How The Robots In Your Home Are Creating New Opportunities

IBA Group
Mark Hillary

I recently bought a Furbo. It’s a device that started life on the crowdfunding platform Indiegogo. You fill the Furbo with small dog treats and when away from home it’s possible to watch your dog using the camera and toss those treats remotely. It’s also possible to speak and listen to what your dog is ‘saying’.

It’s just a fun device, but it is also one more connection to the Internet. Our homes are becoming filled with connected devices and slowly our home environment is becoming far more technology-enabled than any office, where the focus is still on connecting little more than computers and printers.

Think about your own home environment. Do you have an Amazon Echo or Google Home system? That means you will have connected microphones dotted around the house. What about your phone, laptop, and Kindle? If you have a games console that that will also be connected and how else can your TV access Netflix if that’s not online?

Much of the traditional media we used to consume in the home such as records, movies, and books is now consumed electronically. We stream Netflix to a Smart TV. We stream Spotify music to a home theatre or speaker system. We download books and magazines to e-readers like the Amazon Kindle. The connected home has slowly become a reality and is no longer unusual or cutting edge.
Data published last year by Cisco estimates that by 2021 each person in North America will be using 13 connected devices. Thirteen for each person! That’s a lot of Kindles and Furbos.

Naturally much of this growth is because everyday objects are gradually becoming connected. It would be unusual to buy a new car today and to find that it does not ask to connect to your wifi. Tesla cars regularly upgrade themselves when parked overnight. A new channel between products and their manufacturer has been created allowing automated updates and maintenance to take place without user involvement.

Smart leaders need to look beyond the devices and think about the data. When people are streaming constant information on their location and behaviour how can your business tap into that information to create genuine value? Insurance companies are one great example of a sector that is benefitting from this move to an Internet of Things (IoT) environment. If a car driver only pays insurance for their car when it is used and they are rewarded for safe driving behaviour then that helps the customer and the insurance company. Insurance is being redefined by this real-time data on the customer.

How is your business reacting to this connected environment? Can you see the opportunities or does it just seem like a threat to the established way of doing business?

Is There A Difference Between Consumer IoT And Industrial IoT?

IBA Group
Mark Hillary

The difference between enterprise IT and consumer IT has been blurred in recent years. It used to be that managers used Blackberries as their mobile device of choice because it worked better with email than any other handset – now Android and IOS are dominant for both enterprise and consumer use.

Enterprise technology used to be completely unrelated to any of the systems we might use on a computer at home – think of ERP or CRM systems. Who would be building a CRM system at home, yet it’s a common tool in the office. However, now that many enterprise tools are delivered via the cloud using a web browser it feels remarkably similar to be using tools and systems at home or in the office.

So is the Internet of Things (IoT) any different? The IoT has largely been talked of as an automation tool to assist in the home – the smart home where every device is connected and controllable. But how does the IoT work in the enterprise environment and should it be approached differently to the home?

There are in fact many differences that enterprise IT managers need to be aware of and this interesting article lists ten talking points. I’m going to just focus on what I consider to be the most important three here:

1. Security; you might be comfortable capturing personal data, such as your heart rate, on devices at home and sharing that information with your own personal cloud, but in the enterprise environment systems handling highly personal information need strong protection – just assuming a password is enough is negligent.

2. Reliability; enterprise and industrial IoT systems may be deployed far from your headquarters in remote and hostile environments. You need to know that a sensor will have a lifespan that can be measured in years, not weeks.

3. Programmability; IoT systems produced for personal use at home are largely out-of-the-box solutions. Even systems that can be configured in many ways, such as the Amazon Echo used for controlling home devices, are generally used in default mode most of the time. In the enterprise environment it is critical that your IoT devices and general environment can be changed to suit your needs – the default setting is unlikely to meet your needs.

This is an interesting paradox. As we have observed consumer and enterprise applications becoming more and more similar, the world of IoT remains distinct. The CIO, or general IT management, need to create an enterprise IoT strategy that moves beyond just installing systems that would be more useful in a smart home environment.

