Henrik Trepka, Group CIO, ISS A/S

Microsoft Next – All about Cloud

29. oktober 2014, Bella Center

Cloud-løsninger giver ISS konkurrencefordele

Agenda

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Introduction to ISS

Which Cloud?

ISS and Cloud

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ISS Vision

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World’s Best Outsourcing Provider

ISS Ranking since 2008

2008: 31

2009: 7

2010: 6

2011: 2

2012: 5

2013: 1

2014: 1

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Financial highlights of 2013

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Revenue

78,4592012: 79,454

Operating Profit

4,3152012: 4,411

Operating Margin

5.5%2012: 5.6%

Number of employees

522,0002012: 534,373

What we do

49%Cleaning29,583,169,977 total m2 of Cleaning

Contracts served. Globally. Annually.

Includes IFS Contracts.

11%Catering1,164,547 total meals

prepared per day. Globally.

8%Support<45,000 Receptions manned.

Globally. Daily.

8%SecurityMore than 498,341 h training

hours within Security Service

19%PropertyMore than 7,000 employed engineers.

4%Facility Management3 million work orders generated

per year in the ISS Facility

Management System.

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Who we do it for

End-market exposureFocused on the segments most receptive to our

offering. Diversified exposure to end-markets.

Delivery modelSingle service excellence with IFS upside. IFS 26%

Global presenceA strong mix of Europe and Emerging Markets

Client sizeMargin upside through optimisation of the

customer base. Focus on larger clients

Business Services & IT

Industry & Manufacturing

Public Administration

Healthcare

Retail & Wholesale

Transportation & Infrastructure

Energy & Resources

Single services

Multi-services

Integrated Facility Services (IFS)

Key Accounts

Large & Medium

Small

Route based

Western Europe

Nordic

Asia

Pacific

Latin America

North America

Eastern Europe

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How we deliver our value proposition

We self-deliver services with our own employees

who apply our processes and enabling technology

People

To deliver the service

Processes

To ensure quality and consistency

Technology

To automate and ensure transparency

INSIGHT@ISS

FMS@ISS

CRM@ISS

CRAM@ISS

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ISS global IT architecture

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Builds the future

Drives Differentiation

Drives Operational

Efficiencies

Global network

Office365

Security

Standard/ Comodity

Unique

INFRASTRUCTURE

SYSTEM OF RECORD

SYSTEM OF

ENGAGEMENT

INNOVATION

ISS global IT architecture is build upon a global standard infrastructure as basis for a number of unique ISS systems

Foundation of IT

operation – Utility

Mindset

Purpose Example

ERP

FMS@ISS

INSIGHT@ISS

Emerging mega trend – Internet of Things

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Source: www.cognizant.com/smac

We are entering the 3rd IT revolution for enterprises

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60’ & 70’ – Industrial Era

Role of technology

Key source of data

CIO Challenge

Process Automation through ERP

Process standardisation

Data on internal enterprise

processes

Apply new computing models to

established ways of doing

business

Align IT to Business

Rise of the Internet

Coordination and integration

across individual activities to

global supply chains

Data on cross-enterprise

processes

Apply new computing models to

established ways of doing

business

Align IT to Business

80’, 90’, 00’ – Information Era

IT as integral part of the Product

itself (IoT)

Business is now technology and

technology is the business

Multiple types of data from each

product and customer

New technology is creating new

business models

IT is an integral part of business

(and key attribute of product) –

and at the heart of product

development – Value Proposition

2015 ->

Michael Porter: New Technology Stack for smart connected products

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Identity

and

Security

Product Cloud

Connectivity

Product

External

Informa-

tion

Sources

Integration

with

business

systems

Source: Harvard Business Review November 2014

The Sportsmarket is changing through integrating sensors in

products.

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Product + Connectivity + Cloud

No longer a shoe product – but an IT product

to improve personal physical health

The New Stack creates new business models

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Product + Connectivity + Cloud

No longer a dental product – but an IT product

to improve personal dental health

Parent ?

Our (old) world

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The ISS 2020 Vision series:

New Ways of Working is changing the role of the office

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Smart Buildings is changing Facility management.

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Product + Connectivity + Cloud

Sensors connected to the ISS Cloud

ISS Service Cloud

Integration of ISS sensors to exisiting operational systems

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INSIGHT@ISS

FMS@ISS

Service Performance

Service Delivery

Product + Connectivity + Cloud

No longer a ”cleaning” product – but an IT product

to improve customer staff satisfaction and

customer asset utilisation – and transparency

ISS Service Cloud

Our vision: Workplace will become an experience, not a facility

ISS Key customer value proposition enabled by the New

Technology Stack :

Provide service where and when needed based on data

Transparency to service delivery – globally, instantly

Improve service quality – from reactive to proactive

Ease of requesting service - Multi platform ”consumer”

Maximize utilization of customer assets based on evidence

Energy optimisation through analytics of building use

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Through ISS global self delivery model – and

Cloud - we can deliver a unique value

proposition and transparency to Facilities

Services

If we started all over today, would we spend resources building this competency from scratch?

1Are we so good at this, that other companies would likely pay us to deliver this service?

2Is this area the part of our business from where we expect to source our future talent and leaders for our overall business? 3

Taking out complexity through being clear on our core

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Product Cloud

for stronger

value

proposition

ISS & Cloud – Enabling topline growth and lowering cost of IT

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Builds the future

Drives Differentiation

Drives Operational

Efficiencies

INFRASTRUCTURE

SYSTEM OF RECORD

SYSTEM OF

ENGAGEMENT

INNOVATION

Utility IT service

Product Cloud

Infrastructure

cloud for lower

cost and

flexibilityInfrastructure Cloud

Summary: Cloud will have a profound impact on Facility Service

Internet of ”ISS Things”

Instrumentation of buildings – ISS sensors

Integration with customer systems – power, cooling… control systems

ISS Service cloud

ISS end-to-end IT security

ISS Customer value:

Enhanced customer service experience

Better customer asset utilisation

No need to focus on non-core activities – evidence

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ISS Service Cloud

Recomendation: Go Cloud …Internet of YOUR Things

Infrastructure Cloud

Is just another way of sourcing a (commodity) IT service

Get started NOW… build your experience – you need it for the future

Product Cloud:

How to use sensors and the cloud in your product/services? Instrumentation?

How will your industry structure change?

IT has to be agile – and drive governance of enterprise architecture… (Cloud services could drive mushrooming business solutions)

CIOs Role

Get business attention to the new IT (R)evolution – IT engaged in strategy execution

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Questions – during the break…

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“The third wave of IT-driven transformation thus has the potential to be the biggest

yet, triggering even more innovation, productivity gains, and economic growth than the

previous two”

“Smart, connected products will have a transformative effect on industry structure”

Michael Porter, HBR, November 2014

“We see five key early verticals of adoption (Wearables, Cars, Homes, Cities, and

Industrials) as test cases for what the IoT can achieve.

Focus on: new products and sources of revenue and new ways to achieve cost

efficiencies that can drive sustainable competitive advantages.

Key to watch: privacy and security concerns – a likely source of friction on the path to

adoption.

Just as the first two waves of the Internet era led to profound changes in the economy, the

internet of Things will create new winners and leave in this wake a host of losers based

on companies’ abilities to adapt to a new world where things are connected.”

Goldman Sachs Equity Research (September 2014): The Internet of Things: The Next Mega-Trend

The End

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