IT	  Everywhere	  Professor	  N.	  Venkat	  Venkatraman	   David	  J.	  McGrath	  Jr.	  Professor	  of	  Management	      ...
Imagine	  life	  without	  informaMon	  technology……	  (c)	  N.	  Venkatraman	  [2011]	                        2	  
IT	  Everywhere	     Illustrative	  Cases	  and	  Concepts	     What	  does	  it	  mean	  for	  IBM	     (and	  your	  cli...
Role	  of	  IT	  Till	  Recently…	                                           Business	        IT	                         ...
Let	  Us	  Look	  Back	  at	  1995	                                                  1,940,000,000    5,000,000,000(c)	  N...
The	  World	  Wide	  Web	  in	  1995	  (c)	  N.	  Venkatraman	  [2011]	                6	  
State-­‐of-­‐the-­‐Internet	  2010…	  (c)	  N.	  Venkatraman	  [2011]	                   7	  
8	  
There’s	  the	  social	  web..	  (Facebook)	              • 600(+)	  million	  active	  users	              • 70%	  outsid...
And	  there’s	  the	  media	  web..	  (YouTube)	                             2	  billion	  views	  per	  day	             ...
And..	  there’s	  the	  real-­‐Mme	  web	  (Twiber)	  (c)	  N.	  Venkatraman	  [2011]	                                  11...
Tweets	  seem	  to	  be	  purpose-­‐driven	                                                                   Link	  (c)	 ...
There	  are	  other	  trends	  to	  track..	  (c)	  N.	  Venkatraman	  [2011]	                               13	  
From	  1995	  Mll	  today..	            •  Developments	  in	  informaMon	  technology	  have	               been	  dramaM...
2010	  Onwards..	  The	  Decade	  of	  Smart	  (c)	  N.	  Venkatraman	  [2011]	                                15	  
IT	  Everywhere	  in	  2015:	            Your	  Ideas	  and	  Insights	                                                   ...
The	  future	  with	  IT…	  (c)	  N.	  Venkatraman	  [2011]	           17	  
A	  Simple	  Everyday	  Example	  (c)	  N.	  Venkatraman	  [2011]	                 18	  
InformaMon	  technology	  is	  impacMng	  design	              and	  features	  of	  products..	  (c)	  N.	  Venkatraman	 ...
Nike	  +	  Apple	  :	  A	  ‘Sports	  Ecosystem’	  (c)	  N.	  Venkatraman	  [2011]	                                    21	  
We	  conMnue	  to	  connect	  many	  different	              products	  to	  the	  network	                                ...
But	  complementary	  business	  systems	  have	              not	  yet	  evolved	  in	  many	  cases..	  	               ...
Even	  today....	  (c)	  N.	  Venkatraman	  [2011]	     24	  
InformaMon	  technology	  and	  the	  design	  of	              business	  process	  systems..	  (c)	  N.	  Venkatraman	  ...
FedEx	  SenseAware	  (c)	  N.	  Venkatraman	  [2011]	     26	  
John	  Deere	  &	  Precision	  Agriculture	  (c)	  N.	  Venkatraman	  [2011]	                             27	  
Smart	  Processes	  are	  becoming	  more	              common	  in	  many	  industry	  sectors.	  	                      ...
InformaMon	  technology	  ushering	  next	              generaMon	  of	  services	  	  (c)	  N.	  Venkatraman	  [2011]	   ...
Even	  in	  ciMes..	  (Boston)	  (c)	  N.	  Venkatraman	  [2011]	                30	  
Facebook	  Pages	  and	  Service	  Delivery	  (c)	  N.	  Venkatraman	  [2011]	                              31	  
Services	  delivered	  through	  new	  devices	  (c)	  N.	  Venkatraman	  [2011]	                                 32	  
…	  with	  new	  ways	  of	  interacMons	  (c)	  N.	  Venkatraman	  [2011]	                            33	  
Services	  delivered	  through	  network	                                                            Next-­‐              ...
