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

2Welcome to the end of Business as usualAndy Mulholland 2006Copyright © 2007 Capgemini. All rights reserved.

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


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

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The Consumer Internet


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


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


Right now it is …

A period of potentially huge change for Business

Generation Y is a key part of this

How do we use the “things” that make up this new world…

…to make a substantive difference?

• They, Us, You, represent the agent of change in much that is happening

• As consumers, employees and employers we are changing our expectations

• New thinking and new approaches abound

• Most of it being driven by “home” use changing peoples’ expectations

• And therefore;

• How it is done, where it is done, who does it ……

• A mixture of technology and education is changing boundaries


Work at home, socialize at work …… Interact with everyone, and everything!

Generation YUser

Sensors

Phone

Smart device

Notebook

Desktop

Media CentreDoing business means:

Buying, Selling, Adding ValueAnd Organizing

The means to do this:

Communicating, Using ContentAnd Collaborating

Working

Socializing

Buying

Selling

WorkPlace

Home

Becoming harder to find differences in the way we live and way we work


Under 35 years of age? Grew up with the

PC and networks

eMail, Contacts,

Spreadsheets

and Matrix working

Under 30 years of age? The cell phone / PDA

/ Game console

Mobility, Messaging,

Personalization & Fun

Generation Y as consumers and workers. The demographic shift!

Under 25 years of age? The Internet, Web,

Collaboration, ………

Acceptance of a different

relationship with technology

How different??

Age


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


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?


A Web 2.0 Business – www.threadless.com


The Web 2.0 Community in cars – www.scion.com


NikeID – shows interactive customization through granulization


Tesco rethinks the issue of Physical vs Virtual location

VsVs


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”


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


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.


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.


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


MashUp – www.housingmaps.com


www.Mashable.com and Mashup.com – find and create your MashUp


SOA and Web 2.0 Overlap: Information as a Service

• Can the maturing SOA frameworks provide the “fabric”?

• To mediate this “publishing, citation and emergence” ?

• Dynamically managing the metadata and the routing

• Using Policies, Events and Content rather than Top-Down Decomposition

• Ignoring the noise if we can

– Of EII Toolsets

– SOAP vs REST dogma

Workgroup

Workgroup

Workgroup

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Workgroup

Shared Services

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External Workgrou

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Workgroup

Workgroup

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Client

Repository

FeedCC

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Workgroup

Techno Business ModelsTransformation of the Business and IT structures to support a radically different Business


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

Google

Open Source


But what does this mean?

Chef• Personalized Interaction• Differentiated Experience• Innovation & Reputation

Cook Book • Choice of Combinations• Proven for Re-Use• Knowledge Management

Pie Factory• Industrialized Production• Standardized for Efficiency• Cost Effective Optimization

The concept of ‘Cook Book or Chef?’ Plus a Pie Factory

RDBMS & Data Modelling

CIF & Data W’housing & BI

Metadata, BAM & CPM

Enterprise Data Management

Client ServernTier & Components

Service Oriented

Enterprise Systems Architecture

The Internet WorldWide Web Web 20.

The Consumer Internet


The Capgemini road to Enterprise 2.0

Service-Oriented ArchitectureA label used to cover the whole topic e.g. as PC/Networking in 1990

A Service-Oriented Enterprise (SOE)is an organisation that operates more as a network of services than a hierarchy of functional units

Service-Oriented Applications (SOApps)are ‘applications’ delivered as ‘services’ in a mannerthat are aligned to Specific business operations

Service-Oriented Infrastructure (SOI)is the alignment of the technology elements of the common Infrastructure to support SOE and SOAindependently of the business logic

Service-Oriented ArchitectureA label used to cover the whole topic e.g. as PC/Networking in 1990

A Service-Oriented Enterprise (SOE)is an organisation that operates more as a network of services than a hierarchy of functional units

Service-Oriented Applications (SOApps)are ‘applications’ delivered as ‘services’ in a mannerthat are aligned to Specific business operations

Service-Oriented Infrastructure (SOI)is the alignment of the technology elements of the common Infrastructure to support SOE and SOAindependently of the business logic

Improving the current way IT is deliveredAdding new capabilities, improving business agility, speeding up implementations and cutting delivery costs

Changing the way Business can use TechnologyRedefining the way processes and information can be used, adding new value through business effectiveness

SOA + Web 2.0The impact of People and Contacts;making new markets and Revenues

1stStage1st

Stage

3rdStage3rd

Stage

Transactional I.T‘The traditional centralised enterprise IT

environment where Financial and Commercial Compliance remain the drivers supplemented by cost and agility

External Web ServicesThe use of standards in data (and increasingly process) for non competitive exchanges such as ‘book to bill’

Interactional OperationsThe new high growth wave arising from the internet and web built around standards. Delivered through SOA driven by end users understanding how to gain value from communication, content and collaboration

To ‘interact‘ for optimisation prior to making an enterprise transaction

Operating departments

Enterprise applications

Enterprise data

‘

Operating departments

Enterprise applicationsEnterprise applications

Enterprise data

SOA as a mechanism to

transact

Web 2.0 & SOA as amechanism to interact

• Business Innovative• Value Justified• Interactive Technology enabled• Line of Business Manager driven

• Compliance and Evolution• Cost Justified• Technology based• CFO and CIO driven

Open Standards connecting organisations together

New ‘Front Office’ People, using contentCommunication & Collaboration

Existing Legacy ‘Back Office’ systems

2ndStage2nd

Stage

and now….


