UG 2000 – Real Time Business J. Patrick Kennedy, President.

UG 2000 – Real Time Business

J. Patrick Kennedy, President

Trends That Are Changing Us

Business Moves to Real TimeRails to Sails

E-Business

Vendor/User Relationships are Changing

UCITA

Risk vs Success

Rails ..

. . To Sails

Speed, Direction, Skill but no PI

Has PI

Must Be this Web Thing

Web Publication

Web Application

E-Commerce

E-Business

Web Publishing

Simple to Use or Produce

Get a Request

Formulate and Send a Page

Stateless/Asynchronous Operation

Mostly HTML

Mostly Static Content

Web Application

MS Document = Strategy

Uses Web Protocol as Client/Server

Presentation Tier (IE)

Middle Tier (IIS/MTS)

Data Tier (SQL Server)

Backbone of DNA

Web e-Commerce

Replace Business Processes

Web Centric

Requires Domain Knowledge

New Issues e.g. Redundancy

E-Business

Change the Business

Decrease Time to Respond

Increase Use of Information

Opportunistic

Greater Issues of Redundancy, Reliability, Security, . . . .

No Web – No Business

What is the Effect?

Bob Herbold - COO Microsoft on SAP

Happy with the Result

R/3 4.0 Presents 170 BAPI’s

COM Component Connector (MTS)

MS Market (4p/6m) 44->22->7

85% Reduction in Staff but MS Currently over $500,000/Person

Web Exchanges

Price VolatilityPlot-0

Peak Entergy Common High Peak Entergy Most Low 1/1/97 00:00:00 AM 12/20/97 06:49:10 PM353.78 Day(s)

P_C_ENT_CH

$/MWh P_C_ENT_ML

$/MWh

50

100

150

200

0

250Shutdown

Shutdown

P_C_ENT_CH

$/MWh P_C_ENT_ML

$/MWh

Two day Peakat 220 $/MWh

Typical dailyaverage 23 $/MWh

Two Day Opportunity10 times the typical market

1000 MW x 24 hrs x 220 =

$5,280,000

Infinite Bandpass

228 Fibers

40 Wavelets/Fiber

1/40 GHz/Wavelet

OSI Products

Thin Clients

Multilevel Systems

Wrappers for Legacy Systems

What is the Effect?

Asymmetry

Aggression Replaces Private Knowledge

VC Backed Ventures 10 Try/9 Fail

Who cares?

Regulated Industries

Aggressive but NOT Stupid

Next Step

Problem at the Top

My age has control, cannot wait for retirement

U of Kansas – 1964Only IBM 1410

Learned Programming by Chance (Programmed Leaning Text on Fortran 2)

Proposal

Executive Conference

Need Your Help

Incline Village, NV ~ Sept

Invitation Only

Pat@osisoft.com - Send me your thoughts

Vendor/User Relationships

No sharing of risk

UCITA – Enforceable Shrinkwrap

No one responsible for success

Technology Issue – HX Always Work

Net Effect – Tons of Dysfunctional Software

Short History of PI

Old Ideas Sometimes OK

Short History of PI

Advanced Controls – Tough Business

Had to Watch Transients

No Data

Operators -> DCS

Managers -> Mainframe

Staff -> Pencil and Paper

Building a Tool

Data Collection Systems Too Difficult to Configure and Install

Lots of Configuration Data Had to be Input

Built First System Intending to Offer as a Service

Application Hosting?

Application Hosting

Domain Knowledge with the Vendor

Software Sold as a Service

Fundamental Difference in the Interaction Between Users/Vendors

Addresses Support

Addresses Technology

What is the Downside?

Case Study – Small Refinery

Application Hosting Hardware

Proposal

AH Web Startup

www.industrialevolution.com

Roland Heersink/Simon Wright

See them on Tuesday

Software with NO Up Front Fees

Other Stuff

Retiring? Selling? IPO?

Growing to $100MM?

User Conferences?

Other Acquisitions?

Move to Linux?

House at Incline?

??