Chapter 4
Breaking the Barrier of Physical Infrastructure

If you are reading this chapter, you already know how the innovative technologies of cloud, social, mobile, video, and big data with predictive analytics have impacted our businesses and fueled business agility in all dimensions. These technologies have enabled us to carry out most of our business functions remotely without being physically present on site. They have not only removed the barriers of physical infrastructure but have also helped greatly in reducing the cost of operations and in carrying out business globally with minimum cost.

Effective Use of Technologies

The recent innovations in technologies and in business models have broken the barrier of physical boundaries. They have allowed us to go beyond the physical infrastructure to carry out all sorts of work and study, to purchase, sell, exchange information, trade, and carry on commerce across the globe. A simple task like holding a meeting previously required us to travel to offices within a city or across cities, countries, and at times, continents. Now with technologies like Cisco's WebEx, Microsoft's NetMeeting, Join.me, and Oracle's Beehive, we do not need to commute to offices or travel across countries or continents to hold meetings unless face-to-face meetings are absolutely necessary. In a global environment, workplaces have practically no boundaries, with employees located all over the world.

Technology like Join.me has helped us in collaborating on content while writing this book. We both usually used Join.me in our real-time collaboration for sharing and discussing the manuscript in progress irrespective of our geolocation, breaking the physical boundaries and increasing our efficiency. We made sure that our manuscript for the book that you are reading was reviewed jointly without our being in the same room. Our writing activity did not suffer despite our work-related travel to other countries in different time zones. The technology offered greater efficiency in our goal to write the book on schedule for the publisher. It is fair to say that we had minimal or no in-person meetings with all the project's stakeholders such as the creative, editorial, and printing teams located in different places. This all became possible with the effective use of technologies that we are using today.

Reduce Cost to Your Advantage

With the ever-increasing prices of real estate, the virtual office has become an attractive phenomenon to many businesspeople. Companies can be located at a particular place but the employees conduct their day-to-day office work from different locations such as a hotel, café, or home. New technologies such as Web 2.0, wiki, chat, forums, tags, and RSS (Rich Site Summary/Really Simple Syndication) have enabled teams to maintain effective communication and content collaboration. These technologies have not only broken the barrier of physical infrastructure but have also provided business agility to launch any business with low cost and expand existing businesses globally with minimal cost of operation. We are living and working in the twenty-first century era in which Thomas L. Friedman, the author of The World Is Flat: A Brief History of the Twenty-First Century, says that the playing field is being leveled. Globalization has removed all barriers, supported by technological innovation in the areas of information and communication technology (ICT) and transportation. This helped first with outsourced manufacturing and assembly in remote locations with low-cost labor supplies, primarily in India and China, to bring down the cost of assembly, manufacturing, or services in the areas of call centers, medical transcription, accounting, legal, publication media, and films. And, subsequently, business process outsourcing (BPO) or better-defined as knowledge process outsourcing (KPO) evolved in all areas of jobs and at various locations, providing the business agility and efficiency needed to run business operations smoothly.

The cloud computing infrastructure and the fast-emerging cloud operating environment (CloudOE) (Castiglioni and Crudele 2013) with its major ecosystem have enabled access to elastic computing and system application resources deployed across pervasive mobile devices, breaking the physical boundaries. The cloud computing infrastructure has not only enabled access to a system of record (SOR) such as customer relationship management (CRM), enterprise resource planning (ERP), and supply chain management (SCM), but has also offered a system of engagement (SOE) via social interaction on social media, access to geolocations via maps, voice over Internet protocol (VoIP) telephony, chat, and wiki for real-time collaboration in the context of business applications to make the right decisions without being limited by physical location.

Customer Interaction Center in Offshore Locations

We are accustomed to receiving a direct marketing call from vendors promoting their products and services from remote offshore locations. But when we call a local merchant regarding a query or a desired service, we are surprised when that call is routed to a call center agent responding from an offshore location in one of the BRIC countries (Brazil, Russia, India, and China) to reduce the cost of customer-facing interactions, breaking all geographical boundaries. It is an accepted norm to implement customer relationship management (CRM) functions to offshore locations with the help of these technologies that provide business agility. Today, new sets of CRM suites of applications such as Salesforce.com, Oracle Sales Cloud, and many others can be easily implemented on cloud software as a service (SaaS) with a pay-as-you-go model integrated with voice over Internet protocol (VoIP) telephony. These applications and technology solutions enable call center agents to know the details about customers on incoming calls and answer effectively despite their geolocations and time zone differences. In fact, time zone differences help businesses in their continuity of customer services, ensuring that someone is responding to customer requests 24/7 all through the year.

Some of key back-office operations such as payroll, human resources (HR), and accounting are also distributed to various locations, breaking the physical boundaries and sometimes performed by third-party companies as outsourced services leveraging these technologies. It would be insane in the current business context not to consider and implement these technologies and deploy these business models to stay competitive in fiercely competitive business scenarios. These business processes and models are applicable across industries and are rapidly deployed to provide agility and sustainability. Whether we are making hotel reservations, purchasing airline tickets, checking our appointment schedule with health care services providers, obtaining auto repair and maintenance services, or renewing insurance policies, we are witnessing this rapid change in business scenarios, and it would not have been possible without these emerging technologies. It is interesting to note that major innovations in all these major technologies are contributed by software design and deployment, and these vendors are actively embracing the changing paradigm. Major software vendors are setting up their development and back-office support infrastructures in offshore locations, cutting down their operational costs and allocating best resources to design innovation. They are not only deploying their applications across industries but using the applications themselves and implementing them to their advantage. Amazon established a large data center to support customer demand for its e-commerce transactions, and now the same infrastructure is available for computing and storage in the form of Amazon Elastic Compute Cloud (EC2), discussed in Chapter 3.

