Planetary and Vedic Yagyas Bring Positive Impacts in Life
Oracle Presentation
1. Office of the CIO
Trends
Galit Fein
EVP & Senior Analyst
Strategies for the Web &
Office of the CIO
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2. Two Faces of the CIO
CIO function # 1 CIO function # 2
• Manager of • CEO of external IT
Your Text here Your Text here
internal IT
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3. MEGA IT Trends 2008
IT spend (inc. outsourcing) remained flat
Higher standards dictated by new regulations
Your Text here Your Text here
Greater demand for IT services but limited resources
Increasing number of small projects & its interaction
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4. IT is an Integral Organ of the Business
Contribution to
The most important IT responsibility achieving
business
strategy
29%
Business
processes
Your Text here Your Text here
improvement
57% Available &
accurate info
14%
Source: STKI
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5. Org. that lack OTC complain of:
IT support in the business strategy is less effective
Poor transparency between management & ITO
Lack of IT standardization & methodology
Your Text here Your Text here
Unproductive use & waste of human resources &
IT assets
Projects failures rate is too high
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6. IT that lack OTC complain of:
Overwhelming demand for IT services
Projects, requests, CR, maintenance are managed by
out-dated, non-integrated tools
Your Text here Your Text here
Status of requests is not available in real-time
Unable to detect & expose problems & malfunction in
early stage
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7. Why do we need Office of the CIO?
OTC ensures that every decision has optimal
strategic value in relation to cost & risk
With OTC, business managers will better understand:
Your Text here Your Text here
• Strategic impact of investment decision-making
• Cost of IT services
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8. Objectives of the PMO
IT Plan Development
Demand Management
Budget & resource management
Tools
Your Text here Your Text here
Availability of information
Post-implementation audits:
• Accompany the implementation
• Ensure successful system-use
Continuous improvement
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9. IT Plan Development
13% 33% 54%
Change
Regulatory Strategic Run
The
The
Organization
Organization
Alignment with
Str. Objectives
Your Text here Your Text here
Cost
ROI
Risk & compliance Competitive IT-enabled Running IT
Management advantage: business projects: operations:
New products, Cost advantage IT services
services, new customer satisfaction, catalogue with
markets productivity costs & SLA
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10. IT Portfolio Trends
In short term: Run the Org. spend will see some decline
from further efficiencies
In long term: Run the Org. spend will stabilized
Efficiencies here infrastructure & better ITG willhere
Your Text in Your Text enable
firms to reduce the % of IT spend on sustaining the
current systems from 70% to 50%
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11. Demand Management
Screening
• Customer representative, system manager…
Pre-agreed criteria
Your Text here Your Text here
Evaluation & prioritization:
• Compare “apples to apples”
• Avoid redundancy
Financial awareness
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12. Budget Management
Budget Allocation
IT budget distribution between Business Units according
to their strategic goals:
• Business Unit responsibility
• Operations get their own budget for the maintenance
Your Text here Your Text here
Resources allocation between Business Units according to
their strategic goals :
• Control of business demands
• Internal loan between LOBs
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13. Budget Allocation - Recommendations
Save part of resources for IT flexibility:
• New regulation
• Unexpected business activity
Your Text here Your Text here
Unplanned demand will be executed on account of
planned demand
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14. Budget Management & Control
Collecting data to show costs of services
Service catalogs:
• Chargeback
• Alternatives
Your Text here Your Text here
When IT prices its services, IT can benchmark services
against outsourced alternatives to drive further
efficiencies
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15. Planning vs. Execution – Why?
Planning vs. execution assessment:
• Actual demands’ status
• High maintenance systems
Your Text here Your Text here
• Business Unit resources exhaustion
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16. Planning vs. Execution – How?
Develop annual plan based on hours spent per task
• Incidents, maintenance, development
Not attendance clock!
Your Text here Your Text here
Reporting enforcement through executives’
dedication
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17. How do you define project success?