The	  new	  digital	  business	  plamorm	                                           Transact                              ...
Let	  us	  introduce	  three	  technology	  laws	                                           Bandwidth	  Law	              ...
And	  look	  at	  them	  together..	                                                   Moore’s	  Law	       “Computer”	   ...
Role	  of	  IT	  in	  the	  Future…	                                                         global business              ...
In	  IBM’s	  parlance…..	                                                            Intelligent	                         ...
Smarter	  Systems	  Rely	  on	  Data	  &	  Insights	                          Data	           Information	     Knowledge	 ...
IT	  Everywhere…	  Towards	  Ubiquity	  	                                                           Business	       Consum...
IT	  Everywhere	      Illustrative	  Cases	  and	      Concepts	      What	  does	  it	  mean	  for	  IBM	      (and	  you...
Serng	  1:	  	              Dynamics	  of	  IT	  Sector	                                                                  ...
Computer	  industry	  [circa	  1980]	                                           Source:	  Bill	  Gates	  TesMmony	  	  (c)...
Computer	  Business	  System	  	              [circa	  2002]	  (c)	  N.	  Venkatraman	  [2011]	     Source: Bill Gates Tes...
Two	  Key	  Ideas…	                                           VerMcal	  integraMon	  giving	  way	  to	  virtual	         ...
Two	  Key	  Ideas…	                                           Winning	  requires	  dominaMng	  a	  layer	  and	           ...
Wealth	  CreaMon	  and	  DestrucMon	  Across	              Cycles	  of	  Business	  Systems	  in	  CompuMng	  	           ...
We	  are	  in	  the	  early	  days	  of	  mobile	  internet	  (c)	  N.	  Venkatraman	  [2011]	                            ...
We	  are	  in	  the	  early	  days	  of	  mobile	  internet	  (c)	  N.	  Venkatraman	  [2011]	                            ...
Emerging	  Trends	  in	  the	  I/T	  Sector…..	                    So Lo Mo                    	   	   	  (c)	  N.	  Venka...
 IT	  Industry	  Today….	  (c)	  N.	  Venkatraman	  [2011]	            52	  
 IT	  Industry	  Today….	                                                          Products	                              ...
Serng	  2:	  AutomoMve	  (c)	  N.	  Venkatraman	  [2011]	       54	  
Automobile–	  “computers	  on	  wheels”	                                                                         ‘Black Bo...
Automobiles–	  “computers	  on	  wheels”	                                               “Cost	  of	  electronics	         ...
GM	  OnStar	  (c)	  N.	  Venkatraman	  [2011]	     57	  
Real-­‐Mme	  InteracMons	  for	  Safety	  and	              Convenience	                                           • 2,600...
Ford	  (and	  Microsod):	  Sync	                                                       In-Car WiFi                        ...
My	  Ford	  Touch	  @	  CES	  2010	  (c)	  N.	  Venkatraman	  [2011]	                      60	  
Ford	  Sync	  in	  2011	  (c)	  N.	  Venkatraman	  [2011]	         61	  
Mobile	  Apps	  linked	  to	  Automobiles	  (c)	  N.	  Venkatraman	  [2011]	                            62	  
Business	  systems	  forming	  around	              compeMng	  IT	  architectures	                                        ...
“Apps”	  bring	  mobile	  devices	  into	  the	              automobile	  network	  (c)	  N.	  Venkatraman	  [2011]	      ...
Emerging	  Automobile	  Business	  System?	                                                                Social	  Networ...
Two	  Key	  Ideas…	                                           Who	  is	  architecMng	  the	  emerging	                    ...
Two	  Key	  Ideas…	                                           Winning	  requires	  dominaMng	  a	  layer	                 ...
Towards	  Intelligent	  vehicle	  and	  Smart	              traffic…..	  (c)	  N.	  Venkatraman	  [2011]	                   ...
Other	  IT-­‐influenced	  business	  systems…	              •         Healthcare	  and	  wellness	              •         E...
