Transcript Welcome to the End of Business as Usual

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
The uneasy feeling that its ‘not business as usual’…..
Increasing business
competition, globalization,
standardization, commoditization,
amount of information & change
Generation Y
for whom technology
is a normal life skill
Convergence of communications,
content, media, games, and
devices at home and at work
New competitors,
new markets, and
new products
Technology acceleration of
Internet, Web 2.0, SOA,
Semantics, Knowledge,
and many other technologies
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An new type of technology has been added
The
Consumer
Internet
The Internet
World
Wide Web
Web 2.0
?
Enterprise
Systems
Architecture
Client Server
nTier &
Components
Service
Oriented
?
Enterprise
Data
Management
RDBMS &
Data Modelling
CIF & Data
W’housing & BI
Metadata,
BAM & CPM
?
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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
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The role of People as a catalyst for change
Pronounced shifts in Expectations and capabilities
Users, and increasingly, consumers create (technology) markets
I can work better!
Therefore I choose
to adopt this
Web 1.0
& Content
Web 2.0 &
Interactions
Smart Phone
& eMail etc
Cell Phone
& Texting
PDA &
Calendar
Decision Support
PC &
Spreadsheet
Business Intelligence
Functional Apps
Office Suites
Client-Server
ERP
The Business
can save money!
Knowledge Mgt
SOA
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Welcome to the End of Business as Usual !
Percentage of technology-literate
at work and as consumers
Percentage of non-technology
literate at work and as consumers
Business
as usual
Inflection point
Depends on Market & Industry
New business
models
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”
Travel Agents
Books & Retail
Retail
Airlines
Music
These markets are being affected by dominance
of “Generation Y” consumers and workers
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Analyzing the Game Changing Businesses
What common traits exist in their Business Models?
And use of Technology?
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
Vs
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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
Traditional Airline
Low Cost Airline
Enlarged Market!
• Destination Centric
• Fixed “offers”
• Passenger Centric
• Destination/Price/Time
• New categories
• Time/price = ?
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The common traits in Business Game Change examples
New
Amazon leads with the most popular items responding to external demand
Old
Barnes and Noble leads with its internally defined offers
Right
eBay allows external demand to create new markets and indexes
Wrong
CommerceOne failed as it defined the markets that it would make available
Aware
Google business model continuously improves, people explore for the new
Adaptive
Innovative
& Money
Making
Traditional Software business model depends on set upgrade offers periodically
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.
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Web 2.0 the new technology in the game
People driven and People centric technology
Redefining how we do things
What is Web 2.0?
Mostly it is used as a concept defining a people-centric web-based world
Web 1.0 = Content
Web 2.0 = Contacts or Community
• Tim O’Reilly coined the term in 2004
and then provided the first definition
in Sept 2005
• End of the Software release cycle
• The Web as a platform
• Lightweight programming models
– A technology platform to support new
functionality
• Harnessing collective intelligence
– The concept of “contacts”
• Data as the next “Intel inside”
– Continuous editing, extending and
experimenting
– 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
– Data becomes the basis for standardization
and not the processor design
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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
User Self Service
eg; Google AdSense
Rich User
Experience
eg; GoogleMaps
Strategic Positioning
The Web as
a platform
An Attitude
not Technology
Addresses the
“Long Tail”
Data as the new
“Intel inside” std
Open to permit
“hackability”
Participation
not publishing
eg; BlogSphere
Trust and
Reputation
eg; WiKipedia
User Positioning
You control your own
data/content
Competencies
Services not packaged software
Architecture of participation
Cost effective scalability
Remixable data sources and transformations
Software above the level of a single device
Harnessing collective intelligence
The perpetual
beta
Decentralization
& the Long Tail
eg; BitTorrent
Encourage
Play
Remix at will
Some rights reserved
Software improved
by use(rs)
User behaviour
Not predetermined
Trust and empower
Your Users
Small Pieces
Loosely coupled
Rich User
experience
Granular
Content
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Web 1.0 to Web 2.0: Publishing or Participation?
The new Middleman (as opposed to Middleware):
Communicationoriented, providing a
platform for exploitation
as opposed to
Content-oriented,
with protection
against exploitation
Benefits from viral
marketing completely
replacing conventional
marketing
Hyperlinked by
users bound into
the structure of the
existing Web
Driven by users
recommendations
to continue to create
organic growth
Able to harness the
“long tail” through selfservice
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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Tagging and Folksonomies
People-Oriented content management
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.
Benefits
• Decentralized and user-driven versus conventional
centralized taxonomies
• The same content can be multiple-tagged by different
users according to their interest
• Example:
Big Ben, London, River Thames, Sunset, ??
• 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
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Two Game-Changing Technologies: AJAX & RSS
AJAX – an innovation in assembly
RSS – innovating the dynamic Web
Asynchronous JavaScript And XML
Rich Simple Syndication
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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
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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
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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
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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
• Being used for “user” MashUp toolkits; Google Earth, …
MashUps
• Aids People and experience centric interaction
Web 2.0
Blogging
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And a “new” architectural style: REST
REST – an architectural style for distributed hypermedia systems
Representational State Transfer
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.
Quote; Dr. Roy Fielding,
Architectural Styles and the Design of Network-based Software Architectures – 2000 paper
Principles
Acceptability
• Application state and functionality divided into resources
• Enthusiasts claim REST to be eminently
suitable for the network-based, browseroperated systems that are the basis of the
new world
• 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;
• 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
– Client/Server; Stateless; Cacheable; layered
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MashUps – the Business Game-Changer
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
• 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
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MashUp – www.housingmaps.com
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Techno Business Models
Transformation of the Business and IT structures
to support a radically different Business
The intruders into our application ‘stack’
Users are drawn to
Communities for
Collaboration and
Communication
Process
Procedure
Data
SOA based processes
breaking up tight coupled
architecture
Google
Open Source
SAP
Oracle
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A need to evolve the traditional model for IT in the Business
New “Front Office”
People, using content
Communication & Collaboration
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Web 2.0 &
SOA as a
mechanism
to interact
Business Innovative
Value Focused
Interactive Technology enabled
Line of Business Manager driven
People and Services
Interactions
Book to Bill
Data Centric
Transactions
“Back Office” systems
Open Standards connecting
organizations together
SOA as a
mechanism
to transact
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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
New “Front Office”
People, using content
Communication & Collaboration
•
•
•
•
Web 2.0 &
SOA as a
mechanism
to interact
People and Services
Interactions
Book to Bill
Data Centric
Transactions
“Back Office” systems
Open Standards connecting
organizations together
SOA as a
mechanism
to transact
Business Innovative
Value Focused
Existing
applications
Interactive
Technology
enabled
as well Manager
as new style
Line of Business
driven
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
• Compliance
and Evolution
• Value JustifiedStandards
• IT Delivered
• CFO and CIO driven
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Governance and Management of the ‘Diamond’ by the ‘Crown’
Pressure for
Business Change
Personalize
An Individual’s use of the capabilities of Web 2.0
Differentiate
A Business Manager’s Customizable Solution
Organize
The use of SOA to achieve cohesive executions
Comply
The Enterprise Transactions and Data; ERP and Legacy Applications
Who Needs What? And Why?
Pressure for
IT Stability
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Business Process ‘down’ versus Technology Procedure ‘up’
Personalize
An Individual’s use of the capabilities of Web 2.0
Differentiate
A Business Manager’s Customizable Solution
Accelerated Solution
Environment Around
IT Considerations
RAIN
Organize
ASE
The use of SOA to achieve cohesive executions
Rapid Innovation
Around Business
Comply
Process Design
The Enterprise Transactions and Data; ERP and Legacy Applications
An importance difference!
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‘Organise’ requires a new environment
Personalize
An Individual’s use of the capabilities of Web 2.0
Business Process
Defined and Driven