Israel
Usage, Bugs in production,
Reusability
Other Clients
11% Satisfaction
19%
Schedule ROI
11%
Your Text30%
here Your Text here
Cost
29%
Source: STKI
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18. Software Tools
IT managed either manually, through spreadsheets, or
through an array of standalone tools
ITG tools help the organization:
• Visualize the demand for IT services & new initiatives
Your Text here Your Text here
• Prioritize financial investment & human resources
ITG automation helps to enforce standards & practices
• Access is limited to permitted users only
• Efficient demand workflow confirmation
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19. ITG Tools Evolution
Text
Individual
project mngt
Demand mngt
Project & portfolio mngt
Standalone Financial mngt
tools Resource mngt
Your Text here
IT process mngt
Your Text here
Reporting
ERP for IT
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20. STKI Israeli Positioning
Not a technological positioning
Refers only to Israeli market
Vendor A
Focused on enterprise market (not SMB)
Local Support
Not an STKI recommendation Vendor B
Market here
Your Text
Presence (X) Your Text here
• Market share - existing and new sales (more emphasis)
• Mind share (how user organizations perceive vendors)
Local Support (Y) – is influenced by (X)
• Experience & technical knowledge, localization, support,
number and kind of integrators
Market Presence
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21. PPM- Positioning of the Israeli Market
Vendors to Watch:
Compuware IBM
Microsoft Primavera
CA
Local Support
HP Enterprise
Your Text here Your Text here
PS Next MID-Tier
This analysis should be used with its
supporting documents
Market Presence
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22. PPM Tools & Integrators in Israel
Clients New Clients 07’ Integrators
Clarity (CA) Ministry of Tourism, CA, Proceed (Calanit
Clalit, Leumi Card, Carmon)
SunDisk
Project & Portfolio Partner, Motorola, HP, Taldor
Center (HP) Mataf
Compuware Matrix
Changepoint (Matrix)
BAW,EPM, RAM, RD IBM
Composer (IBM Q4 08)
Your Text here Your Text here
Primavera (Aviv) Mercava, IDF Aviv
Requirement & Menora IAI MSP
Release mngt (MSP)
PS Next (Xioma) Bank Discount, Visa Cal Xioma, MSP Eshed
,
Menora, Teva Signifer
PPS (Microsoft) Malan Matan, Orantech
Tefen, Proceed
EPM (Microsoft) M-system, Leumit, IAI, Orbotech, Bank Leumi, Matan, Orantech, Tefen,
Lotem, Bezeq, Coca-Cola, Tnuva, Neway, Pnina Zinger,
Mekorot, Tel Aviv Strauss-Elite, IAA Proceed
Municipality
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22
22
23. PPM Tools & Integrators in Israel
SAP RPM (resource & portfolio mngt) – IAI, Bank Hapoalim,
Maaz, DSW, Cellcom, Bezeq, Bazan, Navy, Taas, Amdocs, Barom, Merkava
TimeMaker (time & task mngt)– Mirs
ERG Timesheet (time estimation mngt) -Your Text here
Your Text here
Cellcom
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24. PMO Israeli Trends
From standard project mngt to ITG processes
ITOs are currently increasing its PMO
Majority of organizations examine ITG tools
ITOs are looking for:
Your Text here Your Text here
• Ultimate ITG tool
• Process automation using existing tools
• Improving budget control by integrating work plan to ERP
PMO staffing ratio depends on organization maturity:
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25. OTC Process Implementation:
Recommendations
Receive recognition from executive mngt:
• Decision-making, budget & resources
Standardization of processes
Drawing conclusions:
Your Text here Your Text here
• Project mngt, alignment with business strategy
Use of consultants:
• Less resistance toward external involvement
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26. ITG Tools Implementation:
Recommendations
The process should be simple as it involves only a few
users
Focus on 2-3 critical KPIs
Your Text here Your Text here
Choose user friendly system
Short term ROI
Implement module by module
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27. Office of the CIO pays off
Even though establishment of the OTC takes 2-3 years, it
has a valid business justification
OTC helps firms to achieve:
Your Text here Your Text here
• Greater return on IT investments
