ray wang workday rising keynote 2009

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Enterprise Applications in the E f th Cl d d W b 2 0 Era of the Cloud and Web 2.0 R “Ray” Wang P t E t i St t Partner Enterprise Strategy Altimeter Group October 19 th 2009 October 19 , 2009

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Page 1: Ray Wang Workday Rising Keynote 2009

Enterprise Applications in the E f th Cl d d W b 2 0Era of the Cloud and Web 2.0

R “Ray” WangP t E t i St tPartner – Enterprise StrategyAltimeter Group

October 19th 2009October 19 , 2009

Page 2: Ray Wang Workday Rising Keynote 2009

Today’s themesToday s themes

We must adapt to massive changes.

ll lWe can not allow our legacy technologies to hold us back.

The future of business requires us to d d i iadapt and integrate emerging

technologies.

© 2009 R Wang & Altimeter Group, LLC

Page 3: Ray Wang Workday Rising Keynote 2009

Agenda

3

Agenda• Four massive forces of change• Future of business• Evolution of enterprise apps• SaaS delivers the future today• Recommendations

© 2009 R Wang & Altimeter Group, LLC

Page 4: Ray Wang Workday Rising Keynote 2009

Organizations face massive and 4

unprecedented pace of change• Changing workplace norms• Distributed nature of work

• Loss of faith in capitalism• Commodity shortages • Distributed nature of work

• New work force models• Mixed generations

• Aging workforce• Global talent

• Commodity shortages• Political instability• Sustainability and

environmental focus• Economic crisis Macro Workplace • Global talent• Price spikes Macro

conditionsWorkplace dynamics

• Pace of obsolescenceincreasing fasterthan the rate of

Business Models

Pace of tech

• Globalization• New stakeholders

• Goliath vs start-up• Public/ private /hybrid

adoption• Consumer tech ahead

of enterprise• Digital divide closing

around the world

Modelsadoption

© 2009 R Wang & Altimeter Group, LLC

/ p / y• Regulation/ deregulation

• Business process outsourcing

around the world• Connected ubiquity drives

new adoption models

Page 5: Ray Wang Workday Rising Keynote 2009

Organizations face massive and 5

unprecedented pace of change• Changing workplace norms• Distributed nature of work

• Loss of faith in capitalism• Commodity shortages • Distributed nature of work

• New work force models• Mixed generations

• Aging workforce• Global talent

• Commodity shortages• Political instability• Sustainability and

environmental focus• Economic crisis Macro Workplace • Global talentEconomic crisis• Price spikes Macro

conditionsWorkplace dynamics

• Globalization

• Pace of obsolescenceincreasing fasterthan the rate of

Business Models

Pace of tech Globalization

• New stakeholders• Goliath vs start-up

• Public/ private /hybrid• Regulation/ deregulation

than the rate ofadoption

• Consumer tech aheadof enterprise

• Digital divide closing

Modelsadoption

© 2009 R Wang & Altimeter Group, LLC

Regulation/ deregulation• Business process

outsourcing

g garound the world

• Connected ubiquity drives new adoption models

Page 6: Ray Wang Workday Rising Keynote 2009

Organizations face massive and 6

unprecedented pace of change• Changing workplace norms• Distributed nature of work

• Loss of faith in capitalism• Commodity shortages • Distributed nature of work

• New work force models• Mixed generations

• Aging workforce• Global talent

• Commodity shortages• Political instability• Sustainability and

environmental focus• Economic crisis Macro Workplace • Global talentEconomic crisis• Price spikes Macro

conditionsWorkplace dynamics

• Globalization

• Pace of obsolescenceincreasing fasterthan the rate of

Business Models

Pace of tech Globalization

• New stakeholders• Goliath vs start-up

• Public/ private /hybrid• Regulation/ deregulation

than the rate ofadoption

• Consumer tech aheadof enterprise

• Digital divide closing

Modelsadoption

© 2009 R Wang & Altimeter Group, LLC

Regulation/ deregulation• Business process

outsourcing

g garound the world

• Connected ubiquity drives new adoption models

Page 7: Ray Wang Workday Rising Keynote 2009

Organizations face massive and 7

unprecedented pace of change• Changing workplace norms• Distributed nature of work

