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The Future of Enterprise IT2010 – 2020From Systems of Record toSystems of Engagement  © 2011, TCG Advisors LLCFebruary 19, 2011
Agenda IT Today Enterprise IT: Systems of Record Consumer IT: Systems of Engagement The Consumerization of Enterprise IT Evolution or Revolution? The Forcing Function Enterprise Systems of Engagement What Will Change Impact on IT Organizations Next Steps © 2011, TCG Advisors LLCFebruary 19, 2011
Enterprise IT: The Current StateSystems of Record are Largely Complete Transaction systems for global commerce . . .  Financials, Order Processing, Inventory, HR, CRM, Supply Chain . . . Mainframes, minis, client-server, PC, Internet-enabled, SaaS Drove three decades of investment Data centers everywhere OLTP and Business Intelligence were the key drivers Network seen as a transport mechanism only Y2K put the capstone on this trend Pulled forward a half decade of investment Enterprise IT has had to go through a long “digestive” period Focus in past decade has been on efficiency investments  © 2011, TCG Advisors LLCFebruary 19, 2011
IT Innovation: For the Past Decade Consumer  IT On Fire Enterprise IT On Hold  © 2011, TCG Advisors LLCFebruary 19, 2011
Redefining IT for ConsumersThe Digitization of Human Culture Access Infinite content, no barriers to entry, no barriers to exit Communications are any-to-many-to-one Social networks, blogs, Skype, Twitter Broadband Pictures and video are the killer apps Newspapers and magazines are toast TV and radio are being reengineered even as we speak Mobile PC for the emerging markets iPhone sets the bar in mature markets Texting, camera, location-based services What does this mean for the enterprise? © 2011, TCG Advisors LLCFebruary 19, 2011
The Millennial’s Lament How can it be I am so powerful as a consumer And so LAMEas an employee!!?? How disruptive do you think Consumer IT will be to Enterprise IT?  © 2011, TCG Advisors LLCFebruary 19, 2011
The Future of Enterprise IT: An Evolution in Infrastructure Platform as a Service Composite Apps in the Cloud Software as a Service Enterprise Apps over the Internet Infrastructure as a Service Managed Hosting Virtualized Data Centers Servers, Storage, and Networks We’re doing this today  © 2011, TCG Advisors LLCFebruary 19, 2011
The Future of Enterprise IT: A Revolution in Applications Video on Demand YouTube, Skype, Facetime Instant Orientation GPS, Google Maps, Navigation Instant Communication SMS, Facebook, Twitter Info on Demand Google, Bing, Yelp, Wikipedia We’re not even close to doing this  © 2011, TCG Advisors LLCFebruary 19, 2011
The Future of IT:  Evolution or Revolution? Evolution in Infrastructure Focuses on Systems of Record Continuation of current trends Not fundamentally disruptive ,[object Object]
Focuses on Systems of Engagement
Totally new end user experience
Radically discontinuous with current infrastructure & policiesWhat will force enterprise IT to invest in systems of engagement?  © 2011, TCG Advisors LLCFebruary 19, 2011
Global Business DynamicsWill Drive the Enterprise IT Revolution  © 2011, TCG Advisors LLCFebruary 19, 2011 Globalization Outsourcing Commoditization The World Gets Flatter Every Day Differentiation Divestiture Specialization
The World is Flat:The Rise of Collaborative Business Networks Structure of business has changed OLD: Hierarchically organized integrated enterprises NEW: Business networks of specialized enterprises Business networks increase demand for Communication – Coordination - Collaboration Relationship management and trouble shooting Challenge:  To engage with peers globally to solve problems Answers are not in Systems of Record They are in other people’s (and often other companies’) heads  © 2011, TCG Advisors LLCFebruary 19, 2011
The World is Flat:The Rise of Collaborative Business Networks Burden falls on the middle of the organization Not front-line workers engaged in transactional workflows Not top executives engaged in strategic issues Need to invest in “IT for the middle tier” In-the-moment empowerment through Systems of Engagement Broad and easy access to Systems of Record on demand Systems of Engagement have four design principles:  Global – Mobile– Social– Virtual   © 2011, TCG Advisors LLCFebruary 19, 2011 “Let your people go!”
