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Future Technology Focus

2009 IBM Corporation

Future Focus Business means Technology Ian Jones, NCC, Head of Research 2009 IBM Corporation

Agenda

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2009 IBM Corporation

About NCC

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2009 IBM Corporation

Change is the only constant…..

– Did you Know?

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2009 IBM Corporation

Technology Trends: Enterprise 2.0 – the old guard vs the 2.0ers

Compromise 6/x

2009 IBM Corporation

Enterprise 2.0: Examples…

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2009 IBM Corporation

Enterprise 2.0: Examples

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2009 IBM Corporation

Enterprise 2.0: Examples – www.twine.com

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2009 IBM Corporation

Technology Trends - Cloud Computing

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Put simply…

Cloud Computing is… the externalisation of enterprise IT across the

internet to provide business

services from a commodity based infrastructure…. …. With and

payment by usage…

limited, if any, commitment from either side. 11 / x

2009 IBM Corporation

Its all about convergence - a brief history….

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2009 IBM Corporation

Market predictions… software and IT Services

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2009 IBM Corporation

Why?

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2009 IBM Corporation

Why not?

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2009 IBM Corporation

Recommendations – what now?

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Security vs. Accessibility…

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2009 IBM Corporation

Ian Jones, NCC Head of Research Tel: 0161 242 2170 Email: [email protected]

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Internet Security - Threat Landscape: Trends

― Attackers are increasingly targeting end users by compromising high-traffic, trusted websites. ― Attackers are moving their operations to regions with emerging Internet infrastructures and, in some instances, developing and maintaining their own service provisioning. ― Cross-functional industry cooperation in the security community is becoming imperative. ― source: Symantec Security Threats Report 2009

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19

Internet Security T

Malicious code is installed source: Symantec Security Threats Report 2009 IV • In 2008, an average of more than 245 million attempted malicious code attacks blocked worldwide each month. • Over 60% of malicious code signatures were created in 2008. • Over 90% of threats discovered in 2008 are threats to confidential information.

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2009 IBM Corporation

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Stolen Information is sold source: Symantec Security Threats Report 2009 • Credit card information (32%) and Internet Security Threat Report XIVbank account credentials (19%) continue to be the most frequently advertised items.

• The price range of credit cards remained consistent in 2008, ranging from $0.06 to $30 per card number. • Compromised email accounts can provide access to other confidential information and additional resources.

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Phishing trends source: Symantec Security Threats Report 2009

― In 2008, 55,389 detected phishing website hosts, – Increase of 66 percent over 2007, when 33,428 phishing hosts detected.

― In 2008, 43 percent of all phishing websites identified were located in the United States, – In 2007 69 percent of such sites were based there.

― One particular automated phishing toolkit identified was responsible for an average of 14% of all phishing attacks during 2008.

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2009 IBM Corporation

22

SsSpam

source: Symantec Security Threats Report 2009 IV

• Over the past year, Symantec observed a 192 percent increase in spam detected across the Internet as a whole, from 119.6 billion messages in 2007 to 349.6 billion in 2008. • In 2008, bot networks were responsible for the distribution of approximately 90 percent of all spam email. • Russia, Turkey, and Brazil experienced significant increases in spam volume this year.

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23

In summary ― Technology has a pivotal role ― IT Security Policy – dust it off and update it… ― Use it… ― Make sure its owned at the highest possible level.. ― and used at all levels…

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Future Focus

2009 IBM Corporation

Future Focus Jay Bregman

2009 IBM Corporation

Future Focus

2009 IBM Corporation

Future Focus David Henery

2009 IBM Corporation

Future Focus

2009 IBM Corporation

Focus of Future Technology David Henery, Software IT Architect [email protected]

June 2009

2009 IBM Corporation

Agenda Client Challenges and IBM Smarter Planet Focus Five Technologies that are changing Business 3. Mobile Payments and advanced RFID 4. Collaborative Technologies and Customer Interaction 5. The 3D Internet and Virtual Worlds 6. Cloud Computing Examples 7. Exploiting Data – Digital Surveillance Summary

Clive Harris, IBM Distinguished Engineer June 2009

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2009 IBM Corporation

For us to make sense of this new world, we must consider four critical challenges “Data is exploding and it’s “My infrastructure is inflexible “New business & process and costly” demands ” in silos”

“Our resources are limited”

I Need Insight

I need to respond quickly

I Need to Work Smart

I Need Efficiency

How can we take advantage of the wealth of information available in real time from a multitude of sources to make more intelligent choices?

How do I create an infrastructure that drives down cost, is intelligent and secure, and is just as dynamic as today’s business climate ?

