Migrating to the cloud doesn’t have to be a complex task anymore. KABELO MAKWANE, MD of Accenture South Africa’s Cloud First business, explains the ‘Lift and shift approach’.
‘Lift-and-shift’ – the classic approach to cloud migration – means this: take all your existing IT structures, procedures and applications and transfer them to the cloud.
On paper, such an approach seems sensible. Yet, while cloud migration may mean the benefit of eliminating physical hardware infrastructure on the IaaS layer, transferring needless complexity elsewhere can in fact cause a business’s total cost of ownership on the cloud to escalate. More broadly, the speed and effectiveness of any cloud migration is highly ecosystem-dependent; the application landscape forms only one part.
The reason is the amplifying effect of the cloud. Poorly designed or inefficient IT operating models have their flaws emphasised by the as-a-service paradigm. On one hand, this means that if businesses haven’t designed an efficient service management model or built their application sets with an eye on leanness, they may end up spending more to maintain those functions in the cloud. Other ecosystem areas – including governance and management – also require an expert guiding hand when it comes to cloud pivots.
All businesses are likely to witness a degree of change in their IT operating models when undertaking a migration. For one, cloud changes the way people operate within an IT environment. Because of the high degree of automation within the cloud, for example, people are both freed up and required to work at a higher order, both in terms of IT ops and administration.
Given this consideration and others, enterprises need to assess how fast and to what extent they want to rotate to the cloud. Will it be full-on ERP in the cloud? Full CRM in the cloud with mobility? Partial? The growing impetus for enterprises to forward integrate using cloud services is a related consideration. Indeed, the trend is coming to demand increasing attention.
Consider the near-ubiquity of self-service banking apps. Today, we’d say that a financial services provider without one belongs in the stone age. And yet banking apps have been a relatively recent development. Healthcare is seeing similar developments with the rise of wearable tech. The industry is likely to witness the same level of forward integration, requiring consumers to take some degree of responsibility in terms of managing their own health and wellness.
When it comes to the application-level changes cloud-minded businesses undergo during migration, natively cloud apps will be those requiring the least remediation. Others will likely require more rationalisation and consolidation. Hearkening back to the concept of leanness, enterprises often have a large real estate of custom applications spun out by IT over time. Performing analysis and due diligence on the application landscape before a migration is key. Migrations present a good opportunity to do a little spring cleaning.
Integration layers – what we used to call ‘middleware’ – are key here, yet the area has also witnessed something of an overhaul. There are still middleware players – they haven’t gone away; they have just reinvented themselves. When it comes to modernising applications, containerisation allows for application migration without full reengineering. From a DevOps perspective, tools such as Kitkat and Cucumber can help with rewriting applications so that they become cloud ready.
Another key aspect of the migration ecosystem is governance. The sphere may be easy to overlook, yet business need to ask themselves key questions: ‘Do we have a governance model for operating in the cloud? Does it extend to security, risk and identity management?’ In this line, a concept known as shared responsibility is gaining traction. The approach means that enterprises cannot negate their responsibility to secure their applications and data, even if the cloud is more secure than their existing on-premise environment. It’s about a joint effort.
A final ecosystem component is that of cloud service brokerage. Businesses’ habits of consuming federated IT infrastructures and application environments haven’t gone away. Interest in engaging multiple providers is still driven, in some cases, by organisations shying away from vendor lock-in. Alternatively, enterprises may buy different applications for different purposes, informed by their strategy.
When it comes to consuming federated or disparate environments, businesses often require some level of service brokerage. So there is an emerged discipline – within hyperscale cloud particularly – wherein specific boutique outfits are now building brokerage capabilities. The result is that organisations can consume from multiple cloud types on their own terms.
At the broadest level, to be able to fully realise the promise of cloud in terms of speed, efficiency, cost effectiveness, scale and optimisation, capable oversight is required. The result is that cloud management platforms have emerged – many hyperscale cloud providers are now building management capabilities onto their offerings.
