Information is your most valuable asset
All companies are IT companies
2020 – backoffice, 5 core enterprise capabilities
2020 – Digital Industrial Economy
- Digital tech arch
- Enterprise info arch
- Cyber security and risk
- Industrialized IT Infra – internal and external
- Digital leadership – ensure all biz leaders are digital leaders
Real and virtual worlds combine to one
Internet of everything
Digital Business wraps – Nexus, Digitization, Internet of Everything
Time cycles are shortening – shorter time makes all the difference in payback timeframe
By 2017, 20 of computers will be learning
2020 – 1 in 3 knowledge workers will be replaced by smart machines
Falling prices for equipment and technology
2020 – consumer wearable technology will drive 5% of business
Internet of Things – remote sensors in all industries drive major cost efficiencies and new products; sensor proliferation
By 2020 – all products that cost less than $100 will have sensors; service will drive the value of things
Best of breed ERP suppliers emerging and incumbents are struggling. Accelerated leadership changes coming. Cisco, Oracle, MS may not be the leaders in the Digital Industrial Economy.
WW IT Spending - $4 trillion and 5% of GDP – rev $309B in 2020 related to Internet of Things
Today's flashiest mobile solution is tomorrow's embarrassment. Mobile is your destination platform for all applications.
Suppliers are rapidly changing. How you buy/manage infra completely changes.
- Big data and cyber security creates new risks
- Changing the way you do business
- Internet of Things causes explosion of Information
- Mobile devices are your window into data
- Who is going to do all this work? Lack of organizational skills. Significant inhibitor to growth.
- New vulnerabilities in our infrastructures
- Governments will be more invasive in protection of data. You must respond. Use Big Data to protect Big Data.
- No single vendor addresses more than a fraction of your security challenges.
50% of CEOs believe they have an execution problem while only 10% of CIOs agree.
New leadership roles – by this time next year, a tripling of titles such as Chief Digital Officer, Chief Marketing Technologist – outside of IT.
Chief Digital Officers are change agents but by 2020 digital skills are assumed. All leaders will be digital officers.
5 capabilities of the 2020 Digital Tech Organization
----------------------- LeHong ------------------------
Digitizing all things - e.g. - a plaza with
Internet of Everything – things, people, places and systems
Business process, business model, business moment
The information about the package is just as import an as the package itself - FedEx 1978
AirBNB – how do you compete if you are Starwood? You are competing at the biz process level every day. Business moments come from nowhere and are everywhere.
Peer to peer lending – banks now competing with you. "parking in your driveway is a revenue opportunity"
Build a way to compete and seize business moments. You must figure out processes, models, moments. What is your digital story?
------------------- Nick Jones -------------------------------
1) Internet of Things – smart objects reporting on their environment and their status
Huge range of smart objects; making everything "smart" - lights, coffee machines, etc.
2020 – every
Eg – 94Fifty – smart basketball; SuperMechanical – smart recipes with smart thermometer; Huggies Tweet Pee
Smart furniture – time spent in specific models; breakage --> send replacement part to customer's 3D printer to print out
2) 3D Printing – will complete change manufacturing;
Dshape – print small buildings; print buildings on the moon
3) Big data – mine this data to construct new processes, models and moments
Sheer volume of information is overwhelming; need in-memory, real-time analytics; but analysis is not enough
You'll need processing power.
------------------------------ Dave Aron -------------------------------
Do you have all the digital bases covered?
Only 10% of CIOs think they have a problem with current technology delivery.
But 50% of CIOs say they are not ready for digitalization.
Need digital talent. CoderDojo. MenloAppAcademy.
StreetBump – real time sharing of road and traffic problems.
How will you lead at the speed of business moments?
Innovate – moving from incumbents to start-ups
Decline of COO – Revenue Officer, Experience Officer, Digital Officers, Data Officers
The CIO can become the CDO; Leadership needs to understand the oppty for biz model change; capture biz moments.
You must become the digital storyteller.
Can't rely on legacy – explore, adapt and adopt. Innovation and courage required!