IT Trends For 2018 Will Be More Consumer Focused Than Ever Before

IBA Group
Mark Hillary

The industry analyst firm Gartner has just published their view on technology trends to watch in 2018 and it makes for some interesting reading. Their research summarises the trends into three main groups: intelligent, digital, and mesh.

Scanning across all the trends it is interesting to see how many are now very influential on customer experience (CX). Companies used to engage with their customers mostly through customer service functions – often just contact centres accepting calls and emails. Now there is a much more complex environment where customers expect intelligent interactions across many different immersive environments – technology is required to support all of this.

Consider these trends, all from the top 10 Gartner predict as important for 2018:

  • Conversational Platforms; Google Home, Amazon Alexa, Apple Siri. People are getting much more comfortable just speaking to computers and expecting them to respond intelligently. Google has even demonstrated their Pixel Bud headphones that can translate 40 different languages in real-time, allowing a user to have a conversation with a person speaking another language.
  • Immersive Experiences; both Augmented Reality and Virtual Reality are really taking off as people get used to immersion into a new world. The success of the Pokémon GO game in 2016 boosted AR and VR is seeing a huge boost as the power of the new Sony Playstation and Microsoft Xbox mean that millions of people have VR systems at home.
  • AI Foundation; companies are finding that they can use AI to help with real problems. In particular a common machine learning and AI solution now is to capture every customer interaction – what problem the customer has and how it was solved – creating a smart system that over time learns how to answer almost any problem. The system knows about every question every customer has ever asked, and how the problem was resolved in the past.
  • Intelligent Things; the Internet of Things (IoT) means that many more devices will be connected and online. Often this is talked about as a way to ensure your fridge never runs low on milk, but the real story is that your devices will all be talking to their manufacturer all the time, diagnosing problems and fixing themselves or upgrading – without your involvement at all. Imagine if your car can just check itself and get advice from the manufacturer automatically?
  • Blockchain; Crypto-currencies are still a niche pursuit, but many big organisations are taking them seriously. If a large network such as Alibaba, Facebook, or Google started taking the idea of non-sovereign online currencies seriously then we could see big changes ahead in many industries – retail and banking first.

What is fascinating to see now is how many technology trends are becoming ubiquitous and consumer-focused. We are no longer talking about business-focused issues such as network strategy or cloud computing. Many of these changes are driven by technology, but are being demanded by the end customers. The divide between enterprise and consumer technology is becoming very narrow indeed. As we now enter the final quarter of 2017 I’m going to think a little more about this in some future blogs – where should the IT industry be focused next year?

How Are The Predicted Tech Trends of 2017 Working Out?

IBA Group
Mark Hillary

We are already in Q2 of the year so is it possible to observe how any of the predicted technology trends for 2017 are playing out? At the start of the year Gartner predicted a global IT spend of £3.5 trillion so there is a lot at stake.

Gartner predicted a move away from hardware spending as more companies source services from cloud-based solutions. This is bad news for the companies building servers, but great news for companies trying to quickly get new solutions up and running. This is one predicted trend that is observable in almost every IT project I see. Nobody is interested in managing their own infrastructure today, which creates a great opportunity for service companies to offer cloud solutions.

Business Insider published their own long list of predictions, from which I think that three are particularly worth mentioning:

  • Internet of Things; long talked about as a smart fridge, but now it is clear that all electronic objects can connect online and be more useful. I talked at a conference last month about how auto manufacturers are planning to create cars that can self-diagnose problems – an audience member told me that Chevrolet is already doing this. It’s happening right now.
  • Virtual Reality; I have long talked about VR as a tech that just needs people to have access to it at home. Now this is finally happening. In the past few months the new Sony Playstation and Microsoft Xbox have both been released with support for VR. Tens of millions of homes will be VR-ready by the end of this year.
  • Blockchain; it’s clear that Facebook has enjoyed some success over the past year with their Messenger cash transfer service, but it’s clear to me that they will take it further and create a global currency that can be used on Facebook. The Chinese WeChat service is already used for payments so I believe Facebook will need to make a quantum leap beyond just connecting a credit card to your account and this will be by taking the experience of BitCoin and making it easy to use virtual currencies. Blockchain will underpin the experience, but the user base of over 1bn people will ensure that when Facebook seriously gets into finance it will rock the industry.