• Higher customer satisfaction from IT
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28. IT Service Desk
Highly competitive & mature market
Continually growing staff & number of transactions
IT SD as full-service provider:
• Cost mngt - call-reduction strategies, automation
Your Text here Your Text here
efforts, service delivery alignment with defined
service levels)
• Proactive management
• Appropriate performance metrics
ITIL
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29. IT Service Desk –
Positioning of the Israeli Market
Vendors to Watch:
IBM
CA
Microsoft
SAP
Local Support
HP BMC
Enterprise
Siebel here
Your Text Your Text here
MID-Tier
PeopleSoft Pivotal SysAid
IT HD
Modules
This analysis should be used with its
supporting documents
Market Presence
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30. IT Service Desk Tools
Selected Installations in Israel
Clients New Clients Integrators
Comverse, IAI, Discount, Elta, ECI, HOT, Shabas, Rafael, Isracard CA, Ness, Malam,
CA* Motorola, Teva, Elbit, Mekorot, Osem, MSP Cabao
,
Phoenix, DSW, Bezeq Int, Beit Berl, Israel
Police, Tnuva, Central Bureau of Statistics,
EL-AL, Tamas, TASE, Ministry of Health, Tel-
Aviv Municipality
Zim, Malan, IGS, MED Nautilus, Malam, Matrix , Xor
BMC* Kneset, NDS, Social Insurance, Uniliver,
Creo, Intel, Motorola, Summit Design,
Your Text here - Your Text here
Polycom, Cellcom- eng. HOT-eng. Partner -
eng
IDF, Netafim, Shaam, Open University, HP, Xor
HP* Orbotech, Tower Semiconductors, Haaretz -
Rav-Bariach, Marvell, Dan, Jonson & Africa Israel, Mei-Eden, AIG,
SysAid* Jonson, Highway 6, Omrix, Wintegra, Sami Electra, McCann Erickson,
Consist
Shimon College, Minicom, Litcom Diesenhaus unitours, Flash
Networsks, Liveperson, Opal
Hertz, Psagot Ofek,
*ITIL compliant
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31. IT Help Desk Modules from CRM packages
Clients New Clients Integrators
Microsoft Ministry of Finance, Malan, Israeli Visa, Cellcom, Eldan, 20 Partners, including:
Navy, Intel, Prime Minister Ministry of Education Matrix-Effect, SIT,
CRM* Advantech, Team,
(*ITIL complaint) Malam, Eyron, We!,
Netwise, Bynet SW,
Yael, Avaya….
Pivotal Super-Pharm, Bat-Yam Municipality, Tadiran, Negev Ceramics, ONE1
Exlibris, Systematics, Panorama, Telmap, Orad
Your FGG Radvision, Gilat, Maccabi, ,Ericom
Text here Your Text here
Shahal, Ritalix, Globs
Coca Cola, Paz, Isr. Government Ness, IBM, EDS,
SAP Bazan
Advantech
PeopleSoft Ministry of Foreign Affairs, Mamram, Matrix
Bezeq -
Siebel* Tnuva, Visa, Golden Pages, Bank Taldor, IBM
Leumi
-
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32. The Sarbanes-Oxley Act (SOX)
Executives are enforced to accurate & verified financial
info
Periodical review of the processes used to ensure
Your Text here Your Text here
compliance with regulatory
Internal controls are regularly assessed for effectiveness
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33. What is the SOX for IT?
SOX implications have huge impact on the ITO
The role of CIO & ITOs will evolve under SOX
IT departments can expect much closer scrutiny
Need for Text here
Your
enterprise risk management &Your Text here
governance
Timely & accurate info enabled & sustained by a blend of
process, quality, & governance
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34. Enterprise Risk Mngt
Common Frameworks:
Process: Process
Developing process to improve ITIL
efficiency & IT service delivery Maturity models
Quality control: – CMM , PMM
Build metrics to follow up
Your Text here Quality control
Your Text here
performance & improvement ISO 9001
Governance: Total Quality
Establishing oversight measures Management (TQM)
Six Sigma
Governance
Consultants: HMS, One, SecOz,
COBIT
Spider, Taldor, Tulip
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35. Best Practices vs. Innovation
TACTICAL IT STRATEGIC IT
• Tactical functions simply • Strategic functions drive
Best
keep the business up & Innovation
the company’s dollar, stock
Practices
running on a day-to-day
Your Text here
basis:
value, & competitive
advantage Text here
Your
COBIT Office of the CIO
CMMI Portfolio mngt…
ISO
ITIL
Six Sigma…
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36. What’s the Best Practice Framework?