How can I work smarter supported by flexible and dynamic processes modeled for the new way people live & work.

How do we align our goals & behaviors with our new responsibilities to so care for our planet and its people.

New Intelligence

Dynamic Infrastructure

Smart Work

Green & Beyond

Clive Harris, IBM Distinguished Engineer June 2009

Page 32

2009 IBM Corporation

Four key initiatives

IBM’s smarter planet vision

New Intelligence

Dynamic Infrastructure Smart Work The world has become flatter and smaller. Now it must become smarter.

Green & Beyond

Clive Harris, IBM Distinguished Engineer June 2009

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2009 IBM Corporation

NFC (Near Field Communications)

Payments Access Marketing

2D barcode sensor Access to services Clive Harris, IBM Distinguished Engineer June 2009

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2009 IBM Corporation

Contactless and mobile payment trends differ among regions POS

0.5M Convenience in commuting drives adoption in US  

EzPass, Mobile Speed Pass early dominators Parking, Pharmacy and Retail stores following with contactless payments  e.g. Chase Blink

2M Transit drives adoption in Europe

40M Japan and Korea leading the world in contactless

Effort and cost of EMV rollout slowing interest in contactless launched Visa Wave with 50K  Growth driven by transit cards/mobile phones, accepted at 66 pilot systems in Paris, London, national Tesco stores Lisbon bitWallet JV pf NTT Suica adoption & Sony with 43K driven by East merchants, 23m Japan railways launches PayPass in users 7/06 with 25K cards 

launched Visa Wave in 2005 with 300K cards, 2 co-brand partners Watson’s and CostCo Source: Datamonitor, June, 2006, “Contactless Payments 2006”, ePayments News Network, 7/06, ABI 3/07, Cardline, Aberdeen Group 2006, IBM analysis Clive Harris, IBM Distinguished Engineer June 2009

= other pilots and trials

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2009 IBM Corporation

COBRA … listening to the voice of the customer COBRA includes a dynamic dashboard where filters can narrow the search down to specific topics

Clive Harris, IBM Distinguished Engineer June 2009

Page 36

2009 IBM Corporation

How does IBM use Virtual Worlds?

Clive Harris, IBM Distinguished Engineer June 2009

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2009 IBM Corporation

Cloud Computing – a Disruptive New Paradigm “Clouds will transform the information technology (IT) industry… profoundly change the way people work and companies • Provides massively scalable computing resources from operate.” anywhere

2009 Cloud Computing

• Simplifies services delivery • Enables rapid innovation of new business models

Software as a Service

• Dynamic Infrastructure for next generation data centers

1990

Utility Computing

Grid Computing

Clive Harris, IBM Distinguished Engineer June 2009

Page 38

2009 IBM Corporation

Cloud Computing Network-Delivered Services are the culmination of a long term trend to simplify the purchasing of IT Services

Definition:

The 5 Layers of Cloud Services

Cloud computing is a model of shared networkdelivered services, both public and private, in which the user sees only the service, and need not worry about implementation details Types of Clouds Private Cloud

Specialty Cloud

Commodity Cloud

On-premise or remote

Provides services to a particular industry, geography, etc.

Generic services (CPU cycles, e-mail, storage, etc) available to anyone

Built with deep application knowledge

Requires massive scalability in operation and management

Service-oriented architecture Built on New Enterprise Data Center

Requires technology for security / isolation

Clive Harris, IBM Distinguished Engineer June 2009

People Services Business Services

Social Networking Collaboration Sales Force Automation

Customer Care

Payments

Application Services

Industry Frameworks & Information Foundation

Platform Services

Open SOA Foundation Service Bus

Infrastructure Services

Distributed Cloud Computing Services

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2009 IBM Corporation

Growing Portfolio of IBM Cloud Computing Offerings A portfolio of leadership products and services for optimizing with cloud computing that continues to grow to support customers with cloud building and cloud delivered offerings.

Cloud Consulting

Cloud Implementation

Infrastructure strategy & planning for cloud computing Business cloud consulting services IT optimization services

IBM design and implementation for test & developer Cloud IBM Service Management Center for Cloud Computing Scale out File Services

Clive Harris, IBM Distinguished Engineer June 2009

Cloud Delivered IBM LotusLive Computing on Demand IBM Information Protection Services • Remote data protection service • Managed data protection for desktops and laptops

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2009 IBM Corporation

History of exploiting data The ability to extract value from massive amounts of data and respond to real-time information is becoming a crucial competitive differentiator. Value is realized by making smart data-driven decisions.

