This blog is for the open exchange of ideas relating to IBM Systems, storage and storage networking hardware, software and services.
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Tony Pearson is a Master Inventor, Senior IT Architect and Event Content Manager for [IBM Systems for IBM Systems Technical University] events. With over 30 years with IBM Systems, Tony is frequent traveler, speaking to clients at events throughout the world.
Lloyd Dean is an IBM Senior Certified Executive IT Architect in Infrastructure Architecture. Lloyd has held numerous senior technical roles at IBM during his 19 plus years at IBM. Lloyd most recently has been leading efforts across the Communication/CSI Market as a senior Storage Solution Architect/CTS covering the Kansas City territory. In prior years Lloyd supported the industry accounts as a Storage Solution architect and prior to that as a Storage Software Solutions specialist during his time in the ATS organization.
Lloyd currently supports North America storage sales teams in his Storage Software Solution Architecture SME role in the Washington Systems Center team. His current focus is with IBM Cloud Private and he will be delivering and supporting sessions at Think2019, and Storage Technical University on the Value of IBM storage in this high value IBM solution a part of the IBM Cloud strategy. Lloyd maintains a Subject Matter Expert status across the IBM Spectrum Storage Software solutions. You can follow Lloyd on Twitter @ldean0558 and LinkedIn Lloyd Dean.
Tony Pearson's books are available on Lulu.com! Order your copies today!
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IBM is doing a bit of year-end housekeeping. The Storage Community (storagecommunity.org) will be discontinued as of January 1, 2017.
IBM will continue to host a community for all of its followers and contributors to share insights on the latest trends in storage at [ibm.co/StorageSolutions].
All of the most recent IBM content from storagecommunity.org will now be available at this new domain. IBM hopes that you will continue to engage in its community of storage industry thought leaders.
If you would like to contribute to the new community, please [register here]. Simply click the silhouette icon in the top right-hand corner of the page and select "register." Input your email address and create a password, then sign in. You will receive an email from IBM with further instructions to get you set up.
IBM's twitter handle (@SmarterStorage) will also be sunset as of January 1, 2017, but I encourage you to follow @IBMStorage, or my own twitter handle @az990tony, for the latest storage news and announcements from IBM.
Last Thursday, Dec 15, I had the pleasure to present to 162 clients and IBM Business Partners, followed by the premiere showing of [Rogue One, a Star Wars movie]!
(FCC Disclosure: I work for IBM. This blog post can be considered a "paid celebrity endorsement" for IBM products and services. I have no financial interest in Lucasfilm Ltd, or its parent company Disney, LEGO company, or any competitor mentioned in this post.. I was not compensated to review this film or mention it on my blog. All graphics from the film used in this blog and related presentation were publicly available under the U.S. "fair use" doctrine. There are no spoilers in this blog, so keep reading!)
This event was a collaboration between:
Arrow, one of IBM's distributors
Corus360, an IBM Business Partner
Regal Medlock 18, a theater with comfy seats with a bar that serves beer and wine
As a public speaker for IBM, I get to travel all over the world, and throughout the United States. This trip wraps up my travel for 2016, with 34 weeks on the road!
Normally, when I am asked to present, I am given a list of products or topics to cover. This time, I was just given the title "Has Your Data Gone Rogue? -- Using IBM Flash and solutions to obtain enhanced business insights" and the suggestion to keep within the theme of Star Wars.
I had 45 minutes to cover whatever I thought would be something of interest to the clients in the audience, which spanned a variety industries from Healthcare and Financial services, to Retail and Manufacturing.
I turned to mind-mapping software to brainstorm some ideas. On my smartphone, I use an app called [SimpleMind], and on my laptop, I use [View Your Mind (vym)]. Here is what I came up with:
I arrived to the theater early to setup and mingle with the clients in the lobby. The sponsors that organized this event had gifts to raffle off, including two drones, and three Star Wars themed LEGO sets.
I was told to be done by 7:30pm. It turns out that the movie is streamed electronically, rather than having the actual media distributed physically to the theaters, as a way to prevent piracy.
My PowerPoint charts were in 16:9 format to fill the screen. This was perhaps the biggest screen I had ever presented on! I look so tiny in comparison!
IBM has been a leader in all-flash arrays for the past three years in a row, and as an IBM Business Partner, Corus360 has been one of our top sellers in the Southeastern United States. IBM offers a wide array of choices, from DS8000 to FlashSystem to the new [IBM DeepFlash Elastic Storage Server (ESS)].
