1、The Virtual EnterpriseThe Cognitive Enterprise in a virtual worldResearch InsightsTechnology is transforming the business models of enterprises across the globe,creating new opportunities for growth and fresh benchmarks of cost and efficiency.The ability to apply AI,automation,blockchain,the Interne

2、t of Things,5G,cloud,and quantum computing at scale has made the promise of Cognitive Enterprises real.As we place this revolution in the context of an increasingly virtual world,we see even more power arising from the ecosystems,digital workflows,and networked organizations that are made possible.T

3、he Virtual Enterprise is emerging,supported by a“Golden Thread”of value that animates the enterprise and binds ecosystem participants.1The Virtual Enterprise Mark FosterSenior Vice PresidentIBM ServicesTechnology is transforming the business models of enterprises across the globe,creating new opport

4、unities for growth and fresh benchmarks of cost and efficiency.The ability to apply AI,automation,blockchain,the Internet of Things,5G,cloud,and quantum computing at scale has made the promise of Cognitive Enterprises real.As we place this revolution in the context of an increasingly virtual world,w

5、e see even more power arising from the ecosystems,digital workflows,and networked organizations that are made possible.The Virtual Enterprise is emerging,supported by a“Golden Thread”of value that animates the enterprise and binds ecosystem participants.Over the past few years,we have moved toward a

6、 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 same time,technologies such as AI,automation,Internet

7、of Things(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 evolution the emergence of Cognitive E

8、nterprises,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 transformation journeys;reinforced the imp

9、ortance 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 three main building blocks of the Cognitive Enterp

10、rise 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 mass customer and employee conne

11、ctivity 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 been becoming more and more impo

12、rtant 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 4).The Virtual Enterprise is powered by a Golden Thread of Intelligent Workflows that connect ecosystem participants for shared val

13、ue.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 chains and new partnership app

14、roaches.The single most important characteristic of the Virtual Enterprise is“openness.”This openness brings value at three levels(see Figure 1):Inside:Inside the enterpriseconnecting divisions and functions in more collaborative and agile workflowsOutside:With partners outside the enterprise who be

15、come ever more critical to deliver 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.2Introduction3The extremes of virtual access to customers an

16、d 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 source of engagement,unleashing new potential for markets and access,as well as creating new c

17、hallenges 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 pandemic experience has also reinforced the degree to which everything is connected around the wo

18、rld 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 ecosystems as solutions to the big issues of climate,health,and equality is real.As sustain

19、ability and stakeholder capitalism become C-suite imperatives,the new technology-enabled business models that are emerging have a critical role to play.Figure 1How components evolve over three levels of virtualization1Physical Business platformIntra organizationIntelligent workflowEmployedToolsOn pr

20、em/privateLocalInsideOutsideOut thereSharedJoint platform PartnershipIntegrated workflowContractedNetworkPublic cloudElsewhereVirtualOpen platform EcosystemOpen extended workflowAccessedStandardsHybrid multicloudAnywhereBuilding blocks of the Virtual Enterprise4The Virtual Enterprise arrives3.Extend

21、ed Intelligent Workflows4.Sustainability and Impact5.Inclusive Human-technology Partnerships1.Market-making Platforms and Ecosystems2.Science and Data-led InnovationMarket-making Business PlatformsIntelligent WorkflowsEnterprise Experience and Humanity6.Open Secure Hybrid Cloud and NetworksCognitive

22、 EnterpriseThe Virtual Enterprise arrivesOpenness1.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 organi

23、zations recognizing 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 e

24、nables all participants 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 p

25、redictive and prospective 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 min

26、e the information in 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 exte

27、nded,the power of applied 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 lif

28、e and drive agility.5Purpose4.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 takin

29、g hold in the C-suite,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.In

30、clusive Human-technology 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

31、processes.It also,though,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 t

32、he flexibility and nimbleness 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 an

33、d secure technology 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 organizatio

34、ns have now embarked.ResultsThe platform covers over 10 million hectares of arable farm land Yara has attracted over 3 million farmers in the past two yearsIrrigation on-demand solutions provide savings in water consumption up to 20%Yara International ASAFeeding a growing population2As part of its e

35、fforts to create a sustainable world without hunger,Norway-based Yara has built a digital farming platform,Atfarm/FarmX,supporting sustainable farming globally.One of the worlds largest mineral fertilizer producers and a global leader in digital farming solutions,Yara created the platform to connect

36、 and empower independent farmers across the globe.By providing holistic digital services and instant agronomic advice,Yara ultimately helps avoid deforestation and increase food production on existing farmland.For example,the platform provides timely and accurate crop yield forecasts and nitrogen an

37、d water management recommendations,supported by hyperlocal minute weather data.The cloud-agnostic platform follows a pay-as-you-go commercial model and delivers cutting-edge data services.It uses IoT sensors and AI to provide farmers with hyperlocal weather forecasting,crop damage predictions,and re

38、al-time fertilization suggestions.Already accessed by more than 3 million farmers,the platform has enabled Yara to expand its business model and create a competitive differentiatorall while supporting sustainable operations.It has also paved the way for other advanced technologies that can empower f

