Itsdi Master

ITSDI MASTER
PPT
COMBINED SESSIONS
ORGANIZATION LIFE CYCLE
AND
METRICS
WHAT IS ORG LIFE CYCLE
• Four stages in org life cycle
• Stage 1 – Birth Stage
• Like minded people
• Entrepreneur who identifies the new market need or an improved product that could meet existing needs is the center of
this stage. He gathers resources, produces and sells the product by himself. When the operational tasks exceed his capacity,
it gives rise to actual organization.
• Three main forces at this stage is imperative to the successful development of the organization
• • Personality of the founding team (Mission, Vision and the Passion).
• • Time and Place of Origin (The political, technological and social climate-does it welcome the product/offering of the
company)
• • Human Capital
• Metrices :
• First Customer
• Revenue Growth
• Adhoc process
ORG LIFE CYCLE..CONTD..
• Stage 2- Growth Stage
• Organization concentrates more on growth rather than profits
• characterized by rapid growth
• need for formal rules and procedures
• Revenue Goal Achievement rather than Efficiency and Optimization
• The Marketing department is at the core driving the organization and setting targets
• Metrices:
• Customer acquisition
• Revenue Growth
• Process definition, piloting the process
• Organization Structure
• Repeat Business
ORG LIFE CYCLE…CONTD..
• Stage 3- Maturity Stage
• organizational processes take shape and become mature
• organization works on the core competencies
• Operations take the centre stage
• Metrices:
• Customer Acquisition
• Revenue growth
• Process Maturity
• Productivity
• Quality
• Efficiency
• Repeat Business
• Stage 4 – Decline/ Revitalization Stage
• Absolute decline is when the firm out rightly loses market share
• Stagnation (Gradual performance decline)
• Complacency
• The organization starts to lose its agility
• organizations go through radical rethinking
• major restructuring
• BPR
• Metrices:
• Customer Acquisition
• Revenue Growth
• Productivity, Quality, Efficiency and Effectiveness
• Repeat Business
• R&D Metrics
• No of new products/ Existing or total available Products
• No of new ideas accepted / Total Number of ideas
• Revenue earned from new idea / Total revenue
RPG CASE
• Perspective – to improve operational efficiency
• Industry characteristics
• Music industry
• Creative
• Technology
• FAD
• Fusion, remix
• Piracy
• Patent
• Regulations
ONLINE QUIZ
RPG..CONTD..
• Industry Analysis..contd..
• PESTEL Analysis
• Organization
• VMG
• Vision – what the organization stands for: To be the best in class in music industry at international level
• Mission – not given (use technology for better quality of music)
• Goal – not given (is usually derived from Balanced Scorecard/Technology Scorecard)
• Stakeholders Objectives
• Musicians - Pride
• Customers Value for money
• Technology partners ROI, Pride
• Supplier ROI
• Retailer ROI
• Employees Career progression
• Family Pride, work life balance
• Environment - Macro, Micro – (micro – immediate family, society at large); macro – economy growth
RPG..CONTD..
• Problems/Issues
• Delay in orders
• Delay in supply
• Overstock/ Stock out
• Lack of trust
• Inaccurate forecasting
• Market share
• Culture/Legacy system
• Third/Fourth stage OLC
• Complacency, Already leader (attitude), Not so many new music partners
RPG..CONTD..
Delay in orders Delay in record keeping
Delay in supply
ROOT CAUSEDelay in updating the records
ANALYSIS
Overstock/ Stock out Data accuracy
Lack of trust Culture/Vision
Inaccurate forecasting Data accuracy
Market share Turnaround time
Culture/Legacy system Vision not shared

RPG..CONTD..
People Training Process

Record keeping
Culture
Value Compliance
Vision
Market
Share
Monitoring and Controlling
Technology Environment
TECHNOLOGY SCORECARD..CONTD..
L0 Operations
Scheduling L1
Cabin
Crew
Dispatcher
Flight
Support
Cargo
Ground
Staff
Aircraft
Scheduling
Route
Plans L2
L0 Sales &
Marketing
L1
Promotion Pricing
Advertisement
L2
Seasonal Offer
Digital
Marketing
Price Desicion Package Offer
Loyalty
Program
TECHNOLOGY SCORECARD.CONTD..
– Set Business Goals (Please give rational for setting the goal and explain your assumptions)
– Set Business Metrics (use industry standards)
– Formulate Functional Goals
• Increase sales and market share while offering low fares
• On-time service delivery, efficient operations and improved services
• On-time in all respects - customers to employees
– Set Functional Metrics
• Operations metrics
– Cost reduction
– Increase Customer satisfaction
• Marketing metrics
– Increase market share
– Revenue Growth
TECHNOLOGY SCORECARD..CONTD..
Department Operations Sales and marketing Reservation and ticketing Human Resources
(30%) (25%) (25%) (20%)
Optimization of the cycle Enhance Check-in Generate better sales revenue Improve the process of
time available for better counter experience and Recruitment and hiring
efficiency ensure better efficiency
during check in

Functional
Goals
Enhance the experience for Streamlining the online Capitalize and increase the Better arrangements for
the customer and increase ticketing process market share training programmes
in customer satisfaction which will enhance the
learning and help the
employees to familiarize
themselves with the new
system
Bring optimization with Upgrading Customer Remodel and ensure better Improvement in the
respect to the usage of the satisfaction at different pricing strategy Compensation structure
aircrafts levels
Enhance the Operational Enhance Performance

competence Appraisal and assessment
method
IT Strategy
• What is IT Strategy
• Evolution of ITS
• Factors affecting ITS
What is IT Strategy
• It is both
– Competitive necessity: To do business in any industry
– Competitive advantage: Developing products, services, processes, or
capabilities, giving the company a superior position vis-à-vis
competitors.
• Comprises
– IT application strategy
– Technology management strategy for IT
– Change management strategy
What is IT Strategy…contd.
• DEVELOPING IT STRATEGY FOR COMPETITIVE
ADVANTAGE
– Understanding the strategic dimension
– Exploring the points of opportunity as well as areas of concern
– Deciding whether corporate strategy should drive IT or vice versa
– Setting long-term direction for IT.
What is IT Strategy…contd..
• BUSINESS – IT ALIGNMENT
 Alignment between IT and business means that IT delivers what businesses need to their satisfaction.
 IT also plays a strategic role in shaping new business strategy.
 Alignment must happen between four elements,
 Functional integration
 Strategic fit.
 Challenges of Business – IT alignment
 Absence of a well-articulated strategy
 Completeness, comprehensiveness and speed to gather the end-users’ /stakeholders requirements
 Uniform and seamless communication of the strategy, objectives and critical success factors to the entire
organization.
 Alignment Inhibitors
– Leadership level congruence
– IT’s ability to identify and partner with business
– IT’s ability to deliver.
IT Strategy as part of corporate strategy
Vision
Goals and
Objectives
Operational
Strategy
Strategy to Organization
achieve goals structure
and objectives
Control &
Information
Monitoring
System
mechanism
Threat of Brand equity Vendor Competitive Stakeholders
competitors (barrier to entry for management edge
competitors)
Market Capitalization
IT STRATEGY
Innovative differentiation
Marketing differentiation IT Support for strategy Revenue performance
Domain competency
Operational Competency
Low cost production IT support for core competency Profitability
Technological competencies
Domain competency
Digital strategy vs IT Strategy
• Four Ways of Distinguishing Between Digital and IT Strategies
– Content vs Technology Strategy
• digital is concerned with the content distributed through technological channels
• IT deals with system that will host it
– Proactive Approach vs Reactive Approach
• Business answer
• Technological answer
– Technology that Transforms business vs evolving technology
• Digital strategy examines the ways in which technology can be leveraged to transform
practices, processes and procedures within an organisation, which means modifying business
model
• IT strategy enables business
IT Strategy vs E-business strategy
• IT Strategy an IT strategy is typically a long-term action plan for
achieving a goal
• E-strategy will determine the direction of your business and what
it will look like in the future except that interactions happen over
intranet and internet
• IT Strategy is an alignment between business goal and systems
(hardware and software)
• E-Strategy is viewed as a link between the firm and its
environment
Evolution of IT Strategy
IT Strategy has gone through four phases
1. Automation strategy
– increases productivity by automating different processes, ex: ticket booking by irctc
– Automation is achieved (mostly) by the IT service vendors
– who write code/programmes that follow the same steps of activities but make it
faster, ex: billing process, ex: SKU details, price, quantity and then multiplying quantity
with prices to get the total sum
– help to make the multiplications faster and then add them to find the total amount
– Increases productivity
– But does not remove inefficiencies
– redundancy of the activities will remain
Evolution of IT Strategy..contd..
2. E-strategy (functional strategy):
– we implement best practices/ good practices
– Start with VMG framework,
– understand goals and business strategy
– List down different functions/ departments such as Marketing, Manufacturing, HR etc. (L0, L1, L2 diagrams)
– each function list down different processes
• Marketing – Billing, Point of sales (POS), Forecasting etc.
• Manufacturing – Inventory, Vendor Selection, Line of Balance (LOB), Assembly line processes etc.
• HR – T&D, Performance Management System, Recruitment processes etc
– Look at the issues and challenges faced by the organization in conjunction with business strategy
• These issues and challenges as well as business strategies will throw the following factors for determining process integration.
• Some of the factors are – OLC, Work Flow, Schedule of Authorization, real time data requirement etc.
– Application Strategy
• decide which applications will help to meet the process integrations
• application strategy will be provided through solutions such as R/3, Oracle Financial, Axapta
• in-house developed applications (IPM PLUS in Infosys, Risk management tool in Wipro etc.
• Solutions will be combinations of off the shelf products such as R/3, Oracle Financial
• PLUS services (programs that have been written)
• PLUS APIs that are required to ensure that SOA architecture is ensured
• This will help in seamless integration of data among tablets, mobiles, desktops, laptops across platforms such as Windows, Linux etc.
3. IT Strategy for enabling business
start with VMG framework
then start with business goals and business strategy
prioritize the functional areas and decide which functions to
integrate
follow exactly the steps mentioned in point no. 2
4. IT-Led Strategy
– use the existing portals and technology capabilities
– decide new business directions, ex: Examples: Amazon’s Kindle Fire
HD, IRCTC’s hotel and flight bookings; , ISRO has also adopted this
approach
In summary,
Automation Strategy will lead to increase productivity, reliability
E-strategy will lead to removing redundant process (which removes inefficiency of the existing processes), central database, increase data integrity, increases transparency, share
data with all role owners.
These benefits are in addition to benefits of automation strategy (i.e. increase in productivity, reliability)
IT Strategy will help in business alignment, helps achieve a part of business goals
achieving business alignment
removing redundant process
central database, increase data integrity, increases transparency,
share data with all role owners,
in addition to increase in productivity, reliability
IT Led Strategy
core capabilities that decide new business models
in addition to the benefits from IT Strategy (business alignment etc.)
it increases business goals, widens horizon for the company and new capabilities are formed
(IT Led Strategy) can be used in stage I and stage IV – some start ups, make technology as their core competency and use that core capabilities to define business model
Digital Strategy and BPR go hand in hand
Video1 & Online Poll
Factors affecting IT strategy
• Corporate objectives
• External and Internal drivers (Ch.11, Brien and Marakas, Management Information Systems –TMH)
• Real time project data availability
• Daily work done electronically with schedule of authorization
• Work Flow based approval system (process flow + role)
• One point data entry
• Metrics availability
– Utilization and productivity
– Cost of Quality
– Cost of operation
– Stakeholders satisfaction indices
• Support functions performance
• Data integrity
• Transparency
• Extent of sharing of best practices across organization (Integration of KM strategy)
• Compliance to statutory and legal requirement
Factors affecting IT strategy - 2
• Level of integration between production and finance
• Degree of process automation
• Level of Encryption needed
• The need for Business continuity and disaster recovery features
• Reliability of the system
– Availability
– Down time
• Preventive maintenance schedule
• Ease of use
• Architecture – Central or Distributed (cost of upgrade and maintenance)
• Total cost of ownership
• License cost
• AMC
• Special skill resource cost
• Energy and resource cost
• Hardware cost
• Cost of upgrade
Difference between Edge, Cloud and On premises
Computing
• A cloud is an IT environment that abstracts, pools, and
shares IT resources across a network
• An edge is a computing location at the edge of a network,
along with the hardware and software at those physical
locations
• AND is part of on premises computing
RB Case
So far….
We have discussed
What is IT Strategy
Evolution of ITS
Steps in ITS design
Factors affecting ITS
Now, we discuss Application Strategy
RB case
• Objectives:
– Overall Logistics Cost Control and reduction
– Feasibility of Multi Modal Transportation
• Industry – FMCG
– Less Margin
– High Volume
– Low Involvement
– High control
• Supply chain
• Own as much of supply chain as possible, why? (at what stage of OLC?)
• 3 PL – third party logistics
– PESTEL – Volatile Political, Fluctuations in forex, Inclusive social and health conscious, technology based innovations in SCM and product/service
design, Compliance for suppliers (chemicals related etc,), Carbon foot print
– PORTER’s
• Threat of new entrants High
• Threat of substitutes High
• Bargaining power of customers High
• Bargaining power of suppliers Low
• Competitive rivalryHigh
– READYFOR RE-ENGINEERING AND DIGITAL TRANSFORMATION

RB Case..contd.
• Organization
– VMG
– OLC Stage – III to IV
– Multi National
• Geographies, but monitoring at one place
• Compliance to different regulations
• Culture – diverse
• Customization – culture, regulations, pricing
• Economy of Scale
• Compared to locals
– Deep pockets
– Innovations, R&D practices shared
– Very high assets and turnover
– Network of branches
– Control
– Highly process oriented
– Spending on promotions high
– Good quality products
RB Case…contd.
• Organization Structure
– Function oriented
• Adv – Functional expertise
» Monitoring and Control – central
» Economy of Scale in supply chain ( resource utilization, purchase of raw
materials etc.)
» Control – Policy, Cost etc.
• Disadv – Agility
» Specificity of products requirements not met
» Product Categories different, but product management becomes difficult
RB…contd.
• System
– Planning – JD Edwards
– Forecasting – Manugistics
– Production and Distribution Planning – Oracle based
• Issues
– Production Plans – 3 months
– Forecasting is not immediate/dynamic and is data based
RB Case…contd.
SWOT Analysis
Strength
Deep Pockets
Good practices shared across countries
Strong promotions
Weakness
Agility
Responding to changes in customer needs
Opportunities
Acquiring local brands
New geographies
Threats
New products from local brands
Price war
Currency fluctuations – related to royalty payments to parent company
RB Case…contd.
• Issues
– Sales constantly growing, but
– Operation Cost increasing
– Monitoring below par performance
– Data based decisions
– Technology based monitoring
– Transaction volume high and poor control
– Organization Structure not tuned to product portfolio; information gathering and customized decisions improper
– Two parallel distribution network
• Manufacturing - CFA – Distributor – Retailer
• Manufacturing – Regional Godown – CFA – Distributor – Retailer
– It means two separate systems for data collection and decision making
– Planning data – JD Edwards; Forecasting – Manugistics; Production and Distribution Planning – Oracle based
• Data available, but seamless integration ?????
RB Case…contd.
ROOT CAUSE ANALYSIS
Operation Cost increasing Lack of effective monitoring
Data based decisions Data available, but not aggregated
Technology based monitoring Aggregation not done
Organization Structure Not in synch with decision making needs
Many systems Lack of long term IT objectives
WHAT IS ERP?
Integration of different systems
In-house PLUS Off the shelf products (R/3, Oracle financials etc.) and then customized and
configured PLUS developed through outsourced contracts
RB Case…contd.
• Comparisons of issues - RPG and RB
RPG RB
Data integrity Data integration
Data collection Data based decision
MIS not designed MIS not effective
Congruence Structure with Incongruence structure with
business goals business goals
Poor or no monitoring Ineffective monitoring
Decisions need to be data Decisions need to be analytics
based (next stage)
Innovation required Innovation required
Process Integration required Technology integration
required
Online Poll
Solutions for RB
• Design IT Strategy
 Understand VMG – particularly goals
 Goals will give you idea about speed of expansions
 Goals will lead to identification of processes and then relevant functions that will get impacted
– Here affected functions/departments are,
 Marketing (forecasting),
Sales (Revenue growth),
Warehouse (TAT, Time to deliver, Cash to cash cycle, Time to sale for each category, Logistics cost vs Sale, Stock out rate, ITO, Cost of inventory, Carrying cost)
– Prioritize the functions that need to be covered under IT Strategy
• Marketing (Forecasting)
• Sales
• Warehouse
• Logistics
• Manufacturing
– Application Strategy
• Need for business
– Seamless integration between Marketing, Sales, Warehouse, Logistics
– Ecommerce capabilities
• Existing Applications
– JD Edwards –, Sales
– Manugistics - Marketing
– Oracle – Manufacturing PLUS Logistics
• Need for new applications? Gap Analysis
• How to take care of rapid growth?
ANALYTICS BASEDSOLUTIONS
Design IT Strategy…contd.
VMG, Goals Find Functions Define
Find
in particular impacted Functional
impacted
metrices
processes
DRAW L0, If off the shelf, then
L1, L2 to Customize and
find Configure
impacted Decide
processes Application
In-house existing OR Strategy
buy Off the shelf OR Gap Analysis

Technology
Strategy Develop In-house OR
Outsource to IT Service
Providers
Design IT Strategy…contd.
Define Functional
VMG, Goals in Find impacted processes Find Functions impacted metrices
particular
Decide Application
Strategy
DRAW L0, L1, L2 to find impacted
processes Gap Analysis
If off the shelf, then Customize and
Configure
In-house existing OR
buy Off the shelf OR
Develop In-house OR
Providers
Technology
Strategy
Byju’s
• Industry (India)
– SDG no 4 ensures that all girls and boys complete free primary and secondary schooling by 2030
– Ensure inclusive and equitable quality education and promote lifelong learning opportunities for all
– PLUS 2 (K12) education
– Robust demand
– FDI allowed (100% allowed through direct route)
– Good life for children, hence good education
– Spend money to provide the best education
• Kota, FIITJEE, Narayana coaching centres
• Tution classes
– Market size US$ 101.1 billion in FY19
– Number of colleges and universities in India reached 39,931 and 993
– 37.4 million students
– Gross Enrolment Ratio in higher education reached 26.3 per cent in FY19
– the second largest market for E-learning after the US
– Faculty training poor
– Inadequate teaching in regular classes
Byju’s…contd.
• PESTLE – 1. Private institutes mushrooming, self managing, self financing (including
IITs, IIMs); 2. FDI, education loan; 3. inclusiveness (integration with local community
and students with special needs); 4. e books, online classes, asynchronous
classes;5.FDI, Changes to regulations (school opening hours, admiting age etc.); 6.
Usage of paper, ink, local bus routes etc.)
• PORTER’S FIVE
– Threat of new entrants High
– Threat of substitutes Low/Medium (?)
• Depends on economic factors
• Peer pressure (the other family syndrome)
– Bargaining power of customers Low
– Bargaining power of suppliers (Faculty - Low for India, Medium to high for US/UK)
– Competitive rivalry High
Byju’s..contd.
• Byju’s
– VMG
– OLC Stage III
– Started helping friends for CAT
– Growth rate – within seven weeks from 35 to 1000 students
– Stressed on how to learn and predict questions
• Implies more on learning process than cramming
• Conceptual learning to crack CAT – grade 8 to 10 Maths concepts
• Started with free workshop and then subsequently paid ones
• Saturday – Bengaluru and Chennai, Sunday – Mumbai and Pune;
– But he had to be present physically
– From one city to four cities in less than a year
» RAPID GROWTH
» PREEMPT EVERY POSSIBLE QUESTION
» STRESS ON CONTENT DEVELOPMENT AND MANGEMENT
• WELCOME TO DIGITAL STRATEGY

