WORLD

cschealth

445yx

NOVEMBER 2015

WORLD

Connected Cars

DRIVE VALUE

The new wave of telematics delivers

benefits throughout the automotive

value chain

INSIDE

Under the Hood with Ford

Insurance’s Perfect Storm

Enterprise IT Gets Lean

The Matrix Is Here


YOUR AGENTS

AND CUSTOMERS

ARE MOBILE.

IS YOUR POINT

OF SALE SYSTEM?

Imagine the power to quote, propose and process

from tablets and mobile devices, all integrated

with your core policy administration systems.

The new CSC Integral TM Point of Sale solution

gives insurers out-of-the-box flexibility to quickly

launch products and perform end-to-end point of

sale and service functions. The next-generation

system is mobile-ready for agents and customers,

and it includes offline capabilities so insurers can

continue working even without Internet access.

In the new world of Digital Insurance, mobile

sales and service solutions are within reach

FOR THOSE WHO SOLVE.

csc.com/integral


WORLD

Inside CSC World

CHIEF MARKETING & COMMUNICATIONS OFFICER

Gary Stockman

EDITORIAL DIRECTOR

Patricia Brown

SENIOR MANAGING EDITOR

Jeff Caruso

CONTENT MARKETING EDITOR

Lucy Nolan

CONTRIBUTING WRITERS

Jim Battey, Nathan Conz, Dale Coyner, Cal Harrison,

Peter Krass, Jenny Mangelsdorf

ART DIRECTOR

Deric Luong

DESIGN & PRODUCTION

Creative Services

CSC

csc.com

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CSC WORLD (ISSN 1534-5831)

is a publication of

Computer Sciences Corporation.

Copyright ©2015

Computer Sciences Corporation

All rights reserved.

Reproduction without permission

is prohibited.

This edition of CSC World marks an important milestone, as we

complete the separation of our company into two global leaders:

CSC, serving global commercial and international public sector

clients; and a new enterprise, CSRA, which combines our U.S.

public sector business with SRA International to become the

largest IT services company focused on the U.S. government.

This is another exciting chapter in our journey, and I’m grateful

for the role that everyone at CSC has played in bringing our

transformation to this stage.

When you consider the scope and speed of the transformation we have

undertaken, it’s fair to say that we’ve made remarkable progress. Since 2012,

we have focused on providing leadership and value to our clients. We’ve grown

relationships with our strategic partners. We’ve improved our financial and

operational performance. We have a clear strategy that streamlines our offerings

and aligns with key industries. And — most importantly — we have become a more

relevant and competitive player in the global technology ecosystem.

The improvements we have made to date are being recognized by everyone — partners,

investors, financial and industry analysts, and especially our customers and employees.

So, what does that success mean as we turn to CSC’s next chapter?

We hear from clients throughout the world that they need to transform their legacy

systems, applications and workloads. For many of these clients, IT no longer just

supports the business, it is the business. But with so many competing priorities,

they just aren’t sure where and how to begin.

We have reinvented CSC so we can lead our clients on their own digital transformation

journey. The offerings we’re developing today build on a new generation of technologies

to address the major business shifts our clients are encountering today.

As a global leader in delivering next-generation solutions, we know that today’s

challenges can’t be solved by only one source. Our partners are key to accomplishing

our goals and those of our clients. That’s why we’re developing products and

capabilities within a robust alliance ecosystem. Working with other industry leaders

makes our R&D investments and expertise go further and enables us to offer

end-to-end solutions that best address client needs.

We’re also making better use of our own domain expertise and intellectual property.

Large segments of the insurance, banking, and healthcare and life sciences industries

rely on CSC products and services. And we’re developing new solutions, making

new investments to maintain our leading position and continually innovating to

keep ahead of change.

This truly is a remarkable time in CSC’s journey. With approximately 56,000 employees

serving clients in more than 60 countries, we’re in an excellent position to help clients

succeed, build exciting new offerings, develop the next-generation skills

of our employees and return greater value to our shareholders.

Now, more than ever, we’re poised to help clients navigate their own digital

transformation — to better serve their customers, maintain

competitiveness and forge into the future.

We have great reason to be excited about what’s ahead — for

CSC, our clients, employees and all of our stakeholders.

Enjoy the issue.

MIKE LAWRIE

President and CEO, CSC

csc.com/cscworld

NOVEMBER 2015 | CSC WORLD

1


CSC WORLD | NOVEMBER 2015 | VOLUME 13 | NUMBER 2

14

22

18

24

8

8

4 NEWS

CSC acquires two leading IT providers, forms a joint

venture to focus on banking modernization, introduces new

cloud solutions and reports on corporate responsibility.

6 HEARD ON CSC.COM

Experts are coming to CSC.com’s blogs and Town

Halls to give their insights on industry developments

and technology trends.

COVER STORY

Connected Cars

Drive Value

Connectivity enables exciting innovations that can

attract new buyers. But the true value of connected

cars extends much further.

LIFE SCIENCES

12 5 Things CIOs Need to Know About

Capital-Efficient Innovation

CIOs facing the dual challenge of innovating to grow while

reducing costs should focus their attention on five main areas.

14 The Questions Life Sciences Firms Ask

About Cloud

Before rushing into the cloud, companies should first

address two important issues: compliance

and disentanglement.

HEALTHCARE

16 Reaching the Full Potential of Healthcare IT

As the healthcare industry undergoes widespread

disruption, CIOs might do well to revisit Maslow’s

theory on the hierarchy of needs.

18 NHS Trafford CCG: Setting a New Standard in

Patient Care Coordination

The innovative Trafford Care Co-ordination Centre could

evolve into a model for the provision and management

of population health.

INSURANCE

20 Improving Speed to Market

In a consumer-driven environment, insurers can achieve

better speed to market by following these six strategies.

22 Digital Insurance: How to Compete in the

New Digital Economy

To succeed in the digital age, an insurer’s relationship with

its customers needs to be more holistic and experiential.

24 All About Scale

In an informative Q&A, executive Karen Johnston explains

how insurer MEMIC dramatically expanded its business.

26 4 Factors Creating a Perfect Storm in the

Insurance Industry

Four major market forces are on the verge of changing

the way the entire industry works, and may even

change the players.

2 CSC WORLD | NOVEMBER 2015


28

32

38

42

ON CSC.COM

INFOGRAPHICS CENTRAL

Explore key trends and data in visual and interactive

ways with a collection of CSC infographics on emerging

technologies. csc.com/Infographics.

CSC TOWN HALLS

Join a continuing series of online conferences on

IT topics that matter to you, featuring CSC experts and

special guest speakers ready to answer your questions.

csc.com/TownHall.

SUCCESS STORY BRIEFING CENTER

View video success stories featuring CSC subject matter

experts, clients and global partners.

csc.com/Success_Stories.

TRANSPORTATION

28 Turning Anonymous Riders into

Connected Consumers

Scandinavia’s largest public-transportation agency

replaces paper tickets with a digital system that offers

truly personalized customer service.

MANUFACTURING

30 Reinvesting in the Right Stuff for

Aerospace and Defense

The 2015 A&D Market Survey reveals the top two priorities

of execs: product innovation and lower costs.

RETAIL

32 3 Steps to Seasonal Readiness

Preparing for seasonal spikes is far from simple.

Retailers can benefit by proactively adopting three

smart approaches.

CYBERSECURITY

34 Hiding in Plain Sight

If today’s advanced persistent threats have not yet penetrated

your systems and data, you can be certain they will.

INFRASTRUCTURE

38 Modern IT Architecture in One Word: Shared

An increasing shift toward “sharing” — sharing services,

data, code and more — is causing IT architects to look

at systems in new ways.

APPLICATIONS

40 Enterprise IT Gets Lean

Enterprise IT executives are adopting tried and true manufacturing

concepts targeting waste and complexity.

RESEARCH

42 The Matrix Is Here

An emerging set of digital services is radically transforming

many aspects of business and society, and will only grow

stronger over time.

LAST WORD

44 IT Trends to Watch in 2016

As 2016 approaches, a few trends stand out as catalysts of

change. Developing strategies around these trends could

give enterprises a competitive edge.

CLOUD

36 The DevOps Disruption

DevOps transformation can not only lead to competitive

advantage, but under the right conditions, it can also

create market disruption.

37 Lessons Learned from the DevOps Front Lines

A panel of experts weighs in on how DevOps can accelerate

the application development, testing and release process.

NOVEMBER 2015 | CSC WORLD

3


NEWS

FIXNETIX AND FRUITION JOIN CSC

CSC in September completed acquisitions

of two key technology providers: Fruition

Partners and Fixnetix.

Chicago-based Fruition Partners is a

leading provider of technology solutions

for the service management sector.

Founded in 2001, Fruition is also the

world’s largest ServiceNow exclusive

service management consulting firm.

With the addition of Fruition, CSC

bolsters its ability to offer both

enterprise and emerging

clients an expanded

range of cloud-based

service management

solutions. These new

solutions help businesses

improve organizational

efficiency while lowering

their operating costs. Also,

CSC now delivers the world’s

only fully managed ServiceNow

application service offering.

Marc Talluto, Fruition’s co-founder

and CEO, says the combined business

“marries CSC’s global strength with

Fruition Partners’ service management

expertise to bring existing and new clients

even greater results as they continue to

be challenged in the constantly evolving

digital world.” Talluto will now lead CSC’s

global ServiceNow organization.

Fixnetix, based in London, was founded

in 2005 and quickly became a leading

provider of front-office managed trading

solutions in capital markets. CSC will

combine Fixnetix with its own nextgeneration

IT platforms and IT utility

services. As a result, CSC can now offer

capital market companies an expanded

range of as-a-service front-office

capabilities. CSC can also address the

market’s growing demand for greater

efficiency and innovation.

Steve Hilton, executive

vice president and

general manager

of CSC’s Global

Infrastructure

Services, says CSC

and Fixnetix have a

“unique opportunity

to provide clients worldclass

global managed

services for low-latency trading,

market data, hosting, connectivity

and risk management solutions.”

JOINT VENTURE

TO MODERNIZE BANKS

CSC and HCL Technologies this summer

formed a banking software and services

joint venture called CeleritiFinTech.

Banks desperately need IT innovation to

keep pace in a fast-changing industry.

Yet many banks still spend up to 80

percent of their technology budgets on

mundane “keep the lights on” activities.

To help, the jointly owned company will

invest in platform modernization and

product functionality enhancement, and

it will capitalize on the proven capabilities

of both companies in addressing the

multibillion-dollar, global core banking

software market.

HCL, founded in 1976, describes itself as

one of India’s first garage start-ups. Since

then, the company has grown dramatically.

It now has more than 105,000 employees,

offices in 31 countries and annual revenue

in excess of US$6 billion.

CeleritiFinTech will help banks extend

the useful life of and investment in their

current platforms, enhance and expand

CSC’s core banking and cards platforms

into modernized end-to-end solutions

under the Celeriti suite, and advance

digital banking transformation solutions

in conjunction with other partners.

“Many of our banking clients are looking

for modernization of their legacy platforms

while simultaneously managing the

increasing demands for data analytics

services, multichannel deployments

and increasing regulatory compliance

requirements,” says Anant Gupta, HCL’s

president and CEO. “The joint entity is

designed to meet those critical demands

with new and innovative solutions, and to

expedite the modernization transformation

journey of our banking clients.”

4 CSC WORLD | NOVEMBER 2015


MAKING HYBRID CLOUDS EASIER

TO MANAGE WITH AT&T

Managing workloads across hybrid cloud

networks just got a whole lot easier and

more secure. That’s because CSC and

AT&T have jointly announced a solution

to help businesses become more flexible

and lower their costs by moving key

business applications to the cloud.

The new solution, called AT&T NetBond

with CSC Agility Platform, is itself

something of a hybrid. The joint solution

empowers developers to rapidly

and consistently provision applications

onto cloud and network services using

automation. This, in turn, means that

enterprises can now safely transform to a

highly secure hybrid cloud environment.

“This is a step forward for enterprise

cloud service,” says Dan Hushon, CSC’s

chief technology officer. “End-to-end

control helps the most complex environments

work better.”

Here’s an example of how it works:

Imagine a business struggling to meet

IT demand. The company could use

the new AT&T–CSC solution to boost

computing power, storage and network

capacities. It could then access multiple

cloud providers from a CSC Agility

Platform TM single control plane over

AT&T’s virtual private network. This could

improve security and resource management,

while also reducing audit burdens.

Learn more at

csc.com/harnessthecloud.

CSC SHOWS

STRONG GAINS

IN CORPORATE

RESPONSIBILITY

CSC remains strongly committed to

corporate responsibility and environmental

sustainability — and the company has the

facts and figures to prove it.

CSC recently released its latest Corporate

Responsibility and Sustainability

Report, which details all global, social

and environmental sustainability

achievements for the latest fiscal year.

As the report shows, CSC has:

ADDING ON-DEMAND WORKLOAD

PROTECTION FOR CLOUD SECURITY

CSC recently unveiled an enhanced,

pay-as-you-go cloud security services

solution. It enables enterprise clients

to scale their cloud-workload security

functionality up — or down — as

required by their business, technical

or financial needs.

On-Demand Workload Protection, the

new solution, was developed by CSC

with technology partner CloudPassage.

It’s designed to help clients protect

their cloud workloads and consume

cloud-based security services using

the same attributes that have made

public cloud computing services

so popular.

In the past, many organizations had to

cobble together cloud solutions based

on multiple technologies and legacy

licenses. But now, CSC’s new Security as

a Service capability lets companies use

flexible, consumption-based security

models instead. These can flex in

concert with a company’s business

and operational requirements.

The new solution offers an affordable

alternative that gives enterprises clear

visibility into all their platforms and

workloads. Eliminating the need for

dedicated staff to manage and monitor

multiple security services internally

will also free up resources that can be

invested elsewhere in the business.

• Created a 3-year Global

Environmental Strategy reaching

across all of the company’s data

centers and offices worldwide. The

goal: drive compliance with energy

and e-waste reduction targets,

achieve international certifications,

and meet green-building standards.

• Achieved a 15+ percent absolute energy

reduction against the 2012 baseline,

exceeding the original 10 percent

reduction target in just 2 years.

• Realized a 13 percent global greenhouse-gas

reduction against the 2012

baseline, remaining on track for an

18 percent reduction by 2018.

“As we move forward with our transformation

agenda,” says Mike Lawrie, CSC’s

president and CEO, “our commitment to

corporate responsibility remains a crucial

pillar of our business success.”

NOVEMBER 2015 | CSC WORLD

5


Heard on

CSC.COM

Experts inside and outside of CSC are coming to csc.com to make

their voices heard, in CSC Town Hall webcasts and our blogs. Here

are some highlights.

IT skills

in demand

We look for people who have the skill to acquire new

skills. We look for people who understand models.

Whether those are programming models or financial

models, or data models — they’re able to take those

models and translate those into slightly novel situations.