39、armers,such as blockchain for transparency and trust in trade transactions.67Market-making Platforms and Ecosystems Yara created an industry-wide business platform,Atfarm/FarmX,that connects and empowers independent farmers.Yara has expanded its ecosystem on the platform to include banks and logisti

40、cs service providers.Science and Data-led Innovation Yara experiments with exponential technologies like drone-powered augmented reality to empower successful micro farming.Data scientists prioritize modeling and innovation as the result of a DataOps approach that automates myriad functions.Extended

41、 Intelligent Workflows AI-enabled workflows extend from supplier connections to farmers and processors in a collaborative relationship.The workflows integrate IoT sensors,AI,and weather data for hyperlocal forecasting,crop damage predictions,and real-time activation.Sustainability and Impact Yara an

42、d IBM Food Trust,a fork-to-farm value chain,drive carbon neutrality and product traceability.Yara helps create a sustainable world without hunger as it fosters better farming practices and yield.Inclusive Human-technology Partnerships Yara works with farmers and leading food value chain companies to

43、 collaborate on crop nutrition,science-based products,and digital tools.Improved crop yield insights enable better calibration and communication to customers,reducing waste and ensuring transparency.Open Secure Hybrid Cloud and Networks A first-of-a-kind in the industry and competitive differentiato

44、r,Yaras platform operates in a cloud environment for instant information sharing and collaboration.Acloud-agnostic strategy enables consistent data governance and data security.76ResultsExpected reduction in customers total cost of ownership to be 10 to 20%“Write once,deploy anywhere”ensures faster

45、development of applications,workflows,and overall platform for customer-specific requests leading to improvement in volume and velocity of service introduction and deploymentWill expand the global addressable market from under 50%today to potentially almost the entire worldSchlumbergerBoosting colla

46、boration with an open cloud-based AI environment3Schlumberger,which provides leading digital solutions and deploys innovative technologies to enable performance and sustainability for the global energy industry,is accelerating customers move to the cloud with its DELFI cognitive E&P environment,wher

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

48、changing technologies like AI,analytics,and automation.Customers and partners worldwide can integrate their deployment of the DELFI environment with the OSDU Data Platform,the industry standard for energy data.8OpennessMarket-making Platforms and EcosystemsThe biggest strategic idea of the Virtual E

49、nterprise 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 potential that comes fr

50、om 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 potential while enabling th

51、ose 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 connectivity and the sharing of

52、 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 combined power of applied te

53、chnologies,create new market opportunities and go-to-market opportunities for all participants.We can see industry and cross-industry platforms and ecosystems providing solutions and standards that individual organizations cannot.Many of the bigger challenges facing the world need this kind of colla

54、boration.Whether it is for extended public-private partnerships(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.Building blocks

55、of the Virtual EnterpriseThe Virtual Enterprise makes ecosystems the heart of its strategy to enhance innovation,make markets,and massively enhance capabilities.9Blockchain consortia have been one class of industry and cross-industry ecosystem play that has arisen over the past few years.They help p

56、articipants trust the data as they remove cost,drive efficiency,and securely“know”all the participants throughout the workflows.The 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 identifi

57、cation of participants and status of transactionscombined with the immediacy of real-time synchronizationwill only enhance the viability and creativity in the shaping of platforms and ecosystems(see Figure 2).The scale of the strategic leap that can come from open,ecosystem,and platform thinking is

58、very considerable and can go to the core of the way an organization looks at itself.Virtualization and new connectivity models allow smaller participants,such as SMBs and even individuals,to participate in such extended ecosystem plays as they become more attractive and add higher value.As a first s

59、tep 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 pharmacological testing.10The power of di

60、gital 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.The cultural implications of being an effe

61、ctive virtual participant in ecosystems are huge.Ecosystems need to become the primary social system and focal of interaction and energy of the participating organizations.The persona of an organization and its core competence need to be aligned to this intent.Leadership teams need to develop mutual

62、 trust as they make joint commitments and create an open culture,which means letting go of many aspects of proprietary ownership and control.We have seen that the exigencies of the COVID crisis have forced levels of trust among entities,while also exposing the weakness in looser,purely commercial va

63、lue chains and dependencies.The power of using open and secure Intelligent Workflows as the Golden Thread of the new cross-organizational models will help to avoid the platform or ecosystem falling foul of its weakest link.Building blocks of the Virtual Enterprise11Figure 2Businesses are increasingl

64、y opening up4100%80%60%40%20%0%2xPlatform business models2018202020224xBusiness ecosystems4xPartner networks within industry4xPartner networks outside industryOpen platforms and ecosystems offer new avenues for growth,efficiency,and innovation.New and emerging technologies grounded in principles of

65、openness and standards,like blockchain and hybrid cloud,underpin the acceleration of this opportunity.Partnership has become an imperative for most organizations to find value,focusing on fewer,deeper ecosystem combinations to build out their growth agendas.Key insights612Results10-year collaborativ

