what every executive needs to know about it
DESCRIPTION
IT Lecture to 2009 Executive MBA Class at University of Tennessee.TRANSCRIPT
WHAT EVERY EXECUTIVE NEEDS TO KNOW ABOUT ITExecutive MBA ClassMay 20, 2009
IT is a commodity IT should be customer driven Consolidate IT organizations Plan to spend 4-8% of gross revenues
on IT Design a “to-be” set of technical
standards Business units should own the business
process IT should have technical standards. See past IT staff pushing “technical
religion”
WHAT EVERY EXECUTIVE NEEDS TO KNOW ABOUT IT
Digital natives offensively share information We are living in exponential times
Product development is becoming simulation based Computers are starting to perform “knowledge
discovery” Your corporate and your competitor’s data is onli
ne. Information security must be rethought
WHAT EVERY EXECUTIVE NEEDS TO KNOW ABOUT IT
Good IT is about maintaining the fundamentals while “living in the
exponent”. If you do, IT does matter!
really
Digital natives offensively share information We are living in exponential times
Product development is becoming simulation based Computers are starting to perform “knowledge
discovery” Your corporate and your competitor’s data is onli
ne. Information security must be rethought
WHAT EVERY EXECUTIVE NEEDS TO KNOW ABOUT IT
Good IT is about maintaining the fundamentals while “living in the
exponent”. If you do, IT does matter!
really
Over 200 million users
(source: CNET News)
400,000 joining per day
If Facebook were a country,It would be the 5th-largest in the world
More than 100 million users log on to Facebook at least once each dayMore than two-thirds of Facebook users are outside of college
The fastest growing demographic is those 35 years old and olderAverage user has 120 friends on the site
More than 3.5 billion minutes are spent on Facebook each day
Facebook is 5 years old
1/3(source: The Guardian)
of time online spent on social
networks
NOT JUST GEEKS!
The revolution has gone global.
CultureYouth are growing up
1946-1960Boomers
Analog Technology1961-1975Generation X
Telephone & TV
1991-2005Generation E
New Technologies
1976-1990Generation Y
Digital Technologies
Analog Technologies
“This generation thinks differently, behaves differently and is already starting to demand, aggressively, big changes in the way society, business and
individuals interact. Is your workplace prepared for the changes?”
– CIO Insight Magazine
Gen Y - Social Model
Offensive Information Sharing
Boomers - Industrial Model
Defensive Information
Sharing
Social Networking Sites
… Is this what you imagine?“Facebook Fired” became a memeIntern posted this to facebook
Got fired.
60% of people use social software today for business purposes.
Social networks today are explicit – and a pain
In the future, networks will be automatically discovered.
Photo from Facebook
Phone numbers discovered in email signatures
Current status from Facebook / Twitter
Network of people we both know (derived by email)
Network of people she knows that I don’t know
Digital natives offensively share information We are living in exponential times
Product development is becoming simulation based Computers are starting to perform “knowledge
discovery” Your corporate and your competitor’s data is onli
ne. Information security must be rethought
WHAT EVERY EXECUTIVE NEEDS TO KNOW ABOUT IT
Good IT is about maintaining the fundamentals while “living in the
exponent”. If you do, IT does matter!
really
THE INTERSECTION OF CLEAN ENERGY AND ECONOMIC GROWTH IS THE DEFINING CHALLENGE OF OUR GENERATION
1850 1900 1950 2000 2050 2100CO
2 em
issi
ons
(GtC
y-1)
5
10
15
20
25
30Actual emissions: CDIAC450ppm stabilisation650ppm stabilisationA1FI A1B A1T A2 B1 B2
Climate forcingis both stronger
and soonerthan expected
MEANWHILE OUR NEED FOR ENERGY IS AFFECTING GLOBAL CLIMATE
WE NEED FASTER COMPUTERS TO ACCELERATE OUR UNDERSTANDING OF GLOBAL CLIMATE CHANGE…
Cray 1 (1976)136,000,000 Floating Point Operations Per Second
Cray XT5 (2009)1,000,000,000,000,000 Floating Point Operations Per Second
University of Tennessee’s “Kracken” supercomputer. World’s fastest academic computer.