Daniel Angelucci

Chief Technology Officer, Asia, Middle East and Africa, CSC

Town Hall, “Hottest IT Job Skills”

csc.com/ITjobs

Power struggle

In the technology world we are used to raw performance

doubling every 12 to 18 months under Moore’s law. That’s our

expectation, but it’s not been true for battery technology. The

lithium-ion battery has been a workhorse for nearly 25 years

now; in that time there have been a number of incremental

improvements in capacity, but nothing approaching Moore’s

law. In many ways Moore’s law makes the lack of progress in

battery technology even more striking as the devices that

we carry around get increasingly powerful, leading to higher

power expectations.

Graham Chastney

Principal Solution Architect, CSC

CSC Blog, “Batteries: The unsolved problem in our mobile world”

csc.com/batteries

6 CSC WORLD | NOVEMBER 2015


Send in the

maverick

To be successful in providing

next-gen mobile solutions to your

workforce, you need a next-gen

mobile maverick. Some weird guy

who’s not afraid to break with habits which ruled IT for the

last three decades. A brave enthusiast whose mission will

be to bring a fresh breeze of Silicon Valley-like paradigms

into your IT department. A strong believer in Steve Jobs’

3-tap mantra or Amazon’s 2-pizza rule.

Christian Klöppel

Head of Global Mobility Consulting

CSC Blog, “Why a Mobile Maverick is Mission Critical to

Your Mobile Strategy”

csc.com/maverick

Where

telematics and

big data meet

In many cases, we can incentivize customers to play an active

part by sharing data and, based on the insights from that data,

modify their behavior to reduce risk. It’s a fantastic model for

the insurance industry, one that offers greater transparency

and value for all stakeholders.

Andrew Dart

Insurance Industry Strategist, CSC

CSC Blog, “IoT: Where Telematics and Big Data meet to

create huge opportunities”

csc.com/telematics-bigdata

Please do

not feed the

zombies

Unused apps forgotten on smartphones and tablets could

contain vulnerabilities which can be exploited through

permissions granted to an unrelated app that hackers can

leverage to turn the dead app into a zombie. In addition to a

backdoor approach, hackers often will trick users with bogus

updates for the app which, if approved, enables the hackers

to grab personal (and maybe enterprise) information from

mobile devices.

Chris Nerney

Technology Journalist

CSC Blog, “Are ‘zombie apps’ stalking your mobile users?”

csc.com/zombie-apps

A tool for our time

No matter how groundbreaking we think

our new technology tools are, they are

only tools. They fit into a long history of

tools designed to improve the practice

of medicine and, in a nicely Darwinian

turn, only the fittest will survive. Will

the smartphone be one of those tools that stand the test

of time? Well, I’d confidently predict that some kind of

personally owned health and well-being management

device will certainly become ubiquitous.

Phil Hemmings

Director, Global Industry Marketing, CSC Healthcare

and Life Sciences

CSC Blog, “In the 21st Century Medicine Will Be Different,

and This Time It’s Personal”

csc.com/tools-medicine

NOVEMBER 2015 | CSC WORLD

7


COVER STORY

Connected Cars

DRIVE VALUE

by Dale Coyner

The new wave of

telematics delivers

benefits throughout

the automotive

value chain

Learn more about CSC’s

connected car solutions at

csc.com/connectedcar.

8 CSC WORLD | NOVEMBER 2015


Autonomous driving and electric cars may dominate

headlines about the future of the automobile, but the era of

the connected car has already arrived. Fueled by demands

from an always-connected mobile society, millions of cars

equipped with built-in connectivity are driving off dealership

lots every year.

Connected vehicles enable a host of innovations that add

convenience, comfort and safety, says Chris Fangmann,

CTO, global manufacturing industry at CSC.

“Connectivity enhances safety features such as parking

assistance, adaptive cruise control, blind spot assistance,

collision avoidance and improved night vision, to name just a

few,” he says. “While those features are important to attract

new buyers, the value of connected cars to automotive and

other industries, such as insurance, extends much further.”

Let’s stay in touch

Data generated by connected vehicles has inherent value,

whether it’s used to study the reliability and service life of a

power window relay, analyze and automatically optimize engine

performance in a wide range of environments, understand

driver habits, communicate with other vehicles, predict failures,

report an accident, or track and predict any of a vast range of

specific vehicle metrics.

Ford Motor Company will be using the data to customize

maintenance and services, improve safety and enhance

the driving experience.

“With connected vehicles, we can create a custom

maintenance schedule for the customer,” says Roopak Verma,

Ford’s CIO for Europe, the Middle East and Africa. “Today, we

might tell a customer to change the oil every 10,000 miles,

but in reality the schedule should be based on the customer’s

driving habits. With connected capabilities, you can know it’s

OK to wait until 11,500 miles, and the same applies to every

component in the car.”

Connectivity also enables Ford vehicles to automatically

reconfigure driving characteristics based on weather and

road conditions.

In a pilot project in London, Fords are even tapping into data

from parking lots. “You enter an address into the GPS, and you

can see in real time where the parking spaces are — and

in London, that’s a big deal,” Verma says.

Ford is conducting pilot projects for car sharing, which is

made easier with connected cars. Rather than exchanging

keys, drivers can simply send a code to unlock the vehicle

over a mobile phone. Settings for the seat, radio, rearview

mirror and more can be activated with the touch of a button

on a smartphone.

“I believe the biggest impact is going to be to the fleet business,

because you can really optimize your costs,” Verma says.

Larry Stolle, global automotive marketing director at SAP,

says advancements like these are changing the fundamental

makeup of cars. “I like the contrast Dr. Lawrence Burns from

the University of Michigan makes: When you look at the old

DNA of the industry, the automobile was fossil-fuel powered,

mechanical, owned and operated by a person, and built to

suit many purposes,” Stolle says. “The DNA of the car is

changing — self-driving, shareable and more types built for

specific uses. That future is here, now.”

The power of data

The collected data has great potential value beyond

manufacturers, for example to third-party service providers

such as auto insurance companies. Vehicle information can

help insurers adjust rates based on driver performance,

leading to more efficient risk-pricing models, lower claims and

faster claims processing. Marketers would pay for that data,

too, because they would have yet another channel to reach

customers. Plus, new services could be offered based on the

data — imagine drivers entering a route into their GPS and

receiving a proposal for trip-dedicated roadside assistance

due to road and weather conditions.

Governments have begun to grasp the significance of connected

vehicle data. Proposals by federal regulators in the United

States, the European Union and Brazil are targeted at either

encouraging or requiring manufacturers to include telematics to

improve safety, report crashes and reduce incidents of vehicle

theft. The U.S. National Transportation Safety Board is creating

standards to promote connected technologies, predicting that

crashes may be reduced by more than 75 percent. The European

Union in 2013 called for the inclusion of crash alert devices,

estimating that this action could save 2,500 lives annually.

Governments, as well as private companies, can also use data

about road conditions to focus their investments on road repairs

or route planning.

Retailers are eager to tap into the personal data collected,

including location, but the challenge is finding services that

both benefit the customer and address privacy concerns,

Ford’s Verma says.

“We have so many legal constraints, data privacy constraints.

How do we ensure the user’s ownership of data is taken

into account?” Verma says. “That is slowing us down a

little because everybody wants to be extremely careful in

complying with the law.” (For more insight from Ford’s Verma,

see sidebar, page 11.)

One solution is to give drivers the right incentives, according

to Fangmann. “Most people are willing to give up some data

privacy for a 5 to 10 percent better deal on services or

products,” he says.

NOVEMBER 2015 | CSC WORLD

9


COVER STORY

Car Hacking from the Couch

Imagine driving along the highway at 70 mph.

Suddenly, the air conditioner begins blasting

cold air, the radio switches stations and the

volume jumps.

Cruising toward an overpass with no shoulder, you

lose control of the accelerator. RPMs climb and

speed drops as the transmission is disabled.

Ten miles away, a hacker sits comfortably on

his couch while he wreaks havoc with your

car’s systems.

This scenario may seem like the stuff of science

fiction, but it has already been demonstrated by

security researchers looking to show vulnerabilities

in connected cars. And while it’s a frightening

prospect, it should hardly be surprising.

Consumers value bandwidth, apps and connectivity

in the way previous generations compared

horsepower and torque, and manufacturers have

rushed new features to market faster than they’ve

been able to secure them. With up to 100 million

lines of code, today’s vehicle is a rolling, ragtag

collection of industrial-era technologies and

outdated, poorly tested code.

Industry initiatives such as the Automotive Open

System Architecture (AUTOSAR) and the Japan

Automotive Software Platform and Architecture

(JasPar) were developed to standardize vehicle

control systems. In the United States, the Security

and Privacy in Your Car (SPY Car) Act introduced

in July 2015 would direct U.S. federal agencies to

create standards requiring automakers to secure

cars and protect drivers’ privacy.

Suresh Mandava, associate partner for Internet

of Things and big data security at CSC, says the

industry should learn from aerospace and defense

manufacturers and invest in quality coding and

stringent testing to reduce the code footprint

and standardize hardware components and

software platforms.

“Security needs to be baked into the engineering

and architecture of the connected car platform —

not be an aftermarket fix,” Mandava says.

Staying connected in the aftermarket

Still, connected cars offer manufacturers an important avenue

for developing stronger, longer-lasting ties to customers.

“Manufacturers have a reasonable chance of generating

revenue from an owner during the duration of a vehicle’s full

warranty, a window of about 3 to 5 years. Once that period

ends, things change,” Fangmann says. Owners soon begin

making greater use of aftermarket service and independent

parts providers.

Compounding the problem is the fact that cars are staying on

the road longer, with the average age of vehicle registrations

creeping up to 11 years. IDC reported in 2014, citing survey

data and registration statistics, that 71 percent of the U.S.

driving population will likely not upgrade their vehicle for 2 to

7 years — or longer.

Connected cars alter that equation by offering manufacturers

an effective way to stay in touch with vehicle owners over a

vehicle’s entire life cycle. Manufacturers would have a much

greater chance of maintaining service revenue and a stronger

brand-building channel to drive repeat sales. And that

always-on connectivity can help automakers notify drivers

about recalls and address security threats more effectively

by issuing over-the-air software updates to critical systems.

Not too late for older models

The number of new vehicles shipping with telematics systems

accounts for only a small percentage of vehicles on the road

today. For vehicles that predate the connected car revolution,

CSC offers hardware, services and an online platform that can

collect and report performance data from a car’s controller

area network (CAN) bus port, used for diagnostics.

Data is displayed in a dashboard on a variety of mobile

devices for the driver, owner or fleet manager, as well as the

manufacturer. “Car makers, rental agencies and enterprise fleet

managers have the opportunity to bring millions of vehicles

online,” Fangmann says.

Despite the challenges in ramping up quickly, automakers

need to continue to push ahead with connected capabilities,

as competitors who already understand the value of large

data pools are nipping at their heels. A few well-known Silicon

Valley enterprises with large connected customer bases, such

as Google, have been experimenting with their own mobility

services and connection technologies.

“These companies are making rapid

progress, and they’ve already connected

customers,” Fangmann says. “This could

allow them to become the owners of the

connected car space before manufacturers

realize they’ve been overtaken.”

DALE COYNER is a writer with CSC’s

digital marketing team.

10 CSC WORLD | NOVEMBER 2015


Q&A

Under the Hood with Ford

Roopak Verma

— Ford CIO,

Europe, the Middle East

and Africa

Ford Motor Company was among the first in the industry

to offer connected car services through the driver’s cell

phone. This year, all new models released by Ford in

North America have a built-in modem for connectivity,

with European cars to follow in 2016. For more on the

key considerations raised by connected cars, CSC World

recently spoke with Roopak Verma, Ford’s CIO for the

Europe, Middle East and Africa region.

How is Ford helping to secure the connected car?

How can OEMs work together to address this threat?

Recent security demonstrations [see sidebar, page 10]

have really prompted all of the OEMs to take a hard look at

vehicle security. We have the capability today to remotely

unlock a vehicle, and if someone can hack into it, that’s

the first thing he or she will do. If someone can control the

functionality of the vehicle remotely, that’s dangerous.

What role is data analytics playing at Ford in supporting

automotive sales, production and services?

Data analytics and intelligence can give us a single, integrated

view of people who are researching a car on the Web, linking

them with the people who may come in and visit the dealer,

and linking them with the people who might actually buy a

car and then come back to Ford for the servicing. It can help

us change the whole marketing paradigm.

It’s also going to help us make a connection with the

customer to design the next-generation car. We won’t

need hundreds of hours of research to find out where

the next trends in car designs are going. We’ll be talking

to our customers.

Organizations are under constant pressure to step up their

rate of innovation. How are you nurturing innovation at Ford?

A Fusion Hybrid, for example, is generating 25 gigabytes

of data per hour. A hacker would love to get access to the

functionality of the car, your location data, your contact

data, even your credit card data. At Ford, we realize you

have to have the fundamental security architecture built

into the vehicle. The architecture that controls the vehicle

functionality needs to be isolated from the connected

vehicle architecture, and you need encryption between

every component.

One of the things we’ve been doing in Europe is looking

for a way to really democratize innovation. What we used

to always see is that you could come up with a great idea,

it worked well, but there was always a challenge in the

implementation and getting the business value out of it.

So we started the Ford Innovation Challenge. The idea is

that anybody in Ford with an innovative idea can put it

forward. We opened it for 2 weeks and we had 415 ideas.

Everybody’s facing a common challenge. A lot of the safety

features we expect are going to require vehicles to talk to

each other, so if a Ford car is not talking to a GM car, it’s not

going to know the car is stopped ahead just around a blind

curve. That type of connectivity is going to require us to work

together on the protocols and the security architecture.

We had a semifinal event to select the top 12 ideas, and now

the business owns these ideas, and we are going to provide

them time, funding and resources to take them forward.

Then we’ll come back in January and see who has been

able to make enough progress so that they can become

part of our business plan. It’s exciting.

NOVEMBER 2015 | CSC WORLD

11


LIFE SCIENCES

5 THINGS CIOs NEED TO KNOW

ABOUT CAPITAL-EFFICIENT

INNOVATION

by Steve Andrade

Changing market dynamics are forcing

companies to innovate to grow while

reducing costs, so life sciences companies

need to adopt a Capital-Efficient

Innovation approach. Here are five areas

where CIOs should focus their attention.

1. Capital-Efficient Innovation is about agility

To drive innovation, you need to have the elasticity within

your infrastructure to support existing and new business

objectives. Agility means putting the right platform, processes

and discipline in place to be able to quickly respond to market

opportunities, regulatory challenges, changes in the supply

chain, and so forth. Flexibility is enabled via an IT platform

through which you can embrace and support new services,

products and capabilities.

Having an agile and consistent IT platform allows companies

to derive value from integrating systems used by different

functions in the business. So, for example, a company’s

regulatory information management (RIM) platform can be

integrated with content management solutions and master

data management activities. But to derive the greatest benefit,

the IT platform needs to be easy to use, so you need to build

the right platform to enable agility.

One way to achieve platform simplicity is through a trusted

cloud service, which opens up the opportunity to build a

more agile and interconnected architecture. Adopting cloud is

beneficial at both economic and business-value levels, because

it reduces the cost of infrastructure while accelerating time to

market by making it easier to deliver services in a consistent

and repeatable way.

In addition, as CIOs increasingly focus on what systems and

processes they need to run the business, an agile IT platform,

enabled through the cloud, creates an environment for lowcost

prototyping of alternative solutions, allowing ongoing

innovation without additional cost.

