Welcome to the End of Business as Usual! Changing the Game
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Transcript of Welcome to the End of Business as Usual! Changing the Game
Welcome to the End of Business as Usual!Changing the Game Enterprise 2.0; A new generation of Business Solutions & MashUps
Andy Mulholland - Global Chief Technology Officer - Capgemini
2Welcome to the end of Business as usualAndy Mulholland 2006
Increasing businesscompetition, globalization,
standardization, commoditization,
amount of information & change
The uneasy feeling that its ‘not business as usual’…..
Generation Y for whom technology is a normal life skill
New competitors,new markets, and
new products
Globalistion – partners & competitors
People – capabilities & expectations
Technology – is it different to IT?Convergence of communications,
content, media, games, anddevices at home and at work
Technology acceleration ofInternet, Web 2.0, SOA,Semantics, Knowledge,
and many other technologies
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An new type of technology has been added
EnterpriseDataManagement
Enterprise Systems Architecture
The InternetWorldWide Web Web 2.0
Client ServernTier & Components
Service Oriented
RDBMS & Data Modelling
CIF & Data W’housing & BI
Metadata, BAM & CPM
??
??
??
The Consumer Internet
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This presentation is about
The question?What is linked and how to create Business value
• People• Business Models• Web 2.0
And the result
• Enterprise 2.0
The role of People as a catalyst for change
Pronounced shifts in Expectations and capabilities
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I can work better!
Therefore I choose
to adopt this
Users, and increasingly, consumers create (technology) markets
Client-Server ERP Knowledge Mgt SOA
The Business
can save money!Office Suites
Business Intelligence
Functional Apps
PC &Spreadsheet
PDA &Calendar
Cell Phone & Texting
Smart Phone & eMail etc
Decision Support
Web 2.0 &Interactions
Web 1.0 & Content
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Welcome to the End of Business as Usual !
Percentage of non-technology literate at work and as consumers
Percentage of technology-literateat work and as consumers
Business as usual
New business modelsInflection point
Depends on Market & Industry
The demographics change in consumers and the workforce alone mean businesses have to change
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Some examples of markets where it’s no longer “Business as Usual”
AirlinesBooks & Retail Retail MusicTravel Agents
These markets are being affected by dominance of “Generation Y” consumers and workers
Analyzing the Game Changing BusinessesWhat common traits exist in their Business Models?And use of Technology?
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A Web 2.0 Business – www.threadless.com
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The Web 2.0 Community in cars – www.scion.com
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Tesco rethinks the issue of Physical vs Virtual location
VsVs
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The unique environment of Secondlife.com
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The common feature is the “Long Tail” of markets
“Pushing” defined products to
a well defined market
“Self Service” product creation
“pulled” by individuals
Low Cost Airline• Passenger Centric• Destination/Price/Time
Enlarged Market!• New categories• Time/price = ?
Traditional Airline• Destination Centric• Fixed “offers”
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The common traits in Business Game Change examples
Second Life participants create over 7 m lines of code a week to improve environment
1st Dec; 456 people earn over $500; 29 over $5000; 2 over $25000. Every month!
About 500,000 Chinese work in “gold farms” creating superior players. And selling them.
New
Old
Right
Wrong
Aware
Adaptive
Innovative & Money Making
Amazon leads with the most popular items responding to external demand
Barnes and Noble leads with its internally defined offers
eBay allows external demand to create new markets and indexes
CommerceOne failed as it defined the markets that it would make available
Google business model continuously improves, people explore for the new
Traditional Software business model depends on set upgrade offers periodically
Web 2.0 the new technology in the gamePeople driven and People centric technologyRedefining how we do things
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What is Web 2.0?
