DIGITAL TRANSFORMATION The Wave of the Future Red Hat & Vizuri, All Rights Reserved

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1 DIGITAL TRANSFORMATION The Wave of the Future

2 Welcome! Preparing For Digital Transformation (DX) New York, April 18 th, 2017

3 Introductions Joe Dickman SVP, Vizuri Business leader working with organizations to understand how to leverage innovation for increased business agility. Specializes in insurance, healthcare, financial service, retail, and logistics. Kent Eudy Technical Director, Vizuri Kent is a Technical Director responsible for overseeing Microservice Architecture, Enterprise Integration and Java Enterprise Edition (JEE) practice areas. He is an expert at the containerization of applications and container orchestration platforms such as Kubernetes and OpenShift. Derrick Kittler Senior Application Platform Specialist, Red Hat Derrick is an experienced engineer, solution architect, manager and entrepreneur with many years of experience in business process management software, JBoss, databases and Open Source technologies. 3

4 Digital Transformation is a Business Strategy, not a Technology. Joe Dickman Vizuri Red Hat North American Partner Conference March 2017 Las Vegas, NV

5 Why should you care about Digital Transformation?...Because we have to compete against new disruptive startups that are hiring kids fresh out of college drinking loads of Mountain Dew! Global Insurer)

6 How do you define Digital Transformation?

7 Digital Transformation The use of technology to radically improve performance or reach of enterprises to change customer relationships, internal processes and value propositions {1} Customer Understanding Specific Geographies Market Segments Lifestyle and Consumer Behaviors Customer Touch Points Multiple Communication Channels Integration across internal and external processes Interacting with customers in the channel they desire using their preferred device Process Digitization Automated Banking Operations Airline Reservation, Ticketing, and Boarding Passes Seamless transactions across multiple trading partners Source: Westerman, G., & Bonnet, D., & McAfee, A. (2014). The Nine Elements of Digital Transformation. MIT Sloan. 7

8 VIZURI at a glance 2017 Inaugural Winner Red Hat Partner of Excellence Award 10+ Year Red Hat Partner Premier Red Hat Business Partner Expert Java EE & Open Source Solution Provider Preferred JBoss Certified Systems Integrator 4 Red Hat Innovation Awards 5 Time JBoss Middleware Partner of the Year Certified Resources Sponsor DC JBoss Users Group

9 Vizuri Core Strength Bridging Business and Technology Identify strategic business drivers Understand customer s business Evaluate architectural alternatives Design solutions using proven, innovative, and adaptable technologies Validate designs through iterative prototyping Business Strategy Solution Architecture Development Implementation Building Extensible Solutions Reference Architecture Continuous Delivery Design Patterns Performance Scalability Resiliency 9

10 How we define Digital Transformation (DX)

11 Pillars of Digital Transformation Infrastructure Management API Management Knowledge Management 11

12 Pillars of Digital Transformation Infrastructure Management API Management Knowledge Management CI/CD Repeatable provisioning Self-service Governance On-Premise / Hybrid / Cloud Microservices 3rd Party / Internal Security Monetization Death Star Architectures Rules / Decision Business Processes Predictive Analytics Machine Learning Unprecedented amounts of data 1 2

13 Digital Transformation Expedited SDLC Life-Cycle Introduce New Agile Techniques Tracer-Bullet Minimally Viable Products (MVP) 13

14 Enterprise Software Engineering Focus Areas Infrastructure Management API Management Knowledge Management 14

15 DIGITAL TRANSFORMATION REQUIRES ORGANIZATIONS TO THINK DIFFERENTLY

16 Conway s Law Organizations which design systems are constrained to produce designs which are copies of the communication structures of these organizations Melvin Conway

17 Don t overlook the basics Digital Transformation Technologies can overshadow the original Business Drivers Business Case Do not overlook the business objective due to the new cool flashy technology. Executive Support DX is not just an IT initiative. It requires holistic alignment across an organization to be successful Training and Mentoring DX is rapidly changing the way in which we think and implement solutions. No single organization can keep up. Utilize Trusted Advisors to train and mentor your staff while accelerating delivery

18 DX Customer Case Study

19 Case Study: Digital Transformation Legacy Modernization Non-Emergency Medical Transport (NET) Services Business Profile $1B Provider of Logistical Non-Emergency Medical Transport (NET) Services 26 Million Customers Operates in 39 States and District of Columbia 65+ Million rides per year (and growing!) Contracts with State and Federal Governments and Managed Care Organizations (MCOs) Technical Challenges Legacy client-server windows-based Borland Delphi desktop application IBM DB2 Mainframe Database Lack of visibility into business rules locked within application programs and database stored procedures HIPAA, PHI, Regulatory and Compliance reporting Point-to-Point integrations, hard-coded rules, limited service providers

20 Business Objectives Maintain Market Leading Position while Establishing a Next Generation Platform for NET Services Develop a platform that was flexible and scalable to accelerate product delivery Integrate easily with other systems and third-party servicers in a secure and consistent manner Automate decisions and manage the business processes outside of a technology Keep new mountain dew drinking youths at bay while transitioning to an Agile and Lean Enterprise

