STRATEGIC BUSINESS VIRTUALIZATION Creating An Adaptive Virtual Enterprise Think Big Jack Wilson Enterprise Architect Amerisure Insurance jwilson@amerisure.com
In 30+ years of being in IT this is the ONLY solution I ve developed whose reality EXCEEDED my expectations
GOALS of this PRESENTATION Introduce Business Virtualization as a broad strategic approach that will transform an enterprise and increase competitiveness (a business, not exclusively a technical perspective) Demonstrate, via the Amerisure Insurance case study, of how a real organization made a major metamorphosis and is now reaping the benefits (reality not theory) >>>> Stop me and ask questions at any point <<<<
BUSINESS VIRTUALIZATION The concept is business functionality from Anywhere, Anytime, from Any device home airport hotel
BUSINESS VIRTUALIZATION This entails the removal of the need to be in a specific location in order to do business (ubiquitous access to systems and data)
BUSINESS VIRTUALIZATION Creating a flexible architecture that can respond quickly to changes in business strategy
BUSINESS VIRTUALIZATION Business Virtualization s largest organizational impact is desktop virtualization
TELL THE STORY Amerisure Case Study Business Issues: Market changing quickly, more competition Increased security and compliance issues
TELL THE STORY Business Issues: Business is now information intense, IT needed to provide some competitive edge (not high cost to stand in place) IT needs to be viewed as Business Peers, NOT Wizards
Layers of Technology Data Center as Archeological Dig Hardware Operating Systems Applications Databases Nothing ever went away Anything new simply added additional layers
The Approach to accommodate disparate technologies This has often created a nightmare infrastructure that in many ways ties our hands If it s not broke don t fix it
STRATEGIC APPROACH Enterprise Architect as Change Agent Strategy to virtualize the business -Strategic not Tactical approach -Focus to complete strategic transformation
STRATEGIC APPROACH Moving from where we are complex legacy to virtual & simple infrastructure
STRATEGIC APPROACH Use proven technologies with a creative, strategic twist Settlers not Pioneers
STRATEGIC APPROACH Streamline infrastructure, remove layers of technology Simplify remote, centralize complex Southwest Airline model
Dramatic Transformation Legacy/Complex (before) 800 difficult to maintain PC desktops Complex application update process Virtual/Simple (after) 10 Citrix servers to maintain in central Data Center Xen App Platinum Simple Wyse thin clients only, replaced all PC desktops
Dramatic Transformation Legacy/Complex (before) Complex / difficult to manage remote locations Two servers in each remote location Third party hardware support, expensive & time consuming Virtual/Simple (after) Simple / streamlined remote locations Routers in remote locations, all servers in HQ data center
Dramatic Transformation Legacy/Complex (before) Virtual/Simple (after) Small, tactical use of Citrix, poorly planned and supported Strategic use of Citrix XenApp, now a staff core competency
Dramatic Transformation Legacy (before) Multiple signons and passwords (many helpdesk calls ) Limited ability to tune infrastructure Virtual (after) Citrix Password Manager single signon, self service password resets Everything in Citrix, monitored and tuned with Edgesight
Dramatic Transformation Legacy/Complex (before) Little control over software in organization 388 applications inventory, little or no ownership Virtual/Simple (after) Total control over software through governance process (all apps on Citrix farm servers) Rationalized applications inventory now 65 with assigned IT owners
Dramatic Transformation Legacy/Complex (before) Incompatibility issues, Word Adobe, etc. Virtual/Simple (after) No incompatibility issues, everyone using same applications
Dramatic Transformation Legacy/Complex (before) Multiple PC operating systems and service packs, viruses scan (Windows XP and Windows 2000) Vista upgrade issues Virtual/Simple (after) Eliminated 2 to 3 PC refresh cycles completely, saving millions of dollars and business disruption Eliminated the entire Desktop layer of the infrastructure (no Vista issues)
PRIMARY BENEFITS Tremendous business productivity enhancement (especially for knowledge workers) Time magazine article Friday, May 30 th, 2008 Dubbed ROWE, or Results-Only Work Environment: the concept can be boiled down to the following: EACH PERSON IS FREE TO DO WHATEVER THEY WANT, WHENEVER THEY WANT, AS LONG AS THE WORK GETS DONE. In other words, Best Buy allows its workers limitless flexibility in the hours they keep and the location they choose to do business so long as project goals are satisfied. Sound kooky? It is. So kooky that Best Buy has seen productivity soar 41% between 2005 and 2007 on ROWE teams. Meanwhile, voluntary turnover plunged 90%, saving the company some $16 million a year.
PRIMARY BENEFITS Substantial savings in hardware, personnel, business continuity, disaster recovery, security
PRIMARY BENEFITS Allowed additional virtualization of the entire organization and business
PRIMARY BENEFITS Allowed additional virtualization of the entire organization and business -Thin Client Notebooks (total security, ubiquitous access cellular air card) -Virtual Faxes (no hardware/software comes to email) -Imaging (paperless, dual-monitors) -Virtual Meetings (GoToMeeting, cut travel, vendor consulting)
ROI CONSIDERATIONS Much lower TCO costs, - Transformation paid for by one PC refresh - Bonus ability to skip two to three PC refresh cycles 2006 2009 2012 2015 TC/Citrix skip $1.5 skip $1.5 skip?? transformation refresh refresh
ROI CONSIDERATIONS Vastly improved productivity through simple, intuitive remote access -bad weather -personal issues -telecommuting -flu outbreak -building shutdown
ROI CONSIDERATIONS Dramatic drop in helpdesk/workstation calls, staff reduction in helpdesk/workstation area (approximately 75-80%, staff from 6 to 1)
ROI CONSIDERATIONS Elimination of desktop operating system layer and reduced software costs Eliminate Vista as an Issue
ANCILLARY BENEFITS Incredible GREEN infrastructure (10% power usage of old legacy infrastructure)
ANCILLARY BENEFITS Security improved, no local C: drives and all data backed up in data center Control of infrastructure through governance process
LESSONS LEARNED part 1 MUST approach from Strategic Business perspective, not a tactical IT perspective Leaders must lead, there has to be strong executive leadership to move expeditiously Approach as a Revolution not Evolution (most of the pain in transition) Must have Focused, High-Performance, Experts to quickly execute the transition (all benefits come once virtualization is implemented)
90% of the Shuttle s energy is expended getting the first few miles off the launch pad
LESSONS LEARNED part 2 Once through transition, maintenance of the infrastructure vastly simplified, less support staff needed to function Total Thin Client approach best, (hybrid with PC mixture harder to support) It is possible to find a creative way to get everything to work within this infrastructure (95% straightforward, 5% some variation) Must have a plan and strategy BEFORE POC/Pilot
Sailors should operate the ship, Shipbuilder should build it The BIG MISTAKE many companies make is to have current staff try to take on this major effort
Virtual Savant Approach 5 phases Flash Assessment Quick understanding of current state, estimate ROI Planning Phase (critical) Executive leader chosen and totally briefed on the process Develop options, with a recommended approach Give accurate ROI, allows Go/NoGo early POC/Pilot Phase Critical applications tested Scaled Pilot to work out logistic issues Fully Implementation Phase Complete deployment, breaking gravity/building ship Turnover Phase Complete, documented, mentored turnover to company sailors
fortes fortuna adiuvat fortune favors the brave Those creating a Strategic Virtual Business Environment will be seen as Innovative Thought Leaders in their organization and Industry Ernest Shackleton Antarctic Explorer
QUESTIONS and FEEDBACK Jack Wilson Enterprise Architect Amerisure Insurance Jwilson@amerisure.com Cell 248.766.4869