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The New Landscape : Global Integration & Data Flows

The New Landscape : Global Integration & Data Flows. Harriet P. Pearson VP Regulatory Policy & Chief Privacy Officer. October 16, 2007. M. a. inframe apps. B. lue. -. Page 1 of 2. PC/NT apps. G. reen. Application Diagram V4. -. Depository. Unix apps. Y. ellow. -. Banks.

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The New Landscape : Global Integration & Data Flows

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  1. The New Landscape: Global Integration & Data Flows Harriet P. Pearson VP Regulatory Policy & Chief Privacy Officer October 16, 2007

  2. M a inframe apps B lue - Page 1 of 2 PC/NT apps G reen Application Diagram V4 - Depository Unix apps Y ellow - Banks Vendor Setup 3rd party interface Orange - Lines: Colors have no special meaning. Vendor Process Servers I17 Customer Perceived They are to help make the diagram easier to Maintenance UAR - Universal Account Budget In-Stock (Imaging) read. NEW Soundscan Sterling VAN Reconcilliation NPD Group Analysis Tool Roadshow For More Information: See the database Mailbox (Value) Mesa Data Printer AIG Warranty Guard S20-Sales containing information about each Maintenance Polling I13- Auto Application V4.mdb application: I15 Hand Scan Replenishment I06 - Customer Apps Printer PO Order Insertions S01 - Sales AIS Reports Orders Corrections AIS Calendar I06 Warehouse Due Dates Print Costing Management General Invoice App E13 Broadcast Maintenance Stores & Mrkts Fringe PO E3 Interface Filter Smart Plus M03 - Millennuim 3.0 Smart Plus S04 - Sales Posting Launcher S07 - Cell I03 Return to Phones P16 - Tally Sheet D01 Post Load Vendor M02 - Millennium S06 - Credit App Billing Equifax Stock Options S09 - Digital I12 Entertainment P15 EES Employee Satellite Software Change Notice L02-Resource System A04 - Cust L01-Promo Scheduling Refund Chks E01-EDI 1 Analysis (Campbell) P14 On-line New Hire Entry AAS V02-Price Resumix P01- Marketing Washington, Employee Support RGIS, Masterfile Ntl Bus Systems P09 - P17 Cobra Frick S11 - ISP Cyborg CTO2.Bestbuy. Co Tracking I10 Cycle Physical CTS com I04 Home Inventory ACH Deliveries V04-Sign Prodigy System U18 - CTO I02 - Banks - ACH and Pos to POS X92-X96 Transfers Pay Host to AS400 Communication Plan Administrators B01 - Stock Spec Source (401K, PCS, Life, Status SKU Tracking Unicare, Solomon I11 Price Smith Barney) I09 Cycle Counts Testing Supplier S08 - Vertex Compliance S02 - NPD, Intercept Sales E02-Employee Layaways SoundScan Tax Purchase Spec I01 PO Source SKU Receiving Scorecard - HR Performance V03- Mkt Reactions L60 MDF P09 Coop S03-Polling I05 V01-Price Management SKU Selection Bonus/HR Inventory Info System Tool I35 - CEI K02 Customer Repair ASIS Arthur Planning I35 Early Warning Tracking System I18 Rebate SKU Rep Transfer I55 SKU I07 Purchase Information Store Order Ad Expense ELT Monitor G02 - General PowerSuite Ledger Store Scorecard Sign Texlon 3.5 System NARM I14 Count Corrections Store Budget Reporting Valley Media B02 Merchandise U16-Texlon CopyWriter's Analysis BMP - Bus Workspace performance Mngt EDI Coordinator Merch Mngr Approval Batch Forcasting Journal Entry Tool Kit AIMS A05 - AP Ad Measurement AIMS Admin Cellular INVENTORY CONTROL APPS - PC INVENTORY CONTROL APPS - PC ACCTS REC APPS - PC Code Alarm DPI/CPI 990COR Rollover AIMS Debit Receivings OTHER APPS - PC IC Batching Bad Debt Ad S05 - House Reporting Devo Sales AP - Collections/Credit Inventory Adj/Count Correct Benefical Fees Display Inventory TM - Credit Card DB Inventory Control Reports Launcher Charges Beneficial Reconcil In Home Inventory Levels JEAXF Junkouts Inventory Roll JEBFA US Bank Recon Optika Merchandise Withdrawl Merchandise Withdrawl JEBKA PSP File Promo Credits Open Receivings JEDVA C02 - Capital RTV Accrual PI Count Results JESOA Shrink PI Time Results from Inv Projects JEVSA Connect 3 ICMS Credit AP Research - Inv Cntrl Price Protection JEVSF AP Research-Addl Rpts SiteSeer Sales Flash Reporting NSF In-Home Book to Perpetual Inventory Shrink Reporting TeleCredit Fees Data Warehouse Close Out Reporting SKU Gross Margin Repair Connect 3 Connect 3 Computer Intelligence Data SKU Shrink Level Detail (Interfaces to and from the Cash Receipts/Credit Reports PDF Transfe Count Corrections USM F06 - Fixed Data Warehouse are not Cross Ref for VCB Dnlds VCB Downloads Misc Accounting/Finance Apps - PC/NT displayed on this diagram) Assets Warranty Damage Write Off COBA (Corp office Budget Assistant) Billing Debit Receivings Star Repair PCBS(Profit Center Budget System) Cash Over/ DFI Vendor Database System Display Inventory Reconcil Short Merchandising Budget Prepared by Michelle Mills Display Inventory Reporting Today’s Enterprise Realities Source: IBM client engagement experience

  3. Five Historical Waves of Economic & Social Transformation The Industrial Revolution Crash Irruption Frenzy Synergy Maturity Installation Deployment Panic 1797 Age of Steam and Railways • Formation of Mfg. industry • Repeal of Corn Laws opening trade 1 1829 1771 Age of Steel, Electricity and Heavy Engineering Panic 1847 2 • Standards on gauge, time • Catalog sales companies • Economies of scale 1873 1829 Depression 1893 Age of Oil, Automobiles and Mass Production • Urban development • Support for interventionism 3 1920 1875 Age of Information and Telecommunications 4 • Build-out of Interstate highways • IMF, World Bank, BIS Crash 1929 1974 1908 Dot.com Collapse 5 Coming period of Institutional Adjustment 1971 Source: Perez, C., “Technological Revolutions and Financial Capital”, 2002

  4. 800 700 600 500 400 300 200 100 0 1995 2000 2005 Internet Connectedness as of 2006 Worldwide Internet Usage by Region Regional Share Crash Installation Deployment Middle East/Africa CAGR 30% Eastern Europe South Central America Asia-Pacific 25% # of Internet Users (M) 28% Western Europe North America 30% Over one billion individuals are using the internet ~17% of global population Source: http://www.internetworldstats.com/stats.htm Source: Computer Industry Almanac http://www.c-i-a.com/pr0899.htm

  5. The Global Landscape is Changing Global Resources Global Production Enabling Culture and Legal Systems Global Infrastructure

  6. The Particular Characteristics of the Coming Deployment Age of Information and Telecommunications Crash Irruption Frenzy Synergy Maturity Installation Deployment Dot.com Collapse Coming Period ofInstitutional Adjustment 5 1971 • A global game board – doubling of the labor pool • Open standards, and a proliferation of componentization • Aggressive exploration of new business models • Significant empowerment of individuals • And….opportunities to explore innovations in public policy and regulatory models

  7. A Universe of Modular Business Services Allows Even Small Businesses and Start-ups to Become Globally Integrated Setup Your Resources Service Your Customers Support Your Business Build Your Product Reach Your Customers

  8. Componentization is used to reduce complexity by splitting up a larger entity into its logical pieces which can be recombined for higher value • Componentization profoundly impacts life and economy: • In entertainment people select music song by song instead of taking a whole compilation for more customized experience • In healthcare targeted treatment leverages the knowledge of the individual genes improving from an evidence based view • In business design a company is represented by its components and not in its totality – allows for more objective and informed decisions CD Song Body Gene Business Component Source: IBM Corporate Strategy

  9. Collaboration is when people, companies or public institutions work together towards a common goal • Ongoing specialization, e.g. through outsourcing, as well as decreasing transaction costs drive broad collaboration among companies and individuals such as: • Open Innovation • Global teaming • Supply Chain Collaboration: Sharing supply and demand information • Tools support a highly productive collaborative environment for various processes • People and groups leverage tools from instant messaging and teamrooms to virtual worlds like Second Life • Engineers share models for design collaboration old Logistics with and without dealer collaboration new Project meeting in Second Life Source: IBM Corporate Strategy

  10. The individual has more power than ever before to act without large investments • The individual can: • Instantly connect in global communities (social networks, virtual worlds) • Directly build influence with self created content (blogs, wikis) • Rapidly start a business with only core components (managed processes, web 2.0 services) A Growing Universe of Modular Services Source: IBM Corporate Strategy

  11. The New Landscape Has Profound Effects for Business Actions “When everything is connected, work moves… the work of business and the work of technology. Work flows to the places where it will be done best” Sam Palmisano, INSEAD October 3, 2006 Global playing field Dramatically different business economics Modular / flexible business

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