 Digital Expert at PA Consulting and Professor of Practice in Information Systems Management at the Warwick Business School. Mark, come on down. We'll get you mic'd up. You're right behind me. Great. So Mark is an accomplished business technology leader who has worked for many Fortune 500 companies in over 20 countries and in both public and private sectors and his work at PA involves leadership in innovation and digital strategy for digital platforms. So good follow on. So Mark will be telling us about, continuing on from Chris's idea, the battle for ownership over owning the digital spaces. So thank you very much Mark. Thank you David. Hope you can hear me. I'm just recovering from a Christmas cold. I don't know if anybody's had the same type of bug. Hopefully I won't leave it with San Francisco, but thank you very much for having this opportunity to talk. I've been involved with the Open Group since 2010, working closely, particularly with Chris and with David and a few others. And obviously, thank you again to Alan Brown for many things that you've created with this organization. What I want to do is talk about this thing called digital. I would say the current flavor of the month or flavor of the year would probably go on to the Internet of Things, cyber intelligence next year, whatever. I have more slides than I've got time, so I'm going to go fairly quickly. I have some props and I have a demo, so I kind of set myself quite a high target. But hopefully this will be entertaining. I will not apologize, but I have quite content rich slides. It's my kind of method I like with my students. I will leave you with stuff. I've got two books if you want to read about it, et cetera. It's a shameless plug, but anyway, let's just go with it. So the concept that I want to talk about is really three areas. One is there's this concept of what we call the battle for owning digital experience or digital spaces. We're starting to see, certainly in the UK and we're seeing elsewhere, you physically feel it or you sense something's going on, where in the retail market, for example, they will sell you a product or service. Then they will sell you something add-on, and then they'll be adjacent services. And then before they know where you are, you're kind of locked into a kind of relationship. And what's happening there is this sort of what I call digital land grab for your mindset, your experience, your customer journey. The second thing I want to talk about is show some examples of where companies are actually starting to succeed at doing this. Whether this is by design or by action or thing, then I just want to talk about some of the things. There's a very famous phrase by one of the professors I have the privilege of knowing. He's actually over in Semple University here, but he's an associate with our faculty, where he talks about competition has gone to the ecosystem. What he means by that, when you talk about competition is between, say, Android and iOS. He's starting to raise in clusters and you're kind of competing in that level of ecosystem architecture, if you will. The third thing I want to talk about is really what are the lessons? What are the key things that we want to start to think about? This is really the reason that Chris has just introduced the digital business and customer experience workgroup of the open group. I urge you, I'm slightly biased because I was one of the co-founders of this. But what we're trying to do is not throw the baby out of the bathwater and say, well, enterprise architecture is dead, long live enterprise architecture of this version. He's trying to understand how do we move from a, to use some phrase I've had in PA, a information technology portfolio mindset, which is very good. You have to manage assets and interactions of your costs of operation. But how do you create agility into the outside in thinking and things like that? So he's starting to think about models and capabilities. And some of these things, as you know, are actually not within the domain of your control. A lot of this has been done to you through the ecosystem channels. So what I want to do is start to move fairly quickly, if this thing will work quickly. We live in an era of unprecedented growth. I don't know if I've gone on too far, this is just your thing. We need to understand really the realities of consumerization. We understand the realities of industrialization. Industry 4.0, the Valhoffer Institute. Recently I was involved in some lecturing at Nottingham University in the UK, where we started to think about digital manufacturing, connected supply chain, connected products, connected assets. The other aspects of what we call the society of things and the industry of things, how do the two universes work together? What's happening is we're living in this world of exploded information. It's just a phrase that I've used there. What happens in one digital second? I think at the time that we've been running this morning, just over an hour, there has been millions, if not billions, of transactions. Sometimes I feel they're going through my personal inbox and my email at times. But the plethora of information out there on the internet is really both a threat as well as an opportunity. And the era that we're moving into when I talk to some economists, particularly in some of the small city work I do, you have to think of it as a kind of feedback loop, if you will. What we're living in is not a static data environment. We're actually living in a world where we have to think about usage data. A great quote from Hoosweet said, 31% of traffic in an enterprise is social. But let me think for a minute, what does that mean? I mean 70% is transactional master databases, but what's the 30%? Oh, that's stuff where people are talking, talking internally, talking externally. There's money in that data. There's money in those white spaces. Well, to use a real cliche, I wanted to try and get David Bowie into this presentation somehow. I don't know if you've seen the video, with 1999, he gets interviewed by BBC, a well-known BBC journalist, and he said it's about the gray space. I want to try and mimic his voice. It's the gray space between the performer and the audience. You create this performance, and this is very much a mindset you start to think. If you understand digital artwork and digital performance, that is exactly in the era that we're in. What I find amazing, apart from if you either love or hate David Bowie, he figured that out in 1999. Amazing guy. You see the video, it's really good. So following that, which I can't, in terms of where we are now, is that what we're finding is that the reported data around the Internet of Things, or rather the e-commerce around GDP, the realities are, and you see this time and time again, I saw this in Barcelona last year at the Mobile World Congress, is that we started to see what I call a