66、e program brings accelerated methods of discovery to fuel advances in healthcare and life sciencesCloud access to more than 20 IBM quantum systems 1,000+qubits to be deployed in 2023Cleveland ClinicAccelerating scientific discovery with hybrid cloud,AI and quantum computing5Nonprofit multispecialty

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

68、earchers 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 COVID-19 pande

69、mic.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 chemical synthesis.121513AccelerationScience and Data-led InnovationThe Virtual Enterprise is fundamentally one that looks forwa

70、rd and outward.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,pursu

71、ing a deeper scientific discovery approach to innovation.And with COVID vaccines currently being 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 hy

72、potheses have long formed the 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 3).All this can now be executed

73、 in real time through ecosystems and Intelligent Workflows,allowing the Virtual Enterprise to identify and mine new value pools faster and better.Agile development and the IBM Garage approach are great examples of how we see the power of experimentation evolving from co-creation,through co-execution

74、,to co-operation to achieve impact at scale.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 extreme digitization.Neural networks and other techniques allow decomposition of

75、 the most critical and complex problems,facilitating identification of exciting and novel new solutions.As AI and machine learning enable ever better pattern recognition,workflow optimization solutions become clearer and more powerful,further perpetuating golden workflow threads throughout the enter

76、prise,its platforms,and its ecosystems.Cross-industry partnerships and consortia can also be amplified by smart application of scientific methods to drive ecosystem-wide innovations.Building blocks of the Virtual EnterpriseThe Virtual Enterprise and its ecosystems use open architectures to multiply

77、the benefits of data sharing.14Data-led innovation occurs at multiple levels of the Virtual Enterprise:in basic data analysis,within a workflow,at the platform level,and even across broad ecosystems.In a similar fashion,quantum computerswhich are capable of analyzing in minutes problems that would t

78、ake traditional computers centuries to completealso open the potential 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 me

79、thodologies,efficiencies,and ways to engage customers,partners,and employees.Extended Intelligent Workflows will be established to offload specific tasks to quantum computers and the innovation that will stem from it.Data-led innovation operates at multiple levels in the Virtual Enterprise.It can be

80、 at the base level of insights 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 improvemen

81、t and prompt automated or human intervention.It can also take place at the platform level,where deeper combined opportunities can be imagined 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 e

82、cosystems,however,that the biggest potential for ideation and breakthrough can be seen,where the sheer scale of data,inputs,and participants 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 virtua

83、l models and ecosystems will increasingly be the solution to the biggest challenges that we face.Building blocks of the Virtual Enterprise15Figure 3Science and discovery drive innovation across industriesand constitute$52 trillion of the$88 trillion world economy6Science and discovery as a businessB

84、usinesses 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,Me

85、dical devices Banking,Discretionary consumer goods,E-commerce,Financial markets,Insurance,Retail,Software,Telco$25.9T$20.3TThe Virtual Enterprise fundamentally looks outward and forward,leveraging new kinds of data and intelligence.New kinds of data and emerging technologiessuch as process mining,ne

86、ural networks,swarm intelligence,and quantum computingopen up entirely new opportunities to accelerate targeted and insight-led experimentation and innovation.It applies scientific discovery principles to innovate its enterprise,platforms,and ecosystems along with its products,services,and business

87、models.Key insights1416Results80%reduction in transaction processing costsGrown to include 17 banks across 15 countries since 2019Track and trace for 400+courierswe.tradeSimplifying trade with Intelligent Workflows7Founded by a consortium of major banks in Europe,we.trade uses blockchain technology

88、to connect buyers,sellers,banks,insurers,and logistics organizations with greater data intelligence and traceability.This first-of-a-kind platform simplifies cross-border trading,fosters greater trust and transparency,and opens new markets for participants by reducing barriers to engage within the e

89、cosystem.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 counterparty risk,

90、automate transactions,and integrate the end-to-end trade ecosystem.16AgilityExtended Intelligent WorkflowsIntelligent Workflows are the glue or backbone of the Virtual Enterprise creating the Golden Thread of purpose,intent,and value.Participants who operate along the workflow,whether they are insid

91、e the organization,in partnerships,or beyond across its ecosystems,need to be aligned to that intent,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

92、 Extended Intelligent Workflows in delivering transformational experiences at pace and scale.The effectiveness 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 th

93、e boundaries for the extension of value creation and leverage.We have seen the power of looking at 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 cust

94、omers and contributing participants,the greater the business outcomes will be.By extending this scope deeper into customers,suppliers,and other stakeholders,the value potential of the Virtual Enterprise can be exponentially amplified.As Extended Intelligent Workflows become true platforms with attri

95、butes that attract mass participants,they become the instantiation of the Virtual 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 busi

96、ness model transformation and next-level performance.As such,workflows define competitive 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 as

97、sets to digital entities;Capex to Opex;and people,teams,and offices to new models of participation exposes new value pools.Building blocks of the Virtual Enterprise1718Workflows must be aligned to a shared purpose;they need to straddle silos and provide consistent experiences as a whole.Building blo

98、cks of the Virtual EnterpriseWe have seen productivity improvements arise from remote-working models and massive delayering of organizations,and process complexity from digital zero-touch approaches.Those,combined with extreme automation and pervasive leverage of bots,have opened up new workflow imp

