Future It Services? Ask A Teenager!

Synopsis “Future IT-services? Ask a teenager!” The rapidly emerging new world of a younger generation is not based on the evolution of Information Technology as we understand the term today, nor is the technology itself necessarily the key either. Instead it as much or more about the cultural change in the way that people expect to enable their lifestyle with the technology being a largely hidden aspect - consumed as they want to do something through a 'services' environment. Classic concerns of privacy and boundaries in today's business systems are seen as barriers to be broken down by the new values of openness, sharing, but most of all by the spontaneous manner of being enabled to do what is wanted, when it is wanted, with who should be involved. This is a very different environment from the predetermined and carefully controlled world of today. However, there are key technology threads and elements we should recognise and develop our response around, open source software being an important keyword. This presentation attempts to identify and address them. The Future of IT Services 1 © Copyright Capgemini 2009 All Rights Reserved

The Future of IT Services? Ask a Teenager!! Andy Mulholland Global CTO

From Content to People, the Technology Side is there… Web 1.0 Web 2.0 Traditional media Google Gmail search Mainly narrow band Mainly Broadband Flicker Alternative media blogs netvibes Publishing is complex and Value is created by limited to few traditional media aggregating content Wikipedia and online merchants (portals) Easy publication for all Value is generated by tools 2004 2005 allowing to publish easily Web 2.0 is an interactive collaborative environment •Web 1.0 is an electronic  Blogs (e.g., Dell hell, You Tube, Flicker) version of existing content •Value is generated by  Wikis (e.g., Wikipedia) aggregating content within portals  Mash-up (e.g., iGoogle, RSS feeds etc.) • Publishing technologies are complex and slow to implement  Hosted service (e.g., Google spreadsheets, Ikea bathroom designer)  Social Networking website (e.g., Facebook, My space etc.) The Future of IT Services 3 © Copyright Capgemini 2009 All Rights Reserved

But a Young First Time Employee Already Sees a Different World Why do we pay technology industry analysts? Can we Why are there so few Macs in this office? not research everything on Google? Why do so many people get cc'ed on so many ? Are USB and Bluetooth devices banned around here? emails? You kidding me - those fat manuals are for training for And yet, why is mailbox capped at 100mb. Can I forward the system? Can I have them in MP3 files for my iPod or some stuff to Gmail which gives me 5 GB for free? see a tutorial video on-line? A few Wow - l got a tour of the massive data center. My school questions a Ignore my ignorance but isn't SOA just a supported more students than we have employees, but we younger complex mash up? had a tiny data center person is likely to ask (or How come our skills database does not allow for Why don't we use Skype to call people around certainly the world? me to enter my Ruby and PHP credentials? thinks about) as a new When I come back for my full-time role, can I apply for Can I not just text message someone's cell phone rather employee. one of these positions? than dial his pager? Everyone does not have a personal blog? We do not have Is Nintendo missing from our vendor master list? a group wiki? The Future of IT Services 4 © Copyright Capgemini 2009 All Rights Reserved

Or may be the Serious Side? Today, I believe that no crisis on this scale or magnitude will ever be handled again without sms, blogs, and wikis. That social tools will become a natural extension of rapid adaptation to chaotic conditions. I'm still trying to figure out how it all happened. What was it that put my colleagues and me on the global stage answering news requests? It was all viral and we were on a completely quot;out of controlquot; ride and yet somehow it all worked. Dina Mehta writing on the Tsunami The Future of IT Services 6 © Copyright Capgemini 2009 All Rights Reserved

Actually its about culture and not technology The Strength of Weak Ties – Mesh Collaboration – The Network of Mark Granovetter Everything  Everyone and every resource is  Granovetter's most famous work, quot;The connected Strength of Weak Tiesquot;, is considered to be one of the most influential sociology papers  Relationships are largely driven by ever written. events, context, expediency, etc  In marketing or politics, the weak ties enable reaching populations and audiences that are  Technologies are open and enabling not not accessible via strong ties. closed and restrictive The Future of IT Services 7 © Copyright Capgemini 2009 All Rights Reserved

An (Over) Simplified Model Individuals Groups Facebook, etc Twitter, etc To find people as the people input Communities Web 2.0 Activities People NOW! Event Apps & Widgets Location Running from Cloud Device etc. Web 1.0 Websites Content Websites Google RSS, etc To find content the content input Websites Websites The Network of Everything Global Resources My Personal Network The Future of IT Services 8 © Copyright Capgemini 2009 All Rights Reserved

Global Resources need to literally be that!  There is a lack of predetermined logical architecture as it thrives on ‘Virtuality’.  This is Virtualisation taken to the next level, beyond just internal resources!  Many more small services, in ever changing orchestrated processes, increasingly externally oriented with an uncertain demand pattern Cloud will drive the demand longer term Computing = Cloud of Services = Everything as a Service, XaaS  Short term the cost and flexibility will the dominant issue in cost controlled times – = Software as a Service, SaaS Inside the Cloud is a – = Processing as a Service Mesh of connections – =Storage as a Service to ‘Services’ of all types – Etc, etc The Future of IT Services 10 © Copyright Capgemini 2009 All Rights Reserved

The Network of Everything www.prosper.com Crowd Sourcing with Intimacy for Borrowers and Lenders and a risk management process to the benefit of both providing transparency in operation The Future of IT Services 11 © Copyright Capgemini 2009 All Rights Reserved

