October 24, 2011 Cloud @ Philips – Vision and Reality

October 24, 2011

Cloud @ Philips – Vision and Reality

Confidential October 24, 2011 2

An introduction to Philips A well-respected, blue-chip company for 120 years

26%

39%

35%

51%

25%

24%

“…a global company of leading businesses creating value with meaningful innovations that improve people’s health and well-being.”

Founded in 1891Headquartered in Amsterdam, Netherlands

Sales of €22.3 billion in 20101

Growth Markets32% of 2010 sales generated in growth markets

Globally recognized brand (world top 50)Our brand value doubled to $8.7bn since 20042

117,000 employeesSales and service outlets in over 100 countries

€1.5 billion investment in R&D, 7% of sales

Who we are Our businesses Our mission

2010

Healthcare

Lighting

Consumer Lifestyle

2Source: Interbrand1Note - All figures from the year 2010 onwards exclude Television as it is treated as discontinued operation


Unique leadership positions in many marketsCurrent NPS leadership positions1

GlobalCardiovascular

X-ray

GlobalPatient

Monitoring

GlobalUltrasound

RegionalCardiac

resuscitation

Regional (USA)Home

Monitoring

GlobalMale electric

shaving & grooming

GlobalMother and Child Care

Regional (Latam, China)

Beauty and Skin

Regional (Latam, China)

Kitchen appliances

GlobalOral

Healthcare

GlobalHigh Power

LEDs

GlobalProfessional Luminaires

GlobalLumileds

GlobalAutomotive

Lighting

GlobalProfessional

Lamps

Healthcare

ConsumerLifestyle

Lighting


Creating meaningful innovationsImproving lives in new ways

Gain deep insights into people’s needs and aspirations by following a process requiring end-user input at every stage

Transform insights into innovations by combining the diverse perspectives of different disciplines

“Learn fast, fail cheap” by applying a rigorous process to assess value potential early

Lead in open innovation by working closely together with partners in a spirit of open innovation


• We know we want to use cloud services– Do we know why?– The usual: cost, speed, opex, reach

• We know our business wants to use cloud services– Do we know why?– The usual: speed, easy to bypass IT (lowcost carrier strategy, swipe

your credit card model)

We rather have a cloud tactic: adopt where usefull

Do we have a cloud Strategy?

Confidential October 24, 2011

Our Journey, a classic journey

Discovery Structuring

IT: what is the cloud?

Business: just buy and expense it

Partners meeting

Seminars

buzz

Proof of Concepts

Pilots

Architecture Principles and

Guidelines

Defined space in the architecture

Systematically looking for cloud

alternatives

BPM

ESB

Make cloud and non cloud work

together

Adoption Integration



Discovery Structuring

IT: what is the cloud?

Business: just buy and expense it

Partners meeting

Seminars

buzz

Proof of Concepts

Pilots

Architecture Principles and

Guidelines

Defined space in the architecture

Systematically looking for cloud

alternatives

BPM

ESB

Make cloud and non cloud work

together

Adoption Integration


Massive discussion

SaaS

PaaSIaaS

Definition

Control Risk

Integration

Compliance

RoadmapMigration

Exit ScenarioIP

SpeedEase

Flexibility

Social



IT

Discovery

Jan 2010 – private cloud with T-SystemsMassive HR Landscape (careers, talent, performance,

training,…)

Our Business

iSite PACS


Structuring – why?