What is particularly interesting is that several of these technologies have lurked around for years without much adoption – look at Augmented Reality for a great example. However there is a wave of enthusiasm for many of these nascent technologies now because companies are finding real business solutions and consumers are demanding better services.

Which of the predicted technology trends do you think will become the biggest later this year?

Enterprise IT Is Changing Fast

IBA Group
Mark Hillary

I saw an interesting Tech Target blog on the storage requirements associated with Big Data projects recently. It’s interesting to see just how many technology concepts are now either blurring together or becoming interdependent.

Consider this as an example. A shipping company installs tracking devices on every vehicle and container they use – it might be tens of thousands of individual items that can now be tracked and monitored and more effectively moved into position. Clearly that increased efficiency is great for the company, but what does it mean in terms of additional IT infrastructure?

First there is a need for an IoT strategy – the Internet of Things – where all these individual items can be tagged and monitored in some way. Either they can independently broadcast their location or they can be monitored using devices that pass in close proximity to them.

So the sheer amount of information that is being captured requires a Big Data strategy because instead of just having an inventory of items, now you need to model the items and their location in real-time. Your database has to become a reflection of the business.

Then a data analysis strategy is required because you need to build models that can maximise the efficiency of the data model and improve on what humans can do manually. As the machines learn the optimum processes, much of the system will be able to run automatically.

But underpinning all of this will be a storage strategy because the amount of data that is created, stored, and manipulated will be huge compared to earlier inventory-based systems. In some cases the data capture will appear to be extraneous – capturing the movement around a port of a single container might not by itself add a lot of value to your business, but when aggregated with the location and movement of every container and analysed, efficiencies can be created.

And this leads back to the use of a cloud strategy to ensure that all these systems always have the storage and computing power available whenever needed.

It’s becoming hard to consider any of these strategies as distinct from each other because the way that IT projects work today has moved far from the world of PC-based applications. Enterprise systems are getting bigger and better, but they need more consideration and strategic planning to succeed.

Big Data and the IoT Are Worth Billions to the UK Economy

IBA Group
Mark Hillary

The Centre for Economics and Business Research (CEBR) recently published new research exploring the size of the Internet of Things (IoT) and Big Data markets in the UK economy with predictions running from 2015 to 2020. These two technologies are expected to add £322 billion to the British economy during this period and although the research is focused only on the UK it can be safely assumed that the effect will be similar in other developed European markets making the effect of these two technologies enormous.

In the UK, the scale of this effect is worth 2.7% of the national GDP and is therefore not just of interest to technology firms, and companies that require technology solutions, these technologies are literally going to change the economy in regions where they are deployed. The opportunities are increasing on a daily basis.

The research indicates that telecoms firms are already strongly adopting both Big Data and IoT solutions, but other industries are catching up and expressing a strong interest in how these technologies can help. Retail banking is expected to overtake telecoms soon for Big Data analytics and it’s no surprise because this is an industry that is being shaken to the core.

The big advantage of improving the use of data analytics is that companies can get to know their customer behaviour better. This means they can adjust their offer to the customer and personalise the service received, all leading to improved revenue and happier customers.

In a business like banking, new start-ups are finding that they can pick a small part of the business, like remittances or lending, and focus on that one service. If they can launch an app offering the service and it is cheaper and better than a traditional bank then they can start growing their market share.

