Doss Ross offered The Circuit audience a review of the top 10 tech trends that could impact your business -- and some ideas to turn your competition into an encyclopedia salesman. Doug Ross is Vice President and Chief Technology Officer at Western & Southern Financial Group, a Fortune 500 diversified financial services organization. The Circuit is the IT Association in the SW Ohio Region since 1994 www.thecircuit.net

1. Information Services R&D
October 29, 2010
Top 10 Technology Trends for 2011
Impacting Marketing, Sales and Service
CONFIDENTIAL

2. 2
#10 - Microtargeting
• Consider Issues with Traditional Analog Marketing
Assets (TV… Radio… Print… Direct Mail… Catalog…)
– Carpet-bombing
• Given one thousand impressions (1 CPM), how many
impressions go to the wrong segment or unqualified
prospects?
• IOW, some level of waste is tolerated by definition
– Lifespan
• Lifespan of marketing message extremely short
(newspaper or catalog thrown in trash, commercial ends,
etc.)
• Turns on, turns off --- very little latent measurable value

3. 3
#10 - Microtargeting
• What if you could target the right customer at the right
time?
• And not just for paid search ads, but for display ads too?
• And you could do so through multiple media?
– Web
– Mobile web
– TV
– Video
– Search

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#10 - Microtargeting
• Aggregators assemble demographic/psychographic
into packages available to advertisers
• “I want to target a 40 Y/O M, IA $500K, HHI $100K, FICO
700+, married w/kids, in ZIP 45242, between 6 and 9p…”

5. 5
#10 - Microtargeting
• Microtargeting addresses some of the issues related to
analog media:
– Laser-guided
• All responses (acquisitions) are tracked
• For every 1,000 impressions (1 CPM), once offer has
been “tuned”, vast majority should go to responsive
segments
• Focus on CPA (cost per acquisition), not CPM
– Lifespan
• Much longer lifespan for assets through retargeting
• SEO, Video, Blogs, Mobile, Rich Media (e.g., Games),
Online Display…

6. 6
#10 - Microtargeting
Your online behavior also changes
advertiser targeting
Example of personalized re-targeting:
• Visit watch store online and check
prices of Invicta SubAqua diver’s
watch
• Visit Cincinnati.com, see display ad
for the watch
• Watch Dish Network, see TV ad for
divers’ watches…
• 55 Y/O M
• 45242 ZIP Code
• HHI $100K
• IA $500K
• FICO 720
• Married, 2
Children
• …
• Diving
• Diver’s watches
• Invicta brand

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• Takeaways:
– Marketing: response rates increase when offline and
online campaigns are developed in harmony
– Marketing: online side should consider microtargeting
(example agencies include Aegis, AKQA, Dentsu, Havas,
IPG, Omnicom Group, Razorfish, WPP, etc.)
– Marketing: creative and A/B testing (examples: Adroit,
Bridge, ChoiceStream, Teracent, Tumri, etc.)
• Watch for waves of M&A in this space because it is
highly fragmented
#10 - Microtargeting

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#9 – Privacy Wars
WSJ, 8/2/2010

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#9 – Privacy Wars
• The 50 most popular websites installed an average
of 64 web trackers (cookies, Flash cookies, etc.)
• These 50 sites account for 40% of U.S. page-views
• A WSJ test found that they installed 3,180 trackers
• Dictionary.com had the highest ‘exposure index’ of
the top 50 sites
• MSN.com trackers included age, ZIP, gender, HH
income estimates, marital status, children, home
ownership, etc. using Targus
WSJ, 8/2/2010

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#9 – Privacy Wars
• ‘Flash cookies’ are used by ad networks to
automatically reinstall tracking cookies
• They use Adobe’s Flash technology
• Originally intended to remember user preferences
• Can be used by data collectors to reinstall
conventional cookies that users had deleted
• “Adobe condemns the practice”
• Since July, six (6) lawsuits have been filed in CA
seeking class-action status alleging violations of
federal privacy laws by tracking companies
WSJ, 8/2/2010

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#9 – Privacy Wars
• Takeaways:
– Legal: ensure your privacy policy and related
disclosures conform to best practices
– Marketing: make sure that the advertising networks,
agencies and other intermediaries you adhere to IAB
(Interactive Advertising Bureau) privacy principles and
other best practices to ensure legal, ethical compliance
– General: keep abreast of changes in privacy features and
requirements of the major platforms (e.g., Facebook)
• Stay tuned for – possibly – dramatic changes in the
online advertising world related to privacy

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#8 – Cloud for Business
• Yes, Cloud is a buzzword
• But, yes, it’s real
• Let’s define some terms:
– BaaS – Backup as a Service (rent cold storage)
– CaaS – Computing as a Service (rent-a-VM)
– IaaS – Integration as a Service (rent-an-ESB or ETL)
– PaaS – Platform as a Service (rent a server)
– SaaS – Software as a Service (rent an application)

