2010 CIO Outlook Roo Reynolds (with thanks to Dave Newbold)

“ The 2010 CIO Outlook is a point of view on future IBM business transformation and a roadmap for IBM’s CIO organization” 2010 trends and impact Current opportunity gaps Enterprise 2.0 Employee scenario Inhibitors Indicators CIO Outlook

Trends with the most business impact in 2010 Global integration Participatory internet Workforce demographics Software as a service Virtualized data and devices Simplicity from design

Global integration

Participatory internet

Workforce demographics

Software as a service

Virtualized data and devices

Simplicity from design

Opportunity gaps Plans are in place for data, productivity, business process and infrastructure optimization, and transition to services oriented architecture (SOA). Therefore, we focused the 2010 CIO Outlook on: 1. Employee driven integration 2. Global collaborative innovation 3. Aggressive pursuit of simplicity and hosting “ Its all about integration and innovation ” - Sam Palmisano, April 25, 2006

Plans are in place for data, productivity, business process and infrastructure optimization, and transition to services oriented architecture (SOA).

Therefore, we focused the 2010 CIO Outlook on: 1. Employee driven integration 2. Global collaborative innovation 3. Aggressive pursuit of simplicity and hosting

2010 CIO Outlook themes Open data to (re)use Capture participation Transition to simple and open hosted tools Encourage customization Reward sharing via reputation Integrate results with clients

Open data to (re)use

Capture participation

Transition to simple and open hosted tools

Encourage customization

Reward sharing via reputation

Integrate results with clients

Integration foundation : Services Oriented Architecture “ You will waste your investment in SOA unless you have enterprise information that SOA can exploit ." Gartner Research, 2005 SOA builds a foundation of application and data services that permit business agility and encourage the reuse and ‘remixing’ of components Service Flow Data Existing Applications New Service Logic B2B Interactions Portal Service SOA/REST Service Request Strategy Tactics Execution Business Administration Finance Administration Supply Chain & Distribution Store/Channel Operations Manage Customers Merchandising Transformation View Planning LOB Planning Procurement Financial Planning Finance Treasury Back Office Accounting SCM Transportation Inventory Store Services Perf. Mgt. MI Process Design Alliances Market Mgt. Real Estate IT HR Distribution Logistics Distribution Ops. Supply/ Demand Customer Sat. Space Mgt. Product Directory Vendor Mgt. Item Mgt. Customer Directory Order Mgt. Store Mgt. Inventory Channels CRM Customer Accts. Store/Channel Strategy Labor Promotions IPT Insights Vendors Store Design Legal/Reg 1. 2. 3.

Innovation foundation : Web 2.0 patterns User-driven adoption Value on demand Low cost of entry Public infrastructure Service, not software Recommendations Social networking features Tagging User comments Community rights management Users add value Responsive UIs (AJAX) Feeds (Atom, RSS) Simple extensions Mashups (REST APIs) Easy to use and remix

User-driven adoption

Value on demand

Low cost of entry

Public infrastructure

Recommendations

Social networking features

Tagging

User comments

Community rights management

Responsive UIs (AJAX)

Feeds (Atom, RSS)

Simple extensions

Mashups (REST APIs)

Community: how it works outside the firewall

Software as a Service (SaaS) The new generation of hosted software is: Simpler to use Easy to deploy and manage Easy to customize As capable Often easier to integrate Lower cost

The new generation of hosted software is:

Simpler to use

Easy to deploy and manage

Easy to customize

As capable

Often easier to integrate

Lower cost

Enterprise 2.0 This combination of SOA, Web 2.0 patterns and SaaS is the core of the 2010 CIO Outlook strategy Some analysts call this Enterprise 2.0 * What is the business value for IBM? User driven innovation in search, data quality, customer insight, process improvement, etc. Simpler more productive solutions for everyone, especially mobile employees Integration of user tasks, business processes and social awareness to improve quality of results Reduced cost and higher employee satisfaction Innovate Enterprise 2.0 solutions for our clients * Andrew McAfee, Sloan Management Review, Spring 2006 Social Friending Blogs Blog comments Tagging colleagues Reputation evaluations Open wikis Tagging documents Open 'Activities' (task scripts) Using browser scripts Scripting formal processes Desktop task mash-ups Extending internal apps. (via script) Writing Situational Applications Desktop widgets Data APIs REST Services APIs Web Services Technical Enterprise 2.0 Spectrum

This combination of SOA, Web 2.0 patterns and SaaS is the core of the 2010 CIO Outlook strategy

Some analysts call this Enterprise 2.0 *

What is the business value for IBM?

