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Disrupt or be disrupted? Today’s enterprises need to make their choice.

How to Kickstart Your Digital Transformation

Table of Contents

Chapter 1: The Need for TransformationLearn about the direction of the financial services market, the trends and challenges financial institutions are facing, and how they can seize the opportunity to leverage today’s digital advances in IT. Read more on:

• Transform or be Disrupted• Window of Opportunity• The Financial Services Market Is Shifting• Access vs Ownership• How to Kickstart Your Digital Transformation

Chapter 2: Think Hybrid-FirstHybrid IT is not a new concept but is commonly misunderstood. Learn why your established enterprise should adopt the Hybrid IT strategy to bring in more business value. Read more.

Chapter 3: AnalyseKnow why CIOs should perform an in-depth analysis of their business processes and become familiar with the impact of change on your business dimensions. Read more.

Chapter 4: SecureKnow the importance of a DR strategy, BCP, and overall cybersecurity to get the business going. Read more.

Table of Contents

Chapter 5: InnovateLearn how cost, cashflow, and utilisation play a key role in driving enterprise innovation. Read more.

Chapter 6: Accelerate Your Digital TransformationKnow the right capabilities a truly digital enterprise should possess, the different aspects of business it should rethink, and the cure for digital fatigue. Read more.

Chapter 7: Believe in GreatnessAnalyse, build, and think hybrid through technology and data—learn how these two can unlock potential business growth. Read more.

Chapter 8: To Brighter OutcomesFind out the five brighter outcomes that we Dimension Data can offer to CIOs and enterprises as they venture on the digital transformation journey. Read more.

SAP Partners with Dimension Data

About Dimension Data

The Need for Transformation

1

In today’s rapidly evolving landscape, organisations have tried to leverage digital advances in their core business systems. These advances include migrating to newer, more agile core banking platforms, upgrading key back-office solutions like SAP enterprise resource planning (ERP), or extending from predominantly on-premise legacy solutions to cloud applications for critical customer analytics, market risk, and social media needs.

Despite these developments in the market, however, CIOs are still struggling to maintain their innovation, simplicity, and scalability agenda ahead of interoperability, security, risk, and governance needs.

Transform or Be Disrupted

‘Transformation is refocusing organisations on their core purpose, which is the delivery of services to

their customers.’— Steve Van den Heever

Group Director, Financial Services Dimension Data

Digital Transformation 6

‘Keeping the lights on’ eats up organisational resources that should rather be used for improving operations or increasing agility. While DevOps, automation, and Agile development are there to address these needs, many organisations have approached these concepts inappropriately—and disruptively—without a firm understanding of proper implementation and execution. So how can one invest appropriately in agility and innovation?

According to Gartner’s 2015 Banking and Financial Services report, the financial services industry spends 6.5% on IT as a percentage of revenue and 8.5% as a percentage of operating expenses. No other sector spends as much, and the spend on IT operations is constantly rising.

At the same time, along with infrastructure and licenses, operational and people costs continue to rise. Businesses still operate in a traditional ‘analogue style’ with only pockets of ‘digital’ enablement led by IT.

Window of Opportunity

‘Most of the industry’s IT spend goes to IT

operations (64%), with only 22% and 14%

going towards growth and transformation,

respectively.’

Cost management 45%

44%

42%

37%

32%

31%

29%

21%

19%

Data migration

Cloud management(patching OS, monitoring, backup)

Automation ofbusiness processes

Application integrationand system retrofitting

Determine the rightmigration approach

System monitoring

Cloud security

Integrating cloud with non-cloudworkloads and infrastructure

7 Digital Transformation

The incumbent cost model itself prohibits growth and transformation, trapping budgets that could be used to make the changes that are so urgently needed for financial institutions to retain their place in a digitising economy.

In a recent 451 Research survey of 1,500 organisations across multiple verticals and geographies, more than 45% of respondents noted that cost management was one of the most challenging aspects of cloud deployment. Data migration, cloud management, automation, and application integration or system retrofitting followed closely behind as impediments to the use of this ‘digital business’ enabling technology.

