IT Lecture to 2009 Executive MBA Class at University of Tennessee.

1. WHAT EVERY EXECUTIVE NEEDS TO
KNOW ABOUT IT
Executive MBA Class
May 20, 2009

2. WHAT EVERY EXECUTIVE NEEDS TO KNOW ABOUT IT
 IT is a commodity
 IT should be customer driven
 Consolidate IT organizations
 Plan to spend 4-8% of gross revenues on IT
 Design a “to-be” set of technical standards
 Business units should own the business process
 IT should have technical standards.
 See past IT staff pushing “technical religion”

3. WHAT EVERY EXECUTIVE NEEDS TO KNOW ABOUT IT
 Digital natives offensively share information
 We are living in exponential times
 Product development is becoming simulation based
 Computers are starting to perform “knowledge discovery”
 Your corporate and your competitor’s data is online.
 Information security must be rethought
Good IT is about maintaining the fundamentals
while “living in the exponent”.
If you do, IT does matter!

4. WHAT EVERY EXECUTIVE NEEDS TO KNOW ABOUT IT
 Digital natives offensively share information
 We are living in exponential times
 Product development is becoming simulation based
 Computers are starting to perform “knowledge discovery”
 Your corporate and your competitor’s data is online.
 Information security must be rethought
Good IT is about maintaining the fundamentals
while “living in the exponent”.
If you do, IT does matter!

8. (source: CNET News)

9. If Facebook were a country,
It would be the 5th-largest in the world
More than 100 million users log on to Facebook at least once each day
More than two-thirds of Facebook users are outside of college
The fastest growing demographic is those 35 years old and older
Average user has 120 friends on the site
More than 3.5 billion minutes are spent on Facebook each day
Facebook is 5 years old

10. of time online
spent on social
networks
(source: The Guardian)

13. NOT JUST GEEKS!

14. The revolution has
gone global.

15. Culture
Youth are growing up

16. 1946-1960 1961-1975
Analog Technology
Boomers Generation X
Analog Technologies Telephone & TV
1976-1990 1991-2005
Generation Y Generation E
Digital Technologies New Technologies

17. “This generation thinks differently, behaves differently and is already starting
to demand, aggressively, big changes in the way society, business and
individuals interact. Is your workplace prepared for the changes?”
– CIO Insight Magazine
Gen Y - Social Model Boomers - Industrial Model
Offensive Defensive
Information Information
Sharing Sharing

19. Social Networking Sites
Got fired.
“Facebook Fired” became a meme
Intern posted this to facebook
… Is this what you imagine?

20. 60% of people use
social software
today for business
purposes.

21. Social networks today are explicit – and a pain

22. In the future, networks will be automatically
discovered.
Photo from Facebook
Phone numbers discovered in email signatures
Current status from Facebook / Twitter
Network of people we both know (derived by email)
Network of people she knows that I don’t know

23. WHAT EVERY EXECUTIVE NEEDS TO KNOW ABOUT IT
 Digital natives offensively share information
 We are living in exponential times
 Product development is becoming simulation based
 Computers are starting to perform “knowledge discovery”
 Your corporate and your competitor’s data is online.
 Information security must be rethought
Good IT is about maintaining the fundamentals
while “living in the exponent”.
If you do, IT does matter!

24. THE INTERSECTION OF CLEAN ENERGY AND
ECONOMIC GROWTH IS THE DEFINING
CHALLENGE OF OUR GENERATION

25. MEANWHILE OUR NEED FOR ENERGY IS AFFECTING
GLOBAL CLIMATE
30
Actual emissions: CDIAC
CO2 emissions (GtC y-1)
450ppm stabilisation
25
Climate forcing 650ppm stabilisation
is both stronger
A1FI
20 A1B
and sooner
A1T
A2
15 B1
than expected 10
B2
5
1850 1900 1950 2000 2050 2100

26. WE NEED FASTER COMPUTERS TO ACCELERATE
OUR UNDERSTANDING OF GLOBAL CLIMATE
CHANGE…

27. Cray 1 (1976)
136,000,000 Floating Point Operations Per Second

28. University of Tennessee’s “Kracken” supercomputer. World’s fastest academic computer.
Cray XT5 (2009)
1,000,000,000,000,000 Floating Point Operations Per Second