12 CSC WORLD | NOVEMBER 2015


2. Capital-Efficient Innovation is about compliance and security

Progressive CIOs need to drive toward architectural simplicity

to improve regulatory compliance. While companies

understand that RIM is integral to managing the regulatory

submission process, for RIM to provide the level of compliance

and business value that the enterprise requires, regulatory

rich information should be leveraged more extensively

across the organization and supported by a more agile

and integrated platform.

The broader benefit of an integrated approach to compliance

is that it helps you bring products to market faster, and enables

a smarter and lower-cost way of managing regulated activities.

The challenge in most organizations is that data is dispersed

across numerous legacy systems that run globally within a

complicated and outdated IT architecture.

In addition, you need to ensure a clear, streamlined security

strategy to protect the enterprise’s assets and minimize

the risk — and cost — of security breaches.

CIOs are tasked with helping achieve these goals without

additional cost burdens to the business, and with the right

infrastructure it’s now easier and less resource-intensive

to make use of capabilities such as radio-frequency

identification (RFID), data leakage protection, identity

and access management, application security, network

security, and single sign-on.

3. Capital-Efficient Innovation is about governance and

portfolio management

As organizations have moved away from vertical integration to

orchestrating a complex network of suppliers and partners, it

has become even more important to have a clear governance

and portfolio management structure in place. To manage those

many relationships and activities effectively and efficiently, you

need to be able to ensure that every relationship is governed

in a structured and repeatable way.

Governance also encompasses portfolio management; an

efficient governance structure allows you to look at the cost

base around your portfolio of activities and determine the

most efficient way to manage those activities.

acquisitions, divestments, and the increasing dependence on

external partners. But to make best use of the global skills and

knowledge these new or supplemental team members and

partners bring, you need to become more comfortable leading

and working with co-located and distributed teams across

the globe and across organizations.

To make best use of talent, you need to put in place processes

that enable you to identify and source the right skills, both

inside and outside the business, not just at an operational level

but also at a strategic level. At the same time, you need to seek

out the right resources to help your company develop and train

its own people in order to respond to rapidly changing market

dynamics and trends.

5. Capital-Efficient Innovation is about collaboration

At all levels — R&D, clinical, infrastructure and supply chain —

life sciences companies are collaborating with many different

stakeholders, both internally beyond their functional walls and

outside the organization with business partners. The need to

innovate at an R&D level has led once-insular companies to

work with academic institutions, start-ups, biotechs,

technology companies and former competitors.

Collaboration means that you need to be able to share

information and intellectual property securely, through flexible

cloud-based or as-a-service platforms that can be scaled up

during the collaborative process, allowing rules-based access,

and scaled down when not required, without residual cost.

It’s about having an agile platform that lets the enterprise

work across multiple clouds and organizations, and securely

access different applications, as well as the information within

those applications. Mobility is also an important enabler

of collaboration, because today’s workforce not only is

geographically spread out, but increasingly needs access

to information while working beyond the corporate walls.

Connecting the dots

Capital-Efficient Innovation responds to the industry’s dual

challenge of innovating to grow while reducing costs. And

the industry is trying to achieve this while staying true to its

purpose: bringing life-saving products to market faster for

patients across the globe.

The question becomes, are the tools and processes in place

to activate and manage governance and the portfolio, in order

to work more efficiently? Companies can’t govern without

portfolio management, without effective supplier management,

or without adopting architectural simplicity. This is relevant

across all functions within the business: Without architectural

simplicity, businesses can’t optimize the supply chain or

enhance how they collaborate with R&D partners, or

manage global regulatory information.

As CIOs increasingly take the lead in delivering the innovation

needed to enable the objectives set out by the stakeholders,

their priority must become to create a business model that

best optimizes the value chain to meet the needs of the

patient through Capital-Efficient Innovation.

STEVE ANDRADE is vice president and general manager

of life sciences at CSC.

4. Capital-Efficient Innovation is about talent optimization

Today’s life sciences organizations face ongoing

transformation, in particular as a result of mergers and

Learn more about Capital-Efficient Innovation in

life sciences at csc.com/CEI.

NOVEMBER 2015 | CSC WORLD

13


LIFE SCIENCES

THE QUESTIONS LIFE SCIENCES FIRMS

ASK ABOUT

CLOUD

by Dawn Waite

14 CSC WORLD | NOVEMBER 2015


As life sciences companies come under

pressure to cut costs and simplify how

data is shared, they are seeing the cloud

as an opportunity to manage enterprisewide

information. The industry, however,

has been reluctant to move to the cloud,

for both IT and business reasons.

There are benefits to both sides of the enterprise in moving to

the cloud. The business case is well understood: having clear,

consistent information available in a way that simplifies data

exchange. For IT, it means removing day-to-day management

of solution tool sets, allowing IT to focus on other valuable

tasks, such as delivering desktop consistency to the users.

That’s not to say companies should rush blindly into the cloud;

there are some important issues to address first. Here are

two common questions companies have when considering

a cloud solution.

How will validation and compliance be handled?

Compliance is almost always one of the top concerns for life

sciences companies. Invariably, life sciences business and IT

leaders want to know how, given the regulated nature of the

industry, they can move to the cloud comfortably and ensure

they are compliant. This is a valid question. While there are no

formal FDA guidelines on cloud, companies should adhere to

21 Code of Federal Regulations (CFR) Part 11 requirements and

ensure that both qualification and validation are of the highest

standards, such as with a GAMP 5 approach.

You need to qualify your infrastructure to ensure it’s doing

what it says it is. So the question is: Does your vendor have

a process in place to be able to handle that compliance? Are

there clear documented processes and deliverables for system

validation and infrastructure qualification? While most people

are aware of this necessity, companies are often nervous

about handing off responsibility for the infrastructure piece

to a cloud vendor. And it’s fair to say that not all cloud

vendors understand it.

You might be attracted to what appear to be quick and easy

cloud solutions. However, if there aren’t the necessary

processes and documentation to support the whole

qualification and validation process, this puts you at

risk, since your regulatory solutions will be sitting on

infrastructure that could potentially fail an audit.

meet compliance requirements. My advice to clients is that

whenever there is a formal change control, a process should

be followed with an assessment of whether that change needs

to go through any sort of validation. That way, if an audit takes

place, you’re assured of being completely compliant.

When entering a cloud contract, it is the client that needs to

ensure that the vendor can demonstrate they have an effective

process; hence, regular audits will be required. It will also need

to be established whether this will require additional costs or

whether an audit process is included in the service. What I

recommend to clients is to determine what your vendor offers

in terms of handling annual audits, as well as whether they

engage independent auditors to assess their data centers.

What happens if I want to move my system?

One issue I consider to be crucial, but that people don’t

always think about, is disentanglement. Let’s face it: In today’s

businesses, things change, and you should be prepared for all

eventualities. The problem is, if this isn’t part of an agreement

with your vendor, you could end up unable to extricate

yourself, or you might be unable to get your data out. In

that case, you might be forced to undertake a manual

process to get your data out, which is extremely costly.

When you are looking to move to the cloud or an IT managed

service environment, it’s important to understand that things

can change. To use a specific example, recently a client went

through an acquisition, and the decision was made to go to

an on-premises solution. As it happened, both the companies

were CSC clients, but one had an on-premises solution and the

other had a cloud solution. Because we have agile systems and

processes in place, the job of moving data to an on-premises

solution was quick and straightforward. But that wouldn’t

necessarily be the case with every cloud vendor.

The approach we recommend is inclusion of a Provision of

Disentanglement. That’s a framework of “what happens if,” and

it defines where the responsibilities lie, what the vendor would

need to do to extract a client’s data, who needs to be involved,

and what the timescale is. While this can’t be definitively

stated, simply because you don’t have that information in

advance, you should find out what the options are, the types

of personnel that would be needed, and the likely daily rate

involved. It’s really about having an understanding of what

needs to happen to get your data out, and most importantly,

that you can get your data out.

DAWN WAITE is manager, Life Sciences in the Cloud, CSC.

Other considerations include processes concerning change

management. While the system might be set up in a compliant

solution to begin with, if you’re in the cloud, you need that

compliance to be maintained throughout the system’s life,

and if anything changes, you need to ensure those changes

Learn more at csc.com/life_sciences.

Waite will continue her look at cloud considerations

in CSC’s life sciences blog at blogs.csc.com/category/

life-sciences.

NOVEMBER 2015 | CSC WORLD

15


HEALTHCARE

THE FULL POTENTIAL

OF HEALTHCARE IT

REACHING

by Lisa Pettigrew

Does your

bimodal strategy

stack up against the

CSC Hierarchy of

Healthcare IT?

Healthcare organizations are under intense pressure to shift

their organizations faster than ever. It’s imperative that they

invest in their digital futures to prepare for new models of

care, new patient-centric engagement frameworks, and

the new technologies expected by clinicians, caregivers,

consumers and payers. But how can they do this while also

maintaining legacy operating systems, existing models of care,

and traditional reimbursement and funding arrangements?

Healthcare CIOs can be crucial in helping organizations

navigate this bimodal challenge.

As the healthcare industry undergoes widespread disruption,

CIOs might do well to take a second look at Maslow’s classic

theory on the hierarchy of needs. According to this theory,

self-actualization, or the fulfillment of potential, is the

highest level of psychological development — but it can be

achieved only after all basic needs have first been met. For

the healthcare industry, the ultimate objective — a focus on

patient-centered care, care management and population

health — can be achieved only when the potential of digital

technology has been fully realized.

To support the dialogue about digital technologies among

CIOs, physicians and healthcare business leaders, we’ve

created the CSC Hierarchy of Healthcare IT. This hierarchy

can help organizations understand the right approach

for their bimodal strategy.

Population Health

Enablement

eHealth

Optimization

Agile IT

as a Service

CSC Hierarchy of Healthcare IT

Patient

Engagement

Care Management

Population Health Management

Health Information Exchange

EMRs/EHRs

Core Financial & Administrative Systems

Infrastructure

Start with the basics

The basic layers in healthcare IT — which correspond to

Maslow’s basic needs of shelter, food and water — represent

all the infrastructure and corporate back-office systems

necessary for a healthcare organization to exist. These include

networks, WiFi, storage and compute power, cybersecurity,

identity and access tools, operating systems, as well as

financial, payroll, administrative and logistics applications.

In healthcare, these technology services together serve as the

crucial infrastructure that no one sees, yet everyone relies on

to do their jobs effectively. These functions can be effectively

managed with CSC’s Agile IT as a Service solution.

16 CSC WORLD | NOVEMBER 2015


Work with the middle layers

The middle layers include Health Information Exchanges

(HIEs), which securely exchange health information across

settings and among stakeholders, as well as the core

electronic health records (EHRs) that physicians typically

associate with IT. EHRs include all the clinical data, tests and

orders, pathology, radiology, surgical and procedural notes,

and patient information. The technology here serves as the

physician’s core working system.

These middle layers, which support eHealth Optimization,

are highly visible to physicians, nurses and clinical workforces,

yet are not typically seen or accessed by patients.

Use digital technologies to support patient care and more

At the peak of the hierarchy, we reach the ultimate objective

of Population Health Enablement, where we focus on using

digital technologies to support patient-centered care, care

management and population health. This is the area of the

hierarchy that directly engages with and is visible to patients.

This hierarchy can assist healthcare technologists and

physicians in understanding each other’s frustrations

and challenges.

For example, even after years of energy and effort, clinicians

still cite frustrations with EHRs. But it’s difficult to expect

optimal results when making investments in something

significant such as EHRs without first fortifying the foundation.

An investment in an expensive EHR is not always matched

with sufficient investment in the core infrastructure required

to support the entirely new models of care, increased data

capture obligations and workflow changes embodied in an

EHR. New smart device access needs, new WiFi requirements,

increased cybersecurity obligations from networked EHRs,

and increased storage requirements — all of these require

investment to get the most out of an EHR.

Optimize your investments

Bottom line, healthcare organizations need to optimize

investments across the hierarchy to suit the organizations’

objectives. For example, rather than continually spending

money on the same infrastructure, it’s time to embrace

innovative, agile infrastructure arrangements such as cloud

technology and service models that shrink spending at the

bottom of the pyramid to improve spending in the middle and

the top. These investments are important because the model

of care is changing as medicine itself continues to evolve. With

a bimodal approach to IT, healthcare providers can create

offerings focused on changing patient needs.

When CIOs, clinicians and patients understand how

interrelated their needs are in the hierarchy, this can ultimately

help bring stakeholders together to customize, optimize and

maximize investments.

Disruption Hits Health Insurance Market

Progressive CIOs use the opportunity for

digital transformation.

Health insurance is going through a significant evolution.

Consumers have increasing choice, and insurers are looking

for ways to engage differently and meaningfully with

their members. Insurers no longer want to consider their

members as part of a large, faceless risk pool, but rather

see them as consumers trying to navigate the complex

healthcare delivery marketplace. Insurers are aiming to

reduce costs and improve coordination with providers as

the industry moves toward member-centric models.

New, well-funded digital health insurance companies

such as Oscar are shaking up the market with digital

engagement models and low overhead costs. What

can incumbent health insurers do to survive? Using

new digital technologies to their full potential — and

embracing the use of analytics — could be the answer.

Incumbent insurers have the advantage of the insights

they can draw from their massive stores of data — that

is, if they can liberate their data from functionally

isolated silos often housed in legacy applications

and managed with old-world technologies. There is a

pressing need for incumbents to invest in data analytics

to leverage value and insight from existing data stores

and ingest new data to enable more compelling

interactions with members.

Through analytics, insurers can use member information

to predict what might happen next in the patient

journey; hence, payers and their provider networks

can start to offer alternative care models to minimize

expensive medical care and intervention, and help

consumers take control of their own healthcare.

Ultimately there are three forms of healthcare data —

systems of record data (claims data, electronic health

records), genomic and genetic data, and patientgenerated

data (biometrics, qualitative data). Healthcare

CIOs need to ensure that they have future-proofed

strategies for all three forms of data and their linkages

so they can generate insights, develop new products and

channels, and address new models of member loyalty

and expectation.

A sound strategy for next-generation analytics could

provide just the key health insurers need to unlock the

potential of their data and fulfill their goal of providing

patient-centric service.

LISA PETTIGREW is general manager for healthcare and life

sciences in the Americas at CSC.

NOVEMBER 2015 | CSC WORLD

17


HEALTHCARE

NHS Trafford CCG

Setting a New Standard

in Patient Care Coordination

by Jim Battey

Providing a diverse range of patients with a single point of

contact for comprehensive health services, CSC is working

with Trafford Clinical Commissioning Group (CCG) in Greater

Manchester, England, on a first-of-its-kind care center. The

innovative Trafford Care Co-ordination Centre (TCCC) aims to

provide patients, families and care providers with significantly

improved patient experience and efficiency across Trafford’s

healthcare system.

A part of the National Health Service (NHS), Trafford CCG is

responsible for ensuring that health services for the people

of Trafford are provided at the right place and right time, and

that services are safe, of high quality and offer value for money.

The CCG is also part of the broader health system in Greater

Manchester, which recently became England’s first region to

have healthcare funding devolved to local government. The

CSC-Trafford CCG partnership to develop and manage the

TCCC is the first of its type in the United Kingdom.

