IT Mega Trend

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IT Mega Trend Ubiquitous Computing

• Jeong-Ki Hong
• HP Korea

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Business Mega Trend requiring agile IT
IT Mega Trend about agile IT
What is Ubiquitous Computing
Reference Story of Ubiquitous Computing
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Everything Old is New Again
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Toward C-Commerce
2005 - Virtual The enterprise as an organism
2000 - Physical The enterprise as an organization
e-commerce
c-commerce

• Brick and mortar
• Vertical or horizontal integration
• Black-box trading-partner relationships
• Supply chain partners

• Click and mortar
• Recombinant integration
• Collaborative systems
• Cyber trading communities

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The Evolution of a faster business model
Legacy Model The dominant model in the PC
industry
Distribution Channels
manufacturer
customers
suppliers
Direct Model Eliminates the time and cot of 3rd
party distribution.
suppliers
manufacturer
customers
Virtual Integration Works faster by blurring the
traditional boundaries and role in the value chain
suppliers
manufacturer
customers
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Manufacturing Excellence (??? / ??)
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5
4.3
3
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2.7
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Customer Intimacy (??? Needs ??)
Product Leadership (????? ??? ??)

• ??? ???? ????? ??? ?? ??

• Manufacturing Excellence? ?? ?? ??
• Customer Intimacy ?? ??
• (???/? ?? ????)

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Business Mega Trend requiring agile IT
IT Mega Trend about agile IT
What is Ubiquitous Computing
Reference Story of Ubiquitous Computing
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Bridges connecting Business and IT
Measurable Enterprise Business Performance
Business
Customer
Agile Business IT Alignment
Customer-centric Business Process Innovation
IT
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Return on IT The Traditional Model

• Manage Costs
• Lower operations and acquisition costs
• Manage fixed costs

• Mitigate Risk
• Ensure security and continuity of business
  operations

• Increase Quality
• Improve levels of availability and response time
• Extend service levels across the enterprise

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Return on IT Business Agility the added
dimension





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The industry is moving to a new model of computing
adaptive computing
business-driven
grid deployment
technology and network focused
business process management
increasing business agility
web services
Internet
mainframe centered
service-centric management
client server
personal
adaptive computing shared, optimized,
heterogeneous resources
mainframe
time
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Paradigm Shift for Survival
19982003 Efficiency
Industry App
Back Office
Business Response
ERP II
CRM
Market Event
Enterprise Centricity
Proprietary, Monolithic Application Suites and
Modules
Business Advantage
Reactive Enterprise
Business Response
Industry App
Back Office
20032008 Effectiveness
ERP II
CRM
Loosely Coupled Value Chain
Market Event
Net-Enabled, Services Wrapped Application
Business Advantage
Value Chain Visibility Proactive Enterprise
2008? Profitability
Business Response
Market Event
Process-Driven Value Chain
SOA andBPM enabled, Business Process Fusion
Business Advantage
Agility, Adaptability
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CIOs Preparing Their Departments for Growth
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CIOs Technology Priorities
TOP-TEN TECHNOLOGY PRIORITIES, 2004
? ? Selected change in ranking compared with 2003
New question for 2004
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Vision for Adaptive Enterprise
???? ??? ??? IT ??? ????? ????? Business? IT? ??
???? ??? ?? ??
Business
Information Technology
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Adaptive Enterprise Reference Model
Darwin Architecture
Business processes
Applications
ARCHITECT INTEGRATE simplify, standardize,
modularize, integrate
MANAGE CONTROL assess, advise, act
MEASURE ASSESStime, range, ease
Infrastructure
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• Hot 10 IT Technologies

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1.Real-Time Enterprise -- RTE

• Reduce delays error rates
• Information precision and timeliness
• Faster reaction