29. Cray XT5 (2009)
1,600,000,000,000,000 FLOPS
Cray 1 (1976)
136,000,000 FLOPS

30. We are just at the
beginning of the
computing revolution…

31. WHAT IS THE UT SUPERCOMPUTER USED FOR?
The Stuff of Dreams
 Limitless clean energy
 Quantified impacts of
atmospheric CO2
New insights into Climate code for global,
 U.S. cellulose based fuel cellulose-to-ethanol dynamic CO2 exploration
conversion
rather than oil
 Drug delivery systems
that release medicine
precisely where needed
Simulations of fusion First 3-D simulation of
reactor flame including chemistry,
temperature, and flow

32. SIMULATION DRIVES BUSINESS COMPETITIVENESS
Image courtesy of Pratt & Whitney
 Reducing design costs  Breakthrough insights for
through virtual prototyping manufacturers
 Procter & Gamble uses HPC to
 Reducing physical tests for
model production of Pringles® and
faster time to market
Pampers®

33. We were taught to share these discoveries
by publishing a paper or filing a patent
after all the work was done.
Paper (n):
The full record that supports that
claim should be available for
detailed examination and critique

34. Meanwhile we
communicate
electronically ...
Corporate email communications
Green = Internal
Yellow = External

35. to networks of
people...

36. What if we,
curate the
conversation...
… not the objects

37. Is the openness of the next generation going to change
the scientific process by allowing computers to mine
the “human conversation”?

38. Scientific Method Knowledge Discovery
Proving a hypothesis. Finding the unknown correlations.

39. The usual response to these ideas?

41. Scientists like…

42. …control
“To be termed scientific, a method of inquiry must be based on gathering
observable, empirical and measurable evidence subject to specific
principles of reasoning.”
- Wikipedia

43. They don’t like…

48. WHAT EVERY EXECUTIVE NEEDS TO KNOW ABOUT IT
 Digital natives offensively share information
 We are living in exponential times
 Product development is becoming simulation based
 Computers are starting to perform “knowledge discovery”
 Your corporate and your competitor’s data is online.
 Information security must be rethought
Good IT is about maintaining the fundamentals
while “living in the exponent”.
If you do, IT does matter!

49. Windows
Live

50. Mega Vendors
are providing
“free” services
so they can
jointly see your
data.

51. MATH IS GETTING BETTER AT MACHINE LEARNING
(EXTRACT KNOWLEDGE FROM DATA)
1980s: Pair wise document similarity (document clustering)
D1 w11 , w12 , ..., w1 t sim ( Doc a , Doc b )
(( Count ( word 1
_ inDoc a )) * ( Count ( word 1
_ inDoc b ))
D2 w 21 , w 22 , ..., w 2 t
(( Count ( word 2
_ inDoc a )) _* ( Count (Word 2
_ inDoc b ))
t (( Count ( word _ inDoc a )) _* ( Count (Word _ inDoc b ))
n n
sim ( D 1 , D 2 ) w1 i w2i
i 1
1990s: Latent Semantic Analysis (what does the word mean?)
terms
1 2 3 4 5 6 7 8 9
really just matrix multiplication:
term vector (query) x strength
matrix = doc vector
1 2 3 4 5 6 7
documents

52. WE ARE MAKING IT EASIER FOR THE MACHINE TO
LEARN
1980s: HTML
• Uses tags for formatting (e.g.,
“italic”).
• Describes the layout.
1990s: XML
• Uses tags for structure and
semantics (e.g., “this is the
address and contains the house
number, street, and postcode”)

53. GOOGLE FLU
• Web search terms
can be indicators of
flu activity
• Google can
estimate flu activity
per state two weeks
faster than
traditional systems
(US Center for
Disease Control)

54. DISCOVER YOUR COMPETITORS SUPPLY
CHAIN.
By analyzing Custom And Border Protection
public Bill of Lading, analysts were able to
determine Apple’s supply chain and release
date for iPhone3G

55. SENTIMENT ANALYSIS FOR STOCK MARKET
PREDICTION
 Brokerage houses are using computers to “micro-
trade” stocks based on sentiment analysis of blog
sphere.
Figure from Glance, Hurst, Nigam, Siegler, Stockton, & Tomokiyo, KDD’05

56. MY CURRENT MARKET STRATEGY
(YTD I AM UP 15%)
 I use zillow.com analysis of MLS to assess US housing
trends.
Wash DC
National Avg
 S&P housing index does the same thing, but releases
the news ~6 weeks after Zillow does.
 If there is a difference in the sentiment on the street (on
the day before the housing index is released) and what
I see on Zillow I will log/short NYSE:URE
 Correlation index between S&P and Zillow is 95%

