Stki 2010 Cio Bootcamp

1/29/2010
2010 CIO BOOTCAMP
WHAT A YEAR IT WILL BE:

CAN WE FIND THE RIGHT BALANCE
Dr. Jimmy Schwarzkopf

Research Fellow
jimmy@stki.info
Dr. Jimmy Schwarzkopf’s work Copyright 2009©STKI Dr. Jimmy Schwarzkopf’s work Copyright 2009©STKI
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Digital Disruption: Mother of all Disruptions

Globalization and Technology
1 – 2010 AD
“Globalization and technology together

are creating the potential for startling
Internet changes in how we do our jobs and
Revolution the offices we do them in.
Computer
Revolution “Wealth in the new…the
economy flows
rapid growth directly
of broader,
richernot
from innovation, channels of
optimization”
“Industrial
Information
communication – including virtual
Kevin Kelly
Industrial
Revolution Economy” worlds – is transforming what it
Wired Magazine
means to be at work.”
Source: http://upload.wikimedia.org/wikipedia/commons/3/31/World_GDP_Capita_1-2003_A.D.png
Business Week
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Is this innovation ????
Microsoft CEO Steve Ballmer : CES keynote speech 6/1/2010
-"The fact of the matter is, this is not

a downturn, this is a bit of a reset”-
Virtually free and unlimited:

bandwidth and storage “Waste Transistors”
• 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
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“Waste Storage” “Waste Bandwidth”
“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?)
The Abundance of Choice
Scarcity
Abundance
The Market Has Changed

Scarcity Abundance
We So now,
Have we buy
only
everything
what
we
we
NEED WANT
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Scarcity Abundance Scarcity Abundance
“Permission Marketing”
The way
we market
Biggest and our
change of products
all and
services
“Permission Marketing” is the opposite of

“Interruption” Marketing
What is our first question?
It doesn’t interrupt people’s time, space
or peace of mind
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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 What is happening today?
and making a sale
Disruptive Innovations
We may be at one
of those moments now:
Industrial Information Technologies
SPEED SCALE SENSORS

Infinite bandwidth r
Unprecedented New kinds of data
and going for real- processing power and data analysis
time data and storage sizes
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.
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Winners and losers: who now?
Innovation: CIO Agenda?

Forgetting Assumptions
Trends that will Shape the Digital

World over the Next Decade
Technology adoption life cycle Business Event Processing

Industrial Information Technologies: Every 20 years a new
disruptive
Business Event Processing innovation changes 2010s
the way we do IT
Data Center Management
Cloud Computing
Industry in a Box 1990s
Mobile
Web 3 Mass
Market
Early Late 1970s
Adoption Adopters
Adopters The
Chasm
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Adapted from Geoffrey Moore’s “Crossing the Chasm”
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1/29/2010
Business Event Processing Business Event Processing
Business Event Processing:

when and what
The IT ecosystem: Balancing Act
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1/29/2010
Risk related to “cost cutting”
Standardized Equipment
2009: one of the worst years in history
Economies Of Scale
100s different
Energy waste Software
products
30% max in 25%

Storage utilization
Utilization x86 servers
Ala-carte
telecomm Hundreds of
services Enterprise
Processes
45 46 * From SYMANTEC
What do we expect by 2011 Computing Platform Lifecycle

Service Delivery
Operational
Service Mgmt Financial Mgmt
Governance and
Service Support
Risk Mgmt
Resource Mgmt
IT Prjct & Prtf Mgmt
Service Automation
IT Asset Mgmt
 IT alignment
Governance  Cost transparency
CMBD  Cost mgmt
 Risk mgmt
 Supplier mgmt
Dr. Jimmy Schwarzkopf’s work Copyright 2009©STKI
 Contract mgmt Dr. Jimmy Schwarzkopf’s work Copyright 2009©STKI
47  HR mgmt 48
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1/29/2010
1980 -2010 Platform Lifecycle Industry in a Box Companies
49 50
What’s under the hood What’s under the hood 2
Virtual Connect
virtualized
LAN and SAN
connections
StorageWorks Insight
EVA SAN Software
(Note: Matrix supports Capacity Planning
any c-Class certified Orchestration
FC SAN target) Disaster Recovery
All-in-One
Services, plus Integrity and
ProLiant iCAP and ProLiant
pay as you grow blade servers
financing
A huge paradigm shift is underway
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1/29/2010
Cloud Service Layers Example: Desktop Cloud

Providers
Service
Service Users
Cloud End-User Services
(SaaS)
Cloud Platform Services (PaaS)

Cloud Providers
Cloud Infrastructure Services (IaaS)
Physical
Infrastructure
Cloud Computing: Application Models

Delegating the Power to the Cloud
On Demand
Printing CPUs
Service
CRM
User Service Data
Office
Apps Storage
Service
Cloud
Enterprise Provider #1
Cloud
Provider #2 Backup
Service
Employee Service
Service
ILM
Service
Service
Service 3
Business
Apps/Service
Internal Cloud …
…
The
Internet
… Dr. Jimmy Schwarzkopf’s work Copyright 2009©STKI
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59
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1/29/2010
What is Amazon ?
If looks could kill
“Man is the creator of change in this world.

