1 / 18

IT’s Changing Destiny Evolving IT Investment Drivers and Technology Cycles

IT’s Changing Destiny Evolving IT Investment Drivers and Technology Cycles. High. Era IV: IT Reshaping Business Models. The Rules. Ubiquitous Computing. IT Impact On Business Structure. Era III: Value Creation and Business Effectiveness. Internet/Network Computing.

yen-kelley
Télécharger la présentation

IT’s Changing Destiny Evolving IT Investment Drivers and Technology Cycles

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. IT’s Changing Destiny Evolving IT Investment Drivers and Technology Cycles High Era IV: IT Reshaping Business Models The Rules Ubiquitous Computing IT Impact On Business Structure Era III: Value Creation and Business Effectiveness Internet/Network Computing Era II: Productivity and End-User Empowerment Client/Server Computing Era I: Automation, Cost Control and Efficiency Mainframe/Midrange Computing Low 1950 1960 1970 1980 1990 2000 2010 2020

  2. The Emerging EC Business Model From Infrastructure to Extrastructure Demand A New Business Model Is Emerging Customers Are Demanding ... More Convenience New Channels Hybrid Products Lower Cost The Internet Is Accelerating... Communication Collaboration Commerce The Virtual Enterprise The Physical Enterprise Supply Business Is Driving ... Deregulation Globalization Core Competence Centricity Innovation The Internet is Breaking All Commerce Paradigms!

  3. The “Plug and Play” Virtual Organization • Competitive Differentiators • Market Agility • Organizational Flexibility • Speed/Time to Market • Customer Intimacy • Critical Business Challenges • Emerging Business Models • External Interdependencies • Redefining Roles/Functions • Inventing New Business Processes External Inputs Suppliers Business Partners Industry Networks Enterprise “Mother-Board” Internal Inputs/ Functions • Critical IT Challenges • Application Integration • Application Sourcing- Build vs. Buy vs. Outsource • Market Intelligence & Knowledge Transfer • Efficient Infrastructure Management • Bulletproof Security and Privacy Sales & Marketing Customer Service Product Creation Market Place Dynamics Finance and Operations Process Outsourcing Product Fulfillment Customer Group A Customer Group B

  4. E-Commerce Across Industry Segments Investment by Leaders Banking Entertainment Telecom Healthcare Consumer Prod. Manufacturing Home Services Advertising Logistics Travel Book Selling Transportation Retail Grocery Office Supplies Electric Utilities Publishing Automotive Manufacturing X-Mart Government Services Retail Dry Goods Recreation and Leisure Cards and Gifts Stock Trading Gaming EC will impact marketing, selling and customer service EC will impact structure of offerings and how delivered EC will restructure the entire industry Information as a Percent of the Total Offering

  5. Worldwide Year 2000 Predictions Potential “Failure” Rates by Industry and by Country By Country Australia, Belgium, Bermuda, Canada, Denmark, Holland, Ireland, Israel, Switzerland, Sweden, U.K., U.S.A. Brazil, Chile, Finland, France, Hungary, Italy, Mexico, New Zealand, Norway, Peru, Portugal, Singapore, South Korea, Spain, Taiwan Argentina, Armenia, Austria, Bulgaria, Columbia, Czech Republic, Egypt, Germany, Guatemala, India, Japan, Jordan, Kuwait, Malaysia, Poland, Puerto Rico, Saudi Arabia, South Africa, Sri Lanka, Thailand, Turkey, U.A.E., Venezuela, Yugoslavia Afghanistan, Bahrain, Bangladesh, Cambodia, Chad, China, Costa Rica, Ecuador, El Salvador, Ethiopia, Fiji, Indonesia, Kenya, Laos, Lithuania, Morocco, Mozambique, Nepal, Nigeria, Pakistan, Philippines, Romania, Russia, Somalia, Sudan, Uruguay, Vietnam, Zaire, Zimbabwe By Industry Aerospace, Banking, Computer Manufacturing, Insurance, Investment Services, Pharmaceuticals Biotechnology, Chemical Processing, Consulting, Discrete Manufacturing, Heavy Equipment, Medical Equipment, Publishing, Semiconductor, Software, Telecom, Power, Water Broadcast News, Hospitality, Food Processing, Law Enforcement, Law Practices, Medical Practices, Natural Gas, Ocean Shipping, Pulp & Paper, Television, Transportation City & Town Municipal Services, Construction, Education, Farming, Government Agencies, Healthcare, Oil 1 2 3 4 15% 33% 50% 66% Note: A “failure” is defined as an interruption of a mission-critical business process, with unknown severity or duration, occurring between 1Q99 and the end of 2Q00.

