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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

Welcome to the End of Business as Usual! Changing the Game

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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. The uneasy feeling that its ‘not business as usual’…. Increasing business - PowerPoint PPT Presentation

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Page 1: Welcome to the End of  Business  as Usual! Changing the Game

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

Page 2: Welcome to the End of  Business  as Usual! Changing the Game

2Welcome to the end of Business as usualAndy Mulholland 2006

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

Page 3: Welcome to the End of  Business  as Usual! Changing the Game

3Welcome to the end of Business as usualAndy Mulholland 2006

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

Page 4: Welcome to the End of  Business  as Usual! Changing the Game

4Welcome to the end of Business as usualAndy Mulholland 2006

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

Page 5: Welcome to the End of  Business  as Usual! Changing the Game

The role of People as a catalyst for change

Pronounced shifts in Expectations and capabilities

Page 6: Welcome to the End of  Business  as Usual! Changing the Game

6Welcome to the end of Business as usualAndy Mulholland 2006

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

Page 7: Welcome to the End of  Business  as Usual! Changing the Game

7Welcome to the end of Business as usualAndy Mulholland 2006

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

Page 8: Welcome to the End of  Business  as Usual! Changing the Game

8Welcome to the end of Business as usualAndy Mulholland 2006

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

Page 9: Welcome to the End of  Business  as Usual! Changing the Game

Analyzing the Game Changing BusinessesWhat common traits exist in their Business Models?And use of Technology?

Page 10: Welcome to the End of  Business  as Usual! Changing the Game

10Welcome to the end of Business as usualAndy Mulholland 2006

A Web 2.0 Business – www.threadless.com

Page 11: Welcome to the End of  Business  as Usual! Changing the Game

11Welcome to the end of Business as usualAndy Mulholland 2006

The Web 2.0 Community in cars – www.scion.com

Page 12: Welcome to the End of  Business  as Usual! Changing the Game

12Welcome to the end of Business as usualAndy Mulholland 2006

Tesco rethinks the issue of Physical vs Virtual location

VsVs

Page 13: Welcome to the End of  Business  as Usual! Changing the Game

13Welcome to the end of Business as usualAndy Mulholland 2006

The unique environment of Secondlife.com

Page 14: Welcome to the End of  Business  as Usual! Changing the Game

14Welcome to the end of Business as usualAndy Mulholland 2006

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”

Page 15: Welcome to the End of  Business  as Usual! Changing the Game

15Welcome to the end of Business as usualAndy Mulholland 2006

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

Page 16: Welcome to the End of  Business  as Usual! Changing the Game

Web 2.0 the new technology in the gamePeople driven and People centric technologyRedefining how we do things

Page 17: Welcome to the End of  Business  as Usual! Changing the Game

17Welcome to the end of Business as usualAndy Mulholland 2006

What is Web 2.0?

• Tim O’Reilly coined the term in 2004 and then provided the first definition in Sept 2005

• The Web as a platform– A technology platform to support new

functionality

• Harnessing collective intelligence

– The concept of “contacts”

• Data as the next “Intel inside”– Data becomes the basis for standardization

and not the processor design

Mostly it is used as a concept defining a people-centric web-based world

• End of the Software release cycle– Continuous editing, extending and

experimenting

• Lightweight programming models– Every one can take part

• Software above the level of a single device– Community-centric

• Rich user experiences– The way I want to see things

Web 2.0 = Contacts or CommunityWeb 1.0 = Content

Page 18: Welcome to the End of  Business  as Usual! Changing the Game

18Welcome to the end of Business as usualAndy Mulholland 2006

CompetenciesServices not packaged software

Architecture of participationCost effective scalability

Remixable data sources and transformationsSoftware above the level of a single device

Harnessing collective intelligence

What else makes up Web 2.0? The O’Reilly Meme Map

Tagging not

Taxonomy

eg; del.icio.us

Page Ranking

User reviews

eg; Amazon Reviews

Participation

not publishing

eg; BlogSphere

Decentralization

& the Long Tail

eg; BitTorrent

An Attitude

not Technology

Addresses the

“Long Tail”

Addresses the

“Long Tail”

Data as the new

“Intel inside” std

Data as the new

“Intel inside” std

Remix at will

Some rights reserved

Remix at will

Some rights reserved

Trust and empower

Your Users

Trust and empower

Your Users

Small Pieces

Loosely coupled

Small Pieces

Loosely coupled

Rich User

experience

Rich User

experience

Granular

Content

Granular

Content

Open to permit

“hackability”

Open to permit

“hackability”User behaviour

Not predetermined

User behaviour

Not predetermined

The perpetual

beta

The perpetual

beta

Software improved

by use(rs)

Software improved

by use(rs)Encourage

Play

Encourage

Play

Rich UserExperience

eg; GoogleMaps

Trust andReputation

eg; WiKipedia

Strategic PositioningThe Web as a platform

User PositioningYou control your own

data/content

User Self Service

eg; Google AdSense

Page 19: Welcome to the End of  Business  as Usual! Changing the Game

19Welcome to the end of Business as usualAndy Mulholland 2006

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.