Let us examine some of the leading sectors that are early adopters of these emerging technologies and are leading innovation and providing business agility within a collaborative ecosystem.

Amazon and eBay Business Models: Breaking the Barrier of Physical Infrastructure

Amazon and eBay in the retail sector have led the e-commerce phenomenon and changed the bricks-and-mortar model of doing business by breaking the barrier of physical infrastructure. Online shopping is the best-known activity in e-commerce. It allows shoppers to buy via the Internet, and, in turn, it lets business owners sell products online at any time. The access to an e-commerce portal 24/7 from across the globe deployed on the cloud environment via all devices powered by social collaboration has not only broken the physical barrier but enriched the decision making process, making it highly effective and predictable.

Amazon Business Model

Amazon.com is designed to perform electronic trade, and consumers are satisfied through comfortable processes. Amazon started by selling books and then expanded its niche market by selling other products. The Amazon website allows businesses and individuals to create listings of the items that they have for sale, and those items then go live on the Amazon website. The items will stay up for as long as it takes for them to sell, or until the seller decides to delete them manually from the listing. The Amazon business model and strategy is to earn a small percentage of the sale price of each item that is sold through its website (like a commission).

The simplicity of the strategy has allowed Amazon to take its business to the next level with an innovative business model.

The eBay Business Model

With a similar business model, eBay has built an online person-to-person trading community on the Internet, leveraging the emerging Internet-based technologies and platforms. Buyers and sellers are brought together in a manner where sellers are permitted to list items for sale, buyers bid on items of interest, and all eBay users are allowed to browse through listed items in a fully automated way. The items are arranged by topics, and each type of auction has its own category. With its web interface, eBay has both streamlined and globalized traditional person-to-person trading, which has traditionally been conducted through such forms as garage sales, collectibles shows, flea markets, and more. The web interface enables sellers to list items for sale within minutes of registering, and facilitates easy exploration by buyers.

Browsing and bidding on auctions is free of charge, but sellers are charged three kinds of fees:

  1. When an item is listed on eBay, a nonrefundable insertion fee is charged, which ranges between $0.30 and $3.30, depending on the seller's opening bid on the item.
  2. A fee is charged for additional listing options to promote the item, such as a highlighted or bold listing.
  3. A final value (final sale price) fee is charged at the end of the seller's auction. This fee generally ranges from 1.25 percent to 5 percent of the final sale price.

At the end of the auction, eBay notifies the buyer and seller via e-mail if a bid exceeds the seller's minimum price, and the seller and buyer finish the transaction independently of eBay.

eBay has successfully leveraged these technologies to their advantage in establishing leadership in the field of e commerce.

* * *

The success of Amazon and eBay in leveraging these converging technologies established the legendary milestones in the field of e-commerce and led the way for businesses across industry sectors to transform in order to survive, thrive, and grow for sustainable competitive advantage. In the current tornado of technology storms, business will not have the success they desire if they do not possess a web storefront to inform, educate, and carry out business transactions with their customers. Moreover, in order to survive in today's tough economic climate, many businesses, whether established, new, or global, will be looking to drive efficiency and reduce costs by leveraging these emerging technologies.

Virtual Support Removing Physical Boundaries

Customer services and support are other major business areas that strongly leveraged these emerging technologies and optimized costs by breaking the boundaries of physical infrastructure and geolocation. With virtual, anytime, anywhere, Internet-based applications, businesses can sell more effectively in geographic markets that were previously unreachable and unprofitable. Even small companies can now deliver services to customers and partners in distant places using these technologies. Communications (VoIP, Skype) and web-based support capabilities can reduce or eliminate on-site travel, minimize downtime, and optimize productivity for customers and overworked information technology (IT) staff.

More important, customer services and support have undergone dramatic changes in the recent past based on these technologies breaking the physical infrastructure and geographic boundaries completely. When we call the customer support desk, we really do not know where the person is located. The call gets routed to remote locations in India, Ireland, and sometimes the Philippines, depending on the time zones.

Today, the help desk needs a better way to manage the realities of today's enterprise dynamics, such as:

  • Mobile and remote workers using a multitude of computing devices and operating systems, including smart devices
  • Leaner budgets than ever for help desk operations, yet business demands for greater help desk productivity and service quality
  • Varying, yet ever more strict, security and compliance mandates for data management by region or by country

With the emergence of solutions, companies have a significantly better way to troubleshoot, fix, administer, and maintain their systems. Banks support their customers using a variety of web-based tools, including chat, remote control, VoIP, and video; these solutions enable managers to track customer services virtually via the Internet. This capability helps eliminate costly visits to customer locations and long distance calls. Exceptional customer service must be the backbone of businesses in today's tough climate. Now the challenge of providing high-touch customer service has never been easier while also dramatically reducing operational costs and enhancing customer satisfaction. These next-generation support solutions add the vital human element to communication with customers and create a new level of attention that ultimately improves client retention and loyalty.