57. THE MORE WE SHARE THE
SMARTER IT GETS.
GoogleDocs searched the web.
Googledocs determined the
commonality of what I was
entering and automatically Next generation versions will be
completed the rest of the list. able to tell you what correlations
exist between two seemingly
unrelated attributes

58. WHAT IS NEXT…
 Every photo is moving to the cloud
 Facial recognition is emerging as a
mainstream capability
 Within the next ten years you will be
able to search for a face in a
context like:
 “Show me a picture of bob in a car”
 Prepare for the skeleton in your
closet to return.
 We are going to need to redefine
what we expect to be private.

59. WHAT EVERY EXECUTIVE NEEDS TO KNOW ABOUT IT
 Digital natives offensively share information
 We are living in exponential times
 Product development is becoming simulation based
 Computers are starting to perform “knowledge discovery”
 Your corporate and your competitor’s data is online.
 Information security must be rethought
Good IT is about maintaining the fundamentals
while “living in the exponent”.
If you do, IT does matter!

60. Current approach to securing enterprise
information in the cloud

61. NEVER UNDERESTIMATE THE MOTIVATION, PATIENCE,
AND CREATIVITY OF AN ADVERSARY!
 They play strength to weakness
 They develop surprising partners
 They have no rules
 They see offense as a systems
challenge
 They attack against a defense
that is naïve, arrogant,
unbalanced and fragmented
We can work a lot harder at what we are
doing and not make much of a difference!

62. WHAT MOTIVATES A HACKER?
Spy
Thief
Trespasser
Vandal Author

63. The line between personal and business is increasingly blurred.
“You want to contact me in the evening, that is fine. We are going to use my home computer, IP phone, gmail, not yours”
Business needs greater agility to
Technology innovation is driven survive.
by consumer products “I can’t wait for IT to deliver that”
“I can do this at home, why not in the office?”
“The seed of
revolution is repression”
Woodrow T. Wilson
Digital Natives (younger workers) Consumer products cost
have new expectations less.
“You want me to do what? You must be joking, I’ll “How much? I could have 50 skype
ust use my Groove / Flikr / MySpace / del.icio.us for accounts for the cost of one of those old
collaboration. Next time IM me.” ISDN phones”
Human nature is to either avoid online services
or impose more security controls

64. Time to rethink history
information security
policies

65. IN ORDER TO LEAD THE REVOLUTION INSTEAD
OF REPRESSING IT WE MUST….
FOCUS ON SECURING THE DATA, NOT THE DEVICE

66. TYPICAL POLICY EXPRESSION…
…LACKS ENFORCEMENT TOOLS

67. ENTERPRISE DIGITAL RIGHTS MANAGEMENT (EDRM)
AKA: DOCUMENT LEVEL SECURITY
1. Author receives a client licensor
certificate the first time they rights-
protect information.
2. Author defines a set of usage
rights and rules for their file;
Application creates a “publishing
EDRM Server license” and encrypts the file.
3. Author distributes file.
1
4
4. Recipient clicks file to open, the
application calls to the EDRM
server which validates the user
and issues a “use license.”
2 3 5
5. Application renders file and
Information Author The Recipient enforces rights.
EDRM: This is not the same as DRM (iTunes / RIAA)

68. WHAT EDRM DOES NOT PROTECT FROM:

69. WHAT EVERY EXECUTIVE NEEDS TO KNOW ABOUT IT
 Digital natives offensively share information
 We are living in exponential times
 Product development is becoming simulation based
 Computers are starting to perform “knowledge discovery”
 Your corporate and competitors data is online.
 Information security must be rethought
You can’t teach “good IT”, it is about
“living in the exponent”.
IT does matter!

70. SUMMARY
 IT does matter, but you need to change your
expectations.
 IT can be THE strategic differentiator for a modern
business.
 The problem is IT is changing so quickly you can’t “teach
it” you have to jump in and “live it”.
 The only thing you can “teach” is to be offensive with your
information, think way outside the box and be ready for a
major cultural change to show “raw humanity” and what
people are really thinking. Yes, this is uncomfortable. But
if you are scared I did my job. Don’t think it is something
you can slow down. Get on board and make some money
by embracing the change.

71. “It is not the
strongest of the
species that survive,
nor the most
intelligent, but the
one most adaptable
to change.”
- Charles Darwin

72. Time for a change.