99、rovement opportunities,as has the development of more comprehensive“digital twin”models.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 within which Intelligent Workflows operate.Whole new extre

100、me digital business models can be imagined,such as marketplaces,aggregators,and technology-powered consortia,straddling geographic boundaries.Data fuels the Intelligent Workflow,where new adjacencies and combinations of data will be uncovered.Data standards and leverage of open protocols can extend

101、the potential for experimentation and innovation with partners.This creates one of the drivers for the open hybrid cloud architectures(see“Open Secure Hybrid Cloud and Networks”)as the speed of data access becomes mission-critical for new real-time processes.To yield maximum benefits,workflows need

102、to be aligned,whether they are inside the organization,in partnerships,or beyond,in a shared purpose.They need to straddle silos and provide consistent experiences as a whole.The effectiveness of the workflow and,by implication,the Virtual Enterprise depends on the speed,accuracy,and security of eve

103、ry organization and individual who engages(see Figure 4).Reinvention of Extended Intelligent Workflows 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 mach

104、ines that make thingsinto the workflow for further automation,insight,and prediction.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 backbone of tru

105、sted information and relationships and the repository of the automated rules and algorithms that drive crucial,in-the-moment decision making.19Extended Intelligent Workflows are the Golden Thread of the Virtual Enterprise that integrate the end-user experience provided by the enterprise,its platform

106、s,and its ecosystems.Virtualization adds incremental opportunity to enhance the efficiency and effectiveness of Intelligent Workflows and the platforms that they support.Value can be exponentially amplified if Intelligent Workflows extend their scope deeper into customers,suppliers,ecosystem partner

107、s,and other stakeholders.Key insightsFigure 4Extended Intelligent Workflows integrate virtual components and ecosystems8Virtualization value-addCapex OpexDigital twins Remote skills Sensing Zero-touchEcosystemsMarketOutcomesExtended Intelligent WorkflowThe Golden ThreadAutomationBlockchainAIIoTResul

108、ts1st B2B digital marketplace for the mining industryOver 60 ready-to-use solutionsEcosystem tools to assist in achieving net-zero and decarbonization targets 20ORENShell and IBM:Driving sustainability through digital transformation9Shell,with its long-standing customer relation-ships across the min

109、ing ecosystem,joined forces with IBM to launch Oren,the sectors first digital B2B marketplace.It was created to accelerate the adoption of digital services in mining by curating solutions and servicesincluding those aimed at sustainabilityand connecting buyers and sellers on an open platform.Designe

110、d with ease-of-use in mind,Oren makes the daunting task of digital transformation accessible by offering a one-stop-shop of solutions,services,and bespoke integrated solutions.Oren guides and supports mining companies along a strategic path to sustainability by delivering long-term digital roadmaps

111、to digitizing their operations,increasing efficiency,reducing emissions,and enhancing their societal license to operate.PurposeSustainability and ImpactThe lessons from the COVID crisis about the interconnectedness of the globe and the role of nature and its relationship to humanity came against the

112、 backdrop of a renewed focus on sustainability and the setting of new environmental,social,and governance goals for business that were emerging even before the pandemic.We have seen that the shifts to more virtual work models,less travel,and lower levels of urban activity and global physical trade h

113、ave made a meaningful impact on carbon in the atmosphere.The evolution toward the Virtual Enterprise reinforces this trend and can be part of a more structural shift to a sustainable planet.The connection of business intent to a wider intent has arisen as corporations seek to drive up stakeholder ca

114、pital and as customers and employees seek to make purchases and work choices based upon the values of the organization with which they are interacting.The extended ecosystems of the Virtual Enterprise that operate with their automated Intelligent Workflows,remodeled asset mixes,and smart leverage of

115、 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 stakeholder capitalism where the purpose of the enterprise has been extended to its societal

116、 impact.All the big issues that the world facesfrom health,climate,and food security to inequalityare now being targeted by growing partnerships and ecosystems.We see companies vying to take the lead in shaping new transformative platforms and opening new joint venture and innovative partnership mod

117、els.The Virtual Enterprise is the perfect vehicle to facilitate these moves with its open approach into which the modules of impact across ecosystems can be inserted and organized.The advent of the Virtual Enterprise also lends itself to the integration of sustainability into a companys fiber.Organi

118、zations can weave sustainability into their content,value propositions,business partnerships,and customer engagement strategies to truly make a difference by influencing how humans treat each other and the planet,encouraging behaviors that contribute to a positive ecological footprint.In addition,th

119、ey can take advantage of this unique point in time through the creation of innovative products and services linked specifically with sustainability efforts.Building blocks of the Virtual Enterprise2122Virtualization has the potential to play a huge role in our joint sustainability journey.It can sup

120、port decarbonization through digital access,remote working,and reduction in office space and commuting and can underpin and reinforce the circular economy through the power of exponential technologies.For example,analytics applied to extended supply chain provenance and predictability can reduce was

