Information Technology And The Fashion Industry

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Information Technology And The Fashion Industry

  1. 1. NASSCOM India Leadership Forum February 8, 2007 Web 2.0 Fundamental or Fad? John Hagel, III [email_address] www. johnhagel.com
  2. 2. Information Technology And The Fashion Industry
  3. 3. Web 2.0 – The Hype Escalates Articles mentioning “Web 2.0” Jan-05 Mar-05 May-05 Jul-05 Sep-05 Nov-05 Jan-06 Mar-06 May-06 Jul-06 Sep-06 Nov-06 200 400 600 800 1000 1200 0
  4. 4. Web 2.0 What is it? Where’s the money? What’s required?
  5. 5. A Prominent Skeptic “ . . . Web 2.0 is of course a piece of jargon, nobody even knows what it means” Tim Berners – Lee, 2006
  6. 6. A Prominent Evangelist “ The network as platform” Tim O’Reilly, 2005
  7. 7. Another Prominent Evangelist “ Web 2.0 is people” Ross Mayfield, 2005
  8. 8. O’Reilly Again “ Web 2.0 is the business evolution in the computer industry caused by the move to the internet as platform. Chief among these rules is this: Build applications that harness network effects to get better the more people use them” Tim O’Reilly, 2006
  9. 9. Understandable Reaction “ There’s something happening here, what it is ain’t exactly clear ” Buffalo Springfield
  10. 10. Web 2.0 - My Definition “ An emerging network centric platform to support distributed, collaborative and cumulative creation by its users ”
  11. 11. The Contrast Presentation Participation Publication Conversation Aggregation of information Aggregation of people and functionality Consumption Creation Web 1.0 Web 2.0
  12. 12. Web 2.0 and SOA - Similarities <ul><li>Re-conceive software and data as services </li></ul><ul><li>View services as platforms </li></ul><ul><li>Support distributed and cumulative creation </li></ul><ul><li>Built upon foundation of XML </li></ul>
  13. 13. Web 2.0 and SOA – Cultural Chasm SOA evangelists Web 2.0 technologies are light-weight “toys” not suitable for “real work” Primary focus Connect people Primary focus Connect applications and databases Web 2.0 evangelists Will SOA’s ever do real work given “bloated” standards and time consumed in generating architectural blue prints?
  14. 14. Technology Evolution From Web 1.0 To Web 2.0 AJAX Information Functionality Emerging Network-Centric Platform For Distributed, Collaborative and Cumulative Creation by its Users Web 2.0 XML Isolation Connectivity Social Software (Wikis, tags, Video over IP, etc.) Individual Community RSS/OPML Surf Subscribe Application Creation People Connection
  15. 15. Web 2.0 What is it? Where’s the money? What’s required?
  16. 16. I.T. Performance Levers – Process vs. Practice Exception Exception Exception Exception
  17. 17. The Shadow Economy – Exception-Handling Exception Handling Percentage of Staff Time Source: IT Outsourcer Data 32% 68% Exception Handling Activities Routine Process Activities
  18. 18. Web 2.0 Tools <ul><li>Identify and locate appropriate experts </li></ul><ul><li>Create effective collaborative environments </li></ul><ul><li>Mobilize relevant resources and tools </li></ul><ul><li>Document exception handling incidents </li></ul><ul><li>Provide pattern recognition and analysis tools </li></ul>
  19. 19. Compelling Business Case <ul><li>Near-term cost savings – more efficient tacit collaboration </li></ul><ul><li>Longer-term innovation platform – pattern recognition </li></ul>
  20. 20. Li & Fung – Process Orchestration 10,000 suppliers 48 countries Retailing Distribution Centers Global Yarn Cutting Bangladesh Logistics Logistics Logistics Logistics Logistics Yarn Weaving Taiwan Yarn Sourcing Korea Yarn Dyeing Thailand Final Assembly Mexico Zippers Japan Quality Control
  21. 21. Implications For Next Generation Outsourcers/Orchestrators From Low cost provision of generic capacity <ul><li>Coordination of dispersed service providers and service consumers </li></ul><ul><li>Accelerated development and delivery of new I.T. based services </li></ul><ul><li>Enhanced visibility for service consumers </li></ul><ul><li>Continued reduction of operating inefficiencies </li></ul><ul><li>Development of more sophisticated SLA’s and performance measurement systems </li></ul>To Flexible configuration of capability
  22. 22. From In-Out To Out-In: Reverse Architectural Migration Enterprise Glass House Departments Enterprise Enterprise Enterprise Enterprise Enterprise Enterprise Enterprise Enterprise Work Group
  23. 23. Contrasting Architectures In-Out Out-In Control One control point Autonomous entities Resources Heterogeneous Heterogeneous squared Transactions Fine grained Short - lived Coarse grained Long - lived Outlook Optimistic Pessimistic
  24. 24. Next Wave of Enterprise IT Value Creation Unmet Business Needs <ul><li>Exception handling </li></ul><ul><li>Distributed process networks </li></ul><ul><li>Open innovation </li></ul><ul><li>Supply networks </li></ul><ul><li>Collaboration marketing </li></ul>New I.T. Architectures <ul><li>Combining SOA & Web 2.0 </li></ul><ul><li>Outside-In </li></ul><ul><li>Relational </li></ul>
  25. 25. Web 2.0 Web 2.0 What is it? Where’s the money? What’s required?
  26. 26. Decision – Making Focus Shifting CIO Veto Purchase Decisions Business Line Managers Enterprise Platforms Targeted Business/IT Initiatives CFO Risk Averse Risk Taking
  27. 27. What Decision Makers Want “ Big Bang” Visions and Projects <ul><li>Near – term </li></ul><ul><li>Targeted </li></ul><ul><li>Modest investment </li></ul>Pragmatic Performance Improvement No Regrets Micro - Sales Mega - Sales
  28. 28. The Sales Challenge Centralized, Easy To Target Decision-Makers Dispersed, Hard To Find Decision-Makers Technology Sale Horizontal Sale Qualify vs. Competition Relationship Selling Business Sale “Vertical” Sale Qualify Need Reference Selling
  29. 29. The Sales Opportunity <ul><li>Manage Risk </li></ul><ul><li>Support Architectural Migration </li></ul><ul><li>Help Develop Business Case </li></ul><ul><li>Help on Near-Term Business Needs </li></ul><ul><li>Manage Risk </li></ul><ul><li>Keep Informed on New Technologies </li></ul>CIO/IT Managers Business Line Managers
  30. 30. Fundamental or Fad? <ul><li>Near-term business impact? </li></ul><ul><li>Longer-term evolution potential? </li></ul>
  31. 31. NASSCOM India Leadership Forum February 8, 2007 Web 2.0 Fundamental or Fad? John Hagel, III [email_address] www. johnhagel.com

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