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1、The Virtual Enterprise BlueprintSix building blocks for openness,innovation,and sustained growthIBM Institute for Business ValueThe IBM Institute for Business Value develops fact-based,strategic insights for senior business executives on critical public and private sector issues.For more information

2、,please visit: IBM Consulting can helpIBM Consulting is a new partner for the new rules of modern business.We embrace an open way of working by bringing a diverse set of voices and technologies together.We collaborate closely,ideate freely,and swiftly apply breakthrough innovations that drive expone

3、ntial impact to change how business gets done.We believe open ecosystems,open technologies,open innovation,and open cultures are the key to opening opportunities and the way forward for modern business and for our world.We want to work together,create together,and rethink whats possible together.For

4、 more information,please visit: technologies like AI,automation,blockchain,the Internet of Things(IoT),hybrid cloud,and quantum computing have matured to a level where they can make a profound impact on business outcomesprovided an enterprise has the capabilities and infrastructure to leverage them.

5、Seeking to capitalize on this,organizations are digitally transforming themselves to become technology,platform,and experience companies.When the pandemic delivered its collective sucker punch,the move toward digital only accelerated,as organizations transitioned operations to meet ever-changing sta

6、keholder demands.The resulting growth in virtualization technology also crystallized the emergence of the advanced organizational and operating model we identified in our 2021 report“The Virtual Enterprise:The Cognitive Enterprise in a Virtual World.”Here,we dive deeper into the Virtual Enterprise a

7、nd explore the individual building blocks that form the essence of this next-generation organization.Together,they provide the foundation required to power a world-class enterprise,positioning it to drive growth today and sustainability for tomorrow.The Virtual Enterprise BlueprintSix building block

8、s for openness,innovation,and sustained growthMark FosterChairmanIBM ConsultingJohn GrangerChief Executive OfficerIBM Consulting2ContentsIntroduction:The Virtual Enterprise Blueprint6 Chapter 1:The Power of Market-making Platforms and Ecosystems22 Chapter 2:The Spark of Science and Data-led Innovati

9、on38 Chapter 3:The Magic of Extended Intelligent Workflows54 Chapter 4:The Urgency of Sustainability and Impact70 Chapter 5:The Creativity of Inclusive Human-Technology Partnerships86 Chapter 6:The Imperative of Open,Secure Hybrid Cloud and Networks102 ConclusionIntroductionThe Virtual Enterprise Bl

10、ueprint1Over the past few years,we have moved toward a tipping point where enterprises across the world have looked to leverage technology holistically to transform their business models.We have seen digital transformation move from the front or edge of the organization to deep into the core.At the

11、same time,technologies such as AI,automation,IoT,blockchain,and 5G have reached a level of maturity that can be leveraged at scale to drive real impact on business outcomes.Organizations across all industries are seeking to become technology,platform,and experience companies.We have called this evol

12、ution the emergence of Cognitive Enterprises,which are brought to life by the imagining of market-making platforms,the shaping of Intelligent Workflows,and a deeper focus on experience and humanity.The COVID crisis has had its impact on these Cognitive Enterprises.It has accelerated digital transfor

13、mation journeys;reinforced the importance of applying exponential technologies to produce more efficient,effective,and flexible processes;and clarified the case for the leverage of hybrid cloud infrastructures to deliver adaptive consumption models and services.We have seen that the 3 main building

14、blocks of the Cognitive Enterprise have been stretched by the new reality.Market-making business platforms have had to digitize even more quickly and extend their remit wider into new ecosystems and partners;Intelligent Workflows have had to prioritize the use of extreme automation and AI to meet ma

15、ss customer and employee connectivity and service needs;and new definitions of experience and humanity have emerged from the need to keep customers,employees,and citizens safe and healthy.The truth is that the virtualization forced by the pandemic is actually a key transformational theme that has be

16、en becoming more and more important anyway.We see this recent experience as accelerating the emergence of the Virtual Enterprise as the next generation of organizational and operating model (see page 3).The Virtual Enterprise is powered by a Golden Thread of Intelligent Workflows that connect ecosys

17、tem participants for shared value.It builds upon the drivers that we have seen for a while and takes the potential to the next level.The Virtual Enterprise re-evaluates the need for physical assets,infrastructure,and talent and opens the potential for extreme digitalization as well as extended value

18、 chains and new partnership approaches.The single most important characteristic of the Virtual Enterprise is“openness.”This openness brings value at 3 levels(see page 2 figure):Inside:Inside the enterpriseconnecting divisions and functions in more collaborative and agile workflowsOutside:With partne

19、rs outside the enterprise who become ever more critical to delivering the core purpose of the businessOut there:With the wider ecosystem that allows true platform economics to play out and the enterprise to take advantage of all those who wish or need to connect with its intent.2Figure 1The Virtual

20、Enterprise is based on 3 levels of opennessPhysical Business platformIntra organizationIntelligent workflowEmployedToolsOn prem/privateLocalInsideOutsideOut thereSharedJoint platform PartnershipIntegrated workflowContractedNetworkPublic cloudElsewhereVirtualOpen platform EcosystemOpen extended workf

21、lowAccessedStandardsHybrid multicloudAnywhereThe extremes of virtual access to customers and work colleagues over the past year have also accelerated a reset of the human-technology interface.New tools and ways of working have become commonplace overnight.The digital channel has become a primary sou

22、rce of engagement,unleashing new potential for markets and access,as well as creating new challenges for recreating empathy,sense of belonging,and human connection.Working relationships and collaboration have also been tested and enabled by ever-advancing software and technology solutions.The pandem

23、ic experience has also reinforced the degree to which everything is connected around the world and the impact humanity has on itself and the planet.The Virtual Enterprise therefore operates in an environment where purpose,intent,and wider societal impact have come to the fore.The potential to align

24、ecosystems as solutions to the big issues of climate,health,and equality is real.As sustainability and stakeholder capitalism become C-suite imperatives,the new technology-enabled business models that are emerging have a critical role to play.The Virtual Enterprise arrives3.Extended Intelligent Work

25、flows4.Sustainability and Impact5.Inclusive Human-Technology Partnerships1.Market-making Platforms and Ecosystems2.Science and Data-led Innovation6.Open,Secure Hybrid Cloud and NetworksThe Virtual Enterprise makes ecosystems the heart of its strategy to enhance innovation,make markets,and massively

26、enhance capabilities.3Openness1.Market-making Platforms and EcosystemsOpenness is the defining characteristic of the Virtual Enterprise.Most importantly,openness animates the stretching of the business platforms that are being envisioned to encompass wider ecosystems.We see organizations recognizing

27、 the power of combining platforms to seize new markets,as well as recognizing that the scale of the impact that is required demands this alignment with other substantive players.By optimizing platform economics,open connectivity,and frictionless engagement,the Virtual Enterprise enables all particip

28、ants across market-making platforms and ecosystems.Acceleration2.Science and Data-led InnovationThe openness of the Virtual Enterprise accelerates access to new sources of product and service innovation.It takes a scientific discovery approach,constantly experimenting,relying on predictive and prosp

29、ective analysis fueled by the massive amounts of data it can access from itself and its ecosystem partners.More and more industries are seeing the value that used to be the preserve of R&D-led industries(for example,pharmaceuticals)as they look forward rather than backward and mine the information i

30、n their value chains to spark creativity.Agility3.Extended Intelligent WorkflowsThe Intelligent Workflow is the Golden Thread that animates the Virtual Enterprise.It creates the backbone of the value chains that bind the ecosystem participants.As the reach of the workflows is extended,the power of a

31、pplied technologies such as extreme automation,AI,IoT,and others is multiplied to unlock efficiency and differentiation and render the platforms ever more attractive.Virtualization adds new opportunities for networks,connectivity,and skills engagement to bring the workflows to life and drive agility

32、.Purpose4.Sustainability and ImpactThe Virtual Enterprise reinforces the extent of connectedness around the world and the impact of humans on each other and on the planet.It aligns purpose and intent with wider societal impacts.With sustainability and stakeholder capitalism taking hold in the C-suit

33、e,new ecosystem business models are helping provide solutions to the biggest challenges of our time around climate,health,security,and equality.This plays an increasing part,too,in the way that customers,partners,and employees feel about engaging with the organization.Culture5.Inclusive Human-Techno

34、logy PartnershipsThe Virtual Enterprise embraces the new tools and ways of working that have become the norm during the pandemic.It takes advantage of the accelerated reset of human-technology interfaces,including digital channels to customers and seamless virtual working across processes.It also,th

35、ough,recognizes the need to build new forms of leadership,inspiration,engagement,and connection to deal with exacerbated challenges of human empathy,creativity,and sense of belonging.Resilience6.Open,Secure Hybrid Cloud and NetworksThe Virtual Enterprise takes full advantage of the flexibility and n

36、imbleness promised by hybrid cloud architectures.It enables the openness of the enterprise to connect with business partners as well as access the full potential of leading open technologies to drive innovation.The Virtual Enterprise is therefore underpinned by robust networks and secure technology

37、infrastructure,with the right workloads within the right overarching architecture and plug-compatible with the world around.The dual demands of adaptability and resilience are therefore prerequisites of the journey to become a Virtual Enterprisea journey on which many organizations have now embarked

38、.44Openness can help broaden business platforms to encompass expanded ecosystems.Organizations are recognizing the power of combining platforms to seize new markets;theyre also recognizing that the scale required demands this alignment with other substantive players.By optimizing platform economics,

39、open connectivity,and frictionless engagement,the Virtual Enterprise enables participants across market-making platforms and ecosystems.The Virtual Enterprise Blueprint Chapter 1The Power of Market-making Platforms and Ecosystems Lula MohantyGeneral Manager Asia PacificJason KelleyManaging Partner,G

40、M Global Strategic PartnersJamie CattellManaging Partner,Service Line Leader Enterprise StrategyGolnar PooyaClient Partner Enterprise Strategy&iX The Power of Market-making Platforms and Ecosystems 5 66The Virtual Enterprise arrivesHow open platforms and ecosystems can boost valueThe biggest strateg

41、ic idea of the Virtual Enterprise is the combination of platform thinking with the concept of ecosystems.The Virtual Enterprise makes ecosystems the heart of its strategy to enhance innovation,make markets,and massively enhance capabilities.It requires leadership to have a clear vision of the growth

42、 potential that comes from creating strategic relationships with other organizations,as well as the competitive advantage that comes from orchestrating the extended business platform in which others wish and need to participate.The openness of the ecosystem increases its reach and value creation pot

43、ential while enabling those entities that are“in the club”to share in maximum business outcomes,within industry contexts as well as with new cross-industry combinations.The potential for ecosystems to connect with customers and participants is given a new release through the power of digital connect

44、ivity and the sharing of information and new combinations of data.And thanks to technology architectures built on open,secure standards and software-defined networks,such engagement is increasingly straightforward.Externalized business processes and extended workflows,differentiated through the comb

45、ined power of applied technologies,create new market opportunities for all participants.We can see industry and cross-industry platforms and ecosystems providing solutions and standards that individual organizations cannot.What are platforms and ecosystems?Platforms enable organizations to gain a co

46、mpetitive advantage by allowing them to tap into resources otherwise unavailable to themwhether due to scale,maturity,or capitaland develop stronger offerings themselves.Platforms can exist across functions within a single organization,across organizations within an industry,across industries,across

47、 the consumer market,or across a range of technologies.On a platform,all players provide value to others,and they extract greater value for themselves through the benefits of the network.Ecosystems are the basis for continuous collaboration,co-creation,and open innovation.They move working relations

48、hips beyond the transactional or tactical.Within an ecosystem,the collective intelligence,capabilities,and technology of the networked participants are harnessed for enhanced value propositions and greater value creation.Ecosystems can foster cooperation and trust among partners,suppliers,customers,

49、and stakeholders.Within an organization,they can break down silos and encourage cross-departmental collaboration.7 The Power of Market-making Platforms and Ecosystems 7Many of the bigger challenges facing the world need this kind of collaboration.Whether it is for extended public-private partnership

50、s(such as those that provide vaccine solutions for the pandemic)or the alignments of players that drive sustainable impact on climate change or food security,the power of open,extended,and secure platforms is very evident.Blockchain consortia have been one class of industry and cross-industry ecosys

51、tem play that has arisen over the past few years.They help participants trust the data as they remove cost,drive efficiency,and securely“know”all the participants throughout the workflows.The Virtual Enterprise arrivesThe Virtual Enterprise arrives100%80%60%40%20%0%2xPlatform business models20182020

52、20224xBusiness ecosystems4xPartner networks within industry4xPartner networks outside industryThe applications that have emerged first have been in areas such as supply chain,provenance,and identity.We can imagine that the combination of secure and reliable identification of participants and status

53、of transactionscombined with the immediacy of real-time synchronizationwill only enhance the viability and creativity in the shaping of platforms and ecosystems(see Figure 1.1).Figure 1.1Businesses are increasingly opening up Source:“COVID-19 and the future of business:Executive epiphanies reveal po

54、st-pandemic opportunities.”IBM Institute for Business Value.ibm.co/covid-19-future-business Q:To what extent is your organization participating in the following networks and business models(2 years ago,today,or in 2 years)?Percentages represent respondents that answered high or very high;n=3,450,fie

55、lded April-June 2020.88As a first step toward a platform business model,many organizations that market physical products or services are creating new digital experiences that enhance the originals.For example,digital services that support physical blood monitoring could send alerts to trigger pharma

56、cological testing.The power of digital solutions to drastically reduce barriers to entry and create new cost benchmarks is real,tooas the opportunity expands to replace expensive capital expenditure with shared operating expense.Automation and zero-touch approaches reinforce this potential.Leveragin

57、g the transformative value of opennessWith openness at the heart of the Virtual Enterprise,ecosystems have become the engine that drives performance and impact across economies.For enterprises battling dislocation and disruption,extended partner platforms can promote agility and resilience,and open

58、new revenue opportunities.For businesses exploring such opportunities,ecosystems have been the essential vehicle for growth and expansion.New IBM Institute for Business Value(IBV)research reveals that the companies most focused on ecosystem engagement across 16 industries generated higher growth and

59、 more business value.During the pandemic,revenue growth captured by these ecosystem leaders outpaced that of others by 5 to 1.1 But value does not automatically emerge from ecosystem engagement.If an enterprise continues to operate in old-style analog ways,then potential is squandered.While most org

60、anizations now participate in and/or own a variety of platforms and have ecosystem strategies in place,those efforts can still deliver disappointing results.Whats required is an intentional effort to digitally transform the business.9 The Power of Market-making Platforms and Ecosystems 9Enterprises

61、must take the correct,considered steps to create and capture value from existing and new ecosystems.Only by appropriately cultivating a value-focused strategymanaging a portfolio of value opportunities and their riskscan an organization fully capitalize on market-making platforms and ecosystems tran

62、sformative potential.What does ecosystem leadership look like?There is no singular model,no one way to derive value from a platform and ecosystem.But leaders distinguish themselves by identifying the unique strategies and operational approaches that fit both their enterprises and the environments th

63、ey operate in.The IBV identified leading enterprises by assessing their success across 2 principal dimensions:their value capture expectations in an ecosystem and their maturity level within that ecosystem.Leaders demonstrate high ecosystem maturity and operate in a high-potential value capture envi

64、ronment.These organizations are not passive.With so much on the line,and so much already invested,a successful enterprise continually focuses on protecting and growing its status across both of those vectors.These ecosystem leaders describe the source of their value as:“We own the customer relations

65、hip.”More than half of our surveyed leaders cite“strengthening existing strategic relationships”as a top success factor.They also increase investment in innovation that includes new products or services,and look to gain access to new industries,markets,and customers.2We found that successful leaders

66、hip depends on 4 priorities:3Openness:60%of leading participants report a significant shift from proprietary to open technologies.Customer relationship:74%point to deeper customer relationships as a key value driver.Innovation:49%say that innovation will be required to maximize value creation.Agilit

67、y:42%identify a lack of organizational agility as one of the biggest impediments to success.The Virtual Enterprise brings these priorities to life,leveraging platforms and ecosystems.And 3 key insights drive that activation:Connectivity Partnerships Technology 1010The Virtual Enterprise utilizes mar

68、ket-making platforms and ecosystems for practical,tangible reasons:Connectivity drives growth and value.Outsized performance is increasingly driven by ecosystem engagement.According to a recent IBV study,technology adopters that invest in ecosystems gained a revenue growth premium of 40%.4Achieving

69、that success requires a modern,digitally savvy operating model and mindset.By aligning an enterprise with business priorities and optimizing ecosystem engagement,performance impact can be considerable.The Virtual Enterprise puts ecosystems at the heart of strategic efforts to spur innovation,make ma

70、rkets,and massively enhance capabilities.Key insight#1Connectivity leads to growth and valueOpen platforms and ecosystems offer new avenues for growth,efficiency,and innovation.Connectivity begins with a commitment to platforms,which IBVs proprietary research shows is increasing broadly.In fact,most

71、 of the organizations surveyed say they will either own or participate in a business platform over the next 3 years to support their market growth,efficiency,and innovation strategies(see Figure 1.2).Whats more,at least 60%of organizations will own or participate in internal cross-function,mass-cons

72、umer,cross-market,and cross-industry platforms.And 72%of organizations will own or participate in technology platforms.Platforms distribute the supply chain,moving it from inside the enterprise to outside,shifting traditional operations and expenses to a larger network,and enabling accelerated fulfi

73、llment and value.11 The Power of Market-making Platforms and Ecosystems 1119%57%15%Internal cross-function platforms to use tech and improve efficiencyMass consumer platforms generate insights with new value popsositions9%56%9%4%45%11%Cross-market platforms to facilitate processes across ecosystems3

74、2%40%28%Technology platforms to enable apps and infrastructure underpinning workflows18%26%23%Industry platforms to deliver key capabilitiesMass-consumer platforms to generate insights with new value propositionsOwnParticipateBothAre you prepared to drive growth through connectivity?Q1 How can your

75、organizations business platforms embrace wider ecosystems?Q2 Which value-focused strategies and initiatives will your organization adopt to intentionally manage platform and ecosystem value opportunities and associated risks?Q3 How can your organizations goals and tactics enhance platform participat

76、ion and ecosystem maturity to create and capture value?Figure 1.2Projected platform business model activity(2023)Source:“The Virtual Enterprise:The Cognitive Enterprise in a virtual world.”IBM Institute for Business Value.https:/ibm.co/virtual-enterprise 1212SBI YONOSpurring growth with a platform a

77、nd ecosystemThe State Bank of India has been around for more than 200 years.Yet as Indias economic ascent gained steam in recent years,the bank found itself losing market share.To attract a younger,more digital-savvy customer base,the bank created a digital bank,online marketplace for third-party of

78、ferings,and digital financial superstore under a new brand,SBI YONO(“You Only Need One”).Partnering with more than 100 e-commerce sellers,SBI YONO quickly grew into a mobile platform with more than 10 million daily logins and 64 million downloads.Since the launch of the ecosystem,SBI has implemented

79、 over 100 digital customer journeys,hosted over 650,000 mutual fund transactions,and sold over 400,000 life insurance policies through YONO.SBIs 2020 annual report mentions YONO no fewer than 96 times,almost on every page.Today,in line with its success in creating and capturing value from the extend

80、ed ecosystem,SBIs strategy has shifted to expand network presence,as it adds an average of 15 new use cases per month to the platform.13 The Power of Market-making Platforms and Ecosystems 13Partnership has become an imperative for most organizations to find value,focusing on fewer,deeper ecosystem

81、combinations to build out their growth agendas.Key insight#2Deeper partnerships serve as strategic driversThe Virtual Enterprise does not operate in a vacuum.It relies on partnerships to leverage platforms and ecosystemsand,in the best cases,to connect ecosystems of ecosystems.Ecosystem leaders are

82、not narrowly focused on short-term transactional gains for their own businesses.They take a broader view of ecosystem value opportunities for all participants.In fact,according to IBV research,72%of ecosystem leaders stress that competitors within their industries also gain value from ecosystems,and

83、 67%note value to competitors outside their industries.5 Rather than provoke competitive anxiety,this leader group embraces ecosystem engagement as a win-win game:When ecosystem value is enhanced for others,it helps their own businesses realize even more opportunity.These findings illustrate the imp

84、ortance of generating positive ecosystem dynamics for participants rather than focusing purely on immediate competitive gains.Such positive dynamics could enable the ecosystems to grow within and across industries and even connect to other ecosystems,creating an inclusive ecosystem of ecosystems for

85、 value creation and capture(see Figure 1.3).Partnership is the key strategic tool to build out an ecosystem of ecosystems.As another IBV survey reveals,54%of executives say drawing ecosystems together is one of the most important drivers for their organizations digital transformations.6One critical

86、obstacle to keep in mind:As enterprises engage in multiple platforms and ecosystems,they may be pursuing multiple strategies in multiple places at the same time.This can limit value capture if an enterprises ecosystem prioritieswhich may be many and wide-rangingare not appropriately aligned to busin

87、ess-performance priorities and a singular overall strategic vision for the business.In fact,even in single-ecosystem situations,such alignment is critical in optimizing value capture.1414Figure 1.3Its all about dynamics:Ecosystem of ecosystemsEcosystem 1Ecosystem 2Ecosystem 3Is your organization rea

88、dy to form deeper,more strategic partnerships?Q1 How will you engage all parts of your organization to fulfill the growth potential that comes from creating and fostering strategic ecosystem partnerships?Q2 How will your organization enhance the viability and creativity of platforms and ecosystems,i

89、ncluding the support of secure and reliable identification of participants and the clarity of transactions status?Q3 What plans have you put in place to build new partnerships and ecosystems of ecosystems,whether to explore new market opportunities,externalize business processes,extend Intelligent W

90、orkflows,access exponential technologiesor all of the above?15 The Power of Market-making Platforms and Ecosystems 15Digital Health Pass Tackling pandemic-era challenges through partnershipsThe Digital Health Pass helps organizations as they strive to reopen in the wake of COVID-19 and provide indiv

91、iduals with a privacy-preserving way to voluntarily share their COVID-19 test results or vaccination status.It is the outcome of a collaboration across industries and existing ecosystems.Organizations can make data-driven decisions for configuring a health pass as they look to mitigate risk,take act

92、ion where needed,and communicate effectively.IBM is invested in collaborating with COVID-19 testing and vaccination providers,technology companies,and other consortia and alliances around digital health passes.The solutionbased on IBM blockchain technologyprovides organizations an efficient way to v

93、erify COVID-19 health credentials in order to bring employees back to offices,travelers back to travel,students back to campuses,concert goers back to music venues,and sports fans back to stadiums.It does this while also allowing individuals to maintain control of their personal health information a

94、nd share it in a way that is secured,verifiable,and trusted.The Power of Market-making Platforms and Ecosystems 1616New and emerging technologies grounded in principles of openness and standards,like blockchain and hybrid cloud,underpin the acceleration of this opportunity.Key insight#3Technology an

95、d openness underpin value accelerationTechnology platforms are the backbone of the Virtual Enterprise.The modern business ecosystem is built on technology and the open,trusted,innovative engagement that a digital platform can provide.Organizations have begun placing increasing emphasis on tech platf

96、orms,allocating 84%more investment there since 2017,according to IBV research.The level of investment continues to accelerateas does their anticipated return on investment from those efforts(see Figure 1.4).By 2023,executives expect to invest nearly 6%of revenue in technology platforms and to glean

97、almost a 12%return on that investment.7Despite that positive trajectory,and the clear lessons of 2020,tech maturity for many organizations remains lagging.In fact,tech-related impediments to strategy implementation were cited repeatedly by respondents to a recent IBV survey:44%complained about the e

98、xisting state of their enterprises tech infrastructure and the risk of technical difficulties when connecting operations,43%pointed to inadequate organizational agility,and 39%highlighted inadequate tech investments.8 The solution to leapfrogging over these impediments is technology itself.The conve

99、rgence of exponential technologies such as AI,blockchain,edge computing,and hybrid cloud increasingly enables open,expanded,trusted ecosystems to be integrated and intelligentproviding solutions while limiting,rather than exacerbating,risks.In another recent IBV survey,for instance,3 out of 4 respon

100、dents say that establishing a hybrid cloud can help draw ecosystems closer together,and 39%say they expect hybrid cloud to accelerate innovation by expanding partner solutions.917 The Power of Market-making Platforms and Ecosystems 1760%40%20%0%Investment as%of total revenue/budgetTechnology platfor

101、ms201720202023ROITechnology platforms3%5%6%8%17%50%What is your capability for embracing open technology platforms?Q1 How is your organization actively leveraging technology and openness to create or participate in industry-based and cross-industry ecosystems?Q2 In what ways are you investing in pla

102、tform differentiation,trust,and security to transform your business models,create new opportunities for growth,and identify fresh benchmarks of cost and efficiency?Q3 What are your plans for accelerating your organizations objectives and openness through the infusion of exponential technologies such

103、 as AI,automation,blockchain,IoT,hybrid cloud,and quantum computing?Figure 1.4Digital platform growth in investment and returnsSource:“The Virtual Enterprise:The Cognitive Enterprise in a virtual world.”IBM Institute for Business Value.https:/ibm.co/virtual-enterprise 181819SchlumbergerImproving per

104、formance with leading-edge technology and opennessSchlumberger provides leading digital solutions and deploys innovative technologies to enable performance and sustainability for the global energy industry.The organization is accelerating customers move to the cloud with its DELFI cognitive explorat

105、ion and production(E&P)environment,where customers teams can collaborate freely across boundariesbreaking down traditional data silos.By providing access to the companys cutting-edge E&P solutions and applications,the DELFI environment enables energy companies to create new data-driven workflows and

106、 adopt game-changing technologies such as AI,analytics,and automation.Its“write once,deploy anywhere”approach helps ensure faster development of applications and workflows,and overall platform performance for customer-specific requests,leading to improvement in volume and velocity.The reduction in c

107、ustomers total cost of ownership(product,service,and operational costs)is expected to be 10 to 20%.Customers and partners worldwide can integrate their deployment of the DELFI environment with the OSDU Data Platform,the industry standard for energy data.Schlumberger intends to expand the global addr

108、essable market from under 50%today to potentially almost the entire world.The Power of Market-making Platforms and Ecosystems 19Action guideConverting platforms and ecosystems into valueThe Virtual Enterprise will be the anchor of the future economy.As our IBV research confirms,platforms and ecosyst

109、ems are more prominent than ever and vital to driving business performance.Tailoring your strategy to your specific situation unlocks business value.And aligning activities and goals captures that value.The scale of the strategic leap that can come from open,ecosystem,and platform thinking is very c

110、onsiderable and can go to the core of the way an organization looks at itself.Platforms and ecosystems must be at the core of the enterprise,not on the periphery as an additional facet to the business.Virtualization and new connectivity models allow smaller participants,such as SMBs and even individ

111、uals,to participate in such extended ecosystem plays as they become more attractive and add higher value.The cultural implications of being an effective virtual participant in ecosystems are also huge.Ecosystems need to become the primary social system and focal points of interaction and energy of t

112、he participating organizations.The persona of an organization and its core competence need to be aligned to this intent.Leadership teams need to develop mutual trust as they make joint commitments and create an open culture,which means letting go of many aspects of proprietary ownership and control.

113、Here is a 6-step outline for converting the potential of platforms and ecosystems into value:Tune your strategy Identify value creation and value capture opportunities.Prioritize levers aligned with these opportunities to capture value at speed and scale.Test and confirm that value capture and value

114、 realization meet specific milestones.Transform your model Assess the implications of any new strategy for your operating model.Prepare to adjust the model so all components of the business work together.Develop foundational capabilities geared to realize value from the ecosystem.Reinforce your cult

115、ure Foster a mindset shift to emphasize collaboration and co-creation.Create incentive structures and targets that de-emphasize short-term transactional opportunism in favor of collaboration and co-creation.Invest in programs that drive internal and external sharing,partnering,and openness.Orchestra

116、te your participation Define various partner roles,key rules,and essential collaboration tools.Confirm which ecosystem role you have(and which you want),and where new or hidden value might reside;not all participants find value in the same ways or at the same levels.Support holistic network developm

117、ent,which aids value creation and capture for all.Execute with agility Adopt an agile execution structure.Leverage co-creation,co-execution,and co-operation to accelerate idea development and value capture(using an end-to-end Garage model).10 Act on experiments and positive opportunities in parallel

118、 to fuel real-time progress.Enable future progress Invest in open and secure technology architecture to feed rapid integration,engagement,and expansion.Utilize pre-existing architectures for rapid scale-up.Embrace open,extensible hybrid-cloud technology that supports fluid integration of new partici

119、pants and at scale.2020The Spark of Science and Data-led Innovation 21The Virtual Enterprise takes a scientific discovery approach,constantly experimenting,relying on predictive and prospective analysis fueled by massive amounts of data from itself and its ecosystem partners.More and more industries

120、 see the value that used to be the preserve of R&D-led industries as they mine information in their value chains to spark creativity.The Virtual Enterprise Blueprint Chapter 2The Spark of Science and Data-led Innovation Glenn FinchGlobal Managing Partner Cognitive Business Decision SupportTeresa Ham

121、idCTO and Vice President Business Transformation ServicesTetsuya Nikami Senior Partner Japan Chief Technology Officer and Cloud CTO 2222The Virtual Enterprise arrivesHow science and data-led innovation can unlock new solutionsThe Virtual Enterprise is fundamentally one that looks forward and outward

122、.It does not seek to innovate or drive decisions based on history and internal information,but through the combination of predictive and prospective analysis based on massive access to data and new kinds of crowd and swarm intelligence.The Virtual Enterprise is also more rigorous,pursuing a deeper s

123、cientific discovery approach to innovation.And with COVID vaccines developed and tested in months instead of years,scientific discovery is the concept du jour.What if we could apply a similar accelerant to business innovation?Experimentation,simulation,and testing of hypotheses have long formed the

124、core of scientific discovery.For the Virtual Enterprise,access to exponential technologies such as AI,IoT,and quantum computing enables analogous processes for businessfaster than ever beforeand across many different industries(see Figure 2.1).All this can now be executed in real time through ecosys

125、tems and Intelligent Workflows,allowing the Virtual Enterprise to identify and mine new value pools faster and better.Data scientists leverage open architectures in the Virtual Enterprise and its ecosystems that multiply the benefits of data sharing,including micro-insights only possible with extrem

126、e digitization.Neural networks and other techniques allow decomposition of the most critical and complex problems,facilitating identification of exciting and novel new solutions.What is science and data-led innovation?Science and data-led innovation fosters competitive advantage by dynamically and p

127、erpetually uncovering new opportunities and solutions.Following the scientific method of experimentationhypothesize,test,learnscience and data-led innovation taps into both new technologies and the rapidly exploding new data being unleashed by sensors,information sharing,and other connectivity effor

128、ts.With an open and rigorous approach,this intersection of data and technology can produce ongoingand invaluableprocess improvements,as well as solutions to previously unanswered questions.Open collaboration is a core facilitator and requirement of science and data-led innovation.Agile development a

129、nd the IBM Garage approach are great examples of how the power of experimentation is evolving from co-creation to co-execution and co-operation to achieve impact at scale.23The Spark of Science and Data-led Innovation 23As AI and machine learning enable ever better pattern recognition,workflow optim

130、ization solutions become clearer and more powerful.Cross-industry partnerships and consortia can also be amplified by smart application of scientific methods to drive ecosystem-wide innovations.Data-led innovation operates at multiple levels in the Virtual Enterprise.It can be at the base level of i

131、nsights driven from a particular analysis of customer data that prompts the reshaping of a service proposition.It can be within the context of a workflow,where continual monitoring and mining of the activities and performance within a process can highlight areas for improvement and prompt automated

132、or human intervention.The Virtual Enterprise arrivesThe Virtual Enterprise arrivesFigure 2.1Science and discovery drive innovation across industriesand constitute$52 trillion of the$88 trillion world economyIt can also take place at the platform level,where deeper combined opportunities can be imagi

133、ned from pulling on data sources from across the enterprise and business partners to identify marketplace gaps and product or service innovations.It is in broad ecosystems,however,that the biggest potential for ideation and breakthrough can be seen,where the sheer scale of data,inputs,and participan

134、ts drives acceleration of not just the idea origination process,but more importantly,the execution and scaling of the inventions.It is for this reason that virtual models and ecosystems will increasingly be the solution to the biggest challenges that we face.Science and discovery as a businessBusine

135、sses that rely on science and discoveryInformation and discovery-based enterprisesAerospace and defense,Chemicals,Life sciences,Materials$6.5TAirlines,Automotive,B2B tech hardware,Commercial transportation,Consumer staples,Energy and utilities,Healthcare services,Industrial goods,IT services,Medical

136、 devices Banking,Discretionary consumer goods,E-commerce,Financial markets,Insurance,Retail,Software,Telco$25.9T$20.3TSources:Data and research from Strategic Business Insights,IBM Research;Ward-Foxton,Sally.“Accelerated Discovery:AI and the Scientific Method.”EE Times.January 19,2021.https:/ discov

137、ery via virtualization and openness,integrated communities,and exponential toolsThe COVID-19 crisis has changed businesses in profound ways,accelerating the pace of transformation across supply chains,manufacturing,distribution,workforce norms,consumer behavior,and more.This perpetual acceleration r

138、equires enterprises to be more agile and responsive than ever.The tools and approaches for managing this new condition are born from scienceand will themselves amplify the acceleration.Many businesses had already begun using analytics and AI to improve business processes prior to the pandemic.Those

139、technologies and a growing focus on examining core enterprise data assetssuch as user or transaction data or enterprise workflow patternshave paved the way to remove,digitize,and automate tasks from production to billing.Leading organizations are relying on intelligent automation to help reduce cost

140、s and improve workflow efficiency.They are building automated AI-powered Intelligent Workflows to balance continuity of operations in response to customer demand.These workflows are embedded with predictive intelligence,such as dynamic customer response,preventive maintenance,and real-time inventory

141、 status.This automation enables digitally supported decisions for rapid identification,prioritization,and recommendations for next-best actions.And data from machine sensors and IoT technologies can further enhance workflow automation for real-time insights and predictions.The Virtual Enterprise tak

142、es these practices a step further,tapping into a wealth of external informationwhether related to global health or climate or other ecosystem conditionsto guide decisions and adapt its operations and strategy.Businesses need discovery tools to assimilate information from beyond the coreinformation o

143、n politics,the environment,social moments,and other industriesto protect and extend continuity and resilience.Science and data-led innovation is the instantiation of this process:The rapid collection of data informs decisions,with scientific rigor helping both identify knowledge and manage risk.Exec

144、utives increasingly recognize the differentiation such innovation can provide,with more than three quarters saying their competitive edge is based on utilizing discovery insights.1 The emerging Virtual Enterprise is discovery driven,unlocking value-chain advantage.Science has long been core to secto

145、rs such as life sciences,chemicals,and materials.And other businesses rely on the results and outputs of science,such as those in the energy and utilities,healthcare,and technology hardware industries that are propelled by scientific advances in geology,medicine,physics,or other areas.Today,all ente

146、rprises need to become information driven.By applying the scientific method and experimentation at scaleand building on data and AIthey can gain new information about markets and management practices that can drive critical improvements in business strategy,product development,and operations.25The S

147、park of Science and Data-led Innovation 25What differentiates leadersWhat does science and data-led innovation leadership look like?As enterprises become more discovery driven,transformations are required in the areas of culture,skills,business processes,tools,and platforms.For experimentation to be

148、 effective,it needs to be performed at scale and in a frictionless manner throughout the organization.A discovery culture is evidence based,which requires adaptivity and openness.These transformations power enterprise discovery efforts;drive advances in domains such as climate,work,and health;and en

149、able activities in accelerated discovery broadly.Beyond traditional AI tools,enterprises need hybrid cloud platforms to support experimentation at scale.And the injection of quantum computing will open even more new possibilities.By examining how people work,AI can already help determine the most ef

150、ficient or effective workflows.Tasks can then be routed to traditional or quantum systemsone or more quantum computers working with a classical computing systemdepending on which is the best option.Once information technologists establish a workflow,a user need not know where or how the computation

151、is being done,nor would any specialized knowledge of quantum computing be required.To make the transformations necessary to cultivate a discovery culture that embraces science and data-led innovation,we suggest a focus on 4 leadership priorities:Teamwork:50%of executives in a recent IBV study cite t

152、he ability to collaborate in a team environment as a central workforce capability in a post-pandemic world.2 Ecosystem focus:78%of recently surveyed CTOs say they use discovery-driven mechanisms to identify innovations across their broader ecosystems.3 Digitization:Executives predict the percentage

153、of virtual workforce and customer engagement capabilities in their organizations in 2023 will be almost triple the percentage in 2017.4 Data advantage:67%of executives understand the strategic value of data,while 58%access data in real time to create actionable insights.5 The Virtual Enterprise embr

154、aces these priorities,supporting science and data-led innovation and fueling accelerated discovery.Three key insights form the foundation of this support.They are focused on:Virtualization and openness Integrated communities Exponential tools 2626The Virtual Enterprise unlocks scientific innovation

155、by virtualizing traditional tools for faster and better experimentation,hypotheses,and testing.It relies on open science practices.In its earliest days,science was empirical and theoretical.People observed and measured phenomena,such as the motion of objects;made hypotheses and predictions about why

156、 they happened;and tested them repeatedly.Computersand eventually AI and supercomputerschanged that,ushering in the age of analytics.We can now ingest massive amounts of data and develop models for how systems will behave.The Virtual Enterprise redefines traditional infrastructure so that people tal

157、ent can optimize this capability across the workforce,partnerships,and ecosystems.As 82%of CTOs agree,accelerating the discovery process is central to future growth.6 Key insight#1Virtualization and openness enhance discovery across ecosystemsThe Virtual Enterprise fundamentally looks outward and fo

158、rward,leveraging new kinds of data and intelligence.Systems and processes need to be purpose-designed so open collaboration and scientific discovery can emerge.Extended Intelligent Workflows should be digitally fluidso that one computer,for instance,can be treated by simultaneous users as several in

159、dependent computers to optimize both agility and security.These advances will make it simpler to define discovery workflows,flexibly manage and deploy them,and enable accelerated scientific discovery at scale.Recognizing these advantages,executives tell us they are increasing their virtualization ef

160、forts across functions(see Figure 2.2).A hybrid cloud environment can further enhance the discovery process,fostering productivity,collaboration,integration,and scientific reproducibility,while also providing a way to obtain feedback to improve the platform and further grow adoption.There are innova

161、tion opportunities across the full hybrid cloud stack,from reimagining middlewaresoftware that sits between the operating system and user applicationsto enhancing the way processing gets distributed across computers.27The Spark of Science and Data-led Innovation 27Figure 2.2Organizations continue to

162、 virtualize a growing number of activitiesIs your organization looking outward and forward to facilitate accelerated discovery?Q1 How are you enabling open science practices so your workforce,partnerships,and ecosystems can engage in constant discovery?Q2 How are you envisioning the evolution of you

163、r infrastructure and virtualization efforts so that science and data-led discovery is supported?Q3 How are you making rapid and ongoing experimentation a core part of your culture?Source:Previously unpublished data from the 2021 IBM Institute for Business Value Virtual Enterprise Survey.Q:What perce

164、ntage of the following activities is/will be virtualized in your organization?40%30%20%10%0%12%32%31%11%2017 2020Workforce engagement20232017 2020Ecosystem engagement20232017 2020Innovation20232017 2020Customer engagement202323%10%25%23%31%24%11%31%2828ExxonMobilOptimizing global maritime shippingHo

165、w do you orchestrate tens of thousands of merchant ships traversing the oceans to deliver massive amounts of consumer goods?Roughly 90%of world trade is dependent upon maritime shipping.More than 50,000 ships,carrying as much as 200,000 containers each,move around every day,transporting goods worth$

166、14 trillion.On an international scale,optimizing this magnitude of shipping routes is intractable for classical computers.Research teams from ExxonMobil and IBM are using this scenario to investigate how to effectively map optimization problems to quantum computers.ExxonMobil,in partnership with IBM

