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© Dieter K. Sinn -2014 
Presented at Fujitsu Forum 2014, Nov 19-20 
How the Connected World is Impacting 
the Business and...
© Dieter K. Sinn -2014 
What this Session is About 
This presentation outlinesthree scenarios of the connected world to il...
© Dieter K. Sinn - 2014 
Disclaimer 
Selected Scenarios as Examples 
There are more scenarios for the connected world than...
© Dieter K. Sinn - 2014 
Increase Visibility of IT as Business Driver 
Situation 
Many IT departments find themselves stuc...
© Dieter K. Sinn -2014 
Elements of the Connected World 
Connect Physical World 
Connect Solutions & Services 
Connect Cus...
© Dieter K. Sinn -2014 
Connect PhysicalWorld 
Connect Solutions & Services 
Conse- quences for IT 
Connect Customers& Par...
© Dieter K. Sinn -2014 
Scenarios Based on Smart Objects 
Smart Objects 
Computing power, sensors, memory and communicatio...
© Dieter K. Sinn -2014 
Example: Vending Machine 
The back-end systems (e.g. process portals) that lie behind the smart ob...
© Dieter K. Sinn -2014 
Benefits of Back-End Integration 
The connection of smart objects to integrating IT back-end syste...
© Dieter K. Sinn -2014 
IT Platforms Shaking up Vertical Markets? 
A significant trend: Back-end systems and similar platf...
© Dieter K. Sinn -2014 
Possible Options for IT Departments 
Corporate IT departments can play a more active role due to t...
© Dieter K. Sinn -2014 
Connect Solutions and Services 
Connect Solutions & Services 
Conse- quences for IT 
Connect Custo...
© Dieter K. Sinn -2014 
Aggregation of Solutions and Services 
An emerging market trend is to support business processes a...
© Dieter K. Sinn - 2014 
Enterprise Stores 
Such a combination and integration of software, content and services can be do...
© Dieter K. Sinn -2014 
Use Cases / Selection Criteria / Benefits 
The combination of software and services can support sp...
© Dieter K. Sinn -2014 
New Role for Corporate IT 
Role of corporate IT is expanding: 
Partner managementand gate keeping ...
© Dieter K. Sinn -2014 
Connect Customers & Partners 
Connect Solutions & Services 
Conse- quences for IT 
Connect Custome...
© Dieter K. Sinn -2014 
Collaboration still Lacks Strong IT Support 
Companies‘ business processes are often tightly linke...
© Dieter K. Sinn -2014 
Sales: Siloed Departmental Systems 
Marketing and sales are an important success factor for more a...
© Dieter K. Sinn -2014 
Market Orientation as Core Business Process 
Production / Manufacturing as the Core Business Proce...
© Dieter K. Sinn -2014 
Sales and Collaboration as Major IT Focus 
Marketing and Sales 
Sales support is a must for corpor...
© Dieter K. Sinn -2014 
Consequences for IT 
Connect Solutions & Services 
Conse- quences for IT 
Connect Customers& Partn...
© Dieter K. Sinn -2014 
Consequences for IT Infrastructure & Services 
Need for corporate IT departments to develop an up-...
© Dieter K. Sinn -2014 
Side Note: What does an IT Strategy Include? 
Strategic goals 
User requirements 
Technology trend...
© Dieter K. Sinn -2014 
Re-Establish IT Strategy as a Powerful Tool 
The changes driven by a connected world provide an op...
© Dieter K. Sinn -2014 
Simply Start off Embracing a Connected World 
Claim the topic and live the new role 
•Watch the ma...
© Dieter K. Sinn -2014 
Future Solutions in a Connected World 
More connected solutions will appear and provide further op...
© Dieter K. Sinn - 2014 
Recommendation of sinn-consulting 
Message to Corporate IT: 
• A focus only on infrastructure and...
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How the connected world impacts business and IT strategies

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Information technology is embedded in more and more physical objects that interact with each other and become an integral part of service offerings based on Internet and mobile technologies. Increasingly, companies in all industries are connecting with their customers, partners and other web, social or mobile platforms. What are the implications? IT suppliers and corporate IT departments can embrace and actively drive the development of new connected services and products. Thus IT departments can redefine and strengthen their role as business enablers.

Speakers:

Mr. Dieter Sinn

Publié dans : Technologie
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How the connected world impacts business and IT strategies

  1. 1. © Dieter K. Sinn -2014 Presented at Fujitsu Forum 2014, Nov 19-20 How the Connected World is Impacting the Business and the IT Strategies Dieter K. Sinn sinn-consulting Knorrstrasse11, D-80807 Muenchen Tel. +49 (0) 89 -359 0195 E-Mail: info@sinn-consulting.de Internet: www.sinn-consulting.de 1
  2. 2. © Dieter K. Sinn -2014 What this Session is About This presentation outlinesthree scenarios of the connected world to illustrate three recent trends which lead to possible new tasks and roles for the corporate IT departments and the IT suppliers. Search for innovation Search for customer value Search for return on investment (ROI) Develop and market „connected“ services and products, driven by information technology Business & Enterprises Corporate IT Departments & IT Suppliers Identify market opportunities, design new business models, evaluate technologies, develop systems and products ... Enter a new stage and re-define role as business enabler Tasks and Role of: 2
  3. 3. © Dieter K. Sinn - 2014 Disclaimer Selected Scenarios as Examples There are more scenarios for the connected world than are listed here. The scenarios here are used to illustrate mechanisms and consequences, which the audience may transfer to its corresponding enterprise and industry. Internet Refrigerator Not all scenarios that exist for the Internet of Things are appealing to me personally. There will be no mention of the internet fridge that automatically reorders items when stocks run low. Should my fridge ever do such a thing, the next thing I would do is pulling its plug. Obstacles and Risks Several aspects, though not included in this presentation, are crucial: • Necessary standards for communication • Security and privacy • Energy consumption of smart objects STOP 3
  4. 4. © Dieter K. Sinn - 2014 Increase Visibility of IT as Business Driver Situation Many IT departments find themselves stuck in their traditional role, fulfilling many highly demanding tasks, but often lacking visibility. In the Connected World Goal of this presentation is to show how the IT departments can re-gain visibility as business driver. Corporate IT Corporate IT 4
  5. 5. © Dieter K. Sinn -2014 Elements of the Connected World Connect Physical World Connect Solutions & Services Connect Customers & Partners Business processes and transactions are driven by an aggregation of: •Software, Software as a Service •Content & knowledge •Traditional manual services IT embedded in physical objects Communication: Internet of Things (IoT) Interconnect physical world with digital world Closer connection to corporate IT-systems Customer interaction, social networks, collaboration ... Post-ERP era takes off: IT manages ecosystem beyond the corporate walls Enterprises Access: Everyone, anytime, anywhere.... Connect Solutions & Services Conse- quences for IT Connect Customers& Partners Connect PhysicalWorld 5
  6. 6. © Dieter K. Sinn -2014 Connect PhysicalWorld Connect Solutions & Services Conse- quences for IT Connect Customers& Partners Connect PhysicalWorld 6
  7. 7. © Dieter K. Sinn -2014 Scenarios Based on Smart Objects Smart Objects Computing power, sensors, memory and communication capabilities integrated Scenarios Smart Home: Monitoring, remote control, individual adaptation, energy, smart metering ... eHealth:Monitoring, security, fall detection, assistance .... City & Environment: Detection, resource allocation, e.g. parking Machines and Infrastructure: Remote monitoring, predictive maintenance, alerts … Industry 4.0: Products, machines and back-end systems communicate and interact Transport and Logistics: Tracking and control of goods across systems and locations ... and many more Technology Base Back-End Systems behind the smart objects Connect Solutions & Services Conse- quences for IT Connect Customers& Partners Connect PhysicalWorld 7
  8. 8. © Dieter K. Sinn -2014 Example: Vending Machine The back-end systems (e.g. process portals) that lie behind the smart objects open up business opportunities. This is illustrated by the following simple example of a soft drink vending machine. Process Portal: •Integrates and manages various process members (bottlers, distributors, logistics providers) •Filling and servicing on-demand, results in cost savings •Delivers data for stock / product planning, e.g. sales per location, customer preferences …. Questions –to be discussed later: Who builds and runs such process portals? Who owns and dominates the business? Smart Object: e.g. vending machine Transmits data about filling status, error etc. Telco M2M platform Data via web service Service providers Connect Solutions & Services Conse- quences for IT Connect Customers& Partners Connect PhysicalWorld 8
