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Economics 2.0
Highly Effective Strategies for Putting Your Business on a Recession Diet
Dion Hinchcliffe
Introduction
Dion Hinchcliffe• ZDNet’s Enterprise Web 2.0
• http://blogs.zdnet.com/Hinchcliffe
• Social Computing Magazine – Editor-in-Chief
• http://socialcomputingmagazine.com
• Enterprise 2.0 TV Show
• http://e2tvshow.com !
• Hinchcliffe & Company• http://hinchcliffeandco.com
• mailto:[email protected]
• Web 2.0 University• http://web20university.com
• Twitter: dhinchcliffe
The Plan
• 9:00am - noon
• Break at 10:15am
• Twitter tags #w2e and #econ2
• Google Moderator
• http://bit.ly/econ2questions
• Slides at [email protected]
Overview
• Exploration of new ways of doing old things
• New economic, social, and cultural models
• With an emphasis on 2.0
• Pragmatic exploration of how they promote resilient, sustainable business models
• We’ll look for evidence that they work.
• Or debunk them.
• Or just confirm they are promising.
The Map of Opportunity
Creating new rapid growth online products powered by:• Peer Production
• Jakob’s Law
• The Long Tail
• Blue Ocean
• NetworkEffects
Reinventing the customer relationship to drive revenue:
• Customer Communities
• Customer Self-Service
• Marketing 2.0
Driving costs down through less expensive, better 2.0 solutions:
•Lightweight IT/SOA
•Enterprise mashups
•Expertise Location
•Knowledge RetentionImproving productivity and access to value:
•Enterprise 2.0
•Open APIs
•Crowdsourcing
•Prediction Markets
Business Remodeling and Restructuring
•BPM 2.0
•Employee Communities
•Cloudsourcing
•Pull Systems
Change Management•Transformation Communities
•2.0 Education
•Capability Acquisition
Fostering Innovation
•Internal Innovation Markets
•Open innovation
•Database of Intentions
Leveraging Innovation•Product Incubators
•Open Supply Chains
•Product Development 2.0
•Some Rights Reserved
Innovation
Transformation Cost Reduction
Growth
Current Business
State
The major shifts
• In who creates value (the network does)
• How much control we have over our businesses
• How intellectual property works
• Great increases in transparency and openness
• Open supply chains, community-based processes and relationships
Avoiding “cargo cults”
• Cargo Cult n. A group conducting rituals imitating behavior that they have observed among the holders of desired objects.
Evaluating candidates
• The criteria:
• Cheaper: Less waste, more efficient, and lighter weight.
• Better: Faster, richer, and other intrinsic improvements.
• Innovative: New types of products and services, different lines of business. A future.
The challenges
• Cultural “chasms”
• Disruption
• Cost
• Risk
• Difficulty
• Repeatability
The biggest challenge is in changing our thinking
However, it’s usually a people problem:
Rating the Economics 2.0 contenders
Proven Benefit
RepeatabilityChallenges
Uncertain Results
Ready for Wide Adoption
Strategic Industry Play
Suitable for Experimentation
QuestionableValue
Ideal for Early Adopters
The network is abig place today
• All your customers
• All your competitors
• All the ideas and innovation
• Only a few proven strategies for long-term competitive advantage
Never before reached level of scale is driving new changes
Likely candidates
Product Development
Marketing
Sales
Operations | IT | Back Office
Line of Business
Customer Service
crowdsourcing
onlinecommunity
cloud computingmashups
open APIsSaaS
Enterprise 2.0 &Open Business Models
2.0development
platforms
(social media in the
enterprise)
Product Development 2.0
No small system can withstand sustained contact with a much larger system without being
fundamentally changed.
The motive forces of 21st century economics
• Network effects
• Peer production
• Self-service
• Open business models
• New social power structures
that we
know of so
far
^
What is a Network Effect?