Enterprise Systems of Engagement © 2011, TCG Advisors LLCFebruary 19, 2011 Who knows energy and speaks Chinese? Can you do a demo for the field? ,[object Object]
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Geoffrey Moore - The Future of Enterprise IT

  • 1. The Future of Enterprise IT2010 – 2020From Systems of Record toSystems of Engagement © 2011, TCG Advisors LLCFebruary 19, 2011
  • 2. Agenda IT Today Enterprise IT: Systems of Record Consumer IT: Systems of Engagement The Consumerization of Enterprise IT Evolution or Revolution? The Forcing Function Enterprise Systems of Engagement What Will Change Impact on IT Organizations Next Steps © 2011, TCG Advisors LLCFebruary 19, 2011
  • 3. Enterprise IT: The Current StateSystems of Record are Largely Complete Transaction systems for global commerce . . . Financials, Order Processing, Inventory, HR, CRM, Supply Chain . . . Mainframes, minis, client-server, PC, Internet-enabled, SaaS Drove three decades of investment Data centers everywhere OLTP and Business Intelligence were the key drivers Network seen as a transport mechanism only Y2K put the capstone on this trend Pulled forward a half decade of investment Enterprise IT has had to go through a long “digestive” period Focus in past decade has been on efficiency investments © 2011, TCG Advisors LLCFebruary 19, 2011
  • 4. IT Innovation: For the Past Decade Consumer IT On Fire Enterprise IT On Hold © 2011, TCG Advisors LLCFebruary 19, 2011
  • 5. Redefining IT for ConsumersThe Digitization of Human Culture Access Infinite content, no barriers to entry, no barriers to exit Communications are any-to-many-to-one Social networks, blogs, Skype, Twitter Broadband Pictures and video are the killer apps Newspapers and magazines are toast TV and radio are being reengineered even as we speak Mobile PC for the emerging markets iPhone sets the bar in mature markets Texting, camera, location-based services What does this mean for the enterprise? © 2011, TCG Advisors LLCFebruary 19, 2011
  • 6. The Millennial’s Lament How can it be I am so powerful as a consumer And so LAMEas an employee!!?? How disruptive do you think Consumer IT will be to Enterprise IT? © 2011, TCG Advisors LLCFebruary 19, 2011
  • 7. The Future of Enterprise IT: An Evolution in Infrastructure Platform as a Service Composite Apps in the Cloud Software as a Service Enterprise Apps over the Internet Infrastructure as a Service Managed Hosting Virtualized Data Centers Servers, Storage, and Networks We’re doing this today © 2011, TCG Advisors LLCFebruary 19, 2011
  • 8. The Future of Enterprise IT: A Revolution in Applications Video on Demand YouTube, Skype, Facetime Instant Orientation GPS, Google Maps, Navigation Instant Communication SMS, Facebook, Twitter Info on Demand Google, Bing, Yelp, Wikipedia We’re not even close to doing this © 2011, TCG Advisors LLCFebruary 19, 2011
  • 9.
  • 10. Focuses on Systems of Engagement
  • 11. Totally new end user experience
  • 12. Radically discontinuous with current infrastructure & policiesWhat will force enterprise IT to invest in systems of engagement? © 2011, TCG Advisors LLCFebruary 19, 2011
  • 13. Global Business DynamicsWill Drive the Enterprise IT Revolution © 2011, TCG Advisors LLCFebruary 19, 2011 Globalization Outsourcing Commoditization The World Gets Flatter Every Day Differentiation Divestiture Specialization
  • 14. The World is Flat:The Rise of Collaborative Business Networks Structure of business has changed OLD: Hierarchically organized integrated enterprises NEW: Business networks of specialized enterprises Business networks increase demand for Communication – Coordination - Collaboration Relationship management and trouble shooting Challenge: To engage with peers globally to solve problems Answers are not in Systems of Record They are in other people’s (and often other companies’) heads © 2011, TCG Advisors LLCFebruary 19, 2011
  • 15. The World is Flat:The Rise of Collaborative Business Networks Burden falls on the middle of the organization Not front-line workers engaged in transactional workflows Not top executives engaged in strategic issues Need to invest in “IT for the middle tier” In-the-moment empowerment through Systems of Engagement Broad and easy access to Systems of Record on demand Systems of Engagement have four design principles: Global – Mobile– Social– Virtual © 2011, TCG Advisors LLCFebruary 19, 2011 “Let your people go!”
  • 16.
  • 23. Mobile access to everything
  • 25. With more revolutionary applications to come . . . . Who is the VP Operations in Client X? Let’s make sure everyone fills out the budget the same way! How is the quarter coming? Let’s get everyone together now! I need to talk to Harry—where is he? Let’s look at the data and get Charlie to walk us thru it What got decided at the last project meeting?
  • 26. The Role of Analytical AppsInfo: On Demand, In the Moment, On the Go Trade Promotion Effectiveness Health Care Quality Management On-Shelf Availability insight Rapid Readiness Assessment for Defense Sales Analysis for Retail IP Rights Analysis Upstream Operations Performance Analysis Program Manager’s Cockpit Multi-Channel Analysis for Retail © 2011, TCG Advisors LLCFebruary 19, 2011 Engagement requires an underlying fact base
  • 27.
  • 30. Less scrap and rework
  • 31. Higher yieldsDealing with Darwin © 2006, TCG Advisors LLCFebruary 19, 2011 All the classic process metrics, except the processes no longer report to you
  • 32. Systems of Record & Systems of Engagement Systems of Record create efficiency Impossible to do global commerce without them Focus on cost, quality, and contractual commitments Systems of Engagement create effectiveness Address the complexities of global business relationships Create compelling consumer interactions on line Correct architecture SOEs operating on top of and in touch with SORs This is where the evolution in infrastructure comes in © 2011, TCG Advisors LLCFebruary 19, 2011
  • 33. Implications for IT Organizations Systems of Record Systems of Engagement Command & Control Collaborative Transaction-oriented Interaction-oriented Data-centric User-experience-centric User learns system System learns user Safe & secure Cool & groovy We don’t do groovy very well How do you suggest we start? © 2011, TCG Advisors LLCFebruary 19, 2011
  • 34. For Systems of Engagement, Focus on Moments of Engagement Every strategy is made or broken during a handful of moments of engagement—what are yours? Who represents your enterprise in these moments, and what have you done to empower them specifically? What Systems of Engagement would make them more powerful, and how quickly can you get them into their hands? What a difference a day makes! © 2011, TCG Advisors LLCFebruary 19, 2011
  • 35. Recap IT Today Systems of Record: Our interstate highway system Systems of Engagement: The next frontier The Consumerization of Enterprise IT Evolution at the systems layer Revolution at the applications layer Enterprise Systems of Engagement Communicate – Coordinate – Collaborate Global – Mobile – Social – Virtual Early wins from moments of engagement © 2011, TCG Advisors LLCFebruary 19, 2011
  • 36. © 2011, TCG Advisors LLCFebruary 19, 2011