  6. CIO Priorities: Top 10 Technology Issues Asia/Pacific Europe North America 1999 Build “Net” Capabilities E-Commerce Applications Installing Enterpr. Packages Effective Network Mgmt. Y2K Testing/Remediation (tie) E-Commerce Infrastr. (tie) 1999 Build “Net” Capabilities Test Year 2000 Problem Improved Service Levels Exploring E-Commerce Refurbishing Legacy Apps. 1999 Build “Net” Capabilities Exploiting Data (Mining/Wareh) Test Year 2000 Problem Build IT Infrastructure Install Packaged Bus. Apps. 2000-2004 Extranet, Intranet, Internet E-Commerce Infrastructure Packaged Apps. Transitions Multiplatform Integration NT Deployment Strategies Security & Privacy Network (reliable/low-cost infra.) Middleware/Messaging Collaborative Computing Data Mining/Warehousing 2000-2004 Packaged Apps. Transitions Workplace Transformation Mobile/Remote Access Multiplatform Integration E-Commerce Exploitation Security & Privacy Exploiting Data (Mining/Wareh.) Distrib. Process Mgmt. Workflow Network (reliable/low-cost infra.) 2000-2004 E-Commerce and ”Net” Infrastructure Packaged Apps. Transitions NT Deployment/Integration Mobile/Remote Access/PDA Security & Privacy Network (reliable/low-cost infra.) Consumer Prod. Integration Middleware/Messaging Exploiting Data (Mining/Wareh.) User Interface Evolution Note: 1996-1999 lists of top CIO issues based on survey work with European, North American, Asia/Pacific and Latin American commercial clients of GartnerGroup’s IT Executive Program (ITEP) -- which at year-end 1998 totaled more than 900 members worldwide. 2000-2004 top CIO issues based on GartnerGroup forecast.

  7. Business Impact of Technology Discontinuities Spontaneous Networked Contextual 2007–> 2003–2006 1997–2002 Wireless LAN/WAN Speech/Natural Language Dialogues Agent Intermediaries Wearables Any Time Access Multitasking Mobile Decision Support Point-of-Need Access Untethered Culture Technology Discontin- uities Network Computing Architectures Location Transparency Speech Recognition for Telephony Connection Interrupt-Driven Just-in-Time Information Delivery Consumer Web Access Network Access and Speed Flat-Screen Displays “Always-On” Devices Automatic Platform Adjustment “Follow-Me” Profiles Synchronization Microtasking Mobile Information Access Broad Consumer Interactive Access Device Management Impact Issues

  8. Technology Directions: Platform Infrastructure 1999-2004 Potential 2004 Forecast(P=0.7)ImplicationsSurprises (P=0.3) Client - One primary device for bus. - Continued shift - MSFT broken up (P=0.2); prof. (Wintel 90% + share) from cost of purchase - Non-MSFT and/or browser- - Explosion in mobile and to cost of support based clients grab 30%+ mass access devices - TCO continues to rise share - NC’s gains 20% share (but mostly as terminal replacemts) Server - 70% of new apps target NT, - ISV support of non-NT - IA64 and/or MSFT with 15% Solaris, HP/UX or MVS platforms withers schedules slip over a - NT remains behind Unix/MVS - Management of heterogeneous year causing severe impact for large, complex, mission- platforms remain huge concern on new apps deployment critical environments Network- 20% of enterprise WAN - Multi-vendor networking - Wireless grows from less traffic bought in converged declines; 6-7 major telco than 5% of traffic in ‘99 to (voice, video, data) format carriers W/W; 4 major to 15% in ‘04 - Policy-based management equipment “camps” - Telecommuting backlash - 10X LAN; 3X WAN Growth (Lucent, Cisco, Siemens, Nortel) Storage - Storage uses 65% of apps. - SAN technology becomes - SAN interoperability issues server deployment capital critical component of are not resolved, resulting (driven by storage growth) application and server in permanent loss of vendor - Storage mgmt. moves management /scalability leverage, higher acquisition from server to intelligent costs and higher storage storage-area networks (SANs) TCO

