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Jen-Yao Chung IBM T. J. Watson Research Center. Tourism Cloud – Enabled Business Model Innovation. Agenda. Introduction and Industry Trend Tourism Ecosystem What is Cloud, Why Cloud – Rethink IT / Reinvent Business Enterprise Cloud Approach - PowerPoint PPT Presentation
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© 2012 IBM Corporation
Tourism Cloud – Enabled Business Model Innovation
Jen-Yao Chung
IBM T. J. Watson Research Center
© 2012 IBM Corporation2
Agenda
Introduction and Industry TrendTourism EcosystemWhat is Cloud, Why Cloud – Rethink IT / Reinvent BusinessEnterprise Cloud ApproachCloud Adoption Patterns - Business Cloud Services Innovative Business Model for CloudSummary
© 2012 IBM Corporation3
The World Wide Tourist Market
WTTC’s latest Economic Impact Research shows that world Travel & Tourism continues to grow in spite of continuing economic challenges.
– Despite progressive downgrades to growth forecasts through 2011, the industry grew by 3% over the course of the year (in terms of Travel & Tourism’s contribution to GDP).
– Tourism’s direct contribution to GDP in 2011 was US$2 trillion and the industry generated 98 million jobs.
– Taking account of its direct, indirect and induced impacts, Travel & Tourism’s total contribution in 2011 was US$6.3 trillion in GDP, 255 million jobs, US$743 billion in investment and US$1.2 trillion in exports. This contribution represented 9% of GDP, 1 in 12 jobs, 5% of investment and 5% of exports.
– Growth forecasts for 2012, although lower than anticipated a year ago, are still positive at 2.8% in terms of the industry’s contribution to GDP.
– Longer-term prospects are even more positive with annual growth forecast to be 4.2% over the ten years to 2022.
Source: World Travel & Tourism Council (WTTC) http://www.wttc.org/research/economic-impact-research/
© 2012 IBM Corporation4
Tourist Industry Trend
Internet continues impact on tourism Strong efforts in standardization and interoperability Increasing importance of mobile devices and geographical information systems
– Always on– Integrated circuits (RFID) enter tourism industry
Market segmentation will become more sophisticated and specific– Individualization/personalization as an ongoing trend– Travel agents reinvent themselves for personalized service– Promote customer centricity– Personalize with precision– Demographic changes and consequences
Elderly people is increasing rapidly Further decrease in the average number of persons per household
– Extend the experience the experience doesn’t begin at departure or end upon completion (e.g. virtual
experience) Sustainable tourism
– Global catastrophes as facts of daily life
© 2012 IBM Corporation5
Barriers to e-business adoption
The small size of the companyCosts of e-business technologiesComplexity of e-business technologiesLacking compatibility of technologiesSecurity risks and concerns about privacy issuesPerceived unsolved legal issuesThe difficulty to find reliable IT suppliers.
© 2012 IBM Corporation6
Agenda
Introduction and Industry TrendTourism EcosystemWhat is Cloud, Why Cloud – Rethink IT / Reinvent BusinessEnterprise Cloud ApproachCloud Adoption Patterns - Business Cloud Services Innovative Business Model for CloudSummary
© 2012 IBM Corporation7
The Travel Ecosystem
Providers
Global Dist Systems
Distributors
Travelers
Air Hotel Car Other
Traditional Other
TA/OTA Other
© 2012 IBM Corporation8
TravelerTraveler
“Push”
Brick & Mortar Agencies
Brick & Mortar Agencies
Distribution Networks
Distribution Networks
Travel Providers
Travel Providers
Shifting paradigms in travel distribution… Suppliers once controlled data and used this to
their advantage, but as customers gained access to the same data they became adept at meeting their own needs
The continued flood of information is too complex and is adding to customer dissatisfaction with travel distribution
TravelerTraveler
Multiple Intermediaries
Multiple Intermediaries
“Pull”
Distribution Networks
Distribution Networks
Travel Providers
Travel Providers
“Swarm”
TravelerTraveler
IntermediariesIntermediaries
Travel Providers
Travel Providers
On/offline AgenciesOn/offline Agencies
Social Networks
Social Networks
Media & Advertisin
g
Media & Advertisin
g
Online ForumsOnline Forums
Evolution of travel distributions
© 2012 IBM Corporation9
Hot Issues and Key Questions to Focus
Hot issues in travel technology:
– exponential transaction growth / look to book ratios
– explosive distribution channel growth
– single view of customer / systems integration
– cloud computing– mobile– green compliance /
sustainability strategy– social networking / social
media– dynamic packaging– descriptive/rich visual content
For the tourism industry service providers, these are the key questions to focus:
– Which distribution channels are most / least effective?
