Volume 2 | Issue 3
Tata Motors Drives Success With The Cloud
Jagdish Belwal IO C Tata Motors
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Cloud on Wheels
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New Age of IT – Are you ready?
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Bharat Badal - Why rural India needs a national cloud computing plan
Cloud on Wheels
How Tata Motors test drove the Cloud to success Igniting the cloud Cloud computing addresses an increasingly important need in the business world – enabling real-time collaboration over secure networks and across multiple devices and geographies. “We foresaw three main requirements –
Jagdish Belwal
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Cloud on Wheels How Tata Motors test drove the Cloud to success
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New Age of IT – Are you ready?
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Bharat Badal - Why rural India needs a national cloud computing plan
Jagdish Belwal began his career as a Construction Equipment Service Engineer. He shifted to IT in 2002, leading Customer Relations Management at Tata Motors and has been CIO since 2009.
Tata Motors is more than just an automotive manufacturing company. It is a trendsetter, creating entirely new product categories while redefining existing ones. Innovation is the single most important element that has catapulted Tata Motors to the forefront of automotive manufacturing. The company firmly believes in staying relevant and building an environment that fosters progress. It’s no wonder that Tata Motors has successfully adopted cloud computing. Belwal shares his insights and experiences on the implementation and the journey so far.
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The scale of our business would increase exponentially in the long term.
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Our relationship with partners, employees, and customers would need to become stronger.
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The speed of our operations would need to increase manifold,” says Belwal.
Redefining collaboration, speed, and agility Tata Motors has operations in seven plants across India, manufacturing a variety of vehicles from small cars, SUVs, Small Commercial Vehicles (SCVs) to Heavy CVs, Army 4x4s, and multi-axle buses.. Globally, Tata Motors has operations in the UK, South Korea, Thailand, South Africa, and Indonesia. Naturally, seamless connectivity among the various locations is vital. “With cloud, collaboration woes can be forgotten altogether. Everybody became available to everybody,” says Belwal, adding, “It flattens the whole organization and equips Tata Motors with speed and agility that are critical to any organization.” In pursuing a strategy to foster greater collaboration, Tata Motors has promoted Office 365 as a means to achieve a great end-user experience.
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Productivity speedometer
by allowing users to create groups for work purposes and hobbies.
Cloud enables Tata Motors’ employees to smoothly carry out daily activities such as emailing, attending and scheduling meetings, and documentation. •
“We looked at it from an employee’s point of view. In today’s world, one doesn’t just work within the confines of an office; one doesn’t work only on a laptop or desktop. The multitude of devices and locations made it necessary for us to provide a connected environment,” says Belwal.
Office 365 provides many powerful tools for increased productivity. Employees have access to the latest version of Office, allowing them to work from anywhere, with any device.
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Exchange and Outlook keep staff accessible with mobile device support and a huge mailbox of up to 50GB. This ensures secure mail access and hassle-free data backup.
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Lync, which easily integrates with the Microsoft productivity platform, enables instant messaging, AV conferences, and real-time desktop sharing while providing presence information. Users are no longer dependent on multiple systems to set up conferences or share PPTs in advance for meetings.
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One Drive for Business provides each employee unlimited storage for documents such as design collateral, marketing files, and spreadsheets with the convenience of accessibility from anywhere.
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SharePoint allows users to host their own microsites, e.g. a team site for initiatives which can bring crossfunctional teams together on one platform, allowing them to generate and maintain different departmental knowledge bases. For Individual departments, employees are able to store, share, and host various documents and collaborate easily using the ‘co-authoring’ feature.
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Yammer, the Enterprise Social Networking platform, is breaking down conventional collaboration barriers, providing Tata Motors with an excellent space for ideation. It has built a strong sense of community
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Charting the journey Employee accounts in seven main plants and 100+ offices of Tata Motors have undergone the migration to cloud, guided by an implementation plan spanning three to six months. This includes adequate provision to absorb the impact of adoption and change of management . “As execution went along, the organization celebrated success stories of user adoption across teams comprising IT, HR, and Corporate Communications,” says Belwal. Media such as videos, flash mobs, and e-learning courses have been used to fuel change. These are being supported by over 70 Microsoft-certified internal trainers who assist employees. “When it came to infrastructure, we only had to worry about creating a robust network with Wi-Fi provisions to ensure easy internet access,” recollects Belwal, adding, “Adoption was mostly a culture change, revolutionizing the way people work.”
