Predictive Enterprise Strategic Overview
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Predictive Enterprise Strategic Overview
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Predictive Enterprise Strategic Overview
- 1. Strategy Overview The Predictive Enterprise
- 3. After years of cost optimization Business trends + Technology innovation > Strategic innovation… Cost Containment Competitive Advantage Are you ready for the next big wave? CIO Environment: IT Is Cyclical
- 4. The Next Wave Competitive Advantage 1950’s 2000’s Time line Mainframe Company Level Information and Automation PC Personnel Productivity Client Server Applications Extended to Internal Users Mini Computer Department Empowerment Internet e-Business WHAT’S NEXT?
- 5. The Next Wave: What’s Driving the Wave? The boundaries are blurring Data Center Factory / Warehouse Digital Offices Mobile Workforce Mobile Consumer ISP / Telco Supplier Outsourcer Customers Extreme Mobility Mobile device as std biz client, secure connectivity anywhere Faster Business Clock Speed Real-time biz intelligence; data explosion; rapid reprovisioning The World is Green Low power client and server utilization tunable consumption Emerging Technology Trends Innovation Beyond the Firewall SaaS and Web 2.0, virtual enterprise security models The World Is Flat SOA/common building block architectures across company digital supply chains Extreme Mobility Consumers and workforce always connected anywhere Faster Business Clock Speed Change is accelerating, threatening sustainability The World is Green Environmental compliance; focus on environment Emerging Business Trends Innovation Beyond the Firewall Enterprise = mix of insourced/outsourced apps & services The World Is Flat Demand for instantaneous response from interconnected companies
- 7. Conceptual Foundation: The “Predictive Enterprise” Based on “Business Intelligence”, Proctor and Gamble, May 2006 We forecast demand shift between our top three product lines that, w/o action, will result in backorders, overstock, and net $10MM sales loss “ We predict that 10 hurricanes will hit the Atlantic coast next year. Here are the approx. dates and strengths for each.” … circa 2005 Predict (Analytics) Respond (Execution) React Explain Set dates to reassign manufacturing capacity from product lines 1 & 2 to product line 3 in order to avoid overstock and backorders, increasing net sales volume $5MM “ Looking at our business pipeline, we do not have sufficient volume to meet our FY06/07 profit goals.” “ We missed our forecast due to a $10MM loss of sales due to unexpected competition.” Business Management Set dates for ‘just in time’ emergency supply deployments, including analysis of what can be re-used/relocated “ We predict a hurricane will hit the North Carolina coast in 48 to 72 hours.” … circa 1965 “ A hurricane just hit..” … circa 1900 Weather Forecasting
- 8. The Knowledge and Execution Gap “ Most enterprises take a top-down approach that looks at the available data and analyzes it, but then lack the ability to effectively deploy the results of the analysis.” Source: “ Gartner Symposium ITXPO”, October 2002, Gareth Herschel .
- 9. What Technology Elements Support a ‘Predictive Enterprise’? IT Strategy Business Strategy Business Value Capture appropriate, filtered information from a variety of different sources. Manage appropriate, filtered information from a variety of different readers and sensors. Access the information any time, anywhere by appropriate people, applications and business process. Respond to events and information automatically and allow for people to manage by exception. Secure, Managed User Presentation Enterprise Analytics & Automated Decision Making Business Process Models & Workflow Optimization (RFID, WSN. WiFi, WiMax) Web Services (XML, SOAP) Business Applications (ERP, CRM) Database & Data Management Infrastructure for Computing Evolution FLEXIBLE, MANAGEABLE, AGILE HIGHLY UTILIZED, VIRTUALIZED, SECURE Compute, Storage & Network Enterprise Service Bus Analyze data and events in real-time for business intelligence and proactive process improvement.
- 12. Technology foundation for the future What is Intel’s Role in Aligning Technology to IT Initiatives? Defense In Depth Security Models Dense , Efficient Data Centers IT Service Management Search & Real-time Analytics Rich Collaboration Models Mobile Compute Cross Over Trust Management Energy Efficient Performance Core Unified Comms Mobile & Rich User Experience Dynamic Resource Management Data Intensive Computer Security Threats & Compliance Data Explosion Increasing Complexity & TCO Environmental Compliance Productivity Barriers Intel Focus Key IT Initiatives (Examples) Top Hurdles
- 13. Processing Infrastructure Enterprise Solutions Data Center of the Future Service Oriented Enterprise Architecture Digital Supply Chain & Business Intelligence Enterprise Client Intel’s Role: Transformational Solutions Predictive Enterprise Supplier Mobile Consumer ISP / Telco Data Center Factory / Warehouse Digital Offices Mobile Workforce Outsourcer Customers Trust Management Energy Efficient Performance Core Unified Comms Mobile & Rich User Experience Dynamic Resource Management Data Intensive Computer
- 14. CHIPSETS BOARDS & SERVER SYSTEMS Intel’s Role: Innovation Through Ecosystem Leadership INDUSTRY ENABLING 350+ Standards Groups INTEL CAPITAL > $6B Invested ~ 1,000 Companies > 40 Countries IT @ INTEL $B eBiz annually Ranked #11 in top global supply chains 66K Servers 100K Clients, 70% Mobile 100s People > $200M Annually ECOSYSTEM ENABLING Intel Solution Services
Editor's Notes
- “ Predictive Enterprise” is the theme for an Intel-wide, marketing campaign for enterprise-class, customers. The Predictive Enterprise was developed to help change the conversation with senior customer decision makers from technology focused (e.g. “price-performance”, “speed and feeds” to the relevance of IA-based technology and the role of Intel in helping enterprise customers deliver new and innovative business capabilities. The objective of this marketing campaign is to help develop a more strategic relationship with executive decision makers. This material in this presentation describes the business and technology at an executive-level; this material is not a roadmap or an implementation guide.
- Key Points: IT is cyclical - it swings between periods of heavy cost reduction focus to being a competitive weapon for the companies that fund them After years of cost optimization, business trends and technology innovation are pointing towards next wave of strategic innovation. It’s always about ROI, but sometimes you focus on reducing the ‘I’ and sometimes you focus on maximizing the ‘R’ Focus on the R is the order of the day once more; this observation is supported by a general business trend that has seen large IT budgets cease annual shrinkage and remain constant (trend noticed circa early 2006) The last time the pendulum swung hard towards the ‘R’, companies were investing heavily in e-business. Intel saw this and became the first company to take a billion dollars in orders through our e-business site. So, as the pendulum is swinging back to R again: is the CxO ready ? Do they have a plan ? What will be the next Information Technology innovation wave that enables business growth ? Customer Take away/Key message: ( change in belief or behavior) IT is again becoming the strategic weapon for corporate growth Are they prepared for the next wave?
- CIO’s need to address the “mega-trends” are driving innovation and the required changes in infrastructure, if they are to compete. In our view, these forces are: Faster clock speed – FSI as the poster child. 1ms + $100M … and we know the thirst for performance doesn’t end with that industry. Innovation Beyond the Firewall – increasing use of business partners to deliver business capabilities and services. Extreme mobility – iPhone, WiMax, desktop/mobile cross-over The World is Green – power/thermal focus and the value-add environmental restrictions and compliance issues The World is Flat – need to integrate seamlessly between companies supply chains. In fact, McKinsey predicts that 30% of the Global GDP in 2015 will consist of cross-border trade. What does it mean? For our customers, it means that boundaries are blurring.
- Intel thinks that this next wave will lead to the rise of the Predictive Enterprise: The predictive enterprise vision recognizes that an enterprise's ability to predict business needs and incorporate advanced technologies to meet them will be increasingly important to enabling future business success. Key technologies allow businesses to capture, manage, access and analyze data at a level and speed never before possible; thus enabling agile response and even prediction of future needs for proactive actions. “ Successful organizations will increasingly design capabilities to search out, capture, and interpret clues about emerging customer wants and needs, and to respond to unanticipated requests. “ -- Source: The Adaptive Enterprise , by Stephan H. Haeckel, HBS Press
- Weather forecasting is an illustrative example of real-world predictive capabilties. Improved collection of data (Sense) and improved analysis of this data (Sense) have enabled weather forecasters to gain a better understanding of what is likely to happen (Predict). These forecasting capabilities provide insight to government agencies and citizens so they can take Proactive actions (Act) rather than Reactive actions. This concept is the foundation for the Predictive Enterprise; utilize Data and Technology to enable more Proactive business decisions and actions. The ability to Respond (Execution) in a timely manner based on better understanding (Analytics) of future situations is the key business opportunity that is offered by the Predictive Enterprise concept.
- How often are companies surprised? Business systems accumulate massive amounts of data (Available Customer Data), but is this data really working for your company (Analytic Capability)? According to Garner Research (this model), most business take a “Top-Down” approach, which focuses on getting and managing the data that is needed to understand the business issue/situation. Gartner identified that business ALSO need to also take a “Bottom-up” approach that focuses on the EXECUTION aspect; taking action based on the data analysis. In a Predictive Enterprise, a business has the ability to interpret emerging trends (“Knowledge”) and respond proactively (“Execution”). IA-based technology is relevant to enabling BOTH the Top-Down and the Bottom-Up approach because of its foundation role in enabling the Data, Application and Infrastructure capabilities needed for the Predictive Enterprise.