triple helix. We're seeing that the reported e-commerce transactions is around 20, 30%. But we know, we see people looking at their laptops and they're interacting, and hopefully are listening to what I'm talking about, I'm sure. They're starting to interact with a much higher percentage rate of doing stuff. You can quote many surveys now where what? We've got about 29 apps on our mobile phone, at least. We spend, I've read, one to two hours a day looking at the screen, the mobile screen. We start to interact in a much more cyber-digital way. So what's happening here is that we're kind of seeing this drift towards a kind of new reality. We're starting to see, if you look at the numbers around the estimated size of these markets now, the one I find interesting, which is a kind of a paradigm, if you study fintech, I just had a large event that I ran in the shard in London last week around discussing fintech with the UK government as well as different technology start-ups and innovators. They say, well, Bitcoin is starting, but we don't think it will go anywhere as one camp. The other camp is saying, hang on a minute, we're changing the way the digital bank works. We're changing the way automatic payments are happening. We're changing the way, and a great phrase from a well-known credit card company is say, I see 50 billion objects, but actually I see 50 billion points of sale. The hairs on the back of my neck start to write. You say, what do you mean? 50 billion points of sale, but surely it's not all about money. This is like trying to tell the, excuse my phrase, the Pope to change religion. Clearly, no, it is all about the money. It's all about the transaction, but then you get into other types of debates that we're doing with Cambridge University and elsewhere, where it's about your personal data. Is it their right to use your data? Should you own the privacy and value of that data? And can you monetize that data? You start to get into those ethical debates that are starting to break out now. So there's lots of money to be had in this environment. There's lots of things that we need to think about. We need to think about the effect of digitization. Digitization is an academic term in papers. But the phrase, as you can probably imagine, it moves on quite quickly. What I see when you think about nanotechnology or biochips or other sort of leading-edge new technologies breaking, we're starting to talk about the technological embeddiment, if there is a word, with a source of products and services and experiential computing that's starting to happen now with the Internet of Things. So what we're seeing, another graph that says we're on a trajectory that's going up, is that what we're finding is that to put this summarizer, is to say you have a digital experience where you have a new mobile app. The trouble is you then operate in a world where you have the consumer or the user having lots of other apps to choose from. And the question you have to ask yourself is, well, if I build this platform, will they come? If I build this mobile phone, will it scale? How do I do scaling? Mechanisms for scaling, innovation, adoption, and things like that. Very interesting research area at the moment, which I could talk about at another time. What we find is that the question is, how do you get from the macro to the micro? How do you create this thing and then create this resonance with a community? You get viral feedback loops. They start to iterate and consume more content, create more generated content, and it goes into a spiral. And this spiral grows and grows and grows. And what you start to get is the impact on the actual wider economy. And when I talk about the small and the large happening together, that is what I call ecosystem thinking, which you can't architect in one space because it impacts on the wider space. And then the wider space, call it regulation, then impacts on the way the small space works. It's ecosystem thinking. It's joined up thinking. So what's happening now is that we've got to think about the fine-grained spaces. The two big dimensions that I sort of see is really along the bottom there, is we're starting to see this ability to take your WAN and LANs, so your LANs and WANs, and you're starting to see the municipal network starting to spread out across cities, but then you're starting to get much more fine-grained network capability, Wi-Fi, Bluetooth, near-field communication. And then starting to get some stuff which I'm going to demonstrate in a minute. You're starting to use very, very fine-grained information about locations, micro-location technology. It gives you a higher level of precision. It gives you an ability to do things that 10 years ago you can just only imagine. What this means is we're not actually architecting products and services. A great phrase from a colleague from Harway earlier, which I admire, was he said, loyalty is not about products and services. Loyalty is about the experience. Loyalty is to the ecosystem. It's loyalty to the community that you belong to. That is what's turning the millennials or the generation of Zed people particularly into new consumers of the future today. It's about owning the spaces, owning the wearables, owning the smart digitization of that experience and feedback mechanisms. So what's happening is that we need to really think about what does it mean to be an enterprise? What does it mean to be a product or a service? The realities are that this, this itself is actually a platform. This is the enterprise. There is a reversion, an inversion of what it means to be a product. That's a completely different mindset. Completely different mindset. And the architecture has to change in the sense of how does that ecosystem work? A slide that I use occasionally with some clients tends to resonate is that your business is the thing on the left. You perceive yourself as one big brand, but in reality you've got lots of little, little products and services going on inside your organization. You are able to use the phrase disintermediated or re-intermediated or whatever other words you want to use. The reality to the consumer is you look like that on the right-hand side but then you perceive yourself as on the left-hand side. What does that mean? What it means is you have to start to think about proxy services. You have to think about where am I going to put my platforms, where do I need to play in order that people don't get traffic being directed off to our competitors or information that I'm providing has been used by over-the-top services to monetize and start to eat into some of the growth and opportunity that I want or you get a disconnected experience with the consumers. You're not really reaching them or you're not making more of the moment when they're there. What's happening is really this idea that I've introduced in my books but also around the sort of research