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Main Point: While a smarter planet has unprecedented opportunity, today’s business environment presents tremendous challenges that require us to work smarter Speaker Notes: Living in a smarter planet presents us with unprecedented opportunity. If we take advantage of it. However, today’s world also presents new challenges. Rapid change and increased pressure from new competitors makes this not only one of the most exciting times, but one of the most challenging. The answer isn’t just everybody work harder. It’s not just – dedicate more and more resources to solve our issues. The answer is finding ways to work smarter. That’s what this presentation is all about.
Main Point: Optimizing business performance is the key business goal . Speaker Notes: At the end of the day it’s about the bottom line. The world is different today and there’s tremendous opportunity out there. How do we optimize our business performance and drive results better than anybody else? The reality of living in a flat, globally integrated world is upon us. Not only are traditional business environments changing, but the amount and pace of change has accelerated dramatically. The new consumer is a different consumer. Expectations have changed – dramatically. Consumers now EXPECT instantaneous gratification to their personal needs – and we must meet that expectation or somebody else will. Recently we’ve seen how quickly economies, credit markets and access to capital can change. We’ve watched energy shortfalls and erratic commodity prices. All of these changes directly impact business. And we’ve seen businesses struggle to adapt. Superpowers are slowing and new economies are emerging. With a digital flat world, we’ve seen unprecedented ease of access to markets from global competitors. So how does business evolve to adapt and respond dynamically? It’s about changing the business – quickly and effectively – in the fact of unprecedented fluctuations in the business environment. People live and work in new ways. The lines have clearly blurred between personal life and work in the use of technology. Especially in the younger generation. Whether it’s a podcast on an iPod that someone listens to on the train or an email from a blackberry, the reality today is that work is possible anytime, anywhere. And people expect it. This places a challenge on business – how do they enable and secure this desire by people to connect from anywhere to get work done? Vast amounts of expertise and information are available today. More than ever before and it continues to accelerate. Today’s dilemna is not about the lack of information, but rather finding the right information in the right context at the right time amidst the ocean’s of data currently available. I’m looking for that chart deck. I’m looking for that article with a great quote. The technology is there to help us do it. The workers of yesterday used to wait a lot to communicate. Wait for the meeting. Wait for the phone message or email to be returned. Today’s workers, expect to reach people in real-time. And in fact they may be carrying on multiple conversations in real time at the same time. Gone are the days of serial conversations. Social networks, texting and instant messaging are the new reality. In the face of this transformation of the way they live and work, we need to figure out how to maximize people’s effectiveness working together – through collaboration. Business continues to be bounded by traditional organizational silos. Crossing these boundaries in a simple and flexible fashion rules out traditional point-to-point IT integration efforts. As business becomes more and more connected with people, information, technology and business partners outside the four walls, the ability to connect quickly and efficiently is critical. Traditional IT is too rigid to support the agility needed in today’s business environment. The old closely coupled silos don’t have the flexibility required. IT budgets can no longer support simply buy new replacement solutions every time a new business need arises, nor can they support duplicate IT function is separate areas of the business. And the percentage of IT budgets spent on IT maintenance costs continues to rise. This hamstrings IT from addressing new business needs adequately. Shared, lower cost resources are a necessity in today’s environment Technology must support the business in meeting challenges and taking advantage of opportunities. People and processes and the information they use must be easily connected inside and outside the organization. Background Detail: Source for social networks overtaking email: http://www.adweek.com/aw/content_display/news/digital/e3i3a9dedf59710f3d5a7456e492e6d751f
Main Point: To optimize business performance we must redefine how we work – we must work smarter Speaker Notes: In the face of these challenges how does the business optimize performance? We have to work smarter. And working smarter centers around three very important conversations that I’ve already mentioned. How do the businesses evolve to adapt and respond dynamically? How do people collaborate to maximize effectiveness? And… How does technology enable flexibility to meet business needs quickly? These are the conversations we will spend more time on in this presentation. At the end of the day, Smart Work is about optimizing business performance by creating an agile, collaborative and connected business environment that empowers people and embraces change. And today’s digital, flat world offers us opportunities to deliver on that promise. Because this is what it’s really about. It’s about taking advantage of some amazing opportunities available to us by working smarter. It about interconnected people and instrumentation like RFID tags, inside and outside the organization, becoming sensors of important business events that can cause business action. It about information, trusted and aligned with our process needs, that provides insight, sometimes even predictive insight, in context, at the right place and time. It’s about giving people power. Providing the intelligent analytics and collaboration capabilities on top of the insight to make quicker, better real-time decisions in real-time. It’s about empowering people on the business side to implement processes changes on their own, in real-time, without the need to involve IT personnel. Speaking of collaboration, we now have the ability to massively share ideas inside and outside the four walls and collectively take action. From anywhere. Whenever we need to take that action. It’s about working smarter. Let’s take a look at an example.
