Page 1 Jean-Noël Gorge 3 mai /58 MarKant e c o n s e i l s Jean-Noël Gorge, Oct 18th /29 EPITA IT Markets Basic Finance and Marketing Oct 18th 2006 Jean-Noël GORGE

Page 2 Jean-Noël Gorge 3 mai /58 MarKant e c o n s e i l s Jean-Noël Gorge, Oct 18th /29 Previous week V.I.P. (Very Important Points)

Page 3 Jean-Noël Gorge 3 mai /58 MarKant e c o n s e i l s Jean-Noël Gorge, Oct /29 Macro economy France GNP (PIB in French) Nations Budget Investments (households excluded) IT expenditures (household excl.) Euros

Page 4 Jean-Noël Gorge 3 mai /58 MarKant e c o n s e i l s Jean-Noël Gorge, Oct /29 Investments and Growth +1,8% +3,5% -10,0 -5,0 0,0 5,0 10,0 15,0 20,0 25, PIBInvestissement

Page 5 Jean-Noël Gorge 3 mai /58 MarKant e c o n s e i l s Jean-Noël Gorge, Oct /29 IT Added value to businesses

Page 6 Jean-Noël Gorge 3 mai /58 MarKant e c o n s e i l s Jean-Noël Gorge, Oct /29 IT and job creation France 2006 –60 to recruitment's in IT –Of which 15 to net job creations

Page 7 Jean-Noël Gorge 3 mai /58 MarKant e c o n s e i l s Jean-Noël Gorge, Oct /29 IT employment perspective new positions (net !) to be filled in France by 2015* Where to go to find candidates ? How to attract and retain ? Competition tougher than ever between IT and other industries papy-boom IT Pros will retire in France from now to 2015* creation of new jobs positions in IT from now to 2015* Scarcity of new graduates less students taking sciences

Page 8 Jean-Noël Gorge 3 mai /58 MarKant e c o n s e i l s Jean-Noël Gorge, Oct /29 Consequences for you : For 3 to 4 years (-> 2009 ?) market conditions are favorable to be recruited and promoted During the next ten years (one or 2 technical cycles) you must take every opportunity of developing other skills, talents or experiences. If you remain a «techy» only, your chances of being obsolete are maximum Management Supervision Company's functions and businesses

Page 9 Jean-Noël Gorge 3 mai /58 MarKant e c o n s e i l s Jean-Noël Gorge, Oct 18th /29 Questions ?

Page 10 Jean-Noël Gorge 3 mai /58 MarKant e c o n s e i l s Jean-Noël Gorge, Oct 18th /29 Do we have long « cycles » in IT ???

Page 11 Jean-Noël Gorge 3 mai /58 MarKant e c o n s e i l s Jean-Noël Gorge, Oct /29 One way of describing a cycle

Page 12 Jean-Noël Gorge 3 mai /58 MarKant e c o n s e i l s Jean-Noël Gorge, Oct /29 +6 à +8% (e) +1,8% +3,5% -10,0 -5,0 0,0 5,0 10,0 15,0 20,0 25, PIBL&SInvestissement

Page 13 Jean-Noël Gorge 3 mai /58 MarKant e c o n s e i l s Jean-Noël Gorge, Oct /29 Software and software services (Syntec) growth inFrance (%)

Page 14 Jean-Noël Gorge 3 mai /58 MarKant e c o n s e i l s Jean-Noël Gorge, Oct /29 Cycles ? Probably ! Personal opinion, based on experience Duration : more or less 10 years Time it takes for a major technology to roll all along Gartner Groups curve

Page 15 Jean-Noël Gorge 3 mai /58 MarKant e c o n s e i l s Jean-Noël Gorge, Oct 18th /29 A little bit of history… Towards integration…

Page 16 Jean-Noël Gorge 3 mai /58 MarKant e c o n s e i l s Jean-Noël Gorge, Oct /29Cycles +/- a decade (10 years) During first 2 years, leaders converge in their technical decisions, which in turn are adopted by followers : massification –Less players on supply side (mergers…) –Similar behaviors and decisions within «major-accounts» (users – clients) Following same learning curve (cf Gartner), some ahead Dominos effect –Unit costs are dropping as time pasts –Increasing yields

Page 17 Jean-Noël Gorge 3 mai /58 MarKant e c o n s e i l s Jean-Noël Gorge, Oct /29 HW Mature Techno. Emerging techno. Users Cycle phase 60's70's80's90's2000's

Page 18 Jean-Noël Gorge 3 mai /58 MarKant e c o n s e i l s Jean-Noël Gorge, Oct /29 60's70's80's90's Components Computers 360 & Co Punched Cards. LSI Caract. Displays VLSI Tapes, discs OS Batch 's HW Mature Techno. Emerging techno. Users Cycles phase