IT	  Everywhere	      Illustrative	  Cases	  and	  Concepts	      What	  does	  it	  mean	  for	  IBM	      (and	  your	  ...
Role	  of	  IT	  in	  Your	  Client	  Serng	                                                    global business           ...
Managing	  IT	  Everywhere:	  	              Co-­‐creaMon	  of	  Value	  with	  Your	  Clients	                           ...
In	  closing……	                                           “The	  difficulty	  lies	                                         ...
IT	  Everywhere	  
Information Technology Everywhere
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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?

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Information Technology Everywhere

  1. 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. 2. Imagine  life  without  informaMon  technology……  (c)  N.  Venkatraman  [2011]   2  
  3. 3. IT  Everywhere   Illustrative  Cases  and  Concepts   What  does  it  mean  for  IBM   (and  your  clients)?  Discussions   3  
  4. 4. Role  of  IT  Till  Recently…   Business   IT   Strategy   Strategy  (c)  N.  Venkatraman  [2011]   4  
  5. 5. Let  Us  Look  Back  at  1995   1,940,000,000 5,000,000,000(c)  N.  Venkatraman  [2011]   5  
  6. 6. The  World  Wide  Web  in  1995  (c)  N.  Venkatraman  [2011]   6  
  7. 7. State-­‐of-­‐the-­‐Internet  2010…  (c)  N.  Venkatraman  [2011]   7  
  8. 8. 8  
  9. 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. 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. 11. And..  there’s  the  real-­‐Mme  web  (Twiber)  (c)  N.  Venkatraman  [2011]   11  
  12. 12. Tweets  seem  to  be  purpose-­‐driven   Link  (c)  N.  Venkatraman  [2011]   12  
  13. 13. There  are  other  trends  to  track..  (c)  N.  Venkatraman  [2011]   13  
  14. 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. 15. 2010  Onwards..  The  Decade  of  Smart  (c)  N.  Venkatraman  [2011]   15  
  16. 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. 17. The  future  with  IT…  (c)  N.  Venkatraman  [2011]   17  
  18. 18. A  Simple  Everyday  Example  (c)  N.  Venkatraman  [2011]   18  
  19. 19. InformaMon  technology  is  impacMng  design   and  features  of  products..  (c)  N.  Venkatraman  [2011]   19  
  20. 20. Nike  +  Apple  :  A  ‘Sports  Ecosystem’  (c)  N.  Venkatraman  [2011]   21  
  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. 22. But  complementary  business  systems  have   not  yet  evolved  in  many  cases..     1999(c)  N.  Venkatraman  [2011]   23  
  23. 23. Even  today....  (c)  N.  Venkatraman  [2011]   24  
  24. 24. InformaMon  technology  and  the  design  of   business  process  systems..  (c)  N.  Venkatraman  [2011]   25  
  25. 25. FedEx  SenseAware  (c)  N.  Venkatraman  [2011]   26  
  26. 26. John  Deere  &  Precision  Agriculture  (c)  N.  Venkatraman  [2011]   27  
  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. 28. InformaMon  technology  ushering  next   generaMon  of  services    (c)  N.  Venkatraman  [2011]   29  
  29. 29. Even  in  ciMes..  (Boston)  (c)  N.  Venkatraman  [2011]   30  
  30. 30. Facebook  Pages  and  Service  Delivery  (c)  N.  Venkatraman  [2011]   31  
  31. 31. Services  delivered  through  new  devices  (c)  N.  Venkatraman  [2011]   32  
  32. 32. …  with  new  ways  of  interacMons  (c)  N.  Venkatraman  [2011]   33  
  33. 33. Services  delivered  through  network   Next-­‐ generaMon   Service   services   Delivery  (c)  N.  Venkatraman  [2011]   34  
  34. 34. The  new  digital  business  plamorm   Transact Innovate Live Learn Play Work Connect Consume(c)  N.  Venkatraman  [2011]   35  
