IT in the New Experience Economy

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2012 marks the beginning of a new economic paradigm: experience is the king and IT is the enabler. Finally IT gets to play in the right side of the brain sandbox. Good for us .

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IT in the New Experience Economy

  1. 1. IT in theNew Experience Economy IT in the New Experience Economy Dr. Jimmy Schwarzkopf
  2. 2. IT Services 1970-2010: 2011- : verbal; sequential and Unstructured approach to tasks; logical structured thinking; multitasking ; visual analyzing and controlling emotional responses; processes; social beings logical beings IT Clients: IT Clients: • Sales • Finance • Marketing • Logistics • Consumer • HR • Transactional core 2
  3. 3. Today’s presentation: deals mostly with the right brain 3
  4. 4. Did we see this coming ? What will happen next ? 4
  5. 5. Did we see this coming ? What will happen next ? 5
  6. 6. Example of what can happen…… if you behave like an ostrich….. 6
  7. 7. Example of what can happen…… if you behave like an ostrich….. 7
  8. 8. Example of what can happen…… if you behave like an ostrich….. 8
  9. 9. Re-invent ourselves or else … “BLUE OCEAN” 9
  10. 10. Re-invent ourselves or else … “BLUE OCEAN” 10
  11. 11. Red Ocean Strategy Blue Ocean Strategy
  12. 12. WICKED problems : DESIGN THINKING Wicked problems 13
  13. 13. Design Thinking: all about creating experiences 14
  14. 14. Two point roadmap: create value and optimize costs Business demand for IT services Why so big? Innovate & more value Optimize & cut costs IT budget Time 15
  15. 15. “New Normal” Pressure to Optimize & Innovate FAST BUSINESS DEMAND FOR INNOVATION IT must fill this growing gap! IT CAPACITY FOR INNOVATION IT TRANSFORMS from: MAINTAINING TECHNOLOGY to: DELIVERING INNOVATION
  16. 16. -“Every man is guilty of all the good he didn’t do”- Voltaire 1770s idea idea idea idea Innovation 1 2 3 17
  17. 17. Technology Differentiation Fades….
  18. 18. Pre-requisites for every IT ChangeHuman Resource Business Process Empowerment Re-engineering Planning for Disasters
  19. 19. New economic playbox : Service Goods-Based Economy Economy The Experience Economy Agrarian Economy 20
  20. 20. Experience Economy > Age of the CustomerFrom 1900 to 1960, Age of Manufacturing , if you owned a factory,you owned the market.From 1960 to 2000, Age of Distribution, if you owned the distributionchannels, you owned the market.From 2000 to 2011, Age of Information, if you owned the information,you owned the market.From 2011, Age of the Customer, if you engage the customer, you ownthe market 21
  21. 21. “the NEW experience economy” 22
  22. 22. “the NEW experience economy” 23
  23. 23. Starbucks Frappuccino or not? Why not? 24
  24. 24. New IT client: Chief Marketing Officer (CMO) There are only 3 reasons why you choose to buy a product or a service : 1. Its the cheapest 2. Its unique 3. Youre sold on marketing!! 25
  25. 25. Customer Experience Management (CEM) The lifetime value of a customer has changed, combination of transactional value and social value• Customers interact: • pre-sale (marketing) • during the sale (transaction) • after the sale (service)• Customers want to interact wherever and however they want: • call centers, stores , face-to-face, mobile , social [networks], kiosks and games• CEM refers to the notion of improving a customers experience wherever they may be through all possible channels 26
  26. 26. Technology will shape who we are and our “new economy” a new economy that’s vast, automatic, and invisiblethereby bringing the biggest change since the Industrial Revolution 27
  27. 27. Rules 1994: the web Rules 2012: the social web 28
  28. 28. What is happening to the diffusion of IT technologies? 29
  29. 29. The Consumerization of IT:Real Companies and The Next Generation of Business 30
  30. 30. The Consumerization of IT:Real Companies and The Next Generation of Business 31
  31. 31. Things my grandson taught me:• Touch screens change the way we see the worldHe assumes that any screen is a touch screenHe prefers to navigate surfaces to retrieve information instead of divinginto nested structures.• Voice InterfaceDevices should understand us, and pull up some good animal videoswhen we ask.• Linear TV is deadTV is about watching what they want, when they want• Games are socialSharing playing experience• The alive web will be huge:You call people to share an experience,Turntable.fmGoogle’s HangoutsMeetingBurner 32
