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SMAC-IT

www.DKL.comSUCCESS REQUIRES A DIRECTION... CHOOSE YOUR PATH

HOW SOCIAL, MOBILE, ANALYTICS, CLOUD, INTERNET OF THINGS DISRUPTS AND CHANGES BUSINESS IN REAL TIME

http://www.dkl.com

http://www.dkl.com

A COMPLEX WORLD➡ Long gone are the days when corporate IT strategy remained predictable.

➡ In today’s social-‐media driven business world—where topics and headlines go viral in minutes, where mobile apps connect millions of people to corporate databases, and where engineering can add sensors to every product crea?ng significant data analy?cs challenges—the nature of technology is disrup?ng the IT business landscape like never before.

SUCCESS REQUIRES A DIRECTION... CHOOSE YOUR PATH

ONCE UPON A TIME…➡ Computers lived on raised floors, behind walls

➡ Only a select few were trained/allowed to interact with them

➡ Big problems were solved (payroll, banking, inventory…)

➡ Most of them in batch, overnight

➡ “Systems of Record”


➡ Computers came out from behind the walls‣ Into factories, offices, homes

➡ More people were ‘allowed’ to interact with computers

➡ More kinds of problems were solved (travel, drafting/design, POS…)‣ Many of the problems required online interaction

➡ “Systems of Engagement”

OVER TIME


TODAY AND TOMORROW➡ Ubiquitous computing: more intelligence, more places

➡ Everybody has skills/tools to interact with/use computing

➡ Entirely new classes of problems are being found/solved (payments, shopping, security, robotics…)

➡ And interaction is real-‐time, online, all the time

➡ “Systems of Insight”


DISRUPTION IS RAMPANT➡ Industries are being created out of nothing

‣ 2014 video game revenue ($102B) exceeds movie revenue ($88B)

➡ Industries are being disrupted by new entrants

‣ “Sharing economy” (e.g., Uber: value of a NYC taxi medallion decreased by 1/3)

➡ Traditional firms being forced to reinvent themselves

‣ ZF (auto transmissions) bought TRW for radar technology

DISRUPTION IS RAMPANT➡ Industries are being created out of nothing

‣ 2014 video game revenue ($102B) exceeds movie revenue ($88B)

➡ Industries are being disrupted by new entrants

‣ “Sharing economy” (e.g., Uber: value of a NYC taxi medallion decreased by 1/3)

➡ Traditional firms being forced to reinvent themselves

‣ ZF (auto transmissions) bought TRW for radar technology


DISRUPTIVE IT AT THE HEART: THINK “SMAC-IT”Social | Mobile | Analytics | Cloud | Internet of Things

As interesting as each of these is by itself, the interaction among them creates even more opportunity for disruption


DISRUPTION #1: SOCIAL➡ A ‘facebook’ was a dead-‐tree book given out at Ivy League schools to promote community

among incoming students

➡ Facebook started at Harvard in 2004. Then other colleges. Then high schools in 2005. Today it has 1.4B active users

➡ Other social networks: QQ (832M users), WhatsApp (800M), QZone (668M), Twitter (316M), Google+ (300M), Instagram (300M), SnapChat (200M), LinkedIn (97M)

➡ Maybe more important: Yelp (142M), Ripoff Report (52M)


HOW FIRMS USE SOCIAL MEDIA➡ To target advertising

(“Half my advertising is wasted; I just don’t know which half”—John Wanamaker)

‣ Interest Targeting

‣ Behavioral/Connection Targeting

‣ Custom Targeting

‣ Lookalike Targeting

‣ Conversion Tracking


➡ To foster ‘communities of engagement’—consumers who choose to discover, use and interact with the firm and its brands

‣ “Crowdsourcing” engages interested/specialized people for ideas, feedback, effort

➡ To sense/respond faster

‣ Remember the Yelp/Ripoff Report audience

WHY SOCIAL MATTERS➡ Advertising is transforming from a one-‐way message to a dialog

