Keeping up with the demands of technology is no easy task. It’s 2015 and there are a lot of expected predictions about where technology is headed this year. So which trends should you worry about and which are just predictions that may never happen? After all, money is tight and you need to spend your dollars where it will do the most good for your business.
We’ve analyzed three major announcements produced late last year and summarized the findings for you. They are from Accenture and Gartner (references at the bottom of this article). Looking at the three pronouncements learned, there is a lot of common ground: Digitization, Personalized Experiences, Internet of Things, Platform Companies, Big Data, and Changing the workforce to deal with the new IT environment.
Prepare for the fully digitized world
The buzzword for 2015 is sure to be SMAC: social, mobile, analytics, and cloud. These are the four areas that will need your full attention as we move into 2015 and plan for the years ahead.
A quick look at shopping malls, cafes and restaurants will show you thousands of people glued to tablets and mobile phones. People are even starting to wear new technology on their wrists, like smartwatches and fitness trackers. Google Glasses initially failed to take off, but will return in some format. People communicate, post, email and shop through smaller mobile screens. An envious look at the Big Four: Google, Amazon, Facebook and Twitter quickly demonstrates that mobile computing, shopping and social networking are prevalent and profitable. Oh, those beautiful “P” words!
The rise of mobile computing means that people want to have their things at their fingertips. Unfortunately, those things, whether it’s movies, photos, or songs, mean big files. Fortunately, cloud computing is becoming sophisticated enough to handle these large files and deliver them to where people need their data.
Gartner believes that the combination of cloud and mobile computing will lead to intelligent applications that can use storage efficiently, reduce bandwidth demands and enable simultaneous use on multiple devices. They believe that computing will need to move beyond static models to take advantage of the rich APIs that cloud computing provides.
The consequence of much more activity is that much more data is being produced. Called Big Data, this mass of data is what many CIOs are struggling to understand in hopes of gaining a marketing advantage over their rivals.
internet of me
Accenture has coined the phrase “The Internet of Me” to explain that everyone is now looking for a personal experience online. Social media and shopping are changing and people now demand the same personal interaction they used to enjoy at the mall or coffee shop with their friends. The company that can individually personalize a person’s interaction with them will win that customer’s loyalty and money.
Gartner noted that there will be an increase in wearable technology, as well as a saturation of mobile technology. Very soon computing will be everywhere. They suggested that instead of focusing on the technology being used, companies should focus on the user experience. On this they agree with Accenture: how the customer personally interacts with a company is much more important than the device he uses. Gartner notes that along with this new personalized experience, context-aware security will need to be enhanced.
Get on a platform or, better yet, build the platform
Accenture champions a platform strategy as the future of commerce. The likes of Amazon started with Amazon Market Place, Apple with iTunes, and Etsy with its marketplace. Now other well-known blue chip companies are following suit.
The rise of social, mobile, and cloud technology is driving this business strategy, and SMAC’s fourth part, analytics, is finding markets, testing products, and rewarding customers. The cloud encourages easy content production and its availability to potential customers around the world. Social networks connect these people and mobile technology makes it feasible, attractive and fast to create, market and execute a sale.
Gartner calls it web-scale IT and believes more companies will start to think and operate like Amazon, Google and Facebook. They believe this will start with the merger of Development and Operations (called DevOps) which will kick off the shift to large-scale web-based operations.
It’s all coming together now
The Internet of Things (IoT) – large groups of objects that are connected via the Internet with a unique identifier, allowing them to communicate with each other without human interference – is growing. Gartner believes that this will be critical to product sales and operational processes and that companies need to focus on this technology and that the IoT is the driving force of the digital economy.
Grow the digital ecosystem
Gartner believes that the digital economy is made up of digital businesses blending the physical worlds with our digital world and that this will eventually change the way businesses operate and interact with their customers, suppliers and developers.
In 2014, Accenture wanted companies to use technology as an engine for growth. In 2015, they are urging businesses to go digital by digitally leveraging their customers, suppliers, data sources, and alliance partners. For the brave there is also the option of including things in this digital ecosystem. They believe that future industry power brokers will be placed at the center of a digital ecosystem in the same way that Google is the power behind Internet marketing and Amazon is at the center of Internet shopping. Their belief is that these new powerhouses, who will grow exponentially, will be able to create markets instead of having to find and develop existing markets.
Stop drowning in data
The Internet of Things and the rapid adoption of mobile technology, social media and cloud computing mean that there is an incredible amount of information being fed back into any organization. Any interaction, be it research, social, entertainment or shopping, leaves a digital trail. Savvy marketers have always known that this data can provide insights that can be used to identify markets and buy signals. Unfortunately, this data has now been coined Big Data and companies are now drowning in data and information. Fortunately, other companies are coming up with analytical tools and software intelligence systems to dig into this Big Data and extract the required information.
Accenture believes that controlling this data through the use of the right analytic methods will enable a company to make innovative decisions across the enterprise. Gartner asserts that rather than Big Data being important, it is the questions being asked of the data and the answers produced that should be the focus of the CIO and business strategists.
Intelligent machines that react to people
Gartner believes that once companies conquer Big Data analytics and the personal interface, this will pave the way for intelligent machines that will interact with humans, learn what is needed, and react accordingly. Some may see this as a nightmare, others as a logical step forward. Whatever his point of view, the company that leads the way will be as innovative as Google, Amazon and Facebook combined.
Take a look at your current IT workforce
Accenture believes that very soon all CIOs will be digitized and that humans and smart technology will need to collaborate and find a way to work together.
Gartner surveyed 2,800 CIOs (Chief Information Officers) from 84 countries, showing that most were aware of what it took to succeed in this brave new world, with 75% citing the need to change their leadership style . There is a definite rise in the role of a DIO (Digital Information Officer) and many more CIOs are reporting directly to the CEO (Chief Operating Officer), showing an increase in the prominence of IT within a company.
Gartner highlights two potential problem areas: lack of portfolio management capacity and inefficient risk management. The ability to manage projects and activities across a wide range of platforms and processes will become more important as the digital world evolves. Changes always bring risk and the correct management and mitigation of this risk will be key to profitability and growth.
Other trend forecasters have mentioned the need for internet marketing functions to merge with digital marketing functions, leading to a better customer experience and winning more profitable potential markets.
Other interesting trends
Gartner believes that the rise of cheaper 3D printing will lead to major changes in some fields, such as medical and manufacturing, changing the way they produce their products.
Finally, Gartner believes that security will obviously remain important, but the rapid emergence of a fully digital experience means that it shouldn’t impede progress. This means that 100% will no longer be possible, leading to the rise of more sophisticated risk assessment and mitigation systems.
There could be trouble ahead
The sheer scale and speed of change expected in 2015, combined with the complexity of micromanaging personalized experiences, means that many small and midsize businesses are outsourcing their CIO functions to specialist companies that know how to deal with these factors. Larger companies with larger budgets also seek experienced support. There are a lot of job postings for digital jobs and DIOs are wanted.
Data analysts and security specialists are emerging, as well as companies that can make sense of Big Data and guide companies through this maze. Finally, cyber security is changing as the technological fabric that guides products to consumers changes. Security has always been important to CIOs, and now many are looking for consultants who can guide them through this new maze of change. media and marketing and professional writing requirements.
