Ray Wang Workday Rising Keynote 2009
Transcript of Ray Wang Workday Rising Keynote 2009
Enterprise Applications in the E f th Cl d d W b 2 0Era of the Cloud and Web 2.0
R “Ray” WangP t E t i St tPartner – Enterprise StrategyAltimeter Group
October 19th 2009October 19 , 2009
Today’s themesToday s themes
We must adapt to massive changes.
ll lWe can not allow our legacy technologies to hold us back.
The future of business requires us to d d i iadapt and integrate emerging
technologies.
© 2009 R Wang & Altimeter Group, LLC
Agenda
3
Agenda• Four massive forces of change• Future of business• Evolution of enterprise apps• SaaS delivers the future today• Recommendations
© 2009 R Wang & Altimeter Group, LLC
Organizations face massive and 4
unprecedented pace of change• Changing workplace norms• Distributed nature of work
• Loss of faith in capitalism• Commodity shortages • Distributed nature of work
• New work force models• Mixed generations
• Aging workforce• Global talent
• Commodity shortages• Political instability• Sustainability and
environmental focus• Economic crisis Macro Workplace • Global talent• Price spikes Macro
conditionsWorkplace dynamics
• Pace of obsolescenceincreasing fasterthan the rate of
Business Models
Pace of tech
• Globalization• New stakeholders
• Goliath vs start-up• Public/ private /hybrid
adoption• Consumer tech ahead
of enterprise• Digital divide closing
around the world
Modelsadoption
© 2009 R Wang & Altimeter Group, LLC
/ p / y• Regulation/ deregulation
• Business process outsourcing
around the world• Connected ubiquity drives
new adoption models
Organizations face massive and 5
unprecedented pace of change• Changing workplace norms• Distributed nature of work
• Loss of faith in capitalism• Commodity shortages • Distributed nature of work
• New work force models• Mixed generations
• Aging workforce• Global talent
• Commodity shortages• Political instability• Sustainability and
environmental focus• Economic crisis Macro Workplace • Global talentEconomic crisis• Price spikes Macro
conditionsWorkplace dynamics
• Globalization
• Pace of obsolescenceincreasing fasterthan the rate of
Business Models
Pace of tech Globalization
• New stakeholders• Goliath vs start-up
• Public/ private /hybrid• Regulation/ deregulation
than the rate ofadoption
• Consumer tech aheadof enterprise
• Digital divide closing
Modelsadoption
© 2009 R Wang & Altimeter Group, LLC
Regulation/ deregulation• Business process
outsourcing
g garound the world
• Connected ubiquity drives new adoption models
Organizations face massive and 6
unprecedented pace of change• Changing workplace norms• Distributed nature of work
• Loss of faith in capitalism• Commodity shortages • Distributed nature of work
• New work force models• Mixed generations
• Aging workforce• Global talent
• Commodity shortages• Political instability• Sustainability and
environmental focus• Economic crisis Macro Workplace • Global talentEconomic crisis• Price spikes Macro
conditionsWorkplace dynamics
• Globalization
• Pace of obsolescenceincreasing fasterthan the rate of
Business Models
Pace of tech Globalization
• New stakeholders• Goliath vs start-up
• Public/ private /hybrid• Regulation/ deregulation
than the rate ofadoption
• Consumer tech aheadof enterprise
• Digital divide closing
Modelsadoption
© 2009 R Wang & Altimeter Group, LLC
Regulation/ deregulation• Business process
outsourcing
g garound the world
• Connected ubiquity drives new adoption models
Organizations face massive and 7
unprecedented pace of change• Changing workplace norms• Distributed nature of work
• Loss of faith in capitalism• Commodity shortages • Distributed nature of work
• New work force models• Mixed generations
• Aging workforce• Global talent
• Commodity shortages• Political instability• Sustainability and
environmental focus• Economic crisis Macro Workplace • Global talentEconomic crisis• Price spikes Macro
conditionsWorkplace dynamics
• Globalization
• Pace of obsolescenceincreasing fasterthan the rate of
Business Models
Pace of tech Globalization
• New stakeholders• Goliath vs start-up
• Public/ private /hybrid• Regulation/ deregulation
than the rate ofadoption
• Consumer tech aheadof enterprise
• Digital divide closing
Modelsadoption
© 2009 R Wang & Altimeter Group, LLC
Regulation/ deregulation• Business process
outsourcing
g garound the world
• Connected ubiquity drives new adoption models
Agenda
8
Agenda• Four massive forces of change• Future of business• Evolution of enterprise apps• SaaS delivers the future today• Recommendations
© 2009 R Wang & Altimeter Group, LLC
Our top priorities leave us torn
9
Our top priorities leave us torn
GrowGrow
InnovateInnovateComplyComply InnovateInnovateComplyComply
SaveSave
© 2009 R Wang & Altimeter Group, LLC*Phone and in-person survey of 89 CIOS from August to October 2009
10
Convergence of themes drives today’s g ybusiness
Consumer tech and business
softwareTransactional
and behavioralIndividual and
the community
B2B and B2C Reactive and proactive
Company and the customer
Data generation and Top down and
b tt Evolution and
l tigeneration and data analysis
S i d H i l d
bottom up revolution
© 2009 R Wang & Altimeter Group, LLC
Strategic and tactical
Horizontal and vertical X and Y???