➡ Consumers’ voices can be heard around the world

‣ The Good: product ideas can be sourced or tested quickly, cheaply

‣ The Bad: complaints need to be dealt with in new ways

‣ Feedback is immediate and public, so be careful how you use it


SOCIAL IT IMPLICATIONS➡ Connect Social data with prospect & customer data

‣ For targeting‣ For selling‣ For contact center

➡ Tools to analyze large amounts of unstructured data in real time‣ To sense trends‣ To respond quickly

➡ Tools to move huge amounts of data from social providers to systems of record/engagement


DISRUPTION #2: MOBILE➡ Incredible size and even more incredible growth

‣ Global mobile devices grew from 6.9 billion to 7.4 billion (2013-‐2014)

‣ Traffic grew from 1.5 exabytes/mo to 2.5 exabytes/mo (2013-‐2014)

‣ 1.9 billion smartphone users in 2015

➡ Mobile accounts for 30% of online transactions, 25% of travel, 51% of internet engagement time


HOW FIRMS USE MOBILE➡ “Traditional” consumer uses

‣ Advertising

‣ Loyalty apps

‣ Content delivery

➡ Business uses

‣ Location Tracking

‣ Barcode/RFID/Zigbee scanning


➡ Disruptive uses

‣ Beacons (hyperlocal advertising…think “Minority Report”)

‣ Wallet (Apple Pay, Samsung Pay, PalPal.me/Venmo, etc.)

‣ Virtual Reality (Google Glass) ‘object tagging’

WHY MOBILE MATTERS➡ The world is going mobile

‣ Accelerating growth in users, data

➡ Mobile extends the connection from the center of the firm to the edge and beyond

➡ Business applications trailing consumer uses—for now


MOBILE IT IMPLICATIONS

➡ Support for 10x-‐100x number of network endpoints

➡ Huge data storage/throughput increases

➡ Identity Management/Authentication links to corporate systems


DISRUPTION #3: ANALYTICS➡ Analytics encompasses the tools needed for analyzing data and for managing huge

increases in data (“big data”)

➡ Data volume is increasing faster than most of us can fathom:(1 Exabyte (EB)= 1 MILLION Terabytes)‣ 2009: 790 EB‣ 2015: 7,900 EB‣ 2020: 35,000 EB (44x growth in 11 years)‣ Social & Mobile growth (and later, IoT growth) are increasing data volume‣ It is estimated that unstructured data accounts for 70%+ of all data

➡ Database, Data Warehouse and Business Intelligence tools are growing in both capacity and ease of use, increasing access to insight


HOW FIRMS USE ANALYTICS➡ Managing the business better

‣ Demand forecasting

‣ Pricing

‣ Weather forecasting

➡ Interacting with consumers better‣ Trend analysis (fashion, complaint resolution)

‣ Fraud analysis (credit cards)

‣ Rush-‐hour route optimization (testing in Stockholm)


WHY ANALYTICS MATTERS➡ Ability to ingest and analyze huge amounts of data in a timely manner allows optimization of many

processes

➡ Ability to analyze semi-‐structured and unstructured data from social presence allows understanding of fluid situations (fast-‐developing fads, product problems requiring action (recall, e.g.), competitor moves)

➡ It’s not just the data

‣ Lower cost analytics tools from established vendors (e.g., Microsoft Office365 add-‐ins) and from disruptive entrants (Zoho, Birst, Tableau, QlikView, etc.) make analysis more widespread rather than concentrated in the hands of a specialized few


ANALYTICS IT IMPLICATIONS➡ Big data needs will challenge existing infrastructure

‣ Example: ‘smart meters’ read 4 times/hour instead of 1/month=288,000% increase in data (needed a specialized data management tool)

‣ Look at Hadoop/Spark/Storm…but z/OS and DB2 might just work better(http://davebeulke.com/hadoop-‐big-‐data-‐solution/)

➡ Rise of lower-‐cost (often cloud-‐based) analytics tools will increase the need to move data around and provide access. Security & ETL tools will become even more important…along with bandwidth


http://davebeulke.com/hadoop-big-data-solution/

http://davebeulke.com/hadoop-big-data-solution/

DISRUPTION #4: CLOUD➡ We’ve been “timesharing” and

“outsourcing” IT functions to specialists since the 1960’s


➡ What does “cloud” even mean?

