Put Your Business in Motion

in the New Era of Smart

David Millen VP, Business Process & Decision Management

Dianne Del Rosso Global Director of Marketing

for Industry, Mobile

and Smarter Process

Jeffrey S. Hammond VP, Principal Analyst Serving Application Development &

Delivery, Forrester

Take Advantage of New and Enhanced WebSphere

Capabilities

2 2

Entire contents © 2010 Forrester Research, Inc. All rights reserved.

Source: Flickr (http://www.flickr.com/photos/sashawolff/3793206523/sizes/l/)

Over 700M smart phones sold worldwide in 2012

1/13 Samsung Galaxy SIII: 96 million, iPhone 5: 54 million

5/13 Over 900 million total Android devices (IO)

9/10 Almost 700 million iOS Devices

The Mobile Shift is upon us…

3

Two-thirds of US online adults own two or more connected devices.

(Number of connected devices owned [desktop, laptop, netbook, tablet, smartphone])

The No. 1 device is

the laptop, which is

owned by 66% of

US online adults.

2.0

1.6

2.1

2.3

2.2

1.9

1.8

Average

0 1 2 3+

Nearly 25% of adults are online with three or more devices

Base: 57,499 US online adults (18+); Source: North American Technographics® Online Benchmark Survey (Part 1), Q2 2012 (US, Canada)

4

2.6 Average number of operating

systems developers deploy to

4.1 Average number of form

factors developers support

4.6 Average number of browsers

web developers test with

Base: 2,015 software developers; Source: Forrsights Developer Survey, Q1 2013

. . . and the result?

5

The best way to develop mobile apps is

not to develop mobile apps…

Moyan Brenn www.flickr.com/aigle_dore

6

Mobile apps are part of modern applications

7

How do you build a modern application?

Seven traits of modern applications

1. Omnichannel clients

2. Deployed on elastic infrastructure

3. Aggregate discrete services

4. Use managed APIs

5. Integrate open source software

6. Employ continuous delivery

7. Gather fast feedback

8

A modern engagement architecture

9

App architectures must evolve to exploit scale out

MVC

Data Source Filter (n) Data Sink

Pipes and Filters

Pipes (n +1)

View

Controller Model

Broker

Message

Bus

Service

Service

Service

Bridge

Clients

(Web &

Mobile)

Gateway

10

Systems of

Engagement

Modern applications and the SDLC

Time to Safety

Time to Certainty

Time to Feedback

Systems of

Operation

Systems of

Record

Lifecycle Focus

11

An app delivery process for speed

12

Customer context will drive advances

13

Modern applications combine context

Device Context

Historical Context

Extended Context

14

- 2 days

Change reservation

Reserve seat

View reservations

- 2h

Check gate

Departure time

Lounge access

Upgrade

+ 2h

Ground transportation

Lost luggage

Navigation

+ 2 days

Customer service

Mileage status

Reward travel

Upcoming reservations

Contextual use of time will help applications adapt

Airline example based on user time

Flight

Arrival time

Food order

Movies

Wi-Fi

15

Customer service

Mileage status

Reward travel

Upcoming reservations

Traveler mobile

tasks

What does actualizing this take?

Flight - 2 days + 2h - 2h + 2 days

Book reservation

Change reservation

Request upgrade

Reserve seat

Check gate

Departure time

Lounge access

Upgrade

Arrival time

Food order

Movies

Wi-Fi

Baggage carousel

Ground transportation

Lost luggage

Navigation

Flight reservation processes

Flight timeline

Travel business

processes

Customer loyalty processes

Flight processes

Baggage handling processes

16

Prepare yourself for modern applications

Understand how SOEs, SORs and SOOs

interact

Connect mobile apps to “cloud” and “big data”

Understand how notification and message

passing patterns drive modern application

architectures

Understand the need for speed and how

continuous delivery and feedback enable your

success

Use local, area, and historical context to create

adaptive applications

Inject analytics, CEP and rules into your long-

term modern application strategy and

architecture

Put Your Business in Motion

in the New Era of Smart Take Advantage of New and Enhanced WebSphere

Capabilities

David Millen VP, Business Process & Decision Management

Dianne Del Rosso Global Director of Marketing

for Industry, Mobile

and Smarter Process

18

bytes of new data generated daily

Internet of information

have joined a social network

Internet of engagement

connected devices

Internet of “things”

