Where Can I Take You For A Trip

STKI Company Confidential for 6/14/2008
STKI clients only
Inviting you to my office and to my library.........
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This presentation is dangerous....
It will make people think
• Innovation
• Important books/authors change
Changeis the
process by which
• Cloud computing the future invades
Resilience
• Neo nomads
Neo‐nomads our lives
• METAweb Creativity
Alvin Toffler
• Virtual Worlds Innovation
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Zion, Israel +972 9 790 7000 www.stki.info
4
Resilience: Not only the

ability to recover from a
change or shock.
change is the
process by which
the future invades
our lives
Alvin Toffler
Resilience: Not
only the capacity of
people to cope with
change, stress or
All Rights Reserved 2008@STKI Moshav Bnei
5 catastrophe. All Rights Reserved 2008@STKI Moshav Bnei
6
@STKI Moshav Bnei Zion Israel

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RESILIENCE: The rate at which any system RESILIENCE: The rate at which any system
returns to a single steady state following a ITreturns
RESILIANCE:
to a single steady state following a
system perturbation. The ability to provide an acceptable
system perturbation.
level of service in the face of faults
and challenges to normal operation.
All Rights Reserved 2008@STKI Moshav Bnei All Rights Reserved 2008@STKI Moshav Bnei
Zion, Israel +972 9 790 7000 www.stki.info 7 Zion, Israel +972 9 790 7000 www.stki.info 8
The future is really only an

In the genes ? innovation problem
Stress: How do we find the future we prefer?
• Brain releases serotonin
• Kills off neurons if not metabolized
MAOA gene (with 5HTT) handles better stress:
• Produces molecules better at synthesizing serotonin
Your Text here Your Text here
Innovation is the ability to move from

the existing to the preferred
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9
All Rights Reserved @STKI Moshav Bnei Zion, Israel + +972 9 790 7000 www.stki.info
Innovation versus Creativity INNOVATION
Vision
Desired
Innovation Future
is the engine
that drives
transformation..
Present
Default Future
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Israel: Innovation Factory 1992‐20?? Global Innovation Index
Dr. Soumitra Dutta 6 SWITZERLAND
7 SINGAPORE
18 ISRAEL *
INSEAD Professor 19 SOUTH KOREA
8 CANADA
GLOBAL 9 NETHERLANDS 20 ICELAND
I N N O VAT I O N 10 HONG KONG 3 0 K U WA I T
INDEX 11 DENMARK
Your Text here
which places: 12 SWEDEN Your Text here
1 US 13 FINLAND
* Because of
2 GERMANY 14 UAE HUMAN CAPITAL
3 UK 15 BELGIUM
4 JAPAN 16 LUXEMBOURG
5 FRANCE 17 AUSTRALIA
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IMD WORLD COMPETITIVENESS YEARBOOK
2007 (2006) This is what I call innovation
(1) USA 1 (10) FINLAND 17 (29) THAILAND 33
(3) SINGAPORE 2 (17) TAIWAN 18 (33) SLOVAK REPUBLIC 34
(2) HONG KONG 3 (21) NEW ZEALAND 19 (35) HUNGARY 35
(20) UNITED KINGDOM 20 (36) GREECE 36
(9) LUXEMBOURG 4
(40) JORDAN 37
(5) DENMARK 5 (24) ISRAEL 21*
(8) SWITZERLAND 6
(19) ESTONIA 22
(4) ICELAND 7
(22) MALAYSIA 23
(15) NETHERLANDS 8
(16) JAPAN 24 Professor
(14) SWEDEN 9
(7) CANADA 10
(26) BELGIUM 25 Stéphane Garelli
(23) CHILE 26
(13) AUSTRIA 11
(27) INDIA 27 IMD Business School
(6) AUSTRALIA 12
(12) NORWAY 13
(30) FRANCE 28
(32) KOREA 29
Because of *
(11) IRELAND 14 HUMAN CAPITAL
(31) SPAIN 30
(18) CHINA MAINLAND 15
LITHUANIA 31
(25) GERMANY 16
(28) CZECH REPUBLIC 32
Innovation IS strategy: from BUILD to CREATE
Red Ocean Strategy Blue Ocean Strategy