  9. 9. © Dieter K. Sinn -2014 Benefits of Back-End Integration The connection of smart objects to integrating IT back-end systems creates special benefits. The resulting business and user values can be the basis for new extended business models. Benefits of Back-End Integration of Smart Objects •Allows users access to online services and physical world via PC, mobile etc. •Management of comprehensive business processes and transactions •Integrates the different parties involved in the business process as well as their corresponding systems •Enables automation of processes, faster execution, and/or increased cost efficiency •Integrates online services, traditional manual services as well as the physical world •Allows real-time monitoring and response •Provides data for improved planning, better customer services, more efficient utilization of infrastructure •... Process Portal Connect Solutions & Services Conse- quences for IT Connect Customers& Partners Connect PhysicalWorld 9
  10. 10. © Dieter K. Sinn -2014 IT Platforms Shaking up Vertical Markets? A significant trend: Back-end systems and similar platforms will occupy a predominant position in business. This occurs in numerous vertical markets, especially if these platforms dominate the access to markets. Example Vending Machine: Who will Build and Run the Back-End Systems ? •Software vendors? Or telecoms? Or major Internet giants? Or the service providers (bottlers or distributors) in our vending machine example? Or the manufacturer of the vending machine? •-> Manufacturers of vending machines and the relevant service providers should explore if building such portals is a worthwhile business opportunity for them. Example Hotel Booking: Broker Portals increasingly Dominate the Access to Markets •Hotel booking portals hold an increasingly dominant position as opposed to individual hotels. These portals are often run by new entrants. IT startups entering the tourism industry ! •Similar mechanisms will occur in many vertical markets. Established players could lose their market position to newcomers from the IT sector. Connect Solutions & Services Conse- quences for IT Connect Customers& Partners Connect PhysicalWorld 10
  11. 11. © Dieter K. Sinn -2014 Possible Options for IT Departments Corporate IT departments can play a more active role due to their competency in IT markets and mechanisms. And they can incorporate their skills and expertise in the planning and development of embedded systems. •What potential competitors exist, what new entrants could enter the game? •Where are opportunities for building own corporate services and business models? How do these business models look like? •Or what platforms could be candidates for partnership and closer collaboration? •How can the company turn its products into smart products? •Could this create new user values? Are new business models possible? •Embedding electronics and communication into objects requires IT competency and IT engineering and development resources Watch the market of process-, services- and broker- portals Engage in the planning and support of embedded electronics Connect Solutions & Services Conse- quences for IT Connect Customers& Partners Connect PhysicalWorld 11
  12. 12. © Dieter K. Sinn -2014 Connect Solutions and Services Connect Solutions & Services Conse- quences for IT Connect Customers& Partners Connect PhysicalWorld 12
  13. 13. © Dieter K. Sinn -2014 Aggregation of Solutions and Services An emerging market trend is to support business processes and transactions by a combination and integration of software, digital content and (brokered) manual services. This is an opportunity for IT suppliers and corporate IT departments to create a new type of offers delivering additional business value. BaaS: Business as a Service Combination of software, digital content and physical servicesto support … specific verticals or business activities and processes User companies Content & knowledge Traditional manual services Software, local or SaaS ... Connect Solutions & Services Conse- quences for IT Connect Customers& Partners Connect PhysicalWorld 13
  14. 14. © Dieter K. Sinn - 2014 Enterprise Stores Such a combination and integration of software, content and services can be done in cloud integration platforms or so-called enterprise stores. IT departments could adopt a new role by preselecting and technically connecting the individual elements. Enterprise Enterprise Store Integrated support of specific business transactions, activities and processes IT‘s role is to fill the enterprise store … also from external / third-party sources Enterprise Store: • Software self services • Corporate content, e.g. worksheets, rules … • Integration of internal Shared Services • Coordinated integration of external services Manual services Content Software Connect Solutions & Services Conse-quences for IT Connect Customers & Partners Connect Physical World 14
  15. 15. © Dieter K. Sinn -2014 Use Cases / Selection Criteria / Benefits The combination of software and services can support specific enterprise divisions or business transactions: Enterprise Divisions •Development and engineering •Marketing •Sales and customer support •HR department •... Business Processes and Transactions •New product development, planning, design … •Expansion, relocation, new subsidiaries … •Finance or legal transactions •Sales and marketing campaigns •HR: recruiting, human resource development •… Selection Criteria for External Services •Suitable for own company, with regard to company size, complexity ... •Appropriate quality, e.g. approved by certifications or user rankings •Good matching of services •Simple integration into platform Benefits for Users •Consistent support of business transactions •One-stop shopping, single sign-on, consistent user and rights management •Pre-selection of suitable services •Joint data management, data exchange across services Connect Solutions & Services Conse- quences for IT Connect Customers& Partners Connect PhysicalWorld 15