Delivering quality and value

A contemporary challenge for Trafford CCG, as with healthcare

organizations globally, is to find new ways to deliver quality

healthcare in a coordinated, integrated manner. “Our vision

for the health economy in Trafford is to create a healthcare

system that’s proactive and high-quality, with excellent clinical

outcomes and ease of access,” says Trafford CCG Chief

Operating Officer Gina Lawrence. “This will be achieved by

designing services that are delivered in an integrated way,

so that patients can expect health and social care to work

together to offer the best possible holistic advice and support

for their needs.”

As healthcare becomes more

focused on the patient, Trafford CCG

is taking a more personal, caring approach.

Trafford CCG has already begun to build integrated

services in the community. However, Lawrence points

out, “Unless you have a coordination center, people don’t

access those services very well.”

Like clinical entities in many regions, Trafford CCG serves a

diverse population with a wide range of healthcare needs.

As the comprehensive NHS care system can be complex to

navigate, the TCCC aims to provide a complete offering that

sets a new standard for quality in care coordination.

Trafford CCG engaged CSC to co-create and co-manage the

TCCC with the goal of improving coordination and integration

across boundaries of primary, acute, community and mental

18 CSC WORLD | NOVEMBER 2015


health sectors — to deliver a significantly improved experience

for patients and care providers. “The TCCC is designed to

make getting services as simple as possible with a single

access to it, but it also helps general practitioners and acute

trusts navigate through what can be a very complex NHS

system,” Lawrence says.

A new care model

The TCCC is based on a new care model that works like an air

traffic control system, tracking patients as they move through

the system and efficiently guiding them to different services.

The patient’s journey begins with a referral from their general

practitioner (doctor). Their care pathway is then mapped

out using recognized clinical tools and protocols — such as

Map of Medicine, a clinical tool that lets physicians plan care

according to the best information available.

Each patient is assigned a designated care coordinator who

has a host of resources and interfaces available to make

practical arrangements such as booking appointments or

arranging transportation to and from a hospital. “It is very

patient-centric. The system considers the best options and the

best care for you,” Lawrence says.

The TCCC approach can evolve into a model for the provision

and management of population health, says Philippe Houssiau,

CSC’s vice president, healthcare and life sciences, UK.

The TCCC model, for example, serves as an excellent means

for establishing care pathways for diabetes management.

“By keeping those patients in the preclinical stages of their

lives, [we are] dramatically reducing the burden of the

healthcare system and dramatically increasing the quality

of their life,” Houssiau says.

Houssiau adds that he sees the TCCC model expanding

well beyond Trafford. “We will be delivering high-quality,

value-for-money services which could lead the way for how

care is delivered across England,” he says. “This is a really

phenomenal opportunity for co-creation, not just at a regional

or a country level, but to have a dynamic global activity

going, taking place around one common point of view of

changing care models globally.”

JIM BATTEY is a writer with CSC’s digital marketing team.

Continuous tracking of patients allows Trafford CCG to

understand what kind of services patients access and what

kind of services they need to access, “which really helps us to

manage our budgets and commissioning correctly,” Lawrence

continues. “We call that ‘intelligent commissioning,’ and we

believe that’s the way forward for CCGs in the future.”

Services range from initial patient communications via a

unified communications system, to clinical workflow based on

a catalog of services, to back-end analysis of the effectiveness

and efficiency of care delivery. CSC is also providing innovative

business process services and working with partners to deliver

clinical services.

Family-friendly approach

Dr. Nigel Guest, chief clinical officer at Trafford CCG, notes that

healthcare services are shifting to delivering care at the most

efficient location. “We should center services for patients around

them, providing the services preferably out in the community, not

in hospital, unless that’s absolutely necessary,” he says.

As part of the innovative TCCC model, the patient and family’s

situation and transportation needs are taken into consideration

when making care decisions. Guest says the service can evaluate

factors such as, “Is there an appropriate time for them, and how

will that work with the members of their family? It’s very much

more about coordination, and not just coordination for the

patients, but for the family as well.”

Client: NHS Trafford Clinical Commissioning Group

Challenge:

• Deliver high-quality healthcare to more than

220,000 citizens of Trafford, England

• Provide patients with simplified services,

beginning with a single point of contact

• Create an integrated solution that involves

patients, their families and care providers

Solution:

• Form a unique, first-of-its-kind partnership

between CSC and Trafford CCG

• Develop an innovative Patient Care

Co-ordination Centre

• Direct patients, their families and care providers

to relevant services through defined clinical

pathways

Results:

• Improved patient experience and enhanced

system efficiency

• Better coordination of services across primary,

secondary and tertiary care settings

• Cost savings, reduced bureaucracy and improved

value for money

In the new model, another key aspect is streamlining the

system so that the amount of bureaucracy and paperwork is

reduced. Guest says that by making the system more efficient,

“We’ll derive cost benefits from it, and we can invest further

into integrated care.”

NOVEMBER 2015 | CSC WORLD

19


INSURANCE

IMPROVING

SPEED TO MARKET

Six Strategies for

Achieving Better

Speed to Market

in a Consumer-

Driven Insurance

Environment

What does speed to market mean in today’s world? For

insurers today, the concept of speed to market has come to

represent more than just how quickly they can develop a

product. To succeed going forward, insurers need to define

speed to market in broader terms — ones that encompass:

• Product development

• Geographic expansion

• Distribution channel diversification

• Customer service (perhaps most important of all)

In today’s consumer-driven marketplace, insurance companies

must fundamentally change how they differentiate themselves.

In the past, insurance companies used product features to

differentiate themselves. Now, having too many features

can be a liability.

Consumers expect to quickly understand the products and

features available to them. Once they make a choice, they

expect to initiate and complete an insurance purchase in a

matter of minutes, especially when interacting in an online or

mobile environment.

To offer customers and potential customers that kind of

experience, insurers need products in their portfolios that are

intuitive — quickly understood at the point of sale — and simple —

enabling an automated underwriting and issuance process.

With the complex products of the past now difficult to market,

distribute and underwrite, insurers can no longer rely on

uniqueness for market differentiation. Products must go beyond

the basics of indemnification to deliver continuous value.

This is at the heart of speed to market’s evolution. As the very

idea of the product has expanded, so too must the concept of

how an insurer can speed that product’s delivery to market and,

later in the process, accelerate rate refreshes and other

adjustments. For an insurance professional, there are more

ways than ever to improve speed to market — and offer

better speed to value.

20 CSC WORLD | NOVEMBER 2015


Here are six strategies insurers can leverage:

1. Empower the product owner

Successful product development requires both speed and the

ability to tailor a product to the right market segments. The

inability to accomplish these two tasks concurrently leaves

most insurers with no choice but to follow, rather than innovate,

as they attempt to grow geographically or break into new

distribution channels.

From this perspective, speed to market and product

configuration are inextricably linked. So improving speed to

market is an exercise in limiting IT involvement in the product

configuration process.

This can be accomplished by externalizing rules and calculations

from administration systems. By empowering the business

owner with as much control as possible over product configuration,

insurers can reduce reliance on IT and make it easier to

quickly tailor products for particular market segments.

2. Embrace an as-a-service mentality

Often, the biggest drag on speed to market is the upfront time

associated with establishing and customizing a system for

practical use. As-a-service solutions, by their very nature, do not

require the kinds of large upfront investments that often cause

those delays.

4. Introduce Lean start-up principles

The advantages of an as-a-service approach are increased if an

insurer introduces cultural and strategic changes that complement

it. With an eye on maximizing returns with minimal risk,

Lean start-up theory suggests going to market with a minimum

viable product (MVP) that has no more than the core features

necessary for deployment, then iterating until the product finds

a foothold in the market, or becomes unviable.

When applied to the insurance industry, this strategy allows

a carrier to quickly test if there is an appetite for a product —

without incurring the large expenses associated with a full

product launch. For new products, this limits exposure and lets

an insurer test more products in a shorter period of time —

increasing the chances that a new product will be successfully

introduced. Beyond that, it also establishes a culture and a

set of business processes optimized to quickly and effectively

respond to customer needs. Then the existing product can be

fined tuned, accordingly.

5. Leverage partnerships

Many insurers make the mistake of only looking internally for

reuse opportunities. Now more than ever, however, insurers

can leverage the institutional knowledge of their partners to

improve speed to market — through business process

improvement and a more componentized approach to product

life-cycle management.

Insurers can shave months off of the typical implementation

timeline associated with more traditional, labor-intensive

approaches — by exploring a combination of Infrastructure as

a Service, Platform as a Service and Software as a Service

solutions available in the marketplace. By leveraging the right

mix of these managed services, insurers can transform their

go-to-market strategy and free themselves to seize emerging

market opportunities.

3. Consider human capital as part of your managed services

Deploying a full BPO solution represents perhaps the highest

order of managed services, encapsulating all the benefits of

other as-a-service solutions, but with the addition of human

capital. That’s no small difference. In many ways, insurance is a

unique and complex industry: It can be difficult to quickly find

or develop workers who understand the business.

CSC’s Global Insurance Centers, for example, support

approximately $7.6 billion in premiums with a technologyenabled

BPS framework. A pre-built, insurance-centric BPS

framework enables a CSC client to immediately “reuse” an

extensive inventory of best practices and business guidelines,

without having to acquire or develop the necessary institutional

knowledge internally.

6. See the forest, not just the trees

New products, applications and services can often be developed

and run more quickly using new methodologies and platforms.

However, no single product, application or service within an

insurance company runs in a vacuum. To achieve true speed to

value, an insurer must take advantage of new technologies

within the context of their legacy environment, which can still

provide a lot of value.

Effective use of business process services (BPS) couples

industry-experienced service professionals with advanced

technology to provide a continuum of service options, from

standardized to highly customized. This approach gives

companies of all sizes the ability to quickly access the same

robust functions used by the industry’s top tier insurers.

To accomplish this, it is important to focus on integration

and the entire product life cycle as a whole, rather than its

discrete parts.

Software is important. Infrastructure is important. Ultimate

success today, however, is predicated on the shift to an outsidein

business and technology environment. By focusing on the

entire product life cycle, insurers can ensure they are absolutely

committed to understanding their own products through the

eyes of the consumer.

NOVEMBER 2015 | CSC WORLD

21


INSURANCE

Demographic behavior has shifted, and many consumers who

are not digital natives are beginning to behave as if they were.

Consumers of all ages are becoming more comfortable not only

with tablets and smartphones, but with electronic transactions

in general. They seek out new apps, new ideas and new

experiences that can help them make healthier choices and

work more effectively. And, in many ways, they’re finding what

they’re looking for. Big data, cloud computing, mobility, social

networking and the “Internet of Things” (IoT) have converged

to enable a new digital economy that places greater value on

the needs of these consumers.

In the not-so-distant future, the insurance marketplace will

exist largely within this digital economy. Insurance companies,

with their policy-centric approach and siloed operations, are

ill suited to compete in this new reality. They need to embrace

the concept of digital insurance and take action, or risk being

marginalized. A digital insurer should offer a richer set of datadriven,

customer-facing services, enabled by:

by Brian Wallace

• A customer-centric approach to doing business

• An omnichannel buying journey that augments traditional

channels with robust self-service options, direct purchasing

and a single customer experience across online, mobile

and social channels

• The ability to leverage data and analytics across the value

chain, including product innovation, marketing and sales,

new business, servicing, claims and operations

• Straight-through processing (STP) made possible through

simplified products, automated underwriting for new

business, first notice of loss (FNOL) automation and

self-service options for claims

Data as the new differentiator

Perhaps the most significant implication of this new digital

reality is the increasing importance of data. In this new

landscape, data will emerge as the digital insurer’s primary

competitive weapon.

DIGITAL INSURANCE:

HOW TO COMPETE

IN THE NEW DIGITAL

ECONOMY

The traditional insurance company

is set up to best serve a type of

customer that, in the very near

future, may no longer exist.

Insurers have traditionally competed on product features,

where uniqueness sets a product apart. In today’s consumerdriven

marketplace, however, an excessive feature set can be a

detriment. A truly digital customer experience requires products

that are easy to comprehend and simple enough to enable

e-applications, automated underwriting and direct issuance —

all to deliver the instant gratification consumers now expect.

Unable to differentiate solely on uniqueness, a digital insurer

will instead seek to differentiate based on added value. Such

a shift will require insurers to reconsider how they design

new products, go to market, and interface with agents

and customers.

Data becomes increasingly important because digital insurance

is not about dictating an experience to customers, but about

anticipating the customers’ needs and providing them with the

experience and value they want, when they want it. To increase

relevance, insurers need to offer real value-added services that

are fueled by data and analytics.

22 CSC WORLD | NOVEMBER 2015


This is crucial as digital insurers shift from an indemnificationbased

value proposition to one of continuous value. The concept

of a core protection product has largely become commoditized,

which has in turn lowered the barrier to entry for new competitors.

Leveraged correctly, new sources of data will enable insurers

to provide customers with useful information, opportunities and

solutions. This kind of consistent customer engagement goes a

long way toward warding off competitive threats.

Use more data, better data, new tools

Insurers aren’t starting from scratch when it comes to data and

analytics sophistication. Instead, this is a matter of insurers

equipping themselves with more data, better data and new

tools to accept, manage and analyze it. It’s about taking a core

competency the insurance industry already has and applying it

to every element of the insurance value chain.

Insurers maintain a competitive advantage in the risk

management game only if they control, or at least have access

to, the most insightful types of data. Previously, the best data

was proxy data — where data about one thing (your credit

score, your age, your gender) provides insight into another (your

driving habits). Now, however, new sources of true behavioral

data can get right to the heart of the matter. A car manufacturer,

for example, might have telematics data that’s more valuable

than credit scores to underwriting car insurance.

Accepting the value of this kind of data conceptually is one

thing. Accepting it technologically is another. Often delivered

in real time, by the terabyte and in unstructured form, it’s a

significant departure from the more static, structured data

insurers largely work with today. Handling it requires an insurer

to develop an entirely new set of digital skills.

Become a master of consumption, understanding and engagement

To wield data as a competitive weapon, an insurer needs to

master three core competencies — consumption, understanding

and engagement. Mastering these skills will separate truly digital

insurers from the rest.

Master of consumption. A master of consumption embraces the

service-enabled enterprise and the API economy. This is about

an enterprise getting better at both consuming and becoming

more consumable, developing a true omnichannel experience for

customers, agents, brokers and even internal stakeholders.

• Business: Focus on making the company easier to do business

with. Envision a customer’s buying journey that spans

channels — education on the Web, specific questions asked

through a call center, a Web chat or maybe a call to a broker.

• Technology: Move away from an in-house mentality and

embrace external infrastructure, cloud computing, as-aservice

options and mobility. Implement an IT-centric set

of initiatives to make the enterprise more open and agile.

Master of understanding. Develop the capacity for meaningful

data and analytics work by implementing a big data platform.

Then, explore both what’s possible and how business value might

be generated. In other words, improve data availability and then

make that data actionable.

Think in terms of a lifetime customer relationship that begins

with brand awareness and is nurtured through an ongoing set

of positive brand experiences. Better data, from more sources,

can lead to improved underwriting and pricing, but it can also

lead to insights delivered back to customers, allowing them to

make real decisions: How can I lead a healthier lifestyle? Where

can I find the best car repair shop? How should I prepare for

approaching weather?

