It is not the strongest of the species that survives, nor the

most intelligent that survives. It is the one that is the most

adaptable to change.
 SaaS vs. IaaS vs. PaaS
• Software as a Service (SaaS): Complete application systems
delivered over the Internet on some form of "on-demand"
billing system: Salesforce.com, Google Apps…

• Platform as a Service (PaaS): Development platforms and

middleware systems hosted by the vendor, allowing
developers to simply code and deploy without directly
interacting with underlying infrastructure: Google
AppEngine, Microsoft Azure, Force.com…

• Infrastructure as a Service (IaaS): Raw infrastructure, such as

servers and storage, is provided from the vendor premises
directly as an on-demand service: Amazon Web Services,
GoGrid…
 Imagine
Monday: 25 000 users

Tuesday: 50 000 users

Thursday: 250 000 users

 Imagine
Monday: 50-100 servers

Tuesday: 400 servers

Wednesday: 900 servers

Friday: 3400 servers

 Cloud Power
Animoto and Amazon EC2
Amazon EC2 easily scaled
up and down to handle
additional traffic
Number of EC2 Instances

Peak of 5000 instances

Launch of Facebook modification.

Steady state of ~40 instances

4/12/2008 4/13/2008 4/14/2008 4/15/2008 4/16/2008 4/17/2008 4/18/2008 4/19/2008 4/20/2008

 4 TB Data 100 Nodes 11 Million PDFs

100 instancesx 24 hoursx $0.10 / Hr= $240

The Internet and its attendant array of
consumer devices, networks and content
sources have fundamentally changed how
customers, employees and partners expect
to interact with the enterprise (Gartner CIO survey
2008/2009).
 The switch
Web 1.0 Web 2.0
Mainly narrow band

Traditional Google

Mainly Broadband
media search

Flickr
Alternativ
e media
netvibes
Publishing is complex and Value is created by
limited to few traditional aggregating
media and online content (portals) Wikipedia
merchants Easy and free
publication for all Value is generated by tools
2004 2005 allowing to publish easily

Broadband is (becoming) a right in Spain and

Finland
 Technology and social factors have converged over
the past few years to create a phenomenon called
social computing
TECHNOLOGY
 Cheap hardware and software reach the masses.
 Simple devices that anyone can operate.

SOCIAL CHANGE
 Consumers look for cost and time efficient technologies, ways to make their voices heard.
 Younger techno savvy generations pioneer the use of personal networks and viral communication.

Source: Forrester (2006) – Social Computing.

 Internet statistics
• 100 billion clicks per day

• 55 trillion links

• It uses 5% of the global electricity

• 2 million emails per second

• 1 million IM messages per second

• 8 terabytes per seconde traffic

• 65 billion phone calls per year

 Social Media statistics

• 20 hours of video uploaded • 700 million photos per day on

every minute onto YouTube Facebook
• Facebook 600k new members • Twitter 18 million new users
per day per year
• 900.000 blogs posts put up • 4 million tweets sent daily
every day • 1250 text messages per
• Second Life 250k virtual second
goods made daily
This is your new intranet
Identity? Facebook Connect!
It’s the social graph that
counts!
 The Perfect Storm has changed
Business Focus
Business has been hit successively with;

•The Credit Crunch

•Globalisation of Competition
•Commoditisation of key Activities
•Customisation requirements for Products
•Expectations for new levels of online Services

and then there is the Technology impacts around;

•The Ubiquitous Connectivity

•Social Collaboration and Networks
•The arrival of ‘The Cloud’
•etc …..

So how do we Harness the forces of Change?

 NEW ORGANISATIONAL
PARADIGMS
HOW BUSINESS TECHNOLOGY IS CHANGING
COMPANIES

TECHNOLOGY FUELED
CHANGE SOCIAL(ISM)?
THE FUTURE OF PRODUCT AND SERVICE
MARKETING & SALES COMMUNAL ASPECTS OF DIGITAL CULTURE
 So its not just Traditional IT;
there are new technologies too

People Web Services

Internal
External

Applications Computers
 Areas where traditional
EA models often struggle
• Don’t respond to change quickly enough

• Aren’t aligned with current business reality

• Lack of focus on driving consumption (or network

effects)

• Too centralized and isolated

• Expensive and resource-intensive

• Overengineered in the wrong places

• Excessively constraining.
 The architecture
“stack” is bigger now
 Capgemini’s Crown
model
Pressure for
Business Personalize
ChangeAn Individual’s use of the capabilities of Web 2.0

Differentiate
A Business Manager’s Customizable Solution

Organize
The use of SOA to achieve cohesive executions

Comply
The Enterprise Transactions and Data; ERP and Legacy Applications

Pressure for
IT Stability
 A Services Governance Model – with the
Business!
Business and Technology Architecture Governance Model

Personalise
An Individual’s capability to choose their ‘experience’
in how they wish to ‘Interact’ and ‘collaborate’