The banks cannot stop this happening, but they can start adjusting their own customer experience so that their existing customers do not desert them for rivals. To make this happen needs information about customer behaviour and that’s where Big Data fits into the story. Knowing your customer needs better insights and technology tools like Big Data analytics and the IoT are what will help you to design how your business is going to work after 2020.

Companies Are Using Big Data Without Realising It

IBA Group
Mark Hillary

Big Data is one of those buzzwords everyone is talking about, but as I have been saying for some time now, most companies are performing some kind of data analysis on their customers or suppliers and have been doing so for years without ever calling it Big Data.

There does come a time when the data being analysed is so huge and fast changing that specific Big Data tools are required, but the reality is that many organisations are already performing some kind of data analysis that could be termed Big Data – without them even realising it.

A new study from Dresdner Advisory Services backs up my observations. When asked specifically if they use Big Data, just 17% of companies responded yes on this survey. 47% said that it might be used in future. However, 59% of the respondents also claimed that Big Data is “critically important” to their business. Something is wrong?

The survey shows that the definition of Big Data is perhaps one of the problems here. Most companies don’t have petabytes of data to analyse and they therefore are performing data analysis, but not thinking of it as Big Data analysis. If the manager doesn’t think of the problem as big enough then they don’t use the term Big Data.

However there are many areas of industry where this is about to change, largely driven by technologies such as mobile and the Internet of Things. Think of an example such as a retailer needing to create the same customer experience for an in-store customer, as that same customer would receive online.

These problems require data. They also need it to be analysed fast. While a customer is in-store and tracked using their mobile device, decisions can be taken about whether to give the customer a discount code based on their profile. During payment, recommendations for other products can be made based on sales history.

All these processes are easy to imagine, some retailers are getting this sophisticated now, but to make it happen it needs the IT system to be joined-up with data that can be analysed in real-time – allowing the system to take decisions itself.

Another easy to imagine examine is with automobiles. Cars are increasingly connected to the Internet via smart phones and wi-fi. They will increasingly diagnose problems and communicate with the manufacturer without the driver being aware that the car is fixing itself. The amount of data captured and exchanged for this to work is enormous, yet in most cases the customer is entirely unaware of the processes taking place.

So how big is big might still be a question for many, but I think that we are on the cusp of an explosion in data use – analysing this much information will certainly be a part of the bigger picture for Big Data.

Trends in Data for 2016

IBA Group
Mark Hillary

One of the trends for 2016 that is certain to only increase in importance is the use of data analysis across many different types of organisation. Big Data and the real-time analysis of data in general is reshaping many industries, redefining how companies build a relationship with their customers.

The fact that this change is applicable across all industries is the most important aspect of this trend. Almost every company in every industry is exploring how a better use of data can give them the edge in 2016. Three specific areas I see as being really important for the year ahead are:

1. The Internet of Things (IoT); tech commentators like talking about the smart fridge that knows you need more eggs, but this is going to be a much more serious trend. If every electric device you own is networked then some incredible new possibilities are created from cars that can self-diagnose and fix problems without you even being aware of it to being able to control anything in your home remotely.

2. Machine Learning; many contact centres have been exploring how robots equipped with product knowledge can handle simple customer service enquiries. As they learn more about what customers want they will get far better and eventually even be able to anticipate what the customer needs. This ability to learn and apply knowledge with physical or virtual robots will be really important. It’s 5 years now since the IBM Watson system beat the TV game show Jeopardy, now doctors are training Watson in how to recognise and diagnose illnesses.

3. Data Security; the weak spot in all systems that need customer data is that the customers become too scared to share their information – scared of data leaks and hacker attacks. The Ashley Madison attack in 2015 was an example of how hackers can even threaten the existence of a company, just by stealing data.

Big Data, and data analysis in general, will certainly be more important in 2016 because it is now affecting so many companies, but this final point is important. As customers share more data there is the danger of more leaks and more attacks. The only thing that will prevent the benefits of enhanced data analysis becoming a reality is if people become wary of sharing information.

