Discussion slides used in an executive session with IBM senior sellers on the emerging digital business landscape.

1. IT EVERYWHERE:
WHY DO WE CARE?
Professor N.Venkat Venkatraman
Boston University School of Management
Twitter:@NVenkatraman
LinkedIn: NVenkatraman
IBM ASL @ Boston University
May 2012

2. IT’S ALL AROUND..
Products
Services
Processes

3. LET US LOOK AT
SOME NUMBERS
& TRENDS...

4. WORLDWIDE
INTERNET USERS
IN DECEMBER 2011
~2.2 Billion

5. WORLDWIDE
MOBILE PHONE
USERS IN
DECEMBER 2011
~5.6 Billion

6. FACEBOOK
USERS* (APRIL
2012)
~901 million
* Not including China

7. SMART PHONES
OUTSOLD PCS
AT THE END OF
2011
~500 million

8. SKYPE IS NOW
PART OF
MICROSOFT
$8.5 billion

9. MOTOROLA IS
NOW PART OF
GOOGLE
$12.5 billion

10. APPLE’S MARKET
CAPITALIZATION
$530 billion
* May 5, 2012

11. FIVE WEBS FOR
CREATING & CAPTURING VALUE

12. Mobile Web Realtime Web
Machine Web|
Industrial
Internet
Media Web Social Web

13. ONE COMPANY’S VISION

15. INSIGHTS & IMPLICATIONS

16. Impact
Create
Horizon 3
Next Core
Augment
Horizon 2
Today’s Core
Defend
Horizon 1
Today’s Core
Time

17. cused on
clients fo
your
with beyond?
i on s
ersat izon 1 or
Are c on v hor

18. Mobile Web Realtime Web
Machine Web|
Industrial
Internet
Media Web Social Web

19. 1. MOBILE WEB
5 BILLION SMARTPHONES BY 2020

20. Mobile
Country % of Population
Subscriptions
China 1.01 Billion 75%
India 903 Million 75%
USA 327 Million 104%
Indonesia 250 Million 105%
Brazil 245 Million 127%
Russia 225 Million 154%

21. Mobile Broadband Penetration Leaders
91% 88%

23. 2007
“Leaders” “Challengers”

24. 2012
“Leaders” “Challengers”

25. Mobile Apps
are
Everywhere....

26. Number of Apps
+ Number of Downloads (Millions)
600000 30000
450000 22500
300000 15000
150000 7500
0 0
July 11, 2008 January 5, 2010 March 5, 2012 July 11, 2008 January 5, 2010 March 5, 2012

27. AN EXAMPLE:
MOBILE WEB IN
RETAIL FINANCIAL SERVICES

34. WHAT ABOUT VISA?

36. Impact
Create
Horizon 3
Next Core
Augment
Horizon 2
Today’s Core
Defend
Horizon 1
Today’s Core
Time

37. Services
Products
Processes

38. 1. MOBILE WEB
elping
you h ate
Ho w are s navig
your client web?
the mobile
r2 or 3?
rizo n1o
Ho
5 BILLION SMARTPHONES BY 2020

39. Mobile Web Realtime Web
Machine Web|
Industrial
Internet
Media Web Social Web

40. 2. SOCIAL WEB

42. To make the world more open and connected

45. Facebook Monthly Active Users (millions, worldwide)
1,000
901m
750
500
250
0
3/2009 6/2009 9/2009 12/2009 3/2010 6/2010 9/2010 12/2010 3/2011 6/2011 9/2011 12/2011 3/2012
Source: Facebook (S-1)

46. AUTHENTIC
IDENTITY &
SOCIAL GRAPH

49. Fb
Google

50. FROM WEB PAGES
TO FB PAGES

51. B2C B2C
FB
C2C
C2B
Web

54. Private
Message
Strength
C2B &
C2C C2C
B2C

56. Check-in Promotions
Deals
Stores
Open Graph/API
Sponsored Ads
Facebook Credits

57. FACEBOOK LINKS
OFF-LINE WITH
ON-LINE

59. FACEBOOK TIMELINE

61. FACEBOOK SOCIAL APPS

64. +Cooked it
Add to Timeline

67. Impact
Create
Horizon 3
Next Core
Augment
Horizon 2
Today’s Core
Defend
Horizon 1
Today’s Core
Time

68. elping
you h ate
Ho w are s navig
client web?
your ocial
the s
2. SOCIAL WEB
r2 or 3?
n1o
H orizo

69. Mobile Web Realtime Web
Machine Web|
Industrial
Internet
Media Web Social Web

70. MEDIA WEB

71. •4 billion + views every day
•3 billion hours of video watched each month
• 800 million monthly unique visitors
• 60 hours of videos uploaded every minute
• 70% of traffic outside USA
• 98% of AdAge’s top 100 advertisers run campaigns
Source: YouTube

73. Dec 2010 Dec 2011
110 105.1m
83
73.7m
55
43.5b
30.1b
28
0
Daily Unique Viewers (millions) Videos viewed (billions)

74. KHAN ACADEMY
ON MEDIA WEB

76. Facebook integrating video streaming

78. ?

83. Impact
Create
Horizon 3
Next Core
Augment
Horizon 2
Today’s Core
Defend
Horizon 1
Today’s Core
Time

84. e you s
H ow ar client
your edia
helping the m
navigate eb?
w
r2 or 3?
n1o
H orizo

85. Mobile Web Realtime Web
Machine Web|
Industrial
Internet
Media Web Social Web

86. REALTIME WEB

87. Do you tweet?

88. 22,419,055 5,945,789
13,922,698 19,705,870

91. Tweeting and
Retweeting about the
Japanese natural disaster

92. WEAVING THE WEBS TOGETHER

93. To Become the “Largest
Participatory Brand in the
World”

97. Realtime Web

99. ow a re you ts
H clien
g your altime
helpin the re
n avigate eb?
w
2o r 3?
zon 1 or
Hori

100. Mobile Web Realtime Web
Machine Web|
Industrial
Internet
Media Web Social Web

103. Questions
for YOU
•How do the five webs impact the future of
your client?
•Have your clients recognized the shifts and
responded to them?
•Are you part of the conversation &
transformation?

104. WHAT’S YOUR ROLE?

105. IT’S ALL AROUND..
Products
Services
Processes

106. What’s
Your Role?
• help clients understand the power of these webs
• help build capabilities beyond horizon 1 to 2 & 3
• co-create business value in the digital world
• bringthe best of IBM to collectively address
client needs

107. “The difficulty
lies not so much
in developing
new ideas as in
escaping from
old ones.”

108. Thanks...