CSC World May 2016

MAY 2016

WORLD Journey to the Digital Enterprise Getting to the digital future requires five key steps

INSIDE Growing Digital Business Leaders Avoiding Vendor Lock-In The New Face of Biometrics Field Engineer of the Future

YOUR AGENTS AND CUSTOMERS ARE MOBILE. IS YOUR POINT OF SALE SYSTEM?

Imagine the power to quote, propose and process from tablets and mobile devices, all integrated with your core policy administration systems. The new CSC IntegralTM Point of Sale solution gives insurers out-of-the-box flexibility to quickly launch products and perform end-to-end point of sale and service functions. The next-generation system is mobile-ready for agents and customers, and it includes offline capabilities so insurers can continue working even without Internet access. In the new world of Digital Insurance, mobile sales and service solutions are within reach FOR THOSE WHO SOLVE.

csc.com/integral

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CSC WORLD | MAY 2016

WORLD

Inside CSC World

CHIEF MARKETING & COMMUNICATIONS OFFICER Gary Stockman

DIGITAL SERVICES: THE NEXT BIG THING

EDITORIAL DIRECTOR Patricia Brown

It is hard to believe we are already firmly in the second half of the decade and that 2020 is now clearly visible on the horizon.

SENIOR MANAGING EDITOR Jeff Caruso CONTENT MARKETING EDITORS Christine Neff Lucy Nolan CONTRIBUTING WRITER Dale Coyner ART DIRECTOR Deric Luong DESIGN & PRODUCTION Creative Services CSC csc.com THE AMERICAS 1775 Tysons Blvd. Tysons, Virginia 22102 United States +1.703.876.1000 ASIA, MIDDLE EAST, AFRICA Level 9, UE BizHub East 6 Changi Business Park Avenue 1 Singapore 468017 Republic of Singapore +65.6809.9000 AUSTRALIA 26 Talavera Road Macquarie Park, NSW 2113 Australia +61(2)9034.3000 CENTRAL AND EASTERN EUROPE Abraham-Lincoln-Park 1 65189 Wiesbaden Germany +49.611.1420 NORDIC AND BALTIC REGION Retortvej 8 DK-2500 Valby Denmark +45.36.14.4000 SOUTH AND WEST EUROPE Tour Carpe Diem 31 Place Des Corolles CS 40075 92098 Paris la Defense Cedex France +33.1.55.707070 UK, IRELAND AND NETHERLANDS Floor 4 One Pancras Square London N1C 4AG United Kingdom +44.020.3696.3000 CSC WORLD (ISSN 1534-5831) is a publication of Computer Sciences Corporation. Copyright ©2016 Computer Sciences Corporation All rights reserved. Reproduction without permission is prohibited.

Technologies and business strategies that were cutting edge in 2010 have now achieved mainstream status. Companies that embraced social, mobile, analytics and cloud strategies early scored a first-mover advantage in achieving their goals. Today, however, those once-exotic concepts have become table stakes. They are a competitive requirement in most industries. So what’s next? That question is the focus of this edition of CSC World. CTO Dan Hushon shares his views on the new strategic imperatives that business leaders will have to address to take their organizations deeper into the digital services economy. Having implemented foundational technologies in the first half of the decade, companies will now have to develop new organizational structures and leadership strategies that will reinvent how specific organizations — and entire industries — deliver value between now and the end of the decade. In this context, our colleagues at the Leading Edge Forum provide some specific ideas on the leadership traits that will characterize high-performance organizations in the very near future. Beyond the personal qualities such as trust and empathy that make people want to work harder and smarter, leaders should consider embracing specific new skills as we move past tightening cycles of change to deal with accelerating cycles of disruption. The bottom line is that all organizations will have to consider behaving like startups, because most markets seem destined to be redefined every few years. It is critical for leaders to maintain and foster their entrepreneurial spirit by developing a “re-startup” mentality, where the latest software development concepts are embraced. This requires a leadership style that’s comfortable not only with change management but also with disruption management. Whom exactly are we leading? Meet Anne — on page 13 — a composite representation of the men and women in today’s workforce. As we better understand Anne, and the relationship she has with the technologies and services that define her work and personal life, we will gain insight not only into the people we need to lead, but also into the clients we need to serve. What is clear as we look at this edition is that the volume of change is continuing to accelerate, creating complexity that needs to be managed in constantly shifting contexts. As Glyn Knaresborough says on page 15: “The digital world is far more transparent and ruthlessly revealing of weaknesses and flaws in strategy and execution.” Gone are the days of siloed and defensive thinking and lack of organizational agility, he adds. We hope you find in this edition of the magazine some of the keys for surviving and thriving in today’s digital services environment. Enjoy the issue. PATRICIA BROWN Editorial Director, CSC World

csc.com/cscworld

MAY 2016 | CSC WORLD

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CSC WORLD | MAY 2016 | VOLUME 14 | NUMBER 1

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22

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8 4

NEWS

APPLICATIONS

Business leaders worldwide and police in the UK embrace digital, a chronic care management service is the first of its kind in the United States, and CSC acquires UXC Limited.

Successful companies see digital disruption as the foundation on which to build new business strategies.

14 Digital Really Is Different

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HEARD ON CSC.COM

Experts are coming to csc.com’s blogs and Town Halls to share insights on industry developments and technology trends.

16 5 Technologies That Will Change Work Forever

COVER STORY

8 5 Key Steps on the

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Digital Journey

WORKPLACE

Employees have already seen massive changes in their workplace — and much more is coming.

SECURITY

18 The New Face of Biometrics Biometrics has already revolutionized authentication, but its future lies in improving the user experience.

Organizations around the globe understand the power of digital transformation, but many don’t know where to begin. CTO Dan Hushon details the five technologies crucial to digital success.

20 Are Security Backdoors a Necessary Evil?

The Digitization of Anne

22 Avoiding Vendor Lock-In with Agile Cloud

A CSC security expert examines the broad implications of government requests to hack into devices.

The adoption of digital tools is drastically changing everyday life.

CLOUD

Cloud technologies can free companies from dependence on a single vendor, if implemented the right way.

BANKING

24 Stitching Together the Customer Experience Today’s banks need to understand and embrace an omnichannel model of service.

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ON CSC.COM CSC BLOGS Learn about the latest technology news and trends with thoughtful posts by CSC leaders and expert contributors. blogs.csc.com.

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CSC TOWN HALLS Join a continuing series of online conferences on IT topics that matter to you, featuring CSC experts and special guest speakers ready to answer your questions. csc.com/TownHall.

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LIFE SCIENCES COMPANIES

SUCCESS STORY BRIEFING CENTER View video success stories featuring CSC subject matter experts, clients and global partners. csc.com/Success_Stories.

CONVERGE ON HEALTHCARE

INSURANCE

26 The Dual Agenda of the World’s Largest Insurers Global Systemically Important Insurers put innovation and digital first while revamping infrastructure.

HEALTHCARE

28 Improving Care for Diabetes Patients A team at George Eliot Hospital in England finds success in Lorenzo adaptation.

31 Benefits of Agile Health In the evolving healthcare landscape, CIOs must champion technical innovation and organizational transformation.

LIFE SCIENCES

RESEARCH

National Grid boosts innovation with the Leading Edge Forum’s Xperience Lab.

CROSS-INDUSTRY

CSC turns IT expertise inward to improve network, security, human resources and marketing efforts.

LAST WORD

While IT once relied on business relationship managers, today’s market requires new models of leadership.

36 The Field Engineer of the Future

38 Client Zero

40 7 Ways to Grow the Digital Leaders Your Firm Needs

32 Life Sciences Companies Converge on Healthcare

Pharmaceutical companies are expanding beyond their traditional role as suppliers and getting directly involved as partners in healthcare.

MANUFACTURING

34 Putting IoT Within Reach

Open source and shared platforms bring IoT benefits to manufacturing organizations.


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NEWS

BUSINESS LEADERS EMBRACE THE DIGITAL REVOLUTION Business and IT leaders expect their company operations to become strikingly more digital over the next 3 years, according to a recent survey conducted by The Economist Intelligence Unit and CSC.

35.8%

Across different company functions, the executives say they expect the use of modern apps, mobile devices and cloud computing to rise over the next 3 years. The annual survey polled more than 500 executives from around the world and across a range of industries. For example, 35.8 percent of executives say their supply chain operations would be entirely digital in 3 years, up from 28 percent today; 45.7 percent expect their finance operations to be entirely digital, up from 31.5 percent today; and 42.8 percent expect their customer service operations to be entirely digital, up from 34.2 percent today.

86.5%

of respondents expect the marketing and sales area of the business to be either mostly or entirely digital in 3 years.

of executives say their supply chain operations would be entirely digital in 3 years.

The most rapidly evolving area is marketing and sales, as 86.5 percent of respondents expect that area of the business to be either mostly or entirely digital in 3 years, up from 69.3 percent today. The ability of digital technologies to cut through inefficiency and make workers more productive is a primary driver, as the top goals for moving toward digital are to become more efficient (53.6%) and to cut costs (34.7%). Executives are also worried about emerging competition, with 26.7 percent indicating that the move to digital is necessary to keep up with new, fully digital competitors. For more on how to advance on the road to digital technology, see our story on page 8.

CSC-UXC READY TO TACKLE TRANSFORMATION JOURNEYS CSC’s acquisition of UXC Limited has created one of the largest IT services companies in the Australia–New Zealand region, one that is poised to help clients bring their enterprise applications into the digital age.

professional services, infrastructure and health services. These capabilities and UXC’s entrepreneurial business and culture complement CSC’s next-generation offerings and deep industry expertise.

“CSC and UXC together will be a new and agile organization that is well positioned to partner with clients on their digital transformation journeys,” says Seelan Nayagam, managing director, CSC Australia and New Zealand. “It is a further step in CSC’s global strategy to be a growth-oriented, client-focused, pure-play leader in digital transformation.”

The total price of the acquisition was approximately AU$427.6 million (US$307.9 million). The deal was accepted overwhelmingly by UXC shareholders, with approval by the CSC and UXC boards and Australian regulators.

UXC has midmarket leadership in enterprise application capabilities — including Microsoft Dynamics, SAP, Oracle and ServiceNow — as well as consulting, applications management,

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UK POLICE MODERNIZE WITH CSC MYWORKSTYLE To protect and serve 7.2 million people over a 620-squaremile area, the UK Metropolitan Police Service (MPS) needs its 31,000 officers and thousands of support staff to have anytime, anywhere access to information through modern digital tools. Under a new 5-year End User Services contract, CSC will help MPS create the next-generation digital policing workplace. CSC will modernize the MPS’s current end user IT services by implementing CSC MyWorkStyle, which provides employees with secure access to information and applications both in the office and on the go. The services will range from desktop, virtual desktop, mobility and tablet services to email, collaboration, instant messaging, Web meetings, remote support and desk-side support. “We look forward to working with CSC to help the MPS refresh, renew and replace a range of our IT devices and services, which will allow our people to work in a more agile way, using remote technology and a range of mobile and desktop devices,” says Chris Naylor, director of Digital Policing at MPS. “This contract will help us transform our IT to begin realizing our ambition to become a truly mobile digital police service.”

FULL-SERVICE CHRONIC CARE MANAGEMENT LAUNCHED CSC introduced a full-service Chronic Care Management (CCM) service, the first of its type in the United States, with Reliance ACO as its first adopter. Building on a similar CSC service launched last year in the United Kingdom, CSC’s CCM solution gives healthcare providers a simple and efficient technology-based approach to fully participate in the U.S. Centers for Medicare & Medicaid Services (CMS) CCM program, which focuses on improving the quality of life for seniors with at least two chronic conditions. “Our mission is to bring the very best to our providers,” says Dr. Mohamed Siddique, president of Reliance ACO. Siddique says Reliance ACO selected CSC because it offers the only end-to-end CCM solution that delivers the technology, logistical and patient engagement support for meeting 100 percent of CMS guidelines. “It’s scalable to meet our physicians’ needs and cost efficient, as it doesn’t require a capital investment,” he says. “We will be recommending the CSC CCM solution to our member physicians.”

