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The Hybrid Enterprise Demands An IT Shift
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PeterG
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PeterG,
User Rank: Author
12/9/2013 | 1:38:58 PM
Re: Cloud as an enabler
Yah I agree 100%. Especially like fundamental advice to focus on customers and outsource where you can - now 'cloud' has more options <<maybe it's worth looking at how to leverage third party providers to get you back to the real purpose of your business, to drive value for your customers.>>
Stratustician
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Stratustician,
User Rank: Ninja
12/8/2013 | 6:25:15 PM
Cloud as an enabler
The real benefit of cloud for these Enterprises will be that they can use it to fill the holes that come from operational or resource deficiencies.  Have issues with maintaining IT assets? Great, outsource it to a cloud provider.  Security problems?  Instead of hiring tons of IT staff, why not look at augmenting your current teams with additional services.  But most importantly, look at how your organization is using its resources, if there are more efficient ways to do things, then by all means, start the discussion.  Cloud is meant to augment, not necessarily replace.  The key to remember is that at the end of the day, if your are spending resources on services and processes that do not support your customers or your core business, maybe it's worth looking at how to leverage third party providers to get you back to the real purpose of your business, to drive value for your customers.
Susan Fogarty
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Susan Fogarty,
User Rank: Author
12/6/2013 | 12:25:29 PM
Re: Not everyone is a digital business
PeterG, I remember VerticalNet! I guess we are talking about online versus offline business processes. But I think a lot of that is merging as more internal company processes become networked to branches, partners and suppliers. There is certainly a lot of potential to consider.
WKash
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WKash,
User Rank: Author
12/5/2013 | 11:16:48 PM
Cars & Code
Another way at looking at how the car business has changed: Today's high end automobilies now rely on nearly 100 million lines of software code to run each car's climate control, transmission and other electronically-controlled systems. To put that in perspective, we were able to put a man on the moon using just 24,000 lines of code.

 
PeterG
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PeterG,
User Rank: Author
12/5/2013 | 10:41:53 AM
Re: Not everyone is a digital business
Good discussion. I try (not easy) to separate the business process opportunities/issues (e.g. ERP, internet enabled, mobile, etc.) from the business model itself. A manufacturer can become more effective/effecient using IT without any changes to the business model - and that is always a good thing. But when someone figures out a way to consolidate specialized B2B markets like wire or adhesives (a company called VerticalNet tried this during dot-boom and failed unfortunatley although it may now be happenning piecemeal) that could be a game changer. Two different issues/problems.
Susan Fogarty
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Susan Fogarty,
User Rank: Author
12/4/2013 | 5:48:35 PM
Re: Not everyone is a digital business
I also think every business is a digital business, or if it's not it should be. That doesn't mean the business is totally digital, but it takes advantage of the internet and computing processes where they make sense. You may just manufacture wire, but why wouldn't you want to be accessible to new customers via the Internet? And why wouldn't you want to optimize your business processes to use automation and be more efficient where you can?
PeterG
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PeterG,
User Rank: Author
12/4/2013 | 2:05:21 PM
Re: Not everyone is a digital business
Hi Terry, Granted IT is not transforming the core of many (most?) business, espeically those that do not interact directly with consumers. Yes, if you are a B2B wire manufacturer that is still your core regardless of how your supporting business processes (e.g. ERP, just in time, etc.) are changed by new IT capabilities. And I agree that Twitter is not going to do much for your B2B sales either. But in many cases the core business get's upset by the way in which IT changes the business model - classics include booksellers/Amazon. The core business with books being written and printed may not have changed but the sales channel is so radically different it changed the business and disintermediated specialized book retailers. I certainly know nothing about the wire business but there may be some model lurking out there that changes the buyer/seller relationships in a fundamental way using IT to facilitate.
PeterG
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PeterG,
User Rank: Author
12/4/2013 | 1:35:58 PM
Re: Carmaker's Core Business
Hi Rob, Agreed - IT integration in vehicles is becoming perhaps the key issue in some ways. But the use cases I was thinking about (ran out of space) addressed business models. Think of how Tesla is selling direct vs the control dealerships exert (where allowed by law) - much of it enabled by better access to information and on-line marketing. Also thinking about ZipCar where 'ownership' is redefined in ways we did not imagine. I would argue the auto industry business model is being re-defined in significant ways by IT but agree with you that the auto itself has not (although that may change with automated driving down the road).
TerryB
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TerryB,
User Rank: Ninja
12/4/2013 | 1:25:13 PM
Not everyone is a digital business
We are still a long way from that ever being true in certain segments. At least the way you mean it with social media, mobile phone apps, sensors linked to Internet, etc.

We are Mfgr which makes brass wire we sell to other manufacturers who make the final product for consumers. We use ERP systems, can deliver data to customers electronically and other computer related old school stuff. But are we going to need heavy analytics processing, iPad apps or mining for comments on Twitter anytime soon? Ever? Heck no.

Your position makes much more sense for businesses that sell directly to consumers. But there is still a lot of us that don't and we aren't going anywhere. At least not because we don't data-mine social media feeds anyway.
RobPreston
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RobPreston,
User Rank: Author
12/4/2013 | 1:24:59 PM
Carmaker's Core Business
Reliability, design, and horsepower (and price) still matter most to car buyers. I'm not sure that will change. But the IT-enabled entertainment, mapping, safety, and other "extras" will matter more and more. Car makers are now also software developers and integrators.


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