Learn the 5 keys to moving to a successful data-as-a-service model

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1 Learn the 5 keys to moving to a successful data-as-a-service model big data & business analytics AuthOr: john wills global director, center of excellence hcl business analytics services WHITEPAPER AUGUST 2014

2 HCL is one of the industry s fastest growing, top ranked system integrators. Our growth is a result of helping clients optimize their operations and shift investments into innovation. There is no area, which is riper for improved efficiency and cost optimization than data management. Based on our years of experience, we offer 5 keys to successfully moving to a Data-As-A-Service (DAAS) model. Key #1 Decide if you are implementing data-as-a-service or datamanagement-as-a-service This might seem like an odd place to start, but we have seen organizations make huge investments in data management and fail miserably because internally, they did not share the same understanding. DAAS is a term that is used to define the relationship between enterprise data consumers and data suppliers. The relationship is governed and monitored by using Service Level Agreements (SLAs). The data provider can be thought of as a black box to the consumer. They don t have to know how it works, but it should satisfy their list of requirements that includes the ability to easily browse available data, set up an automated data feed, and have high quality data when they need it. The data supplier uses a well-refined, highly automated process with very structured data architecture. Where it operates and who operates it depends it can be in the Cloud or on-premise, and it can be run by internal IT staff or outsourced. To a large degree, this depends on economics. Each organization has to decide how critical data management is, to their fundamental business mission. When it is considered central to the mission, it makes more sense to invest in in-house talent and infrastructure to operate a DAAS model. When it is less than central and not considered as providing a differentiation, it makes more sense to cost optimize and move to a Cloud based, outsourced model. Most industries today are recognizing that data is central to the business but the actual operational function of moving, transforming, storing, archiving, cleansing, etc., is a commodity, and should be treated as such. Data-Management-As-A-Service (DMAAS) is very different from DAAS. Unfortunately, the similarity in the names has created a lot of confusion. It is actually a term coined by data management tool vendors as a way of labeling the ability to run their data management tool suites in a Cloud environment instead of on-premise. It does not extend to a larger, strategic meaning like DAAS. There are certainly strong technological and cost advantages in moving tooling from on-premise to the Cloud. Interestingly, DMAAS can be used as a fundamental part of DAAS to help power the black box by companies trying to achieve maximum efficiency and cost advantage. From here on, we assume you are implementing DAAS. Key #2 Don t leave out any of the big 5: Organization, Governance, Processes, Technology, and Data Architecture DAAS is a strategic undertaking and like all strategic tasks, it will touch all parts of the organization. Therefore, it is imperative that you have a strong executive steering committee, and funding support, for a comprehensive multi-year program. 2014, HCL TECHNOLOGIES. REPRODUCTION PROHIBITED. THIS DOCUMENT IS PROTECTED UNDER COPYRIGHT BY THE AUTHOR, ALL RIGHTS RESERVED. 2

3 y Organization - Roles and responsibilities will change. Business organizations will find that many of their people who spend time massaging data can shift to analysis and other higher value business functions. IT will also have a diminished role in data operations and can shift staff to backlogged innovation projects. In the long run, it is a positive story, but change is never easy and so do not underestimate the need for a robust organizational change management workstream as part of the implementation effort. y Governance - In general, most enterprises have done poorly when it comes to governing data. DAAS forces the organization to apply the same level of Information Technology Service Management (ITSM) standards that they apply to areas such as hardware provisioning and support. The organization s access to data becomes a part of the service catalog and hence SLAs must be well defined, monitored, and remediated using a well-defined process. y Process - Over time business processes will become more efficient and streamlined as homegrown methods of extracting and transforming data are replaced by standard data feeds and interfaces. The same warning that applied to the organizational change above is applicable here. Do not underestimate the time it will take to transition from custom interfaces and pet solutions, to standard DAAS feeds. y Technology - Existing tools will be rationalized and retired. There will no longer be a need for silos of tooling (ETL tools, quality, MDM, Metadata, etc.) that grew out of the business pragmatically doing what they had to do. There really isn t a downside except some people become anxious and feel threatened when their tool is being retired. There is no easy solution for this, other than handling it within the organizational change management process, which should include a retaining program. y Data Architecture - Data architecture is a special case and so important that we address it separately below as Key #4 Key #3 Make sure you create a great interface for the data consumer DAAS will become the enterprise s window to its data and to data consumers, and it will play the most important part. Organizations will use it to search for available data, make requests for data sources and feeds, reuse and share other feeds, monitor quality and performance, etc. If the DAAS application s functionality and interface is not world-class, then all the great technology and architecture in the black box will not save the initiative. In addition, the development of the application should be staffed and managed as an independent project and should be considered as high a priority as any core finance, supply chain, HR, etc., system implementation. The user interface of the application must be outstanding. Users have become used to a high standard of usability and mobility from the apps they use in their personal lives. The same standard must be applied to the DAAS implementation or dissatisfied customers may abandon the effort and start looking for the old back door methods of accessing data that will undermine the entire initiative. Do not underestimate the importance of the interface and give it the attention and funding it requires. 2014, HCL TECHNOLOGIES. REPRODUCTION PROHIBITED. THIS DOCUMENT IS PROTECTED UNDER COPYRIGHT BY THE AUTHOR, ALL RIGHTS RESERVED. 3

