welcome to the end of business as usual!
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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
3Welcome to the end of Business as usualAndy Mulholland 2006Copyright © 2007 Capgemini. All rights reserved.
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
??
??
??
The Consumer Internet
4Welcome to the end of Business as usualAndy Mulholland 2006Copyright © 2007 Capgemini. All rights reserved.
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
6Welcome to the end of Business as usualAndy Mulholland 2006Copyright © 2007 Capgemini. All rights reserved.
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
7Welcome to the end of Business as usualAndy Mulholland 2006Copyright © 2007 Capgemini. All rights reserved.
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
8Welcome to the end of Business as usualAndy Mulholland 2006Copyright © 2007 Capgemini. All rights reserved.
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
9Welcome to the end of Business as usualAndy Mulholland 2006Copyright © 2007 Capgemini. All rights reserved.
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
10Welcome to the end of Business as usualAndy Mulholland 2006Copyright © 2007 Capgemini. All rights reserved.
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
11Welcome to the end of Business as usualAndy Mulholland 2006Copyright © 2007 Capgemini. All rights reserved.
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?
13Welcome to the end of Business as usualAndy Mulholland 2006Copyright © 2007 Capgemini. All rights reserved.
A Web 2.0 Business – www.threadless.com
14Welcome to the end of Business as usualAndy Mulholland 2006Copyright © 2007 Capgemini. All rights reserved.
The Web 2.0 Community in cars – www.scion.com
15Welcome to the end of Business as usualAndy Mulholland 2006Copyright © 2007 Capgemini. All rights reserved.
NikeID – shows interactive customization through granulization
16Welcome to the end of Business as usualAndy Mulholland 2006Copyright © 2007 Capgemini. All rights reserved.
Tesco rethinks the issue of Physical vs Virtual location
VsVs
18Welcome to the end of Business as usualAndy Mulholland 2006Copyright © 2007 Capgemini. All rights reserved.
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”
19Welcome to the end of Business as usualAndy Mulholland 2006Copyright © 2007 Capgemini. All rights reserved.
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
23Welcome to the end of Business as usualAndy Mulholland 2006Copyright © 2007 Capgemini. All rights reserved.
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.
24Welcome to the end of Business as usualAndy Mulholland 2006Copyright © 2007 Capgemini. All rights reserved.
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.
26Welcome to the end of Business as usualAndy Mulholland 2006Copyright © 2007 Capgemini. All rights reserved.
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
28Welcome to the end of Business as usualAndy Mulholland 2006Copyright © 2007 Capgemini. All rights reserved.
MashUp – www.housingmaps.com
29Welcome to the end of Business as usualAndy Mulholland 2006Copyright © 2007 Capgemini. All rights reserved.
www.Mashable.com and Mashup.com – find and create your MashUp
30Welcome to the end of Business as usualAndy Mulholland 2006Copyright © 2007 Capgemini. All rights reserved.
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
Workgroup
Workgroup
Shared Services
SS
External Workgrou
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Workgroup
Workgroup
Workgroup
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WWW
Service
Client
Repository
FeedCC
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WWW
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Workgroup
Techno Business ModelsTransformation of the Business and IT structures to support a radically different Business
32Welcome to the end of Business as usualAndy Mulholland 2006Copyright © 2007 Capgemini. All rights reserved.
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
Open Source
33Welcome to the end of Business as usualAndy Mulholland 2006Copyright © 2007 Capgemini. All rights reserved.
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
34Welcome to the end of Business as usualAndy Mulholland 2006Copyright © 2007 Capgemini. All rights reserved.
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….
35Welcome to the end of Business as usualAndy Mulholland 2006Copyright © 2007 Capgemini. All rights reserved.
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
36Welcome to the end of Business as usualAndy Mulholland 2006Copyright © 2007 Capgemini. All rights reserved.
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
37Welcome to the end of Business as usualAndy Mulholland 2006Copyright © 2007 Capgemini. All rights reserved.
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
38Welcome to the end of Business as usualAndy Mulholland 2006Copyright © 2007 Capgemini. All rights reserved.
Governance and Management of the ‘diamond’ by the ‘crown’
ComplyERP and Legacy Applications
OrganiseSOA for Domain Processes
DifferentiateCustomised Solutions
PersonaliseWeb 2.0
39Welcome to the end of Business as usualAndy Mulholland 2006Copyright © 2007 Capgemini. All rights reserved.
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
40Welcome to the end of Business as usualAndy Mulholland 2006Copyright © 2007 Capgemini. All rights reserved.
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
42Welcome to the end of Business as usualAndy Mulholland 2006Copyright © 2007 Capgemini. All rights reserved.
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!