1. Page 1 Jean-Noël Gorge 3 mai 1999 1/58 MarKant e c o n s e i l s Jean-Noël Gorge, Oct 18th 2006 1/29 EPITA IT Markets Basic Finance and Marketing Oct 18th 2006 Jean-Noël GORGE

2. Page 2 Jean-Noël Gorge 3 mai 1999 2/58 MarKant e c o n s e i l s Jean-Noël Gorge, Oct 18th 2006 2/29 Previous week V.I.P. (Very Important Points)

3. Page 3 Jean-Noël Gorge 3 mai 1999 3/58 MarKant e c o n s e i l s Jean-Noël Gorge, Oct 18 2006 3/29 Macro economy France GNP (PIB in French) Nations Budget Investments (households excluded) IT expenditures (household excl.) Euros 10 9 1700 270 230 75

4. Page 4 Jean-Noël Gorge 3 mai 1999 4/58 MarKant e c o n s e i l s Jean-Noël Gorge, Oct 18 2006 4/29 Investments and Growth +1,8% +3,5% -10,0 -5,0 0,0 5,0 10,0 15,0 20,0 25,0 1988198919901991199219931994199519961997199819992000200120022003 2004 20052006 PIBInvestissement

5. Page 5 Jean-Noël Gorge 3 mai 1999 5/58 MarKant e c o n s e i l s Jean-Noël Gorge, Oct 18 2006 5/29 IT Added value to businesses

6. Page 6 Jean-Noël Gorge 3 mai 1999 6/58 MarKant e c o n s e i l s Jean-Noël Gorge, Oct 18 2006 6/29 IT and job creation France 2006 –60 to 70 000 recruitment's in IT –Of which 15 to 20 000 net job creations

7. Page 7 Jean-Noël Gorge 3 mai 1999 7/58 MarKant e c o n s e i l s Jean-Noël Gorge, Oct 18 2006 7/29 IT employment perspective 207 000 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 58 000 IT Pros will retire in France from now to 2015* creation of 149 000 new jobs positions in IT from now to 2015* Scarcity of new graduates less students taking sciences

8. Page 8 Jean-Noël Gorge 3 mai 1999 8/58 MarKant e c o n s e i l s Jean-Noël Gorge, Oct 18 2006 8/29 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

9. Page 9 Jean-Noël Gorge 3 mai 1999 9/58 MarKant e c o n s e i l s Jean-Noël Gorge, Oct 18th 2006 9/29 Questions ?

10. Page 10 Jean-Noël Gorge 3 mai 1999 10/58 MarKant e c o n s e i l s Jean-Noël Gorge, Oct 18th 2006 10/29 Do we have long « cycles » in IT ???

11. Page 11 Jean-Noël Gorge 3 mai 1999 11/58 MarKant e c o n s e i l s Jean-Noël Gorge, Oct 18 2006 11/29 One way of describing a cycle

12. Page 12 Jean-Noël Gorge 3 mai 1999 12/58 MarKant e c o n s e i l s Jean-Noël Gorge, Oct 18 2006 12/29 +6 à +8% (e) +1,8% +3,5% -10,0 -5,0 0,0 5,0 10,0 15,0 20,0 25,0 1988198919901991199219931994199519961997199819992000200120022003 2004 20052006 PIBL&SInvestissement

13. Page 13 Jean-Noël Gorge 3 mai 1999 13/58 MarKant e c o n s e i l s Jean-Noël Gorge, Oct 18 2006 13/29 Software and software services (Syntec) growth inFrance (%)

14. Page 14 Jean-Noël Gorge 3 mai 1999 14/58 MarKant e c o n s e i l s Jean-Noël Gorge, Oct 18 2006 14/29 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

15. Page 15 Jean-Noël Gorge 3 mai 1999 15/58 MarKant e c o n s e i l s Jean-Noël Gorge, Oct 18th 2006 15/29 A little bit of history… Towards integration…

16. Page 16 Jean-Noël Gorge 3 mai 1999 16/58 MarKant e c o n s e i l s Jean-Noël Gorge, Oct 18 2006 16/29Cycles +/- 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

17. Page 17 Jean-Noël Gorge 3 mai 1999 17/58 MarKant e c o n s e i l s Jean-Noël Gorge, Oct 18 2006 17/29 HW Mature Techno. Emerging techno. Users Cycle phase 60's70's80's90's2000's

18. Page 18 Jean-Noël Gorge 3 mai 1999 18/58 MarKant e c o n s e i l s Jean-Noël Gorge, Oct 18 2006 18/29 60's70's80's90's Components Computers 360 & Co Punched Cards. LSI Caract. Displays VLSI Tapes, discs OS Batch 10 1 2000's HW Mature Techno. Emerging techno. Users Cycles phase

19. Page 19 Jean-Noël Gorge 3 mai 1999 19/58 MarKant e c o n s e i l s Jean-Noël Gorge, Oct 18 2006 19/29 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 10 1 10 2 2000's HW Mature Techno. Emerging techno. Users Cycles phase

20. Page 20 Jean-Noël Gorge 3 mai 1999 20/58 MarKant e c o n s e i l s Jean-Noël Gorge, Oct 18 2006 20/29 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 10 1 10 2 10 3 2000's HW Mature Techno. Emerging techno. Users Cycles phase

21. Page 21 Jean-Noël Gorge 3 mai 1999 21/58 MarKant e c o n s e i l s Jean-Noël Gorge, Oct 18 2006 21/29 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 10 1 10 2 10 3 10 4 100% of Internal users 2000's HW Mature Techno. Emerging techno. Users Cycles phase

22. Page 22 Jean-Noël Gorge 3 mai 1999 22/58 MarKant e c o n s e i l s Jean-Noël Gorge, Oct 18 2006 22/29 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 10 1 10 2 10 3 10 4 100% 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

23. Page 23 Jean-Noël Gorge 3 mai 1999 23/58 MarKant e c o n s e i l s Jean-Noël Gorge, Oct 18 2006 23/29 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

24. Page 24 Jean-Noël Gorge 3 mai 1999 24/58 MarKant e c o n s e i l s Jean-Noël Gorge, Oct 18 2006 24/29 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

25. Page 25 Jean-Noël Gorge 3 mai 1999 25/58 MarKant e c o n s e i l s Jean-Noël Gorge, Oct 18 2006 25/29 Industrial times IT challenges Design/Engineering Logistics Purchasing Sales Finance Mktg-Comm Problem = Integration Solution = "re-foundation" = ERP Design/Engineering Manufacturing

26. Page 26 Jean-Noël Gorge 3 mai 1999 26/58 MarKant e c o n s e i l s Jean-Noël Gorge, Oct 18 2006 26/29 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 10 4 100% of Internal users 2000's Business Integration Internet WAN, Fiber optics Internet,IP HTML, XML Objects Wireless 3G… 10 6 Internal and external

27. Page 27 Jean-Noël Gorge 3 mai 1999 27/58 MarKant e c o n s e i l s Jean-Noël Gorge, Oct 18 2006 27/29 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

28. Page 28 Jean-Noël Gorge 3 mai 1999 28/58 MarKant e c o n s e i l s Jean-Noël Gorge, Oct 18th 2006 28/29 Questions ?

29. Page 29 Jean-Noël Gorge 3 mai 1999 29/58 MarKant e c o n s e i l s Jean-Noël Gorge, Oct 18th 2006 29/29 Next lecture IT services