• A network effect occurs when a good or service has more value the more that other people have it too. - Wikipedia
– Postal Mail
– Phones
– Instant Messaging
– Web pages
– Blogs
– Anything that has an open network structure
Building Sustainable Value
• Even small network have large potential network effects
• But very large networks have astronomical network effects
• Recent Discovery: Reed’s Law, which say social use of networks are by far the most valuable
Social Business(aka Enterprise 2.0)
Modern Social Computing:Enterprise 2.0
• Concieved by Harvard Business School Professor Andrew McAfee
• Defined as emergent, freeform, social applications for use within the enterprise
• Primarily to improve the collaboration problem (discussed shortly)
• The use of blogs and wikis to capture institutional knowledge, make it discoverable and let structure and organization emerge naturally
Applying the “Web 2.0 effect” at work
• Enterprise 2.0
– Globally visible, persistent collaboration
• Employees, partners, and even customers
• Leaves behind highly reusable knowledge
– Uses wikis, blogs, social networks, and other Web 2.0 applications to enable low-barrier collaboration across the enterprise
– Puts workers into central focus as contributors
– Case studies of early adoption consistently verifying significant levels of productivity and innovation
Enterprise 2.0 systems adapt to the environment, rather
than requiring the environment to adapt to it.
Perceived Benefits Of Enterprise 2.0
• Increased knowledge retention
• More adoption and use of knowledge management tools
• Emergent structure and processes
• Increased transparency
• Less duplication of effort
• Higher level of productivity
Why is Enterprise 2.0
different?
• Maturation of techniques that leverage how people work best
• Realization of the power of emergent solutions over pre-defined solutions
• Nearly zero-barriers to use
• Low cost
• Network effect driven
The Enterprise 2.0 Checklist
• SLATES
–Search
–Linking
–Authorship
–Tagging
–Extensions
–Signals
SLATES unboxed...
Enterprise 2.0: Richer Outcomes
Push vs. Pull Based Systems
Two more important reasonsfor Enterprise 2.0
• Non-interruptive and leveragable...
Challenges:The enterprise is not the Web
• We want to replicate the positive aspects of Web 2.0 platforms in the enterprise
• But our infrastructure is usually not very Web-like, creating significant impedance and diluted results
• Requires augmentation and adaptation to reproduce the same or similar results
Enterprise 2.0 Ecosystems
deeplylinked
structure
Peer ProducedKnowledge
Internal Applications andDatabases
Enterprise 2.0 Applications
Blogs and Wikis(Social Media)
Prediction Markets(External and Internal)
Enterprise Social Network
Industry Social Network
Other Web 2.0 Tools(del.icio.us,
Flickr,Twitter,
Friendfeed) Enterprise Mashups
Integrated Search
participation
Significant Motivation ExistsTo Adopt Enterprise 2.0
• Increased levels of productivity that were inaccessible until now
• Enablement of tacit interactions on a previously unknown scale (Source: McKinsey & Company)
Enterprise 2.0 has the potential to
increase productivity in complex
interactions, where previous attempts have largely failed
Enterprise 2.0 Benefits
• Hundreds of Enterprise 2.0 projects exist worldwide currently
• Based on aggregation of all known contacts and citations
• Many implementations are not “official” pilots
• Anecdotal evidence and market research both indicate SMBs are slow to adopt
• 1/3rd of enterprises as of this year
• But large enterprises are buying...
The majority of Global 2000 firms are now buying Web 2.0 tools
• Early success stories emerging
• Case studies now exist from:
• Bank of America, Boston College, Dresdner Kleinwort Wasserstein, IBM, Janssen-Cilag, Motorola, Northwestern Mutual, P&G, Siemens, SAP, T. Rowe Price, U.S. Hospital, Volvo, Wells Fargo, and many others.
• Most results are very positive
• Generally reporting better communication, improved cross-pollination and leverage of knowledge, higher productivity, and few of the early expected problems
• Other results harder to pin down: better innovation
Enterprise 2.0:The bottom line
• Repeatable
• Medium Risk
• Proven Benefit
• Rapid ROI
• New Transunion Enterprise 2.0 case study with dramatic ROI: $3.5M recoup in 5 months with $50K investment: http://bit.ly/O74W
Ready for Wide Adoption
Open Supply Chainsalso
known as
APIs
vs.
