Digital Platform Insights - Enterprise Perspective

The new digital platform consists of five domains: Traditional IT systems, Customer Experience, The Internet of Things (IoT), intelligence and the Ecosystem Foundation.

Each of these domains are interconnected and interdependent. CIOs will participate in the building of a new digital platform with intelligence at the center. Digital platform will enable ecosystems, connecting businesses and collapsing industries. It will change society itself, and the way people live.

The five elements of the new digital platform insights include:

Traditional Core IT Systems

Taking high performing traditional IT systems (such as the data centers and networks) and modernizing them to be part of the digital platform. It’s building on what’s already been built.

• Organizations are halfway through the transition to the cloud leaving traditional methods of hosting. It goes into every department soon or later.
• Organizations need to make cloud, mobile, social and data as core capabilities while investing in resilience, business continuity and disaster recovery, inside and outside in a hybrid approach.

Customer Experience

Organizations needs to connect and engage in new ways. The digital customer experience may be the only one that the customers have. This is how the business engages in the digital world. The pioneers are exploring how new experiences such as virtual and augmented reality will change the way customers engage.

• The new competitive differentiator is understanding the customer’s intent through advanced algorithms and artificial intelligence.
• Creating new experiences that solve problems customers didn’t realize they had. 

Internet of Things (IoT)

Two-third of organizations have had to rework their existing IT systems to accommodate IoT. Adding devices to the IoT domain is the easy part. Processes, workflows, and data integration are much harder.

IoT also changes how Organizations should invest in analytics because decisions must move from days to minutes to instant. Organizations should plan to shift their investments in analytics to real-time. Real-time analytics will outpace traditional analytics by a factor of three by 2020 to become 30 percent of the market.

Intelligence

The systems analyze, learn and decide independently. Organizations start with traditional data management, data science and data intelligence. Algorithms determine the action. The new type of intelligence, driven by machine learning is artificial intelligence.

• Machine learning and artificial intelligence move at the speed of data, not at the speed of code releases. Information is the new code base.

Ecosystem Foundation

The enterprise interacts as an institution in the digital world. Ecosystems go beyond the capability to decide, Organizations need to build the capability to interact with customers, partners, adjacent industries, even your competitors. The ecosystems allow for the transformation from traditional business with linear value supply chains to networked digital ecosystem businesses.

Worldwide IT Spending

Gartner forecasts worldwide IT spending to total $3.4 trillion in 2016, a 0.3 percent decline from last year. In 2017, global IT spending is projected to grow 2.9 percent and reach $3.5 trillion. This growth will be driven by the software and IT services segments. 

Worldwide spending on software is projected to grow 7.2 percent, and IT services 4.8 percent.

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Top 10 Strategic Technology Trends: 2017

Gartner defines a strategic technology trend as one with substantial disruptive potential that is just beginning to break out of an emerging state into broader impact and use or which are rapidly growing trends with a high degree of volatility reaching tipping points over the next five years.

The top 10 strategic technology trends for 2017 are:

AI and Advanced Machine Learning

Artificial intelligence (AI) and advanced machine learning (ML) are composed of many technologies and techniques (e.g., deep learning, neural networks, natural-language processing [NLP]). The more advanced techniques move beyond traditional rule-based algorithms to create systems that understand, learn, predict, adapt and potentially operate autonomously. This is what makes smart machines appear "intelligent."

Intelligent Apps

Intelligent apps such as VPAs perform some of the functions of a human assistant making everyday tasks easier (by prioritizing emails, for example), and its users more effective (by highlighting the most important content and interactions). Other intelligent apps such as virtual customer assistants (VCAs) are more specialized for tasks in areas such as sales and customer service. As such, these intelligent apps have the potential to transform the nature of work and structure of the workplace.

Intelligent Things

Intelligent things refer to physical things that go beyond the execution of rigid programing models to exploit applied AI and machine learning to deliver advanced behaviors and interact more naturally with their surroundings and with people. As intelligent things, such as drones, autonomous vehicles and smart appliances, permeate the environment, Gartner anticipates a shift from stand-alone intelligent things to a collaborative intelligent things model.

Virtual and Augmented Reality

Immersive technologies, such as virtual reality (VR) and augmented reality (AR), transform the way individuals interact with one another and with software systems. VR and AR capabilities will merge with the digital mesh to form a more seamless system of devices capable of orchestrating a flow of information that comes to the user as hyperpersonalized and relevant apps and services. Integration across multiple mobile, wearable, Internet of Things (IoT) and sensor-rich environments will extend immersive applications beyond isolated and single-person experiences. Rooms and spaces will become active with things, and their connection through the mesh will appear and work in conjunction with immersive virtual worlds.

Digital Twin 

A digital twin is a dynamic software model of a physical thing or system that relies on sensor data to understand its state, respond to changes, improve operations and add value. Digital twins include a combination of metadata (for example, classification, composition and structure), condition or state (for example, location and temperature), event data (for example, time series), and analytics (for example, algorithms and rules).

Blockchain and Distributed Ledgers

Blockchain is a type of distributed ledger in which value exchange transactions (in bitcoin or other tokens) are sequentially grouped into blocks. Each block is chained to the previous block and recorded across a peer-to-peer network, using cryptographic trust and assurance mechanisms. Blockchain and distributed-ledger concepts are gaining traction because they hold the promise to transform industry operating models. While the current hype is around the financial services industry, there are many possible applications including music distribution, identity verification, title registry and supply chain.

Conversational System

The current focus for conversational interfaces is focused on chatbots and microphone-enabled devices (e.g., speakers smartphones, tablets, PCs, automobiles). However, the digital mesh encompasses an expanding set of endpoints people use to access applicatons and information, or interact with people, social communities, governments, and businesses. The device mesh moves beyond the traditional desktop computer and multiple devices to encompass the full range of endpoints with which humans might interact. As the device mesh evolves, connection models will expand and greater cooperative interaction between devices will emerge, creating the foundation for a new continuous and ambient digital experience.

Mesh App and Service Architecture

In the mesh app and service architecture (MASA), mobile apps, web apps, desktop apps and IoT apps link to a broad mesh of back-end services to create what users view as an "application." The architecture encapsulates services and exposes APIs at multiple levels and across organizational boundaries balancing the demand for agility and scalability of services with composition and reuse of services. The MASA enables users to have an optimized solution for targeted endpoints in the digital mesh (e.g., desktop, smartphone, automobile) as well as a continuous experience as they shift across these different channels.

Digital Technology Platforms

Digital technology platforms provide the basic building blocks for a digital business and are a critical enabler to become a digital business. Gartner has identified the five major focal points to enable the new capabilities and business models of digital business — information systems, customer experience, analytics and intelligence, the IoT, and business ecosystems. Every organization will have some mix of these five digital technology platforms. The platforms provide the basic building blocks for a digital business and are a critical enabler to become a digital business.

Adaptive Security Architecture

The intelligent digital mesh and related digital technology platforms and application architectures create an ever-more-complex world for security. "Established security technologies should be used as a baseline to secure Internet of Things platforms," said Mr. Cearley. "Monitoring user and entity behavior is a critical addition that is particularly needed in IoT scenarios. However, the IoT edge is a new frontier for many IT security professionals creating new vulnerability areas and often requiring new remediation tools and processes that must be factored into IoT platform efforts."

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