ORACLE PRESENTS
SOCIAL BUSINESS
THOUGHT LEADERS
HOST: CHRISTIAN FINN, SR. DIRECTOR, ORACLE
SPEAKER: ANDY MULHOLLAND, CTO, CAPGEMINI
Is Social Business an Evolution or Revolution?
Andy Mulholland – Group CTO
Capgemini Group
Technology is at a Crossroads Today
What is the role of IT dept in the
enterprise today?
The EVOLUTION of Back Office
What role should Technology be
playing in my business today?
Technology has become the
means by which Enterprises and their
Employees can create new revenues
by servicing customers and markets
in new innovative ways.
The REVOLUTION in the ‘Front’ Office
The Revolution Leads to Business Innovation
The three common forms of innovation
To create VALUE though a
new market or product
For SERVICABILITY to secure
existing and new customers
To change COST of production
and size of available market
A game-changing move that
provides sustained ‘first
mover’ advantage
Where market or product
cannot be innovated, service
can be used
A break through in any
element of the operation of
an enterprise
The barriers to innovation
Defocusing and loss of Optimisation
Conway’s Law
The immediate and obvious challenge that
any change will bring to an Enterprise
Enterprises cannot change beyond the
constraints of their communications
BUT Change is inevitable
Innovation is about controlling the timing and basis of change to be advantageous to our own business
And the Misunderstood Topic of ‘Innovation’ (in Business Models)
Affinity Club
MBNA
Exclusive membership
offering advantages for
subs and loyalty
Pay-as-you-go
SalesForce.com
Replace a CapEx product
with an OpEx service
Brokerage
Century 21st
Match buyers and sellers
for a fee on successful
transactions
Premium
Photocopiers
Expensive item free,
creating a tied market for
consumables
Bundling
iPod / iTunes
Construct new proposition
by simplifying complex
transactions
Reverse Auction
Elance.com
Set high price and allow
bidding downward
Crowd Sourcing
Wikipedia
Outsourcing content
construction in exchange
for broader view
Reverse
Premium
iPod
Provide low-cost
consumables to sell
high-margin product
Disintermediation
WebMD
Using technology to
deliver direct not through
limited local source
Product to
Service
Hilti
Switch from selling a unit
to providing units as a
managed service
Fractionalisatin
NetJets
Customer pays for a part
of the product but gets full
use when needed
Smart Devices
Vodafone
Package combinations of
product and services to
maximise market
Freemium
Skype
Basic service is free and
ubiquitous with premium
chargeable
Standardisation
MinuteClinc
Low-cost standardised
solution instead of
high-cost customisation
Leasing
MachineryLink
Recycle expensive
products through a
managed lease
Subscription
Club
NetFlix
Subscription fee creates
a tied in customer base
LowTouch
SouthWest
Low cost, self service in
place of high cost with
high service
User
Communities
Angie’s List
Managed network for
common interest with
revenue by advertising
Negative
Operation
Amazon
Re-arbitrage the ‘sell and
buy’ cycle to finance the
trader
Source: Seizing the White Space
Harvard Business Press by Mark W Johnson
So Two Very Different Business Models and Requirements
Client – Server
Information Technology
Web 2.0 and Clouds
Business Technology
 Centralisation for Efficiency
 External Market Optimisation
 Automation of core Procedures
 Provides local market differentiation
 Cost Reduction
 People Driven Interactions
 Recharged Overheads
 Expertise with Collaboration
 Leverage of Enterprise resources
 Open with Privacy
 Data-driven Transactions
 Extreme flexibility, frequent change
 Computer and Application centric
 Direct Bus Unit Attributed cost
 Closed and Secure
 Services and Standards based
 Justification is COST reduction
 Value creation in sales/margins
A ‘Front Office’ Transformation led by Business Users & Customers
You don’t any longer do the following;
Check Cinema showings by using the newspaper;
- Buy tickets online
Go to a travel agent to research your holiday;
- Book on line
Check a map for directions when driving ;
- Use a navigator
Visit a Bank for every transaction;
- Online bank account
Develop and send off photographs;
- Print at home or share by cloud
Pay Bills by cheque or at an Office;
- Online payments
But you do use a
wide variety new
services from
Internet Connected
Clouds
And, and , and, personal behaviour has and is changing many industries;
Because most of you bought a Smart Phone, or a Tablet or a Home PC;
According to DigiTimes sources, non-Apple tablets are set to ship at
134% more units for 2012 than in the current year. In raw numbers,
expect 44-45 million non-Apple tablets to ship in 2012, up from
19-20 million. The large increase is attributed to Google’s
next major Android release, codenamed Ice Cream Sandwich,
2011 iPad shipment forecast cut to 40M as
Apple faces 'the mother of all backlogs'
You don’t buy an iPad to use with Enterprise IT
Apple Mac Downloads – Dec 12th 2011
The majority of Smart Phones are user owned
Android Smart Phone up 379% in Q2 2011,
Android is now the No. 1 smart phone OS worldwide.
