The New Technology Elite March 2012 Stanford Innovative CIO program

1. The New Technology Elite
Stanford Innovative CIO Program
March 2012
Book Amazon Page http://bit.ly/ymyY0m
Vinnie Mirchandani

2. Presenter Background
 Day job - help clients look for disruptive innovations,
vendors and economics
– Former Gartner analyst
– $10B in tech strategy and contract negotiations
 Night job – write two technology blogs
– Deal Architect – economics of technology
– New Florence, New Renaissance – how tech helps
innovate work, life and play
 Author: The New Polymath and The New
Technology Elite

3. Presenter’s Challenge
 21 book case
studies/guest columns
 400 pages
 2,500 innovation blogs
 One hour to present 

4. The mega-trends
The Consumerization of
Enterprise Technology
The Enterprising of
Consumer Technology
Tech users becoming
vendors, Tech vendors
becoming new best
practice leaders
Opportunity for IT to
become revenue/growth
versus cost focused

5. Users – tech focus shifts from process
to product
Smart Pen/Pad Echo records on special dot
paper. Also has recorder for
vocal recording.
Smart Shirt E39 with triaxial
accelerometer, processor,
storage, Bluetooth
Smart Shower IOdigital control display –
allow for much more complex
vertical spas
Smart Farm FarmSight – machine and
logistics optimization

6. Users – not just products, also
services
Smart Hotel room iPad for room service, wake
up calls, boarding passes,
room cooling and more
Smart Auto insurance Snapshot connects to insured
car diagnostic port and
collects driving patterns
Smart 911 center Each agent has 5 screens
which show caller info, GIS,
police radio activity, others
Smart Banking Mobile deposits and PayPal
email and mobile pays

7. Vendors – tech focus shifts from
product to process
Retail Dramatically better revenues
and customer satisfaction than
traditional retailers
Logistics Postal injections, Prime
shipping as business model
innovation
Financial transactions Fraud detection, money
laundering controls, micro-
payments over $100b a year
Sustainability Wind, geothermal, solar, other
clean investments. Data
Center innovations.

8. Vendors – more best practice leaders
Data center efficiency Prineville data center PUE of
1.07. Vanity free servers.
Natural Cooling.
Scale 1000 tweets/sec, 12000
queries/sec. Global impact
with just 500 employees.
Cloud flexibility AWS for launch like CityVille
20 m users in 4 months, then
private clouds
Supply Chain Global, insourced/outsourced
– 2 PCs a second, 2 printers a
second, server every 15 sec

9. Rise of the technology “switch-hitter”
– The technology “buyor”
– Baseball Ambidexterity
 Start young
 Practice both sides equally
 Only 15% of MLB hitters
– Tech ambidexterity Photo Credit: MLB
 UPS - “Half transport, half tech”
 3M – 46 tech platforms, 60,000+ products
 Washington Post CEO says “easier than
a decade ago”
 Microsoft CIO, ex Disney, GM

10. Amazon to Zipcar – no industry
untouched
– Don Graham – “sure Warren’s portfolio
has some untouched by technology”
– Buffett’s philosophy – invest in
“economic castles” with “unbreachable
moats”
– But portfolio has plenty of tech
 Coke – FreeStyle vending machines
 Burlington Northern – satellite based rail
warning system
 P&G – social media marketing, Tide high-
tech laundries
 GEICO – massive call centers,
Toughbooks for claims

11. Australia to Zanzibar – no country for
old products
– Estonia’s Tiger Leap – Skype, digital lifestyle
– Arab Spring – social tech fueled
– Roosevelt Island – smart parking, tidal power
– New Zealand – EFTPOS
– Western China – New “Orient Express”

12. 12 attributes of the Technology Elite
Elegant: In a world of flashing 12s
Exponential: Leveraging Ecosystems
Efficient: Amid Massive Technology Waste
Mobile: If it’s Tuesday, it must be Xiamen
Maverick: No Rules. Just Right.
Malleable: Business Model Innovation
Physical: Why test driving is still important
Paranoid: But not paralyzed
Pragmatic: Attorneys influence tech more than engineers
Speedy: In a new era of perishability
Social: Amid chatty humans and things
Sustainable: Mining the green gold

13. Elegant/ Virgin America
 Minimalist – Kindle • On-Demand in flying
“disappears”, Kinect • Huge variety of choices –
“evaporates” wifi, entertainment, sleep
 Google Doodles offset limit • Tibco Loyalty Labs,
of 28 words on home page innovative frequent flyer
 3D printing and benefits
crowdsourced design • Sustainability
 New Interfaces from cars to
cocktails
 Jonathan Ive, Robert
Brunner, Yves Behar,
design revolution
 d schools

14. Exponential/ RIM
 Apple – Pollock’s Toy • Slow feature rollout
• Also slow on ecosystem growth
Theatre to Brostache
• Tried to catch up with Super
 Google Android – over 500K Apps
developers in 3 years • May 2011 Adobe, MS, Android
 Amazon, Microsoft, US Binaries
• November 2011 Adobe de-
Govt, app stores galore
emphasis of Flash
 Tech Labor market impact
 Impact on enterprise
vendors like SAP
 Ecosystem care and feeding

15. Efficient/Facebook Prineville DC
• 150K sq ft. to start
 Flextronics - Workday • Custom specs like 1.5U chassis
Global HR project and triplet racks
• PUE of 1.07 – one of best in
 Empty Calories in tech industry
 Hillsborough County • Open Compute Initiative –
sharing unusual for industry
Tax Collector • Wave 2 – servers direct from
 Cognizant – ODM, de-emphasis of coal
telepresence and
Social Design

