STKI Company Confidential for 6/14/2008

STKI Company Confidential for 6/14/2008
STKI clients only

Inviting you to my office and to my library.........

All Rights Reserved 2008@STKI    Moshav Bnei Zion, Israel  +972 9 790 7000 www.stki.info All Rights Reserved 2008@STKI    Moshav Bnei Zion, Israel  +972 9 790 7000 www.stki.info

This presentation is dangerous....
It will make people think
Innovation
•
change is the
Change
Important books/authors
•
process by which
the future invades
Cloud computing
•
Resilience
our lives
Neo‐nomads
Neo nomads
•
Creativity
METAweb
• Alvin Toffler

Virtual Worlds
• Innovation

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4
Zion, Israel  +972 9 790 7000 www.stki.info

Resilience: Not only the
ability to recover from a
change or shock.
change is the
process by which
the future invades
our lives

Alvin Toffler

Resilience: Not
only the capacity of
people to cope with
change, stress or
catastrophe. All Rights Reserved 2008@STKI    Moshav Bnei
All Rights Reserved 2008@STKI    Moshav Bnei Zion, Israel  +972 9 790 7000 www.stki.info
5 6
Zion, Israel  +972 9 790 7000 www.stki.info

@STKI Moshav Bnei Zion Israel
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RESILIENCE: The rate at which any system RESILIENCE: The rate at which any system
IT RESILIANCE:
returns to a single steady state following a returns to a single steady state following a
The ability to provide an acceptable
system perturbation. system perturbation.
level of service in the face of faults
and challenges to normal operation.

All Rights Reserved 2008@STKI    Moshav Bnei All Rights Reserved 2008@STKI    Moshav Bnei
Zion, Israel  +972 9 790 7000 www.stki.info Zion, Israel  +972 9 790 7000 www.stki.info
7 8

The future is really only an
In the genes ? innovation problem
How do we find the future we prefer?
Stress:
• Brain releases serotonin
• Kills off neurons if not metabolized
MAOA gene (with 5HTT) handles better stress:
• Produces molecules better at synthesizing serotonin
Your Text here Your Text here

Innovation is the ability to move from
the existing to the preferred

9
All Rights Reserved @STKI    Moshav Bnei Zion, Israel  + +972 9 790 7000 www.stki.info

INNOVATION
Innovation versus Creativity

Vision
Desired
Innovation Future
is the engine
that drives
transformation..

Present
Default Future


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Global Innovation Index
Israel: Innovation Factory 1992‐20??
6 SWITZERLAND
Dr. Soumitra Dutta
18 ISRAEL*
7 SINGAPORE
INSEAD Professor 19 SOUTH KOREA
8 CANADA
GLOBAL 20 ICELAND
9 NETHERLANDS
3 0 K U WA I T
I N N O VAT I O N 10 HONG KONG
INDEX 11 DENMARK
12 SWEDEN
which places:
13 FINLAND
1 US * Because of
14 UAE
2 GERMANY HUMAN CAPITAL
3 UK 15 BELGIUM
4 JAPAN 16 LUXEMBOURG
5 FRANCE 17 AUSTRALIA

14

IMD WORLD COMPETITIVENESS YEARBOOK
This is what I call innovation
2007 (2006)
(10) FINLAND 17 (29) THAILAND 33
(1) USA 1
(17) TAIWAN 18 (33) SLOVAK REPUBLIC 34
(3) SINGAPORE 2
(21) NEW ZEALAND 19 (35) HUNGARY 35
(2) HONG KONG 3
(20) UNITED KINGDOM 20 (36) GREECE 36
(9) LUXEMBOURG 4
(40) JORDAN 37
(5) DENMARK 5 (24) ISRAEL 21*
(8) SWITZERLAND 6
(19) ESTONIA 22
(4) ICELAND 7
(22) MALAYSIA 23
Professor
(15) NETHERLANDS 8
(16) JAPAN 24
(14) SWEDEN 9
Stéphane Garelli
(26) BELGIUM 25
(7) CANADA 10
(23) CHILE 26
IMD Business School
(13) AUSTRIA 11
(27) INDIA 27
(6) AUSTRALIA 12
*
(30) FRANCE 28
Because of
(12) NORWAY 13
(32) KOREA 29
(11) IRELAND 14 HUMAN CAPITAL
(31) SPAIN 30
(18) CHINA MAINLAND 15
LITHUANIA 31
(25) GERMANY 16
(28) CZECH REPUBLIC 32


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.

