IT Everywhere:Opportunities & Challenges

Professor N. Venkat VenkatramanBoston University School of Management

April 2013

IT Everywhere: Opportunities & Challenges

Five Webs & Three Horizons

Sales Eminence @ IBM

1995

19952015

Why do SUCCESSFUL companies die?

Why do SUCCESSFUL companies die?

Core Competency

Why do SUCCESSFUL companies die?

Core Competency

Competency Trap

Role of IT Within YOUR Client Organizations

Implementation

IT/ISManagers

Implementation

IT/ISManagers

CostCenter

Innovation

BusinessManagers

Implementation

IT/ISManagers

CostCenter

Implementation

IT/ISManagers

CostCenter

1. What’s their mandate?2. What are their capabilities?3. What’s their sourcing logic?4. What are their performance metrics?

Moore’sLaw

Metcalfe’sLaw

BandwidthLaw

Moore’sLaw

Metcalfe’sLaw

BandwidthLaw

Compute Connect

Cloud

BusinessValue

Moore’sLaw

Metcalfe’sLaw

BandwidthLaw

Compute Connect

Cloud

Implementation

IT/ISManagers

CostCenter

Innovation

BusinessManagers

Implementation

IT/ISManagers

CostCenter

Innovation

ProfitCenter

BusinessManagers

Implementation

IT/ISManagers

CostCenter

Innovation

ProfitCenter

GrowthCenter

BusinessManagers

Implementation

IT/ISManagers

CostCenter

Innovation

ProfitCenter

GrowthCenter

InvestCenter

BusinessManagers

Implementation

IT/ISManagers

CostCenter

Innovation

ProfitCenter

GrowthCenter

InvestCenter

ClientRole

BusinessManagers

Their Business

DigitalTheir Business

5 WebsMobileWeb

SocialWeb

MediaWeb

MachineWeb

RealtimeWeb

Opportunities

Challenges

5 WebsMobileWeb

SocialWeb

MediaWeb

MachineWeb

RealtimeWeb

1. Machine Web

1

1

Tiny Operating System (OS) for Glass (!)

API for Glass App Ecosystems

Role of PartnersSeeking New Value Frontiers

Tiny Operating System (OS) for Glass (!)

API for Glass App Ecosystems

Role of PartnersSeeking New Value Frontiers

What strategic questions for your clients from this example?

Automobile“Computer on Wheels Connected to the Internet”

2

Remote Door Unlock

Remote Start

Remote Car Slow Down (via police)

Ford Sync | With Microsoft

“Cars as Computers Connected to the Networkwith Software API....”

Built-inApps

Brought-inApps

Beamed-inApps

Ford Automobiles

Ford Consumers

Ford Dealers“AutomobileArchitecture”

3

Why is it Relevant for Your Client?

What do increased sensors & internet of things mean for your clients?

How could they utilize it for competitive advantage?

1

2

2. Mobile Web

2. Mobile Web

6.8 billion Subscriptions

~ 2 Billion Smartphones

“Leaders” “Challengers”2007

“Leaders” “Challengers”2007

“Leaders” “Challengers”2013

“Leaders” “Challengers”2013

Apple iPad Sales in Units (Millions)

Cumulative Sales of over120 Million Units

0

7.5

15

22.5

30

2010 (Q3) 2011 (Q1) 2011 (Q3) 2012 (Q1) 2012 (Q3) 2013 (Q1)

22.86

14.04

17.04

11.8

15.43

11.129.25

4.69

7.33

4.13.27

Apple iPad Sales in Units (Millions)

Cumulative Sales of over120 Million Units

“We are in the Post-PC World”

Apps 775,000 700,000

Downloads 40 Billion 25 Billion

January 2013

Competing in the Post-PC World

New Form Factors& New Interfaces

Google Glass API

Healthcare

Retail Finance

Media &Entertainment

EnergyTransportation

Education

Communications

ConsumerHealthApps

Gamification forMedical Adherence

Energy Sector

Retail Finance

Apps | Magazines & Newspapers

Apps | Magazines & Newspapers

Apps | Television Shows

Why is it Relevant for Your Client?

Every sector will be impacted by mobile web.

What’s their strategic roadmap for mobile web?

1

2

3. Social Web

1+ Billion Facebook Users

50% Log on Everyday

700 minutes per month per user

30 Billion pieces of content shared each month

55 million status updates everyday

70 percent outside

USA 1 million developers

from over 180 countries

~50% Log on using mobile devices

Timeline Social Apps

Social Search Phone

Timeline Social Apps

Social Search Phone

Timeline Social Apps

Social Search Phone

Timeline Social Apps

Social Search Phone

Timeline Social Apps

Social Search Phone

Timeline Social Apps

Social Search Phone

Social Web

McKinsey Study (2012)

Why Should Your Clients Careabout Social Web?

1.5 billion social networking users globally; 80% interact

regularly

McKinsey Study (2012)

Why Should Your Clients Careabout Social Web?

1.5 billion social networking users globally; 80% interact

regularly

70% of Companies use social technologies; 90%

report some business benefit from them

McKinsey Study (2012)

Why Should Your Clients Careabout Social Web?

1.5 billion social networking users globally; 80% interact

regularly

70% of Companies use social technologies; 90%

report some business benefit from them

$1 + trillion in value creation through social web;

20-25% improvement in knowledge worker

productivityMcKinsey Study (2012)

Why Should Your Clients Careabout Social Web?