• Give your teams (architects, project managers, SRC officers, …) an easily readable map to

– Detect opportunities– Understand the risks– Prepare for solution analysis– Prepare for decision support

• Give examples: we already use some cloud applications


Structuring – seize the opportunity

BusinessProcessOutsourcing

Stand-alone Low budget Application

To be Integrated with other Applications

Sensitive / privacy information

Bus. Critical / Comp. Adv. Application

Vendor Compl. & DependencyRisk

Standard Appl. from preferred vendor available

Cloud: Private offering

Cloud: Public offering

Cloud: Hybrid offering

Cloud: Community offering

Explore SaaS solutions as a preference

Potential risks, assess and compare to on premise applications

High risk, full assessment required to consider as a solution


Structuring– set the principles

1. Prime SaaS candidates: Outsourced bus. processes

Stand-alone & standard business processes

2. No preclusion of SaaS solution candidates based on business process area

3. Business Process Architect must assess risks & approve in all other cases. BIA (Business Impact

Assessment) required; (segregation in multi-tenant offerings; Identity management federation)

1. Prime SaaS candidates: Limited information exchange

with SaaS domain; (to be evaluated from a business process perspective).

2. SaaS candidates dealing with sensitive/ privacy information must be checked against internal and external regulations (Philips Classification, SOX, HIIPA, etc.) : PIA (Privacy Impact

Assessment) required

3. Information architect must approve.

1. Prime SaaS candidates: Loosely coupled applications

(decision by the architects)

No solution planned (8Q RM).

2. SaaS candidates to be tightly integrated with other IT building blocks (both SaaS and non-SaaS) must be checked on: No short term alternative

‘Decoupling hub’ at Philips side taken into account

BIA Assessment required

3. Application architects must assess risk and approve

1. Prime SaaS candidates: Commodity IT-Solutions

Via existing providers.

2. SaaS candidates based on differentiating techno-logy solutions need to be assessed on: Integration & compatibility

between Philips and SaaS Technology Infrastructure.

Integration with Philips security and identity & access management Infrastructure:

SSO & User mgt. federation is key requirement

3. Technology architect must assess risk & approve.

Process

1. SaaS selection, approval and implementation process must follow the ‘normal’ procedure including EAB approval.

2. SaaS solutions must always be taken into account in software selection processes.

3. SaaS vendor dependency must be well managed, especially in case of very business specific ‘niche’ applications, provided by only a few niche vendors

Information Application Technology

Governance


Structuring – manage the risk

• You already have the controls!– Look at what you do when you do outsourcing (or BPO)– Leverage your weight to adapt the cloud contract

• Balance– Adapt your principles and checks to catch the risks early– Setup the golden rules to equip your IT and business with the quick

filter to detect potential catch points


Adopting – where is cloud going to help?

Foundation

Enabler

Co Creator

Maintain the state of the companyManage the integrity of the state

Empower usersDeploy services in the fieldAdapt fast

Build in agile and far reaching environmentsScale with business success


Adopting – where is cloud going to help?

Foundation

Enabler

Co Creator

Cloud -

Cloud +

Cloud ++


Transforming accident in success ?

• From adoption everywhere to clear use• Consolidated business plans (!)• Replace user facing solutions with

– Flexible– Fast– Modern

Our CRM?


How?

• Integral business case• Exit scenario• Involve the cloud vendor in your project, qualify with prototyping• Extend with the right partners (integration, functional)

Our CRM?


Structural adoption and integration – cloud style

• Large cloud landscape means large integration with cloud services and your in house systems (doh!)

– Where we are: is an ESB sufficient, do we need accelerators like ironcast, how does SAP PI resist

– You are the glue -> pushing your masterdata model out is less of an option, so you get to build the Rosetta Stone

• Large SaaS drives UI specialization but also UI diversity across a user journey

– Unless… you go for one specific ecosystem (Salesforce +…)


SaaS solutions driving agility: The Technovision perspective

Technovision for PHILIPS

Collaboration

Foundational Business Solutions

Open Standards & Service Orientation

Sharepoint 2010 (BPOS)SocialCast (Connect Us)

Vovici

CollaborationHubs (eg. REACH)

Lighting: CityTouchSalesForce.comConcur

ADP PayrolAribaZycus

AOK soft tokens

HC Service Mgt.(based on Force.com)

Amazon EC2/ EC3

Lighting: CityTouch

• MS Azure Force.comPaymetric

SAVOStepstone

INNT

Agility

Scalability & Efficency

Documents

October 24, 2011 Cloud @ Philips – Vision and Reality