• Loss of faith in capitalism• Commodity shortages • Distributed nature of work

• New work force models• Mixed generations

• Aging workforce• Global talent

• Commodity shortages• Political instability• Sustainability and

environmental focus• Economic crisis Macro Workplace • Global talentEconomic crisis• Price spikes Macro

conditionsWorkplace dynamics

• Globalization

• Pace of obsolescenceincreasing fasterthan the rate of

Business Models

Pace of tech Globalization

• New stakeholders• Goliath vs start-up

• Public/ private /hybrid• Regulation/ deregulation

than the rate ofadoption

• Consumer tech aheadof enterprise

• Digital divide closing

Modelsadoption

© 2009 R Wang & Altimeter Group, LLC

Regulation/ deregulation• Business process

outsourcing

g garound the world

• Connected ubiquity drives new adoption models

Page 8: Ray Wang Workday Rising Keynote 2009

Agenda

8

Agenda• Four massive forces of change• Future of business• Evolution of enterprise apps• SaaS delivers the future today• Recommendations

© 2009 R Wang & Altimeter Group, LLC

Page 9: Ray Wang Workday Rising Keynote 2009

Our top priorities leave us torn

9

Our top priorities leave us torn

GrowGrow

InnovateInnovateComplyComply InnovateInnovateComplyComply

SaveSave

© 2009 R Wang & Altimeter Group, LLC*Phone and in-person survey of 89 CIOS from August to October 2009

Page 10: Ray Wang Workday Rising Keynote 2009

10

Convergence of themes drives today’s g ybusiness

Consumer tech and business

softwareTransactional

and behavioralIndividual and

the community

B2B and B2C Reactive and proactive

Company and the customer

Data generation and Top down and

b tt Evolution and

l tigeneration and data analysis

S i d H i l d

bottom up revolution

© 2009 R Wang & Altimeter Group, LLC

Strategic and tactical

Horizontal and vertical X and Y???

Contributors: Josh Weinberger – CRM Magazine

Page 11: Ray Wang Workday Rising Keynote 2009

Top 3 challenges in today’s 11

organization/enterprise

CIO’s no longer determine

technology adoption

CIO’s no longer determine

technology adoption

Antiquated technology impedes

effective change

Antiquated technology impedes

effective change technology adoption – businesses do.

technology adoption – businesses do.

effective change management.

effective change management.

The rate of obsolescence

t th t t

The rate of obsolescence

t th t t outpaces the rate at which companies

change.

outpaces the rate at which companies

change.

© 2009 R Wang & Altimeter Group, LLC

Page 12: Ray Wang Workday Rising Keynote 2009

Enterprises/organizations must evolve 12

how they conduct business

) All i ) All i ) D i i ) D i i ) I ti i ) I ti i 1) Allowing business units to pilot new technologies

1) Allowing business units to pilot new technologies

2) Designing process scenarios around user

2) Designing process scenarios around user

3) Investing in innovation --even when it hurts.

3) Investing in innovation --even when it hurts. technologies

and processes.technologies and processes.

around user roles – rather than vendor forced fit best

i

around user roles – rather than vendor forced fit best

i

hurts. hurts.

© 2009 R Wang & Altimeter Group, LLC

practices.practices.

Page 13: Ray Wang Workday Rising Keynote 2009

Agenda

13

Agenda• Four massive forces of change• Future of business• Evolution of enterprise apps• SaaS delivers the future today• Recommendations

© 2009 R Wang & Altimeter Group, LLC

Page 14: Ray Wang Workday Rising Keynote 2009

14

Existing enterprise apps address the g p ppbusiness needs of the 20th century

Strengths from the 20th

centuryChallenges in today’s

rapidly changing world

• Automating high volume transactions

• Delivering functional i

• Addressing increasing complexity

• Crossing functional fi fdcompetencies

• Standardizing business processesC t i i

fiefdoms• Dealing with new

businesses modelsP idi b i i i ht• Capturing massive

amounts of data• Ensuring accuracy

Securing information

• Providing business insight• Providing flexibility• Collaborating with new

stakeholders

© 2009 R Wang & Altimeter Group, LLC

• Securing information stakeholders

Page 15: Ray Wang Workday Rising Keynote 2009

Existing enterprise apps have yet to

15

g p pp yprove their value1 90 9% R d t f hi d l it1. 90.9% - Reduce cost of ownership and complexity

