The term “Digital Enterprise” must have been banded around, by consultants, systems integrators, software and hardware vendors for at least the past 30 years.
I do recall my father talking about the installation of IBM mainframes and the changes that it would bring about in the early 70’s, but that was not quite the “Digital Enterprise” yet.
In the ’80’s and ’90’s the concept of the “Paperless Office” was pursued by the likes of Accenture et al. To this day this remains a myth, as paper consumption continues to increase. In all fairness so does the recycling effort. The point being though that digitisation of documents, a corner stone for the “Digital Enterprise”, lacks penetration, despite the pervasiveness of email.
In the meantime though, back end enterprise processes and some customer facing processes did receive the “digital” treatment, initially with COBOL, FORTRAN and other coding efforts over the years. Solutions were developed within the corporate walls, some were developed by academicians and programmers.
Eventually the move towards solutions from Oracle, SAP, EMC, etc became more prevalent, with it the next iteration of the “Digital Enterprise”. Significant amounts were spent on “backwards” integration efforts and companies became tied in to Service Agreements.
For the desktop, the development of the spreadsheet is great case study, with VisiCalc being the leading application in the initial stages, then being overtaken by Lotus 1-2-3, Quattro and Excel. Open Source in that period was represented by the GNOME free desktop software project. Spreadsheet solutions where then bundled with presentation and word processing software, and this is when Microsoft excelled (no pun intended), leaving Lotus behind.
The free and open-source software movement was boosted with the publication of the Linux operating system in 1991, leading to developments on desktop and server use.
In the 90’s the networking of computers then was the first true stab at creating the “Digital Enterprise”. The leading carrier of this message became Cisco Systems, providing the necessary networking infrastructure to connect computers internally and with the outside world, creating the “Connected World”.
The trust that enterprise placed on proprietary software platforms started to become a hinderance, especially with the advent of the .com business models, which gave rise to companies that were able to execute and deliver at a far faster pace than many traditional organisations. Had it not been for the tragic events of 9/11/2001 the organisational landscape we have today would look very different.
The “Digital Enterprise” was retrenched, emphasis placed on security and compliance, in addition to savings in cost, time etc. The shift from the “Old” Economy to the “New Economy” was unstoppable. Innovation became the buzz word. Corporate Board members were hurried by shareholders for their “Digital Strategies”. Roadmaps were developed to allow for the migration, especially in Government and Public Services.
The German government opened up a tender for their IT requirements, only to have it scrutinised for the lack of Open Source opportunities. With German software houses SAP and SUSE, which subsequently got acquired by Novell, sitting on opposite ends of the spectrum, key objections such as security and sustainability had to be addressed. The proof points for enterprise grade deployments were established.
More intelligence was placed into the networks, RFID tags started emerging, Software as a Service became a core part of the product offering.
In previous years business applications would spill over into the consumer market, but now the reverse was happening.
Apple’s introduction of the iPhone together with the App store allowed for the shift away from huge, bulky software applications, especially in the consumer market. Google then pushed the door even further open with the Android operating system, a low cost alternative.
The ability for users to publish their own content on sites such as YouTube for video, a myriad of blogging platforms, the emerging social media efforts such as LinkedIn, MySpace, and eventually Facebook, started to threaten the enterprise. Employees wanted to use similar applications in their work environment. The business world started to learn about “social”.
Not ignoring the hardware developments over the years, Moore’s Law still holds true, with processing power and speeds reaching exponential growth rates. At the same time storage costs kept falling, with capacity increasing. Portable storage devices, including USB memory sticks and iPods, presented enterprise with major challenges in managing security. Display technologies advanced at a rapid pace, moving away from CRT displays to the flatscreens that are now ubiquitous.
Against this backdrop where does that leave the “Digital Enterprise”? With the “Digital Enterprise” taking so many guises over the years, what actually is a “Digital Enterprise”?
Taking this definition into account, it becomes clear that the “Digital Enterprise” is an entity that is in a constant state of flux, as digital technologies evolve and develop. By the same token, it is the responsibility of management to incorporate change and innovation into the DNA of the organisation to be able to cope, adjust and react. John Chambers of Cisco went as far as instilling a culture of paranoia with the prospect that the company would be out of business within 2 years.
Excessive? Not really, if one considers upstarts like eBay, amazon, netflix, EasyJet, all relatively young companies, masked by the demise of other companies thru mergers and acquisitions. Speed and excellence in execution are paramount, more so than ever before. Discerning customers have social media at their disposal to amplify any mistakes.
In such a dynamic and difficult environment there are some key considerations that need to be constantly monitored and evaluated. Processes, people, products/services need to be technology enabled and supported. Fundamental are network infrastructure and the applications that run on those networks. Maintenance and upkeep need be minimised, while development and improvements/innovations are maximised, whether it is for operational efficiencies or improved customer interaction/experience.
Easier said than done, especially in an environment laden with legacy applications, where vendor updates occur once a month, when they need to occur right now, while the competition is widening their advantage.
This is where the Open Source option comes in, software solutions that are developed in an open, collaborative manner. While there are a number of advantages and disadvantages as in any option, the flexibility, speed and cost implications are of significant consideration for the future of the Digital Enterprise.
Once all the organisational infrastructure is in place, the last element that will undergo major shifts is the utilisation of the employee itself. Static job descriptions will be a minority with more emphasis placed on "swarming" and contracting the capabilities required and deployed at the right time and location.
It'll be interesting to see how that will play out.