  9. Technology Directions: Application Infrastructure 1999-2004 Potential 2004 Forecast (P=0.7)ImplicationsSurprises (P=0.3) Electronic- Platform adjustment and “follow - TCO linkages critical - 50% of med/large enterp. Workplaceme” profiles emerge for nomads - Infrastructure, Infrastructure! recentralize personal apps; - Enterprise portals provide role- - Human impact (info glut, “3270” rules (p=0.2)! based access to bus. apps. queue mgmt.) - Bleaching the blue collar - Intuitive design supercedes -Integration with enterprise - Internet implodes under content richness for New Media apps an imperative its own weight (p=0.1), Application - 60% of AD performed by ESPs - No AD silver bullet - Backlash against “vanilla” Development- Internal AD skills: 3GLs 40%; - “Mass or focus” defines packages/templates; return 4GLs 30%; OO/Java/Web 30% enterprise AD strategy to “build” strategy (60% - Integration is the new AD - Procurement/contract mgmt. share of AD) - Regulation and new acct. rules key AD competency drastically change AD economics Middleware/- DBMS and OTM converge - 3-4 dominant middleware - Internet as the final Database - Messaging embedded in OS stacks and message brokers middleware (p=0.2) and/or via packaged apps driven by ESPs and Packaged - 40% of IMS DBMS - Return to NSM point-solutions Apps Vendors apps replaced (p=0.2) Enterprise- 70% of strat. biz app decisions - Big get bigger (top 5 ERP rev. - SAP Implodes Businessare front-office/value chain/CRM share grows to 80% market); - MSFT aggressively enters Applications - New players emerge to address but can’t be all things to all clients low-end enterprise apps emerging trading partner systems - ERP market leadership defined market (HR, Financial Acct), - Web-based consumer demand by vertical expertise gaining 15% share forces 20% of large enterp. to - ERP vendors stumble, but - Siebel becomes ERP/CRM implement a front-office suite to eventually dominate CRM powerhouse (via acquisition) to enable a CRM strategy

  10. Application Integration Zero Latency in the Financial Services Industry Foreign exchange Integrated back office Trading Unix VMS OS/390 Worldwide Information Messaging Pipeline Risk operational data store Trading risk system Unix Online risk analysis • Internal Application Integration Issues: • Batch window goes away (Zero Latency); stale info no longer possible • Data consistency issues • Operational data stores • TCO • External Application Integration Issues: • How best to provide access to external clients and customers, and between customers/suppliers • Shared applications between and among a trading community • Licensing and TCO issues

  11. Infrastructure Applications Frontier Applications Type C - IT Supported Type C - IT Supported Type B - IT Enabled Type B - IT Enabled Type A - IT Centric Type A - IT Centric Months 36 48 60 Months 12 24 36 • - Improve Cost Structure - • Indirect cost reduction • - NSM & IT asset mgmt. tools • - Market Changing Applications - • Revenue; business creation • - E-commerce Utility Applications Enhancement Applications Type C - IT Supported Type C - IT Supported Type B - IT Enabled Type B - IT Enabled Type A - IT Centric Type A - IT Centric Months 36 60 84 Months 24 36 48 • - Automate Manual Processes- • Reduce direct costs • - General ledger • - Improve Enterprise Returns - • Higher margins • - Logistics; Data warehousing Application Sourcing: Build vs Buy vs Outsource The New Software Capitalization Guidelines

  12. Effective Market Intelligence Knowledge Management Value Framework KM Business Drivers Strategy Choice % of Assets in Intellectual Capital • Infoglut • ROI on Intellectual Capital • Competitive Environment • Response Time Compression • Resource Crisis • Chaos and Complexity High Low Knowledge- Knowledge- Focused Enabled Business Business Strategy Strategy Applications Business Outcomes • Best Practice Sharing • Problem Resolution • Customer Retention • Revenue Generation • Productivity • Others • Measurable Results • Attack KM Business Drivers • Culture of Collaboration • Culture of Innovation

  13. Enterprise View of IT Value TCO Impact IT Asset Management Operations Management Stage 45% Automation 1. Infrastructure Implementation 15% Raise Acquisition Deployment ‘99 ‘04 Reactive Efficiency 50% 50% Monitoring & Problem Resolution 2. Infrastructure Utilization Control Inventory ‘99 ‘04 Proactive Productivity 3. Infrastructure Optimization Technology Life Cycle Mgmt. Configuration & Change Mgmt. Lower Facilitate Value Creation 5% <1% 4. Infrastructure Synchronization Not Applicable Technology Resource Mgmt. Service Mgmt. ‘99 ‘04 The Four Stages of Infrastructure Resource Mgmt. IRM Deployment Status (% of G2000) 30% 4% ‘99 ‘04

  14. Information Security Stakeholders Regulators Media Security Call center Legal Executive Management DBMS Marketing ERP/AD HR Networking E-commerce Auditors Customers Shareholders Insurers

  15. CIO Priorities: Top 10 Management Issues Asia/Pacific Europe North America 1999 Solve Year 2000 Problems IT/Business Strat. Planning Align IT & Business Goals Reducing IT Costs Measuring IT (Value/Efficiency) 1999 Solve Year 2000 Problems Reducing IT Costs Measuring IT (Value/Efficiency) IT Organization (Cross Border) Project Management (tie) Alignmt./CIO Reports to...(tie) 1999 Lead the IT/Business Planning Process Solve Year 2000 Problems Align IT & Business Goals Recruit & Retain IT Staff Manage IT Efficiency 2000-2004 Business/IT Fusion IT Skills (Recruit, Retain, Reskill) Business Continuity Extracting Business Value IT Governance/Organization “Sourcing” Management Reducing IT Infrastr. Costs M&A (in)Digestion (infra, staff) Data to Info. Mgmt. Knowledge Exploitation 2000-2004 M&A (in)Digestion (infra, staff) Evolving IT’s Role (How used, how involved?) Revitalizing Existing IS Staff “Sourcing” Management Adapting to EuroLand Long-term Funding Better Metrics (effect, contrib) Process & Project Mgmt. Using Information Effectively IT Skills (Recruit, Retain, Reskill) 2000-2004 Business/IT Fusion Demonstrating Bus. Value “Sourcing” Mgmt. (IT services) Reducing IT Costs (infra, staff) Business Event and/or Process Outsourcing IT Skills (Recruit, Retain, Reskill) IT Governance/Organization Process/Project Mgmt. M&A (in)Digestion (infra, staff) Knowledge Exploitation Note: 1996-1999 lists of top CIO issues based on survey work with European, North American, Asia/Pacific and Latin American commercial clients of GartnerGroup’s IT Executive Program (ITEP) -- which at year-end 1998 totaled more than 900 members worldwide. 2000-2004 top CIO issues based on GartnerGroup forecast.

  16. Business Value • Business Process Improvement • Organizational Alignment • Customer Service • Competitive Position • Employee Productivity • User Interface, Usability • Access to Corporate Data Total Cost Technology Communications User Labor Training,Services IT Labor • Broker of Services • Selective Outsourcing • Modular Organizations Role-based Shared Services Hybrids (Central/Decentral) Centralized Organizational Structure ‘60s ‘80s ‘90s ‘00s ‘70s IT Management Trends IT Management Trends • IT Planning/Risk Management • Architecture and Standards • Resource and Skills Management • Program and Project Management • Customer/Relationship Management • Information/Data Management • Vendor (and ESP) Management • Asset/Financial Management • Contract Management IS Core Competencies Business Value vs Total Cost • Technology • Infrastructure • Type • Cost • Age • Support • Contracts • Terms & Conditions • Scalability • Termination • Applications • Portfolio • Functionality • Technology • Interfaces • Valuation • Age • Support • Staff • Skills • Compensation • Geography • Contracts • M&A Plan • People • Technology • Financials • Schedules M&A Planning, Due Diligence and Integration IS Organizational Evolution

  17. Non-IT Staff 100% - Business users 90% 80% - Business process outsourcers 70% External IT Staff - Systems integrators, 60% consultants 50% - Infrastructure outsourcers 40% 30% IT Skills and Sourcing Trends - Contract employees 20% - Decentralized IS staff 10% Internal IT Staff - Central IS staff 0% 1998 2001 2003 Sources of IT Skills “Strategic Alignment” Time Line Service/ Solution “We shop at the PWC mall” 2000 Application “We’re an SAP shop” 1990 Middleware “We’re an Oracle shop” 1980 1970 Platform “We’re an IBM shop” 1960 ESPs as “Channel Masters” • Establish clear goals with strong consensus • Create “supporting” terms and conditions • Define “relative” service level agreements • Develop effective measurements and metrics • Conduct periodic performance audits • Demand continuous improvement! • Aggressively monitor and manage Solution Shareholder Value ROT Business Integration ROA ROI TCO Cost Support Product Utility Technology Integration A “Step-by-Step” Approach Shifting ESP LandscapeCreating and Sustaining Market Differentiation Effectively Leveraging ESPs

More Related