Where Can I Take You

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

Innovation

Important books/authors

Cloud computing

Neo-nomads

METAweb

Virtual Worlds

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

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

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

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

The future is really only an innovation problem How do we find the future we prefer? Innovation is the ability to move from the existing to the preferred

Innovation versus Creativity All Rights Reserved 2008@STKI Moshav Bnei Zion, Israel +972 9 790 7000 www.stki.info Innovation is the engine that drives transformation.. Present Desired Future Default Future Vision

IMD WORLD COMPETITIVENESS YEARBOOK 2007 (2006) Professor Stéphane Garelli IMD Business School * Because of HUMAN CAPITAL

Innovation IS strategy: from BUILD to CREATE The New Economic Age All Rights Reserved 2008@STKI Moshav Bnei Zion, Israel +972 9 790 7000 www.stki.info Red Ocean Strategy Blue Ocean Strategy Compete in existing market space. Create uncontested market space. Beat the competition. Make the competition irrelevant . 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 IS strategy: from BUILD to CREATE All Rights Reserved 2008@STKI Moshav Bnei Zion, Israel +972 9 790 7000 www.stki.info Red Ocean Strategy Blue Ocean Strategy Compete in existing market space. Create uncontested market space. Beat the competition. Make the competition irrelevant . 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

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 able to get along under a leadership composed of average human beings”-

Books of the 1980-90s

BOOK OF THE 1990’s

Introduced the business world to rethinking operations.

Demonstrated how process redesign can yield breakthroughs in performance

Put the word "reengineering" into the English language.

BOOK OF THE 1990’s Business Process enabled IT

BOOK OF 2003 copied: “The Myth of Real Time Information”, HBR 1966 Plus 2000+ rebuttals And 5 books

BOOK OF 2003 copied: “The Myth of Real Time Information”, HBR 1966 Tactical and Strategic IT management

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 sourcing

My own “favorite”

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.

Aggregate bandwidth triples ~ every year.

Metcalfe ’ s Law.

The value of a network may grow exponentially with the number of participants.

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! Control Centralised Decentralised Cloud Computing

IBM Introduces 'Blue Cloud' Computing CIO Today - Nov 15 2007

IBM, EU Launch RESERVOIR Research Initiative for Cloud Computing IT News Online - Feb 7 2008

Google and Salesforce.com in cloud computing deal Siliconrepublic.com - Apr 14 2008

What is Cloud Computing? 4+ billion phones by 2010 Web 2.0-enabled PCs, TVs, etc. Businesses, from startups to enterprises 1. data and services reside in massively scalable data centers 2. accessed from any connected devices over the internet . All Rights Reserved 2008@STKI Moshav Bnei Zion, Israel +972 9 790 7000 www.stki.info

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

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 Monitoring DBMS Management Stack Provisioning Manager Application Server Monitoring Provisioning Baremetal & Xen VM Virtualized Infrastructure based on Open Source Linux & Xen Data Center – 64 bit X86 All Rights Reserved 2008@STKI Moshav Bnei Zion, Israel +972 9 790 7000 www.stki.info Open Source Linux with Xen Monitoring Agent Virtual Machine Virtual Machine Virtual Machine Virtual Machine Apache

Defining the new world

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:

Design – Beauty and uniqueness

Story – More than mere facts

Symphony – Seeing the big picture

Empathy – Understanding others

Play - Enjoyment

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:

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.

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 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

Paris existentialist watching the world go by at the café Les Deux Magots (1950s)

puffing a Gitane, napping and jotting down notes about being and nothingness

Nomad worker: Maslow’s hierarchy of needs

The Peopleware Ecosystem Peopleware WCM Security Application Servers EAI Web Services E-Forms/Workflow Search Development Tools E-Learning Directory Collaboration Expertise Location & Mgmt. SSO Wireless Business Intelligence Knowledge Mgmt. DM BPM Identity Management Composite App. Framework BAM

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

MAGIC OF THE INFORMATION AGE

Not that it allows us to know more

It really allows us to know less

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

No longer need a memory

Google

Yahoo

Wikipedia

Personal Information

Smartphone tells me about birthdays, phones, addresses

Musical taste:

ITunes

Books and others:

Amazon

Social Capital

LinkedIn

Xing

Facebook

“ A Pattern Language”, Christopher Alexander

Each pattern describes a problem that occurs over and over again in our environment

Then describes the core of the solution to that problem , in such a way that you can use this solution a million times over

Without ever doing it the same way twice

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.

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 like Facebook

MOST COMPANIES SEE IT AS A THREAT

METAweb

METAweb phenomenon

(fi-nom- uh -non)

-noun

a rare or significant fact or event in the web that happened in 2007

something that is impressive or extraordinary that happened in 2007

METAweb definition:

leverage customer-self service and algorithmic data management to reach out to the entire web , to the edges and not just the center, to the long tail and not just the head

METAweb site has 7 basics:

Services , not packaged software, with cost-effective scalability

Control over unique, hard-to-recreate data sources that get richer as more people use them

Trusting users as co-developers

Harnessing collective intelligence

Leveraging the long tail through customer self-service

Software above the level of a single device

Lightweight user interfaces, development models, AND business models

METAweb: user Transaction Sites Multimedia Sites Game Sites Social Sites Average person: 10-15 intimate 150 social 500-1500 weak links All Rights Reserved 2008@STKI Moshav Bnei Zion, Israel +972 9 790 7000 www.stki.info Banks Insurance Travel “ Amazon” “ e-bay” YOUtube Slideshare Blogs Newspapers WIKIPEDIA Business Simulations Training Second Life Sales

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.

IBM Introduces 'Blue Cloud' Computing CIO Today - Nov 15 2007

IBM, EU Launch RESERVOIR Research Initiative for Cloud Computing IT News Online - Feb 7 2008

Google and Salesforce.com in cloud computing deal Siliconrepublic.com - Apr 14 2008

Google ad

Google 10 years of innovation 1995 1998 2000 2003 2005 2004 2007 ? Core Search Ads Monetization Communications Collaboration ? All Rights Reserved 2008@STKI Moshav Bnei Zion, Israel +972 9 790 7000 www.stki.info

Leveraging the Web for Measureable Business Results

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

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

In 2010: all new WEB experience

Soon each website will become a 3 dimensional room that can be experienced alone or with friends

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

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-graphsphp Million Square Meters of Second Life Land 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) US $ Exchanged on Lindex (in Millions) 270 L$ =$1 USD

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, 3 listings)

Advisory/Analyst firms H&R Block Island BDO Stoy Hayward Island KAWG&F (Baltimore MD CPA firm), CPA Island Accenture We hope that during 2009 STKI will be present there and will have it’s first SUMMIT

Business Motorati SpokesAvatar: caLLie cLine H&R Block IBM Dr. Dobbs Life 2.0 Conference Cisco Best Buy’s Geek Squad Preen Principal: Aimee Weber Preen

Academia, museums, non-profits Princeton Art Gallery Science Friday International Spaceflight Museum Computer History Museum American Cancer Society Relay for Life

Government, politics and collective action US Congress European Community US Congress – hot topic legislation Campaign HQs Davos protest

METAweb REVOLUTION

The 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.

even the smallest companies can now have as big a presence online as a multinational corporation

All Rights Reserved 2008@STKI Moshav Bnei Zion, Israel +972 9 790 7000 www.stki.info The revolution may have started in a garage in California but it has already crossed every border moving as freely around the globe as a cloud