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Trends for 2011 Acceleration

Onlineandintouch

Clouds, Data, and System: 

Advancing technologies are  metamorphosing  traditional business models.

We  need to think strategically  for  new environment.

Emerging Internet technologies, increased computing power, and fast, pervasive digital communications are getting consumers get connected . Also we as managers must also find  new ways to manage talent and assets as well as adopt this new technology ,a  new thinking to our work 

Business  landscape has continued to evolve rapidly. Facebook, in just over two short years, has quintupled in size to a network that touches more than 500 million users. More than 4 billion people around the world now use cell phones, and for 450 million of those people the Web is a fully mobile experience.

The ways information technologies are deployed are changing too, as new developments such as virtualization and cloud computing reallocate technology costs and usage patterns while creating new ways for individuals to consume goods and services and for entrepreneurs and enterprises to dream up viable business models.

Sitting to evolve a Business Plan requires indepth analysis of the enviorment like never before because of the dizzing pace of change taking place every day every seconds

Brand owners are looking for new avenues and new road map to create a lasting experience for their brands and evolve the brand to a positive growth engine on sheer sale value/profitability 

With this thoughts in mind i would like to take our work next year into a new'drive' a growth booster to build better deliverables which are unique in character'the delta plus' and at the same time taking into consideration the new emerging trends and technology be it web or mobile 

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Value through co-creation 

In the past few years, the ability to organize communities of Web participants to develop, market, and support products and services has moved from the margins of business practice to the mainstream. Wikipedia and a handful of open-source software developers were the pioneers.

Co creation by  creating  value through Web communities. It has been a sound success on co creation as we find  68 million bloggers post reviews and recommendations about products and services.

Why is it so much used.....  for its reach and lower  cost of serving customers.  Companies are extending their reach by using the Web for word-of-mouth marketing. P&G’s Vocalpoint network of influential mothers is a leading example. Mothers share their experiences using P&G’s new products with members of their social circle, typically 20 to 25 moms. In markets where Vocalpoint influencers are active, product revenues have reached twice those without a Vocalpoint network

Facebook has marshaled its community for product development. The leading social network recently recruited 300,000 users to translate its site into 70 languages—the translation for its French-language site took just one day. Yet for every success in tapping communities to create value, there are still many failures. Some companies neglect the up-front research needed to identify potential participants who have the right skill sets and will be motivated to participate over the longer term. Since cocreation is a two-way process, companies must also provide feedback to stimulate continuing participation and commitment. Getting incentives right is important as well: cocreators often value reputation more than money. Finally, an organization must gain a high level of trust within a Web community to earn the engagement of top participants.

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Connected Organisation

Web was starting to force open the boundaries of organizations, allowing nonemployees to offer their expertise in novel ways. It was called  “tapping into a world of talent.Now many companies are pushing substantially beyond that starting point, building and managing flexible networks that extend across internal and often even external borders.

Classic example what we did in Malaysia for a debt management company creating a social network thereby creating community within the category Dow Setting  up its own social network to help managers identify the problems within the space and address by conversation and education .Pilot programs that connect individuals across organizational boundaries are a good way to experiment with new models.In the longer term, networked organizations will focus on the orchestration of tasks rather than the “ownership” of workers.

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Knowledge Cube to your Mission Plan 

Scaling to new heights with technology will be fruitful only unless we create a 'knowledge'cube wherein harnessing the technology with better talent and experise and guidence. Collaboration only is not the buzz word ,collaboration with konowledge is the new'NEXT'....collaboration technologies will  expand the reach and empower employees

In the longer term, collaboration will be a vital component of what has been termed “organizational capital.” The next leap forward in the productivity of knowledge workers will come from interactive technologies combined with complementary investments in process innovations and training. Strategic choices, such as whether to extend collaboration networks to customers and suppliers, will be important.

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'Internet of Things'

Information system, with the ability to capture, compute, communicate, and collaborate around information—something that has come to be known as the “Internet of Things.” Embedded with sensors, actuators, and communications capabilities, such objects will soon be able to absorb and transmit information on a massive scale and, in some cases, to adapt and react to changes in the environment automatically. These “smart” assets can make processes more efficient, give products new capabilities, and spark novel business models. 

 Auto insurers in Europe and the United States are testing these waters with offers to install sensors in customers’  vehicles. The result is new pricing models that base charges for risk on driving behavior rather than on a driver’s  demographic  characteristics. Luxury-auto manufacturers are equipping vehicles with networked sensors that can  automatically take   evasive action when accidents are about to happen. In medicine, sensors embedded in or worn  by patients continuously  report changes in health conditions to physicians, who can adjust treatments when  necessary. Sensors in manufacturing lines for products as diverse as computer chips and pulp and paper take detailed readings on process conditions and  automatically make adjustments to reduce waste, downtime, and costly human interventions.

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 Data to Experiential Data 

What if you could analyze every transaction, capture insights from every customer interaction, and didn’t have to wait for months to get data from the field? What if . . . ? Data are flooding in at rates never seen before—doubling every 18 months—as a result of greater access to customer data from public, proprietary, and purchased sources, as well as new information gathered from Web communities and newly deployed smart assets.