The Platform Overtakes the Web Site
:
Example: Amazon
• 1st Gen. Product: E-commerce store– No differentiation– Scaling of a single site– Single site
• 2nd Gen. Product: E-commerce platform– 55,000 partners using their e-commerce APIs live– Scaling of the Web
• 3rd Gen. Product: A series of Web platforms– Simple Storage Service (S3)– Elastic Compute Cloud (EC2)– Mechanical Turk (Mturk)– Many others– 300K businesses build on top of what they’ve produced
• 2nd and 3rd generation platforms generate large net revenue
S3EC2
Open Platform vs. Closed Platform
The Market Share Opportunity
• The vast majority of Internet user activity is elsewhere, on 3rd party Web sites and applications
• If firms could reach this traffic, the growth potential is as large as the Web itself
• Reaching this traffic before competitors do can result in successful marketshare “lock-out”
• Businesses able to cost-effectively integrate with a large number of partners to grow
• Access and offer value to existing ecosystems of customers
Open API
PartnerPartnerPartnerPartner
Partner Partner Partner Partner Partner
Partner Partner Partner Partner Partner Partner
Partner Partner Partner Partner Partner Partner Partner
Live Web Integration
Tens of Thousands of Dynamic Web Partners
Direct Revenue
AdditionalRevenue viaUsage Fees,
Advertising, etc.$$$Monetization
Boundary
+
+
Opportunity:Going To the Customer
and Open Web APIs
New Business Division:
Interact
Interact
Consumer orBusiness Online Business
Platforms vs. Applications
Native App
Web Application
Open Widgets
Facebook/Open Social
Web APISDK, Developer Community, SLA,
Billing
Distribution Models Target Audiences
Consumers
Small BusinessesMedium-Sized Business
Power/Web Saavy Users
Developers
Businesses
existing
Platforms vs. Applications
Native App
Desktop Client API
Open Widgets
Facebook/Open Social
Open Web APISDK, Developer Community, SLA,
Billing
Distribution Models
10M Users
Order of MagnitudeDistribution Method
Push
10M Users Pull
10-20M Users Pull
100M+ Users Pull
Key API Goals
• Leveraging existing investments as much as possible (reduce rework in design and architecture)
• Protect intellectual property around proprietary capabilities
• Select API model that will result in 1) the most developer uptake and 2) access to the largest possible audience
• Selecting a discriminating factor (rich vs. reach)
• Scope: Graduated capability vs. full initial API
The Distribution Opportunities
850 million PCs- windows, mac, linux- medium distribution impedance - anti-virus - admin rights - end-user knowledge- rich runtime capabilities
1.3 billion internet users- ie, firefox, mozilla, safari, opera- lowEST distribution impedance - 99% flash penetration - zero footprint - some run-time limits
3.5 billion wireless users- 40+ hw/sw platforms- high distribution impedance - highly variable run-time - many carriers and rules - limited run-time capabilities
flash 99.9%Silverlight 10%
Java web start 5-50%
Long-term future usage breakdown w/API
Existing Web Site or Application
Facebook Apps
3rd Party Web Apps
Open Social Apps
iPhone Apps
Web Widget Apps
Web Mobile Apps
Embedded Apps
Other Apps
• Reach every distribution channel possible
• Leverage 3rd party customer bases
• Cut off competitor’s growth OPPORTUNITIES
• Ride the MAXIMUM POTENTIAL growth curve
• Harness innovation of hundreds and thousands of 3rd party developers
Reasons Developers Select APIs
• Provides access to functionality not possible to develop internally
• Easy to use and integrate with
• Good documentation and easy to get started
• Reliable, well-known, scalable
provider that is trusted
• Developers can get answers to
questions, support, and
problems fixed when bugs are
found
• Strong user base for 3rd party
developers to tap
Key to initial adoption Key to long-term adoption
“Platforming” Your Business
• Requires opening the server-side to 3rd party developers
• Allowing the construction of widgets and Web apps offering some or of all of your functionality by external partners
• Harnessing the innovation on the network
• Generating the greatest potential reach, competitive lock-out, market share, and revenue
Open Supply Chains:The bottom line
• Good repeatability
• Can be costly
• Unproven in certain industries
• Proven ROI
Strategic Industry Play
Mashups
A Short History of Software
Connecting people and data
• SOA is a modular software architecture, and the modules are services designed to interact with each other.
