Information Technology Everywhere
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A presentation that discusses the implications of pervasiveness of IT. What does it mean for business strategies and IT strategies to think of alignment in this new network era?

A presentation that discusses the implications of pervasiveness of IT. What does it mean for business strategies and IT strategies to think of alignment in this new network era?

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Information Technology Everywhere Presentation Transcript

  • 1. IT  Everywhere  Professor  N.  Venkat  Venkatraman   David  J.  McGrath  Jr.  Professor  of  Management   Boston  University  School  of  Management   venkat@bu.edu     IBM  ASL  @  Boston  University   February  21,  2011  
  • 2. Imagine  life  without  informaMon  technology……  (c)  N.  Venkatraman  [2011]   2  
  • 3. IT  Everywhere   Illustrative  Cases  and  Concepts   What  does  it  mean  for  IBM   (and  your  clients)?  Discussions   3  
  • 4. Role  of  IT  Till  Recently…   Business   IT   Strategy   Strategy  (c)  N.  Venkatraman  [2011]   4  
  • 5. Let  Us  Look  Back  at  1995   1,940,000,000 5,000,000,000(c)  N.  Venkatraman  [2011]   5  
  • 6. The  World  Wide  Web  in  1995  (c)  N.  Venkatraman  [2011]   6  
  • 7. State-­‐of-­‐the-­‐Internet  2010…  (c)  N.  Venkatraman  [2011]   7  
  • 8. 8  
  • 9. There’s  the  social  web..  (Facebook)   • 600(+)  million  active  users   • 70%  outside  USA   • 150  Million  access  using  mobile  devices   • 50%  log  on  in  any  given  day   • 700  billion  minutes  per  month  (c)  N.  Venkatraman  [2011]   9  
  • 10. And  there’s  the  media  web..  (YouTube)   2  billion  views  per  day   10%  of  Internet  traffic  globally   78%  outside  USA   1  million  video  uploads  EVERY  DAY   $1  million  (daily  bandwidth  cost)   900  seconds  –  daily  average  Mme  spent  per  user  (c)  N.  Venkatraman  [2011]   10  
  • 11. And..  there’s  the  real-­‐Mme  web  (Twiber)  (c)  N.  Venkatraman  [2011]   11  
  • 12. Tweets  seem  to  be  purpose-­‐driven   Link  (c)  N.  Venkatraman  [2011]   12  
  • 13. There  are  other  trends  to  track..  (c)  N.  Venkatraman  [2011]   13  
  • 14. From  1995  Mll  today..   •  Developments  in  informaMon  technology  have   been  dramaMc  and  significant   •  Shids  in  management  pracMces  have  been   incremental  and  slow   •  New  business  systems  are  emerging   –  Global   –  Digital   –  Connected  (c)  N.  Venkatraman  [2011]   14  
  • 15. 2010  Onwards..  The  Decade  of  Smart  (c)  N.  Venkatraman  [2011]   15  
  • 16. IT  Everywhere  in  2015:   Your  Ideas  and  Insights   One  Sure   One   Trend  that   Uncertainty   YOU  see…..   that  YOU   see…..  (c)  N.  Venkatraman  [2011]   16  
  • 17. The  future  with  IT…  (c)  N.  Venkatraman  [2011]   17  
  • 18. A  Simple  Everyday  Example  (c)  N.  Venkatraman  [2011]   18  
  • 19. InformaMon  technology  is  impacMng  design   and  features  of  products..  (c)  N.  Venkatraman  [2011]   19  
  • 20. Nike  +  Apple  :  A  ‘Sports  Ecosystem’  (c)  N.  Venkatraman  [2011]   21  
  • 21. We  conMnue  to  connect  many  different   products  to  the  network   Products     Towards   on  IP-­‐ mulM-­‐  billion   devices   network  (c)  N.  Venkatraman  [2011]   22  
  • 22. But  complementary  business  systems  have   not  yet  evolved  in  many  cases..     1999(c)  N.  Venkatraman  [2011]   23  
  • 23. Even  today....  (c)  N.  Venkatraman  [2011]   24  
  • 24. InformaMon  technology  and  the  design  of   business  process  systems..  (c)  N.  Venkatraman  [2011]   25  
  • 25. FedEx  SenseAware  (c)  N.  Venkatraman  [2011]   26  
  • 26. John  Deere  &  Precision  Agriculture  (c)  N.  Venkatraman  [2011]   27  
  • 27. Smart  Processes  are  becoming  more   common  in  many  industry  sectors.     Healthcare   LogisMcs   Next-­‐ generaMon   Energy   business   processes   Media  &  entertainment   Financial  Services  (c)  N.  Venkatraman  [2011]   28  
