Is Social Business an Evolution or Revolution?


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The key to enabling business innovation is recognizing the shift from the computer being at the core of technology development to people becoming the central focus. Join us in this Webcast as Andy Mulholland, CTO of Capgemini, discusses:

*What role technology should play in your business today
*Strategies for driving business innovation
*Tools for empowering users to affect change

Published in: Technology, Business
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Is Social Business an Evolution or Revolution?

  2. 2. Is Social Business an Evolution or Revolution?Andy Mulholland – Group CTOCapgemini Group
  3. 3. Technology is at a Crossroads Today What is the role of IT dept in the enterprise today? The EVOLUTION of Back Office What role should Technology be playing in my business today? Technology has become the means by which Enterprises and their Employees can create new revenues by servicing customers and markets in new innovative ways. The REVOLUTION in the ‘Front’ Office
  4. 4. The Revolution Leads to Business Innovation The three common forms of innovation To create VALUE though a For SERVICABILITY to secure To change COST of production new market or product existing and new customers and size of available market A game-changing move that Where market or product A break through in any provides sustained ‘first cannot be innovated, service element of the operation of mover’ advantage can be used an enterprise The barriers to innovation Defocusing and loss of Optimisation Conway’s Law The immediate and obvious challenge that Enterprises cannot change beyond the any change will bring to an Enterprise constraints of their communications BUT Change is inevitable Innovation is about controlling the timing and basis of change to be advantageous to our own business
  5. 5. And the Misunderstood Topic of ‘Innovation’ (in Business Models) Exclusive membership Replace a CapEx product Affinity Club MBNA offering advantages for Pay-as-you-go with an OpEx service subs and loyalty Match buyers and sellers Expensive item free, Brokerage Century 21st for a fee on successful Premium Photocopiers creating a tied market for transactions consumables Construct new proposition Set high price and allow Bundling iPod / iTunes by simplifying complex Reverse Auction bidding downward transactions Outsourcing content Provide low-cost Reverse Crowd Sourcing Wikipedia construction in exchange iPod consumables to sell for broader view Premium high-margin product Using technology to Switch from selling a unit Product to Disintermediation WebMD deliver direct not through Hilti to providing units as a limited local source Service managed service Customer pays for a part Package combinations of Fractionalisatin NetJets of the product but gets full Smart Devices Vodafone product and services to use when needed maximise market Basic service is free and Low-cost standardised Freemium Skype ubiquitous with premium Standardisation MinuteClinc solution instead of chargeable high-cost customisation Recycle expensive Subscription Subscription fee creates Leasing MachineryLink products through a NetFlix a tied in customer base managed lease Club Low cost, self service in Managed network for User LowTouch SouthWest place of high cost with Angie’s List common interest with high service Communities revenue by advertising Re-arbitrage the ‘sell and Negative Source: Seizing the White Space Amazon buy’ cycle to finance the Harvard Business Press by Mark W Johnson Operation trader
  6. 6. So Two Very Different Business Models and Requirements Client – Server Web 2.0 and Clouds Information Technology Business Technology  Centralisation for Efficiency  External Market Optimisation  Automation of core Procedures  Provides local market differentiation  Cost Reduction  People Driven Interactions  Recharged Overheads  Expertise with Collaboration  Leverage of Enterprise resources  Open with Privacy  Data-driven Transactions  Extreme flexibility, frequent change  Computer and Application centric  Direct Bus Unit Attributed cost  Closed and Secure  Services and Standards based  Justification is COST reduction  Value creation in sales/margins