  32. 32. Things my grandson taught me:• Touch screens change the way we see the worldHe assumes that any screen is a touch screenHe prefers to navigate surfaces to retrieve information instead of divinginto nested structures.• Voice InterfaceDevices should understand us, and pull up some good animal videoswhen we ask.• Linear TV is deadTV is about watching what they want, when they want• Games are socialSharing playing experience• The alive web will be huge:You call people to share an experience,Turntable.fmGoogle’s HangoutsMeetingBurner 33
  33. 33. When will we have usable “Industrial Information” Machines ? It takes time not only for people to adopt technologies into their daily routines but also for technologists to figure out how to make things USABLE (experience) 33 years understand users: how they want to drive The Austin 7 was produced from 1922 through to 1939The Karl Benz Patent Motorwagen 1885,. by the Austin Motor Company. 34
  34. 34. The rule: +/-30 years Specs aren’t important, the sum is more than the whole of their parts. Specs are tactical decisions in order to execute a larger strategy. What is ultimately important is the experience. 35
  35. 35. The rule: +/-30 years Specs aren’t important, the sum is more than the whole of their parts. Specs are tactical decisions in order to execute a larger strategy. What is ultimately important is the experience. 36
  36. 36. UX Revolution (experience) – Touch / Sound(Voice) / Move Era 37
  37. 37. 2012: Sound/Voice is in 38
  38. 38. 2012: Face recognition is in 39
  39. 39. Content, not hardware, has made tablets the current king storage increase X2 every 12 months Increase in power, storage and network capacity per dollar Processor power increase X2 every 18 months Networks increase slowly 3G > 4G TIME 40
  40. 40. Content, not hardware, has made tablets the current king storage increase X2 Why waste all that every 12 months Increase in power, storage and network capacity per dollar power and storage? Only so it is easier for IT ? Processor power increase X2 every 18 months Networks increase slowly 3G > 4G TIME 41
  41. 41. less to do with the worker and more to do with changes in the way that people work Client/Server V2 1. Most work on/off line Terminals V 2 2. Most of the time connected WEB/Browser client 3. Uses cloud/local applications 4. Move from APP to SERVICE 2 types of applications: 1. Off-line: processing and storage local (not apps) 2. Always connected: Client/Server V1 browser based applications 2 types of applications: 1. Off-line: processing and storage local Terminals V1 2. Always connected : data moves; Always connected processing@server; GUI@client I/O only at the local ADVANCES/COST 1. Communications/networking 2. Processor/storage 3. Power /battery 42
  42. 42. So……… what do you do? 43
  43. 43. Prof. Clayton Christensen: Disruptive Innovation Model T1 T2 44
  44. 44. Prof. Clayton Christensen: Disruptive Innovation Model T1 T2 45
  45. 45. Prof. Clayton Christensen: Disruptive Innovation ModelOS X and Windows 8 work only on devices with Intels x86/64- CPUsiOS, Android and Windows RT work only on devices with ARM-CPUsApple informed Intel that it better drastically slash its power consumption or wouldlikely lose Apple’s business. “It was a real wake-up call to us,” Intel said. Medfield T1 T2 46
  46. 46. A little history……… I want a choice 47
  47. 47. What the Market thinks… 48
  48. 48. What the Market thinks… 49
  49. 49. Israel (expected end 2012): Wintel: Q42011 compared to Q42010 Desktop PCs: -25% Notebooks: -35% 50
  50. 50. What about Productivity Software (office)? Office 15 ARM/Intel iOS6, Android, W8,MacOS 51
  51. 51. What about Productivity Software (office)? Office 15 ARM/Intel iOS6, Android, W8,MacOS 52
  52. 52. 53
  53. 53. Mobility v2: WORK is not a place you go, but a thing you do 54
  54. 54. Four screens of convergence: TV, PC, mobile devices and in-car• We want to be connected 24X7• Each of these screens is useful during our day and each is connected to the cloud• IT should allow us to use the same business (IT supports ALL) and entertainment applications 55
  55. 55. Can IT support all devices (at same time) ?• Employees will: • use as many computers and mobile devices as they wish • keep their data in sync with a backup copy for all devices• Solutions should be enterprise class : • Secure; reliable; maintainable • integrated to critical back-office systems 52% 3 or more 60% use for home/work 56
  56. 56. Desktop and Mobile ecosystems begin to converge “BYOD : bring your own device" employees asserting control over the technology they use for work 57
  57. 57. BYOD policy = Access policy 58
  58. 58. Policies: Access Strategy (IT)1. User-based access control: Who owns the device?2. Device-based access control: Trust the device?3. Location-based access control: Where is the device?