Implementation pit stop “After bonding with the best in cloud architecture, we only had to take care of the implementation process,” recalls Belwal while elaborating the various initiatives that enabled the Office 365 rollout. •
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Assessing that network patterns would move to the internet from the internal MPLS, internet links were upgraded and additional gateways were set up before the rollout. A firewall upgrade was planned. The same is under execution to
accommodate diverse and relatively sophisticated internet traffic. •
A secure Wi-Fi needed to be implemented across plants and offices to enable access on mobile devices. It is currently under execution.
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A good mobile device management platform was identified to enable access on mobile devices.
New Age of IT – Are you ready? By S. Srinivasa Sivakumar, Enterprise Architect, Microsoft
Abstract In the digital world, business models are rapidly reinvented every moment, and the reliance on more scalable and flexible IT solutions is increasing. However, based on many surveys, there are worrisome trends that show a growing disconnect between IT and business. Based on a Gartner-Forbes survey from 2012, IT’s competitive differentiator is steadily declining from 117% in 2011 to a mere 14% in 2012. The question is, how can IT influence business growth more effectively and measure the same? This article addresses this in detail.
He also talks of how vendor and thirdparty support have played a key role. “Without them, migration to cloud would have been difficult,” emphasizes Belwal.
Accelerating the digital transformation vision for Tata Motors The initial deployment of 500 users has quickly grown to 20,000 users on the platform. This overwhelming response is largely due to a planned approach. “Tata Motors organized one-on-one calls to assist users shift to the new platform, creating a positive environment for migration,” says Belwal. Today, the speed of business change is staggering and Tata Motors is wellequipped to keep up with the pace.
“Instead of asking ‘why Cloud’, we now ask ourselves ‘why not Cloud’”
Introduction A typical business expects IT to help them: •
Drive innovation
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Stay ahead of the competition
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Enter new markets quickly and grab opportunities
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Meet industry regulations and internal policies
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Overcome globalization challenges
Even though IT strategy should be aligned with business strategy, the IT/Business
alignment is an age-old challenge. Many pundits have written about this challenge, consultants have made careers creating frameworks and processes around it, and yet the issue remains very present in today’s business environment. For example, based on the Forrester study, Beyond Alignment: A Road Map For Business-centric CIOs – A Business Technology (BT) Report •
58% of marketing professionals said “IT and marketing speak different languages”
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56% of them said “IT doesn’t understand our business”
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48% of them said “IT doesn’t understand how we adopt technology”
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32% of them said “IT focuses on metrics that don’t matter to us”
From the above study, it is quite evident that IT-Business alignment has a long way to go to find common ground. Is there an effective way for business to measure the performance of IT? Figure 1 below depicts a simple KPI framework which can be utilized to measure the performance of IT.
Figure 1: IT efficiency measurement framework
- Jagdish Belwal Tata Motors has big plans to fully leverage this speedy and agile platform, allowing for easy collaboration and quick decisions. This would involve communication and change management programs which are underway. In the current business environment which is improving, cloud computing is poised to power Tata Motors to drive faster.
Time to decision
Time to market
Time to value
How IT is planning to fulfill the business challenge/ requirement
How long IT will take to provide a solution for the given business challenge/ requirement
How IT will work with the business to launch the IT solution, ensure adoption, and accelerate business value
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Time to decision How would IT fulfill the given business requirement? •
Would IT procure a COTS product with or without an RFP process?
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Would IT build a custom solution using .NET, SharePoint, JEE or some other framework? Would this require in-house skills, augmented skills, or outsourcing the custom solution build to a systems integrator?
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Would IT rent a SaaS solution from a Cloud service?
Time to market How long will IT take to provide a solution for the given business requirement? •
Would IT take 3 weeks to rent a SaaS solution, integrate it with on-premise services, and make it available for business users?
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Would IT take 2 months to buy a product (with or without an RFP process), customize it, host it on an IaaS Cloud container, and make it available for business users?
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Would IT take 5 months to buy a product (with or without an RFP process), customize it, procure the hardware, and make it available for business users?