121、te and align consumption to sourcing and help organize for reuse.New engines for carbon reduction and renewable energy will arise as climate progress is embedded deeper in the measures and metrics of success for all entities.We already see examples of digital twins being applied to simulate sustaina

122、ble practices in big infrastructure.We have examples of Hong Kong Airport and the Port of Rotterdam,where the combination of operational technology innovation,renewable outputs,and human-machine interactions are driving better outcomes for these organizations,their ecosystems,and the world as a whol

123、e.10 The digital twin approach is becoming a fundamental solution to designing,modeling,and monitoring the impact of decisions on the real world.Building blocks of the Virtual EnterpriseWays of working will be changed forever,and the explicit recognition of health and wellness of employees and stake

124、holders will remain a high priority.As the Virtual Enterprise develops new networks of activity and team models,it will need to recognize this in terms of the health backbones,certifications,and provision that underpin them.Technology will play a huge role in this,and the relationship between the em

125、ployee and employer with its organizational ITwhich we have seen transformed over the past yearwill be taken to a much richer level.The enterprise will be brought into the homes of employees,resulting in a new relationship among work,employees,their families,and the community as a whole(see Figure 5

126、).The evolution toward the Virtual Enterprise reinforces global trends toward more virtual work models,less travel,less urban activity,and less physical trade.23Figure 5Business leaders express more concern about people and the planet than ever before11100%80%60%40%20%0%20182022Workforce safety and

127、security20182022Sustainability20182022Environmental impact43%92%82%32%74%16%Sustainability and corporate purpose are an increasingly important ingredient of success with customers,employees,ecosystem partners,and the community as a whole.Ecosystems and their technology-enabled platforms will be at t

128、he heart of solving complex challenges and providing purpose to customers and employees.Virtualization expands the ability of organizations to open up to new economic opportunities,while becoming more sustainable at the same time.Key insightsResults50%of the workforce involved in transformation have

129、 achieved new digital skills through the Orange Campus150%increase in customer sales on digital channels with+10 NPS points30%increase in digital channel self service with full digital assistance24Orange FranceConnecting talent and technology12Leading national telecom company Orange France needed to

130、 develop new customer offerings on digital channels.The company developed a comprehensive Orange Campus program to enhance employees digital competencies.Using co-creation studios,Orange France formed a vision of how human talent and technology can work together seamlessly.In the process,150 current

131、 roles were narrowed down to 30 top roles,and 80 digital competencies for tomorrows workforce were identified.Orange France reorganized training paths and boosted career mobility by helping employees acquire newand critical digital skills.CultureInclusive Human-technology PartnershipsThe most obviou

132、s characteristics of the Virtual Enterprise are the new interfaces among the people,the ecosystem,and the exponential technologies they access.As location becomes less important,the opportunity to access skills and capabilities from anywhere becomes real.This extended access to people across your or

133、ganization,from partner organizations and the wider crowd through the ecosystems,has huge potential.At the same time,the effectiveness of this extended and dynamic collaboration requires robust and defined workflows and easy-to-use tools and systems.For people,the Virtual Enterprise is both an oppor

134、tunity and a threat.There is a chance to bring your skills to bear in new areas through the power of global connectivity,but likewise the access to skills that can out-perform your own is easier too.Thus,it steps up the imperative for continuous and extended learning,as well as the alignment of agil

135、e approaches.The concept of the employee is open to reconsideration in a manner that extends beyond the gig economy to a deliberate structural approach to organization and capability building.The Virtual Enterprise will thus need a clear,reinvented,and open workforce strategy.Virtual Enterprises nee

136、d to be entities where leaders,employees,and stakeholders have a renewed trust in data and technology as key drivers of decision making and the core rules of the operating model.Digital workers and bots will make more decisions that have greater impact.Being able to build these in a way that is both

137、 predictable,contextual,and progressive will be a challenge.Very importantly,the Virtual Enterprise has the potential to be a massive accelerator of inclusion and diversity as different divisions,organizations,geographies,and backgrounds get to engage in the extended workflows that are created.There

138、 is an opportunity to create new“on ramps”to the global economy for those who are currently excluded through trusted open platforms and extended workflows.Barriers to entry can be lowered and virtual models can remove the need for migration to access economic activity.But the openness potential in t

139、his area is not simply driven by the technology or platform attractiveness.Building blocks of the Virtual EnterpriseThe Virtual Enterprise can be a massive accelerator of inclusion and diversity as different divisions,organizations,geographies,and backgrounds get to engage in extended workflows.2526

140、There needs to be a deep underlying openness in the culture and values of the organization and its ecosystem to accept and appreciate the diversity of contributions and diversity of people.Poorly considered or narrow definitions of the Virtual Enterprise team can actually damage the diversity of the

141、 group if group think thrives in remote,disconnected bubbles.As extreme automation,digitization,and algorithms become the norm and people are fragmented into more remote work environments,there is,of course,a risk that the humanity of the Virtual Enterprise will come under pressure.We can see that s

142、ome of the new work models have already stretched the ability of teams and individuals to cope with the blurred worlds of home and work.We have seen technologies such as video meetings dominate the virtual interactions of all of us.While the“transaction”of co-working has been possible,the glue of em