“B2B2C”

E2E E2C

C2E C2C

“Employees”

“Employees”

“Customers”

“Customers”

Why is it Relevant for Your Client?

4. Media Web

• 4 billion hours of video watched each month

• 1 billion monthly unique visitors

• 72 hours of videos uploaded every minute

• 70% of traffic outside USA

• In 2011, 1 trillion views (!)

• 25% of views on mobile devices

• 98% of AdAge’s top 100 advertisers run campaigns

+

Some Popular YouTube Channels

B2C B2B2C

Media Web Disrupts BusinessModels

Media Web is Evolving.....

Why is it Relevant for Your Client?

Does Your Client Have a YouTube Channel?

What data are you analyzing from their YouTube Channel?

1

2

How could media web disrupt & transform their business?

3

5. Real Time Web

Tweeting and Retweeting about the Japanese natural disaster

60 Minutes AfterEarthquake

March 11, 2011Source: Twitter

Tweeting and Retweeting about the Japanese natural disaster

60 Minutes AfterEarthquake

March 11, 2011Source: Twitter

Why is it Relevant for Your Client?

Does your client monitor tweets about products/services?

What data are they analyzing from the Twitter-verse?

1

2

Order in next 2 Hours to get it

by......

Order in next 3 Hours to get it

by......

Number in stock.....

Decision Cockpits

Data Information Knowledge Action Results

Realtime WebBig Data | Analytics | Business Results

{SystemGap}

{ExpertiseGap}

{ProcessGap}

{ExecutionGap}

5 WebsMobileWeb

SocialWeb

MediaWeb

MachineWeb

RealtimeWeb

Why Do We Care?

5 WebsMobileWeb

SocialWeb

MediaWeb

MachineWeb

RealtimeWeb

Product Design

Process Architecture

Service Delivery

Why Do We Care?

MobileWeb

SocialWeb

MediaWeb

MachineWeb

RealtimeWeb

MobileWeb

SocialWeb

MediaWeb

MachineWeb

RealtimeWeb

MobileWeb

SocialWeb

MediaWeb

MachineWeb

RealtimeWeb

MobileWeb

SocialWeb

MediaWeb

MachineWeb

RealtimeWeb

MobileWeb

SocialWeb

MediaWeb

MachineWeb

RealtimeWeb

MobileWeb

SocialWeb

MediaWeb

MachineWeb

RealtimeWeb

MobileWeb

SocialWeb

MediaWeb

MachineWeb

RealtimeWeb

How could Boston Children’s Hospitalleverage these webs?

Four Implications for Your Clients

Implementation

IT/ISManagers

CostCenter

Innovation

ProfitCenter

GrowthCenter

InvestCenter

YourRole

BusinessManagers

1

Implementation

IT/ISManagers

CostCenter

Innovation

ProfitCenter

GrowthCenter

InvestCenter

YourRole

BusinessManagers

“Supporting Today’s Strategy”

1

Implementation

IT/ISManagers

CostCenter

Innovation

ProfitCenter

GrowthCenter

InvestCenter

YourRole

BusinessManagers

2

Implementation

IT/ISManagers

CostCenter

Innovation

ProfitCenter

GrowthCenter

InvestCenter

YourRole

BusinessManagers

“Shaping Future Strategy”

2

Implementation

IT/ISManagers

CostCenter

Innovation

ProfitCenter

GrowthCenter

InvestCenter

YourRole

BusinessManagers

3

Implementation

IT/ISManagers

CostCenter

Innovation

ProfitCenter

GrowthCenter

InvestCenter

YourRole

BusinessManagers

“Balancing Today vs

Tomorrow”3

5 WebsMobileWeb

SocialWeb

MediaWeb

MachineWeb

RealtimeWeb

Impact Over Time.....

H1: Manage Current Business Model

H2: Adapt Current Business Model

H3: Create Future Business Model

4

Implementation

IT/ISManagers

CostCenter

Innovation

ProfitCenter

GrowthCenter

InvestCenter

BusinessManagers

Implementation

IT/ISManagers

CostCenter

Innovation

ProfitCenter

GrowthCenter

InvestCenter

BusinessManagers

Horizon1

Implementation

IT/ISManagers

CostCenter

Innovation

ProfitCenter

GrowthCenter

InvestCenter

BusinessManagers

Horizon1

Horizon 2 & 3

Implementation

IT/ISManagers

CostCenter

Innovation

ProfitCenter

GrowthCenter

InvestCenter

BusinessManagersCxO

Horizon1

Horizon 2 & 3Horizon 2 & 3

IT Everywhere: Opportunities & Challenges

Five Webs & Three Horizons

Sales Eminence @ IBM

BusinessStrategy

ITStrategy

Your Company

MobileWeb

SocialWeb

MediaWeb

MachineWeb

RealtimeWeb

BusinessStrategy

ITStrategy

Think About

Think About

Your Role as Sales LEADER

1. Pose ‘questions’ that drive new thinking

2. Lead with ideas & insights

3. Help clients navigate IT landscape for business results

4. Guide CxO team see the opportunities & challenges with IT

5. Evolve from vendor to trusted advisor

5 Ideas

“The difficulty lies not so much in developing new ideas as in escaping from old ones.”

Thanks Very Much

Conversation Continues...Twitter: @NVenkatramanLinkedIN: NVenkatraman