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Transcript of The Future of Enterprise IT - etouches · PDF fileThe Future of Enterprise IT ... PC,...
The Future of Enterprise IT
From Systems of Record
to Systems of Engagement
SNW
October 10, 2011
Agenda The Future of Enterprise IT
• From Systems of Record
• To Systems of Engagement
• Implications for IT
• Implications for IT Vendors
Enterprise IT: The Current State Systems of Record are Largely Complete
• Transaction systems for global commerce . . .
• Financials, Order Processing, Inventory, HR, CRM, Supply Chain
• Mainframes, minis, client-server, PC, Internet-enabled, SaaS
• Drove three decades of investment
• Data centers everywhere
• OLTP and Business Intelligence were the key drivers
• Network seen as a transport mechanism only
• Y2K put the capstone on this trend
• Pulled forward a half decade of investment
• Enterprise IT has had to go through a long “digestive” period
• Focus in past decade has been on efficiency investments
IT Innovation: For the Past Decade
Enterprise IT
On Hold
Consumer IT
On Fire
Redefining IT for Consumers The Digitization of Human Culture
• Access
• Infinite content, no barriers to entry, no barriers to exit
• Communications are globally democratized
• Microsoft, Google, Facebook, Wikipedia, OpenTable
• Broadband
• Pictures, video, shopping
• Internet touches both the mind and the heart
• Skype, iTunes, YouTube, Hulu, Netflix, Zappos
• Mobile
• PC for the emerging markets
• iPhone and iPad set the bar in mature markets
• IM, email, camera, game, wallet, magazine. . . even a phone!
How will this impact enterprise IT?
Critical Question to Ask First
• Which describes your company better?
A. B-2-B, our goal being to have hundreds to thousands of
customers each paying us hundreds of thousands or
millions of dollars per year.
B. B-2-C, our goal being to have millions to tens of millions
of consumers each paying us hundreds of dollars per
year.
6
B-2-B Ecosystems The Rise of Collaborative Business Networks
• Structure of business has changed
• OLD: Hierarchically organized integrated enterprises
• NEW: Business networks of specialized enterprises
• Business networks increase demand for
• Communication – Coordination - Collaboration
• Relationship management and trouble shooting
• This is a developed economy advantage
• Challenge: To engage with peers globally to solve problems
• Answers are not in Systems of Record
• They are in other people’s (and often other companies’) heads
B-2-B Ecosystems: Investing in Collaboration Systems of Engagement
• Collaboration burden falls on the middle of the organization
• Not front-line workers engaged in transactional workflows
• Not top executives engaged in strategic issues
• Need to invest in “IT for the middle tier”
• In-the-moment empowerment through Systems of Engagement
• Broad and easy access to Systems of Record on demand
• Systems of Engagement must meet four key design goals:
• Mobile to be in the moment
• Social to share facts and insights with others
• Ad Hoc because that’s how issues emerge
• Real Time because that’s when issues get resolved
Systems of Engagement for B-2-B
• Enterprise Facebook
• Enterprise YouTube
• Enterprise Search
• Enterprise App Store
• Enterprise Twitter
• On demand conferencing
• Global presence detection
• Mobile access to everything
• Social content management
• With more revolutionary
applications to come . . . .
Who knows
energy and
speaks
Chinese?
Who is the VP
Operations in
Client X?
How is the
quarter
coming?
I need to talk
to Harry—
where is he?
What got
decided at the
last project
meeting?
Can you do a
demo for the
field?
Let’s make sure
everyone fills out
the budget the
same way!
Let’s get
everyone
together now!
Let’s look at
the data and
get Sherry to
walk us thru it
This is the realm of
“consumerization”
Digital B-2-C Launching a New Offer On-Line
10
VIRALITY ACQUISITION
ENGAGEMENT MONETIZATION
Starter
Motor
B-2-C Ecosystems Connecting with Consumers Digitally
• From Analog Atoms to Digital Bits
• Physical goods still need—and want—retail stores
• Digital goods do not
• Digital disintermediation puts stores out of business
• Moving the Moment of Choice
• P&G: The First Moment of Choice
• P&G: The Second Moment of Choice
• Google: The “Zeroth” Moment of Choice
B-2-C Ecosystems Engaging with Consumers Digitally
• From Transactions to Interactions
• Automate the context (including the transaction)
• Engage at the core (all along the life cycle)
• Keep these two imperatives separate
• From Command & Control to Participation
• Social media is not directly under anyone’s control
• Must be present, relevant , and vulnerable
• Very tough culture change
B-2-C Ecosystems Acquiring Consumers Digitally
• Data is the driver
• Everything you need to know is on-line somewhere
• But these are tiny needles in massive haystacks
• Must find and activate them before prospect moves on
• No time for people to be in the loop
• Master data meets metadata
• Public cloud meets private cloud
• In-memory algorithms rule
Systems of Engagement for B-2-C
• Collaborative filtering
• Behavioral targeting
• Personalized transactions
• Location-based services
• Predictive analytics
• Machine learning
• Fraud detection
• Multi-channel engagement
• Near-field transaction processing
• And lots more to come . . .
