innovatie en ict trends
DESCRIPTION
Toepassing van IT trends blijkt voor 57% gericht te zijn op verbetering en maar voor 5% op transformatie. Zelfs met de nieuwste technologieën is radicale innovatie moeilijk te bereiken. Toch zijn de mogelijkheden er nog wel, de kunst is om ze te vinden en te realiseren.TRANSCRIPT
3 If you just follow, you will never lead Business innovation and IT trends
Contents
Executive summary 4 Background: Innovation and the CIO agenda 5 Cohesion and connection between technology trends 6 About the survey 8 General results 9 Results for ‘Hyper connection’ 12 Results for ‘Hybrid application ecosystems’ 16 Results for ‘From data to insight’ 19 Results for ‘User experience’ 22 Our interpretation of the results 24
Executive summary
Many emerging technologies promise a transformational and disruptive effect on the business. To provide more insight in the actual use of technology trends, Deloitte and CIO Magazine organized a national technology trends survey. This report summarizes the results and presents our point of view on technology trends and innovation.
trends can and should be categorized in five themes or megatrends:
•Hyperconnection(mobile) •Hybridapplicationecosystems(cloud) •Fromdatatoinsight(data) •Userexperience •Industrialisationofthedatacentre
6. Adoptionoftrendsintheuserexperiencetheme,like‘locationawareservices’,‘augmentedreality’and‘gamification’,islowerthanweexpected.However,innovationwillcomefromsolutionsthatcombinethepowerofnewformfactorsandrichcontextinformation.
7. OneremarkableresultofthesurveyishowtheCIOsassessthebusinessimpactofnewtechnologies.Theyregardthesetrendsasanimprovement(57%)ratherthanbeingtransformational(5%).Thisraisesthequestion‘howtransformationalaretechnologytrendsanyway?’Weallknowsilverbulletstobeillusory,butmanyemergingtechnologytrendsneverthelesshavethepotentialofatransformationalanddisruptiveeffectonthebusiness. A successful CIO combines technical expertise with imaginative power to spot the strategic use of IT and to lead this to its full potential.
8. IntheviewofDeloitte,radicalinnovationisrarelyrealisedbyasinglenewtechnology;instead,itrequiresasmartcombinationofmultipletrendsand technologies. A true Chief Innovation Officer should develop an innovation strategy per theme and even across themes.
9. NewtechnologiesraisenewissuesfortheCIO.WeaskedCIOstodescribetheirbiggesttechnologytrend challenges/dilemmas. Security and compliance stands out as the absolute winner. Itwasmentionedtwiceasmuchastherunneruponthelist:integrationofnewtechnologiesintheexisting(legacy)landscape.
Key findings1. Thesurveyunderpinsthethree main areas of
business-IT innovation: Mobile, Cloud and Data. Astheadoptionratesofindividualtrendsshowcompaniesare,however,stillworkingongettingthe basics right.
2. Mobilecomputinghasrevolutionisedinformationtechnologyandhasintroducedustothepostpcera.Injustafewyearssmartphonesandtabletshavefoundwidespreaduseinbusinesses.CompaniesarestillworkingonintegratingmobiledevicesintheirITlandscape.Thetop-3mobiletrendsinthisrespectare‘BringYourOwnDevice’,‘Mobiledevicemanagement’and‘Mobile/back-endintegration’. Most companies have only just started to leverage the potential of mobile technology to mobilise business processes.
3. Cloudisthemegatrendwiththehighestimpactontheapplicationecosystemandmostcompaniesaretransitioningtoamixofon-premiseandcloudsolutions.Already45%ofallcompanieshaveanoperationalSaaSsolutioninplaceandanother22%iscontemplatingtoimplementSaaS.Nevertheless,only14%havesomeformofcloudintegrationandthereforemostSaaSsolutionsarestandalone.We expect SaaS to become the de facto standard in multiple functional areas within 18 months. Fully integrated cloud applications is expected to become the norm. Securityandtrustextendbeyondtheboundariesoftheownorganisationandrequire a new mindset.
4. Dataisbecomingcompanies’mainstrategicasset.Increasingly,the competitive advantage will be in data-driven decision making. However, so far only 17% of the organisations actually use advanced analytics.
5. CIOsareconfrontedwithaplethoraofnewtechnologiesandaseeminglychaoticsupplyoftrends.Thesurveysupportsourviewthatindividual
4
Background: Innovation and the CIO agenda
“Operational effectiveness and innovation are the two elements that determine success. Both are necessary but they work in different ways.”
InformationtechnologyisevolvingrapidlyandCIOsareconfrontedwithlargenumbersofnewtechnologiesandtrends.AquicksurveyoftenrandomGartnerhypecyclesresultsinatotalof522trends,379ofwhicharedistinct(afterde-duplication).SincetheGartnerhypecyclemasterlistcontains103differenthypecycles,thetotalnumberoftrendsfarexceeds1,000.Clearly,suchabundanceoftrendsmakesitverydifficultforCIOstomaintainahelicopterview–distinguishingtherealpromisingtrendsandtothoroughlycomprehendthem.Nevertheless,theyprovideplentyofopportunity forinnovation.
Informationtechnologyismorethanjustnewtechnologiesandtrends.There,too,isalargecoreoftechnologiesthathavereachedmaturityafterdecadesofdevelopment.Togethertheyformthedomainofinformationtechnologythathasbecomeasine qua nonforcompanies.Indispensableforcriticalbusinessprocessesbutnolongerdistinctive.Thedevicehereisoperational effectiveness:executingsimilaractivitiesinasuperiorwaycomparedtocompetitors.Thedomain’stwocatchwordsinthisareprocessstreamliningandcomplexityreductionintechnologylandscapes.Thepursuitofoperationaleffectivenessiscontinuous,becausethebestpracticeisconstantlybeingimproved.
Incontrasttooperationaleffectiveness,innovation aims at distinctive activities. It creates a unique strategic positionfororganisationsvis-à-vistheircompetitors.AccordingtoMichaelPorter,operationaleffectivenessand innovation are the two elements that determine success.Botharenecessarybuttheyworkindifferentways.Operationaleffectivenessisthedriverforprofitabilityintheshortterm,whereasinnovationdrivessustainabilityofthecompany’sposition.
Inourview,theCIOs’havefourdifferentdomainsontheiragenda,eachwithitsownprinciplesandrulesofplay.SuccessfulCIOsfollowadifferentiatedstrategytocovereachofthefourdomains.Besidesoperationaleffectiveness,wedistinguishthreetypesofinnovation:
• Pure IT innovation appliesnewtechnologiesinawaythatdoesnotimpactthebusinessdirectly.ThistypeofinnovationincreasestheefficiencyofIT assets and fits in the adage ‘do more with less’. Mostoftheseinnovations,likeserverandstoragevirtualisation,arelocatedinthedatacentre.TheroleofCIOsistomaketherightinvestmentsintheright time.
• Pure business innovationusesexistinginformationtechnologyasenablerforaninnovativebusinessconcept.Theseinnovationsrequireinformationtechnology,butnotasadriverfortheinnovation.EventhoughCIOswillnotleadpurebusinessinnovations,theirexpertisecanbeofgreatvalueiftheyenjoytheircompanies’trust.
• Business-IT innovations realisealeapinbusinessaswellasintechnology.Itusesnewtechnologiesinsmartwaystoreachadistinctivebusinessposition.Theclassicexampleofthepreviousdecadeistheuseofwebtechnologyasanewchanneltocustomers,orasthebasisfornewproducts.
Mat
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the
tec
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log
y
Hig
h (‘c
om
mo
dit
y’)
Low
(‘hy
pe,
tre
nd’)
Indirect Improvement TransformationExtension
Impact on the business
Operationaleffectiveness
Businessinnovation
Business-IT innovation
IT innovation
5 If you just follow, you will never lead Business innovation and IT trends
Cohesion and connection between technology trends
Theplethoraofnewtechnologiesandtrendsmeansindividualcompanieswillneverbeabletoexploreeachandeveryoneofthem.Choiceshavetobemade.Buthowtodothis,ifconfrontedwithaseeminglychaoticsupplyoftrends?Deloittefeelsalltrendsarepartoflarger themes or megatrends and individual trends can onlyproperlybeunderstoodinthatcontext.OuradvicetoCIOsistodevelopastrategyperthemeinsteadof
astrategyforsomeindividualtrends.Suchapproachwould make the innovation agenda more consistent. Deloittedistinguishesfivethemes.Theyeachhaveexamplesofimpactfultrends,asshowninthefigurebelow.ThecolourscorrespondtothematurityphasesaccordingGartner:darkbluefor‘maturemainstream’,lightbluefor‘earlymainstream’,lightgreenfor‘adolescent’anddarkgreenfor‘emerging’.
