Where Can I Take You for a trip

STKI Company Confidential for STKI clients only

6/14/2008

@STKI Moshav Bnei Zion Israel +972 (0) 9 790 7000 1

Inviting you to my office

All Rights Reserved 2008@STKI Moshav Bnei Zion, Israel +972 9 790 7000 www.stki.info

and to my library.........


This presentation is dangerous....It will make people think

• Innovation

• Important books/authors

• Cloud computing

• Neo nomads• Neo‐nomads

• METAweb

• Virtual Worlds

change is the process by which the future invades

our lives

Change

Resilience

4

our lives

Alvin TofflerCreativity

Innovation


change is the process by which the future invades

our lives

5

our lives

Alvin Toffler


Resilience: Not only the ability to recover from a change or shock.

6

Resilience: Not only the capacity of people to cope with change, stress or catastrophe. All Rights Reserved 2008@STKI Moshav Bnei

Zion, Israel +972 9 790 7000 www.stki.info


6/14/2008


RESILIENCE: The rate at which any system returns to a single steady state following a system perturbation.

7All Rights Reserved 2008@STKI Moshav Bnei Zion, Israel +972 9 790 7000 www.stki.info

RESILIENCE: The rate at which any system returns to a single steady state following a system perturbation.

IT RESILIANCE:The ability to provide an acceptable level of service in the face of faults and challenges to normal operation.


In the genes ?

Stress:• Brain releases serotonin• Kills off neurons if not metabolized

MAOA gene (with 5HTT) handles better stress:• Produces molecules better at synthesizing serotonin

Your Text hereYour Text here

9

Produces molecules better at synthesizing serotonin


The future is really only aninnovation problem

How do we find the future we prefer?

All Rights Reserved @STKI Moshav Bnei Zion, Israel + +972 9 790 7000 www.stki.info

Innovation is the ability to move from the existing to the preferred

Innovation versus Creativity

Desired Future

Vision

Innovationis the engine that drives


PresentDefault Future

that drives transformation..

INNOVATION



6/14/2008


Israel: Innovation Factory 1992‐20??


Global Innovation Index

Dr. Soumitra DuttaINSEAD Professor

GLOBAL INNOVATION

INDEX

6 SWITZERLAND 7 SINGAPORE 8 CANADA 9 NETHERLANDS 10 HONG KONG 11 DENMARK

18 ISRAEL*19 SOUTH KOREA 20 ICELAND 30 KUWAIT


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which places:1 US 2 GERMANY 3 UK 4 JAPAN 5 FRANCE

11 DENMARK 12 SWEDEN 13 FINLAND 1 4 U A E 15 BELGIUM 16 LUXEMBOURG 17 AUSTRALIA

* Because of HUMAN CAPITAL


IMD WORLD COMPETITIVENESS YEARBOOK 2007 (2006)

(1) USA 1(3) SINGAPORE 2(2) HONG KONG 3(9) LUXEMBOURG 4(5) DENMARK 5(8) SWITZERLAND 6(4) ICELAND 7(15) NETHERLANDS 8

(10) FINLAND 17(17) TAIWAN 18(21) NEW ZEALAND 19(20) UNITED KINGDOM 20

(24) ISRAEL 21*(19) ESTONIA 22(22) MALAYSIA 23

(29) THAILAND 33(33) SLOVAK REPUBLIC 34(35) HUNGARY 35(36) GREECE 36(40) JORDAN 37

Professor


(15) NETHERLANDS 8(14) SWEDEN 9(7) CANADA 10(13) AUSTRIA 11(6) AUSTRALIA 12(12) NORWAY 13(11) IRELAND 14(18) CHINA MAINLAND 15(25) GERMANY 16

(16) JAPAN 24(26) BELGIUM 25(23) CHILE 26(27) INDIA 27(30) FRANCE 28(32) KOREA 29(31) SPAIN 30

LITHUANIA 31(28) CZECH REPUBLIC 32

Professor Stéphane GarelliIMD Business School* Because of HUMAN CAPITAL

This is what I call innovation



Innovation IS strategy: from BUILD to CREATE

Red Ocean Strategy Blue Ocean StrategyCompete in existing market space. Create uncontested market space.

Beat the competition. Make the competition irrelevant.

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Exploit existing demand. Create and capture new demand.

Make the value-cost trade-off. Break the value-cost trade-off.

Align the whole system of a firm’s activities with its strategic choice of differentiation or low cost.

Align the whole system of a firm’s activities in pursuit of differentiation and low cost.

The New Economic Age



6/14/2008


Innovation IS strategy: from BUILD to CREATE

Red Ocean Strategy Blue Ocean StrategyCompete in existing market space. Create uncontested market space.

Beat the competition. Make the competition irrelevant.

19

Exploit existing demand. Create and capture new demand.