User driven innovation in search, data quality, customer insight, process improvement, etc.

Simpler more productive solutions for everyone, especially mobile employees

Integration of user tasks, business processes and social awareness to improve quality of results

Reduced cost and higher employee satisfaction

Innovate Enterprise 2.0 solutions for our clients

Example: Building employee profiles How can we do a better job finding the right people, building relationships and trust? Auto profiling? Better search? Include patents? Include blogs? Encourage tagging… and then exploit it!

How can we do a better job finding the right people, building relationships and trust?

Auto profiling?

Better search?

Include patents?

Include blogs?

Encourage tagging…

and then exploit it!

How can we do a better job finding the right people, building relationships and trust? Auto profiling? Better search? Include patents? Include blogs? Encourage tagging and then exploit it! Social network from tags Example: Building employee profiles

How can we do a better job finding the right people, building relationships and trust?

Auto profiling?

Better search?

Include patents?

Include blogs?

Encourage tagging and then exploit it!

Social network from tags

Exploiting tagging

Exploiting tagging

Exploiting tagging

Example: Employee desktop now and then Current employee desktop: Many generalized tools Integration via cut & paste Business process are ad hoc Success depends on personal experience and network Limited mobility and client access Future employee desktop: Simple, hosted tools Integrated by Activities and feeds Business process visible and reused Success depends on community All components mobile and accessible

Current employee desktop:

Many generalized tools

Integration via cut & paste

Business process are ad hoc

Success depends on personal experience and network

Limited mobility and client access

Future employee desktop:

Simple, hosted tools

Integrated by Activities and feeds

Business process visible and reused

Success depends on community

All components mobile and accessible

Detail: Employee desktop elements Client dashboard Custom assembled for client by the employee Allows extranet access Is a Situational Application Mobility All Workplace components accessible at any time Catalog Desktop widget Task specific ‘mash-ups’ sharing Activities Task oriented view Shared and refined by everyone – all with tags, ratings, reputations and recognition

Client dashboard

Custom assembled for client by the employee

Allows extranet access

Is a Situational Application

Mobility

All Workplace components accessible at any time

Catalog

Desktop widget

Task specific ‘mash-ups’ sharing

Activities

Task oriented view

Shared and refined by everyone – all with tags, ratings, reputations and recognition

Inhibitors Critical issues are: Opening enterprise data for reuse Creating web 2.0 component examples Creating lightweight infrastructures: Catalogs Federated and more secure identity (Higgins) Enterprise TR 3 (tagging, rating, reputation and recognition) Massive, reliable and inexpensive data stores Giving permission to employees “ User acceptance is our measure of success”

Critical issues are:

Opening enterprise data for reuse

Creating web 2.0 component examples

Creating lightweight infrastructures:

Catalogs

Federated and more secure identity (Higgins)

Enterprise TR 3 (tagging, rating, reputation and recognition)

Massive, reliable and inexpensive data stores

Giving permission to employees

2003 2004 2005 2006 2007 2008 2009 2010 Leading indicators TAP Early Adopter Membership (‘000s) 200 175 150 125 100 75 50 25 Unique tags created (cumulative 000’s) 70 60 50 40 30 20 10 Early adopter program and component catalogs Enterprise tagging server Collaborative innovation environment ValuesJam : employees co-create IBM corporate values Dynamic workplace Open security Business Process visualizations on desktop Very low cost storage Web identity and reputation

… or with a billion-person workforce?