Rebels are inquisitive. IBM is considered number one in Analytics. For every type of question, IBM has analytics to help answer. Here are some examples:
What is happening? -- Descriptive Analytics
Why did this happen? -- Diagnostic Analytics
What might happen next? -- Predictive Analytics
What actions should we take? -- Prescriptive Analytics
I focused on the use of Hadoop and Spark with the [IBM Spectrum Scale] software pre-installed on the DeepFlash ESS device. The DeepFlash ESS combines powerful POWER8 servers with the DeepFlash 150, a 3U high JBOF that holds up to 64 solid-state boards 8TB each, optimized for analytics of unstructured data content.
Spectrum Scale is supported on any open source distribution of Hadoop and Spark, and is an optional add-on to [IBM BigInsights]. [IBM HDFS Transparency Connector] has 100 percent compatibility, allowing Hadoop and Spark analytics programs run directly without modification.
To provide valuable insight to the storage environment itself, IBM offers IBM Spectrum Control. The newest edition is [IBM Spectrum Control Storage Insights], a Software-as-a-Service (SaaS) that charges on a monthly per-capacity basis. Perfect for the Rebel Alliance on a tight budget and schedule!
The Galactic Empire has a different set of problems. They are behind schedule, having worked on the Death Star for the past 20 years, and upper management is growing impatient. A major test is imminent to prove its progress.
To speed development and test efforts, IBM offers a variety of FlashSystem products:
IBM FlashSystem 900
the World's Fastest Storage®, roughly 5 to 10 times faster than competitors based on commodity Solid State Drives (SSD) like Dell EMC XtremIO and PureStorage.
IBM FlashSystem V9000
adds the robust functionality of IBM Spectrum Virtualize, with Real-time Compression, Thin Provisioning, FlashCopy snapshots, and remote mirroring. Like the IBM SAN Volume Controller and Storwize family of products, the FlashSystem V9000 can virtualize almost 400 different storage devices from a variety of vendors.
IBM FlashSystem A9000 and A9000R
add the robust functionality of IBM Spectrum Accelerate, offering Real-time compression and data deduplication, making it ideal for Cloud, Virtual Machine and Virtual Desktop deployments.
As we learned in earlier episodes I to III of the Star Wars saga, a big problem was too many clones. IBM Spectrum Storage family has introduced the newest member: IBM Spectrum Copy Data Management. This software creates and catalogs data base clones to help with development and test efforts, reducing the number of rogue copies.
Lastly, the Empire must keep its secrets safe and protected. I covered the basics of data-at-rest encryption, the use of symmetric and asymmetric keys, [IBM Security Key Lifecycle Manager (SKLM), and how these are deployed on IBM flash, disk and tape products.
Then, we watched the movie. I found it quite entertaining!
Well, it's Tuesday again, and you know what that means? IBM Announcements!
I just got back from my vacation, so this is a guest post from my colleagues Moshe Weiss, Senior Manager, Development and Design, IBM Storage; and Diane Benjuya, Portfolio Marketing Manager for IBM Spectrum Accelerate.
1. What is IBM announcing?
Today IBM announces another leap forward in storage management, with the availability of IBM Hyper-Scale Manager version 5.1. In April 2016, when IBM announced IBM FlashSystem A9000 and A9000R, they also introduced a fully revamped GUI: IBM Hyper-Scale Manager 5.0. That version brought FlashSystem A9000/A9000R clients a terrific new storage management experience, with advanced look and feel, analytics tools, and other enhancements for managing smarter, with greater simplicity and in less time.
Hyper-Scale Manager 5.x dramatically reduces task time -- by 45% for this task
With Hyper-Scale Manager 5.1, IBM is bringing this exceptional GUI and unified user management experience across the entire set of Spectrum Accelerate-based products, which IBMers internally refer to as the "A family":
IBM Spectrum Accelerate software
IBM XIV Storage System
IBM Hyper-Scale Manager lets you view and move quickly across software-defined, disk based, and all-flash storage in seconds, equipping you with the information you need to ensure every application is performing at its peak.
2. What is innovative about the new GUI -- how does it help clients?
IBM Hyper-Scale Manager 5 makes storage management more insightful and easier in multiple ways, helping clients find info, act and troubleshoot faster. Concepts implemented include: web application with tablet-ready design, single page application, strong navigation scheme, smart filter with analytics, capacity trend/forecast, call for action, better communication using social media. All this helps users make fast, informed decisions while being able to see at a glance the impact of any change on the environment, including into the future. IBM team has designed it over the past three years working closely with clients and using Design Thinking methodology.
