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© 2012 IBM Corporation Tourism Cloud – Enabled Business Model Innovation Jen-Yao Chung IBM T. J. Watson Research Center

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Jen-Yao Chung IBM T. J. Watson Research Center. Tourism Cloud – Enabled Business Model Innovation. Agenda. Introduction and Industry Trend Tourism Ecosystem What is Cloud, Why Cloud – Rethink IT / Reinvent Business Enterprise Cloud Approach - PowerPoint PPT Presentation

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© 2012 IBM Corporation

Tourism Cloud – Enabled Business Model Innovation

Jen-Yao Chung

IBM T. J. Watson Research Center

© 2012 IBM Corporation2

Agenda

Introduction and Industry TrendTourism EcosystemWhat is Cloud, Why Cloud – Rethink IT / Reinvent BusinessEnterprise Cloud ApproachCloud Adoption Patterns - Business Cloud Services Innovative Business Model for CloudSummary

© 2012 IBM Corporation3

The World Wide Tourist Market

WTTC’s latest Economic Impact Research shows that world Travel & Tourism continues to grow in spite of continuing economic challenges.

– Despite progressive downgrades to growth forecasts through 2011, the industry grew by 3% over the course of the year (in terms of Travel & Tourism’s contribution to GDP).

– Tourism’s direct contribution to GDP in 2011 was US$2 trillion and the industry generated 98 million jobs.

– Taking account of its direct, indirect and induced impacts, Travel & Tourism’s total contribution in 2011 was US$6.3 trillion in GDP, 255 million jobs, US$743 billion in investment and US$1.2 trillion in exports. This contribution represented 9% of GDP, 1 in 12 jobs, 5% of investment and 5% of exports.

– Growth forecasts for 2012, although lower than anticipated a year ago, are still positive at 2.8% in terms of the industry’s contribution to GDP.

– Longer-term prospects are even more positive with annual growth forecast to be 4.2% over the ten years to 2022.

Source: World Travel & Tourism Council (WTTC) http://www.wttc.org/research/economic-impact-research/

© 2012 IBM Corporation4

Tourist Industry Trend

Internet continues impact on tourism Strong efforts in standardization and interoperability Increasing importance of mobile devices and geographical information systems

– Always on– Integrated circuits (RFID) enter tourism industry

Market segmentation will become more sophisticated and specific– Individualization/personalization as an ongoing trend– Travel agents reinvent themselves for personalized service– Promote customer centricity– Personalize with precision– Demographic changes and consequences

Elderly people is increasing rapidly Further decrease in the average number of persons per household

– Extend the experience the experience doesn’t begin at departure or end upon completion (e.g. virtual

experience) Sustainable tourism

– Global catastrophes as facts of daily life

© 2012 IBM Corporation5

Barriers to e-business adoption

The small size of the companyCosts of e-business technologiesComplexity of e-business technologiesLacking compatibility of technologiesSecurity risks and concerns about privacy issuesPerceived unsolved legal issuesThe difficulty to find reliable IT suppliers.

© 2012 IBM Corporation6

Agenda

Introduction and Industry TrendTourism EcosystemWhat is Cloud, Why Cloud – Rethink IT / Reinvent BusinessEnterprise Cloud ApproachCloud Adoption Patterns - Business Cloud Services Innovative Business Model for CloudSummary

© 2012 IBM Corporation7

The Travel Ecosystem

Providers

Global Dist Systems

Distributors

Travelers

Air Hotel Car Other

Traditional Other

TA/OTA Other

© 2012 IBM Corporation8

TravelerTraveler

“Push”

Brick & Mortar Agencies

Brick & Mortar Agencies

Distribution Networks

Distribution Networks

Travel Providers

Travel Providers

Shifting paradigms in travel distribution… Suppliers once controlled data and used this to

their advantage, but as customers gained access to the same data they became adept at meeting their own needs

The continued flood of information is too complex and is adding to customer dissatisfaction with travel distribution

TravelerTraveler

Multiple Intermediaries

Multiple Intermediaries

“Pull”