Byju’s…contd.
• Issues And Approach to solutions
• Lack of trained faculty TTT Concept (Different from KT sessions)
• Consistency in teaching quality TTT Concept
• Rapid growth Video
• Engaging with physical presence Interactive through videos and content management
• Lack of Physical locations Digital Media
• 45 locations in less than three years Digital media
• RAPID GROWTH (From CAT to IAS preparations to K12 segment) CONTENT MANAGEMENT THROUGH VIDEOS
• Content Development Pilot in tutoring sessions
• Individual Attention Mass Customization through written, visual, numeric (stakeholders participation)
DIGITAL STRATEGY
1. Content Development
2. IT Long term road map
3. New Domain expertise
4. Stakeholders’ participation – Mass Customization
Byju’s…contd.
• RCA?
• Solution adopted
– Piloting, feedback from students
– Training the teachers
– Content development, made interactive through test, video, tests, pattern analysis through analytics
– Constant feedback from users
– Content management – interactive and engaging approach
– Animated videos with superimposed videos
– Competitions, breakaway groups used
– Recording made available for students
– AR and VR approach
– Mass customization through app based approach
– Domain expertise – Content development
– Freemium pricing
– Monitoring and Control through technology
Video 4 Minutes..
App based strategy for Myntra
• The considerations of adding new internet users and understanding the buying behaviour of Indian customers are
two areas both Myntra hasn’t taken any consideration.
• Not everyone is willing to download apps, and then face the torture of continuous push notifications, battery
drainage and lack of space.
• To provide a virtual trial room experience in an app, Myntra hadn’t implemented Augmented Reality.
• The application of Cloud Strategy in Myntra required the expertise of Cloud brokers, as it was one of the first
companies who has implemented Cloud.
• While smart-phone penetration is high, many of the phones are at the low end of the price and features spectrum.
Minimum Internal Phone memory allows only five to seven apps beyond the preloaded apps that come with an
Android device. Users tend to uninstall apps they don’t use frequently.
• The smart-phone isn’t yet the ideal shopping device: While apps are more customised to a user's preferences and
notifications help them discover better deals, the lack of screen real estate and patchy and slow mobile internet
connectivity in India are two huge hindrances.
• According to Myntra, people like viewing products such as home furnishings and fine jewellery on larger screens,
not to mention fashion products require much scrutiny before purchase.
• Registered Users vs Transacting Users: The number of Registered Users is nearly three times in comparison to
the Transacting Users (at max 30 billion). Choice becomes a huge part of a service’s offering to customers and
taking it away isn’t an option and Myntra can’t afford to alienate even a small number of users. By alienating users
that wanted to shop on desktops, Myntra wasn’t just losing users but was fuelling the growth of its rivals, like —
Jabong, Amazon India, Snapdeal — where they are giving multiple access points to consumers.
• Click-and-Buy’ will happen on the app while ‘Browse-and-Buy’ will be on desktop. Where the user knows what to
buy and where to click, like in groceries or calling a cab, the app will precede the desktop. But where the buyer
wants to browse before buying, websites get preferred.” Unless mobile connectivity becomes much more stable,
app usage for large transactions would be limited in India.
• Payment is still much easier and faster on desktop.
• From the Net-Neutrality and Airtel Zero episode, we’ve seen that Myntra isn’t treated as a utility service and
consumers do consider them expendable. Hence, app-only strategy is only imprudent.
App based strategy…contd.
MYNTRA BYJU’S
OLC Stage III, IV OLC Stage I
Initial web based application Never web based
No AR/VR Animation, AR, Innovations
Feature based/Low end smart phone Tab supplied with subscription
Not all Target Customers tech savvy Easy GUI, tech savvy
Product categories
Ahead of time?
IT enabled Strategy Digital Strategy
Could not modify business model Created business model
Change management ineffectiveChange management not required
IT long term roadmap IT Business alignment
Non cloud based hosting AWS based hosting
Predictive on Q&A
data analytics, Amazon Redshift
NewDomainexp:Content development, Animation, 3D experts, visual effects spl, musicians
Strict monitoring and Control – Mby Deviation (40 minutes or less usage, renewals)
IT Led Strategy (Digital Strategy) took care of all the factors required for success (New Domain, IT Business alignment, Stakeholders’
participation et.)
IT Strategy framework so far..
Define Functional
particular
Decide Application
Strategy
Configure
Develop In-house OR
Providers
Digital Strategy
Installation
IT enabled
strategy
Online Poll
Define Functional
particular
Decide Application
Strategy
Configure
Develop In-house OR
Providers
Digital Strategy
Installation
IT enabled
strategy
Managing IT in Information Age
Imposes new
structure and Enterprise
workflows upfront IT (ERP,
Multi How does the CRM)
Function IT change the
What is IT processes
intended to process?
improve? Network IT
(blogs, wikis,
social media
integration)
Single Function New structures to

emerge
Managing IT in the Information Age
• Technologies impose on existing work structure
• While sometimes new structures emerge
– Workflows get affected
– Interdependencies and
– role owners change
Managing IT in the Information Age
• Function IT – Impacts processes in one function (silos)
– Knowledge workers such as scientists, engineers, domain experts, functional analysts use this
– Precise work, precise business processes, ex: Pharma research
– What will be your role?
• Enterprise IT – Imposes and New Processes defined
– Deliver similar capabilities
– Even if the EIT comprises of different vendors
– Redesign of processes,
– new role owners
– Multi functional processes
– Standardization of processes
– Central Monitoring
– Forces organizational changes, change management
• Network IT – New processes emerge
– Facilitates collaborations among external entities
– New voice and forums are created to express views and give feedback
– Predicts likelihood of future events
– All processes need not be standardized (ex: R&D vs old manufacturing; social media vs employee/customer feedback processes)
– Monitoring at each collaboration point in addition to central monitoring
Managing IT..contd.
Enterprise IT Function IT
Network IT
Managing IT in Information Age
• Cost of computing is getting lesser by the day
– Processing
– Memory
– Storage
– Bandwidth
– Software
– TCO
• Many can afford IT (even at OLC stage I with less capital)
• But do they get all IT capabilities? No, why?
– Selection of inappropriate IT
– Incorrect adoption
– Ineffective change management
– Decision on should IT be used to force business changes or support its business
IT Planning video..what goes wrong discussion
Zara Case
• Industry
– Fashion (not apparel)
– Creative
– FAD
– Endorsement
– Aspirational
– Brand Equity/Pull
– USP
• Material
• Design
• Pricing and positioning
• Comfort
• Durability
– Repetitive trend
– Not impulsive
Zara..video.. 8 minutes
Company Analysis. The video has the
company analysis (link to the video
https://www.youtube.com/watch?v=R
Xtla7pmdXA
)
Zara for fast fashion Video
Zara…Contd.
• In summary,
– No change in IT for now
• This was till 2018
• Then changed to IT enabled business
– Same as Fabindia
Solution For Zara today…AI based
AI and Fashion video
Online Poll
Factors affecting IT strategy
• Corporate objectives
• External and Internal drivers (Ch.11, Brien and Marakas, Management Information Systems –TMH)
• Real time project data availability
• Daily work done electronically with schedule of authorization
• Work Flow based approval system
• One point data entry
• Metrics availability
– Utilization and productivity
– Cost of Quality
– Cost of operation
– Stakeholders satisfaction indices
• Support functions performance
• Data integrity
• Transparency
• Extent of sharing of best practices across organization
• Degree of compliance to statutory and legal requirement
• Level of integration between production and finance
• Degree of process automation
• Level of Encryption needed
• The need for Business continuity and disaster recovery features
• Reliability of the system
– Availability
– Down time
• Ease of use
• Architecture – Central or Distributed (cost of upgrade and maintenance)
• Total cost of ownership
• License cost
• AMC
• Special skill resource cost
• Energy and resource cost
• Hardware cost
• Cost of upgrade
Case Study no.1 – J & B
Software
Vision
To be one of the top three image

processing organization by 2010
Business background
• 30% of retail banking checks of US are processed
• Passport office in US
• Niche area
• Premium pricing
• Client list includes 63 Fortune 500 organizations
– Mission critical application
– Supports more than Billion $ per day
• Expanding to other geographies
Opportunities
• Image processing in Health Care

• Revenue from Product licensing
• Retail boom in developing countries
– High volumes
– Electronic clearing system in other
geographies
Goals & Objectives
• Five-year goals
– To be Billion $ company
– To achieve 70% market share in US and 80% in developing
countries
– 40% net profit
Factors Considered for formulating IT Strategy
•Real time data availability
•Compliance to statutory requirements
•Profitability of each and every project
•Utilization of resources
•Single data entry
•Data integrity
•Support functions and Project Management to be integrated – process automation for integrated processes
•Milestone based automated billing system
•Transparency and metrics roll up at different levels
Senior Management Project Dashboard

Organization wide project reports
Account wise Reports

Project Status Report
Delivery Heads Project Summary
Project Tracking
Resource Availability/Utilization
Project Status Report

Tasks Schedule
Tasks Tracking
Project Managers Resources Utilization
Resource cost
Project profitability
Finance Customized Reports for Billing

Implementation of IT Strategy
• The success of any IT Strategy implementation is largely dependent upon how well
the design has been implemented, as well as how well it is being continuously
evolved, enhanced and maintained as the business needs grow.
• Post-implementation services include those services that are related with the version
upgrade, code optimization and adding new functionalities. Major issues are:
• 1. Managing version upgrade
• 2. Optimizing performance
• 3. Adding new interfaces
• 4. Customized report development
• 5. Managing commercial and support issue with vendor
• 6. Measuring benefits and attainment of objectives
Enterprise Management
Performance goals and objectives
Operations
Customer and employee Satisfaction

Marketing Sales Finance Project Management
Operations Support
Recruitment Deployment Development Payroll

processing
Financial Control
Training and Reporting
Case study no. 2 for Polaris Software Lab Ltd. –
Presented to Mr. Arun Jain
on 23/01/2004
Objectives:
1. To achieve stakeholders satisfaction
2. To improve productivity by 7% in 2 years
3. To stop revenue leakage
4. To expand client base
5. To increase repeat business to 90%
Factors
1. Project Level goal setting and tracking
2. Peoplesoft to track goals at project level (not at cost center level)
3. Exception report on billing, bench report, gross margin to be generated
4. Appraisal, SEC HR and Nalanda training to be integrated
5. Single point data entry, data integrity and transparency
Peoplesoft
HR Finance
Exception Report
Entry in Empower
P
M
Time sheet
Knowledge Billing
T
Management Project Level: Gross
O
margin, Net margin
O
L
Metrics
Project Library
CASE STUDY No. 3 – JPMorganChase
JpMorganChase
JpMorganChase Book
Book of
of Work
Work Summary
Summary
Key Message: Significant progress made in 2006 yet remaining book of work is complex with numerous cross dependencies.
2006
2006 Summary
Summary Remaining
Remaining Book
Book of
of Work
Work
– Industry leader with Receivables Edge browser – Total client migrations: 2,519 clients, 5,109 boxes
– Significant new business wins due to – Bank of New York – Phase II: 223 clients, 335
Receivables Edge and competitive pricing boxes
– RemitOne – Current Statistics – 2 RemitOne Releases (ER107 & ER207); 3 Edge
• Retired OWL (hBankOne platform) Releases
• 2,414 clients, 8,181 boxes/conversions – NDS- Tri-State Conversion –
(all platforms)  Establish WDC file feeds for VICOR sites
• 805 new clients, 1,333 boxes/conversions • Support early MICR conversion – GLAS to
• 5 million checks/month (71% NWL SAP
volume) – Finance Target – GLAS to SAP
• 2,513 clients (75%) migrated to • Revise strategy to feed lockbox platforms
Receivables Edge to SAP
– Offshore site opened June 2006 (Mumbai) – Offshoring – 3 phase ramp up
– Implemented 3 Releases • 44.5MM keystrokes, 87 FTE in 3 phases
– Completed SI and BNY –Phase I conversion – Fax/E-mail to EDGE – Targeted 353 clients
– Truncation – Reduce paper and re-association
process by truncating targeted clients - Scope
TBD
System
System Capacity
Capacity &
& Demand
Demand Forecast
Forecast
•Model forecasts daily ”peak” processing Key Initiative Summary

Project # Imp Date Description Capacity Lift Recognized
capacity based on the R1 highest volume
day to date (10/11/06) 1 1/23/2007 Performance Hot Fix (stored proc. optimize for database lock relief) 0%
2 2/10/2007 Infrastructure Enhancement - DOP Modification 5% February-07
•New Prod Server Implementation in May 3 2/23/2007 Release 8.0 - Edge/TFC/RemitAdmin for UPS 0%
and Citrix Farm upgrade in July are critical 4 3/6/2007 Performance Hot Fix (5 key table splits for lock relief) 0%
5 4/13/2007 Implement 2 Additional Citrix Servers 3% April-07
to support migration volumes 6 5/6/2007 New Production DB Server and SQL 2005 Upgrade 55% May-07
•April batch, keystroke and citrix user 7 6/22/2007 Release 9.0 and ER207 - RemitOne/Edge/TFC/RemitAdmin 0%
8 6/28/2007 Performance Hot Fix (T-SQL Conversion) 5% July-07
capacity is amber as cushion between
9 7/2/2007 Citrix Farm Re-Design and 4 Additional Server Adds 15% July-07
demand and capacity lessens 10 11/9/2007 Release 10.0 - RemitOne/Edge/TFC/RemitAdmin for PVB/RedLight 0%
•Peak Transmissions is amber Oct-Dec, 11 Q3 Arch. Design Recommendation Implementation #1 TBD Q3
12 Q4 Arch. Design Recommendation Implementation #2 TBD Q4
does not include current plan to move
fax/e-mail transmissions to Edge in Q1 ** Projects 1 & 3 actual capacity impact will be captured if improvement noted and forecast adjusted as necessary.
2007
Jan Feb March April May June July Aug Sept Oct Nov Dec
Project # and Capacity Lift 2 (5%) 5 (3%) 6 (55%) 8 & 9 (20%)
Batches
Batches/ Month Demand 447,942 450,908 474,813 499,830 534,789 563,767 597,361 620,978 651,425 682,804 711,936 714,903
Max Batches/Day Target 39,900 40,164 42,294 44,522 47,636 50,217 53,209 55,313 58,025 60,820 63,415 63,679
Capacity RAG
Keystrokes
Keystrokes/Month Demand 119,467,398 120,845,111 124,722,824 139,615,948 150,796,123 161,783,526 175,629,026 178,347,763 183,762,266 192,576,985 201,800,550 203,178,263
Max Keystrokes/Day Target 10,428,000 10,548,257 10,886,733 12,186,715 13,162,603 14,121,665 15,330,203 15,567,515 16,040,133 16,809,547 17,614,648 17,734,905
Capacity RAG
Checks
Checks/Month Demand 5,177,072 5,211,357 5,487,643 5,776,768 6,180,809 6,515,728 6,903,983 7,176,932 7,528,830 7,891,493 8,228,181 8,262,466
Max Checks/Day Target 446,960 449,920 473,773 498,734 533,617 562,532 596,052 619,617 649,998 681,308 710,376 713,336
Capacity RAG
Images
Images/Month Demand 13,975,224 14,136,388 14,997,552 15,737,146 16,810,926 17,565,878 18,398,600 18,597,548 18,989,119 19,513,894 20,370,569 20,531,733
Max Images/Day Target 1,159,000 1,172,366 1,243,784 1,305,121 1,394,172 1,456,782 1,525,842 1,542,341 1,574,815 1,618,336 1,689,382 1,702,748
Capacity RAG
Transmissions
Max Transmissions/Day Demand 2300 2300 2300 2400 2500 2600 2700 2800 2900 3000 3100 3100
Current Capacity RAG
Peak Transmissions
Max. Trans at 1400 Cutoff Demand 523 523 523 576 629 682 735 788 841 894 947 1000
Citrix Users
Peak Citrix Users/Day Demand 263 263 283 313 343 370 400 440 460 480 500 510
Recommendation
Recommendation
Key Message: Prioritize remaining migration activities by corporate requirements and financial opportunities. Establish
migration waves based on critical capacity measures to ensure quality and effective change management.
Guiding Principles:
• Establish migration schedule leveraging key lessons learned in 2006
• Create migration waves within parameters (volume, complexity) that promote quality, timeliness and limit client impacts
• Define migration waves that do not conflict with corporate initiatives, system freeze periods or month-end/quarter end
• Meet key milestones throughout migration life cycle (e.g. client notifications 75-90 days prior to migration; 120 days for
complex clients)
2007 Client Migration Recommendation

• BNY Phase II migration wave scheduled on March 23 rd in conjunction with enterprise conversion event
• Auto Wholesale – TSLink backdoor related accounts will be completed in 3 waves (April & May)
• Remaining hJPMC book of work will commence migrating in June
– Migration waves will alternate – simple & full
» Simple waves: No transmissions or complex workflow
» Full waves: Combination of simple, standard and complex clients
• 11 client migration waves scheduled from June through November 2007 (6 Full & 5 Simple)
– Complete VICOR & Imagescan migrations by November 2007 (except PVB/Redlight & FMS-Dallas)
– Full relationship migration drives AW and Custom Core population to R1 during the year (40% boxes, 30%
clients)
– Complete majority of migration activities for remaining AW & CC clients by end of 2007
• New business migrations will continue weekly throughout the year
Remaining Book of Work

• Timeline does not accommodate the following work to be migrated to RemitOne in 2007
– Remaining Auto Wholesale & Custom Core
– Cicero – Regional Lockbox
– PVB & Redlight – due to development requirements in ER207
– NYC Retail - Regulus
• This effort would require 5-7 additional migration waves which can not be supported in June-November 2007
timeframe (approx. 800 clients & 1,400 boxes)
JPMorganChase
JPMorganChase Improvement
Improvement Efforts
Efforts
Key Message: Cross-functional teams are actively engaged in process improvement efforts based on lessons learned from
2006 migrations. The improvement efforts will not introduce radical changes, but instill the appropriate discipline and
inspection required for success.
Complex Client
Client Engagement Complex Client
Client Engagement Management
• Project management Management
• Project management • Define and identify
discipline • Define and identify
discipline complex clients
• Strengthen Market complex clients
• Strengthen Market • Strengthen client
Readiness approach • Strengthen client
Readiness approach engagement
• Holistic client engagement engagement
• Holistic client engagement • Mitigate client impacts
• Mitigate client impacts
Migration
MigrationApproach
Approach/ / HPC
HPC/ /Engagement
Engagement
Timeline
Timeline • •Improve
Improveandandincrease
increase
• • T-Minus
T-Minusplanning
planning Training/Education
Training/Education
• • Acceleration
Accelerationprocess
process • •Improve
Improverecognition
recognition
• • Command
CommandCenter
Center • •Review
Reviewtools
toolsand
andleverage
leverage
• • Issue
Issuemanagement
management best
bestpractices
practices
JB Software solutions
- Improvement
Workstreams
Testing
Testing
• • Comprehensive
Comprehensiveend-to-end
end-to-end
testing
testing
• • Address
Addressgaps
gapsfrom
from2006
2006
process
process
Capacity / Demand Release Cross-Impact

Capacity / Demand Release Cross-Impact
Management • Identify
• Identify optimization
Management optimization
• Identify 2007 demand opportunities
• Identify 2007 demand opportunities
• Create a capacity plan • Create forum for
• Create a capacity plan • Create forum for
• Establish forum and steps information/best practice
• Establish forum and steps information/best practice
for ongoing management sharing
for ongoing management sharing
Calendar
Calendar
Key Message: The availability of migration waves is limited due to the 1 st quarter delay and on-going stabilization
efforts.
Prioritized
Prioritized Platform
Platform Recommendation
Recommendation
Key Message: Platform migrations prioritized by corporate requirements and financial impacts.
Prioritized
Prioritized List
List Assumptions
Assumptions
– Associated volumes are dependent on the
sequence of migrations
– Client migrations are designed to migrate
entire client relationships, not just single
platform
– Multiple platforms/sites are impacted by
each migration
• For example, if we migrate a client
from VICOR in Chicago, the may have
boxes on Auto Wholesale in Brooklyn
– The prioritization accomplishes obtaining the
closure of three sites in 2007 – Chicago
South, Dallas, and Los Angeles
– Wave guidelines
• 350 Boxes: 100 Complex, 125
Standard, 125 Simple
• 4mm keystrokes
• Notifications: 70
• Checks: 175k
• Images 600k
Infosys IT strategy evolution
1997 2000 2003
PsWeb SAP R3 IPM
Single HR data entry,

milestone based billing and
Billing Oracle Financial invoice automated
Telephone Directory Outlook exchange
Cc Mail IPM ver1.0 + QSD
MSP Knowledge Shop Knowledge management
BoK PCB technology based PCB technology based
Project Level goal

(Business and quality
QSD Billing at Project Level productivity related)
PCB project type based Balance Score Card Bench Utilization
Billing at Cost Center Level

IT Strategy for Motorola Tenjing
Changes in demographic profile
Ability to make changes in process, technology
Internal quality Product or

Inbound and operations Outbound services
Demand Time to
fulfilment Meeting quality standards
market
Speed, Improve Productivity Predictability

flexibility operational and and risk
efficiency profitability mitigation
IT STRATEGY
Define Functional
particular
Decide Application
Strategy
Configure
Private, In-house existing OR