Page 20: Welcome to the End of  Business  as Usual! Changing the Game

20Welcome to the end of Business as usualAndy Mulholland 2006

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.

Page 21: Welcome to the End of  Business  as Usual! Changing the Game

21Welcome to the end of Business as usualAndy Mulholland 2006

Two Game-Changing Technologies: AJAX & RSS

AJAX – an innovation in assemblyAsynchronous JavaScript And XML

• Standards-based presentation - XHTML & CSS• Dynamic display/interaction – Doc Object Mode• Data interchange & manipulation XML & XSLT• Asynchronous data retrieval - XMLHttpReqest• Java Script as the binder for every thing

• Formally proposed in Feb 2005 – Jesse James Garrett• Based on standard elements in current browsers• Now possible to have a simple solution• Old problem; 1996 – IFRAME, 1997 – Netscape 4 Layer…etc

• Being used for “user” MashUp toolkits; Google Earth, …

RSS – innovating the dynamic WebRich Simple Syndication

• Or Netscape Rich Site Summary of 1998• Devised as a simple extension to “linked” pages• Linked pages work for “static” content Web 1.0• Web 2.0 is based on “dynamic” changing interactions• Designed to automate advice of a page change

• Came into its own with the advent of Blogs• Example personal web page MySpace or Blog• Wikipedia is collective Blogging and Wisedom• Part of the new “reputation” = “trust” emerging model

• Aids People and experience centric interaction

Blogging

MashUps

Web 2.0

Page 22: Welcome to the End of  Business  as Usual! Changing the Game

22Welcome to the end of Business as usualAndy Mulholland 2006

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

Page 23: Welcome to the End of  Business  as Usual! Changing the Game

23Welcome to the end of Business as usualAndy Mulholland 2006

MashUps – the Business Game-Changer

• Google is a key “pusher” and provider with its Google Maps and AJAX tools

• www.housingmaps.com is general referenced as the “model” that started MashUps

• User level “programming” is possible for “self-service” use of MashUps (compare with spreadsheets)

• Corporate level can be extremely complex and sophisticated use of wide ranging information

• Innovation in “assembly” is the real Intellectual Property and not the content

• Customers can be offered the use of your information through tools etc to make you a platform

• Think external “syndication” as opposed to internal “co-ordination” for organic growth

• eg; a Retail Bank can offer a platform MashUp for users to develop their financial self services

Delivering Web 2.0 business possibilities with AJAX, RSS, etc

A MashUp is:

A website or web application that seamlessly combines content from more than one source into an integrated experience.

From Wikipedia, the free encyclopedia

Page 24: Welcome to the End of  Business  as Usual! Changing the Game

24Welcome to the end of Business as usualAndy Mulholland 2006

MashUp – www.housingmaps.com

Page 25: Welcome to the End of  Business  as Usual! Changing the Game

Techno Business ModelsTransformation of the Business and IT structures to support a radically different Business

Page 26: Welcome to the End of  Business  as Usual! Changing the Game

26Welcome to the end of Business as usualAndy Mulholland 2006

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

Google

Open Source

Page 27: Welcome to the End of  Business  as Usual! Changing the Game

27Welcome to the end of Business as usualAndy Mulholland 2006

A need to evolve the traditional model for IT in the Business

People and ServicesInteractions

Book to Bill Data Centric Transactions

SOA as a mechanism to transact

Web 2.0 &SOA as a

mechanism to interact

Open Standards connecting organizations together

New “Front Office”People, using content

Communication & Collaboration

“Back Office” systems

• Business Innovative• Value Focused• Interactive Technology enabled• Line of Business Manager driven

• Compliance and Evolution• Value Justified• IT Delivered• CFO and CIO driven

Page 28: Welcome to the End of  Business  as Usual! Changing the Game

28Welcome to the end of Business as usualAndy Mulholland 2006

A need to evolve the traditional model for IT in the Business

People and ServicesInteractions

Book to Bill Data Centric Transactions

SOA as a mechanism to transact

Web 2.0 &SOA as a

mechanism to interact

Open Standards connecting organizations together

New “Front Office”People, using content

Communication & Collaboration

“Back Office” systems

• Business Innovative• Value Focused• Interactive Technology enabled• Line of Business Manager driven

