Transforming Business

page iii Title page

Transforming BusinessBig Data, Mobility, and Globalization

Allison CerraKevin Easterwood

Jerry Power

Transforming Business: Big Data, Mobility, and Globalization

Published by John Wiley & Sons, Inc. 10475 Crosspoint Boulevard Indianapolis, IN 46256 www.wiley.com

Copyright © 2013 by Alcatel-LucentPublished by John Wiley & Sons, Inc., Indianapolis, IndianaPublished simultaneously in Canada

ISBN: 978-1-118-51968-4ISBN: 978-1-118-51972-1 (ebk)ISBN: 978-1-118-58323-4 (ebk)ISBN: 978-1-118-58303-6 (ebk)

Manufactured in the United States of America10 9 8 7 6 5 4 3 2 1No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning or otherwise, except as permitted under Sections 107 or 108 of the 1976 United States Copyright Act, without either the prior written permis-sion of the Publisher, or authorization through payment of the appropriate per-copy fee to the Copyright Clearance Center, 222 Rosewood Drive, Danvers, MA 01923, (978) 750-8400, fax (978) 646-8600. Requests to the Publisher for permission should be addressed to the Permissions Department, John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030, (201) 748-6011, fax (201) 748-6008, or online at http://www.wiley .com/go/permissions.Limit of Liability/Disclaimer of Warranty: The publisher and the author make no representations or war-ranties with respect to the accuracy or completeness of the contents of this work and specifically disclaim all warranties, including without limitation warranties of fitness for a particular purpose. No warranty may be created or extended by sales or promotional materials. The advice and strategies contained herein may not be suitable for every situation. This work is sold with the understanding that the publisher is not engaged in rendering legal, accounting, or other professional services. If professional assistance is required, the services of a competent professional person should be sought. Neither the publisher nor the author shall be liable for damages arising herefrom. The fact that an organization or Web site is referred to in this work as a citation and/or a potential source of further information does not mean that the author or the publisher endorses the information the organization or website may provide or recommendations it may make. Further, readers should be aware that Internet websites listed in this work may have changed or disappeared between when this work was written and when it is read.For general information on our other products and services please contact our Customer Care Department within the United States at (877) 762-2974, outside the United States at (317) 572-3993 or fax (317) 572-4002.Wiley publishes in a variety of print and electronic formats and by print-on-demand. Some material included with standard print versions of this book may not be included in e-books or in print-on-demand. If this book refers to media such as a CD or DVD that is not included in the version you purchased, you may download this material at http://booksupport.wiley.com. For more information about Wiley products, visit www.wiley.com.Library of Congress Control Number: 2012950505Trademarks: Wiley and the Wiley logo are trademarks or registered trademarks of John Wiley & Sons, Inc. and/or its affiliates, in the United States and other countries, and may not be used without written per-mission. All other trademarks are the property of their respective owners. John Wiley & Sons, Inc. is not associated with any product or vendor mentioned in this book.

About the Authors

Allison CerrA has more than 15 years experience in the telecommunications indus-try, working in both the service provider and equipment vendor categories. She has led the marketing, sales, and product strategy efforts for several new technologies including broadband, mobile, and video services. She holds two bachelor’s degrees from the University of South Florida and master’s degrees in Business Administration and Telecommunications from Southern Methodist University. In addition to Transforming Business, Allison is also the co-author of The Shift: The Evolving Market, Players and Business Models in a 2.0 World and Identity Shift: Where Identity Meets Technology in the Networked-Community Age and has published multiple whitepapers and articles about emerging user broadband trends and market potential for next-generation services. She was recognized as the Outstanding Young Alumna from Southern Methodist University in 2011, honored by the Dallas/Fort Worth chapter of the American Marketing Association as CMO of the Year for 2011, and named to the Global Telecoms Business and Dallas Business Journal’s lists of the top 40 under 40 in 2012. She serves on the boards of the World Affairs Council of Dallas/Fort Worth and the Telecommunications Industry Association.