Differentiate Loose Coupled Business

A Manager’s capability to build locally unique Technology
‘differentiating’ capabilities both externally and
internally

Organise (SOA)
Common, shared core processes that support each SOA the coupling layer
differentiated offer above, and connect to
transactional IT applications below between both

Tight Coupled
Comply (ERP, etc.) Information Technology
Traditional Enterprise Applications with organised
procedures and data integrity, keeping compliant
business results
 There is an Interesting Inversion in this
…
Business and Technology Architecture Governance Model

Personalise
An Individual’s capability to choose their ‘experience’
in how they wish to ‘Interact’ and ‘collaborate’
Cost or Value?
Margin
Loose Coupled
Differentiate Business
A Manager’s capability to build locally unique Technology
‘differentiating’ capabilities both externally and
internally
$1 $3
Organise (SOA)
Common, shared core processes that support each
SOA the coupling
layer
$2 $2
differentiated offer above, and connect to
transactional IT applications below between both

Tight Coupled
Information
Comply (ERP, etc.) Technology
$3 $1
Traditional Enterprise Applications with organised
procedures
Revenue
and data integrity, keeping compliant business results
 What the heck are
Mashups?
An enterprise mashup is a custom
application rapidly assembled by (or
in close collaboration with) business
users in short timescales to meet
immediate business needs. Typically,
they combine data, functionality or
processes from multiple existing
internal or external IT assets to create
innovative business value.

An enterprise mashup platform is software infrastructure that provides tools

to rapidly assemble widgets in a visual environment thereby allowing easy
combination of data, functionality and processes, even by business users.
 Impacts on the business operating
model
E.g. Finance BPO, Payroll
Business Process Outsourcing
Their people, process, application,
(BPO) platform + Infrastructure

Software-as-a-Service E.g. Salesforce.com, Google Apps

Degree of control
Commoditisation

Their application, platform &

(SaaS) Infrastructure
Yourpeople, process and operation
Platform-as-a-Service E.g. Force.com, Gigaspaces &
Appistry
(PaaS) Their platform & Infrastructure
Your application, people & process
E.g. Amazon Web Services
Infrastructure-as-a-Service Their infrastructure, operations &
(IaaS) support
Your application, platform & processes
You own everything
Internal Software + Service Infrastructure, platform, app’s &
& traditional outsourcing process. Contract parts of activities to
partners

A balance of Control and Standardization

 Types of Multitenancy in the Cloud
Resell Multiple
Versions of IP
Multi-Tenant Reseller Model
Host In Cloud Create Own IP
Application IaaS / PaaS Version of App

App App App

Multi-Tenant Infrastructure Sustain Model

Host In Cloud
Application IaaS / PaaS
POC – 1 App
Latency Move over
App App Speed Groups
Response of Apps

Applications & Infrastructure Maintenance Portfolio Assessment & Migration

 Types of Multitenancy in the Cloud
Multi-Tenant Application instances Model
Host In Cloud Multiple OS
Application IaaS / PaaS VMIs of App

App App

Multiple
Multi-Tenant Software Usage Model Tenant versions
Multiple Tenants
Host In Cloud Of the single
SaaS Application
Application

App

Meta Model
conversion
PaaS API
Transparency : the provisioning boundary shifts
in the Cloud to a shared model increasing
security needs
Provision
level Device URL
Abstraction
SaaS

+
Increased
Shared Network Auth
Exposure
APaaS IP/MAC ID

App OS TCP/IP
PaaS Image

IaaS Increased Physical Domain

Physical Server ID
Boundaries
Monitoring becomes more
important
 What is your SLA

Using 5 services with a guaranteed

uptime of 99% will result in a
guaranteed uptime at your site of
95
%
The Required Future Business Model
 The Architecture over a PaaS delivering by SaaS

PDF
A
Degree of
Ready
Built
Examples

DOING BUSINESS IN A
NEW WAY
 Lego factory
SOLUTION
• Lego launched the Lego Factory (http://factory.lego.com) – an online model of
engagement for potential and existing Lego users, which allows users to
design, share and buy their own customized LEGO models
THE LEGO FACTORY WEBSITE

BACKGROUND
• Lego had traditionally been surrounded by a
highly active constellation of Lego User Groups -
fan communities comprising of both adult and
young members
• These groups maintained large online presence;
operated independently of the company;
exchanged and showed creative toy designs and
models amongst themselves
• Lego needed to move out of closed proprietary
mode and adapt a participative strategy for
customer interaction, which would utilize existing
user creativity in product design

BENEFITS - Designer users can

- Users interested in - Once the user has
• Through the Lego Factory, the company has taken then order the bricks
custom-designing their created a design, he can
a step further in the evolution of user needed to make their
own Lego models have upload the same to the
involvement, building strong brand relationship model, and also
to download and install online gallery
customize their own
• The initiative has created high levels of awareness the ‘Lego Digital - Lego approves all box for the model
and interest with the consumers Designer’ – designs before they are
- Other users on the site
• The initiative has put Lego a step ahead of - In the designer, the user added to the online
can buy uploaded
competition by moving out of closed proprietary can drag and drop to gallery, to filter out
designs in the gallery,
content mode and involving fresh ideas from create a virtual toy models for
and will receive both
consumers and community for New Product design appropriateness for all
the bricks for the model
Development age groups
as well as the building
instructions
Source: MRD Lab Analysis. Capgemini, “ECR Europe Conference: Future Consumer Presentation”, May 2008. coBrandit.com, “Lego Co-creation
Presentation by Mark Hansen: Video”, September 2006. Crowdsourcingdirectory.com, “Co-Creation in Lego Factory”, September 2007. European Centre
for the Experience Economy, “Lego’s participative army marches on”, April 2008.
 P&G connect + Develop
SOLUTION
• P&G launched the ‘Connect + Develop’ initiative, tapping into a global
innovation network comprising of a host of sources, right from independent
BACKGROUND innovators to virtual innovator networks such as InnoCentive
• Having a clear sense of consumers' needs, the company identifies promising
• As P&G grew to a $70 billion enterprise, the global ideas throughout this network and applies its own R&D, manufacturing,
innovation model it devised in the 1980s was marketing, and purchasing capabilities to them to enhance the rate of
innovation
yielding shrinking success rates P&G CONNECT + DEVELOP
• Their R&D productivity had leveled off, and
innovation success rate had stagnated at about
35%, whereas innovation costs were climbing P&G converts them into
P&G identifies ‘science problems and
faster than top-line top 10 customer sends into the network
needs
• While P&G owned a 7500+ strong R&D team, it
realized that viable product innovation was
increasingly being done externally at small and P&G’s Global Innovation
Network
midsize entrepreneurial companies

BENEFITS

• More than 35% of P&G’s new products have

elements that originated from outside P&G, up
from about 15% in 2000
• R&D productivity increased by nearly 60%
P&G’s 7500+ R&D team
• R&D investment as a percentage of sales is down work on solutions
from 4.8% in 2000 to 3.4% in 2006 suggested and with
• P&G’s average two-month cycle of generating internal communities
physical prototypes and testing them with
consumers has reduced to around 24 to 48 hours INNOVATIONS In Areas Of Packaging, Design, Marketing Models,
Research Methods, Engineering, Technology, Etc

Source: MRD Lab Analysis. Harvard Business School, Working Knowledge, “P&G's New Innovation Model”. Leveraging Ideas for Organizational
innovation Blog, Dr. Kevin Desouza, “ Connect & Develop Innovations the P&G Way”. P&G, “P&G Connect & Develop – Brochure”.
 Nike+, in collaboration with
Apple SOLUTION

HEAR YOU RUN…

Sensor in the shoe helps the runner hear
1 through the iPod, the details about pace, time,
BACKGROUND distance and calories burned
 Nike wanted to create an immediately
resonant experience for a broad target SEE YOU RUN…
market, from marathoners to fitness On docking and synchronizing the iPod, Nike+
joggers software loads the workout statistics to their 2
 Nike+ was born as a multi-channel, multi- website where the user will be able to track
his/her workout progress
sensory marriage of Nike and Apple
technologies
 Nike+ provides a robust platform of virtual CONNECT AND CHALLENGE
racing, progress tracking, motivational Run data can be used to track progress, set
goals and stories, global community 3 goals, motivate runners. win rewards and
comparison tools
BENEFITS challenge pals or all Nike+ users
CUSTOMER CENTRICITY
 Nike+ is a unique way to engage with and THROUGH
promote higher levels of brand identity Nike.com BETTER INTERACTION USING
amongst Nike users III WEB 2.0
 Delivers increased value to Nike users I Widgets for setting
through a unique way of collaborating challenges,
 Engages current and prospective Nike goals…
users with uninterrupted and targeted II
advertising Blog facility for
Nike+ users
 20% reduction in ad budgets as Nike is III
moving towards developing its own media III Link to purchase
network through such technological Nike+ kit and
endeavors II other Nike gear
 Total Sales worth $59 million and 1.8 I
million users
 August 2008; 800,000 people globally
simultaneously run a 10km race in 26
cities
 Share of Source:
the Sports
MRDShoe market:Nike+
Lab Analysis. 2006website.
– ‘Nike does business 3.0’ Phill Butler, 2007.
48% 2008 – 61% (12 month average)
Example

CLOUD COMPUTING
Undifferentiated Heavy Lifting
The 70/30 Switch
30% of time, energy, and dollars
on differentiated value creation

70% of time, energy, and dollars

on undifferentiated heavy lifting
 The Capacity Planning
Infrastructure
Cost $
Nightmare

Irate calls
Large from senior
Capital managment
Expenditur
e

Predicted
Demand

Traditional
Hardware

Actual
Demand

Cloud
Computing

time
 Rick Mans
rick.mans@capgemini.com
+31 6 512 10 144
http://twitter.com/rickmans
http://www.linkedin.com/in/rickmans