Showing posts with label Centralized. Show all posts
Showing posts with label Centralized. Show all posts

July 10, 2009

The Microgrid Versus The Cloud

It’s strange how the older you get, the more you come to realize that life is not black and white. However, when it comes to technology, I once held out hope that the way to the future was clear.

Then things started to get all gray again.

First, I read a few a few weeks ago about the trends with wired and wireless technologies. On one hand, phones have been going from wired to wireless (many are even giving up their landlines all together). Yet on the other hand, television has been going the other way—from wireless (antennas) to wired (cable).

Okay, I thought this was an aberration; generally speaking technology advances—maybe with some thrashing about—but altogether in a specific direction that we can get clearly define and get our arms around.

Well, then I read another article—this one in Fast Company, July/August 2009, about the micogrid. Here’s what this is all about:

“The microgrid is simple. Imagine you could go to Home Depot and pick out a wind or solar appliance that’s as easy to install as a washer/dryer. It makes all the electricity your home needs and pays for itself in just a few years. Your home still connects to the existing wires and power plants, but is a two-way connection. You’re just as likely to be uploading power to the grid as downloading from it. You power supply communicates with the rest of the system via a two-way digital smart meter, and you can view your energy use and generation in real time.”

Is this fantasy or reality for our energy markets?

Reality. “From the perspective of both our venture capital group and some senior people within GE Energy, distributed generation is going to happen in a big way.” IBM researchers agree—“IBM’s vision is achieving true distributed energy on a massive scale.”

And indeed we see this beginning to happen in the energy industry with our own eyes as “going green” environmentalism, and alternate energy has become important to all of us.

The result is that in the energy markets, let’s summarize, we are going from centralized power generation to a distributed model. Yet—there is another trend in the works on the information technology side of the house and that is—in cloud computing, where we are moving from distributed applications, platforms, storage, and so forth (in each organization) to a more centralized model where these are provisioned by service providers such as Amazon, Google, Microsoft, and IBM—to name a just a few. So in the energy markets, we will often be pushing energy back to the grid, while in information technology, we will be receiving metered services from the cloud.

The takeaway for me is that progress can be defined in many technological ways at one time. It’s not black or white. It’s not wired or wireless. It’s not distributed or centralized services. Rather, it’s whatever meets the needs of the particular problem at hand. Each must be analyzed on its own merits and solved accordingly.


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February 28, 2009

It’s Time to Invest in The Cloud

Cloud computing is "shorthand for centralized computing services that are delivered over the Internet (a.k.a. the 'cloud')."

Cloud computing is to traditional computing as electricity is to rubbing two twigs together to make a fire. Ok. That’s a little bit of an exaggeration, but not by much.

Years ago, people made a fire in their home or workspace which they continually fed to get warmth, lighting, and cooking; now they get these from centralized utilities that distribute it to them on an as needed basis. It’s a lot more efficient that way!

With cloud computing—it’s very similar. Currently, we have our own computing resources (like a hearth and firewood) that we must purchase and regularly maintain to do basic information technology processes for transaction and analytical processing, information sharing and collaboration. Now, we can get these functions from centralized computing facilities or data centers that distribute them, as needed on a subscription or metered basis. This gives us a predictable, stable source of computing at reduced prices, delivered via the Internet, when we want and need it, and without the hassle of having to purchase and maintain the hardware and software infrastructure. It’s a user-centric model!

Most of us with very busy and already complex lives inherently understand and are drawn to a model that is convenient and cost-effective. Flip on the switch and voila—lights/heat in one case or email, e-Commerce, and online entertainment in another.

To me, if its not a mission-specific or highly sensitive application, the question is why shouldn't it be in the cloud?

Fortune Magazine, 2 March 2009, on the rise of cloud computing juggernauts like Salesforce “a public company with a market capitalization of $3.5 billion, generates revenue of more than $1 billion a year—a 60% five-year annual growth rate—all from providing software subscriptions to business.”

Marc Benioff, their CEO says “We’ve always believe everything’s going into the cloud.”

Even detractors, like Larry Ellison, the CEO of Oracle, has helped fund Saleforce and another major cloud computing vendor, NetSuite. Moreover, “Oracle at the end of January lauched a new version of its online sales-management product…CRM on Demand” —so you see where Mr. Ellison is strategically placing some of his chips.

What about the other major application vendors?

“SAP said it would be releasing a software-as-a-service product in May…and Microsoft also has customer-management software available. IBM just named a cloud computing czar, and Google and Amazon are launching ambitions initiatives.”

So what’s holding up the transition?

Generally, the biggest cited obstacle to moving to cloud computing is security. Yet, “Salesforce has recorded only one security breach, a phishing attack in November 2007.” Moreover, because of the scope, scale, resources, and expertise that these vendors have, they can actually deploy and maintain a level of security that other organizations may only dream of.

Never-the-less, “companies remain committed to owning and hosting their own software and despite the tough economic times, they are loath to try something new, especially if it means making additional investments, however meager.”

