2010 STKI Summit

ENTERPRISE 3.0: LIQUID MODERNITY

Dr. Jimmy Schwarzkopf
Research Fellow

jimmy@stki.info

- “ Tell me a fact and I will learn it tell me a truth and I will believe it but tell me a story and it will live in my heart forever” Indian Proverb

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We are at one of those moments …

SPEED
Infinite bandwidth and going for realtime data

SCALE

SENSORS SOFTWARE
Radical change in data analysis

New kinds of data Unprecedented processing power and storage sizes r

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Microsoft CEO Steve Ballmer : CES keynote speech 6/1/2010

-"The fact of the matter is, this is not a downturn, this is a bit of a reset”4

Enterprise computing is headed for “massive changes”

• “We will see radical changes in hardware technology this year (2010) and SAP is more than prepared to take advantage.”

• He cited the following components:
– super-large in-memory systems – parallel computing – on-demand software – cloud computing – mobile phones
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Virtually free and unlimited: bandwidth and storage • Storage and bandwidth: are improving performance and cost efficiency even faster than processor speed is .

• The marginal cost is falling to practically zero.
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What do we carry in our pockets ?

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Liquidity: shift from fixed centers of power to
mobility and the consumerization of technology

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Passage from "solid" to "liquid" modernity
• Social forms and institutions no longer have enough time to solidify and cannot serve as frames of reference and virtually no distinctions between what we do to live and what we do to work. Individuals have to splice together an unending series of short-term projects and episodes. In liquid modernity the individual (under conditions of uncertainty) must:
– be flexible and adaptable – be constantly ready and willing to change tactics at short notice – abandon commitments and loyalties without regret to pursue new opportunities

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Passage from "solid" to "liquid" modernity
• Social forms and institutions no longer have enough time to solidify and cannot serve as frames of reference and virtually no distinctions between what we do to live and what we do to work. Individuals have to splice together an unending series of short-term projects and episodes. In liquid modernity the individual (under conditions of uncertainty) must:
– be flexible and adaptable – be constantly ready and willing to change tactics at short notice – abandon commitments and loyalties without regret to pursue new opportunities

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Enterprise 3.0
• Enterprise 3.0 is about the • Enterprise 2.0 is the use radical (liquid) changes of emergent social because of convergence: software platforms:
– technology – business – management trends – within companies – between companies and their partners – between companies and their customers.

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Enterprise 3.0: • Bold business is coming back
– Smart and creative actions – Innovative technologies – Fresh innovations

BUSINESS AS UNUSUAL

• Re‐thinking: will not be ”business as usual”. • A radical and agile mind is emerging that will surprise the old business guard.
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The ability of businesses to analyse and act on data is a competitive skill.

IT is not strategic: so CIOs will be reduced to technology caretakers and vendor managers

2010- ?

CIOs of the future shall be strategic business leaders

IT matters: CIOs will be called upon to both innovate and automate.

and technology
experts.
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CIOs evolution into Enterprise 3.0:
• IT 1.0: Focused on running the IT organization,
achieving IT operational excellence and providing reliable, effective services

• IT 2.0: Focused on creating change through process
transformation and a close partnerships with business operations (plus IT 1.0)

• IT 3.0: Focused on driving strategy for competitive
advantage through activities that face across the enterprise and externally (plus IT 2.0)

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For CIOs, 2010 is a year in which their very profession will be redefined permanently
• from one of internally oriented focus on:
– processes – systems

• The roles of CIO and COO will overlap when IT assumes more responsibility for:
– executing business strategy – managing operations – exploiting opportunities

• to one of emphasis on :
– driving new revenue – engaging more intimately with customers – simplifying every aspect of the company’s operations.

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2010: CIO business goals
Improvement of “daily” processes
• Reducing costs • Optimizing/consolidating processes • Optimizing productivity • New analytics usage • Risk management and governance

Improving customer relations Enterprise Service Resilience Innovation

•Delivering a better service experience •Strengthening customer trust •Increase repeat customer business

• IT services at 99.99% reliability • Allowing technology consumerization • Customers • Employees

•New products •New markets •Manage change needs ( training and quality )

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Customer Responsiveness
• RESPONSIVENESS—THE NEW GOLD STANDARD
– emphasizing the importance of customer responsiveness as a measure of success relative to a traditional focus on service availability

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How different are they

≠ consumerization ≠ commoditization ≠ ≠ interchangeable ≠ standardization ≠
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Consumerization
New technology to the consumer market ahead of business markets.
1970s > 1990s > 2010s Defense>business>home

Home based IT is more capable than that provided in their workplace ?

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Commoditization and Interchangeable
• market based on undifferentiated products • Commoditization usually leads to lower prices since undifferentiated products produce perfect competition • Some technology products are certainly becoming interchangeable but what's really commoditizing? • Not software, not hardware, not services, ONLY broadband • False commoditization can create substantial risk when premier products (substantial additional value to offer) are more expensive . don’t confuse INTERCHANGABLE and COMMODITIZATION and then STANDARIZATION
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MEGAtrend: Cloud computing

What is happening today?

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CompTIA’s December 2009 survey (CIOs multinational)

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Technology adoption life cycle

Early Adopters The Chasm

Mass Market Adoption

Late Adopters

Adapted from Geoffrey Moore’s “Crossing the Chasm”

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Technology Adoption Life Cycle
Applications
• • • • • • • • • Analytics (BI), event and data mining processing BPM (Business Processes) Risk Management Compliance and governance Integration of applications (SOA and mashups) Unstructured data management and storage Context/content WEB 3.0 Core application evolution
IT Management Innovation Technologies Innovation Application Innovation

Technologies
• • • • • • Virtualization Convergence Industry in a box Mobile End user computing Security

IT Management
• • • • Complexity Data Center Cloud Computing Talent replacement and augmentation • ITIL V3

Chasm Chasm

Growth: Digital Agenda
Broadband related growth (innovation) will be the big differentiator in 2010-2012

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2009: one of the worst years in history

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Symptoms of IT complexity
• Software crashes due to • Incompatibility between incompatibility of data, files, vendor software packages software, or network protocols. due to lack of standards. • Frequent but necessary • Long timeframes to solve the software upgrades resulting problems causing software in errors and incompatibility crashes. problems.

• Long timeframes to test and install new applications because of integration problems.

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IT complexity tax
Moore’s sayings: • Moore's Law : states that computing capability increases 1 percent per week. • Moore's Flaw : keeping up with this flood tide of innovation quickly becomes too difficult (and too costly) for anyone to manage. IT complexity tax: • CIO’s pay with time, sweat and money for every innovation, every business process improvement they implement.

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improve service, reduce cost, manage risk
+
Cost of Operations

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Risk of Failure

Quality of Service

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Reduce Complexity with an Architecture
Elimination of complexity • Requires companies to redraw their IT architecture • Simplify technologies • Manage service IT architecture

• Provides the big picture for what applications support which processes, how applications interact, and how they share data

a great wine is a complex wine… But, is complex IT a great IT ?

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But now we need new IT Architecture
Enterprise Strategy
Business Opportunity

Bus Strategy

IT Strategy

Technology Availability

Enterprise Architecture
Transition Planning Bus Arch’ture IT Architecture

Component Scheduling Shipping Yarn Buying Order Entry Cash Management Accounting Component Design Yarn Dyeing

Inventory Assortment Planning Component Knitting Tagging & Packing

AEI Corporate Yankee Group Saturn Group

Fire and hope!
Business Locations

Knits Division

Yarn Division

Raleigh Plant

Seneca Plant

Business Structure

Architecture Governance

Business Operating Environment and IT Infrastructure
Program Architecture Soln Outline Macro Design Micro Design Devt, etc. Program Architecture Macro Design Micro Design Devt, etc.

Soln Outline

Change Programs

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Reduce Complexity by Managing

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* From SYMANTEC

DATA CENTER MANAGEMENT 2010

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Data Center Management 2010
Integrated Components
User Interface Launch-in-Context Reporting Security Deployment Health

Security Events

Network Events

System Events

Performance Events

Application Events

Storage Events

Transaction Events

Mainframe Events

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Data Center Management 2010
Integrated Components
User Interface Launch-in-Context Reporting Security Deployment Health

Security Events

Network Events

System Events

Performance Events

Application Events

Storage Events

Transaction Events

Mainframe Events

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ITIL v3 : 27 main processes

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Computing Platform Lifecycle

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another cure for complexity

Internal storage

Servers

New Architecture

Power & cooling

ProCurve Networking

Management software
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1980 -2010 Platform Lifecycle

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Industry in a Box Companies

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What’s under the hood: Lego ?
Virtual Connect
virtualized LAN and SAN connections

StorageWorks EVA SAN
(Note: Matrix supports any c-Class certified FC SAN target)

Insight Software
Capacity Planning Orchestration Disaster Recovery

All-in-One Services, plus
ProLiant iCAP and pay as you grow financing

Integrity and ProLiant
blade servers

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What’s under the hood 2

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Evolution to Cloud Computing : build off virtualization and internal Private Clouds

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Cloudy in your future

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Cloud Service Layers
Service Providers

Cloud End-User Services (SaaS)

Service Users

Cloud Platform Services (PaaS)
Cloud Providers

Cloud Infrastructure Services (IaaS)

Physical Infrastructure
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Technology Cycles

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Disruptive Innovations

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Winners and losers: who now?

15 billion ARM based chips shipped to date

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If looks could kill

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If looks could kill

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“one-size-fits-all” end-user computing is “out”

2008
• Standard desktop configuration with Microsoft OS and office productivity tools

2011
• Standard desktop configuration • *book configured for Webbased applications • Desktop or application virtualization on thin-client device • SaaS alternatives to hosted applications
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So what happened ?
The user: • Mobility and always connected allows the “user” to shop for his own set of appliances. • Appliances will have two flavors for content – CREATE AND CONSUME – CONSUME IT: • IT will have to :
– Supply “content” to this appliances – Receive “content” from this appliances – Content will be structured, unstructured and multimedia

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E-Book ecosystems (also documents)

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Kindle: content consumption

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iPhone the content revolution

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iPhone the content revolution
The dean of Yale University's School of Management has joined Apple as a new Vice President, serving of the dean of a new "Apple

University."

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iPad: content consumption

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Google into other things?

Google Wave

Crome OS
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Nexus 1 Android
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Other ecosystems: blackberry

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Other ecosystems

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The future is here: WEB 3.0
Digital Marketing Is Here To Stay !!

“When I took office, only high energy physicists had ever heard of what is called the World Wide`Web... Now even my cat has it's own page.” - Bill Clinton
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Much much easier

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Evolution of Networked Applications

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Innovation : WEB 3.0

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WEB 3.0

http://www.flickr.com/photos/ross/3055802287/

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Enterprise social software is growing…

blogs

forums

microblogging

video

wikis

social bookmarking

podcasts
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photos

…but we’re creating a new set of silos.

Bookmarks
Wikis

Blogs

Micro blogs Forums Video

Photos Pod casts

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Tying together enterprise social software

Blogs Book marks Forums

Wikis

New “family” of products
Video Pod casts

Micro blogs

Photos

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Thank you
Dr. Jimmy Schwarzkopf

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