The New Economic Age
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 Align the whole system of a firm’s
activities with its strategic choice of activities in pursuit of
differentiation or low cost. differentiation and low cost.

18

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Innovation:
Innovation IS strategy:    from BUILD to CREATE
water drum that is easy to pull

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 Align the whole system of a firm’s
activities with its strategic choice of activities in pursuit of
differentiation or low cost. differentiation and low cost.

19

Books of the 1980‐90s
-” No institution can possibly survive if it
Some background needs geniuses or supermen to manage it.

It must be organized in such a way as toYour Text here
be
Your Text here Your Text here Your Text here

able to get along under a leadership

composed of average human beings”-

21 22

Books of the 1980‐90s BOOK OF THE 1990’s
• Introduced the business world
to rethinking operations.
• Demonstrated how process
redesign can yield
breakthroughs in performance
breakthroughs in performance
Your Text here Your Text here Plus 10,000 rebuttals

• Put the word quot;reengineeringquot; And 20+ books

into the English language.

23 All Rights Reserved 2008@STKI    Moshav Bnei Zion, Israel  +972 9 790 7000 www.stki.info

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BOOK OF 2003
copied: “The Myth of Real Time Information”, HBR 1966
BOOK OF THE 1990’s

Plus 2000+ rebuttals
And 5 books


BOOK OF 2003
copied: “The Myth of Real Time Information”, HBR 1966
Book of 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
•

My own “favorite”
Book of 2005


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Three Laws of Computing:
What now ??? growth rate of network &  computing speed
1,000,000,000,000

• Moore’s Law. 100,000,000,000
10,000,000,000
– Transistors on a single 1,000,000,000
Moore/
chip doubles ~ every 100,000,000 Transistors
18–24 months. 10,000,000
1,000,000
• Gilder s Law.
Gilder’s Law 100,000
Metcalf/
10,000
– Aggregate bandwidth triples Network
1,000 Gilder/
~ every year. Nodes
Bandwidth
100
• Metcalfe’s Law. 10
1
– The value of a network may 1970 1975 1980 1985 1990 1995 2000 2005 2010
grow exponentially with the 2,300 6,000 29,000 275,000 1.2 mil 5.5 mil 42 mil 252 mil 1.344 bil

number of participants. 50 50 56 1,544 45,000 145,000 10 mil 2.43 bil 200.49 bil

4 111 200 10,000 300,000 1 mil 140 mil 3.5 bil 300 bil

Source: Cambridge Energy Resource Associates

Computing and Communication Technologies
Disruptive technologies Evolution: 1960‐2010!
• Introduction of the IBM Mainframe ( 1960’s)

Cloud
• Introduction of the Apple II (1978), IBM PC (1981), TCP/IP (1980’s), C/S
Computing
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),
Cloud Computing (2008), METAweb (2008)

Centralised Decentralised

Control

Cloud Computing What is Cloud Computing?
1. data and services reside in massively scalable data
centers
2. accessed from any connected devices over the
internet.