Kevin eAsTerwooD has more than 19 years experience in both the consumer elec-tronics and telecommunications industries. He has led marketing teams focused on the definition, launch, and ongoing support of advanced communications and technology solutions in business-to-business and business-to-consumer environ-ments. Kevin holds two bachelor’s degrees from Southern Illinois University and a Master of Business Administration in International Marketing Management from the University of Texas at Dallas. In addition to being a co-author of Transforming Business, Kevin was also a principal researcher on the team behind both The Shift: The Evolving Market, Players and Business Models in a 2.0 World and Identity Shift: Where Identity Meets Technology in the Networked-Community Age.

vi A b o u t t h e A u t h o r s

Jerry Power has over 30 years experience in strategic marketing and business analysis in the telecommunications industry. With extensive expertise in the areas of mobility, optics, IP/data networking, and network management, Jerry has published numerous articles describing the impact of technology on business models and prac-tices, network architectures, operational procedures, and users. His research efforts have been discussed in both The Shift: The Evolving Market, Players and Business Models in a 2.0 World and Identity Shift: Where Identity Meets Technology in the Networked-Community Age. His research on Identity Shift was recognized with the Outstanding Market Research award in 2012 by the Dallas/Fort Worth chapter of the American Marketing Association. Jerry holds a Master of Science in Computer Science from Pennsylvania State University and has served on multiple industry committees and boards focused on improving the telecommunications industry and uncovering new, sustainable business models across the ecosystem.

Credits

Executive EditorCarol Long

Project EditorTom Dinse

Production EditorKathleen Wisor

Copy EditorCate Caffrey

Editorial ManagerMary Beth Wakefield

Freelancer Editorial ManagerRosemarie Graham

Associate Director of MarketingDavid Mayhew

Marketing ManagerAshley Zurcher

Business ManagerAmy Knies

Production ManagerTim Tate

Vice President and Executive Group PublisherRichard Swadley

Vice President and Executive PublisherNeil Edde

Associate PublisherJim Minatel

Project Coordinator, CoverKatie Crocker

CompositorMaureen Forys, Happenstance Type-O-Rama

ProofreaderNancy Carrasco

IndexerJack Lewis

Cover ImageMaureen Forys, Happenstance Type-O-Rama

Cover DesignerRyan Sneed

Contents

Prologue: The Crystal Ball. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .xi

Part 1: The Technology Trends . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1Chapter 1: The Mobile Movement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

Chapter 2: The Cloud Conundrum . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

Chapter 3: The Data Deluge . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31

Chapter 4: The Collaboration Craze. . . . . . . . . . . . . . . . . . . . . . . . . . . . 45

Part 2: The new workforce  . . . . . . . . . . . . . . . . . . . . . . . . . . . . .59Chapter 5: The Architects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61

Chapter 6: The Tightrope Walkers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75

Chapter 7: The Storytellers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91

Chapter 8: The Venture Capitalists  . . . . . . . . . . . . . . . . . . . . . . . . . . . 105

Chapter 9: The Endangered Species . . . . . . . . . . . . . . . . . . . . . . . . . . 117

Part 3: The new Face of Business and industry . . . . . . . . . . . .  133Chapter 10: The Culture Recipe . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 135

Chapter 11: The Small Business Dream . . . . . . . . . . . . . . . . . . . . . . . 147

Chapter 12: The New Civil War . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 161

Chapter 13: The Global Race  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 175

Epilogue: The Next Decade . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 191

Citations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 195

Index  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 219

D He who lives by the crystal ball soon learns to eat ground glass.

edgAr r. Fiedler, eConomist

In 1980, at an otherwise ordinary industry conference, William Synott, then Senior Vice President of the First National Bank of Boston, approached the microphone

and boldly asserted a prediction for the future of his profession. The event was the Information Management Exposition and Conference, and Synott would create a moniker, redefine the IT function, and invent a new career aspiration for the budding professionals in attendance. He stated:

The manager of information systems in the 1980s has to be Superman—retaining his technology cape, but doffing the technical suit for a business suit and becoming one of the chief executives of the firm. The job of the chief information officer (CIO)—equal in rank to chief executive and chief financial officers—does not exist today, but the CIO will identify, collect and manage information as a resource, set corporate information policy and affect all office and distributed systems.1

With that, a new title and role for information managers was born. The goal of their craft was no longer merely to be a technical expert but to combine this know-how with business proficiency to advance the goals of the enterprise.