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Would IT take 9 months to build a custom solution and make it available for business users?
Time to value How will IT work with business to launch the solution in a more efficient manner, accelerate adoption by business users and realize faster business value? •
Would IT use effective adoption and change management techniques?
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Would IT use motivational techniques like rewards & recognition frameworks or gamification frameworks?
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Would IT use Hall of Fame techniques?
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Would IT use business value articulation?
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Would IT do all of the above or a combination of some?
The disconnect and the power shift
Management, 2013 study finds that IT organizations believe Shadow IT is at least 25% of their IT budget. There are a few interesting trends driving the new age of IT: •
IT departments have been known to drive complex, multi-year IT projects such as large ERP implementations with several customizations or multi-vendor custom application development. The low success rates of large and complex IT projects are well known. In one study, McKinsey found on average that large IT projects run 45% over budget and 7% over time, while delivering 56% less value than predicted. According to a survey by CIO Insights, big IT projects usually fail. The bigger the project, the more likely they are to fail and the estimated cost of these failures in the U.S. range between $60 billion in direct costs to over $2 trillion in indirect costs. These are alarming numbers for business stakeholders. IT often takes an analysis-paralysis approach to make decisions and increases all of the ‘time to’ KPIs (T-DMV) which doesn’t include the cost of lost opportunities. These inefficiencies in the IT ecosystem have created major dissatisfaction in the business community. They have also created the new trend of ‘Shadow IT’ where many departments bypass the rigid and timeconsuming IT process in favor of bringing in or building their own solutions, hosted on a server which runs under the table or by some cloud provider as a SaaS service. Gartner’s Hype Cycle for IT Operations
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Skirting of power: Since time to market is so high with IT departments, business users are buying off-theshelf SaaS services and mobile applications with a swipe of a credit card. They are accepting standard service agreements without any due diligence review and clicking “I agree” when they download applications. Therefore, IT and sourcing departments are clearly bypassed when these new business capabilities are brought into the organization. Sourcing professionals and IT are unable to control these departmental shadow IT purchases and the inherent risk they bring to the company. According to Gartner, by 2015 CMOs will spend more on IT than CIOs. Budget trends: Based on IDC data, the last couple of years have seen IT budgets reduced 5% YoY and IT is expected to do more with less. IT spend: Based on Gartner data, most of the surveyed CIOs spent 70% of their IT budget on maintenance of ongoing applications, supporting them and running them with minimal innovation. Only 30% of the IT budget is spent on innovation-related
initiatives. However, business expects the reverse from IT – 70% on innovation and 30% maintaining the existing legacy. This is a difficult cycle to handle. •
Consumarization of IT: Employees are more powerful than ever and don’t like what the IT department gives them as standard devices and services. Many companies are implementing a variety of BYOx initiatives (BYOD, BYOA, BYOS) to satisfy users and as an attracting-and-retaining strategy for HR managers.
New role of IT Times are changing. The new age of IT is all about reducing T-DMV, bringing agility into IT and helping the business to: •
Innovate faster by improving the innovation/R&D process and enhancing the ability to roll out new
Figure 2: BBR process Traditionally, IT has been following a Build vs. Buy framework process to acquire new business capabilities and roll them out. This is nothing new for IT organizations, but it is time to add the rent decision into the framework. The rent option allows IT leaders to roll out and experiment with new business in a much more agile way without spending too much money or time. Renting also enables IT leaders to acquire fully-functional business capabilities (SaaS) or complete platform capabilities (IaaS or PaaS) where handcrafted solutions can be built. It is a safer bet when dealing with ambiguous business requirements that aren’t always clear.
products and services to stay ahead of the competition •
Increase new customer acquisitions, improve customer retention and exceed expectations for the overall customer experience
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Lower operational costs and optimize business and IT investments
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Use predictive analytics to enable CMOs to reach new markets and customers which is becoming the new source of revenue for organizations
(aka BBR framework) – which will decide: •
Which business capabilities the organization will rent
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Which business capabilities the organization will buy
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Which business capabilities the organization will host on private or public clouds
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Which business capabilities the organization will build
For IT to be agile, business leadership has to think about new sourcing models which will result in faster T-DMV. IT is moving from being an all-encompassing service provider to more of a service facilitator role. IT should work closely with business and procurement functions to create a new sourcing framework - Build vs. Buy vs. Rent
The BBR framework should be holistic in nature and consider the strategic importance for the organization, vendor commitment to products and/or services, vendor credibility, vendor financial position and associated risks, procurement policy adherence, information security and privacy related risks, regulatory compliance related risks, existing IT landscape fit, multi-year deals, best possible prices and contract terms, etc.