143、pathy,collaboration,and networking is being eroded.We miss the serendipity of water-cooler moments while the mental health challenges of extended lonely remote interactions remain hidden from Zoom,Teams,or Webex.The Virtual Enterprise and its leadership will need to proactively tackle these challeng

144、es.Putting the“human”back in the machine is crucial while authentic executive interventions come at a premium.A more hybrid work environment is becoming the new normal,with new rules of engagement for teams and organizations with regard to ways and locations of working,supervision,and leadership(see

145、 Figure 6).Office location,design,and scaling will become a more complex and important factor for businesses.The balance between open spaces and privacy will need to evolve with the workflows and the tools that each worker uses.Enterprise leadership will need to roll out these new tools of the trade

146、 as a strategic imperative,providing a clear path to competitive advantage.Building a strong corporate culture will require a new playbook as the enterprise becomes increasingly virtual.Leaders will be challenged to instill a positive corporate identity among a workforce that spans the globe and inc

147、ludes employees who only meet virtually.Clear communication,leading by example,and continuous feedback to foster employee growth will be crucial to establishing a winning culture.Building blocks of the Virtual Enterprise27Figure 6Evolution of human-technology partnerships13The pandemic has accelerat

148、ed the virtualization of customer and employee interactions and shaped durable new ways of working.New hybrid ways of working are emerging and will require new tools and rules of engagement for people,teams,and organizations.The virtualization of work has opened up new opportunities and challenges f

149、or organizations and employees alike,where global capabilities can be accessed with greater ease.Key insightsEmployed(Inside)Contracted(Outside)Accessed(Out there)LocalElsewhereAnywhereToolsNetworksPlatformsExtended Intelligent Workflows26ResultsDelta expects 90%+of its applications and databases to

150、 be in cloud environments by 2024Delta expects 30%+improvement in development productivity as a result of this transformation 1,000+Delta IT experts will be trained in application development and delivery,data management,and security28Delta Air LinesModernizing the technology platform14Delta Air Lin

151、es understands the need to constantly evolve its digital presence and enhance its customer(and employee)experience.With demand down due to the pandemic,the company recognized a unique opportunity to modernize its digital foundations and operations.As part of its digital transformation,Delta is migra

152、ting most of its data and applications to the cloud for improved customer experience and greater efficiency across its business.Moving to an open hybrid cloud architecture enables a consistent standards-based approach to development,deployment,security,and operations across clouds.Deltas new cloud a

153、rchitecture will help weave its networks together,increasing agility and unlocking data for use across applications.29ResilienceOpen Secure Hybrid Cloud and NetworksThe potential for the Virtual Enterprise is huge.We described new market-making platforms embedded in new ecosystem relationships and p

154、owerful Intelligent Workflows that are being reinvented through science and data-led innovation and bringing wide-ranging sustainable impact.We also explored a wholesale shift in how people will interact with technology along these workflows,driving empathy,productivity,and experience.None of this,h

155、owever,will be possible without a fit-for-purpose application and infrastructure architecture to support it.The recent pandemic triggered a natural acceleration in the use of cloud-based architectures to deliver the flexibility and adaptiveness digital acceleration demands.But more than just“clouds”

156、will underpin the enterprises of the future.Only the right clouds for the right workloads in the right overarching architecture can enable openness and security.The Virtual Enterprise is massively enabled by the modern,open,and secure architecture delivered by hybrid cloud.Within the enterprise,appl

157、ication islands create siloes that limit the reach of Intelligent Workflows,and the emergence of multiple cloud-based solutions has only created new levels of potential disjointedness.This has increased the value of opensource architectures that can straddle mainframe,private,and public environments

158、 and underpin the extended workflows.This architecture and the control panes that accompany it enable even more value when they reinforce partner and ecosystem connectivity outside the enterprise.Many of the evolving new multiplatform ecosystems are benefitting from the plug-compatibility that has a

159、risen from open APIs and microservices that can be shared,alongside the deep value that comes from data mobility across the partners.Open source solutions are a further multiplier effect for the collaboration and building of shared capabilities that can release new cross-functional and cross-industr

160、y value.The solutions created through such models draw upon the development and innovation of the crowd,and different contributions arrive with inherent compatibility.This is fundamental to the adaptiveness of the Virtual Enterprise.Open source also has a huge impact on accessing the skills required

161、 to build and maintain these new systems as proprietary limitations and specializations are reduced.Organizations are struggling with the skills reinvention challenge they face with legacy IT workforce as they embark upon their transformation journeys.The more open the underlying solutions and archi

162、tectures leveragedand the more they straddle the worlds of mainframe,private,and public cloudsthe more fungible and reusable the teams that undertake the work of development and maintenance can be.Building blocks of the Virtual EnterpriseThe CIO and CTO become more important members of the C-suite n

163、ot just because technology has become the business,but because the strategic calls made about the technology architecture have become the rate limiters of competitive advantage once more.The need to make the right decisions with regard to next-generation enterprise systems as the backbones of Intell