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#8 – Cloud for Business
• CaaS: typically targeted to large enterprise,
provides globally available, fault-tolerant server and
storage that can be managed remotely (ex: Verizon)
• IaaS: Integration in the cloud (ex: SnapLogic)
• PaaS: typical target is SMB; spin up servers and
pay for bandwidth and storage (ex: Amazon EC2)
• SaaS: all sizes of business
– Productivity: Google Office, Microsoft Office365
– Horizontal: Microsoft Hosted Dynamics, SalesForce
– Vertical: Cloud9Analytics (for Sales), GridDynamics

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#8 – Cloud for Business
• Takeaways:
– Legal, Compliance: ensure proper handling of PII and
other regulatory restrictions
– IT: follow SEI or similar selection guidelines to
vet/evaluate/compare SaaS/PaaS/CaaS providers
– IT: integrate identity management to minimize
provisioning, access rights, audit (e.g., Centrify) issues
• Prediction (FWIW):
– Solutions providers: offering professional services that
support turnkey integration of these solutions into
businesses (of all sizes) will be an area of opportunity –
for example, single sign-on

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#7 – Tablets for Sales and Field Reps
• For many sales and other field reps, tablets will replace
laptops as the preferred traveling device
• Why? Fast boot, lighter, “cool factor”, easier to use in
support of a conversation/presentation:

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#7 – Tablets for Sales and Field Reps
Takeaways:
• If they aren’t already, most sales and field reps will
demand tablets (especially those who sell 1-on-1)
• Probably an incremental hardware spend for
organizations because a tablet doesn’t replace a laptop
for a heavy keyboard user
• Hard to quantify an ROI, but it won’t matter
Prediction (FWIW):
• Android-based tablet with slide-out keyboard and pop-
up display will debut by end of 2012; could herald the
end of the conventional laptop

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#6 – The Business of Social Networking

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#6 – Facebook’s ‘Like’ Button

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#6 – Facebook’s ‘Like’ Button
• Introduced April 2010; as of 09/30/2010 ‘Like’ has
been added to over 2 million sites
• A Facebook user who "likes" content has 2.2 times
the number of friends than typical Facebook user
• 5 times more likely to click on external link
• For news publishers: average age of Facebook user
who clicks on ‘Like’ within a news site is 34 (vs. 53
for typical newspaper subscriber)
• ABC News reported 190% increase in traffic;
Gawker 200%; Sporting News 500%
CNN, 09/30/2010

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#6 - Recruiting
• LinkedIn used by 60% of Fortune 100 for recruiting
• HP says it has staffed all levels including execs

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#6 – The Business of Social Networking
• Takeaways:
– Pick a function: HR/Recruiting, Marketing, etc.
– Move up the maturity chain: watch/listen; join;
comment/contribute; create; build community
– Legal: plenty of regulatory hurdles for certain industries;
make sure your Legal partners are in the trenches with
you
• Prediction (FWIW):
– Social networking platforms will become the dominant
destination of advertising dollars by 2020, could be
hastened by convergence of web and TV

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#5 – TV and the Web, Finally Together
• Old model: central planners at CableCo HQ decide
what channels you receive and where you get them
• New model: consumers decide what channels they
get and which devices they use to consume media
• AppleTV, GoogleTV, Slingbox, etc.

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#5 – TV and the Web, Finally Together
• Google said to be flanking cable providers by
building alliances with TV makers, Dish Network,
DirecTV and device manufacturers
• GoogleTV “harnesses the power of Google search
to put traditional TV programming and Web videos
all in the same place”
• Links TV, web, home entertainment devices,
smartphones (the new remote) and apps
• Privacy factor: tracks viewing behavior on
household basis – perhaps individual using phone
CNN, 09/30/2010

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#5 – TV and the Web, Finally Together
• Takeaways:
– This is a situation to monitor for marketers
– Learn about AppleTV, GoogleTV and Slingbox
– Rapid changes could occur, similar to the rise of the
iPhone, if someone develops the right convergence
device
– Mitigating factors: legacy content providers and cable
providers aren’t happy (CNN: “Some networks blocking
shows on Google TV”, 10/22/2010)
– Convergence will happen, but will be delayed only by
some refusing to recognize digital reality (e.g., Napster)

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#4 - Open Source
Question: What do Digg, Facebook, Flickr, Google,
StumbleUpon, Twitter, Wikipedia, WordPress, Yahoo
and YouTube have in common?