Differentiate
A Business Manager’s Customizable Solution
Service Oriented Business
Service Oriented Architecture
Organize
The use of SOA to achieve cohesive executions
Service Oriented Infrastructure
Comply
The Enterprise Transactional
TransactionsProcedure
and Data;
ERP and Defined
Legacyand
Applications
Driven

Organise is the new IT role
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Provisioning Software: Aligning the five possibilities
Value Proposition
What is
Where
provided? provided?
Nature of
relationship
Type of
expenditure
Expenditure
elements
Agility
SaaS
Designed 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
ASP
Service Provider of 3rd
party remote-access
A hosted
software generally via Web application
from a hosted facility
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 Customized
& supports software for
Services
which it is contracted
Delivered on site but
could be provided by
on/off site resources
Client generally buys in
3rd party software (may be Periodic payments
internally developed) and against a multi-year
separately contract with an agreement
external service provider
Software License and
upgrades; maintenance;
hardware; managed
service fees
Customized
solution
BPO
External Provider
responsible for specific
A Customized
Business functions like HR
Service
or Financials & linked
technical functions
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
Traditional
Software vendor product
that bundles required
A Product
functionality into a package
On premise software;
deployment as part of
client IT estate
Customer – Vendor with
high degree of “lock-in”
and commitment from the
customer
Software License;
Capital intensive
implementation;
investment with annual
Limited within the
integration; maintenance;
license cost and
package
hardware, training;
upgrade investments
support.
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The End of Business as usual?
Or the time to change your game to a better one?
Summary
Summary
People, Communities and Ecosystems
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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
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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!
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