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Business Drivers of SDN by Paul Wiefels, Chasm Group
1. #SDN2012
THE FUTURE OF ENTERPRISE IT
From Systems of Record to Systems of
Engagement
Paul Wiefels
2. THE CHASM GROUP: MARKETING & MANAGEMENT
CONSULTANTS TO THE TECHNOLOGY INDUSTRY
Executive advisory & counsel
Go-to-market execution & plan development
Branding & product development alignment
Corporate strategy & positioning development
Product market development strategy
Strategy “tune-ups”
Management seminars & workshops
Thought leadership: books and articles
3. ENTERPRISE IT: THE CURRENT STATE SYSTEMS OF
RECORD ARE LARGELY COMPLETE
• Transaction systems for global commerce . . .
• Financials, Order Processing, Inventory, HR, CRM, Supply Chain
• Mainframes, minis, client-server, PC, Internet-enabled, SaaS
• Drove three decades of investment
• Home-grown data centers
• OLTP/ERP type applications and Business Intelligence were key
drivers
• Y2K put the capstone on this trend
• Pulled forward a half decade of investment
• Enterprise IT has had to go through a long ―digestive‖ period
• Focus in past decade has been on efficiency investments
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4. IT INNOVATION DURING THE PAST DECADE
Enterprise IT
Consumer IT
BRCD
Application & System Opportunity Application & System
optimization –
transformation –
Cheaper, faster, better to
Enable access, broadband,
support Systems of Record.
mobile to support Systems of
Engagement.
Beware disruptions.
Embrace disruptions.
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5. REDEFINING INFO TECHNOLOGY FOR CONSUMERS:
THE DIGITIZATION OF HUMAN CULTURE
•
Access
•
Broadband
•
Mobile
• Infinite content, no barriers to entry, no barriers to exit
• Communications are globally democratized
• Microsoft, Google, Facebook, Wikipedia, OpenTable
• Pictures, video, shopping
• Internet touches both the mind and the heart
• Skype, iTunes, YouTube, Pandora, Hulu, Netflix, Zappos
•
•
•
•
PC for emerging markets
MacAirs and Ultrabooks
iPhone and iPad set the bar in mature markets
IM, email, camera, game, wallet, magazine. . . even a phone!
How will this impact enterprise IT?
What will drive change?
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7. THE FUTURE OF ENTERPRISE IT: AN EVOLUTION IN
INFRASTRUCTURE
Platform as a Service
Software as a Service
Infrastructure as a Service
Virtualized
Data Centers
Composite Apps in the
Cloud
Enterprise Apps over the Internet
Managed Hosting
Servers, Storage, and Networks
Many IT vendors doing this today
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8. THE FUTURE OF ENTERPRISE IT: A REVOLUTION IN
APPLICATIONS
Video on Demand
Instant Orientation
Instant Communication
Info on Demand
YouTube, Netflix, Facetime
GPS, Google Maps, Navigation,
Personal healthcare monitoring
SMS, Facebook, Twitter, Skype
Google, Bing, Yelp, Wikipedia
This is radically new
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9. SYSTEMS OF ENGAGEMENT: EVOLUTION MEETS
REVOLUTION
Evolution
in Infrastructure
Revolution
in Applications
Focuses on Systems of
Record
Focuses on Systems of
Engagement
Continuation of current
trends and investments
Totally new end user
experience
Not fundamentally
disruptive
Radically discontinuous
What will drive enterprises to invest in
systems of engagement?
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10. SYSTEMS OF ENGAGEMENT FOR B2B
Can you do a
demo for the
field?
•
Enterprise Facebook
•
Enterprise
YouTube/GoToMeeting
Let’s make sure
everyone fills out
the budget the
same way!
•
Enterprise LinkedIn
•
Enterprise App Store
•
Enterprise Chatter
•
On demand conferencing
•
Who knows
energy and
speaks
Chinese?
Global presence detection
Let’s get
everyone
together now!
•
•
Let’s look at
the data and
get Charlie to
walk us thru it
Mobile access to everything
Social content management
•
With more revolutionary
applications to come . . . .
Who is the VP
Operations in
Client X?
How is the
quarter
coming?
I need to talk
to Harry—
where is he?
What got
decided at the
last project
meeting?
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11. SYSTEMS OF ENGAGEMENT FOR B2C
Who’s in the
market today?
Timely!
It just seems to
get smarter!!
Just the way I
like it!
•
•
•
•
•
•
•
•
•
•
Collaborative filtering
Behavioral targeting
Personalized transactions
Birds of a
feather flock
together!
Now that’s
what I like!
Location-based services
Machine learning
Lucky you
added that
extra
inventory!
Fraud detection
Foiled again!
Predictive analytics
Multi-channel engagement
Near-field transaction processing
No more plastic!
And lots more to come . . .
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12. SPECIALISTS ALL AROUND: THE RISE OF
COLLABORATIVE BUSINESS NETWORKS
• Fundamental structure of business changing
• OLD: Hierarchically organized integrated enterprises
• NEW: Business networks of specialized enterprises
• Business networks increase demand for:
• Communication – Coordination - Collaboration
• Relationship management and trouble shooting
• Challenge: To engage with peers globally to solve
problems
• Answers are not in Systems of Record
• They are in other people’s (and often other companies’)
heads
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13. B2C SYSTEMS OF ENGAGEMENT: COMPELLING
ONLINE EXPERIENCES ARE CORE
• From Transactions to Interactions on the web
• Battle for customer preference at the moment of choice
• Pressure to be relevant in real time
• Goal is maximum exposure and transparency
• The Answers are in computers or databases
• They are tiny needles in massive haystacks
• Must find and activate them before prospect moves on
• This information is gold to
hackers, cybercriminals, spies, etc.
• No time for people—or disk drives—to be in the
loop
• Show it all and show it fast
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14. HOW IT PLAYS OUT TODAY: THE CURRENT
SYSTEMS OF RECORD STACK…
Business Process Consulting
Desktop Environment
Business
Layer
Transaction Applications
Business Intelligence
Document-based Collaboration
Web Application Infrastructure
Compute
Processes
Systems Management Infrastructure
Database
Operating System
Mainframes
Compute
Engines
Servers
Storage
Data Network
High-Performance Microprocessors
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15. …NOW MORPHING TO MEET USER DEMANDS
Business
Layer
Business Process Consulting
User Experience Design
Desktop Environment
Mobile Clients
Transaction Applications
Apps
Business Intelligence
Real-Time Analytics
Document-based Collaboration
Live Collaboraborative Sessions
Mobile Application Infrastructure
Web Application Infrastructure
Compute
Processes
Systems Management Infrastructure
Public/Private Cloud Management
In-Memory Caches
Database
Virtualization System
Operating Platforms
Compute
Engines
Mainframes
Servers
Infrastructure as a Service
Storage
Voice/Data/Video Network
Data Network
High-Performance Microprocessors
Low-Power Microprocessors
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16. SYSTEMS OF RECORD & SYSTEMS OF ENGAGEMENT
• Systems of Record (SORs) create efficiency
• Impossible to do global commerce without them
• Focus on cost, quality, and contractual commitments
• Systems of Engagement (SOEs) create effectiveness
• Address the complexities of global business relationships
• Create compelling consumer interactions on line
• Sought after architecture
• SOEs operating on top of and in touch with SORs
• This is where the evolution in infrastructure comes in
Networks must be agile, changeable, and fast to
deploy. All of which means they will need to be
virtualized.
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17. TWO DIFFERENT TRAJECTORIES
Systems of Record Stack
Systems of Engagement Stack
Business Process Consulting
User Experience Design
Desktop Environment
Mobile Clients
Offered as part of a
Transaction Applications
massive suite of
Business Intelligence
applications
Document-based Collaboration
Best Apps
of Breed
for
Real-Time Analytics
Real-time differentiation
Live collaborative Sessions
Web Application Infrastructure
Mobile Application Infrastructure
Systems Management Infrastructure
Public/Private Cloud Management
Advantage:
Relational Data Management
Huge SOR vendors
Operating System
Mainframes
Servers
Advantage:
Next-gen Start-Ups
In Memory Caches
Virtualization Platforms
Infrastructure as a Service
Storage
Data Network
Voice/Data/Video Network
High-Performance Microprocessors
Low-Power Microprocessors
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18. KEY TAKEAWAYS
• Intense and global competition is causing companies to
evolve how they pursue, acquire, monetize, and sustain
relationships with customers and partners.
• Both online and traditional businesses are shifting their
customer focus from a transactions orientation to that of
pursuing and nurturing ongoing interactions.
• The need for employees often globally disbursed to
collaborate with one another real-time as never been greater.
• This requires flexible networks. Time to value can’t be paced
by time to connection.
• Security challenges abound. The more open, the more
vulnerable.
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