Sunday’s keynote focused on the hybrid cloud and on where Oracle stands with SaaS, PaaS, and IaaS. This keynote comes with the title, “The Business Value of The Cloud.” It should be interesting to hear Mark Hurd and the CTO of Intel talk about it.
Recap from last night’s keynote:
- Introduced 173 new SaaS apps
- 53 new Industry SaaS apps
- New Cloud platform upgraded Oracle Cloud with social, mobile, and analytics
- New cloud infrastructure engineered systems
- Includes the zero data loss recovery appliance – Larry called it a no brainer
- Mark Hurd upped the discount from 10 to 15%
Stats — The world is changing dramatically:
- in 2014 51% of workload are in the cloud
- 87% of organizations use public cloud
- 26% of people post negative coments
- 94% will pay more for great experience
- 76% of apps are highly customized and extremely inflexbile
- 80% of IT spent on maintenance
- IT budgets have stalled
- Most apps have an average age of 20 years
Who will speak:
- Jamie Miller, CIO of GE
- Filippo Pserini of P&G
- Tim Theriault CIO of Walgreens
- Albert Hitchcock, CIO of Pearson
- Yael Cosset CIO of Dunnhumby
- Kim Seenson, CIO of Intel
- Rob Carter, CIO of Fedex
- Steve Little CIO of Xerox
Walgreens Interview
Tim Theriault is the CIO of Walgreens. Walgreens has three major agendas.
- Transformation of stores with new formats, merchandise, etc.
- New loyalty program
- New retail programs. Flu shots, other shots, etc.
- 65% of Americans live near a Walgreens. Rolling out a program to provide some healthcare services in the store and in homes.
- Going global with a new alliance with Alliance foods
Walgreens is investing heavily in modernizing their supply chain systems…….while lowering IT budget. Security is fundamentally important as all these changes are made.
GE Interview
Jamie Miller gave a video interview that was pre-recorded. GE is focused on several transformation plays for IT. One is the Industrial internet. Another intiative is simplification. Simply employees and customers lives. Have to operate a core set of processes at scale and not 20,000 apps in a disjointed fashion. GE believes they need to start and start now. They will do it in a methodical way. Like SaaS because it forces some standardization because SaaS has specific ways of doing things.
P&G Interview
Filippo Passerinit, CIO of P&G, gave an interview with Mark Hurd.
Question: In terms of your overall business, tell us about your overall approach.
Answer: focus on creating consumer products. This demands a lot of innovation. They have a huge supply chain with 4 billion customers. Over the last few years has made a big effort to keep IT relevant to the business. Sometimes relevance means reducing costs, other times it means providing new functionality. P&G has made a lot of progress in this respect. They have as a mission to transform the way business is done. It’s about creating value in different ways.
Question: Is IT spending at P&G up or down?
Answer: Have separated spending into two categories. One is infrastructure or commodity spending. They treat it as a production line. Break down the cost to units and invest in ways to drive down the cost. The other category focuses on solutions where the business model is changing.
Question: Tell us about your digital world
Answer: There are so many complex factors in rolling out a new product. It’s hard to look at info from the last quarter. Spent a lot of time being able to run the business in real time. Have invested a lot in big data and the “business sphere” (queue a picture of a room full of screens of data) This is making a big difference for P&G. This includes both product sales data and social data with what people are saying about the products. This data allows them to identify the issue, the root cause, and to speed up the decision making process on moving toward valuable change.
Dunnhumby Interview
Yael Cosset, CIO
Question: Tell us a little bit about what you are doing with data, etc.
Answer: We are a customer science company. We help our clients make sense of their customer data. With the new digital information, they are helping to absorb the data and fine tune their understanding of the consumer. They had to create platforms to apply their custom science with more and more unstructured data. This is about a more personalized and engaging experience with the consumer.
Question: How does this massive scale of data affect your business?
Answer: One, the volume of data makes it hard to understand it. You have to create a platform to get it. You can’t take your system down for five hours to load the data. It has to be a scalable technology platform. That’s where cloud enabled platform is helping us. They standardized on Oracle Exadata about two years ago. The integration of hardware and software, cloud based platforms, and other visionary aspects made the difference. Hunnhumby has about a petabyte of data in their systems. Digital (social and mobile channels) is a massive challenge
Second: when you start engaging the consumers digitally, you need to do so real time. The science applied to the data needs to happen real time and it as to happen at scale. How do we get out of the way of the science. Apply the science as fast as possible. Technology can’t get in the way
Question: Anything else coming from Dunnhumby?
Answer: we are investing a lot in new data. The mobile and other data allow us to deliver new services and engagement. Health and wellness is one aspect of this. People are becoming more and more health conscious. We are spending a lot of energy around health and wellness.
Pearson Interview
Recorded Interview described how Pearson has moved from a print to a digital environment. They are putting a single operating model in their systems with simplification of IT. They are moving to a single ERP system They want a single view of customer data with a single CRM. Then you can track the customer across divisions and product.
They are architecting a cloud platform for this and want it to manage all of the above plus security and data. It’s the beginning of great partnership.
Xerox Interview
Steve Litte, CIO
Xerox is doing a lot of thing including the Palo Alto research center. Moving to a services business. About half of their revenue is in services. It’s an intersting time to be at Xerox.
Question: You have a large workforce. Tell us about the global workforce initiative.
Answer: we have about 140,000 employees worldwide. We have no single view to the workforce with over a hundred systems. They are just starting a global workforce initiative. Want to do more than just put in a tool. They want to standardize processes as well. Xerox is going to the cloud for this. Using Taleo talent management and Oracle ERP with cloud.
Question: Tell us about IT budgets.
Answer: It’s a little down. Need to simplify IT environment and converge onto the best platforms. Drive consistency and drive out costs.
Question: Any advice as you go through a global project?
Answer: It’s about partnership. Need to partner with the business. VP of HR and Steve are co-sponsoring the project. It’s the only way to be successful with a large complex project like this.
Question: Are there other large projects coming.
Answer: we have 2-3 large projects like this coming. In the services business, we do a lot like running EZ Pass system, parking ticket systems etc. Want to manage this consistently.
Fedex Interview
Pre-recorded interview:
Today’s modern footprint requires that all the technology is brought forwarded and deployed in new ways. Fedex has invested heavily in modularizing the infrastructure to tap into computer power. They are using a hybrid cloud approach to this. It’s an important step that enterprises have to take. Being able to tap into infrastructure is important to burst up when needed.
Intel Interview
Kim Stevenson, CIO and corporate Vice-President
Question: What are your thoughts on the earlier segments?
Answer: It’s a period of digital disruption. Every industry is in some form of disruptive state. Intel has spent the last decade thinking of IT as a cost savings. It’s prepared them to be ready to help with business productivity and speed of change. No business leader thinks IT moves too fast. We as a profession have to change.
Question: How are you changing?
Answer: Intel is being disrupted with declining PC business but more mobile, bracelets, etc. Intel prides itself on marketing but that didn’t play in sensor and other markets. They had to think through and partner with marketing to listen to what works. Used marketing automation and social listening. Know what content people like and what works. It gave a 300% improvement in leads. It gave a 75% improvement in lead velocity and 17% more engagement. Keep in mind that Intel is a B2B company.
Another example, with new channel and partners, they needed to figure out how to enable partners without the increase. it turns out there is a recipe to convince customers to use their product. They created a predictive model and shifted to most likely to buy rather than regional. Call center agents focused on getting information on what people were doing with intel and on the site and how to interact. It was so successful they are rolling it out. They use Blue Khai and Eloqua
Question: Other transformation projects?
Answer: We are at the beginning of a massive shift. It’s about business productivity. We will put a lot of workloads out to the cloud. That will allows us to make our processes smart and connected. It lets us focus on that.
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