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Digital Business Transformation for Energy & Utility company
1. Digital Business Transformation
•The Convergence of Cloud, Big Data, Social, Mobile & IoT
Released for Public Distribution
October 2014
•ILHAM AHMED
•iahmed@zayndigital.com
2. The Energy & Utilities sector is being affected by 4 macro conditions.
Demand Growth
Is Slowing
Public Distribution 2
Energy Efficiency
Is Growing
Distributed
Generation
Is Rising
Generation Mix
Is Changing
3. Most IT leaders wish to increase speed & innovation while continuing
to lower cost & operational risk
Increased
Speed &
Innovation
Public Distribution 3
Reduced
Risk &
Cyberattacks
Accelerated
Growth
Lower
Cost
4. And these leaders needs to address all aspects of their functional
domain.
Technology Operations App. Developers End-Users
Business
Applications
Business
Applications … … Business
Public Distribution 4
Applications
Business
Applications …
Internal SDLC Processes & Tools
On-premise IT Infrastructure including Data Centers,
Compute, Network, Storage, Security and
related People and Processes
5. Which can get complicated as the business investigates internal and
external options.
Technology Operations App. Developers End-Users
Business
Applications
Business
Applications … … Business
Applications
Public Distribution 5
Business
Applications …
External
Infrastructure
Providers
(Co-location,
Hosting, DR,
Outsourcing)
External
Application
Providers for
Business
Users & their
Customers
External
Platform
Providers for
Application
Developers
Internal SDLC
Processes & Tools
On-premise IT Infrastructure
including Data Centers, Compute,
Network, Storage, Security and
related People and Processes
6. What is Digital Business Transformation?
Customer Self-Service
Physical-Digital
Public Distribution 6
Digital Business
Digital Customer Experience
Digital Operational Excellence
Higher Revenue
Customer Understanding &
Segmentation
Omni-channel Selling &
Marketing
Higher Margin
Enhanced Operational
Capabilities & Efficiencies
Employee Enablement
Data-Driven
Decision Making
Integration
Digital Products
New Business Models
7. A digital technology foundation is necessary for such a transformation.
Higher Revenue
Public Distribution 7
Higher Margin
Digital Customer Experience
Digital Operational Excellence
9. And the benefits grow with the level of an organization’s cloud
computing maturity.
Public Distribution 9
10. But, Cloud Computing has many flavors – IaaS, PaaS, SaaS, Private,
Public, Hybrid – with a host of technologies…
SaaS
Software
as a
Service
PaaS
Platform
as a
Service
IaaS
Infrastructure
as a
Service
• Source and run complete
application from a service
provider
• Quicker adoption
• Faster deployment of end-user
application
• Minimal application
development effort
• Middleware in the cloud
• Rapid application development,
deployment & change
• Fine-grain elasticity of software
services
• Need to buy into PaaS provider’s
vision and constraints
• Private or Public
• Higher utilization of
infrastructure assets
• Lower cost of operations
• Faster provisioning
Public Distribution 10
11. A comprehensive Cloud Computing architectural blueprint is the
foundation to a successful design and deployment.
Technology Operations App. Developers End-Users
App. Storage and Execution
IaaS Business Support Services
(Service Catalog, Provisioning Portal,
Automation, Metering, Billing)
Virtualized Infrastructure
(Compute, Network, Storage)
Public Distribution 11
Business Application available as
Software-as-a-Service from 3rd Party Provider
Business
Applications
Business
Applications … … Business
Applications
Physical Infrastructure
(Compute, Network, Storage)
Infrastructure Mgmt. Services
(Compute, Network, Storage Resource
Management)
Infrastructure Operations Services
(Backup & Security Management)
IaaS Operations Support Services
(Orchestration, Monitoring)
Business
Applications …
Platform-as-a-
Service from 3rd
Party Providers
Public IaaS Clouds
Infrastructure-as-a-
Service from 3rd
Party Providers
Hybrid Cloud API
Public SaaS Clouds
Private Cloud
Public PaaS
Authentication
Messaging
Metrics & Logging
Routing
App. Lifecycle Management
Service Brokers (Databases, 3rd party services)
Message Bus
12. And can be supported by different ecosystem of vendors to various
degrees.
Technology Operations App. Developers End-Users
Business
Applications
Business
Applications … … Business
Public Distribution 12
Applications
Business
Applications …
Public IaaS Clouds
Public SaaS Clouds
Private Cloud
Public PaaS
… …
13. This technical architecture can vary by the type of workload with the
general purpose design satisfying 80% of the cases.
General
Purpose
Massively
Scalable
Service Provider Cloud
Infrastructure, Very Large
Enterprises
Bursting to Public
Cloud, DR, Dev/Test,
Federated Cloud,
Legacy Environment
Public Distribution 13
Compute
Focused
Storage
Focused
Multi-site
Network
Focused
Hybrid
Cloud
Most Common with a
Balanced Workload
Across All Components
High Performance
Computing (HPC), Big
Data Analytics, PaaS,
Network Function
Virtualization
Archive/Backup/HSM,
Analytics with Parallel
Filesystems, Databases,
Content Distribution
Content Distribution Network,
High speed/High Volume
Transaction System, VDI, VOIP,
HPC
Geo-location Sensitive
Data, Data Locality, Risk
Management
Support
14. Using the requirements & workload as a guide, a technical design
should be established – e.g. a VMware design*
Technology Operations
IaaS Business
Support Services
Virtualized
Infrastructure
Physical
Infrastructure
vSphere with
Operations
Management
vRealize
Automation
Center
vRealize
Orchestrator
vRealize
Business
(Chargeback)
vRealize
Operations &
Log Insight
NSX VIPR or
Public Distribution 14
Infrastructure Mgmt. Services
(Compute, Network, Storage Resource Management)
Infrastructure Operations Services
(Backup & Security Management)
IaaS Operations
Support Services
Private Cloud
VSAN
Compute Network Storage
* Representative component design
15. Or an OpenStack design*
Technology Operations
IaaS Business
Support Services
Virtualized
Infrastructure
Physical
Infrastructure
O-Horizon
(Dashboard)
O-Nova
(Compute)
3rd Party
Automation
Tools
O-Juju
O-Heat
(Orchestration)
O-Neutron
(or Cisco ACI
VMware NSX)
Public Distribution 15
Infrastructure Mgmt. Services
(Compute, Network, Storage Resource Management)
Infrastructure Operations Services
(Backup & Security Management)
IaaS Operations
Support Services
Private Cloud
3rd Party Cost
Mgmt. & Billing
Tools
Chef or
Puppet
(Orchestration)
O-Swift (Object)
O-Cinder (Block)
O-Glance (Image)
Compute Network Storage
* OpenStack open source components are evolving rapidly and in various state of being ready for production use.
16. Big Data is a critical component of digital transformation especially in
the Energy & Utilities companies.
#1 Descriptive #2 Predictive #3 Prescriptive
• Faster Production of Historical
Dashboards and Reports for:
• Sales/Revenue
• Costs
• Generation
• Transmission & Distribution
(T&D)
• Spot Real-time Divergences in
Generation and T&D
• Reduce Costs by Better Maintenance
Management
• Better Demand Management (From
Customers to Generation) – “Smart
Meters to Smart Grids”
• Active EH&S Compliance
Management
• Better Risk/Compliance Management
• Efficient Supply Chain Management
• Leak and Fraud Detection
Public Distribution 16
• Use of 4D Seismic Data and/or
Geophysical Data to Model New
Market
• Model Essential Geophysical Features
and Production Data for each Well
• Streamlined Talent Management
Key Drivers:
• Improve Generation Performance
• Transform the Utility Network (T&D)
• Drive Operational Efficiencies
• Transform Customer Operations
17. A Big Data Architecture is an “application” that sits of top of the
Cloud.
Structured and Unstructured Data
Cloud Infrastructure
Public Distribution 17
The 4 V’s of
Big Data
Volume
(Scale of Data)
Velocity
(Speed of
Streaming Data)
Variety
(Different Types
of Data)
Veracity
(Quality
of Data)
18. For example, a Hortonworks Hadoop Architecture
Source: Hortonworks
Public Distribution 18
19. Or a “Big Data + Mobility + Cloud” aka. SaaS
Salesforce Analytics Cloud
(Business Case is critical)
Source: salesforce.com
Public Distribution 19
20. Success with Big Data projects is not just about technology.
1 Start with the end in mind
2 Tools and technologies are only part
of the story, source of data is key
3 Establish a data governance
framework & review
4 Lastly, it’s all about the people
Public Distribution 20
22. … so, a well-defined strategy is critical to a digital transformation.
Define
Digital
Strategy
Public Distribution 22
Develop
Technical Design
Develop Detailed
Implementation
Plan
Implement,
Monitor and
Adapt
• Define future state
requirements
• Define new software models
• Develop functional
architecture
• Develop high-level
implementation roadmap
• Develop Business Case
• Define and validate detailed
requirements
• Document design principles
• Develop technical design
• Develop Bill of Materials
• Develop Detailed Project Plan
• Develop Contingency Plans
• Develop Communication Plan
• Develop Operations Guide
• Implement Design
• Enable Self-service
• Perform user training
• Monitor and Adapt
23. And when deployed, will drive positive shareholder value.
Public Distribution 23
24. Where can we help?
IT Advisory
• Interim CTO
• Enterprise Architect
• M&A Due Diligence/Integration
• IT Strategy
• Program Management
• Staffing
Public Distribution 24
Cloud Computing
• Cloud Assessment
• Cloud Business Case
• Cloud Strategy & Roadmap
• Cloud Security
• Cloud Automation Design
• Cloud Implementation
Big Data
• Big Data Assessment
• Big Data Business Case
• Big Data Strategy & Roadmap
• Big Data Security
• Analysis and Visualization
• Big Data Implementation
Data Center Services
• Data Center Strategy
• Data Center Planning
• Data Center Migrations
Evolving Business Models - to full service providers
Transactive Energy – 2-way transaction system (need and price)
Energy Storage – leads customers to believe a level independence from utilities
Distributed Energy Resources –
Capital Investments –
Regulatory Uncertainty –
Dynamic Pricing –
Demand Response –
Customer Expectations – de
Cyberattacks
Better Maintenance Mgmt: Nexen, a Canadian O&G used predictive analytics to determine when offshore oil rigs need cleaning or parts replacement. QatarGas.
Better Demand Management: Alliander in Netherlands uses 22,000 sensors across 400 substations (every 5 mins) to predict demand changes and also satisfy regulatory needs.
Regulatory Management: Statoil in Norway is using analytics to minimize environmental impact of drilling and exploration.
HSE- Health, Safety & Environmental