Education: Going beyond Physical Boundaries

Education is yet another sector that can leverage these emerging technologies such as cloud and collaborative technologies and reach remote locations, breaking physical boundaries. In many ways, education is timeless. Its purpose has been to help learners expand their understanding of how things work, improve their capabilities and skills, and grow as successful individuals. However, education today is far different from what it was just a decade ago. Technology has been a major driver, but other resources are converging to reshape the way we think about, and deliver, learning:

  • A heightened focus on educational outcomes and institutional accountability
  • Learner-centric learning that recognizes that different people have different learning styles and different pathways to acquiring an education
  • The need for lifelong continuous learning and the emerging importance of reaching nontraditional students and people with disabilities
  • Globalization and the fact that our students graduate into a world that is more competitive, faster paced, and more information driven
  • Economic pressures to cut costs and, for higher education and private schools, to increase revenues as well

These forces are re-architecting education, which today may blend traditional elements with online learning, both self-paced and in real time. Instruction may be delivered entirely in a live, virtual classroom. It may be based on “learning by doing” projects that prepare learners to navigate their personal and professional lives in an interconnected, always-on world. It may fall anywhere on the continuum from formal, structured classes and professional development to in-the-moment, informal problem-solving sessions and ad hoc meetings.

Many technology solutions such as Blackboard, Edmodo, Huddle, and Moodle deployed on cloud platforms enable collaborative education and are easily accessible and available even in remote locations where Internet access is available. OpenStudy (http://openstudy.com) is a unique learning platform and a sound effort in the right direction to break the boundaries of physical and geographical infrastructure, where students collaborate, ask questions, give help, and connect with other students studying the same things regardless of their locations, time zones, and institutions. This endeavors to make the world one large study group, regardless of school, location, or background.

Now major universities in the United States have joined the initiative to provide free, open online courses, breaking all physical boundaries and enabling students/learners across the globe to learn with mere Internet access.

Massive Open Online Courses: Breaking Physical Boundaries in Education

Although there has been access to free online courses on the Internet for years, the quality and quantity of courses have changed. Access to free courses has allowed students to obtain a level of education that many could only dream of in the past. This has changed the face of education. In the New York Times article “Instruction for Masses Knocked Down Campus Walls” (March 4, 2012), author Tamar Lewin stated, “In the past few months, hundreds of thousands of motivated students around the world who lack access to elite universities have been embracing them as a path toward sophisticated skills and high-paying jobs, without paying tuition or collecting a college degree.”

Although massive open online courses (MOOCs) are the latest trend, not everyone agrees that schools should offer them. Joshua Kim's Inside Higher Ed article “Why Every University Does Not Need a MOOC” (March 6, 2012) noted that offering free material may not make sense for the individual university.

Since a MOOC is voluntary and there is no penalty for dropping the program or lagging behind, there may be issues with course completion. Although a student may have received an excellent education, there will not be a corresponding diploma.

For those who desire a free education and have the motivation, the top 10 sites for information about MOOCs are:

  1. Udemy free courses. Udemy is an example of a site that allows anyone to build or take online courses. Udemy's site exclaims, “Our goal is to disrupt and democratize education by enabling anyone to learn from the world's experts.” The New York Times reported that Udemy “recently announced a new Faculty Project, in which award-winning professors from universities like Dartmouth, the University of Virginia and Northwestern offer free online courses. Its co-founder, Gagen Biyani, said the site has more than 100,000 students enrolled in its courses, including several, outside the Faculty Project, that charge fees.” [https://www.udemy.com/]
  2. ITunes U free courses. Apple's free app “gives students access to all the materials for courses in a single place. Right in the app, they can play video or audio lectures. Read books and view presentations.” [www.apple.com/education/ipad/itunes-u/]
  3. Stanford University free courses. From quantum mechanics to the future of the Internet, Stanford offers a variety of free courses. Stanford's Introduction to Artificial Intelligence was highly successful. According to Pontydysgu (www.pontydysgu.org), “160,000 students from 190 countries signed up to Stanford's ‘Introduction to AI’ course, with 23,000 reportedly completing.” [http://see.stanford.edu/]
  4. University of California at Berkeley free courses. From general biology to human emotion, Berkeley offers a variety of courses. Check out Berkeley webcasts and Berkeley RSS feeds. [http://webcast.berkeley.edu/]
  5. MIT free courses. Check out MIT's RSS MOOC feed. [http://ocw.mit.edu/help/rss/]
  6. Duke University free courses. Duke offers a variety of courses on ITunes U. [http://itunes.duke.edu/]
  7. Harvard University free courses. From computer science to Shakespeare, students may now get a free Harvard education. “Take a class for professional development, enrichment, and degree credit. Courses run in the fall, spring, or intensive January session. No application is required.” [www.harvard.edu/faqs/free-courses]
  8. UCLA free courses. Check out free courses such as the writing program that offers more than 220 online writing courses each year. [https://www.uclaextension.edu/pages/search.aspx?c=free+courses]
  9. Yale University free courses. At Open Yale, the school offers “free and open access to a selection of introductory courses taught by distinguished teachers and scholars at Yale University. The aim of the project is to expand access to educational materials for all who wish to learn.” [http://oyc.yale.edu/]
  10. Carnegie Mellon University free courses. Carnegie Mellon boasts “No instructors, no credits, no charge.” [http://oli.cmu.edu/]

Khan Academy: Making a Great Impact in Education

With emerging technologies, the face of education is changing rapidly and the world should benefit immensely, breaking all physical boundaries. Anyone in the world with Internet access can learn from the best and brightest for free.