Deliberate
Formulate
Decision
Communicate
Assimilate
Report
Activate
Capture

Filter
Track
Revise
Action
Awareness
Implement
Sense
Business Response
Event
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Maturity of RTE Technologies
Mass RFID Tagging
Business Process Management Languages
Web Services
Home Broadband
Wireless LAN
Real-time Analytics
Data Warehouse
Rules Engines
Content Management
Event Mgt.
Webcasting
RT Integration brokers
Self-healing Infrastructure
Wireless Messaging
Commercial Grid Infrastructure
Automatic text categorisation
Wireless Web
Trough of Disillusionment
Slope of Enlightenment
Plateau of Productivity
Technology Trigger
Peak of Inflated Expectations
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2. Developing Web Services
Web Browser
PDA
Client Tier
SOAP,UDDI, WSDL, ebXML
IIOP
HTTP
HTTP
Firewall
Web Service Container
Proprietary Protocol
SQL
Proprietary Protocol
SOAP,UDDI,WSDL,ebXML
Back-end Systems
Context Repository
Databases
Legacy system
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3. IP Telephony

• Noteworthy Points
• Features vs PBX
• Scalability
• Reliability
• QoS and sharing networks
• Interoperability
• VoIP on WAN issues
• QoS control
• Economics vs carrier trends
• IP variable latency
• Standards and interoperability

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4. RFID Tag
Successor to Bar Codes Can read even covered
while moving Can scan at distance Survives water,
heat, painting Price dropping to low
levels Current Applications Toll pass
systems Access cards Retail theft
protection Potential Applications Locate common
objects Real-time retail-shelf inventory Improve
manufacturing and supply-chain efficiency
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5. Instant Messaging in the Enterprise

• Values
• Presence service
• Real-time
• Low overhead

Instant Messaging

• Security Concerns
• Data protection
• Privacy
• Tamper resistance

• Other Issues
• QoS limitations
• Poor integration
• Lost record of decisions

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6. Location-Based Services

• Technologies being deployed
• RFID
• Bluetooth
• Cell phone tower
• GPS
• Possible Usage Areas
• Emergency
• Promotions
• Navigation
• Cyber-overlay
• Smart context

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7. Policy-Based ManagementThe Real-Time
Infrastructure
Input
Output

• Policies
• Definition of IT Service
• Service Agreements
• User Class
• Business Priorities

• Application
• Service
• Application
• Middleware
• Databases
• Network

• Provisioning
• Optimization
• Availability

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8. Utility Computing

• Examples
• ASPs
• SSPs
• MSPs
• hosting services

• Buy the services of system, not HW/SW
• Separates the what from the how
• Pricing model tends toward use

• Access them various ways
• Web Services
• Browsers
• Thick Clients

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9. GRID Computing

• Toolkits and Enablers
• Web services and other standards
• Corba
• Custom approaches, Significant integration
  required
• Current Applications
• Large computations with limited data interchange
• Partitionable algorithm
• Engineering Scientific research
• Universal or Niche?
• Security, economic and QoS issues remain
• Breakthrough performance vs. cost-efficiency

Application
Owner C
Owner A
Owner B
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10. Network Security Technology
In the Cloud
Content Scanning
Firewalls
?
Gigabit
Security Platform
IDS
Unified Management
Policies and Parameters
Honey Pots, Application Traces and Forensics
VA
Intrusion Prevention Appliances
Sub-100 Mb
Gateway AV
?
Anti- spam
2002
2004
2006
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Business Mega Trend requiring agile IT
IT Mega Trend about agile IT
What is Ubiquitous Computing
Reference Story of Ubiquitous Computing
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Ubiquitous Computing Key Enabler of Real-Time
Enterprise

• Link people with information
• Capture information early, never freeze
  information
• Dynamic real-time collaboration
• Illuminate information shadows
• Flexibility at all times and in all places