Dr. Robert Wah, CSC’s global chief medical officer, points out that the highly beneficial and scalable fee-based service aligns with the goals of modern healthcare organizations, which are moving to value-based models of care. “CSC’s CCM solution allows physicians more time to focus on the patient, improving patient outcomes and enhancing communication between patients and their caregivers,” Wah says. CSC partnered with industry leaders Smartlink Mobile Systems LLC of Cary, North Carolina, and GenerationOne of Southfield, Michigan. CSC will leverage Smartlink’s platform for CCM program management and electronic medical record (EMR)-agnostic coordination between providers and mobile patient communication to deliver seamless collaboration with clinics, as well as ensure compliance with program requirements.


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Heard on CSC.COM

Experts inside and outside of CSC are coming to csc.com to make their voices heard in CSC Town Hall webcasts and our blogs. Here are some highlights.

Got data? Now add knowledge Data is a potential source of insight and leadership, but only if enterprises have the right workforce to uncover it. The next-generation workforce will need to be able to draw actionable insights from data. ... A data-driven workforce needs the agility to experiment in small increments, build complexity as needed and improve hypotheses as more data becomes available.

Jerry Overton Head of Advanced Analytics Research at CSC’s ResearchNetwork CSC Blog: “Context Turns Big Data into Knowledge” csc.com/context

Do you commit password sins? People want to remember their username, so they use the same username everywhere. No good. It’s also a problem to use usernames that are easy to guess, such as your name or primary email address. Your username and password combination is a lock, and your username is half of it, so obscure it.

George Hulme Technology Writer CSC Blog: “5 Common Password Sins That Weaken Security” csc.com/password-sins

What does digital mean to you? “For me, digital is defined as an information-driven business where you’re combining all available information for a specific purpose. It enables a more informed business or personal decision with even more fine-grained specificity as new information becomes available. It enables us to bring enough context to the conversation to know what questions to ask to get a better answer or decision much more quickly.”

Dan Hushon Chief Technology Officer, CSC Town Hall: “Journey to the Digital Enterprise” csc.com/journey-to-digital-town-hall

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Power to the patients Until recently, physicians directed how care was delivered to patients. Today, patients are being put at the center of care management. They are becoming an active part of their care management by researching, providing data and participating in decisions. For example, more than 60 percent of patients research their prescriptions to make themselves more informed about the benefits and the side effects.

Gurdip Singh Vice President and General Manager of Healthcare and Life Sciences

How banks can keep pace Imagine a last-place football team that needs new talent, yet spends so much on uniforms, balls and other equipment, it can’t afford the salaries top players demand. That’s essentially the situation facing many banks today. These banks need innovation to keep pace. Yet they spend up to 80 percent of their IT budgets on day-to-day, “keep-the-lights-on” activities.

V. Balasubramanian CTO, Banking & Capital Markets, CSC CSC Blog: “Why Banks Now Need Customer-Focused Finance” csc.com/customer-focused-finance

Software and Solutions, CSC Town Hall: “The Journey to Digital Health” csc.com/digital-health-town-hall

The changing role of the CMO Chief marketing officers are wielding more power in the boardroom, with chief executive officers increasingly calling on them for strategic input. Why is that? The convergence of technology across mobile, social, big data, the Internet of Things and cloud has changed basic expectations for individuals — consumers, business buyers and employees alike. Organizations are now coming to understand that the experience an individual has with the brand, products, services or strategy is the new point of entry to sustainable, profitable business relationships.

Sonia Eland Director of Strategic Alliance Ecosystem & Digital for CSC Australia and New Zealand CSC Blog: “Becoming CMO 3.0” csc.com/cmo-3

Welcome to the virtual reality One thing will be certain: When we all unwrap our VR devices next Christmas, we’re going to be hungry for content to watch on them. Right now, there’s not so much out there. And many of the videos that do exist are being created by and for brands. (Really, how many skateboarding videos “brought to you by Mountain Dew” can a person watch?)

Scott Dryburgh Industry Lead for Media, CSC UK CSC Blog: “Virtual Reality and What It Means for Media Content” csc.com/virtual-reality-in-media

MAY MAY 2016 2016 || CSC CSC WORLD WORLD

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COVER STORY

5 KEY STEPS ON THE

DIGITAL JOURNEY Building a Digital Enterprise Means Making These Transformational Shifts by Dan Hushon

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No matter your industry, organization or job role, digital technology is most likely transforming it right now. Digital technology has the power to improve customer experience, increase employee productivity, wring out service inefficiencies, safeguard infrastructure, strengthen the brand and ensure a competitive edge. These digital experiences serve to unlock information and provide a more integrated and contextual view in order to give enterprises a more complete understanding of customers and transactions and enable better-informed decision making. In short, it’s where the future lies, and C-level executives, board members, line-of-business managers and IT professionals alike recognize this. Organizations are now ready and willing to invest in digital technology, but many wonder: How? We’ve identified five key technology shifts that enterprises in all industries need to embrace: digital applications, cloud platforms, integrated digital service management, software-defined networks and the digital workplace. Let’s look at each.

Digital applications: Unlocking business potential Innovative software is transforming entire industries, yet dated applications still hold back progress at far too many organizations. The solution? Digital applications that leverage documented, published interfaces and cost-effective computing resources. Today’s digital applications are assembled from information services via APIs. That means they can cross-integrate information from diverse sources — internal business units, external partners, the Internet of Things (IoT) — and deliver results “in context” to unleash value and improve outcomes. What’s more, many digital applications can loosely couple to an enterprise’s legacy software, unlocking the value of information stored in older, back-end applications in new and powerful ways. For example, organizations can consumerize their enterprise applications, delivering the software to both mobile and desktop users via internal self-service app stores. Organizations that adopt these tools can make innovative changes, display high levels of agility and dramatically improve both their speed and precision. They can deliver innovations to market quickly, make full use of cloud and mobile computing capabilities, respond swiftly to the changing needs of clients and raise revenue while lowering costs. Digital applications are key to unlocking a business’s full potential.

91%

of net new software will be built for cloud delivery in 2015.

Cloud platforms: Enabling agility In a practice known as “shadow IT,” business leaders go outside or around the IT department to buy computing services directly from thirdparty suppliers. They do this because privately managed environments that were once state-ofthe-art now hinder their ability to meet business needs. Cloud platforms offer a compelling alternative. These on-demand resources provide nearly unlimited flexibility for businesses to satisfy multiple user groups. Cloud platforms free enterprises from the constraints of proprietary stacks of hardware and software. And, they create an environment where users can get immediate access to necessary resources, lower costs through automation and enable developers to deliver applications in record time. All this helps take the shadow out of “shadow IT.”

“The ability to use things like cloud — where we can quickly expand, and we’re not tied to any physical infrastructure — and the ability to design things and move very quickly … that has to be part of what you’re thinking about if you’re a manufacturer today.” — Sam Quick, vice president of global IT and CIO, Varroc Lighting Systems

Banking: Managing Risk Bank CIOs face a dilemma. To stay competitive, they must invest in new “change-the-bank” systems that empower customer-focused finance. At the same time, they must continue to spend a large part of their budgets on day-today, “run-the-bank” operations. So how can they manage the transformation? By starting with two important steps. First, bank CIOs can make changes that lower the costs of run-the-business operations. Then, they can shift some or all of those savings to innovative, change-the-business initiatives. Next-generation IT infrastructures will enable banks to wring out savings from legacy IT architectures — the systems they’ve been building for decades — by as much as 50 percent of the run cost. These savings can then be invested in the customerfocused, digital technology that will drive future success. Getting there will be a journey, one that begins with migrating from older systems and modernizing both off-the-shelf and custom applications. The next step is moving to new cloud-based platforms — key to lowering the percentage of total spending dedicated to running the business. Modern applications also set the stage for making innovations and improving customer experience for a competitive edge.

— IDC Market Analysis Perspective: Worldwide SaaS and Cloud Software, 2015 – 2019 — Software Will Never Be the Same, Robert P. Mahowald and Benjamin McGrath, October 2015


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COVER STORY How can a modern cloud platform do all this? With shifts in these four areas: • Infrastructure. The cloud shifts organizations from highly specialized and expensive servers to generic, repurposable, commodity hardware. This hardware is tied together with resilient, open source software that automatically protects and manages the environment. • Management and operations. With the cloud, organizations can shift from highly manual to highly automated services. Self-provisioning lets business units request resources and build environments on demand, eliminating the need for IT to step in. Cloud platforms also enhance continuous application development and delivery. • Workload management. Here, the shift is from a static approach to one that’s elastic. Cloud-based workloads can be moved from one compute environment to another based on the policies or conditions detected when the workload runs. This helps systems strike just the right balance, providing needed computing resources without overcommitting. • Application controls and context. Cloud platforms “get” key application performance characteristics, such as data governance and access policies. As a result, issues that have plagued IT for years are now managed and controlled by the platform. Today’s diverse and demanding end user community requires the access and resources the cloud platform can provide — and business can grow as a result.

IDSM: Managing the digital enterprise Today’s multisourced IT solutions have become too complex for traditional IT service management. A new approach, known as integrated digital service management (IDSM), is a forward-looking way to handle growing responsibilities. In the digitally transformed enterprise, IT no longer stands alone — or, at least, it shouldn’t. Instead, IT acts as a hub through which other business services are delivered. For example, in the past when the marketing department needed large-scale data analytics and Web support, it had to request those services — and often wait days, even weeks, for them to be delivered. Now marketing can get those same services more rapidly through a self-service IT hub. That’s powerful, but it also adds new requirements. Businesses that leverage multisourced IT delivery must ensure that they can meet the needs of those services. Narrowly defined contractual responsibilities and a tower-centric approach to service integration and management (SIAM) can hold IT back.

“ We married business and technology, and we bring new ideas, new services to our clients. That’s what makes sense.” — Carlos Goncalves, global CIO, Société Générale

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IDSM is the next logical step. This approach takes a holistic view of SIAM through the lens of DevOps and continuous delivery. IDSM focuses on the processes and responsibilities of parties to respond with shared accountability for requests and remediation. Today’s enterprise recognizes the need to mesh digital applications, cloud platforms and a modern IT infrastructure. IDSM can be the glue that holds it all together. With IDSM, IT departments can better manage complex solutions, lower their costs and risks, and deliver great value.

Software-defined networks: Speeding the business The classic enterprise network architecture is at a crossroads. Demand for network resources is escalating — and at the same time, companies find that traditional approaches to network design and implementation can’t measure up to the everfluctuating workloads, changing load patterns, and new services and capabilities coming from outside the data center. Software-defined networks (SDNs) present the solution. In an SDN, software applications can handle performance, service or cybersecurity issues proactively through a broad set of network- and network function-based controls to better serve the business. Compared with the traditional diagnose-and-react manual process for application performance management often used today, SDN offers big advantages. For one, the network is no longer defined by its physical devices. Instead, the network extends from servers (with virtual switches) to mobile devices. At the same time, the network’s role changes, from one of connecting devices to one of supporting applications — and with software-based controls, these changes can be put into effect in seconds rather than days. SDNs also offer greater control over network traffic. The technology helps IT staff differentiate network access for users and applications based on qualifying metrics, such as user privileges and connecting devices. By separating information flows, IT can better deal with individual service interactions.