and client work I've done at PA Consulting is that we need to think about architecture in a different way. The academics talk about, here we go, spatial-temporal transformation. I've just put my teeth into just to say that properly. What they mean by that is that the spatial connections in spaces are starting to decompose and connect through digital processes. Temporal, it means that everything is a physical moment but also can be a virtual moment. You can live past experiences because you can play them back in real time. I was just looking, playing last night with the New York Times virtual reality app. If you tried that one you can download a virtual app, a virtual reality app, and start to live the experience of being on the plane or being in a movie. You can move the phone around. You can start to create the immersive experience in the physical space but repeated virtually and then you can put a multiplier around that because you can be repeated and replicated for all the people in the room. An amazing type of reinvention of experience. What we have is a thing called nested modular architecture to use the phrase. Nested modular architecture is this idea that you can have various levels of objects and assets. The human body itself is a set of subsystems of course. I'm measuring my heart rate at the moment. I've got the device there that's measuring my personal carbon monoxide output but also measuring the carbon monoxide space where I'm living right now. I can then connect to the room. This could be a smart room, it could be a smart building, a smart facility, a smart city, a smart connected experience between this city and the airport, this airport to another place in another country. You start to get this connected society, connected industries, the connected system, the connected economy. That's the big architecture picture isn't it? They would fill a wall or do we really want to do that? I've had death by 5,000 use cases before. Everybody put their hand up, who's had that before, probably will put their hands up. You know what I mean, don't go there. So the issue around this is really typically within the 24 hour day, very little is actually transactional when you're doing stuff. I need to buy something or doing stuff. You're actually really experiencing life. When you're doing your usage, you're wanting to get what I call soft, big data or small data to start to collect information that actually matters at the moment and things I'm doing all the time. I'm not always transacting a transaction from a banking sense. What happens is you start to think about the 24 hours in a day, you're sleeping for 8 hours, a bit of a joke in my case, or you're actually working for 8 hours, again another joke in my case for sure us as well. You start to do other things, you can start to think what is the white space where I'm actually doing other things that I'd like to have lifestyle services, augmented capabilities. But how do I build that? How do I own the spaces? Because that is what I really want. I don't want to be distracted by yet more marketing. I want to opt into the services that I actually want to be distracted about. So the realities are that we're finding that to use the phrase of Tesla cars or others, very famous examples we're always connected, continually connected, what it means that objects and people are always connected then it can create a new kind of architectural reality. Another quick diagram is we're starting to get this phrase called vertical scaling, where we're starting to use multiple screens. I can look at the TV, I can go on to my watch, I can go on to my mobile phone, I can go on to my iPad, I can go on to the smart walls with adverts, live adverts on those walls. We're starting to get multiplicity of interaction points with smarter appliances as they become digitized. We start to then think about the lifestyle of the working spaces, the living space, the cultural space, the society space, the transit space, the living space, the commercial spaces. The spatial transformations of this capability enables you to think about. That's a slightly different way of thinking about your Tom, your target operating model. It is, you need the cost model of your operation, but how does it physically re-enable itself if it can then be broken up and connected through a digital supply chain. What's the language that we need to put in place to enable us to reverse the thinking sometimes about we build a product and then it moves to how do I connect these things in a collaborative way. So as I said, it's a temporal spatial transformation, it's a rather difficult phrase to use, but what it essentially means to use the other phrase that economists, and you've hopefully read before, is it's flattening out. It's not like the founder of Sun, who once said the internet will flatten all cloud computing, will flatten out the internet. What's happening now is we're getting flattening our industry and society. We're getting connected space and connected devices. We need to think about the addressability of those spaces. Some services, just a study, I think it was an event just down the road in Palo Alto, said that customers who opt in to specific microlocation services, you can get up to an 80% conversion rate with those consumers. That's a big number that any marketing person say, oh, I'll have some of that. I'm not talking about programmatic marketing, I'm talking about something beyond that, which is starting to say, I actually am connected with you. I understand your identity, I understand your personal space and needs, I understand where you are within the context of this event and room. I'm actually trying to augment your experiences in a positive way for both parties. So what we need to think about is we need to really understand what is going on. We need to think about the virtual marketplace, the verticalization, the horizontalization. We start to see lots of early movers in this space. I won't go through all of those, but if you start to look at this map, you start to see on the left-hand side, bottom, connected appliances, starting to happen. It's not quite there, but if you look at Google Smart Home devices, you start looking at the car battlefield that's starting to break out. You start to look at Bosch, Siemens, GE, Intel, you start to look at what they're trying to do in terms of smart appliances and integration. We're starting to see this thing kind of spreading, not like a virus, but spreading across other sectors and starting to create this kind of integrated experience. We find that what's happening is that we need to think about the value chain. Portas Five Forces, Portas Value Chain, circa 1985. I always have a go at the academics about this, but come on guys, that was 1985 and you're still using it in 2016. What's going on? I think we need a new language to describe a new ecosystem. I would argue that I