‣ Private, public, hybrid

‣ Public can mean AWS, Azure, Google (mega-‐providers)

‣ Public can mean Rackspace, CenturyLink, IBM/SoftLayer (MSP/colo providers)

‣ “X”aaS

‣ “I”nfrastructure as a Service

‣ “P”latform as a Service

‣ “S”oftware as a Service

HOW FIRMS USE CLOUD➡ Getting out of the infrastructure business

‣ CapEx -‐> OpEx

‣ “Surge” capacity instantly available

➡ Increasing Agility

‣ New infrastructure architectures spun up in minutes

‣ Developers don’t have to wait

‣ SaaS apps deliver enormous functionality


➡ Backup & D/R

‣ Very resilient architectures

‣ Global footprints

WHY CLOUD MATTERS➡ The cloud is different, but the same


‣ Different‣ Hyperscale data centers‣ Standardized architectures & APIs‣ “Bite-‐sized” SKUs (Virtual Machines, Containers)‣ Low network latency + incredible bandwidth

‣ Same‣ It’s still YOUR problem‣ Architecture‣ Security‣ D/R‣ Budget Management

‣ Infrastructure is interesting, but it’s really about business enablement

CLOUD IT IMPLICATIONS➡ The cloud is here—get over it

➡ Data movement Inside<-‐>Outside is vital (as is data management)

➡ Security must extend across the extended enterprise

➡ Virtualization is the key to everything

➡ SaaS vendors will ‘steal’ your customers—if you let them

‣ IT processes can be/must be optimized for ‘cloud speed’

‣ Does every application need heavy (slow) customization?

‣ Does every application need constant (untested) releases?

➡ All this stuff is interesting, but the real value is business enablement


DISRUPTION #5: IoT➡ Internet of Things (aka “Industrial Internet”) is the networking of sensors and/or actuators to allow

interaction among physical devices

➡ 7B objects in 2013 -‐> 30B by 2020

➡ Real-‐time sense/respond creates new opportunities and new problems


HOW FIRMS USE IoT➡ “Smart Meters” allow time-‐of-‐use electricity pricing and optimize grid

➡ Monitor machinery to predict immanent failure and schedule PM

➡ “Smart home” improves safety & comfort

➡ Self-‐driving vehicles change the face of transportation


WHY IoT MATTERS➡ Vast streams of information will create valuable new products/services

➡ Technology component of most every product will increase

‣ The Nest thermostat tells Nest smoke alarms “nobody is home”

‣ Imagine temperature/light sensors in wall paint and carpets

‣ Imagine your clothes dryer asking your electric meter whether it was ‘night’ (free power) when you pressed ‘start’

➡ Creators of ‘smart’ products can gain a first-‐mover advantage and define ecosystems


IoT IT IMPLICATIONS➡ Huge numbers of IP addressable devices (IPv6)

➡ LOTS of data to collect, filter, analyze

‣ Too much to centralize (Cisco calls it ‘the fog’)

➡ Rapid movement of data into core systems will be key for sense/respond

➡ Rapid decision-‐making needed for real-‐time control


DISRUPTING THE TRADITIONAL MODEL➡ Systems of Record-‐>Engagement-‐>Insight

➡ Core applications/databases still relevant

‣ Fast online response

‣ Fast/flexible ETL to/from many endpoints

➡ When everything is a computer, where’s the data?

➡ When everyone has skill/tools, who’s the owner?

➡ When everything is available to everyone, what’s the nature of privacy?


THANK YOUContact us today for your free consultation.

Phone: +1.800.267.0730 Ext. [email protected]

www.DKL.comSUCCESS REQUIRES A DIRECTION... CHOOSE YOUR PATH

mailto:[email protected]

mailto:[email protected]

http://www.dkl.com

http://www.dkl.com

don't get smacked by smack-it

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