• Business: Determine how to effectively leverage various

streams of data from systems of record, CRM systems

and external sources.

• Technology: Go beyond existing business intelligence data

warehousing tools. Establish a consolidated and integrated

view. Procure a big data platform and the related tools and

technology. There are many choices — managed services,

in-house assembly and so forth.

Master of engagement. This final skill is about executing on the

overall strategic vision of digital insurance. Set ambitions to

move the basic value proposition from indemnification to continuous

value, and then actually become more digital.

Currently, the relationship between an insurer and a customer

lies dormant except during three basic interactions: new business

acquisition; billing and payment of premium; and claims filing and

adjudication. But what about the vast amounts of time before

and after those traditional interactions? If insurers do not attain

better relevance in this white space, some other entity will.

• Business: Determine how to continually engage with

customers on a daily, weekly or even hourly basis.

• Technology: Sustain this level of engagement by facilitating

rapid and dynamic interactions across partner ecosystems,

leveraging the API economy.

• Both a technology and business issue, mastering engagement

is about an insurer combining its newly developed

analytical capabilities with its newfound ability to interact

with customers across channels.

In the end, delivering continuous value and maintaining relevance

with customers comes down to enabling a symbiotic relationship

between insurer and insured. That’s true engagement.

A usage-based auto insurance program, for example, leverages

a single data set to both improve underwriting and provide the

driver with useful information about his or her driving habits.

A health insurer’s wellness initiative, coupled with wearable

device technology, meanwhile, leads to fewer claims paid,

reduced premiums and a healthier life for the customer.

The same information that allows insurers to better price risk

also allows customers to live safer, healthier, more productive

lives. This data is too valuable not to be used by the customer in

some way. The question is whether insurers will put themselves

in a position to provide this value to the consumer — or whether

someone else will take their place.

BRIAN WALLACE is global technologist, insurance, at CSC.

NOVEMBER 2015 | CSC WORLD

23


INSURANCE

ALL ABOUT

SCALE

by Nathan Conz

How Insurer

MEMIC Dramatically

Expanded Its Business

Over the past 20 years, Maine Employers’

Mutual Insurance Company (MEMIC) has grown

considerably — from a small, single-state insurer

to one licensed in 47 jurisdictions across the

country, with offices in eight states and assets

of more than $1 billion.

In 2013, MEMIC grew group-wide premium by

nearly 15 percent and doubled its writings in

Florida, one of its newly targeted marketing

territories. In New York, meanwhile, the company

has become the state’s fastest-growing writer

of workers’ compensation insurance. CSC, which

administers all MEMIC policies outside of Maine,

has seen this growth firsthand. Last year, for

example, CSC processed six times more business

for MEMIC than it did 10 years earlier.

Karen Johnston is a 21-year veteran

of MEMIC and has spent the past

15 of those years as the insurer’s

director of underwriting operations.

Johnston recently sat down with

CSC to discuss the company’s impressive record

of sustained, intelligent growth, technology’s

role in that effort and what lies ahead for the

Portland, Maine-based mutual company.

MEMIC is relatively young for an insurance company.

How did it get started?

MEMIC was formed in 1993 after the Maine legislature reformed

its workers’ compensation laws. We serve as the guaranteed

market for Maine, but our founding board and management were

not satisfied with just acting like a state fund. They wanted us to

compete like any other private carrier, which is what we do. And

we do it well. So well, in fact, that we are the leading workers’

compensation insurer, not only in our home state but also among

the top five carriers in New England, and gaining significant

market share in territories down the Atlantic Seaboard.

24 CSC WORLD | CLIENT NOVEMBER CONFERENCE 2015

2015


We started this diversification strategy in 2000, when we opened

up a subsidiary called the MEMIC Indemnity Company. We

quickly found we were able to take our successful underwriting

discipline, outstanding safety and claims services, and expand

that into other states and other markets.

At first, we were licensed only in New Hampshire, but we spent

the next 10 years expanding MEMIC Indemnity. We now have

licenses to write workers’ compensation in 47 jurisdictions.

Efficiency has been the key to success. We couldn’t have done

it and been successful any other way than to keep everything

housed in Portland and running smoothly and efficiently.

How does MEMIC’s approach to technology speak to

those efficiency goals?

By the late 1990s we had gotten very used to being a pretty

simple technology company. We had our Maine policies and we

had an in-house policy administration system that did a solid job.

What kind of approach has MEMIC taken as it looked to grow?

We have been very specific about our growth. In Maine, as the

guaranteed market, we take any who come to us. In these other

markets though, we write what we choose. We didn’t want

to start writing just any policy that came across our desk just

because we wanted to book premium. We wanted to make sure

we were being smart. We do not sacrifice our bottom line for

top-line growth. We never have and never will.

So, as we look at potential growth areas, we do our research.

We seek out markets where we see good opportunities and

agents who we feel would be good partners. Then we capitalize

on the lessons we’ve learned in Maine by identifying the kinds of

businesses that we like to work with and that we’re successful

working with.

How was MEMIC able to expand so quickly?

One of the primary reasons we were able to do that was

because we kept all the support and operational functions here

in Portland. We hire underwriters in the territories where we want

to expand — really good people with strong backgrounds — but all

the operations work happens here. Underwriting, sales support,

accounting, billing, policy administration and processing —

everything happens in Portland. That has really helped us with

our growth, especially over the past 5 years. We were able to

maintain service and support levels for the underwriters and

grow as the business expanded.

As we started expanding, though, we had to do a lot of things

manually for the MEMIC Indemnity business because we didn’t

have the infrastructure in place. There were challenges in adding

more jurisdictions and more offices. Underwriters working in new

regions in our other offices needed to have access to all the same

systems that everyone here in Portland had access to.

We’ve had a business process outsourcing relationship with CSC

for all these years. They’ve physically been issuing our policies for

us outside of Maine. CSC has a staff of people to issue, produce

and mail out policies to our policyholders.

It’s a lot about the economy of scale. They’ve got these processes

in place for not just MEMIC, but for all their clients. Having them

perform a lot of the functions that we needed was very much

part of our success.

For example, anytime you’re adding other jurisdictions,

compliance becomes a major consideration. CSC has very strong

compliance services. They have a system built. It already exists.

They have the infrastructure and the processes in place to track

compliance issues and law changes.

If MEMIC had to do that — we have 250 employees here that run

the whole company — we would potentially need 10 to 15 people

just to keep track of every legislation or regulation change that

could happen in 47 jurisdictions.

The second reason is demand. We’ve clearly found that

there is demand in the marketplace for a carrier that offers

the specialized, high-touch service that we do. We’re not for

everyone, but there is a definite segment of the market that

can use our expertise to their great benefit.

How closely intertwined is all this with the concept of

operational efficiency?

Keeping all the “behind the scenes” operations here in Portland

was definitely the first step in acknowledging that, in order to

make this work, we have to be operating efficiently. It certainly

wouldn’t have made sense, from an operational standpoint, to

open entire offices in other states.

Part of my job, in fact, is to look at everything we do to

see if there is any improvement in efficiency that can be

made — whether it’s through technology or staffing or training

or whatever the case may be. That’s a constant process. Just

when you think you’ve got something licked, the needs change

or the system changes or a rule changes.

What does the next phase of growth look like for MEMIC?

Where do you go from here?

We have offices in Connecticut, Pennsylvania, New Jersey,

Virginia, Florida, New York and New Hampshire. So those are

really the regions where we’re focusing our efforts. We are

a national carrier and we do write national accounts, but we

have targeted those states as growth areas specifically.

So now our growth strategy becomes a question of: “Where do

we want to focus our efforts next?” CEO John Leonard has been

pretty consistent about this. He wants MEMIC to continue growing

but in the same controlled manner as in the past 15 years.

So, we’re going to do our due diligence. We’re going to do our

research and we’re going to see in which territories we think

we can be successful. We have the luxury of being able to

control that carefully.

NATHAN CONZ is a manager with CSC’s content

marketing team.

NOVEMBER 2015 | CSC WORLD

25


INSURANCE

4 FACTORS CREATING

A PERFECT STORM

IN THE INSURANCE INDUSTRY

by Phil Ratcliff

With the insurance industry’s tendency toward

hyperbole, it seems as if we are perpetually on the

verge of revolution, disruption or upheaval. I joined

the industry back in the early ’90s, when “the CRM

revolution” was being discussed as a major inflection

point. Nothing really ended up changing, and most of

the insurers that were large and successful then are

still large and successful. Today, however, four major

market forces are in play — and this time, I believe we

really are on the cusp of something substantial and

fundamental. It will change the way the entire industry

works, and may even change a lot of the players.

1

New entrants

Historically, the insurance industry has remained

relatively constant, with most companies having

been in business for a good hundred years. Recently,

however, there has been a rise in the number of new entrants

marketing, selling or servicing insurance products or

providing new capital.

Many of these new entrants are interesting organizations with

great capabilities. Google, which entered the UK market in 2011

as an insurance aggregator, is perhaps the most formidable.

The technology giant joined the emerging insurance

aggregation market, disrupting competitive market

conditions and, by some accounts, subsequently

helping lower insurance premiums by roughly

30 percent over the past 5 years. Introducing that

sort of intense price competition into an industry

that is not overly profitable to begin with, has

changed market dynamics substantially.

Other companies are also entering

the fray, including retailers

with strong brand names, and

telecommunications companies

boasting telematics capabilities.

Even car manufacturers are starting

to embed telematics capability into

vehicles and, in some cases, to sell

insurance directly.

26 CSC WORLD | NOVEMBER 2015


2

Social and economic dynamics

We’re currently in a very low interest rate period,

which is putting pressure on profitability. Insurance

is an industry that, essentially, takes in money and

invests it before subsequently paying claims. So, with lower

investment returns, there’s less profit being generated. Over

the past 30 years, many U.S.-based insurance companies

have failed to return their cost of capital.

There has also been a lot of volatility in investment returns,

especially since the financial crash of 2007 and 2008. This

market volatility makes it harder for insurers to run their

business. For example, it’s more difficult to find stable,

growing assets to match against long-term liabilities.

The most obvious societal shift in developed countries is the

retirement of baby boomers. As they retire, they are taking

money out of their accumulation products to provide ongoing

income; trillions of dollars will flow out of these products over

the next 5 to 10 years.

On the other hand, baby boomers have more wealth than

people who retired previously, and they’re also living

longer. That means they’re generating new insurance needs,

necessitating different types of insurance products —

particularly around payouts and long-term care.

Of course, there’s also growth related to Generation Y —

consumers who are unlikely to go to the local broker and have

a discussion over a cup of coffee to buy what is, in essence,

a commodity product. Instead, they want everything now,

everything mobile, everything available by text.

Meanwhile, we see most of the growth in developing countries.

A growing move toward urbanization is creating a much larger

and more affluent middle class, and these families are creating

a market for insurance products. Domestic companies are

seeing growth, but global insurers such as AXA, MAPFRE and

Prudential UK have also moved aggressively into the Asian

and Latin American markets.

3

The data revolution

Insurers have always made use of substantial amounts

of data, but how they leverage data is changing. It

used to be that if an insurer had a large volume of

risk data, it could find success by comparing, pooling and

underwriting similar risks. Now, data is everywhere, and it’s

immediately available. The whole concept of pooling risks may

end up disappearing because, in effect, the data revolution will

enable insurers to underwrite down to the individual level.

Historically, insurance has been about pricing risk. Now the

industry might be moving toward placing more value on

managing risk. For example, telematics can be leveraged

to give people driving scores — getting them to drive more

slowly, brake more effectively and corner less aggressively.

On the life side, wearable technology and analytics can create

compelling wellness programs for clients. These programs

are enabling insurers to manage the risks they are writing by

rewarding good behavior and penalizing bad.

4

The digital mandate

The convenience and efficiency of online and mobile

channels, coupled with the commoditization of the

core insurance product, has led insurance customers

to seek a new experience. The digital insurance trend, then, is

really about the way consumers will choose to interact with an

insurance company, as opposed to insurance companies trying

to dictate interactions with consumers. Insurers will need to

focus far more on the consumer as an individual. An effective

omnichannel strategy will be key, as will an insurer’s selfservice

capabilities.

The case for transformation

Together, these four factors are creating a compelling case

for digital insurance transformation. If traditional insurers

expect to remain competitive, they must become more:

• Agile, to respond to new and increasing competitive threats

• Efficient, to address profitability challenges

• Customer-centric, to respond to social changes and

increasing consumer expectations

• Advanced in terms of data and analytics, to move from merely

pricing and pooling risks to truly managing individual risks

Addressing these business imperatives will require insurers

to both transform their legacy operations and build out new

operations. Insurers need to ask themselves: How do we

reduce our “run and maintain” costs in order to build the new

capabilities necessary to stay competitive? How do we evolve

our legacy systems to support today’s digital imperatives?

How do we accept new sources of data and analyze that

data properly? And, perhaps most importantly, how do

we do it all simultaneously?

At CSC, we believe the future lies

in strong partnerships. Partners

with deep industry expertise and

knowledge of back-office systems

can help insurers move to a more

agile service-enabled environment,

bringing new capabilities while

significantly lowering costs. Insurers

can then invest more heavily in creating

the customized user experiences that will

lead to future success.

PHIL RATCLIFF is insurance industry

general manager at CSC.

NOVEMBER 2015 | CSC WORLD

27


TRANSPORTATION

Turning Anonymous Riders into

CONNECTED CONSUMERS

by Peter Krass

Scandinavia’s largest public-transportation agency replaces paper tickets

with a digital system that offers truly personalized customer service.

Getting around a big city isn’t always easy. There are routes

to determine. Connections to be made. Tickets to purchase

and, if lost or stolen, replace.

The City of Stockholm, Sweden, wanted to make getting

around easier and more efficient. It also wanted to turn its

millions of anonymous riders into personalized customers.

With CSC’s help, that’s exactly what it’s done.

Helping citizens and visitors get around the greater

Stockholm area is the job of the city’s public transit agency,

Storstockholms Lokaltrafik, better known by its initials, SL. It’s

a big job. Stockholm is not only Sweden’s capital, but also —

with some 1.4 million people — the largest city in the entire

Nordic region. Every day, SL conducts some 800,000 trips

across its 100 subway stations, 50 rail stations, 450 bus lines

and 60 boats.

Until recently, SL’s job was also unnecessarily costly, due to an

old, paper-based ticketing system. Established in the 1970s,

the system was a relic of that pre-Internet, pre-mobile era.

Tickets for all buses, trains and rail were printed at a central

location, then shipped to SL’s retail partners and stations.

If a customer lost a ticket, they had to buy another. And

when tickets were stolen en route to non-SL ticket sellers —

including selected retail stores — it was SL’s loss. Bus drivers

were also frequent crime targets, as they had to carry cash

from customers buying tickets on board.

From riders to customers

In early 2013, SL enlisted CSC and other partners to make both

the paper and smartcard tickets obsolete by converting to a

completely digital travel-card system. “We wanted to get away

from the manual handling of tickets,” says Stefan Torpman,

operational manager for e-commerce and customer service at SL.