21 Case Study: Digital Transformation Legacy Systems Modernization Non-Emergency Medical Transport Services Single Page Web Application (Angular,js) was developed utilizing Responsive Design Workflows are now external to system and can be versioned and changed easily Business Rules for Federal, State, and MCOs are maintained separately from database and application code API Strategy provides consistency for internal/external service calls Microservices are designed and deployed to maximize scale up/out using container technology

22 DX Transformation utilizing Knowledge-Based IT A knowledge-based system (KBS) focuses on systems that use knowledge-based techniques to support human decision-making, learning and action 1 Knowledge-based IT (KB-IT) is the application of KBS techniques with information technology Design process Models and methods Software tools Decision-support mechanisms Digital representation, and System architectures Source: Fujita, H., & Lu, J. (2012). Knowledge-based Systems, Volume(31), pp

23 Primary Goals for Considering Knowledge-based IT Increase organizational agility Document processes to identify gaps and critical dependencies Protect Intellectual Capital Reduce Complexity Provide insight into implementation Improve IT Outcomes Collect Key Performance Indicators Support Contingency Planning 23

24 Challenge : Different IT & Business Champions Need all stakeholders to make a sincere commitment to collaborate: The more management buy-in, the more hope of project success Time-boxed modernization effort (typically 3 to 5 years) Appetite to continue support of center of excellence beyond inception Need influential champions on both Business and IT side IT left alone will revert a Knowledge IT implementation to traditional IT Business left alone will make infeasible goals Seek to achieve consensus and balance among stakeholders key to long-term operational success 24

25 Challenge : Different IT & Business Champions Knowledge management is high-level and high-trust Big responsibility no other IT projects are closer to the heart of the organization Often straddles business units/departments Enable organization and collaboration Tear down walls when appropriate Will cause total failure without sincere buy-in Should expect small controlled failures (early, often, and in small increments) 25

26 Red Hat Offerings Empowering Digital Transformations

27 Challenge : Microservices Decouple existing monolithic processes to discrete, consumable and scalable endpoints Simplify the life-cycle management Right size each service for its consumer base Polyglot in its foundational design Supports separation of concerns Resilient one service does not impact entire operations SVC SVC MONOLITH SVC SVC µsvc CONTAINER µsvc CONTAINER PRE-SOA SOA MICROSERVICES Virtualization Containerization 27

28 Challenge : Container Technologies Microservices alone is not enough. Containers are essential to provide isolation of many polyglot Microservices running within the same host Efficiency and automation for Microservices Faster and more consistent deployments from inception through realization Cross-platform portability utilizing different deployment models (e.g. physical, virtual, hybrid, private and/or public cloud) 28

29 Challenge : Implement Dev/Ops with Containerized Applications and Microservices The benefits ofdevops Speed of updates/ scaleout Accuracy of updates Reduced person hoursfor updates/scale Increased quality(dev ownership of QA) Implementation channel for DevSecOps 29

30 Challenge : Container Orchestration Technologies Containers cannot live alone out in the wild. They require a resilient network and operational management platform to provide scale up/out and a Continuity of Operations Plan (COOP) Container Orchestration & Cluster Management (kubernetes) Networking Storage Registry Logs & Metrics Security Infrastructure Automation & Mg 30

31 Challenge : API Connectivity Consumers Mobile Application Platform Information Integration Data Virtualization Microservices Other Enterprise Systems

32 Challenge : API Connectivity External business partners are key and essential to Customer s Service Delivery Interact and exchange information at scale Enable new markets that are currently unseen Allow the integration and embedding of your API into other s businesses Enable collaboration and consistency within the organization Customer Ecosystem API as a Business Internal Agility Partner Ecosystem Content & Transaction Channel 32

33 Solution: Red Hat OpenShift Container Platform

34 Success: API Connectivity External business partners are key and essential to Customer s Service Delivery Deliver thousands of rides through lyft monthly using Scheduling API disintermediating traditional Taxi market while improving Customer Satisfaction with reduced operation costs 34

35 Business Rules and BPM as a Microservice Process Application Planning Microservice Scheduling Microservice Payment & Reimbursement Microservice 35

36 Success: BPM and Rules as a Microservice Externalizing business processes and rules provides the foundation for innovation, confluence of integrated services, while reducing IT to standards Red Hat OpenShift Container Platform runs on Amazon Web Services utilizing xpaas (e.g. BPMS, Fuse, BRMS), Springboot for Microservices, and automated infrastructure provisioning using Ansible Tower CI/CD deployment pipelines using Jenkins and Nexus 5 AWS OpenShift Container Platform Clusters Custom B2B API to lyft that generates thousands rides per month with the ability to be scheduled, increased reliability, shortened response times, lower operating costs, and increased customer satisfaction Six figure monthly savings due to the codification of business rules for Federal, State, and Managed Care Organizations (MCOs) ensuring compliance 36

37 Register with this exclusive discount code: VIZURI995 for discounted registration Learn more at: redhat.com/summit

38 Thank you! Preparing For Digital Transformation New York, April 18 th, 2017 Senior Vice President, Vizuri (703)