– Important Note: SOA also contains higher order constructs such as composite applications, orchestration, coordination, and more exist.
• We tend to rely on open standards to encourage automatic interoperability of services designed separately.
– A good SOA could still violate this rule however
– See Thomas Erl and Seven Principles of SO
Key Points
• Gartner has reported that Service-Oriented Architecture is the leading organizing principle in the enterprise space, with 80% of all development using SOA principles in 2008.
– They’ve also said that all organizations should have begun getting their lines of business on a Web 2.0 architecture by 2008
• McKinsey and the Sandhill Group report that Web 2.0 in the enterprise will be one of the major disruptive influences in enterprise software in the late 2000’s.
A key Goal of Web 2.0 and SOA:Turning Applications Into Platforms
• Openly exposing the features of software and data to customers, end-users, partners, and suppliers for reuse and remixing
• This strategy requires documenting, encouraging, and actively supporting the application as a platform
– Has serious governance implications
• Provide legal, technical, and business reasons to enable this :
– Fair licensing, pricing, & support models
– A vast array of services that provide data that uses need
– A way to apply these services to business problems rapidly and inexpensively.
But existing integration models have been challenged
• Most SOA initiatives are delivering low ROI to the business
• The reasons are many but boil down to:
– SOA technologies have proven to have challenges compared to more successful models.
– Top-down enterprise architecture moves slower than the environment changes.
– Important avenues of SOA consumption and production points were often excluded from participation.
The results of a large new SOA effectiveness study:
•“It has become clear to me that SOA is not working in most organizations.”
– Anne Thomas Manes, Burton Group
Demand for Breadth Integration
• “48 percent of the CIOs we surveyed said that they plan to implement service-oriented architectures for integration with external trading partners this year.” – McKinsey & Co.
And we now have real-world experience with traditional means of connecting to our data
• Traditional Web services was a good first try but has a long list of challenges for the outcomes we desire today.
• The model of the Web has continued to teach us about how to structure information and services.
Strange Attractors: Similarities between Web 2.0 and SOA
• Web 2.0
– Software as a service
– Interoperability based on Web principles
– Applications as platforms
– Encourages unintended uses
– Mashups
– Rich user interfaces
– Architecture of Participation
• SOA– Software as services
– Interoperability based on heavyweight standards
– Applications as platforms
– Permits unintended uses
– Composite Apps
– Little user interface guidance
– Little prescription of user participation
Enabling New Consumption Scenarios
• Cut-and-Paste deployment anywhere on the Intranet
• Consumption of the SOA in any application that can use a URL
• Discovery of data via search
• Integration moves out of the spreadsheet
Definition: Mashup
• “A mashup is a Web site or Web application that seamlessly combines content from more than one source into an integrated experience.” - Wikipedia
• Content used in mashups is usually sourced from a 3rd party via a public interface (API)
• Other methods of sourcing content for mashups include Web feeds (e.g. RSS or Atom), and JavaScript/Flash “widgets”
Mashups
• Strong preference for reuse over coding
– Innovation in assembly is the core value instead of ingenuity in coding
• Disruptive delivery model: Web-based with no install, no plug-ins, no admin rights, etc.
