Interview Study on Federated Digital Services Brokering

Transcription

1 VTT TECHNICAL RESEARCH CENTRE OF FINLAND LTD Interview Study on Federated Digital Services Brokering Obstacles, Role, Requirements and Opportunities Results Presentation Daniel Pakkala, Leila Saari, Tommi Aihkisalo, Erkki Siira, Anu Purhonen

2 Outline Introduction Objectives Method Results Obstacles Role Requirements Opportunities Conclusions Identified Business Approaches Future 15/11/2016 2

3 Introduction: Federated Digital Services Brokering Service added value or benefit afforded another Digital service service provided by means of ICT via UI (aka Apps, Web sites) via API (aka Microservices, Web services) Digital Services Brokering process of managing digital services between providers and users Federated Digital Service Brokering process of managing digital services in presence of multiple service brokers UI API 15/11/2016 3

4 Objectives To identify obstacles for adoption of multi-provider digital services in B2B markets including two viewpoints UI based digital services brokering API based digital services brokering To identify role of federated B2B services brokering in transition from information systems towards XaaS model In new data driven multi-organization business cases (e.g. new IoT and Big Data based business cases) To identify requirements and opportunities from B2B market for professional services brokering Service Quality Management (Security, Availability, Scalability, ) Technology/vendor lock in? Business partnering and APIs management (internal/external) Data interoperability, management and ownership 15/11/2016 4

5 Method Semi-structured qualitative interview Open questions prepared for approximately 1h interview 8 interviews in 4 companies, interviewees with different roles (CIOs, IT-Managers, Business Developers, Lead Architects) Interviews were recorded and transcript for analysis Team of experts analyzed the results in 5 workshops with individual analysis work in between Results are summarized in this slide set Interviews Interviewees Valmet 3 3 Cargotec 1 1 F-Secure 3 5 Bittium /11/2016 5

6 Results

7 Obstacles for Multi-Provider Digital Services in B2B Markets Lack of trust in global and open business environment Unclear responsibilities - diversion of blame Lack of continuity and credibility Lack of transparency of data management Irreplaceable legacy systems Rigid licensing and pricing models Organisational immaturity for XaaS co-operation Integration and Interoperability Unclear internal data management policy Partnerships 15/11/2016 7

8 Obstacles for Multi-Provider Digital Services in B2B Markets (1/3) Lack of trust in global and open business environment outsourcing partners might be under different legislation and release information forward volatile and obfuscated business partner ownership issues Unclear responsibilities - diversion of blame no party is responsible for corrective actions but forward problems to subcontractors or partners Lack of continuity and credibility E.g small partners may not be credible as a partner in core functions because of unrealistic service promise 15/11/2016 8

9 Obstacles for Multi-Provider Digital Services in B2B Markets (2/3) Lack of transparency of data management black box without information on how and where data is processed and stored Unclear internal data management policy not really knowing which data could be shared and how it should be done Irreplaceable legacy systems dependency on legacy systems undermine the possibilities to migrate to XaaS models 15/11/2016 9

10 Obstacles for Multi-Provider Digital Services in B2B Markets (3/3) Rigid licensing and pricing models offered models may not be suitable for business and do not reflect the current needs of buyer In-comparative offerings makes acquiring harder Organizational immaturity for XaaS co-operation mismatch in the skillset and practices of provider and user organization. Integration and Interoperability service integration of several different services from different providers is hard Partnerships too strong dependency on partner may be a hindrance when planning to migrate from the partner service 15/11/

11 Roles of Federated Digital Services Brokering Sales channel for ICT based products and services Creating partnerships Supporting in-house IT management Enabling IT management to have more active role in core business (product/service) development 15/11/

12 Roles of Federated Digital Services Brokering (1/2) Sales channel for ICT based products and services Some interviewed enterprises have service brokering alike platforms to project their services for their resellers Association with big partners could be an asset to use in marketing Creating partnerships Additional services to support core business process, providing flexibility and cost savings, are potential for services brokering. E.g. CRM, Technologically advanced subsets providing added value (visualisation, data analytics, ) 15/11/

13 Roles of Federated Digital Services Brokering (2/2) Supporting in-house IT management IT management currently sees itself as acting as service broker on some level producing integrated services and applications to support business units Enabling IT management to have more active role in core business (product/ service) development Cloudification and XaaS transition enable concentrating on the data management of core business interest moves in digital services serving the business processes instead of technologies or platforms 15/11/

14 Requirements from B2B Market for Professional Digital Services Brokering Offered services and their providers should have rating, certification, verification and validation Brokering should enhance portability and interoperability Brokering should promote security and trust 15/11/

15 Requirements from B2B Market for Professional Digital Services Brokering Offered services and their providers should have rating, certification, verification and validation to ease assessment and selection of suitable services and providers Brokering should enhance portability and interoperability Portability of the services and data to new providers, platforms and technologies must not be forgotten and is usually wanted by the customer to break vendor lock Brokering should promote security and trust Should facilitate building security and trust between the actors; users and providers Service provider evaluation and validation, SLA support 15/11/

16 Requirements in XaaS Transition for the services Provider should be reliable and dependable Security of services should be at least purchasable Scalability is one of the most important requirements Pricing & contracts should be flexible Vendor lock is not desired and should be avoided usually Data ownership and rights should be clear 15/11/