By 2019, 45%

of IoT-created data will be stored, processed, analyzed and acted upon close to, or at the edge of, the network. — IDC FutureScape: Worldwide Internet of Things 2016 Predictions, November 2015

These next-generation networks will also have a profound impact on today’s virtualized hybrid data centers. SDNs can shift an enterprise’s approach to workload performance, IoT communications, mobile services and much more. It does so, in large part, by replacing rigid, hard-coded network properties with variables that are fulfilled at deployment. For example, if an IT department using an SDN identifies a potential problem, it can automatically prescribe a course of action to prevent any disruption of service. In effect, the SDN not only provides an advanced level of programmability, but also changes how CIOs think about their information networks and overall service architectures. IT leaders can now design and provision networks to handle today’s new business demands, connected devices, nextgeneration technologies and a multitude of modern services. That’s a networked road to success.

“Once upon a time, anything that touched our network, I knew about and controlled. Now there are things riding on my network that I can only influence.” — Marc Probst, CIO, Intermountain Healthcare

Healthcare: Getting Personal The delivery of healthcare is becoming more collaborative and more focused on outcomes. A new approach, known as population health management (PHM), promises to help in both areas. PHM is a multistep process that involves first aggregating patient data across multiple IT systems, then analyzing the data into an actionable record and finally using that record to actually improve both clinical and financial outcomes. PHM aims to keep the patient population as healthy as possible, minimizing the need for expensive interventions such as emergency room visits, hospitalizations and imaging tests. PHM can also lower costs, in part by focusing on high-risk patients who generate the majority of healthcare expenses. The technique also systematically addresses the preventive and chronic care needs of patients. In most cases, PHM requires automation to help organizations better assess population needs and stratify populations based on geography, health status, resource utilization and demographics. Bringing IT to bear on these tasks saves time and money, making PHM economically feasible. The shift to PHM also makes it possible to personalize patient care by adding context to data and distilling it into something actionable. In healthcare, there’s no shortage of data. But a shift to PHM can help providers put that data to better use.


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COVER STORY Digital workplace: Fueling collaboration It’s easy to talk about the digital workplace, but actually creating one requires managers to adopt an “outside-in” perspective. This means acknowledging that innovation is no longer limited to the organization’s four walls. It can instead come from just about anywhere — suppliers, partners, customers, even competitors.

CIOs can move their enterprise forward in the journey to digital by taking full advantage of these five transformational shifts. The steps may involve tectonic shifts for both individual organizations and entire industries. But make no mistake: The time to act is now. DAN HUSHON is CSC’s chief technology officer. Learn more at csc.com/digital.

In the digital workplace, workers can easily get the information they need to perform their jobs with speed, efficiency and effectiveness. And they can do so regardless of the information’s location, format or underlying technology. So, how does an organization create a hyperproductive digital workplace? With four key elements:

Insurance: Managing Change

• Simplified access to information. Employees must be able to access applications and information and collaborate with colleagues from various physical and virtual devices, both inside and outside the corporate firewall. • A collaborative experience with centralized controls. The organization must enable controlled collaboration among employees, partners, customers and, in some cases, the general public. • Enabled end users. Self-service tools can empower employees to request, install, configure and use applications when needed. • Job-specific individualized experience. Employees must have access to the right tools and information for their roles, and the user experience should be individualized.

Insurers that understand and respond to these industry forces by embracing the shift to digital can seize new business opportunities, control infrastructure costs and lay the foundation for a more profitable future. The transformational journey will ultimately lead the industry to redefine its basic value proposition, going from a model of simple indemnification of loss to one that also includes education, prevention and continuous value for customers.

Because employees are among an organization’s greatest assets, giving them the power to access information quickly and easily, to employ self-service techniques to get their jobs done and to collaborate with other talented individuals both inside and outside the organization can lead to business success.

25%

IT organizations will dedicate at least of their software budget to mobile application development, deployment and management by 2017. — IDC FutureScape: Worldwide Mobile Enterprise Applications 2015 Predictions, John Jackson and Amy Konary, December 2014

The insurance industry is under pressure. Clients used to mobile banking apps now expect one-click ordering and instant fulfillment from their insurers, too. At the same time, new competitors are entering the market from other industries, including finance, retail and automotive.

Insurers can adapt to the digital transformation by making three important shifts: • From policy-centric to customer-centric. In the past, insurers stayed in the background until customers needed their services. Now, they can advise, educate and help customers reduce risk. In this way, insurers can establish customer relationships that are deep, ongoing and highly valuable for both sides. • From data capture to data analytics. Strategic aggregation and analysis of data promises to alter the insurance value chain. By using existing data from both systems of record and external sources, insurers can develop a more complete picture of their customers. • From manual to digital processes. Paper forms are making a long, slow exit, due largely to new regulations. At the same time, a growing number of insurance products, services and processes are becoming all digital. Digital insurance promises continuous value and true customer engagement. Powered by new forms of data, analytics and automation, the insurance model of the future has the ability to help customers live better lives and propel an organization’s success.

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The Digitization of Anne Meet Anne, a connected consumer who uses technology to make everyday life just a little easier. From how she shops to how she receives medical care, the digital transformation has changed the way Anne interacts with the world today. Who is Anne? She’s all of us, really!

32%

48%

of U.S. adults conduct banking transactions via mobile phone — Pew Research Center, Internet and American Life Tracking & Omnibus Surveys, 2000 – 2013

of Americans have used text or email messages, mobile apps or a website to communicate with physicians and/or view test results — U.S. Department of Health & Human Services

36%

of all auto insurance carriers are expected to use telematics by 2020

64.4%

— Strategy Meets Action Research

of the United Kingdom’s digital population who access retail-apparel sites do so on mobile devices — comScore Media Metrix Multi-Platform

23%

of U.S. employees did some work remotely [in 2014] — Bureau of Labor Statistics, American Time Use Survey, 2015

With digital workplace technology, I work remotely during the week while staying in touch with colleagues and managers.

When I’m not feeling well, I use an app to schedule an appointment with my general physician. After the visit, I review my patient record and test results electronically.

Biometric technologies such as fingerprint and face recognition let me do my banking securely via smartphone.

I shop for nearly everything online these days. Augmented reality apps let me virtually “try on” clothes from the comfort of my smartphone.

I installed a telematics device in my car to monitor my safe driving behavior and report back to my insurance company for discounts and rewards.

I use a wearable fitness device to track my daily activity levels. My company offers perks like health insurance discounts when I reach certain goals.

MAY MAY 2016 2016 || CSC CSC WORLD WORLD

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APPLICATIONS

DigITal really is

DIFFERENT

by Glyn Knaresborough

Successful companies have learned that digital disruption is more than a catalyst of unrelenting change. It is also the foundation on which they can build the new business strategies needed to move and evolve at the pace of consumers and markets. Here are the organizational changes driving their success.

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Digital transformation requirements A new approach to strategy: A key tenet of digital transformation is the understanding that digital strategy no longer plays a supporting role to business strategy. It is given first consideration, which determines other elements of the broader business plan. Without building on the basis of a digital operating model, there is no way to ensure alignment among a company’s digital initiatives. This is why so many digital transformation initiatives don’t live up to expectations or why they fail altogether. Pursuing a mobile app here or a big data program there is not establishing the core digital strategy on which to build the future business. It’s time to think of business strategies for a digital world — rather than thinking of a standalone “digital” strategy. New strengths: Operational excellence, customer intimacy or product leadership — successful companies excel in one dimension and perform well in the others. That may change as a company undergoes a digital transformation. Financial services and insurance offer good examples of this shift. While some banks and insurers were known for their service or products, most have long focused on operating as efficiently as possible. To succeed in the digital economy, companies in these industries are finding it necessary to make a shift. In banking, institutions that remain focused on operational excellence face an eroding share of the market as new competitors and faster-moving rivals roll out innovative new products and services and find ways to give customers a more personalized experience. In insurance, the rise of telematics, big data and the Internet of Things makes possible new models, such as usage-based pricing or allowing insurers to price risk more accurately and to a finer degree. Today’s most progressive businesses are leveraging digital technologies to put this type of highly contextualized information in the hands of their customers and, in many cases, even changing consumer buying habits. Digital leaders: Digital disruption is rewriting job descriptions, too, especially for the chief information officer (CIO). Leadership teams, recognizing that technology’s supporting role has changed, have also revised their thinking about digital leadership. Internal departments and employees were once seen as the CIO’s customer. Today, as they divest themselves of IT delivery, CIOs are now as focused on the external business customer as other members of the C-suite. IT delivery is becoming ever more commoditized and divested, giving CIOs the opportunity to try new things and to play a leading role in digital transformation. In companies where this shift is not recognized, many of today’s digital initiatives fall short of their potential. They remain tactical in approach and lack a cohesive strategic focus. The digital world requires a CIO with the vision to see the emerging changes and opportunities, and the leadership ability to transition and transform organizations. The visionaries and winners have seen the opportunities, addressed the challenges and adapted to the expectations of the digital customer, while those with less-flexible minds, cultures and business models

are rapidly falling away. (For more on this, see “7 Ways to Grow the Digital Leaders Your Firm Needs,” page 40.) Enterprise alignment: The commercial opportunities presented by digital transformation are immense, but even when an enterprise recognizes the potential, success is not guaranteed. To succeed, enterprise strategy, culture, people and processes must be in full alignment if the true potential of the digital transformation is to be realized. The digital world is far more transparent and ruthlessly revealing of weaknesses and flaws in strategy and execution. Old-fashioned silos, defensive thinking and lack of organizational agility are incompatible with business models based on delivering better experiences to increasingly empowered and demanding customers. Without such alignment, many initiatives will fail to achieve their potential. A new breed of technology partner: Mastering big data. Divesting IT infrastructure and transferring workloads to the cloud. Developing an ecosystem of partners. Implementing a digital-first strategy. These are just a few of the challenges to be addressed in the process of digital transformation. Each of these areas of business transformation is so completely interlinked that a new breed of agile technology partner is needed. The traditional reactive vendor relationship needs to become one of proactive partnership in which the technology partner has a complete understanding of the business and the technology challenges facing the client. Indeed, more than just understanding, the technology partner must have the ability to leverage a broad ecosystem of its own partners to facilitate the client’s digital journey: top to bottom, edge to edge, and beyond. In this new world, technology agnosticism is imperative as options and technologies proliferate and develop. Similarly, both technology and client partner must be open to the potential offered by new commercial models. The way ahead Companies planning for a future beyond the next few years need to take stock of their transformational strengths and weaknesses. Wholesale transformation will be needed to streamline operations, to develop new businesses that serve new customer needs and to shed those businesses that no longer meet the company’s objectives for growth — even businesses that were once considered core. Transformation at this scale can be a long process. It will involve many challenges. But the opportunities it offers are unprecedented. The wins enjoyed will be significant. And no enterprise needs to take on all these challenges alone — in fact, it can’t. Besides, the only alternative is to stick to business-as-usual. And if history is any guide, we all know how that story ends. GLYN KNARESBOROUGH is senior managing partner and head of United Kingdom, Ireland & Netherlands (UKI&N) Consulting for CSC.


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WORKPLACE Here are five technologies that are about to make a huge impact on work as we know it, according to Stuart Downes, CSC workplace offerings lead, and Gary Beckett, CSC global director for workplace and enterprise systems management (ESM) services.

1. Wireless connectivity You walk into a meeting room to make a presentation, and everything is wireless — truly wireless. Your laptop automatically syncs with the big-screen monitor at the front of the room and with the screenshare set up for remote audiences. Wireless chargers power up all devices in range. The WiFi network detects the number of devices and increases bandwidth to that part of the building. Sound like a dream? “This isn’t technology that’s years away,” Downes says. “It’s technology that’s here, but most enterprises tend to be a bit slower on the adoption curve of these things.”

