Vernon Turner

Preparing the CIO for the next wave of ICT innovation

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Senior Vice President, IDC’s Enterprise Infrastructure

Copyright 2010 IDC. Reproduction is forbidden unless authorized. All rights reserved.

Preparing The CIO For The Next Wave Of ICT Innovations & Business Models

Preparing The CIO For The Next Wave Of ICT Innovations & Business Models

Vernon TurnerSenior Vice PresidentResearch & Sustainability

© 2010 IDC

AgendaAgenda

© 2010 IDC

The ICT Innovation DilemmaThe ICT Innovation Dilemma

4

Deployment Cost

Business Risk

Business Value

Reasonable Cost

Optimal Risk

Greatest Business

Value

None Modest Moderate Radical

Degree of ICT Changes

- +

- +

-

+

Source: IDC 2010

© 2010 IDC 5

Bus

ines

s A

lignm

ent

ICT Efficiency

Balancing The ICT Budget To Business Revenue? Balancing The ICT Budget To Business Revenue?

ICT Led

1.8%

Business Led

2.9%

No Leadership

2.5%

Balanced

2.3%

In the last decade in ICT costs went from 4% of revenue to 2.8%How Sectors (Retailers) Can be Segmented by IT Spending

© 2010 IDC

The New Normality A Balancing Act of Optimize, Grow, Comply The New Normality A Balancing Act of Optimize, Grow, Comply

6

© 2010 IDC

Key Investment Areas in 2010Key Investment Areas in 2010

7

What are your three most important areas for investment in the next 12 months?

The Desktop Environment

The Application EnvironmentBusiness Process Improvements

The Datacenter Environment The Network Environment

60% will investTop priority: 23%

52% will investTop priority: 25%

68% will investTop priority: 21%

52% will investTop priority: 17%

68% will investTop priority: 17%

Source: IDC European Services Survey, 2010, n = 673

© 2010 IDC 8

“Traditional Business”“Traditional Business”

Command and control

Assembly line business processes

Top down decision-making

Internal focus

Technology focus

© 2010 IDC 9

Transformation #1. What is a “Social Business” Transformation #1. What is a “Social Business”

Transparent

Interdependentecosystem of partners

Distributed problem solving

Customer engaged in ongoing relationship

Power shared & distributed

Customer defined products / services

Leadership coaches not controls

Service “when, where, how”the customer chooses

Anticipated customer needs

Employees empoweredto contribute

ecosystem of partners

Social Business Is Not Technology & ProcessPeople Become The Platform

© 2010 IDC

Social Software SolutionsSocial Software Solutions

ConsumerApps CRM Content

AppsCollab PLM

Socialytics

Social Platforms

Stand-a-loneSocial Apps

EmbeddedSocial

Features

Stand-a-loneSocial

Platforms

HCM FinancialsSCMEPPM

© 2010 IDC

Public Cloud spending of $23 billion, up 35%; 65% in US

700 million social networkers; “socialytic” apps

1 billion mobile Internet users; 500,000 mobile phone apps

630 million laptops in place; 80 million netbooks

50 million servers in place, half virtual; micro servers coming on line

20 million smart meters in US, 25% of US with EMR

1.2 billion mobile phones ship; 220 million smart phones

7 billion communicating devices in place, 5 billion not computers

2010: Artifacts of The Intelligent Economy

© 2010 IDC

Mobile InternetUsers (M)

Non TraditionalDevices

Information Information"Files"

User Interactions(B per Day)

It Staff

WW Growth from 2010-2020

1.4X4X

29X

75X

One Impact of ConsumerizationOne Impact of Consumerization

61X

5X

12

© 2010 IDC

Intelligent Interactions - 2020Intelligent Interactions - 2020

13

25M Apps450B Interactions a Day

2T Financial Transactions

4B People

31B Devices

1.3T Tags/sensors

© 2010 IDC 14

Transformation #2: Professionals - 2020 Transformation #2: Professionals - 2020

© 2010 IDC

Customer Self Service

Employee Self Service

Department Apps

Cloud & SaaS

Data Center Automation

Linked Applications

Real-Time

© 2010 IDC 15

Implications for CIOsImplications for CIOs

Complexity Is The Issue

“Solutions” Aren’t Enough

© 2010 IDC

Innovation Or Invasion – Your employees and your B2B customer employees Innovation Or Invasion – Your employees and your B2B customer employees