4 Key #4 Fix your data architecture Most organizations have terrible data architecture. This is not because of a lack of good intentions but mostly because of a chronic cycle of under appreciation leading to underfunding leading to short cuts. If you step back and consider the huge overhead costs associated with poor data quality, redundant data redundant tools, shadow IT budgets, etc., you realize that the enterprise is not lowering costs but experiencing a financial drag. To help achieve the maximum cost savings and efficiency, a DAAS initiative needs to sweep away the old cobbled architecture and replace it with a properly organized and structured modern version. The difficulty achieving it should not be under estimated. Every organization has a number people who are emotionally tied to the status quo and they feel threatened by change. To overcome this inertia, it is vital that you have the executive sponsorship and the support to break through this resistance. Key #5 Establish the program management office and get your phasing and shifting right At this point, we ve established that DAAS is a large complex undertaking that you are not going to finish in six months. In fact, it is a program with multiple projects that will take several years. As such, you need to fund a Program Management Office (PMO) and staff it with the most experienced people possible. However, experienced PMO executives are not easy to find. Hence, you have to pull experienced technology executives from programs of equal size and complexity. In our experience, the best come from the ERP world as they are used to multi-work stream and multi-year projects, and highly complex technical challenges. They are also comfortable with the soft skills required for working with executive steering committees, change management, communication plans and large budgets. Perhaps, most importantly, they understand how to manage through the dip. The dip is what happens to productivity right after any major system goes-live but before the organization has completely learned how to operate in a new way. They have to set expectations, keep the dip as shallow as possible, and help management to keep their nerve while working through it on the way to the promised benefits. How HCL can help? HCL s Business Analytics Services provides a DaaS solution for driving cost efficiencies and quality of service improvement by implementing a comprehensive service model for the consolidation of all data extraction, transformation and movement. CIOs and businesses with large shadow IT budgets use the service to: y Lower their cost base and shift personal to core business activities y Manage non-core data extraction and transformation activities based on service level agreements y Focus on staffing newer, high value analytic skills instead of commodity skills 2014, HCL TECHNOLOGIES. REPRODUCTION PROHIBITED. THIS DOCUMENT IS PROTECTED UNDER COPYRIGHT BY THE AUTHOR, ALL RIGHTS RESERVED. 4

5 HCL s DaaS solution provides the following unique characteristics: y A choice of numerous commercial models that range from a complete outsourcing to a catalog of services menu approach y A close partnership with Informatica with a focus on implementing their Data Management as a Service (DMaaS) toolset to lower costs and drive up, quality and responsiveness y A unique set of IP that incorporates best practices and tools to drive efficiency; including data ingestion frameworks and user tools for requesting and consuming data feeds and meta data For more information, please contact HCL at ets.bis@hcl.com. HCL EXECUTIVE BIOGRAPHY HCL JOHN WILLS Global Director, Center of Excellence HCL Business Analytics Services John Wills leads HCL s global Center of Excellence Business Analytic Services with responsibilities for solution development, labs, intellectual property and knowledge management. Wills has 24 years of business intelligence experience in a number of diverse leadership roles including responsibility for consulting, sales, marketing and product development. 2014, HCL TECHNOLOGIES. REPRODUCTION PROHIBITED. THIS DOCUMENT IS PROTECTED UNDER COPYRIGHT BY THE AUTHOR, ALL RIGHTS RESERVED. 5

6 ABOUT HCL About HCL Technologies HCL Technologies is a leading global IT services company working with clients in the areas that impact and redefine the core of their businesses. Since its emergence on the global landscape, and after its IPO in 1999, HCL has focused on transformational outsourcing, underlined by innovation and value creation, offering an integrated portfolio of services including software-led IT solutions, remote infrastructure management, engineering and R&D services and business services. HCL leverages its extensive global offshore infrastructure and network of offices in 31 countries to provide holistic, multi-service delivery in key industry verticals including Financial Services, Manufacturing, Consumer Services, Public Services and Healthcare & Life Sciences. HCL takes pride in its philosophy of Employees First, Customers Second which empowers its 91,691 transformers to create real value for customers. HCL Technologies, along with its subsidiaries, had consolidated revenues of US$ 5.4 billion, for the Financial Year ended as on 30 th June For more information, please visit About HCL Enterprise HCL is a $6.5 billion leading global technology and IT enterprise comprising two companies listed in India HCL Technologies and HCL Infosystems. Founded in 1976, HCL is one of India s original IT garage start-ups. A pioneer of modern computing, HCL is a global transformational enterprise today. Its range of offerings includes product engineering, custom & package applications, BPO, IT infrastructure services, IT hardware, systems integration, and distribution of information and communications technology (ICT) products across a wide range of focused industry verticals. The HCL team consists of over 95,000 professionals of diverse nationalities, who operate from 31 countries including over 505 points of presence in India. HCL has partnerships with several leading global 1000 firms, including leading IT and technology firms. For more information, please visit Hello there! I am an Ideapreneur. I believe that sustainable business outcomes are driven by relationships nurtured through values like trust, transparency and flexibility. I respect the contract, but believe in going beyond through collaboration, applied innovation and new generation partnership models that put your interest above everything else. Right now 95,000 Ideapreneurs are in a Relationship Beyond the Contract with 500 customers in 31 countries. How can I help you?