Public, buy Off the shelf OR
Hybrid, Develop In-house OR
Community Outsource to IT Service
Providers
deployment Saas, Iaas
,Paas, DaaS
Service Digital Strategy
Cloud
Computing
IT enabled
strategy
On premises
Cloud Computing Strategy
• When to go for Cloud Computing?
– Concentrate on Core competency
– Reduce investment from Capex to Opex
– When provisions for extra security is needed
– All/Most solutions outsources
– Lack of in-house technical expertise
– Any OLC Stage
– Lack of integration expertise
– Lack of technical kknowledge on BigData, Analytics, AI
– Time to Market is crucial, Digital First as a strategy
– IT Risk is being transferred to vendor
– Dynamic Collaboration and Partnership
• When not to go for cloud computing
– While providing IT services to external customers
– Proprietary design, IPR, critical data (Covid19 tests)
– Incapability of cloud vendors to meet SLAs
– Lack of ability to monitor cloud computing vendors
– Legacy Architecture is buiness USP
Cloud Computing…Easy2Grocery
• An e-tail business/ E-commerce
• Bhubaneswar
• vast no. of consumer products
– Including grocery items
• OLC Stage I, II
• Two warehouses
– two separate billing applications
– two databases
– manual synchronizing
• Prices
• Products
– Resulting in loss of data integrity
• scale up to 5 warehouses in the next 2 years

Substantial investments
Monitoring, Control
Signing contracts for supply, last mile delivery
hardware and software procurement
• needed a strategy to
– single database
– Concentrate on core
– Lower investment
– From Capex to Opex
Cloud Computing Easy2Grocery…contd.
• Political
– Govt of Odisha technology as its prime driver
– private public partnership
– stable government at the State
– World Bank report 2009 bbsr as the third best city in India for industry
• Economic
– ASSOCHAM, 2011 pegs bbsr as highest employment growth among the tier-2 cities
• Social
– targeted group : housewives, senior citizens and the differently abled
– Not tech savvy and depend on others for placing an online order
• Technological
– mobile connectivity good
– BSNL, Vodafone, Airtel, Aircel, Tata-Docomo have presence
– Low credit card penetration
– high failure rate of payment gateways
– low trust for online transactions
– Cash on delivery is risky, manual and long drawn process
• Legal Factors
– Lack of a national ecommerce policy framework (later of GOI came up with e-commerce law)
• Environment
– Will create opportunities
"We are satisfied by choosing Bhubaneswar as our base location for start-up. Bhubaneswar's start-up
ecosystem is encouraging"- Ashish and Vikram
About Easy2Grocery..contd.
• VM
• Goals
– Sales - Achieve 50 online orders per day in next 12 months.
– Operational – Deliver within 3 hours of order across Bhubaneswar in 12 months.
– Website – Transform the website into an efficient and intuitive navigation structure.
– Customer Care – Enhance customer service and increase customer retention by 20% in 6 months.
– Marketing – Increase online marketing reach by 50% in next 3 months
• Strategies –
– Sales – Increase sales by content marketing and acquire new customers through referral schemes.
– Operational – Open warehouses at strategic locations and manage optimum inventory to decrease the
transportation time.
– Website – Increase user friendly functionalities in the website.
– Customer Care – Reduce grievance redressal time by empowering employees.
– Marketing – Increase online presence and target customers through social media and emails
Easy2Grocery..contd.
L0, L1, L2 Flow Diagrams
Risk Analysis – exhibit 11
Easy2Grocery…Contd.
Cloud Architecture
The architecture had the following attributes:

Open Standards
Security
Scalability
Control
Disaster Recovery
Since the data was not highly confidential, they were collected and kept in
archives once in a month. Then the data were used for analysis and to
understand the consumer behavior.
Easy2Grocery..contd.
ROI, Roadmap, Cloud Brokerage
• For ROI calculations Please refer to exhibits
• Key Takeaways for cloud computing
– IRR
– BE
– NPV
– Sensitivity Analysis
– Cloud Brokerage
– IT alignment with business
– SLAs
• Effective date of agreement
• Agreement duration
• Type of service provided
• Service measures
• Availability
• Service quantities
• Performance
• Reliability
• Resources needed or costs charged
• Reporting mechanism
• Schedule and Availability
• The most effective agreements are produced by negotiators who understand system capabilities, limitations, and user needs (Cloud Brokers)
Mohapatra et al., 2014, Variables affecting ecommerce conversion rate,
International Journal of Business Innovation and Research
Omni Channel… for ecommerce
Omni Channel Strategy..Contd.
• seamless integration of both online and physical stores
• For ease of customer shopping experience
• demand for products should be predictable
• low uncertainty
• OLC Stage – any, criteria: easy to integrate strategies
• collect data from both online (aggregators are included) and offline channels
• Customer touch points
– of interaction for customers were desktops, mobiles (m-commerce), and aggregators
– Bot (robots), and IOT (Internet Of Things) - chatbots which were programmed with pre-defined data sets or FAQs to
answer customers’ query instantly
– Data collected from search, choose, compare, ordering pattern, discount per order, payment & reward points
– Analytics to predict behavior pattern
– identify future business opportunities, and
– optimize supply chain cost
– Data collected from physical stores in terms of take away orders, payment and feedback register
– webrooming and showrooming behaviors (Webrooming was looking the product on internet and buying in a physical
store)
• Cloud Adoption is must
• Roadmap for customer touch points
– IOT, AR, VR, bot (robot),
– Beacon technology, touchless commerce (scans basket, prepares invoice and selfie payment), (In Beacon
Technology, the interaction used to happen between small devices that emitted signals when the registered mobile
devices were within its range. It was used for hypercontextualised content, proximity marketing using BLE (Bluetooth
Low Energy) technology)
– Predictive and Prescriptive analysis
– App based
Omni Channel Strategy…contd.
Technology to be used:
IOT
AR
Virtual reality
AI
M-commerce
BLE
Web Applications
APP based
Bar Code Scanner
Define Functional
particular
Decide Application
Strategy
If off the shelf, then
Customize and Configure
Disaster Recovery
Vendor SLA Regulations
Location Private, In-house existing OR
Skill, Resources
Dashboard, deployment Providers
Saas, Iaas
Roadmap ,Paas, DaaS
Stakeholders Service Digital Strategy
Cloud
BiZ Goals, Biz Computing
Metrics IT enabled
strategy
On premises
IT Governance
Additional Points
• Details on SLAs
Developing and Managing Customer Expectations through SLAs in Cloud
Computing
• Managing operational and tactical aspects of an

organization’s IT activities is critical to long term success
• Service-level agreements between customers and
suppliers are an important tool, creating and managing
expectations
• These agreements can be used within the firm, with
ASPs, with Web-hosting providers, and in many other
critical relationships
Tactical and Operational Concerns
• In a distributed computing environment, server failures
can ripple throughout the organization
– Not only are a firm’s computer operations vital, they also help to
establish its image internally as well as externally
– Computer operations are judged on a day to day basis
• Several key operational processes must be managed well
in order to succeed
Customer Expectations
• Manager performance is judged by how well expectations
are met
– Managers must explicitly set expectations
– Service-level agreements spell out commitments and
expectations
– Managers must choose valid measurements of service levels
– Failure to attain service levels must force the organization to
look for process improvements and address planning /
production issues
The Disciplined Approach
• Disciplines are management processes consisting of
procedures, tools, and people
– The goal is to meet customer expectations
• Must be judged against specific, quantifiable criteria
– Expectations are set in service-level agreements
– Management reports are essential tools for operations
managers
Service-Level Agreements
• A standard tool to establish and define customer service
levels
– SLAs help to reduce conflicts between users and suppliers and
establish user expectations
– With outsourcing, IT has been forced to create SLAs in order to
compete to keep operations internal
– Creating these agreements requires negotiation and discussion
• SLA negotiations are an iterative process
– Requirements evolve as discussions become focused
– New technology can offer benefits to the parties
• The end product of SLA discussions is a written document
– Costs
– Services
– Other contingencies (uptime, throughput)
• Client organizations must justify IS costs
– Gains from improvements must exceed costs of improvements
– SLA negotiations are much simpler when preceded by careful
disciplined planning
• All client organizations should be included in the SLA
process
– SLAs need not be only confined to IT
What the SLA Includes
• Effective date of agreement
• Agreement duration
• Type of service provided
• Service measures
– Availability
– Service quantities
– Performance
– Reliability
• Resources needed or costs charged
• Reporting mechanism
What the SLA Includes
• Negotiation of SLAs occur while a firm is preparing its
operational plan
– At this time near-term requirements for IT services are
becoming clearer
– Stable services like payroll have better forward visibility than
quickly evolving services
• Evolving services may need to renegotiate SLAs on a more frequent
basis; the trigger for renegotiation must be included in the agreement
Schedule and Availability
• Describes the period when the system and its application
programs must be running
– Includes weekends, holidays
– Must allow for scheduled downtime
– Should take into account seasonal fluctuations, periods of high
demand
• The most effective agreements are produced by
negotiators who understand system capabilities,
limitations, and user needs
Timing
• How quickly users receive output data
– For batch operations this can be measured in
hours
• Will the data be available at the start of the day
following an overnight run?
– For interactive sessions, it is the lag between
request submission and result generation
• Response times under 0.3 sec appears to the user
as instantaneous
• The result of many factors interacting
– Network speed, capacity, database access delay
E-Business Customer Expectations
• E-business operations dramatically
change the firm’s IS infrastructure and add
new dimensions to system management
– ERP systems form the heart of e-businesses
• They integrate critical data from the beginning to
the end of the value chain
– Supporting systems are also critical
• E-mail, security, funds transfer
• All of the above systems must be always
on and have high expectations of
availability
Contracts with Outside IT Service Suppliers
• When creating arrangements with outside vendors, a
contract is created
– Within the firm these are termed agreements denoting the fact
that they do not have legal force
• Contracts
– Money flows outside the firm in exchange for services
– Stipulates measurable rights and obligations
– Give parties legal recourse
What to Include
• In addition to the items in internal SLAs
– Unambiguous description of the services provided and the
duration of the service
– Key metrics of system reliability, availability, and performance
– Payment terms
– Termination conditions
– Remedies and indemnification
Reliability
• Mean Time Between Failure (MTBF)
– Amount of time system is operational and without failure
– In highly redundant systems this is zero
• Mean Time To Repair (MTTR)
– Amount of offline time before system is operational again
– This is also zero in redundant systems
Types of Service Contracts
• Four distinct types
– Application Service Contracts
– Hosting Contracts
– Network Contracts
– Customer Help Desk Contracts
Workload Forecasts
• Accurate forecasts are critical to meeting internal SLAs
and purchasing appropriate levels of external services
– Contracts must address workload fluctuations
– Seasonal peaks must be anticipated
– Unanticipated demands often occur when new applications or
services are more successful than planned
– Structural changes in the firm (mergers, etc) make invalidate
previous forecasts
Workload Considerations When Outsourcing
• Accurate workload forecasting is important when
outsourcing
– Outsourcing firms generally have contingency clauses that
stipulate charges for incremental demand
– In cases where demand is significantly underestimated, these
charges can exceed the initial contract price
– In cases of underestimation, monthly charges inflate final
application service cost
Measurements of Satisfaction
• Suppliers and users must agree on explicit, transparent,
and credible metrics
– Accurate data creates trust with clients and builds a relationship
– Suppliers should measure performance from the client’s
perspective
– Metrics should be gathered from across a client’s network, so
that site specific problems can be identified and overall
performance accurately reported
User Satisfaction Surveys
• Aside from meeting SLAs, providers must gather data on
user perceptions of service
– Well crafted surveys help to detect problems sooner
– Unsatisfactory results must be addressed and the roots of the
difficulty found
• Focus groups, targeted surveys, etc
– This becomes another method to strengthen communication
between users and providers
E-Business Satisfaction Measurements
• Customer satisfaction is critical for success in e-business
– Objective measures must be found to track customer
satisfaction
– Anonymous data must be collected in a timely manner that
allows participants to opt-out
– In B2B ventures, issues such as trust and competition can
cloud users perceptions
– B2C e-commerce is even more difficult with branding,
advertising, and marketing affecting results
Additional Considerations
• Resistance to SLAs occurs at times because managers feel that
they represent unnecessary bureaucracy and central control
• Some managers resist because SLAs would reign in their ability
to demand and bully
• Others would like to operate their departments without the
scrutiny that SLAs bring to ongoing operations and performance
Congruence of Expectations and Performance
• Sometimes SLA performance does not meet expectations
– Inability to meet SLAs allow an organization the opportunity to
re-engineer, conduct strategic planning, or consider outsourcing
of the function
– The utility of this approach is that previously hidden problems
are formalized, measured, and addressed
Summary
• SLAs form the basis of services to e-businesses
• They create a foundation upon which the disciplines can
be made effective
• SLAs creates respect and communication between
providers and clients
• It helps IT to focus on client needs and clients to
understand the services IT renders
NIST cloud computing defined as
On demand availability of computer systems,

computing power and data storage
Network Access
Resource Pooling
Rapid elasticity
Pay per Use

What is the need for cloud :
At present IT
• legacy (difficult, expensive to maintain)
• skill/ training
• unproductive
• difficult to re-engineer (require capital
expenditure)
• Big data (analytics) : server/sw/cost
• not scalable
• on premises -> issues with updates
Cloud Computing
• Increase capacity on the fly with less end easer
cost
• BEST PRACTICE : shift to application
strategy (SOA) (shift to S/W, less H/W)
•AUDIENCE IS BUSINESS
Web based
Services : Iaas : Data Centre
Saas : Web based application
Paas : Not so popular as of now
Cloud Computing : share resources (H/W, S/W,
Information)
: across devices
: cost ( at present 70% on
maintenance, 30% on new)
Today we need innovation and
collaboration.
When should we use cloud :
• Seasonal variations
• Not regulatory bodies (VISA,CREDIT CARDS can use)
Questions to be asked? :
• Does it require regulatory compliance (Credit Card)
• Does the collaborators provide sensitive information
(ISRO) : India, China.
• Proprietary application (patents)
If the answer is yes then no cloud
To chose a cloud service provider
Considerations are :
- cost (fixed or variable cost)
- open source /proprietary source
- SLAs
ROI OF CLOUD
BENEFITS
1. Faster time to value, deployment speed (need a login id,
internet connection), configuration only
2. Reduced maintenance cost
3. No upgrade hold ups
4. Pay for what you need no excess capacity, audience-business,
COST
COST
1. Since best practices all the features are not used.
2. Vendor management – SLAs, performance management
3. Since best practices, all the requirements are not met –
Integration cost, Administration cost.
4. Vendor management- consolidation will happen, right
now too many vendor
Vendor lock in
5. Please use weighted cost of capital as discounted cash
flow (DCF) for calculating NPV
ROI (in US$) - CRM Cloud – Salesforce
Year 1 Year 2 Year 3 Year 4 Year 5 Total Presen
t Value
Total 846402 925104 101571 108726 117077 504525 376670
benefit 3 1 9 8 0
Total 923701 777555 793106 808968 825148 412847 314309
Cost 8 6
Net -77299 147548 222606 278292 345632 916780 623604
cash
flow
Cumula -77299 70250 292856 571148 916780
tive
Cash
flow
NPV 623604
ROI 20%
Paybac Betwee
k n 12
and 24
months
ROI Axapta (ERP)
t Value
Total 183965 203899 225264 244969 266123 112422 837557
benefit 9 2 5 8 1 26 3
Total 215886 201119 205141 209244 213429 104482 792040
Cost 5 2 6 4 3 09 1
Net - 27801 201230 357254 526939 794017 455172
cash 319206
flow
Cumula - - -90176 267078 794017
tive 319206 291405
Cash
flow
NPV 455172
ROI 6%
Paybac More
k than 24
months
ROI – business applications
t Value
Total 906787 986696 107853 115134 123614 535950 400405
benefit 7 2 2 4 3
Total 923701 777555 793106 808968 825148 412847 314309
Cost 8 6
Net -16914 209141 285431 342373 410994 123102 860957
cash 6
flow
Cumula -16914 192228 477659 820032 123102
tive 6
Cash
flow
NPV 860957
ROI 27%
Paybac Betwee
k n 12
and 24
Cloud Computing Types
NIST
Gartner
IBM
Open Cloud Manifesto Consortium
"the collection of concepts, technologies, methodologies that enable to dynamically provision hardware and
software resources as services over the Internet on pay-per-use model with objectives of achieving high resource
utilization in a scalable cost effective manner."
• Features from
– grid computing
– utility computing
– on-demand computing
• Pay-as-you-use
• Metered Use
• Dynamic Provisioning
• Autonomic Computing
• Cloud Service Provider
• Service Deployment, Service Orchestration, Cloud Service Management, Security and
Privacy
• Cloud Consumer
• Functional Interface and Management Interface
• Abstraction
– transparency of implementation details maintained for users and
developers
• Virtualization
– sharing of wide spectrum of IT-related resources that are consolidated as a pool and
shared among multiple users, which are maintained by third party, and CSPs
• Cloud Service
– Any service or resource that is implemented using cloud computing
technology and delivered over Internet
– Major Services
• Software as a Service
• Platform as a Service
• Infrastructure as a Service, co-working
• Data as a Service
• Deployment Models
– Who delivers to whom
– private cloud, public cloud, community cloud, and hybrid cloud
• cloud computing system architecture, NIST for major assignment
– front-end
• system or device or network or application that the user of cloud uses to get access to
cloud
– back-end
• actual cloud that comprises a lot of servers, individual systems, storage, and other
components networked together
– interfaces
• through which front end clients access it
• any standard browser or application is able to access the cloud interfaces
– middleware
• For efficient functioning of cloud following set of protocols and standards
Evolution of cloud computing
Examples
Gmail
Facebook
LinkedIn
NIST Cloud Model, for major assignment
NIST - Essential Characteristics of Cloud
• On-demand self-service
• Broad network access and self-service
• Resource pooling
• Rapid elasticity
• Measured service
NIST - Cloud Enablers
• Virtualization
• Service-oriented architecture
• Web services
• Utility computing
• Grid computing
• Multitenancy (Similar to Co working Space)

Benefits of Cloud Computing
• Reduced infrastructure cost
• Reduced maintenance cost
• Reduced software cost
• Automatic software updates
• High availability and reliability
• Improved scalability
• Dynamic provisioning
Benefits of Cloud Computing
• Fast execution
• Unlimited storage
• Easy maintenance
• Access from anywhere
• Pay-per-use model
• Rapid deployment
• Improved redundancy
• Greener environment
Challenges of Cloud Computing
• Requirement of continuous connectivity
• Security and privacy issues
• Prone to data breaches
• Governance and regulatory issues
• Lack of standards
• Integration with existing applications
• Service availability and vendor lock-in
Cloud-Enabling Technologies
• Service-Oriented Architecture (SOA)
– an architectural style that supports service orientation, which is a
way of thinking in terms of services and service-based development
and the outcomes of services
– service is a business functionality that occurs repeatedly with a
specific input and outcome
– loosely coupled interacting software components
• Interface
• Message
• SOA and Cloud Computing
• Web Services
– a business or computing functionality implemented and hosted in a
software system that supports machine-to-machine interaction over the
communication network through standardized messaging system
– Characteristics of Web Services
– Web Service Architecture—Role Based
– Web Services Architecture—Protocol Based
– RESTful Web Services