Distribution Networks

Distribution Networks

Travel Providers

Travel Providers

“Swarm”

TravelerTraveler

IntermediariesIntermediaries

Travel Providers

Travel Providers

On/offline AgenciesOn/offline Agencies

Social Networks

Social Networks

Media & Advertisin

g

Media & Advertisin

g

Online ForumsOnline Forums

Evolution of travel distributions

© 2012 IBM Corporation9

Hot Issues and Key Questions to Focus

Hot issues in travel technology:

– exponential transaction growth / look to book ratios

– explosive distribution channel growth

– single view of customer / systems integration

– cloud computing– mobile– green compliance /

sustainability strategy– social networking / social

media– dynamic packaging– descriptive/rich visual content

For the tourism industry service providers, these are the key questions to focus:

– Which distribution channels are most / least effective?

– How does your travel distribution website compare to best-in-class websites?

– How do customers view travel distribution and fulfillment?

– Do current segmentation schemes match current and future needs?

– How can partner data be used to formulate a more robust view of customers?

– What capability gaps can partners fulfill more effectively?

© 2012 IBM Corporation10

To enable seamless travel: information aggregation and partner coordination must become top priorities in the travel industry

Does the necessary data exist?

Has it been stored for reuse?

Can the data be shared?

Can it be integrated with other data?

Can the data be analyzed for travelers?

Can the analysis be packaged?

Can it be delivered efficiently?

Can customers interact with the

information?

Will travelers be willing to pay for this

service?

Will the resulting analysis prove

useful?

The journey toward seamless travel

© 2012 IBM Corporation11

Agenda

Introduction and Industry TrendTourism EcosystemWhat is Cloud, Why Cloud – Rethink IT / Reinvent BusinessEnterprise Cloud ApproachCloud Adoption Patterns - Business Cloud Services Innovative Business Model for CloudSummary

© 2012 IBM Corporation12

Cloud Computing – A Business Value

Cloud computing is a model for enabling cost effective business outcomes through the use of shared application and computing services. The value …. if possible …. is better economics in the execution of business processes.

Cloud computing is a new consumption and delivery model inspired by consumer internet services.

Key characteristics:

On-demand self-service Ubiquitous network access Location independent resource

pooling Rapid elasticity Flexible pricing models

VirtualizationServiceAutomation

UsageTracking Web 2.0

SOA

End User Focused

© 2012 IBM Corporation13

Flexible pricingFlexible pricing

Rapid provisioningRapid provisioning

Cloud Computing is a model of shared network-delivered services, both public and private, in which the user sees only the service, and need not worry about the implementation or infrastructure

InfrastructureServices

PlatformServices

ApplicationServices

BusinessServices

PeopleServices

Built on radically scalable, manageable, virtualized IT resources

Built on radically scalable, manageable, virtualized IT resources

Service layers separated by clean APIs, enabling

composition.

Service layers separated by clean APIs, enabling

composition.

Important roles for both public and private

clouds.

Important roles for both public and private

clouds.

Consumable web-delivered services

requiring no installation, minimal setup

Consumable web-delivered services

requiring no installation, minimal setup

Elastic scalingElastic scaling

Advanced virtualization

Advanced virtualization

Standard Internet technologies

Standard Internet technologies

Cloud: A Model for Shared Services

© 2012 IBM Corporation14

Agents End Users SupportCommunity

Crowdsourcing

Customer Care Payments Int. Risk Mgmt.

Retail Banking Trade & SC Finance Single Euro Payments Mobile Banking Front Office Optimization

InfrastructureServices

PlatformServices

ApplicationServices

BusinessServices

PeopleServices

Data Mgmt. Virtualization Workload Mgmt SLA & Capacity Provisioning Security Monitoring

Dynamic Provisioning Process & Policy Mgmt. Problem & Change Mgmt.

Service Cloud Business & Operations Support

Fulfillment Assurance Billing

Mashup ServerUser Manager Service/Software

Catalogs

Open SOA Foundation (WS Framework, Service Bus)

CiC Design Space B2B

Pa

rtnerships

Exp

erie

nce

Man

agem

ent.