• Tim O’Reilly coined the term in 2004 and then provided the first definition in Sept 2005
• The Web as a platform– A technology platform to support new
functionality
• Harnessing collective intelligence
– The concept of “contacts”
• Data as the next “Intel inside”– Data becomes the basis for standardization
and not the processor design
Mostly it is used as a concept defining a people-centric web-based world
• End of the Software release cycle– Continuous editing, extending and
experimenting
• Lightweight programming models– Every one can take part
• Software above the level of a single device– Community-centric
• Rich user experiences– The way I want to see things
Web 2.0 = Contacts or CommunityWeb 1.0 = Content
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CompetenciesServices not packaged software
Architecture of participationCost effective scalability
Remixable data sources and transformationsSoftware above the level of a single device
Harnessing collective intelligence
What else makes up Web 2.0? The O’Reilly Meme Map
Tagging not
Taxonomy
eg; del.icio.us
Page Ranking
User reviews
eg; Amazon Reviews
Participation
not publishing
eg; BlogSphere
Decentralization
& the Long Tail
eg; BitTorrent
An Attitude
not Technology
Addresses the
“Long Tail”
Addresses the
“Long Tail”
Data as the new
“Intel inside” std
Data as the new
“Intel inside” std
Remix at will
Some rights reserved
Remix at will
Some rights reserved
Trust and empower
Your Users
Trust and empower
Your Users
Small Pieces
Loosely coupled
Small Pieces
Loosely coupled
Rich User
experience
Rich User
experience
Granular
Content
Granular
Content
Open to permit
“hackability”
Open to permit
“hackability”User behaviour
Not predetermined
User behaviour
Not predetermined
The perpetual
beta
The perpetual
beta
Software improved
by use(rs)
Software improved
by use(rs)Encourage
Play
Encourage
Play
Rich UserExperience
eg; GoogleMaps
Trust andReputation
eg; WiKipedia
Strategic PositioningThe Web as a platform
User PositioningYou control your own
data/content
User Self Service
eg; Google AdSense
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Web 1.0 to Web 2.0: Publishing or Participation?
The new Middleman (as opposed to Middleware):
Communication-oriented, providing a platform for
exploitation as opposed to
Content-oriented, with protection
against exploitation
Benefits from viral marketing completely replacing conventional
marketing
Driven by users recommendations
Hyperlinked byusers bound into
the structure of the existing Web
to continue to create organic growth
Able to harness the “long tail” through self-service
the service gets better the more people use it,
automatically
Valued in direct proportion to the
scale and dynamism of the data
helps to assemble, create, manage, etc.
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Benefits• Decentralized and user-driven versus conventional
centralized taxonomies
• The same content can be multiple-tagged by different users according to their interest
• Example:
• A Blog may list keywords and this enables a reader to find all content indexed to that keyword
• Dynamic change is added to the list automatically and individual content may have further tags added
Tagging and Folksonomies
People-Oriented content management
Big Ben, London, River Thames, Sunset, ??
A keyword associated with a piece of content such as an article, a picture or video clip that is assigned by a user in a manner that makes it relevant to the use of the content.
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Two Game-Changing Technologies: AJAX & RSS
AJAX – an innovation in assemblyAsynchronous JavaScript And XML
• Standards-based presentation - XHTML & CSS• Dynamic display/interaction – Doc Object Mode• Data interchange & manipulation XML & XSLT• Asynchronous data retrieval - XMLHttpReqest• Java Script as the binder for every thing
• Formally proposed in Feb 2005 – Jesse James Garrett• Based on standard elements in current browsers• Now possible to have a simple solution• Old problem; 1996 – IFRAME, 1997 – Netscape 4 Layer…etc
• Being used for “user” MashUp toolkits; Google Earth, …
RSS – innovating the dynamic WebRich Simple Syndication
• Or Netscape Rich Site Summary of 1998• Devised as a simple extension to “linked” pages• Linked pages work for “static” content Web 1.0• Web 2.0 is based on “dynamic” changing interactions• Designed to automate advice of a page change
• Came into its own with the advent of Blogs• Example personal web page MySpace or Blog• Wikipedia is collective Blogging and Wisedom• Part of the new “reputation” = “trust” emerging model
• Aids People and experience centric interaction
Blogging
MashUps
Web 2.0
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And a “new” architectural style: REST
Acceptability• Enthusiasts claim REST to be eminently
suitable for the network-based, browser-operated systems that are the basis of the new world
• Detractors say there is a lack of proof in large scale deployment and the lack of tools leads to inconsistencies in deployments that reduce the claimed benefit of standardization
Representational State Transfer is intended to evoke an image of how a well-designed Web application behaves: a network of web pages (a virtual state-machine), where the user progresses through an application by selecting links (state transitions), resulting in the next page (representing the next state of the application) being transferred to the user and rendered for their use.