Hyper connection
• Beingconnectedisthenormforallinformationprocessingequipment
• Anytime,anyplace,anydeviceisthenewparadigm
• Informationtechnologyblendswithconsumerelectronicsandothertechnologies
• Hyperconnectivityredefinesinteractionbetweenpeople,organisationsandobjects
mature mainstream3G Mobile devices Unifiedcommunication
early mainstreamEnterpriseappsandappstores
Mobile device management
Videotelepresence Mobile/back-endintegration
BringYourOwnDevice Clouddatasynchronisation
adolescentOnline channel optimisation
Consumerisation Radiofrequencyidentification
Socialmediaengagement
Mass collaboration/crowdsourcing
emerging4G,LTE Near field
communicationTheInternetofthings ‘Social’
consumer electronics
Hybrid application ecosystems
• Maturestandardsoftwaresolutionsprovidemuchmorefunctionalitythanneededandreachthelevelof‘goodisgoodenough’
• Theapplicationecosystemblendscloudsolutions,on-premisepackagedapplicationsandcustommadebusinessservices
• Securityandtrustareextendedbeyondtheenterprise
mature mainstreamServiceorientedarchitecture
Weborientedarchitecture
early mainstreamBusinessprocessmanagement
SoftwareasaService(SaaS)
Composite applications
Mobileappdevelopm.platforms
adolescentCloud/On-premiseintegration
Federated identity
Business rule management
Complexeventprocessing
emergingCloudsecuritystandards
Cloudenterprisesystems
PlatformasaService(PaaS)
Communityclouds Public web API Hybridcloudcomputing
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From data to insight
• Aftercommoditisationofhardwareandsoftware,dataisthemainstrategicassetofenterprises
• Richdataisthenorm:text,audio,videoandsensordata
• Anexponentialincreaseindatavolumesandthecomputingpowertoprocessit
• Thecompetitiveadvantagewillbeindata-baseddecisionmaking
mature mainstream
Enterprisecontentmanagement
Master data management
Business intelligence/ Dashboards
Datamining
early mainstreamAdvancedanalyticsonenterprisedata
Advanced data visualisation
In-memory analytics
Predictiveanalytics
Businessactivitymonitoring
Real time analytics
Column-storeDBMS
adolescentSocialanalytics SemanticWeb
(RDF,OWL)Textanalytics Opendata
emergingAudio / video analytics
Enterprisemetadatamanagement
Collaborativedecision making
Big data
User experience
• Newformfactorsredefinethewaypeopleinteractwithinformationsystems
• Endusersexpecttoenjoysimple,elegantandinnovativeproducts
• Man-machineinterfacesreachthematurityleveloftransparency.Technologyblendsintodailylife,usersareonlyconsciousofitwhenitisnotavailable
mature mainstream
Smartphones Rich internet applications
Media tablets
early mainstreamHTML5 Locationaware
servicesMulti touch displays
adolescentSpeech recognition
Augmented reality
Electronic paper
Gesturecontrol
emergingContext enriched services
3Dprinting/scanners
Virtual assistants
Gamification Natural language interaction
Wearable computers
Automatic content recognition
Industrialisation of the data centre
• Thedatacentrebecomesahigh-techindustrialisedenvironment
• Locationofdatacentresbecomesastrategicchoice,basedonavailabilityofpower,coolingandaccesstointernet
• Increasingly,datacentrecapacityisconcentratedinlargescalemulti-tenantdatacentrestobenefitfromeconomiesofscale
mature mainstream
Multi-coreprocessors
Blade servers Storageareanetworks
early mainstreamEconomization &GreenIT
Servervirtualisation
Storagevirtualisation
adolescentInfrastructure asaService (IaaS)
Virtualdesktop Private cloud Provisioning automation
Skinless server
In-memorystorage
Highdensity(>100kW) racks
Appliances Extremelowenergyservers
emergingCloud-based grid computing
Fabric-basedcomputing
Datacentre infra.management
‘Opensource’data centre design
7 If you just follow, you will never lead Business innovation and IT trends
About the survey
A total of 210 Dutch CIOs and IT managers participated in the online survey. The distribution of respondents over industries is shown in the figure below.
The respondents’ number of employees shows a balanced distribution over the categories.
Banking and Insurance
Business services
ConsumerbusinessandRetail
ManufacturingandIndustries
TransportandLogistics
RealestateandConstruction
UtilitiesandTelecom
Media,CultureandEntertainment
Government
Healthcare
Education
Other
0 5 10 15 20 25 30
70
60
50
40
30
20
10
0
<100 100–499 500–2,500 2,500–10,000 10,000–50,000 >50,000
Toprovidemoreinsightintheuseoftechnologytrends,DeloitteandCIOMagazineorganizedanationaltechnologytrendssurveyinOctober2012.Atotalof210DutchCIOsandITmanagersparticipatedintheonlinesurvey.
Thesurveyfocusedontechnologytrendswithhighimpactonthebusiness,i.e.thefirstfourthemesshownonpage6and7.Furthermore,thesurveyonlyincludedtrendswithamaturitystageof‘earlymainstream’,‘adolescent’or‘emerging’.Thisresultedinatotaloffifty-sixtechnologytrendsinthesurvey.
8
Business value characterised as ‘improvement’ rather than ‘transformational’Manyemergingtechnologytrendspromiseatransformationalanddisruptiveeffectonthebusiness.Weallknowsilverbulletstobeillusory,butthequestionstillis‘howtransformationalaretechnologytrendsanyway?’ThesurveyaskedCIOstoratethepotentialbusinessvalueofeachtrendonthefollowingscale:
• Low:noorlittleeffectonthebusiness.
• Improvement:businessprocessesdonotchangesignificantlybutcanbeexecutedfaster,cheaperandwithlesseffort.
• Extension:thebusinessisextendedwithnewproducts/services,newcustomergroupsornewchannelstocustomers.Thebusinessmodelitself,though,doesnotchange.
• Transformation: the business model changes.
Whenpreparingthesurvey,welimitedourchoicetothosetrendsratedbyGartneras‘transformational’or‘high’intermsof‘benefitrating’.Still,theaggregatedresultsofall57trendsinthesurveyshow57%ofthedatapointstocharacterisethebusinessvalueas‘low’or‘improvement’.Only5%ofthedatapointscharacterisedbusinessvalueas‘transformational’.Clearly,disruptiveeffectsoftechnologytrendsarequitescarce.Whileoneexplanationconsiderstechnologytrendstonotbetremendouslytransformationalafterall,anotherexplanationattributestransformationalpotentialtotrendsbutfeelsuncoveringthemisnotobvious.Wewilladdressthisquestionintheconclusionsattheendofthisreport.
General results
A long way from research to full business valueOnaverage,companiesreportedactiveinvolvementintentechnologytrends.Foreachtechnologytrendacompanyisactivelyinvolvedin,thesurveyinquiredabouttheadoptionphase.Ingeneral,53%ofalldatapointscorrespondedtoapre-operationalphase(researching,experimenting)and47%toanoperationalphase(withdifferentlevelsofvaluerealisation).Ofalldatapointsintheoperationalcategories,48%isinthefirstcategorythatcorrespondstolessthan25%ofpotentialbusinessvaluerealisation.Apparently,realisingbusinessvaluetakestimeafterthetechnologytrendhasbecomeoperational.
AnotherwaytolookattheseadoptionphasesistorelatethemtothedifferentrolesofCIOsintheinnovationprocess:1. Atthestartoftheinnovationprocess,CIOsplaythe
roleoftrendwatcherstodistinguishrealpromisingtrendsfromhypes.
2. Inanextphase,CIOsareinvolvedindefiningabusiness case and convincing management.
3. Afterfundinghasbeenarranged,thenexthurdleistoincorporatethenewtechnologyintheexistingITlandscape.Thisrepresentstheengineeringphase,whereCIOsplaytheroleofarchitects.