Engaging Customers in 2020

IBA Group
Mark Hillary

Last month I was in London giving a keynote address to the Engage Customer audience focused on the customer experience in 2020. This event is focused on the entire industry that surrounds customer service and how it can be delivered.

You can see my slides here, but I thought it was worth mentioning this presentation to a more IT-focused audience because the biggest change that is taking place in the customer service industry is the introduction of various technologies that are improving how customers can be managed.

Look at the list of six technologies that I believe will be making a big change to the customer experience in the near future:

· Virtual reality; with Facebook investing heavily in Oculus and their Rift system, this will be a far more common technology in the near future.

· Augmented reality; as Google creates a version of Glass that does not look like a computer on your face this will return.

· Wearables; already common for fitness and health, they will eventually replace the telephone.

· Internet of Things; tech that can diagnose and fix problems without the human being involved – imagine if your car could fix itself?

· Automation / Robots; replacing mundane tasks with robots, even in contact centres.

· Location Awareness; retailers able to send you a one-hour offer because they know you are near to a store.

Many of these technologies are in the process of being adopted and others will become more important in daily life in the near future, however, as you can see from the presentation slides, I mention various other technologies that will soon change how customers interact with brands.

· Omnichannel; companies are connecting together all those channels that customers are using and creating new opportunities to win business. The L’Oreal virtual make-up app is a great example of changing the way that beauty products are sold.

· Fintech; banks are finding that new start-ups are picking individual banking services, creating them online or on an app, and winning customers. Entire full-service banks are now being launched using the app as the central point of interaction.

· Communication; every communication from shopping to politics to finding a new partner is changing and becoming electronic – how does this change in the way people communicate everyday change the way your business operates?

What is clear to me is that the customer experience is a great consumer of new and innovative technologies. More people in IT and IT services need to consider how they can work with experts in the field of customer experience because managing customer interactions is about far more than managing a contact centre today – it’s a business area that is entirely driven by technological change.

IDC: Big Data Spending To Soar Over Next 5 Years

IBA Group
Mark Hillary

Concerns have been mounting in the Internet of Things (IoT) recently. Equipment manufacturers have been tussling over standards prompting some to believe that a ‘Betamax’ situation may be created where some devices cannot connect to the IoT grid.

If such a situation occurs it could seriously impact the adoption of Big Data projects. Big Data does not depend on the IoT – there are many other types of large database – but the constant flow of IoT data means that most IoT projects will also require a Big Data element.

However there is some good news from the analyst community. New data from IDC suggests that the growth rate for spending on Big Data between 2014 and 2019 will be just under $50bn – that’s compounded growth of 23.1% each year.

The real elephant in the room for the Big Data market is the security of collected data. There have been several damaging data leaks by major organisation in recent months. The danger for companies that are collecting large amounts of data is that leaks of private data will cause brand damage so serious that companies could even face an existential threat.

IDC believe that large companies are aware of this danger and are planning their Big Data infrastructure with security in mind.

“The ability to leverage big data and analytics to develop an integrated view of customer activities and business operations will provide competitive differentiation to companies across industries,” said IDC programme director Jessica Goepfert.

“However, in addition to the huge opportunities, big data presents some significant risks and liabilities to organisations. Line of business and IT executives will need to approach these ongoing challenges with awareness, flexibility, adaptability, and responsibility.”

This is an area of the technology business that is growing by around one quarter every year right now. There will need to be some big mistakes to derail this market, but it is possible. The constant stream of security stories in the media shows that the public are more aware than ever of the dangers ahead. Companies adopting Big Data need to ensure they are always one step ahead of the data thieves.

Gartner Predictions for Tech in 2016

IBA Group
Mark Hillary

The industry analyst Gartner Group has issued a list of ten technologies to watch for 2016. These are the trends that the analyst firm believes will be shaping the digital agenda next year.

You can go to the Gartner newsroom where they list all of their predictions, but here I want to comment on what I see as their top three.