16

82% -Desk Top PC

71% - Laptop PC

52% - Mobile Phone

37% - Smart Phone

Top Devices Used For Business Top Devices Used For Business

97% -Email

93% - Web Browsing

66% - Shared Docs

55% - Web Mail

29% - Google Apps

© 2010 IDC 17

“Pervasive BI”

Pervasive BI results when organizational culture, business processes, and technologies

Are designed and implemented with the goal of improving the strategic, operational, and tactical decision-making capabilities of

A wide range of internal and external stakeholders

© 2010 IDC 18

Business Analytics TrendsN

umbe

r of p

eopl

e

Query, Reporting, OLAP, Data Mining, Statistical analysis

Business intelligence Suites and Analytic Applications

Intelligent Process Automation

Static,Batch

Reporting

Ad-hocQuery & OLAP

DataWarehousing

Knowledge capture

& learning

UnifiedAccess & Analysis

Collaboration&

Workflow

Monitoring & Process Awareness

PredictiveAnalytics

Templates

ETL & Data

Quality

DataModels

DW LifecycleManagement

Scorecards

Dashboards&

Visualization

Alerting

Query, Reporting, OLAP, Data Mining, Statistical analysis

BatchBatchReportingReportingReportingReporting

WarehousingWarehousing capture& learningQuality Management

1975–1989 1990–2004 2005–2020

Decision Management

Technology

Solutions

Num

ber o

f peo

ple

IT Staff

End-Users

Analysts

Data/Content

© 2010 IDC

Transformation In ActionTransformation In Action

Real-time flight

rebookingbased on

risk of losing

business

Ambassadorsintervene with

losers to preservelong-term business

Predictivebehavior-based call handling,

sales, even HR

Real-time GPS driven insurance

rates based on driving patterns

19

© 2010 IDC

0% 10% 20% 30% 40% 50% 60%

Supplier Communication

Partner Communication

Market Research

Employee Recruitment

Advertising/PR

EmployeeCommunicaitons

CustomerCommunications

Others

AdvancedPractitioners

What Social Networks are Used For

20Source: A Consumer Revolution in the Enterprise, 2010

© 2010 IDC

Percent I-Workers UsingBoth For Business and Personal Use

•Laptop –PC 61%

• Mobile Phone 52%

• Smart Phone 51%

• Text / IM 47%

• Soc. Networks 36%

• Blog /Wiki 35%

21

Blurring BoundariesBlurring Boundaries

© 2010 IDC 22

* Consumers and Workers

Creating,Capturing, or ReplicatingPersonal

Information

** Trans- ported,Hosted,

Managed,or

Secured

Enterprise Touch** Content

User Data Equates To Enterprise Worries

Overlap:0.6 EB

User* Generated Content: 0.9 EB

20101.2 Exabytes

© 2010 IDC

How Will The Data Centre Respond?How Will The Data Centre Respond?

23

© 2010 IDC

The Real Outcome For VirtualizationThe Real Outcome For Virtualization

24

Source: IDC Server Virtualization 2009

© 2010 IDC 25

Virtualization Maturity Experience and Sophistication Payoff Virtualization Maturity Experience and Sophistication Payoff

© 2010 IDC 26

New Business Cycle for IT Convergence Reigns for the next 10 years New Business Cycle for IT Convergence Reigns for the next 10 years

19901985 1995

Mainframe/minicomputer

MMaaininfframe/minicommppuutter

Integrated architecture

2000 2005 2010

Integrated architecture

Unix/RISC

M

Modular architecture

Transactionalapplications

and Database

ERP, Analytics and Datamarts

Application Development

Web

File/Print and Networking

Collaborative

Integrated

architecture

X86 Servers

X86 SSererverver ersRISC

UUnniixx//RIS

chhiitteeccture

Modular architecture

2015

Microservers?

Compute/Memory

Boards?

Modular

architecture

Bus

ines

s Va

lue

ct and Datamarts

Collaborative

Integgrated

ararchchiitectureConverged

Infrastructure& Private Clouds

Virtualization

Virtualization

File/Print and Networking

M

ers?

ComputemorFile/Print and rFile/Print and

NetworkingrNetworkingyFile/Print and yFile/Print and NetworkingyNetworking

Boarards?Microservrvr ers

pute/Meds

Moodduular

architecturureeVVVirtualizati

PublicClouds

Lower Cost of Computing Per Unit of Work

© 2010 IDC

Final ObservationsFinal Observations

27

© 2010 IDC 28

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vturner@idc.comFollow me at

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