Structured ~ 20%

image

Solution Area

Surveillance video analysis feature extraction image recognition

Analytic technology

speech recognition Call-center apps

audio

translation

Social Network Analysis

event recognition

Data Types

Unstructured Information ~ 80%

video

text

sentiment recognition entity recognition

keyword search

term extraction Linguistic models

Numeric

-3000

0

Census

1600

1800

Forecasting Zhou Dynasty

Mesopotamia Egypt

1958 H.P. Luhn (IBM) defines the term Business Intelligence

Roman Empire

Clive Harris, IBM Distinguished Engineer June 2009 data warehousing

Statistics

Inca

1960

1990

Question Answering Patent Mining

Reputation Analysis

SEC doc analysis correspondence analysis terrorist threat

2000

2010

Black Monte Carlo Swans simulations neural networks Machine Learning Supply-Chain Management predictive modeling

Operations Research Optimization

1889 Hollerith Tabulating Machine Patent 395782 1654 Pascal and Fermat Credit Probability Theory

data mining

1980

Story understanding pass SAT, GRE …

clustering decision trees

Customer Segmentation

Fraud

queuing theory

Scoring

Markov decision process

Time

Risk stochastic analysis

Portfolio Optimization Page 41

2009 IBM Corporation

Intelligent Security - Smart Surveillance Big Brother is Watching !! Turning video data into useful information

IBM Research

What: “Find red cars” Value: Respond to new threats

Customer hot spot – high value display area in store

At returns counter with product

Enters store without product

What: “Match people across cameras” Value: Prevent Returns Fraud

Sample Smart Surveillance Solutions

Lunch / After work peak traffic at store What: Count people Value: Measure Conversion Rate

Bets placed after cards are dealt

What: Space usage statistics Value: Display Effectiveness

What: Real-time Alerting Value: Prevent Cheating in Casinos

Virtual Perimeter around Tarmac

What: Real-time Alerting Value: Prevent illegal entry into secure area

Real-time Translation Services

Simplified Business Engines

Intelligent Utility Networks

3D Internet

“Digital Me”

Big Green Innovations

Branchless Banking for the Masses

Smart Healthcare Payment Systems

Intelligent Transportation Systems

Electronic Health Record System

Clive Harris, IBM Distinguished Engineer June 2009

Page 44

2009 IBM Corporation

Do one brave thing today … then run like heck !!

Do one brave thing today … then run like heck !! Clive Harris, IBM Distinguished Engineer June 2009

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2009 IBM Corporation

Future Focus

2009 IBM Corporation

The Balmoral – Strategic Challenges Michael Halsall, Director of Sales & Marketing 11th June 2009 2009 IBM Corporation

The Balmoral – A brief history • Opened in 1902 as North British Station Hotel, Edinburgh. • Designed by Hamilton Beattie and A R Scott : „a free rendering of the Renaissance period“. • The grand age of steam. • Edinburgh‘s hub. • The Clock Tower. • Then : 700 rooms (including cellars) , 300 bedrooms , 52 bathrooms , 70 lavatories, 24 enamelled spittoons , a billiard room , smoking room , drawing room , Grill Room , 13,000 tons of stone , 1,600 tons of steel girders , 8 million bricks. • The market : wealthy landed families on the move between summer and winter residences.

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The new Balmoral • 1913 – all menus in French. • 1922 – menus showed a stylish modern self confidence and hotel bottled and blended its own whisky. • 1946 – first transatlantic flight landed at Prestwick. • 1970 – Edinburgh opened a new runway. • 1980s – hotel still baked bread & butchered meat for the dining cars in Waverley below. • The New Edinburgh – an old hotel is reborn 1991. • 1997 acquired by Rocco Forte Collection – the first in a new company.

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The Art of Simply Luxury

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Business Structure ― THE PRODUCT ― Bedrooms , Restaurants and Spa. ― 188 rooms including 20 suites : rates from £125 to £2000. ― 3 restaurants including Michelin starred number one , Hadrian’s Brasserie and Palm Court. ― 2 bars : The Balmoral Bar and Bollinger Bar. ― Extensive meeting rooms. ― Balmoral Spa.

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The Team ― Operations: – Front office, housekeeping, food & beverage, banqueting, maintenance. ― Administration: – Accounts, HR, Sales & Marketing (sales, groups & reservations, events, marketing & PR) ― Head Office: – Finance, E-commerce, Design, Marketing & PR, Sales, Development.

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Strategic Challenges ― Maintaining and Enhancing Service Delivery ― Maintaining or leading Market Position ― Technology ― Social Media ― Creating change

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Maintaining Service Delivery ― Moments of truth ― Making people happy : a happy, knowledgeable and confident workforce = delighted loyal customers = profit ― Creating truly memorable experiences

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Maintaining Market Position ― This can only be achieved by: – Talent acquisition and recognition – right people for the right jobs. – Training with a purpose – to maintain service delivery. – Motivating staff. – Product refinement. – Adapting to market conditions : correct pricing across the whole business. – Maintaining and enhancing our reputation. – Embracing new customers.