TECHNOLOGIES THAT WILL CHANGE WORK

FOREVER by Christine Neff

Employees have already seen massive changes in their workplace. With modern tools, they can access their work on nearly any device, anytime and anywhere, making it easier than ever before to collaborate, innovate and be productive. But that is only the beginning.

The advent of ubiquitous connectivity opens up huge opportunities for the workplace in the form of Internet of Things and collaborative digital tools — and upcoming 5G cellular technology will only magnify that trend. For instance, Beckett predicts that live-streaming of video will become “matter-offact,” making it easier for colleagues and partners at remote locations to collaborate. “Those things start to open up and expand people’s ability to innovate,” he says.

5G mobile subscriptions to hit 150 million by 2021 — Ericsson Mobility Report, Mobile World Congress Edition, February 2016

2. Smart machines As systems gain the intelligence to perform tasks and make decisions that formerly required human input, employees — even highly educated knowledge workers — will be affected. In fact, a widely cited Oxford University study predicts that 17 percent of American knowledge workers will lose their jobs to machines. Already, artificial intelligence has crept into the service sector to “staff” help desks for workplace IT departments and consumer applications. The technology may expand in the near future to respond to proposals, write legal documents and reports, act as a personal assistant, perform supervisory roles, make staffing decisions and do any number of tasks that currently require a living, breathing, knowledge-based employee. “The smart machine will be very disruptive in the next 5-plus years,” Downes predicts.

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3. VR/AR With Facebook’s Mark Zuckerberg now fully invested in virtual reality (VR), and major tech and media companies joining the craze every day, the technology seems to be on the cusp of finally becoming a, well, reality. Some industries have embraced the potential as early adopters. For instance, the International Space Station now has augmented reality (AR) headsets that enable expert remote support to work more efficiently with astronauts to rehearse for procedures in space. Manufacturers, surgeons and others have used VR (tools such as Oculus Rift and Google Cardboard) or AR (such as Microsoft’s HoloLens) to better visualize and complete complex tasks.

More than 24 million VR/AR devices will be sold in 2018 — CCS Insight’s Augmented and Virtual Reality Device Forecast, 2015 – 2019 “Today, I don’t see it as a general work habit, but I do see it becoming a requirement for specific use cases with reality rooms appearing in more facilities,” Downes says. While it’s not a stretch to imagine using a VR headset to brainstorm with remote colleagues in a virtual office space, Downes doesn’t see this becoming mainstream in the near future. “For the next 2 to 3 years, AR and VR will be limited, with the consumer market driving enterprise adoption,” he says.

4. Wearables One of the hottest segments in consumer tech, wearables — gadgets that measure the user’s physical activity, such as the Apple Watch and Fitbit — are starting to make their way to the workplace, and the trend is expected to grow. Employers can find big value in encouraging employees to use wearables to maintain healthy levels of activity throughout the day. “The whole focus is on: ‘How do we prevent people from entering chronic or acute care systems?’ Companies can distribute sensors and get people to sign up and report back on their activity,” Beckett says.

Use of wearables in the enterprise is expected to triple by 2017 — Salesforce report, Putting Wearables to Work: Insights on Wearable Technology in Business Wearables can also lead to the reimagining of the physical work space. As sensors track how employees move and congregate throughout the day, the office space can be designed to meet their different needs. Rather than a traditional desk setup, for instance, the office can support different styles of work, such as social, research-driven and concentrated tasks, Downes says.

5. Data analytics Big data provides new opportunities and challenges for enterprises, and the technology is about to take another leap forward. Enterprises can now access reams of data about systems, processes and performance that can be analyzed to create more productive workplaces and tools. “We’re seeing a point where data is more accessible, and data scientists are beginning to drive real value from new analytics techniques,” Downes says. Data can be used to design more functional spaces, understand the characteristics of high-performing individuals and teams, make better-informed hires and more, all with the goal of establishing a “highly intelligent workplace experience,” Downes says. At an individual level, employees have become “data managers” of their personal data at work. This task requires a set of user-friendly tools to keep track of HR and benefits records, training logs, contact information, evaluations and more. Companies not up to par may find themselves losing talent to competitors, warns Beckett. “In 5 years, the digital workplace strategy in major corporations will be the realm of HR. As the battle for talent becomes ever more difficult, the differentiator will be not just in the kind of work, but also in the strategy deployed by the business,” he says. CHRISTINE NEFF is a content editor with CSC’s global content team.

Making Work, Work CSC offerings and services are designed to deliver a modern workplace experience for current and future generations of business workers. CSC MyWorkStyle provides a framework for supporting the growing variety of cloud-based applications and services. We enable existing applications to operate with an expanding universe of devices that includes tablets and smartphones. CSC MyWorkStyle provides a common platform for access and authentication, allowing users to operate onsite and at remote locations in an equal fashion. CSC MyWorkStyle is designed to take advantage of continual improvements and enhancements with few or no service interruptions. As additional capabilities and functions emerge in the industry, the updates are made readily available to employees.


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SECURITY

THE NEW

FACE OF BIOMETRICS by Christine Neff

Let’s say you’re traveling far from home, ready to check out of a hotel when you realize you’ve lost your wallet. How can you quickly pay your expenses and get on to your next destination? Or, while out for lunch, you get a message from your insurance company about a change to your plan that you didn’t initiate. How can you quickly stop and report the fraud? Or worse yet, you come across the perfect shirt at a great price online and add it to your virtual cart — but you don’t have your credit card with you. The shirt lingers in cyberspace limbo. The solution to these dilemmas may be coming soon to a mobile device near you: biometrics software that reads your face, voice, fingerprints, eye prints and other unique traits to identify who you are. Many have been thinking of biometrics only in terms of robust user authentication — replacing passwords for access to devices, for example. But the future of biometrics lies in improving the user experience and spans the industries of banking, financial services, insurance, healthcare, retail and beyond.

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CSC has been developing and deploying biometrics technology since 2002. “Companies need a product that creates an excellent user experience and allows customers access from multiple devices,” says Todd Hawkins, global director for CSC’s ConfidentID practice. Biometric technology can contribute to connected device management, app protection, and cloud and data security. Companies are starting to grasp the possibilities. Creative applications CSC has been developing and deploying biometrics technology since 2002. Grown in the CSC Identity Labs, CSC’s biometrics first supported wartime efforts to identify terrorists. Now, with software partners, its ConfidentID biometrics solution has gone commercial. Recently, CSC managed multiple pilot programs that used facial recognition to authenticate purchases for a large credit card processing company. (Those items in your online shopping cart? Briefly stare at the phone and blink — and they’re yours!) Currently, CSC is working with Atom Bank, a first-of-its-kind, mobile-only bank in the United Kingdom that relies on biometric technology. Atom Bank uses ConfidentID to balance user experience with security. The bank’s game-like app employs a variety of authentication methods — standard pass codes, facial and voice recognition, fingerprints — to verify customers at different steps of the banking process. More significant tasks, such as transferring money, require more secure levels of authentication. “If you’re developing any kind of app today — for the millennials, for the digital world — users don’t have time to wait. Everything has to be immediate,” says Atom Bank’s chief operating officer, Stewart Bromley. The completely self-service banking model means everything from joining the bank to opening an account to depositing large amounts of money can be done on the phone without any human interaction. And, with ConfidentID, it can be done quickly and safely. “You can join the bank, go through the security ID process and set up an account in 5 to 6 minutes,” Bromley says. All coming together The speed with which today’s biometrics can verify identity is one of the reasons companies are turning to the technology more frequently. Facial recognition software, which often requires a blink to prove you’re a live person and not just a picture, captures the necessary information nearly instantaneously — faster than you can pose. Even multiple authentication methods are completed in a matter of seconds. Accuracy is another perk, as it is now possible to get multiple biometric readings via a single device. ConfidentID acts as a “gatekeeper,” producing a score based on the type of biometrics technology and the data it receives, Hawkins explains. “We send that score back to the business server of our customers, and they can make a decision at that point to ask for more technology or go ahead with the transaction.”

That flexibility will be important as biometrics expands to areas such as the Internet of Things. “Connected homes, wearables, refrigerators, cars — all of these particular transactions will need some form of authentication, and that’s what we’re starting to build toward,” Hawkins says. Like CSC, Atom Bank envisions a future that employs new types of authentication to improve user experience: voice recognition tied to voice control of devices; behavior authentication; even brain wave recognition that can lead to “telepathic” commands. “We see the mobile device itself as having a relatively limited life span of no more than 10 years,” says Bromley. “Ultimately, our vision is to become the first telepathic bank.” Telepathic transactions? Now that would make it easy to buy those items in your online cart. CHRISTINE NEFF is a content editor with CSC’s global content team. Learn more at csc.com/cyber.

Up and Atom Atom Bank provides a glimpse into the future of banking. Expected to launch in spring 2016, the UK bank runs entirely by mobile app. There’s not a single physical branch or even a desktop website where customers can perform transactions. It’s a completely self-service model that requires human interaction only if a user gets stuck on a technology or banking issue. “Atom is one of the first of its kind around the world,” says Stewart Bromley, chief operating officer. “We are a mobileonly bank, and we are a full bank offering full services for consumers, small- and medium-sized businesses.” The app, which uses a gaming platform and 3D rendering system with graphics and animations, is secured by ConfidentID biometrics authentication. Customers use tools such as facial and voice recognition to get into the app and perform various functions, from setting up an account to transferring funds. The app is personalized for each user — from the colors on the screen to the logo. “Every single customer has a different Atom brand. This bank in your pocket is completely tailored to you. The whole experience is completely unique to you,” Bromley says. While this model of banking is cutting edge for today, Atom Bank continues to look ahead for tomorrow’s disruptors. On the horizon, says Bromley, are behavior authentication (how you hold a phone and tap the buttons), voice controls, and iris and brainwave recognition. ConfidentID makes it easy to add new authentication methods as they become available.


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SECURITY

ARE SECURITY BACKDOORS

A NECESSARY EVIL? by Eric Pinkerton

As we hear about governments conducting mass online surveillance in the interest of security, more consumers have looked to stronger, on-by-default encryption. Security agencies across the globe, alarmed by this trend, have been quietly lobbying governments to effectively ban unbreakable encryption. A very public discussion about the merits and ethics of government-mandated backdoors in cryptography surfaced again early this year with the high-profile standoff between Apple and the U.S. Federal Bureau of Investigation (FBI). The Apple/FBI argument involved the contents of an iPhone used by a deceased terrorist. The FBI’s case seemed simple enough: If the phone was thought to contain details related to the attack, including information regarding the couple’s motivation, or communication with unknown accomplices, then wasn’t it reasonable for Apple to make that information available to investigators?