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Ubiquitous Computing Linking People with
Information
Multichannelnot just mobile
Provide access to information at all times and
from all places
Multiple mobile and network types
Make decisions whenever needed
Informationsystems
Staff and partners
Proactive alerts
Multiple mobile paradigms(e.g., messaging,
pictures, thin client and thick client)
In touch means in control
Partner and supply chain
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Ubiquitous Scenario Using Mobile IP
Enterprise Backend
Mobile IP Agent
Data Transmission
Internet
Data Transmission
SS7 Signaling
WiFi
Cellular WAN
SS7 Signaling
Data Transmission
Network Handoff
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There Is No One Killer Application ... Just
Killer Characteristics
Personal Productivity
Timeliness
Actionable
Personalized
Localized
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The Wireless Hype Cycle
Visibility
BREW
Will reach the peak in
WiFi Hotspots
Mobile Java/J2ME
Less than two years
Two to five years
MMS
Wireless E-mail
Mesh Networks
Five to 10 years
Bluetooth Networking
Wireless PDA /Smart phones
Wireless Voice
Wireless Web ( Portals/ASPs)
SMS
Mobile Location Services
VoIP
IPv6
2G Network Capability
P2P Bluetooth
802.11b
Mobile Financial Services
802.11a
Wireless Streaming Video
X
E911
GPRS
3G Network Capability
WAP
X
4G
Maturity
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• RFID

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RFID Viewpoint
RFID

• RFID promises to revolutionize retail

• No one has saved or made a dime yet

Visibility
Maturity
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RFID not ready for prime time, but

• Much work remains on the three basic
  hardwarecomponents for RFID systems.

• Tags
• Transceivers/interrogators
• Antennas

• The five-cent passive RFID tag still does not
  exist.

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RFID is more than just tags and readers
RFID
Visibility
Key Time to Plateau
Less than two years Two to five years Five to 10
years More than 10 years Obsolete before Plateau
Port operations tagging
Medical equipment tagging
Passive RFID controls on factory equipment
Mobile RFID inventory
RFID-centric WMS
Returnable assets
Third-party RFID inventory
Active RFID controls on factory equipment
Barcode-centric WMS, manufacturing and retail
Military field equipment and supply tagging
RFID-centric retail operations
Automotive OEM parts tagging
RFID-enabled dynamic logistics networks
Maturity
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Infrastructure Cost vs Operational Cost
IT costs architecture, infrastructure,
applications
Operational costs
Costs of data collection
fixed costs
Increasing RFID use
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Phase-by-Phase RFID Roadmap
Using RFID to create new processes and strategies
Strategic power
Open-system RFID applications
RFID-centric
2007-2012
RFID-enabled
Closed-loop pilots based on open standards
2004-2007
2002-2004
Closed-loop applications, pre-2002
Phase
1
2
3
4
Scope of solution
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Dont underestimate process change
A Process Change Checklist

• Process
• Determine how RFID-tagged inventory will flow in
  supply chain.
• Redesign processes for non-line-of-sight reading.
• Deal with the physics.
• Redesign distribution center and store backroom
  layouts.
• Data
• Determine how to use RFID data.
• Design for real-time decision-making capability.
• People
• Redesign roles and responsibilities.
• Continuous improvement
• Build in benefit-seeking processes.

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Focus on enhancing the consumer experience
RFIDbenefits
Customer experiencedimensions

• Fact-based
• ROI-driven
• Timely

Better decision data

• Right items
• Right store
• Right time

Inventory visibility

• Redeploy
• Reinvest
• Retrain

Labor savings
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Consumers value RFID-enabled benefits
willing to accept RFID tags on products in
exchange for...
Perishable product protection
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Always in stock
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Easier returns
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Tracking in-store spending totals
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Detailed product information
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Shorter checkout lines
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Faster checkout
Left Very Willing Right Somewhat Willing
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Faster payment
Source GartnerG2, January 2004
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Scan-based trading A case of value-shifting
Traditional distribution
Scan-based trading
Changing inventory ownership
Retailer
Manufacturer
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Lessons learned from early adopters

• In the supply chain
• Think creatively about reader and tag deployment.
• Re-usable tags are the best route to ROI.
• Dont underestimate process changes.
• In-store
• Human interaction/error can eliminate benefits.
• Consumer privacy concerns can derail efforts.