1. Business Capabilities
2. The Framework
HR HR
Rent: X% | Buy: Y% | Build: Z%
Finance
Finance
Rent: X% | Buy: Y% | Build: Z%
Marketing
Marketing Rent: X% | Buy: Y% | Build: Z%
Sales
Sales
Rent: X% | Buy: Y% | Build: Z%
R&D
R&D Rent: X% | Buy: Y% | Build: Z%
Innovation
Innovation Rent: X% | Buy: Y% | Build: Z%
3. Measures Time to market/value | Lower risk | Enhance top and bottom line | Competitive advantage
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Figure 3: BBR framework view
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The Procurement BBR framework should be created in partnership with business stakeholders who can define and drive business priorities, a Chief Investment Time topolicies, Market a Chief Time toOfficer Value who can Opportunity Information Security Officer who can define andRapid drive Innovation the information security Privacy define andCost drive Model Models the Data Privacy Policies, a CFO who understands the investments and outcomes, a Chief Procurement Officer,and a CIO who should Limited to product drive entire program. CAPEX + OPEX Buythe & Implement cycles from Medium Medium Medium
Consider the following example: An organization’s annual IT spend is $10 million USD with 80% spent as CAPEX investment and 20% as OPEX. Using IT Portfolio Rationalization techniques, along
Are there any seasonal applications that exist with predictable or unpredictable spikes in usage or processing? Could a Cloud Bursting architecture free up extra hardware assigned to these applications?
the vendor
Build & Deploy
CAPEX + OPEX
Limited to the IT team’s capabilities, focus, and budget
Rent & Use
CAPEX + OPEX
Incrementally delivered at the speed of Internet
Low
Low
High
Low
High
Low
Current Model
CAPEX
A mix of 40% bought applications and 60% built applications along with supporting hardware, etc.
OPEX
IT Salaries Support AMC contacts Power Bandwidth Miscellaneous
CIO
Business
CISO
CPO
CFO
Others
Landing the framework Landing a BBR framework requires a programmatic approach as outlined below. Define a BBR framework Define the BBR framework and identify the business and IT stakeholders. Communicate and educate Educate business and IT users on how to use the framework. Create a BBR champions team spanning multiple areas of the company and use them for insider influence. Identify early adopters as heroes and celebrate them with a Hall of Fame. Governance process Define a cross-group governance process.
New business initiative
Change & lifecycle management Define an effective change management and lifecycle function for continuous improvement. Like any other transformational IT initiative, adoption, communication, and change management functions play an important role in the BBR framework. Make sure all new business initiatives follow this framework to reduce the IT and business disconnect. T-DMV KPIs, information security, and privacy are also critical components. CIOs should use IT Portfolio Rationalization techniques along
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IT Spend %
80%
20%
IT Spend $
Model
IT Spend %
IT Spend $
$8,000,000
A mix of 20% bought applications and 50% built applications along with supporting hardware, etc.
60%
$6,000,000
$2,000,000
30% rented applications IT Salaries Support AMC contacts Power Bandwidth Miscellaneous
22%
$2,200,000
with the BBR framework to find ways to optimize the existing IT portfolio for cost and agility. For example: •
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Are there any standard IT products or SaaS services that could replace applications developed and maintained by the IT team or an outsourced vendor? Are there any hardware refresh cycles coming? Instead of buying new hardware, can the applications be moved to a standard LaaS platform on the cloud?
$1,800,000
Measuring success Once the BBR framework has been rolled out across the organization, measuring the success of T-DMV from an ‘as-is’ state to a ‘to-be’ state for every quarter would be ideal in order to understand the impact of BBR on IT efficiency. For example, the following table and chart depicts sample data on how IT agility score improvements can be measured QoQ based on the BBR framework.
