IT Leaders of the Now Economy

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AITP Spring Conference Williamsburg, Va. March
21, 2003
On the Way to the Real-Time Enterprise
Julia King
Management Editor
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Computerworlds Top 5 Mega Concerns for IT
Managers

• Enterprise Software Integration
• Emerging Web services business continuity in the
  supply chain
• IT infrastructure
• Leveraging for business benefit cutting costs
• ROI Information Economics
• Keeping the CFO happy managing partners/vendors
• Management/Careers
• Security/Privacy/Legal

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For many IT executives, integrating ERP and CRM
applications is akin to getting a root canal --
expensive and painful. -- NetworkWorld,
5/13/02
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Whats Not to Like?(The Benefits of Integrating
with Partners Customers)

• Shorter business cycles
• Increased number of new products and services
  brought to market
• Improved product and service quality
• Increased customer retention
• Higher revenue levels
• Reduced head count cost savings
• NerveWire survey of 162 North American companies

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Web services architecture will create an
environment where companies will be able to
access resources wherever they reside in
whatever enterprise.
View from the Business Side
John Hagel III, Harvard Business Review and CW,
Fall 2001
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Web Services in (User) Action

• GM connects internal apps to 8,000 auto dealers
• GM and partners keep existing systems in place
• More flexible in efficiently serving customers
• Citibank offers major payment processing engine
  as a Web Service to electronic markets
• Turns internal resource into revenue generator

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GE Global Exchange Fuel Quest, Inc.

• Creating a Web services-based EAI program
• Lets fuel distributors plug into GXS-hosted
  trading network of U.S. refiners
• Electronic bills of lading downloaded directly
  into financial systems
• In an industry where fax machines were a novelty
  a decade ago, this is a big deal
  (petroleum distributor)

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"We don't see Web services as the panaceathat's
going to replace everything else. But it does
appear to fit in the Web development space. I'm
more encouraged than I've been in a long time in
terms of interoperability."
GM Weighs In On Web Services
Tony Scott, CTO, General Motors
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Texas AM University Data Traffic Unsnarled

• Wealth of student, budget payroll info locked
  in legacy Adabas system on IBM 390
• Developed XML-based services using Entire X
  (integration tools from Software AG)
• Cost 1 million
• Result 50 cut in system development time
• Appeal platform programming neutrality of
  XML-based services

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IDCs Web Services Timetable

• 2002-2003 Inside the firewall
• Simplified app integration increased developer
  productivity
• 2003-2005 Controlled set of external users
• Simplified business partner connectivity richer
  app functionality subscription-based services
• 2005-2008 Fully dynamic search use
• Casual use of services new business models.

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If what you really need is not new applications
but to evoke greater access to those apps, XML
and Web services is a viable way to do
that." Analyst Attam Narsu
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The Big, Fat ROI?

• 83 of companies do not do ROI analysis
• Companies that do track ROI measure it to time
  lines and costs, not value.

Meta Group
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Where the Returns Are

• Return on Partnerships
• Return on Opportunities
• Return on Information
• Return on Innovation

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Title Who Moved My IT Job?
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Who Moved My IT Job?

• Offshore outsourcing
• More sophisticated tools for end users
• IT Infrastructure

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Keep The Faith!

• "Go out and move the world an inch."

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Julia KingManagement EditorJulia_King_at_computerw
orld.com