think the open group, and this is me putting my flags on the boxes, I think is a well placed to create that language, because it needs to think about, not everything has to be open, but it needs to think about a trend, a connected space of boundaries. How do these things work together? I can put my hand up and say, I don't think our work's completed yet, we've got more work to do. What we're starting to think about, and I quite like this slide because I spend quite a lot of time doing this and hopefully this gives you a nice visual. What I'm trying to demonstrate there, the out of home experience can be connected with the connected work experience, with the connected retail. I personally quite like this slide for a lot of reasons, because I think this is what's going on in 2016. You're getting vertical proxy services, I can do stuff without even moving from my chair in my front room. I can buy stuff, I can interact with my work, and then I can do things horizontally. I can start to connect things, I can start to own the smart home experience. I can take the home from home experience, I can go and sit in my hotel and re-imagine the interaction of my Xbox environment or whatever in the workspace or in the hotel space, it can follow me. It's a different mindset. You start to invert the concept of what does it mean to be digital. You can take the digital space with you. So what's happening is you're starting to see a battleground, this is the thesis of the argument. You start to see, and this is just an example of consumer products, if you're in engineering this is different, I know, but it's the same concept sort of. You're starting to see lots of appliances trying to get into position, so that when you're actually touching this thing, it's actually interacting, it knows who you are. You're starting to use mobile devices, you're starting to try and use connected intelligence and stands behind it to actually aggregate and use that in a smart way. I love the earlier commentary about am I talking to a dog or a computer AI that Chris Harding was talking about earlier? It probably was a dog, Chris. It might have been AI, I don't know. So the question around this, and I'm seeing this with a number of clients now, is that you can either just stand still and say, oh, that looks interesting. Well, we're collecting all the big data. I'm sure something will turn up. I'm not always talking like that, of course. Because they are in the physicality of their organization. But what digital does is it breaks those boundaries down. It starts to think about, how do I need to take this information and interact in a different way? How do I need to build platforms or services that people can buy into and get scaling and iterative generative value? There's academic issues called generativity. It's a very good phrase. It's about self-generativity, about applied generativity. So what we're finding is that there's a battle for, here's a couple of the thermostat. Actually, there's loads of brands. What does a brand mean in the digital world? It doesn't really exist, does it? Does a brand protect you? Is it a fig leaf, a loincloth? You can whip it away because what happens is you have a couple of things here. You have interoperability challenge. Was it Nest recently declared that you're not allowed to use non-standard APIs to connect to it? I know one of the professors at Cambridge University said something quite colourful on his Facebook page at that particular point when that was announced, which I'll spare you the blushes of explaining what he said, but you can guess what happened. But that's the whole point. How do you connect this experience to the person who's actually using this to the environment, to the place? Brands and systems are multiplying but what we're finding is that industry need to think in a different way. We need to think in joined up spaces. We need to think about what the stand is involved in it. It's not the only thing I know, but it's about trying to create connectivity to join up the experiences. So, a couple of really three examples. If you look at, say, as I said, the smart home, there's some common themes starting to happen and hopefully we will collect this in the work group. They established a B2C website. They start to think about selling categories as bundles, not as products. They start to think about, can I do that adjacent services? I've sold you a fridge or a cooker. Can I sell you the home insurance on top of that? I start to create lifestyle brands. I start to then own the experience with you and your connected home. Smart travel. My favorite, the Tesla car. If only I had one, I would love to own one. The clever thing about Tesla cars is they're continually connected and when they leave the show, they continue to innovate and improve the recent one is it parks itself. This is an improvement on a product that's already left the building but it's still being upgraded as you're driving around in it and learning information as you go around. Disney, love them to bits, they barcode your children. I don't think that's a very good phrase to use probably in open forum. But the point I'm making, it's not a fair reflection of what they're doing. What they're doing is they're creating an excellence in being able to monitor where things are around the park. And I love it, it's a kind of goldfish bowl or an ecosystem example of what a connected ecosystem truly could be like. You just think about what you do when you're going around an amusement park. You get advice around queuing, you tell where it's going on, where the food is and it's all very, very personal, isn't it? Why isn't the work experience like that? Why isn't your lifestyle at home like that? Why isn't your gym membership like that? But it could be. So what's happening here is you've got to think about a compelling case for doing this. You've got to start to think about how am I going to take us on this journey. What do I need to build as architects? This is an architecture forum, obviously. So the lesson I'm taking away from this is you need to think about convenience and new experience. You need to think about upselling and cross-selling and building lifestyle services, connected spaces. You need to think about protecting your brand space. Now why does Apple, Cars and Google make an issue for Ford and Jaguar Land Rover and BMW? Why are they doing this? Well, it's because it's a brand space. Guys, that's what it's about. And it's moving around. It is basically a mobile phone on four wheels. It is a platform on four wheels. And it's also creating that ownership. It's a totally joined-up experience. It's following the customer before they've even thought about the love of the phrase at Hilton Hotel, Geraldine Carpin, the head of digital. She said, we start with a dream. We start with a dream of the customer dreaming to go on vacation. That's the point of the customer