Cray 1 (1976)136,000,000 FLOPS
Cray XT5 (2009)1,600,000,000,000,000 FLOPS
We are just at the beginning of the computing revolution…
The Stuff of Dreams Limitless clean energy Quantified impacts of
atmospheric CO2
U.S. cellulose based fuel rather than oil
Drug delivery systems that release medicine precisely where needed
Simulations of fusion reactor
Climate code for global,dynamic CO2 exploration
New insights into cellulose-to-ethanol
conversion
First 3-D simulation of flame including
chemistry, temperature, and flow
WHAT IS THE UT SUPERCOMPUTER USED FOR?
SIMULATION DRIVES BUSINESS COMPETITIVENESS
Reducing design costs through virtual prototyping
Reducing physical tests for faster time to market
Image courtesy of Pratt & Whitney
Breakthrough insights for manufacturers Procter & Gamble uses HPC
to model production of Pringles® and Pampers®
Paper (n): The full record that supports that claim should be available for detailed examination and critique
We were taught to share these discoveries by publishing a paper or filing a patent
after all the work was done.
Corporate email communicationsGreen = InternalYellow = External
Meanwhile we communicate electronically ...
to networks of people...
… not the objects
What if we,curate the
conversation...
Is the openness of the next generation going to change the scientific process by allowing computers to mine the “human conversation”?
Scientific Method
Proving a hypothesis.
Knowledge Discovery
Finding the unknown correlations.
The usual response to these ideas?
Scientists like…
…control
“To be termed scientific, a method of inquiry must be based on gathering observable, empirical and measurable evidence subject to specific principles of reasoning.”
- Wikipedia
They don’t like…
Digital natives offensively share information We are living in exponential times
Product development is becoming simulation based Computers are starting to perform “knowledge
discovery” Your corporate and your competitor’s data is onli
ne. Information security must be rethought
WHAT EVERY EXECUTIVE NEEDS TO KNOW ABOUT IT
Good IT is about maintaining the fundamentals while “living in the
exponent”. If you do, IT does matter!
really
If there is value in the data, who can see into the cloud?
WindowsLive
Mega Vendors are providing “free” services so they can jointly see your data.
MATH IS GETTING BETTER AT MACHINE LEARNING (EXTRACT KNOWLEDGE FROM DATA)
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22
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inDocWordCountinDocwordCountinDocWordCountinDocwordCount
inDocwordCountinDocwordCountDocDocsim
1980s: Pair wise document similarity (document clustering)
1990s: Latent Semantic Analysis (what does the word mean?)
documents1 2 3 4 5 6 7
1 2 3 4 5 6 7 8 9terms
really just matrix multiplication:term vector (query) x strength matrix = doc vector
WE ARE MAKING IT EASIER FOR THE MACHINE TO LEARN1980s: HTML
1990s: XML
• Uses tags for formatting (e.g., “italic”).
• Describes the layout.
• Uses tags for structure and semantics (e.g., “this is the address and contains the house number, street, and postcode”)
GOOGLE FLU
• Web search terms can be indicators of flu activity
• Google can estimate flu activity per state two weeks faster than traditional systems (US Center for Disease Control)
DISCOVER YOUR COMPETITORS SUPPLY CHAIN. By analyzing Custom And Border Protection public Bill of Lading, analysts were able to determine Apple’s supply chain and release date for iPhone3G
SENTIMENT ANALYSIS FOR STOCK MARKET PREDICTION Brokerage houses are using computers to
“micro-trade” stocks based on sentiment analysis of blog sphere.
Figure from Glance, Hurst, Nigam, Siegler, Stockton, & Tomokiyo, KDD’05
MY CURRENT MARKET STRATEGY (YTD I AM UP 15%) I use zillow.com analysis of MLS to assess US
housing trends.
S&P housing index does the same thing, but releases the news ~6 weeks after Zillow does.
If there is a difference in the sentiment on the street (on the day before the housing index is released) and what I see on Zillow I will log/short NYSE:URE
Correlation index between S&P and Zillow is 95%
Wash DC
National Avg
THE MORE WE SHARE THE SMARTER IT GETS.
Googledocs determined the commonality of what I was entering and automatically
completed the rest of the list.