Contributors: Josh Weinberger – CRM Magazine
Top 3 challenges in today’s 11
organization/enterprise
CIO’s no longer determine
technology adoption
CIO’s no longer determine
technology adoption
Antiquated technology impedes
effective change
Antiquated technology impedes
effective change technology adoption – businesses do.
technology adoption – businesses do.
effective change management.
effective change management.
The rate of obsolescence
t th t t
The rate of obsolescence
t th t t outpaces the rate at which companies
change.
outpaces the rate at which companies
change.
© 2009 R Wang & Altimeter Group, LLC
Enterprises/organizations must evolve 12
how they conduct business
) All i ) All i ) D i i ) D i i ) I ti i ) I ti i 1) Allowing business units to pilot new technologies
1) Allowing business units to pilot new technologies
2) Designing process scenarios around user
2) Designing process scenarios around user
3) Investing in innovation --even when it hurts.
3) Investing in innovation --even when it hurts. technologies
and processes.technologies and processes.
around user roles – rather than vendor forced fit best
i
around user roles – rather than vendor forced fit best
i
hurts. hurts.
© 2009 R Wang & Altimeter Group, LLC
practices.practices.
Agenda
13
Agenda• Four massive forces of change• Future of business• Evolution of enterprise apps• SaaS delivers the future today• Recommendations
© 2009 R Wang & Altimeter Group, LLC
14
Existing enterprise apps address the g p ppbusiness needs of the 20th century
Strengths from the 20th
centuryChallenges in today’s
rapidly changing world
• Automating high volume transactions
• Delivering functional i
• Addressing increasing complexity
• Crossing functional fi fdcompetencies
• Standardizing business processesC t i i
fiefdoms• Dealing with new
businesses modelsP idi b i i i ht• Capturing massive
amounts of data• Ensuring accuracy
Securing information
• Providing business insight• Providing flexibility• Collaborating with new
stakeholders
© 2009 R Wang & Altimeter Group, LLC
• Securing information stakeholders
Existing enterprise apps have yet to
15
g p pp yprove their value1 90 9% R d t f hi d l it1. 90.9% - Reduce cost of ownership and complexity
2. 83.7% - Address integration with existing investments
3. 81.9% - Complete original and promised product road map
4. 78.7% - Reduce cost of maintenance or show value
5. 74.7% - Renewed focus on innovation and Web 2.0
6. 68.3% - Better usability
7. 67.1% - Improved Integration to Microsoft Office
8. 61.1% - Less bullying and more relationship
© 2009 R Wang & Altimeter Group, LLC
8. 61.1% Less bullying and more relationship
Source: October 2009 Altimeter Group Survey “What we want from our RP vendor?” List of priorities from 221 global enterprise apps customers
16
New social business/social enterprise papps exhibit 10 key characteristicsDynamic user Business process
fCommunity
dexperiences
• Role-based design
focus
• Configurable & adaptive
connectedness
• Engaging for all design
• Consistent experience across
adaptive• Outcome-
focused & results-
all stakeholders
• Pervasive & natural across
channels & deployment options
resultsoriented
• Proactive, predictive, &
natural collaboration
• Self-learning & self-awarep
• Contextual & relevant delivery of i f i
p ,actionable • Secure & safe
© 2009 R Wang & Altimeter Group, LLC
informationSource: August 24th, 2009 Software Insider’s POV “Monday’s Musings: 10 Essential Elements For Social Enterprise Apps” http://bit.ly/130WiO.
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Organizations already use a wide g yvariety of Web 2.0 tools
© 2009 R Wang & Altimeter Group, LLC Source: June 2009 McKinsey Global Survey “How companies are benefiting from Web 2.o”
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Web 2.0 technologies deliver greater g gknowledge sharing and collaboration
© 2009 R Wang & Altimeter Group, LLC Source: June 2009 McKinsey Global Survey “How companies are benefiting from Web 2.o”
Agenda
19
Agenda• Four massive forces of change• Future of business• Evolution of enterprise apps• SaaS delivers the future today• Recommendations
© 2009 R Wang & Altimeter Group, LLC
SaaS users enjoy 7 key benefits
20
SaaS users enjoy 7 key benefits
Richer user experience and user productivityRicher user experience and user productivity
Rapid IT implementation and optional higher quality deploymentRapid IT implementation and optional higher quality deployment
p p yp p y
Minimal upgrade hasslesMinimal upgrade hassles
More frequent cycles of innovationMore frequent cycles of innovation
Access to the “always-on” SaaS tools regardless of locationAccess to the “always-on” SaaS tools regardless of location
pgpg
Anytime scalability and dynamic capacityAnytime scalability and dynamic capacity
Subscription pricingSubscription pricing
© 2009 R Wang & Altimeter Group, LLC
Source: Altimeter Group September 2009 SaaS Benefits Survey of 91 end user clients and vendors.
