Trends

Technology Poised For Expanded Deployment

Carlota Perez of Cambridge University has demonstrated that economic “revolutions” last 50-60 years and have three major phases. The current Information and Telecommunications revolution is at the beginning of the Deployment phase.

Source: Based on Technological Revolutions and Financial Capital: The Dynamics of Bubbles and Golden Ages, Carlota Perez; IBM 2004 Annual Report

 

Gartner Predicts Beginning of New Growth Wave

Source: Gartner, 7 Year Cycles in Technology, September 2007

 

Key Technology Industry Trends

Near Term

  • Scale, Critical mass
  • Integrated solutions
  • Globalization
  • Excess capacity
  • Software as a Service
  

Implications: Capitalizing on Technology Trends

  • Consolidate vendors who failed to catch the collaborative wave and reposition them for the next wave or run them out for cash
  • Exploit gaps in the “stack wars”, fill in the “white spaces” for larger vendors
  • Identify industries or departments with limited deployment of technology
  • Focus on technologies that drive productivity gains
  • Identify convergence opportunities between technology, media and telecommunications

Long Term

  • Digital Services
  • Virtualization
  • Commodity computing
  • Consumerization of IT

 

Majority of Client Enterprises on Upswing of Innovation Cycle

Source: 2007 McKinsey/Sandhill Software Customer Survey

 

Business Model Innovation Key to Operating Margin Growth

Business model innovation is key

A recent survey of 765 global CEOs conducted by IBM revealed that deep business model innovation is critical. Product, service and operational innovations remain important, but competitive pressures have pushed business model innovation much higher on the CEOs’ innovation agenda. And for good reason, as financial analysis revealed, companies that put more emphasis on business model innovation experienced significantly better operating margin growth (over a five-year period) than their peers.

Source: “Expanding the Innovation Horizon,” The IBM Global CEO Study 2006

 

Technology as the Driver of Competitive Advantage

IBM CIO Leadership Forum Survey 2006

 

“Eighty-Four percent of CIOs surveyed believe that technology is significantly or profoundly transforming their Industries.”

“Only sixteen percent felt their companies were taking full advantage of IT’s potential.”

Source: IBM CIO Leadership Forum Survey 2006