• Design focus is at the glue instead of the functionality
• Emphasis on simple, easy-to-use Web technologies over complex enterprise technologies
What’s happening on the Web today
• The growth of Web sites with highly valuable “portable” content and functionality
• Users putting modular Web parts on their blogs and profiles to host the pieces of the Web that they want to share
• By the tens of millions on sites like MySpace and Facebook
• The increasing realization that there is limited business value in being on a single site…
Connecting to and making use of our data
• Building open platforms instead of stand-alone applications
• Forming self-distributing ecosystems
• Spreading products far beyond the boundaries of a site
– APIs, widgets, badges, syndication -> mashups
• In other words: Being everywhere else on the network
• Building on the shoulder of giants
• Leveraging widgets, libraries, and APIs from Yahoo!, Amazon, and thousands of others and others
• The automated mass servicing of markets of low demand content and functionality (The Long Tail)
• Which represents the bulk of the demand
The Global SOA has surpassed our enterprise IT landscape
• Some businesses have hundreds of thousands of users of their SOA
• Most are using WOA models for this
• Hundreds of companies have opened their SOA to the Web
– Mostly startups or established Internet companies that understand the Web
– But larger companies are beginning to understand this.
Examples
• Amazon and their highly successful Web Services Division (with hundreds of thousands of business consumers of their global SOA)
– Over $300 million in revenue last year
• Google and its numerous and varied open Web APIs from Google Maps to Google Data
• eBay and billions of dollars in listings it generates through its public SOA,
• Applications like Twitter.com
– Gets 10 times the use through its APIs than from its user interface.
– A new generation of applications that are primarily used via their SOA presence.
With traditional methods, many (perhaps most) software solutions are too expensive to build or buy today
The Focus: Rapid Business Solutions
• Full resources of the Web and the Intranet
• Enterprise context around management, security, privacy, etc.
• Gives everyone in the organization the ability to leverage the SOA.
• Lightweight, simple model.
• Inexpensive and extremely rapid results
Situating mashups in the workplace:
Mashups:The bottom line
• Excellent repeatability
• Inexpensive
• Good ROI
• Unfamiliar to many workers
Ideal for Early Adopters
Online Community
Eliciting participation on the network
• Social media: A continuous stream of shared (two-way) conversation and knowledge
• Online community: Groups of like minded individuals creating value for themselves
• Collective intelligence: Shared information built together on the network
Customer engagement today is much more than products and their marketing campaigns. It's a meaningful emotional connection to a company that helps businesses the most.
The Premise
Four levels of community
Online community
• Lifestyle products and brands generate strong, highly engaged communities on their own:
• Harley Davidson, IKEA, XM Radio, and hundreds of others have large-scale, vibrant, customer communities
• Many smaller examples: http://www.travellerspoint.com/ is a typical example of hundreds of vertical communities. It has over 150,000 registered users.
• People who deeply care about a product or brand can now meet, share ideas, socialize, and help each other.
Example:
What do online communities do?
• People find and connect with each other based on a common, shared idea
• Socialize, communicate, and collaborate on topics that they care about
• Share ideas, experiences, stories, suggestions, etc.
• Draw others in by word of mouth
• Becomes an ideal vehicle for collective intelligence and peer production
Marketing vs. Community
• Customers and potential customers have the greatest resources to market and sell the product; if they only had the means.
• Traditional marketing and demand-generation is enormously expensive; you have to do it all yourself.
• The Web 2.0 solution: Passionate customers and potential customers are the most powerful resource in the world; tap into them directly.
The means and methods
• Platforms:
• Drupal, Joomla, Lithium, Crowdvine
• Community Management
• Tools:
• GetSatisfaction, Buzz Monitoring, Social Networks
The Three Essential Strategy Components
Social Media:Continuous Online
Conversations
• Blogs• Facebook Presence• Social Messaging• YouTube Interviews• Sponsored Content• Highlighted Community
Stories and Activities• Other Social Media
Online Community:Centralization of conversations.
