The document discusses innovation and change in technology. It covers topics like resilience, the impact of cheap technology, virtual worlds like Second Life, and how search engines and social computing are changing how people access and share information. It provides examples of technologies and trends from 2007-2008 that were transforming how people use the internet.

1. CIO STRATEGIES 2008 CHANGE RESILIENCE INNOVATION

2. @STKI 2008 change is the process by which the future invades our lives Alvin Toffler Change Resilience Innovation Creativity

3. @STKI 2008 change is the process by which the future invades our lives Alvin Toffler Change Resilience Innovation Creativity

4. Resilience: Not only the ability to recover from a change or shock. Resilience : Not only the capacity of people to cope with change , stress or catastrophe. @STKI 2008

5. RESILIENCE: The rate at which any system returns to a single steady state following a system perturbation. Rapid change makes resilience even more important. It isn't just about being prepared, its about being flexible and adaptable enough to cope with change of any kind . IT RESILIANCE : The ability to provide an acceptable level of service in the face of faults and challenges to normal operation. @STKI 2008

6. The future is really only an innovation problem How do we find the future we prefer? Innovation is the ability to move from the existing to the preferred

7. Innovation versus Creativity Innovation is the engine that drives transformation.. @STKI 2008 Present Desired Future Default Future Vision

8. Innovation versus Creativity Innovation is the engine that drives transformation.. @STKI 2008 Present Desired Future Default Future Vision

9. Business-CIO model innovation

10. Innovation IS strategy: from BUILD to CREATE Red Ocean Strategy Blue Ocean Strategy Compete in existing market space. Create uncontested market space. Beat the competition. Make the competition irrelevant . Exploit existing demand. Create and capture new demand. Make the value-cost trade-off. Break the value-cost trade-off. Align the whole system of a firm’s activities with its strategic choice of differentiation or low cost. Align the whole system of a firm’s activities in pursuit of differentiation and low cost . The New Economic Age

11. Innovation IS strategy: from BUILD to CREATE Red Ocean Strategy Blue Ocean Strategy Compete in existing market space. Create uncontested market space. Beat the competition. Make the competition irrelevant . Exploit existing demand. Create and capture new demand. Make the value-cost trade-off. Break the value-cost trade-off. Align the whole system of a firm’s activities with its strategic choice of differentiation or low cost. Align the whole system of a firm’s activities in pursuit of differentiation and low cost .

12. Innovation Management? It is called ENTERPRISE 2.0

13. Successful Innovation Needs Silliness Sounds like a strange advice? Remember… FedEx was silly World Wide Web was silly.. Way back in 1995 .. And so was … Post-it Notes were silly .

14. What is this?

15. The Dyson phenomena

16. Masters of Changing the rules

17. Google INNOVATIVE ? Most Google’s new services are acquired Those include: video-sharing service YouTube weblog publisher Blogger virtual globe Google Earth online word processor Writely (Google Docs) wiki developer JotSpot news syndication service Feedburner Internet phone service GrandCentral

18. IT Innovation strategic tactical Partnering Business with Technology (Innovation) Aligning Technology with Business Strategy (Alignment)

19. Disruptive technologies Introduction of the IBM Mainframe ( 1960’s) Introduction of the Apple II (1978), IBM PC (1981), TCP/IP (1980’s), C/S Architectures (1980’s), SUN workstations (1980’s), Internet (1990’s) Introduction of XML-based Composite Applications (2006), Service Oriented Architectures (2005), Virtualized Infrastructures (2004),Web 2/internet 2 (2007)

20. BOOK OF THE 1990’s Introduced the business world to rethinking operations. Demonstrated how process redesign can yield breakthroughs in performance Put the word "reengineering" into the English language. Plus 10,000 rebuttals And 20+ books

21. BOOK OF THE 1990’s Introduced the business world to rethinking operations. Demonstrated how process redesign can yield breakthroughs in performance Put the word "reengineering" into the English language. Business Process enabled IT Plus 10,000 rebuttals And 20+ books

22. A business process Requisition Approval Process Notify Approver

23. Organizations have only BP

24. BOOK OF 2003 copied: “The Myth of Real Time Information”, HBR 1966 Plus 2000+ rebuttals And 5 books

25. BOOK OF 2003 copied: “The Myth of Real Time Information”, HBR 1966 Tactical and Strategic IT management Plus 2000+ rebuttals And 5 books

