social world
DESCRIPTION
The world turns to social....TRANSCRIPT
It is not the strongest of the species that survives, nor the most intelligent that survives. It is the one that is the most adaptable to
change.
SaaS vs. IaaS vs. PaaS• Software as a Service (SaaS): Complete application systems delivered over
the Internet on some form of "on-demand" billing system: Salesforce.com, Google Apps…
• Platform as a Service (PaaS): Development platforms and middleware systems hosted by the vendor, allowing developers to simply code and deploy without directly interacting with underlying infrastructure: Google AppEngine, Microsoft Azure, Force.com…
• Infrastructure as a Service (IaaS): Raw infrastructure, such as servers and storage, is provided from the vendor premises directly as an on-demand service: Amazon Web Services, GoGrid…
Imagine
Monday: 25 000 users
Tuesday: 50 000 users
Thursday: 250 000 users
ImagineMonday: 50-100 servers
Tuesday: 400 servers
Wednesday: 900 servers
Friday: 3400 servers
Cloud PowerCloud PowerAnimoto and Amazon EC2
Num
ber o
f EC2
Inst
ance
s
4/12/2008
Launch of Facebook modification.
Amazon EC2 easily scaled up and down to handle additional
traffic
Peak of 5000 instances
4/14/2008 4/15/2008 4/16/2008 4/18/2008 4/19/2008 4/20/20084/17/20084/13/2008
Steady state of ~40 instances
4 TB Data 100 Nodes 11 Million PDFs
100 instancesx 24 hoursx $0.10 / Hr= $240
The Internet and its attendant array of consumer devices, networks and content sources have fundamentally changed how customers, employees and partners expect to interact with the enterprise (Gartner CIO survey 2008/2009).
The switch
Publishing is complex and limited to few traditional media and online
merchants
Value is created by aggregating content
(portals)Easy and free publication for all
Value is generated by tools allowing to publish easily
Mai
nly
narr
ow b
and
Mai
nly
Broa
dban
d
2004 2005
Traditional media
Alternative media
Google search
Flickr
Wikipedia
netvibes
Web 1.0 Web 2.0
Broadband is (becoming) a right in Spain and Finland
Technology and social factors have converged over the past few years to create a phenomenon called social computing
TECHNOLOGY Cheap hardware and software reach the masses. Simple devices that anyone can operate.
SOCIAL CHANGE Consumers look for cost and time efficient technologies, ways to make their voices heard. Younger techno savvy generations pioneer the use of personal networks and viral communication.
Source: Forrester (2006) – Social Computing.
Internet statistics
• 100 billion clicks per day
• 55 trillion links
• It uses 5% of the global electricity
• 2 million emails per second
• 1 million IM messages per second
• 8 terabytes per seconde traffic
• 65 billion phone calls per year
Social Media statistics
• 20 hours of video uploaded every
minute onto YouTube
• Facebook 600k new members per
day
• 900.000 blogs posts put up every day
• Second Life 250k virtual goods made
daily
• 700 million photos per day on
• Twitter 18 million new users per year
• 4 million tweets sent daily
• 1250 text messages per second
This is your new intranet
Identity? Facebook Connect!It’s the social graph that counts!
The Perfect Storm has changed Business Focus
Business has been hit successively with;
•The Credit Crunch•Globalisation of Competition•Commoditisation of key Activities•Customisation requirements for Products•Expectations for new levels of online Services
and then there is the Technology impacts around;
•The Ubiquitous Connectivity•Social Collaboration and Networks•The arrival of ‘The Cloud’•etc …..
So how do we Harness the forces of Change?
NEW ORGANISATIONAL PARADIGMSHOW BUSINESS TECHNOLOGY IS CHANGING COMPANIES
SOCIAL(ISM)?COMMUNAL ASPECTS OF DIGITAL CULTURE
TECHNOLOGY FUELED CHANGE
THE FUTURE OF PRODUCT AND SERVICE MARKETING & SALES
So its not just Traditional IT; there are new technologies too
People
InternalExternal
Applications Computers
Web Services
Areas where traditionalEA models often struggle
• Don’t respond to change quickly enough
• Aren’t aligned with current business reality
• Lack of focus on driving consumption (or network effects)
• Too centralized and isolated
• Expensive and resource-intensive
• Overengineered in the wrong places
• Excessively constraining.
The architecture“stack” is bigger now
Capgemini’s Crown modelPressure for
Business Change
Pressure forIT Stability
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
Business and Technology Architecture Governance ModelBusiness and Technology Architecture Governance Model
PersonaliseAn Individual’s capability to choose their ‘experience’
in how they wish to ‘Interact’ and ‘collaborate’
DifferentiateA Manager’s capability to build locally unique ‘differentiating’ capabilities
both externally and internally
Organise (SOA)Common, shared core processes that support each differentiated offer
above, and connect to transactional IT applications below
Comply (ERP, etc.)Traditional Enterprise Applications with organised procedures and data
integrity, keeping compliant business results
Loose Coupled Business Technology
SOA the coupling layer between both
Tight CoupledInformation Technology
A Services Governance Model – with the Business!
