tech trends 2015: the fusion of business and it

www.deloitte.com/us/techtrends2015

Bridging business and technology, new CxO roles, and the

possibilities of tomorrow with the realities of today.

3 Copyright © 2015 Deloitte Development LLC. All rights reserved.Deloitte University Press | Tech Trends 2015 | @DeloitteOnTech @DU_Press #techtrends

LESSONS FROMTHE FRONT LINES

Intel

• The role of the CIO is evolving as technology transforms existing business models and gives rise to new ones

• Who better than the CIO to take advantage of shifting technologies and harness them for the business?

• New CxO roles—Chief Digital Officer, Chief Innovation Officer, Chief Data Officer—are cropping up with technology at their core

• CIOs acting as chief integration officers can serve as the glue linking various initiatives together

AIG

Brown-Forman

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Evaluate current positioning: understanding the balance sheet of IT is a requirement

Mind the store: invest in underlying capabilities to improve departmental efficacy

Engage leadership: Solicit feedback and understand priorities

Knock down walls: tap into ideas through new employee and partnership channels

Show, don’t tell: prototype and demo to make art of the possible become feasible

Industrialize innovation: standardize approach for new technology

As security breaches become more frequent, senior stakeholders expect that their organizations will be kept safe and secure. CIOs can create strong linkages between IT and other functions by emphasizing cyber risk and privacy, embedding cyber defense as a discipline. IT departments are in a position to orchestrate awareness of and responses to cyber threats.

WHERE DO YOU START?

CYBER IMPLICATIONS




Integration as a discipline, exposing core assets for reuse, growth, and

innovation.



Web 2.0

• Application programming interfaces (APIs) are evolving from a development technique to a business model driver and boardroom consideration

• The API revolution is upon us, more than 10,000 have been published to-date1

• Core assets can be reused, shared, and monetized through APIs—creating a growing need for management platforms and experts

• The opportunity exists to provoke and harvest how business services and underlying APIs can reshape how organizations compete

Netflix

Federal Data Services Hub

1ProgrammableWeb, http://www. programmableweb.com/category/ all/apis?order=field_popularity





Clarify strategy: clearly define the intention, value, and audience of the API

Establish ownership: placing effort under an IT executive can simplify the path forward

Embrace the necessities: evaluate the available tools, platforms, and integration possibilities

WHERE DO YOU START?

Plan big, start small:businesses should balance payoff with added complexity

See it through: drive a sustained campaign for awareness and support, while keeping ongoing documentation and maintenance needs in mind

Cyber risk considerations should be at the heart of API strategies. An API built with security in mind can be a more solid cornerstone of every application it enables; done poorly, it can multiply application risks. New controls and tools are likely necessary to protect unbounded potential use cases while providing end-to-end effectiveness.

CYBER IMPLICATIONS




Harnessing the real potential of the Internet of Things.



ComEd

• IoT is becoming a reality with connectivity and intelligence increasingly embedded in assets across the value chain

• But putting the estimated 11 billion sensors1 to work is the challenge, along with deciding which of the 1.5 trillion objects in the world2 should be connected and for what purpose

• The goal should not be the Internet of Everything; it should be the network of some things, deliberately chosen and purposely deployed

Nest Labs

Streetline

Bosch SI1 Karen A. Frenkel, “12 obstacles to the Internet of Things,” CIO Insight, July 30, 2014,http:// www.cioinsight.com/it-strategy/infrastructure/ slideshows/12-obstacles-to- the-internet-of-things.html, accessed November 12, 2014. 2 Cisco Systems, Inc., Embracing the Internet of Everything to capture your share of $14.4 trillion, February 12, 2013, http://www.cisco.com/ web/about/ac79/docs/innov/IoE_Economy. pdf, accessed November 12, 2014.





Beware fragmentation: compelling use cases will require cross-organizational collaboration

Stay on target: avoid distractions from exciting new technologies by starting with concrete business outcome

User first: usability should guide implementation, even if the solution is automated

WHERE DO YOU START?

Network: don’t lose sight of the importance of connectivity, especially for items outside of established facilities

Stand by for standards: IoTstandards will continue to evolve, but don’t wait to invest until standards are finalized, help shape them

New security risks are embedded in each layer of IoT: sensors, networks, integrations, rules engines, people, and processes. IT leaders should be extra cautious when scenarios move from signal detection to actuation. Consider cyber logistics before placing new objects into the IT environment and take a broad approach to proactive risk management.

CYBER IMPLICATIONS




Modern marketing brings new challenges in customer engagement,

connectivity, data, and insight.



Insurance Industry

• A new vision for marketing is being formed as CMOs and CIOs invest in technology to reach digitally connected customers

• Four new dimensions are being added to original marketing mix: engagement, connectivity, data, and technology

• Technology and analytics can deliver convenient, contextual, and hyper-targeted customer experiences

• CIOs can help deliver analytics, mobile, social, and web while maintaining security, reliability, and interoperability

Rocket Fuel

Telstra





Customer-led: understand the customer journey and focus on authentic engagement

Focus on data: big data and predictive analytics should play a role in how you invest in targets and priorities

Holistic approach: explore new channels and tools to complement existing ones

WHERE DO YOU START? Content management: authoring,

provisioning, and measuring usage and effectiveness should be seamless processes that provide users with contextual content across channels

Social activation: move beyond passive listening to inspiring brand ambassadors

There are privacy concerns, laws, policies, and standards for using personal data for marketing which may limit the degree to which marketers can use data for personalization and outreach. Establishing and maintaining trust is key. Organizations should consider public policies, privacy awareness programs, and end-user license agreements joined with explicit security and privacy controls.

