1. Umberto Paolucci Vice President, Microsoft Corporation

2. “The major contribution of advances in information technology and their incorporation into the capital stock has been to reduce the number of worker hours required to produce the nation’s output, our proxy for productivity growth.” “The major contribution of advances in information technology and their incorporation into the capital stock has been to reduce the number of worker hours required to produce the nation’s output, our proxy for productivity growth.” Alan Greenspan Chairman, Federal Reserve

3. More Power And Capacity Hardware and Bandwidth CPU 2X / 18 months Bandwidth 3X / 18 months Disk Capacity 3X / 18 months

4. PC Power In New Forms 2 5 8 8 1 4 7 * Tablet PCs & Laptops Digital Video Camera Web Pads Security & Surveillance Video Conferencing Phone & Voicemail TV Auto PC HiFi Audio Games Pocket PCs Internet Cell Phone

5. Improved Interfaces Fueling Productivity Gains SpeechHandwriting High resolution displays Large displays

6. Digital Decade Software Foundation For information worker productivity For IT department efficiency For digital business processes

7. Software Challenge Why aren’t these problems easy to solve? How do I get integration of information and flexibility? Will these systems be reliable and self-managing? Will complexity for everyone involved be reduced?

8. Common Problems Boundaries hinder efficiency  Between software applications  Between systems  Between software and people  Between organizations Software designed for manual control

9. XML Is The Answer Work started in 1997 Microsoft bet the company on this with.NET in 2000 Major impact on all software systems - OS, database, Office Industry-wide adoption critical Competition on implementation

10. Software Before XML Catalog Functions and data internal Application as black box No easy control or automation Purchasing Application Prices Order

11. Software With XML Purchasing Application Standard way of exposing information Allows software to control software Industry and company standards important Catalog PricesOrder

12. Marketplace A Marketplace B Digital Business Processes From Marketplaces to Web Services Web Services

13. Are our business systems well connected? Are our information workers contributing to corporate goals? How much insight do we have on the metrics that impact our business? How good is our velocity and quality of decision making? Does our technology allow us to better respond to customers?

14. Are customers really at the center ?

15. Realizing The Potential Continue investment in information workers Build systems on XML standards Study early examples of success