Two distinctly different sides to applying SOA and adding Web 2.0

• Business Innovative• Value Justified• Interactive Technology enabled• Line of Business Manager driven

• Compliance and Evolution• Cost Justified• Technology based• CFO and CIO driven

Existing Legacy “Back Office” systems

SOA as a mechanism to transact

Web 2.0 &SOA as a

mechanism to interact

New “Front Office”People, using content

Communication & Collaboration

Open Standards connecting organizations together


People and ServicesInteractions

Book to Bill Data Centric Transactions

“Open Standards” and “Open Source” are the “glue”

Existing “Back Office”

SOA as a mechanism to transact

Web 2.0 &SOA as a

mechanism to interact

New “Front Office”

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

Open Standards connecting organizations together


What is Innovation for?

The three deliberately targeted possibilities

Change is inevitable; Innovation is about controlling the timing and basis of change

to be advantageous to our own business

11 22 33

The forces against innovationVolume – why?

Removes focus from current revenue

Makes the timing and cost of innovation when driven by market change too late

Margin – why?

Change interferes with optimization of current offers

An untruthful statement as margins are subject to increasing external change

Differentiation – why?

To achieve a price point improvementHow much to invest in

innovation is determined by the margin improvement

Neutralization – why? To overcome the

market advantage of a competitor

Invest to achieve a specific and defined goal

– good enough is enough

Productivity – why?

To realize a cost or time advantage beyond

incremental improvementCost based investment

case driven


Governance and Management of the ‘diamond’ by the ‘crown’

ComplyERP and Legacy Applications

OrganiseSOA for Domain Processes

DifferentiateCustomised Solutions

PersonaliseWeb 2.0


Open Innovation – buying in ideas or products to add to your model

Revenues

Costs

Market

RevenuesMarket

Revenues

Market

Revenues

Internal

Development Internal

Development

Internal &

External

Shared

Development

Sell Divest

Spin off

License

Shorter ProductLife Cycle

Increasingcosts Decreasing

costs

New RevenueSources

Golden Past Past Present Present Future


Implement Software to fit your business need and value case;

SaaS ASP Managed Service BPO TraditionalExt. Provider responsible

for specific businessfunction set such as HRor Financials & linked technical functions

A Customised Service

Int. & Ext. resources on& off site specific to

supporting the process

Client contracts withexternal service provider

on basis of everythingrequired to ensure

business functionalityis maintained

Long term fixed contractwith periodic paymentson a fixed cost over 3 or

more years

In addition to the fixedcost and payments canbe shared risk reward toimprove performance or

reduce costs

Generally fullycustomisable

Value Proposition

What is provided ?

Where is solution provided ?

Type of expenditure

Nature of relationship

Expenditure elements

Agility

Software vendor productthat bundles required

functionality into apackage

A Product

On premise softwaredeployment as part of

client IT estate

Customer – Vendor withhigh degree of ‘lock – in’

and commitment fromthe customer

Capital intensiveinvestment with annual

license cost andupgrade investments

Software Licence; Implementation;

Integration; maintenance;Hardware, Training;

Support;

Limited within the package;

Ext. Service Providerthat continuously

manages & supports thesoftware for which they

are contracted

Customised Services

Delivered on site butcould be provided from

on and off site resources

Client generally buys in3rd party software, may

Be internally developed,And separately contractsWith an external service

provider

Periodic payments Against a multi year agreement

Software License andUpgrades; maintenance;

Hardware; Managed service fees

A customised solution

Service Provider of 3rd

party software throughremote access generally

via the Web from a Hosted facility

A hosted application

Delivered to user via local client software

from a remote hostedenvironment

Client rents or leasesUse of 3rd party software

running at the ASP’sremote hosting site

‘Pay as you use’ generally with no long term commitment butwith a minimum notice

period

Customised deploymentBut limited application

flexibility

Subscription for licenseuse plus charging fornumber of users and

amount of use

Designed as a utilityservice for delivery on the

web with all elementsprovided by the SaaS

operator

Hosted set of Services

Delivered on site via theWeb using a standard

Browser as a client

Client buys a serviceon a utility basis with

no expectation ofindividual service

elements

‘Pay as you use’no long term commitment

and often no minimumnotice period

Initial service deployment chargewith on going userbased subscription

charge

Designed as a Highly configurableApplication

The End of Business as usual?

Or the time to change your game to a better one?

Summary


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!

welcome to the end of business as usual!

Technology

interactive

data whousing

business manager

content communication

long tail

cio driven

bam amp

business models