17 Requirements in XaaS Transition for the services (1/3) Provider should be reliable and dependable The service provider and the offered services must be reliable History, credits or any endorsement of being reliable and dependable, service or provider, would be nice Provider must be dependable in order for users to rely their business and provided services to its services Service continuation and availability 24/7 is expected Security of services should be at least purchasable Acceptable to purchase or build security separately for extra costs. Security partially builds on the trust of the provider, may be influenced by the common publicity etc. 15/11/

18 Requirements in XaaS Transition for the services (2/3) Scalability is one of the most important requirements Services offered must be scalable in capacity, size and pricing Scalability must work in both directions, up and down Pricing & contracts should be flexible Contracts should be short or preferably charge just for the usage Pricing should also scale up and down depending on the use Pricing should cover all service related costs, no hidden extra fees Also transparency wanted if the prices can be itemized Bottom line matters (Total cost) but higher prices can be sustained for a higher added value and features like strengthened security 15/11/

19 Requirements in XaaS Transition for the services (3/3) Vendor lock is not desired and should be avoided usually Portability of the services, components and especially data is important on all levels However, the lock may be acceptable if the benefits of the vendor and provided services exceed the disadvantages Multivendor model on multiple system layers instead of single black box solution is desirable Data ownership and rights should be clear Data sharing may have benefits that can be stressed for the value chain participants Producing suitable tools, services and applications is more important for the providers than the data ownership itself 15/11/

20 Opportunities from B2B Market for Professional Digital Services Brokering Systematic approach and tools for managing digital information and digital services interoperability in companies with respect to company s business processes Increase business elasticity and B2B co-operation alowing to focus in company s core businesses Improve communication and continuous planning between business units and enterprise IT Facilitate trust building between service provider and service customers e.g. via providing security and provider assesments Sales, marketing and purchasing channel for professional digital services on B2B markets Systematize and automatize collection, management and analytics of business relevant data flows 15/11/

21 Opportunities from B2B Market for Professional Digital Services Brokering (1/3) Systematic approach and tools for managing digital information and digital services interoperability in companies with respect to company s business processes Based on the interview it seems that digital information, digital services and API management are not currently very well organized activities in companies. Integration framework as a service could be interesting N.N. Increase business elasticity and B2B co-operation allowing to focus in company s core businesses The interview confirms the trend towards increasing B2B co-operation on various levels; partnering, co-creation, common platform, I do not see it reasonable to re-invent wheel many times. N.N. 15/11/

22 Opportunities from B2B Market for Professional Digital Services Brokering (2/3) Improve communication and continuous planning between business units and enterprise IT Based on the interview it seems that enterprise IT is still seen quite separate from the business units and co-operation is unidirectional rather than coinnovative (which is seen as vital in future of enterprise IT management). Facilitate trust building between service provider and service customers e.g. via providing security and provider assessments Based on the interview it seems that trust towards service provider is essential for all co-operation and companies select partners carefully But there is value in helping in partner and digital service assessments, while the number of partners is continuously increasing. 15/11/

23 Opportunities from B2B Market for Professional Digital Services Brokering (3/3) Sales, marketing and purchasing channel for professional digital services on B2B markets Based on the interview it seems that companies are mostly relying and adapting to well established brokering environment targeted mainly for consumers (e.g. Google Play and App Store). There seems to be nothing on the area of B2B apps brokering, that would consider the special requirements of B2B markets. Systematize and automatize collection, management and analytics of business relevant data flows Based on the interview it seems that all business relevant data is not systematically digitalized, collected and managed in companies. Yet BI and data analytics are seen very valuable. Unavailability of competent data scientists raised up in the interviews. Automation of data collection, management and data analytics would alleviate this problem and enable getting real-time BI. 15/11/

24 Conclusions Trust and security between service brokering actors is required and is essential in B2B context There is growing interest in digital services usage and brokering and it will affect business and IT management of companies in coming years (XaaS transition, cloudification and consumerization) There is no existing widely used commercial offering on B2B professional digital services brokering Reference brokering cases are still awaited There seems to be demand for trusted domestic/ European digital service brokering solutions Even though there are lot of obstacles and a bit fuzzy role for digital services brokering in B2B context there are lots of opportunities as well 15/11/

25 Identified Business Approaches Digital service brokering as an open on-line service (assessments/ certificates, promotions/ campaigns, usage statistics, added value services (e.g. customer support, billing)) Digital service brokering as a toolset for managing company specific ecosystems E.g. Google Play, App Store, MS Store,. E.g. Apigee API Exchange and other API management tools/platforms Digital service brokering as part of PaaS offerings E.g. Amazon/AWS Service Catalog, Some identified business approaches to federated digital services brokering 15/11/

26 Identified Business Approaches Digital service brokering as an open on-line service (assessments/ certificates, promotions/ campaigns, usage statistics, added value services (e.g. customer support, billing)) E.g. Google Play, App Store, MS Store,. Digital service brokering as a toolset for managing company specific ecosystems E.g. Apigee API Exchange and other API management tools/platforms Digital service brokering as part of PaaS offerings E.g. Amazon/AWS Service Catalog, Some identified business approaches to federated digital services brokering 15/11/

27 Future Recent governmental actions in Finland are speeding up the XaaS transition Service architecture for digital services interoperability and interworking is defined and will be taken into use in coming years (National Architecture for Digital Services) National solution for digital services brokering will be provided (Data Exchange Layer/National Service Bus) Food for thought: There is a road built and maintained between each Finnish IT system with public money Do companies want to use it or still build and pay their own road building projects? The governmental actions are likely to trigger the XaaS transition into full speed in Finland business potential on commercial offering on digital services brokering and digital services development is increasing 15/11/

28 TECHNOLOGY FOR BUSINESS