Clouds, big data, and smart assets: Ten tech-enabled business trends to watch
Advancing technologies and their swift adoption are upending traditional business models. Senior executives need to think strategically about how to prepare their organizations for the challenging new environment.
AUGUST 2010 • Jacques Bughin, Michael Chui, and James Manyika
Trend 1: Distributed cocreation moves into the mainstream
Trend 2: Making the network the organization
Trend 3: Collaboration at scale
Trend 4: The growing ‘Internet of Things’
Trend 5: Experimentation and big data
Trend 6: Wiring for a sustainable world
Trend 7: Imagining anything as a service
Trend 8: The age of the multisided business model
Trend 9: Innovating from the bottom of the pyramid
Trend 10: Producing public good on the grid
Two-and-a-half years ago, we described eight technology-enabled business trends that were profoundly reshaping strategy across a wide swath of industries.1 We showed how the combined effects of emerging Internet technologies, increased computing power, and fast, pervasive digital communications were spawning new ways to manage talent and assets as well as new thinking about organizational structures.
Since then, the technology landscape has continued to evolve rapidly. Facebook, in just over two short years, has quintupled in size to a network that touches more than 500 million users. More than 4 billion people around the world now use cell phones, and for 450 million of those people the Web is a fully mobile experience. The ways information technologies are deployed are changing too, as new developments such as virtualization and cloud computing reallocate technology costs and usage patterns while creating new ways for individuals to consume goods and services and for entrepreneurs and enterprises to dream up viable business models. The dizzying pace of change has affected our original eight trends, which have continued to spread (though often at a more rapid pace than we anticipated), morph in unexpected ways, and grow in number to an even ten.2
This is story of Archway bakery in Ashland, Ohio. The bakery was closed in October abruptly and 300 employees were let go. Lance Inc of South Carolina bought the bakery in auction and reopened the bakery. I was really moved by this story. I think it is amazing what Lance has done.
Another good article By Arik Hesseldahl . I saw a touch screen PC by HP at best buy it was impressive but I already own 2 PCs and 2 Laptops. Could not convince my wife to get one more. But touch screen laptop sounds really interesting.
Apple watchers assumed Jobs & Co. would be the first to offer a multitouch laptop, but Hewlett-Packard has beaten them to the punch
From the first time Steve Jobs demonstrated "the pinch"—the two-finger gesture used to zoom in and out of photos and Web pages on the iPhone—some Apple observers assumed it was just a matter of time before a multitouch-enabled screen showed up on the Mac.
That hasn’t happened yet. But as of Nov. 19, Hewlett-Packard (HPQ) has beaten Apple (AAPL) to the punch, announcing the first multitouch-enabled notebook PC, the tx2. I can’t help but wonder whether Apple just lost an important race.
Following are couple of videos by C.K. Prahalad on New age of Innovation. Read good stuff.
The new landscape of business Management expert C. K. Prahalad discusses the new landscape of innovation, in which companies must learn to co-create with their consumers, making use of a global ecosystem of resources.
Great article to read around Cloud computing. I believe Cloud computing will be huge for next few years. Every application will start moving towards cloud. It has already taken of with offering from Google and Amazon. It just makes sense to let big companies take care of all the infrastructure.
But there are challenges too and the article by Stacey Higginbotham just highlights these challenges. The 10 reason provided in article that will hold cloud computing back for enterprise customers are.
Today while flying back from Dallas I picked up this book. I wanted to read something that I could finish in couple of hours and was valuable in business terms. This book turned out to be a real good one. There is some fluff in it but some content is real great. George has really done a great job of keeping it in around 100 pages and highlighting the key future strategies.
According to George the 5 key strategies to look forward to are
Supply Chain Gymnastics : Our infrastructure on west coast is crumbling and in future importing things from overseas through sea route may not be feasible. How can you react as business to this?
Sidestepping Economies of Scale: Bigger may not be always better. George talks about disposable factories. It is not a new concept, it is very common concept in project oriented industries where you setup small manufacturing operation on project site.