CYBER IMPLICATIONS




The entire operating environment—server, storage, and network—

can now be virtualized and automated.



Cisco

• The entire operating environment can now be virtualized and automated, elevating infrastructure investments from costs to competitive differentiators

• Savings come from retirement of gear, shrinking of data center footprints, and lowering of recurring maintenance costs

• And it’s not just about the cloud; it’s about removing constraints and being a platform for growth

• First movers will likely benefit from greater efficiencies and eventually reshape how their companies work

AmerisourceBergen

eBay

Acxiom





WHERE DO YOU START?

CYBER IMPLICATIONS

The software-defined stack will require new tools, but it can also help produce more streamlined, responsive IT capabilities where risk management becomes muscle memory. Standardization can minimize vulnerabilities and variances, and produce an accurate assessment of your risk profile.

Consider financing: some vendors may accommodate creative financing arrangements

Standardize design: emphasize templates and commonality to manage complexity

Facilitate teamwork: infrastructure and application teams should work in tandem for rapid deployment

Support migration: existing assets should be analyzed application by application to determine the technical considerations needed to support migration. The business needs should then be layered on.

Beyond the data center: companies may realize benefits by coupling SDDC initiatives with a broader IT transformation effort




Replatforming, architecting, and revitalizing IT at the heart

of the business.



Sysco

• Core system investment can be the foundation for growth and new service development

• 80% of time, energy and budgets are consumed by the care of existing IT capabilities1

• Many organizations are modernizing to pay down technical debt and remove barriers to performance

• One size does not fit all: replatform, remediate, revitalize, replace, or retrench

ElectronicsIndustry

The Bureau of Engraving and Printings

1Bob Evans, “Dear CIO: Is the time bomb in your IT budget about to explode?,” Forbes, January 22, 2013, http://www.forbes.com/ sites/oracle/2013/01/22/dear-cio-is-the-time-bomb-in-your-it-budget-about-to-explode/, accessed January 14, 2015.





Have a plan: balance business needs with limitations of existing systems and potential of emerging technology

Spark a light: find a burning platform to move the conversation about the core to the center stage

Plant the seed: invest deliberately in the core to eventually become a catalyst for growth

WHERE DO YOU START?

CYBER IMPLICATIONS

Partner up: strategic vendors can be allies in exploring new solutions for existing issues

Design as a discipline:embrace a living approach to architecture with usability, integration, data, and security in mind

Identify what attracts cyber threat and be vigilant in protecting your assets. Scratch the assumption that the emerging technologies are inherently riskier than the legacy systems and, regardless of the platform, define probable and acceptable risks. Leverage vendors to outsource risk, but recognize that your organization still retains responsibility for its security.




Augmenting and enhancing the individual with emerging

technologies—cognitive analytics,

visualizations, wearables, and beyond.



• Artificial intelligence is now a reality, but the more promising application is not in replacing workers, but augmenting their capabilities

• True impact comes from putting insights to work and changing behavior at the point where decisions are made

• The human element remains critical to discovering new patterns and identifying the questions that should be asked

• Solutions should start from the user down, not from the data model and analytics up

University ofMinnesota

Los AngelesPoliceDepartment

Oil & GasIndustry





Ask questions: develop wish list to guide priorities and reveal what data is needed

Be honest: balance opportunity against expected organizational resistance; it may take time to become a data-driven culture

WHERE DO YOU START?

Design from the user down: let user experience dictate the format, granularity and decisiveness of insights

Enhance the worker: be transparent in intent and consider programs to retool and redeploy workers

CYBER IMPLICATIONS

Traditional techniques to protect your data when it is at rest, in flight, and in use become less effective as the development of criminal products, services, and markets advances. Machine learning and predictive analytics can take cyber security a step further. Leading cyber initiatives balance reactionary methods with advanced techniques to identify the coming threat and proactively respond.




STEAM, not just STEM—fine arts alongside deep technical talent.



AIG

• Scarcity of technical talent is a concern across many industries as the legacy-skilled workforce retires and new technologies emerge

• Companies likely need to cultivate workers with new habits, incentives, and skills; hands-on capabilities may trump credentials

• Nature of employment changing: alternative models include virtual work arrangements, crowdsourcing, contract work

• Support knowledge sharing by cross-pollinating teams with a mix of new and experienced, cross-functional, diverse workers

GSA

Deloitte





WHERE DO YOU START?

Balance the need for security with a focus on user experience by creating a well-integrated risk framework that is anchored around the end user’s journey. Teach your workers how to manage risk, and embed cyber security into all aspects of your organization—software delivery, system maintenance and business process execution.

CYBER IMPLICATIONS

Incentivize IT leaders: activate communities around them

Rethink hiring: include externships, hackathons, and recruit those with design aptitude

Industrialize innovation: introduce mechanisms to submit, explore, and potentially develop new ideas

Create a virtual culture: provide tools that support remote workers

Venture out: leverage crowdsourcing, incubators and start-up spaces

Invest in your own IT workforce: drive retention and encourage referrals

Transform HR: shift the focus to talent attraction and development




Science and technology breakthroughs advancing faster than Moore’s law,

potentially impacting 230 lives.


FOUR DIMENSIONS FOR EFFECTIVE INNOVATION STRATEGY

• Trend sensing: stay on top of new developments—use “show” vs “tell” in demos and prototypes

• Ecosystems: combine the traditional allies with players from relevant adjacencies such as entrepreneurs, start-ups, venture capitalists and engineers

• Experimentation: fail fast and cheap, move forward, and think about the impact, feasibility and risk

• Scaling edges: achieve innovation at an institutional level by establishing new teams on the fringes of the organization




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