The Disruptive Impact Of The Nexus of Forces

Chris Howard VP, Distinguished Analyst Chief of Research @chrishoward88 © 2013 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. or its affiliates. This publication may not be reproduced or distributed in any form without Gartner's prior written permission. If you are authorized to access this publication, your use of it is subject to the on the independence and integrity of Gartner research, see " Guiding Principles on Independence and Objectivity ." Usage Guidelines for Gartner Services posted on gartner.com. The information contained in this publication has been obtained from sources believed to be reliable. Gartner di sclaims all warranties as to the accuracy, completeness or adequacy of such information and shall have no liability for errors, omissions or inadequacies in such information. This publication consists of the opinions of Gartner's research organization and should not be construed as statements of fact. The opinions expressed herein are subject to change without n otice. Although Gartner research may include a discussion of related legal issues, Gartner does not provide legal advice or services and its research should not be construed or used as such. Gartner is a public company, and its shareholders may include firms and funds that have financial interests in entities covered in Gartner research. Gartner's Board of Directors may include senior managers of these firms or funds. Gartner research is produced independently by its research organization without input or influence from these firms, funds or their managers. For further information

‘It’s the first time that a company [Burberry] is blurring the lines between physical and digital.’ Angela Ahrendts, former CEO of Burberry, now heading Apple’s retail operations © 2013 Gartner, Inc. and/or its affiliates. All rights reserved.

© 2013 Gartner, Inc. and/or its affiliates. All rights reserved.

‘The ability to marry real-time customer data with real-time performance data of our products business.’ — to me that's the holy grail in our

Jeffrey Immelt CEO, GE Talking about his company's “Industrial Internet" initiative in 2012

Overview

• • • • The Nexus forces (Information, Mobile, Cloud, Social) remain top priorities for CIOs The Nexus of Forces applies to people inside and outside the organization, in multiple roles Many emergent Nexus of Forces scenarios involve the Internet of Things The Nexus of Forces is the platform for the Digital Business © 2013 Gartner, Inc. and/or its affiliates. All rights reserved.

Nexus of Forces 2014

Where are we now?

#GartnerSYM

Nexus of Forces

Convergence and mutual reinforcement Driven by human behavior Amplifies human behavior Creates new opportunities for engagement Engagement creates new business opportunities © 2013 Gartner, Inc. and/or its affiliates. All rights reserved.

2009

CIO Ranking

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 recession

CIO Technology Priorities 2009-13

2010 2011 2012 2013 Gartner introduces "Nexus of Forces" at Symposium 2011 Analytics and BI Mobile Cloud Collaboration © 2013 Gartner, Inc. and/or its affiliates. All rights reserved.

2014: CIO Technology Priorities

Ranking Based on How Many CIOs Cited Each as a Top-Three New Spending Priority for 2014

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Pre Web

Analog

The Journey to Digital Business Post Nexus Pre Nexus

Web E-Business D-Marketing D-Business Autonomous

Focus Build relationships that drive business or lower cost Extend relationships into new markets/ geographies Transform sales channel into a global medium to drive efficiencies Exploit Nexus to drive greater efficiency Outcomes Entities Optimize relationships People Extend relationships People Business Optimize channels.

People Business Optimize interactions People Business Extend potential customers from people to things Smart, semi autonomous things become the primary ‘customer’ Build new business models People Business Things Maximize retention of and relationships with things People Business Things Disruptions Emerging technologies Technologies CRM Internet and digital technologies CRM Web Automation of business operations EDI Mobile Deeper customer relationships, analytics BI Big Data Social new value and new nonhuman customers Sensors 3D printing Smart machines and things as customers Robotics Smarter machines Automation Change of Kind © 2013 Gartner, Inc. and/or its affiliates. All rights reserved.

Change of Degree

Disruption

9

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Disrupts

• Networks, transactions Our relationship with “things” - Among Individuals, organizations • • • The distinction between physical and virtual Privacy and security Traditional IT-controlled solution delivery

Disruption: Networks and Transactions

Gartner for Technical Professionals

Human Behavior

• • • • They participate in value relationships They expect those relationships to be based on "knowing" One person's "OK" is another person's "Creepy" They are mostly irrational © 2013 Gartner, Inc. and/or its affiliates. All rights reserved.

Text Mining Psychographics Location Preferences Aversions Sentiment Analysis Buying Patterns Life Events Financial Habits Health Data Text Mining Clickstreams Proximity to Friends Search Habits

Business © 2013 Gartner, Inc. and/or its affiliates. All rights reserved.

Person Things

Digital Value Network Business Observation + Mediation = Value Customer Things

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© 2013 Gartner, Inc. and/or its affiliates. All rights reserved.

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Powering the Walmart.com Search

Sentiment Analysis Clickstream Text Analytics Transactions

Polaris

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10% to 15% increase in online shoppers completing a purchase

Information: From Descriptive to Prescriptive

Data Analytics

Descriptive

What happened?

Diagnostic

Why did it happen?

