Marketplace Conditions

In almost any industry, digital and physical infrastructures are colliding. Computational power is being put into things we wouldn’t recognize as computers. Indeed, almost anything – any person, object, process or service can become digitally aware and networked. With these enhanced capabilities comes an enhanced complexity.

By 2013, 95% of enterprise workers will use the IM client as their primary interface for computer-based real-time communications.
– Source: Gartner – "The Gartner Collaboration and Social Software Vendor Guide, 2009 /Carol Rozwell, Nikos Drakos, David Mario Smith, Jefftrey Mann, Matthew W. Cain, James Lundy, Tom Eid / 19 February 2009"


The world is becoming smaller, flatter…… and smarter

We have long known that organizations are living systems made up of smaller components and systems. As the planet becomes smarter – and more human beings, man-made systems, and natural systems become instrumented, interconnected and intelligent – we begin to achieve unprecedented freedom to build, assemble, reassemble, loosely couple, and link resources in the organization.

Consider the many ways that our world is becoming "smarter."
  • More Instrumented: We now have the ability to measure, sense and see the exact condition of almost everything.
  • More Interconnected: People, systems, and objects can communicate and interact with each other in entirely new ways.
  • More Intelligent: We can respond to changes quickly, accurately and securely, predicting and optimizing for future events.
Responding to constant change

Change is the only constant in today’s business environment. From mid-sized organizations to large enterprises, change is imperative. Indeed, the speed of business, the explosion of data, the need to do more with less, the increased cyberthreats, proliferation of technology, and the demand for "green" are among the most prominent changes that require proper and timely adaptation and response in order to succeed.

"In 2008, 83 percent of CEOs expected dramatic change, versus 61 percent who felt they could manage it".
– Source: The Enterprise of the Future, IBM Global CEO Study, 2008


The two attributes that will distinguish successful organizations in a smarter planet is the willingness and ability to become highly dynamic and embrace change. Among the organizations that are prospering, most are those that are dynamic and resilient enough to stay ahead of the change required of them. These organizations are living systems that adapt easily, mindfully, and rapidly to meet new opportunities or fend off threats.

With new economies and industries unfolding around decades-old companies that have traditional business models, organizations are being forced to become more responsive to address a wide range of challenges such as:
  • Higher service expectations: Organizations are no longer striving to simply align business and IT assets to support their business, but to meet the increasing demands of digitally savvy customers who expect innovative, high-quality 24x7 services.

    By 2011, more than 50% of Fortune 500 companies will interact directly with their customers via mobile devices.
    – Source: Gartner – "Predicts 2009: Mobile and Wireless Continue to Mature"/Ken Dulaney, Tole J. Hart, Nick Jones, Monica Basso / 5 December 2008

  • Rising cost pressures: In today’s financial climate, cost efficiency is top of mind for the vast majority of C-level executives – and they are not just looking to drive down overall costs, but to optimize asset utilization and available dollars. Many organizations have such a complex infrastructure of business and IT assets that they are not aware of how many assets are insufficiently used and untapped.

    Research shows that 20% of assets that are "on the books" of typically large enterprises are physically "missing."
    – Source: Gartner – G00164331 "Balancing Short-Term and Long-Term Cost-Optimization Efforts" / Barbara Gomolski, Kurt Potter / 27 February 2009

  • New risks and threats: In the rapidly changing environment companies are struggling to stay ahead of the risks that may plague them. In addition, they have to address the increasing volume of regulatory, organizational and industry-based compliance drivers.

    Botnet attacks implant downloader software that can bring down threat code from command and control sites… Gartner estimates that between 3% and 7% of large enterprise PCs have undetected bot clients installed.
    – Source: Gartner – "2008 IT Security Threat Projection Timeline" / John Pescatore, Greg Young, Ant Allan, John Girard, Joseph Feiman, Neil MacDonald / 22 December 2008
With customer and competitive pressures constantly increasing, it is clear that organizations need to have a flexible, adaptable, and dynamic infrastructure that helps improve service, reduce costs, and manage risk. This infrastructure should not only respond well to change but embrace it, and address any deficiencies that threaten to disable the organization from responding to change.

Figure 1. Summary threat timeline.


Source: Gartner – G00160037 "2008 IT Security Threat Projection Timeline", 26 August 2008


Changing landscape of business and IT assets

"The IT modernization trend will have a significant impact on the Business Intelligence space in three distinct areas: emerging technologies, evolving Business Intelligence strategies, and changing markets."

"Organizations must focus on modernization of their infrastructures and practices for Business Intelligence and Information Management. Through modernization strategies, significant improvements in agility, efficiency and cost optimization can be achieved."
– Source: Gartner – "IT Modernization: Recommendations for Leaders in Business Intelligence and Information Management" / Ted Friedman, Matthew W.Cain, Kurt Schlegel / 12 June 2008


With the emergence of pervasive devices, embedded chips, RFID, sensors, detectors and IP addresses attached to enterprise assets, organizations need to manage across all of their asset classes – enterprise and IT assets – with a common set of processes for end-to-end asset lifecycle management.

"Infrastructure and operations organizations should review the potential opportunity to unify the management of IT assets with other enterprise assets."
– Source: Gartner "Observations and Announcements from IBM Pulse 2009". / Milind Govekar, Donna Scott, Ed Holub / 6 March 2009


The growing need is to bring together both the business and IT infrastructure to better converge and manage the information generated to create new possibilities across the business. Our ability to leverage and utilize this information and intelligence is within our reach. Embracing this opportunity can enable faster, better management of a wider range of devices and systems than ever before, helping to deliver smarter business outcomes.

"Asset management projects are gaining interest across all industries as companies struggle to manage non-maintained or disposable assets."
– Source: Gartner, "Market Trends: Radio Frequency Identification, Worldwide, 2007-2012" / Chad Eschinger / 11 February 2008


To support this complex level of intelligent asset utilization and management, and successfully conduct business in this environment, a dynamic infrastructure is needed.

The pace of change in the maturity of IT technologies and industries will accelerate during the next 10 years. By 2018, organizations will be more flat, delegated and horizontal, operating more-dynamic and agile processes.
– Source: Gartner – "2018: Digital Native Grow Up and Rule the World" / Monica Basso / 28 July 2008


Therefore, companies must move past today’s challenges to seize tomorrow’s opportunities. It's time to start thinking differently about infrastructure. An infrastructure that not only addresses the needs for today but lays a foundation for breakthrough productivity, accelerates value creation and the increased velocity needed to achieve the faster pace demanded by a smarter world.

"The convergence of automation IT and business IT – or IT and operational technology (OT), as it is called in some asset-intensive industries like utilities – is in fact a trend that leading-edge companies can leverage to create substantial new business opportunities."
– Source: Gartner "Taking IBM's Pulse on Smart Assets in Manufacturing" / Dan Miklovic / 26 February 2009


Source: IBM
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