Main Point: Traditional static business silos don’t deliver the results we need in the face of inherent inefficiencies and rapid accelerating change; businesses must evolve. Speaker Notes: Now let’s get back to our first conversation in the journey to working smarter. Despite the capabilities available to us today, businesses remain too inefficient and too static. Every week, businesses waste 5.3 hours - per employee - because of inefficient processes and collaboration. There are numerous examples of the inefficiencies and the opportunities they represent all around us. Its estimated that as much as 45 percent of traffic on some streets in New York City is generated by people circling the block looking for parking. Inefficient supply chains cost $40 billion annually in lost productivity—that’s more than three percent of sales. 100 million people worldwide pushed below the poverty line by personal healthcare expenditures. According to published reports, countries around the world are losing as much as 40 to 70 percent of their electrical energy because grid systems are not smart. Information is rapidly growing in volume. There are nearly 800 billion business events that occur daily around the world The pace of change is accelerating – FAST. You have a world that no longer stands for static, traditional structure. Tellingly, in our most recent worldwide survey of CEOs they recognized their business was faced with significant, rapid change. 91% said they needed to restructure the way their organizations work to deal with this change – and yet this caused great worry. Because the gap between those that expected change and those that demonstrated they could actually change effectively widened greatly. It more than tripled in a year. Background Details: Every week, businesses waste 5.3 hours per employee because of inefficient processes and collaboration. Source: “Measuring the Pain: What is Fragmented Communication Costing Your Enterprise?”, http://enterprise.siemens.com/open/se/docdownloads/secure/UCSurvey.pdf 98% of CEOs say they need to restructure the way their organizations work. Source: 2008 IBM CEO study The gap between business that expect change and those that have demonstrated the ability to handle it has nearly tripled. Source: 2008 IBM CEO study Large companies experience up to 800 billion business events daily Source: McKendrick, Joe, “Is anyone ready to process a trillion events per day?” ZDNet, May 11, 2008. http://blogs.zdnet.com/service-oriented/?p=1102 70% CIOs say Business Process Management is one of their Top ten most important visionary plan elements* Source: Insights from Global Chief Information Officer Study, IBM 2009, High Growth Company CIOs 68% High PBT growth CIOs help the business manage change by providing flexible applications Source: Insights from Global Chief Information Officer Study, IBM 2009, High Growth Company CIOs
Main Point: Working smarter is about redefining how we work to adapt and respond dynamically. Speaker Notes: So businesses must evolve to be able to adapt. To be able to respond to business change dynamically. They need to work smarter. This means that not only must the business processes be dynamic, but they must effectively leverage the power that people and technology can provide. Processes can no longer be bounded in ways that limit performance. They must be able to be extended to take advantage of the resources that best fit the need. These resource could be people and expertise. They could be information. They could be partners better capable of certain tasks that are core competencies of the business itself. They could be infrastructure. In the end, can the process be easily and securely extended to find and use these resources no matter where they reside – at the time they are needed? For example, let’s take an electronics assembly organization. Can they automatically identify and source an element of their supply chain from a service provider anywhere in the world? We talked before about insight. People must be empowered to sense insight from real-time business events, analyze it intelligently and then decide and act upon it swiftly. Let’s take a retail example. Buyers must be able to put product on the shelves that reflects current and emerging trends. What if they could intelligently correlate purchase events from multiple sources to quickly identify a new and important emerging trend? At the end of the day, the processes cannot be inefficient and static. Automating elements of processes is not necessarily new. But automation has progressed today to the point where not only can simple human tasks be easily automated to enable people to move to higher value work, but highly computationally complex tasks (like real-time optimization of scheduling based on dynamic inputs) can also be automated – and they can be automated in a way that is flexible – not rigid. This flexibility is key. Because not only must processes become more automated, but they must be dynamic – able to change easily and effectively when they need to. Whether a CEO chooses to keep their current business model or change it, dynamic processes enable the agility necessary to optimize performance in today’s business environment. For instance, let’s talk about freight operations. Historically there are lots of dynamic inputs – airplanes, crew, packages, etc.. What if the freight operator could get automated intelligence on these moving parts and use it to dynamically optimize their operations? Let’s see how a client of ours did just that….