That is the opportunity to make an impact.

Challenges of Cloud DeploymentWhat does your organisation consider to be the most

challenging aspects of cloud deployment?

Source: Success Factor for Managing Hybrid IT Report by Dimension Data and 451 Research

http://www2.dimensiondata.com/en/Microsites/hybrid-IT-insights


Transformation to digital calls for every financial institution to make fundamental changes, not only across its technology landscape, but also in terms of rethinking its entire business model—to take out cost and find new and profitable revenue upsides.

This shift calls for letting go of more than bricks and mortar. It calls for the rapid transformation of years of operational structures built around product design, acquiring and owning hardware, developing proprietary and complex software, and employing large teams of specialists to run it in your own data centres.

Innovations led by smartphones, FinTech, BlockChain, and advanced analytics require adoption of ‘beyond the core’ technologies, causing businesses to rely on services and capabilities outside the realms of what has been typical boundaries for IT.

Dimension Data helped one of the world’s largest independent insurance firms address the challenge of adapting to a digitising marketplace full of disruptive non-industry players by creating a centralised Asia Pacific data centre hub for application development and deployment, as well as support services for the region. This enabled the firm to gain greater agility and responsiveness to customer needs through an improved IT operating model that made use of updated technologies, expanded capabilities, and service-oriented delivery.

The Financial Services Market Is Shifting

Transformation in Action


‘Financial institutions that let go of non-

core IT gain market-beating agility.’

Sustainability in financial services now hinges almost completely on letting go of the traditional IT model and, instead, looking to exploit third-party-owned and operated platforms and services to meet customer demands while enjoying economies of scale and cutting-edge technologies on a consumption-based, on-demand model, ensuring compliance to data sovereignty norms and maintaining stringent SLAs without losing control.


Access over ownership brings significant cost benefits. Solutions Dimension Data delivered across many of the leading banks have proved that moving to a consumption-based model—via the cloud, outsourcing, and managed services—allows institutions to slash their operating costs by as much as 50%.

These savings are amplified by the fact that freeing up unproductive capital and reducing ongoing operational costs has a positive impact on their capacity for growth and transformation.

Now more than ever, financial services companies must establish a strong enterprise architecture to prepare for the future state of banking markets and support agile IT deployments. Utilising leaner, more reusable services can give banks access to a broad array of internal functions and future-proof their organisation by leveraging the distributed technology models of the future.

‘Dimension Data’s FSI clients include 88% of the Fortune

100 Financial Services sector, 16 of the world’s top 25 banks and over 15 stock exchanges.’

Access vs Ownership:Save up to 50% and fundamentally change the business.

Banking revenue and risk profiles change daily and financial processes enabled by systems like SAP are integral to credit risk analysis needs. Managing the interoperability of on-premise and external SaaS data sources can be a complex task for IT.

At Dimension Data, we’ve helped clients improve management and increase cost efficiency through migration to managed IT services like Cloud Services for SAP that integrate with on-premise and hybrid cloud technology needs.

Dimension Data helped a leading UK bank to architecturally enhanced their legacy core banking platform by adding new data services that allow increased analytic capability—enabling customers to get an online mortgage decision approval immediately rather than waiting for a posted response.

Transformation in Action

‘This capability required the commitment to enterprise-wide data integration and

alignment of digital business agendas across multiple

lines of business.’


To kickstart your digital transformation, it is imperative to combine new technologies to create a business innovation platform and not just a technology platform.

How to Kickstart Your Digital Transformation

Analyse

Think Hybrid-First

Secure

Innovate

because IT is Hybrid IT.

all aspects of your enterprise IT.

a disaster recovery plan without an alternate data centre.

to reduce costs, improve cash flow, and increase utilisation.


Digitising Your Core

Assurance and Availability

Commercial Flexibility

End-to-end Accountability

Assurance and availability covers disaster recovery and business continuity plans. These business aspects should be digitised, using a hybrid cloud platform capable of delivering anytime, anywhere service and leveraging extensive, multi-geographical presence. A multi-location platform can be beneficial to businesses governed by data regulations in different locations.

