IT Everywhere:Opportunities & Challenges
Professor N. Venkat VenkatramanBoston University School of Management
April 2013
IT Everywhere: Opportunities & Challenges
Five Webs & Three Horizons
Sales Eminence @ IBM
1995
19952015
Why do SUCCESSFUL companies die?
Why do SUCCESSFUL companies die?
Core Competency
Why do SUCCESSFUL companies die?
Core Competency
Competency Trap
Role of IT Within YOUR Client Organizations
Implementation
IT/ISManagers
Implementation
IT/ISManagers
CostCenter
Innovation
BusinessManagers
Implementation
IT/ISManagers
CostCenter
Implementation
IT/ISManagers
CostCenter
1. What’s their mandate?2. What are their capabilities?3. What’s their sourcing logic?4. What are their performance metrics?
Moore’sLaw
Metcalfe’sLaw
BandwidthLaw
Moore’sLaw
Metcalfe’sLaw
BandwidthLaw
Compute Connect
Cloud
BusinessValue
Moore’sLaw
Metcalfe’sLaw
BandwidthLaw
Compute Connect
Cloud
Implementation
IT/ISManagers
CostCenter
Innovation
BusinessManagers
Implementation
IT/ISManagers
CostCenter
Innovation
ProfitCenter
BusinessManagers
Implementation
IT/ISManagers
CostCenter
Innovation
ProfitCenter
GrowthCenter
BusinessManagers
Implementation
IT/ISManagers
CostCenter
Innovation
ProfitCenter
GrowthCenter
InvestCenter
BusinessManagers
Implementation
IT/ISManagers
CostCenter
Innovation
ProfitCenter
GrowthCenter
InvestCenter
ClientRole
BusinessManagers
Their Business
DigitalTheir Business
5 WebsMobileWeb
SocialWeb
MediaWeb
MachineWeb
RealtimeWeb
Opportunities
Challenges
5 WebsMobileWeb
SocialWeb
MediaWeb
MachineWeb
RealtimeWeb
1. Machine Web
1
1
Tiny Operating System (OS) for Glass (!)
API for Glass App Ecosystems
Role of PartnersSeeking New Value Frontiers
Tiny Operating System (OS) for Glass (!)
API for Glass App Ecosystems
Role of PartnersSeeking New Value Frontiers
What strategic questions for your clients from this example?
Automobile“Computer on Wheels Connected to the Internet”
2
Remote Door Unlock
Remote Start
Remote Car Slow Down (via police)
Ford Sync | With Microsoft
“Cars as Computers Connected to the Networkwith Software API....”
Built-inApps
Brought-inApps
Beamed-inApps
Ford Automobiles
Ford Consumers
Ford Dealers“AutomobileArchitecture”
3
Why is it Relevant for Your Client?
What do increased sensors & internet of things mean for your clients?
How could they utilize it for competitive advantage?
1
2
2. Mobile Web
2. Mobile Web
6.8 billion Subscriptions
~ 2 Billion Smartphones
“Leaders” “Challengers”2007
“Leaders” “Challengers”2007
“Leaders” “Challengers”2013
“Leaders” “Challengers”2013
Apple iPad Sales in Units (Millions)
Cumulative Sales of over120 Million Units
0
7.5
15
22.5
30
2010 (Q3) 2011 (Q1) 2011 (Q3) 2012 (Q1) 2012 (Q3) 2013 (Q1)
22.86
14.04
17.04
11.8
15.43
11.129.25
4.69
7.33
4.13.27
Apple iPad Sales in Units (Millions)
Cumulative Sales of over120 Million Units
“We are in the Post-PC World”
Apps 775,000 700,000
Downloads 40 Billion 25 Billion
January 2013
Competing in the Post-PC World
New Form Factors& New Interfaces
Google Glass API
Healthcare
Retail Finance
Media &Entertainment
EnergyTransportation
Education
Communications
ConsumerHealthApps
Gamification forMedical Adherence
Energy Sector
Retail Finance
Apps | Magazines & Newspapers
Apps | Magazines & Newspapers
Apps | Television Shows
Why is it Relevant for Your Client?
Every sector will be impacted by mobile web.
What’s their strategic roadmap for mobile web?
1
2
3. Social Web
1+ Billion Facebook Users
50% Log on Everyday
700 minutes per month per user
30 Billion pieces of content shared each month
55 million status updates everyday
70 percent outside
USA 1 million developers
from over 180 countries
~50% Log on using mobile devices
Timeline Social Apps
Social Search Phone
Timeline Social Apps
Social Search Phone
Timeline Social Apps
Social Search Phone
Timeline Social Apps
Social Search Phone
Timeline Social Apps
Social Search Phone
Timeline Social Apps
Social Search Phone
Social Web
McKinsey Study (2012)
Why Should Your Clients Careabout Social Web?
1.5 billion social networking users globally; 80% interact
regularly
McKinsey Study (2012)
Why Should Your Clients Careabout Social Web?
1.5 billion social networking users globally; 80% interact
regularly
70% of Companies use social technologies; 90%
report some business benefit from them
McKinsey Study (2012)
Why Should Your Clients Careabout Social Web?
1.5 billion social networking users globally; 80% interact
regularly
70% of Companies use social technologies; 90%
report some business benefit from them
$1 + trillion in value creation through social web;
20-25% improvement in knowledge worker
productivityMcKinsey Study (2012)
Why Should Your Clients Careabout Social Web?