Dynamic pricing: Ability to provide unique price to individual buyer. I have heard about this in past but George brought it home with a great example. Example he gave was of toll charges which change based on traffic patterns using RFID. It is being tested in Washington state.
Embracing complexity: Other way of putting this is increasing and accepting configurability of products. Every individual should be able to uniquely design the product he desires. Great example of this is MINI.
Infinite Bandwidth: Leveraging high speed Internet bandwidth to change business processes or even define new business models.
It is a good book and will highly recommend it to everyone. Enjoy
Great stuff… So you ready to write some new Apps for iPhone???
KPCB’s iFund™ is a $100M investment initiative that will fund market-changing ideas and products that extend the revolutionary new iPhone and iPod touch platform. The iFund™ is agnostic to size and stage of investment and will invest in companies building applications, services and components. Focus areas include location based services, social networking, mCommerce (including advertising and payments), communication, and entertainment.
One of my close friends recently decided to leave Microsoft and start his own company. He has been with Microsoft for a long time and the change from MS to a starting a new organization will be a big one. When I started thinking about this change I started thinking about my own journey through various organizations. Every organization has an character, a heart and a soul. What do I mean? Let me take you through my journey through these organizations and explain…
Baan(1997-2000): A Successful ERP company trying to accept globalization and experimenting with distributed development across NL, US and India. In 1997 that was tough thing to do with infrastructure limitations and also cultural limitations. There was still frictions between different teams on ownership of work. This instability was not just in development but also in management originally the company was run from NL then it was taken over by management in US. Management styles are very different between NL and US. It was a great learning experience to see how a successful company was struggling to cope up with time.
Nortel(2001): Again a successful company trying to survive in economic downturn. There was chaos everywhere. The goal seemed to be survival to fight another day. It was tough with major layoffs going on in every division. Moral was low and people spend more time in worrying rather than working.
e-Emphasys(2001-2005): An entrepreneurial venture trying to define itself. Are we Consulting company or a Product company? Should we focus on long term strategy or short term gains? How do we refuse lucrative consulting projects today and just focus on product development for long term benefit? It is amazing how this conflict impacted every decision we made. Basically we just could not decide what we were. Some employees loved consulting and working closely with customers other did not like traveling as consultants and were happy doing product development but for a startup you do not have choice you make your call based on daily needs. The key learning was define your strategy and follow it. You cannot do everything successfully and grow.
SAMSys/Sirit(2005-2006): Another small entrepreneurial venture in RFID space struggling to raise capital and survive to see brighter days. We all could see the hockey stick but the rapid growth in industry was just not happening. Finally we just ran out of money and Sirit took us over. The key lesson was raise capital when you can and not when you need it most.
Microsoft(2006-2008): Amazingly successful company trying to maintain alignment across all its products. Think about it when a new release of Visual studio is planned you have to make sure it is compatible with the latest under development release of SQL, Share Point and Office. When new version of BizTalk is built it is also dependent on SQL, Share Point and Office and Visual studio designer. Did I miss the Windows releases. How do you keep all this in sync. It is a complex problem to solve and I think the company does pretty well to maintain this alignment.
Alignment is really crucial for overall success but I personally think it takes too much time and effort and affects time that can be spent on innovation. I am sure someone higher up in the organization thinks about it.
So this brief info about companies I have worked for. What about your companies? What was/is your company like? What does its character look like? Do share with me… Until then enjoy…
McKinsey published a new article on 8 new Business Technology trends. It is a great article. Please register at McKinsey site to read the complete article. Following are 8 Trends to watch according to Mckinsey.
Distributing Cocreation (Managing Relationships)
Using Consumers as innovators (Managing Relationships)
Tapping into World of Talent (Managing Relationships)
Extracting more value from interactions (Managing Relationships)
Expanding the frontiers of automation (Managing Capital and assets)
Unbundling production from delivery (Managing Capital and assets)
Putting more science into management (Leveraging information in new ways)
Making business from Information (Leveraging information in new ways)