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The FBI asked Apple, via a court order, to provide a signed software file that could disable password protection features. The FBI specified that the code could have a unique identifier, so the feature would load and execute only on the subject device, allaying fears that the code would be misused by the FBI, or find its way into the hands of criminals. Apple refused to comply with the court order. The company argued that in the wrong hands, the software could be used over and over again to unlock any iPhone. “In the physical world, it would be the equivalent of a master key, capable of opening hundreds of millions of locks,” Apple wrote. Apple and others believe that it’s simply not possible to architect a secure system with a backdoor. They maintain that it’s either a secure system or it’s not. Broken locks A backdoor is a means of access that bypasses security mechanisms. One well-known example in the physical world is the Transportation Security Administration (TSA)-approved Travel Sentry lock that hit the market in the aftermath of 9/11. The lock promised to secure contents of luggage, while still allowing inspection by a trusted party (the TSA) if the need arose. In this case, the backdoor came in the shape of two locking mechanisms, one for the owner and one using a set of master keys that could be carried by TSA agents. The Travel Sentry locks did not fare well. They spawned many reports of luggage reaching its destination somewhat lighter, thanks to unscrupulous TSA agents, or with cases badly damaged by agents who used force instead of keys to look inside. To add insult to injury, The Washington Post in 2014 published a photo of the keys online, which was good enough for security researchers to use 3D printers to re-create the keys. The example illustrates how flawed the concept of backdoors really can be, and the inevitability of key material falling into the wrong hands. A 2015 report (Keys Under Doormats: Mandating Insecurity by Requiring Government Access to All Data and Communications) by a group of preeminent security experts pointed to three issues with the backdoor approach: 1. It forces a U-turn from current security best practices. 2. It increases system complexity, known to be the enemy of security. 3. It creates concentrated targets for bad actors to attack. “The costs would be substantial, the damage to innovation severe, and the consequences to economic growth difficult to predict,” the report concluded.

10% 9%

of Americans have taken extra measures to encrypt their phone calls, text messages or email, and

have used a service that allows anonymous Web browsing, according to a 2015 Pew Research Center survey.

So what’s the answer? For privacy advocates, the holy grail in security is what is increasingly referred to as “zero knowledge.” This is a system designed with strong encryption and clever key management so that even the creator has no knowledge of or visibility into the data it contains. A provider who has taken this approach effectively has an irrefutable claim: It’s simply not possible to pass on customer information to requesting agencies. Some think the FBI selected the iPhone case to force Apple to take a public stand on the issue of backdoors before the company had the chance to perfect its zero-knowledge solution. That argument appears to be moot for now, as a third party has helped the FBI access the iPhone in dispute. Although this particular case will, seemingly, be put to rest, the question of providing backdoors in security systems is likely to continue inspiring intense public debate. ERIC PINKERTON is a principal security consultant at CSC.

Another Backdoor You May Remember A decade prior to the TSA lock debacle was the Clipper chip, a short-lived key escrow system designed mainly with mobile phones in mind and based on secret cryptography developed by the National Security Agency. The purpose of the Clipper chip was to allow data to be encrypted between A and B, while still allowing inspection by a trusted party should the need arise. The Clipper chip had some teething problems. It was technically flawed, with numerous security vulnerabilities. American companies ended up paying more to manufacture phones that no one wanted to use. And the U.S. government did not have jurisdiction outside the United States, so while it could insist that U.S. manufacturing companies include the chips in their products, it could not do the same for overseas companies. Announced in 1993, it was dead in the water by 1996.


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CLOUD

by Dale Coyner

AVOIDING VENDOR LOCK-IN WITH AGILE CLOUD Stack virtualization and cloud portability reduce costs and vendor dependence

Like many global companies, Zurich Insurance Group Ltd.’s IT environment contains a large application portfolio running on a range of mainframe, x86 and other systems. Over the past few years, technologies such as private and public clouds have begun to reshape the insurance giant’s IT estate — and the way CSC delivers IT services to its client of more than a decade. Chris Rogers, head of service delivery and integration at Zurich, says the company has changed how it looks at new systems to avoid the potential costs of proprietary solutions. “Price is important, of course, as well as scalability and automation. But more than that, workload flexibility is very important to me,” Rogers says. “We’re very cautious about things that are heavily

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black boxed or proprietarily integrated. You could get as locked into a cloud solution as much as a traditional system if you don’t think about that carefully. I want to know if I can realistically start moving in a different direction if I want to.” Lindi Horton, cloud strategist at CSC, says technology decisions like these have always carried a certain level of risk. “Historically speaking, when choosing a technology vendor, you might get locked into a particular pricing contract because, at the end of the original term, the system is so complex you can’t move off of it fast enough. Or you lose the ability to add new tools or be adaptable to change. That means your systems would stagnate, and you’d begin to fall behind in the market,” she says.

Broker-centric approach More recently, companies have brought those same concerns about overly complex contracts and proprietary systems to cloud decisions. This has led organizations to evaluate providers with new criteria, such as shorter contract duration and vendor contestability. This broker-centric approach allows large companies such as Zurich to concurrently consume infrastructure resources from multiple suppliers. Horton says that’s an especially important consideration in information-rich industries such as insurance. “Insurance verticals develop a lot of their differentiation by being able to address market needs with new applications and services. Differentiation is not in the infrastructure itself. What we’re trying to do in cloud is support their ability to rapidly innovate and go to market with new products by making infrastructure easy and adaptable,” she says. Another reason for developing a new approach is the rapid evolution of technology. “Even if we tried to predict what’s going to happen in cloud over the next 5 years, we’d be radically wrong because a new technology will come into the market,” Horton says. At Zurich, CSC abstracted as much of the underlying hardware as possible with CSC Agility PlatformTM for cloud workload orchestration. The infrastructure runs on the hyperconverged CSC BizCloudTM HC private cloud in a software-defined data center (SDDC) environment — selected for its attractive price point and utility-based characteristics. CSC Agility Platform, which had previously been implemented for an earlier CSC cloud product, was connected to Zurich’s new private cloud in an afternoon, and in a couple of hours began handling loads on the new platform.

Zurich Insurance Group Ltd., a worldwide multiline insurer with 55,000 employees, serves a broad base of policyholders in more than 170 countries, and it has the IT infrastructure to match. According to CSC’s Dan Himmerich, insurance industry strategist and Zurich account general manager, “That abstraction gives us the ability to change cloud providers — even if it’s us — with relative ease.”

Proponents of proprietary solutions argue that they have more integration points and seamlessness across a consolidated stack, from the infrastructure layer of a private cloud to application services. In addition, they offer wraparound for service management, monitoring, backup and antivirus.

“You could get as locked into a cloud solution as much as a traditional system if you don’t think about that carefully.” – Chris Rogers, head of service delivery and integration, Zurich Insurance Group Ltd. However, Horton notes, when the application requirements change, it can be difficult for an organization to take advantage of new features. For example, Amazon Web Services introduces 500 new services per quarter. An orchestration platform such as CSC Agility Platform can integrate these services as seamlessly as if they were part of a vendor’s proprietary solution. Workload portability Zurich uses CSC Agility Platform’s application blueprinting feature to enable workloads to move between public, private and hybrid clouds without modifying the applications. “If you want to avoid lock-in in the future, having that abstraction in these application blueprints is important,” Rogers says. That portability helps accelerate the adoption of new business services. “Everybody is looking for this broad networking of business services and the underlying applications and infrastructure that make it possible,” Himmerich says. From the client’s point of view, it’s an approach that works. Rogers says that Zurich is now seeing a dramatic improvement in provisioning time for resources that are integrated into the technical and access management environment. But the biggest benefit is the flexibility Zurich now has to handle a wide range of workloads in an automated, standardized and secure way. Today, the organization has a 48-hour turnaround for provisioning new cloud workloads, and that will become even faster when selfservice provisioning rolls out. “I like to see the right workload in the right place at the right price,” Rogers says. “And that’s what Agility Platform delivers.” DALE COYNER is a writer with CSC’s global content team.


23

BANKING

by Hayley Carter

For banks to survive in today’s digital world, they need to understand and embrace the omnichannel model

All banks are multichannel. Even for so-called “online only” offerings, banks still have phone numbers for customers to call in times of need. Yet, the trouble with most banks — especially longstanding enterprises with legacy IT platforms and back-office processes — is that customer experiences often don’t translate across all channels. For instance, a customer who starts an action on a website may not be able to finish it at a brick-and-mortar branch. Or, the information input by a customer via a website may not be available to the customer service representative on the other end of the phone line.

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While a bank may provide multiple channels for customer service, banking customers today expect an omnichannel experience. “Omni” means “all” — and it is not a true omnichannel experience unless customers see a connection across all touchpoints. Research by the Aberdeen Group shows that firms with a well-defined omnichannel customer experience management (CEM) program achieve a 91 percent higher year-over-year increase in customer retention rate on average, compared to organizations without omnichannel programs. And, in 2014, the Financial Services Club reported that 73 percent of people would consider a financial services offering from Google, Apple, Amazon or PayPal over one from their own bank. Arguably, part of the appeal is those companies’ known ability to use an omnichannel approach at all the right places and for all the right processes. The question now is: How do banks begin to meet this challenge — to go from being multichannel, which was all the rage 5 years ago, to omnichannel? How can banks create a seamless experience for customers across whatever channel the customers want to use at any given time? Loose threads I recently had my own frustrating experience with an enterprise that fell behind on the omnichannel curve. I decided to open a regular individual savings account online with a bank where I had not previously been a customer. The online application process was short and straightforward, and I was ultimately pleased with my experience. Three weeks later, however, my account was still not open, and I had a bit of free time to look into some alternatives. I changed my mind about the account. Since my application appeared to be lost in the ether, calling the company seemed like the obvious way to cancel my application. But the company could not do a sufficient security check on me over the phone since I did not have an existing account. The customer service representative couldn’t even view an application that had been submitted online. I was told that the only way I could stop the application for a product I no longer wanted was to go to a branch and do it there. Not convinced that this was the case, I tweeted my dissatisfaction to the company’s Twitter account. After a brief direct-message exchange, the social media contact was able to cancel my account in less than 5 minutes. While it would have been useful for the bank to have had a perfect omnichannel setup, in reality, it wasn’t strictly necessary. “Omnichannel” may be the phrase of the moment, but the need is more about understanding how customer journeys are likely to cross multiple touchpoints. Which journeys can be completed in a single channel? Which require different channels? How do those channels overlap?

Where omnichannel matters Product opening is a great example of a process that demands an omnichannel experience. Take my first mortgage application as an example. I started by browsing on my tablet at home, playing with online tools and calculators to understand roughly how much I could borrow. Then I called the bank to glean some advice and book an appointment to speak to someone in a branch. Next stop was the branch itself, where I spoke to an advisor who basically sorted everything out. At each touchpoint, I had to start the process from scratch. I had to provide my personal information and details about how much I wanted to borrow and the type of property I was interested in buying at every step. In a Harvard Business Review study published more than 5 years ago, 56 percent of customers cited “having to re-explain an issue” as one of the biggest obstacles in customer service, and it still appears to be a prevalent concern. Have we really made so little progress in half a decade? All sewn up In my case, I know the bank was tracking data on what I did online, but the disconnect between the channels prevented a seamless customer experience. More than a few financial services organizations still have projects siloed in individual channels, making them unable to consider the bigger picture. But the technology exists to stitch together this customer experience. Analytics enables a bank’s online sales team to understand how a user engages with a website and at which part in the process a user drops out of an application. Often, this data is not being used effectively to aid customers and to help pick up these customers in other channels. Surely it would be better for everyone if the staff at the bank branch I visited could have seen what I was doing online before I arrived. All banks capture and track customer satisfaction, net promoter score (NPS) or something similar as a way to assess how happy customers are with a channel, generally using surveys to ask for a rating from 1 to 10. However, equating customer satisfaction purely to a number doesn’t provide the necessary depth of understanding to strategize properly. Banks still need to understand things such as customer effort across the entire process. They need to look at customer touchpoints and understand how the experience can affect loyalty and, ultimately, value to the organization. It’s the first step on the roadmap toward an omnichannel strategy. HAYLEY CARTER is a senior consultant for digital and customer experience in banking and capital markets at CSC.


