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Consumer habits changing ICT - Consumerization of IT

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Consumer habits changing ICT - Consumerization of IT

  1. 1. By Mark Mueller-Eberstein Mark Mueller-Eberstein CEO of Adgetec Corporation & Bestselling Author Twitter: @MarkMEberstein
  2. 2.  Technology is fundamentally changing the games and worlds we know – and its getting simpler to use  Consumers are early and broad adopters  People want to be productive and make positive impact and will use the tools that help them  Knowledge and the power to create knowledge quickly is the power of the future  Size doesn’t matter (much)  Speed and agility are increasing and essential
  3. 3. When the top executive buys an iPhone… and expects it to work at the office, home, away…
  4. 4. And are essential components of the marketing strategies
  5. 5. • company strategy is changing and processes improved through social media (75%) • combination of ideas and thoughts of geographically separated teams is easier (79%) • New ideas and innovation generated (71%) • Increase in productivity (76%) Productivity increase by 22% MillwardBrown, 2012
  6. 6.  When hundreds of organizations had a secure collaboration platform up and running within hours of the Haiti earthquake  How cellphones are…  …enabling the first banking in Haiti  … allowing people to detect counterfeit drugs in Africa  … connecting refugees throughout the globe  Wireless technology is also going to help in America to control healthcare costs (18 percent of U.S. spending) President Clinton at CITA 2012 Adgetec Confidential 9
  7. 7. Adgetec Confidential 12
  8. 8. A $ 10 billion company Adgetec Confidential 13
  9. 9.  Experienced and motivated team (52nd game)  Opportunity Aware  ―Good bye distribution channel‖…  ―Welcome global reach & social networking‖  Simplicity in execution and communication
  10. 10.  Total Customer focus—Fans are everything  Beyond Apple  Chrome, Facebook, Windows Phone, Nokia  100 Million as first target; past 140 Million in September 2011  Achieved their next goal: 1 Billion Fans  Second brand in preparation  Your market is what you define it to be  Mobile Game developer or Global Entertainment company?
  11. 11. 5. Don’t think big. Think HUGE! Company size doesn’t matter 4. Don’t let teams grow too big or bureaucratic 3. If you have a winning formula, don’t sell out early but build it HUGE 2. Be true to the brand; protect the brand at any cost 1. Work with your fans (customers). Daily. In all functions. On all levels.
  12. 12. More knowledge has been created in the last 5 years than in the 5,000 years of human history before. And its doubling every 5 years. The Reuters Guide to Good Information Strategy, 2000
  13. 13. Adgetec Confidential 18
  14. 14. Adgetec Confidential 19
  15. 15. Transistors 1,600,000,000 1,400,000,000 1,200,000,000 1,000,000,000 800,000,000 Transistors 600,000,000 400,000,000 200,000,000 0 1970 1972 1974 1978 1982 1984 1989 1993 1996 1999 2000 2003 2004 2007 Gordon E. Moore, Intel
  16. 16. Adgetec Confidential 21
  17. 17. ―Change is the law of life. And those who look only to the past or present are certain to miss the future.‖ John F. Kennedy (1917-63) 35th U.S. president
  18. 18.  Napster and iTunes for music…  App Store (and Bit torrent) for applications…  Amazon for content & computing capabilities  eBay, Taobao, etc. for ―things‖
  19. 19.  Traffic has exploded in last 10 years  Going to a store becomes time prohibitive  Purchases ―online‖ but… ◦ Directly from producer to consumer ◦ Distribution loses value ◦ Direct communication key  Tabao, Alibaba, Sina Weibo, …  What is your presence and strategy to engage?
  20. 20.  7 Billion people  1.4 Billion TVs  1 Billion PCs  5.3 Billion mobile phone devices for more than 3 Billion users  Fast adoption:  iPad sold 15 million units in first 7 months and 11 million in the last quarter alone  Android phones captured 40% of smartphone market in 12 months  iPad3 ‖new‖: 3 million in first days Apple and Samsung make 99% of all profits with Smartphone devices
  21. 21. 2011: $70 Billion spent on online advertising 2015: Amount will grow to about $140 Billion Google All other $37B Facebook $3.7B
  22. 22.  The world has changed and will change even faster  Information, collaboration and knowledge sharing across organizational and generational boundaries are essential  ICT is the enabler and the tool (―AGILITY‖)  Success is determined by the people and their capabilities to leverage and adopt ◦ Technical challenges are relatively small and options are plenty ◦ IT capabilities can be procured relatively easily ◦ Organizational and cultural challenges are key obstacles  Flexibility is success factor in the transforming world.  Organizations secure opportunities for their future  Different devices, places, times, people & business requirements Your competitors of tomorrow are racing ahead today.