167、,is exploring quantum computing algorithms to further tackle the complexities of global shipping.Researchers are applying different strategies to model maritime routing with the ultimate goal of optimizing fleet management.The intent is to calculate journeys that minimize the distance and time trave

168、led by merchant ships across the globe.The findings benefit not only global shipping,but also extend across ecosystems.Obviously,routing problems are not limited to the shipping industry,and the researchers indicate their findings could easily be transferred to other vehicle optimization problems wi

169、th time constraints,such as those related to goods delivery,ride-sharing services,or urban waste management.29The Spark of Science and Data-led Innovation 29The Virtual Enterprise applies scientific discovery principles to innovate its enterprise,platforms,and ecosystems,along with its products,serv

170、ices,and business models.Key insight#2Communities of discovery elevate value for allThe Virtual Enterprise does not achieve scientific discovery in isolation.More than two-fifths(42%)of organizations expect most of their innovation will flow from open engagement with customers and ecosystem partners

171、 over the next 3 years.7Central to that effort are“communities of discovery,”which are becoming the new paradigm for the practice and advancement of scientific discovery(see Figure 2.3).They rely on open science practices and are characterized by dynamic knowledge circulation and well-coordinated co

172、llaborationextended across ecosystems of ecosystems.Such discovery communities are purpose driven,with the impetus for their formation including infrastructure sharing,innovation competitiveness,and a collective mission focus.They operate with portability,elastic capacity,AI-based tools,and security

173、 features across multiple clouds.The modern scientific discovery process demands reproducibility of results,collaboration,and effective communication for further expansion.Enterprises cannot remain competitive without leveraging the abundant knowledge,creativity,and resources in these communities.Th

174、e scientific discovery models practiced there are precursors to the next generation of high-value workflows and workloads.Leveraging communities of discovery to find solutions to large-scale problems is essential for scaling impact and creating a cycle of accelerated discovery and innovation to posi

175、tively impact society.3030Figure 2.3Scaling the scientific method requires communities of discoveryHow do communities of discovery fit into your business strategy?Q1 How are you participating in and encouraging the development of communities of discovery?Q2 What are you doing to leverage scientific

176、discovery outside your organization,and how openly are you sharing scientific advances and data caches uncovered from within?Q3 How effectively do your tech systems and cloud processes support collaborative discovery from within and externally?Global trade management1Sources:“IBM Science&Technology

177、Outlook 2021.”IBM Research;Previously unpublished data from the 2021 IBM Institute for Business Value Virtual Enterprise Survey.Integrated lead to cash4Smart manufacturing3Personalized customer service2Digital marketing and brand management5Top 5 workflows conducted or enabled by quantum computing i

178、n the next 3 yearsAs the size and scope of discovery problems increase,new models of collaboration are imperative to drive innovation and impact of scale Ecosystem EcosystemIndividualInstitutionProprietary+siloedPartnershipClosed+collaborativeCommunityOpen+collaborative31The Spark of Science and Dat

179、a-led Innovation 31The Hartree National Centre for Digital Innovation Accelerating discovery through communityThe United Kingdom Research and Innovations Science and Technology Facilities Council(STFC)is building a community dedicated to discovery.The Hartree National Centre for Digital Innovation(H

180、NCDI)in Daresbury,UK,has a mission to support UK businesses and the public sector by reducing the risk of experimentation and exploration in the adoption of innovative new digital technologies.The program,a partnership with the Hartree Centre and IBM,will apply AI,high-performance computing and data

181、 analytics,quantum computing,and cloud technologies to accelerate discovery and develop innovative solutions to industry challenges,such as materials development,life sciences,manufacturing,and environmental sustainability.In the process,The Spark of Science and Data-led Innovation 32HNCDI will help

182、 businesses enhance productivity,create new skilled jobs,and boost regional and national economic growth.HNCDI will help organizations navigate 4 key stages of digital adoption by providing accessible training and application-focused skills,equipping staff to take full advantage of digital technolog

183、ies,exploring and discovering the technologies businesses need to succeed,turning ideas into practical digital solutions for industry,and identifying and preparing for emerging technologies needed to futureproof the UK economy.In addition to IBM quantum and hybrid cloud resources,scientists in the p

184、rogram will have access to a vast portfolio of IBM commercial and emerging AI technologies focused on materials design,scaling and automation,asset management,supply chain,and trusted AI.327 7New kinds of data and emerging technologiessuch as process mining,neural networks,swarm intelligence,and qua

185、ntum computingopen up entirely new opportunities to accelerate targeted and insight-led experimentation and innovation.Key insight#3Exponential tools and systems accelerate discoveryYou may recall learning about the basics of the scientific method as a child:a sequence that runs from observation,to

186、question,hypothesis,experiment,results,and finally,conclusion.With classical computing,weve been able to speed up that process.But as powerful as classical computing is,it has fundamental limitations in the face of exponential problems.Emerging technologies like AI and quantum computing demonstrate

187、enormous potential to accelerate scientific discovery.The Virtual Enterprise embraces these emerging technologies as powerful and essential tools.Consider the amazing impact of research involving mRNA,a single-stranded RNA molecule that is complementary to one of the DNA strands of a gene.8 This res

188、earch expedited COVID-19 vaccine development,from decoding the virus to vaccine creation in only a few weeks and broad vaccine release in a year.This was possible because we had a decades worth of mRNA research to leverage.9 The triad of classical computing,AI,and quantum computing can supercharge e

189、xperimentation and the scientific method,generating discovery at a radically faster pace(see Figure 2.4).The unprecedented ability to model complex systems can accelerate the ability to extract,integrate,and validate so that we can draw conclusions.We are already using AI to generate hypotheses auto

190、matically and using robotic labs to automate physical experimentation.With existing computing,we can model chemical systems,move individual atoms,and simulate how some materials will perform or react over millions of uses.But there are challenges beyond our reach,such as addressing problems where da

191、ta is unavailable or unclear or imprecise.Quantum computings step-change capabilities hold the promise of eventually creating solutions to such vexing challenges.Quantum computerswhich are capable of analyzing in minutes problems that would take traditional computers centuries to completeopen the po

192、tential to revolutionize areas such as logistics and materials or drug discovery.Quantum-powered workflows and accelerated discovery processes can help the Virtual Enterprise rethink and recast existing workflows entirely,yielding new methodologies,efficiencies,and ways to engage customers,partners,

193、and employees.Extended Intelligent Workflows will be established to offload specific tasks to quantum computers and the innovation that will stem from it.By accelerating discovery and more rapidly translating knowledge into practice,all kinds of new leaps will be possible,from healthcare to finding

194、new materials,to improving the efficiency of solar panels,wind turbines,and battery life.33The Spark of Science and Data-led Innovation 33Figure 2.4The combination of classical computing,AI,and quantum computing takes experimentation to a whole new level Is your organization equipped to embrace expo

195、nential tools?Q1 How advanced are the scientific tools and data available to your organization,as it looks to accelerate innovation?Q2 Are you exploring partnerships with exponential technology experts to mesh your organizations insights and information with larger pools and faster tools?Q3 How well

196、 do you understand what quantum computing might bring to your enterprise,industry,partner platforms,and ecosystems?Source:“The Quantum Decade:A playbook for achieving awareness,readiness,and advantage.”IBM Institute for Business Value.July 2021.Accelerated scientific methodHypothesize Generative mod

197、els automatically propose new hypotheses that expand the discovery spaceTest Robotic labs automate experimentation and bridge digital models and physical testingAssessPattern and anomaly detection is integrated with simulation and experimentation to extract new insightsReportMachine representation o

198、f knowledge leads to new hypotheses and questionsStudyExtract,integrate,and reason with knowledge at scaleQuestionTools help identify new questions based on needs and gaps in knowledge343435Cleveland ClinicUnleashing the potential of cloud,AI,and quantum computingNonprofit multispecialty academic me

199、dical center Cleveland Clinic,ranked#1 in heart care,is partnering with IBM to establish the Discovery Accelerator,a center that will deploy hybrid cloud,AI,and quantum computing technologies to fundamentally increase the pace of discovery in healthcare and life sciences.Cleveland Clinic researchers

200、 will use advanced computational technology to generate and analyze massive amounts of data to enhance research in genomics,single cell transcriptomics,clinical applications,chemical and drug discovery,and population healthincluding new approaches to public health threats like the COVID-19 pandemic.

201、The center will rely on next-generation IBM technologies and innovations like deep search,AI and quantum-enriched simulation,generative models,and AI-driven autonomous labs.As part of the 10-year collaborative program,IBM will provide cloud network access to more than 20 IBM quantum systems,with 1,0

202、00+qubits deployed by 2023.35The Spark of Science and Data-led Innovation 35The Spark of Science and Data-led Innovation 35Action guideDeploying science and data-led innovation for optimum impactThe Virtual Enterprise can accelerate discovery at an unprecedented pace.The challenges of todays marketp

203、lace and todays world are intense.But the tools we have at our disposal are more powerful than ever.Exponential challenges require exponential capabilities.Embracing those capabilities and integrating purpose-fit processesrelying on experimentation,deploying open science,and leveraging advanced huma

204、n and technological assets will help catalyze new solutions.Only through science and data-led innovation will the Virtual Enterprise begin to exhibit its potential.Here is a six-step outline for deploying science and data-led innovation for maximum impact:Experiment at scale Encourage collaboration

205、and the sharing of new ideas within the organization,with partner networks,and through ecosystems.Rely on testing of hypotheses,simulation,and other tools of the scientific method that are core to discovery.Develop new and improved data sources through open science methods and practices.Harness mass

206、ive data Build and replenish clean,clear,reliable information sets,drawn both deeply and broadly.Combine predictive and prescriptive analysis for better decision making.Look for micro-insights that become possible with extreme digitization.Architect modern infrastructure Leverage open architectures

207、that multiply the benefits of data sharing.Deploy AI and machine learning to allow better pattern recognition,workflow optimization,and solution gathering.Engage with quantum computing tools and methods to experience expanded capabilities.Reinforce ecosystem connectivity Rely on open,secure hybrid c

208、loud to smooth and speed Extended Intelligent Workflows.Join communities of discovery to tap into new ideas and discoveries.Prepare guidelines and roadmaps for engagement,information verification,and trust.Champion science innovation Support well-researched solutions,even when surprising or challeng

209、ing to the organization.Invest in ongoing open-ended,but value-based,discovery initiatives.Execute on new ideas to scale inventions and innovation.Embrace the future Redefine workforce roles for the discovery-led practices of tomorrow.Reorient systemic processes for speed and perpetual change.Reimag

210、ine where,how,and what your organization can achieve in light of new science and data-led exponential possibilities.3636The Magic of Extended Intelligent Workflows 37The Intelligent Workflow is the Golden Thread that creates the backbone of the value chains that connect ecosystem participants.As wor

211、kflow reach is extended,the power of technologies such as extreme automation,AI,and IoT is multiplied.Virtualization adds new opportunities for networks,connectivity,and skills engagement,bringing the workflows to life and driving agility.The Virtual Enterprise Blueprint Chapter 3The Magic of Extend

212、ed Intelligent Workflows Paul PapasGlobal Managing Partner Business Transformation ServicesJonathan WrightGlobal Managing Partner Finance&Supply Chain Transformation ServicesMie MatsuoManaging Partner Business Transformation Services,Japan 373838The Virtual Enterprise arrivesHow Extended Intelligent

213、 Workflows amplify opportunityIntelligent Workflows serve as glue for the Virtual Enterprise,bringing together purpose,intent,and value.Participants who operate along the workflow,whether they are inside the organization,in partnerships,or beyond across its ecosystems,need to be aligned to that inte

214、nt,and they must provide an integrated,consistent experience.These workflows are ultimately in service of end customers,who experience their collective value.COVID certainly drove home the importance of Extended Intelligent Workflows in delivering transformational experiences at pace and scale.The e

215、ffectiveness of the Extended Intelligent Workflow is also dependent on the clock speed,accuracy,and security of all the participants who engage.The openness and plug compatibility of the workflow set the boundaries for the extension of value creation and leverage.We have seen the power of looking at

216、 workflows within the enterprise and using them to straddle the historic process siloes.The more we extend the scope of a workflow and the greater the end-to-end connectivity is among the workflows customers and contributing participants,the greater the business outcomes can be.By extending this sco

217、pe deeper into customers,suppliers,and other stakeholders,the value potential of the Virtual Enterprise can be exponentially amplified.What are Extended Intelligent Workflows?Extended Intelligent Workflows power business transformation by optimizing operational efficiency,speed,and agility.These wor

218、kflows connect resources within a single organization,as well as resources across organizations and industries,through open digital standards and protocols.They rely on data and trusted hybrid cloud access to fuel experimentation,real-time decision making,and ongoing partnership.In the process,Exten

219、ded Intelligent Workflows foster collaboration and massively enhance value potential and value creation.39The Magic of Extended Intelligent Workflows 39As Extended Intelligent Workflows become true platforms with attributes that attract mass participants,they become the instantiation of the Virtual

220、Enterprise and its related platforms and ecosystems.The opportunity to identify improvement potential by applying combinations of exponential technologies,implemented to operate along the extended workflows,drives business model transformation and next-level performance.As such,workflows define comp

221、etitive advantage and differentiation of the modern extended enterprise.Virtualization becomes another class of exponential technology that can drive new performance opportunities.The potential to transform physical The Virtual Enterprise arrivesThe Virtual Enterprise arrivesFigure 3.1Extended Intel

222、ligent Workflows integrate virtual components and ecosystemsassets to digital entities;capital expenditure(Capex)to operational expenditure(Opex);and people,teams,and offices to new models of participation exposes new value pools.In addition to being aligned to a shared purpose,Intelligent Workflows

223、 need to straddle silos and provide consistent experiences as a wholewithin the organization and beyond.The effectiveness of the workflow and,by implication,the Virtual Enterprise depends on the speed,accuracy,and security of every organization and individual who engages(see Figure 3.1).Virtualizati

224、on value-addCapex OpexDigital twins Remote skills Sensing Zero-touchEcosystemsMarketOutcomesExtended Intelligent WorkflowThe Golden ThreadAutomationBlockchainAIIoT4040Agility:Transforming work,ecosystem thinking,and virtualization With agility at the heart of the Virtual Enterprise,Extended Intellig

225、ent Workflows have become the mechanism for transmitting experiences,information,and relationships across ecosystems to drive better,faster experimentation and decision making and to unlock exponential value.Leading organizations are shaped by a goal of speed and efficiency.They are building digital

226、 Intelligent Workflows that are streamlined and optimized,leveraging protected data for seamless any-to-any and end-to-end frictionless connectivity.AI-powered and automated,these workflows balance the continuity of operationsoperational effectivenessin response to surges in customer demand.They are

227、 embedded with predictive intelligence,such as dynamic customer response,preventative maintenance,and real-time inventory status.This automation enables digitally supported decisions for rapid identification,prioritization,and recommendations for next-best actions.The benefits of intelligent automat

228、ion are transformational.Executives from a recent IBM Institute for Business Value survey say intelligent automation affords their organizations numerous advantages,with improved customer experience at the top of the list,followed closely by efficiency gains(reduced operational costs)and improved de

229、cision making.1 Additional benefits include improved reliability and reduced risksoften undervalued in pre-pandemic days but now more broadly apparent as companies address workforce dislocation,supply chain challenges,and customer service disruptions.2Whats more,reinvention of Extended Intelligent W

230、orkflows can move beyond that of the virtual knowledge worker into the world of engineering and manufacturing.IoT and sensing bring information from the edge of the enterpriseor within the heart of the machines that make thingsinto the workflow for further automation,insight,and prediction.When phys

231、ical meets digital,automation and Intelligent Workflows can drive velocity with low-or no-touch operations in customer service,manufacturing,distribution,transportation,and field services.Computer modeling yields new discoveries,supported by unprecedented advances in sensor technology,AI,edge access

232、,and even quantum processing.These benefits rely on secure yet flexible connectivity and interoperability:machines that connect readily to other machines and to a full range of exponential technologies.AI and machine learning algorithms have become more efficient,making it easier to program these de

233、vices,devise innovative use cases,and reduce energy requirements.41The Magic of Extended Intelligent Workflows 41What differentiates workflow leadersWhat does workflow leadership look like?Organizations that have embraced Extended Intelligent Workflows distinguish themselves through new insights,fle

234、xible operations,and constant learning that yields significant value.Analysis of customer data might prompt the reshaping of a service proposition.Continual monitoring of activities and performance within an operational process can expose areas for ongoing improvement and prompt automated or human i

235、ntervention.As AI and machine learning are applied to huge new universes of data,the potential for pattern recognition and workflow optimization is enormous.We have seen productivity improvements arise from remote-working models and massive delayering of organizations and process complexity from dig

236、ital zero-touch approaches.Those,combined with extreme automation and pervasive leverage of bots,have opened up new workflow improvement opportunities,as has the development of more comprehensive“digital twin”models.A digital twin is the virtual representation of a physical object or system across i

237、ts life cycle,using real-time data and other sources to enable learning and reasoning,while dynamically recalibrating for improved decision making.The potential to take location out of the equation is huge and opens up new labor-cost pools,virtual Centers of Excellence,and the redefinition of spaces

238、 within which Intelligent Workflows operate.Whole new extreme digital business models can be imagined,such as marketplaces,aggregators,and technology-powered consortia,straddling geographic boundaries.Intense connectivity fuels this value expansion.In a recent IBV study,executives cite a hybrid clou

239、d environment as key to Intelligent Workflows.Hybrid cloud architecture allows for workload portability,orchestration,and management across multiple environments,as well as a consistent standards-based approach to development,security,and operations.3 Overall,successful workflow leadership depends o

240、n 4 priorities,according to IBV research:Openness:Just 36%of executives say they outperform competitors or similar organizations in openness and transparency;yet over 50%report that transparency and visibility will be a critical area of advantage over the next 3 years.4 Innovation:42%of executives a

241、gree that over the next 3 years,most of their organizations innovation will be based on an open approach that involves partnering with customers and ecosystem participants.5 Agility:Almost half of executives cite improved operational agility as an important business priority and say that over the ne

242、xt 3 years,agile operating models will compliment fluid work teams.6 Automation:78%of executives whose organizations are scaling automation say that intelligent machine decisions will advance from routine to complex or mission-critical decisions in the next 3 years.7 The Virtual Enterprise brings th

243、ese priorities to life,activated through the Golden Thread of Extended Intelligent Workflows.The key insights that drive that activation revolve around:New ways of working Ecosystem thinking Virtualization4242The Virtual Enterprise relies on Extended Intelligent Workflows to facilitate hyper-interco

244、nnectivity:New ways of working unlock opportunity and transform organizations.The sophisticated combination of digital tools and human ingenuity can take operational performance to new levels.According to a recent IBV study,implementation of Intelligent Workflows is estimated to drive an additional

245、8%of annual revenue growth(on average).8 AI-powered and automated extended workflows transform the way that work is done,as they create new ways of workinghuman with machine.This extends beyond functional execution,as automated decision making is affected.Advanced algorithms enable devices to self-l

246、earn,self-correct and self-direct;such connected devices and assets understand their current state,learn,and take action accordingly.Key insight#1New ways of working transform organizationsExtended Intelligent Workflows are the Golden Thread of the Virtual Enterprise that integrate the end-user expe

247、rience provided by the enterprise,its platforms,and its ecosytems.In this way,Intelligent Workflows serve to complement,sharpen,and speed the essential value-add that only people can provide.In fact,more than half of the executives surveyed for a recent IBV study report that Intelligent Workflows re

248、duce functional silos and yield a host of operational benefits including optimized productivity(see Figure 3.2).9 Data and information are the raw materials of these new Intelligent Workflows.Data fuels the Intelligent Workflow,where new adjacencies and combinations of data will be uncovered.Data st

249、andards and leverage of open protocols can extend the potential for experimentation and innovation with partners.This creates one of the drivers for open hybrid cloud architectures as the speed of data access becomes mission-critical for new real-time processes.Data from machine sensors and IoT tech

250、nologies can further enhance workflow automation,enabling real-time insights and predictions.One of the biggest areas of value reinvention during the pandemic has been the supply chains of the world,where flexibility and adaptability have vied with resiliency and risk management to drive the importa

251、nce of real-time demand and supply signals.43The Magic of Extended Intelligent Workflows 43Figure 3.2Intelligent Workflows transform organizations:human and machineIs your organization prepared for new ways of working?Q1 How will your organization apply automated and AI-powered extended workflows to

252、 transform the way work is done,amplifying the impact and effectiveness of both humans and machines?Q2 How can you expand data ownership and access to enhance Intelligent Workflows?Q3 Are you exploring embedded intelligence to predict,self-learn,self-correct,and self-direct your organizations operat

253、ions,as well as customer and workforce experiences?55%Embedding technology across workflows optimizes productivity52%Intelligent Workflows reduce functional silos to increase cross-enterprise cohesion and integration45%Intelligent Workflows transform the way work gets done38%Intelligent automation f

254、rees up the workforce to perform higher-value tasks35%Intelligent Workflows self-learn and self-correct34%IoT and edge enable real-time decisions and actionsSource:Previously unpublished data from the 2021 IBM Institute for Business Value Virtual Enterprise Survey.Q:To what extent do you agree with

255、the following statements about your organizations Intelligent Workflows today?(Figure depicts“somewhat agree”and“strongly agree”responses.)444445PandoraInnovating customer experience with Intelligent WorkflowsPandora found international success in designing,manufacturing,and marketing hand-finished

256、jewelry made from high-quality materials at affordable prices.It is sold in more than 100 countries through more than 6,700 points of sale,including around 2,700 concept stores.In the wake of the pandemic,Pandora was forced to close down most of its stores.This has led to a shift to online retail an

257、d acceleration of its digital transformation.The company quickly leveraged a comprehensive order management platform as the backbone to omnichannel fulfillment with a commerce-on-cloud solution powering its ecommerce workflows.Greater automation across its channels streamlined workflows for more eff

258、icient delivery while also boosting the jewelers sustainability credentials.At the same time,an Intelligent Workflow provided in-store staff and virtual customer service representatives superior end-to-end visibility to better meet consumer needs.The digital transformation has brought digital and st

259、ore technology closer together and closer to the customer.Virtual queuing for stores and virtual product trials emulate the in-store experience via augmented reality technology.Pandora is meeting its digital mission of creating personal experiences that are individualized,localized,and connected acr

260、oss channels and markets.The Magic of Extended Intelligent Workflows 45Value can be exponentially amplified if Intelligent Workflows extend their scope deeper into customers,suppliers,ecosystem partners,and other stakeholders.Key insight#2Ecosystem thinking amplifies value creationThe Virtual Enterp

261、rise prioritizes advanced end-to-end connectivity to generate deeper relationships across the ecosystem.Ecosystem thinking fuels Intelligent Workflows,further extending value.Through the application of technology at scale,Extended Intelligent Workflows link together various areas of organizational e

262、ngagement and massively enhance economic results,for instance,by generating closer,more aligned customer relationships.This ecosystem thinking begins with internal-to-the-organization Intelligent Workflows that span silos and include embedded technologies such as automation,blockchain,AI,5G,cloud,an

263、d edge computing to support exceptional outcomes.(IBV research shows that implementing these technologies in workflows can triple the benefits.)10 But the biggest outcomes come with broader reach.Workflows that run deep into ecosystemsand into ecosystems of ecosystemshave the potential to improve im

264、pact exponentially by fueling innovation and collaboration among participants.Massive digital acceleration that connects customers,suppliers,and partners across ecosystems enables reinvention at scale.A recent IBV survey asked executives what areas will be most important for competitive advantage in

265、 3 years.Many of the factors cited map back toand can be amplified byIntelligent Workflows(see Figure 3.3).11 The emergence and expansion of new agile operating models can empower networks of teams through a culture of accountability,alignment to strategic objectives,and constantly evolving expertis

266、e.By providing transparency and visibility,these models propel ongoing collaboration and self-calibration and offer near-instant insights in support of an organizations intent.The purpose of ecosystem thinking is to bring consistent experiences and,with the openness of secured data exchanges,acceler

267、ated value creation.The explosion of data sources and micro-insights born out of extreme digitization provide the opportunity to decompose complex problems and find solutions.As we approach a revolution thats driving computing toward highly heterogeneous environments,exponential technologies,includi

268、ng quantum computing,will be integrated into Intelligent Workflows managed on a hybrid cloud.4646Figure 3.3Most important areas of competitive advantage in the next 3 yearsAre you ready to extend value with ecosystem thinking?Q1 What value and growth potential might be unlocked by exponentially exte

269、nding your organizations workflows to varied ecosystems and ecosystems of ecosystems?Q2 How will you scale the integration and application of automation,AI,blockchain,hybrid cloud,and other technologies to amplify value to customers,suppliers,and partners?Q3 What are your plans and strategies for br

270、inging ecosystem thinking into the operating models for your workforce to enhance transparency,collaboration,and insights internally and externally?Customer experience and engagement1Workflow skills2Digital transformation3Innovation4Transparency and visibility5Source:Previously unpublished data from

271、 the 2021 IBM Institute for Business Value Virtual Enterprise Survey.Q:What are your organizations most important areas of competitive advantage?47The Magic of Extended Intelligent Workflows 47we.tradeSimplifying trade with Intelligent WorkflowsFounded by a consortium of major banks in Europe,we.tra

272、de uses blockchain technology to connect buyers,sellers,banks,insurers,and logistics organizations with greater data intelligence and traceability.This first-of-a-kind ecosystem simplifies cross-border trading,fosters greater trust and transparency,and opens new markets for participants by reducing

273、barriers to engage.The we.trade platform streamlines the trade finance lending workflow,reducing friction and supporting companies as they expand into new markets.In addition to providing traders with trusted access to insurance,credit rating,and logistics services,the platform helps reduce counterp

274、arty risk,automate transactions,and integrate the end-to-end trade ecosystem.In the past two years,we.trade has grown to include 17 banks across 15 countries and now provides track and trace visibility for over 400 couriers.In addition,the efficiencies and interconnectivity provided by the platform

275、have led to an 80%reduction in transaction processing costs.The Magic of Extended Intelligent Workflows 4848Virtualization adds opportunity to enhance the efficiency and effectiveness of Intelligent Workflows and the platforms that they support.Key insight#3Virtualization becomes an exponential tech

276、nologyWhile Intelligent Workflows are the Golden Thread that connects the Virtual Enterprise,virtualization is the thread that connects Intelligent Workflows.Virtualization enhances efficiency and effectiveness.Virtualization applies to workforce practices,customer engagement,and physical assets (se

277、e Figure 3.4).According to recent IBV research,virtualization has already lowered organizational costs by 7%,on average,and is expected to trim a further 9%in costs over the next 3 years.12Virtualization binds remote and hybrid working models,transcending location-based obstacles and enhancing produ

278、ctivity.As location becomes less important,the opportunity to access skills and capabilities from anywhere becomes real.This extended access to people across the organization,from partner organizations and wider labor pools throughout ecosystems,unlocks huge potential.Virtualization also transforms

279、physical assets into digital entities via computer simulations,digital twins,and advanced modeling in augmented reality (AR)/virtual reality(VR)interpretations.These advances can provide new real-time insights and help lower risk profiles.Whats more,virtualization can alter the historical equation f

280、or an organizations expenditures on real estate,operating assets,heavy equipment assets,and more.By shifting capital expenditures to outsourcing and other new models of asset-sharingopportunities that only ecosystem platforms with Intelligent Workflows can advise,connect,and providevirtualization en

281、ables the managing of physical assets on an“as needed”basis as Opex,versus the traditional approach of ongoing maintenance and Capex.49The Magic of Extended Intelligent Workflows 49Figure 3.4Digital transformation and virtualization over the next 3 yearsHow can virtualization benefit your organizati

282、ons workflows?Q1 How will the virtualization of Intelligent Workflows connect your organizations remote and hybrid working models,taking location out of the equation and enhancing productivity?Q2 What are you doing to leverage virtualization to reconfigure physical assets and infrastructure,includin

283、g potential resource-outsourcing and resource-sharing models?Q3 How might virtualization contribute to more secure,reliable,predictive,and near-instant insights,decisions,and actions?60%Products and services will be consumed remotely52%Fluid work teams will work in agile,virtualized models52%Anytime

284、/anywhere talent pools will provide specialized skills51%Efficiency and productivity will improve with digitization50%Organizations will move toward carbon neutrality50%Global brands will create“local content”to serve local marketsSource:Previously unpublished data from the 2021 IBM Institute for Bu

285、siness Value Virtual Enterprise Survey.Q:Think about your organizations digital transformation over the next 3 years.To what extent do you agree with the following statements?(Figure depicts“somewhat agree”and“strongly agree”responses.)5050ASTRI Intelligent Workflows for smarter manufacturingHong Ko

286、ng Applied Science and Technology Research Institute Company Limited(ASTRI)was founded to promote Hong Kongs competitiveness in technology-based industries through applied research.As part of its mission,ASTRI is tasked with helping manufacturers shorten time to market,reduce development costs,and e

287、nhance quality.ASTRI has implemented a science-based,agile approach to designing smarter manufacturing equipment,leveraging Intelligent Workflows across assets throughout the extended production process.Using requirements-driven analysis and a model-based design,the organization creates a digital“tw

288、in”of a piece of equipment.This allows engineers to perform a wide-range of simulations and tests,at nominal incremental cost,and identify potential design defects much sooner in the cycle.This model-based method also enables earlier validation of customer requirements.ASTRI estimates that the twin

289、approach has reduced integration time by 40%and cut the total cost of development by 30%.In addition,the use of robotic automation,IoT sensor integration,and digital twin modeling for predictive maintenance supports 24x7 factory uptime.51 The Magic of Extended Intelligent Workflows 51The Magic of Ex

290、tended Intelligent Workflows 51Action guideExtending Intelligent Workflows for optimal impact As the Golden Thread of the Virtual Enterprise,the extended workflow becomes the transmission mechanism for the experience and values of the ecosystem that it is threaded through.Workflows become the backbo

291、ne of trusted information and relationships and the repository of the automated rules and algorithms that drive crucial,in-the-moment decision making.Extended Intelligent Workflows fueled by data-driven decisions can adapt to rapidly shifting conditions.Intelligent Workflows are the essential tools

