IBM Systems Magazine, Mainframe Edition - November/December 2010 - 28

enlightened me about technology as it interfaced with business. By 1995 I was collecting data for business and technology. I thought it would be useful over the long term to start collecting data on technology use in business and global economics to develop some coherent model of that interface. In 1995, Canada was interested in how it could compete against other nations. I conducted a global study on technology and Canada’s national competitiveness. (This became the Worldwide IT Trends and Benchmark Project; it’s now the Worldwide Benchmark database, which Gartner owns and updates annually.)

Experience
D
r. Howard Rubin has built global databases drawn from more than 12,000 companies and 130 countries over the past 30 years in an effort to measure what impact technology has on business efficiency, profitability and the ability to innovate. Through his focus on data analytics, he has worked with the Gartner Group and META Group Inc. As a Nolan Norton research fellow, he helped develop the balanced-business scorecard. Rubin also has served as a member of the Global Information Economy Working Group of the U.S. State Department’s Advisory Committee on International Economic Policy, and has worked directly with heads of state in Canada, India, the Philippines and South Africa to develop national competitive-technology strategies. – S.A.

A Wealth of

K What questions interested you
then, and how have they changed over time?

; The first question I focused on was:

does? You must translate it to the business metrics. You have to know, ‘What is my technology cost of goods?’ The more you understand those numbers, the better you can go on to the predictive business models to figure out what technology strategies might make a difference to your competitiveness. If you know the cost of what you spend in technology to maintain a hospital bed, you can start to understand margins. Or you can see that this spending on technology opened the door to this new market, which is taking off. In 2009 the world spent $4.2 trillion on technology. If that were gross domestic product, tech spending would be the fourth largest nation on the planet. It’s about time we started to look at and understand the business economics of it.

“what is measurable? What can you measure with accuracy?” Spending on technology in the ’80s wasn’t well defined or managed in businesses. I started with where to collect data, what data to collect, what to measure: what were people spending and what were they buying? The initial focus was trying to measure technology investments, or inputs. Over the past 10 years, technology accounting has improved. You can go to a company now and really get an idea of what they’re spending. Now there’s a shift from tracking what’s flowing in, to what has the outcome been? You’re making this investment, but how has it changed your business? Has it affected the number of people you employ, your geog raphy or your product offerings? People know what they spend on servers or mainframes, but how do you compare what that cost

Gross Domestic Product
n. the market value of all goods and services made within a county’s border within one year, or its economic output.

K This is your argument: That
measuring IT spending against operating expense and net revenue is a more accurate measure of spending levels than the traditional metric of net revenue alone?

;

Even though companies know technology is important, they view it as expense. They think cheap is good. Like a diet, they think minimizing the calories is the way to go. But in fact, they’re starving

28

NOVEMBER/DECEMBER 2010

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IBM Systems Magazine, Mainframe Edition - November/December 2010

Table of Contents for the Digital Edition of IBM Systems Magazine, Mainframe Edition - November/December 2010

