Industry Evolution & Impact on Enterprise IT

Industry Evolution & Impact on Enterprise IT Strategy, Operating Model & Organizational Development Tom Fountain Global CIO, Bunge Ltd.

Agenda • IT Vision & Strategy • Industry Evolution • Impact on Enterprise IT

IT Vision: “Smart Operations” – Converting Intelligence into Recognized Business Value Trading Logistics Orig. / Distrib. Crushing/Refining “Comprehend Market Conditions and Exploit with Aggregation, Scale, and Global Reach “Identify Pricing Mis-Alignment and Exploit with Risk-Adjusted Strategies” “Run Plants with Optimal Balance of Production, Maintenance, Capital Expansion, and Safety” “Match Supply / Demand with a Balanced View of Transportation Options, Market Pricing, and Operational Risk ” Smart Operations Sense Analyze / Optimize Respond Integration Intelligence Optimization Orchestration • Customer • Partner • Supplier • Internal • Customer • Partner • Supplier • Internal • Identify Alternatives • Trade-Offs w/Constraints • Select Optimal Response • Data • Information • Knowledge “Acquire timely and complete information upon which we can act” “Develop insight into the past, present, and future behaviors of Business Assets” “Select an Optimal Business Response from among Valid Alternatives” “Manage the Actions of Internal and External Assets to Deliver Value” “Smart Operations” – The Optimized Execution of Managed Business Processes Enabled by Value Chain Integration and Business Intelligence

IT Mission: “Improve the Speed, Cost, and Quality of Business Decisions, Transactions, and Processes” (IT v2.0) IT v2.0 Innovation & Growth (New Products, IT-enabled Services, New Business Models, etc ) Business Value (Return on Investment) IT Value to the Business Future IT Position IT v1.0 Cost(Total Cost of Ownership) Operations(Service Level Achievement) Current IT Position Time Expand the IT Mission through People, Process, & Technology Transformation

Enterprise Architecture: Mapping Core / Context • Enterprise IT: Owns the Stack • Alignment with Business • Architecture Design • Sourcing • Integration • Performance Mgmt • Efficiency Integration / Collaboration Process / Data • Core Systems & Services • Built or Bought & Integrated by Enterprise IT • Elements may be Cloud-based Applications • Context Systems & Services • Bought & Integrated by Enterprise IT • Often Cloud-hosted Infrastructure IT Must Re-Think Core v Context, Delivery Model, Architecture, Integration

Evolution of the IT Industry Time • Over Time… • We left a Single Vendor model to unleash innovation / competition • Best-of-Breed drove the build-out of a world-scale industry • Complexity of competing standards, integration challenges, expertise development, etc led to late / failed programs, high IT costs, and frustrated customers • Cloud-based Service Providers enter the mix to deal with complexity, scale, and flexibility shortcomings of Best-of-Breed • Integrated stacks make a comeback as multi-layer integration / optimization provides new price/performance opportunities and helps with operational complexity Mainframe Client/Server Web Today Best-of-Breed (Multi-vendor, Layer-by-layer) Integrated Stacks (Single vendor – HW/SW) Cloud-based (Public, Semi-Private) Relationship with the Service Provider Relationship with the Technology Provider New Choices, New Players, and New Challenges

Pros & Cons of these New Paradigms Pros Cons Best Use Situation (?) Best-of-Breed • Accumulated Experience • Vendor Competition • Innovation on a layer basis • Open Standards • Mismatched pace of change across layers • Multi-vendor integration complexity • Multi-vendor management complexity • Broad Deployment • Need Low Cost / unit • Manageable integration • Negotiable Savings • e.g. Web Servers • Scale Economics • Variably priced services • Low Upfront Investments • Best-of-Breed Offerings at the Service Level Cloud-based • Security / Privacy • Integration with Legacy • Maturity of Offerings • Lack of Pricing, Management, Tech Standards • Context System • Modest Security (or less) • Standard Functionality • Highly Variable workload • e.g. HR, AP/AR • Breakthrough Price / Performance • Single Vendor responsibility • Eliminates layer integration challenges Integrated Stacks • Potential Vendor Lock-in • Potential Alignment Issues with Vendor Strategy • High Strategic Business Value (Core) • High Performance / Security • High Reliability • Slower Pace of Customer Change • e.g. High Performance BI As Usual One Size Does not Fit All…

Vendor Offerings – Integrated Stacks Cloud-like Characteristics in your own Datacenter

A Future View of the World??...Mix/Match Your Optimal Set Environment Mgmt Svcs Engagement Integration Security Pricing Mgmt Tools Business Execution Svcs (XaaS / Private) Partner Performance Mgmt Business Process Mgmt Business Activity Monitoring Analytical Svcs (BIaaS / Private) Reporting Analysis Model-Building Simulation Optimization Models (MaaS / Private) Econometric Financial Weather Logistics Commodity Data (DaaS / Private) GIS Markets Economic Credit Companies Regulatory Applications (SaaS / Private) ERP CRM HRIS Trading Finance Legal App Services (ASaaS / Private) B2B BPM ECM Collaboration EAI Search Portal IAM Infrastructure (IaaS / Private) Network Storage Servers An Ecosystem of Capabilities within a Robust Operating Framework

Opportunities A Transformational Opportunity…IT must be prepared in all areas

Risks & Challenges New Classes of Risk for IT including “Services” Integration & Strategy Alignment

Strategies & Actions A Proactive, Highly Business Aligned, & Industry-savvy Strategy Maximizes Probability of Success

Q & A Questions Please… Help Me Think Smarter about the Future…

Industry Evolution & Impact on Enterprise IT