business disruption: new opportunities in a post ... · business disruption: new opportunities in a...

business disruption: new opportunities in a post industrial and post application world.

michael fauscette

group vp, ww software applications research

@mfauscette

www.mfauscette.me

law of accelerating returns


time

rate

of

Change

expected rate of change

actual rate of change

examples

ice harvesting to ice factories to out of business

kodak

mcCormack and dodge / DBS – 1st to 2nd platform

blockbuster…and now netflix

dell – post PC era

motorola and blackberry

sony – hardware to software transition

5


disruption

production

innovation /

development

balanceimbalance

Technology is the Underpinning of Digital Transformation

7

Why is this technology shift so significant?The synergistic interaction of these technologies is empowering BUSINESS disruption

The 3rd Platform Shift

today

internet as a business and technology platform

businesses: overwhelming tactical issues

• customer don’t “behave”

• employees have “unreasonable” expectations

• sales, marketing, service not “working”

• shifting workforce dynamics (for the 1st time

Millennials are the largest % of the workforce)

• disruptive new connected business models


65% of B2B buyers agreed that

“We usually engage a vendor

sales professional only when

we have made a purchase

decision”

trends


broad “Platform”

changes are very

disruptive - there

are fundamental

changes at play

cloud is

mainstream

but the shift

will take

time

tech is not just an

equalizer and a

way to reduce

costs, it is (or can

be) a strategic

advantage

business model innovation can be more disruptive than product / service innovation

information is a new currency in this new age, but “big” isn’t the point

not Mobile 1st,

Any Device,

Any Time

all applications

must be “social”


digital transformation

business modernization framework

© IDC Visit us at IDC.com and follow us on Twitter: @IDC

Customer Experience

Commerce Workforce &

Worksource

Innovation Management

Business Networks

Sensor Driven

Networks

11

Core Enterprise Applications

Data / Analytics

PaaS

Enterprise Social Network / Community

the platform concept becomes something

different.

what businesses need from technology is being

redefined.


companies are feeling the “winds

of change” but most are piling on

more sails

moving to the post application era

distributed information access – decision support

people-centric networks: connect people to people / data / assistive

tech / leveraging networks & communities)

cloud based distribution

any device access (responsive)

underlying platform services

modern UI / UX

‘On Premises’ (Apps) Opportunity in US

Growth Rate = 5.1%

US opportunity in on premises 2014 -2019


$85.2b

‘On Premises’ (Apps) Opportunity in US

CAGR= 5.2%

$109.8b

US opportunity in public cloud 2014 -2019


Public Cloud (Apps) Opportunity in US

Growth Rate = 22.6%

$23.8bPublic Cloud (Apps) Opportunity in US

CAGR = 16.9%

$52bw

r

o

n

g

worldwide competitive public cloud PaaS revenue snapshot


data services are driving growth of the PaaS

market

moving to the post application era

microservices marketplace

services

Core Enterprise Applications

Data / Analytics

PaaS

Enterprise Social Network / Community


Platform as a Service (PaaS)Application development and deployment environment

Cloud Application Platforms

Model

Driven

Deployment

Centric

Platform Services

App Dev/Life

CycleIntegration Data /

Analytics

Social

Storage,

Security,

Other

Services

from applications to microservices marketplaces and

platforms

Clo

ud A

pplic

ation P

latf

orm

s

Higher order services

Deployment services

Traditional Cloud

Native

Pla

tform

Serv

ices

App Dev

Data

Integration

IoT App

Social

DB Analytics Cognitive

CI/CD Testing

Security Spatial

Model

Driven

Function

Driven

Mobile

Micro Services

Containers

Others

PaaS: the new competitive component landscape

new profit pools


platform marketplace

core

ecosystem

emerging landscape

PaaS

current PaaS Vendors

“catch up” plays from other

apps vendors

others?

barrier to entry medium now,

but likely get high

core

usual suspects /

apps vendors

barrier to entry

very high

marketplace

PaaS and/or other

apps vendors

large SI’s

barrier to entry high

(trust issue)microservices

mobile app model (any small

development shop)

barrier to entry very low

ecosystem extending the reach and making it all work

barrier to entry medium, but likely will get higher fast

people + data + assistive tech (CI/AI) + work context & flow =

improved decisions

people-centric

networks

“social” technologies today

52,397.55

87,346.88

0.00

10,000.00

20,000.00

30,000.00

40,000.00

50,000.00

60,000.00

70,000.00

80,000.00

90,000.00

100,000.00

2014 2019

150.9% CAGR

SocialView, Sept 2015

“social” technologies today

29,270.30

14182.35

4,236.402,694.50

49,408.53

22496.92

8,466.43

4,956.00

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

0.00

10,000.00

20,000.00

30,000.00

40,000.00

50,000.00

60,000.00

Customer Experience WorkforceTransformation

Business Networks Commerce

2014 2019 CAGR

SocialView, Sept 2015

big data and business analytics market

25

2014 Business Analytics

Software: $41.2 B

Infrastructure: $18.1 B

Services: $51.6 B

Total WW: $110.8 B

CAGR: 11.2%

2014 Big Data

Software: $4.0 B Infrastructure: $4.8 BServices: $4.6 B

Total WW: $13.3 B

CAGR: 24.6%

big data & analytics: solution opportunities

26

Financial Reporting, Budgeting,

Profitability, Risk Management

Money(Accounts, Cash)

Psychologically Predictive, Optimizing

Offers and Content, Experience Management

People (Customers, Employees)

Predictive Maintenance, Optimizing Assets, Logistics,

Inventory and Operations, Demand Sensing

Things (Products, Materials)

Source: A 3x3 Opportunity Matrix for Big Data and Analytics, IDC #247766, April 2014

Performance

Management

Managers

Workload/Role

Business Process

Operational

Intelligence

Front Line Staff

Exploration &

Discovery

Analysts

Plan &

Optimize

Sense &

Respond

Model &

Predict

big data & analytics: platform opportunities

27

Source: A 3x3 Opportunity Matrix for Big Data and Analytics, IDC #247766, April 2014

Financial Reporting, Budgeting,

Profitability, Risk Management

Money(Accounts, Cash)

Psychologically Predictive, Optimizing

Offers and Content, Experience Management

People (Customers, Employees)

Predictive Maintenance, Optimizing Assets, Logistics,

Inventory and Operations, Demand Sensing

Things (Products, Materials)

Event or stream

processing,

Rules engines,

Workflow

management

Hadoop,

NoSQL, Graph,

Schema-less

databases,

Advanced

analytics

Relational data

warehouse with

in-memory tech.,

OLAP,

Dashboards

Performance

Management

ManagersWorkload/Role

Business Process

Operational

Intelligence

Front Line Staff

Exploration &

Discovery

Analysts

Plan &

Optimize

Sense &

Respond

Model &

Predict

democratizing data

data: from “big” to “smart” to “small”

people-centric decision platforms

democratizing data

the evolution of the platform (post-application era)

business modernization

opportunity in disruption

new profit pools

takeaways help customers to modernize

by leveraging technology

opportunity inside disruption:

new profits pools

accelerating rate of change and

the consequences of doing

nothing

using all available assets to

make the business

modernization successful

michael fauscette

group vice president

WW software application

research

[email protected]

Blog: www.mfauscette.com

@mfauscette

about.me: www.mfauscette.me

business disruption: new opportunities in a post ... · business disruption: new opportunities in a...

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