IT Efficiency Measure with T-DMV Time to market
2. The Framework Existing IT portfolio optimization
Optimum
Savings
Figure 5: BBR framework execution 1. Initiatives
savings to the organization.
Annual IT spend $ 10,000,000.00
Figure 4: BBR stakeholders The BBR framework should be created in partnership with business stakeholders (Chief Information Security Officer, Chief Privacy Officer, Chief Procurement Officer, and CIO) who can define and drive business priorities, information security policies, data privacy policies, and understand the investments and outcomes to drive the entire program.
with a BBR framework, IT could change the IT portfolio investment spend percentage by adopting cloud-based procurement models. This would provide substantial
IT Efficiency KPIs
Days As-is (Avg.)
Q1 (Avg.)
Q2 (Avg.)
Q3 (Avg.)
Q4 (Avg.)
Time to decision
40
30
25
20
15
Time to market
270
220
200
180
150
Time to value
180
170
150
130
100
270
180
220
200
180
150
170
150
130
100
30
25
20
15
3. Measures
Build vs. Buy vs. Rent Framework
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Faster time to value
BBR Governance Function
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Faster time to market
BBR Change & Life Cyle Management Function
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Faster time to decision
Time to value 40 Time to decision
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While T-DMV is more of an IT efficiency measure, it can also be connected with business impact measures and aligned with business outcomes. The following table and chart depicts sample data to show business outcome correlations. Business Impact KPIs
As-is
Q1
Q2
Q3
Q4
Revenue (Top line)
5%
6%
7%
7%
7%
Revenue (Bottom line)
15%
16%
17%
18%
19%
New leads generated
5%
8%
11%
14%
16%
New customer additions
2%
5%
8%
9%
9%
Business Impact of BBR Framework
15%
Revenue (Top line)
16%
8% 5%
New leads generated Revenue (Bottom line)
2%
6%
17% 11% 8% 7%
18% 14% 9% 7%
19% 16% 9% 7%
5%
New customer addition
Conclusion
References
When an organization is able to deploy devices and services more rapidly in this digital economy, it can create differentiated experiences which, in turn creates high value for customers and for the organization. Adopting a BBR-like framework accelerates the value realization process and can create a competitive advantage for any organization.
McKinsey: Delivering large-scale IT projects on time, on budget, and on value Gartner: Hype Cycle for IT Operations Management, 2013 CIO Insights survey Beyond Alignment: A Road Map For Business-Centric CIOs – A Business Technology (BT) Report
To be an IT hero in the new age of IT, be sure to communicate clearly and consistently how the BBR framework has improved IT efficiency and business outcomes.
This document is copyright and proprietary to Microsoft.
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Bharat Badal - Why rural India needs a national cloud computing plan By L S Subramanian, Founder, NISE and a Cloud Evangelist Cloud computing is a model for enabling convenient, on-demand network access to a shared pool of configurable computing resources (e.g., networks, servers, storage, applications, and services) that can be rapidly provisioned and released with minimal management effort or service provider interaction. Cloud computing transforms computer processing, data storage, and software applications, allowing them to be delivered as a utility. Just like people tap into existing infrastructure for water or power, companies can now tap into a variety of services applications, platforms, raw computing power, and storage - all via the Internet. The cloud is a disruptive technology, and many citizens will benefit from faster, cheaper, better, and reliable applications on the cloud. Leveraged in the right way, the cloud can help the government deliver new service models which in turn will drive growth and reduce costs. However, for this to happen, it is important for key stakeholders to get educated, educate the government leaders in the second phase, and then identify the cloud strategy for the citizen. If this happens in the right direction, the cloud will mature into a commodity pushing down prices of services.
Cloud for rural India
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India’s ‘Rural Population: 568m;
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Rural Literate Population: 368m;
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Rural English-Speaking Population: 63m;
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Rural Computer Literates: 15.1m;
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Rural Claimed Internet Users: 5.5m;
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Active Internet Users: 3.3m
The opportunity is that there are more mobile phones than radio in rural India (100million subscriber base). Rural India has been ignored for more than 60 years and the cloud will bring the change that is required to bridge the divide between rural India and urban India and will improve the Indian rural economy. The Government of India through BSNL (Bharat Sanchar Nigam Ltd) is providing broadband connectivity up to the Taluka level which makes data connectivity a reality for rural India. This will allow rural India to log into the cloud. Cloud is Gandhi Engineering. The term “Gandhi engineering” was used by NY Times in an article on the Tata’s Nano and it defines Gandhi Engineering as “a mantra that combines irreverence toward established ways with a scarcity mentality that spurns superfluities”. The cloud computing is a marvel of Gandhi Engineering and encompasses Low cost; High operational efficiency; Elasticity and Scalability.