Compete in existing market space. Create uncontested market space.
Beat the competition. Make the competition irrelevant.
The New Economic Age
Exploit existing demand. Create and capture new demand.
Make the value-cost trade-off. Break the value-cost trade-off.
Align the whole system of a firm’s Align the whole system of a firm’s
activities with its strategic choice of activities in pursuit of
differentiation or low cost. differentiation and low cost.

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Innovation:
Innovation IS strategy: from BUILD to CREATE
water drum that is easy to pull
Red Ocean Strategy Blue Ocean Strategy

Compete in existing market space. Create uncontested market space.
Beat the competition. Make the competition irrelevant.
Exploit existing demand. Create and capture new demand.
Make the value-cost trade-off. Break the value-cost trade-off.
Align the whole system of a firm’s Align the whole system of a firm’s
activities with its strategic choice of activities in pursuit of
differentiation or low cost. differentiation and low cost.
All Rights Reserved 2008@STKI Moshav Bnei Zion, Israel +972 9 790 7000 www.stki.info 19
Books of the 1980‐90s
-” No institution can possibly survive if it
Some background needs geniuses or supermen to manage it.
It must be organized in such a way as toYour Text here
Your Text here
be
able to get along under a leadership
composed of average human beings”-
All Rights Reserved 2008@STKI Moshav Bnei Zion, Israel +972 9 790 7000 www.stki.info 21 All Rights Reserved 2008@STKI Moshav Bnei Zion, Israel +972 9 790 7000 www.stki.info 22
Books of the 1980‐90s BOOK OF THE 1990’s
• Introduced the business world
to rethinking operations.
• Demonstrated how process
redesign can yield
breakthroughs in performance
breakthroughs in performance Plus 10,000 rebuttals
• Put the word "reengineering" And 20+ books
into the English language.
23 All Rights Reserved 2008@STKI Moshav Bnei Zion, Israel +972 9 790 7000 www.stki.info

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BOOK OF 2003
copied: “The Myth of Real Time Information”, HBR 1966
BOOK OF THE 1990’s
Plus 2000+ rebuttals

And 5 books
BOOK OF 2003
copied: “The Myth of Real Time Information”, HBR 1966
Book of 2005
• Thomas Friedman
– 3 billion people (consumers & producers)
entered the world economies
• Eastern Europe (ie: Rumania)
• Asia (ie: China, India)
– Now we have a “new” economy:
• Interconnected (fiber everywhere)
• Standardized (Open Source)
• Supply Chains Management
• Out‐sourcing, In‐sourcing, Off‐shoring
• Info sourcing
Book of 2005 My own “favorite”

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Three Laws of Computing:
What now ??? growth rate of network & computing speed
1,000,000,000,000
• Moore’s Law. 100,000,000,000
10,000,000,000
– Transistors on a single 1,000,000,000
Moore/
chip doubles ~ every 100,000,000 Transistors
18–24 months. 10,000,000
1,000,000
• Gilder
Gilder’ss Law.
Law 100,000
10,000 Metcalf/
– Aggregate bandwidth triples Network
1,000 Gilder/
~ every year. Bandwidth
Nodes
100
• Metcalfe’s Law. 10
1
– The value of a network may 1970 1975 1980 1985 1990 1995 2000 2005 2010
grow exponentially with the 2,300 6,000 29,000 275,000 1.2 mil 5.5 mil 42 mil 252 mil 1.344 bil
number of participants. 50 50 56 1,544 45,000 145,000 10 mil 2.43 bil 200.49 bil
4 111 200 10,000 300,000 1 mil 140 mil 3.5 bil 300 bil
Source: Cambridge Energy Resource Associates