Birds of a
feather flock
together!
Now that’s
what I like!
Lucky you
added that
extra inventory!
Rats, foiled
again
No more plastic!
Who’s in the
market today?
Timely!
It just seems to
get smarter!!
Just the way I
like it!
The Challenge is Where to Begin Use Moments of Engagement as a Focal Point
• Every customer-facing strategy is made or broken during a
handful of moments of engagement—what are yours?
• What person or system represents you in these moments, and
how effective are you at meeting the new expectations?
• Where could you introduce systems-of-engagement capabilities to
amplify your company’s power at these specific moments?
Do not sponsor this as an IT-only initiative
Co-innovate with Line-of-Business partners
Pilot at the point of greatest return
• Systems of Record create efficiency
• Impossible to do global commerce without them
• Focus on cost, quality, and contractual commitments
• Systems of Engagement create effectiveness
• Create compelling consumer interactions on line
• Focus on user experience, response time, time to closure
• Correct architecture
• SOEs operating on top of and in touch with SORs
• This is where the evolution in infrastructure comes in
Systems of Record + Systems of Engagement The Future of Enterprise IT Architecture
The Evolution in IT Infrastructure Consumerization Will Drive the Next $1Trillion
Morphing the Stack
Business Process Consulting
Transaction Applications
Business Intelligence
Web Application Infrastructure
Systems Management Infrastructure
Database
Operating System
Servers
Storage
Data Network
High-Performance Microprocessors
Business
Layer
Compute
Processes
Compute
Engines
Mainframes
Document-based Collaboration
Desktop Environment
The Current Infrastructure The Systems of Record Stack
High-Performance Microprocessors
Document-based Collaboration
Business Process Consulting
Transaction Applications
Business Intelligence
Web Application Infrastructure
Systems Management Infrastructure
Database
Operating System
Servers
Storage
Data Network
Business
Layer
Compute
Processes
Compute
Engines
Mainframes
Desktop Environment
Real-Time Analytics
Mobile Application Infrastructure
Public/Private Cloud Management
Infrastructure as a Service
Mobile Clients
Apps
Live Collaborative Sessions
In-Memory Caches
Voice/Data/Video Network
User Experience Design
An Evolution in Infrastructure Morphing the Stack
Virtualization Platforms
Low-Power Microprocessors
Apps
Real-Time Analytics
Mobile Application Infrastructure
Public/Private Cloud Management
In-Memory Caches
Infrastructure as a Service
Business
Layer
Compute
Processes
Compute
Engines
Live Collaborative Sessions
Mobile Clients
Voice/Data/Video Network
The Future IT Infrastructre Delivering the Systems of Engagement Stack
User Experience Design
Virtualization Platforms
Low-Power Microprocessors
Two Different Trajectories
User Experience Design
Apps
Real-Time Analytics
Mobile Application Infrastructure
Public/Private Cloud Management
In Memory Caches
Virtualization Platforms
Voice/Data/Video Network
Infrastructure as a Service
Live collaborative Sessions
Mobile Clients
Low-Power Microprocessors
Business Process Consulting
Transaction Applications
Business Intelligence
Web Application Infrastructure
Systems Management Infrastructure
Relational Data Management
Operating System
Servers
Storage
Data Network
High-Performance Microprocessors
Mainframes
Document-based Collaboration
Desktop Environment
Consolidated Suites
for
Optimization
Best of Breed
for
Differentiation
Systems of Record Stack Systems of Engagement Stack
Recap The Consumerization of Enterprise IT
• From Systems of Record
─ Still required—but with much easier access
• To Systems of Engagement
─ The new playing field—must be present to win!
• Implications for IT
─ Engage with LOB—don’t leave home with them!
• Implications for IT Vendors
─ Put on your track shoes!