscape Business Process Category (Outside-In View)
Simplification: Business Services Architecture
Define / Measure Success
(Cost and Value)
Bill of IT to deliver
Client view of
of IT Services
Chief Information Officer
Chief Operations Officer
Chief Digital Officer
Digitizing Renewals – How it’s Done
Qualified Opportunities Management
Collaborate Reconcile Assets
(what if scenarios)
approved and the
view to that
Analytics to support…
Proactive management and
Auto entitle based on
Cross sell upsell
Accurate Tagging for
Renewals and Follow on
Std & Non-Std Billing based
on Customer’s Invoicing
renewals and follow-on
Invoicing and Billing Options
Billing & Invoicing
Sales Comp &
Renewal Quote Protection Multiple End Users
Periodic Billing Schedule
Service Contract Start date
Introduce common definitions, ability to tag data and enrich with partner data.
Provide visibility to
actionable insights through
clean data and advanced
Deliver simplified next generation quoting, ordering and
Expand upon consumption
based, auto-renew business
Simplify through policy.
Conversational Commerce – Digital Assistant
Devices Detecting &
One day defending Cisco…
(Real Time Predictive Score + Prescriptive measures)
Augmenting Cisco Support with Analytics
Avoidable RMA Identification
Categorization of ARMAs
Cisco Spark Application AI Bot
A-RMA viewDecision Cockpits
Analytics Identified “Avoidable” Returns
Providing Metrics / Insights into root causes
Digital assistant for Support to minimize “Avoidable” Returns
Business aligned operating model, people and capabilities
(technical depth / engineering skillsets)
Test and Learn
Continuous Delivery Analytics
Are we baking CD Practices and Quality while building the Software?
Are we measuring Developer and Vendor Software Contributions?
Are we baking Security while building the Software?
Are Continuous Delivery Platforms and Practices pervasive?
Accelerating Digital Skills
IT Skills Report
Needed for the
Top 10 skills needed for
each competency area
SAFE / Agile: ~ 355 Scrum Masters
Data Scientists: ~ 95 graduates
Security: White Belts: 1470
Green Belts: 226
Engineering Cloud Training: 123
Building a sense of urgency
Culture of innovation / Risk taking
“If the rate of change on the
outside exceeds the rate of
change on the inside, the
end is near.”
- Jack Welch