In 2004, Sal Khan, a former hedge fund analyst living in Boston, Massachusetts, began tutoring his cousins in need of a deeper understanding of mathematics. Khan began with short and focused instructional videos teaching unit conversion using a virtual blackboard and talking through the logic of solving these problems, and expanded to a library of over 5,000 instructional videos, including 100 self-paced practice exercises and metrics to analyze the learner's progress, available for anyone in the world to consume and learn. He formed the Khan Academy to share his video lessons on YouTube via the Internet and to help students better understand various math and science topics explained in ways that were different from how he was taught in the classroom and through textbooks.

Khan refers to himself as a teacher of the Khan Academy since he creates all of the instructional videos. The Khan Academy has become extremely popular; students and parents have found Khan's resources exceedingly beneficial and a supplement for their foundational understanding of math and science.

Health Care Services Leveraging Outsourced Services

These technologies have enabled the health care sector as well, and many in this industry are turning to outsourced health care management solutions as a strategic alternative to manage their office functions, as well as selected administrative, financial, and IT services. Health care providers will need to find new business models to support operational and clinical quality, reimbursement, and stakeholder management. Services such as case and policy administration, member enrollment, profile management, claims management, benefits administration, billings and collections, and provider relations can be rendered remotely from distant locations, breaking barriers of physical boundaries and time zones, lowering the costs, and enhancing agility and efficiency. Emerging new process models can help organizations control costs and focus on growth while improving operational efficiencies and optimizing existing resources.

Health care delivery organizations can meet the objectives of reducing operational costs, minimizing administrative overheads, and maximizing profitability by strategically outsourcing their business processes to specialized service providers at offshore locations. There are various front desk services such as patient registration, scheduling and appointment management, eligibility verification, referral management, appointment confirmation, follow-up appointment reminders, and scheduling that are efficiently carried out by professionally trained staff at offshore locations, breaking physical boundaries by business process outsourcing (BPO) service providers. Back-office services such as medical billing, accounts receivable (A/R) management, denial management, patient statements, trending, and reporting have become a proven business model for optimizing operational efficiency.

Assembly: Outsourced by Apple in China

Manufacturing broke geographical barriers a long time ago with outsourcing to offshore locations, causing a lot of uproar that U.S. jobs were being taken by India and China. As the previously cited New York Times article pointed out, when President Obama asked Steve Jobs, Jobs answered bluntly: “Those jobs are not coming back.” Foxconn is contracted by Apple to assemble iPhones in a southern Chinese city, Shenzhen, and employs 230,000 workers. The Foxconn campus has banks, supermarkets, bookstores, fire brigades, a police station, a hospital, and many other facilities. It is sometimes referred to as “iPod City.” By locating the same iPhone factory in the United States, Apple would add more than $25 billion in labor costs a year, which would completely wipe out its 2010 profit of $14 billion.

As these emerging technologies are creating a revolution, businesses need to focus on research and innovation and create more companies such as Apple, Facebook, Google, and Tesla.

Manufacturing Outsourcing: Levi Strauss & Co.

We all know that today Levi Strauss & Co. products are sold under the Levi's, Dockers, Denizen, and Signature brands. The products are sold in approximately 55,000 retail locations in more than 110 countries, including approximately 1,900 dedicated retail stores. Levi Strauss & Co. was founded in San Francisco by Bavarian immigrant Levi Strauss in 1853.

In an endeavor to survive and remain in the business, the company changed its business model to embrace manufacturing outsourcing. It shut down many of its sewing factories in the United States and outsourced to offshore countries, breaking physical boundaries, and brought back a focus on innovation to meet customer demand and responsiveness with agility.

Travel and Hospitality Sectors: Breaking Physical Boundaries

With the convergence of these technologies (cloud, social, mobile, video, and big data) continuing to diversify, the travel and hospitality industry is no exception and has offered greater customer engagement for airline ticket booking packaged with hotels, car rentals, and package tours all at the click of a button on any device from any geolocation. In addition, today's customers demand a personalized experience with real-time information and assistance via voice, online, e-mail, text, and chat media.

Expedia, Travelocity, Orbitz, Kayak, CheapoAir, Bestfares, MakeMyTrip.com, Cleartrip, and Carlson Wagonlit Travel are a few of the many travel and hospitality portals that offer elegant services via an interactive portal with a rich web experience for all travel and hospitality needs, breaking physical boundaries. We no longer need to visit any physical offices to accomplish these jobs—we can do so with the use of smart devices from anywhere at any time.

MakeMyTrip.com is an example in the travel and hospitality industry to establish rapid growth over a decade, crossing the limit of geographical boundaries and leveraging these major technologies. The company was founded in the year 2000 with the aim of empowering Indian travelers with instant booking and comprehensive travel and hospitality packages in one web environment. It aimed to offer a range of best-value products and services based on leading technologies for interactive customer engagement supported by round-the-clock support staff. With greater customer engagement based on cloud deployment, the company expanded its reach to global customers, breaking all geographical boundaries, and today it is extremely successful among Asian diasporas globally, including those in the United States, Australia, Europe, the Middle East, and Africa.