CSC’s contribution to the SL solution is Boomerang, the

firm’s customer-relations system for public transportation.

Currently used by transit agencies in Denmark,

Norway and Sweden, CSC Boomerang

provides a 360-degree view of

customers. The software suite includes

claims management, sales, billing,

e-commerce and a customerrelationship

management (CRM)

solution. All its components

have been designed to help

public-transportation

organizations improve

customer satisfaction,

grow revenue and

add new routes

and services.

Even when everything in the process went as planned, it

could be slow. Tickets had to be manually presented to an

SL ticketing agent. The agent would inspect the ticket and

hand-stamp the slip of paper. The customer then had to

carefully retain the verified ticket for the remainder

of the journey.

So, starting in the early 2000s, SL began to augment

its paper tickets with smartcards, giving riders a new

choice. However, the new smartcard system did not

provide links to the Internet, and acceptance of

the new system was only lukewarm.

28 CSC WORLD | NOVEMBER 2015


“Everything the customer does is recorded in Boomerang,”

Torpman says. “So we can see if they buy tickets, or if they have an

open ticket with customer service. Every interaction is recorded.”

The Travel Guarantee, also enhanced by CSC Boomerang, refunds

holders of registered SL travel cards for taxi fare if their desired

bus or train runs more than 20 minutes behind schedule.

One challenge of the project was integrating CSC Boomerang

with nine back-end systems operated by SL. These included

systems for ticketing, Web hosting, billing, payment verification,

travel-card manufacturing and distribution, and route timetables.

The CSC team had to configure Boomerang to not only bind

these back-end services together, but also provide end-to-end

process support and customer self-service capabilities.

Guarantees for transit riders

Today, riders of Stockholm’s public transit can buy travel cards

from retailers and ticket kiosks located at bus and train stations,

or order them from SL’s website. Either way, there are essentially

two steps. First, the rider loads value (money) into the travel

card’s digital purse. Second, they specify what kind of ticket

they want. Tickets can be purchased for a specific trip, or for a

specified period of time, such as a day, a week or a month.

Riders who register their card can also

enjoy two powerful features. The

Loss Guarantee allows a rider to

protect the value on their travel

card if the card is lost or stolen.

With Boomerang’s help, once

a rider reports the card as

missing, SL electronically

blocks the original card

from further use, and

generates a new card,

complete with the

missing value.

SL’s job is easier, too, with a full audit trail; comprehensive

claims management for all services; a customer Web portal;

a single application programming interface (API) to use in all

presentation layers of the digital channels; and the ability to

add new services quickly and easily.

A cardless future?

Looking ahead, SL could move to a completely card-free

system. With some 5 million travel cards in circulation,

eliminating their manufacture, shipping and distribution could

substantially lower SL’s costs. “Our vision,” Torpman says, “is

that a ticket is a cloud service.”

This means that SL buses, trains and boats would always be

connected to the cloud. That way, instead of presenting a travel

card, a rider would simply identify themselves, perhaps with

their smartphone. The onboard system would then connect via

the cloud to a back-end ticketing system that would search

the rider’s file to determine how much value they had in their

account and which tickets they currently hold.

It’s a vision that Torpman admits is probably years away. But

getting from Point A to Point B? That’s something SL — with

help from CSC — has gotten pretty good at. “CSC is very

solutions-oriented,” Torpman says. “They’re quite driven.”

PETER KRASS is a writer with CSC’s digital marketing team.

Client: Storstockholms Lokaltrafik

(Stockholm Public Transit)

Challenge:

• Replace costly, insecure paper-ticketing system

• Dramatically improve customer service

• Modernize the IT infrastructure with

Web services

Solution:

• Boomerang, CSC’s customer engagement

management platform

• Integration of nine legacy systems

• End-to-end process for customer self-service

Results:

• Paper tickets phased out; 5 million digital travel

cards issued

• Website lets customers load value from credit

cards to travel cards

• Auto top-up feature added so travel cards need

never run out of value

• Claim and dispute-management features

implemented

NOVEMBER 2015 | CSC WORLD

29


MANUFACTURING

REINVESTING

IN THE RIGHT STUFF

FOR AEROSPACE AND DEFENSE

by Roblyn Theodorou

SURVEY:

A&D Execs Want Product Innovation — and Lower Costs

Since we first conducted the Aerospace & Defense Market

Survey in 2000, the industry has seen some turbulent times:

post-September 11, 2001, impacts on both the commercial and

defense sectors, the global recession, budget sequestration,

and new competitors entering the marketplace. Meanwhile,

technology change has been rampant, with the emergence of

integrated sensors, unmanned aerial vehicles (UAVs), mobile

apps and WiFi — to name just a few.

The most recent survey depicts a tale of two industries. The

commercial sector is seeing steady demand for new aircraft,

while the government sector is still wracked by uncertainty

over defense spending (50 percent of respondents reported

that they declined to bid on defense projects).

Growth vs. costs

The survey, sponsored jointly by CSC and the Aerospace

Industries Association (AIA), takes the pulse of approximately

100 executives and senior leaders at global aerospace and

defense (A&D) companies. This year, the industry’s top business

priorities were aimed at growth — improving product innovation

and upselling and cross-selling more to the customer base —

and expense reduction through improved

internal efficiencies and lower costs.

A&D companies have just come through a period of

unprecedented cuts, so why are they still focused on

costs? How can you invest in research and development

(R&D) and innovation while you’re still in costcontainment

mode? The answer is twofold.

First, organizations are already making more

targeted investments in R&D. The danger is that

with fewer new programs coming along and

traditional A&D players struggling to replace

their graying workforce, the R&D function

will erode and create openings for

emerging competitors in China,

Russia and elsewhere.

Second, these legacy players in A&D

are behind the modernization curve.

They face fundamental challenges

with legacy costs associated with

hardware, maintenance and

support, as well as a lack of

agility that puts a drag on

operations.

64.5%

of respondents blamed

“federal budget uncertainty”

for decreased R&D spending

Top 3 Defense Projects:

• Cybersecurity

• UAVs

• Electronic warfare

29% in

of respondents spent at least

25% more on cybersecurity

the past year

30 CSC WORLD | NOVEMBER 2015


Building the case for modernization

The good news is that through modernization, companies are

seeing significant savings and reinvesting in the business to

support innovation.

The first step toward modernization is to address the core

applications supporting production, supply chains and product

development. Some of our clients have critical pieces of their

build process that are written in COBOL from the 1970s. The

challenge is building a business case for code refactoring

or system replacement. For some production-related

applications, it’s akin to changing the wheels on a moving car.

The industry has been putting this off for some time, but now

companies have to address modernization to keep up with

emerging competitors that aren’t saddled with legacy systems.

Shifting from COBOL to Java offers more than just a

technological advantage: It frees organizations to run

applications on lower-cost platforms or move them to a private

cloud or hybrid cloud environment. Suddenly, you’ve shifted

your business model to IT as a Service, and your costs are based

on demand, rather than on maximum capacity. Need a new

environment to support a new program? You can spin it up in a

few minutes with appropriate security — compared to weeks

or even months in a traditional data center. This year’s

survey cited the cloud as a priority for modernization

(41%), but nearly one-fourth (24.6%) said there are

still too many barriers to cloud adoption.

Predictive and proactive steps

The next big factor affecting both

innovation and costs is the data itself.

A&D companies collect a huge amount

of data about products, production,

maintenance, supply chains and

more, but they’re really only just

now tapping into what that data

can do for them. Consider the

issue of product quality. Most

companies spend a great deal

of time on manual inspection

and generate large numbers

of scrap components,

which can be a huge

expense if you’re talking

about an airfoil or a

turbine fan blade.

Predictive analytics

streamlines the

inspection process

by using data to

identify quality

issues and

ultimately

reduce scrap.

Top 3 Modernization Strategies:

• Application modernization

• IT infrastructure modernization

• Improved integration and data sharing

The industry can move to a more proactive model by applying

predictive analytics to the data it already has related to

production-to-spec measurements, machine tool wear,

temperature, humidity, product performance, supplier data and

more. Predictive analytics — as well as basic insights and data

sharing — can benefit every part of the business, from production

to product engineering to aftersales services. Coupled with the

Internet of Things and cybersecurity controls, this level of digital

transformation can really help A&D companies differentiate

themselves in the market.

In many ways, the step-change improvement that big data

affords is analogous to the dramatic improvements brought

about by the move from manned assembly lines to automated

lines staffed by robots. As today’s smart machines near the

intelligence of a human operator, they are able to address

issues, make decisions and use data in ways that accelerate

production as never before. We’re at the early stages, but 10

years from now we’ll ask: How did we do it when machines

couldn’t interpret data to accelerate production?

Competing with Google and Facebook

Finally, this year’s survey shows that the industry needs to change

its relationship with its employees. A good example is the bringyour-own-device

(BYOD) trend. Survey respondents clearly still

struggle with balancing BYOD with security, with 41 percent

requiring separation between work and personal devices. But

to attract and retain a new generation of workers skilled in

science, technology, engineering and mathematics (STEM),

organizations must find a way to accommodate more flexibility.

College graduates today have lived their adult lives in a

connected world. They’re setting their sights on technology

firms such as Google, so the byzantine rules in place at many

A&D firms are completely foreign to them. Many organizations

tend to view security as either black or white. The reality is

that there’s a lot of gray out there already, and firms must find

a way to balance demands for access and control, to create

an environment that enables employees rather than restricts

them — while also protecting the enterprise.

Can A&D companies increase innovation and lower costs?

We’ve seen the industry overcome incredible challenges

before. With the right investments, it can happen again.

ROBLYN THEODOROU is industry general manager for

manufacturing in the Americas at CSC.

A version of this article originally appeared in CIOReview

magazine, and it is reprinted here with permission.

Get the full survey results at csc.com/2015A&DSurvey.

NOVEMBER 2015 | CSC WORLD

31


RETAIL

3 Steps

to Seasonal

Readiness

by John Blackburn and Michael Deittrick

Retailers are always busy preparing for the next seasonal spike.

Approximately 20 percent of annual retail sales in the United States occur

during these short periods, often around national holidays; to manage the

onslaught, retailers hire hundreds of thousands of seasonal employees.

This jump in transaction traffic, logistics and supporting

resources brings an increased risk for IT. Retail and security

systems must support and protect brand, customer experience

and critical transactional data while remaining competitive.

Throughout the year, retail customers — whether traditional

or omnichannel shoppers — expect a consistent and seamless

user experience in traditional stores, as well as through

distribution centers, mobile apps, e-commerce, social media,

call centers — even third-party partner networks. During peak

shopping times and holidays, their demands only increase.

Notable cyber intrusions targeting major retailers such as,

in the United States, Target, Neiman Marcus and others have

shown that the dangers of a malicious attack are now all too

real. Cyberattacks and breaches can disrupt retail operations,

slow down and even prevent sales, and seriously damage a

brand’s reputation.

32 CSC WORLD | NOVEMBER 2015


Preparing for seasonal spikes is far from simple. However,

retailers can benefit by proactively adopting the three

following approaches:

• Be responsive

• Be elastic

• Be secure

These three approaches, described in this article, can help

retailers gather the technology and business-focused

capabilities that have become necessary for a successful

season. They can also help increase customer satisfaction,

protect the brand’s reputation, ensure that systems remain

up during peak traffic periods, and maximize revenue

and conversions.

Be responsive

While customers may always expect your e-commerce

systems to be fast, smooth and easy to use, during seasonal

spikes, customers demand it. Anything less, and they’re likely

to defect. After all, competing retailers are only a few clicks

away. To achieve greater responsiveness and retain valuable

customers, consider taking these steps:

• Test, test and test again. While most retailers commonly

test end-user touchpoints, they often overlook the testing

of their supporting systems. So, be sure to examine your

entire IT architecture from end to end, including your

application, data, network and cloud platforms. But don’t

stop there. You also need to test your competing workflows.

For example, if your forecasting system wants to grab

computing resources, what happens to online orders?

Thankfully, your engineers can use automated tools to test

and simulate real-world scenarios.

• Look deep for performance issues. Drags on performance

can easily hide within interoperating systems. Don’t let

them stay that way. Make sure your store systems can run

offline — at least for a few hours — thereby allowing failover

systems to take over, in the event of a failure. Ensure your

databases are correctly tuned and your networks tested.

Also consider if you have enough data storage.

• Remember your external services. External systems can

form the weakest link in your chain because they’re not

directly in your control. With the growth of Web services

and the cloud, many retailers use more of these services

than ever before. These services have become more

important than ever, too. For example, a sluggish addressverification

system can bring your checkout process to a

crawl. Your goal? Make sure that it won’t happen.

• Design software to scale. This is an architecting task. Place

workloads on systems that can be scaled quickly, and

ensure that network bandwidth can scale, too. This may

require moving to a cloud model — private, public or hybrid —

that best supports your particular workloads. As for large

batch processes — the real enemies of scalability — also

consider moving them to the cloud, which enables them to

run in highly elastic virtual-server farms.

• Run your run-book. Here’s where your data center can

optimize all batch-process schedules. Make sure your batch

jobs run at times that do not interfere with your transactional

systems. Consider rescheduling some jobs to run either before

or after seasonal spikes, rather than during them.

• Refactor your workload. Many batch processes are essential.

It’s not an option to skip this task. However, there’s still

enough time to refactor your workloads and run them in the

cloud. Rather than revamping your entire system, focus on

the resource hogs and aim for a point solution.

Be secure

One “seasonal event” that no one wants to experience is a data

breach. The period during and right after a seasonal spike has

become prime time for data thefts, system intrusions, malware

incursions and other criminal activities. The following steps can

help keep your systems and customers safe:

• Guard the last mile. Your endpoints are where an

overwhelming majority of data breaches occur. To be sure,

smart payment cards help. However, by themselves, they’re

not the complete solution.

• Get holistic. Far too many retailers take a fragmented

approach to security. Take an omnichannel approach

and apply tokenization, which protects sensitive data

with substitutes; also, consider fraud detection and other

security best practices.

• Audit early and often. Conduct a full intrusion-detection

audit to ensure that you are fully protecting your

customers’ payment and personal information. Ensure that

vital data is encrypted end to end. Leverage a vault system

to tokenize credit cards; then isolate the system in a highly

secure zone.

• Stay current. Ensure that all of your systems continue

to have the latest security patches and fixes. With

cybercriminals constantly launching new, sophisticated

attacks, you simply cannot afford to fall behind. Also

remember to conduct regular and timely maintenance on

your entire IT environment, including Web and application

servers, databases and firewalls.

Be elastic

How scalable do your systems need to be to cope with the

holiday shopping rush? The right answer: very scalable. Peak

shopping cycles create dramatically increased demands. To

keep up, you need enough data storage, networking capacity

and raw compute power — and the ability to quickly allocate

more as needed. Sure, you will forecast your seasonal capacity

needs. However, what if actual demand greatly exceeds your

forecasts? Consider these tips for greater elasticity:

Your systems’ seasonal readiness has become vital to your success,

more than ever before. By ensuring they are responsive, elastic and

secure, the next season will be, as the saying goes, in the bag.

JOHN BLACKBURN is CSC’s global industry general manager,

and MICHAEL DEITTRICK is CTO for consumer, retail, travel

and transportation industries at CSC.