Computing and Communication Technologies
Disruptive technologies Evolution: 1960‐2010!
• Introduction of the IBM Mainframe ( 1960’s)
• Introduction of the Apple II (1978), IBM PC (1981), TCP/IP (1980’s), C/S Cloud
Computing
Architectures (1980’s), SUN workstations (1980’s), Internet (1990’s)
• Introduction of XML‐based Composite Applications (2006), Service Oriented
Architectures (2005), Virtualized Infrastructures (2004),Web 2/internet 2 (2007),
Cloud Computing (2008), METAweb (2008)
Centralised Decentralised
Control
Cloud Computing What is Cloud Computing?
1. data and services reside in massively scalable data
centers
2. accessed from any connected devices over the
internet.
A. IBM Introduces 'Blue Cloud' Computing CIO Today ‐ Nov 15 2007

B. IBM, EU Launch RESERVOIR Research Initiative for Cloud Computing
IT News Online ‐ Feb 7 2008
C. Google and Salesforce.com in cloud computing deal
Siliconrepublic.com ‐ Apr 14 2008 Web 2.0-
enabled PCs, Businesses,
4+ billion phones by 2010
TVs, etc. from startups
All Rights Reserved 2008@STKI Moshav Bnei Zion, Israel +972 9 790 7000 www.stki.info 35 All Rights Reserved 2008@STKI Moshav Bnei Zion, Israel +972 9 790 7000 www.stki.info to enterprises

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Wisdom of Clouds : "cloud computing" Cloud Computing Architecture
What's revolutionary is not cloud computing itself Apache
but how the pieces have come together to
make doing business in the cloud seem increasingly
like an economic inevitability
Virtual Virtual Virtual Virtual
Machine Machine Machine Machine
Cl d Your Text here
Cloud computing ti is
i a simple
i l concept:
t Your Text here Monitoring Agent
• Software and services are delivered over the Web and Open Source Linux with Xen
through a browser.
Data Center – 64 bit X86 Virtualized Infrastructure based on
• No servers or client software to install. Open Source Linux & Xen
Monitoring Provisioning Baremetal & Xen VM
• Available anytime, anywhere, from any device
connecting to the Internet Monitoring DBMS
Provisioning Application Server
Manager
Management Stack
All Rights Reserved 2008@STKI Moshav Bnei Zion, Israel +972 9 790 7000 www.stki.info 37 All Rights Reserved 2008@STKI Moshav Bnei Zion, Israel +972 9
790 7000 www.stki.info
Defining the new world

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ABILITIES in an outsourced/automated world OLDENBURG: The “third” place
• infrastructure makes it possible Time is primarily spent in :
for people to work where they • First (home) place: isolated
want, when they want, how they • Second (work) place: isolated
want • Third places : neutral public space to
connect and establish bonds.
• SIX abilities needed: Big Changes now:
1. Design – Beauty and uniqueness Your Text here
• Between 1990-2006: people went to
Your Text here
2. Story – More than mere facts anonymous locations such as malls

3. Symphony – Seeing the big picture • Starting in 2007: good third place makes
admission free or cheap (the price of a
4. Empathy – Understanding others cup of coffee), offers comforts, is within
5. Play ‐ Enjoyment walking distance and draws a group of
regulars.
6. Meaning – Fulfillment
Neo‐nomads : new Bedouins flourishing in
Nomad Worker (2008) vs. Paris Existentialist (1950s)
the coffeehouses of central Israel
• A new breed of worker, fueled by Tel-Aviv geek with earphones and
laptop in Arcaffe (2008)
caffeine and using the tools of • simultaneously cramming for
modern technology exams, napping, instant-
messaging, researching, reading
• They are typically armed with and discussing, listening to music,
laptops and cell phones, paying for
laptops and cell phones paying for browsing and e mailing
e-mailing
their office space and Internet Paris existentialist watching the
world go by at the café Les Deux
access by buying coffee and muffins Magots (1950s)
• This neo‐nomads see themselves • puffing a Gitane, napping and
jotting down notes about being
changing the nature of the and nothingness
workplace, if not the world at large.
Nomad worker: Nomad worker:
Maslow’s hierarchy of needs Maslow’s hierarchy of needs
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and the effect on IT…….
The Peopleware Ecosystem
Identity Management
WCM
Composite App. Wireless Security
Framework
SSO Application Servers
Expertise Location EAI