The Network of Everything can be Structured Too www.google.com Features – With Google Health, you can: Build online health profiles You can enter your health conditions, medications, allergies, and lab results into your Google Health profile and you can name the profile anything you want. You can even create multiple profiles for family members or others you care for. Import medical records from hospitals and pharmacies Choose from a list of Google Health partners to see if your hospital or pharmacy can send copies of your medical records or prescriptions to your Google Health profile. This way, you can save an accurate history of your medical conditions, medications, and test results all in one place. Learn about health issues and find helpful resources Review trusted information on diseases and conditions and learn about possible medication interactions and other topics to talk your doctors about. Search for doctors and hospitals You can search for a doctor's name or location, find a doctor's website, get directions to a doctor's office, and save a doctor's information to your medical contacts list. Connect to online health services Browse the online health services directory to find services that are integrated with Google Health that can help you better manage your health needs. The Future of IT Services 12 © Copyright Capgemini 2009 All Rights Reserved

BUT Overall there is the Issue of Transparency Can I trust them? Who do I Do they really know? know…? In what context Will they trust do I know Intimacy x Competency/Credibility me? them? Trust = Risk/Certain Ratio Here is what Have you you need? heard/seen this? What is on Is this official? Google, Wikipedia…? The Future of IT Services 13 © Copyright Capgemini 2009 All Rights Reserved

What Does This Tell Us in a Practical Manner?

People are the Driving Force Today, and they are Creating Markets! To manage theWeb 2.0 & shift from It makes my life; Interactions Information Technology to Web 1.0 better, more fun, & Content Business Technology easier, … We need ???? Smart Phone & eMail etc Cell Phone The& Textingof 1990 Lesson Era of Information Technology Business Process Re A Recession PDA & engineering Decision Support Calendar Technology Innovation Matrix Working Client Server User Driven change PC & Enterprise Cohesion lost Business Intelligence ERP Spreadsheet Functional Apps The Business can save money! Office Suites The creation of the role of the CIO To manage the shift from Computing to Information Technology Client-Server ERP Knowledge Mgt SOA The Future of IT Services 15 © Copyright Capgemini 2009 All Rights Reserved

Governance Model – For Business & Information Technology Business and Technology Architecture Governance Model Personalise An Individual’s capability to choose their ‘experience’ in how they wish to ‘Interact’ and ‘collaborate’ Loose Coupled Business Differentiate Technology A Manager’s capability to build locally unique ‘differentiating’ capabilities both externally and internally Organise (SOA) Common, shared core processes that support each differentiated offer SOA the coupling layer above, and connect to transactional IT applications below between both Tight Coupled Information Technology Comply (ERP, etc.) Traditional Enterprise Applications with organised procedures and data integrity, keeping compliant business results The Future of IT Services 18 © Copyright Capgemini 2009 All Rights Reserved

There is an Interesting Inversion in this … Business and Technology Architecture Governance Model Personalise An Individual’s capability to choose their ‘experience’ in how they wish to ‘Interact’ and ‘collaborate’ Cost or Value? Margin Loose Coupled Business Differentiate Technology A Manager’s capability to build locally unique ‘differentiating’ capabilities both externally and internally $1 $3 Organise (SOA) Common, shared core processes that support each differentiated offer SOA the coupling layer above, and connect to transactional IT applications below $2 $2 between both Tight Coupled Information Technology Comply (ERP, etc.) $3 $1 Traditional Enterprise Applications with organised procedures and data integrity, keeping compliant business results Revenue The Future of IT Services 19 © Copyright Capgemini 2009 All Rights Reserved

And Where Does Open Source Come Into this? Success is now about Cost is overcoming We need to be able to openness to change, technology limitations by adapt and change FAST sharing, and co working specialised integration … … … … to enhance your … but in focused aspects … Value is product, service or idea not monolithic being able to quickly add applications new features Outsourcing doesn’t only Fixed operating costs, have to be about operating including Application models … Licenses, are crippling required investment … it can be mean development too The Future of IT Services 20 © Copyright Capgemini 2009 All Rights Reserved

Closing Considerations Be flexible in your thinking  Its another era arriving  Ignoring is not an option Remember its not only IT  Think who and where else technology is in use  Apply a suitable governance model Standards matter  The future is across the Firewall Above All;  The new era is built around standards Work on how to develop understanding of the Culture Always consider the external implications Of People ‘enabled’ by Technology  Remember that this is the driver  Think how you will continuously be involved in change  Think ‘OPEN’ continually and at every stage A recession will accelerate change  Innovation in markets, products and alliances  Time and frequency of change is the new gold standard The Future of IT Services 21 © Copyright Capgemini 2009 All Rights Reserved

Why Will Your Business Move to do these Things? A Financial Analyst’s breakdown;  Amazon at $24 billion of market capitalisation has an extra $9 billion of market capitalisation above the standard retail sector at 14 times earnings which equates to a value of $15 billion The $9 billion story of the  Justified on the basis of the expected revenue from the Amazon Kindle at a premium of 27 times current earnings and is Kindle based on the equivalent success of the Apple iPod  Pre Christmas Kindle were selling in eBay for twice the official price of $360 consumers are so keen to get hold of them Source: www.breakingviews.com 12th Jan 2009 The Future of IT Services 22 © Copyright Capgemini 2009 All Rights Reserved

Future It Services? Ask A Teenager!

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Future It Services? Ask A Teenager! Presentation Transcript