REST – an architectural style for distributed hypermedia systemsRepresentational State Transfer
Principles• Application state and functionality divided into resources
• Every resource uniquely addressable by a universal syntax for use in Hypermedia links
• All resources share a uniform interface for the transfer of state between client and resource consisting of;
– constrained set of well defined operations
– constrained set of content types
• A protocol that is;
– Client/Server; Stateless; Cacheable; layered
Quote; Dr. Roy Fielding, Architectural Styles and the Design of Network-based Software Architectures – 2000 paper
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MashUps – the Business Game-Changer
• Google is a key “pusher” and provider with its Google Maps and AJAX tools
• www.housingmaps.com is general referenced as the “model” that started MashUps
• User level “programming” is possible for “self-service” use of MashUps (compare with spreadsheets)
• Corporate level can be extremely complex and sophisticated use of wide ranging information
• Innovation in “assembly” is the real Intellectual Property and not the content
• Customers can be offered the use of your information through tools etc to make you a platform
• Think external “syndication” as opposed to internal “co-ordination” for organic growth
• eg; a Retail Bank can offer a platform MashUp for users to develop their financial self services
Delivering Web 2.0 business possibilities with AJAX, RSS, etc
A MashUp is:
A website or web application that seamlessly combines content from more than one source into an integrated experience.
From Wikipedia, the free encyclopedia
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MashUp – www.housingmaps.com
Techno Business ModelsTransformation of the Business and IT structures to support a radically different Business
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The intruders into our application ‘stack’
Data
Procedure
UserProcess
Users are drawn to
Communities for
Collaboration and
Communication
SOA based processes
breaking up tight coupled
architecture Oracle
SAP
Microsoft
Open Source
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A need to evolve the traditional model for IT in the Business
People and ServicesInteractions
Book to Bill Data Centric Transactions
SOA as a mechanism to transact
Web 2.0 &SOA as a
mechanism to interact
Open Standards connecting organizations together
New “Front Office”People, using content
Communication & Collaboration
“Back Office” systems
• Business Innovative• Value Focused• Interactive Technology enabled• Line of Business Manager driven
• Compliance and Evolution• Value Justified• IT Delivered• CFO and CIO driven
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A need to evolve the traditional model for IT in the Business
People and ServicesInteractions
Book to Bill Data Centric Transactions
SOA as a mechanism to transact
Web 2.0 &SOA as a
mechanism to interact
Open Standards connecting organizations together
New “Front Office”People, using content
Communication & Collaboration
“Back Office” systems
• Business Innovative• Value Focused• Interactive Technology enabled• Line of Business Manager driven
• Compliance and Evolution• Value Justified• IT Delivered• CFO and CIO driven
Existing applications as well as new style
Services are all exposed through a common set of standards that are
based on both industry/sector
business standards as well as actual or defacto Technology
Standards
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Governance and Management of the ‘Diamond’ by the ‘Crown’
ComplyThe Enterprise Transactions and Data; ERP and Legacy Applications
OrganizeThe use of SOA to achieve cohesive executions
DifferentiateA Business Manager’s Customizable Solution
PersonalizeAn Individual’s use of the capabilities of Web 2.0
Who Needs What? And Why?
Pressure for
Business Change
Pressure for
IT Stability
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Business Process ‘down’ versus Technology Procedure ‘up’
ComplyThe Enterprise Transactions and Data; ERP and Legacy Applications
OrganizeThe use of SOA to achieve cohesive executions
DifferentiateA Business Manager’s Customizable Solution
PersonalizeAn Individual’s use of the capabilities of Web 2.0
An importance difference!
Rapid Innovation
Around Business
Process Design
Accelerated Solution
Environment Around
IT Considerations
ASE
RAIN
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‘Organise’ requires a new environment
ComplyThe Enterprise Transactions and Data;
ERP and Legacy Applications
DifferentiateA Business Manager’s Customizable Solution
PersonalizeAn Individual’s use of the capabilities of Web 2.0
OrganizeThe use of SOA to achieve cohesive executions Service Oriented Infrastructure
Service Oriented Architecture
Service Oriented Business
Organise is the new IT role
Business Process
Defined and Driven
Transactional Procedure
Defined and Driven
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Value PropositionWhat is provided?
Where provided?
Nature of relationship
Type of expenditure
Expenditure elements
Agility
SaaSDesigned as a utility service for web delivery with all elements provided by the SaaS operator
Hosted set of Services
Delivered on site via the Web using a standard Browser as a client
Client buys a service on a utility basis with no expectation of individual service elements
Pay as you use”; no long term commitment; often no minimum notice period
Initial service deployment charge with on going user based subscription charge
Designed as a highly configurable Application
ASPService Provider of 3rd party remote-access software generally via Web from a hosted facility
A hosted application
Delivered to user via local client software from a remote hosted environment
Client rents or leases use of 3rd party software running at the ASP’s remote hosting site
“Pay as you use” generally with no long term commitment but with a minimum notice period
Subscription for license use plus charging for number of users and amount of use
Customized deployment but limited application flexibility
Managed Service
External Service Provider that continuously manages & supports software for which it is contracted
Customized Services
Delivered on site but could be provided by on/off site resources
Client generally buys in 3rd party software (may be internally developed) and separately contract with an external service provider
Periodic payments against a multi-year agreement
Software License and upgrades; maintenance; hardware; managed service fees
Customized solution
BPO
External Provider responsible for specific Business functions like HR or Financials & linked technical functions
A Customized Service
Internal/External Resources on/off site, specific to supporting the process
Client contracts with external service provider on basis of everything required to ensure business functionality is maintained
Long term fixed contract with periodic payments on a fixed cost over 3 or more years
In addition to fixed cost and payment, can be shared risk-reward to Improve performance or reduce costs
Generally fully customizable
TraditionalSoftware vendor product that bundles required functionality into a package
A ProductOn premise software; deployment as part of client IT estate
Customer – Vendor with high degree of “lock-in” and commitment from the customer
Capital intensive investment with annual license cost and upgrade investments
Software License; implementation; integration; maintenance; hardware, training; support.
Limited within the package
Provisioning Software: Aligning the five possibilities
The End of Business as usual?
Or the time to change your game to a better one?
Summary
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Summary
People, Communities and Ecosystems• An entire generation now has a different set of capabilities and expectations
• They represent a wholly different and growing market around “uniqueness” thru “self-service”
• Successful new-wave businesses are “aware” through using technology to facilitate communities
• They aim to allow communities to create their products for them and to “market” them
• Success lies in the ability to “adapt” rapidly and deliver through their own ecosystem community
Products may be virtual and experiences as well or before being physical• New “products” are created by consumers “mashing up” the elements to give them their “product”
• The “long tail” market is now accessible without the traditional cost penalty
• Smart behaviour is to offer the platform on which others will base their own offers
Technology is not just SOA, its Web 2.0 leading to Enterprise 2.0• Its difficult to separate the new wave business from technology – they are synonymous
• Traditional “transactional” IT is still required as well as the new “services” technology
• Open Standards and Open Source are the vital connecting points to everything
• People create and solve “exceptions” as opportunities
• SOA provides the Business with the process orchestration to handle this
The Pace of change is accelerating and Competition is intensifying!