KEY SPEAKING POINTS: Airbus: Improved visibility keeps inbound shipments on their intended paths Business challenge Airbus is one of the world’s largest commercial aircraft manufacturers, producing over half of all new airliners with over 100 seats. With its suppliers becoming more geographically dispersed, Airbus found it increasingly difficult to track parts, components and other assets as they moved from suppliers’ warehouses to one of its 18 manufacturing sites. Solution Airbus created a smart sensing solution capable of detecting when inbound shipments deviate from their intended paths. As parts move from suppliers’ warehoused inventory to the assembly line, they travel in containers fitted with RFID tags holding vital information. At each important juncture, readers interrogate these tags. If shipments arrive at the wrong place or do not contain the right parts, the system alerts employees to fix the problem early before it disrupts production. With its highly instrumented supply chain, Airbus is well-positioned to meet known – and unanticipated – cost and competitive Solution components: IBM Global Business Services IBM Sensor and Actuator Solutions IBM Software Group Services IBM Tivoli® Composite Application Manager for WebSphere IBM Tivoli Monitoring IBM WebSphere® Business Monitor IBM WebSphere ISSW – Lab Services IBM WebSphere Premises Server IBM WebSphere Process Server IBM Business Partner OATSystems
Main Point: Organizations are not making the most out of the talent they have because their people’s effectiveness is hampered by an inability to connect to the right expertise and information at the right time. Speaker Notes: Our second conversation centers on the need to help people collaborate in order to maximize their effectiveness. Each of us can relate to these challenges in our daily lives: We know someone has experience that could help us solve a problem, but we don’t know who We have plenty of information and opinions available, but is it the right input to make the right decision? It takes us an exhausting amount of time to chase down the right people and information to get the job done We’re not alone. Two-thirds of people know there are others out there who can help them do their jobs. They need to know how to find them. Over two of every five people make decisions using the wrong input at least once a week. And people spend – on average – two hours a day just looking for the right information and expertise. This is an enormous drain on our organizations, but it points to a sizeable opportunity. To solve these problems requires more than access to information and expertise. We need to foster a collaborative way of working to maximize people’s effectiveness and make the most of the talent associated with our organizations. Background Details: Two-thirds of people believe there are colleagues who can help them do their jobs better...but they don't know how to find them . Source: Harris Interactive / Tacit Knowledge poll 42% of people say they are forced to make decisions using the wrong input at least once a week . Source: Accenture Study: http://newsroom.accenture.com/article_display.cfm?article_id=4484 The time we spend just looking for the right expertise and information to do our jobs adds up to two hours in a typical day Source: Accenture Study 73% CIOs say Customer and Partner Collaboration is one of their top 10 most important visionary plan elements* Source: Insights from Global Chief Information Officer Study, IBM 2009, High Growth Company CIOs 87% CIOs think their organization will be collborative and seek active input from customers in the next five years more often* Source: Insights from Global Chief Information Officer Study, IBM 2009, High Growth Company CIOs 71% CIOs proactively suggest better ways to use data* Source: Insights from Global Chief Information Officer Study, IBM 2009, High Growth Company CIOs 81% High PBT growth CIOs think their data is more reliable and secure Source: Insights from Global Chief Information Officer Study, IBM 2009, High Growth Company CIOs 67% High PBT growth CIOs have data readily available for relevant users Source: Insights from Global Chief Information Officer Study, IBM 2009, High Growth Company CIOs 58% High growth CIOs proactively craft data into actionable information Source: Insights from Global Chief Information Officer Study, IBM 2009, High Growth Company CIOs