• Compliance and Evolution• Value Justified• IT Delivered• CFO and CIO driven

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

Page 29: Welcome to the End of  Business  as Usual! Changing the Game

29Welcome to the end of Business as usualAndy Mulholland 2006

Governance and Management of the ‘Diamond’ by the ‘Crown’

ComplyThe Enterprise Transactions and Data; ERP and Legacy Applications

OrganizeThe use of SOA to achieve cohesive executions

DifferentiateA Business Manager’s Customizable Solution

PersonalizeAn Individual’s use of the capabilities of Web 2.0

Who Needs What? And Why?

Pressure for

Business Change

Pressure for

IT Stability

Page 30: Welcome to the End of  Business  as Usual! Changing the Game

30Welcome to the end of Business as usualAndy Mulholland 2006

Business Process ‘down’ versus Technology Procedure ‘up’

ComplyThe Enterprise Transactions and Data; ERP and Legacy Applications

OrganizeThe use of SOA to achieve cohesive executions

DifferentiateA Business Manager’s Customizable Solution

PersonalizeAn Individual’s use of the capabilities of Web 2.0

An importance difference!

Rapid Innovation

Around Business

Process Design

Accelerated Solution

Environment Around

IT Considerations

ASE

RAIN

Page 31: Welcome to the End of  Business  as Usual! Changing the Game

31Welcome to the end of Business as usualAndy Mulholland 2006

‘Organise’ requires a new environment

ComplyThe Enterprise Transactions and Data;

ERP and Legacy Applications

DifferentiateA Business Manager’s Customizable Solution

PersonalizeAn Individual’s use of the capabilities of Web 2.0

OrganizeThe use of SOA to achieve cohesive executions Service Oriented Infrastructure

Service Oriented Architecture

Service Oriented Business

Organise is the new IT role

Business Process

Defined and Driven

Transactional Procedure

Defined and Driven

Page 32: Welcome to the End of  Business  as Usual! Changing the Game

32Welcome to the end of Business as usualAndy Mulholland 2006

Value PropositionWhat is provided?

Where provided?

Nature of relationship

Type of expenditure

Expenditure elements

Agility

SaaSDesigned as a utility service for web delivery with all elements provided by the SaaS operator

Hosted set of Services

Delivered on site via the Web using a standard Browser as a client

Client buys a service on a utility basis with no expectation of individual service elements

Pay as you use”; no long term commitment; often no minimum notice period

Initial service deployment charge with on going user based subscription charge

Designed as a highly configurable Application

ASPService Provider of 3rd party remote-access software generally via Web from a hosted facility

A hosted application

Delivered to user via local client software from a remote hosted environment

Client rents or leases use of 3rd party software running at the ASP’s remote hosting site

“Pay as you use” generally with no long term commitment but with a minimum notice period

Subscription for license use plus charging for number of users and amount of use

Customized deployment but limited application flexibility

Managed Service

External Service Provider that continuously manages & supports software for which it is contracted

Customized Services

Delivered on site but could be provided by on/off site resources

Client generally buys in 3rd party software (may be internally developed) and separately contract with an external service provider

Periodic payments against a multi-year agreement

Software License and upgrades; maintenance; hardware; managed service fees

Customized solution

BPO

External Provider responsible for specific Business functions like HR or Financials & linked technical functions

A Customized Service

Internal/External Resources on/off site, specific to supporting the process

Client contracts with external service provider on basis of everything required to ensure business functionality is maintained

Long term fixed contract with periodic payments on a fixed cost over 3 or more years

In addition to fixed cost and payment, can be shared risk-reward to Improve performance or reduce costs

Generally fully customizable

TraditionalSoftware vendor product that bundles required functionality into a package

A ProductOn premise software; deployment as part of client IT estate

Customer – Vendor with high degree of “lock-in” and commitment from the customer

Capital intensive investment with annual license cost and upgrade investments

Software License; implementation; integration; maintenance; hardware, training; support.

Limited within the package

Provisioning Software: Aligning the five possibilities

Page 33: Welcome to the End of  Business  as Usual! Changing the Game

The End of Business as usual?

Or the time to change your game to a better one?

Summary

Page 34: Welcome to the End of  Business  as Usual! Changing the Game

34Welcome to the end of Business as usualAndy Mulholland 2006

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!