AWS’s EC2 platform for example has seen ongoing investment to natively embed functions around identity management and application integration in the cloud and Microsoft Azure Cloud also sees heavy investment in this area as well in order to build native capability. By embedding such tools, it becomes far easier for businesses to deploy cloud applications as extensive knowledge of middleware and integration tools are no longer required.
In sum, effective, cost-effective cloud migration depends on thoughtful deployment on a host of levels – applications, governance, management and brokerage among them. In short, it’s all about leveraging the ecosystem.
Smart grids needed for Africa’s utilities
Power utilities across Africa should rethink their business models and how they manage and monetise their assets to keep pace with the changing energy ecosystem, says COLIN BEANEY, Global Industry Director for Asset-intensive and Energy and Utilities at IFS.
Africa’s abundant natural resources and urgent need for power mean that it is one of the most exciting and innovative energy markets in a world that is moving rapidly towards clean, renewable energy sources. The continent’s energy industry is taking new approaches to providing unserved and underserved communities with access to power, with an emphasis on smart technologies and greener energy sources.
Power systems are evolving from centralised, top-down systems as interest in off-grid technology grows among African businesses and consumers. And according to PwC, we will see installed power capacity rise from 2012’s 90GW to 380GW in 2040 in sub-Saharan Africa. Power utilities are needing to rethink their business models and how they manage and monetise their assets to keep pace with the changing energy ecosystem.
Energy and utilities providers are transforming from centralised supply companies to more distributed, bi-directional service providers. They can only achieve this through the evolution of “smart grids” where sensors and smart meters will be able to provide the consumer with a more granular level of detail of power usage. This shift from an energy supplier to “lifestyle provider” will require a much more dynamic and optimised approach to maintenance and field service.
African companies must thus embrace digital transformation as an imperative. This transformation begins by embracing enterprise asset management to improve asset utilisation. The subsequent steps are enhancing upstream and downstream supply chain management; resource optimisation; introducing enterprise operational intelligence; embracing new technologies such as the Internet of Things, machine learning, and predictive maintenance; and becoming a smart utility.
Embracing mobility to drive ROI
Getting it right is about putting in place an enterprise backbone that accommodates asset and project management, multinational languages and currencies, new energies and markets, visualisation of the entire value chain, and mobility apps. Mobile technologies that support the field workforce have a vital role to play in driving better ROI from utilities’ investments in enterprise asset management and enterprise resource planning solutions.
Today’s leading enterprise asset management solutions feature powerful functionality for mobile management of the complete workflow of work orders – from logging status changes and updates, from receiving and creating new orders to concluding the job and reporting time, material and expenses. Such solutions are easy to deploy and intuitive for end users to learn and use.
Importantly for organisations operating in parts of the continent with poor telecoms infrastructure, connectivity is not an issue. The solutions work offline and synchronises when network connectivity is available. Users can work on any device—laptops, tablets, and smartphones—commercial or ruggedised.
By ensuring that field technicians have easy access to information and processes, the mobile solution enables technicians and maintenance engineers to easily do the following tasks:
· Create a new work order on the fly and log new opportunities
· Access both historical and planned work information when requested
· Permit customers to sign when the job is completed
· Capture measurements and inspection notes on route work orders
· Create new fault reports on routing
· Facilitate documentation through photo capturing
· Provide easy access to technical data and preventive actions.
The power of mobility allows the engineer to be the origin of all data capture on a service event. They can easily inquire on asset history, record parts used or parts needed for repair, record labour hours, and expenses as they occur, and any notes of repairs performed. When coupled with workforce management tools, such solutions unlock significant productivity gains for utilities who are trying to get the most from their workforce and assets.
Brands fall for app vanity
The experience of a mobile screen full of icons, representing independent apps that your need to open to experience them, is making less sense. Instead, businesses should serve customers with an ‘app-like’ experience inside the digital platform they already use, says PIETER DE VILLIERS, Group CEO at Clickatell.
Many brands remain obsessed with creating mobile apps. This not only defies trends that point to increasing consumer app apathy, but can exclude a sizeable portion of your customers in emerging economies. Companies need to engage with their users where they are rather than forcing them onto an app, in what can only be described as brand vanity.