& Mgmt.
Collaboration Web Services

Peopleware
BAM BPM
Directory E-Forms/Workflow
E-Learning
Search
Development Tools Business Intelligence
All Rights Reserved 2008@STKI Moshav Bnei Zion, Israel +972 9 790 7000 www.stki.info DM Knowledge Mgmt.

An example:
2007: the year of my discovery my romantic attachment to my “GPS”
• “SACRED ORDER OF THE EXTERNAL MIND”
I could outsource mental tasks
Life is a math problem and I have a calculator
GPS
• MAGIC OF THE INFORMATION AGE
Not that it allows us to know more • EXTERNALIZE GEOGRAPHIC INFORMATION FROM MY
It really allows us to know less BRAIN
• OUTSOURCE MAP READING SKILLS
• ALLOW CALCULATION OF DRIVE TIME
Pinpoints a supermarket in MEXICO ? Pinpoints a supermarket in MEXICO ?
my son is calling from there my son is calling from there

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Pinpoints a supermarket in MEXICO ? I have outsourced part of my life

my son is calling from there to external cognitive servants:
• No longer need a • Musical taste:
memory – ITunes
– Google
– Yahoo • Books and others:
– Wikipedia – Amazon
• Personal Information • Social Capital
– Smartphone tells me – LinkedIn
about birthdays, phones,
addresses – Xing
– Facebook
And with access to these tools I can answer
“A Pattern Language”, Christopher Alexander ANY question in less then 30 minutes
Each pattern describes a problem that

occurs over and over again in our
environment
Then describes the core of the solution
to that problem, in such a way that
you can use this solution a million Your Text here
Your Text here
times over
Without ever doing it the
same way twice
A powerful global conversation has begun Companies wake up !!!!!!!
• Through the Internet, people are discovering and Customers are:
inventing new ways to share relevant knowledge
• writing about products on blogs
with blinding speed. JOSH BERNOFF CHARLENE LI
• recutting commercials on YouTube

• Networked markets are beginning to self‐organize
faster than the companies that have traditionally • defining companies on Wikipedia
served them.
served them. • ganging
g g g up p in social networking
g sites
• As a direct result and thanks to the web, markets like Facebook
are becoming better informed, smarter, and more
demanding of qualities missing from most business
organizations.
• markets are getting smarter and getting smarter MOST COMPANIES SEE IT AS A THREAT
faster than most companies

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Social Technographics™
Josh Bernoff, co‐author of Groundswell METAweb
METAweb phenomenon
(fi-nom-uh-non)
noun
-noun
1. a rare or significant fact or event in the
web that happened in 2007
2. something that is impressive or
extraordinary that happened in 2007
METAweb
METAweb pushes need for “new CIO”
Innovation
METAweb
Time
METAweb definition: METAweb site has 7 basics:
leverage customer-self service and 1. Services, not packaged software, with cost-
effective scalability
algorithmic data management to 2. Control over unique, hard-to-recreate data
sources that get richer as more people use
reach out to the entire web, to the them
3 Trusting
3. users as co-developers
co developers
edges and not just the center,
to the Your Text here
4. Harnessing collective intelligence
Your Text here
long tail and not just the head 5. Leveraging the long tail through customer self-
service
6. Software above the level of a single device
7. Lightweight user interfaces, development
models, AND business models