GoogleDocs searched the web.
Next generation versions will be able to tell you what correlations
exist between two seemingly unrelated attributes
WHAT IS NEXT…Every photo is moving to the cloudFacial recognition is emerging as a
mainstream capabilityWithin the next ten years you will be
able to search for a face in a context like:“Show me a picture of bob in a car”
Prepare for the skeleton in your closet to return.
We are going to need to redefine what we expect to be private.
Digital natives offensively share information We are living in exponential times
Product development is becoming simulation based Computers are starting to perform “knowledge
discovery” Your corporate and your competitor’s data is onli
ne. Information security must be rethought
WHAT EVERY EXECUTIVE NEEDS TO KNOW ABOUT IT
Good IT is about maintaining the fundamentals while “living in the
exponent”. If you do, IT does matter!
really
Current approach to securing enterprise information in the cloud
NEVER UNDERESTIMATE THE MOTIVATION, PATIENCE, AND CREATIVITY OF AN ADVERSARY!
They play strength to weakness
They develop surprising partners
They have no rules They see offense as a
systems challenge They attack against a defense
that is naïve, arrogant, unbalanced and fragmentedWe can work a lot harder at what we are doing and not make much of a
difference!
National Interest
Corporate/Personal Gain
Personal Fame
Curiosity
Script-Kiddy HobbyistHacker
ExpertSpecialist
Vandal
Thief
Spy
Trespasser
Author
WHAT MOTIVATES A HACKER?
“The seed of revolution is repression”
Woodrow T. Wilson
Technology innovation is driven by consumer products“I can do this at home, why not in the office?”
Digital Natives (younger workers) have new
expectations“You want me to do what? You must be joking, I’ll just use my Groove / Flikr /
MySpace / del.icio.us for collaboration. Next time IM me.”
The line between personal and business is increasingly blurred.“You want to contact me in the evening, that is fine. We are going to use my home computer, IP phone, gmail,
not yours”
Consumer products cost less.
“How much? I could have 50 skype accounts for the cost of one of those
old ISDN phones”
Business needs greater agility to survive.
“I can’t wait for IT to deliver that”
Human nature is to either avoid online services or impose more security
controls
Time to rethink history information security policies
IN ORDER TO LEAD THE REVOLUTION INSTEAD OF REPRESSING IT WE
MUST….
FOCUS ON SECURING THE DATA, NOT THE DEVICE
TYPICAL POLICY EXPRESSION…
…LACKS ENFORCEMENT TOOLS
ENTERPRISE DIGITAL RIGHTS MANAGEMENT (EDRM)AKA: DOCUMENT LEVEL SECURITY
Information Author
The Recipient
EDRM Server
2 3
4
5
2. Author defines a set of usage rights and rules for their file; Application creates a “publishing license” and encrypts the file.
3. Author distributes file.4. Recipient clicks file to open,
the application calls to the EDRM server which validates the user and issues a “use license.”
5. Application renders file and enforces rights.
1. Author receives a client licensor certificate the first time they rights-protect information.
1
EDRM: This is not the same as DRM (iTunes / RIAA)
WHAT EDRM DOES NOT PROTECT FROM:
Slide courtesy of Microsoft
Digital natives offensively share information We are living in exponential times
Product development is becoming simulation based Computers are starting to perform “knowledge
discovery” Your corporate and competitors data is online. Information security must be rethought
WHAT EVERY EXECUTIVE NEEDS TO KNOW ABOUT IT
You can’t teach “good IT”, it is about “living in the exponent”.
IT does matter!
really
SUMMARY IT does matter, but you need to change your expectations. IT can be THE strategic differentiator for a modern business.
The problem is IT is changing so quickly you can’t “teach it”
you have to jump in and “live it”. The only thing you can “teach” is to be offensive with your
information, think way outside the box and be ready for a major cultural change to show “raw humanity” and what people are really thinking. Yes, this is uncomfortable. But if you are scared I did my job. Don’t think it is something you can slow down. Get on board and make some money by embracing the change.
“It is not the strongest of the
species that survive, nor the most
intelligent, but the one most adaptable
to change.”
- Charles Darwin
Time for a change.