What's Next in Tech
At the risk of alienating (confusing?) all my friends on Facebook and in the blogosphere… I’m taking a public moment to wish Ross Perot a Happy Birthday. If it were not for him, I would not have enjoyed the 20+ excellent years I have had in the technology business. I joined EDS as a young writer in 1986. Perot meant a great deal to the early employees of EDS. I will always have a place in my heart for him and his first management team.
During the 90s, when I was tracking the IT services market, there was a continuous blurring of roles and activity between Management Consulting firms, Strategy firms, and good ole’ IT services firms. IBM had IBM Consulting, CSC had CSC Index, EDS bought A.T. Kearney— throw in a few strong boutiques, and they all competed against McKinsey, Booz Allen and Bain. It got really wild during the dotcom run-up toward the late 90s, as web 1.0 approached because a lot of these guys left the security of these large firms to run start-ups. Looking back, there was one reason these guys made good candidates to run web startups– they spoke the CEO’s language. They could persuade and convince a board room to make a “bet your business” proposition. Now luckily, not a lot of F500 CEOs made decisions they couldn’t undo based on dotcom disasters, and most of the well-healed consultants went back to their high billable rate profession after the bubble had burst.
I’m writing about this today because I’ve participated recently in two events on adoption on Enterprise 2.0. One was a live event in NY which drew mostly a financial services audience and one was a webinar with approximately 50 callers participating.
Today, I’m writing from my room at the Ritz-Carlton hotel in Naples, Florida (pictured left) where I’m about to attend a few social events with CEOs who are looking for answers about this new wave of Internet disruption or opportunity– as the case may be. I promised not to flack here about BSG, but we did make a terrific acquisition this week which gives us the privilege of bringing this story to the executive suite of some of the most well known brands in the world. You can read about goings on at BSG on a blog I’ve started here. I have to admit, frankly, the chance to evangelize on the next generation web to customers like American Airlines, British Telecom, Deutsche Bank, DaimlerChrysler, DuPont, ING Bank, Johnson & Johnson, Marriott, Merck, Pfizer, Rolls Royce, Royal Bank, and Shell gives me goosebumps– even in the hot Florida sun.
Even though we speak a lot in the blogosphere about the user-generated, collaborative, self-service benefits of social media and enterprise 2.0 technologies– the radical, cultural, enterprise-wide transformation we’re looking for is going to have to come from the top of what are still hierarchical organizations. And for that discussion to begin, the best tool we have today, may be the same tool that has worked for decades– the golf ball.
I’ve been having mash-up fantasies lately (it’s a middle age thing). I went to Barnes & Noble last night and wished there was a simple mash-up that would match ISBN numbers of the books I was interested in to a map of the store. That way, I would not have had to spend a half hour trying to find a human to lead me around to find what I came there for. Phil Wainewright is apparently having mash-up middle-aged fantasies too, but thanks to Yahoo Pipes, he was able to realize some of his. Phil did an excellent job of explaining how to roll your own RSS mash-up here check it out.
Along those lines, the Jeff and Rod show have opened up free trials of Teqlo for everyone. I signed up yesterday. It seems easy enough, but like I told Rod, now we’ll know if it’s truly idiot proof.
Here’s a screen shot for Teqlo. Sign up for the trial. It’s free.
Had an excellent chat this week with Narinder Singh, founder of Appirio based in San Francisco. Singh and his colleagues started up Appirio to take advantage of the next wave in enterprise adoption of SaaS applications such as Salesforce.com and SuccessFactors. With backgrounds from SAP, Webmethods, Borland, and Accenture, Singh and his colleagues know the enterprise market cold.
His predictions for the disruption of the enterprise app ecosystem were particularly interesting to me. Singh feels today’s enterprise vendors are falling into the classic trap of the innovator’s dilemma— how do you serve two masters– move to embrace disruptive technology while preserving your existing base? Further, he feels traditional, large SIs are also hooked on the enterprise drug with revenues pushing toward $10B for Accenture and IBM alone in enterprise app implementation and support services. On-demand also affects ISVs in that changes Oracle or SAP make in their core products won’t affect an ISV until maybe a year or so because of the complexity of the cycle in upgrades, etc. “In the on-demand model, if Salesforce innovates in an area where you [the ISV] have previously created some value add, over night their entire customer base has access to that innovation,” says Singh. The model of on-demand forces everyone to stay on their toes, and Singh believes this is good for customers.
He also sees his firm and firms like his as playing a unique role in helping enterprises with the SaaS (r)evolution. He sees a wide open opportunity to “bring the customer back to the center of innovation.” For instance, he’s working with a client to mesh their HR data (SuccessFactors) with their sales data (Salesforce) to deliver a strategic view on how to manage sales performance by increasing quality and reducing ramp-up time. The opportunity to observe, assemble and rapidly deliver new solutions is unique to this era of systems integration. The role of the SaaS-savvy services provider is more of an emissary than vendor, too. The business units are rapidly adopting SaaS under the radar of the CIO. Singh feels his firm is a natural to rationalize the SaaS silos within an enterprise and to help the CIO embrace the new technology, rather than resist it. By the same token, he feels the more successful and comfortable CIOs become with leveraging SaaS and web 2.0 solutions in the enterprise, the greater the disruption will become for the enterprise eco-system.
The following is a chart from a paper from Appirio entitled Services 2.0. It’s a good read for IT Services fans and enterprise app stalwarts alike.
Another interesting paper in the IT Services sector was recently published by the Outsourcing Institute. If you want to know more about Outsourcing 2.0, you can download the paper here.