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tent ents A view from the C-level: New mainframe technologies that will make a difference to your  business
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Bob Dylan thinks your sustainability is questionable at best
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I welcome our new machine overlords
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Part I: Improving datacenter performance to save money, can cost you more
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The Customer Persona is Dead
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Letter from the Editor
I know this will come as a surprise, but I tend to like the concept of data being used to make our lives better—shocking coming from the CEO of a company called DataKinetics. However, for all the times we look at data as something to leverage for better business, better personal experience, and better lives in general, there is also the potential dark side of data. Data has become the lifeblood of modern society, and with that comes the infectious side that can permeate our social construct—an intangible entity that grows in ways that can begin to weigh on all of us. We see this through the data being collected on us every day: from social media that scans and builds profiles based on our posts to capture our likes, dislikes, habits, friends, and more, to the progressive profiles that make up our experiences online when we shop, meet people, work, and live. All this data is constantly analyzed, synthesized, and used in ways that many of us may never fathom. This is not to be taken as a warning of dark days; in fact, it’s quite the opposite. It’s meant to be a call to action—one that demands greater things from all of us and one that challenges us to use our newfound technological prowess to make our world better for all. With New Year upon us, and with dreams of success ahead, our world must become supportive and free, so we need to embrace the data that drives our world. As the new power of data builds, so must we as 2018 and beyond is the era where we can fully control our destinies: we’ll gain the insight and the ability to make real and positive change based on real and actionable data. So with this, I wish all of you the best in 2018—the data shows that this is going to be a wonderful year!
Allan Zander Editor-in-Chief
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A VIEW FROM THE C-LEVEL: 6
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MAINFRAME TECHNOLOGIES THAT WILL MAKE A DIFFERENCE TO YOUR BUSINESS BY ALAN RADDING, RESEARCH DIRECTOR, THE INDEPENDENT ASSESSMENT GROUP
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Be honest: what do you really think of IT? Most C-level execs think of it, at best, as a cost center to be minimized. Others go even further, thinking it arrogant, pushy, dictatorial, and worse. Those execs who are more generous, especially if they have experienced a good CIO, may regard IT as a business enabler; a rare few might grudgingly consider IT a worthwhile component of the company. Since we’re being honest, only an exec who has suffered through a problem-plagued IT experience and has survived to recognize IT the way it should function, might concede IT is a critical component that the business should never be without. Just think what happens to your business when IT systems go down, even for an hour or two. Does much customer work get accomplished? Are your people productive? Of course not. You can’t run a modern, competitive organization today without a competent, efficient IT group if you intend to stay in business for very long. By long we’re talking about a few days, a week at most. Fortunately, that is increasingly unlikely to happen. Technology like that provided by IBM, which has been developing and commercializing advanced, intelligent systems, mostly prevents the worst things from happening.
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QUANTUM COMPUTING: IT’S REAL, AND IT’S HERE NOW
Maybe the most exciting, but admittedly furthest out there developments, is IBM’s pioneering work with quantum computing. This is no longer in the realm of science fiction. Just last fall, IBM introduced rapid advances in quantum hardware as the company continues to drive progress across the entire quantum computing technology stack, with a focus on systems, software, applications, and enablement. Using IBM’s QISKit toolset, your technical people could create quantum computing programs and execute them on one of IBM’s real quantum processors available online. Quantum computing will enable companies like yours to analyze complex problems such as chemical simulations, find new ways to isolate and even remediate financial risk, or design ultra-efficient logistics and global supply chains that today cannot be effectively modeled on even the most powerful supercomputers.
WATSON TO THE RESCUE
Remember IBM’s Watson? In 2011, top former Jeopardy champions pitted their talents against Watson, a computer programmed to understand and speak natural human language (English). Watson won decisively. Today, Watson is using its natural language capabilities to cull through massive volumes of data in microseconds to do everything from helping doctors make complex medical diagnoses to delivering unbeatable customer service to hotel guests. Any business can tap IBM’s Watson capabilities in the cloud. You don’t have to invest in a supercomputer or gather massive amounts of data, or write analytical programs. Just ask Watson in plain English and it will quickly answer you. In fact, you can go to Watson right now in the IBM Cloud and create your own bot (automated robot) in the form of a virtual agent to handle customer service. It’s so easy that executives can do it themselves, leaving the programmers and geeks at home. Why should they have all the fun? You expect exciting advances from new technologies like Quantum Computing and Watson, but what about the mainframe, a 50-year-old technology? When was the last time a C-level executive ever got excited by a mainframe? This is the technology that has spent decades keeping the transaction processing lights on and it continues to handle the bulk of daily financial transactions every day.
