Smart Enterprise Magazine

Volume 7, Number 3, 2013

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Big Data, Big Distribution Where big data professionals work transfer funds, make deposits and more. The app will need new bells and whistles PROFESSIONALS PROFESSIONALS I In IT function going forward, and Bassani views that as a WHO ANALYZE BIG DATA WHO PROCESS BIG DATA I In business competitive advantage. "Customers need functions that to be continually saying, 'Wow, that's cool. I 28% use data want to use that,'" he explains. "Otherwise, 42% they'll be looking elsewhere." I In separate Customers Bank does not allow a big data group bring-your-own-device (BYOD) policy for 23% 25% I With third party employees. "We had too much access to 45% personal customer information and could I Other 30% not afford to have any malware introduced into the network," Bassani recounts. At the 3% 2% same time, he had tried to strike a balance 1% 1% between security needs on the one hand and ease of access on the other. "We were really DATA: Tata Consultancy Services, "The Emerging Big Returns on Big Data," survey of 1,217 companies in the U.S., Europe, Asia-Pacific and Latin America, 2013 watching this area very closely," he adds. At a higher level, Bassani sees IT's role shifting away from one of a cost center to one of being what he Trends for the Decade Ahead," a recent McKinsey & Co. report, calls "an enabler of profit centers." One potential area is big data, states, "The cloud, with its ability to deliver digital power at low Bassani says. "Big data vendors are going to meet with CEOs, and cost and in small increments, is not only changing the profile the vendors are going to know the ones and zeros inside-out — and of corporate IT departments, but is also helping to spawn new how to build dashboards around [the data]." But, he adds, "these business models by shifting the economics of 'rent versus buy' vendors are not going to know what the CIO knows, namely, how trade-offs for companies and consumers." to drive that data to help business make decisions to allocate In part, that's because one of the cloud's here-and-now benresources for IT, or how to optimize that data for outcomes with efits — the ability to cut costs — can enhance the new role of the real value for the business." CIO as a business leader. "Cloud's ROI is essentially a move from Like Mott at GM, Bassani was not investing in the cloud. He capex [capital expenditures] to opex [operating expenditures]," says security and regulatory concerns prevented Customers Bank notes Puneet Kumar, VP of Strategic Accounts at Tech Mahindra from deploying any cloud-based solutions. "Cloud is tempting, but Ltd., a Mumbai-based IT services provider. That frees business we couldn't really jump in there quite yet," he says. from having to buy new software and hardware, and associated To be sure, Bassani and Mott are at one end of the cloud-imple- licenses, he says. Adds Ganesan of TCS: "The cloud is liberating mentation spectrum. At the other end are the many companies enterprise IT from the day-to-day utility operations they're curand CIOs who are implementing private and public clouds, and rently running. Suddenly, businesses are looking to companies cloud-based IT and business services. As "Ten IT-Enabled Business like ours to handle problems and manage any issues that arise." THE TROUBLE WITH 'SHADOW IT' With the proliferation and fast adoption of both cloud and mobile technologies comes a disconcerting new trend: shadow IT. The term refers to the phenomenon of executives from outside IT acquiring IT services over the cloud. Many IT executives and industry watchers alike see shadow IT as a threat to the CIO's role. "What we now have is rebellion on the business side of the house," warns Ray Wang, CEO of Constellation Research. That rebellion, Wang adds, is about time and money. Given traditional IT cycles, a CIO might need five years to get a data warehouse running, or 10 to get an ERP system perfected. Now, business managers can say to IT, "I'm just going to swipe and buy, and I'll get it up and running myself." But, Wang adds, too much shadow IT, and "IT goes to hell in a handbasket." What does he mean? Take a cue from Michael Madden, General Manager for Mainframe Customer Solutions at CA Technologies. At one of his customers, a line-of-business manager brought in a cloud-based, customer-facing application without informing IT — and without any understanding of how the new application might interact with core applications running on a mainframe. In fact, when the cloud application was triggered, it overloaded transactions on the in-place system. "All of a sudden," Madden recounts, "there wasn't enough capacity to handle the workload on the system. Fortunately, the system didn't go down, but these losses of performance ultimately result in a loss of business." What's the solution? Chris Garibaldi, at Deloitte Consulting LLP, often advises his CIO clients to rein in shadow IT to best serve the business and reduce technical risk. One way is for CIOs to initiate open and frequent collaboration with the business — without bringing in outside advisers such as MSPs and CSPs. "That way," Garibaldi says, "both CIOs and business executives can sit down and figure out what's needed from a total businesssolution perspective." If all else fails, Wang offers a pithy response: Dictate that all outside technology must be cleared with IT, if only for security reasons. "Tell them," he adds, "that nobody wants to be on the front page of The Wall Street Journal for a data breach." —L.L. 2013 • SMART ENTERPRISE 15

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