Mastering Digital Business Strategy through Five Webs

IT EVERYWHERE: WHY DO WE CARE?

Professor N. Venkat VenkatramanBoston University School of Management

Twitter :@NVenkatramanLinkedIn: NVenkatraman

IBM ASL @ Boston UniversityMay 2012

IT’S ALL AROUND..

Products

Processes

Services

LET US LOOK AT SOME NUMBERS

& TRENDS...

WORLDWIDE INTERNET USERS IN DECEMBER 2011

~2.2 Billion

WORLDWIDE MOBILE PHONE

USERS IN DECEMBER 2011

~5.6 Billion

FACEBOOK USERS* (APRIL

2012)

~901 million* Not including China

SMART PHONES OUTSOLD PCS AT THE END OF

2011

~500 million

SKYPE IS NOW PART OF

MICROSOFT

$8.5 billion

MOTOROLA IS NOW PART OF

GOOGLE

$12.5 billion

APPLE’S MARKET CAPITALIZATION

$530 billion* May 5, 2012

FIVE WEBS FOR

CREATING & CAPTURING VALUE

Machine Web|Industrial Internet

Realtime WebMobile Web

Media Web Social Web

ONE COMPANY’S VISION

INSIGHTS & IMPLICATIONS

Impact

Time

Defend Today’s Core

Horizon 1

Augment Today’s Core

Horizon 2

Create Next Core

Horizon 3

Are conversations with your clients focused on

horizon 1 or beyond?

1. MOBILE WEB

5 BILLION SMARTPHONES BY 2020

CountryMobile

Subscriptions % of Population

China 1.01 Billion 75%

India 903 Million 75%

USA 327 Million 104%

Indonesia 250 Million 105%

Brazil 245 Million 127%

Russia 225 Million 154%

91% 88%

Mobile Broadband Penetration Leaders

2007 “Leaders” “Challengers”

2012 “Leaders” “Challengers”

Mobile Apps are

Everywhere....

0

150000

300000

450000

600000

July 11, 2008 January 5, 2010 March 5, 2012

Number of Apps

0

7500

15000

22500

30000

July 11, 2008 January 5, 2010 March 5, 2012

Number of Downloads (Millions)

+

AN EXAMPLE:MOBILE WEB IN

RETAIL FINANCIAL SERVICES

WHAT ABOUT VISA?

Impact

Time


Horizon 1


Horizon 2

Create Next Core

Horizon 3

Products

Processes

Services

1. MOBILE WEB

5 BILLION SMARTPHONES BY 2020

How are you helping

your clients navigate

the mobile web?

Horizon 1 or 2 or 3?

2. SOCIAL WEB

To make the world more open and connected

0

250

500

750

1,000

3/2009 6/2009 9/2009 12/2009 3/2010 6/2010 9/2010 12/2010 3/2011 6/2011 9/2011 12/2011 3/2012

Facebook Monthly Active Users (millions, worldwide)

901m

Source: Facebook (S-1)

AUTHENTIC IDENTITY &

SOCIAL GRAPH

Fb

Google

FROM WEB PAGES TO FB PAGES

Web

FB

B2C B2C

C2B

C2C

C2B & C2C C2C

Strength

PrivateMessage

B2C

Check-inDeals

Sponsored Ads

Promotions

StoresOpen Graph/API

Facebook Credits

FACEBOOK LINKS OFF-LINE WITH

ON-LINE

FACEBOOK TIMELINE

FACEBOOK SOCIAL APPS

+Cooked it

Add to Timeline

Impact

Time


Horizon 1


Horizon 2

Create Next Core

Horizon 3

2. SOCIAL WEBHow are you helping

your clients navigate

the social web?


MEDIA WEB

• 4 billion + views every day

• 3 billion hours of video watched each month

• 800 million monthly unique visitors

• 60 hours of videos uploaded every minute

• 70% of traffic outside USA

• 98% of AdAge’s top 100 advertisers run campaigns

Source: YouTube

0

28

55

83

110

Daily Unique Viewers (millions) Videos viewed (billions)

Dec 2010 Dec 2011

43.5b

30.1b

105.1m

73.7m

KHAN ACADEMY ON MEDIA WEB

Facebook integrating video streaming

Impact

Time


Horizon 1


Horizon 2

Create Next Core

Horizon 3

How are you

helping your clients

navigate the media

web?


REALTIME WEB

Do you tweet?

22,419,055

13,922,698

5,945,789

19,705,870

Tweeting and Retweeting about the

Japanese natural disaster

WEAVING THE WEBS TOGETHER

To Become the “Largest Participatory Brand in the

World”

Realtime Web

How are you

helping your clients

navigate the realtime

web?


•How do the five webs impact the future of your client?

•Have your clients recognized the shifts and responded to them?

•Are you part of the conversation & transformation?

Questions for YOU

WHAT’S YOUR ROLE?

IT’S ALL AROUND..

Products

Processes

Services

• help clients understand the power of these webs

• help build capabilities beyond horizon 1 to 2 & 3

• co-create business value in the digital world

• bring the best of IBM to collectively address client needs

What’s Your Role?

“The difficulty lies not so much in developing new ideas as in escaping from old ones.”

http://thinkexist.com/quotation/the_difficulty_lies_not_so_much_in_developing_new/148129.html












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Mastering Digital Business Strategy through Five Webs

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