164、igent Workflows and platforms is key.As are the choices of on-premise,private,and public cloud infrastructures that will support the data and security needs of the ecosystem.And all of this has to sit within an economic cost envelope that can be flexed in line with business context.Application moder

165、nization in service of the Virtual Enterprise is a complex task,and there is a very real risk of legacy complexity being replaced by digital and cloud complexity.Agile approaches,DevSecOps,and automation can help,but they still need guide bars and tracks on which to be organized.The emergence of Con

166、trol Tower approaches to orchestrate the moving parts of the enterprise architecture is important,and we can imagine the extension of this thinking to straddle the end-to-end environments of the ecosystem,powered by open standards.Data availability,quality,security,and scalability will be critical f

167、or the Virtual Enterprise to flourish,and this has big implications for the underlying technology architecture,too(see Figure 7).As multicloud solutions proliferate along the Intelligent Workflows and platforms,the need grows to understand and manage the location ofand the speed to accessthe data th

168、at fuels them.It is an irony of the virtual world that data gravity can matter more than ever.Building blocks of the Virtual Enterprise30Similarly,cloud-based enterprise resource planning(ERP)solutions play an important role in the overall architectureand are a mainstay for Intelligent Workflows.Thr

169、ough precise integration of cloud-based ERP solutions,differentiated data,and open application platforms,Extended Intelligent Workflows operate together across multiple environments,providing a robust core for the Virtual Enterprise.Security is already one of the most important factors underpinning

170、the evolution of more technology-enabled business and business models.As the enterprise ecosystem is extended into other partners or platforms,the need to align the security envelope along the whole Intelligent Workflow only increases.Data and information are the raw material of these new workflows,

171、but the value of that data is hugely dependent upon the transparency,trust,and security of these sources.New technologies such as blockchain have the potential to play a fundamentally different and enhanced role in the acceleration of these new models,as they provide certainty of identity,provenance

172、,and activity along the workflow.Finally,in the Virtual Enterprise,the power of the network to bind together the players in a seamless,secure,and real-time manner is also critical.Software-defined networks are the adaptive solutions that,together with hybrid cloud technologies,provide the next gener

173、ation of connectivity and resilience.This is redefining the role of the telco provider and opening up the field to new players and ecosystem partners seeking to provide components in these new network value chains.Once again,the openness of the underlying technology architectures is becoming more an

174、d more critical.31Figure 7Open secure hybrid cloud and networks are foundational to the Virtual Enterprise15The openness of the Virtual Enterprise needs to be enabled by open secure hybrid multicloud technology architectures.Architectural choices and leverage of open secure solutions with fungible s

175、killsets are fundamental to the success of the Virtual Enterprise.The new ecosystems and extended Intelligent Workflows require massive application modernization and technology renewal to leverage data access,flexibility,and TCO.Key insightsEcosystemsMarketOutcomesExtended Intelligent WorkflowThe Go

176、lden ThreadAutomationBlockchainAIIoTOpen container architectureHybrid multicloud and networksData fabricThe Garage as an execution vehicle for the Virtual EnterpriseThe scale of change represented by the Virtual Enterprise is significant and wide-reaching across the organization and its ecosystem pa

177、rtners.There is a need to maintain focus on the overall intent of the strategy,align key stakeholders,and make meaningful accelerated progress while not swamping the enterprise with change or unleashing agile“chaos.”The Garage approach is an effective way to bring the various components and players

178、together in a change architecture that can pursue the Golden Threads of value;build concrete modules of enhanced performance;and tie people,processes,and systems together at scale.The Garage model of co-creation,co-execution,and co-operation has proven to be effective in the virtual world that has b

179、een forced by the pandemic.The ability to bring skills,talent,and knowledge to bear from anywhere is very productive.It straddles functional boundaries in the organization and enables ecosystem partners to participate in innovation and digital transformation.The approach also reinforces core focus a

180、reas and strategic intent,as well as lays down the architectural rules or train tracks for the agile cross-functional teams to operate within.In addition,the Garage has data as its raw material for opportunity identification and leverage for ideation and impact and can plug in pre-configured solutio

181、ns from the ecosystem to accelerate progress.Figure 8Enterprise transition from legacy to new16Hybrid multicloud and networksLegacyNew Extended Intelligent WorkflowsOpen container architectureGarageNew32Data fabric33The six imperatives of the Virtual Enterprise can,therefore,be delivered and acceler

182、ated through a Garage approach,aligned with the Extended Intelligent Workflows that need to be constructed and nested within a clear overall Transformation Program.Through this approach,it is possible to:Embrace the ecosystem opportunity in strategic intent and business platform design as a driver o

183、f accelerated digital transformationInnovate with science and data-led approaches to drive progress across workflows,platforms,and ecosystemsExtend Intelligent Workflows to create differentiated Golden Threads of technology-enabled business transformationSolve the biggest challenges of our time thro

184、ugh alignment of strategy and executional impact to achieve sustainable development goals while building team purpose and engagementEmpower the virtual workforce to enrich core Intelligent Workflows and continually experiment to improve customer and employee experiencesAccelerate complex change prog