• an architectural style, developed as an abstract model of the web architecture to
guide the redesign and redefinition of the HTTPs and URIs
• Grid Computing
– a network that facilitates sharing computing resources such as processor, memory, and
network among geographically distributed multiple users in a coordinated manner
– Characteristics of Grid Computing
– Grid Computing versus Cloud Computing
• Utility Computing
– represents the business model of packaging resources as a metered services similar to
those provided by traditional public utility companies
• Multitenancy
– a group of users sharing a service
Online Polls
Cloud Strategy
• basis of the location, ownership, access, and
management of cloud services
– NIST
• public cloud
• private cloud
• community cloud
• hybrid cloud
– Virtual Private Cloud
Public Cloud
• offers applications, storage, computing, network, and
other services over the Internet by the cloud service
providers (CSPs) to the public
• CSPs
– procure the resources
– set up the cloud infrastructure
– manage, and operate
Public Cloud
• Common infrastructure pool sharing
• Service Level Agreements (SLA)
• Simple, easy and cost-effective
• No visibility or control for consumers
• Major CSPs
– Elastic Compute Cloud (EC2), Simple Storage Service (S3) from Amazon
Web Services (AWS)
– Google App Engine
– Windows Azure Services
Public Cloud
• Examples
– e-mail services (e.g., Gmail, Hotmail, etc.)
– social networking (e.g., Facebook, Twitter, etc.)
– cloud storage (e.g., Google Drive, iCloud, Dropbox, OneDrive, etc.)
– officesuite (e.g., Google Docs, Microsoft Office 365, etc.)
• Benefits
– Flexibility and elasticity
– Self-service
– Availability and reliability
Private Cloud
• offerings within an organization’s boundaries
• services accessible for the designated organization
• Infrastructure located within the organization itself, either internally or
externally
• provisioned exclusively for employees and stakeholders
• operated for the particular organization either by the organization itself
or by a third party
• Enhanced Security and dedicated resources
• Examples: Amazon Virtual Private Cloud, IBM Smart Cloud, Microsoft
Private Cloud, VM ware Cloud Infrastructure Suite
Private Cloud – Onsite Deployment
• Support for heterogeneous resources and technologies
• Integration of different kinds of management tools
• Integration of applications with middle ware so that SaaS
can be supported by IaaS
• Support for automation of IT and business processes
• Planning for delivery of extended capabilities for
enterprise-wide scalability and global access
• Interoperability with public cloud
Public Cloud vs Private Cloud
Community Cloud
• Used by a community comprising many organizations with shared
interests
• owned by a single or multiple organizations
• hosted internally or externally with a third party service provider
• benefits from both public and private cloud
• Examples: Google Apps for Government and Microsoft
Government Community Cloud
Community Cloud
• Vertical clouds - contain information and applications
services for particular industries. Example: Healthcare
cloud
• Horizontal clouds - specific-purpose clouds for
development, test collaboration, and budgeting
• Regional clouds - localized and compliant with
government regulations
Hybrid Cloud
• composition of different cloud types (public, private, or
community) from different service providers
• Features and benefits based on the hybrid mix
Virtual Private Cloud
• setting up a private cloud on demand, within the public cloud
environment
• necessary isolation between other consumers in the public cloud
• Isolation is achieved by means of
– allocating private IP subnet
– virtual LAN setup (VLAN)
– encrypted communication channels
– setting up a virtual private network (VPN)
– authentication and encryption, etc
End User Implications on Cloud Deployment
• Multitenant deployments
• Network configurations and potential vulnerability threats
• Consistent user management and access controls
• Cloud systems integration and API management

Software as a Service (SaaS)
• software distribution model in which applications are hosted by a vendor or
service provider and made available to customers over a network, typically the
Internet
• Examples:
– E-mail services (e.g., Gmail, Yahoo, Hotmail, etc.)
– Social networks (e.g., Facebook, Linked In, Twitter, YouTube, Myspace, Vimeo, etc.)
– Collaboration (e.g., Box.net, Dropbox, Huddle, etc.)
– Security (e.g., Cisco, McAfee, etc.)
CRM (e.g., SalesForce, NetSuite, MS Dynamics, etc.)
– HR (e.g., Taleo, SalesForce, SAP, etc.)
Characteristics of SaaS
• On demand, scalable services over the Internet and well-
defined APIs
• No need for the user to have knowledge of the back-end
infrastructure and its management
• Management of complete application stack by SaaS service
provider
• Multitenant model of service provisioning
• Automatic updates on software, technology, and licenses
• Pay-as-you-go subscription model
Benefits of SaaS
• Cost in terms of time and efforts incurred in developing and deploying
sophisticated software is reduced
• Software updates are made simpler
• Payment is made only for the modules subscribed
• Licensing problems of software can be solved
• Responsibility of identifying and fixing bugs is that of the SaaS provider
• Technology updates are automated
• Thin clients can also access SaaS without the need to install the
software in their own devices
• Centralized management of data
Limitations of SaaS
• Proper security mechanisms to protect Consumers data, which might need
third party involvements
• Customization of software is hardly possible
• Integration of software procured as a service with that of existing
applications
• Using Web browsers may be limitation when it gets affected from malware
attacks
• SaaS is not a better choice when:

– Country-specific law enforces not to store data outside certain region
– Applications where extremely fast processing of real time data is required
Platform as a Service
• a category of cloud computing service delivery model that provides
computing platform and a solution stack as a service
• Examples:
– Windows Azure: C#, VB, C++, PHP, Java, Python, Ruby, and SQL Azure, etc.
– Amazon: Simple DB, S3
– Google App Engine: Python, Java
– Force.com: Wizard like languages, process modeler, APEX
– Orange Scape: Excel like language
– VMForce.com: Java (Spring) on Force.com
Characteristics of PaaS
• browser-based multiple development environments and runtimes
• Users can collaborate, design, develop, integrate, test, and
deploy applications
• Web-based GUI to work with different UI scenarios
• uses multitenant architecture
• common services/packages for database, network, and payment
integrations
• built-in security, scalability, and Web service interfaces to
connect other applications outside the PaaS
Benefits of PaaS
• Development and upgradations within the control of
consumers
• Reduced administrative overhead
• Payment is made only for the usage and duration
• Facilitates working with multiple platforms
• Applications’ dynamic resource requirements are taken
care automatically
Limitations of PaaS
• Interoperability and portability
• Security
• Scheduling
• PaaS not ideal for:

– An application with portability requirements
– Usage of proprietary languages or approaches
– Requirement for customization of the underlying hardware and
software
Infrastructure as a Service
• provides the complete computing infrastructure that includes operating
systems, security, networking, and servers for developing applications,
services, and for deploying development tools, databases, etc., as services
• Examples:
– Storage, e.g., Amazon S3, Amazon RDS, SimpleDB, Rackspace Files, Zetta, and
HP Object Storage
– Compute, e.g., Amazon EC2, Microsoft Azure, Rackspace Servers, HP Cloud
Compute, and GoGrid
– Network, e.g., Amazon AWS and Rackspace Cloud
– Cloud management, e.g., Dynect, RightScale, and Cloudways
Characteristics of IaaS
• multitenancy and resource pooling, resulting in optimum
resource utilization
• Cloud bursting resulting in significant cost reduction
• Data centers are geographically distributed around the globe
• Reservations can be made for resources in advance for a
specific duration of time
• Elasticity is implemented mainly in IaaS layer to cater the
needs of scalability and are provisioned dynamically.
Benefits of IaaS
• Consumer has the freedom of taking responsibility on SaaS
or PaaS components built on top of the rented IaaS
• Consumer can use sophisticated software that requires high-
end servers – no need t buy new servers
• Developers can utilize IaaS to develop and test their
applications on multiple environments
• Provider, relieving the overhead from consumers, handles
failovers, security, software upgrades, backup, and recovery
automatically.
Limitations of IaaS
• Security vulnerabilities
– Running legacy software in service provider’s infrastructure
• Virtual machine sprawl

– end user to operates the virtual machine, which may be out of date with
respect to security updates
• Data erase practices

– service provider must ensure that next user to rent the resource does not
observe data residue from previous user
X as a Service
• Anything as a Service or Everything as a Service
• Communication as a Service
• Database as a Service
• Network as a Service
• Testing as a Service
• Security as a Service
Thank You
Edge Computing
• Instead of housing processing power in a a centralized
data center (which is done in On premises computing),
data processing occurs in multiple small data centers
located at or near the source of transactions.
• The main purpose of edge computing is to push the data
as close to the actual device as possible, thus reducing
traffic and latency.
Cloud Vs Edge Computing
BigData Strategy
A situation – Reddy arrives home at 9.45 PM from his office
in Hyderabad. Being dog-tired, he is no mood to cook. Best
option for him is to cook noodles. He stays in Himayat
Nagar and More store is 3.8 KMs away. His bike wont start
and he books an OLA bike, buys a family pack of noodles
and walks back to the house to enjoy the stillness of the
night. He did that primarily to avoid the surge charges that
OLA bills after 10 PM. He cooks the two minutes noodles,
washes the utensils before hitting the bed
Decides to buy noodles Bike doesn’t Petrol quantity, engine OLA booking- how much bank balance
start temperature, when was the he has, did he open UBER app?, In OLA
vehicle last serviced app – did he look for fares for taxi?, was
Sensors in it expensive?, Did he open Rapido? How
Engine does OLA bike compare Rapido
Are there other stores on the way to In the store, did he browse other shelf?
More?
How long did he stand in the
APP in smart phone queue in the billing counter?
Store Camera
Wearable device, watch
Did he buy a packing
material? Did he open OLA? Rapido?
How long did he walk for?
Which stove he used for
cooking?
Sensors in stove,
What utensils did he use for cleaning device
dinner? What detergent he used for
cleaning?
AND THE STORY GOES ON

WHAT IS A CUSTOMER
TOUCHPOINT?
“A touchpoint is any interaction (including
encounters where there is no physical interaction)
that might alter the way that your customer feels
about your product, brand, business or service.”
Types of Touchpoints
• Company Created Touchpoints:

Planned marketing messages created
and controlled by the company
• Intrinsic Touchpoints: Experienced
when the customer buys the offering
and when the consumer consumes the
offering
• Unexpected Touchpoints:
unexpected references or information
that are not cannot be directly
controlled by the brand
• Customer-Initiated Touchpoints:
come into existence when the
customers contact the club themselves
What is the Process of Mapping & Tapping of Customer
Touch Points?
Evaluation Of Post Purchase
Need/Want Recognition
Alternatives
Prospective customer makes a Important factor in maintaining
Create a demand by generating the need
purchase decision after evaluating the relationship with the customer
within the prospective customer’s mind
different offerings and brands and producing repeated sales
Information Search Purchase Other Touchpoints

Prospective customer tries to find Touchpoints include the sales staff, the Present everywhere customer’s
packaging, and other factors which eye rolls and is up to the business
Information about the brands/products
Influence the purchase decision whether to tap it or not
which can satisfy his need
of the customer
Point of Data Generation How it can be used How to Capture
Check out from office Track how busy his day was Biometric system
Travel Data from office to home Check his time to reach home, Using SmartCard
traffic congestion, distance
travelled and cost
Smartwatch To know his level of tiredness Heartbeat and oxygen level sensor
Google search To know where and when he goes Search Habits

to purchase general items
Bike To know bike health status Using ECU
Ola Service To track his commute habits Ola Application
Point of Sale Data To track nutritional intake Barcode
information
Track his spending behaviour Using card / payment wallet
Store Track his buying behaviour Using CCTV
Phone(G-Maps) To track his real-time geo location GPS
Shoe Sole To track pressure points on the sole Pedometer, Sensor
Smart Mattress To track sleep cycle Using pressure sensor, motion
sensor
Anil Kumble Video
What is BigData
Big Data = Big Opportunity
Data is the new oil driving business opportunity
 Big Data” has moved from discovery to mainstream

 1st BDaaS expected in APJ in 2014
 Public Sector; Utilities; Manufacturing; Retail; Banking; Telco; Consumer
 Partners are key to success – SIs, ISVs, Distribution, Hardware
Big Data Industry getting

India Big Data Industry to grow traction in India w Analytics India has advantage of strong
to 30B USD by 2025 at CAGR Service Providers offering skill base for Big Data vis-à-vis
of 83% 2019-2025 Business Centric Solution other geography
Source: Nasscom Big Data Report India http://www.nasscom.in/sites/default/files/researchreports/softcopy/Big%20Data%20Report%202012.pdf

Big Data Examples
Instantly predict market trends Provide exactly the right

and customer needs offers and service levels to
every customer
Predict how market price Have a continuously-updated

volatility will impact your window into future sales,
production plans showing changes in real time
See changes in demand or Understand what your

supply across your entire customers and potential
Supply Chain immediately customers are saying about
you, right now
Monitor and analyze all Predict cash flows to manage

deviations and quality issues collections, risk and short-
in your production process term borrowing in real time
203
But most organizations are not addressing this opportunity…
Traditional financial metrics are backward looking
Annual revenue increase made possible

$12 if the Fortune 1000 business increased
the usability of its data by just 10%
Billion
Use Analytics
Today
Most Established
10%
KPIs are “Backward
Looking”
Need
75% Analytics
Nucleus Research, Gartner, Fortune Magazine

Also traditional IT architectures are
pressured …driving new solutions such as
Hadoop
2.8 ZB in 2012
85% from New Data Types
50x Machine Data by 2025
400 ZB by 2025
Ref: Hortonworks
New Sources (Sentiment,
Clickstream, Geo, Sensor)
205
Why? Information processing has become too
complex
Point optimization is not enough
206
Big Data Capabilities
Big Data
Big Data Platform Big Data Science
Analytics & Apps
Real Time Real Value Real Results
208
Big Data success demands full coverage
Answer complex questions on granular

data
Deep Predict the best next action
Massive data scale

On any device or to any
Many data types Broad Accessibl user
e
Self service and intuitive
interactions
Real-time streams of data

Real No data preparation
Ask a question, get an Time Simple
immediate answer No pre-aggregates
No tuning
209
Big Data is Strategic (eg: Acquisitions)
…revolutionizing the
way companies use
predictive analytics
to make better
decisions on
petabytes of data.
…KXEN
complements
existing advanced
analytics from SAP
including SAP
Predictive Analysis.
210
Big Data is Strategic eg: Partners)
http://hortonworks.com/partner/sap/
http://hadoop.intel.com/videos/idh-sap-hana-s 211
tory
BigData transforms both Businesses and
IT
• Reduce waste & fraud in government Sharpen marketing effectiveness
fund 56x faster reporting: micro-targeted
<2 min for detecting 100,000 names customer offers
over
90M records Accelerate monthly close & spending insight
75% reduction in CRM query
• Identify cancer DNA variants for ~23 to 6 seconds
treatment
216x faster results: 3 days  20 Launch new products or markets
minutes 400x faster report execution: Forecast
sales-trends in real-time
• Improve diagnostic through pattern
detection Remote roadside diagnostics in real-time
300M records; analysis in 2-10 Analyze 15 years 1 TB data
seconds in seconds
• Predict customer purchase sentiment Deeper customer relationships

Seasonality Analysis in 5 seconds 360 customer view and comprehensive
experience
• Improve labor utilization
1131x faster reporting time
• “Perfect order” experience

60x faster real-time insights
212
SAP HANA Data Platform for Big Data
to unleash real-time business value
Consume
Store &
Process
Ingest
213
Big Data Applications
Make Big Data

insights actionable
:-)
via industry specific, Audience Account Sentiment
business focused Discovery Intelligence Intelligence (RDS)
(CEI) (CEI)
applications from
SAP and companies
in the SAP Startup
Focus program. Customer Fraud Manufacturing
Value Management (Operational
Intelligence Intelligence)
(CEI)
Social Contact Demand Manufacturing

Intelligence Signal (Responsive
(CEI) Management Manufacturing)
214
Big Data Applications (eg: CEI)
Strategic
Mobile and Effective
Interactive Selling
Account
Targeting
Account
Intelligence Selling Recommendatio Personalized
ns Treatment
Customer Stratif
ication Real Time
Customer Classif Customer
ication Insights
Margin Decompos
ition
Customer Analytic
s Foundation
Customer Value
Customer Engagement Intelligence
Intelligence
215
Big Data Applications (eg: DSiM)
SAP Demand Signal Management is the enterprise platform for

integrating all relevant demand signals (internal and external) to a
single source of truth.
216
Data Scientists
Top (PhD) level global team. Science teams in Scottsdale, Walldorf and
Bucharest.
Credibility attained by working with >100 customers and creating some of the
most sophisticated use cases
Pioneers in demand science, with significant reusable IP and deep analytic
competencies
Insights and Compliance
Mathematical Modeling, Forecasting, Simulation, and Optimization
Experts in relevant SAP Technology: HANA, SAP Business Objects, SAP
Predictive Analysis, Visualization
Flexible delivery
M In
em -
or
+ f (x) 
2
e(x) /(2 2 ) +
y
PAL and R  2
integration
SAP HANA Data Science SAP Predictive Analysis Dashboards

Platform and beyond SAP Business Objects
217
Define Functional
particular
Decide Application
Strategy
Disaster Recovery
Skill, Resources
Saas, Iaas
Collaborators Roadmap ,Paas, DaaS
Decisions through Social
media Stakeholders Service Digital Strategy
Collaborators Cloud
through IOT BiZ Goals, Biz Computing
Data Warehouse
MIS based Metrics IT enabled
Analytics decision strategy
Unstructured Structured On premises
Engine
Data Data
Dashboard
IT Governance
BI
What is Big Data video
Annexure
KXEN Integration
Why KXEN?
Serve the Business User Expanded and Accelerated Market Credibility
Lower the Barrier for Predictive Predictive Capabilities
Modeling
 The Predictive market has  KXEN’s technology will enable  KXEN’s solution automation
struggled and continues to SAP to significantly enhance a approach will enable SAP to
struggle due to a shortage of number of its existing accelerate its foothold into the
skilled data scientists/analysts applications by adding powerful, Predictive market and enhance
to perform predictive modeling. intuitive predictive capabilities. SAP’s PA market credibility
 KXEN has taken a solution  60- 70% of the effort in the  Sold to over 500+ customers
approach that allows business predictive process is dedicated
users in LoBs to solve common to the creation of properly
Predictive problems without the  Proven success with impressive
formed Analytic Data Sets.
need for highly skilled data references
KXEN provides an entire
scientists. module (Explorer) to enable
users to easily create reusable  4th in market share behind SAS,
analytic data sets. IBM/SPSS and MSFT
 KXEN adds model

management and social
network analysis to SAP’s
portfolio
Solutions for the entire spectrum of Users
Low Data
Scientist
Medium Business
Analysts
# of Users
Industry & Business Process Analytics
Business Users & LOB

High
Embedded Analytics
Low Medium High

Level of Skillset
Run, Grow and Transform the Business – Industry Use
Cases
* SAP existing assets
Financial
E-Business Services Manufacturing
Telecom Retail CPG
•Next Best Activity •Customer Loyalty •Product Launch •Regional •Next Best Activity •Brand Sentiment &
•Cross Sell/Upsell Analysis Success Forecasting •Cross Sell/Upsell Sales Analytics
•Churn Reduction •Pricing Optimization •Brand Sentiment •Brand Sentiment & •Churn Reduction
•Brand Sentiment •Product Launch Success & Sales Analytics Sales Analytics Customer
& Sales Analytics •Brand Sentiment & Sales Segmentation
CRM Analytics Brand Sentiment &
Sales Analytics
Risk •Credit Scoring •Credit Scoring •Credit Scoring •Credit Scoring •Credit Scoring •Predictive Asset
•Compliance •Compliance •Compliance •Compliance •Compliance Maintenance
•Retail Outlier
•Fraud •Fraud Management & •Fraud •Fraud •Tax Fraud •Fraud Management &
Management & Prevention Management & Management & •Credit Card Fraud Prevention
Fraud Prevention •Optimizing Product Prevention Prevention •Insurance Fraud •Optimizing Product
•Optimizing Quality •Optimizing •Optimizing Quality
Product Quality Product Quality Product Quality
•KPI Forecasting •KPI Forecasting •KPI Forecasting •KPI Forecasting •KPI Forecasting •KPI Forecasting
•Anomaly •Anomaly detection •Anomaly •Anomaly detection •Anomaly detection •Anomaly detection
detection •Usage forecasting detection •Usage forecasting •Usage forecasting •Usage forecasting
•Usage •Store Segmentation •Usage •Variable Margin Analysis
forecasting •In-store Workforce forecasting •Yield Management
Operations Optimization •Equipment
•Size and Zone Effectiveness
Optimization
•Market Share Prediction
•Out of Stock Prediction •Out of Stock •Out of Stock •Predictive Commodity

Supply •Inventory and Logistics Prediction Prediction Management
Chain Planning •Inventory and •Inventory and •Improving Demand
Logistics Planning Logistics Planning Planning and Inventory
Management
Infrastructure / Platform
SAP HANA Driving Sales & Ecosystem Expansion
Defining the next generation database platform
Triple Digit $300m $200m

Growth Services Hardware
Reselling & 650+ New Cloud &

Incentives Startups Hosting
SAP HANA: Predictive & Machine Learning
Provide Business Analysts with

sophisticated algorithms to take the next
step in understanding their business and
modeling outcomes.
Perform statistical analysis on your data
to understand trends and detect outliers in
your business.
Build models and apply to scenarios to
forecast potential future outcomes
Combine, manipulate and enrich data to
apply it to your business scenarios. Self-
service visualizations and analytics to tell
your story
SAP HANA platform converges Database, Data Processing and Application Platform
capabilities & provides Libraries for predictive, planning, text, spatial, and business
analytics so businesses can operate in real-time.
226
SAP HANA: Text Analysis for Big Data
File Filtering
 Unlock text from binary documents
 Ability to extract and process unstructured
text data from various file formats (txt,
html, xml, pdf, doc, ppt, xls, rtf, msg)
 Load binary, flat, and other documents
directly into HANA for native text search
SAP HANA and analysis
Text & Sentiment
Analysis
Native Text Analysis