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INSURANCE

THE DUAL AGENDA OF THE WORLD’S LARGEST INSURERS Global Systemically Important Insurers Put Digital First While Revamping Infrastructure by Phil Ratcliff

Many established insurers today are transforming themselves into cutting-edge digital enterprises, a feat that is particularly challenging with large, traditional IT infrastructure. But some of the largest insurers are making the transition successfully, and many in the industry can learn from what they are doing. The Global Systemically Important Insurers (G-SIIs) are increasingly becoming more innovative, employing startup techniques to bring digital technologies to their consumers and expanding their partner ecosystems, while simultaneously pivoting infrastructure to the cloud and reassessing non-strategic functions. The G-SIIs are nine companies considered by the international Financial Stability Board to have an influence on the stability of the global financial system (see sidebar). While these companies are not unique in the difficulties they face, they do serve as examples for the industry. They are often the first to confront technology challenges and offer a model for solutions.

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Two paths Many G-SIIs align on what Aegon CEO Alex Wynaendts has described as a need to connect with customers while reducing expenses. “In simple principle, at the heart of our strategy is that every customer should be able to decide how he or she wishes to interact with us, be it digitally, by phone or face-to-face,” said Wynaendts in a January 2016 address to analysts and investors. “It is our customers that choose, not us. And in terms of digital, utilizing the very latest technology both supports the customers’ experience and simplifies our business.” Aegon’s strategic priorities are typical of the G-SIIs’ “dual agenda” to meet changing consumer demand for innovative digital service capabilities while renovating the existing technology infrastructure.

In 2015, CB Insights reported a

What Are the G-SIIs?

in startup investment by insurers, bringing total investment in technology companies to

The list of Global Systemically Important Insurers was established in 2013 by the Financial Stability Board. This international board, founded by G-20 countries, works to promote international financial stability by developing policy measures that apply to the G-SIIs. The annually updated list is the insurance counterpart of Systemically Important Banks, which are critical to the global financial system. Currently, five G-SIIs are headquartered in Europe, three in the United States and one in China.

460% increase $1.78 billion since 2010

The company’s customer-related goals include offering products throughout the customer lifecycle, providing omnichannel access, expanding customer education, and engaging directly and digitally with customers. At the same time, Aegon is looking to simplify the business through digitization and self-service tools. Digital innovation Digitization is a common objective for G-SIIs. Some are working to be “digital-first” companies that interact with customers primarily through digital channels. AXA, for instance, partnered with Facebook in 2014 to boost the insurer’s digital, social and mobile footprints. G-SIIs are also working hard to increase their innovation. They are creating innovation “sandboxes,” or small laboratories for digital experimentation. They are expanding leadership to include a chief digital officer. Many have opened innovation labs in technology hotspots, such as California’s Silicon Valley and London’s Silicon Roundabout, to encourage big ideas. G-SIIs have also been investing in startups to find solutions that would be difficult to build internally. Insurers such as Allianz have founded venture capital subsidiaries and other entities to foster startup activities. In 2015, CB Insights reported a 460 percent increase in this type of investment by insurers, bringing total investment in technology companies to $1.78 billion since 2010. Cloud bound In the move to digital, insurers must grapple with existing technology infrastructure. While some digital advances can be grafted onto existing technology stacks, an essentially digital environment often requires the replacement of previous-generation technology.

CSC and the G-SIIs CSC has provided software and services to eight of the nine current G-SIIs. Services include: • Consulting services • Installed applications • Application testing • Cloud services • Business process services • IT services • Data conversion

• • • • • • • • •

Aegon N.V. Allianz SE American International Group Inc. Aviva AXA MetLife Inc.* Ping An Insurance Company of China Ltd. Prudential Financial Inc. Prudential

* MetLife recently won a U.S. federal court ruling to shed its status as a systemically important financial institution (SIFI) as designated by the domestic Financial Stability Oversight Council (FSOC). However, that ruling has no bearing on the G-SII status conferred upon the insurer by the FSB.

Moving to the cloud is a primary step in the digital evolution. Though some insurers have been reluctant to take advantage of cloud efficiencies, largely due to concerns about compliance and securing private client information, G-SIIs are increasingly confident in cloud capabilities. Prudential Financial began shifting IT to a cloud environment as early as 2011, and Aviva has put cloud infrastructure at the heart of its digital-first business strategy. Core competency Another step in the evolution for G-SIIs is a focus on core competency and divestiture of the non-strategic. As G-SIIs contemplate how to allocate capital, they increasingly focus on sales, underwriting, marketing, new business and the placement of risk. In the case of back-office and other non-core activities, they are moving to a more connected ecosystem, selecting best-of-breed partners and orchestrating services in support of business activities. The insurance industry — and those who support it — can learn much from watching the behavior of a select few. The G-SIIs shine a light on ongoing challenges and technology solutions that drive future success. PHIL RATCLIFF is global industry general manager for insurance at CSC.

Learn more at csc.com/insurance.


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HEALTHCARE

IMPROVING

CARE

FOR DIABETES PATIENTS

A team at George Eliot Hospital in England finds success in Lorenzo adaptation by Dr. David Lee

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Serving a population of 300,000, George Eliot Hospital National Health Service (NHS) Trust in Warwickshire, England, uses CSC’s Lorenzo Electronic Patient Record (EPR) to improve and transform the way services are delivered to patients. Recently, the hospital developed an EPR solution that optimizes care for an important group: diabetes patients. People with diabetes often receive care from several departments, physicians or specialists. Ideally, information from all visits is kept in one place to support longterm healthcare needs, but this doesn’t always happen. A pilot program at George Eliot set out to achieve this.

Collecting and storing patient data The diabetes team developed an electronic system to collect the same patient data wherever the patient was seen — be it the emergency department, outpatient clinic or in a ward. The new system, called Lorenzo-Diabetes, is user friendly and supports the creation of a patient-centered record that can be shared effectively, whether with the patient’s general practitioner (GP), podiatrist, nurse or other specialists. The solution makes use of Lorenzo EPR. Consultants now collect standard patient information, such as blood pressure, eye health and prescription drug use, putting data directly into LorenzoDiabetes. Nurses who see patients in the outpatient clinic have instant access to this information. Health professionals who need to follow up with patients can also see the record. Once captured, data can be added to standard letters for GPs and patients, using Lorenzo’s Clinical Documentation capability. Patients can go home with their clinic letters on the same day, and GPs’ letters are ready by the end of the clinic. GPs and patients can follow up on clinic recommendations without delay, and patients now have electronic documents that set out their “year-of-care” plans.

It’s All About Transformation The work at George Eliot Hospital to improve diabetes care illustrates an important point about e-health optimization: For healthcare providers responding to shifting demographics, advances in medicine and changing patient expectations, incremental change isn’t enough. It’s all about transformation. Successful IT-enabled transformation in healthcare organizations requires a clear purpose expressed as an achievable outcome, and a focus on change rather than on technology. Ultimately, that purpose is going to be linked to clinical outcomes and operational efficiency, and it needs to be expressed in terms that resonate with patients, clinicians and hospital staff. As an example, a clear purpose might be improving the experience of care for a patient with a medium-severity respiratory condition, who may require up to 90 interactions with healthcare providers over a year. As part of their digital journey, healthcare organizations need to think about optimization in at least three areas: • Making rich clinical and contextual data available at the point of care, wherever and whenever that may be • Coordinating clinical care pathways across multiple care providers inside and outside of the immediate organization • Improving the efficiency of routine operational processes everywhere across the organization and beyond And they need to keep asking the question, “What’s in it for the patient?”


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The system helps in other ways, too. A real-time audit gives clinicians insight into why patients are attending clinics and makes sure patients’ needs are met. Patients who are willing to take part in research can now be easily identified, which has increased participation in clinical trials. Engaging patients in their care Dr. Vinod Patel, consultant in diabetes, says, “Patients feel more engaged [because] they can see information is captured about them electronically and will be shared with their GPs and used in future consultations or wider treatment. They also value that this information is available to them at the end of their consultation.” Health professionals and patients aren’t the only ones benefiting. Medical secretaries no longer have to type up handwritten notes. Within the first week of implementation, the secretaries’ workload was cut by 50 percent. The department is now “paper lite,” with GP letters and patient letters no longer produced on paper.

As Dr. Patel says, “The key to our success in achieving benefits from our EPR for this patient group was the multidisciplinary engagement, including medical secretaries and outpatient healthcare assistants, along with the nurses and doctors. This ensured a ‘bottom-up’ approach as well as buy-in from all the stakeholders.” Dr. Ponnusamy Saravanan, associate clinical professor and honorary consultant physician in diabetes, endocrinology and metabolism, sees the systems as a case study other hospitals can adopt. “We are keen to share the learning. Trusts that already have Lorenzo or trusts that are in the process of implementing Lorenzo or thinking of deploying it are very welcome to visit us and view the pilot firsthand,” he says. With the success of the diabetes care solution, CSC’s approach of working with care teams to develop technology solutions has potential for a large range of clinical scenarios. DR. DAVID LEE is medical director at CSC.

Client: George Eliot Hospital NHS Trust Challenge:

Solution:

Results:

• Improve and transform the way diabetes patient care is delivered by using an EPR

• Clinical directorates competed to develop a project using the trust’s Lorenzo EPR

• The diabetes outpatient service is now more streamlined, and clinical decisions can be made more quickly

• Drive focused clinical change in specific areas through use of an EPR

• Diabetes outpatient department developed the Lorenzo-Diabetes solution to improve routine clinical care by capturing structured clinical data in a single record

• Patients now have individualized, integrated electronic “year-of-care” plans that can be shared with all health professionals who care for them

• Reduce reliance on paper and primarily manual processes

Learn more about Lorenzo at csc.com/lorenzo.

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• The department is working “paper lite”; the workload for secretaries was reduced by 50 percent in the first week of implementation

Benefits of

Agile Health The healthcare landscape is quickly evolving into a coordinated, patient-centric ecosystem underpinned by agile and effective IT. By creating agile IT environments, healthcare organizations can succeed in five important areas: Flexibility Agile IT infrastructures give healthcare organizations the flexibility to allocate new resources and applications while also replacing older, obsolete IT assets.

Healthcare CIOs can further help the organization gain flexibility by assessing and streamlining IT assets through application rationalization and modernization. Having an applications portfolio that is properly sized and suited to the business helps CIOs improve operational efficiency, lower their costs, and free up funds for investments in innovation.

Interoperability One of the biggest challenges now facing healthcare organizations is how to share medical data safely and effectively. By creating agile health environments, companies can improve both interoperability and collaboration across their internal operations. They can also better engage with the broader healthcare ecosystem. Adopting open data approaches and cloud-based IT services can help. These give organizations platforms for secure collaboration and data sharing. They also allow flexible collaboration both within the enterprise and externally, with organizations such as other healthcare providers, ambulatory care and physicians’ offices.

Talent optimization As healthcare CIOs install new technologies, they also need to update the skills of their employees. Many internal staff members do not have the skills and training to run today’s newest systems and processes. Smart CIOs will adopt new operational models that make the best use of their talent while leveraging trusted service providers to manage their legacy applications and other tactical activities. In this way, CIOs can reposition their skilled IT teams to focus on delivering clinical value and enabling strategic business change.

Security and compliance Securing electronic health records (EHRs) and other medical applications is a critical challenge. Healthcare information is a tempting target for cyberthieves, and healthcare organizations must comply with government and industry regulations on privacy and security. Today, few IT departments have the scale to manage security comprehensively. They still need to understand how much information can be shared, when to de-identify data, and how to ensure the security of any data that moves outside their organization. Turning to an experienced partner can help. And a trusted hybrid cloud can protect against attacks with multiple defenses that are often more stringent than what a healthcare organization will have on its own.