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Technology ― Distribution channels are becoming more complex : GDS, third party websites (lastminute.com), our own branded website. ― What we offer our customers in-house : bedrooms, conferences, public areas.

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Social Media ― How do we communicate with our customers ? ― How will this change ? ― Facebook, A Small World, Tripadvisor, Bluetooth.

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Creating change ― Leader not a follower : product, design, service, price, distribution ― A clear mission, vision and strategy ― Engaging with our employees to empower them ― The world has fundamentally changed

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Where are we ? If we don’t know where we are, how certain can we really be ? 120 100 80 60

Market Status

40 20 0 Autumn 2008

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Future Focus

2009 IBM Corporation

Future Focus Smart Ideas

2009 IBM Corporation

Smart Ideas from forward-looking organisations Future Focus website has become a hub for Smart Ideas including The Ultimate Leadership Guide – a desktop tool with a synopsis of all the best advice on everything from motivation and problem solving to planning and self-development Flexible Skills Bank – allowing smaller businesses to tap into a register of skilled professionals who work part time and freelance Study Ball – quite literally, a 21 pound ball and chain with a timed release designed to ensure your son or daughter doesn‘t slope off when they should be revising for exams (!)

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Favourite Smart Ideas: Hydrocyc from DPS Engineering DPS specialise in process systems for the oil and gas industry Now developed a domestic water recycling system called Hydrocyc Recycles 'grey' water - the waste from baths, showers and hand basins - so that it can be used for flushing toilets or watering the garden. Considerably smaller, lighter and more affordable than any alternative systems Reduces water bills by as much as 30-35pc (the amount of drinking water currently used to flush the toilet in a typical home) Homeowners should recoup the cost within just two years www.dps-global.com

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Favourite Smart Ideas: Niggle Niggle offers businesses customer feedback technology which is free at the point of use. Any organisation can advertise Niggle feedback channels to their customers, encouraging customers to send feedback via text message, mobile phone and online. The service is completely free to the business. Customer contact details are protected by Niggle, so customers trust it as an independent feedback delivery service. Niggle makes money when businesses ‘upgrade’ to use Niggle to reply to and reward customer feedback – even if it’s given anonymously. www.niggle.co.uk

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Runner-Up: OfficePOD

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The Service + Product The Full Service - site survey, enabling work, installation, customer support, repairs, relocation and removal. Lease - £5k p.a. + VAT Preferred by medium/large organisations as a full outsourced service. Purchase - £20k + VAT. Preferred by smaller organisations as tax deductible within £50k annual allowance.

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OfficePOD is a Smart Idea because it 1. Reduces fixed costs by £9k/person/annum plus for any business currently paying rent >£50 / sq ft 2. Attracts and retains the best staff – Proximity to the fixed office no longer an issue 3. Improves environmental/CSR position – Instant CO2 reduction between 46-67% 4. Increases productivity – Properly managed home-working increases productivity 5. Creates a business that’s flexible/dynamic to change with incremental growth possible 6. Shorter order & commitment period than normal office & transferable if employee moves or leaves 7. Outsource Non-Core Service – ‘One-stop shop’ for provision of the work environment

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Best Smart Idea: The Highways Agency

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2009 IBM Corporation

Need for change 1958

2008

2.8m Vehicles

28m Cars 33m Vehicles

8.62 miles of Motorway

2025 miles of Motorway 6500 miles of Motorways and Trunk Roads

Preston Bypass cost £2.9m

M/way and Trunk Roads worth >£80bn

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Smart Ideas for managing motorways “Toolkit” of technologies and construction procedures to make better use of motorways and trunk roads

• Additional capacity for vehicles (see extra lane on left) • Piloting & evaluating new and innovative concepts • Helping to alleviate congestion • Improving the detection of & response to incidents • Reducing delays caused by incidents or congestion

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Information Technology

4,450 traffic sensors 1,030 ANPR cameras to monitor journey times (448 sites) 1,000 CCTV cameras 1,250 MIDAS sites 1,470 other outstations measuring flow Equipment Availability 98.7%

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Better Information

Mobile website

Internet Services

Information Points

Variable Message Signs

HA National Traffic Control Centre

Traffic Radio

Information Line 08457 50 40 30 74 / x

2009 IBM Corporation

Future Focus

2009 IBM Corporation

Future Focus futurefocus.blog.com

2009 IBM Corporation

Future Focus

2009 IBM Corporation

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