 Give structure to unstructured textual
content
 Expose linguistic markup for text mining
uses
 Classify entities (people, companies,
things, etc.)
 Identify domain facts (sentiments, topics,
requests, etc.)
Analyze Predict
Search  Supports up to 31 languages for linguistic
mark-up and extraction dictionary and 11
languages for predefined core extractions
227
SAP IQ: Market Leader for Extreme EDW
2200+ customers with over 4500+ High performance analytics server

installations worldwide Columnar RDBMS (stores data in columns-
versus rows – extended storage for HANA)
Used by twice as many Optimized for managing and accessing
companies as the next leading massive amounts of data for analytics (vs
provider transactions)
Patented data compression Accelerates analytics and reporting

dramatically reduces data storage Up to 1000-times faster than traditional
requirement; cuts TCO transactional databases
Handles structured and unstructured data
Only column-based solution to High compression and low TCO
support full text search, in-
Highly scalable grid architecture
database analytics, and federated
analytics
Warm Big Data; Near real time loading and querying needs; Open/Commodity
Hardware; Hundreds of Terabytes to Petascale; Leverage current HW investments in
commodity hardware (Windows, Unix, RedHat); NLS for SAP HANA, Deep Hadoop
Integration
228
SAP IQ: Integration with Hadoop
Client-side federation: Join data from SAP IQ and

Hadoop at a client-application level
Load Hadoop data into SAP IQ: Extract, transform, and

load data from Hadoop distributed file system (HDFS) into
ETL
schemas of SAP IQ via SAP Data Services
Join HDFS data with data of SAP IQ on the fly: Fetch

and join subsets of HDFS data on demand, using SQL
queries from SAP IQ (data federation technique)
Combine results of Hadoop MR jobs with SAP IQ data

on the fly: Initiate and join results of Hadoop MapReduce
(MR) jobs on-demand using SQL queries from SAP IQ
data (query federation technique)
229
SAP Lumira: Visualizing Big Data
unleash analyst creativity
Provides the freedom to understand your data, personalize it, and Self Service for
create beautiful content Analysts
Download and install on your desktop

in less than 5 minutes
Insight from many data sources
Combine, manipulate and enrich data
to apply it to your business scenarios
Self-service visualizations and
analytics to tell your story
Optimized for SAP HANA for real-time
on detailed data
230
SAP ESP: Streaming Big Data
Analyse and act on events as they happen – by relying on real-time event-driven analytics. With our award-winning
complex event processing (CEP) platform, you can develop and deploy business-critical applications that give you the
agility you need to make quick, profitable decisions.
Process and analyse multiple streams of high-

speed, high-volume complex event data in real
time
Get actionable information from event streams
and generate alerts for events needing quick
action
Initiate automatic responses to changing
conditions based on one or a combination of
events
Develop applications quickly for fast ROI with the
high-performance CEP engine
231
SAP Business Objects: Analysing Big Data
Interactive
Reporting
Dashboards Analysis
&
Visualization
BI Platform Search &

Reporting
Exploratio
n
Semantic Layer
232
SAP InfiniteInsight: Using Big Data
end user predictive analytics
Revolutionizing the way companies use predictive analytics to make

better decisions on petabytes of data.
Predictive analytics’ first-ever semantic layer

Automates the building of sophisticated predictive models for every data
mining function.
With clicks, not code, InfiniteInsight Scorer can deploy optimized scoring
equations
End-to-end social network analysis capabilities
Powerful visualization capabilities and graph exploration
233
SAP Mobile Platform: Mobile Big Data
Rapidly design cost-effective, innovative apps with the most open and standards-based mobile
application development platform
Simplify IT with integrated device

connectivity and management, data
analysis, and business processes
Inspire loyalty and reduce support
costs by offering intuitive, user-centric
apps – faster
Engage users in a direct, two-way
conversation with apps that work on
any mobile device
Improve operations by giving
employees and partners anytime,
anywhere access to mission-critical
applications
234
SAP Big Data Bundles
Integrated stack, flexible bundles, customizable to meet customer requirements and data footprint sizes,
purchased by the edition, added to as needed, or purchased a la carte, including all relevant Big Data
technologies & services
SAP HANA platform

SAP IQ
Hadoop distribution from Intel or Hortonworks
Data procurement via Data Services and stream
processing via SAP Event Stream Processor
(ESP)
Advanced Analytics PA/KXEN & Visualization (BI
4.1/Lumira)
Data Science services
Big Data specific Industry/LoB applications &
solutions
235
Sales Triggers
Compelling events that create opportunity for SAP Big Data?
 Customers driving competitive advantage through “Innovation

Agenda”
 Exponential data growth based on business change

(acquisitions, new business models (value chain extension,
social media marketing, ….)
 New business application requirements / Issues with SLA’s
 ERP consolidation
 EDW reconsideration / ‘Burning’ EDW platforms, disruptive

“change” events
 Outsourcing / In-sourcing of IT operations / Data center moves
 Depreciated infrastructure / hardware refresh (good for

SoH/BWoH)
 Customers wanting to get away from competitive platforms

Pricing & Deployment Models
How do I sell HANA?
Runtime HANA HANA EE

% of Apps Edge €xxxk / unit
€xxk / unit
AWS Cloud HEC Partner
0.99c / hr IAAS Clouds
OEM ISV VAD

Bundles Runtime Resellers
Next step
Business scenario recommendation and value discovery workshop
• SAP offers a proven Value Discovery

methodology and workshop with
approach to discover the your LOB and IT
customer specific experts to develop
business improvement a strategy and
areas and quantify value roadmap for Big
potential Data
238
For More Information
http://www.sapbigdata.com/
239
BigData in IT Strategy
• Big Data: It has 4 major characteristics. They are
– Volume: Refers to huge size/ quantity of data
– Velocity: Refers to the speed of generation of data
– Variety: Different categories of data e.g. SMS, Text, Whatsapp,
Mail
– Veracity: Deals with integrity & accuracy of data
BigData in IT Strategy…contd..
Structured Data Unstructured
1. Data that comes from business 1. Data that comes from social media
transactions such as sales report, such as websites, mails, GPS based
market share etc. Locations, apps on mobiles/tabs
2. It is analyzed by BI tools such as 2. Analysis is done by crowd sourcing, textual analysis,
Hadoop, Cluster Analysis, Predictive Sentimental Analysis (feeling Happy/Sad), social net-
Modelling, & Data mining work analysis (SNA) – GPS based, Relationship, DND
Servise
3. IT Enabled strategy – cubing, slicing, 3. Here we measure awareness, word of mouth (likes,
Dicing of data, leads to MIS shares), engagement, reach of the person, number of friends, geography wise
friends, number of views, types of communities, number of groups, number of posts,
frequency of self generated contents, Tools used – Foursquare, Profile views, digital foot print. Web traffic,
no of clicks, reviews (mouthshut)
4. Monitoring, reporting, predicting, Forecasting, security monitoring of a political leader
(How deep data will be dependent on a company)
BigData in IT Strataegy
Structured Data Analysis
Un structured Data Analysis
Vision,
Consumer
mission,
experience,
Goals
SMS, text Converts unstructured to
buckets, categorization
Metrics of unstructured data
Script
Application
Strategy
Technology scorecard
Data
Application
Feedback Metrics Strategy
Goals
Decision
• Applications/tools are different in both the cases

• Both the application strategies need to be in sync
• For unstructured data, the applications should be updated in order to catch
new phrases
• need to integrate the applications
• change in goals through unstructured data - > update the same in our actual
goals, e.g. Apple Inc readjusted its goals for iphone 11
BigData in IT Strategy…contd.
• Big Data Strategy:
• Decide structured and unstructured metrics, goals, and categorization.
– Develop processes for collecting data
– Decide applications that will help you in collecting the above data
– Integrate these applications with Application Strategy
• Develop big data capabilities
– Define workflow
– Develop roles and responsibilities (What, When, Who, How)
– Training programs to develop skills & to understand business metrics and technology
– Find out an application strategy- Define Hadoop, CRM, Web Analytic Tools
– Define Storage space
– Define back up strategy
– Define a disaster recovery process and determine whether to use IOT or not Cloud Computing Strategy
– Storage space with index/ search capabilities
– There should be scalability for future data
– Hadoop tool selection
BigData in IT Strategy..contd.
• Mindset to change – Product/Service based to ecosystem centric biz model
• Focus on journey, touch points
• Understand other players in the ecosystem – collaborate and compete
Customer Insights, Mkt Insights,
• Co-develop and offer solutions to customers
Product Insights,
• Earlier to reduce the cost of data collection, now easily available
– Hence monetize it by feeding to Analytics
• IPR is not on data, but on Analytics engine
BigData business model maturity
Business Insights Business Optimization Data Monetization
BI Data Transformation Algorithms MIS, Data Warehouse Business Metamorphosis

(Bigdata Led IT
Strategy/Digital Strategy)
Steps: 1. Data Warehouse, Mining. 2.
Convert Unstructured to Structured. 3.
Use Algorithms to identify business
opportunities. 4. Define/Redefine Biz
strategy/goals
BigData Strategy in ITS…contd.
Data collection point BigData Measurement Final desirable Biz benefits
Browsing Social, Mobile Insights, behaviours, Audience Identification, Segmentation,

Pattterns, Psycho, Demographic data Creating Focus Group, Engaged
Customer
Browsing Purchase Decisions, Keyword Inventory decisions, Product category

searches, Clicks campaign
MIS BigData based BI
Uses dashboard/MIS MIS PLUS Does Sensitivity Analysis
Optimal scenario
What if? What is happening?
Static, Benchmarking (internal, external) Patterns, Experimentation
Pre planned Chosen on the fly
Single version of truth Probabilities
Relationship Database Informal/ Semantic Database
Report What happened Predict what will happen
Business Goal Data Warehouse Algorithms
Predictions
Decisions
BIG DATA CYCLE

Define Functional
particular
Decide Application
Strategy
Disaster Recovery
Skill, Resources
Saas, Iaas
Collaborators Cloud
Data Warehouse
Engine
Data Data
Dashboard
IT Governance
BI
• Title – Bi Data Strategy Author: Bill Scmarzo, Library Call
No 658.4038/SCM, Access No – 46644
1. Mindset has to change for adopting BigData
– Move from product/service cntric to
Ecosystem centric biz model
– Focus on what customer tries to accomplish
– Ex. Mr Reddy cooking noodles
• Buying grocery, going by auto, payment, store video etc.
2. Five strategies needed to be successful
– Find a balance between bottom-up (tech-led) and top-down (business-led) planning
– Recognize that there is no single ‘big data’ technology ….>hence cloud computing can
give flexibility
– Big data has many different use cases (business scenarios)
– Make sure that your planning is long-term
– Put in place an agile, flexible big data platform
BigData in ITStrategy..contd.
TYPICAL DATA TYPES IN bIgdata
New kinds of data and analysis 16%
Real-time information 15%
Data influx from new technologies 8%
A greater scope of information 13%
Non-traditional forms of media 13%
Large volumes of data 20%
The latest buzzword 8%
Social media data 7%
Investment Required in Security and governance High-capacity warehouse Scalable storage Information integration
BigData in ITStrategy
• BigData Adoption Strategy
• Educate
• Market Observation
• Industry Analysis
• Define Metrics
• Monitoring Template
• Explore
• Understand stakeholders (ecosystem)
• Prioritize business needs
• Prepare Roadmap
• Piloting
• Piloting Strategy
• All Features (AF) Some Offices (SO)
• All Features (AF) All Offices (AO)
• Some Features (SF) Some Offices (SO)
• Some Features (SF) All Offices (AO)
• Feedback Collection
• Roll Out
• Rewards and Recognition
• Senior Management Review
• Milestone based (external auditors/stakeholders)
• Periodic Review
• To overcome obstacles in BigData Strategy adoption
• Preparing a business Case
• Defining Use Cases
• Data Quality
• Data Availability from collaborators
• Capability of Analytics Engine
• Technical Skills
• Infrastructure Capability - Storage Capability
BigData in IT…contd.
• Challenges faced in adopting BigData –
McKinsey video
• BigData changes ecosystem in Sports – Usain Bolt video
AI + Machine Learning +BigData-
An Overview
Source : http://www.the-vital-edge.com
Researchers Announce Advance in Image-Recognition Software
Source : http://www.nytimes.com/2014/11/18/science/researchers-announce-breakthrough-in-content-recognition-software.html?_r=0
254
Google Wants to Use Artificial Intelligence to Help Prevent Blindness
Source : http://fortune.com/2016/07/05/google-artificial-intelligence-blindness-nhs/
https://thenextweb.com/plugged/2020/03/09/googles-ai-powered-smart-glasses-help-the-blind-to-see/
https://www.statnews.com/2020/05/18/google-ai-identifies-patients-at-high-risk-of-blindness/
255
Tesla Autopilot Enthusiast Killed In First Self-Driving Car Death
Source : http://www.forbes.com/sites/briansolomon/2016/06/30/the-first-self-driving-car-death-launches-tesla-investigation/#388bd43062d0
256
Stephen Hawking warns of ‘AI arms race’ – and reveals what most
mystifies him
Source : http://www.geekwire.com/2016/stephen-hawking-ai-arms-race-
mystery/ 257
A.I. Artificial Intelligence - Movie
Source : http://www.audienceseverywhere.net/a-i-artificial-intelligence/
258
Artificial Intelligence
What is A.I?
 Turing Test
Current State : MIT's artificial intelligence passes key Turing test
Source : http://www.zdnet.com/article/mits-artificial-intelligence-passes-key-turing-test/
What is Intelligence?
259
Machine learning is all the rage with Big Data developers
Study Details:
• Most Popular Machine Learning
Algorithms are
 Decision Tree
 Linear Regression
 Logistic Regression
• Distribution Logistics Operations
departments will use Big Data and
Advance Analytics to boost their
performance
• 42 % of developers is used to analyze
Big Data In real-time
• 38 % of developers analyze unstructured
Data
Source : http://siliconangle.com/blog/2016/07/07/machine-learning-is-all-
the-rage-with-big-data-developers/
260
BigData
What is BigData?
Large amount of data. It means data of size anything from 1 petabyte (1 PB = 1000 TB) to an Exabyte (1 EB =
1000 PB) of data
Characteristics
 Volume : Amount of data
 Velocity : The speed at which data is getting processed
 Variety : Sources of data and type of data
Unstructure Semi- Big
Structured
d structured Data
Data
Data Data
 Veracity : Correctness of data
261
Social Network Data Generated Every minute
Youtube
users
upload 72
hours of
new video
Apple users Email users
download send 200
nearly million
50,000 messages
apps
Every Google
minute of receives
2,000,000
the day search
Amazon queries
generates
over
$80,000 in Source : BigData (Covers Hadoop 2,
online sales Facebook MapReduce, Hive, yarn, Pig, R and Data
Twitter users share Visualization Black Book Published by Dreamtech
users send 2.5 million Authored by DT Editorial Services
over pieces of
300,000 content
tweets
262
BigData Challenges
Capturing Data
Managing (Storing) of Data
Search
Share
Transfer
Analyzing (Processing) of Data
Presentation
Why do we need to Process BigData?

 Product Design Retail CC TV Images
 Customer opinion posted on Facebook/Twitter Credit Card Fraud
etc. RFID
 Recommendation system Insurance cross Selling
 Product Popularity
etc….
263
What is Machine Learning?
Machine Learning is the field of study that gives computers the ability to learn without being explicitly
programmed
- Arthur Samuel 1959
A computer program is said to learn from experience E with respect to some task T and some performance
measure P, if its performance on T, as measured by P, improves with experience E.
-- Tom Mitchell, Carnegie Mellon University,1997
264
Types of Algorithm
Machine Learning
Classification Optimization Regression
K-NN Heuristic
Search ANN
Bayesian
Classifier SVM
Decision Tree Genetic
Algorithm Market Basket
K Means Ant Colony
Optimization
Fuzzy C Means Particle Swarm
Optimization
SOM Gradient
Descent
Hill Climbing
265
IRL
-Intelligent
Retail Lab
https://www.forbes.com/sites/christopherwalton/2020/04/10/walmart-is-setting-a-smart-example-
for-the-rest-of-the-grocery-industry-to-follow/#5c8cb8a01727
266
Recommen
der System
267
Google
Duplex
https://www.youtube.com/watch?v=9uyvL1D9Q_M
268
AutoML-
Zero
 https://syncedreview.com/2020/07/21/automating-machine-learning-google-automl-zero-evol
ves-ml-algorithms-from-scratch/
 https://www.sciencealert.com/coders-mutate-ai-systems-to-make-them-evolve-faster-than-we-
can-program-them
269
AI
Generated
Text
 http://www.nexchangenow.com/news/smart-cities/69063/ai-text-generator-could-spread-worrisome-fake-ne
ws/
270
271
272
Gap Inc
• Apparel industry
• Brick and Mortar retailing losing sheen
• Rise of fast fashion
• Commoditizing apparels
• Adoption of e-commerce
• PORTER”S five forces
• Threat of new entrants – high (private labels)
• Bargaining power of suppliers – low
• Threat of substitutes – High
• Bargaining of power of buyers – High
• Industry Rivalry - High
• Disruption Point?
• Rapidly changing retail industry characteristics
• Dynamic conditions, many factors impacting industry as a whole
SHOULD WE GO FOR BigData?
Gap Inc…contd.
• VMG
• Facts –
– Market share low
– Creative Director replaced by Google Analytics
– Product mix
– Marketing mix
– Distribution mix – Amazon to sell its products
– Predictive Analytics
• For existing products
• For new design
– New retail design
– Direct to Customer approach
Gap Inc…contd.
Creativity is not effective Inventory Management issues
Loss in Sales
Pricing Forecasting
Gap Inc…contd.
Role of Analytics in Fashion industry/Gap
Traditional design Google Analytics
How well we can predict design based on Are consumer preferences stable in
past data fashion industry
Same Assumptions are used for What influences your fashion preference?
predicting future design preferences
Do designers create or fill latent needs?
Same assumptions and approach for all Resegmentation?

three brands : Old Navy, Banana Republic What if one is fashion, the other
and Gap? commoditization and the third apparel?
Reactive – based on transactions Decisions on the fly
Establishes one captain who sets vision Reflects market preferences, removes
for the brand, creative directors imagine guess work, decisions on facts, not
and give new directions assumptions
Produces clear and consistent brand Provides instant feedback that
identity that attracts customers to it
Approach is same as that of Zara Collaborative Effort
Gap Inc…contd.
Role of Analytics in Fashion industry/Gap
Google Analytics Sales and Customer Social Media Collaborative Process

Database
Clear Brand Vision
Design
Merchandising
Inventory
Production
Piloting
Update Database
+
Customer Program
+
Customer Feedback
Replenish/ Produce More Modify Goals

Gap Inc…contd.
Luxury, expressive Commodity, utilitarian,

High Fashion Designers Data Analytics functional
High Margin Fast Fashion
High Risk Mass Production
Quickly changing Low Risk
Diffuses through Less Margin
adoptive curve Taste following
Taste making
1. Consumers – High Society, 1. Consumers – Price Sensitive

Actors/ Exclusive 2. Brands: Ajio, Max, H&M
2. Bramds: Chanel, Burberry, 3. Industry : Apparel Business Goals changed
Old Zara, Old FabIndia – more profit, more sales,
more market share
3. Industry :Fashion
Gap Inc…contd.
SHOULD GAP SELL THROUGH AMAZON
Yes No
Increase exposure Lose control over pricing,
positioning, communication
New customer cquisition Exclusive customers/
Repeat business
Can bebefit from Amazon Loses direct communication
recommendation system to customers
Profit down, sales down, It will be in apparel industry
BigData can revive
What does the CEO say?
• Video
Un structured Data Analysis
BigData in Gap
Consumer • Improvement in processes
experience, • New business use cases
SMS, text
• Repricing in real time
Converts unstructured to • Metrics – beter click through rate (CTR)
Script buckets, categorization
of unstructured data
• Recommendation system
• Better ITO – inventory turnover ration
Data • New insights, new information
Application
Strategy
• Zipcode based customization and cross selling
Metrics – Zipcodes with hot humid offered Pantene Smooth, zipcodes with low humidity
offered Pantene Volumizer for that adds volume to the hair
Goals
WILL YOU GO FOR BIGDATA IN GAP

Netflix and BigData
• It makes sense here video
Artificial intelligence In business
Objectives
• Understand what AI can and cannot do(yet)

• Challenges
• Recommendations to overcome the challenges
AI the next big disruptor - what is
it ?
• The Turing Archive for the History of Computing defines artificial intelligence (AI) as “the science of making computers do
things that require intelligence when done by humans.”
• Human intelligence - not a single ability or cognitive process but rather an array of separate components
• Artificial intelligence - focussed chiefly on the following components of intelligence: learning, reasoning, problem-solving,
perception, and language-understanding.
• Artificial intelligence (AI) is revolutionizing business. By tapping into vast stores of previously siloed data, you can
fundamentally transform the way you do business. You can use AI to improve customer care, talent retention and
selection, risk and compliance, and digital automation
The BBC's quick guide to artificial intelligence.- https://www.youtube.com/watch?v=fvtrRGmv7aU