The Planet Is Getting Smarter Conducting Business with Anyone, Anytime, Anywhere Critical

19

New Technologies Present Opportunities for Business

Social Media

Cloud Computing

Mobile

Internet of Things

Big Data

Business

Customers Partners Employees

20

A New Kind of System Is Required

Systems of Interaction

Continuous client experience Partner value chain Cloud-based

Services

Systems of Engagement Systems of Record

Internet of Things

CRM HR

DB ERP

21

Put Mobile First 1

Business Must Embrace New Imperatives

Reinvent Your Business Design and Processes 2

Adopt a Flexible & Secure Integration Model 3

Be Insight and Data Driven 4

Build for Cloud & Open Architectures 5

22

Mobile is primary 91% of mobile users keep

their device within arm’s

reach 100% of the time

Insights from mobile

data provide new

opportunities 75% of mobile shoppers

take action after receiving a

location based messages

Mobile is about transacting 96% year to year increase in mobile cyber

Monday sales between 2012 and 2011

Mobile must create a

continuous brand

experience 90% of users use multiple

screens as channels come

together to create

integrated experiences

Mobile enables the

Internet of Things Global Machine-to-machine

connections will increase

from 2 billion in 2011 to 18

billion at the end of 2022

5 mobile trends with significant implications for the enterprise

Put Mobile First

1

23

IBM helping customers put Mobile First

Create new value at

the moment of awareness

Develop and run

applications

Connect with

customers

in context

Integrate mobile

into the fabric

of the organization

Drive revenue and productivity through mobile

Transform the value chain with mobile

Create deeper

engagement by

delivering contextually

relevant experiences

Discover new

opportunities using

mobile information

(CIO, VP Apps, Developer) Deliver differentiated mobile apps that run on any device

Unlock back office capabilities to create better front office engagement

Maintain Visibility and

control over the mobile

enterprise

Enable our employees to

work anytime and

anywhere

Ensure trusted mobile

interactions

(CIO, IT Exec)

(CxO, LOB Exec)

(CMO)

24

Clinical Information, Vital Signs and Images Integrated Across Devices

Speech Recognition for

Physicians, Anytime Anywhere

The Ottawa Hospital brings mobile technology bedside to

achieve better care

25

We continue to build out our capabilities aligned to the

MobileFirst entry points – key 2H 2013 announcements

Engage

Tealeaf CX Mobile 8.8 Capture more mobile-driven sales by

identifying and removing user experience obstacles that cause

customers to abandon purchases made on mobile devices

through integration with the IBM WebSphere Commerce Aurora

storefront

Build

Worklight V6.1 Significantly reduce the time and coding

required for backend data and services integration, producing

robust services-driven mobile apps. Immediate support for iOS7.

Mobile Quality Assurance Open Beta Reach for five

star quality through a consolidated view of customer feedback and

metrics that helps developers understand and optimize apps

Rational Test Workbench 8.5.1 Rapidly assess end-to-

end quality of native, hybrid, and HTML5 mobile apps with

automated test scripts that execute across multiple platforms

UrbanCode Deploy plug-in for IBM Worklight Easily

and accurately deploy Worklight apps from development to test or

production environments using automation that ensures all app

components are available where and when needed

SmartCloud App Performance Management 7.7

Improve customer satisfaction of mobile applications through real-

time performance and availability information; enabling one to

diagnose and fix performance issues before impacting the end

users.

Optimize

Trusteer Ensure transactional security on mobile devices,

helping to prevent fraudulent behavior and account takeover

before the transaction occurs

Security Access Manager Mobile Improve identity

assurance and enforce context aware access through either a

virtual or hardware appliance

Transform

Maximo Anywhere 7.next Achieve high efficiency in

enterprise asset management with mobility built on IBM Worklight

that delivers greater flexibility to customize front end workflows

Connections 4.5 Never worry about not having the latest file

versions on your mobile device, with automated file sync

capability that has been recognized by analysts as a leader in the

file sync and share market space

Cloud Mobile Managed Services Let IBM build and

maintain your mobile application portfolio with integrated, flexible

and scalable services in the cloud

26

What Is Driving Process Reinvention Today?