No single process/governance
framework will effectively
represent every organization
ITIL COBIT
CMMI
No single framework covers the
complete territory Six ISO
Your Text here Your Text here
Sigma
Leverage & aggregate best practices
The combination of process
methodologies will provide a more
complete view of IT’s operational/
support processes
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37. COBIT
Control Objectives for
High-level governance & control Information & Related
framework Technology (COBIT)
Developed by the Information
Systems Audit and Control
COBIT align with the COSO finan. Association (ISACA): A set of
identified control objectives
framework - recommended for
4 high-level domains (e.g.,
compliance with SOX
Your Text here Your Text here
planning & organization)
34 sub domains (e.g., manage
human resources)
Checklists for assessing IT controls
318 control points designed to
& effectiveness provide assurance that certain
objectives will be achieved
Israeli ISACA is translating
Ensures that controls & security
COBIT to Hebrew
are in place
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38. ITIL
Process is the linchpin to IT Infrastructure
delivering consistent services at Library (ITIL)
a reliable level of quality Initiated by the UK government’s
(CCTA) Central Computing &
Telecommunication Agency
ITIL primarily focuses on IT Provides best practices for
operations where 80% of IT
Your Text here deliveringYourservices
IT Text here
budgets are spent ITIL v.3 (5 books) refines the
notion of IT service
ITIL v.2 core tenants were divided
between service support &
service delivery; these are now
combined
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39. ITIL v.3 - 5 Books
Service Strategy
Service Design
Service Transition
Service Operation
Continual Service
Your Text here Your Text here
Improvement
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40. ITIL Israeli Trends
Business started to realize the importance of the ITIL
Customers started to demand vendors ITIL compliance
in RFP (especially HD & outsourcing vendors)
Main reasons to enter ITIL:
Your Text here Your Text here
• IT services improvement
• Regulations:
Companies which incorporated ITIL processes reported
better compliance with SOX, BazelII…
Bottom-up demand
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41. ITIL Adoption Trends
About 10 enterprises has already implemented some ITIL
processes
Industries with highest % of usage:
• Finance, Telecom & High-Tech
Increasing interest, but no actual investment here
Your Text here Your Text
ITIL courses & training: HP, John Bryce
ITIL lead consultants (alphabetical) & selective examples:
• CA: Ministry of Foreign Affairs
• EMC: Amdocs, Cellcom
• GalanTech- ITIL training; Amdocs; IEC; Petah-Tikva municipality
• HP- Pelephone, Ministry of Justice
• I-til consulting - Bank Leumi, Zim
• XOR - Bank Hapoalim; Bank Leumi Zion, Israel +972 9 74 444 74 www.stki.info
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42. COBIT & ITIL
Do they affect each other? Yes!
COBIT tells you what to ITIL describes how to
monitor & control implement
Higher-level business Lower-level service
value framework performance
framework
Your Text here Your Text here
The ideal configuration - a combination of both frameworks:
• ITIL measures internal technology efficiencies
• COBIT interprets them in the context of business value
The latest versions of these frameworks integrate
with each other
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43. ISO
International Organization
ISO- framework for information for Standardization (ISO)
security management Developed by the
International Organization for
ISO/IEC17799:2000 lays out a Standardization & the
International Electrotechnical
process for securing those Commission
services Textaddressing legal
Your & here Your Text here
requirements ISO specifies best practices for
security in 12 areas & offers
guidance on such topics as
protecting personal data,
internal information, &
intellectual property
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44. Importance of:
Unified Framework Responsibility
Frameworks are tied to each other
Different frameworks handled by various orgs roles:
• Accountants, CIO, CTO, QA managers, CISO, etc.
