2010 CIO Outlook v2.0

1. 2010 CIO Outlook v2.0 March, 2007 Dave Newbold

2. CIO Outlook • 2010 trends with impact • Current opportunity gaps • Enterprise 2.0 • Employee scenario • Scorecard to date “The 2010 CIO Outlook is a point of view on futureIBM business transformation and a roadmap for IBM’s CIO organization”

3. Trends with the most business impact in 2010 • Global integration • Participatory internet • Workforce demographics • Software as a service • Virtualized data and devices • Simplicity from design

4. “Its all about integration and innovation” - Sam Palmisano, April 25, 2006 Opportunity gaps • Plans are in place for data, productivity, business process and infrastructure optimization, and transition to services oriented architecture (SOA). • Therefore, we focused the 2010 CIO Outlook on:1. Employee driven integration2. Global collaborative innovation3. Aggressive pursuit of simplicity and hosting

5. 2010 CIO Outlook themes • Open data to (re)use • Capture participation • Transition to simple andopen hosted tools • Encourage customization • Reward sharing via reputation • Integrate results with clients What makes us special?

6. Manage Customers Store/Channel Operations Supply Chain & Distribution Finance Administration Business Administration Merchandising Store/Channel Strategy Channels Planning Financial Planning Strategy SCM Alliances CRM IPT Labor LOB Planning Store Design Insights Vendors Perf. Mgt. Distribution Market Mgt. MI Supply/Demand Customer Sat. Inventory Tactics Process Design Transformation View Logistics Promotions Space Mgt. Legal/Reg Finance Procurement Order Mgt. Store Mgt. DistributionOps. Vendor Mgt. Real Estate Treasury Execution CustomerAccts. Transportation Store Services Item Mgt. HR Back Office CustomerDirectory ProductDirectory Inventory Accounting IT Portal Service SOA/REST Service Request B2B Interactions Service Flow 2. 1. 3. Data Existing Applications New Service Logic Integration foundation: Services Oriented Architecture SOA builds a foundation of application and data services that permit business agility and encourage the reuse and ‘remixing’ of components “You will waste your investment in SOA unless you have enterprise information that SOA can exploit." Gartner Research, 2005

7. Innovation foundation: Web 2.0* patterns Users add value Service, not software • Recommendations • Social networking features • Tagging • User comments • Community rights management • User-driven adoption • Value on demand • Low cost of entry • Public infrastructure Easy to use and remix • Responsive UIs (AJAX) • Feeds (Atom, RSS) • Simple extensions • Mashups (REST APIs) *We use the expression ‘Web 2.0’ here because of its common usage, it is generally synonymous with the IBM term ‘Situational Applications.’ This paper is a good introduction: http://www.oreillynet.com/pub/a/oreilly/tim/news/2005/09/30/what-is-web-20.html

8. Innovation: Software as a Service (SaaS) The new generation of hosted software is: • Simpler to use • Easy to deploy and manage • Easy to customize • As capable • Often easier to integrate • Lower cost

9. Social Friending Blogs Blog comments Tagging colleagues Reputation evaluations Open wikis Tagging documents Open 'Activities' (task scripts) Using browser scripts Scripting formal processes Desktop task mash-ups Extending internal apps. (via script) Writing Situational Applications Desktop widgets Data APIs REST Services APIs Web Services Technical Enterprise 2.0 Spectrum Enterprise 2.0 (E2.0) • This combination of SOA, Web 2.0 patterns and SaaS is the core of the 2010 CIO Outlook strategy • Some analysts call this Enterprise 2.0* • What is the business value for IBM? • User driven innovation in search, data quality, customer insight, process improvement, etc. • Simpler more productive solutions for everyone, especially mobile employees • Integrationof user tasks, business processes and social awareness to improve quality of results • Reduced cost and higher employee satisfaction • Innovate E2.0 solutions for our clients * Andrew McAfee, Sloan Management Review, Spring 2006

10. Example: Building employee profiles How can we do a better job finding the right people, building relationships and trust? • Auto profiling? • Better search? • Include patents? • Include blogs? • Encourage tagging and then exploit it!

11. Example: Building employee profiles How can we do a better job finding the right people, building relationships and trust? • Auto profiling? • Better search? • Include patents? • Include blogs? • Encourage tagging and then exploit it! • Social networkfrom tags

12. Example: Employee desktop now and then • Current employee desktop: • Many generalized tools • Integration via cut&paste • Business process are ad hoc • Success depends on personal experience and network • Limited mobility and client access Future employee desktop: • Simple, hosted tools • Integrated by Activities and feeds • Business process visible and reused • Success depends on community • All components mobile and accessible

13. Detail: Employee desktop elements • Client dashboard • Custom assembled for client by the employee • Allows extranet access • Is a Situational Application Mobility • All Workplace components accessible at anytime • Activities • Task oriented view • Shared and refined by everyone– all with tags, ratings, reputations and recognition • Catalog • Desktop widget • Task specific ‘mash-ups’ sharing

14. Inhibitors Critical issues are: • Opening enterprise data for reuse • Creating web 2.0 component examples • Creating lightweight infrastructures: • Catalogs • Federated and more secure identity (Higgins) • Enterprise TR3 (tagging, rating, reputation and recognition) • Massive, reliable and inexpensive data stores • Giving permission to employees “User acceptance is our measure of success”

15. Dynamic workplace Collaborative innovation environment Business Process visualizations on desktop Very low cost storage Web identity and reputation ValuesJam: employees co-create IBM corporate values Open security Leading indicators Enterprise tagging server Early adopter program and component catalogs 200 175 150 125 100 75 50 25 70 60 50 40 30 20 10 Unique tags created (cumulative 000’s) TAP Early Adopter Membership (‘000s) 2003 2004 2005 2006 2007 2008 2009 2010

16. …or with a billion-person workforce?