As such he should be above systems and
structures, and not subordinate to them.”
63
3 trends that will Shape the Digital World over the Next Decade
“Wealth in the new economy flows directly
from innovation, not optimization”
Kevin Kelly
Wired Magazine
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1/29/2010
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 64-128
GB
Microsoft
iSlate:
iPhone Israeli Ecosystem:

1+ million devices and 100,000 applications
72
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Example of applications
74
Starbucks iPhone app Finance Applications
Your Text here Your Text here
75 76
Other ecosystems: blackberry
77
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Google Wave Google into other things?
Crome OS
Nexus 1 Android
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Three models for mass behavior Croudsourcing: Markets 2.0

1841 2004 1984
• Traditional market 1.0 model: Traditional Market 1.0 Model

central organization serving many
individuals
– Large-scale impersonal markets
– Low preference expression
Market 2.0 Models
Mass folly: Collective judgment: Emergent: • Market 2.0 model: flexible dynamic
• Real opportunity • Cooperative space • Complex systems capital allocation systems that provide
• Excitement • Diverse participants • Maths, physics democratic, more immediate, low-cost,
• Greed • Honest participation • Cellular automata affinity-directed capital Many: One
• Speculation • Opinion independence • Biology, evolution Peer finance
• Corruption • Organizational dynamics – Benefits to individuals: freedom, One: Many

• Equality of opinion Affinity purchasing
• Fear/panic • Social systems convenience, preferences articulation

• Clear tasks
• Collapse • Accepted rules • Network dynamics – Benefits to groups: virtual aggregation
• Restoration • System confidence • Adaptation, robustness of group power to conduct transactions Many: Many
Prediction markets
Peer philanthropy
85
WEB 1.0: Media companies put content in the WEB 2.0: New platforms allow users to
.
web and push it to users generate content themselves
Low content variety
Content production is slow and expensive
User generated content High content variety
Blogs, videos, photos, music etc. dramatically increases, while
technical quality goes down.
Professional authors Managers

Create content based on what they Hand-manage publishing
Authoring platforms
think people want businesses enable everyone to publish!
Push! Push! Web2.0 managers

are hand-managing the
platforms
Professional authors
can still publish, but are competing
with – everyone!
Users = consumers
Users consume professionally
produced content Users = authors
users generate content
METAweb (web 3): Business platforms empower

everyone to become a (media) entrepreneur
So what are the differences ?
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
web1.0
web2.0
METAweb
Creation Delivery Management
Authoring platforms Business platforms

enable everyone to publish! Everyone can manage
Publish Build business
Users = entrepreneurs
users generate business!
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1/29/2010
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?
Study by Prof. Granovetter shows that

weak links are better than strong
• Strong Links: More
motivation to help you,
since they know you
better
•Weak Links : Likely less
overlap with leads you
can easily get elsewhere
Most job referrals come

through those who we
see rarely: old school
friends, former co-
workers, etc.
93
Enterprise social software is growing… …but we’re creating a new set of silos.
Book- Micro
Blogs Photos
marks blogs
blogs forums microblogging
Wikis Video Pod

Forums casts
video wikis
social bookmarking podcasts photos

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1/29/2010
Tying together enterprise social software

What do I use ????
• No longer need a • Blogs:

memory • IT related
Blogs – Google • Economics
Book
marks
Forums
– Yahoo • Musical taste:
– Wikipedia – ITunes
– Twitter • Books and others:
Wikis
New “family”
Micro
blogs
– Amazon
• Personal Information • Social Capital
of products
– Smartphone tells me – LinkedIn
about birthdays, phones, – groups
Video Pod addresses
casts – Xing
Photos
– Facebook
98
What do you use ?
Social
Technographics™
Josh Bernoff, co-
author of Groundswell
010
Thank you
Dr. Jimmy Schwarzkopf
101
17

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1/29/2010

2010 CIO BOOTCAMP

WHAT A YEAR IT WILL BE:

Dr. Jimmy Schwarzkopf

Digital Disruption: Mother of all Disruptions

“Globalization and technology together

Is this innovation ????

Microsoft CEO Steve Ballmer : CES keynote speech 6/1/2010

-"The fact of the matter is, this is not

Virtually free and unlimited:

“Waste Storage” “Waste Bandwidth”

“Over 2775.261837 megabytes (and counting) of free

(Remember “Your mailbox is full”? What

The Abundance of Choice

The Market Has Changed

Scarcity Abundance Scarcity Abundance

“Permission Marketing” is the opposite of

So only the people who

and making a sale

SPEED SCALE SENSORS

When will have Industrial Revolution

The Austin 7 was produced

The Karl Benz Patent Motorwagen (or

Winners and losers: who now?

Innovation: CIO Agenda?

Trends that will Shape the Digital

Technology adoption life cycle Business Event Processing

Business Event Processing Business Event Processing

Business Event Processing:

The IT ecosystem: Balancing Act

Risk related to “cost cutting”

30% max in 25%

What do we expect by 2011 Computing Platform Lifecycle

1980 -2010 Platform Lifecycle Industry in a Box Companies

What’s under the hood What’s under the hood 2

A huge paradigm shift is underway

Cloud Service Layers Example: Desktop Cloud

Cloud Platform Services (PaaS)

Cloud Infrastructure Services (IaaS)

Cloud Computing: Application Models

If looks could kill

“Man is the creator of change in this world.

Platform vs. Open vs. Reliable

iPhone Israeli Ecosystem:

Starbucks iPhone app Finance Applications

Your Text here Your Text here

Other ecosystems: blackberry

Google Wave Google into other things?

Three models for mass behavior Croudsourcing: Markets 2.0

• Traditional market 1.0 model: Traditional Market 1.0 Model

• Corruption • Organizational dynamics – Benefits to individuals: freedom, One: Many

• Fear/panic • Social systems convenience, preferences articulation

Professional authors Managers

Push! Push! Web2.0 managers

METAweb (web 3): Business platforms empower

Authoring platforms Business platforms

Publish Build business

Tribes: a group of people connected to one

Study by Prof. Granovetter shows that

Most job referrals come

Wikis Video Pod

social bookmarking podcasts photos

Tying together enterprise social software