journey we start at. Not when they're in through the door about customer acquisition or when they just left and sent them the bill. It's the total life cycle. The ecosystem experience joined up. So we need to think about some hard choices. We need to think about, and my recent worker with an airport in the UK is saying, if I build this stuff, people will come. Because there's so much distraction going on. What we're finding is that we're starting to see various different architectures starting to happen. These are just four examples, not the owning example. If you look at Volvo or GM, they're starting to GM invested, I'm told, 18 months in building their own in-car management system. You could get the same system, navigation system, on an open Android site. Why do you need to build the platform? Why don't you just go and get one from an open source and then add things to it? Coordinated platform, the uberization effect. How do we get connected lifestyles? Well, what we could do is start to do crowdsourcing of information to share anonymous leave, in most cases. It's another type of platform, the coordinated platform. That's what an uber platform is. Modular architecture for industry 4.0. We've all heard this phrase that a car, 40% of a car will be software in a couple of years' time, or cost wise. Another one is the data orchestrator, the connected finance, back to my point 50 billion objects is actually 50 billion points of sale. So what are companies doing about this? What are we actually trying to do? There are several transformational effects that are starting to happen. There's a shift in the way we need to think about products and services and costs and revenue. This is something a colleague of mine, Rob Metler at PA, is talking about. This phrase, we're not in Kansas anymore, obviously we're in San Francisco today. But this concept is you kind of have to think differently. Time is shrunk. Touchpoints have started to become live and interactive. Physical environments and virtual environments are connected. The processing power, I mean a favourite phrase of mine, I was actually invited to go and do a supercomputing workshop as you do in Vienna last year, where they go to, I didn't make this up, Gregor Mendel Institute for Biological Research. And it was amazing for the price point, the sort of computing power that you can get now. That's an extreme scale. But how do you bring that massive power to a laser point? That is what is happening now. Behaviour is changing. Data is opening up. We've got lots of examples that we've done in PA. I use this diagram a lot, but I'm just going to run this quickly past you. You have to think about the shift. I did this with cloud computing. Obviously there's time compression. The cloud computing can go from days or rather weeks and months to acquiring something to literally minutes. But what's happening with digital, it's almost like the next level of connection and performance management. We're getting rapid utility computing combined with greater sensitivity in customer experience. You can scale faster because you can create additive effects. You can innovate faster because you can source things. You don't always have to use Timothy Chu's famous book of seven about softwares of service. You don't have to buy the cow anymore. You can just go and buy the milk. You can go and combine the milk with various things. Milk shakes or whatever other things. It's composable. There's lots of different dimensions that are showing us that we can start to transform the very speed and experience of business and lifestyles. Here's another example of platform-centric thinking. I won't go on under the famous poster, Charles. Great video on the YouTube. If you haven't seen it, Google it. Watch it. It's a brilliant movie. I would describe it. Facebook, Google, Amazon and how they're actually working to transform the way their platform has become the platform of choice. You look at Netflix. You look at Uber. You look at Stripe. They're fundamentally changing the sort of architectural paradigm. I like this example. The airport challenge being sort of an educational person part-time. I've noticed there's a problem that I call the airport challenge. We've got people coming into the airport. This is a paradigm for the model for everything in digital. We've got people coming into the airport and they want to get through the airport as quickly as possible and they want to get their food and they just want to get their bags on the plane and they want to go on the plane and they want to go somewhere and they don't want to be delayed. So they have a relationship with the airline that they're flying with. Not with the airport. They just want to use the service, the infrastructure. The infrastructure, the airport has all of the duty free. It has all the facilities. It has the car parks. It has the added value services that it wants to improve your experience going through the airport. And the airlines themselves where they're sort of competing with attention for each of the customer services, but they're also by proxy using the infrastructure the airport is providing. What you're finding is you have this kind of triangular problem that you see time and time again with digital. You have customers who have relationships with other providers who don't necessarily have the relationship with the infrastructure that they're using. It's over the top services in telecoms. It's smart city services that are being given by partner services from industry. You see it time and time again of how do you cross this rubrican of aggregated data and services when you don't actually own the direct relationship with a customer. But if I as a customer was subscribing to the airport but I wanted to get a better experience going through that they knew who I was or anonymously identified who I was you could start to think about different digital services and a kind of win-win scenario could unfold. That's my expectation. At the moment we have this kind of demand supply model which is kind of over compensating. That has a cost to it which is kind of saying well we don't have people around the airport. We sort of know the numbers of people coming through. We obviously track them for passports and stuff. We'll have this number of ground staff, we'll have this number of cleaners we'll have this kind of number of stuff. They plan for a certain aggregated demand level but it's not really fine tuned. But if you use the internet of things you know how many people are going where and what they're doing you can start to reduce the total cost of operation because your ability to visualize and see what's going on is better. It's a different mindset you have to have in digital thinking about my prop. This is something in the UK which has recently been just launched this month that PA Consulting were involved in. This is a carbon monoxide monitor