Main Point: Working smarter is about redefining how people collaborate in order to maximize their effectiveness. Speaker Notes: How can we maximize people’s effectiveness? By fostering a collaborative way of working that brings together people anytime and anywhere, makes collaboration a fundamental part of our business processes, and takes advantage of new insights made possible by the sophisticated devices people carry and the pervasiveness of connectivity between them. Doing so creates a reinforcing effect among our people, who are empowered to contribute more directly than ever to the success and improvement of our organizations. Smart Work enables people to discover and combine expertise and information in time and in context. It is rarely the case that the experts and information to help us solve a problem simply do not exist. The real problem is finding and applying them to the task at hand the moment they are needed. When collaboration is made a part of the business processes in which people participate, they can simply and naturally discover and access the expertise and information they need in the context of their work. In a medical environment this can save lives. While reviewing a patient’s CT scan, a radiologist sees a complication that she has not encountered before. Without leaving the medical imaging application, she can instantly find and connect to an expert on the other side of the country who recognizes the issue and its severity. The radiologist can then bring the appropriate surgeon into the conversation and together they can take the steps needed to save the patient’s life. Smart Work enables people to collaborate without distractions and delays or high costs. The input people receive during the course of their workday can be overwhelming. Increasing collaboration among people can exacerbate the problem if not done intelligently. By taking into account the way people work best and providing integrated collaborative capabilities that follow the individual wherever he or she goes, organizations can help their people be as productive as possible while optimizing the cost of the supporting infrastructure. Product design processes increasingly require collaboration across geographies and types of workers, all while meeting stringent deadlines. Design team members can seamlessly access the people and information they need within the context of their work. They can remain up-to-date with the latest changes to project status across a highly distributed team. And they can do all of this whether in an office, in the lab, at a test site, or visiting a partner’s facility. As a result, teams achieve better outcomes faster, and individuals contribute more with less wasted effort. Smart Work connects people to drive insight and deepen relationships. Great ideas can come from anyone, and the best ideas tend to come forward when several people share and apply their unique perspectives. The very process of collaborating to generate and improve upon ideas tends to have the effect of deepening the relationships that lead to sustainable competitive advantage. By fostering collaboration that values input and participation from employees, customers, and partners, organizations can build a culture of innovation that takes on a life of its own, where each individual is looking for ways to improve the business and knows that he or she can make a difference. In the insurance industry, some companies are encouraging closer collaboration between the company and their network of independent agents who are out in the field meeting with customers every day. As a result, they are developing greater insight into the market and generating new ideas for serving customers with innovative products, all while deepening the relationships that enable them to differentiate against the competition. We’ll show you one such example on the following slides.