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METAweb: user
Banks YOUtube Business Average person:
Insurance Slideshare Simulations 10‐15 intimate
Travel Blogs Training 150 social
“Amazon” Newspapers Second Life 500‐1500 weak
“e‐bay” WIKIPEDIA Sales links
Transaction Sites Multimedia Sites Game Sites Social Sites
Websites can
no longer be
islands
Users want
bridges
elsewhere 67 All Rights Reserved 2008@STKI Moshav Bnei Zion, Israel +972 9 790 7000 www.stki.info 68
Google versus ??? http://labs.google.com/
Humanity emits the data (words, pictures, clicks,
and searches are the raw material)
Handful of cloud-wielding Internet giants like
Google, Yahoo! or Amazon.com transform the info
into insights, services, and, ultimately, revenue.
All Rights Reserved 2008@STKI Moshav Bnei Zion, Israel +972 9 790 7000 www.stki.info 69 All Rights Reserved 2008@STKI Moshav Bnei Zion, Israel +972 9 790 7000 www.stki.info
Why does it bother me ? Cloud Computing
A. IBM Introduces 'Blue Cloud' Computing CIO Today ‐ Nov 15 2007

B. IBM, EU Launch RESERVOIR Research Initiative for Cloud Computing
IT News Online ‐ Feb 7 2008
C. Google and Salesforce.com in cloud computing deal
Siliconrepublic.com ‐ Apr 14 2008

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Google ad Google 10 years of innovation
Core Search Ads Monetization Communications Collaboration ?
1995 1998 2000 2003 2004 2005 2007 ?
Internet 2 is not Web 2 WEB 2 are WEB Technologies
Leveraging the Web for
Internet2: 2.4 Gbps plumbing Measureable Business Results
• Gone are the days when
merely having an online
presence was a
business breakthrough.
• Today's companies
MUST leverage the
power of the Web if
they're to gain and
maintain a competitive
advantage.
77 All Rights Reserved 2008@STKI Moshav Bnei Zion, Israel +972 9 790 7000 www.stki.info 78

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In 2010: all new WEB experience
Soon each website will become a 3 dimensional room
that can be experienced alone or with friends
Second Life is the
biggest virtual world
• 40,000 concurrency (at any time) Million Square Meters of
• 450,000 active users (last 7 days) Second Life Land
• 1.4 m active users (last 2 months)
• 10.6 m total accounts
• 2 m assets created per day
• 35 TB of user‐created data
• 800,000 unique items sold or traded
per month
• 500 events per day
• 15 m concurrent scripts
Total User
• 10 Gbps peak bandwidth Hours (millions)
Source: Linden Lab
All Rights Reserved 2008@STKI Moshav Bnei Zion, Israel +972 9 790 7000 www.stki.info Source: http://secondlife.com/whatis/economy-graphs

82
Currency: Linden$ Economy
• LindeX exchange operated by US$ Spent by Users

Linden Lab (in Millions)
• Reuters
– Buy: USD $.30 transaction fee
• Banking and credit
– Sell: 3.5% transaction fee
• Stock markets
• Monetary policy
– SL Capital Exchange (US, 20 listings)
– World Stock Exchange (Australia 15 listings)
World Stock Exchange (Australia, 15 listings)
– VSTEX (Italy, 7 listings)
270 L$ =$1 USD
– Ancapex (US, 3 listings)
US $ Exchanged on
Lindex (in Millions)

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STKI clients only
Advisory/Analyst firms
Business
IBM
Preen Motorati Preen Principal:

Cisco SpokesAvatar: Aimee Weber
We hope that during 2009 STKI will
b presentt there
be th and
d will
ill h
have it’
it’s caLLie
LLi cLine
Li
first SUMMIT
H&R Block Island
Dr. Dobbs Life 2.0 Conference
KAWG&F (Baltimore MD CPA firm),

CPA Island BDO Stoy Accenture Best Buy’s H&R Block 86
Hayward Island Geek Squad
Academia, museums, non‐profits Government, politics and collective action
Science Friday US Congress – hot topic