and what's clever thing about it is it monitors your personal carbon monoxide space. You take it around with you. The clever thing is called FreeVolk which is a TM. It just basically has no battery. It uses the Wi-Fi and GSMA frequencies to generate energy for itself and then this is a low energy Bluetooth connection with my mobile phone. I went running around San Francisco yesterday in my vein attempt to try and remain healthy which is an early battle which is another lecture for another time. What you can do here is you can start to collect and crowd source and share this information and you can start to use gamification to try and encourage me to go on low carbon monoxide trips. I can save money it starts to grow awareness of where everything is it starts to show you your lifestyle. I would say this is a kind of the triangular thing. You've got the cloud computing thing you've got the mobile app, you've got the Internet of Things device and they're connected and they're starting to work in synergy and then around the space is the actual carbon oxide or sustainability or the ecosystem around it. You see the power of that. That is the power of the Internet of Things is the power of the digital thinking that you can start to bring into the fore. So what we're having here as I said is a tag it's using different technologies it's got the usual mobile apps that go with it and it's got innovative stuff. What PA Consulting does we're actually involved in building some of the software coding that actually works with this. The actual sensor and the free vault is intellectual property it's the IP of space and technology as a UK start up company. You think of the power that this could do. If you can start to get Bluetooth connections of sensors that don't need batteries what else could you measure? Carbon monoxide, you can measure other things. What could you do with that? Well, lots of other things. It's here today. How do I think about architecture in this context? Very powerful stuff. How do we, are we in Kansas or are we actually moving and this is my more complicated slides in VertiCom as I was told. Are you sure I want to put these in production? No, no, let's try it. Let's see what happens. But what I want to do is the final part. I don't know how much time I've got left with the talking but essentially what we have is really I would classify probably four different architectural paradigms coming along, there may be others but this is just four that I've identified. You may be working with clients in your own company thinking about how do I get a better digital experience? You may be thinking about your customer digital products or your asset management through life engineering. How do I get better smarter objects and asset management? You may be thinking about your connected supply chain ecosystem or you may actually thinking about the whole farm and thinking about how do I create an integrated value chain ecosystem. I find in a lot of work that I do that I get in questions across all of these. And a great phrase from a friend of mine in a well-known world, one of the world's leading drinks companies, he said I speak to a lot of vendors and architects and people say like you I get different views a bit like the three blind men or whatever trying to describe an elephant. It's big it's got ears and stuff but they don't quite know the size of it and they have a seven or eight level architecture that describes the foot and the leg and the ear. It's the internet of things but no one will tell them what is the roadmap. How do you build an elephant? Not an elephant the size of an elephant but the sense of architecting a ecosystem and the thinking mindset because it's got lots of connected products and services that's the challenge ahead of us I think. The PA consulting, this is a slight advert but it's one of explaining that we have covered a lot of these basics already today. We start to see through our experience of connected smart systems with these sensors there we've done the things around looking at a digital bank trying to understand how that is actually going to work as a digital bank that is just digital not physical. We've done things around security architectures there was a good question around what type of security in all of this that's the hobby of mine by the way it's the hobby of every architect who spent any time in IT always have to have an eye on the security question I can go on but what we're finding here is that we're starting to have to think across all of those four areas depending on the priorities of where your business maturity model is today what's happening is that I've just put this up because it's because of the audience we've got here we have to start to think about what are the common themes that we should be putting in a reference architecture what do we need to think about in terms of joining up these spaces we've got the machine to human interaction that Chris was talking about earlier but a lot of this stuff there's always a good one to wind up the cyber security officers who say well it's got nothing to do with you because it's all machine to machine connections you're just an observer forget it it's gone you know the robot cyber security to go chasing after the data it's not quite like that but there's things about connected spaces and services and sensors you've got connection of feeds and speeds and information about the noise effect of that how do I visualize it I just want to know the red stuff I don't want to know every single minutiae just tell me the important things how do I get aggregation and connection intelligence okay we have privacy we have ecosystem standards we have performance issues that are horizontal across all of those one of the challenges today is how do you have joined up thinking just very quickly then leading in towards the last few slides I just do want to cover in the remaining seven minutes that I've got if you think about customer experience it's not actually just about designing the form factor or the UI design which is obviously eye candy very useful there's a couple of things that I've noticed and we've started in bed this in the discussions we've been doing with the digital business and customer experience work group you have to think about ergonomic design you have to think about usability my favorite one is I go to my cinema local cinema and I've got a QR code and what I'm trying to do is I use the QR code to book or check in my cinema ticket what happens is that it comes up there we are of course the scanner is pointing the wrong way so I end up doing this because I can't get it on the scanner I look it right idiot and that's the whole point it's not designed for the interactivity experience apart from making it look like a teapot or whatever but that's the whole point have they thought about form and function we don't normally put that in the architecture