IBM Systems Magazine, Mainframe Edition - November/December 2010
Contents
On the Web
Editor's Desk: Tradition Takes Planning
Dashboard: Walk While You Work
Data Display: All About Spam
Think Smarter: IBM Offers Smarter Systems for Performance and Scalability
Trends: Rosamilia Oversees Both System z and Power Systems Lines as New GM
Break Through Economics: Dr. Howard Rubin Discusses Mainframe Efficiencies and the zEnterprise System
Streamlining Development: IBM Rational on zEnterprise System Utilizes Multiplatform Development Capabilities
Administrator: The zEnterprise System Changes Firewall Requirements
Technical Corner: z/OS Predictive Failure Analysis Make It Easy to Spot and Fix Soft System Failures
Developer: Native XML Support Strengthens DB2 and COBOL Development
Solutions
Advertisers' Index
Stop Run: Former IBMer Jim Bell Finds Inspiration in Music
IBM Systems Magazine, Mainframe Edition - November/December 2010 - IBM Systems Magazine, Mainframe Edition - November/December 2010
IBM Systems Magazine, Mainframe Edition - November/December 2010 - Cover2
IBM Systems Magazine, Mainframe Edition - November/December 2010 - 1
IBM Systems Magazine, Mainframe Edition - November/December 2010 - Contents
IBM Systems Magazine, Mainframe Edition - November/December 2010 - 3
IBM Systems Magazine, Mainframe Edition - November/December 2010 - 4
IBM Systems Magazine, Mainframe Edition - November/December 2010 - 5
IBM Systems Magazine, Mainframe Edition - November/December 2010 - On the Web
IBM Systems Magazine, Mainframe Edition - November/December 2010 - 7
IBM Systems Magazine, Mainframe Edition - November/December 2010 - 8
IBM Systems Magazine, Mainframe Edition - November/December 2010 - 9
IBM Systems Magazine, Mainframe Edition - November/December 2010 - Editor's Desk: Tradition Takes Planning
IBM Systems Magazine, Mainframe Edition - November/December 2010 - 11
IBM Systems Magazine, Mainframe Edition - November/December 2010 - Dashboard: Walk While You Work
IBM Systems Magazine, Mainframe Edition - November/December 2010 - 13
IBM Systems Magazine, Mainframe Edition - November/December 2010 - Data Display: All About Spam
IBM Systems Magazine, Mainframe Edition - November/December 2010 - 15
IBM Systems Magazine, Mainframe Edition - November/December 2010 - Think Smarter: IBM Offers Smarter Systems for Performance and Scalability
IBM Systems Magazine, Mainframe Edition - November/December 2010 - BMC1
IBM Systems Magazine, Mainframe Edition - November/December 2010 - BMC2
IBM Systems Magazine, Mainframe Edition - November/December 2010 - BMC3
IBM Systems Magazine, Mainframe Edition - November/December 2010 - BMC4
IBM Systems Magazine, Mainframe Edition - November/December 2010 - 17
IBM Systems Magazine, Mainframe Edition - November/December 2010 - 18
IBM Systems Magazine, Mainframe Edition - November/December 2010 - Trends: Rosamilia Oversees Both System z and Power Systems Lines as New GM
IBM Systems Magazine, Mainframe Edition - November/December 2010 - 20
IBM Systems Magazine, Mainframe Edition - November/December 2010 - 21
IBM Systems Magazine, Mainframe Edition - November/December 2010 - 22
IBM Systems Magazine, Mainframe Edition - November/December 2010 - zE1
IBM Systems Magazine, Mainframe Edition - November/December 2010 - zE2
IBM Systems Magazine, Mainframe Edition - November/December 2010 - 23
IBM Systems Magazine, Mainframe Edition - November/December 2010 - 24
IBM Systems Magazine, Mainframe Edition - November/December 2010 - 25
IBM Systems Magazine, Mainframe Edition - November/December 2010 - Break Through Economics: Dr. Howard Rubin Discusses Mainframe Efficiencies and the zEnterprise System
IBM Systems Magazine, Mainframe Edition - November/December 2010 - 27
IBM Systems Magazine, Mainframe Edition - November/December 2010 - 28
IBM Systems Magazine, Mainframe Edition - November/December 2010 - 29
IBM Systems Magazine, Mainframe Edition - November/December 2010 - 30
IBM Systems Magazine, Mainframe Edition - November/December 2010 - 31
IBM Systems Magazine, Mainframe Edition - November/December 2010 - Streamlining Development: IBM Rational on zEnterprise System Utilizes Multiplatform Development Capabilities
IBM Systems Magazine, Mainframe Edition - November/December 2010 - 33
IBM Systems Magazine, Mainframe Edition - November/December 2010 - 34
IBM Systems Magazine, Mainframe Edition - November/December 2010 - 35
IBM Systems Magazine, Mainframe Edition - November/December 2010 - 36
IBM Systems Magazine, Mainframe Edition - November/December 2010 - Administrator: The zEnterprise System Changes Firewall Requirements
IBM Systems Magazine, Mainframe Edition - November/December 2010 - 38
IBM Systems Magazine, Mainframe Edition - November/December 2010 - 39
IBM Systems Magazine, Mainframe Edition - November/December 2010 - Technical Corner: z/OS Predictive Failure Analysis Make It Easy to Spot and Fix Soft System Failures
IBM Systems Magazine, Mainframe Edition - November/December 2010 - 41
IBM Systems Magazine, Mainframe Edition - November/December 2010 - 42
IBM Systems Magazine, Mainframe Edition - November/December 2010 - 43
IBM Systems Magazine, Mainframe Edition - November/December 2010 - Developer: Native XML Support Strengthens DB2 and COBOL Development
IBM Systems Magazine, Mainframe Edition - November/December 2010 - 45
IBM Systems Magazine, Mainframe Edition - November/December 2010 - Solutions
IBM Systems Magazine, Mainframe Edition - November/December 2010 - Advertisers' Index
IBM Systems Magazine, Mainframe Edition - November/December 2010 - Stop Run: Former IBMer Jim Bell Finds Inspiration in Music
IBM Systems Magazine, Mainframe Edition - November/December 2010 - Cover3
IBM Systems Magazine, Mainframe Edition - November/December 2010 - Cover4
IBM Systems Magazine, Mainframe Edition - November/December 2010 - RF1
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