4. Whenthenewtechnologybecomesoperational,onlyasmallpartofpotentialbusinessvalueisreachedatthatmoment.ThechallengeforbusinessexecutivesandCIOsistojoineffortsandestablishthefullbusinessbenefits.
Low
Improvement
Extension
Transformational
Researching/investigating
Experimenting/Piloting
Operational,<25%businessvalue
Operational,<50%businessvalue
Operational,<75%businessvalue
Operational,fullbusinessvalue
49%
31%
22%
23%
11%
7%6%
38%
5% 8%
1
2 4
3
9 If you just follow, you will never lead Business innovation and IT trends
Security is the biggest challengeWeaskedCIOstodescribetheirbiggesttechnologytrend challenges/dilemmas. The question was formulatedasafree-text,openquestiontoavoidpointingtheCIOsinacertaindirection.Analysesofthe
answersrevealedeightwell-definedcategories,showninthefigurebelow.‘Securityandcompliance’standsout as the absolute winner. It was mentioned twice as muchastherunneruponthelist:integrationofnewtechnologiesintheexisting(legacy)landscape.
Thehighscoreforsecurityandcomplianceiseasilyexplainedbythemostpopulartrends:mobileandcloud.Bothhavetheinevitableconsequenceofcompanydatabecomingavailablebeyondthecompanynetwork.Thesecuritydilemmaismorecomplexthanthemerequestionastowhethertheappropriate
securitymeasuresareinplace.Thesurveyshowedtherealdilemmatobethechoicebetweenopenandfreeversusclosedandcontrolledor–inotherwords–betweensecurityandprivacyversustransparencyanduserexperience.
Securityandcompliance
Architecture(legacyversusnewtechnology)
Chosingbetweenoptions,focus,timing
Fundingandtheneedforcostreduction
Establishingfullbusinessvalue
Knowledgeandexpertiseofnewtechnology
Convincingmanagement
Businessrelations,culture,change
0 5 10 15 20 25 30 35 40 45
10
Innovation with trends is on the agenda, but not at the top of itWhenaskedtoratethestatement‘innovationwithtechnologytrendsishighonmyagenda’onascalefrom1to5,mostCIOschoose3or4.WhenwerelatethisresulttothefourdomainsoftheCIOs’agendasasillustratedinfigure1,wefindevidencethatmostCIOsarestillworkingonachievingoperationalexcellenceintheupperleftquadrant.Innovationiscertainlyontheagenda,butthetoppositiononthatagendaisforothertopics.
The CIOs play an important role in initiating innovationsAlthough the adage is that the business should beinthelead,thesurveyshowsCIOstostillplayanimportantroleininitiatingtechnologyenabledinnovations,althoughtheydonothavethemonopoly.Onascalefrom1to5,mostCIOsanswerthequestion‘ITenablesmosttechnologyenabledinnovations’witha4.Ourconclusionisthatinitiationoftechnologyenabledinnovationsrequiresdifferenttypesofexpertise,bothfromCIOsandfrombusinessexecutives.ItdependsonthenatureofthetrendwhetherthebalancetiltstoCIOsortothebusiness.
70
60
50
40
30
20
10
0
Not at all
2 3 4To a great extent
90
80
70
60
50
40
30
20
10
0
Not at all
2 3 4To a great extent
11 If you just follow, you will never lead Business innovation and IT trends
Results for ‘Hyper connection’
BackgroundAboutadecadeago,mobiledevicesandwirelessnetworksbroughtarevolutiontoinformationtechnology.Whereasapplicationshadalwaysbeenboundtothedesktop,theynowbecamemobileinan‘anytime,anyplace’typeofway.Inonlyacoupleofyears‘beingconnected’becamethenorm.Varioussensorslikecamera,GPS,andgyroscopeenabledinnovativeservicesonmobiledevices.Theinstant-on,always-connectednatureofsmartphonesandtabletsredefinedinteractionbetweenpeople,organisationsandobjects.Theavailabilityoflowcostcommunicationtechnologymadeitpossibletointegrateitinallkindsofconsumerelectronics.Asaresult,wehavewitnessedthefirstphaseofinformationtechnologyandconsumerelectronicsblendingcompletely.Wesummarisethefutureofallthisintheterm‘hyperconnection’.
Survey resultsTheidealofhyperconnectionhasnotyetbeenreached,asthesurveyreveals.Mostcompaniesarestillworking on the basics. The figure shows the trends in thistheme.Thesizeofeachcirclecorrespondstothepercentageofcompaniesisactivelyinvolvedinthistrend.ThecolourcorrespondstothematurityphaseaccordingGartner:lightbluefor‘earlymainstream’,lightgreenfor‘adolescent’anddarkgreenfor‘emerging’.Eachtrendhastwopercentages.Thefirstpercentagecorrespondstothenumberofcompaniesresearchingthistrendorexperimentingwithit.Thesecondpercentagecorrespondstothenumberofcompaniesusingthetechnologyoperationally.
Bring Your Own Device(46%,22%)
Mobile device management(25%,30%)
Mobile / back-end integration(25%,22%)
NFCRFID 4G, LTEMass
Collabo-ration
‘Social’ consumer electronics
The Internet of
Things
Video telepresence(7%,23%)
Enterprise apps & app stores(17%,11%)
Social media engagement(16%,20%)
Cloud data
synchroni-sation
(10%,10%)
Consumer-isation
(15%,5%)
Mobile app development
platforms(15%,12%)
Online channel
optimisation(3%,11%)
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The top three: getting the basics rightOur2011technologytrendssurveyshowed‘smartphonesandtablets’tobethenumberonetrendinthatyear.Onlyoneyearlater,mostcompaniesalreadyusethesedevices.Thetopthreemobiletrendsof2012showmostcompaniesarestillworkingongetting the basics right.
Thenumberonetrendofthesurveyis Bring Your Own Device(BYOD),astrategythatallowsuserstoselectandpurchasetheirownmobiledevicesfromwhichtheycanuseenterpriseapplicationsanddata.AmajordriverforBYODisConsumerisation; the trend ofinnovationsstartinginconsumertechnologyandcompaniestakingadvantageoftheseinnovationsbyembracingthemforenterpriseuse.TheincreasinguseofcloudsolutionsthatonlyrequireanInternetconnectionmakesaBYODstrategyevenmorefeasible.MostcompaniesintroduceBYODtoachievehigheremployeesatisfactionandhigherproductivity.Thatsaid,realisationofBYODisnoteasyandrequiresadoptionofothernewtechnologies,likemultiplatformmobileapplicationdevelopmentandHTML5.Securityandcomplianceisthegreatestchallenge:howdoyoucontroldatasecurityonunmanageddevices.Thesurveyshows22.5%ofallcompaniestouseBYODoperationallyand46.5%areexaminingit.
Remarkably,thesurveyshowsBYODtoscorehighestonadoptionrateamongalltrendsbutlowestontransformationalimpactonthebusinessmodel.Apparently,BYODissomethingmostcompaniesregardaspartof‘gettingthebasicsright’.
Atypicalconsequenceoftheintroductionofmobiledevices is Mobile device management: theuseofsoftwaretoolstomanagepoliciesandconfigurationmanagementformobiledevicesacrossmultipleOSplatforms.Itsgoalistomanagesecurity,privacyandcomplianceinaheterogeneousmobileenvironment.Thisisalsooneofthetrendsnecessaryfor‘gettingthebasicsright’.Thesurveyshowsthat30.5%ofthecompanieshavemobiledevicemanagementinplaceand25.5%areexperimentingwithit.Inourview,mobiledevicemanagementwillbecomeaself-evidentpartoftheIT-basicsformostcompanies.
Anotherconsequenceofmobiledevicesis Mobile/back-end integration:fullintegrationofmobileappswithback-officeapplications(ERP,CRM),includingappropriatesecuritymeasures.Accordingtothesurvey,22%ofallcompanieshavemobile/back-endintegrationinoperationaluseand25.5%areexaminingit.Sincetheadoptionrateofenterprisespecificappsissignificantlylower(11.5%),themajorityofmobileintegrationmustberealisedwithofftheshelfmobileapps.