Institutions rely on a combination of on-premise and cloud platforms that are integrated with core business applications to enable multiple business functions. For cases like these, organizations need the ability to bolt on an omni-channel engagement and analysis functionality to existing on-premise or hosted business systems along with a hybrid IT service management wrapper, which should allow them to scale up and scale down as needed.

End-to-end accountability requires a systematic approach, especially in areas of security, enterprise-wide governance, and risk and compliance. Businesses need a platform that makes it clear who does what from project start to completion.

Digitising your core entails consolidating and optimising various aspects of your business and integrating them with new technologies, while placing greater emphasis on these factors:

Think Hybrid-First

2


‘Today, for established

organisations, IT is Hybrid IT.’

— Jason Goodall Group Chief Executive Officer

Dimension Data

Hybrid IT is the approach where an organisation consumes some of its IT resources in-house and others through cloud-based services. This approach is practically used by established businesses who have legacy infrastructure on-premises, but have also started exploring cloud-based alternatives. Thus, their business applications run in different environments, and sometimes a single application may be split across multiple environments.

Going ‘hybrid-first’ offers many potential benefits and challenges alike. While it affords organisations agility, economy, and more choices, hybrid IT is complex to manage, let alone, the cloud. In fact, ‘more than 70% of organisations… plan to use more than one cloud service provider over the next two years, while 42% noted that cloud management was one of the most challenging aspects of cloud deployment.’

To leverage more cost-effective deployment models, migrating an application written for a specific infrastructure to the cloud entails modernisation and re-architecting. Workload migration, as well, requires careful planning from change management to execution.

IT Is Hybrid IT

Only25% 62%


When enterprises decide which applications and workloads stay on-premises and which ones to migrate, several factors come into play. These factors include cost-efficiency, security, performance and accessibility, and overall, the best outcomes. Other complexities that should be addressed are the issues of data governance, regulatory compliance, and cybersecurity.

To think hybrid is a tedious mission—but it is manageable, achievable, and worth the effort. Because today, for established organisations, IT is Hybrid IT.

of workloads run on on-premise non-cloud

infrastructure

Clouds account for 62% of workloads

Already IT is Hybrid ITSource: The Shape of Hybrid IT and How People Are Using It report by Dimension Data and 451 Research

http://www.dimensiondata.com/Global/Downloadable%2520Documents/The%2520Shape%2520of%2520Hybrid%2520IT%2520and%2520How%2520People%2520are%2520Using%2520It%2520infographic.pdf%20



Analyse

3


To become a fully digital enterprise, you should successfully develop and execute new technological initiatives. Your enterprise must have a holistic approach for conducting enterprise analysis, design, planning, and implementation. You should leverage practices and principles that will guide your organisation through the business, information process, and technology changes.

Put a greater focus on achieving effectiveness, efficiency, agility, and durability and to do so, you must perform an in-depth analysis of your current business structures and processes. This requires domain expertise in different areas, such as data centres, networking, and end-user computing. CIOs and their organisations must partner with service providers that have the capability, experience, and expertise to deploy solutions from on-premise to the cloud, or a hybrid combination, and make technology work for them.

In-depth Analysis of All Enterprise IT Aspects Is Key

Effectiveness

AgilityEfficiency

Durability

‘Most software today is very much like an Egyptian pyramid with millions of bricks piled on top of each other, with no structural integrity, but just done by

brute force and thousands of slaves.’— Alan Kay

A purpose or business motivation sets the desired outcome, informing strategy and context.

The ‘built and tested’ application, data and infrastructure components are aligned with organisational training and operating manuals to deliver the outcome.

Guiding principles like a policy statement or industry accord drive strategy to conceptualisation across each dimension.

The conceptual designs of data models, process scope, application concepts, functions, roles, and infrastructure needs drive the underlying business and IT architectures.


‘The impact of one change on others must be carefully

considered.’