NOVEMBER 2015 | CSC WORLD

33


CYBERSECURITY

Hiding

in Plain Sight

by Nicholas Handy

If today’s advanced persistent

threats (APTs) have not yet

penetrated your systems

and data, you can be

certain they will.

Criminals design these modern, sophisticated hacking

processes to gain unauthorized, undetected access to public

and private networks. Sponsored by nation-states, organized

crime, terror organizations and hacktivists, APT developers

are well funded and patient, continuously evolving their

hacking tactics, tools and techniques until they successfully

penetrate their targeted systems and data.

To counter such threats, organizations need a

multidisciplinary defense that delivers continuous

intelligence and awareness, responds rapidly to disrupt

APTs that already have penetrated their systems, and

proactively anticipates and responds to these threats as

they rapidly evolve.

An APT’s goal is to hide within normal

network traffic to gain access to highvalue

information over an extended period.

Once it gains a foothold, it can expand across

an organization’s infrastructure and introduce

further malware attacks. Successful attacks can

cause embarrassing public breaches that tarnish an

organization’s image, alienate customers because their

personal information has been compromised, result in

the theft of valuable data and intellectual property, or

shut down global networks and supply chains.

Notable APT-caused breaches in 2015 include those

announced by health insurance provider Anthem and the

U.S. Office of Personnel Management. The costs resulting

from successful APT breaches continue to grow. According

to the Ponemon Institute’s 2015 Cost of Data Breach Study,

which surveyed 350 companies in 11 countries, the average

total cost of a data breach today is $3.79 million — up

23 percent in the past 2 years.

34 CSC WORLD | NOVEMBER 2015


With highly sophisticated APTs entering systems and networks,

the focus on cybersecurity has changed from solely protecting

equipment, people and data. Today, organizations must broaden

their approach to security and must counter APTs on a global

scale to protect both traditional and cloud-based environments.

Organizations should perform internal and external

vulnerability assessments, and perform analyses ranging

from nonintrusive compliance scans to full-scale penetration

tests. These assessments should also identify areas where

organizations fall short of emerging regulatory compliance.

From perimeter defense to actionable intelligence

The cloud, social media, smart devices and other technology

innovations give new opportunities to collaborate with

customers and partners, expand into new markets and

reduce costs. They also give today’s determined, well-funded

adversaries new avenues for success.

In the past, it was possible to protect against these adversaries

by locking down networks with perimeter defenses and

signature-based tools, such as antivirus, firewall and

intrusion prevention systems.

These still remain necessary to protect data from a variety of

threats, but they are no match for today’s APTs — because

APTs constantly morph to identify and exploit vulnerabilities.

Skilled adversaries diligently work to develop techniques

specifically designed to penetrate an individual organization.

For instance, an APT might identify a “zero-day” vulnerability —

an unaddressed and previously unknown vulnerability. The

APT would attempt to trick an employee into clicking on

an infected Web link in a spear-phishing email that would

introduce malware onto that employee’s computer. Since the

malware is designed to exploit a specific zero-day flaw of the

application, it could successfully evade antivirus detection and

other traditional perimeter defenses. The APT adversary would

then gain remote access to the network via the employee’s

computer and spread across the enterprise to access servers

containing highly sensitive data.

Once all the vulnerabilities are understood, organizations can

develop comprehensive incident response plans, implement and

test those plans, and prepare to respond to APTs with welltrained

responders, investigators and forensic-data collectors.

As organizations produce actionable intelligence and respond

to incidents, they also need to collect this information so

they can understand the nature, motives and patterns of

their adversaries. Who are they and what do they want?

What organizational assets are they after?

APTs can be tracked by their behavior, methods and tactics.

Some leave signatures. Some have well-established profiles

that can be mined for information. As organizations gain

knowledge about each APT’s operating style, they will improve

their ability to predict, anticipate and disrupt future attacks.

Besides monitoring for APTs, organizations also need access

to global threat intelligence. Security specialists create

actionable intelligence by collecting, correlating, categorizing

and attributing information from various sources. This type of

intelligence helps organizations more easily spot and correlate

anomalies, and gain visibility into breaking events that may

have an impact on their industry, brand, infrastructure, users

and customers.

By understanding the motives of evolving adversaries,

organizations also can better anticipate their actions and

prevent them from causing damage.

Organizations need 24x7 monitoring and analysis platforms

that use analytical techniques, such as heuristics and behaviors,

and internal and external sensors to detect the most nuanced

anomalies. Successfully defending against APTs also requires

that organizations develop a comprehensive detect-analyzeadapt-respond

life cycle based on their unique risk profiles.

This type of monitoring and analysis extends dynamic protection

across an environment where traditional antivirus software

typically does not inspect for advanced threats. By attaining

real-time visibility into all adversarial activity across every

endpoint, organizations can dramatically shorten the time

between an APT compromise and its detection.

Proactive defense

To respond rapidly and aggressively also requires preparation.

Having and executing a plan can make the difference between

weathering an APT or watching it destroy consumer confidence,

brand and share price, or negatively affect compliance with

contracts, laws and regulations.

Conducting business with confidence

Cybersecurity has changed from being a mere compliance

matter or the “cost of doing business.” It has become a

primary business challenge that industries and governments

must address.

To properly counter APTs, organizations need a nextgeneration

approach that continually integrates threat

intelligence-based security services to track threat actors

and threat groups, and determines their tactics, techniques

and procedures so the business can properly secure its

infrastructure and sensitive data. When organizations

incorporate an effective counter-APT approach into their

cybersecurity program, they’ll be able to conduct business

with confidence and assurance that their brand, shareholders

and business are resistant to today’s rapidly evolving APTs.

NICHOLAS HANDY is global product manager for

cybersecurity at CSC.

NOVEMBER 2015 | CSC WORLD

35


CLOUD

Simulation shows how a DevOps strategy

can lead to competitive advantage.

DevOps

THE

by Jerry Overton

and Gene Kim

DISRUPTION

Why invest in DevOps? Can a DevOps transformation lead to competitive advantage —

or even market disruption? We sought to answer those questions by simulating DevOps

transformation scenarios and comparing them to known business innovation patterns.

Our key finding was that DevOps transformation can not only lead to competitive

advantage, but under the right conditions, it can also create market disruption.

In other words, when we can convert our systems of innovation into systems of disruption,

the value of DevOps may be far greater than we previously thought.

Simulation modeling is the basis of our latest report on DevOps. We have also published this

model as an interactive Web application (csc.com/devopsmodel) for companies that would

like to run their own simulations.

We simulated two business models under the same conditions — an experimental model

and a control model. The simulator allows us to plug in different values for factors such

as innovation, efficiency in execution, and number of potential consumers.

Long-term advantage in market competition

Efficiency in execution is based on the time it takes to get through a production cycle and

how much is learned in each cycle. The shorter the cycle times, the faster that learning occurs.

Flickr’s DevOps transformation led to a 10x decrease in development cycle time. Following

that example, we assume that DevOps transformation in the experimental model reduces

the production cycle of a working prototype from 30 days to 3 days. The IT development

benefit from DevOps is shorter development cycle times; the operations benefit is greater

productivity at larger scales.

We model this in our simulation. The simulation predicts a slightly higher ROI at most levels

of investment, and a stable, long-term competitive advantage.

Suppose we introduce a more innovative product into our simulation. Although the same

change applies to both business models, the shift to a more innovative market disproportionately

benefits the experimental model, increasing its ability to learn and produce new features.

This makes a big difference in markets more sensitive to new features. In fact, the simulations

tell us that, under these conditions, a successful DevOps transformation introduces

disruption — a new competitive environment where the control model cannot survive.

Creating systems of disruption

A successful DevOps transformation is expected to provide a competitive advantage.

However, when it is aligned with a strategy of market innovation, we find that the result

is potential market disruption. A strategy of innovation changes buyer behavior, and

customers place a premium on new features. Under those conditions, companies capable

of learning fast and releasing new features quickly can dominate their market.

A DevOps transformation allows an enterprise to produce features faster as the enterprise

scales. When competing on innovation, new features strongly affect customer adoption.

This increases the enterprise’s ability to scale and creates a virtuous cycle where the

winners win more.

JERRY OVERTON is a data scientist and distinguished engineer with CSC’s ResearchNetwork.

GENE KIM is co-author of The Phoenix Project: A Novel About IT, DevOps, and Helping Your

Business Win and the upcoming DevOps Cookbook.

For more details and references, go to

csc.com/devopsdisruption.

36 CSC WORLD | NOVEMBER 2015


LESSONS LEARNED

FROM THE

DevOps FRONT LINES

CSC is using DevOps to implement innovative solutions for clients in an agile hybrid cloud

environment, improving integration and collaboration among development, operations

and business teams. In a recent CSC Town Hall, experts discussed how DevOps

accelerates the application development, testing and release process.

Colin Eby, a solution architect at CSC, says DevOps erases boundaries between

application development and the business. “The core principle is the shared ownership of

product objectives and outcomes. Eliminating hand-offs between teams reduces the need

for queues and schedulers, and improves product quality and outcomes,” Eby says.

For example, CSC’s development team reduced its cycle time — from starting a new

software feature through deployment — from 50 days to 6 days. Instead of deploying

one release a year, the team could therefore deploy 42 times. “We expect even more

improvements,” adds Paula Thrasher, an application delivery lead for CSC.

Agile development delivers small units of value more frequently with CSC Agility

Platform, a hybrid cloud management solution that enables software managers to

continuously deliver and test code, and move it into production. This allows the other

teams involved to monitor an application to ensure it meets business and customer

requirements. Process automation helped CSC reduce time spent on rework from

12 hours to 15 minutes per cycle.

Ben Anderson, installation services lead at CSC, says DevOps is guiding the

implementation of Lorenzo, CSC’s next-gen electronic patient record system, for

a UK-based client.

“DevOps eliminates what was once a two-stage process between development and

packaging,” Anderson says. “It offers a fully automated, continuous integration tool

chain with built-in governance. That eliminates most manual hand-offs like code

check-in, compilation and authority to promote. DevOps also allows us to shift our

focus from the tactical to the strategic. This lets us focus on the application of best

practices in our development.”

Damon Edwards, co-founder of DTO Solutions, points out a number of reasons why

DevOps is gaining popularity. “Companies recognize now that IT is the heart of the

business, it’s the factory floor. And they understand how the performance of that affects

the bottom line,” Edwards says. “Likewise, IT now sees and understands that same valuechain

approach. Historically, it has optimized for specific areas. But now IT realizes it

needs to step back and optimize the whole end-to-end life cycle.”

Darryl Cauldwell, a senior platform engineer at CSC, says tools like CSC’s BizCloud TM

HC (hyper-converged) and VMware’s Integrated Open Stack (VIO) environment are key

elements to making DevOps possible. “Providing software-defined networks, storage and

applications over a cloud infrastructure helps developers get going quickly,” Cauldwell

says. “These technologies allow developers and architects to bring together pieces of

automation to define application blueprints. This offloads a great deal of complexity

and allows the developer to focus on the application itself.”

Better still, DevOps principles apply to any platform or technical environment, notes

CSC’s Thrasher. “Our project currently has 28 agile teams, including five mainframe

teams, who are also looking at DevOps processes,” she says. “It’s not just for the shiny

new stuff or your mobile app.”

DALE COYNER is a writer with CSC’s digital marketing team.

by Dale Coyner

NOVEMBER 2015 | CSC WORLD

37


INFRASTRUCTURE

Modern IT Architecture

in One Word: Shared

by Bob Donnelly

Social, mobile, analytics and

cloud drive today’s business.

by Social Bob Donnelly involves shared

consciousness. Mobile involves

shared services provided to

individual devices. Analytics

are run on data shared from

multiple sources. And cloud

deals with the sharing of

resources, such as compute,

storage, platform, software

and so forth.

The common theme, of

course, is sharing — and

this shift toward sharing

is causing IT architects

to look at systems in

new ways.

38 CSC WORLD | NOVEMBER 2015


We’ve already touched on several different meanings of

sharing. People voluntarily share things online. Some companies

actively mine data based on information consciously shared or

via actions such as buying something, typing something into a

search engine, or visiting a website. While analytics are based

on data “shared” or gathered from multiple sources, this does

not necessarily involve a shared component in the architecture.

requirements. If there is any “distance” (network latency or limited

bandwidth) between data users, a local copy may be needed, but

systems on a fast, local network can share this one store. The net

result is a migration from independent, vertical stacks, each acting

as its own system, to shared, horizontal services that enable each

“system” to concentrate on its independent function. The concept

of “system” begins to morph.

Shared source code, or binaries, is another context. Architecture

is influenced by the tools available to implement it. Many projects

use trade studies to consider the appropriate tools, and reusing

existing tools that fit saves time versus creating something

new. Shared can mean open source, inner source (shared source

among a closed community), closed source development libraries,

or licensed commercial software.

While this context of sharing influences architecture, the resulting

architecture stack may not have any external dependencies. You

may run a database used by many others, but it can be a separate

instance run on your hardware. You may utilize user interface

libraries used by many others, but they are compiled into your

executable code.

Yes, there is work to enable this: agreeing on a common data

model; defining an API that meets the combined access needs;

designing the data services to meet the combined performance

needs. Potential gains include reduction in hardware (since one

shared data store replaces many) and enhanced capabilities from

having the aggregate data (versus a subset) to work from.

Sharing is not always easy

Getting varied, interested parties to agree on the form of these

shared services requires combining technical skill with organizational

and leadership skills. Aligning product release schedules is

a challenge, as is handling legacy integration and interoperability.

In short, success depends on agreeing to shared requirements,

shared schedules and shared technical solutions.

So, how do we define a truly shared architecture? It’s one where

one or more layers of the architecture are shared with others during

runtime. Certainly, Anything as a Service (XaaS) involves using

shared resources for certain layers of the architecture. Hardware

and virtualization layers are provided in Infrastructure as a Service

(IaaS). Platform as a Service (PaaS) and Software as a Service

(SaaS) provide application hosting or applications themselves.

Boundaries between the shared resource and the customer-specific

application are well defined and may be formalized in an SLA.

As a system/software architect dealing with system-of-systemslevel

integration, I see sharing that does not have as clean a boundary

or interface. Instead of a well-defined hosting environment,

services are truly shared among multiple stakeholders.

The next step

Recently, there has been a marked change in approach as we

transition from services moving data between systems to systems

truly sharing the same data services. Let me explain.

Previously, in a layered architecture, a single supplier would provide

every layer in the entire stack. Systems may have run a common

service that moved data, but these focused on exchanges between

systems. Once data hit a particular system, it would be independently

stored, manipulated and viewed.

Recently, there has emerged a concept of storing data once

for all “systems” to access. A common data store is now fast

enough so that data can be created, read, updated and deleted

(CRUD) by multiple systems at once and still meet performance

The system of systems transitions into a system of services.

Services replace systems as the primary component. A given

function becomes an application running on top of these services

versus a system with its own vertical stack. Companies such as

CSC morph from system integrators to service integrators.

We’ve looked at various meanings of sharing: an XaaS model

with a defined boundary involving payment for services; shared

contribution to a data stream; shared source through both open

and inner sourcing; shared requirements implemented in common

services used by multiple users to implement various functions.