Main Point: Technology capabilities are exploding, but are we effectively bringing those capabilities to bear on business priorities?. Speaker Notes: Technology continues to advance at explosive rates. We expect nearly 30 billion RFID tages will have been produced and embedded by next year. And that number will continue to accelerate. There are 1 trillion connected objects worldwide comprising “the internet of things” When this technology is aligned with the business needs, great things happen. When it’s not, business suffers. Companies with isolated business and IT earn less than 88% of their better aligned counterparts. That 12% is significant. The power of today’s technology is only realized if it truly supports the business. Background Detail: We are heading toward one trillion connected objects—comprising “the Internet of things.” Source: Pereira, Jorge, “From Autonomous to Cooperative Distributed Control: Towards the Internet of Smart Things,” Second ERCIM Workshop on eMobility, WWIC, May 30, 2008. By 2010 there may be 30 billion radio frequency identification (RFID) tags produced globally, embedded in products, passports, buildings—even animals. Source: McGrath, Dylan, “Report: RFID production to increase 25 fold by 2010.” EE Times, January 18, 2006. eetimes.com/showArticle.jhtml?articleID=177101437 Companies with isolated business and IT earn less than 88% per share of their more agile counterparts. Source: “Business Technology Convergence Index,” Hoque, Fillios, Cash, Kirkpatrick, Mimms, Palepu, Sambamurthy &amp; Zmud, Business Technology Management Institute, pp.8-17, June 2007. 66% CIOs see technology driven innovation as and important Visionary Element of their strategy* Source: Insights from Global Chief Information Officer Study, IBM 2009, High Growth Company CIOs 92% CIOs say technology is very important for the future success of the business/company/division* Source: Insights from Global Chief Information Officer Study, IBM 2009, High Growth Company CIOs NOT BIG ENOUGH NUMBER!! 44 % CIOs* create IT Centers of Excellence to help realize business and technology innovation. Source: Insights from Global Chief Information Officer Study, IBM 2009, High Growth Company CIOs
Main Point: Working smarter is about redefining how technology enables the flexibility to meet business needs quickly. Speaker Notes: If we were talking about sailing around the world, IT would often be viewed as the anchor instead of the sailboat. How do we make IT the finest, swiftest sailing yacht available? Working smarter means that applications must work for you rather than vise versa. IT budgets bound by maintenance of existing investments must still generate the new application function and deliver the capabilities required by a dynamic business. So, existing investments must be easily leveraged for new function. By service enabling and reusing existing investments, IT can maintain budget integrity and provide the flexibility to quickly deliver new function as business needs change. This is the power of Service Oriented Architecture (SOA) and Web 2.0 technology – leveraging and reuse existing investments, enable flexibility, and quickly delivering new business function – cost effectively. For example, what if we were to instrument delivery trucks with GPS capability such that we knew where they were in real-time and made that information available to the business as a service. Not only have we easily provided function the business can use, but then a business user, without IT intervention could quickly mashup that information with google maps and information on inventory level at various locations we’ve also made available as a service. How do you use technology to connect the people, processes and information – inside and outside the organization for maximum benefit? First and foremost it is about enabling flexible connectivity, not rigid, hardcoded, point-to-point connections, but truly flexible service-oriented connection – enabling true any-to-any connectivity with the security and performance for any business purpose. For example, what if not only were you able to see your own inventory levels, but you could easily connect with potential suppliers – anywhere in the world, in real-time, to see availability and pricing of items needed for the business – and then easily transact business to fulfill your needs.. Capturing accurate, relevant, trusted information either from business data or business events sensed through instrumentation or people is critical to working smarter. Whether the information comes from an internal database or external financial systems or an oil rig in the North Sea or from an RFID tag on a package in transit – it must be captured and made available. Then that information must be delivered, in context, to the people and processes that need it, when they need it, no matter where the people or processes might be. Maybe it’s an executive in their office or maybe it’s a business traveler on a train or maybe it’s a partner across the world. For example, let’s think about an electrical utility. The grid for generating and delivering electricity is vast and sometimes remote. When problems occur, it’s often up to citizens to call it in. Given the lack of information, finding and fixing the problem, even when there are notified about it by citizens can take the utility quite a bit of time. What if instrumentation were added to the grid that could automatically sense and relay information about outages immediately – giving the utility both the intelligence it needs to fix problems, but notification of the problem immediately – sometimes even before it affects consumers. Let me tell you a little bit about a utility that did just that.
Now that we’ve talked through Smart Work conversations, the next question is what are the capabilities necessary to delivery upon them?
Main Point: IBM Smart Work capabilities let’s us take full advantage of opportunities available today by combining the elements of work Speaker Notes: This is where IBM can help. With offerings and expertise we can help clients make processes and even the fundamental business models more dynamic, we can make collaboration better, smarter. We can provide a set of technology capabilities that maximize agility and the ability to interconnect things through Smart SOA. AND, we can bring them all together to help you work smarter. Because this is what it’s really about. It’s about taking advantage of some amazing opportunities available to us when power of the combined elements of smart work is realized. Background Details: