1. Optimizing the “Digital” Supply Chain for Retail with Hybrid IT
Erik-Jan van der Wurff, 27 June 2017

2. Digital Customer Experience
The new breed of Always Connected Shoppers expect a consistent user experience across all digital channels and devices
Customer 360
Integrating Offline – Online
In-Store Coupon
Store Navigation
Service Provider Referral
Click and Collect
Digital Shelves
Confidential

3. IT Strategy: the role of IT changes in the (more) digital enterprise
~8500 Stores, Products & Logistics
~40 Global Warehouses, Products & Logistics
Global data centers, Digital Logistics & Services
Physical Assets/Inventory
Digital Assets/Capital
Retailer
E-Retailer
[Cloud] Service Provider
Traditional Enterprise
Digital Enterprise
IT supports the Business
IT = the Business the Business = IT
IT is a service provider & Business/Innovation partner

4. HPE IT vision for the (more) Digital Enterprise?
11/5/2017 8:17 PM
HPE IT vision for the (more) Digital Enterprise? $↑
Business model innovation $↑
Business operations transformation $↓
IT operations transformation
Moore, Geoffrey. “Zone to Win”. Diversion Books, 2015.
Presenter Name

5. HPE IT vision for the (more) Digital Enterprise?
11/5/2017 8:17 PM
HPE IT vision for the (more) Digital Enterprise? $↑
Business model innovation $↑
Operational Technology (OT)
Business operations transformation
Information Technology (IT) $↓
IT operations transformation
Moore, Geoffrey. “Zone to Win”. Diversion Books, 2015.
Most of new Operational Technology is IT based
More current CIO(’s) will report to CEO or COO*, less to CFO
*~60% of Fortune 500 companies have no COO
Presenter Name

6. HPE IT vision for the (more) Digital Enterprise?
11/5/2017 8:17 PM
HPE IT vision for the (more) Digital Enterprise? $↑
Business model innovation $↑
Operational Technology (OT)
Business and IT Operations will slowly merge Run an optimized, [digital] supply chain
Using a Hybrid IT Business Model
Business operations transformation
Information Technology (IT) $↓
IT operations transformation
Moore, Geoffrey. “Zone to Win”. Diversion Books, 2015.
Most of new Operational Technology is IT based
More current CIO(’s) will report to CEO or COO*, less to CFO
*~60% of Fortune 500 companies have no COO
Presenter Name

7. Case for a connected platform: sub-optimal traditional approach
IT & OT Projects
Too often…
Disparate projects: starting from same budget and landing in common destinations
Duplicate functionality and connectivity in projects
Dedicated infrastructures for each project
Design, build and operational silo’s
Resulting in
Higher costs (duplicate spending)
Incompatibilities and duplication in customer & product data
Security challenges
Complex dependencies, errors late in the integration cycle within/between stores and/or data centers
Little and slow innovation
Worsening with expansions and acquisitions…
Store
Company budget
Data Center
Build & Test
Infra
Deploy
Design
Operations

8. HPE POV: a connected innovation platform for retail
Improving all disciplines of IT service delivery, integrating IT and OT
Optimized Hybrid IT Supply Chain
Private cloud
Virtual Private cloud
Public cloud
IT & OT Projects
Intelligent, Mobile Edge
Store
Check & QA
Build & test
Package & archive
Release & deploy
App
App
App
Operations tooling
Company budget
PaaS
IaaS
Composable, Hybrid IT
Continuous integration & deployment pipeline
Data Center
Integrated Dev/DevOps
Micro services
Service centric
X as a Code
Converged OT and IT
Service defined Hybrid IT Platform

9. Connected Innovation Platform for retail
Converge modernization and innovation projects on a common platform
Modernize existing technology & workloads
Rapid introduction of innovation technology
POS systems
Store networking (e.g. 4G backup)
Back-office modernization
Refresh store hardware
Reducing maintenance costs
Modernize video systems to digital
Modernize & integrate store operational technology (AC, cooling, lightning, opening doors, signage, shop and fitting rooms infrastructure)
Self-service checkout
Digital fitting rooms with virtual reality
Click & collect shopping
Digital Video analysis
Digital Signage
Location aware services for consumers
Scan & go check-out

