Future Focus Future Technology: 2009 Ibm Corporation

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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Enterprise 2.0: Examples

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Enterprise 2.0: Examples – www.twine.com

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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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Market predictions… software and IT Services

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Why?

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Why not?

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Recommendations – what now?

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Security vs. Accessibility…

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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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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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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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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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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 Focus of Future Technology Clive Harris, IBM Distinguished Engineer 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

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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

Collaboration Landscape

Clive Harris, IBM Distinguished Engineer June 2009

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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

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2009 IBM Corporation

Physical / Communications Reach

The Evolution of Communities Over the Centuries InterGalactic

t cas d a Bro 1902

Galactic

al Physic

196BC Rosetta Stone

~1041 Pi Sheng Printing Press

InterContinental

Local

~1800 First Typewriter

405BC Heliograph

Planetary

Regional

al

~2015 Voyager I will leave Solar system

Electric Typewriter

Solar System

Continental

b Glo

3000BC Papyrus

2000BC Alphabetic Writing

1837 Morse’s Telegraph 1792 Semaphores

1927 Television

~1860 Telephone

~1450 Gutenberg Printing Press

1969 Internet

6000BC-4000BC Symbolic Writing

Industrial Revolution and Egyptian Dynasties Roman Empire Middle Ages Renaissance Urbanization

3500BC Wheeled Carts & River Boats

2000BC

1000BC

2000BC Horses Tamed

Constructed from: http://en.wikipedia.org/wiki/List_of_timelines

Clive Harris, IBM Distinguished Engineer June 2009

0

Engineered Roads

500



Digital Divide

2400BC Courier System

3500BC

1896 Radio

1000

770 Iron Horseshoes

1500

1700

1672 Steam car

Exploration and Exploitation by Ocean Going Ships

1800

1804 Steam Locomotive 1783 Hot Air Balloon

1850

1943 Colossus

Industrialization and SubUrbanization 1900

1903 Airplane



1969 Man Reaches the Moon

1987 MMORPG 1991 3D MMORPG 1981 IBM PC

1947 1908 Supersonic Automobile Flight Assembly Line 1926 Liquid Fueled Rocket

2063 1st Warp Drive

2151 Enterprise NX-01



2000 International Space Station 1989 The WEB

1950

 

Digital Communities 2006 Second Life

Information Age Digital Communities

2000

1967 Concorde

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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

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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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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

Succeeding in the New Economic Current Climate

Clive Harris, IBM Distinguished Engineer June 2009

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2009 IBM Corporation

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

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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

Future Focus Case Study

2009 IBM Corporation

Daniel Bennett Managing Director

Presenter’ Name – Presenter’ Title Date

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Help !

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History ―1896 commenced manufacturing paper bags for Cheshire’s salt industry ―Requirement for printing on bags ―1930s Mr Francis Conn bought Wright’s to print Christian Evangelical Literature ―1960s 70s and 80s over 90% of output for Christian organisations ―1990s emphasis on commercial printing for marketing, advertising and design agencies

Presenter’ Name – Presenter’ Title Date

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Now ―Commercial colour printers ―Typically printing leaflets, brochure, folders, mailers, corporate stationery ―Predominantly for marketing, advertising and design agencies ―A few end user customers supplying own artwork ―A few end user customers for whom we produce artwork

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Background Information ―11 Shareholders ranging from under 1% up to 25.5% holdings ―Printing first . . . business second ―Change only happened with purchase of new machinery ―Average length of employee service is over 25 years ―Family ties between many of staff ―Freehold property in state of dilapidation ―High investment / commitment business ―DB appointed MD October 2009 ―Predecessor started as apprentice typesetter in 1964 now Chairman

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The Recession ―20% downturn in turnover ―Order values > £10000 accounted for 30% of turnover ―Order values > £10000 all but dried up ―High cost of servicing smaller value orders ―Hugh pressure on margins – price matching to win work ―Simply “nicking” work off our competitors who are doing the same back to us ―UK print industry will never go back to how it was

Presenter’ Name – Presenter’ Title Date

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The Recession and our Customers ―Marketing, advertising and design agencies businesses are changing: • More emphasis on internet and digital • Their clients buying more print direct to save £££ • Agencies reluctant to let us by-pass them for fear of losing out • When “knocking on their doors” you join a queue of printers

Presenter’ Name – Presenter’ Title Date

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Action We Have Taken ―Company workshops: • • • • • • •

First time any training provided Recognise we have to change Personal development Team working Problem solving Continuous improvement Introducing Key Performance Indicators > Sales > Output > Spoilage

Presenter’ Name – Presenter’ Title Date

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Rebrand

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Restructure ―Reduced staff from 25 to 20 ―First redundancies since 1957 ―Remaining team have a new sense of determination

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Some Figures ―Turnover 12 months to May 09 at £1.45m – estimated loss of £120,000 • (Loss includes restructuring costs of £60,000) ―Turnover 12 months to May 08 at £1.8m – profit of £57,000 ―Projected turnover 12 months to May 2010 at £1.5m – profit of £50,000 ―3 Largest customers each account for 8% of turnover

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Business Plan ―Short Term (3 to 6 months) • • • • •

Consolidate – re-establish profitable trading position Reduce costs throughout the business Monitor profit and loss account against realistic sales and costs forecasts Manage cashflow and improve debt collection Devlop and manage sales process

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Business Plan ―Medium Term (6 to 24 months) • • • • •

Review direction of business to reflect changes to UK economy and UK print industry Improve efficiencies through lean manufacturing principles Consider investments that will increase profit and value Develop and train staff so they can maximise their contribution to the business Implement a realistic yet challenging sales and marketing plan

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Business Plan ―Long Term (24 months plus) • • • •

Grow the business and build shareholder value Build a management team for the future Relocate the business in to suitable / cost-effective premises Restructure ownership and shareholdings

Presenter’ Name – Presenter’ Title Date

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How can you help me ? ―Wright’s will survive but how can it thrive? ―How should Wright’s adapt to the new economy? ―How can Wright’s take on the challenges the UK print industry faces? ―How can Wright’s become part of multi-channel communication to individuals?

Presenter’ Name – Presenter’ Title Date

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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 76 / x

2009 IBM Corporation

Future Focus

2009 IBM Corporation

Future Focus futurefocus.blog.com

2009 IBM Corporation

Future Focus

2009 IBM Corporation