  7. 7. A ‘Front Office’ Transformation led by Business Users & Customers You don’t any longer do the following; Check Cinema showings by using the newspaper; - Buy tickets online But you do use a Go to a travel agent to research your holiday; - Book on line wide variety new Check a map for directions when driving ; - Use a navigator services from Visit a Bank for every transaction; - Online bank account Internet Connected Develop and send off photographs; - Print at home or share by cloud Clouds Pay Bills by cheque or at an Office; - Online payments And, and , and, personal behaviour has and is changing many industries; Because most of you bought a Smart Phone, or a Tablet or a Home PC; According to DigiTimes sources, non-Apple tablets are set to ship at 2011 iPad shipment forecast cut to 40M as 134% more units for 2012 than in the current year. In raw Apple faces the mother of all backlogs numbers, expect 44-45 million non-Apple tablets to ship in 2012, up from 19-20 million. The large increase is attributed to You don’t buy an iPad to use with Enterprise IT Google’s next major Android release, codenamed Ice Cream Sandwich, Apple Mac Downloads – Dec 12th 2011 The majority of Smart Phones are user owned “In just three years the App Store changed how people get mobile apps, and now the Mac App Store is changing the traditional PC software industry,” said Philip Schiller, Apple’s senior vice president of Android Smart Phone up 379% in Q2 2011, Worldwide Marketing. “With more than 100 million Android is now the No. 1 smart phone OS worldwide. The smart phone market grew 73% year-over-year to downloads in less than a year, the Mac App Store is the largest more than 107.7 million units shipped last quarter, and fastest growing PC software store in the world.”
  8. 8. The Primary Purpose for Each is Different(and therefore so should the deployment and governance!) Market Customers Application Outside - In Suppliers Inside - Out Partners Back Office IT Front Office Web & Cloud ServicesCost reduction and Market and Information Innovation inprocess automation value producing Business Models TS - SAAS CIO PRESENTATION V5.0.PPT 8
  9. 9. Outside – In is Enabled by Four Big Game Changing Capabilities Mobility Social Tools Any Connection Any Community Any Device Any Media Any Service Any Person Cloud Big Data Computer Resources Real-Time Information Apps and Services And Intelligence On Demand Storage and Search Insert "Title, Author, Date" 9
  10. 10. Making it Understandable by an Example: Servicing the Aircraft Traditional IT Applications Cloud based Services Individual synchronised predictions on Real time operations and reactions plane scheduled arrival and activities with between staff sharing information and staff inside the firewall communications Outside – In Back Office IT Back Office IT Back Office IT Back Office IT Back Office IT Back Office IT Inside – Out Copyright © 2011 Capgemini. All rights reserved | 10
  11. 11. The Transformed Enterprise has Added a Whole New Environment Outside – In Inside – Out Front Office Back Office IT Enterprise IT Structured by Business Technology Data and Procedure Unstructured Events Work is delivered as expected Respond to the buyer to the Worker/Manager and the market Roles and Unable to tell who may Responsibilities know the answer or the are clear names of all the people eMail is effective Social Networks to communicate are the most to these known effective tool as people and they are ‘topic’ process centric and therefore scale Copyright © 2011 Capgemini. All rights reserved | 11
  12. 12. The Outside-In vs. Inside-Out Paradigm Externally Focussed People & Event Centric ….Computer & Data centric ‘post PC and Mobility’ Shared and Collaborative ........ Closed and Limited Tablets and Phones Internally Focussed Standards defined …..…………………… Proprietary Social Networks, PC and Desktop ERP and BI Real time Agility Development Methods Big Data Loose Coupled ……. Close Coupled Back Office ……………..Front Office Stateless …………………... State full Operational …….Sales & Marketing Non Deterministic ….. Deterministic Cost Savings ………..Value Creating Services Based ………. Applications Compliance ……………... Innovative Web/Cloud Model …… Client Server Invest/Overhead ……. Consumption Technology Business 1 2
  13. 13. JOIN THE WEBCENTER COMMUNITY Are You Part of the Latest Conversations? Oracle WebCenter Blog: Oracle WebCenter Homepage: Oracle WebCenter Newsletter: Twitter: Facebook: LinkedIn: | © 2012 Oracle Corporation – Proprietary and Confidential
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