Software Development Leverages Global Resources

It is not an exaggeration to say that we do not need a software development team in one room at one office location at any given point in time. In fact, all major software development work is carried out with distributed resources all across the globe, breaking physical geographical boundaries and optimizing cost. Maximizing IT development resources is a common problem facing many large companies, especially those with information-intensive business models such as financial services, telecommunications, high technology, and manufacturing. Priorities and workloads fluctuate continually—from team to team, department to department, and project to project.

Convergence of these technologies has also helped software development across the board in several ways. Cloud infrastructure has helped global IT teams to provision the right development resources to the team on a virtual consolidated infrastructure and has eliminated diverse setups at numerous places that entailed lots of duplicate effort to make sure each lab had the proper versions and updates for each server and storage array.

AEC Industry Removes Barriers

The architecture, engineering, and construction (AEC) industry can maximize project collaboration, make business more agile, and reduce operational costs by leveraging these emerging technologies and deploying services based on cloud infrastructure. As we all know, construction professionals are constantly challenged to deliver successful projects due to tight budgets, short time lines, geographically dispersed teams, and difficulty in accessing information.

Architects and construction engineers would be able to access their blueprints, computer aided design (CAD) files, and contracts hosted and managed by content storage offered by cloud service providers. Box, a leading online storage services provider, recently announced its services named Box OneCloud apps to better serve customers in architecture, engineering, and construction. These services can be accessed remotely from anywhere, at any time, and on any devices, removing any geographical barriers and providing greater business agility and efficiency. Site engineers and architects conduct site inspection and many other jobs such as quantity surveying, validation, and correction with the help of smart devices on-site, accessing all contents accessible from their cloud services.

With these technologies (cloud, social, and mobile), architects would be able to create the architectural drawings remotely located at any location, supported by structural engineers providing structural drawings, again from remote locations, and executed by site engineers to carry out the construction work with real-time active collaboration with the architects and structural engineers.

Many large construction projects are executed with the use of sophisticated software services offered by Intergraph, Autodesk, and Bentley in cloud deployment models to create business agility in the AEC sector.

As we further examine all these technology forces in the next chapter, we dig deep on the power of collaborative management providing greater capabilities to manage tasks more efficiently with powerful collaborative tools. We have endeavored to provide some guidance on leading tools that may help in transforming your business with new modes of collaborative management and execution with various stakeholders in business with the single mission of creating business agility and providing greater efficiency.

Converging Technology: Inside the Force 5 Tornado for the Perfect Storm

The convergence of cloud, social, mobile, video, and big data provides synergy for determining what the vision, mission, and strategy of the next generation of digital business is using collaboratively internally to align functional resources and externally to leverage trading partner capabilities with compatible core competencies. In this manner we can use the digital business value chain to develop a market-leading ecosystem where the power of the whole is greater than the sum of the parts.

Accordingly, CIO Insights are provided by Dean Lane, founder of Office of the CIO (www.oocio.com) and author of The Chief Information Officer's Body of Knowledge (John Wiley & Sons, 2011). His insights focus on how CIOs may leverage their understanding of these converging technologies for CIO success to deliver the business value of IT for digital businesses.

Transformation, Synergy, and Innovation through the Cloud1

Technology has become an extremely important part of many people's lives. It is having an impact and successful effect on their goals in both their professional and personal lives. Gradually, they are having more alternatives and more flexibility in the technology they use every day, and as that technology spills over into their professional lives, the line between personal and professional is blurring. People want to be able to choose what technology they use or operate, and they increasingly want to use that same technology in all aspects of their lives, not just either at home or at work.

Actually, according to an analysis by Unisys conducted by International Data Corporation (IDC), 95 percent of information technology personnel use at least one self-purchased system at work. The analysis also found that information technology personnel “report using a combination of four client devices and several third-party plans, such as online sites, in the course of their day.” The Unisys-IDC analysis also revealed a somewhat worrisome difference between what information technology personnel are actually using at work and what their organizations believe they are using. For example, “69% of [information technology] workers say they access non-work-related online (Cloud) sites, while only 44% of their organizations evaluate this to be the scenario” (Unisys 2012).

For IT, it's about understanding usage and creating a balance of goals and enterprise requirements. Cloud technology, without a concern, creates risks to the business such as to security and compliance. However, there are also many benefits to the cloud that organizations can implement with the right design and technique. People and employees like their cloud technology because it makes it much easier for them to be connected with others, it is convenient for exchanging information, and it all functions together. Significantly, for organizations, the amount of data that can be accessed, analyzed, reviewed, and used to benefit the company represents tremendous benefits. Those benefits that are there for the taking by organizations require a partnership between the information technology department and other functional business units. To get the right balance—to decrease the risks and increase the benefits—in some circumstances could mean using certain consumer technology in the workplace and in others it could mean providing enterprise alternatives that will keep both clients and professionals excited.

Information Technology Revolution.

The landscape of the technology architecture is being changed by employees who are carrying out their own alternatives to buy, learn, and use a variety of well-known cloud consumer technical improvements and program alternatives to get things done in the workplace.