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ELIMINATE COMPLIANCE HEADACHES WITH THE Z MAINFRAME
It also ends the costly compliance fire drill your staff goes through before every auditor visit. You know, where everyone drops their customer work and scrambles to make sure the data and systems are secure. Manual encryption entails classifying all your data to determine which data must really be encrypted since the time and effort required prevents most organizations from encrypting everything. Encryption also consumes system resources, another reason to limit it only to absolutely essential data at risk.
The new Z comes with pervasive encryption. It automatically encrypts all your data from the moment it’s created and keeps it encrypted throughout the life of the data. Although encryption is widely accepted as the best way to keep data safe, only a small percentage, a mere 4% of the 9 billion records breached since 2013, were encrypted. With the Z and automatic pervasive encryption, IBM could change that from 4% to 100%. Now you can sleep better, confident that you won’t wake up facing the nightmare of a costly massive data breach like the execs at Equifax did just a few months ago.
Unfortunately, you don’t know now what data is at the greatest risk or represents the biggest value should it be compromised. The Z eliminates all of this. You just get encryption of everything automatically. It’s baked into the silicon so you don’t even pay extra for it. It also doesn’t impact service levels. You never notice it.
The latest mainframe, the z14 or, as IBM now calls it, the Z, can change your business overnight, starting with the elimination of compliance headaches and security threats. Have you lost any sleep worrying about hackers breaking into your systems and corrupting or compromising your data? Or maybe you’re concerned with the cost of a data breach. The new Z makes that a thing of the past.
ENCRYPTION OF EVERYTHING AUTOMATICALLY
The Z changes everything from this point going forward. IBM has committed a 4x increase in silicon dedicated just to cryptographic algorithms for pervasive encryption. The Z encrypts all data associated with an entire application, cloud service and database—automatically. This amounts to bulk encryption at cloud scale made possible by a massive 7x increase in cryptographic performance over even previous mainframes. This is 18x faster than comparable PC-based x86 systems.
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ENHANCED SECURITY WITH THE NEW MAINFRAME
When it comes to security, the Z truly is a game changer. And it finally will get compliance auditors off your organization’s case once they realize how extensive and bullet-proof Z protection is. The bottom line: no additional cost, no work, no impact on your running workloads, and no worries about your data being compromised, stolen, or hacked. With the Z’s pervasive encryption if someone calls with a ransomware demand you just ignore them. Any data they think they may hold captive is worthless to them; it already has been encrypted and key protected beyond reach.
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BLOCKCHAIN ON THE MAINFRAME
One of the most attractive concepts introduced in the last five years by the FinTech revolution is blockchain, the distributed ledger / database / whatever technology. Surprisingly to some, the Z mainframe appears ideally suited for blockchain due to its security, scalability, performance, and flexibility—the same mainframe capabilities organizations have relied on for years. For example, in the food segment, IBM’s blockchain platform connects growers, suppliers, processors, distributors, retailers, and regulators by allowing permissioned access to information regarding the origin and state of a particular food item at any point in the path from grower to consumer. Just think, you’ll prevent stomach aches and avoid the risk of corporate litigation.
NEW TRANSFORMATIONAL TECHNOLOGIES FOR BUSINESS
Today’s executives should be aware of any budding transformational technologies like quantum computing, newly introduced and effective technologies like blockchain, and dramatic improvements to existing technologies like the z14 mainframe. Technological leadership can now really make a difference to business operations, especially in the arena of guarding against cyberthreats that are growing and diversifying at an alarming rate. With these transformational technologies your organization can develop strategic business initiatives that will ensure a competitive advantage and increased market share and profitability.
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TH E E TE RNAL MOVE ME NT Ulysse Nardin, from the movement of the sea to the perpetual innovation of Haute Horlogerie. For over 170 years, the powerful movement of the ocean has inspired Ulysse Nardin in its singular quest: to push back the limits of mechanical watchmaking, time and time again.
