innovatie en ict trends

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Business innovation and IT trends If you just follow, you will never lead

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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.

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Business innovation and IT trendsIf you just follow, you will never lead

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

urit

y of

the

tec

hno

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

6

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%)

12

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.”

14

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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