Collective Intelligence:
Using the network to make the product
better• Community Site• User Profiles• Forums• Discussion Groups• Social Media Content
(left)• Chat/Messaging
• Community Outreach
• Customer Input• Voting systems• User Recommendations
• Valuable data:• Desired features• New ideas• Actual usage data
The Story of KatrinaList & XM Radio• Hurricane Katrina
– Survivors emerged and announced where they were on their blogs
– People watching the Web’s syndication “ecosystem” noticed the reports
– A small group collected the reports out of the blogosphere and centralized the listing
– Over 50,000 survivor reports in the first 3 days after the disaster
– Emergent phenomenon
– A critical example for how to rethink solutions to traditional problems in a 2.0 world in which we can actually tap collective intelligence
• XM Radio
• Community for Customer Service
Online Community:The bottom line
• Medium repeatability
• Can be costly
• Proven ROI
• Dramatically lower customer support costs (10-30%)
• Better Customer Satisfaction
• New customer relationship
Ready for Wide Adoption
Open Business Models
Open Data
UGC & Open Content
Open Source
Online Community
Open BusinessMethods
• Richest, most up-to-date, and dynamic products & services
• Lowest cost of production• Greatest degree of
innovation and diversity• Ownership, control, and
monetization challenges
Network-Driven Open Collaboration
Breeding New Business Strategies
peer production
network effects
self-service
pull instead of push
Methods:
Enterprise 2.0
Product Development 2.0
Open business models are transforming the market
• Product Development
• Marketing and Advertising
• Operations
• Customer Service
Examples
• Android
• Gold Corp.
• Crowdspring
• http://netflixprize.com
• Doritos UGC advertising
• http://OpenStreetMap.org
Sourcing Models
internally sourced
outsourcedopen
sourced
Methodsdirect
assignmentsubcontracting,
consortiums
peer production,crowdsourcing, open platforms
Participants staffcontractors,
partnersanyone
Central Control high medium to high medium to low
Predictability best good lowest
Richness of Outcome
adequate medium high
Legal structure& IP protection
corporation,copyrights,
patents, etc.
contracts, charters, etc.
open sourcelicenses, Creative
Commons, etc.
Open Business Models:The bottom line
• Medium repeatability
• Medium costs
• Significant cultural changes required
• ROI and control challenges
• Major strategic benefits
Ideal for Early Adopters
2.0-era platforms and development tools
“My Web site is bigger than your enterprise”
Today’s Software ApplicationsAre Also Extremely
Sophisticated
• Highly distributed and federated
• Have a social architecture
• Built from cutting edge platforms and partshttp://clickatell.com
• Have to scale globally
• Set with expectations that are very high for functionality and low for the cost to develop/own new apps
• Created with productivity-oriented development tools
Integrating with 3rd party suppliers live on the Web
as well as being a 3rd party supplier is the name of the
game circa-2009
There’s A Lot To Master Today To Create Credible
Products:
The application “stack” is bigger now
Recent technological innovations coming primarily
from the online world
• Cloud computing
• Utility/grid/Platform-as-a-service
• Non-relational databases
• S3, CouchDB, GAE Datastore, Drizzle, etc.
• New “productivity-oriented” development platforms
• RIA: Flex/AIR, JavaFX
• Stacks: Rails, CakePHP, Grails, GAE, iPhone, etc.
Cloud Computing is just about12 months old but changing the
game quickly
• Provides enormous advantages in terms of cost and agility
• LAMP doesn’t have a solution for providing economies of scale
• Complex governance
• Control, privacy, security
• Regulations
• Has reliability and fault-tolerance implications
• 90% of organizations will have a cloud computing application in pilot by 2010
Comparing Two of the Largest “Platforms as a Service”
The cloud computing space today
The new platform lock-in?
Suitable for
Experimentation
Non-relational databases
• CouchDB: Free, open-source, document-oriented database.
• Derived from the key/value store, it uses JSON to define an item's schema.
• Meant to bridge the gap between document-oriented and relational databases
• These views map the document data onto a table-like structure that can be indexed and queried.
• Like CouchDB, Mongo is a document-oriented JSON database, except that it is designed to be a true object database, rather than a pure key/value store.
• Drizzle began life as a spin-off of the MySQL (6.0) relational database.
• Aim of creating a leaner, simpler, faster database system.
• Drizzle can still store relational data.
• The aim is a semi-relational database platform tailored to web- and cloud-based apps running on systems with 16 cores or more.