- What is Intel’s “Vision” for the Predictive Enterprise? Definition: The “Predictive Enterprise is an enterprise business architecture designed to enable and support ROI and Business Growth through real-time, connected and adaptive systems, infrastructure and business process. Elements: These are the functional capabilities and the underlying computer stack that Intel will partner with customers, HW and SW Vendors and System Integrators to help provide and enable. Relevance: Analysts and partners have recognized this new wave of innovation and the capabilities required to become Predictive are all enabled by innovation in hardware, software and business processes. Impact: Predictive Enterprises will drive business growth by accelerating the response to new opportunities while minimizing the impact of adversity”
- The Predictive Enterprise requires a “journey” to develop IT capabilities that will enable them to transform this vision into reality. Our customers will need to transition from Capturing what happened in my business (“Reactive”) to… Understanding what’s happening (Adaptive”) to … Detecting trends and proactively responding to business opportunities and challenges as they happen (“Predictive”) … When competing on “Internet Time”, Business can no longer afford the multiple quarters it takes our IT organization to implement a new business system
- Purpose/Motivation: This slide creates a bridge between CIO challenges and the pillars that Intel building products, technology, and standards around. Pillar Definitions: Trust Management (End-to-End security): through enhanced infrastructure features, Intel provides a end-to-end transport architecture that allows the secure, trusted exchange of information, across different communication methods and in a way that allows Commercial Off The Shelf (COTS) applications to interact and interoperate with these advanced security features. Energy Efficient Performance: Where unique sensing and capturing of information within the hardware can be stored and analyzed along with associated processing usage and workload consumption to inform active systems about the run time state of the infrastructure. Unified Communications: That not only is there a network infrastructure in place, but a messaging infrastructure in place that allows and supports the translation, transformation of information. The dissemination of information by various methods to and the sensing, or capture of the information in various ways, but to be standardized into open standard formats allowing interoperability between intra-company systems as well as inter-company systems. This unified communications must deliver in a reliable, high available and scalable manner that can grow at the rate of business demand without reducing the time to respond.. Mobility & Rich User Experience: Delivery of systems and architectures that allow disparate communications methods to capture and present information where ever it is needed, by different mechanisms, and to locally interoperate using standard interfaces with other devices. Dynamic Resource Management: that provide patterns, technologies and methods that sense the changing flows and demands for infrastructure or storage consumption, have the capabilities to analyze those changing demands and the facilities to redirect available processing capacity to assure that both transactional performance is maintained and capacity demands achieved. Data Intensive Computing: Provision of infrastructures and architecture patterns for the high processing capability needed for the most demanding of commercial systems. This includes specific processing infrastructure capabilities to address different types of application processing. E.g. Data warehousing and data mining applications having a different processing characteristics and profile from messaging servers and message routers.
- Key Points: Intel’s Professional Services group helps give customers the confidence to innovate through a portfolio of solutions aligned to key areas of the enterprise: Datacenter of the Future Enterprise Client Business Intelligence SOA/Transformational IT Each solution area adopts a transformational approach – that is we lay out a “bite sized” value step by value step journey to change; This approach allows us to develop a roadmap with our enterprise customers for intersections between their initiatives and our technologies.
- Key Points: Everyone knows Intel for its CPUs, chipsets and boards, but you may not know that Intel also makes tremendous investments of people and $ in industry and ecosystem leadership. We make broad investments that put Intel in the lead of the largest technology ecosystem on the planet Intel has invested hundreds of millions of dollars (U.S.) over the past few years establishing a solutions enabling capability that is helping organizations to quickly take advantage of power, industry standard Intel server building blocks to achieve significant cost savings, mitigate worrisome risks and be better poised for growth. Intel vendor-neutrality is key; while others (IBM, HP, SAP, Oracle…) have comprehensive visions also, theirs are far more product-centric than Intel’s, which by necessity spans across multiple OEMs, ISVs and OSVs Factoids: Intel is a leading practitioner in Enterprise Computing Size/Complexity -- >66K servers, ~110k cleints/70%+ mobile, 2.6M email messages/day AMR Study: #11 in top global supply chains World Class Datacenter Design/Construction/Operation in Intel IT 30% of IT budget to transformational efforts (vs industry average of 18.5%) 2007 POR >$250M in enabling
- Purpose/Motivation : The journey to “predictive enterprise” will be a joint effort between Intel, the Eco-system (IT HW/SW and SIs). This offers software vendors a tremendous opportunity to “ride the wave”. Intel as the indispensable partner and unquestioned compute leader in enabling the foundation for Predictive Enterprise. Customer Take away/Key message : Intel has foundational building blocks that add (unique) value to software vendors products The emerging business challenges of today are key drivers to the new capabilities delivered in Intel technologies and vendors software products. “ predictive enterprise” offers significant opportunity for software vendors Intel’s mission to be the indispensable partner and unquestioned compute leader in enabling the foundation for Predictive Enterprise
- IT is again becoming the strategic weapon for corporate growth IT can enable and contribute to business growth and agility leveraging key emerging technologies The predictive enterprise is a fundamental change to role of information systems The emerging business challenges of today are key drivers to the new capabilities delivered in Intel technologies and vendors software products. The “6 Pillars” of Intel technologies are designed to help address emerging business challenges, The journey to “predictive enterprise” offers significant opportunity for software vendors & solution integrators to be a leader in providing the tools and applications to enable the predictive enterprise Intel : be the indispensable partner and unquestioned compute leader in enabling the foundation for Predictive Enterprise