The Impact of Change

Data, process, application, organisation, and infrastructure are inexplicably linked through strategy, concept, and architecture to implementation. A change in any of these dimensions has a downstream or knock-on impact on one another.

For example, a change in the application architecture to make use of a SaaS provider for financial budgeting and risk reporting that sources data from an on-premise SAP system will require IT to consider the interoperability and security of these systems across a hybrid IT landscape.

Secure

4

Security threats—from natural disasters to malware to hackers—are part and parcel of doing business in today’s hyperconnected world. Thus, your business needs more than just additional technology; it needs a security platform—one that encompasses business continuity, disaster recovery, and cybersecurity, among others.

Guaranteed business continuity is no longer a feature—it has become a requirement, especially for large enterprises. You must be well versed in preparing for service interruptions or loss of critical business systems. Your BCP and DR strategies should be aligned with current processes and customer expectations. Though implementing disaster recovery measures can require substantial investments in dedicated infrastructure, that can now be avoided by leveraging cost-effective cloud-activated disaster recovery plans.

Business Security Is Non-Negotiable

‘If you think technology

can solve your security problems,

then you don’t understand the

problems and you don’t understand the technology.’

— Bruce Schneier

Infrastructure Security

BCP & DRGovernance, Risk,

& Compliance

Data LeakagePrevention

Personal & CorporateInformation

Secure Mobility


Further, hybrid IT poses a new challenge in that interoperability requires service management of critical configuration items across platforms that you own and get service from. With the growth of FinTech start-ups providing cloud-enabled PaaS offerings like payment gateways enabled by web services, companies that use these technologies must extend their continuity and recovery plans to services outside the realm of their internal IT influence. Many years of successful ITIL-aligned service management has enabled Dimension Data to learn and adapt to these interoperability needs. (As an example, in two weeks we helped a business move their retail operations to a managed hybrid cloud environment with the ability to scale up or down as needed in line with marketing campaigns.)

Other significant security concerns that must be considered include: data leakage prevention; governance, risk, and compliance; infrastructure security; and secure mobility. Any business that’s transitioning to become a digital enterprise should not overlook any of these aspects and must have the right platform in place to avoid compromising its most important assets: its personal and corporate information.

Innovate

5


Continuous innovation is the key to staying ahead of the competition. Enterprises, big and small, should reduce cost, improve cash flow, and increase resource utilisation by monitoring critical business areas. Real-time analysis of KPIs, process compliance, and risk issues can help enterprises, including yours, in identifying opportunities for efficiency gains and improvements in the supply chain, working capital, retraining, and more.

Transform to Survive, Innovate to Thrive

Cost

Cash flow

Utilisation

Innovation

‘Innovation is the only way to win.’— Steve Jobs


The most successful modern enterprises thrive because they adapt to the shifts in the marketplace and incorporate new technology solutions into their culture and operations. These new innovations—driven by Blockchain, Bitcoin, Digital, Customer Centricity, Cyber, Social and Hybrid—are forcing financial institutions to rapidly activate change across their IT landscape:

Automation in areas of payments processing, financial postings, HR policies and workflow, ‘core banking platform’ workflow automation, etc.

Improved digital channel provisioning and management, including secure authentication beyond 3FA/2FA

Increased use of advanced and predictive analytics in fraud detection, credit risk modelling, data security and integration, etc.

Enabling and/or extending automation in application management beyond the needs of improved test and deployment management

Optimising service management and integration of ‘as-a-service’ operations across multiple internal and external environments/service providers

Accelerate Your Digital

Transformation

6


Today’s businesses are starting to reimagine their operating models based on digital capabilities to create the workspace for tomorrow: a hyperconnected enterprise that can achieve faster and better business outcomes.

To jumpstart their digital transformation, leading organisations have moved to the cloud and adopted business intelligence and analytics into the core of their business processes. They have also started conducting business at the end points—with customers and partners using mobile, analytics, and social media technologies to make decisions and execute transactions—as a means of transitioning to a truly digital enterprise.

A Truly Digital Enterprise‘Digital

Transformation is a multi-year

journey.’