model do we we do it's called agile thinking it's about agency and usability studies yeah then there's the psychology of this some of this is quite sensitive and I can't talk about it but in the sense that you have to think about the psychology of why people use things what are they doing cyber attacks or products that might have a brand image problem how do you change that we're using digital social influences they say no more it's possible PCST privacy confidentiality security and trust if you actually think about that they're all orthogonal but I won't go into that for those who are interested into orthogonality of cyber dimensions but that's another debate for another time human factors I've already explained but it's about the top one I'd say the proximity and then on your right side the different types of technologies you look about embedded technologies wearables nanotech it's really interesting how you design a customer experience and I would argue this is now advanced customer experience ACX not CX another one quickly basically we're now into the situation where this is just an example of connected finance the digital wallet is it not a vehicle a device to connect you to other services so it's not only knowing that you had a burrito for your breakfast this morning you can connect with your local retail and canteen if we can know what your health is you really should cut down on those burritos you should be getting out there and do some running patronizing give me an incentive or something or whatever but you can start to see the connected space you start to create a different kind of mindset in designing services socially connected sharing economy new payment models cross industry engineering industry 4.0 we're finding that we have to start thinking very differently there too cross cutting technologies this is just things the connected factory intelligent factory the one I like particularly is in the middle one advanced engineering where you have the paperless supply chain and you have just in times flexible configurable production facilities it's not only flexible in JIT's sense of 80 years ago or 30 years ago you can actually reconfigure the machines depending on the kind of environment and service you want to do it's like a completely dynamic architecture it rebuilds itself what's that about additive manufacturing 3D printing all these things come together in a way you have to think differently for architecture so the last couple of things I'd just like to say is we are not in Kansas anymore we are actually in San Francisco we are all into thinking about owning digital spaces experiences we need to think about road maps the one line that I would say that I find I hear time and time again is how do I join up systems of systems thinking how do I join up connected spaces because there are things now that need to start to be addressed because they are happening now so that's all I was going to say as I said we've got the draft paper that's starting to be technically edited at the moment I believe which is really just raising some of the questions that I've raised in the slides about what does it mean to think about digital we're going to have another session from a whole later with Trevor Chong which should be very very interesting about really the roads to this idea we're also trying to extend TOGAF so that's me that'll put you off I've got a couple of books and stuff like that but please do ask if you want to learn any more about the things we're trying to do as I said you can have these slides but talk about the demo this is PA consulting we're not a large consulting but we are a premier consulting in the sense we do all of this stuff and we have track record to prove that this is an issue of today so I thank you very much for listening to me I have two minutes on the clock so I'll take any questions in the remaining two minutes thank you a round of applause for Mark please can I invite you to take a seat I think Steve's collecting some cards and is someone set up to ask the questions lots of questions lots and lots of questions so we'll get them to someone at the back asking questions we can do them from here instead that's fine too so while they get it up Mark I was a lawyer in a previous life and even I prefer flattening out to temporal spatial transformation reassuringly complicated it must be true that one's a tongue twister so one question I did get from our table is that when you talk about new platforms and products becoming platforms in their own right the open group has a long history with platforms unique certification among them do we need to think about the first platform on what we've learned from platforms in the past when we are developing the third platform I think we have to start thinking about in well we go back to basics we talk about abstraction we talk about encapsulation we talk about modularity fundamental principles of basic one-on-one architecture and I would say these haven't changed but we just need to think about the modularity is slightly different so some of the questions in platform 3 which is the connected system thinking if you will you have to then think about how do you do federated abstraction so what you might start to say well this is a device it has an abstraction which is called the device or the sensor so the sensor of the device are effectively one of the architecture layers one of the tiers if you will then I have to think about network so this is something that would be good to ask hallway and others around this is that part of what I've got in some of my slides is that a lot of this needs a strong investment in telecoms architecture because typically what we tend to do and I just must very briefly as we say but we are architecting the physical environment you know we may have SNO, SNO software divine network but we actually have to think about the network space and the connectivity between those devices so I think Steve in a nutshell we need to think about the content of the devices in a new type of model that will allow us to talk that language thank you I think we've got some questions from the floor that Dave Vance, maybe you've seen earlier today our CTO at the open group is going to ask thank you Steve does new services emerge in businesses involved? we need new values and metrics for figuring out how we succeed in this I think we need to put value on privacy I think that works both ways privacy is a relative thing the value of trust do we want to invest? I think we also need to put a measure on generativity it's a bit like getting a really nerdy comment now it's about the Bose Higgs particle research about adding mass to particles it's kind of in that space you have this energy of the vacuum if you will the energy of data and this is kind of an answer you probably weren't expecting but you have to put a premium or the value of that information because