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CIO Advisory Services

Aligning Strategies, Business Processes and Technologies

Demystifying Web
2.0

Venkatesh P. Iyer
IT Strategy and Analytics IT Management Consultant
Business Process Management Somerset, NJ 08873
IT Execution T: 732 485 8658
E: vpiadvisors@gmail.com
Aligning Strategies, Business Processes and Technologies
Credentials
Venkatesh P. Iyer
CIO Advisory Services, IT Management Consultant

Qualifications:
Client focused management consultant in technology strategy with fifteen years of extensive
experience in business of technology and core technologies.
• Areas of specialization include IT Strategy, Enterprise Architecture, IT Analytics, large-scale
Program/ Project Management (PMO) and software Pre-Sales.
• Strong skills in Server-Virtualization, Service Oriented Architecture (SOA), Business Process
Management (BPM) and Middleware (Java EE)
• Extensive skills and experience in linking business strategy, operations and technology
implementation using high impact methodologies
• Excellent team leader and mentor, with sound business understanding coupled with a strong
technical foundation. Strong people skills, works well with senior management, end-users, and
business/ technical teams
• Skilled at guiding clients such as Allstate, Goldman Sachs, Citi, American Express, Comcast,
AXATech, Aetna, Sun Chemical, Merrill Lynch, AT&T etc to reach sound economic IT strategies
to meet their critical business requirements

Education:
NEW YORK UNIVERSITY, New York, New York,
Leonard N. Stern School of Business, Master of Business Administration, 2003
UNIVERSITY OF PUNE, Pune, India,
Master of Computer Applications, 1993

IT Strategy and Analytics Business Process Management 2


Aligning Strategies, Business Processes and Technologies
Preamble
The
Buzz
“Web 2.0 is a term describing the trend in the use of World Wide Web technology and web
design that aims to enhance creativity, information sharing, and, most notably,
collaboration among users” - Tim O'Reilly
“Web 2.0 is the business revolution in the computer industry caused by the move to the
Internet as platform, and an attempt to understand the rules for success on that new
… and the alphabet-soup-
noodles …
APIs Blogging Collaboration RSS SaaS Social Networking Wiki MySQL Perl
PHP Tagging

… Is leading to chaos and


confusion!!!
The purpose of this paper is to provide an overview of Web 2.0
(Enterprise 2.0) – drivers, risks etc and also offer the senior IT
Management a rigorous approach to assess and if applicable
adopt Web 2.0 for their firm
IT Strategy and Analytics Business Process Management 3
Aligning Strategies, Business Processes and Technologies
Agenda

Overview

Drivers

Opportunities and Risks

Leading questions for IT Management

Proposed Approach

IT Strategy and Analytics Business Process Management 4


Aligning Strategies, Business Processes and Technologies
Web 2.0 Overview

Contrasting Web 1.0 and Web 2.0 Characteristics of


Web 2.0
• Promotes openness and
collaboration
• Empowers end-users
• Strong focus on data management
• Offer software as a service
• Harnesses collective intelligence
• Social networks can promote
Viral-Marketing
• Many of the b2c Web 2.0 websites
get their revenue from

Web 2.0 represents more than just new technologies rather it is a paradigm shift
from Internet being a set of applications to a platform that enables collaboration,
IT Strategy and Analytics Business Process Management 5
Aligning Strategies, Business Processes and Technologies
Demand for Web 2.0 Solutions and Supply of Enabling
Technologies
Demand and Supply around Web Strategic benefits of Web
2.0 Solutions 2.0 Solutions
• Improved innovation by sharing
knowledge among employees
• Increase agility by closely engaging
Partners and Clients
• Capture additional ad-revenues
• Leverage a cost-effective channel
for
Ø Outbound Messaging: Build
communities to disseminate news
and ideas on products, ideas,
services etc
Ø Inbound Messaging: Build
communities to source ideas and
get feedback from customers on
new products and errors/ bugs in
Web 2.0
existing products
• Build long-term relationships for

Firms that implement Web 2.0 solutions that complements their businesses
optimally can capture the benefits of ‘Network Externalities’ i.e. winner takes all
IT Strategy and Analytics Business Process Management 6
Web 2.0 Drivers
Shifts in Demographics
Projected income growth by Comme
Gen-x
generation (in trillions)
attaining the nts
lead position

• Gen-X and Gen-Y are typically


technology savvy and they are
Gen-y start to
enter becoming increasingly influential for
workforce
Gen-y start businesses as customers
college
education
• In order to attract and retain the
best talent from Gen-Y going
Source: Javelin Strategy & Research,
forward, firms will have to invest in
Mobile data and communications building a strong Web 2.0
activities by age foundation
• It offers a great opportunity to
establish a engage and build strong
relationship with them starting now
e.g. a retail bank can start building
relationships with student loans for
college students and then expand it
by offering car loans, home loans,

Source Pew Internet & American Life

Forrester Research report states that enterprise spending on Web 2.0


technologies will continue to rise over the next five years, growing 43 percent
IT Strategy and Analytics Business Process Management 7
Web 2.0 Drivers
Mobile devices as a Platform
Those who say it would be very hard Comme
to give up nts
• Mobile devices are not only being
used for voice communications but
also for Data services like text-
messaging, emailing etc
• The adoption of mobile-devices for
data and communication is
extremely high among the Gen-Y and
Gen-X. 96% of Gen-Y has used
mobile devices for these activities -
Text-messaging, taking pictures etc.
For Gen-X the same percentage is
85%
• The total number of global mobile
social network users is predicted to
jump from 525 million this year to
975 million in 2012
• With the worldwide smart phone
market expected to expand by more
Source Pew Internet & American Life

Mobile devices are morphing into a complete platform from being just a tool for
voice-communication
IT Strategy and Analytics Business Process Management 8
Web 2.0 Drivers
Profile of Emerging Markets
Growth in Internet Users Comme
(in MM) nts
C • In India, Youth forms the major
chunk to the growing Internet user
hin
base. Another major segment on the
Internet comprises the school kids
• The Mobile- Value added services
(VAS) in India in undergoing a rapid
growth
• Cellphone usage growth in fast
growing markets last year: Vietnam:
114%, Pakistan: 170%, Ukraine:
I 185%
ndi • In Indonesia, one person in a
hundred owns a PC, and only one in
a thousand has a broadband
Internet connection. While there are
already 63 million cell phone
subscribers, that only represents
27% of the country's population of
Source: Internet & Mobile Association of
234 million. Cell phone subscriptions

Emerging countries like China, India, Russia and Brazil are rapidly adopting Web
2.0 solutions. Firms can harness the power of Web 2.0 to penetrate these
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Aligning Strategies, Business Processes and Technologies
Risks with adopting Web 2.0 Solutions

The concept of Web 2.0 inherently implies higher degree of


information exchanges. While this can be extremely beneficial in
certain functions, it can also potentially increase the
vulnerabilities of the firm adopting these technologies

None of these risks are insurmountable. However they do mandate that before
rolling out Web 2.0 solutions, firms should perform rigorous risk-assessments to
assess the increased vulnerabilities. They should first define and institute
rigorous governance and policies and they should adopt solutions only for those

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Aligning Strategies, Business Processes and Technologies
Top WebSites | June 2008
Top Web 2.0 Popular Business Comme
Websites Websites ntsis a
• There
significant gap
between the #1
and #2 websites
in terms of
visitors
(“Network
Externalities”
characteristics)
• Number of
visitors to Web
2.0 sites are
many folds
compared to the
number of visits
to business
websites
• Most of the Web
2.0 sites are b2c
and are used by
Gen-y customers
• Most of the Web

IT Strategy and Analytics Business Process Management 11


Aligning Strategies, Business Processes and Technologies
Web 2.0 application early adopters case-studies

Representative sample of Web 2.0 Web 2.0 applications in Financial


applications
Custom Partner Employ Backen Services Industry
ers s ees d
Communi RSS :
ty and Supply
Blogs: chain
B2B

discussio
ns
Strea
SaaS: ming
CRMs, Video: SOA:
Payroll Trainin Web-
g Servic
es
Execut
Podcast: ive
Financial Blogs:
trends Musin
B2C

commentary gs

Communi Project
ty and Blogs:
Blogs: Sharing
discussio informati
ns on

Before rolling out Web 2.0 solutions, firms should perform rigorous risk-
assessments to evaluate if the benefits outweigh risks and costs
IT Strategy and Analytics Business Process Management 12
Aligning Strategies, Business Processes and Technologies
Agenda

Overview

Drivers

Opportunities and Risks

Leading questions for IT Management

Proposed Approach

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Aligning Strategies, Business Processes and Technologies
Key Questions for Senior IT Management

• Is Web 2.0 solutions applicable to my firm? What are my


competitors doing?
• Which business functions would most benefit from these
solutions?
• Should I start off with external Web 2.0 applications or internal
Web 2.0 applications or both? How should I go about identifying
them and prioritizing them?
• Should I build or buy solutions? How would they impact/ integrate
with my existing systems? Should I outsource the development?
What would be the capital and operating costs associated with the
Web 2.0 solutions?
• Are there firms out there who have expertise in implementing Web
2.0 solutions? What best practices should my organization adopt
to be successful in this initiative?
• How should augment the Governance processes and policies to
accommodate the Web 2.0 solutions?
• What the key risks with the adoption and what are the remediation
strategies for them?

CIO Advisory Services and XX can assist you in developing a comprehensive


strategy and with the implementation of the Web 2.0 solutions
IT Strategy and Analytics Business Process Management 14
Aligning Strategies, Business Processes and Technologies
Planned Approach
SI Partner to lead these

• Initiate industry and firm specific


analysis to identify the key Web 2.0
solutions most relevant to this
organization
• Identify business areas within the
organization that would most benefit
by adopting the Web 2.0 solutions
i.e. the benefits outweigh the costs
and risks
• Identify the core business
capabilities in the target state that
will be based on Web 2.0 solutions
• Assess the firm’s IT landscape to
determine the current technology
capabilities and the craft the future
state technology capabilities
• Develop multiple implementation
scenarios and the associated CBAs
• Recommend target pursuits and
publish the detailed roadmap with
specific milestones
• Codify and institute process and
policies to augment the current
Governance structure

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Aligning Strategies, Business Processes and Technologies
A comprehensive approach to Web 2.0 strategy
T
ask
• Perform Industry and Firm specific analysis
• Document the current state
• Identify the key business capabilities for the target state
• Identify key technology gaps

• Develop architecture blueprints that will enable Web 2.0 features in the target
state
• Assess and prioritize the target state capabilities

• Prioritize list of Web 2.0 initiatives with rigorous business cases and cost-
benefit analysis
• Create a roadmap with milestones for launching capabilities

• Institute a PMO with best practices to manage the executing of all initiatives
• Launch a Governance body to provide oversight for the Program execution

This model can be readily customized depending on client’s needs

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Aligning Strategies, Business Processes and Technologies
Summary

• CIO Advisory Services and XX can assist your firm in crafting and
implementing a sound Mainframe strategies
• With its extensive experience in IT Strategy, Analytics, Program
Management etc, CIO Advisory Service can not only offer
analytical models, best practices etc but also ensure a
successful execution of the proposed strategies

IT Strategy and Analytics Business Process Management 17