Trends with adoption rates between 40% and 25% Social media engagement istheactiveuseofsocialmedia(i.e.beyondmonitoring)toengagewith(potential)customers.AtypicalexampleisthewebcareteamofanairlineusingFacebookandTwittertorespondtocustomerquestionsandproblems.Successfuladoptionofthistrendrequiresmuchmorethanamereactiveresponsetosocialmediaplatforms.Itrequiresaculturethatisabletoreactvigorouslyandswiftlyanditrequirestheorganisationtosimultaneouslybeactiveinsocialmarketing,salesandservices.Furthermore,sincepeopleusesocialmedia24hoursaday,socialmediateamsneedtomakethemselvesavailable24/7too.Thesurveyshowssocialmediaengagementtobeoperationalat20.5%ofthecompanies,whileanother16%ofthecompaniesareexaminingit.Therearesignificantdifferencesperindustry:Education(50%)andGovernment(50%)versusRealestate(0%).Amongalltrendsinthistheme,socialmediaengagementhasoneofthehighestscoresfortransformationalimpactonthebusinessmodel.
“Social media engagement requires a culture that is able to react vigorously and swiftly and an organisation that is simultaneously active in social marketing, sales and service.”
13 If you just follow, you will never lead Business innovation and IT trends
Video telepresence uses video communication to givetheimpressionofbeinginanotherlocation.Apopulartypeofuseisforvideoconferencinginvolveslifesizeimagesofparticipants.Thisrequiresexpensiveequipmenttobeinstalledinspecialvideoconferencingrooms,whileattheotherendofthespectruminnovativetypesofvideotelepresenceusestandardcamerasandmicrophonesinmobiledevices.Thesurveyshows23.5%ofallcompaniestohavevideotelepresenceinplaceand7.5%areexaminingit.
Enterprise specific apps and app stores,eitherforinternaluseorasachanneltocustomers,areoperationalat11.5%ofthecompaniesand17%ofthecompaniesareexperimentingwithit.Giventhepopularityofmobiledevicesandapps,theadoptionrateislow.WeexpecttoseeasimilarpatternasintheadoptionoftheInternetasanewchannel.Itstartswithasmallnumberofcompaniesexperimentingwithappsandappstores.Gradually,appswillbecomeself-evidenttothepointwhereeveryoneexpectsanorganisationtohaveanappstoreofferingawidevarietyofappsthatprovidesautomationforsimplefunctionaltasks.Therealchallengeintheuseofappsistotakeadvantageofallpossibilitiesofthemobileplatformandthesensorswithwhichtheyareequipped.
CloselyrelatedareMobile app development platforms;softwaretoolstomanagetheentirelifecycleofmobileapps(developtodeploy).Cross-platformsupportisoneofthekeyfeaturesofMADP.Theadoptionratesof12%(operational)and15%(examining)arealmostidenticaltotheonesofenterpriseappsandappstores.
TheuseofmobileappsandsocialmediaasnewchannelstocustomersimmediatelygeneratestheneedforOnline Channel Optimization (orOmniChannelOptimization).Thisisanapproachtooptimizeuserexperienceacrosscommunicationchannels(e.g.website,email,socialmediaandmobileapps).Theessenceistoactivelyusethecontextinwhicheachindividualinteractiontakesplaceandunderstandtheindividual’spreferencesandneeds.Thesurveyshows11%ofallcompaniestohaveOnlineChannelOptimizationinplace,while3%areexaminingit.OnenoticeablesurveyresultisthatCIOsrankthistrendhighestontransformationalbusinessimpact.
Trends with low adoption rates (<10%)Radio Frequency Identification (RFID)usestagsonphysicalobjectstocollectdata(identity,statusandlocation)fromtheseobjectsviawirelessnetworks.RFIDisgenerallyusedfortrackingandtracingofphysicalobjects.Thetechnologyhasbeenavailableforsomeyears,butoperationaluseislimitedto3%onaverage,with5.5%ofallcompaniesexaminingit.However,weseesignificantpeaksincertainindustries:transport&logistics(50%),manufacturing(14%),realestateandconstruction(14%)andhealthcare(10%).Inthelatter,RFIDisusedfortaggingmobileequipmentlikeinfusionpumps,whichsavesmanyhoursofsearchingfornotreturnedequipment.RFIDcanalsobeusedtoincreasepatientsafetybytaggingunitsofbloodwiththeidentificationofthepatientitismeantfor.SpecialsoftwarethatprocessesRFIDsignalscanthendetectbloodbagsintheoperatingroomthatdonotmatchthepatient(whoisalsoidentifiedwithanRFIDtag).
Near field communication (NFC)isshortrange,contactlesscommunication(10cm)betweenamobiledeviceandacompatiblereader.Itcanbeusedtoreplaceallkindsofmembercards,tickets,andkeys.Thepossibilityoftwo-waycommunicationmakesithighlysuitableforpersonalizednarrow-castingandformobilepayments.ThetechnologyisrathernewandmanymobiledevicesstilllackNFCfunctionality.
“We are heading to the point where everyone expects an organisation to have an app store offering a wide variety of apps that provides automation for simple functional tasks.”
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Only1%ofthecompaniesreportedoperationaluseofNFCand6%areexaminingit.However,thistrendalsoshowssomesignificantpeaksinindustries:media,cultureandentertainment(60%),transportandlogistics(21%),professionalservices(10%)andfinancialinstitutions(8%).OurpredictionforNFCisthatwewillseeawidespreaduseassoonasNFCchipsbecomecommon in mobile devices.
4G and LTE isabouttheuseof4Gmobilenetworksforhigh-speed,low-latencycommunicationsthatarenotpossibleon3Gnetworks.3%ofallcompaniesreportedoperationaluseandanother4.5%areexaminingit.IntheNetherlands,4Gnetworksareonlyavailableinpilots.Aswithearliertechnologiesthatincreasedbandwidth,ourbehaviourwillswiftlyadaptandthedemandforbandwidthwillsoonmatchthesupplyagain.
“The impact of ‘Social consumer electronics’ on everyday life will be huge.”
Finally,twotrendswithmaturityphase‘emerging’are Social consumer electronics(alsoknownasConnectedProducts)andThe Internet of Things. The formerisaboutconsumerelectronics(varyingfromcarstohouseholdequipment)interactingwiththeuserthroughwebsitesandsocialsoftware.Currently,1%ofallcompaniesreportoperationaluseofthistrendand3.5%areexaminingit.Althoughtheadoptionrateofthistrendisstilllow,weexpectthistrendtohaveabigimpactondailylifeinthefuture.
The Internet of thingsisasimilarapproach,inwhichlargeamountsofphysicalobjectsareequippedwithlow-costcommunicationtechnologyandauniqueIP address to communicate and interact with their environment.Thecombinationofintelligentsensorswithwirelesscommunicationcreatesnetworksof‘smartobjects’.ThenewIPv6standardallowsanalmostinfinitenumberofIPaddressestobedefined.Inthefuture,thevastmajorityofallIPaddressesintheworldwillbelongtoobjectsinsteadofpersons.Thesurveyshows4.5%ofallcompaniestoalreadyhaveoperationalexperiencewiththistrend,while2%areexaminingit.Twoindustrieswithaboveaverageadoptionareutilitiesandtelecom(18%)andgovernment(14%).
15 If you just follow, you will never lead Business innovation and IT trends
Results for ‘Hybrid application ecosystems’
BackgroundIntheCIOs’idealworld,theapplicationlandscapefitstheneedsofbusinessprocessesentirelyandishighlyflexibleandagileatthesametime.RealityshowsmostCIOstostrugglewithlegacysystemsthatarefarfrom‘agile’.Inthepastdecadesnewtechnologies,suchasERPandCRMsystemsintheninetiesandwebtechnologyandserviceorientedarchitectureinthefirstdecadeofthenewcentury,promisedtobringtheidealcloser.Althoughconsiderablestepshavebeenmade,CIOsarestillpursuingthisideal.
Cloud trendsThe clear winner in this cluster is Software as a Service (SaaS):applicationsoftwareprovidedasaweb-application,usedinamulti-tenantmodelandpurchasedonapay-for-usebasis.Thesurveyshows45.5%ofthecompaniestohavesomeformofSaaSoperationalandanother22%areexaminingit.Bynow,SaaShasenteredmainstreamtechnology.Ourexpectationforthenext18monthsisthatSaaSwillbecomethedefactostandardinfunctionalareaslikeOfficeautomation,CRMandHR,andwillbeadoptedbyvirtuallyallorganisations.Increasingly,companieswillhavethechoicebetweenacloudsolutionthatcanbereadyindaysandaninternalsoftwareimplementationprojectthattakesmonths.ManycompaniesthathavealwaystakenthoseimplementationprojectsforgrantedwillnowchooseforSaaSsolutionsinstead.Thenumberofemployeeswhoonlyusecloudsolutions(officeautomationandsomeenterpriseapplications)willincreasesignificantly.
