Transform Your IT Department With IT-As-A-Service

Daniel Newman

The as-a-service model supplies businesses with scalable, consumption-based services to increase speed and agility while driving revenue and reducing costs. As businesses have turned towards software-as-a-service (SaaS), video conferencing-as-a-service (VCaaS), platform-as-a-service (PaaS), and even cloud-as-a-service (CaaS) to lower costs and increase agility, it makes sense that IT-as-a-service (ITaaS) is now available—and recommended.

Switching to an IT as a service model (and mindset) means taking the focus off the functional roles of IT and enabling an IT department that is much more agile, better aligned with business goals, and customer-centric. As an operational model, ITaaS delivers to an enterprise only the hardware, software, and staff needed at any given time. ITaaS can be internal or external or a combination of the two. It can be cloud-based or on-site—or a combination of the two. ITaaS should be as flexible in delivery as it is in ability.

Judith Hurwitz says of the benefits of ITaaS, “By transitioning to an IT-as-a-service model, IT organizations are transforming themselves from traditional IT groups to brokers of a variety of public and private cloud services, third-party managed service providers, and traditional data center services.”

If that statement alone does not convince you, here are four more reasons why ITaaS should be on every CIO’s radar:

ITaaS can be more effective and cost-efficient

As with so much change that has been driven by anything “as a service” and cloud computing, ITaaS enables streamlining operations and speeding up development. It also lowers cost because the up-front investment is minimal compared to having all hardware, software, and staff in-house. Businesses only use what they need, and the cost of doing so can be projected out. The services can scale if and when needed. Software upgrades and hardware are kept up-to-date. And the business can tap into an IT expertise without paying the high cost of having that expertise on the payroll.

Legacy business functions are still used

When using ITaaS, organizations can still use those legacy business functions that are at the core of their business. There is no need to completely walk away from the “old” way of doing IT, or from those legacy systems or functions. Sure, they might be slow and seemingly not able to keep pace with a fast-moving market. Supplemented with ITaaS, however, CIOs are no longer faced with decisions about optimizing outdated equipment as an either/or scenario: Either update the old, or invest in the new.

ITaaS can stabilize the environment

A third reason to have ITaaS on your radar screen is because it can stabilize your IT environment while also allowing for flexibility in the cloud. As mentioned above, the pricing is stabilized and predictable, and businesses pay only for what they need at any given time. In addition, ITaaS can improve security and lower risk, as well as ensure the hardware and software are up-to-date. You’re able to respond quickly to market changes and demands without putting any of your own infrastructure at risk—or rendering it unusable. Although the word “stabilize” might seem like an odd choice in this context, ITaaS can stabilize what otherwise might be a volatile and chaotic environment if your IT department tried to keep up with all the ever-changing demands placed on it using only internal resources.

ITaaS enables customized cloud computing and IT

With ITaaS, hybrid cloud and IT can be customized to meet your business needs, and offer an alternative to cloud computing vendors. As John Wellen puts it, “The goal is to transform and optimize enterprise-specific IT operations using self-managed service provider models that leverage cloud technologies more economically than licensed commercial cloud providers.” With ITaaS, organizations can use a mixed IT strategy to benefit from the best of both worlds: components hosted internally and components externally.

Organizations today want IT to add business value, and I mean in a monetary way as well. ITaaS makes this possible. However, it’s not an overnight change. It takes time to transition into working with an ITaaS model, because it is as much a cultural shift as it is a change in the way IT is viewed and the expectations the business units have of the IT department. Businesses can ease the transition and lower the risk with a gradual approach, implementing ITaaS only in higher-priority areas first—although that approach inherently has its own risks, as Peter Bendor-Samuel explains in an article for CIO.com.

This post was brought to you by IBM Global Technology Services. For more content like this, visit IT Biz Advisor.

