IT Sourcing Strategy: When to do in-house and when to out-source, and how

• Know who are ?
  • IT Supplier Portfolio Review: Know who your suppliers are
    • oftentimes, mgt knows the top 2 in each category but often ignorant of no. 3
    • know how/when to aggregate purchase if too many suppliers of same products/services
    • First: Identify/Define the right scope: geographically confined?
    • Next: Understand/Aligh on IT Categories:
      • Hardware
      • Software
      • IT Maintenance
      • Telecom
      • Services
    • Visually draw map of how the IT budget is spent on the various services/providers. Seek how where the company wants to shift, look for gaps to exploit
    • Map IT suppliers to IT categories
    • Conduct Financial Review
    • Perform Qualitative Review
  • Service Catalogue
    • Listing all IT services provided within company
  • IT Activity
  • IT Strategy components
    • Business Strategy: IT Strategy enable Business Strategy
    • Service Strategy
    • Platoform/Application Strategy
    • Security Strategy: Internal training…
    • Infrastructure Strategy: Cloud, ….
    • Sourcing Strategy: when/where to outsource/insource
  • IT Strategy Enablers
    • IT Governance
    • Operating Models
    • IT Architecture
    • IT Processes
    • Skills & Capabilities
  • What's inside the IT Strategy ?
    • Key tech
    • Operating model
    • Suppliers strategy
    • Geographies alingment

Massive impact on how the project is going to unfold: Succeed or fail.

MNCs tend to create more technical debt, compared with SMEs

https://www.linkedin.com/learning/cryptocurrency-foundations/methods-of-cryptocurrency-creation?u=104800994

coinmarketcap.com

Menu of cyber hacking:

• Facebook account: $130
• GMail account: $165

• Reconnaissance
• Weaponisation
• Exploitation
• Installation
• Command & Control
• Action on Objections
• Often overlooked: wiping log files/traces of intrusion

Produce documents

• Use SingPass
• My Info

Data input

First deposit

Activate card

Register for online banking

Merchant bank is called Acquirer Bank: the bank goes out to acquire/enroll merchants to join the network

Payer's bank is called Issuer Bank: the bank issues the card to the customer

Agenda

• Why
• Concepts
• What is the Modern Architecture (vs Legacy)

Standards for Modern Data Platforms

• User-centric:
• Data-centric: mine data to innovate for seamless info flow
• Real-time: immediate processing
• Scalability: enabled through application modularity
• Business agility: through frequent, value-driven delivery
• Open architecture: foster innovation, enable partnerships

7 domains - Systems of:

• Engagement: UI
• Marketing: Personalisation
• Data & Insights:
• Records: Processing
• Infra & Operations

Cuts across 7 domains:

• Integration
• Security

Poll website: Mentimeter - https://www.menti.com/

https://www.gobusiness.gov.sg/gov-assist/

EDG, PSG

Free AWS access: https://aws.amazon.com/free/?nc2=h_ql_pr_ft&all-free-tier.sort-by=item.additionalFields.SortRank&all-free-tier.sort-order=asc&awsf.Free%20Tier%20Types=*all&awsf.Free%20Tier%20Categories=*all

Server on demand Pay as you go: how long you use, how much HD space you use…

Benefits:

• Trade capital expense for variable expense
• Massive economies of scale
• Stop guessing about capacity: Elasticity - ability to stretch/contract service supply whenever there are surges/dips in demand
• Increase speed and agility
• Focus on what matters
• Go global in minutes

Each Region has multiple Availability Zones

Strong player but high costs, low customer satisfaction.

https://www.bcg.com/publications/2020/increasing-odds-of-success-in-digital-transformation

The six success factors are:

• An Integrated Strategy with Clear Transformation Goals. The strategy describes the why, the what, and the how, which are tied to specific, quantified business outcomes.
• Leadership Commitment from CEO Through Middle Management. The company has high leadership engagement and alignment, including often-overlooked middle-management ownership and accountability.
• Deploying High-Caliber Talent. Management identifies and frees up the most capable resources to drive the transformation program.
• An Agile Governance Mindset That Drives Broader Adoption. Leaders address roadblocks quickly, adapt to changing contexts, and drive cross-functional, mission-oriented, “fail-fast-learn” behavioral change into the wider organization. They deal with individual challenges without losing sight of the broader goals.
• Effective Monitoring of Progress Toward Defined Outcomes. The company establishes clear metrics and targets around processes and outcomes, with sufficient data availability and quality.
• Business-Led Modular Technology and Data Platform. The company puts in place a fit-for-purpose, modern technology architecture driven by business needs to enable secure, scaleable performance, rapid change deployment, and seamless ecosystem integration.

Ulrich Trauzettel

Industry 4.0

• Transparency:
  • sensors on machinery-
    • location
    • temperature,
    • wear-and-tear, etc
• Predictability
  • with location
    • next leg of transport can prepare for arrival and adjust production schedule
• Self-control
  • autonomy
    • what is in sequence/parallel ? So that machines can adjust how system runs

Lean/TPM/6Sigma is not sufficient, but Industry 4.0 supplements and enhances the system

• Group 1: Demand forecasting
• Group 2: Personalization in sales & marketing
• Group 3: Digital twins
• Group 4: Smart procurement & supplier management solutions
• Group 5: Predictive and preventive maintenance
• Group 6: Robotic process automation https://www.linkedin.com/learning/introducing-robotic-process-automation/corporate-archeology?u=104800994
• Group 7: Fraud detection & analytics
• Group 8: Dynamic pricing
• Group 9: Smart factory of the future (Industry 4.0)

Possible use cases/opportunities for digital initiatives:

• Product management
  • Channel optimisation through omni-channel (vs multi-channel)
  • Demand forecasting
• Opes & Procurement
  • Ops excellence
    • Performance analysis
    • Demand forecasting
    • Smart Warehousing
  • Process optimisation
• Marketing & Sales
  • Stakeholder insights
  • Commercial excellence
  • Geo-optimisation
• Risk & Quality Management
• Finance, HR, IT
  • Shareholder insights
  • Planning and monitoring

RPA: Robotic Process Automation

RPA vs STP: It seems STP requires massive system overhaul, whereas RPA sometimes mimicking of human to interact with legacy systems.

RPA is generally a band-aid, meant for short term solution and needs to updated with each system upgrade. Even if it is boosted by AI/ML, it might be dangerous.

Digital maturity

• starter
• literate
• performer
• leader

Key questions:

• Why? (Strategy) Define Bionic vision
• What? (Use cases) Create new digital growth
• What? Digitise the core
• How? (Enablers) Solidify the foundation

DAI: Digital Acceleration Index

Roles of different people in an Agile organisation:

Key takeaway: Many differentiations of the many activities and skills/talents needed. I think many need to multi-task/multi-talents.

6 critical success factors for digital transformation

• Integrated strategy with clear goals
• Leadership commitment
• Deploy talent
• Agile governance drives adoption
• Monitor progress of outcomes
• Business-led modular tech & data platform

70 - 20 -10: What it takes to unlock value from digital transformation ?

• 70% Capability build and change management
• 20% Technology / IT
• 10% Strategy / Algorithms

• Ensure Business Continuity
• Reset Investment Portfolio
• Future-Proof Tech Function
• Build Scalable and Adaptable Data and Digital Platforms

• modern, simplified, application, data, and technology infrastructure landscape
• operating model based on close collaboration between business and the technology function
• future-ready technology workforce, leadership, and culture
• well-defined ecosystem and sourcing model
• Leading-edge cybersecurity capabilities
• technology function that participates as an equal with the business in all key digital programs

• Respond
• Recover
• Reimagine

Largest tech companies (Netflix, Uber, AirBNB, etc) don't own the physical assets needed to operate.

• Data explosion
• Pervasive digitalisation: Omnichannel, sensors, always connected
• Enabling technologies
• New customer: 24×7 engagement
• New market forces

TMT: Technology, Media Telecom industries

Key takeaways:

• Look at digital disruption as a gift rather than a problem
• Beware of the Digital lipstick syndrome: Embrace digital developments whole-heartedly
• Make customer obsession and growing customer value most important guiding principle
• Digitise every activity in value chain
• Master value creation and value capture in open ecosystems
• Leverage the wisdom of crowds
• Harness power of AI
• Agile
• Experiment, experiment, experiment

Ikea effect:

STAC:

• Simplify
• Transparency
• Accountability
• Collaboration

Stages of a company's digital journey:

• Digitally Present
• Digitally Active
• Digitally Engaged
• Digitally Competitive
• Digitally Mature

5 rules of digital strategy

• Assess the Strategic Impact of Digital
• Set Your Digital Ambition High
• Place Big Bets
• Build New Strategic Muscles
• Manage Transformation Actively