AI for Job interview - https://www.youtube.com/watch?v=QfuGRCmXmCs
Uber and AI - https://www.youtube.com/watch?v=wGZgbuVr1ro
IIT-Hyderabad develops AI-enabled software to catch bike riders without helmet
AI / Cognitive systems Vs traditional
programmed computing systems
UNDERSTAND REASON LEARN INTERACT
AI systems understand They can reason, grasp With each data point, With abilities to see,
imagery, language and underlying concepts, form interaction and outcome, they talk and hear, AI systems
other unstructured data hypotheses, and develop and sharpen expertise,
so
interact with humans in
like humans do. infer and extract ideas. they never stop learning. a natural way.
Why AI and why now?
To digitally re-invent and to thrive in the face of technology
led disruption
Digital
Reinvention
Digital transformation
Digital Reinvention
incorporates digital
technologies like never
Digital transformation before to create revenues
digitizes whole aspects of a and results via innovative
Digitization business producing strategies, products and
Digitization improves customer experiences that experiences.
efficiency by applying support what individuals
technology to individual need or want.
resources or processes.
THE FIRST PhD REPORT ON AI WAS SUBMITTED IN

1932
Why AI was so late in adoption?
• Increased computing power
• Digitalization
• Advent of Cloud Computing
• Data
• Neural Networks
• Psychological integrations and
cognitive intelligence
• Business Relevance
• Introduction of improved algorithm
• Programming Language
Why AI and why now?
New capabilities are needed to provide insights using large volumes of complex and volatile data
DATA COMPLEXITY VOLATILITY
How to keep up with the How to overcome and solve for How to stay ahead of
mountains of contextual data great complexity by giving the the ever-changing expectations
available to you, even when skill and knowledge of the customers have for what’s
most of it is unstructured in informed few to the empowered possible, leading your market
format many segment in new ways
AI is underpinned by many advanced
technologies
Augmented intelligence
Simulation of human intelligence
Business value
Prescriptive analytics processes
Analyze data and suggest

something as per user’s interest Robotics Create new ways of interacting
Conception, design, manufacture, and with customers
operation of robots
Reveal more powerful on-

Predictive analytics demand business insights
Machine learning systems
Predicting outcomes using statistical
Ability to learn and improve without
through real-time access to data
algorithms and machine learning
explicit instructions
Enable business model – and
Deep learning Natural language processing ecosystem – transformation
Machine learning with artificial Ability to understand human speech as it is
neural network algorithms spoken
Principal machine learning techniques
Statistical machine learning: In this

approach, a practitioner defines a Artificial Neural Networks (ANNs): This
statistical model and then uses data to Data mining: In to statistical machine technique was inspired by how the
verify the correctness of the model. If learning, data mining uses the data to human brain works. ANNs learn
the model provides the expected train or develop the model. The model (progressively improve performance) to
results with the data, then it might be is refined by additional data or do tasks by considering examples,
used to make predictions or decisions interactions with humans generally without task-specific
in situations for which we do not have programming.
any existing data.
Supervised and Unsupervised

Learning: As we discussed above,
machine learning algorithms learn from Deep Learning: Machine learning
data. A machine learning technique is algorithms created using ANNs are
called “supervised learning” if it uses called deep learning.
labeled data, otherwise it is called
unsupervised learning.
A few Statistics…
• Total AI-led market is $24B in

2018, growing at a 44% CAGR
from 2018-2020.
• Retail, Banking & Financial
Markets and Healthcare
Provider are the top 3 industries
for the AI-led opportunity
• AI Implementation score – 2.4
AI & Cognitive tools in the market
Where can AI be applied
• AI is good at tasks that scale or that involves lots of

data that must be categorized or translated. Training
data should match use cases
• AI is generally not a good fit for tasks where data is
bad or not representative of real experience
Use
cases
AI Framework
Artificial Intelligence
What is A.I?
 Turing Test
Current State : MIT's artificial intelligence passes key Turing test
Source : http://www.zdnet.com/article/mits-artificial-intelligence-passes-key-turing-test/
What is Artificial Intelligence?
296
Case 1: Speeding customer
response times by 99 percent with
IBM Watson
• Business challenge - Recognizing that shifting to a subscription business model requires real-time customer
service and support, a software corporation sought to use cognitive technology to enhance its customer
experience.
• The company is a global leader in 3D computer-aided design (CAD), engineering and entertainment software.
• For more than 34 years, the software giant sold its popular 3D design, engineering and entertainment software
under perpetual desktop licensing agreements. However, the way customers want to buy and access products
is changing—from working with desktop applications to using software hosted on cloud and mobile platforms.
• Currently, the company maintains a staff of about 350 internal and external customer support agents who
handle roughly one million customer and partner contacts per year, half of which pertain to activation code
requests, changes of address, contract problems and technical issues. Due to the heavy volume and
complexity of the issues, the current resolution time for inquiries can be 1.5 days or more.
• With the move to subscription underway, the company needed to respond more quickly to customer inquiries
and scale for future volume.
Case 1: Speeding customer
response times by 99 percent with
IBM Watson
• Transformation – Using the Watson Assistant AI tool, the company developed a virtual agent that interacts
with customers and returns answers quickly by recognizing the intent and context behind inquiries.
• The Watson Assistant service allows customers to enter questions in natural language, as they would with a
human agent. Trained on the subtleties of language, such as idiom and syntax, and powered by natural
language processing (NLP) and deep learning techniques, the solution understands the intent of customer
questions and returns high-confidence answers quickly. It also recognizes keywords and phrases to
understand the conversation’s context and purpose.
• To train and develop the technology for its needs, the company feeds historical data from chat logs, use
cases and forum posts into multiple open source machine learning programs, and has analyzed a total of
14 million sentences for keywords, entities, phrases, clusters, and other speech and language patterns.
This information is the corpus of knowledge on which the conversational API is trained so that it
understands the broadest array of customer inquiries and recognizes exactly what customers are asking.
• Benefits – improves efficiency, boosts response times and empowers users
Case 2: Expert Service, 60%
faster
• Business challenge - One of France’s leading banks, has over 5,000 branches receiving over 350,000
online inquiries a day, with volume growing at 23% a year. Maintaining the quality of client relationships,
while dealing with an ever-rising stream of customers and client requests, meant reinventing the client
advisor’s role or losing their competitive edge.
• Transformation – After doing a diagnosis of how client advisors were spending their time, the company
found that a significant part of their activity was answering simple and repetitive questions. With this in
mind, the company turned to AI to find a solution that could speed up everyday processes and give client
advisors more time to address complicated and nuanced problems.
• The bank has trained Watson to help its client advisors provide customers with quick and comprehensive
information on a whole set of offerings, from car and housing insurance, to a range of savings and
investment products.
• Benefits – improves efficiency, boosts response times
Case 2: Expert Service, 60% faster
How Watson learned in 5 steps :

• Watson was trained - On four virtual assistants and an email
analyzer, learning banking and insurance vocabulary and
building 50,000 lines of dialogue.
• Watson was tested - By rolling out solutions progressively in
the company’s different lines of business.
• Watson was launched - And is assisting 20,000 customer
advisors in strengthening customer relationships in 5,000
Case 3: Instant expertise
• Business challenge - In an industry requiring absolute

accuracy, it is critical that the oil and gas company’s
engineers avoid guesswork. To ensure precision, they rely
heavily on historical context and procedural information.
Unfortunately, every time an expert with years of
knowledge and knowhow retires, that experience walks
out the door with them.
• So the question for the company became, how do you
Case 3: Instant expertise
How Watson learned, in five easy steps:

• Watson was trained - Watson absorbed over 600,000
pages of documentation, from reports to correspondence.
• Watson was tested - The machine learning model was
continuously updated to be able to analyze a higher
volume of records.
• Watson was launched - Over 80% of employees adopted
Watson for their day-to-day work.
Case 4 : Detecting citizen concerns with 97% accuracy using IBM Watson
services
• Business challenge - To help organizations and businesses improve their customer experience, an analytics and
software engineering agency specializing in applying machine learning and AI technologies to drive innovation,
sought to unlock insights hidden in unstructured data, including social media, call center logs, letters and emails.
• The company referred to unstructured customer-experience data as “dark data,” because it lies dormant in call
center complaint logs, online surveys, and verbatim comments made in emails and letters and on social media.
This untapped resource can reveal a fuller, more precise picture of the customer experience by providing
invaluable insights into qualitative, individualized dimensions of relationships, including emotion and sentiment.
• Transformation - The company selected IBM Watson Discovery services to build an insight engine for powering a
new AI platform that can deliver highly accurate, detailed insights into customer experiences.
• 97% accuracy achieved in new insights that a local government entity used to drive ROI on initiatives to improve
citizen experiences
AI for Improving customer service
• There are a host of pain points customer service

executives expect cognitive computing to address
Not knowing why the customer is calling 39%
Inability to route calls to the appropriate representative 34%
Not knowing customer history 32%
Inability to identify the caller 32%
Call inefficiencies that result in excessive hold times 31%
Inability to understand behaviors that are driving repeat calls 29%
Inability to effectively forecast and manage call volume and resources 25%
Inability to track issues to implement corrective actions quickly 21%
Inability to provide real-time support for product information or sales 21%
Inability to know when to place outbound calls to customers 19%

Cognitive Automation Scenario – As-Is [Illustrative]
One Day at Call Center ..
1 Hey, I am Laura, I am trying to I am really sorry Ma’am, can you
2
purchase a Cell Phone through please tell me what error message
your Website .. But I am stuck in you see on screen..?
Step 2.. I just can’t proceed?!!
3 Ok..let me raise a Ticket for 4
Yeah.. it is ERR1234.. you..please be on line .. I will give
you the Ticket No..
6 Caller waits for 3 mins ..
5
Ok, Thanks for that..but Thanks for your patience .. Your Ticket
can’t you solve the problem No. is CMP0123-15..is there anything
right now..? This is my else I can do for you?
Daughter’s Birthday Gift.. I
don’t want to be late!! Am really sorry Ma’am, but our 7
Support Engineers have to look into
8 Hmm..that’s it..it may take up to 24 hrs to fix
Frustrating..anyway .. this..but it could be sooner..
Thanks for your help…
You are Welcome..have a nice 9
day!
5-7 Mins Interaction with no Immediate Resolution
Support Engineers fix the problem in next 12 hours but the frustrated
User has moved to the competitor’s Website by that time..and not going
to come back anymore…
Cognitive Automation Scenario – 1 st
Generation
And see how it can be a completely[Illustrative]
different experience with Cognitive
Automation!
1 Hey, I am Laura, I am trying to I am really sorry Ma’am, can you please
2
purchase a Cell Phone through your tell me what error message you see on
Website .. But I am stuck in Step 2.. screen..?
I just can’t proceed?!!
3 Ok..let me check it for you right 4
Yeah.. it is ERR1234..
now!
11
Hey Watson! ERR1234 .. What
should I do..?
5
Sure, let me try right away..
Amazing, it Works!! 6
Thanks a Ton!!
7 Perhaps the problem is related to DB Entry
Yes please..the Locked in SAP .. Do you want me to
User is on Call! check.. and I can fix it for you if you want!
10 8
Hello Ma’am, it should Watson passes on the control to invoke a Robot to
Result? Problem resolved in 5 mins work now, can you please
try once?
execute Problem Remediation SOP for SAP DB
Lock Entry… which fixes the problem
interaction..
That’s Great! Happy12
Happy User shares the great
Shopping! Hey, it is fixed, can you ask the
User to Try once now?
9
Customer Experience in FB Friend
Circle..
Cognitive Automation Scenario – 2 nd
Generation
As Watson grows it’s knowledge base, [Illustrative]
it will start front-facing the Customer, occasionally
engaging a human SME only when needed ..
I am really sorry Ma’am, can you please 2
1 Hey, I am Laura, I am trying to tell me what error message you see on
purchase a Cell Phone through your screen..?
Website .. But I am stuck in Step 2.. I
3 just can’t proceed?!! Ok..let me check it for you right 4
Yeah.. it is ERR1234.. now!
5.1 Watson looks up it’s knowledge base .. Figures

Sure, let me try right away.. out it could be due to a DB Entry locked in SAP
Amazing, it Works!! 5.2
Thanks a Ton!! Watson passes on the control to invoke a Robot to
7 execute Problem Remediation SOP for SAP DB Lock
Entry… which fixes the problem
Umm..Ok, can someone tell me 9 6
about your future range of
products..
Hello Ma’am, it should work now, can 8
you please try once? That’s Great! Is there anything else I
Hello Mike! .. 13 can do for you?
Sure, let me connect you with our
Result? Problem resolved in <5 mins

Catalogue Manager.. 10 11
Watson connects with Catalogue Manager Mike,
interaction.. who then starts talking to Laura ..
Happy User already enquiring about
future collections .. 12 Hello Ma’am, I am Mike, I’ll tell you about
our next Summer Collection ..
Collaborative Intelligence : How humans and AI are
joining forces (Daugherty and Wilson)
• Companies benefit from optimizing collaboration between humans and AI

– Humans assisting machines
• Training
• Explaining
• Sustaining
– Machines assisting humans
• Amplifying
• Interacting
• Embodying
Re-imagining business processes
5 characteristics of business process that companies want to improve
Flexibility Scale Decision Making Personalization

Speed
Auto Software Cancer Casino Financial Disease Healthcar Retail

Product Fraud Public Customer Equipmen Guest
manufactu developm treatemen Recruiting manageme services prediction e fashion
design detection safety service t experienc
ring ent t nt maintenan e
ce
Mercedes- Morgan Pfizer Stitch fix
Autodesk Gigster HSBC Roche Singapor Virgin GGH Stanley Icahn
Benz unilever
e trains morowitz school of Carnival
governm GE medicine corporatio
ent n
The need for new roles & talent – require people to do new & different things and to do things differently
Putting AI to work
Marketing & Sales – opportunity Research & Development –

Operations – AI for predictive
to offer personalized service, accelerate product development,
maintenance
advertising and interactions optimize designs
Product & service offerings – AI

Procurement & Supply Chain
Support functions – IT support enabled services & products like
management – use of chatbots,
using AI + RPA digital personal assistants, self-
sourcing recommendations
driving cars etc
Key Challenges
• High Costs
• Lack of technical ability
• Lack of quality data
• Privacy concerns
• Concerns of trust
• Too many unknowns
• Lack of skilled teams to manage
AI or not?
• Data labelling
• Obtaining massive
training data sets
• The explainability
problem
• Generalizability of
learning
• Bias in data and
algorithms
Recommendations
Understand why Improve your Verify technology Plan deployment

and what you need approach to data foundations and adoption
Determine need and Understand your data Confirm and prepare the Don’t underestimate
value situation right IT environment training the cognitive
system
Assess maturity Take a holistic approach Plan your initial
implementation Incent adoption
Identify where to start Have the right team
Build multidisciplinary
Champion a new culture Invest in data up front teams
Link insights to action
Plan for continuous improvement

Understand why and what you need
• Start with a business need rather than a technology-first approach

Determine
• Establish the types of value are you trying to achieve (e.g., improved decision making,
need and
efficiency, speed and agility)
value
• Determine the kinds of business and IT processes you want to influence
Assess
• Assess your technological and cultural maturity with respect to cognitive
maturity
Identify • Realize that the cognitive journey can begin in different places – from single API’s to
where to start more complex implementations
Champion a • Prepare people for new ways of collaborating with technology

new culture • Think about what organizational changes may need to happen
Improve your approach to data
• Determine what insights you need and what data and algorithms will produce the value you
Understand want
your data
situation • Understand the data you possess, the state it is in and how you track its status and
movement
Take a holistic • Allow all data to be viewed and analyzed holistically

approach • Combine different types of data to provide value (structured, unstructured, etc.)
Have the right • Identify and develop a team of data and analytics specialists – many organizations do not
team have the human resources to manage and capitalize on their data
• Invest the resources up front on data

Invest in data
up front • Get the right technical and domain experts to assess, choose, consolidate, manage and
ingest the data for cognitive solutions
Verify technology foundations
• Know there is a natural progression from today’s infrastructure strategies to those

Confirm and that support cognitive solutions
prepare the right IT • Prepare for the fact that cognitive solutions are being used more on the cloud and
environment naturally compliment analytics solutions
• Decide if your solution will be used in real-time
• Ensure pilot projects are meaningful and worthwhile, don’t isolate them – use them
to assess architectural risk, data strategies and security
Plan your initial
• Think about how will you take the cognitive solution from pilot to enterprise
implementation
solution – how will it be leveraged by your IT function
• Determine what adjustments you may need to make to governance and culture
Plan deployment and adoption
Don’t • Know that some solutions and APIs are pre-trained and others require time to create
underestimate “ground truth”
training the
cognitive system • Involve subject matter experts – user feedback and iteration is critical
• Prepare to incent adoption and conduct dedicated end user training

Incent adoption
• Determine how you will identify and address areas of organizational resistance
Build
• Use diverse teams for deployment – from IT to line of business, data scientists to
multidisciplinary
domain experts – all are essential
teams
• Determine how you will link the insights generated by the cognitive system to
Link insights to organizational actions
action
• Explore how it could change your decision making
Case Study – Harley Davidson
Business challenge – Harley-Davidson of NYC understood Results – 566% Increase in Website Views
the impact digital could have on its business but was unable 2930% Increase in Leads/Month
to realize the full potential on its own. They were only 50% Leads coming from “Lookalikes”
selling 1 or 2 motorcycles /week, which was not enough. 40% Of motorcycle sales delivered by Albert
Solution– They went for a AI tool, Albert, that works across all channels.
With Harley-Davidson NYC’s KPIs, business logic and minimal past campaign performance data, Albert discovered
trending behavior and used continuously incoming info to optimize and scale performance including:
-> Identifying unknown audiences.
-> Identifying top-performing creative and messaging combinations and prioritizing them across all digital channels.
-> Pricing and budget allocation across all digital channels
319
Key Takeaways
• Tune out the Hype & do the necessary work

• Data, the most important ingredient for AI to work (garbage
in- garbage out)
• Apply a crawl, walk, run approach to the adoption of AI in the
business
– Take a 3 step AI journey - Ideation & Testing -> Prioritizing &
launching Pilots -> Scaling up
Reading material
• Putting Artificial Intelligence to Work, Philipp Gerbert, Martin Hecker, Sebastian

Steinhauser
• Collaborative Intelligence: Humans and AI Are Joining Forces, H. James Wilson, Paul
Daugherty
• What to Expect From Artificial Intelligence, Ajay Agrawal, Joshua Gans, Avi Goldfarb
• What AI can and can’t do (yet) for your business, January 2018 McKinsey Quarterly, By
Michael Chui, James Manyika, and Mehdi Miremadi
• How Harley-Davidson Used Artificial Intelligence to Increase New York Sales Leads by
2,930%, by Brad Power, HBR May 30, 2017
Thank you
AI, BigData & Blockchain
– Definitions: • Supervised Learning (stable
• AI performs cognitive functions statistical models) uses data and
feedback
– Approach Used • Unsupervised learning (changing
1. Machine Learning (algorithms algorithm) – forecasting, for
used for detecting patterns and business and weather, uses data +
make predictions using data and feedback+ insights
insights) • Reinforced learning (Correction
based algorithms based on
investment accuracy)
2. Deep Learning – Uses multi layer
approach, image processing, voice
recognition, neural network and facial
recognition; uses corrections in
algorithms for better identification
next time
Blockchain article from HBR
• Collaboration with Blockchain
Digital projects require new roles spanning three core business
functions
Business-domain Expert
Product Owner Functional Expert
Busines Translate business needs into digital

Ensure future data requirements and
processing are robust and complete s language (e.g. by defining data
requirements)
Data Engineer Translator

Software/UX1 developer
Business
UX/UI2 designer
Leaders
Robotics & automation expert Data Scrum master

Scientist Digita
IT l
Data architect Agile coach

1 User experience
2 User interface
Develop insights leveraging new sources of data and best-in-
class algorithms
AI, BigData & Blockchain..contd.
AI
NLP SOFT COMPUTING STATISTICS
AI
Machine Learning
Deep Learning
Algorithm related to
images, videos
Most Accurate
Output of AI Descriptive Predictive Prescriptive
Data Data + BigData Data + BigData + BI + ANN +CNN
TRADITIONAL STRUCTURED DATA COMPUTING BI