These improvements and alternatives are challenging and reducing old restrictions in the work environment. At work, at home, and everywhere in between, tech-savvy employees and clients are using the same successful, accessible alternatives and plans. From smartphones available in the open market to iPads to websites and instant messaging, people are staying knowledgeable, linked via the cloud and successful in their professional as well as their personal lives. Accelerating the situation are changing usage needs of an always-on atmosphere and anytime/anywhere accessibility that is primarily changing support and service requirements.

This cloud-based consumer-powered IT architecture is already turning conventional IT styles on their collective heads. It's a successful new way to operate that will boost companies for years to come and usher in a new design of business productivity. And yet, unfortunately, most companies are not ready to take advantage of this cloud-based productivity increase.

Some of the latest Unisys research, conducted by IDC, shows a distressing gap between the actions and goals of new “iWorkers” and their employers' capability to deal with, secure, and support this movement and then implement it. The iWorkers are not so much demanding change as they are generating it through contract usage motivated by flexibility and interconnectedness. While iWorkers are very familiar with available capabilities and are adept at recognizing the value of technological innovation, they have little comprehension of the security risks, administrative concerns, and additional administration resulting from a huge launch of client gadgets and plans into the work environment. When the enterprise embraces this new paradigm, it means improved productivity from new ways of connecting. Additionally, the cloud will provide a sharp competitive edge over the competition. Those IT organizations that choose to implement the opportunities and facilitate these changes will earn a reputation as a contemporary organization offering a flexible, agile work environment that is just as secure as those that do not embrace this change (Unisys 2012).

Organizations, meanwhile, are still mostly dealing within the constant, command-and-control IT styles of the past. Those styles are very good at addressing risks and expenditures, but they sometimes prevent the organization from generating the immediate benefits obtained from the cutting edge. They also lack the consideration of improvements found by designing for productivity.

To administer the full power of this new productivity architecture, companies need to update their IT activities in order to:

  • Manage and support these well-known client technologies.
  • Protect significant information and alternatives against online hackers, malware, and other widespread client threats.
  • Offer the engaged app actions that clients are looking for when transacting with their suppliers.
  • Manage the estimated fourfold improvements that these off-the-shelf apps can bring while incorporating the necessary changes into the IT infrastructure.
  • Attract and sustain the new technological innovation of employees coming into the firm.

Companies that take the initiative and implement the new cloud architecture being spawned by this consumer-powered IT will find that the user acceptance is incredible, employees are more engaged and successful, the capability to leapfrog is enhanced, and, yes, they even obtain cost avoidance (Preston 2011).

Root of IT Consumerization.

Anyone who views the consumerization occurrence as being encouraged by just technology is missing an important point. The real change—and why it's gradually not an IT selection—is in the enterprise itself. The 1950s were a military-style “company man” enterprise, which was an outcome of the incredible influx of militarily trained World War II soldiers returning to the staff. In the 1960s and 1970s companies found benefits not only from individuals but also from teams and other types of associations. This beginning saw a decomposition of the enterprise into a thinner style with less middle-level experts and more staff energy (Gruman 2012).

This became amazingly codified using methods from administration experts such as W. Edwards Deming. His use of Six Sigma as well as workers' co-ownership and Toyota's “anyone can quit the setup line” perspective were a new way of operating. The 1990s and early 2000s saw a continuous hollowing out of centralized administration as a result of part-time work, contracted work, and the alternative of strategy work through programs (in organizations that mostly had no individual-empowerment culture).

That gradual progression eventually left many organizations with a smaller set of knowledge workers being maintained because they could think for themselves, as well as use their feelings and knowledge to generate revenue, client support, items style, or other various functions (Gruman 2012).

Information Technology Personnel Living in a Fool's Paradise.

The unpleasant reality for IT and enterprise leaders is that most are managing in a fool's paradise when it comes to the cloud paradigm. Recent IDC research reveals that although 40 percent of IT choice creators say they let workers access enterprise information through the cloud from employee-owned gadgets, 70 percent of workers say they access enterprise information that way. That means in many organizations IT has no real control over what is actually developing in the environment it is managing. IDC's analysis also reveals that the use of individually run devices is and will continually increase (O'Neill 2011).

Other IDC studies have shown some IT detachment from the consumerized technological innovation that is already within their own organization. Let's look at an example of the mismatch between IT's and users' opinions of guidelines with regard to who will pay for cellular services. IT believes that the enterprise decides and immediately will pay for business-related accessibility that it implements by distributing only BlackBerry devices to customers. Users of other cellular technologies say they will accept the expenditures themselves or allocate them back to the company as a cost. In other words, these IT organizations see the BlackBerrys as standing for the preconsumerization state of their organizations whereas their users see other personally provided technologies as the path to increased productivity (O'Neill 2011).

Information Technology in the New World.

The consumerization of IT, enabled by the cloud, requires a different way for many in IT to think, as it begins with soft principles and needs IT to share possession of administration and technological innovation selection with enterprise workers and their business divisions. So as the consumerization pattern is motivated by soft people concerns, an excellent idea to explore is that the administration reaction to it be based in people techniques (Kemp 2011).