Page 19 Jean-Noël Gorge 3 mai /58 MarKant e c o n s e i l s Jean-Noël Gorge, Oct /29 60's70's80's90's Components Components integration Computers 360 & Co 370's Punched Cards. LSI Caract. Displays. VLSI Tapes, discs OS Batch Caract. Displays VLSI Tapes, discs OS Batch Point to point Microcode OSI 7 DB time-sharing 's HW Mature Techno. Emerging techno. Users Cycles phase

Page 20 Jean-Noël Gorge 3 mai /58 MarKant e c o n s e i l s Jean-Noël Gorge, Oct /29 60's70's80's90's Components Components integration Systemss Integration Computers 360 & Co 370'sMinis Punched Cards. LSI Caract. Displays. VLSI Tapes, discs OS Batch Point to point Microcode OSI 7 DB time-sharing Caract. Displays VLSI Tapes, discs OS Batch Point to point Microcode OSI 7 DB time-sharing Microprocess. Graphic Displays LAN DB-R Client/Server 's HW Mature Techno. Emerging techno. Users Cycles phase

Page 21 Jean-Noël Gorge 3 mai /58 MarKant e c o n s e i l s Jean-Noël Gorge, Oct /29 60's70's80's90's Components Components integration Systemss Integration Services Integration Computers 360 & Co 370'sMinis Micros Punched Cards. LSI Caract. Displays. VLSI Tapes, discs OS Batch Point to point Microcode OSI 7 DB time-sharing Microprocess. Graphic Displays LAN DB-R Client/Server Caract. Displays VLSI Tapes, discs OS Batch Point to point Microcode OSI 7 DB time-sharing Microprocess. Graphic Displays LAN DB-R Client/Server WAN, fibre opt. Internet, IP HTML, XML Objects % of Internal users 2000's HW Mature Techno. Emerging techno. Users Cycles phase

Page 22 Jean-Noël Gorge 3 mai /58 MarKant e c o n s e i l s Jean-Noël Gorge, Oct /29 60's70's80's90's Components Components integration Systemss Integration Services Integration Computers 360 & Co 370'sMinis Micros Punched Cards. LSI Caract. Displays. VLSI Tapes, discs OS Batch Point to point Microcode OSI 7 DB time-sharing Microprocess. Graphic Displays LAN DB-R Client/Server Caract. Displays VLSI Tapes, discs OS Batch Point to point Microcode OSI 7 DB time-sharing Microprocess. Graphic Displays LAN DB-R Client/Server WAN, fibre opt. Internet, IP HTML, XML Objects % of Internal users 2000's Business Integration Internet WAN, Fiber optics Internet,IP HTML, XML Objects Wireless 3G… 10 6 Internal and external HW Mature Techno. Emerging techno. Users Cycles phase

Page 23 Jean-Noël Gorge 3 mai /58 MarKant e c o n s e i l s Jean-Noël Gorge, Oct /29 Towards integration Each layer comes on top, previous layers never disappear !!! (See millenium bug) 70's Mainframes Cobol 370 CICS etc 80's Minis & department's IT (VAR Digital, HP, DG) 90's2000's Micros ( Client/Server, ERP) 60's Assembler & Co

Page 24 Jean-Noël Gorge 3 mai /58 MarKant e c o n s e i l s Jean-Noël Gorge, Oct /29 Digital Times Industrial Era Napoléon III Railways Digital Era Chirac Internet Mass production, « Pushed » flows Raw Materials Heavy « tangible » investments Taylorism/Marxism Networked Organizations Pulled flows « On demand » Fast and lean Information Immaterial

Page 25 Jean-Noël Gorge 3 mai /58 MarKant e c o n s e i l s Jean-Noël Gorge, Oct /29 Industrial times IT challenges Design/Engineering Logistics Purchasing Sales Finance Mktg-Comm Problem = Integration Solution = "re-foundation" = ERP Design/Engineering Manufacturing

Page 26 Jean-Noël Gorge 3 mai /58 MarKant e c o n s e i l s Jean-Noël Gorge, Oct /29 Digital times IT systems Digital times IT systems HW Mature Techno. Emerging techno. Users Cycles phase 90's Services Integration Micros Microprocess. Graphic Displays LAN DB-R Client/Server WAN, fibre opt. Internet, IP HTML, XML Objects % of Internal users 2000's Business Integration Internet WAN, Fiber optics Internet,IP HTML, XML Objects Wireless 3G… 10 6 Internal and external

Page 27 Jean-Noël Gorge 3 mai /58 MarKant e c o n s e i l s Jean-Noël Gorge, Oct /29 Need for Internal Integration Company A Digital times IT systems xxNet Conception Fabrication Logistique Achats Ventes Finance Mktg-Comm Need for external integration Company B Design/Engineering Logistics Purchasing Sales Finance Mktg-Comm Design/Engineering Manufacturing

Page 28 Jean-Noël Gorge 3 mai /58 MarKant e c o n s e i l s Jean-Noël Gorge, Oct 18th /29 Questions ?

Page 29 Jean-Noël Gorge 3 mai /58 MarKant e c o n s e i l s Jean-Noël Gorge, Oct 18th /29 Next lecture IT services