Withoutadoubt,cloudtechnologyisthetrendwiththehighestimpactontheapplicationecosystem.Mostcompaniesaretransitioningfromafull,on-premiseapplicationlandscapetoamixofon-premiseandcloudsolutions. Integration between cloud solutions and on-premiseapplications,butalsointegrationbetweencloudsolutionsmutually,bringsnewchallengesforCIOs.Securityandtrustextendbeyondtheboundariesoftheownorganisationandrequireanewwayofthinking.
Survey results
Software as a Service (SaaS)
(22%, 45%)
Cloud security standards
(15%, 9%)
Cloud/On-premise integration(24%, 14%)
Platform as a Service
(PaaS)
(14%, 13%)
Federated identity (7%, 8%)
Cloud enterprise systems(3%, 7%)
Community clouds
(7%, 1%)
Hybrid cloud
computing (14%, 4%)
Business process management
(18%, 26%)
Business rule management
(6%, 6%)
Complex event
processing
Public web API
Composite applic- ations
“Our expectation for the next 18 months is that SaaS will become the de facto standard in functional areas as Office automation, CRM and HR, and will be adopted by virtually all organisations.”
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Although45.5%ofthecompaniesuseSaaSoperationally,only14%ofthecompanieshaveCloud/on-premise integration inplace,forexamplefor(master)datasynchronisationandworkflowsspanningbothSaaSandon-premiseapplications.This14%impliesthataboutthreequartersofalloperationalSaaSsolutionsisstandalone.Apparently,SaaSadoptiontypicallystartswithanapplicationforwhichintegrationisnotnecessary.However,ourexpectationisthatintegrationofcloudapplicationswillbecomethenorminsteadoftheexception.Thepercentageofcompaniesexaminingorexperimentingwithcloud/on-premiseintegration(24%)supportsthis.
Anotherformofintegrationiscloud-cloudintegration.WedefineHybrid cloud astheuseofmultiplecloudsolutionsinanintegratedandcoordinatedfashion,onaspectslikedata,process,complianceandsecurity.Theoperationaluseofahybridcloudisinplaceat4.5%ofthecompaniesand14.5%areexaminingit.
Ourconclusionisthatmostcompaniesstartwithastand-alonecloudsolution.Thenextstepisacloudsolutionthatisintegratedwiththeon-premiselandscape.Finally,asthenumberofcloudsolutionsincreases,cloud-cloudintegrationcomplementsthenewhybridapplicationecosystem.Whenwecomparethenumberofcompaniesexaminingcloudintegrationwiththenumberthatalreadyhavecloudintegrationinoperationaluse,weseethefirstpercentageisabout twice as big as the second. This shows cloud integrationtobeanimportantthemeontheCIOs’agendasforthenextyear.Notsurprisingly,CIOsmentionsecurityasthemostimportantchallengerelated to innovation with new technologies.
AdifferentkindofcloudtechnologyisPlatform as a Service(PaaS).Thisisasetofapplicationinfrastructureandmiddlewareinacloudenvironmentthatenablesuserstodevelopapplicationsandservices.AnadvantageofPaaSisthatnewdevelopmentenvironmentscanbemadeavailablewithinthehour,whichmightotherwisetakeweeksormonthsifthisisarrangedon-premise.VariousPaaSprovidersareavailableonthemarketandtheyeachhavetheirowntechnologystack,whichcreatesavendorlock-in.Already13%ofallcompaniesreportusingPaaSoperationallyand14%areexaminingit.
Cloud securityTheuseofcloudsolutionscreatescomeswithnewsecurityquestions.ThetrendCloud security standardsaimsatastandardizedsetofsecurityrequirementsandaformalevaluationbyathirdpartytoassessthesecurityandcontinuityriskofcloud services. This eliminates bilateral discussion and agreementsbetweencloudprovideranduser.SuchstandardsarecomplementarytoISAE3402reportsandaddressaspectsspecifictocloudsolutions.Accordingtothesurvey9%ofallcompaniesusesuchstandardsinsomeformalreadyandanother15.5%areexaminingit.Astheshareofcloudsolutionsintheapplicationlandscapeincreases,cloudsecuritywillbecomeanevenbiggerconcernforCIOsthantoday(wheresecurityandcomplianceisalreadythebiggestchallenge).
SeamlessintegrationofSaaSsolutionsintheon-premiseapplicationlandscapeencompassestheaspectofauthentication.Federated identity is an approachtouseidentitiesacrossautonomoussecuritydomains.Usuallybyonesecuritydomain“trusting”identities belonging to another domain. This allows userstoaccesssystemsinanothersecuritydomainseamlessly,withoutredundantuseradministration.Thesurveyshows8.5%ofthecompaniestousethistrendoperationallyand7%areexaminingit.
“Fully integrated cloud applications will become the norm instead of the exception.”
17 If you just follow, you will never lead Business innovation and IT trends
Specific cloud solutionsA Community cloudisacloudcomputingenvironmentforaspecificgroupoforganisations(e.g.governmentaloreducational).Thisbringsthebenefitsofcloudcomputingtothegroupandlimitscomplexity,becausegroupmembershavesimilarrequirementsforissuessuchassecurity,complianceandavailability.Oftheentirepopulation,1.5%ofcompaniesuseacommunitycloudand7%areresearchingit.However,someindustriesshowanadoptionrate(examiningaswellasoperational)thatsignificantlyexceedsthe8.5%average:education(64%),professionalservices(23%)andhealthcare(16%).
Themostpopularcloudsolutionshavewelldelimitedfunctionalityandlimitedintegrationwithotherapplications.Cloud enterprise systems is the trend to useSaaSsolutionsforenterprisesystemssuchasERP.Thisiscurrentlyonlyfeasibleforsmallercompaniesforwhichanout-of-the-boxsolutionsuitstheneeds.Thesurveyshows7%ofallcompaniestouseacloudenterprisesystemand3.5%areexaminingit.Duetothemulti-tenantcharacterofSaaSsolutionsandthelimitedoptionsforcustomisationfollowfromthis,weexpectadoptionofcloudenterprisesystemstoincreaseslowly.
Architectural trends for flexibility and agilityThesearchforflexibilityandagilityhasgivenrisetonewarchitecturalconceptsandtechnologies.Cloudcomputingisoneofthem,butnottheonlyone.In2005,ServiceOrientedArchitecture(SOA)emergedasatrend.Sevenyearslater,SOAhasbeenacceptedasmainstreamalthoughcompaniesarestillstrugglingtorealisethepotentialbenefits.Today,companiescombineSOAwithotherarchitecturaltrendstofullyunleashthepotential.
OneoftheoldertrendsisBusiness Process Management (BPM):softwaretoolsfordesigning,orchestratingandmonitoringbusinessprocessesamongapplicationsandusers.TheincreasinguseofSaaSsolutionsaddsawholenewdimensiontoBPM.Thesurveyshows26%ofallcompaniestouseBPMoperationallyand18%ofallcompaniesarestillexaminingit.Inourview,theuseofBPMsuitesisextendedtoawiderrangeofintegrationissues.Anexamplewementionedearlieriscloud/on-premiseintegration.AnotherexampleregardsthetrendwherecompaniesoptforanERPbackboneimplementedasstandardaspossible,complementedbycustommadeservicesforthatishighlycompanyspecificorchangesfrequently.
Thedisciplineofsoftwaredevelopmenthasahistoryofisolatingspecifictypesoflogicintostandardisedcomponents.Business rule management isoneofthelatestexamples.Thisapproachdefines,maintainsandexecutesbusinessrulesinaseparatesystem(BRMS),whichiscalledbybusinessapplications.Thisapproachenablestheconsistentuseofbusinessrulesoverallapplicationsandincreasesthecompany’sagilitytomodifybusinessrules.BRMisactivelybeingusedby6.5%ofthecompaniesandbeingexaminedbyanother6.5%.Comparedwiththetotalof13%,thesurveyshowssignificantpeaksforgovernment(32%),utilitiesandtelecommunications(30%)andfinancialinstitutions(23%).ThissupportsthepremiseofBRMprovidingmostvalueinbusinessenvironmentswithcomplexandfrequentlychangingregulations.
