Ten Behind, Ten Ahead

Now and then it's a good idea to review the past decade for clues to where we might venture in the decade to come.


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Posted on Apr 27, 2006

In my mind, the mid-1990s were among the most exciting times in the history of IT. The Internet was picking up steam, Microsoft Windows had successfully penetrated the plant floor, and client-server technology was the new mainstream architectural paradigm. Here are some other highlights: Reengineering the Corporation: The business process reengineering (BPR) wave triggered by Hammer and Champy's book Reengineering the Corporation was in high gear, driven by the Big 6 (then Big 5, then Big 4) firms. BPR lost favor because it usually resulted in headcount reductions, and was eventually replaced by an increasing trend toward "package-based reengineering" based on enterprise software applications. ERP rides the client- server wave: SAP's client- server version of its enterprise resource planning (ERP) software, SAP R3, became the dominant manufacturing enterprise software application, a position it still enjoys today. Noteworthy here is how a new architectural paradigm -- client-server -- helped fuel a major new software market for packaged applications. Y2K adds fuel to the fire: The Y2K phenomenon created a perfect storm for the IT industry, and IT spending levels have not recovered since. Dot-com to dot-bomb: When the hype faded into reality, the Internet and eBusiness really were very useful innovations. Web 2.0 is successfully playing out now, and IT governance has emerged as a critical alignment mechanism. Global business: Global competition, outsourcing, and the rise of China are our new reality. No matter how distasteful we may find outsourcing to be, it is a wide open door that will be increasingly difficult to close. We are truly participants in a worldwide economy. Deal with it! Web services and SOA: Web services emerged in the middle of this 10-year span. Web services signaled the next IT architectural paradigm, in effect pushing client-server out to pasture in favor of modular, standards-based approaches. Service-oriented architecture (SOA) envelopes Web services as the appropriate implementation model, and represents one of the most promising IT disciplines in years. The next 10 years: 2006-2016. I'm no futurist, but there are a few trends that augur how the next decade may unfold:

  • A continued decline in mathematics, sciences, and engineering by U.S. students creates a knowledge emergency in America. Radical reform of high school and higher education systems begins, although results won't be felt for another 10 years.
  • The decline in R&D spending by U.S. firms finally bottoms out. U.S. investment in R&D and innovation begin anew in parallel with the educational reforms above.
  • The IT industry continues to be a crucial discipline and economic segment for the U.S. The SOA trend fuels a radical new model of IT strategy, sourcing, and delivery.
  • My son is three years old and proficient with a PC, Windows, and the Internet. What does this tell us about the next generation?
  • The advantages of labor outsourcing decline, but the rise of China, India, and other second- and third-world economies creates a wave of social unrest with higher expectations of social equality and social services.
Remember the Billy Joel song "We Didn't Start the Fire"? Well, we did start the innovation fire, but the rest of the world is catching on. We need to start a new fire.

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