A truly digital enterprise

is one that can make

decisions based on

intelligent data; of

connecting customers,

colleagues, and suppliers;

of innovating products,

services, and business

and operating models;

and of automating manual

labour through technology.

To make this transition to

a truly digital enterprise,

you need to rethink and

reshape the following key

aspects of your business:

Improved, real-time management

information systems and

decision making

Improved targeting with

customer insights

Full straight-through processing and automatic provisioning

Seamless multichannel experience

Whenever, wherever service propositions

New digital products and services

Digital marketing with higher return on investment

Decision makingbased on big data

and advanced analytics

Automation of manual activity, replacing labor with technology

Connectivity with customers, colleagues, and

suppliers

Innovation of products, business

models, and operating models

Seamless integration into

third parties

Embedded/ automated

controls and risk profiling

Virtual servicing and administration

Source: Expert interviews; McKinsey analysis

Co-creation of new products

Digital augmentation of traditional channels

Customer experience

Product and service innovation

Distribution, marketing and sales

Digital fulfillment

Risk optimisation

Enhanced coporate control


In making this transition, your enterprise needs a technology partner that can provide end-to-end Hybrid IT management, with digital consulting and service management offerings across applications, infrastructure, integration, and ‘beyond the core’ interoperability. You will need a partner that has successfully helped businesses transform to digital enterprises through the migration or use and adoption of technologies such as SAP, Microsoft, Cisco, Dell EMC, Citrix, and Palo Alto Networks, among others. In collaboration, you should:

Establish a strategy for development and management of IT to support an evolving digital business model.

Assess and support the integration of new technologies into complex business landscapes.

Support and drive improvements in IT operations to achieve efficiency and cost optimisation needs.

Secure and reduce risk in IT platforms and operations.

Deliver business applications on-premise, or hosted, or in the cloud, or in a hybrid cloud managed service architecture.

30

The Statement on Standards for Attestation Engagements (SSAE) 16 is an attestation standard used by auditors to evaluate the internal systems of a service provider. ‘Systems’ are generally defined as the services provided, along with the supporting processes, policies, procedures, personnel and operational activities that constitute the service organisation’s core activities that are relevant to user entities.There are two types of SSAE 16 audits, Type I and Type II. SSAE 16 Type II evaluates the effectiveness of control procedures over a period of time, so the auditor looks to make sure the control procedures are being followed.

ISO 27001 certification are considerable. It does not only help ensure that the security risks are effectively managed, but also the adherence to the standards transmits an important message to your customers. ISO 27001 provides a prescriptive specification for an organisation’s information security management system (ISMS), which includes all of the policies, procedures, roles, responsibilities, resources, and structures that are used to protect an organisation’s information, as well as, the management and control of the security risks associated with the information.

Through the implementation of CSA STAR Certification, in addition to a compliant ISO/IEC 27001 information security management system, organisations can ensure that they have a full understanding of the risks involved and the business impacts. This allows organisations to put controls in place to protect business critical information.

When choosing your technology partner, you should look for these global certifications:


One cure for ‘digital fatigue’—where enterprises are tempted to just ignore their digital ambition and go back to what they were previously doing—is leveraging advanced technology solutions such as SAP S/4 HANA that deliver simplification instead of added complexity.

SAP S/4 HANA allows enterprises to build the innovative processes they need to succeed in the future. It enables CIOs to build a simplified core of the most essential scenarios, from finance to accounting, procurement, and manufacturing.

The Cure For Digital Fatigue


Enterprises have the option to deploy S/4 HANA in the cloud through the HANA Enterprise Cloud. A combination of on-premise software with cloud software, the SAP HANA Enterprise Cloud Platform provides the foundation and tools for managing the complexities of a hybrid environment. It provides an abstraction layer to build and deliver innovations without the need to give up the current practices that make your company unique.

For enterprises who currently use on-premise software from SAP and other providers and cloud applications for their CRM, HR, and procurement needs, the HANA Enterprise Cloud can become your bridge to S/4 HANA.