In 2017 there were around 2.2 million apps available in the iOS app store and over 3 million on Google Play. And, while the number of apps being downloaded continues to rise, analysis shows that consumers are only using 30 apps per month and accessing just 9 on a day-to-day basis.
While these numbers still seem attractively high, in reality the majority of the apps we use are for messaging (like Facebook Messenger, WhatsApp, and WeChat) and our social networking, gaming, leisure, dating or utility activities.
Despite the facts, the application strategy as the holy grail for digital transformation is still being pushed even within large progressive brands. What’s more, some advertising agencies and digital consultants are still pushing apps as the best means for companies to connect with their customers. This has resulted in some organisations stubbornly doubling down on app strategies which are simply not showing return on investment (ROI).
It’s not immediately clear to us whether the fascination with apps is a roll-over from long overdue projects or whether brand owners equate a mobile-first strategy with a mobile app. Mobile-first in 2018 means customer first, and therefore embracing chat commerce in order to deliver services with convenience and simplicity in mind.
Why apps won’t win the internet
The problem with apps goes beyond user fatigue. In the first instance, many apps are poorly designed, assuming technical sophistication which may not match reality for the average customer. Poor user interfaces and attempts to provide complex engagement can result in even the best ideas missing their targets due to lack of engagement.
Secondly, we all know that economic realities drive consumer behaviour. In Africa, new mobile phone users typically opt for feature phones over smartphones. With a longer battery life and a much more accessible price point, feature phones still allow for a basic internet connection, chat platforms like WhatsApp, and call and message functionality. In these regions, the cost of an app – even if it’s free – goes far beyond installing it. Constant updates require reliable and cheap access to the internet. For the average phone owner in an emerging market, this can be a serious challenge.
Thirdly, and most importantly, apps must be relevant to their intended market. Frequency of usage is a key measure of relevance.
Apps which are used on a daily basis, like health and fitness trackers, enjoy constant engagement. New features which are added are eagerly awaited by users who are happy to update their apps.
However, users may well question the relevance of the app if they are required to conduct updates on a monthly or even weekly basis when they are only making use of the app once or twice a year.
On average, I download one app per quarter. Some I use more frequently than others, but all of these apps need to be regularly updated to maintain security, update features, and fix bugs. Many apps are pushing out updates much more frequently. I noticed over the past year that I could go from having all apps updated, to 32 apps requiring an update in five days.
When it comes to a customer-first digital strategy, companies should be asking themselves if an app is really the best way to reach their target audience.
In fact, at the end of 2016, Gartner predicted that by 2019, 20 percent of brands would ditch their mobile app. What’s more, in its 2018 predictions, the company forecast that by 2021, more than 50 percent of corporations would spend more per annum on bots and chatbots than on mobile app development.
So, we need to ask, what is the alternative for CIOs, CDOs, CMOs, and digital leaders who are looking for ways to reach, retain and grow their customer base?
The logical app alternative
The old battle advice goes: fight your enemy where they are not. Military strategists agreed that having your enemy come to you and fight you on your own terms was preferable. In a world where customers have access to thousands of offerings and millions of deals online, we need to flip that idea to Meet Your Customers Where They Are.
Any marketeer will tell you just a how difficult it is to drive app downloads. Development, cross platform testing and user interface aside, the marketing campaign required to get customers to download the app can swallow entire annual budgets and still come up short.
Looking at the facts, it makes infinitely more sense to work within the digital platforms already being used by your target audience.
Clickatell is already enabling chat commerce for some of the leading global brands with its Touch solution. This allows organisations to serve their customers with an ‘app-like’ experience inside the chat or browser platform of their customer’s choice (Twitter, Facebook Messenger, etc.)
Brands can now send an actionable Touch link such as ‘find the nearest ATM’ or ‘reset my password’ within a chat stream that will open an intuitive touch card without the user having to download an app to perform the action. Services can also be linked to the in-app experience for brands not looking to abandon their app efforts.
Working with our clients, many of whom are global innovators and thought leaders, we’ve found that having the courage to design with an ‘end user first’ approach and dealing with the back-end complexity behind the scenes results in cost efficient customer delight and ROI.