292、for connecting ecosystems of ecosystems;generating value by reimagining the way work is done;adding AI and automation to everyday tasks;and enabling better real-time insights,decisions,and actions.Here is a five-step outline for optimizing the impact of Extended Intelligent Workflows:Customize your

293、customer experiences Deliver differentiation through a radically personalized customer experience that is integrated across operational touchpoints.Reimagine a cross-domain approach to customer engagement.Drive new insights across the organization and the platform to speed the delivery of transforma

294、tional experiences at scale.Build self-correcting operations Strive for operational improvement through self-learning,self-correcting,and self-directing capabilities.Connect devices and assets with intelligence to understand the current state,learn,and take action accordingly.Anticipate emerging tec

295、hnology that leverages automation.Execute with agility Create an operating culture of accountability,alignment to strategic objectives,and constantly evolving expertise with relentless transparency and ongoing collaboration.Provide near-instant data for insights in support of your workforce,ecosyste

296、ms,and fluid work unit teams for rapid response and efficiency.Evolve hybrid work models and automation to reduce reliance on physical assets and infrastructure,shifting the Capex-Opex equation.Foster transparent,ethical networks Draw on ecosystem networks and new global talent pools.Enable cross-in

297、dustry,multi-enterprise networks to provide shared visibility into trusted data,backed by blockchain technology.Extend connectivity and transparency to promote higher human expression and engagement.Evolve dynamic,open,more secure computing configurations Integrate hybrid cloud into technology strat

298、egies to support Intelligent Workflows.Configure workflows by assembling data in varied computing environments,supporting AI and extreme automation.Embrace open,extensible technology systems that support fluid integration of new participants at scale.5252The Urgency of Sustainability and Impact 53Th

299、e Virtual Enterprise aligns purpose with wider societal impacts.With sustainability and stakeholder capitalism taking hold in the C-suite,new ecosystem business models are helping provide solutions to some of todays biggest challenges around climate,health,security,and equality.Increasingly,sustaina

300、bility also impacts how customers,partners,and employees feel about an organization.The Virtual Enterprise Blueprint Chapter 4The Urgency of Sustainability and Impact Sanjay TugnaitChief Market Maker and Global Managing Partner Sustainability PracticeSheri Hinish Global Executive Partner,Enterprise

301、Sustainability Sustainable Supply ChainManish ChawlaGeneral Manager,Global Industrial Sector Chemical,Petroleum,and Industrial Products Industries 5454The Virtual Enterprise arrivesHow sustainability and impact drive positive enterprise transformationEven before the pandemic,a new focus on sustainab

302、ility and environmental,social,and governance(ESG)goals for business was emerging.Against that backdrop came lessons from the COVID crisis about the interconnectedness of the globe and the role of nature and its relationship to humanity.We have seen that the shifts to more virtual work,less travel,a

303、nd lower levels of urban activity and global physical trade have made a meaningful impact on carbon in the atmosphere.The evolution toward the Virtual Enterprise reinforces this trend and can be part of a systemic shift to a sustainable planet.The connection of business intent to a wider intent has

304、arisen as corporations seek to embrace and scale stakeholder capitalism and as customers and employees seek to make purchases and work choices based upon the values of the organization with which they are interacting(see Figure 4.1).The extended ecosystems of the Virtual Enterprise that operate with

305、 their automated Intelligent Workflows,remodeled asset mixes,and smart leverage of data have the potential to live up to this new level of impact.The partnerships that will characterize them will be made up of participants with shared values.This is all happening against a rising focus on stakeholde

306、r capitalism where the purpose of the enterprise has been extended to its societal impact.All the big issues that the world facesfrom health,climate,and food security to inequalityare now being targeted by growing partnerships and ecosystems.What is sustainability?Sustainability can be a complex,som

307、ewhat nebulous concept,with different meanings for different groups.For some,it signals environmental objectives only.Others apply the term to a broad agenda of social,economic,and even political factors.Regardless of specific focus,sustainability requires a commitment to ongoing transformation.Tran

308、sformational sustainability is both a necessity and a tool for organizations to future-proof themselves against looming risks,deliver on community needs,and enable new opportunities and business models.55The Urgency of Sustainability and Impact 55With companies vying to take the lead in shaping new

309、transformative platforms and models,the Virtual Enterprise is the perfect vehicle to facilitate these moves.Its open approach enables the integration of sustainability into a companys fiberits DNA.Organizations can weave sustainability into value propositions,business partnerships,and customer engag

310、ement strategies to influence how humans treat each other and the planet,encouraging behaviors that contribute to a positive ecological footprint.Relying on new exponential technologies,they can create innovative products and services linked specifically with sustainability efforts.Ways of working h

311、ave changed forever,and the explicit recognition of health and wellness of employees and The Virtual Enterprise arrivesThe Virtual Enterprise arrivesFigure 4.1Business leaders express more concern about people and the planet than ever beforestakeholders will remain a high priority.As the Virtual Ent

312、erprise develops new networks of activity and team models,technology will play a huge role in taking the relationship between employee,employer,and organizational IT to a richer level.The enterprise will be brought into the homes of employees,resulting in new relationships between work,employees,the

313、ir families,and the community as a whole.Recognizing the ethics and governance issues that arise as technology is increasingly woven into our lives,the Virtual Enterprise espouses the spirit of responsible computing.It works to channel technology toward positive outcomes and identify ethical princip

314、les and practices that protect data privacy and integrity.Source:“COVID-19 and the future of business:Executive epiphanies reveal post-pandemic opportunities.”IBM Institute for Business Value.September 2020.ibm.co/covid-19-future-business.Q:To what extent is your organization prioritizing the follow

315、ing business competencies?Figure depicts “high”and“very high”responses.100%80%60%40%20%0%20182022Workforce safety and security20182022Sustainability20182022Environmental impact43%92%32%74%16%82%5656Sustainability and impact:Connecting with stakeholders,improving outcomes,and solving the unsolvable O

316、rganizations that lead on sustainability and impact do not approach them as secondary objectives.They integrate the related objectives into their core motivation,radically altering the corporate equation for success.Sustainability and impact provide a guiding prism through which priorities and activ

317、ities are viewed.The Virtual Enterprise appreciates that pursuing“social-good”agendas can go hand in hand with delivering business results.Recalibrating the relationship between business and society can trigger new processes and drive discovery at unprecedented speed,scope,and scale.Increasingly,inv

318、estors,consumers,employees,and partners consider sustainability and societal impact when making purchasing,employment,investment,and engagement decisions.Together these imperatives are shaping a new corporate agenda.According to IBV research,9 out of 10 companies today are working on sustainability

319、initiatives,up from about half prior to the pandemic.1 In fact,almost 60%of executives say the upheaval associated with the pandemic will impact the broader social contract and fundamentally change the relationship between business and society.2 Some of the corporate motivation behind social respons

320、ibility is about future-proofing:Government-imposed sustainability regulations are increasing;consumer demands related to sustainability are becoming more strident;and investors are increasingly emphasizing ESG criteria and other sustainability metrics.Organizational leadership cannot ignore these r

321、ising pressures and requirements.The COVID-19 pandemic also underscored societys interconnectednesshow actions taken in one part of the world can have global implications.In such circumstances,supporting the collective interest can also serve an organizations self-interest.For the Virtual Enterprise

322、,serving a social agenda can also contribute to growth and market gain.Whether its digitizing resource-intensive processes,uncovering new efficiencies using high-performance digital-enabled systems,or solving problems through science and data-led innovation,sustainable practices help open the door t

323、o new markets and growth.Ethical innovation that progresses the ESG agenda can shift the business-as-usual paradigm and transform into profit-with-purpose,a higher form of capitalism.Organizations that follow such a path can serve as paradigms of the future,reaping outsized gains and identifying fut

324、ure avenues for growth.Sustainability and purpose are now corporate imperatives in the fullest sense of the word.Environmental and wider societal challenges are influencing organizational strategies and operating models across sectors and functions.This increased focus on sustainability and social r

325、esponsibility is creating new market opportunities,driving operational efficiencies,impacting risk management strategies,influencing customer and employee expectations,and operationalizing new supply chain strategies.57The Urgency of Sustainability and Impact 57What differentiates leadersThe cycle o

326、f change mandated by sustainability requires enhanced virtualization:market-making platforms and ecosystems;science and data-led innovation;Extended Intelligent Workflows;inclusive human-technology partnerships;and the open,secure sharing and collaboration enabled by hybrid-cloud engagement.A focus

327、on sustainability can strengthen both corporate purpose and customer and employee engagement.In addition,digital technologies can help companies combine improved sustainability performance with better business outcomes.We found that successful sustainability leadership depends on 4 priorities:Commit

328、ment:According to surveyed executives,the#1 leadership hurdle in developing a post-pandemic workforce is fostering a culture rooted in empathy,adaptability,and innovation.3 Leaders are embracing sustainability and purpose as a corporate imperative,embedded within their organizations business strateg

329、ies and value propositions.Deployment:One in 3 executives report that increasing sustainable operations is one of their most important business priorities.4 Tapping digital technologies and data insights can help align operational improvements with better sustainability outcomes.Collaboration:Platfo

330、rm-enabled ecosystems can facilitate open innovation focused on building a more sustainable future.Recognizing the need to support such synergy,65%of executives say their organization will leverage digital command centers to enable ecosystem collaboration within the next 3 years.5Transformation:Acco

331、rding to 60%of executives,customers and citizens will access and consume their products and services remotely over the next 3 years.6 To meet societal and business needs,transformation itself must be an ongoing,sustainable practicenot simply a step,action,or plan.The Virtual Enterprise brings these

332、priorities to life.We identified 3 key insights that serve as a foundation for responding to and advancing the urgency of sustainability and impact.They are focused on:Stakeholder motivation Business and societal outcomes Open innovation5858The Virtual Enterprise recognizes that because stakeholders

333、(such as customers,employees,companies,and countries/governments)are motivated and animated by sustainability,its influence spans the enterprise experiencefrom consumer decisions,to workforce issues,to relationships with investors and partners.Customers have become more environmentally conscious and aware of the societal impact of their consumer choices.According to a 2021 IBV consumer survey,93%o