2. 83.7% - Address integration with existing investments

3. 81.9% - Complete original and promised product road map

4. 78.7% - Reduce cost of maintenance or show value

5. 74.7% - Renewed focus on innovation and Web 2.0

6. 68.3% - Better usability

7. 67.1% - Improved Integration to Microsoft Office

8. 61.1% - Less bullying and more relationship

© 2009 R Wang & Altimeter Group, LLC

8. 61.1% Less bullying and more relationship

Source: October 2009 Altimeter Group Survey “What we want from our RP vendor?” List of priorities from 221 global enterprise apps customers

Page 16: Ray Wang Workday Rising Keynote 2009

16

New social business/social enterprise papps exhibit 10 key characteristicsDynamic user Business process

fCommunity

dexperiences

• Role-based design

focus

• Configurable & adaptive

connectedness

• Engaging for all design

• Consistent experience across

adaptive• Outcome-

focused & results-

all stakeholders

• Pervasive & natural across

channels & deployment options

resultsoriented

• Proactive, predictive, &

natural collaboration

• Self-learning & self-awarep

• Contextual & relevant delivery of i f i

p ,actionable • Secure & safe

© 2009 R Wang & Altimeter Group, LLC

informationSource: August 24th, 2009 Software Insider’s POV “Monday’s Musings: 10 Essential Elements For Social Enterprise Apps” http://bit.ly/130WiO.

Page 17: Ray Wang Workday Rising Keynote 2009

17

Organizations already use a wide g yvariety of Web 2.0 tools

© 2009 R Wang & Altimeter Group, LLC Source: June 2009 McKinsey Global Survey “How companies are benefiting from Web 2.o”

Page 18: Ray Wang Workday Rising Keynote 2009

18

Web 2.0 technologies deliver greater g gknowledge sharing and collaboration

© 2009 R Wang & Altimeter Group, LLC Source: June 2009 McKinsey Global Survey “How companies are benefiting from Web 2.o”

Page 19: Ray Wang Workday Rising Keynote 2009

Agenda

19

Agenda• Four massive forces of change• Future of business• Evolution of enterprise apps• SaaS delivers the future today• Recommendations

© 2009 R Wang & Altimeter Group, LLC

Page 20: Ray Wang Workday Rising Keynote 2009

SaaS users enjoy 7 key benefits

20

SaaS users enjoy 7 key benefits

Richer user experience and user productivityRicher user experience and user productivity

Rapid IT implementation and optional higher quality deploymentRapid IT implementation and optional higher quality deployment

p p yp p y

Minimal upgrade hasslesMinimal upgrade hassles

More frequent cycles of innovationMore frequent cycles of innovation

Access to the “always-on” SaaS tools regardless of locationAccess to the “always-on” SaaS tools regardless of location

pgpg

Anytime scalability and dynamic capacityAnytime scalability and dynamic capacity

Subscription pricingSubscription pricing

© 2009 R Wang & Altimeter Group, LLC

Source: Altimeter Group September 2009 SaaS Benefits Survey of 91 end user clients and vendors.

Page 21: Ray Wang Workday Rising Keynote 2009

SaaS adoption moves from tipping 21

point to mainstream

Are you actively considering software as an OnDemand (SaaS) service?

On Demand

On PremiseOn Premise

© 2009 R Wang & Altimeter Group, LLC Source: October 9, 2009 BofA Merrill Lynch Global Research “CIO Survey”

Page 22: Ray Wang Workday Rising Keynote 2009

Organizations spending more on SaaS22

and less on OnPremise perpetual license

Favor perpetual license OnPremise software (e.g. Oracle, SAP, Microsoft, etc.) over OnDemand subscription (e.g. Salesforce.com, NetSuite, Concur, Successfactors, Taleo, Workday, etc.)

No change in relative allocation

Cutting back on perpetual license OnPremise software and spending more on OnDemand subscription

© 2009 R Wang & Altimeter Group, LLC Source: October 9, 2009 BofA Merrill Lynch Global Research “CIO Survey”

Page 23: Ray Wang Workday Rising Keynote 2009

Despite the economy, SaaS adoption 23

accelerates as customers find value

© 2009 R Wang & Altimeter Group, LLC Source: October 9, 2009 BofA Merrill Lynch Global Research “CIO Survey”

Page 24: Ray Wang Workday Rising Keynote 2009

Agenda

24

Agenda• Four massive forces of change• Future of business• Evolution of enterprise apps• SaaS delivers the future today• Recommendations