These trends are broadly known as “big data.” Technology for capturing and analyzing information is widely available at ever-lower price points. But many companies are taking data use to new levels, using IT to support rigorous, constant business experimentation that guides decisions and to test new products, business models, and innovations in customer experience. In some cases, the new approaches help companies make decisions in real time. This trend has the potential to drive a radical transformation in research, innovation, and marketing.

Web-based companies, such as Amazon.com, eBay, and Google, have been early leaders, testing factors that drive performance—from where to place buttons on a Web page to the sequence of content displayed—to determine what will increase sales and user engagement

Companies selling physical products are also using big data for rigorous experimentation. The ability to marshal customer data has kept Tesco, in the ranks of leading UK grocers. This brick-and-mortar retailer gathers transaction data on its ten million customers through a loyalty card program. It then uses the information to analyze new business opportunities—for example, how to create the most effective promotions for specific customer segments—and to inform decisions on pricing, promotions, and shelf allocation.  Other companies too are mining data from social networks in real time. Ford Motor, PepsiCo, and Southwest Airlines, for instance, analyze consumer postings about them on social-media sites such as Facebook and Twitter to gauge the immediate impact of their marketing campaigns and to understand how consumer sentiment about their brands is changing.

To get managers at all echelons to accept the value of experimentation, senior leaders must buy into a “test and learn” mind-set and then serve as role models for their teams.

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Sustainability

IT’s bigger role, however, lies in its ability to reduce environmental stress from broader corporate and economic activities. In a significant push, for example, utilities around the world are deploying smart meters that can help customers shift electricity usage away from peak periods and thereby reduce the amount of power generated by inefficient and costly peak-load facilities. Smart grids can also improve the efficiency of the transmission and distribution of energy and, when coupled with energy storage facilities, could store electricity generated by renewable-energy technologies, such as solar and wind. Likewise, smart buildings embedded with IT that monitors and optimizes energy use could be one of the most important ways of reducing energy consumption in developed economies. And powerful analytic software that improves logistics and routing for planes, trains, and trucks is already reducing the transportation industry’s environmental footprint.

Within the enterprise, both leaders and key functional players must understand sustainability’s growing importance to broader goals. Management systems that build the constant improvement of resource use into an organization’s processes and strategies will raise its standing with external stakeholders while also helping the bottom line.

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Technology now enables companies to monitor, measure, customize, and bill for asset use at a much more fine-grained level than ever before. Asset owners can therefore create services around what have traditionally been sold as products. Business-to-business (B2B) customers like these service offerings because they allow companies to purchase units of a service and to account for them as a variable cost rather than undertake large capital investments. 

The growth of “cloud computing”  exemplifies this shift. Consumer acceptance of Web-based cloud services for everything from e-mail to video is of course becoming universal, and companies are following suit. Software as a service (SaaS), which enables organizations to access services such as customer relationship management, is growing at a 17 percent annual rate. The biotechnology company Genentech, for example, uses Google Apps for e-mail and to create documents and spreadsheets, bypassing capital investments in servers and software licenses. This development has created a wave of computing capabilities delivered as a service, including infrastructure, platform, applications, and content. And vendors are competing, with innovation and new business models, to match the needs of different customers.

 Business leaders should be alert to opportunities for transforming product offerings into services, because their competitors will undoubtedly be exploring these avenues. In this disruptive view of assets, physical and intellectual capital combine to create platforms for a new array of service offerings. But innovating in services, where the end user is an integral part of the system, requires a mind-set fundamentally different from the one involved in designing products.

 

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Multi touch points & Multi sided Business 

 

 

Multisided business models create value through interactions among multiple players rather than traditional one-on-one transactions or information exchanges. In the media industry, advertising is a classic example of how these models work. Newspapers, magazines, and television stations offer content to their audiences while generating a significant portion of their revenues from third parties: advertisers. Other revenue, often through subscriptions, comes directly from consumers.

More recently, this advertising-supported model has proliferated on the Internet, underwriting Web content sites, as well as services such as search and e-mail. Technology is propagating new, equally powerful forms of multisided business models. In some information businesses, for example, data gathered from one set of users generate revenue when the business charges a separate set of customers for information services based on that data.

 As more people migrate to online activities, network effects can magnify the value of multisided business models. The “freemium” model is a case in point: a group of customers gets free services supported by those who pay a premium for special use.

Flickr (online storage of photos), Pandora (online music), and Skype (online communication) not only use this kind of cross-subsidization but also demonstrate the leveraging effect of networks—the greater the number of free users, the more valuable the service becomes for all customers. Pandora harnesses the massive amounts of data from its free users to refine its music recommendations. All Flickr users benefit from a larger photo-posting community, all Skype members from an expanded universe of people with whom to connect.

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Innovation 

Disruptive business models arise when technology combines with extreme market conditions, such as customer demand for very low price points, poor infrastructure, hard-to-access suppliers, and low cost curves for talent.

With an economic recovery beginning to take hold in some parts of the world, high rates of growth have resumed in many developing nations, and we’re seeing companies built around the new models emerging as global players. Many multinationals, meanwhile, are only starting to think about developing markets as wellsprings of technology-enabled innovation rather than as traditional manufacturing hubs.

 Hundreds of companies are now appearing on the global scene from emerging markets, with offerings ranging from a low-cost bespoke tutoring service to the remote monitoring of sophisticated air-conditioning systems around the world. The companies in India and China are getting more into 'innovative action' at the bottom of the pyramid be in drinking water solution or crop grain activities related to monsoon