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#4 - Open Source
Answer: All were created using elements of the open
source LAMP stack
What is LAMP?:
• Linux OS (CentOS, RedHat, SUSE, Ubuntu…)
• Apache Web Server
• MySQL Database
• PHP or Python Programming Languages

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#4 - Open Source
Why is LAMP so successful?
• Free to use; maintenance and support available in both
community-based and commercial forms
• Massive development community means rapid
development cycles (consider the rise of Firefox as an
example)
• Completely extensible and open to features suggested
by anyone
• Security (e.g., SE Linux, AppArmor)
• Scalability
• Most of the “Cloud” is powered by open-source

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#4 - Open Source
Rise of the Open Source Applications
• BI: Jaspersoft, Pentaho
• BPM: Intalio; Rules Engine: JBoss Drools
• CMS: Drupal, Joomla, WordPress
• CRM: SugarCRM, Centric, vTiger
• Development Tools: Eclipse, NetBeans IDE
• Enterprise Integration: JitterBit, Mule ESB, Talend ETL
• ERP: Compiere, Openbravo
• Learning Management: Moodle
• Network Management: Cacti, Nagios
• PBX: Asterix

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#4 - Open Source
Takeaways:
– Have an open source policy in your organization? If
not, you probably need one
– Any medium- to large-company is using open source
already (although management may not know it!)
– Open source is disruptive; expect continued
upheaval in companies combating it:
• Ray Ozzie’s Departure
• MSFT abandons its Windows Live Spaces blogging
platform (7 million blogs) to open source WordPress
• Patch Tuesday: Spate of Zero-Days in ASP.NET
– Will significantly alter software CBAs

30. 30
#3 - Mobile Web
Annual shipments of web-enabled smartphones
poised to outpace desktops and laptops combined
in 2012 (source: MS)

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#3 - Mobile Web
Comparing time spent in media channel versus
advertising spend yields significant disconnect
(Source: Mary Meeker/Morgan Stanley)

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#3 - Mobile Web
Dichotomy: Internet targeting for particular marketing
segments superior to other media types, yet CPM
remains depressed

33. 33
#3 - Mobile Web
Aside from game consoles, Apple iPad was fastest-
selling consumer computing device in history
(source: MS)

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#3 - Mobile Web
Takeaways:
• Mobile web search projected to surpass desktop/laptop
search by end of 2012; how will your website adapt?
– Mobile search results with enhanced location awareness
(offer “proximity coupons”)
– Monetization of local offers (e.g., FourSquare)
– Adding a click-to-call feature in ad increases CTR rate
(reportedly 5-25%); increases relevancy of inbound calls
• Expect more “instant shopping research” with frequency
of use correlating non-linearly to unit price minus $10

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#2 – Your New Wallet: the SmartPhone
Starbucks has now expanded its mobile payment
application (vendor: mFoundry) to 1,000+ stores

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#2 – Your New Wallet: the SmartPhone
Takeaways:
• Monitor: watch for simultaneous upgrades to retail POS
systems and mobile apps from payment card industry
• First to get it “right” will revolutionize the wallet
Prediction (FWIW):
• If a mobile application could securely store and present
your key documents (e.g., driver’s license, social security
card)… and if enough governmental momentum got
behind the effort to accept this presentment… the physical
wallet goes away

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#1 - Information Warfare
• This is a Programmable Logic
Controller
• Specialized computer that
controls manufacturing,
processing and conversion
operations in plants
• Programmed with ‘code-
blocks’ that can turn valves on
and off, check sensor levels,
uhm, accelerate centrifuges…

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#1 - Information Warfare
• In a large facility, scores of
PLCs may operate in a
networked configuration to
facilitate complex operations
• The PLCs are programmed,
monitored and managed by
control systems
• These supervisory control
systems are called SCADA

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#1 - Information Warfare
• In early 2010, researchers
detected W32.Stuxnet,
which used four separate
zero-day attacks
• Found to target Siemens
WinCC SCADA software,
modify code-blocks, install
other back-doors, cover
tracks
• Iran’s working centrifuge
count reported to have
dropped significantly

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#1 - Information Warfare
• Stuxnet = Cyberweapon = covert warfare?
• No reason that financial and corporate espionage
targets are immune from targeted attacks
• Blackhat 2010 Conference: “SAP Backdoors”

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#1 - Information Warfare
• Takeaways:
– Internal Audit: do your IT general controls meet best
practices (policy, incident response, access rights, …)?
– External Audit: do they agree?
– Organizational issues: how do your hard-dollar and soft-
dollar expenses match up with peer companies?
• Prediction: it’s going to get much, much worse ---
lots of soft targets, increasing numbers of
attackers, increasingly sophisticated tools to speed
up attacks and little coordination between
defenders

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Questions
Answers not guaranteed for timeliness, completeness or accuracy
CONFIDENTIAL
10. Micro-targeting 5. TV and the Web, Finally Together
9. Privacy Wars 4. Open Source
8. Cloud for Business 3. Mobile Web
7. Tablets for Sales and Field Reps 2. Your New Wallet: the SmartPhone
6. The Business of Social Networking 1. Information Warfare