The 10th annual CIO Bootcamp January 2010 in Cesarea

1. 2010 CIO BOOTCAMP WHAT A YEAR IT WILL BE: CAN WE FIND THE RIGHT BALANCE Dr. Jimmy Schwarzkopf Research Fellow jimmy@stki.info

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3. www.stki.info 3

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5. Digital Disruption: Mother of all Disruptions Internet Revolution Computer Revolution Industrial Revolution 1 – 2010 AD “Industrial Information Economy” Source: http://upload.wikimedia.org/wikipedia/commons/3/31/World_GDP_Capita_1-2003_A.D.png 5

6. Globalization and Technology “Globalization and technology together are creating the potential for startling changes in how we do our jobs and the offices we do them in. …the rapid growth of broader, richer channels of communication – including virtual worlds – is transforming what it means to be at work.” Business Week “The Future of Work” “Wealth in the new economy flows directly from innovation, not optimization” Kevin Kelly Wired Magazine 6

7. Is this innovation ???? 7

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9. -"The fact of the matter is, this is not a downturn, this is a bit of a reset”- 9 Microsoft CEO Steve Ballmer : CES keynote speech 6/1/2010

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11. Virtually free and unlimited:bandwidth and storage Storage and bandwidth, already fairly substantial, are improving performance and cost efficiency even faster than processor speed is . The marginal cost is falling to practically zero. Abundance Economy 11

12. “Waste Transistors” 12

13. “Waste Storage” “Over 2775.261837 megabytes (and counting) of free storage so you'll never need to delete another message” (Remember “Your mailbox is full”? What was that about?) 13

14. “Waste Bandwidth” 14

15. Scarcity Abundance 15

16. The Abundance of Choice 16

17. The Market Has Changed We Have everything we NEED So now, we buy only what we WANT 17

18. Scarcity Abundance 18

19. Scarcity Abundance 19

20. Scarcity Abundance 20

21. The way we market and our products and services Biggest change of all 21

22. “Businesses can no longer rely on traditional forms of "interruption marketing" in magazines, mailings, telemarketing, radio or television”. “Permission Marketing” 22

23. “Permission Marketing” is the opposite of “Interruption” Marketing It doesn’t interrupt people’s time, space or peace of mind 23

24. What is our first question? New relationship marketing 24

25. So only the people who are genuinely interested in what you’re selling, hear from you... ...you're on your way to establishing a long-term relationship with them and making a sale 25

26. 26 What is happening today?

27. Disruptive Innovations 27 disruptive innovation

28. We may be at one of those moments now:Industrial Information Technologies r SPEED Infinite bandwidth and going for real-time data SCALE Unprecedented processing power and storage sizes SENSORS New kinds of data and data analysis 28

29. When will have Industrial Revolution Machines ? The Austin 7 was produced from 1922 through to 1939 by the Austin Motor Company. 33 years The Karl Benz Patent Motorwagen (or motorcar), built in 1885, is widely regarded as the first automobile, that is, a vehicle designed to be propelled by a motor. 29

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32. Winners and losers: who now? 32

33. Innovation: Forgetting Assumptions Trends that will Shape the Digital World over the Next Decade

34. CIO Agenda? 34

35. Technology adoption life cycle Industrial Information Technologies: Business Event Processing Data Center Management Cloud Computing Industry in a Box Mobile Web 3 MassMarket Adoption LateAdopters Early Adopters The Chasm Technology Enthusiasts Pragmatists Conservatives Sceptics Visionaries Adapted from Geoffrey Moore’s “Crossing the Chasm”

36. Business Event Processing Every 20 years a new disruptive innovation changes the way we do IT 2010s 1990s 1970s

37. Business Event Processing

38. Business Event Processing 38

39. Business Event Processing:when and what

41. The IT ecosystem:

42. Balancing Act 42

43. Risk related to “cost cutting” 43

45. 2009: one of the worst years in history 45 100s different Software products Energy waste 25% utilization x86 servers 30% max in Storage Utilization Ala-carte telecomm services Hundreds of Enterprise Processes 24X7 complexity unstable

46. Standardized Equipment Economies Of Scale 46 * From SYMANTEC

48. Cost transparency

49. Cost mgmt

50. Risk mgmt

51. Supplier mgmt

52. Contract mgmt

54. 1980 -2010 Platform Lifecycle 2010s ?