A. IBM Introduces 'Blue Cloud' Computing CIO Today ‐ Nov 15 2007
B. IBM, EU Launch RESERVOIR Research Initiative for Cloud Computing
IT News Online ‐ Feb 7 2008
C. Google and Salesforce.com in cloud computing deal
Siliconrepublic.com ‐ Apr 14 2008 Web 2.0-
enabled PCs, Businesses,
4+ billion phones by 2010
TVs, etc. from startups
to enterprises
35

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Cloud Computing Architecture
Wisdom of Clouds : quot;cloud computingquot;
What's revolutionary is not cloud computing itself Apache
but how the pieces have come together to
make doing business in the cloud seem increasingly
like an economic inevitability
Virtual Virtual Virtual Virtual
Machine Machine Machine Machine

Cloud computing i
Cl d Your Text here is a simple concept:
ti il t Your Text here Monitoring Agent
• Software and services are delivered over the Web and Open Source Linux with Xen
through a browser.
Virtualized Infrastructure based on
Data Center – 64 bit X86
• No servers or client software to install. Open Source Linux & Xen
Provisioning Baremetal & Xen VM
Monitoring
• Available anytime, anywhere, from any device
connecting to the Internet Provisioning Application Server
Monitoring DBMS
Manager

Management Stack
37
All Rights Reserved 2008@STKI    Moshav Bnei Zion, Israel  +972 9 790 7000 www.stki.info All Rights Reserved 2008@STKI    Moshav Bnei Zion, Israel  +972 9
790 7000 www.stki.info

39 40

Defining the new world

41

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ABILITIES in an outsourced/automated world OLDENBURG:  The “third” place
• infrastructure makes it possible Time is primarily spent in :
for people to work where they • First (home) place: isolated
• Second (work) place: isolated
want, when they want, how they
• Third places : neutral public space to
want
connect and establish bonds.
• SIX  abilities needed: Big Changes now:
1. Design – Beauty and uniqueness Your Text here Your Text here
• Between 1990-2006: people went to
anonymous locations such as malls
2. Story – More than mere facts
• Starting in 2007: good third place makes
3. Symphony – Seeing the big picture
admission free or cheap (the price of a
4. Empathy – Understanding others cup of coffee), offers comforts, is within
walking distance and draws a group of
5. Play ‐ Enjoyment
regulars.
6. Meaning – Fulfillment

43 44

Neo‐nomads :  new Bedouins flourishing in
Nomad Worker (2008) vs.  Paris Existentialist (1950s)
the coffeehouses of central Israel
Tel-Aviv geek with earphones and
• A new breed of worker, fueled by
laptop in Arcaffe (2008)
caffeine and using the tools of • simultaneously cramming for
modern technology exams, napping, instant-
messaging, researching, reading
• They are typically armed with and discussing, listening to music,
browsing and e mailing
e-mailing
laptops and cell phones, paying for
laptops and cell phones paying for Your Text here Your Text here
Paris existentialist watching the
their office space and Internet
world go by at the café Les Deux
access by buying coffee and muffins Magots (1950s)
• puffing a Gitane, napping and
• This neo‐nomads see themselves
jotting down notes about being
changing the nature of the and nothingness
workplace, if not the world at large.
46

Nomad worker: Nomad worker:
Maslow’s hierarchy of needs Maslow’s hierarchy of needs

All Rights Reserved @STKI    Moshav Bnei Zion, Israel  + +972 9 790 7000 www.stki.info All Rights Reserved @STKI    Moshav Bnei Zion, Israel  + +972 9 790 7000 www.stki.info

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and the effect on IT…….
The Peopleware Ecosystem
Identity Management
WCM
Wireless Security
Composite App.
Framework
SSO Application Servers

Expertise Location EAI
& Mgmt.

Collaboration Web Services
Peopleware
BPM
BAM
E-Forms/Workflow
Directory

E-Learning
Search
Development Tools Business Intelligence

Knowledge Mgmt.
DM

An example:
2007:   the year of my discovery my romantic attachment to my “GPS”

• “SACRED ORDER OF THE EXTERNAL MIND”
I could outsource mental tasks
GPS
Life is a math problem and I have a calculator

• MAGIC OF THE INFORMATION AGE
Not that it allows us to know more • EXTERNALIZE GEOGRAPHIC INFORMATION FROM MY
It really allows us to know less BRAIN
• OUTSOURCE  MAP READING SKILLS
• ALLOW CALCULATION OF DRIVE TIME
51 52