A modern architecture has some combination of these features.

“Modern” is possibly best defined by what it is not — namely, a full

stack, or “system,” owned by one provider.

IT architects need to figure out how to create shared ingredients

that can be combined to meet different technical requirements.

These become the basis of a microservice architecture. Over time,

single ingredients may be swapped to insert new technology and

improve performance. This may be harder than creating a single

product, but it enables the provider to keep fewer solutions on

its shelf, meet customer needs quickly, and reduce costs across

product life cycles.

BOB DONNELLY is a distinguished engineer at CSC.

NOVEMBER 2015 | CSC WORLD

39


APPLICATIONS

ENTERPRISE IT

Gets Lean by Neil Gatenby and Albert Verhoeven

Manufacturing concepts targeting

waste and complexity are being

adopted by enterprise IT.

In today’s enterprise, IT systems have become a primary source

of either growth or decline. That’s been a blessing and a curse.

Technology-driven change is creating opportunity, but it’s also

creating competitors, complexity, exponential data growth and

the need to invest in more IT.

Companies that seek more effective ways to manage IT

systems are exploring the principles of Lean, a concept

developed years ago by automobile manufacturers to respond

to market changes and customer behaviors. Today, the

same types of changes are affecting IT and the business.

And, just as automakers did, IT managers can

adopt Lean principles to answer the rapidly

changing needs of the business.

Lean defined and applied

The Lean approach is about delivering

maximum value to customers by

reducing waste in business

processes. It eliminates

anything a customer would

not be prepared to pay for,

such as defects, downtime,

slow application response

times or even underutilized

hardware.

Lean calls out systems

that don’t deliver value. IT

systems are primarily built

to help organizations execute

business processes. Do the

systems make it easier or harder

for employees to do their jobs? A reliable indicator

for determining system value is whether people find ways

to work around it. The rise of “shadow IT” — processes and

systems commissioned by business units without direction or

management from the IT organization — is an indication that

systems don’t meet the needs of the business.

LEAN IT

Lean embraces efficient development methods. Emerging

methodologies such as DevOps involve the business and

users throughout the development process. Instead of waiting

to deliver a finished application, components of a solution

40 CSC WORLD | NOVEMBER 2015


are continuously rolled out for testing and user acceptance,

resulting in fewer steps, fewer bottlenecks, lower cost, a

reduced risk of user rejection and faster time to value. The

ability to respond rapidly to requirement changes with an

approach such as DevOps is vital when other parts of the

organization are undergoing their own Lean initiatives.

Lean encourages new technologies to tame complexity. Backoffice

technologies such as cloud infrastructure can contribute a

great deal toward making an IT system more efficient. The use of

a cloud architecture for development is far more cost-effective

than standing up new servers, purchasing software licenses and

commissioning more data center space. Development tools

that are cloud enabled encourage collaborative development

and automated testing, as well as version control and release

management. Front-end technologies such as mobility and social

media offer users more control, fast access to data, frequent

updates and a more engaging experience, all of which add up

to more value for the user.

Lean concepts in IT

Lean concepts can be applied throughout today’s IT organization

to dramatically improve business outcomes. In fact, many IT

shops already embrace Lean principles, but by different names.

For example, value stream mapping is a common starting

point in Lean. The method analyzes a current state and

designs a future state for the series of events and processes

that take a product or service from its beginning through to

the customer — focusing on activities a customer would be

prepared to pay for, and eliminating waste.

Similarly, business process management (BPM) is a

methodology that allows organizations to define, model and

execute activities in clear and efficient processes. In many

organizations a disconnect exists between business operations

and IT. BPM is the place where these two worlds collide. It

involves elements of people, process, tools and data. BPM can

be described as the tools that help people execute business

processes to achieve business goals and objectives.

DevOps is the practice of operations and development teams

participating together in the entire service life cycle, from design

through the development process to production support. There

are a lot of opinions on what DevOps is and isn’t. However, it has

some common themes, tools and ideas that have many parallels

with Lean. Quick changeovers between development and

test cycles resonate with Lean’s idea about the “single-minute

exchange of dies,” a reference to quick changes in manufacturing

equipment. Lean also espouses the concept of doing the right

activities at the right time to minimize wait times and (in the case

of manufacturing) reduce unnecessary inventories, a concept

called “just-in-time.” Similarly, DevOps seeks to reduce delays

and bottlenecks that lead to stacks of code queuing up for

review, in a kind of just-in-time development.

A significant Lean concept is the idea that demand pulls

tasks through a system, replacing what has been consumed,

rather than building inventory to meet predicted needs.

This is a role being filled increasingly by the service-enabled

enterprise (or SEE, also called as-a-service). It provides

an organization with any type of IT resource — network,

computing, big data, storage — on a consumption basis,

rather than requiring that massive infrastructure be built to

meet potential peak resource demands. This gives customers

a real choice about what IT services they need, and how

much they need to use.

Automation is king in the Lean system, performing tasks

via a machine rather than a person, with a heavy focus on

repeatability and efficiency. Likewise, in IT, integration services

provide the automated glue between systems. Most business

processes are supported by multiple systems. In many cases,

people copy and paste data from one system to another.

Integration services create ecosystems that allow people to do

what they need to do without being constrained by systems,

and vice versa.

Following the Lean path

The kind of transformation that takes place under Lean

principles can’t be considered a minor change because it

completely alters the operating model of an organization.

It affects every facet of an organization’s construct: people,

process and tools.

The journey to a truly Lean, as-a-service enterprise starts

with a cultural change that must be led from the top. The

benefits of such a change are profound. The transformation

of the automotive industry and many other manufacturers

has proven that continuously optimizing systems that

create value for customers also creates value for the

organization. Lean has changed the way consumers and

manufacturers interact.

The same thing is happening in IT. Advances in technology

have changed what users value and expect from IT systems;

Lean offers many of the principles we need to meet these

expectations. Shortening delivery cycles, driving efficiencies

in the supply chain, giving customers choices — these are

just some of the benefits of this transformation.

NEIL GATENBY is business process and tools manager

at Thales Australia.

ALBERT VERHOEVEN is digital transformation director

at CSC.

NOVEMBER 2015 | CSC WORLD

41


RESEARCH

Like roads, telephones and electricity were to the

20th century, an ever-more capable digital ecosystem

is becoming the underlying business infrastructure of

our time.

Whereas in the past each major industry sector relied on its

own vertical stack of systems and processes, firms must now

leverage powerful “horizontal” capabilities — computing,

messaging, GPS, maps, payment systems, social reputations

and more — that are used across all industries. These new

capabilities are radically transforming many aspects of

business and society, and will only grow stronger over time.

At CSC’s Leading Edge Forum, we refer to this emerging

set of digital services as “the matrix.” While we could have

easily used existing terms such as the Internet, the Web or

the cloud, we believe that the metaphor of a matrix best

captures both the friction and synergies between these

traditional vertical and emerging horizontal worlds.

Clearly, the term is also a direct reference to the 1999

science fiction movie The Matrix. As in the film, our

metaphorical matrix is a world where computers talk directly

to one another, often with little human involvement. While

the cloud suggests something “out there,” like it or not, we

are all part of the matrix — a place where 3D goggles can

immerse us in digital worlds, and where our virtual identities

increasingly have a life of their own.

Of course, the creators of the movie imagined a deeply

dystopian future, where humans are used merely to provide

energy to the machines that are really in charge. But

despite the recent warnings regarding the rise of machine

intelligence and the risk of human obsolescence — warnings

from innovators no less than Stephen Hawking, Bill Gates,

Steve Wozniak and Elon Musk, as well as creators of more

recent movies such as Her and Ex Machina — as of now,

digital innovations have been overwhelmingly positive

in nature.

THE

MATRIX

IS HERE

by David Moschella

You don’t have to take the

red pill to understand the

digital economic ecosystem.

42 CSC WORLD | NOVEMBER 2015


From vertical stacks to horizontal services

In the past, most company business models were based on

their own functional and process stacks. For example, major

banks would have their own branches, data centers, credit

cards, cash machines, call center systems, loan approval

processes, investment advisors and so on.

But increasingly the most interesting new businesses come

from leveraging “horizontal” digital capabilities. Consider

the way the ride-sharing app Uber takes advantage of

public infrastructure — smartphones, cloud computing, GPS,

mapping software and Internet payment mechanisms —

to increasingly dominate the taxi industry.

These and other public infrastructure capabilities will

continue to emerge, even though you didn’t ask for them.

They are not there waiting to be sourced as alternatives to

in-house provision. They are primarily there as components

that enable your firm to develop new products, services

and business models, and they cost you nothing until

they are used.

Even more powerful components are on the way. These

include smart sensors, the Internet of Things (IoT), and

machine-to-machine (M2M) communications, often

combined with algorithms, artificial intelligence and vast

knowledge bases such as Google and IBM’s Watson. It is

this emerging layer of awareness, intelligence and virtual

operations that will make the matrix metaphor even more

apt, while also triggering many future market disruptions.

The role of digital leaders

With new capabilities appearing virtually every day,

ignoring the matrix is not an option. Today’s leaders need

to embrace the fact that the matrix is a powerful, unruly

force they cannot control and whose movements cannot be

predicted. The required management posture is more akin

The matrix is the economic infrastructure of our time.

to journalism, wargaming and storytelling than traditional

business planning and strategy development, which

presumes more control than the matrix allows.

Executives should ask the big, simple questions: What is

the future situation likely to be if we do nothing? Who are

the new disruptors, and where will they seek to enter our

markets? What are the major scenarios that might become

reality? What are the emerging capabilities in the matrix

that should most interest or concern us? What sort of

experimental experiences, learning and talent development

do we need?

Most of all, management needs to develop an intuitive feel for

the matrix. This can only be done by getting out of the office

and engaging with key matrix players. Executives should be

spending more time networking in digital circles and seeking

to understand their industry as Silicon Valley would see it.

They should also be trying to hire digital leaders who have

lived in and absorbed the matrix culture.

The 1920s and 1930s were also a time of great technological

change — electrification and refrigeration, telephones

and radio, automobiles and air travel, and, of course,

movies. Information technology has not yet matched

the transformative societal impact of that great wave of

scientific progress — but we are still early in the game. The

ability of the matrix to support advances such as robotics,

3D printing, human/machine integration, autonomous

vehicles, biotechnology, machine intelligence and all manner

of virtual worlds suggests that change on an even greater

economic and social scale is likely. For better or worse,

the matrix is here.

DAVID MOSCHELLA is research director at the

Leading Edge Forum.

Learn more about the Leading Edge Forum at

lef.csc.com.

Cars Health Manufacturing Media Energy Education Banking

Next-generation

disruptors?

Selfdriving

Quantified

self

Robots/

MI

Immersive/

3D

Smart grid

Flipped

classes

Cryptocurrency

Intelligence

Analytics, Google, Watson, sensors, IoT, AI, M2M

Today’s

disruptors

Uber iHealth 3DP Netflix Nest MOOCs Kickstarter

Social/crowd

Facebook, Twitter, user content, open source

www

Publishing, e-commerce, payment, encryption

Infrastructure

Computing, storage, bandwidth, mobility, GPS

NOVEMBER 2015 | CSC WORLD

43


LAST WORD

IT TRENDS

TO WATCH IN 2016

by Dan Hushon

Five IT trends will help usher in the next generation of global productivity.

Enterprises that develop strategies around these trends will have an

opportunity to gain a competitive edge.

Value of contextual data escalates

Building on the growth of digital platforms and the volume of

data supplied by “Internet of Things” (IoT) devices, contextual

data will be a prevailing force in 2016. In a novel, context

describes the setting and the scene where characters act.

In an enterprise, contextual data provides the same type of

broader picture. Data points such as device, location, language,

social network and influencers help enterprises develop better

insights, personalize products or services, or even suggest

specific actions. More context will allow enterprises to create

a more integrated and valuable information experience for

clients, employees, partners and citizens.

Demand for cybercontrols grows

As data becomes more contextually rich, it becomes more

valuable to the firm — and to cybercriminals as well. The

growing risk of attack will require next-generation techniques

for network defense, identity access management, risk

management and now information management. Public

clouds will play a role in the integration of contextual

data, so these will need to be included in security system

architectures. Context-rich environments will force

enterprises to give significant thought to acceptable

risk levels and controls as they share a growing range of

information.

APIs enable business strategies

Enterprises have discovered the power of APIs and will

continue to build on them. APIs are the key to information

access and exchange between systems, often acting as a

wrapper around older systems. This enables organizations to

combine data from legacy applications and new applications.

APIs are more than a development tool; they create new

channels for service integration, information coordination,

ecosystems of information sharing and economies around

information derivatives. The core of a digital strategy

depends on democratizing information access, and APIs play

a central role in that process.

The CIO’s role continues to evolve, focusing on an

information-driven business

The CIO’s role will include partnering with the business to

drive information and technology value. This partnership

is part of what’s called business relationship management

(BRM), and it will help the enterprise gain access to the right

information and technology to make better decisions and

introduce competitive products, quickly and at scale. As

owner of the organization’s information and technology,

the CIO is uniquely positioned to lead the development

of digital business innovations.

Enterprise infrastructure players consolidate to provide agility

Another trend is the ongoing convergence and consolidation

of enterprise infrastructure players. This consolidation

answers the market’s demand for more standardized,

agile and complete solutions out of the box. Converged

infrastructure is moving toward public cloud styles, which

extend purchasing and operating leverage, enable agility and

improve self-service for IT. Look for greater specialization of

these platforms in future products and services to create IT

leverage at the pace of business.

Finally, if there’s anything that’s certain about the future,

it’s that some new innovative technology or application will

surface in 2016 that will change our thinking. This continuing

change and renewal is what makes IT such an exciting field

to be a part of today, and I can’t wait to see what else 2016

will bring.

DAN HUSHON is chief technology officer at CSC.

Thanks to CSC’s Leading Edge Forum, ResearchNetwork

and CTO Office for input.

CSC’s Leading Edge Forum is a sponsor of the Business

Relationship Management Institute, the premier organization

dedicated to serving the global BRM community.

Learn more at csc.com/lef-brm.

44 CSC WORLD | NOVEMBER 2015


DISEASE TO DATA:

FOR THOSE

WHO SOLVE

HEALTH CHALLENGES

Sixty-four percent of CIOs in the healthcare and life sciences sector call modernizing

legacy applications a high or critical priority, and it’s no surprise that they feel that

way. Shifting consumer expectations and changes in regulations, as well as global

pressure to deliver better care for individuals and better health for populations, have

the entire industry in need of innovation that can be implemented quickly. CSC can

help you increase flexibility, responsiveness and reliability, while lowering per-capita

costs with Agile IT as a Service.

Innovation is never a roadblock For Those Who Solve.

Learn more at csc.com/solve.

NOVEMBER 2015 | CSC WORLD

45


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London

N1C 4AG

United Kingdom

+44.020.3696.3000

About CSC

CSC is a global leader in next-generation IT services and solutions. The

company’s mission is to enable superior returns on our clients’ technology

investments through best-in-class industry solutions, domain expertise

and global scale. For more information, visit us at csc.com.

© 2015 Computer Sciences Corporation. All rights reserved.

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