  35. 35. Let  us  introduce  three  technology  laws   Bandwidth  Law   Metcalfe’s  Law   Moore’s  Law  (c)  N.  Venkatraman  [2011]   36  
  36. 36. And  look  at  them  together..   Moore’s  Law   “Computer”   Bandwidth   Metcalfe’s   “ConnecFvity”   “Cloud”   Law   Law  (c)  N.  Venkatraman  [2011]   37  
  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. 38. In  IBM’s  parlance…..   Intelligent   Intercon nect   Instrument  (c)  N.  Venkatraman  [2011]   39  
  39. 39. Smarter  Systems  Rely  on  Data  &  Insights   Data   Information   Knowledge   Action   Results  (c)  N.  Venkatraman  [2011]   40  
  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. 41. IT  Everywhere   Illustrative  Cases  and   Concepts   What  does  it  mean  for  IBM   (and  your  clients)?  Discussions   42  
  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. 43. Computer  industry  [circa  1980]   Source:  Bill  Gates  TesMmony    (c)  N.  Venkatraman  [2011]   44   Source: Bill Gates Testimony
  44. 44. Computer  Business  System     [circa  2002]  (c)  N.  Venkatraman  [2011]   Source: Bill Gates Testimony 45  
  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. 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. 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. 48. We  are  in  the  early  days  of  mobile  internet  (c)  N.  Venkatraman  [2011]   49  
  49. 49. We  are  in  the  early  days  of  mobile  internet  (c)  N.  Venkatraman  [2011]   50  
  50. 50. Emerging  Trends  in  the  I/T  Sector…..   So Lo Mo      (c)  N.  Venkatraman  [2011]   Source: John Doerr, Kleiner Perkins 51  
  51. 51.  IT  Industry  Today….  (c)  N.  Venkatraman  [2011]   52  
  52. 52.  IT  Industry  Today….   Products   SoluMons   Plamorms   Services  (c)  N.  Venkatraman  [2011]   53  
  53. 53. Serng  2:  AutomoMve  (c)  N.  Venkatraman  [2011]   54  
  54. 54. Automobile–  “computers  on  wheels”   ‘Black Box’ How  many  lines  of  sodware  code?  (c)  N.  Venkatraman  [2011]   55  
  55. 55. Automobiles–  “computers  on  wheels”   “Cost  of  electronics   in  cars”    (~20-­‐50%)  (c)  N.  Venkatraman  [2011]   56  
  56. 56. GM  OnStar  (c)  N.  Venkatraman  [2011]   57  
  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. 58. Ford  (and  Microsod):  Sync   In-Car WiFi (2010)(c)  N.  Venkatraman  [2011]   59  
  59. 59. My  Ford  Touch  @  CES  2010  (c)  N.  Venkatraman  [2011]   60  
  60. 60. Ford  Sync  in  2011  (c)  N.  Venkatraman  [2011]   61  
  61. 61. Mobile  Apps  linked  to  Automobiles  (c)  N.  Venkatraman  [2011]   62  
  62. 62. Business  systems  forming  around   compeMng  IT  architectures   “Apps”   “Apps”   “Apps”   “Apps”   “Apps”   “Apps”   “Apps”  (c)  N.  Venkatraman  [2011]   63  
  63. 63. “Apps”  bring  mobile  devices  into  the   automobile  network  (c)  N.  Venkatraman  [2011]   64  
  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. 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. 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. 67. Towards  Intelligent  vehicle  and  Smart   traffic…..  (c)  N.  Venkatraman  [2011]   68  
  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. 69. IT  Everywhere   Illustrative  Cases  and  Concepts   What  does  it  mean  for  IBM   (and  your  clients)?  Discussions   70  
  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. 71. Managing  IT  Everywhere:     Co-­‐creaMon  of  Value  with  Your  Clients   Innovation   Your   IBM   Client   Implementation  (c)  N.  Venkatraman  [2011]   72  
  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. 73. IT  Everywhere  

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