27. CIOs do matter: innovation war ERP Value captured by verticals Business Process 1 ERP Value captured by verticals Business Process 2 Sales Prospect Market IT of Competitor IT of Competitor No Real difference in value Competitive Differentiation 1 2

28. CIOs do matter: innovation war ERP Value captured by verticals Business Process 1 ERP Value captured by verticals Business Process 2 Sales Prospect Market IT of Competitor IT of Competitor No Real difference in value Competitive Differentiation 1 2 Best Business Practices Innovation war

29. important implications for CIOs compound annual growth rate over five years [Source: IBM, Global CEO Study 2006]

30. “ The End of Corporate Computing” Sloan Management Review, May 2005 NICK CARR

31. Book of the century (4/2005) Thomas Friedman 3 billion people (consumers & producers) entered the world economies Eastern Europe (ie: Rumania) Asia (ie: China, India) Now we have a “new” economy: Interconnected (fiber everywhere) Standardized (Open Source) Supply Chains Management Out-sourcing, In-sourcing, Off-shoring Info sourcing

32. My “creative hero”

33. technology innovation

34. Cheap Technology: The Ultimate Driver... Jimmy ’ s Law: Memory, bandwidth and computing power continue to decrease in cost.. exponentially US $ - Logarithmic Scale 1 10 100 1,000 10,000 100,000 1,000,000 0.1 (3) 75 85 95 07 10 Bandwidth Cost of sending 1 trillion bits Storage Cost of 1 megabyte storage Computing Cost of 1 MHz processor speed Source : Federal Reserve Bank of Dallas,

35. ...and the effect on networks When the network is as fast as the computer’s internal links, the machine disintegrates across the net into a set of special purpose appliances

36. effect on people as seen in New Maslow’s hierarchy of needs

37. effect on people as seen in New Maslow’s hierarchy of needs

38. I am a smartphone addict. I use my smartphone for 90% of the tasks I did from my laptop while carrying less than 5% of the weight. Being a low power device with great always-on connectivity, smartphones are the perfect thin client. IT people have not yet realized that the killer app of a smartphone is the web browser .

40. I am a smartphone addict.

41. and the effect on IT…….

42. Peopleware: The ‘Follow Me’ Portal that supports the “Digital Identity” Banking Portal Government Portal Megaportal Work Portal DI #2789

43. What kind of knowledge do we need?

44. The Peopleware Ecosystem Peopleware WCM Security Application Servers EAI Web Services E-Forms/Workflow Search Development Tools E-Learning Directory Collaboration Expertise Location & Mgmt. SSO Wireless Business Intelligence Knowledge Mgmt. DM BPM Identity Management Composite App. Framework BAM

45. … some of the then overly ambitious but valid concepts actually get implemented “ The Network Corporation”

48. 2007: the year of my discovery “ SACRED ORDER OF THE EXTERNAL MIND” I could outsource mental tasks Life is a math problem and I have a calculator MAGIC OF THE INFORMATION AGE Not that it allows us to know more It really allows us to know less

49. An example: my romantic attachment to my “GPS”

50. I have outsourced part of my life to external cognitive servants : No longer need a memory Google Yahoo Wikipedia Personal Information Smartphone tells me about birthdays, phones, addresses Musical taste: Itunes Books and others: Amazon Social Capital LinkedIn Xing Facebook

51. Pinpoints a supermarket in MEXICO ? my son is calling from there

52. WEB 2008 phenomenon (fi-nom- uh -non) -noun a rare or significant fact or event in the web that happened in 2007 something that is impressive or extraordinary that happened in 2007

54. WEB 2008: user Transaction Sites Multimedia Sites Game Sites Social Sites

55. Why search as HOME PAGE Search lets users control their own destiny and assert independence from websites’ attempt to direct how they use the Web. Search is also users’ escape hatch when they are stuck in navigation . When they can’t find a reasonable place to go next, they often turn to the search function. This is why you should make HOME PAGE in every page on the site; you cannot predict where users will be when they become lost.

56. SLIDE PRESENTATION http://www.slideshare.net/jimmyschwarzkopf Favorite Slideshows

57. Search Engines Definition: A search engine is a searchable database of Internet files collected by a computer program (called a wanderer, crawler, robot, worm, spider).

58. social computing Institutions Communities Communities drive innovation Institutions facilitate experiences, shaped and owned by communities Communities take power from institutions

61. WIKIPEDIA STKI מתוך ויקיפדיה , האנציקלופדיה החופשית חברת STKI - Schwarzkopf The Knowledge Integrators היא חברת ייעוץ בתחום מערכות מידע בישראל , המפעילה צוות של אנליסטים . לקוחות החברה כוללים בנקים , חברות ביטוח , משרדי ממשלה , חברות היי - טק ותעשייה , חברות טלקום ועוד . באמצע שנות ה -80, ד " ר ג ' ימי ( חיים ) שוורצקוף ביצע את המחקר הראשון מסוגו אודות שוק טכנולוגיית המידע בישראל , עבור חברת DEC . המחקר הכה גלים בשוק הישראלי , ונתן תמונת מצב קונקרטית בשוק שהיה עד אותה עת בלתי ממופה . ד " ר שוורצקוף המשיך בחקר השוק ובשנת 1992 הקים את חברת Meta Group Israel , ששימשה כנציגות בישראל של חברת Meta Group העולמית . במסגרת החברה , המשיך ד " ר שוורצקוף לפרסם מחקרי שוק בתחום באופן קבוע , וכן לספק ייעוץ לחברות והארגונים המובילים בשוק . בשנת 2004 נרכשה Meta Group העולמית על ידי חברת גרטנר , וד " ר שוורצקוף והאנליסטים המשיכו בפעילותם בישראל תחת השם STKI . כיום , STKI משתפת פעולה עם שלוש חברות ייעוץ מהמובילות בעולם – Butler Group , Cutter Consortium ו - Datamonitor .

63. Widgets bring micro applications to the desktop

64. WEB 2008 EXAMPLES

65. WEB 2008 EXAMPLES …. 2

66. The WEB 2008+ experience Soon each website will become a 3 dimensional room that can be experienced alone or with friends

68. Virtual worlds Definition: 3D online persistent world with a sense of presence and simultaneous experience in context Examples (over 30 worlds): Second Life ActiveWorlds Entropia Universe There MultiVerse Vast Park Metaplace

69. Second Life is the biggest virtual world 40,000 concurrency (at any time) 450,000 active users (last 7 days) 1.4 m active users (last 2 months) 10.6 m total accounts 2 m assets created per day 35 TB of user-created data 800,000 unique items sold or traded per month 500 events per day 15 m concurrent scripts 10 Gbps peak bandwidth Source: http://secondlife.com/whatis/economy-graphsphp Million Square Meters of Second Life Land Total User Hours (millions) Source: Linden Lab

70. Currency: Linden$ LindeX exchange operated by Linden Lab Buy: USD $.30 transaction fee Sell: 3.5% transaction fee Monetary policy Sources: http://secondlife.com/whatis/economy-market.php, http://secondlife.com/whatis/economy-graphs.php, http://secondlife.reuters.com US$ Spent by Users (in Millions) US $ Exchanged on Lindex (in Millions) Source: Linden Lab 270 L$ =$1 USD

71. Rapidly developing virtual world ecosystem Investment transaction in 2007 or acquisition Virtual World Providers Linden Lab/Second Life , ActiveWorlds, Entropia Universe, There, Kaneva, Muse, MultiVerse, vastpark, metaplace, Cybertown, Habbo Hotel, Whyville, Voodoo Chat, Taatu, Traveler, Sims Online, Club Penguin, WebKins, Hipihi, Uonenet, Noviking Virtual Businesses and Brands Anshe Chung Studios, DeCuir Creations, FairChang, Etopia, Hunter’s Cove, SL Boutique , Preen, House of Nyla, Second Life Cable Network, Rezzable, caLLie cLine, PeoplePool, Raven Pennyfeather, Lapointe & Bastchild Designs, InStyle, Vista Animations, Chai Skins, Acedia Albion, AV Puli Animations, Reel Expression, J&S Aviation, SZ Designs, Vindy Vindaloo, Esoterica Couture Virtual World Developers and Agencies Electric Sheep Company, Millions of Us, Rivers Run Red, CMP, Aimee Weber Studio, depo consulting, Forterra, Metaversatility, Wish Farmers, Virtual Worldlets, Icarus Studios, Proton Media, NGI Group 3Di, DAZ 3D, Code 4 3D Physics Engines and 3D Modeling Platforms Havok , Ageia PhysX, Unreal Engine, Open GL, Maya, 3D Studio, Croquet, SoftimageIXSI, Form Z, Strata 3D CX, RenderMan, Blender, Wings3D

72. Economy Reuters Banking and credit Stock markets SL Capital Exchange (US, 20 listings) World Stock Exchange (Australia, 15 listings) VSTEX (Italy, 7 listings) Ancapex (US, 3 listings) Source: http://secondlife.reuters.com

73. Business Motorati SpokesAvatar: caLLie cLine H&R Block IBM Dr. Dobbs Life 2.0 Conference Cisco Best Buy’s Geek Squad Preen Principal: Aimee Weber Preen

74. Scion, Toyota's youth-oriented brand, has sold (2H07) about 200 computer-generated cars in Second Life

75. Advisory/Analyst firms H&R Block Island BDO Stoy Hayward Island KAWG&F (Baltimore MD CPA firm), CPA Island Accenture We hope that during 2009 STKI will be present there and will have it’s first SUMMIT

76. Academia, museums, non-profits Princeton Art Gallery Science Friday International Spaceflight Museum Computer History Museum American Cancer Society Relay for Life

77. Government, politics and collective action US Congress European Community US Congress – hot topic legislation Campaign HQs Davos protest

78. Internet 2 is not Web 2

79. WEB 2 are WEB Technologies

80. Internet 2 are NETWORK TECHNOLOGIES @STKI 2008

81. Internet2: IT Implications Research and Development Commercialization Partnerships Privatization Internet1 1. Need to learn from lessons of Internet1 2. Need to understand opportunities and threats of Internet2 3. Need to realize that the window for action is shorter @STKI 2008 2009 1997 2011

82. WEB 2008 pushes need for “new CIO” Time Innovation WEB 2008

83. 2008 the year when we want to “ keep it simple stupid” (KISS)

84. Availability of key skills Downturn in major economies Over-regulation Low-cost competition CEOs study by Pricewaterhouse Coopers released at the World Economic Forum in Davos (1/2008) . Smaller budget ? Less resources ? Less discretionary spending on new technology ? New ways of doing things, like software as a service ? More outsourcing ?

85. CIOs have three long term agendas IMPROVEMENT AGENDA : concentrates on building better processes INNOVATION AGENDA: concentrates in finding high potential technologies and ways to use them COST-REDUCTION AGENDA: rises when either the economic outlook becomes stormier or new technologies present a fresh chance to save money

86. A look at the changes and trends IT executives expect in 2008: Strategic IT services ( development and acquisition of CORE SYSTEMS, BI..) using SOA Management of IT (Office of the CIO,PMO, BSM, CMDB…..) Infrastructure technologies (DATA CENTER, GREEN ,BLADES, thin clients..) Security (all new needs) Regulations (building the IT reg. group: ISO, ITIL and COBIT) Pop-tech culture (Facebook, Google, iPhone, Second World and others )

87. Consolidation: Exploiting software & hardware resources & payment options to best serve a variable workload EII: Delivering meaningful information from many sources to many consumers SOA: Delivering IT functionality as reusable, interoperable business services Peopleware: portal convergence VoIP Internet2-Web2 OTC: giving users all the resources they need at the time they are needed, at a cost that is related to the business value delivered Service Oriented Architecture Hwre Sftwre Consolidation Enterprise Information Integration Peopleware Computing Office of the CIO: OTC enabling deployment of concurrent initiatives

88. What is SOA ? Service Oriented Architecture is a state of mind

89. APPLISTRUCTURE and SOA

90. APPLISTRUCTURE and SOA

91. Why do we want to change ????

92. Why do we want to change ????

93. Need of standard XML

94. Building many “Business Services” Business Logic Business Logic Business Logic Business Logic LEGACY ERP CRM FINANCE “ Transfer Funds ” “ Execute trade” “ Etc., etc.” “ Get Portfolio Balance”

95. The Process Driven Organisation Process number one Process number two Process number three

96. IT will sell only BP solutions Deliver Receive Service Business Processes IT Infrastructure Enterprise Applications

97. Composite Applications Composite Applications Drop-and-configure Optimize Rate Plan Get Customer Process Order Get Value Get Churn

98. how do you implement a data model architecture?

99. Is the new product selling only in London? NO also in Berlin NO also in Paris NO also in Moscow

100. Enterprise v1: circa 2007

101. Threat to a Single Version of the Truth YOUR WORST ENEMY IS HAVING SEVERAL VIEWS OF THE TRUTH

102. 2008:DATA ARCHITECTURE MASTER DATA MANAGER

103. The “dream” XML Process Manager EII eBusiness System Legacy System Front- & Backoffice System CRM System Financial System SCM System Workflow Management System Enterprise Integration Bus Portal as assembly engine Enterprise Portal

104. In order to finish my wish for 2008