16. Mobile/Boeing 787 and HCL
 China – Xiamen, Qingdao, •787 global supply chain –
West Dreamlifter cargo plane
• Designed for growing global
 Brazil – tech manufacturing
traffic – 8,000 mile non-stops
overflow from China
• Composites =20% better fuel
 India – R&D/engg services – efficiency
HCL, Wipro, Persistent • Passenger comforts – less dry,
 Japan – components lower cabin pressure, lighting
 Data centers – Ireland, • HCL testing across supply chain
Singapore • Complexity of global supply chain
 Eindhoven – world’s = delays, but future advantage
“smartest city” - renewal

17. Maverick/Apple
 Maverick CIOs – Rob • 1000 Nos and 10 Gutsy yeses
• Foxconn loyalty in spite of
Carter, Randy Mott
challenges
 Maverick tech execs – • Retail foray in spite of being
Benioff, Ellison, Duffield, cautioned
Cuban, Nayyar • iPad after poor tablet record in
 Maverick tech co – SaaS, industry
• Doubling down on MobileMe
3PM, global roaming
failure
 Maverick products – • Investment in strategic
MusicLites, Eye-Fi, iPad components more than M&A
SmartCover

18. Malleable/Valence Health
 Business Model Innovation • Pay for service, data primarily
with insurance cos.
 eBooks – Apple versus
• Valence takes data from
Amazon
billing systems, scrubs with
 Music – MP3 to cloud Match SAS analytics
pricing • Move data and higher results
 Mobile phones – lowered -based fees to providers
carrier influence with • Advanced tools with 7
iPhones disease states – type 2
 Services – Cognizant diabetes, renal disease etc.
BPaaS
 Many enterprise vendors as
laggards

19. Physical/Taubman Shopping Ctrs
 GE WattStation Tour, Citibank • 10 of first 15 Apple stores at
Apple Store branch, Garmin Taubman malls. Now at 2/3 of
Chicago store, Boeing 747-8 malls
launch
• Bose, Sony, Best Buy Mobile
 High-tech retail churn –
CompUSA, Circuit City other high-tech tenants
 Best Buy – customer analytics, • High-tech seasonal events
services like Geek Squad, VC • New product launches –
investments, small footprint Nissan Leaf, Sharp Aquos etc
stores
 Apple as unexpected category
killer. Microsoft, Google retail
 Next-gen retail – Adidas, Trader
Joe’s, Zara, Mobile apps like
ShopSavvy

20. Paranoid/Wireless Aerial Surveillance
Platform
 Jailbreaks and Rootings • 14 lb Drone is dated
• Payload very modern – 1 Ghz
 Sony PS3 repeated Via motherboard, 32 GB
humiliation storage with 340 million word
 LulzSec, Anonymous dictionary, 4G dongle
• Can hack from above,
 Cyber-war – Estonia, others
intercept mobile calls
 Next-gen terrifying hacking • Mike Tassey and Rich
 Apple anechoic chambers, Perkins, off shelf components
hidden cloud data center only cost 6K

21. Pragmatic/Tech Attorney Ben Kern
• Patents/Trade secrets
 IBM Watson, Yahoo! • Developer contracts
and Hadoop • Labeling
• Protection of data
 Microsoft Kinect and • Warranties
PrimeSense • Service returns/recycling
• Cross-border issues
 Android’s legal journey
 A technology
“Apalachin”?

22. Speedy/Corning Gorilla Glass
 Rapid Product Iterations – • 1 Device in 07, over 400 in 11
• Corning used to bringing
OnStar to Garmin to Google
decades old stuff from labs
to OnStar FMV • Scaling rapidly plants and
 Rapid change competitive logistics
landscape - Whirlpool • Future apps – TVs, cars,
 Volatile Demand forecasting homes
 Physical to Digital Supply
chains
 Impact on Operations –
Groupon NetSuite

23. Social/Lexmark Genesis
• Printers as maligned devices
 Superbowl – • Several social, cloud features
convergence of • Design iterations – scanning,
conventional and social SmartSolutions Apps store
• Social launch
media
 Swag and social impact
 Dell and Radian6
 Gamification
 Toyota and Chatter

24. Sustainable/Google’s Green Initiatives
• Google Energy LLC
 Carbon footprint to • Wind, Geothermal, Solar
evolving definitions • RE < C project
• Hamina, Finland and other
 Apple’s Supplier Code DC innovations
of Conduct
 Conflict Minerals and
Rare Earths
 Packaging and
extended supply chains

25. Towards a more strategic IT
Elegant: In a world of flashing 12s
Exponential: Leveraging Ecosystems
Efficient: Amid Massive Technology Waste
Mobile: If it’s Tuesday, it must be Xiamen
Maverick: No Rules. Just Right.
Malleable: Business Model Innovation
Physical: Why test driving is still important
Paranoid: But not paralyzed
Pragmatic: Attorneys influence tech more than engineers
Speedy: In a new era of perishability
Social: Amid chatty humans and things
Sustainable: Mining the green gold

26. Next: Making the world around
technology also more tech-elite
Regulators
– NASA in Toyota sudden acceleration investigation
– Nuclear scientists in BP Gulf spill brain trust
– IAEA and Japan nuclear crisis
– Air France 447 Brazil investigation
Society
– Digital Divide
– Digital Addiction
– Digital Fingerprints
– Growing cyber-ethical challenges
Analysts
– Market analyst coverage of smart products and services
– Financial analysts and Amazon shareholder letter

27. Vinnie Mirchandani
Deal Architect Inc
1-813-884-4908
vm@dealarchitect.com
Photo Credits at
www.florence20.typepad.com