it's not just transactions anymore the value is not in the transactions it's in the experience and connected value of the data so why is it important to describe the entire business architecture in a disintermediated business model isn't it sufficient to just set the overall principles and constraints and let people work within those I've heard that one a lot you could say design thinking or outcome based thinking is a good method and it is a good method and it gives flexible agility in thinking beneath the system to try and deliver the kind of outcomes and it doesn't matter relatively speaking how it's achieved but actually when you actually dig under the covers of this and when you actually go into trying to do connected devices like these or connected engineering systems where you've got high value expensive assets you do have to think about the cost of embedded technology you do have to start to really understand the design architectural thinking for agility and I would say I agree with that point to a point but I think in practice what you start to see practitioners want to know next Steve's earlier question what are the lessons we need to have in platform 3 because we need to design smart flexible modular architectures you may have just partially answered this one but I'll ask it anyway what for you is the most important difficulty for an enterprise to overcome to succeed in a digital transformation yeah I mean the traditional one the consultants will sell you is that oh it's your culture you've got to get your skills right you might need a psychologist by the way because they are good to have on your books and I think another one is oh you need good data analysts because they'll give you information about what you don't know and all that stuff so yeah to some extent there is about starting small scaling quickly it's not having the right skills in place the reason this was successful and I know the team in London who did this they had a very strong pilot system and it scaled really quickly so I'd say it is that people side of things but I would say also I'd like to think that the ingenuity and vision and creativity is something I think it's not something you can architect and put in a book you can just say there are things that you want to have the freedom of being able to think in a new way and I would say one of the things I would say to any new generation of architects is be creative I mean I worked at Sky TV for a while and I call it IT on steroids it's the most stressful job I've ever had I love it a bit you know 10 weeks you get something done and you've got three minutes or three hours to get the first plan done you're in sort of thing it's continuous innovation and that is a different mindset so it's all those things you know David just jump in there Dave one of the slides you showed Mark was about designing a customer experience and it struck me it was lots of disciplines might be involved in that it's not clearly not just a technical thing it's not just an architectural thing but what type of disciplines are involved you mentioned psychologists I'll answer it in a different way if you look at 3D printing I was talking to a colleague about the use of additive manufacturing and he said well we've got lots of machines and different factories and we've got lots of spares wouldn't it be a good idea to have a 3D printing facility next to the spares store it just prints out a new part to put in the machine so it's a good idea for 3D printing additive manufacturing so you need to have different types of bill of materials experts because you've got to think about things you said the trouble with the assets we've got today they're not actually designed to be used to support by additive manufacturing so they're not reconfigurable so you need to have a different type of engineering mindset that designs products that are using additive engineering you see the idea that I'm trying to introduce here is having a joined up supply solution set with the agency of what the device is trying to do so we avoid this kind of I've built something but I have to break my wrist to actually use it so it's having a joined up what we call through life engineering mindset kind of a follow on to that first person who wrote this thank you for a great talk but the experience the customer goes through of course is a personal one as you pointed out and so we see this collision of spaces how do you drive a concept of a digital identity that can actually have people move through those spaces any thoughts on how that would be developed yeah there's um I could shamelessly plug one of my company interests outside of PA which is just an academic company called the hub of all things which Google it is an interesting concept you have to do two things to answer your question you've got to put a value on your identity I mean I've been I've been on national TV talking about the subject and the common theme that we're starting to see is this idea that people are starting to realise that I've opted in or I opted in by accident to give and share my data so the concept there is you have to understand is that what we want you know do I want to do that so the idea of identity has to be understood in the context of you know you hear the Europeans going about the right to be forgotten and things like that and that's a similar analogy around regulation following technology technology following regulation I'll say quickly on the other side though you might want to be discovered you know in extreme forms if you want a car that actually is going to get out of the way if you're going to hit something you want to have a system that understands that particular moment with the right relevant parameters particularly something less less threatening would be to say I want to have information that is personalised to me that I become the centre effectively my personal cloud to use that phrase I can start to share information and start to get value trading not in a way that is traditional selling but actually is integrated so it becomes an augmented experience to see the different mindset it's an automation mindset but not being automated but being automated agency and support I'm a positivist by the way I always think everything is going to turn out for the good it's just one of my thoughts the idea that if you create it right I do generally believe it was in forms this morning I was reading around the value of society and automation the impact of robots jobs and productivity I think this is a really interesting whole area you have to understand the impact on society and I think I see it as a force of good to improve our lives improve people who need medical attention I can give you a long list of reasons what I think is good about what we could do here see how we're doing that time I think we're out of time you probably have other questions but Mark you'll be around if yes