© 2009 R Wang & Altimeter Group, LLC

Page 25: Ray Wang Workday Rising Keynote 2009

Align your business priorities to your 25

organization’s hierarchy of needs

BrandBrand

Strategic ate

gdifferentiation

Sales and growthc cl

ima

Sales and growth

Operational efficiencyonom

i

Operational efficiency

Regulatory compliance and controls

Eco

© 2009 R Wang & Altimeter Group, LLC

Regulatory compliance and controls

Page 26: Ray Wang Workday Rising Keynote 2009

Design your enterprise strategy across

2626

Design your enterprise strategy across 4 dimensions

Organizational dynamics

Solution portfolio

management

Enterprise pStrategy

Business process

optimizationTechnology

effectiveness

© 2009 R Wang & Altimeter Group, LLC

Page 27: Ray Wang Workday Rising Keynote 2009

h h ff

27

Start with these effective strategies…

Focus on short term gains to pay for long term innovationsFocus on short term gains to pay for long term innovations

Optimize commoditized business processes through shared services and BPOOptimize commoditized business processes through shared services and BPOthrough shared services and BPOthrough shared services and BPO

Consolidate infrastructure around a few key t h l iConsolidate infrastructure around a few key t h l itechnologiestechnologies

Use regulatory compliance requirements to Use regulatory compliance requirements to

© 2009 R Wang & Altimeter Group, LLC

g y p qpay for future investments

g y p qpay for future investments

Page 28: Ray Wang Workday Rising Keynote 2009

Consider the following key criteria for 28

future apps decision making

Usability of the solutionUsability of the solution

Pace of innovationPace of innovation

Abili d hAbili d hAbility to adapt to changesAbility to adapt to changes

Ease of maintenanceEase of maintenanceEase of maintenanceEase of maintenance

ScalabilityScalability

© 2009 R Wang & Altimeter Group, LLC

ScalabilityScalability

Page 29: Ray Wang Workday Rising Keynote 2009

Use the SaaS Bill of Rights as a guide 29

to a win-win relationship

© 2009 R Wang & Altimeter Group, LLC

Source: Altimeter Group October 12th, 2009 “Customer Bill of Rights: SaaS”

Page 30: Ray Wang Workday Rising Keynote 2009

Final thoughtsFinal thoughts…

We can adapt to massive changes.

ll ll lWe will not allow our legacy technologies to hold us back.

Our organizations can thrive by d i d i i iadapting and integrating emerging

technologies.

© 2009 R Wang & Altimeter Group, LLC

Page 31: Ray Wang Workday Rising Keynote 2009

Thank You

R “Ray” Wang

@ l [email protected]://blog.softwareinsider.org

Twitter: @rwang0gwww.altimetergroup.com

© 2009 R Wang & Altimeter Group, LLC

Page 32: Ray Wang Workday Rising Keynote 2009

Enterprises face massive and 32

unprecedented levels of change• Changing workplace norms• Distributed nature of work

• Loss of faith in capitalismC dit h t • Distributed nature of work

• New work force models• Mixed generations

• Aging workforce• Global talent

• Commodity shortages• Political instability• Sustainability and

environmental focus• Economic crisis Macro Workplace • Global talent• Economic crisis• Price spikes

Macro conditions

Workplace dynamics

• Globalization k h ld

• Pace of obsolescenceincreasing fasterthan the rate of

Business Models

Pace of tech

• New stakeholders• Goliath vs start-up

• Public/ private /hybrid• Regulation/ deregulation

B i

than the rate ofadoption

• Consumer tech aheadof enterprise

• Digital divide closing

Modelsadoption

© 2009 R Wang & Altimeter Group, LLC

• Business process outsourcing

around the world• Connected ubiquity drives

new adoption models

Page 33: Ray Wang Workday Rising Keynote 2009

… and put together a road map 33

centered around your investmentBusiness Solution Organizational

Dynamics

• Prioritize business

Business Process

Optimization

• Focus on automating

Technology Effectiveness

• Leverage reporting

Solution Portfolio

Management

• Renegotiate maintenance business

requirements by hierarchy of needsInclude ERP

automating non commoditized processesUse workflow

reporting tools and BI

• Reduce paperwork with

maintenance contracts before DecemberInnovate • Include ERP

requests in business plans

• Use workflow to stream line business process

• Identify areas

with electronic sig

• Innovate around ERP with SaaSsolutions

• Enable other • Identify areas for Office integration

• Address compliance

• Enable other collaboration tools for productivity

© 2009 R Wang & Altimeter Group, LLC

compliance