Value from investments Healthcare organizations have spent large sums on EHRs, yet many of these systems remain ineffective. Shortcomings include poor usability, time-consuming data entry, interference with face-to-face patient care, and the inability to exchange health information. With an agile health platform, healthcare CIOs can optimize their EHR solutions. They can connect clinicians with IT specialists to identify appropriate products. And after a product has been purchased, CIOs can adopt key performance indicators (KPIs) for continual improvement.


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LIFE SCIENCES

by Sven Jansen

Pharmaceutical companies are expanding beyond their traditional role as suppliers and getting directly involved as partners in healthcare — a move that brings important benefits to patients while reshaping the healthcare ecosystem.

LIFE SCIENCES COMPANIES

CONVERGE ON HEALTHCARE

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Take the example of a large pharma company that decides to establish an integrated health business focused on holistic disease management. To start, the company selects a specific therapeutic area: pain. It’s often a complex area to treat. Practitioners don’t always have a clear view of what triggers the pain, and they have limited time to investigate possible causes.

The company has a specific approach to pain management; namely, the one its product supports. But it wants to understand more about the pain patients experience and how to improve patient compliance. So, the pharma company builds a disease management program driven by a mobile application. Better care through data Participating physicians are provided with the application and a mobile device. When patients come to the practice complaining of pain, they use the mobile device to fill out a questionnaire. Questions focus on what kind of pain the patient experiences, how strong the pain is, when they experience it and so on. The data gives the doctor information that helps him or her make a clearer medical deduction and prescribe a suitable drug. At the same time, data (stripped of identifying information) is uploaded to the pharma company’s database with details such as patient symptoms and the drug prescribed. The database allows the company to assess how its drug works and whether it is the preferred choice in its drug class. From the data, the pharma company can also provide insights to the patient about the condition he or she suffers from, its causes and how to address it. The company can go a step further and establish a call center from which patients receive feedback and reminders. Family members can also access the call center to help loved ones manage their conditions. The critical element of engagement becomes a key element for helping patients manage their pain and for improving outcomes.

Converging around the patient At the heart of the convergence trend described here are the patient and a patient-centric view of care. True patient centricity requires the breakdown of silos and a focus on what’s optimal for the patient as he or she moves through the system. And this is made possible with technology. The importance of data and analytics in this new interconnected healthcare ecosystem cannot be overstated. And real-world, evidence-based data will become even more critical in enabling population health management on the healthcare side and the formulation of unique products on the life sciences side. Added to this are health information exchanges that enable data to flow from the hospital to primary care, to the rehab facility or even to pharma companies. In addition to technology, the requirements for this model include processes that bring together those disparate sources of information — hospitals, primary care practices, payers and drug manufacturers — to understand and provide what’s best for the patient. Hospitals can’t sit in the driver’s seat anymore, and neither can primary care practitioners, nor indeed any single stakeholder. Optimal results require care teams made up of multiple stakeholders, including the patient. These teams have different names and goals in different places, but driving this worldwide phenomenon is the united desire to better manage the patient on the healthcare pathway.

SVEN JANSEN is CSC’s general manager for the healthcare and life sciences industry in Central and Eastern Europe.

Blurred Lines While pharma companies converge in healthcare, healthcare systems are undergoing their own convergence. Traditionally, healthcare systems have been separated into three types: • Beveridge systems, or national healthcare, such as the structure in the United Kingdom • Bismarck systems, or social health insurance schemes, such as those found in Germany and Austria • Privately funded systems, of which the best-known example is in the United States Each of these has different financing models, regulations and variations in how care is delivered. But market forces are blurring the lines between these different ways of doing business. As times and needs change, once drastically different healthcare models are adapting — and they’re beginning to look more and more alike.

For example, the U.S. system, which was traditionally wholly privately financed, has been altered in a major way by the Patient Protection and Affordable Care Act, known colloquially as Obamacare. The law arose from a growing desire for government intervention in the private healthcare system to stem rising costs and limited access. At the other end of the spectrum, the United Kingdom’s National Health Service has been looking at third parties to bolster the delivery of care, and it’s seeking support with technology, as well as managing processes for important developments, such as coordinated care. In Germany, both trends are growing: The hospital sector is increasingly turning to private hospitals, which can provide higher-quality care, while the state is also gaining influence in the direction of care delivery in different counties within Germany.


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MANUFACTURING

PUTTING I T WITHIN REACH Open source and shared platform bring IoT benefits to more companies by Lucy Nolan

An unprecedented amount of data — “actionable data” that can be processed quickly to make operational decisions — is coming in daily through connected machines. But until now, many manufacturers have been reluctant to make major investments in Internet of Things (IoT) systems and realize the full potential of this data. The IoT consists of the machines, devices and other physical objects connected to a network. Sensors attached to all of those items can provide a steady stream of data to a central IoT platform. With custom dashboards, each department in a manufacturing organization could work with the data in the way it sees fit. Even the IoT platform itself could act on the data. “IoT systems are intelligent enough to tune management solutions automatically,” says Chris Fangmann, chief technology officer for global manufacturing at CSC. “Now let’s add a capability to simulate a change in a production line before a part is physically executed. That will save companies millions of dollars.” The potential benefits of setting up an IoT platform are huge — the ability to intelligently track and trace materials, parts, and equipment and ensure that they’re delivered to the right product at precisely the right time, or perhaps to predict deviations and react accordingly. That same intelligence can optimize production schedules and improve machine uptime or react quickly to last-minute customer changes. Other applications can help manufacturers harness vast amounts of data streaming in from connected products. Major automotive firms not only see these connections as a way to take the driver’s experience to the next level with predictive services, but they are also looking at ways to harness the data for third-party partners such as insurance companies.

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“Today, fast computing is accessible to everybody. It doesn’t matter if an organization has 10 people or 10,000. Open source technologies are bringing costs down to a commodity level.” — Chris Fangmann CTO for global manufacturing at CSC

“This is not just automating the process of how a truck gets from Point A to Point B. This is going to have a pervasive effect on how we live our lives in the future.”

Not being tied to a specific vendor also solves the matter of portability. “With open standards, you’re not locked into a specific platform or technology,” Doble explains. “So if one vendor becomes too expensive, you can move to another.”

— Rick Tomredle, IoT engineering and delivery manager for CSC

Fangmann also points out that open source helps to ensure a DevOps environment, where the system can be continually updated.

Equipment manufacturers are also looking at ways they can utilize this data to provide better services to their customers.

“Any company can now take advantage of the most modern system available without having to worry about upfront investments, ongoing maintenance fees or looming obsolescence,” Fangmann says. “By using an as-a-service model, any manufacturer should be able to find an IoT platform to support the specific use case it needs.”

While commercial IoT platforms are available from a variety of vendors, manufacturers have been slow to adopt these systems, which often require a major upfront investment. “That is one of the biggest barriers to implementing an IoT platform,” Fangmann says. “Companies are either not willing to make the large upfront investment to stand up their own environment, or they’re concerned that they don’t have enough knowledge to do so. The costs — and time involved for valuable IT staff — would quickly become prohibitive.” Open source opens the way Using open source technologies is one approach to keeping costs down, and a commitment to open source was a guiding principle in the development of CSC’s new industrial connectivity and data exchange platform, which connects and harmonizes data flow among all types of machines. The CSC environment is based on Hadoop Apache Storm, an open source framework for storing and processing large streams of data. “We wanted to have as many open standards as we possibly could,” says Andrew Doble, an enterprise architect at CSC. “We’re very familiar with open source products — and they’re quickly becoming standard for streaming analytics.” Nico Krebs, mobility consultant with CSC, also believes in the power of using open source. Shop floors often use proprietary vendor protocols, making machine-to-machine connectivity difficult. These challenges, Krebs explains, can be overcome with protocols based on open standards. “We believe in open IoT standards such as MQTT [a machine-tomachine IoT productivity protocol],” he said. ”It’s free to use, and I think we will see many libraries for this protocol in the future. We think open protocols will dominate the market in a few years.” Share the burden An individual manufacturer might have difficulty dedicating the resources necessary to build out a Hadoop IoT/big data system, but CSC built its platform so that it can be offered to multiple companies on a pay-per-usage basis.

LUCY NOLAN is a content editor with CSC’s global content team. Learn more at csc.com/manufacturing.

IoT Around the World By connecting machines to each other and to business operations, the Internet of Things gives companies the ability to analyze data to make better-informed decisions. Here are two successful uses of CSC’s IoT platform, OmniLocation®, built entirely from open source tools. 1. Pharmaceutical manufacturer simplifies supply chain. A large pharmaceutical manufacturer uses IoT to better manage its assets, operations and supply chain. Data from public and private sources, including suppliers around the world, is aggregated and analyzed to keep track of operations and recognize problems and disruptions. The system alerts the necessary workers of supply chain issues. “We are continuously updating, through automated notification via text message and email… exactly what’s going on across the company, across the supplier network, so they can make real-time adjustments that allow their operations to keep moving smoothly,” says Dan Munyan, Internet of Things product manager at CSC. 2. Industrial site overcomes environmental challenges. CSC overcame a number of challenges to install an IoT at a large surface mine. The industrial site did not have available cell coverage or power. In fact, Rick Tomredle, IoT Engineering and Delivery Manager for CSC, described the environment as resembling “the surface of Mars.” To reliably generate IoT data in this environment, CSC engineered an extensive “extrastructure,” says Tomredle, complete with radio towers and power. The company can now pull important data from the site to improve business operations.

“Offering a shared platform produces cost savings for us, which we can pass along to our clients,” Doble explains. “And we further reduce our costs by not being tied to a large licensing fee — something manufacturers should consider as well.”


35

RESEARCH

THE FIELD ENGINEER

FUTURE

of the

Google Glass for augmented reality

National Grid boosts innovation with LEF’s Xperience Lab by Lucy Nolan

Orion Onyx push-to-talk communicator for instant real-time communications

Smartwatch for business notifications

Smart Shirt from OMsignal to track health and well-being

An engineer stands boldly in front of a crowd. His hard hat and other protective gear are on. He’s equipped with every new technology you’ve heard of, and maybe some you haven’t. For a group of engineers at National Grid, this scenario wasn’t just an exercise in imagination. This was a glimpse into their future.

Myo armband for hands-free computer interaction

iPad with Occipital 3D scanner

iBeacons for use with field assets

Shaking up corporate culture National Grid (NG) is an electric and gas utility that operates a vast energy infrastructure and serves some 20 million customers, mostly in the UK and the northeastern United States. But like many companies in highly regulated industries, its corporate culture has often been characterized by cautiousness. “Within National Grid, there’s a perception that we’re quite slow when it comes to adopting new immersion technology,” says David Goldsby, digital innovation manager at National Grid. “The business approached me and said, ‘How do we even adopt the next iPad — whatever that is? What would an engineer look like in five years’ time?’” “It used to be much easier for workers to keep track of new technologies,” says Lewis Richards, a researcher with CSC’s Leading Edge Forum (LEF). “Think about personal computers, mobile phones and the Internet. These key IT systems were, and are, mostly general purpose in nature, and often just as relevant in our personal lives as in our work.