  23. 23.  Situation that impacts many  People want information  Social Networks and friends are trusted more than government and traditional media  30 million Thais on Facebook
  24. 24. Information Communication Collaboration Technologies Consumerization of ICCT is the growing tendency for new information technology to emerge first in the consumer market and then spread into business and government organizations.
  25. 25.  76% of large organization in the US  59% of large organization in Germany  35% of large organization in Japan
  26. 26.  Security  Data loss  Compliance  Personal data  Privacy  End-user support (by IT)
  27. 27.  Recruiting  Knowledge sharing  Customer DIALOG  Employee connections  Market research  Information sharing Remember: most interesting internal communication is public within minutes anyway
  28. 28.  They are the first to adopt new phenomena and inventions.  They constantly generate new innovations.  They use their networks to solve problems efficiently and in an innovative manner, provided their interest is piqued.  They are more community-oriented and international than earlier generations.  Thee expect their leaders to be inspiring, responsible and open.  This generation is of vital importance to companies, organizations and leaders.
  29. 29.  Born after 1985 (1990 in China)  Grew up with the Internet  Are globally connected and willing to move  Access ―data‖ anywhere and anytime  Openly question and test their leaders And more and more older people are behaving like them…
  30. 30. Attract /retain right people -5% -15% Office space Productivity -15% -50% +10% +40% Travel Place People Sick Leave -5% -30% -2% -20% TCO workplace Technology Cost of communication +15% -25% and collaboration +10% -30% *Rotterdam University & Microsoft
  31. 31.  Simplicity wins  We don’t want ―technology‖ We want stuff to just work  The tools at work have to be as easy as the tools from home— iPads, smartphones, Facebook, Amazon  IT Infrastructure (of organizations and countries) has to support mobile devices, personal PCs and consumer ―apps‖ & experiences …. At any place and any time
  32. 32.  Capabilities ―on Tap‖ (Cloud / Saas) Digital Cowboys, then Consumers will embrace first  Data ―in the cloud‖ (private or public) Access and networking anywhere with many devices  Powerful devices that sync and ―light up‖ through cloud  Social Media as ―authentication‖ Security and trust through community control Hard to ―fake‖ 500 friends & family And who wants to meet a person with only 10 contacts….?  Location based ―experiences‖ (likely GPS based) Includes networking, data protection policies, advertisement, services,…..  Simplification for end-users and IT management
  33. 33.  Takes advantage of innovation & technology  Continuously optimizes & re-invents  Is authentic & trustworthy  Has all levels & functions engaged with the frontline  Is ―always on & responsive‖  Leverages the best resources for a given task or project  Attracts the best people
  34. 34.  Stay in touch  Contact  MarkME@adgetec.com  Twitter: MarkMEberstein  US +1 855.423.4383

Editor's Notes

  • When the top executive buys an iPhone and expects it to work at the office, home, away…When employees use Skype to work mobile and collaborateWhen hundreds of organizations had a secure collaboration platform up and running within hours of the Haiti earthquake When Google, Facebook, and Twitter are essential components of marketing strategiesWhen the CIO understand the security limitation of his iPad and still won’t give it upWhen President Obama insisted on using his Blackberry
  • When the top executive buys an iPhone and expects it to work at the office, home, away…When employees use Skype to work mobile and collaborateWhen hundreds of organizations had a secure collaboration platform up and running within hours of the Haiti earthquake When Google, Facebook, and Twitter are essential components of marketing strategiesWhen the CIO understand the security limitation of his iPad and still won’t give it upWhen President Obama insisted on using his Blackberry
  • When the top executive buys an iPhone and expects it to work at the office, home, away…When employees use Skype to work mobile and collaborateWhen hundreds of organizations had a secure collaboration platform up and running within hours of the Haiti earthquake When Google, Facebook, and Twitter are essential components of marketing strategiesWhen the CIO understand the security limitation of his iPad and still won’t give it upWhen President Obama insisted on using his Blackberry
  • When the top executive buys an iPhone and expects it to work at the office, home, away…When employees use Skype to work mobile and collaborateWhen hundreds of organizations had a secure collaboration platform up and running within hours of the Haiti earthquake When Google, Facebook, and Twitter are essential components of marketing strategiesWhen the CIO understand the security limitation of his iPad and still won’t give it upWhen President Obama insisted on using his Blackberry
  • http://www.millwardbrown.com/Libraries/MB_Articles_Downloads/Googe_MillwardBrown_How-Social-Technologies-Drive-Business-Success_201205.sflb.ashx
  • When the top executive buys an iPhone and expects it to work at the office, home, away…When employees use Skype to work mobile and collaborateWhen hundreds of organizations had a secure collaboration platform up and running within hours of the Haiti earthquake When Google, Facebook, and Twitter are essential components of marketing strategiesWhen the CIO understand the security limitation of his iPad and still won’t give it upWhen President Obama insisted on using his Blackberry
  • When the top executive buys an iPhone and expects it to work at the office, home, away…When employees use Skype to work mobile and collaborateWhen hundreds of organizations had a secure collaboration platform up and running within hours of the Haiti earthquake When Google, Facebook, and Twitter are essential components of marketing strategiesWhen the CIO understand the security limitation of his iPad and still won’t give it upWhen President Obama insisted on using his Blackberry
  • Total Customer focus—Fans are everything#1 in Finland — #1 in Sweden — #1 in UK — #1 in USAYour market is what you define it to be Cookbooks, Toys, Graphic novels, business books, movies….