Responsibility of all frameworks MUST be unified:
Your Text here Your Text here
This translates itself
to greater efficiency &
resource saving
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45. Risk & Compliance Mngt
CobiT Control Objectives for Information
& Related Technology
Reference
framework for
Information Technology
ITIL Text here
Your governing
Your Text here IT &
Infrastructure Library
compliant with
SOX
Framework for information
ISO
security management
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46. Management Tools - Ranking
Outsourcing: one of the top 10 most used mngt tools,
however, below average satisfaction
Your Text here Your Text here
All Rights Reserved @STKI Moshav Bnei Zion, Israel +972 9 74Source: Bain & Company
444 74 www.stki.info (Mng. Tools 2007)
46
47. Outsourcing WW Trends
Outsourcing will continue to be recession-proof
Recent turmoil in credit markets will selectively slow
outsourcing in the financial services sector
multi-shore & multi-provider outsourcing will
GlobalYour Text here Your Text here
become more the norm than the exception
Capital expenditure avoidance will become a key driver
for increased demand for outsourcing & BPO
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48. Outsourcing Model
Evolution or Equilibrium?
Outsourcing model has been changed
1/3 of deals were total IT function, especially with SMBs
Rest of deals were of transferring processes & specific
fields to outsourcer: Comprehen
sive
Your Text here Your Text here
outsourcing
• Infrastructure 33%
• Help Desk support Selective
outsourcing
• Application Mngt 67%
Source: STKI
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49. Selective Outsourcing
Israeli Trends
Comprehensive outsourcing Selective outsourcing
• Loss of Flexibility • Vendor Competition
• Increased Risk • Shared Objectives
• Loss of Internal Expertise • Core Competencies
Your Text here Your Text here
Selective examples: Selective examples:
EDS: Kneset EDS: Alvarion, Ports & Railways Authority
HP: Tower HP: Navy, Telrad
Malam – Team: Dan Malam-Team: Shlomo Group, Phoneix
Ness: Tadiran Appliances Ness: Teledata, Applied Materials, UTI
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50. Outsourcing Israeli Trends
Outsourcing market will continue on steady mature
growth
Net increase in the outsourcing market
PublicYour Text heredemand will continue to grow here
sector Your Text
Decline in mega-deals (number & volume)
Most of the activity will be happening in SMBs
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51. Pace of new contract has slowed during 2007
More sophisticated customers who conduct thorough
feasibility study
End of vendors’ “suicidal prices”
A few major WW outsourcing contracts are being brought
Your Text here Your Text here
back in house:
Prudential, Selfridges, Sainsbury…
Advertisement of disagreements & problems
in contract between Mey-Eden, Mataf, Harel…
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52. Outsourcing Israeli Trends
Customers
Most orgs. succeed in achieving their objectives, but in
general they feel indifferent about the results
Companies generally have difficulty to evaluate vendor
capabilities & outsourcing outcomes
Your Text here Your Text here
Companies are choosing vendors with proven abilities to
deliver services according to SLA
Clients changing preference: smaller contracts~1-5 years
Re-biding vs. renewals: resulting in less stability
since the contract & checks take time to accomplish
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53. Multisourcing
Multisourcing still hasn’t passed the reality test
Multisourcing demands the complete mngt of operation &
providers
Mngt of operation & providers requires large
managerial here
Your Text
mechanism Your Text here
Managerial boundaries must be specified
Multisourcing demands a critical mass since providers
have lesser profit margins when it comes to
smaller contract
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54. Outsourcing Israeli Trends
Vendors
Highly competitive market with increasing no. of
vendors
Main players:
Your Text here Your Text here
• Ness, EDS, Malam-Team, IBM, HP
New players are entering the IT sector:
• Bynet , Taldor
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55. Main Factors for Failure of Outsourcing
Management lack experience of outsourcing
Management lack skill of writing & negotiating
outsourcing contracts
Your Text here Your Text here
The outsourced work is difficult to standardize
Quality did not meet expectations:
• “80:20” bubble burst
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56. Major obstacle for successful outsourcing
ITOs are dissatisfied with the methods used for
measuring vendors’ performance
ITOs still struggle with metrics design & implementation
ITOs mostly rely on the vendor's estimation
Your Text here Your Text here
The problem of measurement pertains not only to
outsourcing but also to the overall operation of a firm
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57. For what reasons have you considered
insourcing?
Have not considered insourcing 61%
51%
Cost saving not realized 24%
28%
Service levels not met 21%
26%
Your Text here
Customer dissatisfaction 13% Your Text here
26%
Change in strategy about outsourcing 12%
16%
Communication problems 13%
18%
Other 3%
5%
2008 2007 Source: Cutter
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58. What kinds of tasks are you currently
outsourcing or planning to outsource?
78%
Development
79%
64%
Maintanance
61%
Your Text here Your Text here
49%
Help Desk Support
38%
18%
Other
18%
2008 2007 Source: Cutter
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59. Tactical IT vs. Strategic IT
TACTICAL IT STRATEGIC IT
• Tactical functions simply keep • Strategic functions drive the
Outsourcing on
the business up & running In-House
company’s dollar, stock value
a day-to-day basis: & competitive advantage:
Infrastructure maintenance
Your Text here Business development
Your Text here
Service Desk New system development
QA/Testing Product marketing support
Printing Sales force automation
BPO Business & IT alignment
Security R&D
ERP
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60. IT Service Desk Trends
Highly competitive & mature market
Most of the activity will occur in SMBs
Service packages including HD tools:
Your Text here Your Text here
• The focus should be on service instead of tools
Main players & Selective Examples:
Calanit-Carmon: Isracard;
Malam-Team: Tel-Aviv municipality; EDS: Alvarion;
Taldor: “Computer for Every Teacher” project;
Yael: Tyco
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61. QA/Testing Management
Rapidly growing field
Acknowledging the advantage & cost saving by
outsourcing: the transition from PS to outsourcing
Israeli near shore:
• Main Player: Matrix (Talpiot)
Your Text here Your Text here
• Malam (Ma’alot)
• Ness (EDC)
• Aman (Tehila)
Offshore: Eastern Europe, Far East, Palestinian authority
Main Players: Ness & Tescom, Malam-Team, Matrix, Tesnet,
Tact Computer System
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62. Security Outsourcing
Security outsourcing is a growing trend
Increasingly regulated, intensive & expensive field
From firewalls to setup & maintenance of most security
systems Text here
Your Your Text here
Expert service providers:
• Economies of scale: quality security staff
• Cost saving: No longer have to pay high-level
technical staff to monitor security around the clock
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63. Professional Services / Temps Israeli Trends
Professional services growth has narrowed
In-sourcing trend as part of management perception,
despite being cost saving
OppositeText here in private versus public Your Text here
Your
trends sectors
Need for flexibility & specific proficiency:
• Demand on professional niche experts (BI, SQL, Security,
Oracle Applications, etc)
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64. IT Staffing Metrics
PS as Percentage of IT Staff
Unchanged
Insourcing
32%
45%
Your Text here Your Text here
Greater
Use
23%
Source: STKI
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65. Professional Services / Temps Israeli Trends
ITOs prefer fixed prices (overtime hours, sick pay, miluim)
Transparency with suppliers to prevent paradoxical situations
(where employee earns more than his/her employer)
PS Advantages here
Your Text Your Text here
Employee’s preservation (training, professional support,
excursions, pay increase, high mobility)
FTE Advantages
Employee’s sense of belonging
Cost saving
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66. IT roles % expecting to increase hiring:
WW Trends
Programming/system development 40%
Your Text here
Help Desk 28%Your Text here
Project management 24%
Source: CIO Insight
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67. IT roles % expecting to increase hiring:
Israeli Trends
Programming/system
55%
development
Project management 45%
Security 31%
Your Text here Your Text here
Architecture & planning 31%
Help Desk 20%
2008
Source: STKI
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68. Training Management
Recession will narrow the training & implementation market
growth
The investment of 5-10 training days of employees
Increasing need for management & service skills courses
Your Text here Your Text here
Main topics: .NET, MF, J2EE, security
Gathering momentum: ITIL, PMI, SOX, virtual communities
Main Players:
Matrix, Ness, Sela Group, Emet, Malam-Team, YANA Group
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69. Annual Training Allocation per IT Employee
Increased
28%
Your Text here Your Text here
Unchanged Decreased
50% 22%
Source: STKI
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70. Web Evolution
Your Text here Your Text here
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71. Web 2008 – an “Enterprise” Issue!
Web 08’ tools, technologies, & concepts help business find:
• New customers
• Retain existing customers more effectively
• Provide products & services at higher profit margin
Your Text here Your Text here
Business Strategic IT
Web 2.0
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72. Where is your company stands with regards
to Web 2.0 technologies?