“B2B2C”
E2E E2C
C2E C2C
“Employees”
“Employees”
“Customers”
“Customers”
Why is it Relevant for Your Client?
4. Media Web
• 4 billion hours of video watched each month
• 1 billion monthly unique visitors
• 72 hours of videos uploaded every minute
• 70% of traffic outside USA
• In 2011, 1 trillion views (!)
• 25% of views on mobile devices
• 98% of AdAge’s top 100 advertisers run campaigns
+
Some Popular YouTube Channels
B2C B2B2C
Media Web Disrupts BusinessModels
Media Web is Evolving.....
Why is it Relevant for Your Client?
Does Your Client Have a YouTube Channel?
What data are you analyzing from their YouTube Channel?
1
2
How could media web disrupt & transform their business?
3
5. Real Time Web
Tweeting and Retweeting about the Japanese natural disaster
60 Minutes AfterEarthquake
March 11, 2011Source: Twitter
Tweeting and Retweeting about the Japanese natural disaster
60 Minutes AfterEarthquake
March 11, 2011Source: Twitter
Why is it Relevant for Your Client?
Does your client monitor tweets about products/services?
What data are they analyzing from the Twitter-verse?
1
2
Order in next 2 Hours to get it
by......
Order in next 3 Hours to get it
by......
Number in stock.....
Decision Cockpits
Data Information Knowledge Action Results
Realtime WebBig Data | Analytics | Business Results
{SystemGap}
{ExpertiseGap}
{ProcessGap}
{ExecutionGap}
5 WebsMobileWeb
SocialWeb
MediaWeb
MachineWeb
RealtimeWeb
Why Do We Care?
5 WebsMobileWeb
SocialWeb
MediaWeb
MachineWeb
RealtimeWeb
Product Design
Process Architecture
Service Delivery
Why Do We Care?
MobileWeb
SocialWeb
MediaWeb
MachineWeb
RealtimeWeb
MobileWeb
SocialWeb
MediaWeb
MachineWeb
RealtimeWeb
MobileWeb
SocialWeb
MediaWeb
MachineWeb
RealtimeWeb
MobileWeb
SocialWeb
MediaWeb
MachineWeb
RealtimeWeb
MobileWeb
SocialWeb
MediaWeb
MachineWeb
RealtimeWeb
MobileWeb
SocialWeb
MediaWeb
MachineWeb
RealtimeWeb
MobileWeb
SocialWeb
MediaWeb
MachineWeb
RealtimeWeb
How could Boston Children’s Hospitalleverage these webs?
Four Implications for Your Clients
Implementation
IT/ISManagers
CostCenter
Innovation
ProfitCenter
GrowthCenter
InvestCenter
YourRole
BusinessManagers
1
Implementation
IT/ISManagers
CostCenter
Innovation
ProfitCenter
GrowthCenter
InvestCenter
YourRole
BusinessManagers
“Supporting Today’s Strategy”
1
Implementation
IT/ISManagers
CostCenter
Innovation
ProfitCenter
GrowthCenter
InvestCenter
YourRole
BusinessManagers
2
Implementation
IT/ISManagers
CostCenter
Innovation
ProfitCenter
GrowthCenter
InvestCenter
YourRole
BusinessManagers
“Shaping Future Strategy”
2
Implementation
IT/ISManagers
CostCenter
Innovation
ProfitCenter
GrowthCenter
InvestCenter
YourRole
BusinessManagers
3
Implementation
IT/ISManagers
CostCenter
Innovation
ProfitCenter
GrowthCenter
InvestCenter
YourRole
BusinessManagers
“Balancing Today vs
Tomorrow”3
5 WebsMobileWeb
SocialWeb
MediaWeb
MachineWeb
RealtimeWeb
Impact Over Time.....
H1: Manage Current Business Model
H2: Adapt Current Business Model
H3: Create Future Business Model
4
Implementation
IT/ISManagers
CostCenter
Innovation
ProfitCenter
GrowthCenter
InvestCenter
BusinessManagers
Implementation
IT/ISManagers
CostCenter
Innovation
ProfitCenter
GrowthCenter
InvestCenter
BusinessManagers
Horizon1
Implementation
IT/ISManagers
CostCenter
Innovation
ProfitCenter
GrowthCenter
InvestCenter
BusinessManagers
Horizon1
Horizon 2 & 3
Implementation
IT/ISManagers
CostCenter
Innovation
ProfitCenter
GrowthCenter
InvestCenter
BusinessManagersCxO
Horizon1
Horizon 2 & 3Horizon 2 & 3
IT Everywhere: Opportunities & Challenges
Five Webs & Three Horizons
Sales Eminence @ IBM
BusinessStrategy
ITStrategy
Your Company
MobileWeb
SocialWeb
MediaWeb
MachineWeb
RealtimeWeb
BusinessStrategy
ITStrategy
Think About
Think About
Your Role as Sales LEADER
1. Pose ‘questions’ that drive new thinking
2. Lead with ideas & insights
3. Help clients navigate IT landscape for business results
4. Guide CxO team see the opportunities & challenges with IT
5. Evolve from vendor to trusted advisor
5 Ideas
“The difficulty lies not so much in developing new ideas as in escaping from old ones.”
Thanks Very Much
Conversation Continues...Twitter: @NVenkatramanLinkedIN: NVenkatraman