1) Forrester, 2013 2) McKinsey, 2012 3) Gartner, 2013 4) McKinsey, 2011

Reinvent Your Business Design and Processes

2

Big data and analytics drive

insight into processes

Cloud deployments force companies to rethink their

processes

Socially-enabled processes drive

increased productivity

Mobile requires process reinvention

27

Instant At Internet speed

47% of online bank account opening applicants don’t successfully

complete the process and fund their accounts

Insightful Targeted and relevant

47% say it frustrates them when companies don't use the

information they have to make interactions and offers more relevant

Seamless Interconnected & ubiquitous

By 2014, mobile internet is predicted to take over desktop

internet usage

What do you need from your processes in a customer-centric world?

Smarter Processes must be:

28

Effective business operations create superior customer experiences

Process today plays a critical role in driving customer experience initiatives…from

companies looking to overhaul customer service processes to companies seeking to

deliver more compelling experiences that incorporate big data analytics and real-time

guidance. The Forrester Wave: BPM Suites, Clay Richardson & Derek Miers, 2013

Customer experience is the #1 factor in both customer retention and acquisition:

“Customer-Centricity in Retail

Banking”, Boston Consulting

Group, 2012.

29

What does it mean to be easy to do business with?

Banking: Can I instantly add a family member to my credit

card account?

Insurance: Can I report an accident on my mobile device

and automatically trigger a tow truck and taxi?

Healthcare: Can I shorten hospital stays by one or two days

without compromising treatment quality?

Government: Can I speed up passport control at the border for

pre-certified frequent travelers?

“Amazon, Apple and Netflix provide the customer satisfaction benchmarks to

which banks must aspire”

~ Where is the ROI on Customer Experience in the Banking Industry?

Bank Systems & Technology, 2012

30

Antwerp University Hospital expedites diagnosis of rare diseases

Instant: Faster diagnosis and

treatment of rare diseases

Seamless: Can serve as a

comprehensive, intelligent and

dynamic knowledge base on

rare diseases

Insightful: Higher sensitivity and

more specificity to rare disease

diagnosis

31

New version of Blueworks

Live enhances analysis and

process summary, leverages

SoftLayer as SaaS infrastructure

New Decision Engine for

Operational Decision Manager delivers internet speed performance -

now up to 100% faster –

with a minimum

resource footprint

New Integration Bus Retail

Pack provides Out-of-the-box

retail solutions

for quick ROI

Enhanced IBM Business

Process Manager on Cloud leverages SoftLayer for improved

self-service, performance and

reliability

Reinvent Your Business

Design and Processes

IBM WebSphere Fall Announcements:

What’s New in Smarter Process

32

40% of respondents to a Forrester Research survey said that

inadequate integration with back-office systems was the

primary technical barrier to effective customer-

facing engagements

Capture insights from interactions and instrumented endpoints across channels and transform them into business opportunities rendering services through the cloud

Adopt a Flexible & Secure Integration Model

3

33

Integration

Security

Performance

1

2

3

Three best practices to successfully unlock back office

capabilities and information for seamless cross channel interactions

Source: IBM Global IT Study on Mobile Infrastructure 2013

Big data infrastructure Cloud Competitive Advantage

Mobile infrastructure optimization initiatives Mobile infrastructure integration initiatives

(% who have achieved through cloud)

1 2

3

1

2

1

34

Integration Turns Interactions into Transactions

Over 1/3 of all mobile technology leaders are

actively integrating to back end systems

Integration to back-end systems allows

business to capitalize on mobile interactions

A SOA-based integration layer provides

reusable services as APIs for mobile

interactions

An ESB approach allows complex

interactions to be packaged as simple APIs

to reduce multiple calls to the back end

1

35

APIs Need to Be Accessible But Security is Critical

Mobile applications typically access back

end resources through Web APIs

These APIs expose holes that can be easily

exploited unless protected

Threats from mobile-based attacks are

increasing yearly, requiring application-layer

protection

Exposing APIs that can be used securely by

mobile developers is a critical need for

organizations

2

36

Application Responsiveness Equals Money

Performance Matters

Google says +0.5 second drops user traffic 20%

Retailer discovered halving response time

increased online revenue 219%

Slowdowns cost 2x more revenue than outages

“Users really respond to speed. Speed matters.

People do not like to wait. Do not make them.”

~ Marissa Mayer, Google

3

37

Secure & Trusted Transactions

Ensure security and availability of

customer data, to ease customer

concerns and let them focus instead

on purchasing great products.

38

Every hour enough

information is consumed by the

internet to fill a stack 95x the

size of Mount Everest

The Opportunities for Better Insights are Everywhere

2.4 Quintrillion bytes of

new data created everyday

8 zettabytes of digital

content created by 2015

Be Insight and Data Driven

4

39

To deliver capabilities that allow you to…

Detect: opportunities to engages users

Enrich: content with historical data and trends

Perceive: “in the now” context

Act: on new insights gained

40

Detect

Enrich

Perceive

Act

hail now!

personalized

favorite

destinations

location, traffic,

proximity, direction

arrival,

payment

Transforming every day business interactions

41

Unlock or start your car from your mobile phone

Monitor vehicle conditions and performance

Provide location-aware hazard guidance

IBM helps Sprint deliver

a more personalized and

responsive vehicle

IBM and Sprint Drive Connected Cars into the Future

42

IBM Cloud Infrastructure Delivers Speed, Agility and Greater

Efficiency Build on Cloud & Open Architectures

5

of companies use

cloud to create new

or enhanced

revenue streams

incremental

revenue generated

from cloud enabled

technologies by

2016

Improved speed and flexibility

Realize faster deployments leveraging IB's patterns

of expertise with integrated systems management,

service automation and self-service provisioning

Ability to deploy systems in 1/10th the time

Business innovation

Deliver IT without boundaries through the use of

advanced orchestration technologies

Experience efficiency gains up to 20%

* IBM, Leadhing Through Connections:

Insight from the Global Cheif Executive Officer Study,

May 2012

43

Private/Hosted As a Service Composable Services

WebSphere Cloud

Bring your own license WebSphere

software running on a dedicated

platform as a service – on premise or

hosted (private PaaS)

Pay as you go WebSphere software

running on a shared platform as a

service (public PaaS and BPaaS)

Individual, high value services and

assets that developers can access

in the cloud to build and run next

gen web and mobile applications

WAS & WXS* DataPower* Patterns Engine* PureApp mini Power

BlueWorks Live* Cast Iron Live* BPM*

IoT Services* Liberty Buildpack**

* = running on SoftLayer ** = running on Cloud Foundry open PaaS

1

Think It. Build It. Tap into It.

2 3

WebSphere applications, components, and services are

available on cloud as…

44

Expedite Time to Success

Achieve unparalleled visibility into

library procurement processes.

Cloud-based solution in place in

weeks, without in-house technical

skills.

A world-renowned academic institution

45

Open Source Only Proprietary Open “Plus”

Organizations have a choice to make…

‘Significant Assembly

Required’ Vendor Lock-in Assured Enterprise Innovation

46

Embrace Open flexible

infrastructures for growth

TOSCA

Open Services for

Lifecycle Collaboration

Remove barriers to innovation

by quickly and easily bridging

between infrastructure and front

office systems

47

Liberty Leverages 100+

Open Source Packages

Leverages 100+

Open Source Packages

Leverages 70+

Open Source Packages

IBM’s approach delivers innovation and flexibility… and more

value to customers

44% ROI total economic impact of

migrating from an open source

solution to WAS1

35% TCO advantage of IBM WebSphere

Application Server ND v8.5 vs.

Red Hat JBoss EAP v6 over a

5-year period2

1Forrester ROI Study Migrating to WAS from OSS

2Prolifics TCO Study

48

Take Action: Are You Creating an Open System of Interaction?

Put Mobile First: Develop and end to end mobility strategy

1

Reinvent Your Business Design and Processes: Drive customer-centricity into day-to-day business operations

2

Adopt a Flexible & Secure Integration Model: Unlock the value of back office capabilities & instrumented endpoints

3

Be Insight and Data Driven: Apply continuous insights across your business

4

Build for Cloud & Open Architectures: Remove barriers to interoperability

5

49

Industry-wide accolades

for mobile

Market share leader in application infrastructure and middleware

software for 12 consecutive years

Only vendor recognized as the leader in 5 market segments:

Intelligent Business Process Management Suite

Application Services Governance

On-Premises Application Platforms

On-Premises Application Integration Suites

Mobile Application Development Platforms

Why IBM?

Over 100K clients globally are using IBM WebSphere

products to build and integrate their mobile, cloud and on

premise applications, business processes and

infrastructure solutions

50

51

Tier 1 Fall Announcements aligned to the Five Imperatives -

New and enhanced capabilities in the WebSphere portfolio New version of Worklight further accelerates service-driven mobile

application development

New UrbanCode plugin for Worklight automates mobile application

deployment and availability from dev through test and production

New version of MessageSight delivers an affordable messaging appliance

with improved UI for quick status, historical connections, and throughput

information

New Feature Packs for CICS Transaction Server allows extension of

CICS assets to remote devices using PHP scripting language; standards-

based security

New version of Problem Determination Tools for z/OS facilitates legacy

applications interaction with leading edge mobile applications

New version of Blueworks Live on IBM Cloud enhances analysis and

process summary, now hosted in IBM Cloud as SaaS

Enhanced IBM Business Process Manager on Cloud leverages

SoftLayer for improved self-service, performance and reliability

New Decision Engine for Operational Decision Manager delivers

internet speed performance - now up to 100% faster - with a minimum

resource footprint

New Integration Bus Retail Pack provides Out-of-the-box retail solutions

for quick ROI and Mobile accessible, web based UI delivers point of sale data

for real-time operational views

New Internet of Things Cloud Services designed to take the complexity

out of device connectivity by making it simple to enable and connect devices

to the cloud.

New Liberty Buildpack runtime available on the Cloud Foundry open

source cloud platform as a service development environment for fast web

application development

New Node.js support on IBM Power Systems for server-side JavaScript

application support on our enterprise infrastructure systems

New PureApplication System „mini‟ on Power delivers increased

application density and reduced power and space consumption for running

complete web and database application

Put Mobile First 1

Reinvent Your Business

Design & Processes 2

Adopt a Flexible & Secure

Integration Model 3

Be Insight & Data Driven 4

Built for Cloud & Open

Architectures 5

52

The full breadth of IBM WebSphere & Fall Launch

Announcements as aligned to the key capabilities for IBM

Smarter Process

Systems of Interaction

Expert Integrated Systems

/ Dev Ops

Cloud

Services

IBM Blueworks Live

IBM Business Process Manager on Cloud

IBM WebSphere Cast Iron V7.0

IBM WebSphere Application Server Liberty Buildpack

Internet of Things Cloud Services

IBM BlueWorks Live

IBM Business Process Manager on Cloud

IBM Operational Decision Manager v8.5.1

IBM Integration Bus Retail Pack v1.0

IBM PureApplication System v1.1 on Power

IBM Software Delivery and Lifecycle Patterns v1.0.1

IBM UrbanCode Deploy V6.0, IBM UrbanCode Release V6.0

IBM WebSphere MQ for z/OS Value Unit Edition

IBM MessageSight

IBM Explorer for z/OS v2.1

IBM SDK for Node.js™ V1.1

IBM WebSphere MQ Advanced for Developers – Free to download

IBM Software Services for Mobile

IBM Software Services for Cloud

IBM Software Services for MessageSight

IBM Quick Win Pilot for Integration Bus

IBM Software Services for Business Process Management

IBM Software Services for Media and Entertainment

Mobile

IBM MessageSight V1.1

IBM Worklight V6.1

IBM Security Access Manager for Mobile

IBM AppScan Enterprise with Arxan Guardium Technology

IBM UrbanCode Deploy plugin for IBM Worklight

IBM Mobile Enterprise Services for managed mobility

IBM ®CICS Transaction Server Feature Pack for Dynamic Scripting

IBM ®CICS Transaction Server Feature Pack for Security Token Extensions

IBM Problem Determination Tools V13