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“In contrast, think about IoT [Internet of Things] technologies,” Richards continues. “Now we’re talking sensors, iBeacons, 360-degree cameras, GPS, wearables and drones. These technologies tend to be more diverse and application specific, which makes them much harder for individuals and organizations to identify and keep pace with.” That’s why the LEF created its Xperience Lab in 2014. The idea, Richards explains, was to assemble a mobile collection of the most relevant new technologies, and then work with each client to help employees build digital skills on premises, in the context of the company’s business. National Grid’s recent use of the Xperience Lab showcases the potential of this hands-on learning approach. Meeting the future, today Each year, NG’s IT organization holds traveling road shows, visiting various operational parts of the firm to discuss direction and needs. To get the attention of the engineering unit, NG invited the LEF to participate in the road show, and together the two organizations created A Day in the Life of the Engineer 2020. The executive in charge of the engineering unit agreed to model the technology the LEF would be demonstrating. And thus, with interest, relevance and the cool factor firmly established, LEF and NG proceeded with a full-day Xperience Lab workshop. Twenty NG operations and business staff gathered in Manchester, UK, to explore three specific sets of technology deemed relevant to NG: virtual reality; 3D and 360-degree imaging and modeling; and the IoT. After immersing itself in the new technologies, the group learned about “recipe building,” where the LEF has identified certain technologies that can combine to create higher-order systems. Using these recipes and group-generated ideas, the group was able to build initial prototypes to later test and implement in the field. Solving real business problems As an example of a “recipe,” Richards offers up the “teleporter,” a combination of consumer technology that could easily allow a company to connect a worker in the field to a knowledge worker located anywhere in the world. “It’s a very low cost, no-coding way of virtually teleporting people to any location that you can capture an image from,” explains Richards. “All you need is a 360-degree camera, a VR [virtual reality] headset, a smartphone and perhaps the biggest invention in technology in the last 50 years, the selfie stick.” The field worker could connect a smartphone to the camera and use the smartphone as a remote control. An app on the phone would allow the worker to use the camera to take a full spherical 360-degree image. Once that image is taken, it could be emailed back to the office for a knowledge worker to use his or her phone to look around the image and communicate back to the field worker. “You could go even further by using the camera to power a virtual reality headset,” Richards continues. “Now you’ve got a fully immersive experience. VR headsets are very simple and low cost, with a mini-USB port to connect to an app on your phone. When the knowledge worker puts on the VR headset, for all intents and purposes, he’s teleported to that location.”

Building on momentum Encouraged by the outcome of the Xperience Lab workshop, National Grid has now adopted the idea as part of its internal toolkit. “We started originally with the gas transmission part of our business,” says NG’s Goldsby. “Then what started happening was other parts of National Grid started knocking on the door, going ‘We want a bit of that as well. Why haven’t we done this sooner?’” NG now runs its own labs to generate ideas and look for advantages to exploit. But Richards sees additional benefits from participating in an Xperience Lab, even without bringing new projects in-house. “There are obviously cases where you can apply these consumer technologies around a workflow process and save money or improve business processes,” Richards says. “National Grid has shown this. But more importantly, I think the lab experience gives people a better bulwark to talk to their vendors. “If the concept of Internet of Things is abstract to them,” Richards continues, “if they’ve not experimented with consumer IoT technology and daisy-chained this stuff together, then they’ve got no basis when a vendor says, ‘You’ve got to spend £10 million on 70,000 of these devices or your business is going to fail.’ How do you make a decision around that if you’ve never experienced it?” The consumerization of IT is just getting started, and the need for hands-on experience continues. As action shifts to the edge of the enterprise, engineers of the future will need to embrace technologies, such as APIs and virtual and augmented reality. Engage in front-of-the-firm digital innovation and become comfortable with an outside-in world. “Curiosity is extremely important,” says Richards, “but there’s no substitute for experience. With a commitment to hands-on exploration, the engineer of the future will quickly learn how to use today’s plug-and-play technologies to create even more exciting things.” LUCY NOLAN is a content editor with CSC’s global content team.

READY TO LEARN? Download the Paper: The Field Engineer of the Future csc.com/field-engineer Enable your employees to build hands-on digital skills csc.com/xperience-lab Join the LEF leadingedgeforum.com/join


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CROSS-INDUSTRY

CLIENT

ZERO CSC FINDS SUCCESS AT HOME BY TURNING EXPERTISE INWARD

When enterprises are looking to grow their business through IT transformation, they come to CSC. When we need our own IT transformation, we make the same choice. Here are four recent cases where we acted as our own “client zero,” with great results.

1

Expanding network capabilities

Today’s employees are highly mobile, using many devices to connect to networks at multiple locations. Meanwhile, bandwidthintensive applications, such as voice over IP and point-to-point video, have increased network traffic requirements. To meet these needs, CSC has completely revamped its network, folding disparate WANs into a single global architecture and greatly expanding mobile capabilities. “This is huge, and it involves all of our networks,” says Nick Baker, an enterprise architect at CSC. “One of the key elements is that we wanted to simplify our WAN environment and ensure that what we deploy would be capable of supporting the new technologies we are putting in place for employee productivity and our move to more cloud-based services.” CSC worked with strategic partner AT&T to build out the network, leveraging the telecom giant’s industry-leading global networking capabilities. By centralizing network environments to operate under a common set of management and architectural standards, CSC maintains a simpler, common configuration across its network, giving users a more consistent, predictable and user-friendly experience at company locations worldwide. By standardizing on components used in the architecture, CSC is also reducing operating costs while maintaining the highest levels of service for its employees. The network revamp gives CSC improved monitoring of bandwidth usage. In addition, the new infrastructure gives network engineers better visibility into the details of user activity, and the information is used to tailor the environment.

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2

Securing user access

For enterprises, an important aspect of modernizing legacy platforms and applications is integrating new internal systems, such as cloud-based office solutions, with a standardized, secure identity management infrastructure. Recently, CSC sought to provide users access to cloud-based applications such as Microsoft’s Office 365 and CSC’s MyWorkStyle next-generation workplace services, while meeting requirements related to governance, sovereignty and privacy. To achieve flexibility while consistently streamlining user access across the enterprise, the CSC Identity Management Practice partnered with SailPoint, an industry leader in identity management. The solution leverages existing technology whenever possible while providing Authentication as a Service. The identity and access management (IDAM) implementation handles tasks such as identifying new and existing employees’ privileges, meeting security and governance requirements, and implementing appropriate business processes. CSC solutions architect Steve Kovin points to two key areas that have improved following the IDAM implementation: provisioning and authentication. “Our IDAM solution provides a way to centralize that and manage it from a single point, as opposed to building independent bridges. That’s a huge value-add,” says Kovin.

3

Streamlining human resources

To streamline operations and improve efficiencies, CSC’s Human Resources (HR) department has transformed its systems strategy. Previously, the department relied on multiple systems and spreadsheets that often required manual intervention. It was difficult to create reports and gain insights to inform decision making. After reviewing several competing solutions for a holistic, end-to-end HR systems strategy, CSC chose Workday’s Human Capital Management (HCM) system — a single system of record, delivered in the cloud. The Workday system meets core requirements and is the clear winner for usability. In addition, the system provides advanced analytics and reporting capabilities. And, with its subscription-based service, Workday allows CSC to realize tremendous savings without taking on the maintenance costs of running an on-premises system. CSC created the Workday practice in 2014 and became “client zero” for its first implementation. The system was deployed to more than 70,000 employees in more than 70 countries. The installation has not only benefited CSC’s operations, but perhaps more important, provided experience and valuable lessons for client deployments.

4

Unifying digital marketing data

On any given day, CSC’s digital marketing team interacts with clients and potential clients around the world through a variety of digital channels — from email campaigns and Web pages to tweets, videos and blog posts. Behind the sophisticated marketing effort are more than 50 tools, including Eloqua, Salesforce and Adobe Analytics. Until recently, the approach lacked a comprehensive view that could measure the impact of campaigns across the digital marketing ecosystem. The digital marketing team thought a unified tool would reduce time spent manually wrangling data while improving its understanding of visitor interest in CSC. “There is a great depth of information in the data silos created by all the products we use,” says Nick Panayi, head of CSC’s digital marketing and global branding. “That’s useful if you wanted to study just one part of the customer’s behavior. … What you don’t have is a complete understanding of how all of that ties together to give you a 360-degree view of that customer.” CSC’s Big Data Platform as a Service proved to be the ultimate solution for the challenge. The group implemented the big data platform on Amazon Web Services, pulling in more than 80 different source files from about 10 isolated source systems.

Get more details on all of CSC’s client-zero success stories at csc.com/client_zero.


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7 LAST WORD

WAYS TO GROW THE DIGITAL LEADERS YOUR FIRM NEEDS by David Moschella

Today, every industry has its own set of well-funded and potentially disruptive startups, built to ride the technology curve. This unstoppable tide of innovation is altering both the very nature of work and the skills required in the IT workplace. Where once enterprise IT relied on business relationship managers (BRMs) to speak a language that the rest of the organization could understand, the greater need today is for digital business leaders (DBLs) who embrace outside-in innovation, new ways of working, and the double-deep skills needed to blend specific job functions with the relevant technology know-how. Enterprises and individuals who enthusiastically engage with these new roles can enjoy exciting opportunities ahead, but those who ignore or resist them will be increasingly (and often painfully) marginalized.

Here are seven ways to get started on the path to digital leadership growth:

01

GET THE BRM FUNDAMENTALS RIGHT. Successful BRMs have strong communication, consulting and negotiating skills, as well as the personal power needed to sustain credibility, empathy and trust, even while coping with difficult situations. These skills are even more important in strategic digital leadership discussions.

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WORK LIKE A STARTUP. Modern software tools and techniques can often lead to order-of-magnitude productivity improvements. But the use of such approaches in traditional IT organizations remains surprisingly low. Developing a startup culture means emphasizing the latest software development concepts, especially application integration, advanced user interfaces, mobile apps and rapid prototyping.

GAIN HANDS-ON EXPERIENCE. Many consumer and Internet of Things (IoT) technologies need to be experienced to be fully appreciated. However, most companies do not have an effective process for getting new technologies into the hands of the right employees. Enterprises should explore ways to bring the latest cameras, sensors, wearables and virtual/augmented reality technologies onsite and demonstrate their use in specific company challenges. BE SOCIALLY READY. For whatever reason, many IT professionals (as well as many

04 READY TO LEARN?

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Download the Paper: Turning Your BRMs into Digital Business Leaders. csc.com/digital-brm Review how enterprise IT can add value through business relationship management. csc.com/brms Join the LEF. leadingedgeforum. com/join

media. Successful engagement with Facebook, Twitter, LinkedIn and other platforms can propel communication among clients, partners, and colleagues and establish an enterprise as a thought leader in its field.

IMPROVE YOUR SITUATIONAL AWARENESS. Technology tends to evolve in a pattern — from genesis to customization, to productization and to eventual commodity/utility status. Enterprises need to understand where their organization is today on the value chain and where it needs to be.

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senior executives) are neither comfortable with nor experienced in modern social

DISRUPT; DON’T BE DISRUPTED. While some industries have been much more disrupted by IT than others, every sector has its own disruption story. DBLs need to understand how technology is changing the way industries operate and innovate, especially the shift from inside-out to outside-in dynamics.

TELL YOUR DIGITAL STORY. Most companies have a clear business strategy, and most also have a formal IT strategy. But relatively few firms (and even fewer IT departments) have a compelling digital business narrative that makes sense both inside and outside of the organization. It’s an area where much improvement is needed.

Of course, no one person can be expected to be skilled in all of these areas, but developing a diverse range of digital leadership capabilities across the firm is now a realistic goal. For individuals who embrace this path, the opportunities have never been greater. DAVID MOSCHELLA is research director for CSC’s Leading Edge Forum.

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DISEASE TO DATA:

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Sixty-four percent of CIOs in the healthcare and life sciences sector call modernizing legacy applications a high or critical priority, and it’s no surprise that they feel that way. Shifting consumer expectations and changes in regulations, as well as global pressure to deliver better care for individuals and better health for populations, have the entire industry in need of innovation that can be implemented quickly. CSC can help you increase flexibility, responsiveness and reliability, while lowering per-capita costs with Agile IT as a Service. Innovation is never a roadblock For Those Who Solve. Learn more at csc.com/solve.

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