185、rams that grow platforms,ecosystems,and extended workflows through hybrid cloud and networksCore action guide of the Virtual EnterpriseEmbraceInnovateExtendSolveEmpowerAccelerateThe Garage approach combines components and players in an architecture that can pursue Golden Threads of value;enhance per

186、formance;and tie together people,processes,and systems at scale.34Notes and sources1 IBM Institute for Business Value.2“Yara and IBM.”IBM client stories.IBM website,accessed April 2021.https:/ website,accessed April 2021.https:/www.yara.us/crop-nutrition/tools-and-services/atfarm/3“Schlumberger,IBM

187、and Red Hat Announce Major Hybrid Cloud Collaboration for the Energy Industry.”IBM press release.September 8,2020.https:/ and the future of business:Executive epiphanies reveal post-pandemic opportunities.”IBM Institute for Business Value.September 2020.ibm.co/covid-19-future-business.Question:To wh

188、at extent is your organization participating in the following networks and business models?(2 years ago Today in 2 years).Percentages represent respondents that answered high/very high.n=3,450,fielded April-June 2020.5“Cleveland Clinic and IBM Unveil Landmark 10-Year Partnership to Accelerate Discov

189、ery in Healthcare and Life Sciences.”IBM press release.March 30,2021.https:/ Clinic Named No.2 Hospital in Nation and No.1 Hospital for Heart Care by U.S.News&World Report.”Cleveland Clinic press release.July 28,2020.https:/newsroom.clevelandclinic.org/2020/07/28/cleveland-clinic-named-no-2-hospital

190、-in-nation-and-no-1-hospital-for-heart-care-by-u-s-news-world-report/6 Data and research from Strategic Business Insights,IBM Research;Ward-Foxton,Sally.“Accelerated Discovery:AI and the Scientific Method.”EE Times.January 19,2021.January 19,2021.https:/ we.trade.IBM case study.8 IBM Institute for B

191、usiness Value.9“Shell accelerates drive for net-zero emissions with customer-first strategy.”Shell press release.February 11,2021.https:/ Oren.”Oren website,accessed April 2021.https:/ digital mining solutions product page.Oren website,accessed April 2021.https:/ Sharon,Alita.“HKIA develops digital

192、twin.”OpenGov Asia.October 3,2019.https:/ the Port of Rotterdam is using IBM digital twin technology to transform itself from the biggest to the smartest.”IoT blog,August 29,2019.IBM website,accessed April 2021.https:/ “COVID-19 and the future of business:Executive epiphanies reveal post-pandemic op

193、portunities.”IBM Institute for Business Value.September 2020.ibm.co/covid-19-future-business.Question:To what extent is your organization prioritizing the following business competencies?(2 years ago Today in 2 years).Percentages represent respondents that answered high/very high.n=3,450,fielded Apr

194、il-June 2020.12 Orange France.IBM case study.13 IBM Institute for Business Value.14“Delta Air Lines Taps IBM for Cloud Expertise and Red Hat Hybrid Cloud Platform.”IBM press release.February 18,2021.https:/ Taps IBM to Move More Applications to the Cloud.”The Wall Street Journal.February 18,2021.htt

195、ps:/ 15 IBM Institute for Business Value.16 Ibid.Copyright IBM Corporation 2021IBM CorporationNew Orchard RoadArmonk,NY 10504Produced in the United States of America May 2021IBM,the IBM logo,and are trademarks of International Business Machines Corp.,registered in many jurisdictions worldwide.Other

196、product and service names might be trademarks of IBM or other companies.A current list of IBM trademarks is available on the web at“Copyright and trademark information”at document is current as of the initial date of publication and may be changed by IBM at any time.Not all offerings are available i

197、n every country in which IBM operates.THE INFORMATION IN THIS DOCUMENT IS PROVIDED “AS IS”WITHOUT ANY WARRANTY,EXPRESS OR IMPLIED,INCLUDING WITHOUT ANY WARRANTIES OF MERCHANTABILITY,FITNESS FOR A PARTICULAR PURPOSE AND ANY WARRANTY OR CONDITION OF NON-INFRINGEMENT.IBM products are warranted accordin

198、g to the terms and conditions of the agreements under which they are provided.This report is intended for general guidance only.It is not intended to be a substitute for detailed research or the exercise of professional judgment.IBM shall not be responsible for any loss whatsoever sustained by any o

199、rganization or person who relies on this publication.The data used in this report may be derived from third-party sources and IBM does not independently verify,validate or audit such data.The results from the use of such data are provided on an“as is”basis and IBM makes no representations or warrant

200、ies,express or implied.34038434USEN-02The right partner for a changing worldAt IBM,we collaborate with our clients,bringing together business insight,advanced research,and technology to give them a distinct advantage in todays rapidly changing environment.IBM Institute for Business ValueThe IBM Inst

201、itute for Business Value,part of IBM Services,develops fact-based,strategic insights for senior business executives on critical public and private sector issues.For more information To learn more about this study or the IBM Institute for Business Value,please contact us at .Follow IBMIBV on Twitter,and,for a full catalog of our research or to subscribe to our monthly newsletter,visit: