CRISIL Young Thought Leader 2012

Transcription

1 CRISIL Young Thought Leader 2012 VIRTUALIZATION, CLOUD, SOCIAL NETWORKING, BIG DATA Are these just buzzwords? What are the technologies that will change the business in future? Arun Koshy Thomas Second Year, Symbiosis Institute of Telecom Management, Pune

2 P a g e 2 Table of Contents 1. Executive Summary 3 2. Virtualization : Impact on Business 4 3. Big Data: Hype or reality? 4 4. Cloud : Impact on Business 6 5. Social Media: Role in Business 7 6. Conclusion 8 7. References 8

3 P a g e 3 1. EXECUTIVE SUMMARY Technology is an important aspect in business which enhances value to the companies and adds to the bottom line. Virtualization, Social media, Cloud computing and Big data are the trends that are broadly transforming the way that organizations apply technology to the way they deliver results to their business in the immediate future. These trends have implications beyond technology and are driving deeper changes in business models, strategy, operations, processes and interaction between employees, customers and the market. Technology is playing an increasingly vital role in all aspects of business and society. New innovations may provide answers to the key challenges facing the world today, from climate change to resource sustainability to affordable healthcare for an ageing population. New technologies allow us to make things better, faster and cheaper, and are empowering individuals in a number of ways. Most importantly, technology is a key driver of hyper connectivity the interconnecting of everyone with everything which fundamentally redefines how individuals, enterprises and governments interconnect and relate. It provides new models for innovation, new opportunities for growth, but also new risks that will have to be managed and mitigated. Information technology is undergoing a major shift due to new paradigms and a variety of delivery channels. The drivers for these technologies are social networks, proliferation of devices such as tablets and phones. Social business and collaboration are continuing to develop further to enhance productivity and interaction. All these technologies are like a volcano ready to erupt and the key to surviving a volcano is preparation and knowledge. Hence there has to an emphasis on sound preparation to leverage these technologies.

4 P a g e 4 2. Virtualization: Impact on Business? Virtualization brings changes to the business infrastructure by changing the way business operates. Virtualization will transform how IT is managed, what is bought, how it is deployed, how companies plan and how they are charged. As a result, virtualization is creating a new wave of competition among infrastructure vendors that will result in considerable market disruption and consolidation over the next few years. Changes are also made to the way employees work and the roles they have in the new virtualized environment. Business benefits of Virtualization: Reduction of operating expenses Business continuity improved IT can respond better to customer request IT can deliver better on SLAs to the business Improved customer service Financial benefits of Virtualization: Reduction of hardware costs Reduction in server provisioning time Disaster recovery improvements Reduction of upgrade/ maintenance expenses Applications released faster Operational benefits of Virtualization: Increase in number of projects Improvement in application time to market Improvement in rework and testing Reduction in server incidents Reduction in systems downtime 3. BIG DATA: Hype or Business Reality? Big Data has surpassed cloud computing and virtualization as the next big thing in IT. It is all about turning unstructured and complex data into actionable information. A new survey by Informatica Corporation revealed that 72 per cent of Indian organizations are now considering, planning or running 'Big Data' projects, with organizations viewing the trend as an opportunity rather than an IT challenge by a greater than two-to-one margin in India.

5 P a g e 5 According to Gartner, the enterprise data is likely to grow over 650% over the next 5 years and IDC says that the world s volume of data doubles every 18 months. Hence it is clearly evident that there is a huge challenge in front of the business leaders. There are 3 aspects of Big Data: a. Big transaction data b. Big interaction data c. Big data processing The world is undergoing a major shift as the where, the what, and the how of computing change: The where of computing is moving from on-premise to cloud, changing the economics of computing and creating a new wave of data fragmentation. The what is shifting from transaction processing to interaction processing people interacting via social media and devices interacting via the Internet of things unleashing unprecedented volumes of interaction data. The how is moving from desktops to mobile devices, empowering users with context-aware and location-based services and generating a surge in device and sensor interaction data. Sources of Data: Who s creating the Data? % 46 % 36 % 33 % 21 % 20 % 13 % 9 % 6 % 6 % 5 % 13% 18% 12% Management 28% Other Customers Peers 7% Vendors 23% Public Data Source: Avanade Survey, 2011

6 P a g e 6 4. Cloud: Impact on Business? Cloud computing is one technology that is regularly touted as the next big thing in business innovation, allowing businesses to keep pace through benefits. Cloud computing is, essentially the use of the Internet for the use of desired software as a service. By incorporating cloud computing services, companies have access to scalable and virtualized resources that are delivered in real-time. All upgrades, applications, and data are stored using alternate servers more equipped to handle them. Business benefits of Cloud: a. Business agility Getting the compute resources you need when you need them tends to shorten IT projects resulting in less FTE to deliver the project and a quicker and more predictive time-to-market. Being able to deliver results faster, cheaper and with more quality might just give your business a competitive edge and make her more nimble on her feet. b. New business models It has become much easier to start business innovation initiatives, often enabled by readily available cloud services. Utilizing or combining these services can result in new and innovative business models, generating new value propositions and resulting in new revenue streams. There are even companies that are building entirely new business models and value propositions solely using cloud services. c. Less operational issues Utilizing standardized services can significantly reduce issues and defects. This increases business continuity and reduce time spent on operational issues, focusing more on the things that matter. Cloud computing allows you to deploy the same service or topology of services repetitively, with the same result every time. d. Better use of resources On the other side of the business agility model, more efficient projects and less operational issues allow your employees to spend their time on other more useful activities that may offer a greater potential value to your business. e. Cost Companies investing in more significant cloud set-ups should find that economic efficiency increases as they ratchet up the comprehensiveness of their adoption.

7 P a g e 7 5. Social Media: Role in Business? Social media has become a way of life. A large majority of people use social media to keep in touch with their loved ones; however, these days a growing number of businesses are also using them for promotion. There are many types of social media tools available which businesses can utilize to attain various goals such as brand promotion, brand management, image building, lead generation, etc. Here is a detailed look at how this innovative mode of communication helps businesses. Targeted Audience The biggest challenge in promoting a business online is finding your target audience. Customer segments can be categorized in various ways including demographics, psychographics, geography, behavior, etc. Prior to the Internet and social media sites, it could take businesses years of research and investment to reach their target audience. Now businesses depend on social media to pin point consumers who are looking for their product or service. Variety of Tools Unlike generic search engine optimization that provides limited tools to communicate, social media offers a variety of collaboration tools. For example, with micro-blogging you can simultaneously convey your message to masses of people. Also, Twitter business profile can be created allowing businesses to simultaneously communicate with an unlimited number of customers. Similarly, social networking websites such as Facebook allow you to socialize with people all over the world. Facebook fan page has revolutionized the way businesses can build their brand image and communicate with their customers, and professional networks like LinkedIn enable businesses to virtually meet directly with potential candidates. There are many websites that also help promote businesses with interactive content like podcasts, videos, text, and more. Cost One of the biggest reasons why businesses love to rely on social media tools is cost. For the most part, offline marketing initiatives are costly, but intelligently built social media campaigns help save a lot more money. Many modern business marketers use the combination of search engine optimization and social media tools to further optimize their online marketing results for a fraction of what they used to pay.

8 P a g e 8 Direct Communication Many organizations, large and small, are now effectively using social media to directly communicate with their customers. In the same way, customers can also directly communicate with the businesses about their products and services. Social media provides a two-way street for interaction and feedback, enabling immediate and direct communication about products and services. 6. Conclusion: Market hype over disruptive technologies such as social, mobile, cloud, big data, and analytics will continue. However, a good number of early adopters have achieved success. Therefore, organizations must not only understand when and which technologies to adopt, but also when and which technologies to pass on. Successful organizations will manage their innovation agenda as a partnership between business, IT, and legal. Those who establish a governance model for innovation will succeed. The bottom line is that pace of change continues to accelerate in In business, the only constant is change. Unfortunately, the pace of change continues to increase. Organizations which fail to manage this change will cease to exist. Business and IT leaders should quickly factor these mega trends into planning for 2013 and beyond. Importantly, organizations should weigh and factor these trends based on their business hierarchy of need. 7. References: Report of UN global pulse: Big Data released in June 2012 Avanade Global Survey on Big data html