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Scalability makes rapid rural penetration a reality; one can easily expand the number of users and locations at a modest cost .
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Device and location independence. The way you access a cloud could be your desktop. It could be someone else’s computer. It could be a mobile phone. It could be a solar powered touch pad.
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Lastly the BSNL broadband project for rural India will provide the data connectivity.
What can be done for rural India using the cloud? The cloud will allow information technology to be infused into the smallest hamlet of India and make access to information available to the poorest of the poor to give them a better life by empowering them with knowledge derived through the net book or mobile phone connected to the cloud. The cloud will make the following services affordable and accessible at a low cost: •
Citizen Government Interface
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Citizen Benefits
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Weather Forecast
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Banking & Money Transfer
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Tele Medicine
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Commodity /Stock Exchange Prices
Low start-up costs make cloud computing especially attractive for rural India.
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KYC and Credit Bureaus
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Agricultural Information
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Citizen Interface Portals
Ease of management. No worry about keeping licenses or for that matter, power
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Knowledge Sharing & E-learning
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Real Time communication
The real India lives in its villages and smaller towns and therein lies the future of India. Rural India constitutes 69 percent of India’s population, and 86 percent of the rural population earns less than ` 100 per day.
Advantages of cloud computing for rural India
Here are some highlights from the IMRB/ICube report (as of March 2008):
•
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and air-conditioning to run the data centers or purchasing additional hardware.
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Bharat will benefit by taking the cloud to rural India: •
•
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The cloud will drive down costs of E-Governance, Education, Medical Care, and other Government computerization initiatives. The cloud will bridge the great divide between rich urban India and poor rural India and will give the same level playing field to all Indians. Lastly the cloud will enable non- English speaking literate Indians to join the information revolution and participate in governance and the future of the
country by allowing them to transact on the web in the Indian language of their choice in Bharat Badal. The Government of India must work on a public-private partnership built of a National Cloud Infrastructure named as “Bharat Badal“ pan India with data centers in five cities, this can be subsequently expanded nationally by connecting to the cloud infrastructure built by the State Governments of India. The cities where the cloud data centers could be located are Delhi, Kolkata, Mumbai, Chennai, and Bangalore.
The Bharat Cloud is the solution for empowering the non-urban Indian citizens with the power of Information Technology. Bharat Cloud will ensure a prosperous and digitally-connected India and will bring economic and knowledge growth across the nation and will also be instrumental in unifying India. Footnote: There are three national clouds which are envisaged to be available in 2015 - The Microsoft India Cloud by Microsoft, The Meghraj Cloud by Government of India and Meghdoot by IDBRT exclusively for use by Indian Banks. This article was earlier published in Information Week.
Cloud Accelerator Program Industries all over the world have recognized cloud computing as the way forward and are turning to it for their communication and collaboration requirements. Microsoft is working on an innovative program to help you better reap the benefits of cloud computing and incorporate it seamlessly into your IT strategy. Microsoft has three main tracks to help you begin your cloud journey: Track 1
Strategy - This is the beginning of the process which focuses on senior decision makers of the organization. Microsoft will present a special brief to help them understand the benefits and aspects of working on the cloud. Track 2
Planning - Once the leadership is convinced of fully exploring cloud capabilities, the next step is to plan a migration process. Whether a quick cloud assessment of your company needs or a detailed adoption blueprint, Microsoft will help you chart your cloud implementation process. Track 3
Tapan Garg Founder and CEO CIO Association of India P1, Gem Wellington Old Airport Road Bangalore 560017 E: tapan@cioindia.org W: www.cioindia.org
Getting Started - Microsoft’s advanced migration service will ensure that your organization’s infrastructure and application move seamlessly to the cloud. Now your organization is ready to go!
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To know more, please visit: http://www.microsoft.com/india/datacenter/cloudaccelerator-program.aspx
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