The track sessions were aligned by job role. Here are all the tracks:
- Track A: CIO
- Track B: Enterprise Architecture professional
- Track C: Application Development & Program Management professional
- Track D: Information & Knowledge Management professional
- Track E: Sourcing & Vendor Management professional
- Track F: Business Process & Applications professional
- Track G: IT Infrastructure & Operations professional
- Track H: Security & Risk professional
- Track I: Technology Product Management & Marketing professional
As an IBM consultant, I deal with all of these different kinds of professionals, so I thought I would try to attend a variety of sessions this week. Here are my notes from a few of these:
- Transforming IT for Lean Times: Organizational Structure
The Forrester analyst presented the concept of "Lean IT". This is not just a process to make IT skinny or marginal through commoditization. Rather, it is to meet business needs through differentiated services. Gone is the "one-size fits all" mentality. Lean IT can be used to streamline IT capabilities to enable employees to get their jobs done. Continuous improvement is done through a series of "Rapid Improvement Events" (RIE), a methodology known as "Kaizen Blitz".The focus is to reduce waste, including rework, firefighting, meetings, unnecessary reports and paperwork, working groups, and task forces. A common mistake is to reorganize departments before understanding the fundamental requirements, or make every employee use the same PC just to simplify the job of IT.
Traditionally, IT departments had three jobs. The first is Utility, to keep the lights on and systems running. The second is Productivity, to enhance existing systems and applications. The third is Innovation and Business Transformation.The problem has been that many IT leaders have been "IT Supply Managers" ensuring there is adequate supply of these. Instead, the Forrester analyst suggests redefining the role to one of "Demand Broker". Some companies have already done this. The CIO manages the demand for IT from Business Units, Business Processes, Information Workers, as well as suppliers, business partners and customers. As a demand broker, the CIO could then use these demands to optimize and prioritize IT resources.
- Why Tech will lead Economic Recovery
The current 5.7 percent drop in IT spending in 2009 during this global financial meltdown is actually similar to the drop in ITspending in 2001-2003. However, the Forrester analyst anticipates that IT spending will bounce back in 2010.His reasoning came from looking at past IT spending trends since the 1950s. He found four clear sequencesconsisting of 6-10 years of growth and investment in IT, followed by 6-10 years of refinement and digestionwhere business leaders try to make the most use of these investments. The four sequences of investment and growth are:
- 1959-1970 mainframes, automating high-frequency transactions
- 1976-1985 personal computing, empowering individual productivity
- 1992-2000 network computing, enabling e-business and the internet boom
- 2008-2016 smart computing, optimizing business results through flexible and responsive IT that incorporates awareness and analytics to solve new business problems.
He argued that this trend was already starting to show itself. There was an uptick in IT spending in 2008 before the financial melt-down, and he feels this is why the tech industry sector will drive the economic recovery in 2010. The top five industries that will lead the adoption of smart computing will be: Government, Healthcare and Life Sciences, Utilities, Education, and Personal Services. These represent 54 percent of IT spending in the US, and also represent a large portion of the US stimulus package.
Smart Computing can be summarized as the "Four A's":
- Awareness - instrumentation like RFID chips, sensors and video surveillance
- Analysis - intelligent recognition of patterns and finding anomalies
- Alternatives - identifying alternative responses
- Actions - dealing with threats or capturing opportunity
Smart computing in these industries reflects the need for more vertically-aligned industry-specific solutions.IBM is well-positioned in this area, having both the hardware, software and services for smart computing, as well as deep industry-specific expertise. Other industry-specific vendors, like General Electric and Siemens, have the vertical alignment, and are working to adopt smart computing. Meanwhile, Oracle/Sun and Microsoft are also investing in smart computing, and have the potential to develop more vertically-aligned industry-specific solutions. Other IT vendors will have a choice to make: stay horizontal or go vertical.
- ERP's Evolving Landscape: Impact for Application Professionals
Enterprise Resource Planning (ERP) software vendors are consolidating, with
the average ERP deployment 10 years old, triggering many to re-evaluate how
well the promises of ERP match the reality. On the positive side, ERP promised to reduce the total number of applications, provide somefinancial stability and integration, and for the most part the Forresteranalyst felt these promises were mostly met. However, in deploying newcapabilities, lowering TCO or establishing a partnership between vendorand client, ERP vendors got low marks.
Customers are now demanding more end-to-end solutions, especially withmore industry-specific functionality. Technologyadvances should be used to boost the business value. For example,ERP lags in SaaS adoption. Frequent upgrades to meet regulatory requirementscould drive stronger interest in SaaS deployments of ERP.
Customers would also like the end-user experience with the ERP to bemore role-based, with actionable insight and intelligent responses related to the user's job responsibilities. Hybrid ERP solutions that span deploymentacross on-premises, SaaS and managed hosting services might be neededto ease this transition.
- What You Should Know Before Signing a Contract with a Disaster Recovery Services provider
This session was less about RTO or RPO, and more about broader considerations.The leading disaster recovery service providers are IBM Business Continuityand Resiliency Services [BCRS], SunGard, ICM/UK, and HP. The Forrester analyst did not think HP was treating this as strategically as they could,and often are behind the scenes through other business partners.
Will this [oligopoly] continue? Theanalyst thinks there will be an increase in the number of disaster recovery service providers. Contenders includeTelcos like Qwest, AT&T, BT, and Verizon Business; SMB-focused firms like i365 and Venyu;and cloud computing IaaS providers like SAVVIS.
So what should you consider when putting out an RFP? Here were a few suggestions:
- Make sure there are schedules for all of your platforms (x86, Unix, System i and System z)
- Identify all fees, including "declaration fee" and "occupancy fee"
- Costs of Disaster Recovery test exercises, including how many, and their duration in days.
- How quickly you can access their facility after you declare the disaster
- Whether the provider has alternative Data Centers, depending on the scope of the regional disaster
- Evolving the 4 P's of Marketing to Grow Revenue in Emerging Markets
I was in IBM marketing for seven years. For those without marketing backgrounds, the 4 P's of marketing are product, promotion, placement and pricing. There is no "global" audience, eachcountry, region or locale has unique characteristics, and requires go-to-market (GTM) strategiesbe tailored to each situation. For example, in Russia, decision makers are more influenced byWeb sites and Industry magazines; in Europe, they are more influenced by peers and word-of-mouth;and in Latin America, direct sales force are most influential. In many countries, blogs are more influential than they are in the United States.
Companies of all sizes can do the right things. For example, IBM translates its materials into 31different languages. Meanwhile, 50-person [LogMeIn] has 17 million users because they have localized their offering, and even allow online purchase in local currencies. Third party consultants that knowthe local region may be needed to break into new geographies.
Certainly the opportunity is there. Worldwide, there are an estimated 9 million small businesses,and another 630,000 medium size businesses. These SMBs employ 22 percent of the workforce in Russia, 55 percentin Europe, and 80 percent in Japan.To reach them, you may need to explore new channels,such as government agencies, academia, non-government organizations (NGO), and trade associations.The traditional supply chain of vendor, distributor and reseller may need be redefined as a demandnetwork, with co-marketing programs, peer-to-peer relationships and shared knowledge resources.
IBM collaborated with the International Finance Corporation [IFC] tocreate the [SME Toolkit], a resource and online communityfor small and medium enterprises, translated and localized into several languages. IBM also workedwith Chinese government to select Wuxi, China as the location for its Cloud Computing center as partof the [Wuxi Tai Hu New Town Science and Education Industrial Park].
This was a great week! Lot's to digest and think about.