Industry Frameworks & Information Foundation

Distributed Cloud Computing Services

Cloud technologies offer operational expense reductions at all layers

Clouds will be used at each layer, and stacked to easily create new solutions

© 2012 IBM Corporation15

Rethink IT

Reinvent Business

•Rapidly deliver services• Integrate services across cloud environments• Increase efficiency

•Rapidly deliver services• Integrate services across cloud environments• Increase efficiency

Business and IT are attracted to cloud for different reasonsE

ffic

ien

cy

Tra

nsf

orm

atio

n

• Initiate new revenue streams•Faster time to market for new services•Focus on differentiated processes•Meet changing customer expectations

• Initiate new revenue streams•Faster time to market for new services•Focus on differentiated processes•Meet changing customer expectations

of CIOs plan to use cloud (up from 33% 2 years ago)of CIOs plan to use cloud (up from 33% 2 years ago)

60%60%

of business executives believe cloud enables business

transformation and leaner, faster, more agile processes

of business executives believe cloud enables business

transformation and leaner, faster, more agile processes

55%55%

Economics of Computing are Changing

© 2012 IBM Corporation16

Businesses are seeing significant results

Reduce IT labor cost by 50% in configuration, operations, management and monitoring.

Improve capital utilization by 75%, significantly reducing license costs.

Reduce provisioning from weeks to minutes and improve cycle times

Eliminate 30% of software defects and improve quality.

Reduce IT support costs by up to 40% for end users.

© 2012 IBM Corporation17

2006 2007 2008 2009 2010 2011

Efficient

Transformational

Disruptive

•Cost Savings•Time to market•CapEx to OpEx•Reduced TCO

•Cost Savings•Time to market•CapEx to OpEx•Reduced TCO

•Speed of transformation•Lower barriers to

innovate•Reduce risks• Increase productivity

•Speed of transformation•Lower barriers to

innovate•Reduce risks• Increase productivity

•Things are possible which were not possible before

•Create new business models

•Triggers competitive advantage

•Things are possible which were not possible before

•Create new business models

•Triggers competitive advantage

o IaaS

o Private Cloudso Cloud Managemento Further Automation

o APIso New serviceso Applications built for Cloudo Brokering

Cloud perception is evolving

Optimizing

Speeding

Enabling

2012

© 2012 IBM Corporation18

Agenda

Introduction and Industry TrendTourism EcosystemWhat is Cloud, Why Cloud – Rethink IT / Reinvent BusinessEnterprise Cloud ApproachCloud Adoption Patterns - Business Cloud Services Innovative Business Model for CloudSummary

© 2012 IBM Corporation19

Enterprise Cloud Approach

…workload optimization– Development and Test; Desktop; Collaboration; Analytics; Compute– Rapid return-on-investment and productivity gain

…deployment choices– Public, private, hybrid

…integrated service management– Service delivery, service request, service monitoring– Lowers operational costs, drives efficiency, enhances security

© 2012 IBM Corporation20

Key Consideration 1: What workloads to move to cloud and what application delivery model is best for that workload?

Networking

Storage

Servers

Virtualization

O/S

Middleware

Runtime

Data

Applications

Traditional On-Premises

Networking

Storage

Servers

Virtualization

O/S

Middleware

Runtime

Data

Applications

Platformas a Service

Networking

Storage

Servers

Virtualization

O/S

Middleware

Runtime

Data

Applications

Softwareas a Service

Vendor Manages in Cloud Client Manages

Standardization; OPEX savings; faster time to valueStandardization; OPEX savings; faster time to value