Get a holistic view of your storage
Provisioning, Monitoring and Troubleshooting
Find everything, get anywhere
Call for action!
The IBM team applied an "emotional design" approach that makes users feel emotionally attached to GUI for its coolness and elegance -- making the experience not just more productive but also more pleasant.
Version 5.1 brings many exciting and important new features to ease the client's day to day activities. Here are some key ones:
Managing your "A Family" in one UI
Instantly gain insights, spot problematic areas
Integrated Capacity Analytics
4. Any unique features that will be focused on?
The IT industry is entering a cognitive era, right? So IBM has brought cognitive into the GUI. The GUI actually learns each user's habits and preferences over time and adapts the experience to the specific user.
5. How does 5.1 add value to the family of products based on Spectrum Accelerate software?
Hyper-Scale manager makes this powerful family for private, public, hybrid block storage clouds that much more attractive and relevant. Just imagine yourself:
Waking up, driving to the office, opening the UI and seeing that your FlashSystem A9000 systems are doing worse than your XIV in terms of IOPS. Scary, but no worries.
You drill down to the specific FlashSystem A9000 by comparing IOPS. You find that a QoS performance class is deliberately reducing performance for the host. A quick analysis, and you find that it is due to the contract with the host. After a short chat with the host admin, you establish better terms, and decide to stop the IO limitation on the volumes and move them to a disk-based XIV to reduce dollar-per-TB cost.
You look for the best candidate by looking at the capacity trend/forecast charts for each XIV and at growth rate per month. You compare performance metrics and chose the preferred XIV to move the volumes to.
You migrate the volumes from the A9000 to the chosen XIV using the same interface, creating connectivity in one click. You then add the same host configuration as for the A9000 to the XIV in a second click. Then just map and monitor the new IO statistics with a third click. Easy!
Imagine carrying out your daily work and decisions -- creating volumes, monitoring, mirroring, troubleshooting and configuring -- across different systems of different types within the family in single clicks -- without the need to move between user interfaces. You can think of Hyper-Scale Manager 5.1 as a GUI come alive: a dynamic, breathing, thinking work enhancer that simplifies and helps you make the most of your investment.
Come see it in action! Register now for the [Live demo webinar], scheduled for Wednesday, November 9, 2016, from 10am to 11:30am MST!
Download the software from [IBM Fix Central], installation is one click and takes just seconds!
Here is an infographic!
Comments? Feedback? Enter them below. Both Moshe and Diane would be pleased to hear from you!
Well, it's Tuesday again, and you know what that means? IBM Announcements!
(OK, yes, today is Friday, but I was busy getting married on Tuesday, so IBM pushed the announcements out one day to Wednesday, and technically I am writing this blog post during my honeymoon vacation, so the IBM marketing team and my new wife both cut me some slack. Work/Life balance is all about compromises, right?)
IBM DS8880 Storage System
The IBM DS8880 comes in three models, the DS8884 entry level, the DS8886 enterprise level, and the DS8888 all-flash array. IBM offers 1, 2, 3 and 4 year warranties.
The new High Performance Flash Enclosure (HPFE) Gen2 delivers more capacity than Gen1. The 2U flash enclosures are configured in pairs with each enclosure supporting up to twenty-four 2.5-inch flash cards in capacities 400 GB, 800 GB, 1.6 TB and 3.2 TB.
The HPFE Gen2 are currently available for both the DS8884 and DS8886 models. The maximum flash capacity for the DS8886 increases from 96 TB to 614.4 TB, delivering reduced storage costs through lesser cost per IOPS with this new flash enclosure. IBM has made a statement of direction to offer these HPFE Gen2 on the DS8888 as well.
To improve security, IBM DS8880 now supports customer-defined digital certificates for authentication, and configurable Hardware Management Console (HMC) firewall support.
For IBM's mainframe clients, IBM now offers "Extents-level" space release support for z/OS®, DSCLI (Command Line Interface) support for z/OS environment, and FICON® Information Unit (IU) pacing improvements.
IBM Spectrum Virtualize™ V7.8 delivers support for the latest SAN Volume Controller, FlashSystem V9000 and Storwize® product family, and adds new software functionality and improvements
In conjunction with [IBM Spectrum Copy Data Management], Spectrum Virtualize v7.8 offers flexible data protection with transparent cloud tiering to leverage the cloud as FlashCopy targets and restore these snapshots from the cloud on select platforms.
