Don't get smacked by SMACK-IT

SMAC-IT
www.DKL.comSUCCESSREQUIRESADIRECTION...CHOOSEYOUR PATH
HOW SOCIAL, MOBILE, ANALYTICS, CLOUD, INTERNET OF
THINGS DISRUPTS AND CHANGES BUSINESS IN REAL TIME

A COMPLEX WORLD
➡ Long
gone
are
the
days
when
corporate
IT
strategy
remained
predictable.

➡ In
today’s
social-‐media
driven
business
world—where
topics
and
headlines
go
viral
in
minutes,
where

mobile
apps
connect
millions
of
people
to
corporate
databases,
and
where
engineering
can
add
sensors

to
every
product
crea?ng
signiﬁcant
data
analy?cs
challenges—the
nature
of
technology
is
disrup?ng

the
IT
business
landscape
like
never
before.
SUCCESSREQUIRESADIRECTION...CHOOSEYOUR PATH

ONCE UPON A TIME…
➡ Computers
lived
on
raised
floors,
behind
walls
➡ Only
a
select
few
were
trained/allowed
to
interact
with
them
➡ Big
problems
were
solved
(payroll,
banking,
inventory…)
➡ Most
of
them
in
batch,
overnight
➡ “Systems of Record”

➡ Computers
came
out
from
behind
the
walls
‣ Into
factories,
offices,
homes
➡ More
people
were
‘allowed’
to
interact
with
computers
➡ More
kinds
of
problems
were
solved
(travel,
drafting/design,
POS…)
‣ Many
of
the
problems
required
online
interaction
➡ “Systems
of
Engagement”
OVER TIME

TODAY AND TOMORROW
➡ Ubiquitous
computing:
more
intelligence,
more
places
➡ Everybody
has
skills/tools
to
interact
with/use
computing
➡ Entirely
new
classes
of
problems
are
being
found/solved
(payments,
shopping,
security,
robotics…)
➡ And
interaction
is
real-‐time,
online,
all
the
time
➡ “Systems
of
Insight”

DISRUPTION IS RAMPANT
➡ Industries
are
being
created
out
of
nothing
‣ 2014
video
game
revenue
($102B)
exceeds
movie
revenue
($88B)
➡ Industries
are
being
disrupted
by
new
entrants
‣ “Sharing
economy”
(e.g.,
Uber:
value
of
a
NYC
taxi
medallion
decreased
by
1/3)
➡ Traditional
firms
being
forced
to
reinvent
themselves
‣ ZF
(auto
transmissions)
bought
TRW
for
radar
technology
DISRUPTION IS RAMPANT
➡ Industries
are
being
created
out
of
nothing
‣ 2014
video
game
revenue
($102B)
exceeds
movie
revenue
($88B)
➡ Industries
are
being
disrupted
by
new
entrants
‣ “Sharing
economy”
(e.g.,
Uber:
value
of
a
NYC
taxi
medallion
decreased
by
1/3)
➡ Traditional
firms
being
forced
to
reinvent
themselves
‣ ZF
(auto
transmissions)
bought
TRW
for
radar
technology

DISRUPTIVE IT AT THE HEART: THINK “SMAC-IT”
Social

|
Mobile
|
Analytics
|
Cloud

|
Internet
of
Things
As
interesting
as
each
of
these
is
by
itself,
the
interaction
among
them
creates
even
more
opportunity
for
disruption

DISRUPTION #1: SOCIAL
➡ A
‘facebook’
was
a
dead-‐tree
book
given
out
at
Ivy
League
schools
to
promote
community

among
incoming
students
➡ Facebook
started
at
Harvard
in
2004.
Then
other
colleges.
Then
high
schools
in
2005.
Today

it
has
1.4B
active
users
➡ Other
social
networks:
QQ
(832M
users),
WhatsApp
(800M),
QZone
(668M),
Twitter
(316M),

Google+
(300M),
Instagram
(300M),
SnapChat
(200M),
LinkedIn
(97M)
➡ Maybe
more
important:
Yelp
(142M),
Ripoff
Report
(52M)

HOW FIRMS USE SOCIAL MEDIA
➡ To
target
advertising
(“Half
my
advertising
is
wasted;
I
just
don’t

know
which
half”—John
Wanamaker)
‣ Interest
Targeting
‣ Behavioral/Connection
Targeting
‣ Custom
Targeting
‣ Lookalike
Targeting
‣ Conversion
Tracking
➡ To
foster
‘communities
of
engagement’—
consumers
who
choose
to
discover,
use
and

interact
with
the
firm
and
its
brands
‣ “Crowdsourcing”
engages
interested/specialized
people

for
ideas,
feedback,
effort
➡ To
sense/respond
faster
‣ Remember
the
Yelp/Ripoff
Report
audience