– How does your travel distribution website compare to best-in-class websites?
– How do customers view travel distribution and fulfillment?
– Do current segmentation schemes match current and future needs?
– How can partner data be used to formulate a more robust view of customers?
– What capability gaps can partners fulfill more effectively?
© 2012 IBM Corporation10
To enable seamless travel: information aggregation and partner coordination must become top priorities in the travel industry
Does the necessary data exist?
Has it been stored for reuse?
Can the data be shared?
Can it be integrated with other data?
Can the data be analyzed for travelers?
Can the analysis be packaged?
Can it be delivered efficiently?
Can customers interact with the
information?
Will travelers be willing to pay for this
service?
Will the resulting analysis prove
useful?
The journey toward seamless travel
© 2012 IBM Corporation11
Agenda
Introduction and Industry TrendTourism EcosystemWhat is Cloud, Why Cloud – Rethink IT / Reinvent BusinessEnterprise Cloud ApproachCloud Adoption Patterns - Business Cloud Services Innovative Business Model for CloudSummary
© 2012 IBM Corporation12
Cloud Computing – A Business Value
Cloud computing is a model for enabling cost effective business outcomes through the use of shared application and computing services. The value …. if possible …. is better economics in the execution of business processes.
Cloud computing is a new consumption and delivery model inspired by consumer internet services.
Key characteristics:
On-demand self-service Ubiquitous network access Location independent resource
pooling Rapid elasticity Flexible pricing models
VirtualizationServiceAutomation
UsageTracking Web 2.0
SOA
End User Focused
© 2012 IBM Corporation13
Flexible pricingFlexible pricing
Rapid provisioningRapid provisioning
Cloud Computing is a model of shared network-delivered services, both public and private, in which the user sees only the service, and need not worry about the implementation or infrastructure
InfrastructureServices
PlatformServices
ApplicationServices
BusinessServices
PeopleServices
Built on radically scalable, manageable, virtualized IT resources
Built on radically scalable, manageable, virtualized IT resources
Service layers separated by clean APIs, enabling
composition.
Service layers separated by clean APIs, enabling
composition.
Important roles for both public and private
clouds.
Important roles for both public and private
clouds.
Consumable web-delivered services
requiring no installation, minimal setup
Consumable web-delivered services
requiring no installation, minimal setup
Elastic scalingElastic scaling
Advanced virtualization
Advanced virtualization
Standard Internet technologies
Standard Internet technologies
Cloud: A Model for Shared Services
© 2012 IBM Corporation14
Agents End Users SupportCommunity
Crowdsourcing
Customer Care Payments Int. Risk Mgmt.
Retail Banking Trade & SC Finance Single Euro Payments Mobile Banking Front Office Optimization
InfrastructureServices
PlatformServices
ApplicationServices
BusinessServices
PeopleServices
Data Mgmt. Virtualization Workload Mgmt SLA & Capacity Provisioning Security Monitoring
Dynamic Provisioning Process & Policy Mgmt. Problem & Change Mgmt.
Service Cloud Business & Operations Support
Fulfillment Assurance Billing
Mashup ServerUser Manager Service/Software
Catalogs
Open SOA Foundation (WS Framework, Service Bus)
CiC Design Space B2B
Pa
rtnerships
Exp
erie
nce
Man
agem
ent.