BOB DYLAN
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thinks your sustainability is questionable at best By Jason S. Norman, Managing Director, Attego ESG Impact Solutions
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The famous Bob Dylan song, “The times they are a-changin’,” has seemingly prophetic lyrics that can be applied to the state of modern business practices—so accurately that it borders on the scary. And, as the song goes on to describe how “Your old road is rapidly agin’,” the message is clear: businesses of all types need to create a new, more sustainable path to success or be left behind.
Embracing non-tangible elements
In the new millennium, being good at what you do is no longer good enough—you must also be great at doing it the right way. It’s with this new paradigm that you and your organization must embrace not only the concepts and surrounding hotbutton topics like diversity, transparency, and sustainability, but also you must live and breathe it, measure it, and ultimately manage it. Despite their non-technical status, these nontangible elements will dramatically impact your ability to function. Demands are also changing, and when it comes to failing to meet those demands, the stakes are higher than ever before. Ask your shareholders. Ask the media. Ask investors, particularly as we move forward into an investment era soon to be dominated by millennials and other young money.
Living in a new world
Simply put, we live in a new world—one where viral communication dominates our every move. With Facebook, Twitter, LinkedIn, Instagram, Snapchat, and so on, we have unprecedented connectivity, giving us all the power to create news, real or fake, and to spread that news around the world in mere seconds. And it’s this viral connectivity that defines the lasting effects of a crisis because, to put it bluntly, the internet never forgets … and rarely forgives: because individuals anywhere and everywhere can buy affordable handheld megaphones to amplify their personal soapboxes. Because your competition is more plugged in than ever before and will be ready if you stumble. And because the internet can be controlled by anyone who has the budget, the talent, the desire, and the nefarious background—just ask the Ukraine.
The question becomes: how does one embrace these new challenges? 1. The volume and velocity of data has created constant noise that can be hard to navigate. This means it can be difficult to get the right information—the information you need. Finding a partner who specializes in obtaining and managing that data effectively will be increasingly important—it’s the only way to mitigate and combat everpresent risks. 2. Although the world has gone digital, let’s not forget that it’s people who still matter the most. Failing to understand how people feel about your operations, and how they are likely to behave as a result, can have lasting consequences. Being able to connect with and understand everyone involved is critical. 3. Organizations are engaging in solutions that continually leave money on the table. Even when they’re committed to doing things the right way, their efforts are limited by resource constraints, lack of integration and coordination, or failure to capitalize on efficiencies and opportunities. Being able to fix those challenges can fund other important business goals—you know, such as points one and two.
Sustainability is only a means to an end
The important lesson here is that sustainability is only a means to an end. Achieving sustainability allows longerterm, successful operations that are better able to adapt to changes. Having the right data and knowing how to use it. Understanding public perception and attitudes. Creating shared value. These address the critical gaps that all too often cause sustainability investments and initiatives to suffer. Or, as Bob Dylan puts it: “And admit that the waters around you have grown. And accept it that soon you’ll be drenched to the bone.”
But to be crystal clear, this isn’t fear-mongering, but rather a simple acknowledgment of the new status quo. And despite the challenges of our new digital age, the need to effectively pursue sustainable operations remains unchanged.
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COME OUR NEW MACHINE OVERLORDS BY PAUL HOGG, CEO, INTELECA IT BUSINESS SOLUTIONS
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It’s been a while since my last overly alarmist IT security rant, and with the holiday season just past—when millions of IoT devices flooded our homes and offices—I figure what better time to scare the crap out of the general public. But, in this instance, it’s not actually about scaring people. It’s more about acknowledging and accepting the human condition for what it is, and working to mitigate risk against it. Case in point, the far-too-many aspects of the IT security arms race.
THE HUMAN FACTOR PLAYS INTO ALMOST ALL OF IT
After all, it’s humans who build the networks, it’s humans who write the code to attack the networks, and it’s humans who in turn work to defend said networks. Simply put, technology has little to do with technological warfare … sort of. The best way to approach this on a human level is to look closely at all those involved in preparing for and fighting against cyberattacks. It introduces a new perspective: how we all need to work together, and who we need to work with.