Princeton Art Gallery
US Congress legislation
International Computer History American Cancer

87 European Campaign HQs Davos protest
Spaceflight Museum Museum Society Relay for
Community
Life All Rights Reserved @STKI Moshav Bnei Zion, Israel + +972 9 790 7000 www.stki.info
METAweb REVOLUTION
The real, long-term change is just beginning to be felt,
and anyone thinking about our economic future should
consider this:
• access to information is a democratizing force
• makes it inexpensive and easy to collaborate and share
information
information.
• even the smallest companies can now have as big a
presence online as a multinational corporation
The revolution may have started in a garage in California
but it has already crossed every border
moving as freely
around the globe as a cloud
All Rights Reserved 2008@STKI Moshav Bnei Zion, Israel +972 9 790 7000 www.stki.info 89 All Rights Reserved 2008@STKI Moshav Bnei Zion, Israel +972 9 790 7000 www.stki.info

+972 (0) 9 790 7000 15

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STKI Company Confidential for 6/14/2008

STKI clients only

Resilience: Not only the

@STKI Moshav Bnei Zion Israel

The future is really only an

Innovation is the ability to move from

Innovation versus Creativity INNOVATION

@STKI Moshav Bnei Zion Israel

Red Ocean Strategy Blue Ocean Strategy

Beat the competition. Make the competition irrelevant.

Make the value-cost trade-off. Break the value-cost trade-off.

@STKI Moshav Bnei Zion Israel

Red Ocean Strategy Blue Ocean Strategy

Beat the competition. Make the competition irrelevant.

Exploit existing demand. Create and capture new demand.

Make the value-cost trade-off. Break the value-cost trade-off.

able to get along under a leadership

composed of average human beings”-

• Put the word "reengineering" And 20+ books

@STKI Moshav Bnei Zion Israel

Plus 2000+ rebuttals

All Rights Reserved @STKI Moshav Bnei Zion, Israel + +972 9 790 7000 www.stki.info

@STKI Moshav Bnei Zion Israel

number of participants. 50 50 56 1,544 45,000 145,000 10 mil 2.43 bil 200.49 bil

Source: Cambridge Energy Resource Associates

A. IBM Introduces 'Blue Cloud' Computing CIO Today ‐ Nov 15 2007

@STKI Moshav Bnei Zion Israel

@STKI Moshav Bnei Zion Israel

2. Story – More than mere facts anonymous locations such as malls

@STKI Moshav Bnei Zion Israel

Expertise Location EAI

Collaboration Web Services

All Rights Reserved 2008@STKI Moshav Bnei Zion, Israel +972 9 790 7000 www.stki.info DM Knowledge Mgmt.

@STKI Moshav Bnei Zion Israel

Pinpoints a supermarket in MEXICO ? I have outsourced part of my life

Each pattern describes a problem that

• recutting commercials on YouTube

@STKI Moshav Bnei Zion Israel

@STKI Moshav Bnei Zion Israel

Transaction Sites Multimedia Sites Game Sites Social Sites

A. IBM Introduces 'Blue Cloud' Computing CIO Today ‐ Nov 15 2007

@STKI Moshav Bnei Zion Israel

1995 1998 2000 2003 2004 2005 2007 ?

@STKI Moshav Bnei Zion Israel

Source: Linden Lab

All Rights Reserved 2008@STKI Moshav Bnei Zion, Israel +972 9 790 7000 www.stki.info Source: http://secondlife.com/whatis/economy-graphs

• LindeX exchange operated by US$ Spent by Users

@STKI Moshav Bnei Zion Israel

Preen Motorati Preen Principal:

Dr. Dobbs Life 2.0 Conference

KAWG&F (Baltimore MD CPA firm),

Science Friday US Congress – hot topic

International Computer History American Cancer

@STKI Moshav Bnei Zion Israel

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Each pattern describes a problem that