Make the value-cost trade-off. Break the value-cost trade-off.

Align the whole system of a firm’s activities with its strategic choice of differentiation or low cost.

Align the whole system of a firm’s activities in pursuit of differentiation and low cost.


Innovation: water drum that is easy to pull


Some background



Books of the 1980‐90s

-” No institution can possibly survive if it

needs geniuses or supermen to manage it.

It must be organized in such a way as to be Your Text hereYour Text here


It must be organized in such a way as to be

able to get along under a leadership

composed of average human beings”-

Books of the 1980‐90s


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BOOK OF THE 1990’s• Introduced the business world to rethinking operations.

• Demonstrated how process redesign can yield breakthroughs in performancebreakthroughs in performance

• Put the word "reengineering" into the English language.

Plus 10,000 rebuttalsAnd 20+ books



6/14/2008


BOOK OF THE 1990’sBOOK OF 2003

copied: “The Myth of Real Time Information”, HBR 1966


Plus 2000+ rebuttalsAnd 5 books

BOOK OF 2003copied: “The Myth of Real Time Information”, HBR 1966


Book of 2005• Thomas Friedman

– 3 billion people (consumers & producers) entered the world economies

• Eastern Europe (ie: Rumania)

• Asia (ie: China, India)

– Now we have a “new” economy:• Interconnected (fiber everywhere)

• Standardized (Open Source)

• Supply Chains Management

• Out‐sourcing, In‐sourcing, Off‐shoring

• Info sourcingAll Rights Reserved 2008@STKI Moshav Bnei Zion, Israel +972 9 790 7000 www.stki.info

Book of 2005


My own “favorite”



6/14/2008


What now ???


Three Laws of Computing:growth rate of network & computing speed

• Moore’s Law. – Transistors on a single

chip doubles ~ every 18–24 months.

• Gilder’s Law

1,000,000,000,000100,000,000,000

Moore/Transistors

10,000,000,0001,000,000,000

100,000,00010,000,0001,000,000

• Gilder s Law. – Aggregate bandwidth triples

~ every year.

• Metcalfe’s Law. – The value of a network may

grow exponentially with the number of participants.

1970

Gilder/Bandwidth

Metcalf/NetworkNodes

100,00010,0001,000

100101

1975 1980 1985 1990 1995 2000 2005 20102,300 6,000 29,000 275,000 1.2 mil 5.5 mil 42 mil 252 mil 1.344 bil

50 50 56 1,544 45,000 145,000 10 mil 2.43 bil 200.49 bil

4 111 200 10,000 300,000 1 mil 140 mil 3.5 bil 300 bil

Source: Cambridge Energy Resource AssociatesAll Rights Reserved 2008@STKI Moshav Bnei Zion, Israel +972 9 790 7000 www.stki.info

Disruptive technologies• Introduction of the IBM Mainframe ( 1960’s)

• Introduction of the Apple II (1978), IBM PC (1981), TCP/IP (1980’s), C/S Architectures (1980’s), SUN workstations (1980’s), Internet (1990’s)

• Introduction of XML‐based Composite Applications (2006), Service Oriented Architectures (2005), Virtualized Infrastructures (2004),Web 2/internet 2 (2007), Cloud Computing (2008), METAweb (2008)


Computing and Communication Technologies Evolution: 1960‐2010!

Cloud Computing


Control

Centralised Decentralised

Cloud Computing

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A. IBM Introduces 'Blue Cloud' Computing CIO Today ‐ Nov 15 2007B. IBM, EU Launch RESERVOIR Research Initiative for Cloud Computing

IT News Online ‐ Feb 7 2008C. Google and Salesforce.com in cloud computing deal

Siliconrepublic.com ‐ Apr 14 2008


What is Cloud Computing?1. data and services reside in massively scalable datacenters

2. accessed from any connected devices over theinternet.

4+ billion phones by 2010

Web 2.0-enabled PCs, TVs, etc.

Businesses, from startups to enterprisesAll Rights Reserved 2008@STKI Moshav Bnei Zion, Israel +972 9 790 7000 www.stki.info


6/14/2008


Wisdom of Clouds : "cloud computing" What's revolutionary is not cloud computing itself but how the pieces have come together to make doing business in the cloud seem increasingly like an economic inevitability

Cl d ti i i l t Your Text hereYour Text here

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Cloud computing is a simple concept: • Software and services are delivered over the Web and

through a browser. • No servers or client software to install.• Available anytime, anywhere, from any device

connecting to the Internet


Cloud Computing Architecture

VirtualMachine

VirtualMachine

VirtualMachine

VirtualMachine

Apache

Monitoring DBMS

Management Stack

Provisioning Manager

Application Server

Monitoring Provisioning Baremetal & Xen VM

Open Source Linux with Xen

Monitoring Agent

Virtualized Infrastructure based on Open Source Linux & Xen

Data Center – 64 bit X86


39All Rights Reserved 2008@STKI Moshav Bnei Zion, Israel +972 9 790 7000 www.stki.info 40All Rights Reserved 2008@STKI Moshav Bnei Zion, Israel +972 9 790 7000 www.stki.info