  • 28. InformaMon  technology  ushering  next   generaMon  of  services    (c)  N.  Venkatraman  [2011]   29  
  • 29. Even  in  ciMes..  (Boston)  (c)  N.  Venkatraman  [2011]   30  
  • 30. Facebook  Pages  and  Service  Delivery  (c)  N.  Venkatraman  [2011]   31  
  • 31. Services  delivered  through  new  devices  (c)  N.  Venkatraman  [2011]   32  
  • 32. …  with  new  ways  of  interacMons  (c)  N.  Venkatraman  [2011]   33  
  • 33. Services  delivered  through  network   Next-­‐ generaMon   Service   services   Delivery  (c)  N.  Venkatraman  [2011]   34  
  • 34. The  new  digital  business  plamorm   Transact Innovate Live Learn Play Work Connect Consume(c)  N.  Venkatraman  [2011]   35  
  • 35. Let  us  introduce  three  technology  laws   Bandwidth  Law   Metcalfe’s  Law   Moore’s  Law  (c)  N.  Venkatraman  [2011]   36  
  • 36. And  look  at  them  together..   Moore’s  Law   “Computer”   Bandwidth   Metcalfe’s   “ConnecFvity”   “Cloud”   Law   Law  (c)  N.  Venkatraman  [2011]   37  
  • 37. Role  of  IT  in  the  Future…   global business footprint d -base ls cloud mode new platforms ss b usine Business  Strategy   I/T  Strategy   servic iness e intera data and insights overlap ping bus ctions ms strat ecosyste egy  f or  ‘a cross pps’ co-creation a scale   ptio n@ entities disru(c)  N.  Venkatraman  [2011]   38  
  • 38. In  IBM’s  parlance…..   Intelligent   Intercon nect   Instrument  (c)  N.  Venkatraman  [2011]   39  
  • 39. Smarter  Systems  Rely  on  Data  &  Insights   Data   Information   Knowledge   Action   Results  (c)  N.  Venkatraman  [2011]   40  
  • 40. IT  Everywhere…  Towards  Ubiquity     Business   Consumer   Business   MulMbillion   B2B   B2C   connecMons  with   D2D   rich  data   Consumer   C2B   C2C  (c)  N.  Venkatraman  [2011]   41  
  • 41. IT  Everywhere   Illustrative  Cases  and   Concepts   What  does  it  mean  for  IBM   (and  your  clients)?  Discussions   42  
  • 42. Serng  1:     Dynamics  of  IT  Sector   Desktop   Mainframe   Mini   Personal   Mobile   Internet   CompuMng   CompuMng   CompuMng   Internet   CompuMng  1960s   2010s  (c)  N.  Venkatraman  [2011]   Source:  Morgan  Stanley  (2009)   43  
  • 43. Computer  industry  [circa  1980]   Source:  Bill  Gates  TesMmony    (c)  N.  Venkatraman  [2011]   44   Source: Bill Gates Testimony
  • 44. Computer  Business  System     [circa  2002]  (c)  N.  Venkatraman  [2011]   Source: Bill Gates Testimony 45  
  • 45. Two  Key  Ideas…   VerMcal  integraMon  giving  way  to  virtual   integraMon    When  and  how  do  new  layers  emerge?      When  do  layers  disappear  or  morph?   1    Can  you  disrupt  by  introducing  a  new  layer   where  you  hold  an  advantage?    Can  new  entrants  succeed  by  introducing   new  layers?    (c)  N.  Venkatraman  [2011]   46  
  • 46. Two  Key  Ideas…   Winning  requires  dominaMng  a  layer  and   inter-­‐connecMng  across  layers    What’s  your  pabern  of  interconnecMons   across  the  layers?   2    How  do  your  compeMtors  interconnect   across  the  layers?    Do  you  have  network  advantage?     Can  you  defend  it?    (c)  N.  Venkatraman  [2011]   47  
  • 47. Wealth  CreaMon  and  DestrucMon  Across   Cycles  of  Business  Systems  in  CompuMng     Desktop   Mainframe   Mini   Personal   Mobile   Internet   CompuMng   CompuMng   CompuMng   Internet   CompuMng  1960s   2010s   Each  cycle  required  the  leaders  to  arMculate   and  architect  different  business  ecosystems    (c)  N.  Venkatraman  [2011]   Adapted  from  Morgan  Stanley  (2009)   48  
  • 48. We  are  in  the  early  days  of  mobile  internet  (c)  N.  Venkatraman  [2011]   49  
  • 49. We  are  in  the  early  days  of  mobile  internet  (c)  N.  Venkatraman  [2011]   50  
  • 50. Emerging  Trends  in  the  I/T  Sector…..   So Lo Mo      (c)  N.  Venkatraman  [2011]   Source: John Doerr, Kleiner Perkins 51  