45% 24% 32%
Video over the Web
20% 40% 40%
Your Text here
Wikis Your Text here
Deployed
Testing
26% 21% 53%
Not on radar screen
RSS
9% 25% 66%
Social Networks
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73. My company considers consumer technology for
potential business uses
Consumer technology (social networking, video games, iPod)
Disagree
5%
Agree
27%
Your Text here Your Text here
Waiting
68%
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74. Self-Service Israeli Trends
Not an innovative concept
Most orgs. are planning to invest into customer self-
service improvement:
• Cost saving
• Improved here
Your Text customer satisfaction Your Text here
Build product simpler Effective Internet
Start Self-Service version search engine
Disadvantage: lack of customer sense of belonging
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75. Virtual Worlds
Your Text here Your Text here
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76. Questions that must be examined:
What is a virtual world? / Second Life?
Why are millions of people joining VW?
What value does a VW provide?
Your Text here Your Text here
What are its real potentials & risks?
How can one make money in a VW?
Will VW affects & influences our personal, social, &
professional life, like today’s Web?
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77. Virtual Worlds
Examples (over 200 worlds):
Second Life – Microtransactions, subscription ($9.95 per month)
World of Warcraft - Software, subscription,
microtransaction ($14.99 per month)
Club Penguin – Subscription ($5.95 per month)
Barbie GirlsTextProduct sales
Your - here Your Text here
ActiveWorlds – Subscription ($69.95 per year)
Google Lively
There - Subscription
MultiVerse
Vast Park
Metaplace
Entropia Universe
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78. Economy
Reuters
Banking and credit
Stock markets
• SL Capital Exchange (US, 20 listings)
• World Stock Exchange (Australia, 15 listings)
• VSTEX (Italy, 7 listings)
• Ancapex (US,here
Your Text 3 listings) Your Text here
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79. Second Life
Million M^2 of SL Land
40,000 concurrency (at any time)
450,000 active users (last 7 days)
1.4 m active users (last 2 months)
10.6 m total accounts
Your Text here Your Text here
2 m assets created per day Total User Hours (millions)
35 TB of user-created data
800,000 unique items sold or traded
per month
500 events per day
Source: Linden Lab
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80. Currency: Linden$
US$ Spent by Users (in Millions)
LindeX exchange operated by
Linden Lab
• Buy: USD $.30 transaction fee
• Sell: 3.5% transaction fee
Your Text here Your Text here
• 270 L$ =$1 USD
US $ Exchanged on Lindex (in Millions)
Monetary policy
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81. Virtual World, Real Money
SL’s First Millionaire:
Anshe Chung (Ailin Graef) -
the virtual land baroness
Your Text here Your Text here
• In period of 2.5 years
• Initial investment 9.95$
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82. Virtual World, Real Business
Information points – interactive & dynamic online
resource or brochure
Front offices or HD - customer service
“Shop fronts” & online sales - customer product
experience here
Your Text Your Text here
Meeting venues - meetings & collaborative activities
Seminars & conferences
Advertising - products /services promotion
Product demonstrations - potential customers
Recruiting
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83. Virtual World, Real Business
Adidas Store
IBM
Your Text here Cisco Your Text here
Intel Preen
SUN
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84. Virtual World, Real Business
Scion, Toyota's youth-oriented brand, has sold (2H07)
about 200 computer-generated cars in Second Life
Your Text here Your Text here
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85. Museum & Art
International Spaceflight Museum Computer History Museum
Your Text here Your Text here
Art Gallery
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86. Tourism
Tourism destinations promotion - real places & activities
virtual experience Interactive Dublin map
Images of Sweden
Your Text here Your Text here
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87. Education & Training
Education – interactive courses with students
Training - simulation, role-play games
Your Text here Your Text here
Princeton Science Friday American Cancer
Society Relay for Life
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88. Advisory/Analyst firms
STKI
Your Text here Your Text here
H&R Block Island
BDO Stoy Hayward Accenture
KAWG&F (Baltimore MD CPA firm), CPA
Island
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89. Government, politics & collective action
European
Your Text here
US Congress Your Text here
Community
Campaign HQs Davos protest
Sweden Embassy
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90. Galit Fein
EVP & Senior Text here
Your Analyst Your Text here
Strategies for the Web &
Office of the CIO
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