2012 marks the beginning of a new economic paradigm: experience is the king and IT is the enabler. Finally IT gets to play in the right side of the brain sandbox. Good for us .

1. IT in the
New Experience
Economy
IT in the New
Experience Economy
Dr. Jimmy Schwarzkopf

2. IT Services
1970-2010: 2011- :
verbal; sequential and Unstructured approach to tasks;
logical structured thinking; multitasking ; visual
analyzing and controlling emotional responses;
processes; social beings
logical beings
IT Clients:
IT Clients: • Sales
• Finance • Marketing
• Logistics • Consumer
• HR
• Transactional core
2

3. Today’s presentation: deals mostly with the right brain
3

4. Did we see this coming ? What will happen next ?
4

5. Did we see this coming ? What will happen next ?
5

6. Example of what can happen…… if you behave like an ostrich…..
6

7. Example of what can happen…… if you behave like an ostrich…..
7

8. Example of what can happen…… if you behave like an ostrich…..
8

9. Re-invent ourselves or else … “BLUE OCEAN”
9

10. Re-invent ourselves or else … “BLUE OCEAN”
10

12. Red Ocean Strategy Blue Ocean Strategy

13. WICKED problems : DESIGN THINKING
Wicked problems
13

14. Design Thinking: all about creating experiences
14

15. Two point roadmap: create value and optimize costs
Business demand
for IT services
Why so
big?
Innovate &
more value
Optimize &
cut costs
IT budget
Time
15

16. “New Normal” Pressure to Optimize & Innovate FAST
BUSINESS DEMAND FOR
INNOVATION
IT must
fill this
growing
gap!
IT CAPACITY FOR INNOVATION
IT TRANSFORMS
from: MAINTAINING TECHNOLOGY
to: DELIVERING INNOVATION

17. -“Every man is guilty of all the good he didn’t do”- Voltaire 1770s
idea
idea
idea
idea
Innovation 1
2
3
17

18. Technology Differentiation Fades….

19. Pre-requisites for every IT Change
Human Resource Business Process
Empowerment Re-engineering
Planning for
Disasters

20. New economic playbox :
Service
Goods-Based
Economy
Economy
The Experience
Economy
Agrarian
Economy
20

21. Experience Economy > Age of the Customer
From 1900 to 1960, Age of Manufacturing , if you owned a factory,
you owned the market.
From 1960 to 2000, Age of Distribution, if you owned the distribution
channels, you owned the market.
From 2000 to 2011, Age of Information, if you owned the information,
you owned the market.
From 2011, Age of the Customer, if you engage the customer, you own
the market
21

22. “the NEW experience economy”
22

23. “the NEW experience economy”
23

24. Starbucks Frappuccino or not? Why not?
24

25. New IT client: Chief Marketing Officer (CMO)
There are only 3 reasons why you choose to
buy a product or a service :
1. It's the cheapest
2. It's unique
3. You're sold on marketing!!
25

26. Customer Experience Management (CEM)
The lifetime value of a customer has changed,
combination of transactional value and social value
• Customers interact:
• pre-sale (marketing)
• during the sale (transaction)
• after the sale (service)
• Customers want to interact wherever and however they want:
• call centers, stores , face-to-face, mobile , social [networks], kiosks and games
• CEM refers to the notion of improving a customer's experience wherever
they may be through all possible channels
26

27. Technology will shape who we are and our “new economy”
a new economy that’s vast, automatic, and invisible
thereby bringing the biggest change since the Industrial Revolution
27

28. Rules 1994: the web Rules 2012: the social web
28

29. What is happening to the diffusion of IT technologies?
29

30. The Consumerization of IT:
Real Companies and The Next Generation of Business
30

31. The Consumerization of IT:
Real Companies and The Next Generation of Business
31

32. Things my grandson taught me:
• Touch screens change the way we see the world
He assumes that any screen is a touch screen
He prefers to navigate surfaces to retrieve information instead of diving
into nested structures.
• Voice Interface
Devices should understand us, and pull up some good animal videos
when we ask.
• Linear TV is dead
TV is about watching what they want, when they want
• Games are social
Sharing playing experience
• The alive web will be huge:
You call people to share an experience,
Turntable.fm
Google’s Hangouts
MeetingBurner
32