10. Hybrid IT Delivery Strategy – Conceptual architecture
Business Process Digitization Strategy
Cloud Hosting Ready - Gen 2
Cloud Aware – Gen 2.5
Cloud Native – Gen 3
Traditional - Gen 1
API
Hybrid Service Catalog & Market Place Portal
API
Service Brokering Orchestration
On Premise
Off Premise
Workload monitoring/analysis  Hybrid Supply Chain Optimization
Traditional Hosting
Physical
Virtual
Private Cloud
Managed Private Cloud
Public IaaS/PaaS Cloud
SaaS
Hybrid IT
Supply
Scale up not Out
Stable/predictable
Heritage Application Architecture
Buy base and Rent Peak
Sensitive/Secure and Mission Critcal.
Cloud Application Architecture (Stateless) APIs
Buy not build
Transient workloads/ on demand
Web based application architectures

11. Case Study
Otto Group

12. Otto Group: more than 123 companies revenues over 12bn.€
Modernize service delivery – accelerate innovation – decrease cost
2015/16
Trade and service group with essentially 123 companies in Europe, Asia and North America
Employees
Quantity
49.597
Revenues
Mio. EUR
12.104
EBIT
Mio. EUR
259
Entire group
Employees
Quantity
23.866
Revenues
Mio. EUR
9.588
Multichannel-retail $
Employees
Quantity
7.805
Revenues
Mio. EUR
678
Financial services
Employees
Quantity
17.547
Revenues
Mio. EUR
1.838
Services (e.g. Logistics)

13. HPE Transformation Workshop
How HPE and Otto Group IT started the transformation
PLAN TRANSFORMATION RIGHT AND EFFECTIVE
1. Establish a Sense of Urgency 2. Forming a Powerful Guiding Coalition

14. HPE Future State Definition
How HPE and Otto Group IT started the transformation
PLAN TRANSFORMATION RIGHT AND EFFECTIVE
2. Forming a Powerful Guiding Coalition Creating a Vision

15. HPE Transformation Roadmap Planning
How HPE and Otto Group IT started the transformation
PLAN TRANSFORMATION RIGHT AND EFFECTIVE
3. Creating a Vision 4. Communicating the Vision
reduced readability due to customer insights

16. Otto Group IT and HPE establishing Hybrid IT operating model
11/5/2017 8:17 PM
With growing global businesses that span online, catalog and retail stores, Otto Group is driving innovation in digital shopping experiences. To speed the creation of new services, Otto Group IT set out to modernize its service delivery model. Engaging HPE experts to design and implement a hybrid IT operating model based upon HPE’s proven transformation methodology, Otto Group IT now provisions new infrastructure services 90% faster, accelerating innovation – and reducing operating costs by 40%.
Youtube video
Otto Group IT and HPE establishing Hybrid IT operating model
Presenter Name

17. HPE winning formula for Otto Group
Expertise
Innovative Approach
Software-defined strategy
Ecosystem -driven
Expertise and experience in the infrastructure architecture and technology to power hybrid IT.
Beyond technology, with designs for service portfolio, organization and culture, operating processes, software development processes and governance
HPE Unified Transformation Framework (UTF), drawing on the wealth of experience gained from the numerous transformation programs HPE has carried out over the years
Future state definition workshops, bring a structured approach to their unique Hybrid IT vision
Automation and standardized hybrid delivery model for 50% of the current IT services.
Integrated solution with Otto’s growing ecosystem of partners, supporting both traditional and private cloud IT services.
“Had we not been able to work with Hewlett Packard Enterprise to implement this process of total transformation, we wouldn’t be around today.”
– Alexander Hauser, Vice President, Otto Group IT

18. HPE Strategy for the modern enterprise
Accelerating next
We have the expertise to make it happen
We make hybrid IT simple
We power the Intelligent Edge
To power your right mix to accelerate innovation
To create your next generation of digital experiences
To accelerate your outcomes
from digital transformation

19. Thank You