However, the encryption keys are kept on USB thumb drives, which are either left in the USB ports on the back of the hardware, or locked away in a safe, only to be retrieved as needed when rebooting the systems or upgrading the firmware.
Now, IBM Spectrum Virtualize v7.8 supports the IBM Security Key Lifecycle Manager (SKLM) to manage encryption keys. IBM continues to support USB thumb drives if you prefer, but SKLM is used to manage keys for most of the rest of IBM products, and provides centralized management.
The SVC and Storwize models can directly attach via 12Gb SAS to expansion drawers. At the time, we supported 2U-high 12-bay that support Large Form Factor (LFF) 3.5-inch Nearline (7200 rpm) drives, and 2U-high 24-bay that support the Small Form Factor (SFF) 2.5-inch drives (SSD, 15K, 10K and 7200 rpm).
With Spectrum Virtualize v7.8, IBM now offers a third option, the 5U-high 92-bay that supports both LFF and SFF drives. This new expansion can be attached to Storwize V5000 Gen2, Storwize V7000 (models 524/Gen2 and 624/Gen2+), and SVC (models DH8 and SV1).
For the 12-bay and 92-bay, IBM now supports 10TB capacity 3.5-inch Nearline drives. For the 24-bay and 92-bay, IBM now supports 7.68 TB and 15.36 TB capacity Solid State Drives (SSD).
For those concerned about the phrase "lower endurance" in the press release, let me explain. SSD have a bit of extra capacity included. If you write the full capacity of the drive every day for a year, you will "burn up" about one percent of the capacity.
To handle ten "Full Drive Writes per Day" (10 FDWP) over the course of five years, IBM adds 50 percent extra spare capacity above the 400 GB, 800 GB, 1.6 TB and 3.2 TB capacities. So, a 400GB full-endurance drive is really 600 GB inside. These were sometimes referred to as "Enterprise" SSD.
For the larger device sizes, the IT industry has determined that 1 FDWP is sufficient, so instead of 50 percent spare capacity, IBM adds only 5 percent extra. The 7.68 TB is really 8.06 TB inside. These were earlier referred to as "Read-Intensive" SSD. These come in 1.92 TB, 3.84 TB, 7.68 TB and 15.36 TB capacities.
IBM is also offering non-disruptive model conversions. Storwize V5010 can now be converted to V5020, and V5020 can be converted to V5030. The Storwize V7000 Model 524 (Gen2) can be converted to model 624 (Gen2+).
The DeepFlash 150 is the perfect JBOF addition to the ESS family. The current ESS models had either 2U-high 24-drive bays, or 4U-high 60-drive bays. This new model is 3U-high with 64 high-capacity (8 TB) Board Solid State Drives (BSSD).
The ESS includes all the features of IBM Spectrum Scale, including both 8+2 and 8+3 Erasure Coding data protection. This provides file and object access to data, including POSIX compliance for Windows, Linux and AIX operating systems, as well as HDFS-compliant access for big data analytics.
Last month, I presented at the "IBM Technical University" event in beautiful Atibaia, Brazil. Here is my recap of the event.
Marcelo Porto, IBM General Manager for Brazil and Client Unit Executive for Retail
What a great way to start a conference! Marcelo asked if everyone was comfortable? Everyone cheered in the affirmative.
He then said "Well, not for long. We will take you out of your comfort zone! You will disrupt yourself, and disrupt your companies. You will learn about new technologies and solutions that will make you very uncomfortable."
He explained how everything is virtual, specifically the three companies Airbnb, Waze, Uber. All of these three have new transformational business models, and he suggested all companies should follow suit.
He then said people need to be focused on four things:
Adopting an "agile attitude"
Act like you own the company
Don't cling to the past
Have the courage to re-invent yourself and your company
Frank Koja, IBM Vice President for Sales, Enterprise Systems Hardware
(Managers and business leaders could probably raise this percentage considerably if they talked to their employees before making decisions, but that's another blog post!)
Frank showed a video of an IBM client, Plenty of Fish (POF). This is a worldwide dating site with three million POF members in Brazil. They now process over 30,000 requests and/or messages per minute. FlashSystem connected to 30 servers makes that possible.
OpenPower consortium started with just 5 companies in 2014 for technology collaboration. Today, 250 members across 26 countries in six continents collaborate to make POWER technology as ubiquitous a commodity as Intel x86.