  • 51.  IT  Industry  Today….  (c)  N.  Venkatraman  [2011]   52  
  • 52.  IT  Industry  Today….   Products   SoluMons   Plamorms   Services  (c)  N.  Venkatraman  [2011]   53  
  • 53. Serng  2:  AutomoMve  (c)  N.  Venkatraman  [2011]   54  
  • 54. Automobile–  “computers  on  wheels”   ‘Black Box’ How  many  lines  of  sodware  code?  (c)  N.  Venkatraman  [2011]   55  
  • 55. Automobiles–  “computers  on  wheels”   “Cost  of  electronics   in  cars”    (~20-­‐50%)  (c)  N.  Venkatraman  [2011]   56  
  • 56. GM  OnStar  (c)  N.  Venkatraman  [2011]   57  
  • 57. Real-­‐Mme  InteracMons  for  Safety  and   Convenience   • 2,600  AutomaMc  Crash  Responses   • 10,400  Emergency  Services   • 6,000  Good  Samaritan  Calls   • 600  Stolen  Vehicle  Assistance   • 62,700  Remote  Door  Unlocks   • 54,500  Remote  Vehicle  DiagnosMcs   • 3.4  million  OnStar  DiagnosMcs  E-­‐mails  Sent   • 30,200  Roadside  Assistance  Calls   • 961,000  Turn-­‐by-­‐Turn  Routes  Delivered   • 29  million  OnStar  Hands-­‐Free  Calling  Minutes   Monthly data as of 2008(c)  N.  Venkatraman  [2011]   Source: OnStar 58  
  • 58. Ford  (and  Microsod):  Sync   In-Car WiFi (2010)(c)  N.  Venkatraman  [2011]   59  
  • 59. My  Ford  Touch  @  CES  2010  (c)  N.  Venkatraman  [2011]   60  
  • 60. Ford  Sync  in  2011  (c)  N.  Venkatraman  [2011]   61  
  • 61. Mobile  Apps  linked  to  Automobiles  (c)  N.  Venkatraman  [2011]   62  
  • 62. Business  systems  forming  around   compeMng  IT  architectures   “Apps”   “Apps”   “Apps”   “Apps”   “Apps”   “Apps”   “Apps”  (c)  N.  Venkatraman  [2011]   63  
  • 63. “Apps”  bring  mobile  devices  into  the   automobile  network  (c)  N.  Venkatraman  [2011]   64  
  • 64. Emerging  Automobile  Business  System?   Social  Network   Services  (safety,  entertainment,  insurance  etc.)   Data  (analyMcs)     Apps   Sodware  (OperaMng  Systems  Layer)     Hardware  (Chassis  &  Engine)  (c)  N.  Venkatraman  [2011]   65  
  • 65. Two  Key  Ideas…   Who  is  architecMng  the  emerging   business  system  in  the  auto  sector?    GM?  Ford?  Sodware  companies?      Where  will  value  be  created?   1    Who  holds  the  architectural  advantage?      What’s  the  role  of  ‘apps’  in  the  auto-­‐ sector?    How  will  hybrid  and  electric  vehicles   alter  the  business  system?    (c)  N.  Venkatraman  [2011]   66  
  • 66. Two  Key  Ideas…   Winning  requires  dominaMng  a  layer   and  inter-­‐connecMng  across  layers    What’s  GM’s  (or  Ford’s)  pabern  of   interconnecMons  across  the  layers?   2    Does  GM  or  Ford  or  Toyota  have   network  advantage?  Can  they  defend   it?      How  will  hybrid  and  electric  vehicles   alter  this  sector?  (c)  N.  Venkatraman  [2011]   67  
  • 67. Towards  Intelligent  vehicle  and  Smart   traffic…..  (c)  N.  Venkatraman  [2011]   68  
  • 68. Other  IT-­‐influenced  business  systems…   •  Healthcare  and  wellness   •  Energy   •  Publishing  and  media   •  Retail     •  LogisMcs  and  distribuMon   •  Etc.  etc..    (c)  N.  Venkatraman  [2011]   69  
  • 69. IT  Everywhere   Illustrative  Cases  and  Concepts   What  does  it  mean  for  IBM   (and  your  clients)?  Discussions   70  
  • 70. Role  of  IT  in  Your  Client  Serng   global business footprint d -base ls cloud mode new platforms ss b usine Business   Strategy   servic e intera data and insights IT   ctions reation a cross ale stra Strategy  ng business overlapp i co-c sc ms entities p tion@ tegy  for  ‘ ecosyste disru apps ’  (c)  N.  Venkatraman  [2011]   71  
  • 71. Managing  IT  Everywhere:     Co-­‐creaMon  of  Value  with  Your  Clients   Innovation   Your   IBM   Client   Implementation  (c)  N.  Venkatraman  [2011]   72  
  • 72. In  closing……   “The  difficulty  lies   not  so  much  in   developing  new   ideas  as  in  escaping   from  old  ones.”   John  M.  Keynes  (c)  N.  Venkatraman  [2011]   73  
  • 73. IT  Everywhere