There is an Interesting Inversion in this …Business and Technology Architecture Governance Model
PersonaliseAn Individual’s capability to choose their ‘experience’in how they wish to ‘Interact’ and ‘collaborate’
DifferentiateA Manager’s capability to build locally unique ‘differentiating’
capabilities both externally and internally
Organise (SOA)Common, shared core processes that support each differentiated offer
above, and connect to transactional IT applications below
Comply (ERP, etc.)Traditional Enterprise Applications with organised proceduresand data integrity, keeping compliant business results
Loose Coupled Business TechnologyLoose Coupled Business Technology
SOA the coupling layer between bothSOA the coupling layer between both
Tight CoupledInformation TechnologyTight CoupledInformation Technology
$1
$2
$3
Margin
$1
$2
$3
Revenue
Cost or Value?
What the heck are Mashups?An enterprise mashup is a custom application rapidly assembled by (or in close collaboration
with) business users in short timescales to meet immediate business needs. Typically,
they combine data, functionality or processes from multiple existing internal or external IT assets to create innovative business value.
An enterprise mashup is a custom application rapidly assembled by (or in close collaboration
with) business users in short timescales to meet immediate business needs. Typically,
they combine data, functionality or processes from multiple existing internal or external IT assets to create innovative business value.
An enterprise mashup platform is software infrastructure that provides tools to rapidly assemble widgets in a visual environment thereby allowing easy combination of data, functionality and
processes, even by business users.
An enterprise mashup platform is software infrastructure that provides tools to rapidly assemble widgets in a visual environment thereby allowing easy combination of data, functionality and
processes, even by business users.
Impacts on the business operating model
Infrastructure-as-a-Service(IaaS)
Platform-as-a-Service(PaaS)
Software-as-a-Service(SaaS)
Business Process Outsourcing(BPO)
Internal Software + Service& traditional outsourcing
E.g. Finance BPO, PayrollTheir people, process, application, platform + Infrastructure
E.g. Salesforce.com, Google AppsTheir application, platform & InfrastructureYourpeople, process and operation
E.g. Force.com, Gigaspaces & AppistryTheir platform & InfrastructureYour application, people & process
E.g. Amazon Web ServicesTheir infrastructure, operations & supportYour application, platform & processes
You own everythingInfrastructure, platform, app’s & process. Contract parts of activities to partners
Comm
oditisation
Degree of control
A balance of Control and Standardization
Types of Multitenancy in the Cloud
App App App
ApplicationHost In Cloud IaaS / PaaS
Create Own IPVersion of App
Multi-Tenant Reseller ModelResell MultipleVersions of IP
App App
ApplicationHost In Cloud IaaS / PaaS
POC – 1 App LatencySpeedResponse
Multi-Tenant Infrastructure Sustain Model
Move overGroupsof Apps
Applications & Infrastructure Maintenance Portfolio Assessment & Migration
Types of Multitenancy in the Cloud
App
Application
Host In Cloud SaaS
Multiple TenantsOf the single Application
PaaS API
Multi-Tenant Software Usage Model
MultipleTenant versions
Meta Modelconversion
App App
ApplicationHost In Cloud IaaS / PaaS
Multi-Tenant Application instances Model
Multiple OSVMIs of App
Transparency : the provisioning boundary shifts in the Cloud to a shared model increasing security needs
Device
Network IP/MAC
AuthID
App OSImage
PhysicalServer
URL
TCP/IP
SaaS
PaaS
IaaS
APaaS
ProvisionlevelAbstraction
IncreasedShared Exposure
+
IncreasedPhysicalBoundaries
DomainID
Monitoring becomes more important
What is your SLA
Using 5 services with a guaranteed uptime of 99% will result in a guaranteed uptime at your site of
95%
The Required Future Business Model
The Architecture over a PaaS delivering by SaaS
Degree of Ready Built
PDFA
DOING BUSINESS IN A NEW WAYExamples
Lego factory
• Lego had traditionally been surrounded by a highly active constellation of Lego User Groups - fan communities comprising of both adult and young members
• These groups maintained large online presence; operated independently of the company; exchanged and showed creative toy designs and models amongst themselves
• Lego needed to move out of closed proprietary mode and adapt a participative strategy for customer interaction, which would utilize existing user creativity in product design
BACKGROUND
• Lego launched the Lego Factory (http://factory.lego.com) – an online model of engagement for potential and existing Lego users, which allows users to design, share and buy their own customized LEGO models
SOLUTION
• Through the Lego Factory, the company has taken a step further in the evolution of user involvement, building strong brand relationship
• The initiative has created high levels of awareness and interest with the consumers
• The initiative has put Lego a step ahead of competition by moving out of closed proprietary content mode and involving fresh ideas from consumers and community for New Product Development
BENEFITS
THE LEGO FACTORY WEBSITE
- Users interested in custom-designing their own Lego models have to download and install the ‘Lego Digital Designer’ –
- In the designer, the user can drag and drop to create a virtual toy design
- Once the user has created a design, he can upload the same to the online gallery
- Lego approves all designs before they are added to the online gallery, to filter out models for appropriateness for all age groups
- Designer users can then order the bricks needed to make their model, and also customize their own box for the model
- Other users on the site can buy uploaded designs in the gallery, and will receive both the bricks for the model as well as the building instructions
Source: MRD Lab Analysis. Capgemini, “ECR Europe Conference: Future Consumer Presentation”, May 2008. coBrandit.com, “Lego Co-creation Presentation by Mark Hansen: Video”, September 2006. Crowdsourcingdirectory.com, “Co-Creation in Lego Factory”, September 2007. European Centre for the Experience Economy, “Lego’s participative army marches on”, April 2008.
P&G connect + Develop
• As P&G grew to a $70 billion enterprise, the global innovation model it devised in the 1980s was yielding shrinking success rates
• Their R&D productivity had leveled off, and innovation success rate had stagnated at about 35%, whereas innovation costs were climbing faster than top-line
• While P&G owned a 7500+ strong R&D team, it realized that viable product innovation was increasingly being done externally at small and midsize entrepreneurial companies
BACKGROUND
• More than 35% of P&G’s new products have elements that originated from outside P&G, up from about 15% in 2000
• R&D productivity increased by nearly 60%• R&D investment as a percentage of sales is down from 4.8%
in 2000 to 3.4% in 2006• P&G’s average two-month cycle of generating physical
prototypes and testing them with consumers has reduced to around 24 to 48 hours
BENEFITS
• P&G launched the ‘Connect + Develop’ initiative, tapping into a global innovation network comprising of a host of sources, right from independent innovators to virtual innovator networks such as InnoCentive
• Having a clear sense of consumers' needs, the company identifies promising ideas throughout this network and applies its own R&D, manufacturing, marketing, and purchasing capabilities to them to enhance the rate of innovation
SOLUTION
P&G’s Global Innovation Network
P&G CONNECT + DEVELOP
P&G identifies top 10 customer needs
P&G converts them into ‘science problems and sends into the
network
P&G’s 7500+ R&D team work on solutions suggested and with
internal communities
INNOVATIONS In Areas Of Packaging, Design, Marketing Models, Research Methods, Engineering, Technology, Etc
Source: MRD Lab Analysis. Harvard Business School, Working Knowledge, “P&G's New Innovation Model”. Leveraging Ideas for Organizational innovation Blog, Dr. Kevin Desouza, “ Connect & Develop Innovations the P&G Way”. P&G, “P&G Connect & Develop – Brochure”.
Nike+, in collaboration with Apple
Nike wanted to create an immediately resonant experience for a broad target market, from marathoners to fitness joggers
Nike+ was born as a multi-channel, multi-sensory marriage of Nike and Apple technologies
Nike+ provides a robust platform of virtual racing, progress tracking, motivational goals and stories, global community comparison tools
BACKGROUND
SOLUTION
1
2
3
HEAR YOU RUN…
SEE YOU RUN…
CONNECT AND CHALLENGE
Sensor in the shoe helps the runner hear through the iPod, the details about pace, time, distance and calories burned
On docking and synchronizing the iPod, Nike+ software loads the workout statistics to their website where the user will be able to track his/her workout progress
Run data can be used to track progress, set goals, motivate runners. win rewards and challenge pals or all Nike+ users
Widgets for setting challenges, goals…
Blog facility for Nike+ users
Link to purchase Nike+ kit and other Nike gear
CUSTOMER CENTRICITY THROUGH
BETTER INTERACTION USING WEB 2.0 Nike+ is a unique way to engage with and promote
higher levels of brand identity amongst Nike users Delivers increased value to Nike users through a
unique way of collaborating Engages current and prospective Nike users with
uninterrupted and targeted advertising 20% reduction in ad budgets as Nike is moving
towards developing its own media network through such technological endeavors
Total Sales worth $59 million and 1.8 million users August 2008; 800,000 people globally
simultaneously run a 10km race in 26 cities Share of the Sports Shoe market: 2006 – 48% 2008
– 61% (12 month average)
BENEFITS
I
I
II
II
IIIIII
Nike.comIII
Source: MRD Lab Analysis. Nike+ website. ‘Nike does business 3.0’ Phill Butler, 2007.
CLOUD COMPUTINGExample
Undifferentiated Heavy LiftingUndifferentiated Heavy LiftingThe 70/30 SwitchThe 70/30 Switch
of time, energy, and dollars on differentiated value creation
of time, energy, and dollars on undifferentiated heavy lifting
30%30%
70%70%
The Capacity Planning NightmareThe Capacity Planning Nightmare
Irate calls from senior
managment
Irate calls from senior
managment
InfrastructureCost $
time
LargeCapital
Expenditure
LargeCapital
Expenditure
TraditionalHardware
ActualDemand
CloudComputing
PredictedDemand
Rick Mans
[email protected]+31 6 512 10 144
http://twitter.com/rickmanshttp://www.linkedin.com/in/rickmans