On-Demand Thinking: What is it? By Duane Truex (from Self-fulfilling prophecy By Mark Brunelli, Site Editor http://search400.techtarget.com/ originalContent/0,289142,sid3_gci953965,00.html “Mash-ups” form Richard Welke, 2010

MS MIT 8699 Process Innovation © Duane Truex, 2011

On-demand Computing defined   often referred to as utility computing   the process by which companies pay as they go for hardware and software as capacity requirements change.   an integral part of IBM's strategy   It is a strategy intended to deliver computing resources the way a power utility doles out electricity.   When a network has a surge in demand, intuitive

architecture triggers other resources into action, including idle servers, applications or pools of network storage.   Companies pay only for the amount of time they use the services.

MS MIT 8699 Process Innovation © Duane Truex, 2011

The on-demand concept goes much further   It looks at how organizations can align key business processes internally and externally with partners to eliminate red tape and save time and money.   It is a process-oriented, process-co-design concept

MS MIT 8699 Process Innovation © Duane Truex, 2011

According to IBM CEO Sam Palmisano   an on-demand organization has its business processes integrated end-to-end across the company

  with key partners, suppliers and customers,   so that it can respond with speed to any customer demand, opportunity or threat.

MS MIT 8699 Process Innovation © Duane Truex, 2011

critics say…   that IBM has gotten too far ahead of itself by rolling out an all-encompassing and extremely confusing concept for the future that most people have yet to grasp.

MS MIT 8699 Process Innovation © Duane Truex, 2011

Advocates say of the critics…   Their view is simply another manifestation of impatience.

  [of IBM] It is the job of a visionary to shake things up, to look at the way things are and to find a better way, to be a few steps ahead of everyone else. It takes time for their vision to trickle down through the rest of society, but it happens.

MS MIT 8699 Process Innovation © Duane Truex, 2011

“Tech-Target” online suggests that…   Concepts such as grid computing, utility computing,

autonomic computing, and adaptive management seem very similar to the concept of on-demand computing.

  Jason Bloomberg, Senior Analyst with ZapThink, says that “on-demand computing is a broad category that includes all the other terms, each of which means something slightly different.”

  Utility computing, for example, is an on-demand

approach that combines outsourced computing resources and infrastructure management with a usagebased payment structure (this approach is sometimes known as metered services). http://searchdatacenter.techtarget.com/definition/on-demand-computing (Dec 6th 2011)

MS MIT 8699 Process Innovation © Duane Truex, 2011

How about ‘clouds’ and ‘services’?   Typically it is an enterprise-level computing model in which  

the technology and computing resources are allocated to the organization and its individual users on an as-needed basis.

 

computing resources such as CPU cycles, bandwidth availability, storage and applications can be channeled to users based on the tasks they are performing at specified times.

 

If one group of users is working with bandwidth-heavy applications, for instance, the bandwidth can be allocated specifically to them and diverted away from users who do not need the bandwidth at that moment.

  an organization that is collecting large amounts of data may have adequate

computing resources to collect the data but needs extra computing resources to analyze all of the data collected,   in which case it could outsource its needs to a server farm that would provide the extra boost of resources but only at the specified times.

  ODC resources may come from within the enterprise, or the organization may outsource its computing needs to a third-party service provider.   The benefit of ODC is that the enterprise uses its resources more efficiently by only

making available what the user needs at a specific time. For the enterprise outsourcing its computing needs, under this model it would only pay for resources that are used. From: Webopedia, www.webopedia.com/TERM/O/ODC.html Dec 6th 2011

MS MIT 8699 Process Innovation © Duane Truex, 2011

MS MIT 8699 Process Innovation © Duane Truex, 2011

MBA 8125 Informatioon Technology management

Professor Truex

MS MIT 8699 Process Innovation © Duane Truex, 2011

MS MIT 8699 Process Innovation © Duane Truex, 2011

MBA 8125 Informatioon Technology management

Professor Truex

MS MIT 8699 Process Innovation © Duane Truex, 2011

MS MIT 8699 Process Innovation © Duane Truex, 2011

Break Out: What do you think? What has all this to do with process Innovation?   How do you see “on Demand”   How does this relate to Process Innovation and ICT/IS?   What does this perspective require of you as managers?

MS MIT 8699 Process Innovation © Duane Truex, 2011