On the technological innovation side, the approach would be to use guidelines as opposed to firm limitations to guide workers to the right results while enabling appropriate independence and imagination. It says the IT monoculture at the end point stage is a dead end. Instead IT should think of technological innovation as an “onion cloud” with several layers. The external, employee-oriented layers should be versatile and easily tailored to the individual, while core IT processes should be consistent and secured as much as possible. For example, allow any cloud application that conforms to your program guidelines but add levels of validation and safety measures such as protection for those online functions that are truly susceptible within the system. Even if you allow personnel to move their work group to the cloud and access it from an iPad, it doesn't mean that the same personnel can access your HR information resources.

The bad part is that not all the technological innovation is available to deal with this layered onion approach. The view of detailed privileges administration is hardly ever integrated into common business information items or techniques, and even more rarely into cloud applications and gadgets. Another thing to remember is that the cloud is not new. Payroll provided by a third-party service provider began this voyage. The Internet took it to a whole new level, as data became unbounded, not just processing functionality. Yet not only have companies lived through this, but they've benefited greatly from that new power. Think back to the view that prevailed then and remember how stringently controlled it was. End users with their own computing resources once seemed terrifying, but it ended up not being so bad. Then you designed (as it became clear you had to) ways to take advantage of the enhanced capabilities in a secure way. Now utilize that same thinking when considering this latest wave of technological change (Kemp 2011).

Security Challenges Raised by the Cloud.

Generally, IT organizations offer to run personal computers and laptops interacting within the business's trusted network or via a successful, effective, and properly secured virtual private network (VPN). Now, with the bring your own device (BYOD) model, you have customers making IT choices from outside the trusted environment using their own personal computers or mobile devices. The substitution of IT choices outside the trusted zone for IT choices in the trusted environment is developing, and later on IT segments will contain several on-premises and off-premises choices.

This change in IT choices from within to outside the trusted zone is increasing the overall cost to businesses, but this cloud capability is also broadening the use of IT within those companies. Generally, IT has been about automating the centralized system worker's environment circa 1970. Think of the vintage inbox and outbox and how they are being replaced by outsourced providers, and in many cases texting or instant messaging. The consumerization/bring your own (BYO) phenomenon has IT providing services that require broadening capabilities to all customers within an organization. Many customers who typically may have not used the cloud (e.g., scientists, top income earners, etc.) are now being given use of devices and programs to produce new productivities (O'Neill 2011).

Some may characterize movement to the cloud as ascending but still a far way off. Vendors and others portray that an organization is behind the times if it is not fully embracing the cloud. That being said, and given that most enormous companies don't like to change something that functions (e.g., many around the world are still interacting with mainframes), it's difficult to see companies looking to instantly rip out something that is currently part of their IT structure. This indicates that business and IT will be providing several on-premises and off-premises IT choices with the off-premises-based IT choices incrementally and gradually improving in flexibility, capabilities, and functionality. But no matter what this pattern of clouds and hybridization represents within IT, organizations right now are suffering from a significant task of managing and complying with security concerns. To cope with increasing demand and still protect the company's data, IT must have end-to-end knowledge and administration over clients, plans, servers, and devices. This will allow IT to ensure that the business is properly secured while still being nimble enough to easily provide solutions to changing business conditions. Typically, this involved getting and obtaining on-premises devices, servers, and plans. Now the same type of security capabilities must be utilized for IT technologies that are outside the trusted environment and are not directly managed by the IT department.

So just as there is a multibillion-dollar market for PC administration (e.g., antivirus, etc.), certainly a comparative market for cloud and cell phone administration will eventually evolve. In much the same way that there is a big market for provisioning clients and offering them personal sign-on to on-premises systems, such as those of SAP and PeopleSoft, there is little doubt that a large market will appear for SaaS solutions where clients can have a single sign-on to many systems.

It remains to be seen if the classic on-premises pushed security model organizations such as Symantec, McAfee, or Computer Associates can properly switch to a consumerized and cloud-based method for providing information security. Also yet to be answered is whether the new cloud-based organizations such as Google or Salesforce.com will provide these capabilities or if one or more pure-play small businesses can develop the requisite capabilities and offerings. At the same time, IT organizations are now looking at available options for getting on-premises IT security alternatives and also investigating a personal set of best-of-breed solutions for off-premises IT security alternatives, as well as exploring whether they can use one solution to, for example, secure both PCs and mobile phone devices (“Consumerization of IT Gone Wild” 2011).

The prospective drawback of inadequate knowledge and functionality to successfully administer security over off-premises IT alternatives may prevent realization of some of the benefits even as productivity is enhanced by new BYO devices, plans, and services. Established organizations, the new cloud-based organizations, and lots of venture-backed small businesses are attempting to cope with those concerns that in the end will further increase the effectiveness of a BYO cloud-based IT group.

The Use of Business Intelligence in the Cloud Is a Game Changer.

The use of business intelligence (BI) in the cloud is what is creating an alliance between chief marketing officers (CMOs) and chief information officers (CIOs). This will be the first of several alliances between the CIO and business unit leaders. The data most readily available enables companies to gain insight into consumer behavior, identify sales opportunities, and make data-driven decisions without hefty investments in IT infrastructure.

The CMO-CIO alliance is a prime opportunity for CIOs to better collaborate with an organization's other business leaders. In fact, IT leaders with the right cloud know-how can help drive revenue and reduce costs—achievements that are likely to impress other business leaders and create opportunities for additional alliances.