The HANA Enterprise Cloud platform allows you to move your mission-critical SAP offerings to a private managed cloud environment that can be customised using Applications Management Services and by leveraging the power of the SAP HANA Platform. You can decide how to scale the partnership and the role you want SAP to play in governance and life cycle management.

With the help of the best SAP HANA resources in the market, this approach will enable you to understand all aspects of your enterprise IT, establish a business continuity plan, and drive innovation in a hybrid IT environment. You can decide what stays on-premise and what moves to the cloud, how to manage customisations, integrations, security, and risks, and how to balance governance and innovation.

Take the Faster Route

Integrated across multiple technology towers

Consumption models

Consulting-led engagements

Platform-based solutions

Services-driven

Outcomes owned

GO

VE

RN

A N C E

S P E E D T O

I NN

OV

AT

ION

CUS

TOMER SAP

SLOWFAST

Dimension Data Value Proposition

Believe in Greatness

7


Now is the time to

understand, build, and

think hybrid.

Today, we live in a world where technology shifts paradigms quickly and infinitely. Everything is different; everything is digital. With the increased reach and capacity afforded by technology, enterprises now have the power to deliver better, faster, more directly and more cost-effectively than ever before. The best enterprise solutions for driving innovation, simplicity, and scalability in the future are now within reach.

This era is the time for collaboration, for building ecosystems and discovering new ways of doing business securely. This is the time where opportunity is global, ideas know no borders, and finance is more accessible in more places. The potentials of this era outstrip every preceding era tenfold. This is the time for greatness.

Technology and data are the keys that can unlock potential growth for your business. Dimension Data is committed to helping our clients do great things through technology. If you believe you can do anything, we’re here to help you do it.

To Brighter Outcomes

8


At Dimension Data, we help clients extract business value from their SAP investments. We provide guidance for their SAP-activated digital transformation. We guide and support their digital transformation journeys. We advise them on the right route to SAP S/4 HANA that maximises agility, flexibility and cost efficiency.

To Brighter Outcomes

Here’s what we offer our clients:

Expert consulting.Dimension Data has multiple business units with specialised domain

knowledge in data centre, networking, end-user computing, etc.

Reliable on-shore disaster recovery.Dimension Data can help you plan and execute your DR strategy

without having to build your own data centre.

High-performance cloud.Dimension Data has a cloud platform with more than 20 different

global locations.

Commercial flexibility.Dimension Data can support your growing business demands,

including SAP capability, financial innovation, etc.

Platform agility.Dimension Data allows your business to innovate faster and

experiment more to advance your business.


SAP, the world leader in enterprise software applications, partners with Dimension Data to help today’s enterprises accelerate their digital transformation journey.

SAP Partners with Dimension Data

Let us help you achieve greater things in the

digital era through our business and technology

innovations:

Digital Infrastructure

Hybrid Cloud

Workspaces for Tomorrow

Cybersecurity

Dimension Data is the leading, end-to-end, SAP Hybrid IT management company, across both SAP infrastructure and applications, helping our clients to transform to digital enterprises through the use and adoption of technology.

We differentiate our services in our client experience, the quality and values of our people, the sophistication and automation of our SAP delivery platform, our geographic footprint and our broad Dimension Data client base – more than 250 SAP clients and growing across our international client base of 6000+ clients.

Certifications and Expertise

Enable business value extraction from SAP technology with Hybrid IT deployment models across on-premise, private cloud, hybrid cloud, public cloud and hosted

Enhance customer experience and collaboration

Improve end-user computing and security

Leverage IoT, big data, and digital technologies

Help clients respond smarter and faster with technology at the core of digital business

Deploy best-in-class network as the platform through next-generation data centre

Business Capabilities

SAP Certified in our core SAP Services

Certified with ISO 27001 ISO 27018

Aligned with ITIL v3

Accredited with SSAE-16 and SOC

Experts in:• HIPAA• EU Safe Harbor• FDA Title 21

• CFR Part 11• SOX• Gramm–Leach–Bliley Act