1. Key Issues 1. What trends are driving the second Internet revolution and amplifying the impact of the consumerization on IT? 2.What are the characteristics of the second Internet revolution? 3. How will firms take advantage of and manage the impact of the consumerization of IT and the second Internet revolution?

2. So What? Why enterprises should care Emergence of "the net fabric," where computers and IT work as people do, rather than vice versa Their users and their customers are people People increasingly expect what they can do at home to be available at work. New workers increasingly familiar with technology New business models as companies reach users Why IT should care New technologies increasingly show up first in consumer markets Blurring of lines between personal and business use (notebook computers used for work and play, regardless of who paid for it) Products will be increasingly designed for consumers and IT will have to figure out how to use them

3. Consumer Markets Are Driving Semiconductor Technology Consumer percent of semiconductor market Consumers are now primary drivers of semiconductor investment Previously driven by military and enterprise requirements Consumer features influence business hardware and applications Massive shift has happened in semiconductors, poised to affect broader hardware and software 0% 10% 20% 30% 40% 50% 60% 199420042014

4. Demographics Is Destiny: Watch Out for … New-Generation Workers Technology taken for granted; broad and deep capabilities assumed Workplace, Practices and Attitudes Blurring of work and leisure; conflict between new and old attitudes This generation … Baby boom echo 80 million strong (U.S.) 8 – 28 years old Grew up with technology Understands the power of technology better than you understand it Have significantly different value systems than preceding generations