WHY SOCIAL MATTERS
➡ Advertising
is
transforming
from
a
one-‐way
message
to
a
dialog
➡ Consumers’
voices
can
be
heard
around
the
world
‣ The
Good:
product
ideas
can
be
sourced
or
tested
quickly,
cheaply
‣ The
Bad:
complaints
need
to
be
dealt
with
in
new
ways
‣ Feedback
is
immediate
and
public,
so
be
careful
how
you
use
it

SOCIAL IT IMPLICATIONS
➡ Connect
Social
data
with
prospect
&
customer
data
‣ For
targeting
‣ For
selling
‣ For
contact
center
➡ Tools
to
analyze
large
amounts
of
unstructured
data
in
real
time
‣ To
sense
trends
‣ To
respond
quickly
➡ Tools
to
move
huge
amounts
of
data
from
social
providers
to
systems
of
record/engagement

DISRUPTION #2: MOBILE
➡ Incredible
size
and
even
more
incredible
growth
‣ Global
mobile
devices
grew
from
6.9
billion
to
7.4
billion
(2013-‐2014)
‣ Traffic
grew
from
1.5
exabytes/mo
to
2.5
exabytes/mo
(2013-‐2014)
‣ 1.9
billion
smartphone
users
in
2015
➡ Mobile
accounts
for
30%
of
online
transactions,
25%
of
travel,
51%
of
internet
engagement
time

HOW FIRMS USE MOBILE
➡ “Traditional”
consumer
uses
‣ Advertising
‣ Loyalty
apps
‣ Content
delivery
➡ Business
uses
‣ Location
Tracking
‣ Barcode/RFID/Zigbee
scanning
➡ Disruptive
uses
‣ Beacons
(hyperlocal
advertising…think
“Minority
Report”)
‣ Wallet
(Apple
Pay,
Samsung
Pay,
PalPal.me/Venmo,
etc.)
‣
Virtual
Reality
(Google
Glass)
‘object
tagging’

WHY MOBILE MATTERS
➡ The
world
is
going
mobile
‣ Accelerating
growth
in
users,
data
➡ Mobile
extends
the
connection
from
the
center
of
the
firm
to
the
edge
and
beyond
➡ Business
applications
trailing
consumer
uses—for
now

MOBILE IT IMPLICATIONS
➡ Support
for
10x-‐100x
number
of
network
endpoints
➡ Huge
data
storage/throughput
increases
➡ Identity
Management/Authentication
links
to
corporate
systems

DISRUPTION #3: ANALYTICS
➡ Analytics
encompasses
the
tools
needed
for
analyzing
data
and
for
managing
huge

increases
in
data
(“big
data”)
➡ Data
volume
is
increasing
faster
than
most
of
us
can
fathom:
(1
Exabyte
(EB)=
1
MILLION
Terabytes)
‣ 2009:
790
EB
‣ 2015:
7,900
EB
‣ 2020:
35,000
EB
(44x
growth
in
11
years)
‣ Social
&
Mobile
growth
(and
later,
IoT
growth)
are
increasing
data
volume
‣ It
is
estimated
that
unstructured
data
accounts
for
70%+
of
all
data
➡ Database,
Data
Warehouse
and
Business
Intelligence
tools
are
growing
in
both
capacity

and
ease
of
use,
increasing
access
to
insight

HOW FIRMS USE ANALYTICS
➡ Managing
the
business
better
‣ Demand
forecasting
‣ Pricing
‣ Weather
forecasting
➡ Interacting
with
consumers
better
‣ Trend
analysis
(fashion,
complaint
resolution)
‣ Fraud
analysis
(credit
cards)
‣ Rush-‐hour
route
optimization
(testing
in
Stockholm)

WHY ANALYTICS MATTERS
➡ Ability
to
ingest
and
analyze
huge
amounts
of
data
in
a
timely
manner
allows
optimization
of
many

processes
➡ Ability
to
analyze
semi-‐structured
and
unstructured
data
from
social
presence
allows
understanding
of
fluid

situations
(fast-‐developing
fads,
product
problems
requiring
action
(recall,
e.g.),
competitor
moves)
➡ It’s
not
just
the
data
‣ Lower
cost
analytics
tools
from
established
vendors
(e.g.,
Microsoft
Office365
add-‐ins)
and
from
disruptive
entrants
(Zoho,

Birst,
Tableau,
QlikView,
etc.)
make
analysis
more
widespread
rather
than
concentrated
in
the
hands
of
a
specialized
few

ANALYTICS IT IMPLICATIONS
➡ Big
data
needs
will
challenge
existing
infrastructure
‣ Example:
‘smart
meters’
read
4
times/hour
instead
of
1/month=288,000%
increase
in
data
(needed
a
specialized
data

management
tool)
‣ Look
at
Hadoop/Spark/Storm…but
z/OS
and
DB2
might
just
work
better
(http://davebeulke.com/hadoop-‐big-‐data-‐solution/)
➡ Rise
of
lower-‐cost
(often
cloud-‐based)
analytics
tools
will
increase
the
need
to
move
data
around
and
provide
access.