55. Industry in a Box Companies 50

56. Virtual Connectvirtualized LAN and SANconnections Insight SoftwareCapacity PlanningOrchestrationDisaster Recovery StorageWorks EVA SAN (Note: Matrix supports any c-Class certified FC SAN target) Integrity andProLiant blade servers All-in-One Services, plus ProLiant iCAP and pay as you grow financing What’s under the hood 51

57. 52 What’s under the hood 2

58. A huge paradigm shift is underway 53

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60. Cloud Service Layers Service Providers Service Users Cloud End-User Services (SaaS) Cloud Platform Services (PaaS) Cloud Providers Cloud Infrastructure Services (IaaS) Physical Infrastructure

61. Example: Desktop Cloud 56

62. Cloud Computing: Application Models On Demand CPUs Printing Service CRM Service User Office Apps Data Storage Service Cloud Provider #1 Enterprise Cloud Provider #2 Backup Service Service Employee Service ILM Service Service Service 3 Business Apps/Service Internal Cloud … The Internet … …

63. Delegating the Power to the Cloud 58

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66. If looks could kill Examples of “new decade” innovation 61

67. What is Amazon ? “Man is the creator of change in this world. As such he should be above systems and structures, and not subordinate to them.” 62

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69. Downloads works in Israel and also Hebrew pdf s 64

70. “Wealth in the new economy flows directly from innovation, not optimization” Kevin Kelly Wired Magazine 3 trends that will Shape the Digital World over the Next Decade 65

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72. Platform vs. Open vs. Reliable Obama staffers could not work: a "generation" gap in technology Looks like the Bush administration, like many organizations worldwide, used old reliable Microsoft 67

73. WiMax 64-128 GB 68

74. iSlate: 69

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77. iPhone Israeli Ecosystem: 1+ million devices and 100,000 applications 2 billion downloads

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79. Example of applications 74

80. Starbucks iPhone app

81. Finance Applications 76

82. Other ecosystems: blackberry 77

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85. 80

86. Google Wave 81

87. Google into other things? Crome OS Nexus 1 Android 82

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91. Excitement

92. Greed

93. Speculation

94. Corruption

95. Fear/panic

96. Collapse

98. Maths, physics

99. Cellular automata

100. Biology, evolution

101. Organizational dynamics

102. Social systems

103. Network dynamics

105. Diverse participants

106. Honest participation

107. Opinion independence

108. Equality of opinion

109. Clear tasks

110. Accepted rules

111. System confidence85

113. Large-scale impersonal markets

114. Low preference expression

115. Market 2.0 model: flexible dynamic capital allocation systems that provide democratic, more immediate, low-cost, affinity-directed capital

116. Benefits to individuals: freedom, convenience, preferences articulation

117. Benefits to groups: virtual aggregation of group power to conduct transactionsTraditional Market 1.0 Model Market 2.0 Models Many: One Peer finance One: Many Affinity purchasing Many: Many Prediction markets Peer philanthropy 86

118. WEB 1.0: Media companies put content in the web and push it to users . Low content variety Content production is slow and expensive Professional authors Create content based on what they think people want Managers Hand-manage publishing businesses Push! Push! Users = consumers Users consume professionally produced content 87

119. WEB 2.0: New platforms allow users to generate content themselves High content variety dramatically increases, while technical quality goes down. User generated content Blogs, videos, photos, music etc. Authoring platforms enable everyone to publish! Web2.0 managers are hand-managing the platforms Professional authors can still publish, but are competing with – everyone! Users = authors users generate content 88

120. METAweb (web 3): Business platforms empower everyone to become a (media) entrepreneur Business tools Full scale media management tools for everyone User generated content Blogs, videos, photos, music etc. User generated business Premium content, advertising, e-commerce Business platforms Everyone can manage Authoring platforms enable everyone to publish! Build business Publish Users = entrepreneurs users generate business! 89

121. web1.0 web2.0 METAweb Management Delivery Creation So what are the differences ? 90

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123. Tribes: a group of people connected to one another, connected to a leader, and connected to an idea. Discussion: What builds tribes? What kills tribes? What sustains tribes? 92

125. Weak Links : Likely less overlap with leads you can easily get elsewhereMost job referrals come through those who we see rarely: old school friends, former co-workers, etc. 93

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127. Enterprise social software is growing… 95 blogs forums microblogging wikis video social bookmarking photos podcasts

128. …but we’re creating a new set of silos. 96 Book-marks Microblogs Blogs Photos Podcasts Wikis Video Forums

129. Video Wikis Forums Microblogs Podcasts Blogs Bookmarks Photos New “family” of products Tying together enterprise social software 97

131. IT related

132. Economics

133. Musical taste:

134. ITunes

135. Books and others:

136. Amazon

137. Social Capital

138. LinkedIn

139. groups

140. Xing

141. Facebook

142. No longer need a memory

143. Google

144. Yahoo

145. Wikipedia

146. Twitter

147. Personal Information

148. Smartphone tells me about birthdays, phones, addresses98 98

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150. What do you use ? Social Technographics™ Josh Bernoff, co-author of Groundswell 100

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152. 010 Thank you Dr. Jimmy Schwarzkopf 102