+ STATIC MODEL
AI STRUCTURED + COMPUTING SUPERVISED

UNSTRUCTURED (TRAINING, TESTING)
DATA + BI + DYNAMIC
MODEL UNSUPERVISED
(CLUSTERING)
AI, BigData & Blockchain
ARTIFICIAL INTELLIGENCE
• Apple, Google, Amazon etc develop AI products (either inhouse or acquire organizations
• Benefits – to reduce cost of operations
• Able to predict – inputs: data and insights
• Machine Learning – To learn from past data and past decision
• When AI will not succeed
• Apple in a basket compared with Oranges
• Similar features can be identified through NLP
• But difficult to make hunfred percent, hence probabilities
• In a bank, when customer might fail to pay EMI, but exceptions?
• Role of human beings/Business Analysts
• Hence, Human PLUS Computer interactions
• Use Cases : Healthcare,
• Medical Translations, transactions, transcriptions
• Cancer Detection, Non invasive testing
• Vaccine testing – Molecule testing from seven years to seven months
• Predictive healthcare – Community healthcare, chronic disease treatment
• Use Cases : Banks,
• Credit Rating/Worthiness, Likely failure of EMIs
• But Humans can overrise based on intuitions and promoters backgroound
• Use Cases: Security
• Identifying persons based on image (Deep Learning Techniques)
• Use Cases: Customer Care
• Chat bots – Flipkart, Amazon
• Use Cases : Emails, IVR
• Grammarely tool in gmail – detects the mood
• Provides short response
• Use Case: Forecasting
• Accuracy, Time taken to predict or provide outcome
• Use Cases: Shopping behavior
• Use Cases: Gatekeeper – Robot based (to track huge volume and contactless)
• Use Cases: Anticipate crimes
• Use Cases: Recruitments (flitering cvs)
• Use Cases: Inventory Planning,
• Use Cases : Searches across FB, Twitter, Instagram, SMS, Mobile call logs
• Text + Image + Content (theme + text)
• Use Case – Manufacturing/Operation: Flipkart

• When not to go for AI strategy?
– Cost is high
– Implementation time
– Lack of Skill required for IT roadmap
• AI is not same as Automation/ Soft Computing (difference should be known so that benefits can
be reaped)
NEW /MODIFIED PREDICTION
AUTOMATION/ Soft Computing
PREDICTION INPUT
INSIGHTS/ BI
MACHINE LEARNING
DEEP LEARNING
BIGDATA
TRANSACTION DATA, UNSTRUCTURED DATA, JUDGEMENT, MANUAL INTERVENTION, SCENARIOS

Mohapatra S, (2019), Critical review of literature and development of a framework for application of
Artificial Intelligence in business, International Journal of Enterprise Network Management, Volume 10,
Issue No 2, Pp176- 185
• When to go for BigData and AI? – Expert systems for decision

– If prediction is to be based on making
unstructured data, images, videos – Fuzzy logic (uses statistical
PLUS transaction data techniques and updated with
– Huge volumes of scanning images decisions, example WW II)
(such as signatures on the checks, – Use of neural network for data
crime detection, fraud detection – transfer such as pathai.com
audit system) ( Avtaar, Lucy movies)
– Cost of invasive biomedical
applications is low
– Insurance claims processing
• Cost Benefit Analysis of AI Strategy
• Benefits:
– Increase in productivity
– TAT, Revenue Productivity
– Complex data input simplified
– Large number of decisions taken without manual intervention
– Repetitive
– High level of prediction
– Repetitive judgements (judgements are broken into smaller activities)
• Cost:
– Training for AI, humans
– Investment in technology
– Time to implement
• Why Business Analysts will still be needed
– Human interventions for exception handling (till exceptions are automated)
– Ethical Judgments
– Emotional Intelligence related
Why? Responsible decisions,
– Artistic and Creative engaging customers & employees,
– Responsible decisions ethical dilemma, culture of the region
Define Functional
particular
DRAW L0, L1, L2 to find impacted processes
Decide Application
New Data Warehouse Strategy
(DW’)
Gap Analysis
Prescriptive
Disaster Recovery
ANN
+ New BI (BI’) Location Private, In-house existing OR
CNN AI Public, buy Off the shelf OR
components Skill, Resources
Predictive Community Outsource to IT Service
Machine Learning, Deep Learning Saas, Iaas
Collaborators Cloud
Data Warehouse
Engine
Data Data
Dashboard
IT Governance
BI
• BLOCKCHAIN
• Purpose : Track transactions digitally
– share across partners
– Share across network of computers
– Shares ownerships and makes it transparent, secured
– Use Cases: Traceability
– Use Cases: Paper less system
– Use Cases: Smart Contract
– Use Cases: Healthcare – Medicine/Molecule/Vaccine traceability
– Use Cases: Land records
– Use Cases: Authenticity of origin of vegetables/ fish/ meat/ all edible products
– Use Cases: Updating records and tracking
HOW IT WORKS
Transactions Modifies or Sent to all
creates a block nodes
Nodes accept
or reject it
Modifies the
block
Block id added
or not added
ARCHITECTURE Each
HEAD DATA DATA DATA node is a
DATA computer
------------- ------------- ------------- ------------- -------------
POINTER POINTER POINTER POINTER POINTER
#1 #2 #3 #......N #......N
• Blockchain Strategy:
• Salient Points
– Shared Ledger
– Need permission to change
– Change by consensus or majority
– Smart Contract (change in the contents dynamically impacted
• Benefits (Further Use Cases):
– Prediction of inventory stockout conditions
– Bullwhip effect mitigations
– Intelligent route planning (ex: delivery of Amazon products)
– Integration with AI for driverless vehicle
– Digitization of paper work (regulatory requirements)
– Warehouse tracking (Inbound, Outbound and Putaway prcesses)
– Better accuracy in investigations (root cause analysis) (ex: where the chocolates got damaged)
– Cyber security/ cyber attacker tracking
• When to go for blockchain –
– Is there a need for shared common database/ledger?
– Multiple parties involved
– Conflicting views and mistrust
– Different governing rules
– Regulatory requirement to keep records
• Types of block chain:
https://mastanbtc.github.io/blockchainnotes/blockchaintypes/
– Permissioned blockchain, permissionless blockchain
FEATURE CENTRALISED DATABASE PERMISSIONLESS PERMISSIONED BLOCKCHAIN
BLOCKCHAIN
Ledger Centralized at one location for Distributed across all nodes. However Shared between transacting parties on
replication the nodes have the option to carry the a need to know basis
entire ledger or part ledgers & select
their clients accordingly
Confidentialisty Highest level of confidentiality Information on transactions, open to Access control on a need to know
possible all basis
Identities As per the organization rules can be Algorithmically linked public and Genrally linked to roles and operated
linked to normal identities @ hence if private keys of pseudonyms or through secure identities with public
data is leaked, there is a threat of loss anonymous identities, protecting and private keys normally based on
of highly valuable customer actual identities security certificates
information @ confidence
Immutability of ledger data Can be changed by any authorized Considered immutable unless a Changes of ledger contents can be
party anytime massive 51% attack takes over the modified by appending new contracts
blockchain and rewrites data. Hence, and trail of transaction is recorded
considered improbable. ensuring transparency. Data can
however be erased permanently
through appropriate programming of
smart contracts
Smart contracts Not applicable. Data is uploaded and Smart contracts or new generation Processes across organizations or real
appended as per interactions with applications that reflect real life life entities are automated and
normal applications within the agreements, executed by external agreements enforced through smart
organization accounts or invoked when certain contract or chain code, which is a new
conditions are met, hep in automous genraltion application that enables
functioning of decentralized elimination of intermediaries,
applications that enable decentralized corruption, fraud, wastage of
FEATURE CENTRALISED DATABASE PERMISSIONLESS PERMISSIONED
BLOCKCHAIN BLOCKCHAIN
Provenance Not a feature, as there is no chain of Provenance of data recorded is Provenance of data recorded is
data structure stored with time available as every transaction and available as every transaction and
stamps appended blocks are timestamped appended blocks are time stamped
before commiting. Every item can before commiting. Every item can
betraced back to its origin be raced back to its origin
Speed of transaction processing Instantaneous with no limits. Since Slow as all participants are High transaction speeds are possible
an organization trusts itself considered potential attackers with as the participants are trusted and
maximum and the database are lowest level of trust and hence traceable and hence not prone to
operated by responsible officials, highest effort is needed to confirm mischief
instantaneous updation happens. transactions.
Vulnerabilitu to Malware and Highly risky as it provides highest Highly resilient. However, smart Highest level of security as the data
Cyberattacks incentive to attack centralized contracts and associated and applications are protected
databases for ransomware or infrastructures like wallets, through multiple layers of security
disruption. Best of global leaders exchanges etc are possible on mechanisms as the identities and
having highest level of smaller and newer blovkchain. transactions are undertaken after a
cybersecurity have been attacked. thorough validation. Secured cloud
service providers provide an added
layer of security to blockchain
infrastructure.
Recommended approach No need for blockchain Prohibited in India. Considered Approved and recommended usage
risky with regulatory considerations
APPENDIX
https://towardsdatascience.com/natural-language-processing-nlp-for-machine-learning-d44498845d5b
Natural Language Processing

• NLP is a field in machine learning with the ability of a computer to understand, analyze, manipulate, and potentially generate human language.
• NLP in Real Life
• Information Retrieval(Google finds relevant and similar results).
• Information Extraction(Gmail structures events from emails).
• Machine Translation(Google Translate translates language from one language to another).
• Text Simplification(Rewordify simplifies the meaning of sentences). Shashi Tharoor tweets could be used(pun intended).
• Sentiment Analysis(Hater News gives us the sentiment of the user).
• Text Summarization(Smmry or Reddit’s autotldr gives a summary of sentences).
• Spam Filter(Gmail filters spam emails separately).
• Auto-Predict(Google Search predicts user search results).
• Auto-Correct(Google Keyboard and Grammarly correct words otherwise spelled wrong).
• Speech Recognition(Google WebSpeech or Vocalware).
• Question Answering(IBM Watson’s answers to a query).
• Natural Language Generation(Generation of text from image or video data.)
• (Natural Language Toolkit)NLTK: NLTK is a popular open-source package in Python. Rather than building all tools from scratch, NLTK provides all common
NLP Tasks.
APPENDIX
https://blogs.oracle.com/bigdata/difference-ai-machine-learning-deep-learning
What Is AI?
Artificial intelligence as an academic discipline was founded in 1956. The goal then, as now, was to get computers to perform tasks regarded as uniquely human: things that required intelligence. Initially, researchers worked on problems like playing checkers and solving logic problems.
If you looked at the output of one of those checkers playing programs you could see some form of “artificial intelligence” behind those moves, particularly when the computer beat you. Early successes caused the first researchers to exhibit almost boundless enthusiasm for the possibilities of AI, matched only by the extent to which they misjudged just how hard some problems were.
Artificial intelligence, then, refers to the output of a computer. The computer is doing something intelligent, so it’s exhibiting intelligence that is artificial.
The term AI doesn’t say anything about how those problems are solved. There are many different techniques including rule-based or expert systems. And one category of techniques started becoming more widely used in the 1980s: machine learning.
What Is Machine Learning?

The reason that those early researchers found some problems to be much harder is that those problems simply weren't amenable to the early techniques used for AI. Hard-coded algorithms or fixed, rule-based systems just didn’t work very well for things like image recognition or extracting meaning from text.
The solution turned out to be not just mimicking human behavior (AI) but mimicking how humans learn.
Think about how you learned to read. You didn’t sit down and learn spelling and grammar before picking up your first book. You read simple books, graduating to more complex ones over time. You actually learned the rules (and exceptions) of spelling and grammar from your reading. Put another way, you processed a lot of data and learned from it.
That’s exactly the idea with machine learning. Feed an algorithm (as opposed to your brain) a lot of data and let it figure things out. Feed an algorithm a lot of data on financial transactions, tell it which ones are fraudulent, and let it work out what indicates fraud so it can predict fraud in the future. Or feed it information about your customer base and let it figure out how best to segment them. Find out more about machine learning
techniques here.
As these algorithms developed, they could tackle many problems. But some things that humans found easy (like speech or handwriting recognition) were still hard for machines. However, if machine learning is about mimicking how humans learn, why not go all the way and try to mimic the human brain? That’s the idea behind neural networks.
The idea of using artificial neurons (neurons, connected by synapses, are the major elements in your brain) had been around for a while. And neural networks simulated in software started being used for certain problems. They showed a lot of promise and could solve some complex problems that other algorithms couldn’t tackle.
But machine learning still got stuck on many things that elementary school children tackled with ease: how many dogs are in this picture or are they really wolves? Walk over there and bring me the ripe banana. What made this character in the book cry so much?
It turned out that the problem was not with the concept of machine learning. Or even with the idea of mimicking the human brain. It was just that simple neural networks with 100s or even 1000s of neurons, connected in a relatively simple manner, just couldn’t duplicate what the human brain could do. It shouldn't be a surprise if you think about it; human brains have around 86 billion neurons and very complex interconnectivity.
What is Deep Learning?

Put simply, deep learning is all about using neural networks with more neurons, layers, and interconnectivity. We’re still a long way off from mimicking the human brain in all its complexity, but we’re moving in that direction.
And when you read about advances in computing from autonomous cars to Go-playing supercomputers to speech recognition, that’s deep learning under the covers. You experience some form of artificial intelligence. Behind the scenes, that AI is powered by some form of deep learning.
Let’s look at a couple of problems to see how deep learning is different from simpler neural networks or other forms of machine learning.
How Deep Learning Works

If I give you images of horses, you recognize them as horses, even if you’ve never seen that image before. And it doesn’t matter if the horse is lying on a sofa, or dressed up for Halloween as a hippo. You can recognize a horse because you know about the various elements that define a horse: shape of its muzzle, number and placement of legs, and so on.
Deep learning can do this. And it’s important for many things including autonomous vehicles. Before a car can determine its next action, it needs to know what’s around it. It must be able to recognize people, bikes, other vehicles, road signs, and more. And do so in challenging visual circumstances. Standard machine learning techniques can’t do that.
Take natural language processing, which is used today in chatbots and smartphone voice assistants, to name two. Consider this sentence and work out what the last part should be:
I was born in Italy and, although I lived in Portugal and Brazil most of my life, I still speak fluent ________.
Hopefully you can see that the most likely answer is Italian (though you would also get points for French, Greek, German, Sardinian, Albanian, Occitan, Croatian, Slovene, Ladin, Latin, Friulian, Catalan, Sardinian, Sicilian, Romani and Franco-Provencal and probably several more). But think about what it takes to draw that conclusion.
First you need to know that the missing word is a language. You can do that if you understand “I speak fluent…”. To get Italian you have to go back through that sentence and ignore the red herrings about Portugal and Brazil. “I was born in Italy” implies learning Italian as I grew up (with 93% probability according to Wikipedia), assuming that you understand the implications of born, which go far beyond the day you were delivered. The
combination of “although” and “still” makes it clear that I am not talking about Portuguese and brings you back to Italy. So Italian is the likely answer.
Imagine what’s happening in the neural network in your brain. Facts like “born in Italy” and “although…still” are inputs to other parts of your brain as you work things out. And this concept is carried over to deep neural networks via complex feedback loops.
Conclusion
So hopefully that first definition at the beginning of the article makes more sense now. AI refers to devices exhibiting human-like intelligence in some way. There are many techniques for AI, but one subset of that bigger list is machine learning – let the algorithms learn from the data. Finally, deep learning is a subset of machine learning, using many-layered neural networks to solve the hardest (for computers) problems.
APPENDIX
https://blogs.oracle.com/bigdata/difference-ai-machine-learning-deep-learning
• AI, machine learning, and deep learning - these terms overlap and are easily confused, so let’s
start with some short definitions.
• AI means getting a computer to mimic human behavior in some way.
• Machine learning is a subset of AI, and it consists of the techniques that enable computers to
figure things out from the data and deliver AI applications.
• Deep learning, meanwhile, is a subset of machine learning that enables computers to solve
more complex problems.
APPENDIX
Mohapatra S, (2019), Critical review of literature and development of a framework for application of
Artificial Intelligence in business, International Journal of Enterprise Network Management, Volume 10,
Issue No 2, Pp176- 185
IT Strategy framework
Define Functional
particular
DRAW L0, L1, L2 to find impacted processes
Decide Application
New Data Warehouse Strategy
(DW’)
Gap Analysis
Prescriptive
Disaster Recovery
ANN Vendor SLA Regulations
New BI (BI’) Location Private, In-house existing OR

AI Public, buy Off the shelf OR
components Skill, Resources
Predictive Community Outsource to IT Service
Machine Learning, Deep Learning Saas, Iaas
Collaborators Cloud
Data Warehouse
Engine
Data Data
Dashboard
IT Governance
BI
Vodafone and IBM for digital transformation
• 90 Secs video
Vodafone
• Industry- (India)
– Highly regulated
– Infrastructure regulated
– Collaboration ( call transfer)
– Competition (pricing)
– Metrics:
• Transmission capability (bits per sec)
• Bandwidth availability (received during auction)
• Average Revenue Per User
• Number of users switching or cancelling their subscription (churn rate)
• Growth rate in subscription per time unit
– Porter’s Five
• Threat of new entrants – Low (Why?)
• Bargaining power of suppliers – Low to medium (for 5G, High, 4G medium, 3G ad 2G - Low)
• Threat of substitutes - High
• Industry Rivalry – High
• Bargaining power of buyers – High
– PESTLE:
•POLITICAL, POLITICAL, POLITICAL
•ECONOMIC
•SOCIETY
•TECHNOLOGY/TECHOLOGY – 4g and now 5g – game changer
•ENVIRONMENT
READY FOR DISRUPTION ….AGAIN??
Vodafone…contd.
• UK Based
• Operates in Europe, Asia, the Middle East, Africa and
some part of America
• International
• Technology based
• Technology enabled services
• Competitive on cost side by leveraging Enterprise IT
• Still exploring AI (RPAs and Chatbots..see appendix)
• Challenges: culture, regulations in different countries,
employment mixes (because of technical expertise
required there is an impact on input quality, capabilities)
Vodafone….contd.
• Technology in Vodafone
– Pilot and roll out
• AF and SO approach
• Using employees as sample for testing
– Faster testing, faster feedback and faster incorporation
• Training continuously
– Setting benchmarks
– Personal interaction with customers in the store (Flipkart initial days…)
– Downsizing the staff? Good or bad!!!!
– Central monitoring and Glocalization
– CSR activities different for different geographies
– Capabilities developed:
• Prediction – Planning, evaluation, and implementation
• Data – Collects huge amount of data for
– improving customer service
– Operational efficiency
– Risk mitigation
– Network optimization
– Automation of functions such as billing, customer grievance, escalation
– Voice interface (with Alexa)
– Customer clustering (geography based, data usage based etc.)
– Re-segmentation based on clustering
– Store location optimization
– Customer grievances handling
– Hiring process
RPAs VS CHATBOTS
CHARACTERISTICS RPAs CHATBOTS
TYPE OF BUSINESS PROCESSES REPEATABLE, RULE BASED, ANY USER CENTRIC PROCESS
PREDICTABLE
APPROACH PROCESS CENTRIC AND BOTTOM CONVERSATION TECHNIQUE AND
UP TOP DOWN
FOCUS PROCESS AUTOMATION FULFILL CUSTOMER NEEDS
USE CASES BACK OFICE, ADMINISTRATIVE USER CENTRIC, CONVERSATION
PROCESSES DRIVEN PROCESSES
INPUTS STRUCTURED DATA FREE FORM, UNSTRUCTURED
CONVERSATION
BUSINESS OUTCOME COST SAVING IMPROVED ENGAGEMENT AT
CUSTOMER LEVEL
COMMUNICATION CHANNEL NOT AVAILABLE VOICE, WEB, CHAT, SMS,
MESSAGING, EMAIL
DECISION MAKING IT LED (DIGITAL IT ENABLED
TRANSFORMATION)
INPUT AUTOMATE TRANFORM
Network IT, Enterprise IT and Functional Functional IT – at best Enterprise IT

IT
Adopting AI
• For sustainable adoption
– Does it make less job (vs enrich job?) – societal implication
– Does it help daily work easier?
– Does AI make my work more meaningful?
• WHY VODAFONE IS RUNNING AT LOSS
• WHAT DOES THE CTO SAY? TEN MINUTES long video
Online Polls for adopting AI
• Next class – FAO the elephant dances.
APPENDIX (
https://servisbot.com/the-intersection-of-smart-bots-and-robotic-process-automation-rpa/#:~:text=Chatbots%20
or%20smart%20bots%20always,of%20user%20chat%20or%20interactions.
RPA and Chatbots: The Powerful Intersection of AI
)
By Cathal McGloin6 Minute Read
RPA and Chatbots: Winning AI Technologies
Terminology abounds in the area of artificial intelligence (AI) and multiple definitions can lead to confusion and blurring.
In industry sectors like manufacturing, utilities, energy, finance, healthcare, and telecommunications, routine, rules-based, and repeatable business processes have been subjected to increasing degrees of automation throughout the
decades. Increased accessibility and advances in the area of Artificial Intelligence (AI) are creating another wave of opportunities to not only increase the degree of automation but also to apply greater intelligence and cognitive
understanding to workflows and processes.
One area of technology evolution in process automation has been in the area of robotic process automation or RPA. But more recent developments in chatbot technology and conversational AI may be set to disrupt how organizations
approach the automation of business processes. There seems to be confusion regarding these two topics with an increasing blurring of the lines between the two. So how do these two differ and how do they intersect?
To try to clear up any confusion we decided to explore the characteristics of both, compare and contrast them, and uncover where they are being used across different industries.
The Characteristics of RPA and Chatbots

RPA applies software robots or bots, to further automate processes, eliminating inefficiencies, cutting costs, and improving speed and performance. It is the next stage in the evolution of traditional process automation, which has been
around for decades. The technology can vary from basic rules-based automation to very complex solutions based on machine learning. At the more basic end of the spectrum, solutions are often an extension of traditional business
process and rules management while at the more advanced end, the complexity means that data scientists are required to build highly custom AI solutions that are both expensive and difficult to scale or adapt with shifting demand.
The key characteristics of RPA are:
It is applicable to routine, repeatable, rule-based, or predictable business processes.