Frank then switched to "Business models" innovation. Out of the audience of about 800 people, only 10 raised their hands that have heard of Blockchain (he asked IBMers not to raise their hands, as all IBMers have heard of Blockchain!).
Frank feels that Blockchain is the most disruptive innovation since Internet banking. Blockchain affects supply chain, finance, insurance, shipping logistics, customs inspections, and government registrations.
A video showed a woman from Everledger, which uses Blockchain for shipping diamonds. IBM offers Blockchain on LinuxOne mainframe servers.
Hybrid Cloud is point of no return, including Local, Dedicated and Public clouds. Frank feels we need to cloudify all business processes.
Mauro Angelo, IBM Enterprise Strategy & Industry Solutions Director
Mauro explained that ideas are turned into inventions, and inventions are put to good use to bring forth innovations.
If your business is not cognitive you are a full era behind. Machine learning is not knew. IBM DeepBlue beat Grandmaster in Chess tournament back in 1997.
Mauro then focused on eight specific trends:
Systems of Engagement (SoE)
This is the combination of Mobile applications and Social business. IBM invited the first smartphone, the Simon, back in 1994. Apple's iPhone came later in 2007. Pokemon Go is example of augmented reality.
Cloud offers new service and location models. IBM [SoftLayer], [Bluemix], and [Kenexa] are a few examples.
There have been a lot of enhancements in this space, including Natural Language Processing (NLP), visual recognition, even smell recognition. Cognitive solutions can also identify the appropriate context, such as GPS location. And Cognitive solutions can interact with users to ask for clarifications. It can process "Big Data", the collection of non-structured data that normal Relational Database Management Systems (RDBMS) do not touch. Finally, they can learn, something often referred to as "Machine Learning".
In 2011, IBM Watson beat two humans at the TV show game Jeopardy! Today, [Dino, a toy from CogniToys] provides Watson-like capabilities to children.
Mauro got one for his daughter. She naturally interacts with toy. "How much does an elephant weigh?" she asks. "It depends on the elephant, but a fully grown elephant weighs more than 2,000 kilos" it responds. That's cool.
Wearables like Fitbit can track blood pressure, minutes of exercise, total steps walked. IBM helped Under Armour company develop an app in this space.
Eliminates middlemen or trusted third party (TTP). The hotel chain, Hilton, is testing out a robot called Pepper, which can use Blockchain to book tennis courts.
These are technologies thinner than a strand of hair, measured in nanometers. The focus is to develop stronger, lighter materials, and macromolecules for life sciences for medicine delivery.
Mass customization meets personalization and fast design prototypes. This is not just limited to plastic, but also metal, paper, wood, biomaterials, ceramics, food, and even cement.
Cement? That's right. A Chinese company prints houses using a cement 3D printer. In a country of over one billion people, this company has figured out how to build houses without human laborers.
Internet of Things (IoT)
Olli, a 12-person self-driving bus, is the brainchild of Local Motors. They are testing it out in National Harbor, and hope to roll it out to cities like Copenhagen, Miami, and Las Vegas.
Luis Liguori, IBM Distinguished Engineer and CTO for IBM Brazil
What does IBM mean by "Digital transformation?" What separates success from failure? Developed countries from less developed countries?
Is it culture? Whether people focus on the long term, or just the short term? Does the culture encourage you to foresee the future, and adapt accordingly? Does the culture encourage you to be brave and bold? Do you hide behind Business case return on investments (ROI)? Does your culture consider conflict to be good or bad? The answer: Good!
Does your company have a purpose? When humans no longer serve purpose, they die. The same is true for companies. He said the secret to success is the four "R's" -- Relevant, Resources, Reputation and Rigor.
For example, in 1996, the Kodak was ranked the 4th largest, it filed bankruptcy in 2012 because it was no longer relevant.
Consider Samsung. Samsung has lost its reputation with the latest "Samsung Galaxy Note7" fiasco of exploding batteries!
Airbnb is an example of Digital Transformation. Who knew that there were lots of people who wanted to rent out their bedrooms and bathrooms to strangers!
Luis feels that successful companies are either born digital, or transforming to digital. Industries are merging. Lines are blurring between industries. The latest acquisition between AT&T and Time Warner is an example.
Cognitive brings intelligence to decision making. For example, Watson health has been put to task to focus on Leukemia. In one case, Watson was able to [pinpoint a rare form of Leukemia] that had misdiagnosed and being treated incorrectly with little effect.