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Business Mega Trend requiring agile IT
IT Mega Trend about agile IT
What is Ubiquitous Computing
Reference Story of Ubiquitous Computing
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Case StudyWal-Mart defines much of the timing

• Only using standards-based technology
• Wants to collaborate with suppliers

Wal-Mart announcement
Limited tagging in production environments begins
Wal-Mart compromises and rationalizes requirements
Wal-Mart supplier conference
Wal-Mart finalizes requirements
Beyond
2Q03
3Q03
4Q03
2Q04
1Q04
3Q04
4Q04
1Q05
Suppliers attempt cost rationalization with
Wal-Martpropose some GTIN on barcodes
Suppliers develop and implement win-win business
cases with Wal-Mart
ePC standards announced
Supplier enablement implementation begins
Vendors announce concrete solutions
Vendors promise solutions
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Case StudyWireless ROI Scenario

• Large, national retailer
• Six-month pilot, 55 users

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Case Study A Wireless Hospital Information
System
Bedside visit to patient in wards
Problem

• Few PCs due to lack of room
• Delays in inserting patient data
• Errors in input, low-quality data
• Late input of examination delay diagnosis and
  care activities

Print patient medical record
Notes taken on paper
Hospital Information System
Objectives

• Reduce circulation of paper documents
• Eliminate the two-step process for patient data
  registration
• Enable bedside data collection in electronic
  format

Manual Input to HIS
Examination Booking
Solution

• Wireless extension of the HIS
• Mobile handheld for doctors and nurse
• Changes to hospital processes concerned

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Case Study A Wireless Hospital Information
System
Bedside visit to patient in wards
Approach

• A medicine ward chosen as pilot
• Preliminary bedside process analysis
• IPAQ devices, Microsoft Pocket PC, Visual Basic
  CE, Windows 2000, SQL server 2000, IIS

Examination booking executed
Results

• Short project lead time and quick adoption by end
  users (six months each)
• High acceptance by end-users, perceived time
  reduction (at least 15 minutes)
• Limited budget (150,000 euros)
• Benefits one-day reduction in patient stay, with
  hospital cost saving (14 percent)

Patient data and examination requests in the HIS
Critical Success Factors

• Extending the existing HIS to wireless
• Management commitment
• Focus on process improvement, not technology
  testing

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Case Study Wireless Project in Education
Results
Problem

• Teachers and students have better support, more
  focused access
• Collaboration and assessment

• Dependability fragile technology
• Teachers unable to use portable PCs
• Students mistreated PDAs

Critical Success Factors
Objectives

• Focus your resources
• One size does not fit all
• Remember your end user

• Restructure the project to improve instruction
  with the available mobile technology

Approach

• Focus on few subjects
• Handhelds assigned to classrooms
• Assess student progress via wireless feedback and
  decide

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Case Study Wesertal, German Utility Company
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Case Study Wesertal, New Wireless Process
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Case Study Wesertal, Challenges and Benefits

• Experiences and Challenges
• User issues most engineers over 45 years old
  didnt want to use technology
• Network difficult to get a mobile carrier to
  offer data at a suitable price
• Development issues SAP mobile interface wasnt
  suitable for selected devices
• Most of the problems involved very minor
  technical issues
• Results
• Accurate data is being received on jobs.
• Engineers driving fewer miles (less petrol),
  increase utilization of engineers.
• Supervisors reallocated to new tasks.

Bottom Line Training end users to feel that this
project is of great strategic benefit to the
company is very important.
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Case Study Global High-Technology Scenario
Call field service department
Dispatch engineer
Accounts Department
6
Help desk
2
Very expensive field engineer goes to company and
fixes problem
1
5
3
Very expensive hardware
Very expensive field engineer fills out
time-recording sheet
4
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Recommendations

• Discover, measure and justify mobile projects
  using BVIT to help you compete, decrease costs
  and drive revenue.
• Create a mobile strategic plan, but assume
  technology investments on a tactical 18- to
  24-month basis.
• Standardize internally on mobile services,
  devices and applications, and set policies
  accordingly for real-time enterprise (RTE).

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THANK YOU