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

53 54

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I have outsourced part of my life
Pinpoints a supermarket in MEXICO ?
to external cognitive servants:
my son is calling from there
• No longer need a • Musical taste:
memory – ITunes
– Google
– Yahoo • Books and others:
– Wikipedia – Amazon

• Personal Information • Social Capital
– Smartphone tells me – LinkedIn
about birthdays, phones,
– Xing
addresses
– Facebook

55 56

And with access to these tools I can answer
“A Pattern Language”, Christopher Alexander ANY question in less then 30 minutes

Each pattern describes a problem that
occurs over and over again in our
environment
Then describes the core of the solution
to that problem, in such a way that
you can use this solution a million Your Text here
Your Text here

times over
Without ever doing it the
same way twice

57 58

A powerful global conversation has begun Companies wake up !!!!!!!
• Through the Internet, people are discovering and Customers are:
inventing new ways to share relevant knowledge
writing about products on blogs
•
with blinding speed. JOSH BERNOFF CHARLENE LI

recutting commercials on YouTube
•
• Networked markets are beginning to self‐organize
defining companies on Wikipedia
•
faster than the companies that have traditionally
gggp
ganging up in social networking sites
g
•
served them.
served them.
like Facebook
• As a direct result and thanks to the web, markets
are becoming better informed, smarter, and more
demanding of qualities missing from most business
organizations.
• markets are getting smarter and getting smarter MOST COMPANIES SEE IT AS A THREAT
faster than most companies

59 60

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Social Technographics™
METAweb
Josh Bernoff, co‐author of Groundswell

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

62

METAweb
METAweb pushes need for “new CIO”

Innovation

METAweb

Time
64

METAweb  definition: METAweb site has 7 basics:
leverage customer-self service and 1. Services, not packaged software, with cost-
effective scalability
algorithmic data management to 2. Control over unique, hard-to-recreate data
sources that get richer as more people use
reach out to the entire web, to the them
3.
3 Trusting users as co developers
co-developers
edges and not just the center, to the
Your Text here Your Text here Your Text here Your Text here
4. Harnessing collective intelligence
5. Leveraging the long tail through customer self-
long tail and not just the head
service
6. Software above the level of a single device
7. Lightweight user interfaces, development
models, AND business models
65 66

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METAweb: user
Average person:
Banks YOUtube Business
10‐15 intimate
Simulations
Insurance Slideshare
150 social
Training
Travel Blogs
500‐1500 weak
Second Life
“Amazon” Newspapers
links
Sales
“e‐bay” WIKIPEDIA

Social Sites
Game Sites
Transaction Sites Multimedia Sites

Websites can
no longer be
islands
Users want
bridges
elsewhere 67 68

http://labs.google.com/
Google versus ???
Humanity emits the data (words, pictures, clicks,
and searches are the raw material)
Handful of cloud-wielding Internet giants like
Google, Yahoo! or Amazon.com transform the info
into insights, services, and, ultimately, revenue.

69

Why does it bother me ? Cloud Computing

A. IBM Introduces 'Blue Cloud' Computing CIO Today ‐ Nov 15 2007
B. IBM, EU Launch RESERVOIR Research Initiative for Cloud Computing
IT News Online ‐ Feb 7 2008
C. Google and Salesforce.com in cloud computing deal
Siliconrepublic.com ‐ Apr 14 2008

72

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Google 10 years of innovation
Google ad Core Search Ads Monetization Communications Collaboration ?

?
1998
1995 2000 2003 2004 2005 2007

74

Internet 2  is not  Web 2 WEB 2 are WEB  Technologies

75 76

Leveraging the Web for
Internet2: 2.4 Gbps plumbing Measureable Business Results

• Gone are the days when
merely having an online
presence was a
business breakthrough.
• Today's companies
MUST leverage the
power of the Web if
they're to gain and
maintain a competitive
advantage.
77 78

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STKI Company Confidential for 6/14/2008