  16. 16. © Dieter K. Sinn -2014 New Role for Corporate IT Role of corporate IT is expanding: Partner managementand gate keeping Integrated support and orchestration of business processes by a combination of software with digital content, coupled with internal and external physical services. This also enables the predefining and structuring of processes. Call to action for Corporate IT •Develop ideas for integrated services •Communicate benefits and goals •Start with a step-by-step approach Providing software services from external sources / third parties, IT departments acting as brokers for cloud services. IT‘s role may include the definition of internal requirements and the selection and management of appropriate external solutions. Allowing external services a controlled access to internal corporate platforms. IT departments being responsible for managing e.g. the quality of services, security and service levels. IT as business enabler IT as cloud broker Connect Solutions & Services Conse- quences for IT Connect Customers& Partners Connect PhysicalWorld 16
  17. 17. © Dieter K. Sinn -2014 Connect Customers & Partners Connect Solutions & Services Conse- quences for IT Connect Customers& Partners Connect PhysicalWorld 17
  18. 18. © Dieter K. Sinn -2014 Collaboration still Lacks Strong IT Support Companies‘ business processes are often tightly linked with the processes of their partner companies. IT-based support of this type of communication and interaction is often lagging behind. Collaboration tools are available (often as cloud services), but a close integration of collaboration tools with corporate IT systems is rare. Past: Enterprise E-Commerce, web shop Customer Partner E-mail Enterprise Customer input Partner fulfillment Connected World: Interconnection of enterprise processes with partners and customers Customer interaction Single-point communication with customers and partners, e.g. via web shop or e-mail Connect Solutions & Services Conse- quences for IT Connect Customers& Partners Connect PhysicalWorld 18
  19. 19. © Dieter K. Sinn -2014 Sales: Siloed Departmental Systems Marketing and sales are an important success factor for more and more enterprises. Here also integrated IT-support is often lacking. Business departments often select and implement solutions autonomously, which results in a so-called „shadow IT“ with isolated systems and inconsistent data management. Siloed Systems CRM •Customer relationships … •Planning, campaign management … Business Intelligence •Web analytics •Database ... Communications •Web site •Online marketing •Social, mobile .... E-Business •Web shop •Connection to ERP / inventory management … Marketing and sales as a consistent, integrated IT-based process Connected World Product planning Demand creation Info & offers Cust. comm. Salesprocess Connected to: Social Mobile Search Portals ... Connect Solutions & Services Conse- quences for IT Connect Customers& Partners Connect PhysicalWorld 19
  20. 20. © Dieter K. Sinn -2014 Market Orientation as Core Business Process Production / Manufacturing as the Core Business Process of the Enterprise Companies still regard production as the core business process in their value chain. Is this still appropriate to all enterprises? Or is this the result of traditional ERP software which is based on this paradigm? Planning -> Procurement -> Production -> Inventory Management Finance HR Research Marketing Demand Delivery Market Communication -> Planning -> Marketing -> Sales Post-ERP Era: Market Orientation as the Core Business Process An alternative approach is to adopt „Market Orientation“ or „Market Communication“ as the core business process. Procurement and production would become sub processes in such a model. Procurement Production Finance HR Demand Delivery Connect Solutions & Services Conse- quences for IT Connect Customers& Partners Connect PhysicalWorld Development Development Partners & Customers 20
  21. 21. © Dieter K. Sinn -2014 Sales and Collaboration as Major IT Focus Marketing and Sales Sales support is a must for corporate IT Start now –Sales support is a major duty of corporate IT departments, which is not performed properly in many enterprises. End-to-end sales solutions are essential Move from siloed departmental systems to end-to-end solutions. Integrated data management could be a step on this way. Extend corporate IT to customers Added value for customers through closer integration of customers with corporate IT systems, e.g. providing customers with analytics, purchasing history, self services, configuration services … Collaboration and Connection to Customers and Partners Mind the ERP trap Enterprise Resource Planning solutions are often too much focused on the internal business processes. From single ERP to multi-platform Traditional ERP architectures are often not well prepared for supporting business in a connected world. Multi-platform strategies are an alternative. Connect Solutions & Services Conse- quences for IT Connect Customers& Partners Connect PhysicalWorld 21