  • Doubling of transistors every 2 yearsDoubling of computing power every 18 months
  • Datacenter in your and your customers’ hands…… easy to use, fully connected
  • Disney: 50 years of winning with animation“Toy Story” and Pixar changed the game and won every year with critics, audiences and financialswhat next will change and be far more efficient soon
  • what next will change and be far more efficient soon
  • FB had about 5% of the market ($3.7B in revenue)Google had about 50% ($37b) of the marketBy 2015, online advertising would double to just under $140b, which will surely benefit both Google and FBPeople now spend MORE time on their computers than in front of the TVs so online advertising will explode
  • Doch wir stehen mitten in einem historischen Umbruch der Arbeitswelt: Unternehmen verändern sich Das hat technische aber vor allem auch gesellschaftliche Ursachen. Unternehmen in denen Wissensarbeit dominiert, werden sich wandeln. Von einem Enterprise 1.0 zu einen Enterprise 2.0 Moderne Arbeitsformen, die sich teilweise an bekannten Web2.0 Formen orientieren halten verstärkt Einzug. Getragen von einer jungen Generation „Digital natives“ Verbunden mit handfesten wirtschaftlichen Vorteilen.Ganz wichtig aber: Die technischen Herausforderungen sind vergleichsweise gering. Die größeren Herausforderungen liegen für Unternehmen in der Arbeits- und Unternehmenskultur Damit „Neues Arbeiten“ zu Effizienzgewinnen führt muss Unternehmenskultur diese Arbeitsformen stützen.Beispiele:  Hierarchische Organisationstruktur weicht zunehmen projektbezogener vernetzter Zusammenarbeit.  Statt träge Einbahnstraßen Kommunikation gibt es eine schnelle Kommunikation der Partizipation und Gegenseitigkeit (Beispiel Achim für alle Mitarbeiter per IM erreichbar) Isolierte Wissensinseln werden zu vernetztem Wissen  Die traditionelle Büroarbeit wird abgelöst von der vernetzten Wissensarbeit Präsenz vor Ort weicht zunehmender Mobilität Der physische Arbeitsplatz mit fester Arbeitszeit und Anwesenheitspflicht vom virtuellen Arbeitsplatz, von dem jederzeit an jedem Ort nach dem Grundsatz der Vertrauensarbeitszeit gearbeitet werden kann Die Folge: Moderne Informationstechnologie übernimmt hier eine treibende Rolle • Aber machen wir uns nichts vor, auch das neue Arbeiten, die moderne Büroarbeit ist keine heile Welt ohne Stress und ohne Konflikte. • Schon die bloße Anzahl der in ihr vernetzten Akteure – Management, arbeitsplatzgebundene und flexible Mitarbeiter, Freelancer, Geschäftspartner und „mitarbeitende Kunden“ – lässt Friktionen erwarten. Mit anderen Worten: • Zwar leitet die IT-Branche den endgültigen Abschied von der traditionellen Büroarbeit ein. • Zwar schafft sie neue Chancen, uns von geistlosen Routinen und unproduktiven Wartezeiten zu befreien. • Dass aber die moderne Büroarbeit zu einem Vorteil aller wird, kann Technologie nicht garantieren. • Dazu bedarf es dann doch noch des Menschen: seiner Fähigkeit, unterschiedliche Interessen vernünftig zum Ausgleich zu bringen.
  • The emergence of consumer markets as the primary driver of information technology innovation is seen as a major IT industry shift, as large business and government organizations dominated the early decades of computer usage and development. This shift is impacting beyond the ICCT providers and their traditional customers into societies.
  • ^ CesareGarlati, The Consumerization Report, BringYourOwnIT.com, 2011, http://bringyourownit.com/2011/09/26/trend-micro-consumerization-report-2011/
  • Employee connections (your organization likely has a community…)Information sharing (IM, updates, video, pictures,..)
  • Digital professional – or maybe it’s better to use the word “enthusiast”Energetic, knowledgeable, fearless, risk-taking, “this gun for hire”, ready to ride wherever fortune may take them – as well as being competent, capable and fiercely independent. These are people on which you can build a future. They are, in fact, building our digital future right now; they do not flinch in the face of big challenges. They are people who you can count on to be resourceful and inventive when encountering surprises and challenges. But they challenge their managers and leaders - What´s your value to me Their expectations from their leadersInspirationResponsibilityCohesiveness, including their cohesiveness with strategy and customer value
  • “Back of the envelope” calculation ProductivityDoes my company calculate productivity of knowledge workers?If so, how? And what is the amount per year and employees?If not, can I use an industry comparable number for productivity?What is the age range of my workforce? As older workers retire, many companies see an increase in productivity as younger workers are more willing and able to embrace new productivity tools.If neither is available, what are my fully burdened cost per knowledge worker and my saving potential? In the United States we often use $150,000 per year. To be clear, this is not about calculating a potential reduction in force. Assuming that all (or most) employees are generating value for the company today, this identified potential would actual grow the business.Apply a 10 to 40 percent productivity increase against this initial number for the likely bottom line impact.Sick leave costPer employee, per year, or total for the organization. Sick Leave reflects the corporate culture. Bad morale and bad management lead to high sick leave percentages. Companies who support a work anywhere at any time typically see lower sick leave rates.Apply 2 to 20 percent of those costs as savings.Attraction and AttritionRecruiting costs; including headhunters, relocation, sign on grants, and so forth. Rate of attrition. Bad company morale definitely impacts attrition rates.Apply 5 to 30 percent of those costs as savings.Office spaceReal estate is a big cost-savings driver. However, lease contracts determine when and if you will be able to reduce costs.Apply 15 to 50 percent of those costs as savings.Travel and work timeApply 5 to 30 percent of those costs as savings. Costs and potential savings depend on the nature of the organization. The structure of the sales force, global presence, and type of products all influence the numbers. The more mobile your work force is the greater the number of tools you will need to support them but you can also realize greater savings. Total cost of ownership of workplaceThis is the total of direct capital investment in hardware and software plus indirect costs of installation, training, repairs, downtime, technical support, and upgrading. The single largest factor affecting total cost of ownership (TCO) is staffing cost—60 percent according to the IDC. Recent  IDC research has shown that such technology initiatives coupled with organization wide improvements in IT management processes can reduce IT labor costs by as much as 50 percent. Overall, factor a 25 to 30 percent savings through the capability upgrade.Cost of communication and collaborationWhere do your employees work—from a desk, in the hall, in meeting rooms, onsite with clients, from the airport, from home? What technology does your organization provide?How much do you spend on messaging costs—storage, third-party mobility, archiving, and backup solutions?If employees are spread across geographic areas, how do they communicate and conference—in person, over the phone, or not at all? Are they using the Web, video, and audio conferencing capabilities?Cost savings here are a “worst case” scenario versus a “best case scenario. For the worst case scenario—you have a legacy system that needs to be replaced, you will spend more initially as a necessary improvement. However, the investment pays off and those companies can expect the best case scenario cost savings of up to 25 percent or 30 percent.Demonstrating Business Value: Selling to Your C-Level Executives. Perry & Gillen. 2007 IDC. Optimizing Infrastructure: The Relationship Between IT Labor Costs and Best Practices for Managing Windows Servers. Al Gillen, Randy Perry, Seana Dowling January 2008
  • Mark’s view on “The organization of the future”: Vision and goals:Don’t think big. Think HUGE and GLOBAL! Company size doesn’t matter anymore to change the world.resources to develop and market your vision are out there and easy to engageLeadership transformation:authenticity and transparencyhelicopter abilityfrontline experience (daily!)Organization transformation:Don’t let teams grow too big or bureaucraticAll levels and roles need be engaged with the frontlinethink less about “functions to outsource” but more about how and where to find the best resources for a given task or project and ensure to “bind/hold/hire” people who really get and support your vision; independent if their current role or function is “core” to your businesscompensation: give people what they need: for short or mid-term engagements: pay (your vendors) them very wellfor employees (especially your executives): pay them well enough to stay… but make them part of the huge long-term (5+ years) success you are working on together get rid of people on your payroll who are profiting from short term successes. In far too many organizations, business decisions are made by executives who are primarily motivated by growing their organization and to stay another few years to cash in…. instead of building the long term business. If you have a winning formula, don’t sell out early but build it HUGEBe true to the brand; protect the brand at any costWork with your fans (customers). Daily. In all functions. On all levels.Deliver value: more than you charge for and far less than the people value the experience at 
  • Let me and our colleagues know what you encounter and what works best

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