But in the end “cost cutting and convenience are expected to prompt more firms to rent software that will be delivered over the Internet cloud.” IDC projects that by the end of 2009, “76% of U.S. organizations will use at least one web-delivered application for business use.”

Further, according to research firm, Gartner, "of the approximately $64 billion spent on business applications in 2008, about 10% or $6.4 billion, was spent on applications housed remotely and delivered via the Net."

The writing is on the wall or should I say in the cloud!


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May 7, 2008

Integrated Marketing Communications and Enterprise Architecture

There is a better way to showing customer love than inundating them with marketing and communications that are not coordinated, not focused, redundant, inconsistent, and not cost-effective.

This is the case of many organizations that have multiple, decentralized, lines of business (LOB) that have their own revenue and profitability targets. Typically LOBs, branches, and call centers solicit customers and their business independently, with distinct marketing campaigns, promotional offers, and customer surveys.

What’s the way to improve our customer interactions?

Integrated Marketing Communications (IMC) is “a planning process designed to assure that all brand contacts received by a customer or prospect for a product, service, or organization are relevant to that person and consistent over time.” (American Marketing Association)

In DM Review, May 2008, Lisa Loftis provides us a vision of IMC utopia, where customer contact are coordinated, targeted, is helpful to the customer, and profitable to the firm:

“Imagine being able to coordinate and prioritize your entire program of promotions and communications across all customer touchpoints. You could eliminate conflicting offers across channels. You could stop inundating you bet customers with multiple marketing campaigns, You could deliver a seamless dialog with customers where every interaction is relevant to the customer, delivered at exactly the right time and satisfies a significant customer needs. In this universe, the very act of communicating with your customer fosters a positive experience, facilitates trust and expands the relationship.”

Why is IMC important?

“Timely, relevant communications go a long way toward increasing satisfaction, and there is no question that satisfied customers add to the bottom line.”

How is IMC related to User-centric Enterprise Architecture?

User-centric EA relies on IMC to make the architecture end-users experience more satisfying and beneficial to them and thus more valuable to the organization’s decision making. As opposed to traditional EA that often is user/customer blind and develops esoteric and convoluted “artifacts”, User-centric EA seeks to provide end-users with IMC-style information products based on relevant information that is easy to understand and readily available.

What are the enterprise technical solutions that need to be architected in order to build the overall organizational IMC capability?

  1. Customer Relationship Manager (CRM) systems—utilizing CRM system to manage customer contacts. This includes an organization “building a database about its customers that described relationships in sufficient detail so that management, salespeople, people providing service, and perhaps the customer directly could access information, match customer needs with product plans and offerings, remind customers of service requirements, know what other products a customer had purchased, and so forth.” (www.techtarget.com)
  2. Business Intelligence capabilities—“understanding customer behavior and preference through sophisticated predictive analytics, wading through myriad potential contacts to determine the highest-priority opportunities and tuning your data warehouse to work in conjunction with specific contact optimization applications.” (DM Review)
  3. Organizational Culture—adopting a customer contact optimization strategy in an organization that is decentralized is a tough sell.

In the end, developing true IMC capabilities involves moving the organization towards a more centralized model of asset management. That does not mean losing your agility and nimbleness in the marketplace in terms of strategy and decision making, but rather using your consolidated organizational assets (such as data warehouses and business intelligence, CRM systems, and the breadth of depth of your product offerings) to your advantage. You want a unified brand and voice when talking with the customer.


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September 30, 2007

Centralized, Distributed, & Hybrid IT Management and Enterprise Architecture

In User-centric EA, users IT needs are met (timely and with quality solutions), while governance ensure that those needs are aligned with mission and prioritized with others across the organization. To achieve these goals, how should IT management best be organized in the enterprise—centrally or distributed?

The debate over a centralized or distributed management model is an age-old battle. A popular theory states that organizations vacillate in roughly three year cycles between a strong centralization philosophy and a strong decentralization philosophy. The result is a management paradigm that shifts from standardization to autonomy, from corporate efficiency to local effectiveness and from pressure on costs and resources to accommodation of specific local needs, and then shifts back again. The centralized system is perceived to be too slow to react to problems in the field or to issues within a particular company department or division, and the decentralized operation is perceived as fragmented and inconsistent.

To address the pros and cons of each model, there is a hybrid model for IT management, which incorporates centralized IT governance and solutions along with distributed IT planning for the line of business and niche execution.

In the hybrid model for IT governance, an IT Investment Review Board (IRB) centrally directs, guides, and authorizes IT investments through enterprise architecture, IT policy and planning, and a CIO governed-consolidated IT budget. At the same time, IT requirements come from the lines of business, and the lines of business develop their own segment (business) architectures. In some cases, the lines of business actually plan and execute niche IT projects for their areas, while the systems development life cycle for enterprise IT systems and customer support are handled centrally.

The hybrid model for IT management is a very workable and balanced solution that demonstrates true business acumen in that it recognizes the strengths and weaknesses of both approaches (centralized and distributed management), and capitalizes on the strengths of each in coming up with a best solution for the organization.


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