  22. 22. © Dieter K. Sinn -2014 Consequences for IT Connect Solutions & Services Conse- quences for IT Connect Customers& Partners Connect PhysicalWorld 22
  23. 23. © Dieter K. Sinn -2014 Consequences for IT Infrastructure & Services Need for corporate IT departments to develop an up-to-date IT strategy Opening up the corporate IT systems to the outside world: connection to cloud collaboration platforms, to data exchange platforms, to social platforms … Open up Multi- platform The connected world is not yet well standardized. Different software platforms and data formats are used. A connection to this world requires an open platform strategy. Fast implementation and delivery of IT solutions are necessary. Rapid prototyping of systems will increase. This requires flexible resources, such as hybrid cloud models for additional infrastructure on demand or Managed Services. Flexibility The opening-up of the corporate IT requires the establishment of different, graded security zones. This also includes encapsulation of core IT systems, access control policies, data classification, rights management … Security Data A connected world creates large volumes of data from multiple sources. High-volume data management and data quality management are a backbone of connected systems. Connect Solutions & Services Conse- quences for IT Connect Customers& Partners Connect PhysicalWorld 23
  24. 24. © Dieter K. Sinn -2014 Side Note: What does an IT Strategy Include? Strategic goals User requirements Technology trends Available resources •Business Goalsand guidelines how to support these goals through IT •Priorities and Areas for InvestmentAreas where IT is to drive innovation and create competitive advantages. Areas where IT is to provide basic, state-of-the-art support •IT-Organization and ProceduresHuman resource strategy, roles and responsibilities. How is IT governed, how is the collaboration between business departments and IT organized? •System StrategyHardware, tools, communications, applications, data ... •Operation GuidelinesIT management, security, service levels, outsourcing ... IT Strategy Implementation and operation Connect Solutions & Services Conse- quences for IT Connect Customers& Partners Connect PhysicalWorld 24
  25. 25. © Dieter K. Sinn -2014 Re-Establish IT Strategy as a Powerful Tool The changes driven by a connected world provide an opportunity for IT departments to re-establish the IT strategy as a powerful strategic tool. Changes driven by a connected world •More need for diversity in terms of systems and operation. The existing longtime enterprise focus on very few standardized systems is not longer sufficient. •More players, more partnerships, more platform options •IT will be more industry-specific when integrating physical objects Benefits of an IT strategy •Aligning business with IT •Increased efficiency: rules and policies for IT decisions, delegation of responsibilities … •Basis for communication of IT with business management •Strengthens position of IT department Connect Solutions & Services Conse- quences for IT Connect Customers& Partners Connect PhysicalWorld 25
  26. 26. © Dieter K. Sinn -2014 Simply Start off Embracing a Connected World Claim the topic and live the new role •Watch the market, keep an eye on players and platforms •Develop ideas for connected products and services •Design business models for the connected world Inspire people •Assign creative, agile, respected people to the new tasks •Even option on top level, e.g. CDO, Chief Digital Officer IT has the external and internal expertise about •Technology •Customer behavior in the digital world •Players und mechanisms in the online world •Internal business processes Connect Solutions & Services Conse- quences for IT Connect Customers& Partners Connect PhysicalWorld 26
  27. 27. © Dieter K. Sinn -2014 Future Solutions in a Connected World More connected solutions will appear and provide further opportunities for Corporate IT and suppliers. Technology Drivers Connected Data •Joining real-time data with stored data … Hardware •Devices for anytime, anywhere access •IoT, sensors, communication … •Low-power objects Connect Solutions & Services Conse- quences for IT Connect Customers& Partners Connect Physical World Human Interface Technology •Speech input & output, smart/data glasses •Touch and gesture control, 3D motion tracking •Body-computer interfaces Human Centric •Augmented reality, virtual reality •Smart advisors •Multimedia „life records“ •… Solutions ... Automation •Automation of business processes •IT replacing human work •IT generated correspondence •Robots, driverless cars •… 27
  28. 28. © Dieter K. Sinn - 2014 Recommendation of sinn-consulting Message to Corporate IT: • A focus only on infrastructure and operation means dying a slow death. • Corporate IT acting as a Business Driver is the only viable path to visibility and success. • Our recommendation to Corporate IT follows our general approach: Cover all three factors, Technology & Business & Market. Market: mechanisms, trends, players Technology Business Connect Solutions & Services Conse-quences for IT Connect Customers & Partners Connect Physical World Corporate IT 28

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