AnotherexampleofanapproachtoisolatelogicfromcustommadesystemsintostandardcomponentsisComplex event processing (CEP).Theessenceofthisapproachistocombinedataabouteventsintohigherlevel‘complexevents’thattriggerreal-timeactionsanddecisions.Thetrendispartofthebroadertrendofevent-basedarchitecture.Thesurveyshows2%ofallcompaniestouseCEPinanoperationalform,while3.5%areexaminingit.
Finally,Composite applicationsisanapproachtodevelopanapplicationasanorchestrationofalreadyexistingsolutions(webservices,programs,data),creatingfunctionalitywhichtheleveragedsolutionsfailtodeliverontheirown.Suchapplicationscanleverage a Public Web API:web-orientedAPI’stoexposeapplicationfunctionalityordatatotheworld.CompaniesusePublicWebAPI’stobeeasilyincorporatedinthirdpartywebsitesormobileapps.CompositeapplicationsandPublicWebAPI’sareanichetechnology:operationaluseislimitedto1%and2.5%respectively,andaboutthesamenumberofcompaniesareexaminingthem.
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Results for ‘From data to insight’
BackgroundAftercommoditisationofhardwareandsoftware,dataisbecomingcompanies’mainstrategicasset.Thecompetitiveadvantagewillbeindata-baseddecisionmaking.Theprogressingdigitalizationofbusinessprocesseshascausedanexponentialincreaseinthedatavolumes.ERPandCRMsystemscapturehundredsofthousandsrecordswithdetailedtransactiondataofcorebusinessprocesses.Webshopsandonlineportalsgenerateawealthofinformationaboutcustomerbehaviourandpreferences.Manycompaniesexperienceaninformationoverloador,inotherwords,afilterfailure.Apartfromtheincreaseindatavolume,
Survey results
wealsoseenewtypesofdataemergeinthebusinessdomain.Allkindsofsensorsinphysicaldeviceslikeenergymetersgenerateacontinuousstreamofdataavailableforanalysis.Inhospitals,newgenerationsofscanningequipmentgeneratehighdensitydigitalimages.Researchisbeingdoneoncomputerbasedanalysisofsuchmedicalimages.Inthepublicsecuritysector,largenumbersofcamerascreateaudioandvideostreamsthatmustbeanalysedforexceptions.Finally,inlinewiththeincreaseindatavolumeweseeanexponentialincreaseincomputingpowerandadecreaseincostsofin-memorystorage.Consideringthecombinationofallthesefactors,wecansaytheageofdataanalyticshasarrived.
From looking behind to looking aheadTwomajordevelopmentscharacterisethedataanalyticsdomain.Thefirstisashiftfromcommonreportingtotheuseofadvancedstatisticaltechniquesto translate data into insight. The second trend in analyticsisashiftfromlookingbacktolookingahead.Typicalanalyticsonenterprisedataislikelookingintherear-viewmirror:itclarifieswhatliesbehind.Althoughthisprovidesusefulinsights,nopossibilitiesareopentochangethings.Applyingdataanalyticsanddecisionmakingtechniquesonreal-timedataisalreadyabigchangethatcreatesmanyopportunities.Anevenbiggerstepisusingpredictiveanalyticstoforecasttheeffectofbusinessdecisions.
Advanced analytics on
enterprise data(24%,17%)
Real time analytics(12%,10%)
Big data (21%,9%)
Enterprise metadata
management(15%,14%)
Predictiveanalytics(10%,8%)
Business activity
monitoring(16%,20%)
Advanced data
visualisation (8%,7%)
Semantic Web
(3%,2%)
In-memory analytics (6%,2%)
Social analytics (12%,6%)
Text analytics (3%,3%)
Collaborative decision making (6%,10%)
Audio/video
analytics (3%,3%)
Column- store DBMS
Open data (12%,7%)
The biggest trend in this cluster is Advanced analytics on enterprise data:applyingstatisticaltechniquesoncomplexdatasetstofindpatternsandcorrelationsbetweenvariables.Typicalexamplesareoutlierdetection,clustering,patternrecognitionandlinkanalysis.Thesurveyshows17.5%ofallcompaniestousethesetechniques,whichismuchlowercomparedtothepercentageofcompanieswithbusinessintelligenceandreportinginplace.However,since24%ofallcompaniesareexaminingadvancedanalytics,thistechnique’sadoptionratewillsoonrise.
AdvancedanalyticsissupplementedwithAdvanced data visualisation: visualisation techniques extendingbeyondtraditionalgraphsandchartsandwithinteractivefeatures.Itcombinesinformationtechnology,psychology,graphicdesignandart.Theapproachbuildsonhumanqualitieslikepatternrecognitionandinterpretationofcolour,brightness,sizeandmotion.With7.5%operationaluseand8%ofallcompaniesexaminingit,thesenewtechniquesarealreadygettingawideraudience.
19 If you just follow, you will never lead Business innovation and IT trends
Whenweshiftourfocustoreal-timedata,Business activity monitoring is the largest trend in that area. Itinvolvesmonitoringreal-timebusinessprocessdata.Thegoalistoprovidereal-timeinsightintocriticalperformanceindicatorstomakebetterinformeddecisionsandaddressissuesswiftly.Theconceptisusedby20.5%ofallcompaniesoperationally,whileanother16%areexperimentingwithit.
OnestepbeyondmonitoringisReal time decisioning: applyingdecisionmakingcapabilitiestoreal-timedata.Thistechniqueencompassestheselectionofanoptimal,real-timefollow-upactionoutofseveralalternatives.Thesurveyshows10.5%ofallcompaniestohavereal-timedecisioningcapabilitiesinoperationaluseand12.5%areexaminingit.
Theincreasinginsightgeneratedbyadvancedanalyticsandtheshifttowardsreal-timeavailabilityoftheseinsightshaslargeconsequencesfororganisations.Manycompanieshavecometorealisethatgeneratinginsightandpresentingthisondashboardsisonething,butusingthiscleverlyissomethingquitedifferent.Ingeneral,successfuldatadrivencompaniesrequiresresponsivenessandagility.Acompanycanmeasuretheeffectofawebcampaigninreal-time,butifthemarketingdepartmentisexecutingannualplansaflexibleresponseisdifficult.
Theuseofstatisticalmodelsandpredictiveanalysisisnottheonlyapproachfordata-baseddecisionmaking.Anotherapproachistheuseofsoftwaretoolsthathelpknowledgeworkerstomakebettercollaborativedecisions.Thesetoolssupportbrainstormingandoptionevaluation(withdecisionsupporttools)andagreeingonacourseofaction.WecallthistrendCollaborative decision making.Itisusedby10%ofallcompaniesinoperationalformand6.5%areexaminingit.
Analytics on other types of dataAnalyticsisnotlimitedtostructureddatafromERPorCRMsystemsbutcanbeappliedtovarioustypesofdata.Social analyticsisanumbrellatermfortheanalysesofhumaninteractionsthroughsocialsoftwaresuchasemailandsocialmedia.Atypicalexampleis Social network analytics: this reveals networks betweenpeoplebyanalysingtracesofperson-to-personcommunication(e.g.,email,chatandvoice).Clearly,thisformofanalyticsisoftensubjecttoprivacyregulations.AnotherexampleisSentiment analysis: theanalysisoftextpostedonforums,blogsandsocialnetworkstorevealsentimentsaboutcompaniesorproducts.Thesurveyshows6%ofallcompaniestousesocialanalyticsinoperationalprocessesand12.5%areexperimentingwithit.
Anoftenusedtechniqueinsocialanalytics,butalsoforotherpurposes,isText analytics. It derives valuable informationfromtextsourcesbyusingtechniquesthat combine linguistic knowledge with statistical techniques(wordfrequencies,adjacencyofwords).Thesetechniquesareusedforfindingkeycontent,revealsentimentsandidentifywhataretheparticularcasesofaspecificissue.Accordingtothesurveyresults,3.5%ofallcompaniesusetextanalyticsinanoperationalformandanother3%areresearchingit.