But as more and more companies migrate from on-premises to cloud BI, challenges arise. Here are the five most important issues that IT leaders need to carefully consider when evaluating cloud BI:

  1. Deliver trusted data.

    Blending disparate sources of data within a cloud BI solution is key to deriving actionable insights about your business. Unfortunately, inaccurate and untrustworthy data can significantly skew results. Whether it's customer contact details in a CRM system or inventory reports generated by an ERP tool, IT leaders must both properly test and validate algorithms and always ask the right questions of the data to get the right answers.

  2. Consider a hybrid model.

    There's no such thing as a cookie-cutter approach to BI. While a growing number of companies prefer cloud-based BI solutions to on-premises ones, in-house hardware is still important. For instance, companies extracting valuable consumer intelligence or conducting traditional financial trending analyses using large volumes of highly sensitive data are likely to prefer the control and security provided by an on-premises BI system. The secret is having the next-generation infrastructure in place to support multiple approaches to BI.

  3. Keep your data secure.

    Security concerns continue to arise around cloud-based and BI solutions. The good news is companies can take matters into their own hands. First organizations must figure out what data can be put in the cloud safely and securely. Next, it's necessary to ensure that a cloud BI provider offers network segmentation through firewalls, up-to-date security patches, password protection, and security management services so that the same levels of data protection can be achieved as with an on-premises setup.

  4. Build the right infrastructure.

    Managing a cloud strategy is no easy task. That's why it's critical that IT leaders have the necessary infrastructure capabilities to support cloud BI. This requires IT leaders to design and communicate with the CMO an integration plan so that corporate data as well as big data from various sources can be seamlessly migrated to the new cloud system. This effort must be conducted working hand in hand with the CMO and other business line leaders to ensure that a next-generation infrastructure supports not only cloud BI but also business goals.

  5. Facilitate change management.

    It's common for many cloud BI tools to be largely underused. That's a shame given the time and money invested in cloud BI. Fortunately, greater adoption is possible by offering the CMOs and other employees extensive training in BI tools. Proper change management as well as educating employees on how they stand to benefit from a BI system's capabilities also requires plenty of up-front planning. After all, making the most of technologies like cloud BI can help companies save money that can be reinvested in growing the business or in strategic projects.

Effects on the CIO.

While the use of the cloud and personal devices such as smartphones, notebooks, and other products on the market is creating more effective and efficient personnel, it is handcuffing many IT departments. For every sales rep using his or her personal iPad to access enterprise e-mail or CRM, there are IT professionals behind the scenes having difficulties dealing with the intersection of personal devices and enterprise detailed information, and making sure that everything is complying with policy (O'Neill 2011).

Many cloud and consumerization of IT methods are hit-or-miss, rattled and shaken by protection issues and unclear detailed recommendations about how to administer them or provide the proper security, according to a frontline study of 750 IT professionals conducted by Point of View Analysis (Gibbs 2011).

But despite the benefits to personnel, the cloud and consumerization of IT are a thorn in the side of most IT departments, according to the research. Most (82 percent) surveyed say they are concerned about the use of individual devices for work requirements, with the biggest situation being potential program security breaches (62 percent), followed by possible loss of customer enterprise data (50 percent), potential theft of intellectual property from home (48 percent), and issues with compliance requirements (43 percent).

As with any change in a business, the cloud and consumerization of IT will become a priority, and big changes will occur within IT to aid in the use of personal devices at work. It's a certainty that this will not be going away soon.

Conclusion

All in all, one will find that use of the cloud will grow and it is something that is going to make your life interesting, for want of a better word. It is not certain what the end user side of the IT catalog of your upcoming services will look like. However, it is fairly certain that the baseline services will have to support nothing but wireless connectivity to diverse mobile devices utilizing a cost-effective strategy characterized by details all over the place driven by comprehensive security methods. And may the gods help you if you're in a regulatory industry.

With that as the impact on the CIO, there's only one answer on what to do: Change; take the alteration. Be sensible. You know that you are already attached to the reins of the enterprise. The items exercising the future are on their way and coming directly at you. Not only will these items defy conventional procedures, but someone has jammed the velocity controls to “comprehensive on.”

Note

References

  1. Castiglioni, F., & Crudele, M. (2013, October 22). Design an SoE ecosystem to support rich user experiences. IBM Corporation. “Consumerization of IT Gone Wild.” 2011. Network World, 28(13): 7.
  2. Friedman, Thomas L. 2005. The World Is Flat: A Brief History of the Twenty-First Century. New York: Farrar, Straus & Giroux.
  3. Gibbs, M. 2011. Gibbs, M. 2011. “IT Consumerization: It's Biblical!” Network World, 28(20): 34.
  4. Gruman, G. 2012. “ The Real Force Behind the Consumerization of IT.” InfoWorld.
  5. Kemp, T. 2011. “Consumerization of IT Raises New Security Challenges.” Forbes.
  6. O'Neill, S. 2011. “Consumerization of IT Taking Its Toll on IT Managers.” CIO.
  7. Preston, R. 2011. “Consumerization of IT Is No Fad.” Information Week.
  8. Unisys. 2012. “Consumerization of IT.” Retrieved January 18, 2012, from www.unisys.com/unisys/ri/topic/researchtopicdetail.jsp?id=700004.
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