The smart phone market grew 73% year-over-year to
more than 107.7 million units shipped last quarter,
“In just three years the App Store changed how people get mobile apps,
and now the Mac App Store is changing the traditional PC software
industry,” said Philip Schiller, Apple’s senior vice president of
Worldwide Marketing. “With more than 100 million
downloads in less than a year, the Mac App Store is the largest
and fastest growing PC software store in the world.”
The Primary Purpose for Each is Different
(and therefore so should the deployment and governance!)
Market
Customers
Application
Outside - In
Suppliers
Inside - Out
Back Office IT
Cost reduction and
process automation
Front Office
Market and Information
value producing
Partners
Web & Cloud Services
Innovation in
Business Models
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PRESENTATION V5.0.PPT
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Outside – In is Enabled by Four Big Game Changing Capabilities
Mobility
Social Tools
Any Connection
Any Device
Any Community
Any Media
Any Service
Any Person
Cloud
Big Data
Computer Resources
Apps and Services
On Demand
Real-Time Information
And Intelligence
Storage and Search
Insert "Title, Author, Date"
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Making it Understandable by an Example: Servicing the Aircraft
Traditional IT Applications
Cloud based Services
Individual synchronised predictions on
plane scheduled arrival and activities with
staff inside the firewall
Real time operations and reactions
between staff sharing information and
communications
Outside – In
Back Office IT
Back Office IT
Back Office IT
Back Office IT
Back Office IT
Back Office IT
Inside – Out
Copyright © 2011 Capgemini. All rights reserved |
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The Transformed Enterprise has Added a Whole New Environment
Inside – Out
Back Office IT
Enterprise IT Structured by
Data and Procedure
Work is delivered as expected
to the Worker/Manager
Roles and
Responsibilities
are clear
eMail is effective
to communicate
to these known
people and
process
Outside – In
Front Office
Business Technology
Unstructured Events
Respond to the buyer
and the market
Unable to tell who may
know the answer or the
names of all the people
Social Networks
are the most
effective tool as
they are ‘topic’
centric and
therefore scale
Copyright © 2011 Capgemini. All rights reserved |
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The Outside-In vs. Inside-Out Paradigm
Internally Focussed
PC and Desktop
ERP and BI
Development Methods
People & Event Centric ….Computer & Data centric
Shared and Collaborative ........ Closed and Limited
Standards defined …..…………………… Proprietary
Loose Coupled ……. Close Coupled
Stateless …………………... State full
Non Deterministic ….. Deterministic
Services Based ………. Applications
Web/Cloud Model …… Client Server
Technology
Externally Focussed
‘post PC and Mobility’
Tablets and Phones
Social Networks,
Real time Agility
Big Data
Back Office ……………..Front Office
Operational …….Sales & Marketing
Cost Savings ………..Value Creating
Compliance ……………... Innovative
Invest/Overhead ……. Consumption
Business
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