33. Things my grandson taught me:
• Touch screens change the way we see the world
He assumes that any screen is a touch screen
He prefers to navigate surfaces to retrieve information instead of diving
into nested structures.
• Voice Interface
Devices should understand us, and pull up some good animal videos
when we ask.
• Linear TV is dead
TV is about watching what they want, when they want
• Games are social
Sharing playing experience
• The alive web will be huge:
You call people to share an experience,
Turntable.fm
Google’s Hangouts
MeetingBurner
33

34. When will we have usable “Industrial Information” Machines ?
It takes time not only for people to adopt
technologies into their daily routines but also
for technologists to figure out
how to make things USABLE (experience)
33 years
understand users:
how they want to drive
The Austin 7 was produced
from 1922 through to 1939
The Karl Benz Patent Motorwagen 1885,. by the Austin Motor Company.
34

35. The rule: +/-30 years
Specs aren’t important, the sum is more than the whole of their parts.
Specs are tactical decisions in order to execute a larger strategy.
What is ultimately important is the experience.
35

36. The rule: +/-30 years
Specs aren’t important, the sum is more than the whole of their parts.
Specs are tactical decisions in order to execute a larger strategy.
What is ultimately important is the experience.
36

37. UX Revolution (experience) – Touch / Sound(Voice) / Move Era
37

38. 2012: Sound/Voice is in
38

39. 2012: Face recognition is in
39

40. Content, not hardware, has made tablets the current king
storage
increase X2
every 12 months
Increase in power, storage and network capacity per dollar
Processor power
increase X2
every 18 months
Networks
increase slowly
3G > 4G
TIME
40

41. Content, not hardware, has made tablets the current king
storage
increase X2
Why waste all that every 12 months
Increase in power, storage and network capacity per dollar
power and storage?
Only so it is easier for IT ?
Processor power
increase X2
every 18 months
Networks
increase slowly
3G > 4G
TIME
41

42. less to do with the worker and more to do with changes in the way that people work
Client/Server V2
1. Most work on/off line
Terminals V 2 2. Most of the time connected
WEB/Browser client 3. Uses cloud/local applications
4. Move from APP to SERVICE
2 types of applications:
1. Off-line: processing and
storage local (not apps)
2. Always connected:
Client/Server V1
browser based applications 2 types of applications:
1. Off-line: processing and storage local
Terminals V1 2. Always connected : data moves;
Always connected processing@server; GUI@client
I/O only at the local
ADVANCES/COST
1. Communications/networking
2. Processor/storage
3. Power /battery
42

43. So……… what do you do?
43

44. Prof. Clayton Christensen: Disruptive Innovation Model
T1 T2
44

45. Prof. Clayton Christensen: Disruptive Innovation Model
T1 T2
45

46. Prof. Clayton Christensen: Disruptive Innovation Model
OS X and Windows 8 work only on devices with Intel's x86/64- CPUs
iOS, Android and Windows RT work only on devices with ARM-CPUs
Apple informed Intel that it better drastically slash its power consumption or would
likely lose Apple’s business. “It was a real wake-up call to us,” Intel said.
Medfield
T1 T2
46

47. A little history………
I want a
choice
47

48. What the Market thinks…
48

49. What the Market thinks…
49

50. Israel (expected end 2012):
Wintel: Q42011 compared to Q42010
Desktop PCs: -25% Notebooks: -35%
50

51. What about Productivity Software (office)?
Office 15
ARM/Intel
iOS6, Android, W8,MacOS
51

52. What about Productivity Software (office)?
Office 15
ARM/Intel
iOS6, Android, W8,MacOS
52

53. 53

54. Mobility v2: WORK is not a place you go, but a thing you do
54

55. Four screens of convergence: TV, PC, mobile devices and in-car
• We want to be connected 24X7
• Each of these screens is useful during our
day and each is connected to the 'cloud'
• IT should allow us to use the same
business (IT supports ALL) and
entertainment applications
55

56. Can IT support all devices (at same time) ?
• Employees will:
• use as many computers and mobile devices
as they wish
• keep their data in sync with a backup copy
for all devices
• Solutions should be enterprise class :
• Secure; reliable; maintainable
• integrated to critical back-office systems
52% 3 or more
60% use for home/work
56

57. Desktop and Mobile ecosystems begin to converge
“BYOD : bring your own device"
employees asserting control over the technology they use for work
57

58. BYOD policy = Access policy
58

59. Policies: Access Strategy (IT)
1. User-based access control: Who owns the device?
2. Device-based access control: Trust the device?
3. Location-based access control: Where is the device?

60. Access policy: need for Unified Communication technologies
Instant Video Web E-mail and Audio
Messaging Voice Mail Conferencing Telephony Conferencing Calendaring Conferencing
Authentication Authentication
Authentication Authentication
Administration Administration
Administration Administration
Storage Storage
Storage Storage
Authentication Authentication Authentication
Administration Administration Administration
Storage Storage Storage

61. Access policy: need for Unified Communication technologies

62. Bring Your Own Device Architecture
Personal Cloud
Hybrid Application Software
Apps Strategy
Productivity Software: Office 15
Prod. Standard
OS: iOS-Android-W8
Hwre: Intel -ARM
Access Strategy
Unified Communication
62

63. Summary: Consumerization . . . a tipping point
IT User IT Consumer
Dependent WORK STYLE Self-Service
The Office LOCATION Anywhere
M-F, 9-5 WORK HOURS 24/7
Flexibility
Devices NEEDS
Scalability
IT USERS have matured to become IT CONSUMERS
63

64. The value of mobile is in the apps .. sorry service
"specialized local services
running in conjunction with
cloud-based services
(private/public)
that mostly do
A2P messaging
in
location aware devices
processing to figure out the
context and state of the user”-
64

65. For in context services we need:
The 4 Ws
65

66. For in context services we need:
66

67. This is what a device knows about you……
1. Activity based context: What are you doing?
2. Social context: With whom are you?
3. Spatial-Temporal context: Where are you?
What time is it?
4. Physiological context: Heart rate,
movement, temperature
5. Environmental context: In what environment
are you?
6. Mental context: How are you feeling?
7. Virtual context: What is happening with you
in the virtual space?
8. Me context: Who are you?
67

68. “CONTEXT”: definitions
Context enables the services that make sense right at the point
where an action takes place.
Context allows organizations to shift their focus from insight:
• to actionable insight
• to insight at the point of action
68

69. “CONTEXT”: definitions
Context enables the services that make sense right at the point
where an action takes place.
Context allows organizations to shift their focus from insight:
• to actionable insight
• to insight at the point of action
69

70. 2013 : context-sensitive A2P service
What do I recommend?
Provide Mobile
Coupon & Payment
70

71. 2013 : context-sensitive A2P service
What do I recommend?
Provide Mobile
Coupon & Payment
71

72. E-bizz everywhere but differently: now A2P based
1. Mobile:
2. “FRIENDS” Pricing:
3. Video Commerce:
4. Search :
5. Social Business:
The real change comes from:
--”APPLICATION-TO-
PERSON (A2P)
MESSAGING – messages You want to buy
between a user and an
automated You want to choose
application”--
72

73. A2P messaging – messages between a user and an automated application
CONTEXT
73

74. A2P messaging – messages between a user and an automated application
74

75. how to influence in-store, online and mobile shopping ?
SHOPKICK automatically recognizes when someone walks into a store.
“kickbucks” to the user for:
walking into a retail store
trying on clothes
scanning a barcode
other actions
“kickbucks” redeemed across all partner stores for
gift card rewards
Facebook credits
special discounts
SHOPKICK expects to pass 1 billion product views this year
75

76. Example of new payment technologies:
76

77. Amazon as the “ultimate” in context “social store”
77

78. “follow us on Facebook” has replaced the website, what will be next?
• people will have a simple payment credential attached to their
account
• with one click they will be able to complete a transaction
• Facebook credits and payments could be the airline miles of the
next decade
• consumers will be rewarded with Facebook Credits for brand loyalty
78

79. Conclusion: be prepared for the disruptions in classical IT
79