Why cognitive? Because human beings cannot read or remember as well as computers. There are thousands of peer-reviewed articles published every day. People are afraid to act to avoid mistakes. Computers are fearless.
Did you know that Brazil celebrates "Black Friday"? There is no "Thanksgiving" in Brazil, but retailers liked the idea of having people stand outside in the middle of the night to start their Christmas shopping! A few years ago, there were [a few problems], but in most recent years, it has shown to help [boost retail sales.] Based on these initial purchases, Watson can be used to help drive the rest of the Christmas retail season.
Watson can analyze personality based on social media writings. The world will be taken over by digital natives. The last century was focused inward, or "ego-centric", but in this 21st century, we will be focused outward, towards a complete "ecosystem".
Who are your competitors? Are they the companies that make products and services similar to yours? No! They are the companies that are competing for your customer's time and attention.
While I speak English and Spanish fluently, my Brazilian Portuguese is terribly rusty. We had several rooms with a pair of real-time translators. I presented the following:
Software Defined Storage -- Why? What? How?
The Pendulum Swings Back -- Understanding Converged and Hyperconverged Environments
IBM Spectrum Scale for File and Object Storage
IBM Storage integration with OpenStack
Introduction to IBM Cloud Object Storage System and its Applications (powered by Cleversafe)
IBM's Cloud Storage Options
All of my sessions were well received, and well attended!
Photo by Dominique Salomon,
IBM Certified IT Specialist
On Wednesday night, we had a nice pool-side reception. Beers, Caiparinhas, and Caiparoskies. Caiparinhas combine a sugarcane juice-based distilled alcohol called cachaça with muddled limes and added sugar. Caiparoskies combined vodka with muddled kiwi fruit.
(Many of the IBMers from United States skipped this event to get dinner early, so they could then come back in time to watch the third and final US Presidential Debate. Because of the time zone changes, this didn't start til 11:00pm, so they could have easily attended the event and had dinner, with plenty of time to spare!)
There was also a live band! This three part band had two guitarists and one lead singer. The lead singer also did maracas and drums while singing. They covered both English and Portuguese language songs.
Rodrigo Giaffredo, IBM Engagement Catalyst
Rodrigo gave the closing session. Wearing jeans and sneakers, he reminded me of the casual storytelling style of Jeff Jonas. He organized his stories around four points:
Consider the battle between Twitter vs. Pownce in 2007. Twitter won because it offered better ways to limit what you read, or who you communicate to, through methods like Hashtags, groups, etc.
Henry Ford disrupted transportation. He realized that Time and space is money. However, as he famously said "If I asked people what they wanted, they would have said faster horses!"
Today the challenge is processing data faster. The company that is able to process faster has economic advantage.
Strong ideas focus on user needs. Weak ideas are tactical and features. Consider the [Hippo Roller]. For centuries, African women and children carried water from far away wells either on their hands on or their heads. Much of it would fall out during the long walks. The Hippo Roller holds 90 liters (about 24 gallons) and rolls easily over rough terrain.
Rodrigo showed an graph. On the y-axis was "Importance" and the x-axis "Feasibility". Solutions in the upper right corner are obvious choices. Solutions in the upper left, important but not very feasible, are considered "big bets". Solutions in the lower right, feasible but not very important, he labeled "amenities".
Most designers, architects and developers know that the later the error is found, the more expensive it is to fix. A prototype is worth a thousand meetings.
Take the company Zappos, which sells shoes online over the Internet. The founder, Nick Swinmurn, tried to get investors, getting a typical response: "What are you drinking?" (In USA, we would ask what are you smoking, but this is the way the Brazilians say it.)
With no investors, Nick built a simple website, took pictures of shoes, and fulfilled orders by purchasing the shoes from local San Francisco retailers and shipping them to the clients.
Nick started this in 1999, and finally got some $20 Million USD in funding in 2004. His simple prototype allowed him to focus on post sales support. Zappos was recognized as having the best call center, moving his operations to Las vegas, NV.
Consider the challenges of urban mobility.
Both methods eventually result in a car, but the agile prototypes allow for more effective experimental milestones.
As for Zappos, its prototype proved successful. Amazon acquired them for $1.2 Billion USD in 2009.
It is that simple: Understand, explore, prototype, and evaluate. IBM has adopted "Design Thinking" across its development organizations to better meet the needs of the marketplace.
Overall, it was a delightful event. It is nearly summer down in the Southern hemisphere, so a bit warm and humid. The attendees were all looking forward to a turn-around in the Brazilian economy, and the business opportunities that brings.