SaaS adoption moves from tipping 21
point to mainstream
Are you actively considering software as an OnDemand (SaaS) service?
On Demand
On PremiseOn Premise
© 2009 R Wang & Altimeter Group, LLC Source: October 9, 2009 BofA Merrill Lynch Global Research “CIO Survey”
Organizations spending more on SaaS22
and less on OnPremise perpetual license
Favor perpetual license OnPremise software (e.g. Oracle, SAP, Microsoft, etc.) over OnDemand subscription (e.g. Salesforce.com, NetSuite, Concur, Successfactors, Taleo, Workday, etc.)
No change in relative allocation
Cutting back on perpetual license OnPremise software and spending more on OnDemand subscription
© 2009 R Wang & Altimeter Group, LLC Source: October 9, 2009 BofA Merrill Lynch Global Research “CIO Survey”
Despite the economy, SaaS adoption 23
accelerates as customers find value
© 2009 R Wang & Altimeter Group, LLC Source: October 9, 2009 BofA Merrill Lynch Global Research “CIO Survey”
Agenda
24
Agenda• Four massive forces of change• Future of business• Evolution of enterprise apps• SaaS delivers the future today• Recommendations
© 2009 R Wang & Altimeter Group, LLC
Align your business priorities to your 25
organization’s hierarchy of needs
BrandBrand
Strategic ate
gdifferentiation
Sales and growthc cl
ima
Sales and growth
Operational efficiencyonom
i
Operational efficiency
Regulatory compliance and controls
Eco
© 2009 R Wang & Altimeter Group, LLC
Regulatory compliance and controls
Design your enterprise strategy across
2626
Design your enterprise strategy across 4 dimensions
Organizational dynamics
Solution portfolio
management
Enterprise pStrategy
Business process
optimizationTechnology
effectiveness
© 2009 R Wang & Altimeter Group, LLC
h h ff
27
Start with these effective strategies…
Focus on short term gains to pay for long term innovationsFocus on short term gains to pay for long term innovations
Optimize commoditized business processes through shared services and BPOOptimize commoditized business processes through shared services and BPOthrough shared services and BPOthrough shared services and BPO
Consolidate infrastructure around a few key t h l iConsolidate infrastructure around a few key t h l itechnologiestechnologies
Use regulatory compliance requirements to Use regulatory compliance requirements to
© 2009 R Wang & Altimeter Group, LLC
g y p qpay for future investments
g y p qpay for future investments
Consider the following key criteria for 28
future apps decision making
Usability of the solutionUsability of the solution
Pace of innovationPace of innovation
Abili d hAbili d hAbility to adapt to changesAbility to adapt to changes
Ease of maintenanceEase of maintenanceEase of maintenanceEase of maintenance
ScalabilityScalability
© 2009 R Wang & Altimeter Group, LLC
ScalabilityScalability
Use the SaaS Bill of Rights as a guide 29
to a win-win relationship
© 2009 R Wang & Altimeter Group, LLC
Source: Altimeter Group October 12th, 2009 “Customer Bill of Rights: SaaS”
Final thoughtsFinal thoughts…
We can adapt to massive changes.
ll ll lWe will not allow our legacy technologies to hold us back.
Our organizations can thrive by d i d i i iadapting and integrating emerging
technologies.
© 2009 R Wang & Altimeter Group, LLC
Thank You
R “Ray” Wang
@ l [email protected]://blog.softwareinsider.org
Twitter: @rwang0gwww.altimetergroup.com
© 2009 R Wang & Altimeter Group, LLC
Enterprises face massive and 32
unprecedented levels of change• Changing workplace norms• Distributed nature of work
• Loss of faith in capitalismC dit h t • Distributed nature of work
• New work force models• Mixed generations
• Aging workforce• Global talent
• Commodity shortages• Political instability• Sustainability and
environmental focus• Economic crisis Macro Workplace • Global talent• Economic crisis• Price spikes
Macro conditions
Workplace dynamics
• Globalization k h ld
• Pace of obsolescenceincreasing fasterthan the rate of
Business Models
Pace of tech
• New stakeholders• Goliath vs start-up
• Public/ private /hybrid• Regulation/ deregulation
B i
than the rate ofadoption
• Consumer tech aheadof enterprise
• Digital divide closing
Modelsadoption
© 2009 R Wang & Altimeter Group, LLC
• Business process outsourcing
around the world• Connected ubiquity drives
new adoption models
… and put together a road map 33
centered around your investmentBusiness Solution Organizational
Dynamics
• Prioritize business
Business Process
Optimization
• Focus on automating
Technology Effectiveness
• Leverage reporting
Solution Portfolio
Management
• Renegotiate maintenance business
requirements by hierarchy of needsInclude ERP
automating non commoditized processesUse workflow
reporting tools and BI
• Reduce paperwork with
maintenance contracts before DecemberInnovate • Include ERP
requests in business plans
• Use workflow to stream line business process
• Identify areas
with electronic sig
• Innovate around ERP with SaaSsolutions
• Enable other • Identify areas for Office integration
• Address compliance
• Enable other collaboration tools for productivity
© 2009 R Wang & Altimeter Group, LLC
compliance