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Journey to the Architecture of the 21st Century

Journey to the Architecture of the 21st Century

11th May 2018


Taken from LA CIO Event, March 7th-8th 2017

Kevin Niblock, President & COO, North America, Software AG

Who is Software AG?

Software AG are a global leader in the digital world:

  • More than 70% of the Global 1000 companies are customers of Software AG
  • 2 million+ Developers
  • 2.5 million+ Users
  • Around 1 billion Euros revenue
  • 4,500 employees globally

Customers benefitting from 21st Century Architecture include: AirFrance, ANZ, Kiabi, MyHermes, P&O Ferries, Coca Cola, Pfizer, ATB Financial, HSBC, PetroChina, ING, Philips, aselsan, Mapfre, Lufthansa, Staples, FedEx, Fujitsu, Nissan, TMobile, Vodafone, citi, DB


Software AG Portfolio Brands include: Apama, Adabas, Alfabet, Aris, Webmethods, Natural, Terracotta

Digitalisation Architecture

Digitalisation is impacting your customers:

  • 2 billion internet users worldwide
  • 50 billion connected devices by 2020
  • 40% growth in data generated per year (40 trillion Gb by 2020)
  • 75% of Internet change arises from conventional industries

Digitalisation is happening everywhere, impacting customers and business

Phones, Digital Watches, Location services, In car bluetooth, Home internet, Facebook, Cloud, Robotics, Drones, AI, VR, Credit Card

Digitalisation is impacting your business

  1. Technology
  2. Media & Entertainment
  3. Retail
  4. Financial Services
  5. Telecommunications
  6. Education
  7. Travel
  8. Manufacturing
  9. Healthcare
  10. Utilities

What’s your digital strategy?

Ask yourself 5 questions

  1. Will digital technology change the business you are in?
  2. How could digital technology improve the way you add value to the businesses you are in?
  3. Could digital technology change your target customer?
  4. Does digital technology affect the value proposition to your target customer?
  5. How can digital technology enhance the enterprise capabilities that differentiate your company?

Digitalisation is impacting your customers

Customer expects outstanding experience and has choices

  • Always accessible and fast
  • ?Personalised and contextualised offerings
  • Seamless experience
  • Payment methods
  • Digital self service
  • Connected devices

Technology challenges in a digital business

New levels of software capabilities

  • Connectivity- Integrate with new technologies, e.g. mobile, IoT, API, Cloud
  • Scalability- Meet increasing number of users, devices and peak workloads
  • Analytics- Make right-time decisions on real-time data and event streams
  • End-to-End- Develop process-controlled application across silos with operational transparency
  • User Experience- Provide seamless customer journeys and engaging Web & Mobile user interfaces
  • Compliance- Meet new regulations and better manage risks

Why Traditional Approaches do not work

Understanding the need to change

  • Not Connected- Separation of business and IT leadership and strategy
  • Not Differentiated- Limitations of packaged applications to innovate
  • Not Flexible- IT landscapes and architectures are too complex

Digital Business Platform- Building Blocks

Business & IT Transformation- Manage and govern the change


Goes into many areas:

  • Analytics & Decisions- Enabling faster and better decisions
  • Process- Combining people, business and things
  • Integration- Connecting multiple endpoints
  • In-Memory Data- Providing performance and scale

Platform Use Case for IoT

Predictive Maintenance

  • Continuous analysis of operational metrics to maintain & service equipment or infrastructure to prevent breakdown
  • Save costs by minimizing downtimes    
  • Customer Example- Bosch, Lexmark

Connected Customer

  • Analyse customer behaviour & location in real-time to engage better with them
  • Create revenue from context-aware, multi-channel, personalised offerings
  • Improve customer loyalty and satisfaction
  • Customer Example- DBS, OCTO, Crown

Smart Logistics

  • Track assets in real-time for situational awareness & improved decision making
  • Optimize the supply chain end-to-end
  • Increase customer satisfaction
  • Customer example- Johnson & Johnson, Royal Birkewager

Smart Metering & Manufacturing

  • Live sensor data analysis for real-time insights into production environments
  • Save costs by improving product quality (minimize waste)
  • Increase revenue by providing higher quality assurance and better service to customers
  • Customer Example- Viessmann, Coca Cola, First Energy, Bosch

Benefits of Digital Business

  • Disrupting existing business operations
  • Blurring the digital and physical worlds
  • More influence of customers
  • ‘Supermaneuverable’ business processes
  • Agility, speed, scale, responsiveness
  • Combining people, business and physical things (context)

So what should established companies do?

  • CEOs have to think Software first, in every industry
  • Make your products smart >> IoT
  • Expand IT landscape from app-silos to microservices architecture
  • Implement supplier agnostic IoT framework for new digital business models
  • Transform the CIO function into a CDO function, bridging business and IT
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