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© 2010 IBM Corporation
ee--business Infrastructurebusiness Infrastructure““Technology for BusinessTechnology for Business””
Kevin Malone Software Technical Strategist
MSc (Computer Science)Fellow of The British Computer Society
Fellow of The Institute of Engineering and Technology
IBM Software UK
26th February 2010
© 2010 IBM Corporation
Geographies
AsiaPacific
Americas
Europe,Middle East,
Africa
IBM GlobalServices
Systems and TechnologyGroup
Software Group
Research
Industry
CommunicationsDistributionFinancial ServicesIndustrialPublic. . . . .
Global Financing
400,000+ EMPLOYEES
170+ COUNTRIES
$100B+ ANNUAL REVENUE
© 2010 IBM Corporation
1971
1974
1920
1873
1829
Build-out of Interstate highways IMF, World Bank
Separation of savings, investment banks SEC
Current period of Institutional Adjustment
Historical Cycles
Source: “Technological Revolutions and Financial Capital, Carlota Perez, 2002
1908
1875
1829
1771
Steam and Railways
Steel, Electricityand Heavy Engineering
Oil, Automobilesand Mass Production
Information and Telecommunications
The Industrial Revolution
Depression1893
Crash1929
Dot.comCollapse
Panic1847
Panic1797
INNOVATION DEPLOYMENTInterruption Frenzy Synergy Maturity
Formation of Mfg. industryRepeal of Corn Laws opening trade
Joint stock companies Industry exploits economies of scale
© 2010 IBM Corporation
Today - a globally integrated enterprise… business without borders
21stCentury
The multinational era -- replicating
20thCentury
The international era -- exporting
20thCentury
The Evolution of the Corporation
© 2010 IBM Corporation
In 2001, there were 60 million transistors for every human on the planet ...
… by 2010 there will be 1 billion transistors per human…
… each costing 1/10 millionth of a cent.
© 2010 IBM Corporation
In 2005 there were 1.3 billion RFID tags in circulation…
… by 2010 there will be 33 billion.
© 2010 IBM Corporation
Worldwide mobile telephone subscriptions reached 3.3 billion in 2007 and expected to reach 4 billion by the end of 2008
© 2010 IBM Corporation
One billion camera phones were sold in 2007, up from 450 million in 2006 …
3G devices growing 30% annually.
© 2010 IBM Corporation
An estimated 2 billion people will be on the Web by 2011 ...
… and a trillion connected objects – cars, appliances, cameras, roadways, pipelines – comprising the "Internet of Things."
© 2010 IBM Corporation
U.S. CPG companies and retailers lose $40 billion annually due to inefficient supply chains.
© 2010 IBM Corporation
In North America, up to 22 percent of total port volume is empty containers.
The Port of Jersey has 100,000 empty containers sitting in storage – worth nearly $200 million.
© 2010 IBM Corporation
In the United States alone, 2.2 million dispensing errors are made a year because of handwritten prescriptions.
© 2010 IBM Corporation
The U.S. healthcare system loses more than $100 billion a year to fraud.
© 2010 IBM Corporation
In a small business district in Los Angeles, driving around for parking in one year generated the equivalent of 38 trips around the world, burned 47,000 gallons of gas, emitted 730 tons of carbon dioxide.
Congested roadways cost $78 billion annually in the form of 4.2 billion lost hours and 2.9 billion gallons of wasted gas.
© 2010 IBM Corporation
In the U.S., a typical carrot has traveled 1,600 miles, a potato 1,200 miles, a beef roast 600 miles…
…grocers and consumers throw away $48 billion worth of food every year.
© 2010 IBM Corporation
In six years the power consumption of a server has risen from 8 watts to more than 100 watts per $1,000 worth of technology.
On average, for every 100 units of energy piped into a data center, only 3 units are used for actual computing. More than half goes to cooling the servers.
In distributed computing environments 85% of computing capacity sits idle.
© 2010 IBM Corporation
People Processes Information
ExistingApplications & Data
Partners NewApplications
Connectivity Services
What are Businesses trying to Achieve ?
© 2010 IBM Corporation
Phases of e-business Adoption
"An on demand business is an enterprise whose business processes– integrated end-to-end across the company and with key partners, suppliers and customers–can respond with speed to any customer demand, market opportunity or external threat."
"an evolutionary journey"
Integrate InternallyAccess Publish Transact Integrate Externally Adapt Dynamically
ACCESSACCESS INTEGRATIONINTEGRATION ON DEMANDON DEMAND
AA BB CC AA BB CCAA BB CC
Processes Bounded by Functions
Processes Extend Beyond Functions
Business Led Processes Extend to Value Nets
Service Oriented Architecture
© 2010 IBM Corporation
Horizontal Integration is the New Challenge
Bridging the gap between business transformation and IT Bridging the gap between business transformation and IT
DatabasesW orld W ideW eb
W ebServer
Transactions
SupplierNetw orks
InternalSystem s
Custom erConnections
People Process Information
© 2010 IBM Corporation
Case Study: Procure to Pay Process
Division
Where We Are Heading
Customer
Shared Service
Supplier
Outsourced
© 2010 IBM Corporation
E01-EDI
Data Warehouse(Interfaces to and from the
Data Warehouse are notdisplayed on this diagram)
G02 - GeneralLedger
A05 - AP
S01 - SalesCorrections
I01 POReceiving
I03 Return toVendor
I06 WarehouseManagement
MaininframePC/NT apps Unix apps3rd Party Interface
S06 - Credit App
P15 EES EmployeeChange Notice
OTHER APPS - PC
AP - Collections/CreditTM - Credit Card DB
ACCTS REC APPS - PC
990COR
Bad Debt
Benefical FeesBeneficial Reconcil
JEAXF
JEBFA
JEBKAJEDVA
JESOA
JEVSA
JEVSFNSF
TeleCredit Fees
INVENTORY CONTROL APPS - PC
Code Alarm
Debit Receivings
Devo SalesDisplay Inventory
In Home
Junkouts
Merchandise WithdrawlPromo Credits
RTV Accrual
Shrink
AP Research - Inv CntrlAP Research-Addl Rpts
Book to Perpetual Inventory
Close Out Reporting
Computer Intelligence DataCount Corrections
Cross Ref for VCB Dnlds
Damage Write Off
Debit ReceivingsDFI Vendor Database
Display Inventory Reconcil
Display Inventory Reporting
INVENTORY CONTROL APPS - PC
DPI/CPI
IC Batching
Inventory Adj/Count CorrectInventory Control Reports
Inventory Levels
Inventory Roll
Merchandise WithdrawlOpen Receivings
PI Count Results
PI Time Results from Inv
Price Protection
Sales Flash Reporting
Shrink Reporting
SKU Gross Margin
SKU Shrink Level DetailUSM
VCB Downloads
Journal Entry Tool Kit
Scorecard - HR
L02-ResourceScheduling(Campbell)
P09 - P17Cyborg
M02 - Millennium
M03 - Millennuim 3.0
Banks - ACH and Pos toPay
Cobra
B01 - StockStatus
S03-Polling
P14 On-line NewHire Entry
CTS
Plan Administrators(401K, PCS, Life,
Unicare, SolomonSmith Barney)
D01 Post LoadBilling
I04 HomeDeliveries
I02 -Transfers
Arthur Planning
I07 PurchaseOrder
I12 EntertainmentSoftware
I05Inventory Info
E13E3 Interface
S04 - Sales Posting
V01-Price ManagementSystem
I10 Cycle PhysicalInventory
I55 SKUInformation
K02Customer Repair
TrackingI35 Early Warning
System
B02 MerchandiseAnalysis
I13- AutoReplenishment
U18 - CTO
Intercept
I09 Cycle Counts
E02-EmployeePurchase
Texlon 3.5
ACH
Stock Options
I17 Customer PerceivedIn-Stock
U16-Texlon
SiteSeer
C02 - CapitalProjects
F06 - FixedAssets
US Bank ReconFile
Star Repair
EDICoordinator
Mesa Data
NEW Soundscan
NPD GroupAIG Warranty Guard
Resumix
Optika
Store BudgetReporting
P16 - Tally Sheet
Cash Receipts/Credit
S05 - HouseCharges
Ad Expense
L01-PromoAnalysis
V02-PriceMarketingSupport
BMP - Busperformance Mngt
StoreScorecard
I11 PriceTesting
Valley Media
P09Bonus/HR
I15 Hand ScanApps
Roadshow
POS
S08 - VertexSalesTax
A04 - CustRefund Chks
Equifax
ICMS Credit
CellularRollover
S09 - DigitalSatelliteSystem
NPD,SoundScan
Sterling VANMailbox (Value)
I18SKU Rep
X92-X96Host to AS400
Communication
S02 -Layaways
Washington,RGIS,
Ntl Bus Systems
V04-SignSystem
I14 Count CorrectionsNARM
P01-EmployeeMasterfile
I06 - CustomerOrder
FrickCo
UAR - Universal AccountReconcilliation
DepositoryBanks
S07 - CellPhones
S11 - ISPTracking
AAS
Fringe PO
Cash Over/Short
L60 MDFCoop
SKU SelectionTool
SKUPerformance
SupplierCompliance
1
I35 - CEI
ASIS
Misc Accounting/Finance Apps - PC/NTCOBA (Corp office Budget Assistant)
PCBS(Profit Center Budget System)Merchandising Budget
AIMS
Merch Mngr ApprovalBatch ForcastingAd Measurement
AIMS Admin
AIMSReportingAd
Launcher
V03- MktReactions
SpecSource
CTO2.Bestbuy.com
RebateTransfer
SignSystem
CopyWriter'sWorkspace
ELTPowerSuite
StoreMonitor
AIS Calendar
Stores & Mrkts
Due Dates
Smart Plus
InsertionsOrders
BudgetAnalysis Tool
Print CostingInvoice App
AIS Reports
BroadcastFilter
Smart PlusLauncher
GeneralMaintenance
Printer PO
PrinterMaintenance
VendorMaintenance
Vendor Setup
Connect 3
Connect 3Reports
Connect 3PDF Transfe
Spec SourceSKU Tracking
S20-SalesPolling
Prodigy
PSP
In-HomeRepair
WarrantyBillingSystem
Process Servers(Imaging)
Prepared by Michelle Mills
IT Realities
© 2010 IBM Corporation
"just good enough" infrastructure isn't
© 2010 IBM Corporation
Quality of Service Requirements
Security $1K $2M $20M+Risk of Breach
SIMPLE INTERMEDIATE ADVANCED
Scalability 200 2,400 18MTransactions volume/Day
Availability $1K $200K $20MCost of outage/Human resources
Flexibility 5% 10% 75%% of data Required
Interoperability 2 4-8 8-16Number of participants applications types
© 2010 IBM Corporation
Open Standards are not a Luxury
WebServices
OpenSource
HTML
J2EEXML
Standards Adoption
Industry Participation
Standards Development Open Internet
Open Platform
Web Services Leadership
Windows Linux AIX Solaris HP-UX OS/400 zOS
Universal Tool Platform
Enable integration across value-net / Increase deployment speed / Reduce costs
Web 2.0
© 2010 IBM Corporation
The Virtual Workplace
Source: Nemertes Research, Inc.
58% of IT Executives consider their company to be a virtual workplace
90% of employees work in locations other than headquarters
Between 60% and 70% of employees work in different locations from their managers
The number of virtual workers has increased by 800% over the past five years
People
© 2010 IBM Corporation
Today, many people work like this...
People
© 2010 IBM Corporation
People could work like this …personalised and integrated with the business role
People
© 2010 IBM Corporation
Virtualization of Integration
Portal
People Processes Information
““Desktop of the FutureDesktop of the Future””
People
MashUp
© 2010 IBM Corporation
What Is Web 2.0
Source:Dion Hinchcliffe’s
Web 2.0 Blog
People
© 2010 IBM Corporation
Connecting PeoplePeople optimized
Dynamic (Web 2.0)
Processes and transactionsProcess
optimized
Integrated
Web 2.0 Technologies – the face of SOA
Information optimized
Publish Information
Point
© 2010 IBM Corporation
Evolution of integration technologies…
Message Queuing TraditionalMessage Brokering
EnterpriseService Brokering
Application Application
Degree of Flexibility and Re-use
Direct Connectivity
Application
Lin
es o
f co
de
Application Services
Integration logic
IntegrationLogic
Middleware
Middleware
Service Oriented Middleware
Integration logic
Process
© 2010 IBM Corporation
The Digital UniverseInformation Created, Captured and Replicated
2006161 Exabytes
2010988 Exabytes
6-Fold Growth in Four Years
About 25% of the digital universe is original (pictures recorded, keystrokes in an e-mail, phone calls etc.), while 75% is replicated e-mails forwarded, backed up transaction records, etc.)
Digital Content: In 2006, amount created was about 3 Million times more than all the information that is in all the books ever written
Source: IDC, 2007
Information
© 2010 IBM Corporation
How We Deal With All This Content
Source: IDC, 2007; IBM
Information workers spend (hours per week):
14.5 hours reading and answering e-mail
13.3 hours creating documents
9.6 hours searching for information
9.5 hours analyzing information
An organization employing 1,000 knowledge workersloses £2.9 million annually just in time wasted having to reformat information as they move between applications
Not finding the information costs the same organizationan additional £2.7 million per year
Information
© 2010 IBM Corporation
There is an explosion in information and real world events
Capital market data volumes grew 1,750% 2003-06
WW Information volumedoubling every two years
1.3B RFID tags in 200530B RFID tags by 2010
3.3B mobile phone users in 2007
2 Billion internet users by 2011
Government and Military
Information
© 2010 IBM Corporation
Creating value with informationCreating value with information
Managing transactions
Managing content
Gaining insight
Information as a service
ValueValue
TimeTime
Information On Demand
Information on demand
Information
© 2010 IBM Corporation
Heterogeneous Applications & Information
InsightInsightIn-line, Real-timeIn-line, Real-timeDashboardsDashboardsTools & ApplicationsTools & Applications
Information as a ServiceInformation as a Service
Data & ContentData & Content
BusinessContext
BusinessContext
InsightfulRelationships
InsightfulRelationships
Standards-based
Metadata Management
Information as a ServiceMoving from a Project-based to Flexible Architecture
Master Data, Entity Analytics, Decision Portals, Executive Dashboards,Industry Data Models
Extracted or Real-time
Information
© 2010 IBM Corporation
People Processes Information
ExistingApplications & Data
Partners NewApplications
Service Oriented Architecture
What are Businesses trying to Achieve ?
Partners
© 2010 IBM Corporation
ibm.com / software
© 2010 IBM Corporation
The New IT Infrastructure
DatabasesWorld WideWeb
WebServer
Transactions
SupplierNetworks
InternalSystems
CustomerConnections
End-to-end integration of transactionsLeverage existing applications and dataApplications act as processesWorkload optimized to any serverScalable, available, reliable, secure and manageable
IBM Software
®
Thank You
Kevin_Malone @ uk.ibm.com
Build ON demand businessinfrastructures with IBM Software
© 2004 IBM CorporationVisit ibm.com / software