Networking

Storage

Servers

Virtualization

Middleware

Runtime

Data

Applications

Infrastructureas a Service

O/S

*Capex: Capital Expenses, *Opex: Operating Expenses

© 2012 IBM Corporation21

Ready for Cloud

Workloads Matter: Cloud adoption is driven by workloads

May not yet be ready

for Cloud …

Sensitive Data

Complex processes & transactions

Regulation sensitive

Not yet virtualized 3rd party SW

Highly customized

Analytics

Collaboration

Development & Test

Workplace, Desktop & Devices

Infrastructure Storage

Infrastructure Compute

Business Processes

Industry Applications

Pre-production systems

Information intensive

Isolated workloads

Mature workloads

Batch processing

New Industry workloads

Collaborative Care

Medical Imaging

Financial Risk

Energy Management

© 2012 IBM Corporation22

EnterpriseData Center

Private Cloud

ManagedPrivate Cloud

HostedPrivate Cloud

SharedCloud Services

PublicCloud Services

EnterpriseData Center

Third-party operated

Enterprise

Third-partyhosted andoperated

Enterprises Users

Free Register Credit Card Click to contract

HybridInternal and external service delivery methods are integrated

Private PublicIT capabilities are provided “as a service,” over an intranet, within the enterprise and behind the firewall

IT activities / functions are provided “as a service,” over

the Internet

Key Consideration 2: What deployment model is best for a given workload?

60% of CIOs plan to use cloud up from 33% two years ago…the majority being hybrid clouds

© 2012 IBM Corporation23

Enterprise Cloud adoptionpresents unique challenges

Integration of cloud and traditional IT

Migration over time

Security and compliance issues

Global business process transformation

Enterprise Cloud adoptionpresents unique challenges

Integration of cloud and traditional IT

Migration over time

Security and compliance issues

Global business process transformation

In the enterprise cloud is anevolution, revolution and game changerIn the enterprise cloud is anevolution, revolution and game changer

An evolutionary transformation to cloud is typical for enterprises and provides unique challenges

Virtualize

Standardize

Shared Resources

Automate

Cloud

Traditional IT

© 2012 IBM Corporation24

Transforming application development – end to end - for the cloud

Design Development Deployment Production

Requirements

RequirementsAnalysis

Maintain

Code Analysis & Reporting.

ALM ToolsApplication Virtualization

Performance Testing Services

Defect Analysis

Website & Mobile Application Performance

Project Initiation

Test

Application value vs. risk mapping

1

Application value vs. risk mapping

11

Project risk, pro-gress and evolution

2

Project risk, pro-gress and evolution

22

Root causes of possible disruptions

3

Root causes of possible disruptions

33

Application health diagnostics

Application health diagnostics

44

1 2

3 4

5

Key application attributes

5

Key application attributes

5

Key application attributes

55

IBM Testing Services

© 2008 IBM Corporation25 IBM Confidential

System Stability/Completeness

Missing is increasing over time and overall proportions are significantly higher than desirable at 41%

Missing decreasing over time & overall E2E proportions 25-35%

Missing percentage during UAT should be 10% - 15%

System Completeness: Qualifier over Time (Code Defects Only)

Overall Rating

Percentage of “missing” is very high compared to the benchmark, and the trend is increasing.

Overall volumes are decreasing, but higher severities and simpler defects continue to surface.

Insufficient

Defect volume trend is decreasing over time. Function defects have not surfaced for several periods. Algorithm, Assignment, and Checking defects continue to surface throughout UAT.

Defect volumes are decreasing

Sev1s = 6% overall but decreasing

Sev2s = 52% but decreasing

Defect volumes are decreasing

Sev1s = 9% overall, no obvious trend

Sev2s = 53% but decreasing

Actual

Simplest issues and total defect volumes decreasing over time

System Code Stability: Artifact Type over Time (Code Defects Only)

High severity defects and total defect volumes decreasing over time

Sev1’s <= 3%

Sev2’s <= 35%

Severity over Time, Code Defects Only

High severity defects and total defect volumes decreasing over time

Sev1’s <= 6%

Sev2’s <= 40%

Severity over Time, All Valid Defects

ExpectedMetric

IBM Testing Services

© 2008 IBM Corporation25 IBM Confidential

System Stability/Completeness

Missing is increasing over time and overall proportions are significantly higher than desirable at 41%

Missing decreasing over time & overall E2E proportions 25-35%

Missing percentage during UAT should be 10% - 15%

System Completeness: Qualifier over Time (Code Defects Only)

Overall Rating

Percentage of “missing” is very high compared to the benchmark, and the trend is increasing.

Overall volumes are decreasing, but higher severities and simpler defects continue to surface.

Insufficient

Defect volume trend is decreasing over time. Function defects have not surfaced for several periods. Algorithm, Assignment, and Checking defects continue to surface throughout UAT.

Defect volumes are decreasing

Sev1s = 6% overall but decreasing

Sev2s = 52% but decreasing

Defect volumes are decreasing

Sev1s = 9% overall, no obvious trend

Sev2s = 53% but decreasing

Actual

Simplest issues and total defect volumes decreasing over time

System Code Stability: Artifact Type over Time (Code Defects Only)

High severity defects and total defect volumes decreasing over time

Sev1’s <= 3%

Sev2’s <= 35%

Severity over Time, Code Defects Only

High severity defects and total defect volumes decreasing over time

Sev1’s <= 6%

Sev2’s <= 40%

Severity over Time, All Valid Defects

ExpectedMetric

Integration : Cloud-to-Cloud ; Cloud-to-Enterprise

xCloud Testing

Image/ & ServicesMgnt/Monitoring

Data Security

Billing &MeteringServices Optimizations

Cloud Brokering / Deployment

Cloud Deployment Topology &Security Modeling

© 2012 IBM Corporation25

Agenda

Introduction and Industry TrendTourism EcosystemWhat is Cloud, Why Cloud – Rethink IT / Reinvent BusinessEnterprise Cloud ApproachCloud Adoption Patterns - Business Cloud Services Innovative Business Model for CloudSummary

© 2012 IBM Corporation26

Infrastructure Services

Platform Services

Application Services

Business Services

2000 2006

‘People’ Services

2012

Ser

vice

Clo

ud L

ayer

s

Static, dedicated, outsourced Network-delivered, off-premises Shared, automated, dynamic

All clouds will not be the same …

Does your people cloud use knowledge-enablement and social computing to create increased value?

Does your business cloud have deep industry capability that lets me benefit from the increasing returns of sharing (e.g., information)?

Can your application cloud easily function as a component in my application?

Do you have platform and management technologies to overcome the potential complexities/downsides of multiple clouds.

Can your cloud technologies to help solve “out-of-space, out-of-power” and lower costs? Quality of service?

Questions to ask the Cloud Service Provider at every layer

© 2012 IBM Corporation27

New Cloud Computing Architecture and delivery models are already changing the application and business services ecosystem

ANALYTICSTurning data into insight to

anticipate businessconditions, avoid risks andcapture new opportunities.

STORAGEPutting rapidly increasing

volumes of data in a locationthat is scalable and accessible

from anywhere.

COLLABORATIONSimplifying and improvingdaily business interactionswith customers, partnersand colleagues.

DEVELOPMENT AND TESTDeploying virtualenvironments for theconstruction of softwareapplications.

DESKTOP AND DEVICESStoring files and applicationsremotely and pushing them to

clients in real time.

Key Future technologies:• Extreme Automation• Highly differentiated platform as a

service• Fine grained cloud security• Seamless secure operations

across private and public cloud

© 2012 IBM Corporation28

Cloud servicesBusiness Desktop• Reduce the cost of desktop hardware and

management • Safeguard data and applications• Increase business flexibility • Reduce complexity and energy consumption

Real-Time Collaboration• Work beyond the boundaries of an organization• Share information more easily with customers,

suppliers and Business Partners• Lower upfront investment and operating costs• Reduce/eliminate IT staff for implementation• Acquire services extremely easily• Provide work-ready integrated business

applications

Development and Test• Access a security-rich, standardized test and

development environment • Reduce operational costs and large amounts of

capital outlays, • Improve cycle times for faster time-to-market • Improve collaboration and quality

Managed Backup Cloud• Provide remote data protection with a managed,

offsite data backup and recovery solution that is automatic, secure and reliable

• Reduce backup windows with automated, de-duplicated technologies.

• Shift to a pay-as-you-use pricing model that enables predictable monthly costs and requires no up-front capital investment.

VPN or dedicated circuit

Applications and data

Systems (AD, DHCP,

DNS)

PCs

Thin clients

Virtual machines

Co

nn

ectio

n B

rok

er

Remote Data Protection Service

Platforms

Server and PC Data

Customer Location(s)

Offsite Data Protection

Remote Recovery Site

Wide Area

Network (WAN)MessagingCollaborationWeb conferencing

© 2012 IBM Corporation29

E-Commerce on Cloud

Helping companies transform how they buy, market, sell and service goods and services with customers and suppliers

Helping companies accelerate their ability to turn information into insights

Integrate the collective knowledge of people-centric networks to accelerate decision-making, strengthen business processes, and increase innovation

Helping cities of all sizes leverage information, anticipate problems and coordinate resources to deliver exceptional service to their citizens

Software as a service coupled with deep industry insights, business process skills and analytics

Cloud Solutions Cloud Solutions

Social Business on Cloud

Business Analytics & Optimization on Cloud

Smarter Cities on Cloud

Software and Business Process as a Service

Business Process as a ServiceSoftware as a Service

Business Analyticsand Optimization Social Business

Commerce Smarter Cities

© 2012 IBM Corporation30

Agenda

Introduction and Industry TrendTourism EcosystemWhat is Cloud, Why Cloud – Rethink IT / Reinvent BusinessEnterprise Cloud ApproachCloud Adoption Patterns - Business Cloud Services Innovative Business Model for CloudSummary

© 2012 IBM Corporation31

Major Technology Trends driving Business Change

Mobile revolution– Connectivity, access and participation are growing rapidly

– Smart devices are becoming the primary route to get connected

– Devices are getting smarter as they are increasingly enriched by mobile apps

Social media explosion– Social media is quickly becoming the primary communication and collaboration format

– “digital natives” use of technology and social media platforms is accelerating adoption

– Enterprises are adopting social media but are struggling to realize the value and manage risk

Hyper digitization– Digital content is produced and accessed more quickly than ever before

– Internet traffic is growing globally driven by consumer use of video, mobile data, interconnectedness

– An increasing number of connected devices and sensors is further driving growth

The power of analytics– New capabilities for real time analysis, predictive analytics and micro-segmentation are

emerging

– Top performing companies use analytics to drive action and business value

– Analytics are making information “consumable” and is transforming all parts of the organization, from customer intimacy to supply chain management

© 2012 IBM Corporation32

“Game Changing” Cloud Business Enablers

Source: IBV Analysis

Cost Flexibility

1

Shifts fixed to variable cost Pay as and when needed

Business Scalability2

Provides limitless, cost-effective computing capacity to support growth

Masked Complexity4

Expands product sophistication Simpler for customers/usersContext-driven

Variability 5

User defined experiences Increases relevance

Ecosystem Connectivity 6

New value nets Potential new

businesses

Market Adaptability

Faster time to market Supports experimentation

3

© 2012 IBM Corporation33

Cost Flexibility

Cloud enables businesses to reduce fixed IT costs and shift to a more variable, “pay-as-you-go” cost structure

1

Characteristics Shifts CapEx to OpEx, when

and as needed Shifts cost from fixed to

variable Generates faster payback

and higher ROI

Example: An online marketplace company

The cloud frees up capital by significantly reducing the need for IT investment

An online marketplace company provides service to buy and sell travel-related goods. In addition to bringing buyers and sellers together, the marketplace offers product recommendations based on analysis of buyer preferences.

The marketplace company uses cloud based analytics capabilities for its targeted marketing approach by renting hundreds of computers every night to analyze data from a billion views of its website.

Cost flexibility of the cloud allows the marketplace company access to tools and compute power that only large retailers could afford.

© 2012 IBM Corporation34

Business Scalability

Cloud enables businesses to grow efficiently, expanding the range of business options

2

Characteristics Rapid / elastic provisioning of

resources No scale limitations Benefit from scale economics

without achieving large volumes on your own

Example: An internet media company

Cloud’s ubiquitous and nearly unlimited computing power drives scale economics and enables self-provisioning and peak/non-peak responsiveness

An internet media company streams movies on-demand with large surges of capacity required at peak times.

The company can use cloud to rapidly scale up its business without having to buy, support and operate infrastructure and resources to meet its growth requirements.

© 2012 IBM Corporation35

Market Adaptability

Cloud enables businesses to rapidly adjust processes, products and services to meet the changing needs of the market

3

Characteristics Facilitates prototyping Speeds time to market Supports rapid prototyping

and innovation

Example: An open application platform for TV

Cloud-enabled services can be tuned for market dynamics and demand and then rapidly updated, revamped and deployed via web services

An open application platform for TV allows content providers and distributors to react immediately to changing consumer demands and deliver what the consumers want.

Cable, IP and Satellite TV providers can create and deliver interactive, on-demand content dynamically to consumers on any device.

Content providers, TV programmers and web content developers can create or change an application – for entertainment, commerce, advertising, social media, gaming or news and sports – and deploy it all-at-once for all end-users.

© 2012 IBM Corporation36

Masked Complexity

Cloud enables businesses to attract a broader range of consumers with elegantly simple solutions

4

Characteristics Expands feasible range of

sophistication in products and services

Minimizes requirements of user to understand how product works or how to maintain it

Example: the Mobile Print platform

Cloud-enabled services leave the complexity to the experts, delivering only outcomes to the end-user

The Mobile Print platform uses tools via a cloud to convert and process print requests from any mobile device (e.g. tablet, smart phone) to a printer.

It can remove complexity for users – no need to understand / install / maintain printer device drivers for their mobile devices or targeted printers.

It will reduce cost and management of supporting diverse end-user mobile devices, content-producing applications, network configurations and printer types.

© 2012 IBM Corporation37

Context-driven Variability

Cloud enables businesses to create personal experiences that adapt to subtle changes in user-defined context

5

Characteristics Supports context-driven,

user-centric experiences (preferences, movements, behaviors)

Example: A cloud-based, natural language assistant

The computing power and capacity of cloud enables individualized, context-relevant customer experiences

This is to support user defined preferences. Cloud can be used to store information about user preferences and enable the customization of product or service which is being delivered.

A cloud-based, natural language “intelligent personal assistant and knowledge navigator” that relies on context to create a more personal, intimate interaction. Leveraging the computing capabilities and capacity of the cloud, the application “understands a wide variety of ways to ask a question, grasps the context and returns useful information in a friendly way, either audibly or by displaying results.

© 2012 IBM Corporation38

Ecosystem Connectivity

Facilitating engagement, alignment and innovation, cloud enables external collaboration with partners and customers

6

Characteristics Facilitates new value nets of

partners, customers and other external players

Example: tourism value chain

More and more, companies are relying on collaborative ecosystems to provide the input for innovation that will drive their growth

New value nets can be created including subject matter experts (SMEs), shared infrastructure and services from cloud service providers. Productivity can be enhanced through customer and partner interactions.

In tourism value chain, cloud based platforms can support sharing of resources, processes and workforce between companies, hence it can also enable joint marketing and collaboration. The ecosystem connectivity enables efficiencies required in an emerging market to deliver quality tourism at low cost.

© 2012 IBM Corporation39

Using cloud’s business enablers to optimize, innovate and disrupt business models

Impr

ove

Tra

nsfo

rmC

reat

e

Enhance Extend Invent

Val

ue

Ch

ain

Customer Value Proposition

OptimizersOptimizers

DisruptorsDisruptors

InnovatorsInnovators

Customer Value Proposition

Val

ue

Ch

ain

Cloud Enablement Framework

Context-driven Variability

5

Masked Complexity

4

Market Adaptability

3

Business Scalability

2

Ecosystem Connectivity

6

Cost Flexibility

1

Cloud’s Business Enablers

Cloud offers six “game changing” business enablers …

…that are fuelling innovations across enterprise value chains and customer value propositions…

…empowering organizations to optimize, innovate or disrupt business models

Organizations need to assess themselves using the Cloud Enablement Framework and examine the potential to innovate by leveraging the cloud’s business enablers

© 2012 IBM Corporation40

Agenda

Introduction and Industry TrendTourism EcosystemWhat is Cloud, Why Cloud – Rethink IT / Reinvent BusinessEnterprise Cloud ApproachCloud Adoption Patterns - Business Cloud Services Innovative Business Model for CloudSummary

© 2012 IBM Corporation41

Six Steps to Getting Started with Cloud Be

nefit

CostHigh

High IT Provider Relationship Profile

Provider researches, recommends and implements

technology to enable quantum leap in business capability

Utility

Commodity

Provider works with others to develop a service and provide resources/skills

necessary to support the service

Provider of a quality service at a cost equal to or lower than the competition

Provider of an adequate service at a cost lower than the competition

Partner

Enabler

1Develop the Strategic

DirectionAnalyze Workloads

E-Mail, Collaboration

SoftwareDevelopment

Test and Pre-Production

DataIntensive

Processing

Database ERP

2Determine Delivery

Models

Enterprise

Private Public

Hybrid

Trad

IT

3

4Define the

Architectural Model

Service Definition

Tools

Service Publishing

Tools

ServiceFulfillment &Config Tools

ServiceReporting &

Analytics

ServicePlanning

RoleBasedAccess

OSS

BSS

Infrastructure

Platform

Software

End Users,

Operators

ServiceCatalog

OperationalConsole

Cloud Services

Cloud Platform

Build the Business Case

5 6Implement the

Roadmap

Ente

rpris

eA

rchi

tect

ure

Phase 2Phase 2

Phase 3Phase 3

Phase 4Phase 4

Phase 1Phase 1

Business ArchitectureAlignment

Data Model

Metadata

Information SystemsArchitecture

Define the information integration architecture

Info

rmat

ion

Inte

grat

ion

Information Transformation

Mas

ter D

ata

Man

agem

ent

Information Placement& Structure

Optimize data & content placement and structure across all

LOBs & technology silos

Extend the Information Integration Architecture for placement &

structure optimization

Document business directions and IT’s alignment with them,

across the enterprise

Provide a baseline of agreement by educating all stakeholders on the

fundamentals of Enterprise Architecture

Integrate information transformation with common metadata and data

cleansing services

Extend the information integration architecture across the

organization & technologies

Integrate data placement with the Information Lifecycle Management

implementation

Develop and implement enterprise-wide business architecture initiatives

Assess the existing IS Architecture for a selected set of LOBs

Develop an overall IS enterprise architecture framework to guide the enterprise

Develop and execute an IS Architecture roadmap across the enterprise

Develop metadata technical strategyPilot Metadata integration with key tools and

applicationsDocument business glossary into metadata

repository for some LOBs

Establish a cross-functional Information Architecture (Data Administration) team

Establish data entity naming standardsDefine and document common semantics (business glossary) across LOBs for some

subject areas

© 2012 IBM Corporation42

Business Cloud Summary

Cloud Computing is a model of shared network-delivered services, both public and private, in which the user sees only the service, and need not worry about the implementation or infrastructure

The Cloud has 5 distinct layers and value propositions. Very significant opportunities exist above the infrastructure level, where much of the cloud discussion has been focused previously.

The Cloud model can be truly disruptive if it can reduce the IT operational expenses of enterprises: development, management, integration, and energy consumption.

By reducing expenses and increasing efficiency and flexibility, the Cloud model of services can improve the way we manage travel, transport, airline, finance, mobile information, and more.

In the long run, development of an enterprise will depend on composable web-delivered services on flexible infrastructure: that is, the Cloud.

Moving to higher value business services with focus on “data”, “analytics” and “people”.

© 2012 IBM Corporation43

Summary

Travel industry was expected to be among the greatest beneficiaries of new, low-cost, information-rich distribution opportunities.

More than a decade later, however, online channels have mostly focus on price.

Now the new internet and cloud computing technologies and business models can offer the potential for online differentiation and the provision of value-added services and features for which tourists will pay for the services.

To capitalize on these developments, enhance the tourists travel experience and create opportunities for improved financial performance,

– the tourism ecosystem must learn to use the new cloud computing to “play well” with all the others in the ecosystem.