It is primarily based on automating existing business processes.
It focuses on eliminating manual or human involvement in process steps.
It is governed by structured data inputs and not human inputs or chat.
It is a process-centric, bottom-up approach
It decreases friction across process tasks by limiting human handoff
It focuses on back-office processes governed by rules and business logic, for example in the areas of finance, operations, production, HR, and distribution departments
It lacks the flexibility to adapt quickly to changes or exception-handling
Finally, RPA implementations are generally IT-led with input from the business
Where the confusion between RPA and Chatbots comes in is that both are strongly associated with robots or ‘bots’. In the case of RPA, these are automation bots and in the case of Conversational AI, these are chatbots (often also
referred to as bots). RPA bots don’t have a chat element where chatbots do. But the issue with chatbots is that they are evolving beyond just being virtual assistants to being much smarter conversational bots that can also handle
specific business tasks and user journeys i.e. a form of intelligent process automation.
These chatbots are becoming smarter, applying natural language processing (NLP) and AI technologies to simulate human conversations, perform automated business tasks, and become smarter through learning from the environment
and their experience.
The key characteristics of a Chatbot:
It is applicable to any user-centric process or journey that is initiated or conducted via voice (phone, physical or voice-activated interfaces) or message (text, chat, email, web, etc).
It is primarily based on transformation rather than pure automation
It focuses on simulating human conversations and understanding human intent to perform automated tasks.
It is governed by free form or guided conversations that are less structured
It is a data- and conversation-centric, top-down approach
It decreases friction across process tasks by limiting human intervention
The current focus is on front-end customer-facing processes (for example customer service, sales, and marketing) but they are equally powerful in many back-office tasks where they are gaining traction.
It is very versatile, adapting quickly to changes and gaining intelligence and capabilities through knowledge gained from data and experience
And, chatbot implementations are business-led but can involve IT
APPENDIX (
https://servisbot.com/the-intersection-of-smart-bots-and-robotic-process-automation-rpa/#:~:text=Chatbots%20
or%20smart%20bots%20always,of%20user%20chat%20or%20interactions.
RPA and Chatbot Approaches Differ
) In RPA, processes are automated by teaching robots what to do rather than automating them through code or scripts. So it’s a
Process automation has been around for decades with robotic process automation representing more of an evolution in approach.
step up the curve towards more intelligent automation.
As RPA evolves it is increasingly intersecting with conversational AI technology. In fact, more and more, recent media articles have added the word bot or chatbot when referencing RPA, making things even more blurred. However, it’s important to
recognize that the RPA approach is much different from the conversational AI approach.
Conversational AI represents a revolutionary approach, where conversations and user intent dictate the tasks and processes that are executed in order to fulfill the intent. By its nature, it is more free-flowing and unstructured requiring a high degree of
flexibility and versatility in orchestrating the right tasks at the right time. This contrasts with RPA where the processes are less fluid and more rigid. Layering chatbots on top of RPA creates the potential to force a more guided and process-driven, rather
than a conversation-driven flow of activities.
Bot orchestration is probably one thing that makes the conversational approach much easier, faster and more versatile than an RPA approach. At ServisBOT, by using a clever bot orchestration approach, a virtual assistant can hand off a high-level
customer intent to an appropriate task-oriented bot who can either execute on the intents or invoke the help of another bot, if needed. In this way, an Army of Bots can be assembled to handle multiple tasks in a customer journey and individual bots can be
deployed or removed according to how the conversation guides the execution of tasks. This is a much more flexible and modular approach than traditional RPA.
But will Chatbots replace RPA?

Whether RPA will be fully replaced by chatbots is doubtful as there will always be use cases that lend themselves more to RPA, but there definitely are strong arguments that may lead to conversational bots stealing some of the thunder from RPA. Or
maybe there’s merit in them working together to unite the best of both worlds?
Conversational AI is a greenfield technology and approach to smart conversations and these are increasingly not just focused on simple Q&A type interactions. Rather, a chatbot can now understand high-level customer intent and pass that to a task-
oriented bot to gather any additional data needed and execute the necessary tasks. As this evolves and matures, smart conversational bots are set to eat away at the RPA space.
The emergence of conversational AI platforms, unlike RPA, represent the latest technologies, tools, and approaches and are not lumbered with legacy systems and methodologies. And that can be a double-edged sword. The conversational AI platforms
have to prove their approach and technology while the RPA players are generally incumbents that are deeply embedded with middleware solutions in the enterprise.
The Use Cases for Chatbots

The broad differences between RPA and Chatbots have been mentioned above as have some of the high-level use cases. Wherever there is a chat element to a process think in terms of conversational AI. And if the process is highly administrative with no
chat element, maybe RPA is the right choice.
Don’t think too narrowly about conversational AI. Many of the current implementations are in the areas of more basic customer service use cases. However, businesses are increasingly extending their horizons beyond customer service, recognizing the
potential for bots to go broad as well as deep across and within their organization and to be used in outbound marketing campaigns, in field sales or service operations, or in employee-facing engagements. Here are some use case categories that may help
guide you in choosing conversational AI
Service Bots: These bots help automate simple tasks, service requests or FAQs. They can be customer-facing or work behind the scenes, making service experiences more convenient and available 24/7, across multiple channels.
Journey Bots: These bots are more involved as they manage multi-step and sometimes complex customer journeys such as making an insurance claim, onboarding a new customer, or resolving a complaint. They guide customers through specific
workflows, fulfilling particular tasks in order to achieve desired outcomes.
Automation Bots: These bots automate recurring tasks such as billing, renewals and appointment settings. They are responsible for proactively automating routine tasks to improve overall process efficiency, freeing humans to focus on more complex tasks.
Campaign Bots: These bots are typically deployed for outbound tasks, executing marketing campaigns such as proactive loyalty outreach, promotions, retention, win-back, collections, and upsell or cross-sell opportunities.
Employee Bots: Don’t forget employee engagement when it comes to bots. Workplace bots can handle internal employee-related tasks, improving the efficiency of field service workflows, HR-related tasks, and/or IT help desk operations.
For more information about prioritizing the use cases for conversational AI and building and deploying smart bots that can intelligently engage with your customers and handle complete customer journeys, you can visit our resource library or download a
free copy of our eBook: Transform Customer Engagement with An Army of Bots.
IMPLEMENTATION STRATEGY
FOR ANY NEW SYSTEM

CAN BE USED FOR MODIFICATION T
EXISTING SYSTEM ALSO
IMPLEMENTATION
• Has two parts
– Pre Installation, What is pre?
– Post Installation, What is post?
• Pre Installation talks about change management…
– With respect to stakeholders
– With respect to new technology/system
– FAO Case – Installation Framework
• Post Installation talks about change management…
– With respect to adoption
– With respect to end users mostly (other stakeholders are involved, but end users decision predominant)
– NALCO Case – TAMO framework
• Real Life Case – Where did he go wrong at 7 PM on 15 th Sep’21
FAO – THE ELEPHANT DANCES
• Why do we need change management?
– We need to accomplish a change not for us but to make others
change
– Individual change is internal but catalysed by external factors
– The framework will help understand external factors
• Video – Roger Federer
Move a boat – individually –
meditation, self motivation
Steer a ship through a team –

through frameworks
FAO – THE ELEPHANT DANCES
• Co-authored by the then audit general
• Based on actual data
• Multi countries, multi cultures, multi regulations and compliances
1. Objective
– To implement technology through change management (The I in this course)
– To implement it with budget, schedule constraints
2. Identification of stakeholders (how?)
– Ask who will be beneficiaries
– Ask who will use the system (end users)
– Who will make payments (who does the budget allocations)
– Who will decide the features?
– Who will provide manpower, hardware and other resources
– Who will build/sell/integrate/customize software
– Who will be the trainers
FAO – THE ELEPHANT DANCES..contd..
3. Define project goals/objectives
– To complete with respect schedule
– To complete wrt budget
– To complete wrt resources
4. Installation Structure
– For flow of information
– Define roles and responsibilities (Why?)
– Accountability –
• Escalation level one – SLA on time and satisfaction for resolution
• Escalation level two – SLA on time and quality of resolution
• Only the internal customer can close the issue, NOT the resolution provider!!!!!
5. Define success criteria
– When to declare as complete
• Narmada Dam project – percentage of land gets water for irrigation
• AI project at Odisha State Crime Branch – crime investigation time reduced to two hours
• Polaris PM Tool Installation – Percentage of PMs using the PM tool in their projects
• Aarogya Setu Installation – percentage of Indians using the app
– To get this completion, define goals; from goals-> metrics to achieve
– Define Milestones for achieving these goals
Structure for Installation
Steering Committee
Program Manager
Functional Functional Functional QA Members

Consultants Consultants Consultants
End Users
Installation APPROACH
• The objective was to ensure smooth • Total cost for the project: US $78.6 million
flow of information and fixing the
responsibilities of each role and also WHAT WOULD SUCCESS
ensure decision making process was MEAN?
• The huge benefits for the organization
well defined and understood by all • Seamless integration of payroll & HR management
Stakeholders • HRIS package (ProMS)- provide a linkage between programme and
project plans, outputs and budgets, more accurate budget
• The Organisation structure adopted; monitoring
• Eliminate repetitive tasks & duplication of entries
CEO • Customize systems and data in each field office while providing
early warning of problems, and a standard planning feature
Audit
Team WHAT WOULD FAILURE
MEAN?
CIO • The loss of money, effort and credibility
HR Lead • Lack of information for taking decisions related to programmes &
not able to have an early warning system for competency
mapping
APPROACH
Infrastructure Production TAKEN
Head Head Sustainable approach: Help in reaping benefits of Installation such
as increasing governance, transparency in policy and transactions
FAO – THE ELEPHANT DANCES..contd..
6. Define CSFs (Critical Success Factors)
– Milestone wise goals
7. Define Roadmap
– Milestone
– Goals at each milestone
– Role responsible for achieving this goal
8. Project Review
– Two types of review
• Milestone based review – done by stakeholders/auditors (senior management will be audited/reviewed)
• Periodic review – weekly/monthly/quarterly (senior management will audit/review)
9. Communication Strategy
– Why are we doing what we are doing
– Hourly, Daily, Weekly, Mothly
• Man KiBaat
• Aarogya Setu, Corona communication
EXAMPLE
EXAMPLE OF
OF ROADMAP
ROADMAP
Key Initiative Summary

Project # Imp Date Description Capacity Lift Recognized
1 1/23/2007 Performance Hot Fix (stored proc. optimize for database lock relief) 0%
2 2/10/2007 Infrastructure Enhancement - DOP Modification 5% February-07
3 2/23/2007 Release 8.0 - Edge/TFC/RemitAdmin for UPS 0%
4 3/6/2007 Performance Hot Fix (5 key table splits for lock relief) 0%
5 4/13/2007 Implement 2 Additional Citrix Servers 3% April-07
6 5/6/2007 New Production DB Server and SQL 2005 Upgrade 55% May-07
Milestones 7 6/22/2007 Release 9.0 and ER207 - RemitOne/Edge/TFC/RemitAdmin 0%
8 6/28/2007 Performance Hot Fix (T-SQL Conversion) 5% July-07
9 7/2/2007 Citrix Farm Re-Design and 4 Additional Server Adds 15% July-07
10 11/9/2007 Release 10.0 - RemitOne/Edge/TFC/RemitAdmin for PVB/RedLight 0%
** Projects 1 & 3 actual capacity impact will be captured if improvement noted and forecast adjusted as necessary.
2007
Jan Feb March April May June July Aug Sept Oct Nov Dec
Project # and Capacity Lift 2 (5%) 5 (3%) 6 (55%) 8 & 9 (20%)
Batches
Batches/ Month Demand 447,942 450,908 474,813 499,830 534,789 563,767 597,361 620,978 651,425 682,804 711,936 714,903
Max Batches/Day Target 39,900 40,164 42,294 44,522 47,636 50,217 53,209 55,313 58,025 60,820 63,415 63,679
Capacity RAG
Keystrokes
Keystrokes/Month Demand 119,467,398 120,845,111 124,722,824 139,615,948 150,796,123 161,783,526 175,629,026 178,347,763 183,762,266 192,576,985 201,800,550 203,178,263
Max Keystrokes/Day Target 10,428,000 10,548,257 10,886,733 12,186,715 13,162,603 14,121,665 15,330,203 15,567,515 16,040,133 16,809,547 17,614,648 17,734,905
Capacity RAG
Checks
Checks/Month Demand 5,177,072 5,211,357 5,487,643 5,776,768 6,180,809 6,515,728 6,903,983 7,176,932 7,528,830 7,891,493 8,228,181 8,262,466
Max Checks/Day Target 446,960 449,920 473,773 498,734 533,617 562,532 596,052 619,617 649,998 681,308 710,376 713,336
Capacity RAG
Timeline Images
Images/Month Demand 13,975,224 14,136,388 14,997,552 15,737,146 16,810,926 17,565,878 18,398,600 18,597,548 18,989,119 19,513,894 20,370,569 20,531,733
Max Images/Day Target 1,159,000 1,172,366 1,243,784 1,305,121 1,394,172 1,456,782 1,525,842 1,542,341 1,574,815 1,618,336 1,689,382 1,702,748
Capacity RAG
Transmissions
Max Transmissions/Day Demand 2300 2300 2300 2400 2500 2600 2700 2800 2900 3000 3100 3100
Peak Transmissions
Max. Trans at 1400 Cutoff Demand 523 523 523 576 629 682 735 788 841 894 947 1000
Citrix Users
Peak Citrix Users/Day Demand 263 263 283 313 343 370 400 440 460 480 500 510
10.Rewards and Recognition
– Rewards – Monetary
– Recognition - Acknowledgement
11.Pilot
– AF AO –
• Big Bang, Startups
– AF SO – Some offices are selected based on culture
• Income Tax automation – Pune, Hyderabad and Bengaluru
– SF SO – Some features selected based on criticality of those features; some offices are selected based on where these use cases can be tested
• Employee portal being tested, only medical bills automation is tested in Chennai, Bhubaneswar (Infosys)
• Other inhouse developed OR bought out ERPs
– SF AO – Some features are selected on criticality;
• Regulatory requirements
• BS VI, BASEL III
12.Training
– TTT - Train The Trainer
– Involve end users as trainers (Vodafone using employees as customers)
13.Change Request
TAMO – NALCO
• What is TAMO?
– TAMO used for increasing adoption of any system after Installation is over
– TAMO is derived from TAM (Technology Adoption Model, Davis (1989))
– TAM discusses the factors that improves adoption of technology at individual level
• But what about organization level?
• Hence the study on TAMO
• We need to adopt a new system for business reasons
• The adoption is necessitated and triggered by a change in ecofactors
• But there is resistance? Why?
– Newton’s first law
– Individual change is internal but how the entire organization can adopt?
– Hence TAMO, where the workmen are catalysed by external factors
– The framework will help understand these external factors for adoption after
TAMO – NALCO..contd.
Relationship formulation in TAM
Perceived usefulness: The
degree to which an individual
believes that using a particular
system would enhance his or her
Perceived
performance
usefulness
Attitude towards
System using and adopting in Actual
full system use
Perceived ease
of use
Perceived ease of use: The Design and Implementation: The entire process of the design whether it
degree to which an individual involved all the key stakeholders in the entire design and
believes that using a particular implementation process.
system would be free of physical While Tam has been found to be effective in describing individual
and mental effort. behavior for adopting technology, it does not discuss adoption of
technology at organization level.
Rewards and Recognition
Streamlining and
standardization of processes Willingness to use the new system
and practices
User Satisfaction
Perceived
Usefulness
Benefits of the
process
Impact Study of SAP ERP adoption in NALCO,
three years after its implementations
Design and Complexity of the application

Implementatio Perceived
n ease of use
Stakeholder
Risk System working as per the expectations
management in
Management
the decision Training
process effectiveness and
Effective review process skills imparted Integration of system
by the senior
management
• Salient points: vs adoption framework
– Adoption is after installation
– After successful installation, the drive will be to increase adoption
(read usage)
– Similar frameworks, but different timeframes (installation vs
adoption)
– Approach same, but adoption is ROI oriented, where as is installation
is CSFs oriented (CSFs derived from goals)
– Both the cases role of opinion leaders is important
– Recognition works best in adoption while both rewards and
recognition are necessary for installation
Where did he go wrong
So far, the frame works that we have learnt ..
1. Objective 10. Rewards and Recognition
2. Identification of stakeholders (how?) 11. Pilot
12. Training
3. Define project goals/objectives
4. Installation Structure (project
organization structure)
7. Define Roadmap
8. Project Review
9. Communication Strategy
What has been done by SM…
1. Objective √
2. Identification of stakeholders (how?) √
3. Define project goals/objectives √
4. Installation Structure (project organization √
structure) √
√
√
7. Define Roadmap
8. Project Review √
9. Communication Strategy √
10.Rewards and Recognition √
11.Pilot √
12.Training √
If so, where did he go wrong?

Let’s do our bit…
MAY GOD BLESS YOU AND MAY YOU HAVE A WONDERFUL CAREER AHEAD

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ITSDI MASTER

Lack of trust Culture/Vision

Inaccurate forecasting Data accuracy

Market share Turnaround time

Culture/Legacy system Vision not shared

People Training Process

Monitoring and Controlling

Enhance the Operational Enhance Performance

Marketing differentiation IT Support for strategy Revenue performance

Low cost production IT support for core competency Profitability

– READYFOR RE-ENGINEERING AND DIGITAL TRANSFORMATION

buy Off the shelf OR Gap Analysis

• WELCOME TO DIGITAL STRATEGY

Single Function New structures to

To be one of the top three image

• Image processing in Health Care

Senior Management Project Dashboard

Account wise Reports

Project Status Report

Finance Customized Reports for Billing

Performance goals and objectives

Customer and employee Satisfaction

Recruitment Deployment Development Payroll

•Model forecasts daily ”peak” processing Key Initiative Summary

Project # and Capacity Lift 2 (5%) 5 (3%) 6 (55%) 8 & 9 (20%)

2007 Client Migration Recommendation

Remaining Book of Work

Capacity / Demand Release Cross-Impact

Single HR data entry,

Telephone Directory Outlook exchange

Cc Mail IPM ver1.0 + QSD

MSP Knowledge Shop Knowledge management

BoK PCB technology based PCB technology based

Project Level goal

PCB project type based Balance Score Card Bench Utilization

Billing at Cost Center Level

Ability to make changes in process, technology

Internal quality Product or

Speed, Improve Productivity Predictability

Private, In-house existing OR

• scale up to 5 warehouses in the next 2 years

The architecture had the following attributes:

• Managing operational and tactical aspects of an

On demand availability of computer systems,

Pay per Use

• Broad network access and self-service

• Multitenancy (Similar to Co working Space)

– RESTful Web Services

• Network configurations and potential vulnerability threats

• Consistent user management and access controls

• Cloud systems integration and API management

• SaaS is not a better choice when:

• PaaS not ideal for:

• Virtual machine sprawl

• Data erase practices

AND THE STORY GOES ON

• Company Created Touchpoints:

Information Search Purchase Other Touchpoints

Google search To know where and when he goes Search Habits