Defining the new world


6/14/2008


ABILITIES in an outsourced/automated world

• infrastructure makes it possible for people to work where they want, when they want, how they want

• SIX abilities needed:

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1. Design – Beauty and uniqueness

2. Story – More than mere facts

3. Symphony – Seeing the big picture

4. Empathy – Understanding others

5. Play ‐ Enjoyment

6. Meaning – Fulfillment


OLDENBURG: The “third” place Time is primarily spent in :• First (home) place: isolated• Second (work) place: isolated• Third places : neutral public space to

connect and establish bonds.

Big Changes now:Your Text hereYour Text here

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Big Changes now:• Between 1990-2006: people went to

anonymous locations such as malls• Starting in 2007: good third place makes

admission free or cheap (the price of a cup of coffee), offers comforts, is within walking distance and draws a group of regulars.


Neo‐nomads : new Bedouins flourishing in the coffeehouses of central Israel

• A new breed of worker, fueled by caffeine and using the tools of modern technology

• They are typically armed with laptops and cell phones paying for


laptops and cell phones, paying for their office space and Internet access by buying coffee and muffins

• This neo‐nomads see themselves changing the nature of the workplace, if not the world at large.

Nomad Worker (2008) vs. Paris Existentialist (1950s)

Tel-Aviv geek with earphones and laptop in Arcaffe (2008)• simultaneously cramming for

exams, napping, instant-messaging, researching, reading and discussing, listening to music, browsing and e-mailing


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browsing and e mailingParis existentialist watching the world go by at the café Les DeuxMagots (1950s) • puffing a Gitane, napping and

jotting down notes about being and nothingness


Nomad worker:Maslow’s hierarchy of needs


Nomad worker:Maslow’s hierarchy of needs



6/14/2008


and the effect on IT…….


WCMSecurity

Application Servers

EAIExpertise Location & Mgmt.

SSO

Wireless

The Peopleware EcosystemIdentity Management

Composite App.Framework


PeoplewareWeb Services

E-Forms/Workflow

Search

Development Tools

E-Learning

Directory

Collaboration

& Mgmt.

Business Intelligence

Knowledge Mgmt.DM

BPMBAM

2007: the year of my discovery

• “SACRED ORDER OF THE EXTERNAL MIND”I could outsource mental tasks

Life is a math problem and I have a calculator

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• MAGIC OF THE INFORMATION AGENot that it allows us to know more

It really allows us to know less


An example: my romantic attachment to my “GPS”

GPS

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• EXTERNALIZE GEOGRAPHIC INFORMATION FROM MY BRAIN

• OUTSOURCE MAP READING SKILLS• ALLOW CALCULATION OF DRIVE TIME


Pinpoints a supermarket in MEXICO ?my son is calling from there





6/14/2008




I have outsourced part of my life to external cognitive servants:

• No longer need a memory– Google– Yahoo– Wikipedia

• Musical taste:– ITunes

• Books and others:– Amazon

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• Personal Information– Smartphone tells me about birthdays, phones, addresses

• Social Capital– LinkedIn– Xing– Facebook


“A Pattern Language”, Christopher Alexander

Each pattern describes a problem that occurs over and over again in our environmentThen describes the core of the solution to that problem, in such a way that


57

you can use this solution a million times over

Without ever doing it the same way twice


And with access to these tools I can answer ANY question in less then 30 minutes


A powerful global conversation has begun

• Through the Internet, people are discovering and inventing new ways to share relevant knowledge with blinding speed.

• Networked markets are beginning to self‐organize faster than the companies that have traditionally served them.

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served them.

• As a direct result and thanks to the web, markets are becoming better informed, smarter, and more demanding of qualities missing from most business organizations.

• markets are getting smarter and getting smarter faster than most companies


Companies wake up !!!!!!!

Customers are:• writing about products on blogs• recutting commercials on YouTube • defining companies on Wikipedia• ganging up in social networking sites

CHARLENE LIJOSH BERNOFF


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g g g p glike Facebook

MOST COMPANIES SEE IT AS A THREAT



6/14/2008


Social Technographics™ Josh Bernoff, co‐author of Groundswell


METAweb phenomenon (fi-nom-uh-non)

-noun

METAweb

62

noun1. a rare or significant fact or event in the

web that happened in 2007

2. something that is impressive or extraordinary that happened in 2007


METAweb


Innovation

METAwebpushes need for “new CIO”

64

Time

METAweb


METAweb definition:

leverage customer-self service and

algorithmic data management to

reach out to the entire web, to the Your Text hereYour Text here

65

edges and not just the center, to the

long tail and not just the head


METAweb site has 7 basics: 1. Services, not packaged software, with cost-

effective scalability 2. Control over unique, hard-to-recreate data

sources that get richer as more people use them

3 Trusting users as co developers Your Text hereYour Text here

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3. Trusting users as co-developers 4. Harnessing collective intelligence 5. Leveraging the long tail through customer self-

service 6. Software above the level of a single device 7. Lightweight user interfaces, development

models, AND business models



6/14/2008


METAweb: user

Transaction Sites Multimedia Sites Game Sites Social Sites

BanksInsuranceTravel“Amazon”“e‐bay”

YOUtubeSlideshareBlogsNewspapersWIKIPEDIA

Business SimulationsTrainingSecond LifeSales

Average person:10‐15 intimate150 social500‐1500 weak links

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Websites can no longer be islands

Users want bridges elsewhere

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Google versus ???

Humanity emits the data (words, pictures, clicks, and searches are the raw material)Handful of cloud-wielding Internet giants like Google, Yahoo! or Amazon.com transform the info into insights, services, and, ultimately, revenue.



http://labs.google.com/


Why does it bother me ?


Cloud Computing

72

A. IBM Introduces 'Blue Cloud' Computing CIO Today ‐ Nov 15 2007B. IBM, EU Launch RESERVOIR Research Initiative for Cloud Computing

IT News Online ‐ Feb 7 2008C. Google and Salesforce.com in cloud computing deal

Siliconrepublic.com ‐ Apr 14 2008



6/14/2008


Google adCore Search Ads Monetization Communications Collaboration ?

Google 10 years of innovation

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1995 1998 2000 2003 20052004 2007 ?


Internet 2 is not Web 2


WEB 2 are WEB Technologies


Internet2: 2.4 Gbps plumbing

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Leveraging the Web for Measureable Business Results

• Gone are the days when merely having an online presence was a business breakthrough.

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• Today's companies MUST leverage the power of the Web if they're to gain and maintain a competitive advantage.



6/14/2008


In 2010: all new WEB experienceSoon each website will become a 3 dimensional room that can be experienced alone or with friends


79All Rights Reserved 2008@STKI Moshav Bnei Zion, Israel +972 9 790 7000 www.stki.info 80All Rights Reserved 2008@STKI Moshav Bnei Zion, Israel +972 9 790 7000 www.stki.info


Second Life is the biggest virtual world

• 40,000 concurrency (at any time)• 450,000 active users (last 7 days)• 1.4 m active users (last 2 months)• 10.6 m total accounts• 2 m assets created per day• 35 TB of user‐created data

Million Square Meters of Second Life Land

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• 800,000 unique items sold or traded per month

• 500 events per day• 15 m concurrent scripts• 10 Gbps peak bandwidth

Source: http://secondlife.com/whatis/economy-graphs

Total User Hours (millions)

Source: Linden Lab

Currency: Linden$

• LindeX exchange operated by Linden Lab– Buy: USD $.30 transaction fee

– Sell: 3.5% transaction fee

• Monetary policy

US$ Spent by Users (in Millions)

270 L$ =$1 USD

US $ Exchanged on Lindex (in Millions)

Economy

• Reuters• Banking and credit• Stock markets

– SL Capital Exchange (US, 20 listings)World Stock Exchange (Australia 15 listings)– World Stock Exchange (Australia, 15 listings)

– VSTEX (Italy, 7 listings)– Ancapex (US, 3 listings)


6/14/2008


Advisory/Analyst firms

We hope that during 2009 STKI will b t th d ill h it’

H&R Block Island

BDO Stoy Hayward Island

KAWG&F (Baltimore MD CPA firm), CPA Island Accenture

be present there and will have it’s first SUMMIT

Business

Motorati SpokesAvatar:

LLi Li

IBM

CiscoPreen Principal:Aimee Weber

Preen

86

caLLie cLine

H&R Block

Dr. Dobbs Life 2.0 Conference

Best Buy’sGeek Squad

Academia, museums, non‐profits

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Princeton Art Gallery Science Friday

International Spaceflight Museum

Computer History Museum

American Cancer Society Relay for

Life

US Congress hot topic

Government, politics and collective action


US Congress

European Community

US Congress – hot topic legislation

Campaign HQs Davos protest

METAweb REVOLUTIONThe real, long-term change is just beginning to be felt, and anyone thinking about our economic future should consider this: • access to information is a democratizing force• makes it inexpensive and easy to collaborate and share

information Your Text hereYour Text here

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information. • even the smallest companies can now have as big a

presence online as a multinational corporation


The revolution may have started in a garage in California but it has already crossed every border

moving as freelyaround the globe as a cloud


Technology

Where Can I Take You for a trip