Audio/video analyticsextractinsightsfromaudioofvideostreams,whichareusedtoclassifycasesortriggeralerts.Thesurveyshows3.5%ofallcompaniestohaveitinplaceand3%areexaminingit.
“The age of data analytics has arrived. The competitive advantage will be in data-based decision making.”
TheotherendoftheanalyticsspectrumisPredictive analytics:applyingstatisticalmodelstohistoricaldatatotryandpredictthefutureoutcomeofvariouspotentialactions.Theresultsareusedindecisionmakingprocessestoselecttheoptimalcourseofaction.Theessenceofthetechniqueiscapturingthestatisticalrelationshipsbetweenavarietyofexplanatoryvariablesandthepredictedvariablesinamodel.Thebasicassumptionisthatthisestimatedmodelisvalidforthefuture.Itisthereforeverydifficulttopredicttheoutcomeofdisruptivemeasures.Thesurveyshows8.5%ofallcompaniestousepredictiveanalyticsinanoperationalformand10.5%areexaminingit.
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Awholenewcategoryofdatais Big data.Thesurveydefinesthisasdatatoolargetobeprocessedbytraditionaldatabasemanagementandanalysistools.Instead,bigdatarequiresadistributedapproachwithparallelsoftwarerunningonlargenumbersofservers.Apartfromvolume,othercharacteristicsofbigdataare:velocity(rapidlychanging)andvariety(heterogeneouscontent).Surprisingly,thesurveyshows30%ofallcompaniestobeinvolvedinbigdata,eitherinanoperationalform(9%)ortheyareexaminingit(21%).Thisraisesthequestionastohowcompaniesinterprettheterm‘bigdata’.
Alternative approaches to data storageTraditionally,enterprisedataisstoredinrelationaldatabasesondisk.Thisischallengedbysometrendslike In-memory analytics:analyticsondataresidinginrandomaccessmemory(RAM)entirely.Itischaracterisedbyveryfastresponsetimes,allowingamuchmoreinteractiveuse.Furthermore,in-memoryanalyticsreducesoreliminatestheneedforbuildingpre-calculatedcubes.Currently,2.5%ofallcompaniesuseitforoperationalpurposesand6.5%areexperimentingwithit.
A trend also related to data storage is Column-store DBMS.Acolumn-storeDBMSindexeseachcolumnofatableandstorestheseindexesasopposedtostoringrow-orienteddata.Tablesarestoredasseparatecolumnsanddataiscompressedoncolumn-by-columnbasis.Thisisreallyanichetechnologywith1%operationaluseand1.5%research.
AverydifferentapproachcomesfromtheSemantic webinitiative,anumbrellatermfortechnologiesaimedatamachine-readableWeb.OneofthecornerstonesistheResourceDescriptionFramework(RDF):thisdefinesdataasagraphofmachine-readabletriples(object,predicate,subject).Thedatabaseinwhichtriplesarestorediscalledatriplestore,whichisoneexampleofwhatiscalledNoSQLdatabases.TriplesaredefinedbytheWebOntologyLanguage(OWL)inontologiesandknowledgemodels.Thesetrendsareusedby2.5%ofallcompaniesand3%areexperimentingwiththem.
Miscellaneous trendsOpen dataismachine-readabledigitaldata,freelyavailableforeveryonetouseandrepublish.Theobjectivesofthe‘opendata’movementaresimilartomovementslike‘opensource’.Majoropendatainitiativesaretakenbygovernmentstoboosteconomicgrowth,forexampleintheUK(data.gov.uk)andtheNetherlands(data.overheid.nl).Theideaisforcompaniestoimprovethequalityoftheirexistingservicesandlookforopportunitiestodevelopnewservices.Thetrendisnot,however,limitedto‘open’governmentdata.Businesses,too,willopenuptheirdatatoinnovatethewaytheycompete.Byreleasingpartsoftheirdata,companiesexpecttoignitethecreativityofthecrowd,toultimatelygeneratenewrevenues.Thisrepresentsaparadigmshiftcomparedtothecurrentpracticeofkeepingalldataproprietary.Thesurveyshows7%ofallcompaniestouseorsupplysomeformofopendataand12.5%areexaminingit.
Enterprise metadata managementisthedisciplineofdefiningmetadataaboutinformationassetsinthecompany.Typicalmetadataincludepurpose,creator,applicablestandards,dateandtimeofcreation,source,andreliability.Metadatamanagementisasupportingtechnologyformanyotherinitiativeslikemasterdata management and service oriented architecture. Currently,14%ofallcompanieshavesomeformofoperationalmetadatamanagementinplaceand15%areexaminingit.
Results for ‘User experience’
BackgroundSincetheriseofgraphicaluserinterfacesintheearlyeighties,userinteractionwasbasedonakeyboardandmousecombinationforalongtime.Emergingnewformfactors,likesmartphonesandtablets,haveredefinedthewaypeopleinteractwithinformationsystemsoverthepastdecade.Thesenewinnovative
userinterfacessetanewstandardandbecauseofthat,endusersexpecttoenjoysimple,elegantandinnovativeproducts.Human-computerinterfacingisreachingthematurityleveloftransparency:technologyblendsintodailylifeandusersareonlyawareofitwhen it is not available.
HTML5HTML5isthenewstandardfordeviceindependentRichInternetApplications(RIA)thatprovidesahighlyintuitiveandinteractiveuserexperience.Thisisachievedbyacombinationofdrag-and-drop,interactivegraphics,complexanimationsandstreamingaudioandvideo.Webpagesrespondveryfasttouseractionssincemuchofthelogicisexecutedclientsideinsteadofserverside.ThetwowayconnectionbetweenRIAandserverallowspushconceptsinwhichtheserverinitiatesanactiononthewebpage.Finally,HTML5applicationsrunineverybrowseronanyoperatingsystem.AlthoughthestandardisationprocessbyW3Cisnotyetentirelycomplete,browsersalreadysupportHTML5.ThesurveyshowsHTML5tobeinoperationaluseat7.5%ofthecompaniesandexaminedby10.5%.WeexpectHTML5tobecometheindustrystandardforRIAuserinterfaces.
Survey results
Location aware services
(5%,5%)
Augmentedreality(6%,1%)
HTML5(10%,7%)
Multitouchdisplays(7%,3%)
Electronicpaper(4%,6%)
Gamification(5%,1%)
Context enriched services (2%,1%)
3D printers and scanners (3%,0.5%)
Wearable computers (2%,1.5%)
Automatic content recognition (2.5%,2%)
Natural language interaction (1.5%,1.5%)
Speech recognition (1.5%,4.5%)
Virtual assistants (2.5%,2.5%)
Gesture control(0.5%,0.5%)
Rich servicesTheavailabilityofallkindsofsensorsinmobiledevices(e.g.cameraandGPS)facilitatesnewtypesofservicesthatactivelyusethesesensors.
“Innovation will come from solutions that combine the power of new form factors and rich context information.”
Location aware servicesaremobileapplicationsthatuseinformationaboutthegeographicallocationofadevicetoprovidelocation-awarefunctionality.Thesurveyshows5.5%ofallcompaniestousethistechniqueinanoperationalformand5.5%areexaminingit.Thetrendscoreshighonthetransformationalimpactonthebusinessandcompanieswilluseitfornewtypesofservices.However,thesenewtypesofservicesrequiremorethanjusttheuseofthetechniquealone.Genuineinnovationwillspringfromthecompanies’imaginativepower.
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Context-enriched servicesareapplicationsand servicesthatcombineinformationabouttheuserwithallkindsofsituationalinformationtooffercontext-awareexperiences.Itincludesproactivelypushingcontenttotheusertosuggestproductsoractionsthatmaybeattractivetotheuserinaparticularsituation.AccordingtoGartner,thistechnologyislessmaturethanlocation-awareservices.Thesurveysupportthis:adoptionratesare1%foroperationaluseand2%fortheresearchphase.
Automatic Content Recognitionistheabilityofamobileapplicationtoidentifycontentwithinitsproximitybasedonasample(audio/videofragment,imageofaphysicalobject)andthroughmatchingthatsamplewithanonlinerepositoryofallexistingcontent.Atypicalexampleisanappfromawebshopthatusesthecameratoidentifytheproductithasinsight,afterwhich it can be ordered with one touch on the screen. Adoptionisstilllimited,with2%ofoperationaluseand2.5%ofallcompaniesexamining.