1. THE MAGICAL IT DEPARTMENT CAN DO ANYTHING
3. FOLKS OUTSIDE IT ARE SOMETIMES THE ATTACKER’S BEST FRIEND
Firstly, there is IT—the department within any organization that is generally responsible for making any company function on a day-to-day basis. It’s this department that takes the brunt of the abuse from both the nefarious outside cyber attackers, to the crushing expectations of those who live inside the four walls—those who think IT people can and will be able to do absolutely any task no matter the complexity. A tough place to be, right? History dictates a view of IT that falls into expectations that can only be described as magical. An all-seeing, all-knowing group of people who will keep us safe, warm, and business ready at all times. And when new technology is introduced, that very magic is wielded in such a way that everyone in IT is instantly endowed with all knowledge as though they were plugged into The Matrix like Keanu Reeves. And, as an IT person myself, I think I speak for all of us when I say, “NOT FAIR!”—especially when it concerns IT security. Knowing the time and effort it takes to become an expert in just one aspect of technology, people need to understand that IT departments need help. Engaging with outside IT security specialists is not admitting defeat— it’s admitting that you are smart enough to hire the right people to help defend the masses.
Then we have the folks outside IT. The people you smile at in the halls and at company events; the people you work with on inter-departmental projects; and people you perhaps bowl with. So, what do they have to do with IT security … a hell of a lot! It’s the people who are outside of the know who can sometimes be unwittingly the attacker’s best friend, and the worst enemy to those who employ them. Why? Again, the human condition. Without knowing the seedy underbelly of IT and all things bad in the world, they can let the Trojan horse through the proverbial gates. Not because they are in anyway involved with the socalled attackers, more because they love horses. Not understanding cybersecurity is a human issue that revolves around constant education. Giving real-world examples of how they can be compromised, can transform them from would-be and unknowing accomplices to heavily armed guards at the cyber gate. Lifting the veil to teach them the do’s and don’ts, along with letting them know they shouldn’t be embarrassed if and when they become a victim, will help lock down the fortress that much more. Again, addressing the human factor without getting too embroiled in technology.
2. PARTNERS KEEPING WOULD-BE ATTACKERS AT BAY Which, of course, brings us to the next human element: the partners. Engaging with IT security partners chips away at human vulnerability. It does away with hubris, as well as a lack of confidence, creating a level playing field whereby two entities come together for the common good to establish the right technology, the right infrastructure, the right protocols, and the right habits all designed as an interconnected ecosystem of smart people doing smart things to keep would-be attackers at bay.
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HUMANS, SHORE UP YOUR DEFENCES AGAINST CYBERATTACKS OR ELSE
As our world continues to evolve, there will be more attacks on the horizon. From DDoS attacks leveraging IoT devices, to mobile intrusions, to ransomeware, and more—no one can prevent attacks like us humans. And if we should ever fall to the rise of the machines like some post-apocalyptic Christian Bale movie, I for one welcome our new machine overlords and hope for a job that doesn’t involve a wireless shock collar—although as an IoT device it may be easy to hack and use to defeat the robots … only time and human history will tell.
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Part I
IMPROVING DATACENTER PERFORMANCE TO SAVE MONEY, CAN COST YOU
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BY KEITH ALLINGHAM, MARKETING MANAGER, DATAKINETICS | DATA PERFORMANCE & OPTIMIZATION
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Business has been booming, for the most part, for large enterprises in the US and across the globe for the last seven to eight years. The continuous growth in the Dow-Jones, the SSE Composite Index, DAX, Nikkei, FTSE, and most other indices, attests to this. But increases in business are a double-edged sword as they bring with them increases in business transaction processing costs. And that goes doubly today, as more and more items are purchased with credit cards and with debit cards than ever before. And smaller, less expensive items are being purchased in this way, which all tend to increase the costs per transaction. As corporate IT organizations cope with rising costs all around—with rising hardware and software costs, rising infrastructure costs, and rising personnel costs piled on top—CIOs and managers strive to find ways to balance or offset as much as is practical. For better or for worse, there are four solutions that seem to be the goto solutions for IT leadership, some effective, others not so much, and none of them particularly creative.
CONTEMPORARY GO-TO SOLUTIONS Together, these fall into four general categories: good housekeeping, migrating off the mainframe, pay-the-man, and give-up solutions. Of these, one is just good common sense, but the other three are problematic and have serious drawbacks.
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GOOD HOUSEKEEPING These are common-sense solutions that require little if any added operational expense, other than your personnel spending time on them. These include things like getting rid of the shelfware: the software that has been purchased, installed, but is not being used, and in some cases never used. The sad part of the shelfware story is that the IT organization is paying for this software everywhere it’s installed: on the mainframe (on every LPAR on which it’s installed), and on every server in the server farm (local and outsourced) on which it’s installed. It’s estimated that in the US alone, almost $10 billion is wasted every year on unused software. Is it worth it to look into this? You bet it is. Another housekeeping challenge is duplication: multiple software solutions that do the same thing. Obviously, it would make sense to investigate and to settle on one solution rather than on more than one, where possible. It will more than likely require an exhaustive audit project but, at the end of it, if you can eliminate a few unnecessary applications it pays for itself. These are just two examples of good housekeeping practices that can save on operational costs—every single year.
MIGRATE FROM THE MAINFRAME This is the never-ending debate that usually starts with someone talking about how costly mainframe hardware is, and how inexpensive commodity servers are—a very common applesto-oranges argument. When comparing apples-to-apples, however, it quickly becomes apparent that mainframe computing is less costly than distributed computing within large transaction processing environments. The numbers really show themselves when all aspects of a computing solution are put on the table for a fair and reasonable comparison. Things like power consumption, hardware costs for equal (five-nines) environments, software costs (for all servers in the datacenter), support personnel costs, air conditioning, server room footprint, upgrade time/cost, and more. This is not always done; for example, the support personnel requirements for distributed server environments are often hidden elsewhere in the budget. The problem with hidden costs is that any cost advantage that you hope will come out the other end, just won’t. Hiding personnel costs isn’t going to make a difference when those bills come in for server software.
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But more than that, everything you do now on the mainframe will have to be duplicated on your networked servers, and that includes your COBOL applications that represent decades of investment in IP. Rebuilding from the ground up is not going to be a trivial task, and there’ll be no hiding a project that may very well span years of work—much of it reinventing the wheel— while you continue to run (and pay for) your mainframe systems during the entire migration process. And at the end, there may be one or two applications that you simply cannot port to the server network. If you’re going for this option, you’d better do your homework, because the unknowns will hurt when they come around to bite you.
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PAY-THE-MAN This is self-explanatory. It can be a quick-fix solution and, in some cases, it works just fine, thank you very much. But the truth is, many problems cannot be solved just by throwing money at them. Usually, there is a time component that goes hand-in-hand with the pay-the-man solution. In instances where workloads are growing and machine capacity has been reached, shelling out to buy more machine—a mainframe upgrade, or the addition of new banks of servers— can actually work out well. And sometimes it can be a relatively quick fix. Problem solved by throwing cash at it? That’s sometimes just fine for a large multi-billion-dollar company, or a large government department with a huge budget. But some problems just can’t be solved quickly and easily by a big wad of cash. If your batch windows are filling up fast, you might find that no amount of extra machine can solve the problem. If you need to provide new mobile access to legacy systems, you might find that you’ll need a couple of years’ worth of development and consulting time on top of that big wad of cash to solve the problem. Throwing a ton of money at a serious server security issue may not work either—you may be forced to tear things down and rebuild them—and that’s never a quick fix.
GIVE-UP I use the term “give-up” solutions to make a point: nobody is just throwing their hands in the air and giving up. When faced with complex problems and unsatisfactory solutions, there isn’t always a quick fix. Sometimes what seems like the best solution in the here-and-now, is to wait. When the recommended solutions are all large capital expenditure solutions like getting off the mainframe, complete application rebuilds from the ground up, things of that nature, it’s often wise not to make snap decisions, or more to the point, uninformed decisions. The “give up” option often looks like the least painful path, at least at the present. There may be pain and pressure to change, but if change in and of itself will bring pain, then why jump in? Also budgetary reasons may exist for the “do nothing” option. Sure, we need to make a change, but whose department pays for it? The hurry-up-and-wait scenario is a pretty common thing in enterprise IT; it always has been. It’s not about incompetence, or laziness, or any other seemingly negative reason. It’s about uncertainty and risk avoidance. And it’s understandable as there are plenty of disaster stories out there, caused by knee-jerk or even reckless decisions that have resulted in cost overruns and ended careers. The key is to look at all of the solutions available to you. Not just the two or three most common solutions, or the favorite solutions of your IT services partner, but all of the solutions. You may find some that are less costly, some that provide good ROI and payback, that do not require capex-heavy, highly-visible multi-year building projects, and even some that are low-risk and high-reward type solutions.
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SIX OTHER SOLUTIONS
There are also out there that are not as well known, but can be both creative and highly effective—we’ll explore these in Part II of this series in Direction IT Magazine Issue #8.
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Chief Customer Officer, DataKinetics | Data Performance & Optimization
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As someone who has spent the majority of his career in marketing, trust me when I say that I have seen my fair share of persona documentation. In fact, for almost two decades in the field, marketing personas were a staple of any good marketing plan—the major indicator as to where to point the proverbial spears. However, with a new era upon us—one that centers directly on mobility in all its definitions—the marketing landscape has changed forever. Now, customer personas are nothing more than an aged practice harkening back to a simpler time in marketing and sales: buying options were limited and the customer journey was well defined and unilateral. Today, that is no longer the case.
INTRODUCING THE SINGLE-USER-PROFILE Now, with the introduction of omni-channel customer engagement, the customer persona is almost worthless: the generalizations of a buyer type have been replaced with single-user-profile information that is all about the real individual—and not a hand-drawn facsimile of a fictitious person. Now, it’s at this point that I’m sure there are other marketers reading this who can feel their blood pressure rising in disagreement. They’re saying, that’s a preposterous proclamation, it’s especially blatant and disparaging of the sacred customer persona.
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But here’s the reason why it is in fact, dead: A close friend of mine (and a C-level marketer himself) had a hilarious conversation a few weeks ago about this topic—one that centered on the two of us as individuals and that as a persona we are in fact the same person. For instance, we have the same job description, the same income, the same family structure and dynamic, the same age, even live in the same neighborhood. Furthermore, we have the same hobbies so we shop for many of the same things. Hell, our families even travel together and stay at the same places.
So, for all the marketers out there we would represent the ideal match and alignment with a buyer persona, correct? Wrong. In this case, although we have almost everything in common, our buying habits in terms of how we shop are polar opposites. Where I’m the guy who needs to touch and feel merchandise, speak with the in-store staff, inspect everything before purchasing, my friend is the opposite. He hates bricks-and-mortar interaction. In fact, he has gone so far as to buy a vacuum cleaner online and have it shipped to his house within 48 hours, even though the same item was available for a cheaper price at a store just five minutes from his house. Thus, how does this play out in the eyes of marketers? Sure, the argument can be made that this is simply two variants of the same persona, but let’s do the math. If every persona has multiple variants, and each variant then crosses over every so often to the other variants, then how does one calculate the journey when more and more variables are interjected?
DEFINING THE CUSTOMER JOURNEY Then there’s the customer journey. Remember the good old days when we as marketers were responsible for defining the customer journey? It was a journey that resided in a wellestablished set of rules and boundaries in a unidirectional manner that brought the customer through set stages in a particular order. How I miss those days. But now it’s a new world. A world where customers want to define their own journeys. With data being the new currency, customers want that data leveraged so that marketing materials, buying options, and their overarching journey is defined by them—not by us. Being able to continually interact with their favorite stores online, in-app, and in-store— sometimes simultaneously—is the new paradigm: information continually building and being synthesized to create an experience unique to an individual. And, of course, with that comes an expectation they can shop how, when, and where they want under any circumstances and can receive highly customized offers for them and them alone. How then does this play out? With so many tiny variants pertaining to so many types of shopping experiences, the old idea of customer persona is gone and replaced with an actual person. The person’s likes, dislikes, habits, wants and needs all calculated in real time to enable them to control the customer journey. So, if personas drive your business, be prepared for the biggest evolution the world has ever seen, or you’ll soon find out you don’t know people at all.
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