Security
&
ETL
tools
will
become
even
more
important…along
with
bandwidth

DISRUPTION #4: CLOUD
➡ We’ve
been
“timesharing”
and

“outsourcing”
IT
functions
to

specialists
since
the
1960’s
➡ What
does
“cloud”
even
mean?
‣ Private,
public,
hybrid
‣ Public
can
mean
AWS,
Azure,
Google
(mega-‐providers)
‣ Public
can
mean
Rackspace,
CenturyLink,
IBM/SoftLayer
(MSP/colo
providers)
‣ “X”aaS
‣ “I”nfrastructure
as
a
Service
‣ “P”latform
as
a
Service
‣ “S”oftware
as
a
Service

HOW FIRMS USE CLOUD
➡ Getting
out
of
the
infrastructure
business
‣ CapEx
-‐>
OpEx
‣ “Surge”
capacity
instantly
available
➡ Increasing
Agility
‣ New
infrastructure
architectures
spun
up
in

minutes
‣ Developers
don’t
have
to
wait
‣ SaaS
apps
deliver
enormous
functionality
➡ Backup
&
D/R
‣ Very
resilient
architectures
‣ Global
footprints

WHY CLOUD MATTERS
➡ The
cloud
is
different,
but
the
same
‣ Different
‣ Hyperscale
data
centers
‣ Standardized
architectures
&
APIs
‣ “Bite-‐sized”
SKUs
(Virtual
Machines,
Containers)
‣ Low
network
latency
+
incredible
bandwidth
‣ Same
‣ It’s
still
YOUR
problem
‣ Architecture
‣ Security
‣ D/R
‣ Budget
Management
‣ Infrastructure
is
interesting,
but
it’s

really
about
business
enablement

CLOUD IT IMPLICATIONS
➡ The
cloud
is
here—get
over
it
➡ Data
movement
Inside<-‐>Outside
is
vital
(as
is
data
management)
➡ Security
must
extend
across
the
extended
enterprise
➡ Virtualization
is
the
key
to
everything
➡ SaaS
vendors
will
‘steal’
your
customers—if
you
let
them
‣ IT
processes
can
be/must
be
optimized
for
‘cloud
speed’
‣ Does
every
application
need
heavy
(slow)
customization?
‣ Does
every
application
need
constant
(untested)
releases?
➡ All
this
stuff
is
interesting,
but
the
real
value
is
business
enablement

DISRUPTION #5: IoT
➡ Internet
of
Things
(aka
“Industrial
Internet”)
is
the
networking
of
sensors
and/or
actuators
to
allow

interaction
among
physical
devices
➡ 7B
objects
in
2013
-‐>
30B
by
2020
➡ Real-‐time
sense/respond
creates
new
opportunities
and
new
problems

HOW FIRMS USE IoT
➡ “Smart
Meters”
allow
time-‐of-‐use
electricity
pricing
and
optimize
grid
➡ Monitor
machinery
to
predict
immanent
failure
and
schedule
PM
➡ “Smart
home”
improves
safety
&
comfort
➡ Self-‐driving
vehicles
change
the
face
of
transportation

WHY IoT MATTERS
➡ Vast
streams
of
information
will
create
valuable
new
products/services
➡ Technology
component
of
most
every
product
will
increase
‣ The
Nest
thermostat
tells
Nest
smoke
alarms
“nobody
is
home”
‣ Imagine
temperature/light
sensors
in
wall
paint
and
carpets
‣ Imagine
your
clothes
dryer
asking
your
electric
meter
whether
it
was
‘night’
(free
power)
when
you
pressed
‘start’
➡ Creators
of
‘smart’
products
can
gain
a
first-‐mover
advantage
and
define
ecosystems

IoT IT IMPLICATIONS
➡ Huge
numbers
of
IP
addressable
devices
(IPv6)
➡ LOTS
of
data
to
collect,
filter,
analyze
‣ Too
much
to
centralize
(Cisco
calls
it
‘the
fog’)
➡ Rapid
movement
of
data
into
core
systems
will
be
key
for
sense/respond
➡ Rapid
decision-‐making
needed
for
real-‐time
control

DISRUPTING THE TRADITIONAL MODEL
➡ Systems
of
Record-‐>Engagement-‐>Insight
➡ Core
applications/databases
still
relevant
‣ Fast
online
response
‣ Fast/flexible
ETL
to/from
many
endpoints
➡ When
everything
is
a
computer,
where’s
the
data?
➡ When
everyone
has
skill/tools,
who’s
the
owner?
➡ When
everything
is
available
to
everyone,
what’s
the
nature
of
privacy?

THANK YOU
Contact us today for your free consultation.
Phone: +1.800.267.0730 Ext. 606
INFO@DKL.COM
www.DKL.comSUCCESSREQUIRESADIRECTION...CHOOSEYOUR PATH

Don't get smacked by SMACK-IT

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