Industry Frameworks & Information Foundation
Distributed Cloud Computing Services
Cloud technologies offer operational expense reductions at all layers
Clouds will be used at each layer, and stacked to easily create new solutions
© 2012 IBM Corporation15
Rethink IT
Reinvent Business
•Rapidly deliver services• Integrate services across cloud environments• Increase efficiency
•Rapidly deliver services• Integrate services across cloud environments• Increase efficiency
Business and IT are attracted to cloud for different reasonsE
ffic
ien
cy
Tra
nsf
orm
atio
n
• Initiate new revenue streams•Faster time to market for new services•Focus on differentiated processes•Meet changing customer expectations
• Initiate new revenue streams•Faster time to market for new services•Focus on differentiated processes•Meet changing customer expectations
of CIOs plan to use cloud (up from 33% 2 years ago)of CIOs plan to use cloud (up from 33% 2 years ago)
60%60%
of business executives believe cloud enables business
transformation and leaner, faster, more agile processes
of business executives believe cloud enables business
transformation and leaner, faster, more agile processes
55%55%
Economics of Computing are Changing
© 2012 IBM Corporation16
Businesses are seeing significant results
Reduce IT labor cost by 50% in configuration, operations, management and monitoring.
Improve capital utilization by 75%, significantly reducing license costs.
Reduce provisioning from weeks to minutes and improve cycle times
Eliminate 30% of software defects and improve quality.
Reduce IT support costs by up to 40% for end users.
© 2012 IBM Corporation17
2006 2007 2008 2009 2010 2011
Efficient
Transformational
Disruptive
•Cost Savings•Time to market•CapEx to OpEx•Reduced TCO
•Cost Savings•Time to market•CapEx to OpEx•Reduced TCO
•Speed of transformation•Lower barriers to
innovate•Reduce risks• Increase productivity
•Speed of transformation•Lower barriers to
innovate•Reduce risks• Increase productivity
•Things are possible which were not possible before
•Create new business models
•Triggers competitive advantage
•Things are possible which were not possible before
•Create new business models
•Triggers competitive advantage
o IaaS
o Private Cloudso Cloud Managemento Further Automation
o APIso New serviceso Applications built for Cloudo Brokering
Cloud perception is evolving
Optimizing
Speeding
Enabling
2012
© 2012 IBM Corporation18
Agenda
Introduction and Industry TrendTourism EcosystemWhat is Cloud, Why Cloud – Rethink IT / Reinvent BusinessEnterprise Cloud ApproachCloud Adoption Patterns - Business Cloud Services Innovative Business Model for CloudSummary
© 2012 IBM Corporation19
Enterprise Cloud Approach
…workload optimization– Development and Test; Desktop; Collaboration; Analytics; Compute– Rapid return-on-investment and productivity gain
…deployment choices– Public, private, hybrid
…integrated service management– Service delivery, service request, service monitoring– Lowers operational costs, drives efficiency, enhances security
© 2012 IBM Corporation20
Key Consideration 1: What workloads to move to cloud and what application delivery model is best for that workload?
Networking
Storage
Servers
Virtualization
O/S
Middleware
Runtime
Data
Applications
Traditional On-Premises
Networking
Storage
Servers
Virtualization
O/S
Middleware
Runtime
Data
Applications
Platformas a Service
Networking
Storage
Servers
Virtualization
O/S
Middleware
Runtime
Data
Applications
Softwareas a Service
Vendor Manages in Cloud Client Manages
Standardization; OPEX savings; faster time to valueStandardization; OPEX savings; faster time to value
Networking
Storage
Servers
Virtualization
Middleware
Runtime
Data
Applications
Infrastructureas a Service
O/S
*Capex: Capital Expenses, *Opex: Operating Expenses
© 2012 IBM Corporation21
Ready for Cloud
Workloads Matter: Cloud adoption is driven by workloads
May not yet be ready
for Cloud …
Sensitive Data
Complex processes & transactions
Regulation sensitive
Not yet virtualized 3rd party SW
Highly customized
Analytics
Collaboration
Development & Test
Workplace, Desktop & Devices
Infrastructure Storage
Infrastructure Compute
Business Processes
Industry Applications
Pre-production systems
Information intensive
Isolated workloads
Mature workloads
Batch processing
New Industry workloads
Collaborative Care
Medical Imaging
Financial Risk
Energy Management
© 2012 IBM Corporation22
EnterpriseData Center
Private Cloud
ManagedPrivate Cloud
HostedPrivate Cloud
SharedCloud Services
PublicCloud Services
EnterpriseData Center
Third-party operated
Enterprise
Third-partyhosted andoperated
Enterprises Users
Free Register Credit Card Click to contract
HybridInternal and external service delivery methods are integrated
Private PublicIT capabilities are provided “as a service,” over an intranet, within the enterprise and behind the firewall
IT activities / functions are provided “as a service,” over
the Internet
Key Consideration 2: What deployment model is best for a given workload?
60% of CIOs plan to use cloud up from 33% two years ago…the majority being hybrid clouds
© 2012 IBM Corporation23
Enterprise Cloud adoptionpresents unique challenges
Integration of cloud and traditional IT
Migration over time
Security and compliance issues
Global business process transformation
Enterprise Cloud adoptionpresents unique challenges
Integration of cloud and traditional IT
Migration over time
Security and compliance issues
Global business process transformation
In the enterprise cloud is anevolution, revolution and game changerIn the enterprise cloud is anevolution, revolution and game changer
An evolutionary transformation to cloud is typical for enterprises and provides unique challenges
Virtualize
Standardize
Shared Resources
Automate
Cloud
Traditional IT
© 2012 IBM Corporation24
Transforming application development – end to end - for the cloud
Design Development Deployment Production
Requirements
RequirementsAnalysis
Maintain
Code Analysis & Reporting.
ALM ToolsApplication Virtualization
Performance Testing Services
Defect Analysis
Website & Mobile Application Performance
Project Initiation
Test
Application value vs. risk mapping
1
Application value vs. risk mapping
11
Project risk, pro-gress and evolution
2
Project risk, pro-gress and evolution
22
Root causes of possible disruptions
3
Root causes of possible disruptions
33
Application health diagnostics
Application health diagnostics
44
1 2
3 4
5
Key application attributes
5
Key application attributes
5
Key application attributes
55
IBM Testing Services
© 2008 IBM Corporation25 IBM Confidential
System Stability/Completeness
Missing is increasing over time and overall proportions are significantly higher than desirable at 41%
Missing decreasing over time & overall E2E proportions 25-35%
Missing percentage during UAT should be 10% - 15%
System Completeness: Qualifier over Time (Code Defects Only)
Overall Rating
Percentage of “missing” is very high compared to the benchmark, and the trend is increasing.
Overall volumes are decreasing, but higher severities and simpler defects continue to surface.
Insufficient
Defect volume trend is decreasing over time. Function defects have not surfaced for several periods. Algorithm, Assignment, and Checking defects continue to surface throughout UAT.
Defect volumes are decreasing
Sev1s = 6% overall but decreasing
Sev2s = 52% but decreasing
Defect volumes are decreasing
Sev1s = 9% overall, no obvious trend
Sev2s = 53% but decreasing
Actual
Simplest issues and total defect volumes decreasing over time
System Code Stability: Artifact Type over Time (Code Defects Only)
High severity defects and total defect volumes decreasing over time
Sev1’s <= 3%
Sev2’s <= 35%
Severity over Time, Code Defects Only
High severity defects and total defect volumes decreasing over time
Sev1’s <= 6%
Sev2’s <= 40%
Severity over Time, All Valid Defects
ExpectedMetric
IBM Testing Services
© 2008 IBM Corporation25 IBM Confidential
System Stability/Completeness
Missing is increasing over time and overall proportions are significantly higher than desirable at 41%
Missing decreasing over time & overall E2E proportions 25-35%
Missing percentage during UAT should be 10% - 15%
System Completeness: Qualifier over Time (Code Defects Only)
Overall Rating
Percentage of “missing” is very high compared to the benchmark, and the trend is increasing.
Overall volumes are decreasing, but higher severities and simpler defects continue to surface.
Insufficient
Defect volume trend is decreasing over time. Function defects have not surfaced for several periods. Algorithm, Assignment, and Checking defects continue to surface throughout UAT.
Defect volumes are decreasing
Sev1s = 6% overall but decreasing
Sev2s = 52% but decreasing
Defect volumes are decreasing
Sev1s = 9% overall, no obvious trend
Sev2s = 53% but decreasing
Actual
Simplest issues and total defect volumes decreasing over time
System Code Stability: Artifact Type over Time (Code Defects Only)
High severity defects and total defect volumes decreasing over time
Sev1’s <= 3%
Sev2’s <= 35%
Severity over Time, Code Defects Only
High severity defects and total defect volumes decreasing over time
Sev1’s <= 6%
Sev2’s <= 40%
Severity over Time, All Valid Defects
ExpectedMetric
Integration : Cloud-to-Cloud ; Cloud-to-Enterprise
xCloud Testing
Image/ & ServicesMgnt/Monitoring
Data Security
Billing &MeteringServices Optimizations
Cloud Brokering / Deployment
Cloud Deployment Topology &Security Modeling
© 2012 IBM Corporation25
Agenda
Introduction and Industry TrendTourism EcosystemWhat is Cloud, Why Cloud – Rethink IT / Reinvent BusinessEnterprise Cloud ApproachCloud Adoption Patterns - Business Cloud Services Innovative Business Model for CloudSummary
© 2012 IBM Corporation26
Infrastructure Services
Platform Services
Application Services
Business Services
2000 2006
‘People’ Services
2012
Ser
vice
Clo
ud L
ayer
s
Static, dedicated, outsourced Network-delivered, off-premises Shared, automated, dynamic
All clouds will not be the same …
Does your people cloud use knowledge-enablement and social computing to create increased value?
Does your business cloud have deep industry capability that lets me benefit from the increasing returns of sharing (e.g., information)?
Can your application cloud easily function as a component in my application?
Do you have platform and management technologies to overcome the potential complexities/downsides of multiple clouds.
Can your cloud technologies to help solve “out-of-space, out-of-power” and lower costs? Quality of service?
Questions to ask the Cloud Service Provider at every layer
© 2012 IBM Corporation27
New Cloud Computing Architecture and delivery models are already changing the application and business services ecosystem
ANALYTICSTurning data into insight to
anticipate businessconditions, avoid risks andcapture new opportunities.
STORAGEPutting rapidly increasing
volumes of data in a locationthat is scalable and accessible
from anywhere.
COLLABORATIONSimplifying and improvingdaily business interactionswith customers, partnersand colleagues.
DEVELOPMENT AND TESTDeploying virtualenvironments for theconstruction of softwareapplications.
DESKTOP AND DEVICESStoring files and applicationsremotely and pushing them to
clients in real time.
Key Future technologies:• Extreme Automation• Highly differentiated platform as a
service• Fine grained cloud security• Seamless secure operations
across private and public cloud
© 2012 IBM Corporation28
Cloud servicesBusiness Desktop• Reduce the cost of desktop hardware and
management • Safeguard data and applications• Increase business flexibility • Reduce complexity and energy consumption
Real-Time Collaboration• Work beyond the boundaries of an organization• Share information more easily with customers,
suppliers and Business Partners• Lower upfront investment and operating costs• Reduce/eliminate IT staff for implementation• Acquire services extremely easily• Provide work-ready integrated business
applications
Development and Test• Access a security-rich, standardized test and
development environment • Reduce operational costs and large amounts of
capital outlays, • Improve cycle times for faster time-to-market • Improve collaboration and quality
Managed Backup Cloud• Provide remote data protection with a managed,
offsite data backup and recovery solution that is automatic, secure and reliable
• Reduce backup windows with automated, de-duplicated technologies.
• Shift to a pay-as-you-use pricing model that enables predictable monthly costs and requires no up-front capital investment.
VPN or dedicated circuit
Applications and data
Systems (AD, DHCP,
DNS)
PCs
Thin clients
Virtual machines
Co
nn
ectio
n B
rok
er
Remote Data Protection Service
Platforms
Server and PC Data
Customer Location(s)
Offsite Data Protection
Remote Recovery Site
Wide Area
Network (WAN)MessagingCollaborationWeb conferencing
© 2012 IBM Corporation29
E-Commerce on Cloud
Helping companies transform how they buy, market, sell and service goods and services with customers and suppliers
Helping companies accelerate their ability to turn information into insights
Integrate the collective knowledge of people-centric networks to accelerate decision-making, strengthen business processes, and increase innovation
Helping cities of all sizes leverage information, anticipate problems and coordinate resources to deliver exceptional service to their citizens
Software as a service coupled with deep industry insights, business process skills and analytics
Cloud Solutions Cloud Solutions
Social Business on Cloud
Business Analytics & Optimization on Cloud
Smarter Cities on Cloud
Software and Business Process as a Service
Business Process as a ServiceSoftware as a Service
Business Analyticsand Optimization Social Business
Commerce Smarter Cities
© 2012 IBM Corporation30
Agenda
Introduction and Industry TrendTourism EcosystemWhat is Cloud, Why Cloud – Rethink IT / Reinvent BusinessEnterprise Cloud ApproachCloud Adoption Patterns - Business Cloud Services Innovative Business Model for CloudSummary
© 2012 IBM Corporation31
Major Technology Trends driving Business Change
Mobile revolution– Connectivity, access and participation are growing rapidly
– Smart devices are becoming the primary route to get connected
– Devices are getting smarter as they are increasingly enriched by mobile apps
Social media explosion– Social media is quickly becoming the primary communication and collaboration format
– “digital natives” use of technology and social media platforms is accelerating adoption
– Enterprises are adopting social media but are struggling to realize the value and manage risk
Hyper digitization– Digital content is produced and accessed more quickly than ever before
– Internet traffic is growing globally driven by consumer use of video, mobile data, interconnectedness
– An increasing number of connected devices and sensors is further driving growth
The power of analytics– New capabilities for real time analysis, predictive analytics and micro-segmentation are
emerging
– Top performing companies use analytics to drive action and business value
– Analytics are making information “consumable” and is transforming all parts of the organization, from customer intimacy to supply chain management
© 2012 IBM Corporation32
“Game Changing” Cloud Business Enablers
Source: IBV Analysis
Cost Flexibility
1
Shifts fixed to variable cost Pay as and when needed
Business Scalability2
Provides limitless, cost-effective computing capacity to support growth
Masked Complexity4
Expands product sophistication Simpler for customers/usersContext-driven
Variability 5
User defined experiences Increases relevance
Ecosystem Connectivity 6
New value nets Potential new
businesses
Market Adaptability
Faster time to market Supports experimentation
3
© 2012 IBM Corporation33
Cost Flexibility
Cloud enables businesses to reduce fixed IT costs and shift to a more variable, “pay-as-you-go” cost structure
1
Characteristics Shifts CapEx to OpEx, when
and as needed Shifts cost from fixed to
variable Generates faster payback
and higher ROI
Example: An online marketplace company
The cloud frees up capital by significantly reducing the need for IT investment
An online marketplace company provides service to buy and sell travel-related goods. In addition to bringing buyers and sellers together, the marketplace offers product recommendations based on analysis of buyer preferences.
The marketplace company uses cloud based analytics capabilities for its targeted marketing approach by renting hundreds of computers every night to analyze data from a billion views of its website.
Cost flexibility of the cloud allows the marketplace company access to tools and compute power that only large retailers could afford.
© 2012 IBM Corporation34
Business Scalability
Cloud enables businesses to grow efficiently, expanding the range of business options
2
Characteristics Rapid / elastic provisioning of
resources No scale limitations Benefit from scale economics
without achieving large volumes on your own
Example: An internet media company
Cloud’s ubiquitous and nearly unlimited computing power drives scale economics and enables self-provisioning and peak/non-peak responsiveness
An internet media company streams movies on-demand with large surges of capacity required at peak times.
The company can use cloud to rapidly scale up its business without having to buy, support and operate infrastructure and resources to meet its growth requirements.
© 2012 IBM Corporation35
Market Adaptability
Cloud enables businesses to rapidly adjust processes, products and services to meet the changing needs of the market
3
Characteristics Facilitates prototyping Speeds time to market Supports rapid prototyping
and innovation
Example: An open application platform for TV
Cloud-enabled services can be tuned for market dynamics and demand and then rapidly updated, revamped and deployed via web services
An open application platform for TV allows content providers and distributors to react immediately to changing consumer demands and deliver what the consumers want.
Cable, IP and Satellite TV providers can create and deliver interactive, on-demand content dynamically to consumers on any device.
Content providers, TV programmers and web content developers can create or change an application – for entertainment, commerce, advertising, social media, gaming or news and sports – and deploy it all-at-once for all end-users.
© 2012 IBM Corporation36
Masked Complexity
Cloud enables businesses to attract a broader range of consumers with elegantly simple solutions
4
Characteristics Expands feasible range of
sophistication in products and services
Minimizes requirements of user to understand how product works or how to maintain it
Example: the Mobile Print platform
Cloud-enabled services leave the complexity to the experts, delivering only outcomes to the end-user
The Mobile Print platform uses tools via a cloud to convert and process print requests from any mobile device (e.g. tablet, smart phone) to a printer.
It can remove complexity for users – no need to understand / install / maintain printer device drivers for their mobile devices or targeted printers.
It will reduce cost and management of supporting diverse end-user mobile devices, content-producing applications, network configurations and printer types.
© 2012 IBM Corporation37
Context-driven Variability
Cloud enables businesses to create personal experiences that adapt to subtle changes in user-defined context
5
Characteristics Supports context-driven,
user-centric experiences (preferences, movements, behaviors)
Example: A cloud-based, natural language assistant
The computing power and capacity of cloud enables individualized, context-relevant customer experiences
This is to support user defined preferences. Cloud can be used to store information about user preferences and enable the customization of product or service which is being delivered.
A cloud-based, natural language “intelligent personal assistant and knowledge navigator” that relies on context to create a more personal, intimate interaction. Leveraging the computing capabilities and capacity of the cloud, the application “understands a wide variety of ways to ask a question, grasps the context and returns useful information in a friendly way, either audibly or by displaying results.
© 2012 IBM Corporation38
Ecosystem Connectivity
Facilitating engagement, alignment and innovation, cloud enables external collaboration with partners and customers
6
Characteristics Facilitates new value nets of
partners, customers and other external players
Example: tourism value chain
More and more, companies are relying on collaborative ecosystems to provide the input for innovation that will drive their growth
New value nets can be created including subject matter experts (SMEs), shared infrastructure and services from cloud service providers. Productivity can be enhanced through customer and partner interactions.
In tourism value chain, cloud based platforms can support sharing of resources, processes and workforce between companies, hence it can also enable joint marketing and collaboration. The ecosystem connectivity enables efficiencies required in an emerging market to deliver quality tourism at low cost.
© 2012 IBM Corporation39
Using cloud’s business enablers to optimize, innovate and disrupt business models
Impr
ove
Tra
nsfo
rmC
reat
e
Enhance Extend Invent
Val
ue
Ch
ain
Customer Value Proposition
OptimizersOptimizers
DisruptorsDisruptors
InnovatorsInnovators
Customer Value Proposition
Val
ue
Ch
ain
Cloud Enablement Framework
Context-driven Variability
5
Masked Complexity
4
Market Adaptability
3
Business Scalability
2
Ecosystem Connectivity
6
Cost Flexibility
1
Cloud’s Business Enablers
Cloud offers six “game changing” business enablers …
…that are fuelling innovations across enterprise value chains and customer value propositions…
…empowering organizations to optimize, innovate or disrupt business models
Organizations need to assess themselves using the Cloud Enablement Framework and examine the potential to innovate by leveraging the cloud’s business enablers
© 2012 IBM Corporation40
Agenda
Introduction and Industry TrendTourism EcosystemWhat is Cloud, Why Cloud – Rethink IT / Reinvent BusinessEnterprise Cloud ApproachCloud Adoption Patterns - Business Cloud Services Innovative Business Model for CloudSummary
© 2012 IBM Corporation41
Six Steps to Getting Started with Cloud Be
nefit
CostHigh
High IT Provider Relationship Profile
Provider researches, recommends and implements
technology to enable quantum leap in business capability
Utility
Commodity
Provider works with others to develop a service and provide resources/skills
necessary to support the service
Provider of a quality service at a cost equal to or lower than the competition
Provider of an adequate service at a cost lower than the competition
Partner
Enabler
1Develop the Strategic
DirectionAnalyze Workloads
E-Mail, Collaboration
SoftwareDevelopment
Test and Pre-Production
DataIntensive
Processing
Database ERP
2Determine Delivery
Models
Enterprise
Private Public
Hybrid
Trad
IT
3
4Define the
Architectural Model
Service Definition
Tools
Service Publishing
Tools
ServiceFulfillment &Config Tools
ServiceReporting &
Analytics
ServicePlanning
RoleBasedAccess
OSS
BSS
Infrastructure
Platform
Software
End Users,
Operators
ServiceCatalog
OperationalConsole
Cloud Services
Cloud Platform
Build the Business Case
5 6Implement the
Roadmap
Ente
rpris
eA
rchi
tect
ure
Phase 2Phase 2
Phase 3Phase 3
Phase 4Phase 4
Phase 1Phase 1
Business ArchitectureAlignment
Data Model
Metadata
Information SystemsArchitecture
Define the information integration architecture
Info
rmat
ion
Inte
grat
ion
Information Transformation
Mas
ter D
ata
Man
agem
ent
Information Placement& Structure
Optimize data & content placement and structure across all
LOBs & technology silos
Extend the Information Integration Architecture for placement &
structure optimization
Document business directions and IT’s alignment with them,
across the enterprise
Provide a baseline of agreement by educating all stakeholders on the
fundamentals of Enterprise Architecture
Integrate information transformation with common metadata and data
cleansing services
Extend the information integration architecture across the
organization & technologies
Integrate data placement with the Information Lifecycle Management
implementation
Develop and implement enterprise-wide business architecture initiatives
Assess the existing IS Architecture for a selected set of LOBs
Develop an overall IS enterprise architecture framework to guide the enterprise
Develop and execute an IS Architecture roadmap across the enterprise
Develop metadata technical strategyPilot Metadata integration with key tools and
applicationsDocument business glossary into metadata
repository for some LOBs
Establish a cross-functional Information Architecture (Data Administration) team
Establish data entity naming standardsDefine and document common semantics (business glossary) across LOBs for some
subject areas
© 2012 IBM Corporation42
Business Cloud Summary
Cloud Computing is a model of shared network-delivered services, both public and private, in which the user sees only the service, and need not worry about the implementation or infrastructure
The Cloud has 5 distinct layers and value propositions. Very significant opportunities exist above the infrastructure level, where much of the cloud discussion has been focused previously.
The Cloud model can be truly disruptive if it can reduce the IT operational expenses of enterprises: development, management, integration, and energy consumption.
By reducing expenses and increasing efficiency and flexibility, the Cloud model of services can improve the way we manage travel, transport, airline, finance, mobile information, and more.
In the long run, development of an enterprise will depend on composable web-delivered services on flexible infrastructure: that is, the Cloud.
Moving to higher value business services with focus on “data”, “analytics” and “people”.
© 2012 IBM Corporation43
Summary
Travel industry was expected to be among the greatest beneficiaries of new, low-cost, information-rich distribution opportunities.
More than a decade later, however, online channels have mostly focus on price.
Now the new internet and cloud computing technologies and business models can offer the potential for online differentiation and the provision of value-added services and features for which tourists will pay for the services.
To capitalize on these developments, enhance the tourists travel experience and create opportunities for improved financial performance,
– the tourism ecosystem must learn to use the new cloud computing to “play well” with all the others in the ecosystem.