Predictive

What will happen?

Prescriptive

What should I do?

Human Input Decision Action Decision Support Decision Automation © 2013 Gartner, Inc. and/or its affiliates. All rights reserved.

Sourcing Information Broadly

Transactions Email

Operational Enterprise "Dark Data"

Reports Monitoring Contracts Sensor Credit

Public Commercial

Weather Industry Population Sentiment

Social Media

Economic Network

Correlations and patterns from disparate, linked data sources yield the greatest insights and transformative opportunities

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Personal Cloud: Moving Beyond Personal Computing

Your Digital Community Life

Sports Standings

Content

News Tax Info.

E-gov.

Facebook Twitter Shopping School Schedule School Corp.

Archives

Services

RSS SMS Email Training Work at Home

Comms.

Devices

VoIP Corp Apps LAN Wi-Fi Banking Broad band Memories Financial Info.

Benefits Wi-Fi Conferencing Personal Records Cell Meeting Records Financial IM Email Home Security Cell Medical TV Banking Calendar Hobbies Music Memories

Family

© 2013 Gartner, Inc. and/or its affiliates. All rights reserved.

© 2013 Gartner, Inc. and/or its affiliates. All rights reserved.

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Doctor?

Quantified Self © 2013 Gartner, Inc. and/or its affiliates. All rights reserved.

Trainer?

Insurance Company?

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Disruption: Security and Risk Management

Gartner for Technical Professionals

What the IoT Means for Security – Dispersion of Infrastructure Building Blocks

Dispersion

31

What the IoT Means for Security – Cloud and Mobile Inevitability

Accelerated Adoption

32

When fridges attack…

Proofpoint Uncovers Internet of Things (IoT) Cyberattack

33 http://www.proofpoint.com/about-us/press-releases/01162014.php

Disruption: Physical and Virtual

#GartnerSYM 34

Human Behavior

• People are mobile • They spread their experience over a constantly shifting array of devices • They expect context-aware delivery of "experiences" © 2013 Gartner, Inc. and/or its affiliates. All rights reserved.

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Insert Yelp Monocle slide 38

Smart Components

Hey!

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Hey!

Collaborative Asset Management © 2013 Gartner, Inc. and/or its affiliates. All rights reserved.

Engineering OEM

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© 2013 Gartner, Inc. and/or its affiliates. All rights reserved.

Collaborative Asset Management

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Disruption: Traditional IT

#GartnerSYM 44

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Let's do this

Nexus

thing!

No way! Too risky!

The benefit outweighs the risk!

Just do it. Go around IT if necessary!

Let's do this

Nexus

thing!

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New Sources of Value Related to IT

• Digital Business Technology understanding is becoming a business skill • Remote work and mobile drives technology needs • Demand for great customer experience • Ecosystem of players • Business directed choice driving innovation Invent new work practices Focus on individual and personalization Thinking like a broker Dynamic collaboration and participation are essential 48 *Source: Gartner March 2013 “Field Research Summary: The Changing IT Career”

Seven Essential Qualities

1.

Be outcome oriented — outcome must become more important 2.

Participate and have a participative culture 3.

Be advisors and influencers 4.

Be openly experimental and enable innovation 5.

Be knowledgeable, yet remain open to many perspectives 6.

Encourage autonomy within a known context 7.

Be adaptable and always learning Source: Gartner March 2013 "Field Research Summary: The Changing IT Career"

Work Toward the New Hybrid Role: Hybrid IT Is an Opportunity

Builds and manages private cloud Liaisons with business leaders Maintains the traditional IT environment Forges relationships © 2014 Gartner, Inc. and/or its affiliates. All rights reserved.

In Summary, the Nexus of Forces

• • • • • Introduces new business opportunities Is a platform for engagement with external and internal parties Increasingly incorporates the Internet of Things Is the platform for Digital Business Requires a shift from “IT as Builder” to “IT as Broker” © 2013 Gartner, Inc. and/or its affiliates. All rights reserved.

Recommended Gartner Research

• • • • •

Transform Your Business With the Nexus of Forces

Chris Howard, and others (G00262353)

Maverick* Research: Ethics Are at the Center of the Nexus of Forces

Frank Buytendijk, Jay Heiser (G00256392)

Nexus Forces Fuel the Engagement Initiative

Jeffrey Mann, Matt Cain, Chris Howard (G00254938)

Talent on the Digital Frontier: New Capabilities, Built Out Quickly, Will Dominate Digital Business

Diane Morello (G00257633)

Agenda Overview for Digital Business, 2014

Jorge Lopez and others (G00260349) © 2013 Gartner, Inc. and/or its affiliates. All rights reserved.

For more information, stop by Gartner Research Zone.

Nexus Document Collections

• • Nexus document site: http://www.gartner.com/explore/special reports/research/2565218#foundations Gartner search string: http://www.gartner.com/search/research/sort?so

rtType=rel&sortDir=desc © 2013 Gartner, Inc. and/or its affiliates. All rights reserved.

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