That same year, the largest IPO in nearly 25 years was offered, creating more millionaires than any company in history. Apple would grow to become the largest technology company in the world as measured by revenue and profit, topping Google and Microsoft combined, but its origins were a bit volatile. After several unsuccessful

Prologue: the Crystal ball

P r o l o g u e: t h e C r y s tA l b A l l xii

runs at conquering the enterprise user, Apple stuck to its niche in creating elegant devices with superior intuitive capabilities and providing them to a committed base of zealots in the consumer market. By the mid nineties, the company fully embraced its consumer identity and held fast to creating cooler computers with better capabilities. By the turn of the century, the niche player succeeded where so many before it had failed in devising a commerce platform through its iTunes storefront that finally made an MP3 player worth owning. Not long after, it took the same design and commerce principles and redefined the smartphone market—one previously reserved for the serious Blackberry enterprise user, with the launch of iPhone. iPad soon followed, generating more revenues in the first quarter of its debut than the entire company had just 10 years prior.

It is fitting, if not fate, that Apple’s success would be predicated on consumer accep-tance of its better mousetraps. The same year the company went public marks the gen-esis of a generation that would grow up as the most connected in history. Millennials would mature during the age of the Internet, mobile ubiquity, and Facebook, hardly living a moment of their lives unconnected to the virtual world surrounding them. Their rabid appetite for all things digital spawned the growth of new forms of com-munication and content and upended traditional business models for companies attempting to woo a multitasking generation on steroids.

As these examples illustrate, every so often, the confluence of multiple trends creates seismic shifts that even the most visionary futurists would have failed to pre-dict given their seemingly unrelated origins. The year 1980 illustrates how disparate movements can originate in isolation, only to drift together decades later with tectonic force. Those technology-insatiable Millennials are now storming the enterprise gates and will represent roughly one-third of the workforce by 2014.2 Apple is a seemingly unstoppable juggernaut launching ever-cooler new devices to a now insatiable base of consumers that goes well beyond the niche fringes. In an ironic twist, these enthusi-astic consumers have given Apple entrée to the enterprise market that once eluded it as they increasingly use their iPhones and iPads in the work environment—in some cases, without their company’s consent. And, the CIO, once a position conceived by a visionary speaker at an industry conference and now an essential role within most private enterprises, finds himself in the eye of a perfect storm—a changing work-force with radically different work habits colliding with consumer companies that have become the gold standard in shaping how technology is used. The result some

T he C r y s Ta l B a l l xiii

decades later is perhaps the most profound shift to ripple through enterprises since the advent of the personal computer.

Fueling this transformation are employees and the expectations they bring to the workplace as by-products of behaviors first adopted in the home. The way employees work is fundamentally changing. Buoyed by the plethora of technology options sur-rounding them and the marriage of previously distinct personal and professional personas, employees (and the land grab by companies to attract and retain the most attractive of them) are at the center of this change. Of course, there are also external forces in play accelerating the momentum and creating an environment conducive to the transformation:

• Mobility—Mobility has changed work from a place employees go to a thing they do. More people have access to mobile technology worldwide than they do drinking water.3 The year 2011 marked the milestone when smartphone shipments exceeded those of PCs (including desktops, netbooks, and laptops) worldwide.4 Mobility has altered the landscape beyond simply connecting people on the go. It has reshaped expectations as to what they presume should be available from any remote corner of the globe. Although the phenomenon started in the consumer market, consumers are employees too. They expect to be just as productive (if not more so) with a smartphone, laptop, or tablet as they are from a traditional office. That’s a seismic shift for the historically brick-and-mortar, 9-to-5 enterprise attempting to address an insatiable mobile appetite among employees who crave to work when and where they want.

• Cloud—The cloud is changing the economics of scarcity. Capital is often among the scarcest resources for a firm (particularly in recessionary times or among smaller enterprises). The historic model for procuring technology within an enterprise required just that—procurement of capital- intensive devices, serv-ers, and network infrastructure along with the retention of trained staff able to manage the complexity that so often accompanies technology (think of all those aspiring IT professionals at that conference in 1980). To balance the risk of obsolescence with the scarcity of capital, enterprises often made do with technology that wasn’t always the latest or state-of-the-art. After all, employees were afforded little other alternative given that the most advanced technology options were often reserved for those with serious needs—in other words, businesses. But, somewhere around the turn of the millennium, broadband