THE FUTURE OF ENTERPRISE IT

From Systems of Record to Systems of Engagement

Paul Wiefels

#SDN2012

THE CHASM GROUP: MARKETING & MANAGEMENT CONSULTANTS TO THE TECHNOLOGY INDUSTRY

Management seminars & workshops

Strategy “tune-ups”

Thought leadership: books and articles

Product market development strategy

Corporate strategy & positioning development

Go-to-market execution & plan development

Executive advisory & counsel

Branding & product development alignment

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• 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

ENTERPRISE IT: THE CURRENT STATE SYSTEMS OF RECORD ARE LARGELY COMPLETE

IT INNOVATION DURING THE PAST DECADE

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Enterprise IT Consumer IT

Application & System optimization –

Cheaper, faster, better to support Systems of Record.

Beware disruptions.

Application & System transformation –

Enable access, broadband,mobile to support Systems

ofEngagement.

Embrace disruptions.

BRCD Opportunity

• Access• Infinite content, no barriers to entry, no barriers to exit• Communications are globally democratized• Microsoft, Google, Facebook, Wikipedia, OpenTable

• Broadband• Pictures, video, shopping• Internet touches both the mind and the heart• Skype, iTunes, YouTube, Pandora, Hulu, Netflix, Zappos

• Mobile• 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!

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REDEFINING INFO TECHNOLOGY FOR CONSUMERS: THE DIGITIZATION OF HUMAN CULTURE

How will this impact enterprise IT?What will drive change?

THE BIG DISCONNECT

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How disruptive do you think Consumer ITwill be to Enterprise IT?

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VirtualizedData Centers

Software as a Service

Infrastructure as a Service

Platform as a Service

Managed Hosting

Servers, Storage, and Networks

Enterprise Apps over the Internet

Composite Apps in the Cloud

Many IT vendors doing this today

THE FUTURE OF ENTERPRISE IT: AN EVOLUTION IN INFRASTRUCTURE

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Info on Demand

Instant Orientation

Instant Communication

Video on Demand

Google, Bing, Yelp, Wikipedia

GPS, Google Maps, Navigation, Personal healthcare monitoring

YouTube, Netflix, Facetime

SMS, Facebook, Twitter, Skype

This is radically new

THE FUTURE OF ENTERPRISE IT: A REVOLUTION IN APPLICATIONS

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SYSTEMS OF ENGAGEMENT: EVOLUTION MEETS REVOLUTION

Evolution in Infrastructure

Focuses on Systems of Record

Continuation of current trends and investments

Not fundamentally disruptive

What will drive enterprises to invest insystems of engagement?

Revolution in Applications

Focuses on Systems of Engagement

Totally new end user experience

Radically discontinuous

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SYSTEMS OF ENGAGEMENT FOR B2B

• Enterprise Facebook

• Enterprise YouTube/GoToMeeting

• Enterprise LinkedIn

• Enterprise App Store

• Enterprise Chatter

• On demand conferencing

• Global presence detection

• Mobile access to everything

• Social content management

• With more revolutionary applications to come . . . .

Who knows energy and

speaks Chinese?

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?

Can you do a demo for the

field?

Let’s make sure everyone fills out the budget the

same way!

Let’s get everyone

together now!

Let’s look at the data and get Charlie to walk us thru

it

SYSTEMS OF ENGAGEMENT FOR B2C

• Collaborative filtering

• Behavioral targeting

• Personalized transactions

• Location-based services

• Predictive analytics

• Machine learning

• Fraud detection

• Multi-channel engagement

• Near-field transaction processing

• And lots more to come . . .

Birds of a feather flock

together!

Now that’s what I like!

Lucky you added that

extra inventory!

Foiled again!

No more plastic!

Who’s in the market today?

Timely!

It just seems to get

smarter!!

Just the way I like it!

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• 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

SPECIALISTS ALL AROUND: THE RISE OF COLLABORATIVE BUSINESS NETWORKS

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• 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

B2C SYSTEMS OF ENGAGEMENT: COMPELLING ONLINE EXPERIENCES ARE CORE

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Business Process Consulting

Transaction Applications

Business Intelligence

Web Application Infrastructure

Systems Management Infrastructure

Database

Operating System

Servers

Storage

Data Network

High-Performance Microprocessors

BusinessLayer

ComputeProcesses

ComputeEngines

Mainframes

Document-based Collaboration

Desktop Environment

HOW IT PLAYS OUT TODAY: THE CURRENT SYSTEMS OF RECORD

STACK…

High-Performance Microprocessors

Document-based Collaboration

Business Process Consulting

Transaction Applications

Business Intelligence

Web Application Infrastructure

Systems Management Infrastructure

Database

Operating System

ServersStorage

Data Network

Mainframes

Desktop Environment

Real-Time Analytics

Mobile Application Infrastructure

Public/Private Cloud Management

Infrastructure as a Service

Mobile Clients

Apps

Live Collaboraborative Sessions

In-Memory Caches

Voice/Data/Video Network

User Experience Design

…NOW MORPHING TO MEET USER DEMANDS

Virtualization Platforms

Low-Power Microprocessors

BusinessLayer

ComputeProcesses

ComputeEngines

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• 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

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SYSTEMS OF RECORD & SYSTEMS OF ENGAGEMENT

Networks must be agile, changeable, and fast to deploy. All of which means they will need to

be virtualized.

TWO DIFFERENT TRAJECTORIES

User Experience Design

Apps

Real-Time Analytics

Mobile Application Infrastructure

Public/Private Cloud Management

In Memory Caches

Virtualization Platforms

Voice/Data/Video Network

Infrastructure as a Service

Live collaborative Sessions

Mobile Clients

Low-Power Microprocessors

Business Process Consulting

Transaction Applications

Business Intelligence

Web Application Infrastructure

Systems Management Infrastructure

Relational Data Management

Operating System

Servers

Storage

Data Network

High-Performance Microprocessors

Mainframes

Document-based Collaboration

Desktop Environment

Offered as part of a massive suite of

applications

Best of Breedfor

Real-time differentiation

Systems of Record Stack Systems of Engagement Stack

Advantage:Huge SOR vendors

Advantage:Next-gen Start-Ups

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• 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.

KEY TAKEAWAYS

www.sdncentral.comSDN Security Seminars 2012

Technical Track

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