New conceptsGamificationistheuseofgamedesigntechniquesinnon-gamebusinesscontexts,forexamplebyusingpoints,achievementlevelsandleaderboards.Theconceptisusedtostimulatepeopletohigherlevelsofengagementortomotivatepeopletoperformtaskstheywouldotherwiseconsiderboring.Currently,1.5%ofallcompaniesapplytheconceptoperationallyand5%areexaminingit.
Human computer interactionSpeech recognitionistheautomaticinterpretationofhumanspeech,e.g.,forroutingofcallcentrecalls,userinterfacecontrolortextentry.Itisusedby4.5%ofallcompaniesforoperationaluseand1.5%ofallcompaniesareexaminingit.
Gesture controlistheinteractionwithacomputersystemthroughrecognizedmovementsofthehumanbodyandwithoutphysicalcontact.Thetechniquehasbecomepopularinconsumergames,andisslowlybeingdisseminatedinbusinessenvironments.Adoptionisstilllimitedto0.5%operationaluseand0.5%research.
Augmented realityisreal-timevisualisationofrealworldobjectsaugmentedwithcomputergeneratedvirtualenhancements(text,graphics,audio).Theobjectiveistoenhancetheinteractionoftheuserwithhisenvironment.ThetechnologycanbeusedonsmartphoneswithcameraandGPS,butwealsoseededicateddevicesliketheGoogleAugmentedRealityglassesemerge.Thesurveyshows1%ofallcompaniestouseaugmentedrealityforoperationalpurposesand6%areexperimentingwithit.
Virtual assistantsarecomputergeneratedvirtualcharacters that simulate a conversation with the user (eitherwithtextorvoice).Ithasavisualappearancethatadaptstothecontextoftheconversation.Thesurveyshows2.5%ofallcompaniestoalreadyuseitand2.5%areexaminingit.
Natural language interactionisawayofinteractingwithanapplicationbyaskingoransweringquestionsinplainlanguage,afterwhichtheapplicationrespondsinameaningfulway.Thesurveyshows1.5%ofallcompaniestouseitinanoperationalformand1.5%ofallcompaniesareexaminingit.
New devicesMulti touch displaysistheuseofmultitouchfunctionalityfornewandinnovativeuserinterfacesandnewproducts.Thesurveyshows3%ofallcompaniestouseitoperationallyand7%areexperimentingwithit.
Electronic paperisadisplaytechnologythatdoesnotrequire a backlight and can be viewed under normal illuminationconditions.Drivenby‘theInternetofthings’,largenumbersoflow-cost,low-powerdisplayswillbecomenecessary.Thetechniqueisusedby6.5%ofallcompaniesinanoperationalformand4.5%areresearching it.
3D printersaredevicestocreatea3Dphysicalobjectfromadigitalmodel(printing)orcreateadigitalmodelfromanexisting3Dobject(scanners).Thesedevicesareinoperationaluseby0.5%ofallcompaniesand3%areexaminingthem.
Wearable computers arecomputerdevicesandinterfacesdesignedtobewornonthebody,e.g.wrist-mountedscreensofhead-mounteddisplays.Thesurveyshows1.5%ofallcompaniestousewearablecomputersand2%areexaminingit.
23 If you just follow, you will never lead Business innovation and IT trends
ConclusionsThesurveyunderpinsthethreemainareasofbusiness-ITinnovation:Mobile,CloudandData.Adoptionratesofindividualtrendsshowcompaniestostillworkonthebasics.Itwilltakeyearsforcompaniestofullyexploitthepotentialofallcurrenttrendsandnew technologies.
OneremarkableresultofthesurveyishowtheCIOsassessthebusinessimpactoftechnology.Theyregardthesetrendsasanimprovement(57%)ratherthanbeingtransformational(5%).Theconclusionisthat,evenwiththelatesttechnology,radicalinnovationisdifficulttorealise.Wehavethreeexplanationsforthis.
1. First,disruptivechangerequiresmuchmorethanjusttheuseofonenewtechnology.Trendswillgenerallyhavetobeusedincombinationwithothertrendstolaythefoundationfortransformation,butevensuchafoundationisinsufficient.Realbusiness-ITtransformationalsorequiresthebusinessmodeltochange:skillsetsandprocesses,productsandservices,customersandcustomerrelationship.
Our interpretation of the results
2. Thesecondexplanationhastodowithfoursubsequentstagesintheadoptionofnewtechnologies:substitution,innovation,transformationandtransparency.Experienceshowsit takes time to go through these stages. The first stageisalwayssubstitution.Thenewtechnologyisappliedtoexistingproductsandprocesses,whereonlyalimitednumberofvariablesarechanged.Thegoal:usingthenewtechnologytooptimiseanalreadyexistingsituation.Thenextstageisinnovation:usingthenewtechnologytocreatechangeatthemicroandmesolevel,butstillwellwithintheexistingboundariesofthemacrolevel.Theboundariesofexistingparadigmsaresearchedandstretched,butnorealparadigmshiftoccurs.Inthenextstageweseetransformation: entire institutions are changed and the innovation now reaches the macro level. Paradigms that have longexistedarenowreplacedbyothers.Thenewsituationisentirelybasedonthepotentialofthenew technologies and entire industries or chains arechangingasaresult.Thelaststageofanewtechnologyistransparency:peopleexperiencethetechnologyasself-evident.Theydonotstrugglewiththetechnology,butsimplyuseit,almostwithoutthinkingaboutit.Thetechnologyhasdisappearedfromtheuser’sconsciousmind.Usersonlybecomeconsciousofitwhenitfails,likewithelectricityoratelephone.Whenweapplythistheorytothesurveyresults,weconcludethatpartofthenon-disruptivenatureoftrendscanbeexplainedbystillbeinginthesubstitutionorearlyinnovation stage.
3. Finally,weexplainthelimitedtransformationaleffectasaresultofnotspendingthetimeandresourcesrequiredtofullyexploitthepotentialofnewtechnologies.WhilethismaybetheresultofadeliberatechoicetofocusonOperationaleffectiveness,inmostcasesitwillbetheresultofanIToperationrequiringtoomuchmanagementattentionandresources.ItistheresponsibilityoftheCIOtostreamlinetheoperationtomaketimeandresourcesavailableforbusiness-ITinnovationbasedonthestrategicuseoftechnologytrends.
“The conclusion is that, even with the latest technology, radical innovation is difficult to realise. Transformational potential, however, still exists. The CIO will face the challenge of identifying this and realise its full business value.”
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Expectations for next yearOurexpectationfornextyearisthatMobile,Cloud andDataremainthethreemajorthemes.RegardingMobile,companies’attentionwillgraduallyshiftfrom‘gettingthebasicsright’toinnovativesolutionsonmobileplatforms.SecurityandMobile/back-endintegrationbecomeevenmoreimportantthantoday.InCloudcomputing,thematurityofSaaSsolutionswillfurtherincrease.Ourexpectationforthenext18monthsisforSaaStobecomethedefactostandardinfunctionalareaslikeOfficeautomation,CRMandHR,andwillbeadoptedbyvirtuallyallorganisations.AlthoughSaaSadoptionstartedwithstand-alonesolutions,ourexpectationisthatintegratedcloudapplicationswillbecomethenorm.Finally,theimportanceofDataasastrategicassetwillincrease,ascompanieshaveonlytakenthefirststepsinuncoveringthefullpotentialoftheirdata.Themainchallengeswillbe in asking the right questions and in the intelligent useofanalyticsresults.
Follow-upTheDeloitteandCIOMagazineTechnologyTrendssurveywillbeexecutedeachyear.In2013,weplantopayadditionalattentiontothefactorscontributingtoasuccessfulcyclefrominitialresearchtofullbusinessvaluerealisation.Furthermore,wewillincreasinglyfocusonthebusinessimpactofmajortechnologytrends:whatkindofimprovementandwhichextensionstothebusinessareestablished?OurambitionistohelpCIOswithanoverviewoftechnologytrendsandideasforbusiness-ITinnovation.
25 If you just follow, you will never lead Business innovation and IT trends
Contacts
Pieter HofmanPartnerT:+31882885150E:[email protected]
Andries van DijkSeniorManagerT:+31882880049E:[email protected]
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