Photo Credit: pinkhypo Flickr via Compfight cc

 

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About Daniel Newman

Daniel Newman serves as the Co-Founder and CEO of EC3, a quickly growing hosted IT and Communication service provider. Prior to this role Daniel has held several prominent leadership roles including serving as CEO of United Visual. Parent company to United Visual Systems, United Visual Productions, and United GlobalComm; a family of companies focused on Visual Communications and Audio Visual Technologies. Daniel is also widely published and active in the Social Media Community. He is the Author of Amazon Best Selling Business Book "The Millennial CEO." Daniel also Co-Founded the Global online Community 12 Most and was recognized by the Huffington Post as one of the 100 Business and Leadership Accounts to Follow on Twitter. Newman is an Adjunct Professor of Management at North Central College. He attained his undergraduate degree in Marketing at Northern Illinois University and an Executive MBA from North Central College in Naperville, IL. Newman currently resides in Aurora, Illinois with his wife (Lisa) and his two daughters (Hailey 9, Avery 5). A Chicago native all of his life, Newman is an avid golfer, a fitness fan, and a classically trained pianist

Machine Learning: Is Citizen Data Science Real?

Richard Mooney

We hear a lot these days about the “citizen data scientist.” Everyone wants to use data science and machine learning to understand their business and automate tasks to improve efficiency. But we have a shortage of people with data science skills, so much so that salaries are high for properly qualified people. To chief data officers, it’s an attractive proposition to take people from within their business who understand data and have a strong mathematical background and convert them to data scientists through self-study and online courses.

We have a new generation of visual composition framework tools that enable a business user to visually compose pipelines of algorithms, using techniques such as R and Python selectively to solve more complex problems. These techniques can get impressive visualizations back to the user and help them understand the business using statistics.

Challenges for citizen data scientists

But there are challenges with this approach. It’s not simply a matter of choosing the best algorithm:

  1. It’s very easy for a nonprofessional to misinterpret the results of a predictive model, making decisions based on poor results. It’s very difficult for a manager to recognize it until it’s too late.
  1. They need to master numerous skillsets to maximize model accuracy:
    • They need to understand feature engineering to extract useful insights from the data by deriving variables.
    • The mechanisms needed vary across data types. Date/time is very different from ordinal and continuous variables.
    • They need to extract how these variables change over time.
    • They also need to master complex techniques to make sure the data can be handled by the chosen algorithm and that missing values are correctly dealt with.
    • They need to understand how to deploy the model into production.
  1. They also need to deploy these models to production to generate the needed ROI. They need to understand how to keep the models current on an ongoing basis and how to make sure they are accurate, not just on training data but also validation, test, and new data.

Automation makes it easier

With automation throughout the predictive lifecycle, it’s possible to avoid or simplify these challenges.

  • You can train people to use automated predictive tooling to get a good model quickly and enforce best practices for model accuracy and robustness.
  • You can give them clear guidance on how models perform and enable them to deploy successfully into a wide variety of environments.
  • In parallel, they can hone their skills using a pipeline editor to experiment with other approaches while enforcing the same standards of model debriefing.

Most importantly, this reduces the risk of making a bad decision through an inadvertent but costly error. And the cost of entry to successfully utilizing and deploying predictive analytics is lowered, making it much easier to scale.

Don’t get me wrong, you still need training to take advantage of this. You need to know how to ask the question and how to maximize the results.

Even easier insights with an analytics cloud solution

Finally, business users can take advantage of advanced analytics for business exploration without needing to use any algorithms directly. This can be deployed to normal business users. The interface is set up to give them a simple way to frame the question. The insights are displayed in ways that help the user understand what they can and can’t infer from the data.

Is citizen data science real? 

So, to answer the original question: Yes, citizen data science is real, but we should think about what is the best way to enable people of different skillsets to successfully use data science in their business. This trend will only multiply as the automation techniques and helper tools advance and continue to lower the entry bar for data science and predictive analytics.

Learn more

To learn more about this subject, see:

Learn how organizations are gaining instant financial insights and using them to make better decisions – both now and in the future. Register now for 2017 Financial Excellence Forum, Oct. 10-11 in New York City.

Follow SAP Finance online: @SAPFinance (Twitter) | LinkedIn | FacebookYouTube

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Richard Mooney

About Richard Mooney

Richard is the lead product manager for the Predictive Analytics Product Portfolio including Predictive Analytics, Predictive Analytics Integrator & SAP Cloud Platform predictive services. He has 18 years experience in the software industry starting off in development and transitioning to customer facing roles including Product Management, Sales & Marketing. Richard also spent 2 years working as an innovation expert using techniques like Design Thinking, ROI Analysis and Ideation to drive customer innovation and value.

Simpler IT Begins With Hybrid Data Models

Carl Dubler

We hear a lot about simplicity in IT today. It’s a goal that is galvanizing every organization – large, small, commercial, and not-for-profit. Simpler data models, especially in core enterprise resource planning (ERP), should be the beginning of this quest.

Simpler data models in ERP not only help IT departments achieve streamlined IT landscapes; they transform the entire enterprise by fundamentally changing the way we do business. This happens by combining transactions and analytics into a unified, hybrid data model.

Breakthrough technology for database design

For decades, companies dealt with transactional and analytical information separately because database systems could not cope with both types of data. The result is the complex IT landscape we see now: numerous data silos, operational data stores, data warehouses, data cubes, and myriad tools for extracting, transforming, and loading data to feed them.

Now, using in-memory technology and columnar design, databases can handle both transactional and analytical workloads at the same time. Referred to as “Hybrid Transactional and Analytic Processing (HTAP)” by Gartner or “Translytics” by Forrester, these new databases enable a dramatically simpler IT landscape. No redundant systems are needed, and users can perform analytics directly on the transactional data at the source.

A big opportunity to reduce IT costs

All this has far-reaching implications for the IT department. Numerous systems can be consolidated into a single data platform, and cost savings from reduced data storage can be refocused to more strategic areas.

But what does it mean if you work in finance, marketing, supply chain management, or any other line of business? HTAP databases have important implications enterprise-wide.

Whereas analytics were traditionally performed on stale data, the new hybrid databases enable real-time analytics as they’re needed. And because IT staffers no longer must anticipate requirements in advance, users now have unprecedented flexibility in interrogating data to find insights to inform decision making.

Immediate results for the business

The new flexibility, immediacy, and ease with which you can analyze data is already revolutionizing business processes across every function. Finance, for example, can run a “soft close” of the books any time it wants, just to see what will happen. This means finance managers can identify issues early, before the actual close, and provide financial reports on an ad hoc basis.

Supply chain managers can run their material requirements planning (MRP) reports whenever they like, instead of only daily, and perform simulations to gauge the impact on production levels of any drop in supply of a certain component.

Leveraging superior processing capabilities

So far, so good. But simply deploying an HTAP-style database isn’t the end of the story. You also need to ensure that you’re using software that makes the most of what the database offers.

Many database systems have an in-memory option to accelerate queries. This isn’t enough. Applications – ERP in particular, since it is at the core of your business – must be completely redesigned to take advantage of the powerful analytics and superior processing capabilities that an HTAP database can offer.

The new generation of ERP software that is now emerging enables you to connect your enterprise with people, business networks, the Internet of Things, and Big Data in real time, providing live information and insights. The result: a way of working that is more agile, efficient – and simpler than ever.

To learn more about the value that simpler data models can bring to your organization, try our SAP S/4HANA Value Advisor.

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Carl Dubler

About Carl Dubler

Carl Dubler is a senior director of Product Marketing for SAP S/4HANA. With an IT career stretching back to the late 1980s, he has done nearly every role in the business. In his ten years at SAP, he also managed SAP’s first commercially available cloud product and first cloud product on SAP HANA.

Diving Deep Into Digital Experiences

Kai Goerlich

 

Google Cardboard VR goggles cost US$8
By 2019, immersive solutions
will be adopted in 20% of enterprise businesses
By 2025, the market for immersive hardware and software technology could be $182 billion
In 2017, Lowe’s launched
Holoroom How To VR DIY clinics

From Dipping a Toe to Fully Immersed

The first wave of virtual reality (VR) and augmented reality (AR) is here,

using smartphones, glasses, and goggles to place us in the middle of 360-degree digital environments or overlay digital artifacts on the physical world. Prototypes, pilot projects, and first movers have already emerged:

  • Guiding warehouse pickers, cargo loaders, and truck drivers with AR
  • Overlaying constantly updated blueprints, measurements, and other construction data on building sites in real time with AR
  • Building 3D machine prototypes in VR for virtual testing and maintenance planning
  • Exhibiting new appliances and fixtures in a VR mockup of the customer’s home
  • Teaching medicine with AR tools that overlay diagnostics and instructions on patients’ bodies

A Vast Sea of Possibilities

Immersive technologies leapt forward in spring 2017 with the introduction of three new products:

  • Nvidia’s Project Holodeck, which generates shared photorealistic VR environments
  • A cloud-based platform for industrial AR from Lenovo New Vision AR and Wikitude
  • A workspace and headset from Meta that lets users use their hands to interact with AR artifacts

The Truly Digital Workplace

New immersive experiences won’t simply be new tools for existing tasks. They promise to create entirely new ways of working.

VR avatars that look and sound like their owners will soon be able to meet in realistic virtual meeting spaces without requiring users to leave their desks or even their homes. With enough computing power and a smart-enough AI, we could soon let VR avatars act as our proxies while we’re doing other things—and (theoretically) do it well enough that no one can tell the difference.

We’ll need a way to signal when an avatar is being human driven in real time, when it’s on autopilot, and when it’s owned by a bot.


What Is Immersion?

A completely immersive experience that’s indistinguishable from real life is impossible given the current constraints on power, throughput, and battery life.

To make current digital experiences more convincing, we’ll need interactive sensors in objects and materials, more powerful infrastructure to create realistic images, and smarter interfaces to interpret and interact with data.

When everything around us is intelligent and interactive, every environment could have an AR overlay or VR presence, with use cases ranging from gaming to firefighting.

We could see a backlash touting the superiority of the unmediated physical world—but multisensory immersive experiences that we can navigate in 360-degree space will change what we consider “real.”


Download the executive brief Diving Deep Into Digital Experiences.


Read the full article Swimming in the Immersive Digital Experience.

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Kai Goerlich

About Kai Goerlich

Kai Goerlich is the Chief Futurist at SAP Innovation Center network His specialties include Competitive Intelligence, Market Intelligence, Corporate Foresight, Trends, Futuring and ideation. Share your thoughts with Kai on Twitter @KaiGoe.heif Futu

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Jenny Dearborn: Soft Skills Will Be Essential for Future Careers

Jenny Dearborn

The Japanese culture has always shown a special reverence for its elderly. That’s why, in 1963, the government began a tradition of giving a silver dish, called a sakazuki, to each citizen who reached the age of 100 by Keiro no Hi (Respect for the Elders Day), which is celebrated on the third Monday of each September.

That first year, there were 153 recipients, according to The Japan Times. By 2016, the number had swelled to more than 65,000, and the dishes cost the already cash-strapped government more than US$2 million, Business Insider reports. Despite the country’s continued devotion to its seniors, the article continues, the government felt obliged to downgrade the finish of the dishes to silver plating to save money.

What tends to get lost in discussions about automation taking over jobs and Millennials taking over the workplace is the impact of increased longevity. In the future, people will need to be in the workforce much longer than they are today. Half of the people born in Japan today, for example, are predicted to live to 107, making their ancestors seem fragile, according to Lynda Gratton and Andrew Scott, professors at the London Business School and authors of The 100-Year Life: Living and Working in an Age of Longevity.

The End of the Three-Stage Career

Assuming that advances in healthcare continue, future generations in wealthier societies could be looking at careers lasting 65 or more years, rather than at the roughly 40 years for today’s 70-year-olds, write Gratton and Scott. The three-stage model of employment that dominates the global economy today—education, work, and retirement—will be blown out of the water.

It will be replaced by a new model in which people continually learn new skills and shed old ones. Consider that today’s most in-demand occupations and specialties did not exist 10 years ago, according to The Future of Jobs, a report from the World Economic Forum.

And the pace of change is only going to accelerate. Sixty-five percent of children entering primary school today will ultimately end up working in jobs that don’t yet exist, the report notes.

Our current educational systems are not equipped to cope with this degree of change. For example, roughly half of the subject knowledge acquired during the first year of a four-year technical degree, such as computer science, is outdated by the time students graduate, the report continues.

Skills That Transcend the Job Market

Instead of treating post-secondary education as a jumping-off point for a specific career path, we may see a switch to a shorter school career that focuses more on skills that transcend a constantly shifting job market. Today, some of these skills, such as complex problem solving and critical thinking, are taught mostly in the context of broader disciplines, such as math or the humanities.

Other competencies that will become critically important in the future are currently treated as if they come naturally or over time with maturity or experience. We receive little, if any, formal training, for example, in creativity and innovation, empathy, emotional intelligence, cross-cultural awareness, persuasion, active listening, and acceptance of change. (No wonder the self-help marketplace continues to thrive!)

The three-stage model of employment that dominates the global economy today—education, work, and retirement—will be blown out of the water.

These skills, which today are heaped together under the dismissive “soft” rubric, are going to harden up to become indispensable. They will become more important, thanks to artificial intelligence and machine learning, which will usher in an era of infinite information, rendering the concept of an expert in most of today’s job disciplines a quaint relic. As our ability to know more than those around us decreases, our need to be able to collaborate well (with both humans and machines) will help define our success in the future.

Individuals and organizations alike will have to learn how to become more flexible and ready to give up set-in-stone ideas about how businesses and careers are supposed to operate. Given the rapid advances in knowledge and attendant skills that the future will bring, we must be willing to say, repeatedly, that whatever we’ve learned to that point doesn’t apply anymore.

Careers will become more like life itself: a series of unpredictable, fluid experiences rather than a tightly scripted narrative. We need to think about the way forward and be more willing to accept change at the individual and organizational levels.

Rethink Employee Training

One way that organizations can help employees manage this shift is by rethinking training. Today, overworked and overwhelmed employees devote just 1% of their workweek to learning, according to a study by consultancy Bersin by Deloitte. Meanwhile, top business leaders such as Bill Gates and Nike founder Phil Knight spend about five hours a week reading, thinking, and experimenting, according to an article in Inc. magazine.

If organizations are to avoid high turnover costs in a world where the need for new skills is shifting constantly, they must give employees more time for learning and make training courses more relevant to the future needs of organizations and individuals, not just to their current needs.

The amount of learning required will vary by role. That’s why at SAP we’re creating learning personas for specific roles in the company and determining how many hours will be required for each. We’re also dividing up training hours into distinct topics:

  • Law: 10%. This is training required by law, such as training to prevent sexual harassment in the workplace.

  • Company: 20%. Company training includes internal policies and systems.

  • Business: 30%. Employees learn skills required for their current roles in their business units.

  • Future: 40%. This is internal, external, and employee-driven training to close critical skill gaps for jobs of the future.

In the future, we will always need to learn, grow, read, seek out knowledge and truth, and better ourselves with new skills. With the support of employers and educators, we will transform our hardwired fear of change into excitement for change.

We must be able to say to ourselves, “I’m excited to learn something new that I never thought I could do or that never seemed possible before.” D!

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