Ideal for Early Adopters
The New Dynamic Development Platforms
• The Web development industry has moved to a focus on “productivity-orientation.”
• New platforms highly optimized for Web development are emerging.
• These new Web development platforms embody much of what we’ve learned in the last 15 years in terms of best practices.
• However, like all platforms, they have tradeoffs, including performance and maturity.
Performance of Dynamic Languages Is An Issue Though
Ruby on Rails
• Ajax-ready but works with all RIA technologies
• Automatic Object/Relational Mapping• Sophisticated Model View Controller
Support• Convention over configuration
• Radically-oriented around Web development only
• Very high productivity (IBM verified 10-20x older platforms)
• Open source and free
• Runs major sites like Twitter• One of the most popular new platforms• Has clones in most other major languages
now. SaaS versions too: http://heroku.com Ready for Wide Adoption
CakePHP
• Open source Web application framework written in PHP
• Works with all major RIA technologies
• Modeled after the concepts of Ruby on Rails
• Not a port of Rails but extends the ideas to PHP
• Stable, mature, and reliable
• http://www.cakephp.org/
Groovy & Grails
• Groovy is a dynamic language for the Java Virtual Machine
• Has strengths of Ruby, Python, and Smalltalk
• Runs anywhere Java runs
• Grails is a Ruby on Rails like framework for Groovy
• Mature, stable, and relatively high performance Ideal for Early
Adopters
Changes to the processes that create architecture
• Increasing move to assembly and integration over development of new code
• Perpetual Beta and “extreme” agile
• Community-based development and “commercial source”
• Product Development 2.0
The Web’s Version of Agile
• Shadow Apps for real-time feedback
• Customer-Sampling and Live Testing
• Granular Versions (constant evolution)
• Daily, even hourly, releases
Ready for Wide Adoption
An extremely competitive environment: Our architectures
must explicitly focus on building network effects
New Distribution Models
How do were-imagine our products and services for
the 21st century?
Challenges to Transitioning to New Architectural Modes
• Innovator’s Dilemma
• “How do we disrupt ourselves before our competition does?”
• Not-Invented Here
• Overly fearful of failure
• Deeply ingrained classical software culture
• Low level of 2.0 literacy
What we often see in the marketplace today
• Too many copy-cat products
• Failure of imagination and courage
• New architectural concepts as an after-thought. Or tacked on as a “checklist” item.
• Companies that pay lip service to innovation but are having trouble or unwilling to make the necessary changes
The 1.0 world is having its own problems
• The time is right for change now more than ever before
• We all have to learn how to adapt quickly to new marketplace realities
• Something that the (successful parts) of network have been doing for a long time
Key Lesson:We now have a
fundamentally new and better set of lenses through which to look at leveraging
value on the network...
• Push to pull systems
• Web 2.0 design patterns and business models
• New modes of software, platforms, and architectures
• Productivity-Oriented Platforms
• Web-Oriented Architecture
• New Distribution Models
Potential Reach Powerand Network Effect
(Lowest Cost Per Customer/Partner)
Web
Si
tes
Synd
icat
ion
Web
2.0
App
s
Ope
n API
s
Web
Wid
gets
Num
ber
of P
ract
ition
ers
Soci
al N
etw
ork
App
s
Sem
antic
Web
/Web
3.0
The new Web 2.0 era distributionmodels remain largely untapped
It’s time to changeour DNA
• Moving from the 20th century towards 21st century businesses
• Deeply understanding the network and its profound potential for creating growth and building value
• Putting 2.0 into the core of our lines of business
The rewards are considerable
• Products and services that are sustainable
• Successful transition to a rapid evolving new marketplace
• Attaining of new, sustainable competitive advantage
• Resilience to future change and ongoing market evolution
Major Opportunities in 2009
• Redesign products and services for the 21st century.
• Strategically move IT infrastructure to the cloud.
• Embrace new low-cost economic models for SOA.
• Reduce application development and integration time/expenditures with new platforms and techniques.
• Open your supply chain to partners on the Web.
Questions
Slides: [email protected]