  59. 59. Access policy: need for Unified Communication technologies Instant Video Web E-mail and Audio Messaging Voice Mail Conferencing Telephony Conferencing Calendaring Conferencing Authentication Authentication Authentication Authentication Administration Administration Administration Administration Storage Storage Storage Storage Authentication Authentication Authentication Administration Administration Administration Storage Storage Storage
  60. 60. Access policy: need for Unified Communication technologies
  61. 61. Bring Your Own Device Architecture Personal Cloud Hybrid Application Software Apps Strategy Productivity Software: Office 15 Prod. Standard OS: iOS-Android-W8 Hwre: Intel -ARM Access Strategy Unified Communication 62
  62. 62. Summary: Consumerization . . . a tipping point IT User IT Consumer Dependent WORK STYLE Self-Service The Office LOCATION Anywhere M-F, 9-5 WORK HOURS 24/7 Flexibility Devices NEEDS Scalability IT USERS have matured to become IT CONSUMERS 63
  63. 63. The value of mobile is in the apps .. sorry service "specialized local services running in conjunction with cloud-based services (private/public) that mostly do A2P messaging in location aware devices processing to figure out thecontext and state of the user”- 64
  64. 64. For in context services we need: The 4 Ws 65
  65. 65. For in context services we need: 66
  66. 66. This is what a device knows about you……1. Activity based context: What are you doing?2. Social context: With whom are you?3. Spatial-Temporal context: Where are you? What time is it?4. Physiological context: Heart rate, movement, temperature5. Environmental context: In what environment are you?6. Mental context: How are you feeling?7. Virtual context: What is happening with you in the virtual space?8. Me context: Who are you? 67
  67. 67. “CONTEXT”: definitions Context enables the services that make sense right at the point where an action takes place. Context allows organizations to shift their focus from insight: • to actionable insight • to insight at the point of action 68
  68. 68. “CONTEXT”: definitions Context enables the services that make sense right at the point where an action takes place. Context allows organizations to shift their focus from insight: • to actionable insight • to insight at the point of action 69
  69. 69. 2013 : context-sensitive A2P service What do I recommend? Provide Mobile Coupon & Payment 70
  70. 70. 2013 : context-sensitive A2P service What do I recommend? Provide Mobile Coupon & Payment 71
  71. 71. E-bizz everywhere but differently: now A2P based1. Mobile:2. “FRIENDS” Pricing:3. Video Commerce:4. Search :5. Social Business:The real change comes from:--”APPLICATION-TO-PERSON (A2P)MESSAGING – messages You want to buybetween a user and anautomated You want to chooseapplication”-- 72
  72. 72. A2P messaging – messages between a user and an automated application CONTEXT 73
  73. 73. A2P messaging – messages between a user and an automated application 74
  74. 74. how to influence in-store, online and mobile shopping ?SHOPKICK automatically recognizes when someone walks into a store.“kickbucks” to the user for:walking into a retail storetrying on clothesscanning a barcodeother actions“kickbucks” redeemed across all partner stores forgift card rewardsFacebook creditsspecial discountsSHOPKICK expects to pass 1 billion product views this year 75
  75. 75. Example of new payment technologies: 76
  76. 76. Amazon as the “ultimate” in context “social store” 77
  77. 77. “follow us on Facebook” has replaced the website, what will be next? • people will have a simple payment credential attached to their account • with one click they will be able to complete a transaction • Facebook credits and payments could be the airline miles of the next decade • consumers will be rewarded with Facebook Credits for brand loyalty 78
  78. 78. Conclusion: be prepared for the disruptions in classical IT 79

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