Adaptive Security Architecture
If a CEO today is not aware of the importance of security then their board should be asking how they got the job. Major companies are now facing existential threats because technology systems were hacked. Consumer companies with personal data on millions of customers are particularly at risk and one hack can destroy many years of trust in a brand. Making security smarter, tighter, and more able to adapt to changing attack methods will be an enormous trend in 2016.

The Internet of Things (IoT)
Despite recent suggestions the IoT is stalling because there is still no single agreed standard, I believe that there is enough momentum in this trend to start creating a significant amount of work. Naturally this connects to an increased need for expertise in Big Data analysis if IoT is creating enormous amounts of data.

Autonomous Agents
Machine learning is getting smarter. People laughed at Apple Siri when it was first launched, but have you tried it recently? Intelligent agents have improved enormously. The Amazon Echo system replicates Siri in the home, allowing a user to ask questions from anywhere in the home. Similarly machine intelligence is set to revolutionise customer service operations as the most common enquiries are recognised and handled by robots – Robotic Process Automation.

As always, the Gartner predictions are interesting, but after checking the complete list of ten, which would you pick as your top three?

Could The IoT End Up Like Betamax?

IBA Group
Mark Hillary

We have all seen the numbers related to the Internet of Things (IoT). 50 billion devices will be connected by 2020 with $19 trillion of business opportunity. It’s a big deal.

But, there is a hidden side to the numbers that a new feature in Forbes magazine has explored. Ten different industry groups are trying to define standards and frameworks for the IoT. Six companies that employ 780,000 people, and have net annual sales of $428 billion, are almost entirely controlling the entire industry.

Forbes suggests that it’s like a giant casino. Each of these big technology companies is presented a united front to their clients, but behind the scenes everyone is fighting to create a dominant position on the bodies that are defining standards.

Wars over standards always break out when new technologies come along. Who can forget the old days of VHS vs. Betamax video? However, this time the prize for being a dominant player is enormous.

The problem here is that the Internet of Things is a concept or strategy. It requires the creation of an entire ecosystem that involves both hardware and software. If every device needs to be connected to every other device then manufacturers across several different industries need to start working together.

The IoT isn’t a foregone conclusion. It will only work with devices that can interact with each other. If large technology companies only see the market opportunity and start battling for turf before even agreeing on how the IoT can and should work then it may never work.

We may end up in a situation where only certain products can link up to others, or worse still, you need to buy everything from a single manufacturer to be able to create a connected environment. It’s time for the big companies in this market to really start working together, rather than just joining trade bodies and pretending there is unity.

As the Forbes features says: “Who will win with this strategy? It won’t be us.”

Healthcare Is the Big Data Growth Engine

IBA Group
Mark Hillary

In July this year, I ran 153km. My doctor would probably be pleased to see this, as it’s quite a good average of about one marathon every week. I was hoping to do even better in August, but I’ve not been very well so my figures are lower.

I know the distance covered because my iPhone has the Nike+ app. Not only is it recording the distance each time I run, but I can see where I went, the hills covered, the split times, average pace, the weather, and the type of terrain covered. Add an extra accessory, like the Apple Watch, and I could be tracking and recording my heart rate too.

Tools like this are the reality of concepts that we all see in technology journals – Big Data and the Internet of Things are two concepts that we read about all the time and yet they are often undefined or unclear.

Take another example related to health. The games company Nintendo is in the process of launching an entire suite of products related to “Quality of Life”. The first one is a box you can place by your bed as you sleep. It does not need to touch you, it just needs to be close, maybe by your bedside light and book.

The device monitors you as you sleep. It gathers data over time and compares it to other people and can recommend how you can improve your health. The device can give concrete advice (usually related to exercise or food) based on knowledge of the way people sleep and it does not even need to be worn.

All these devices are capturing enormous amounts of data that we never used to capture. In theory, open sharing of health-related data with health professionals should make their life easier and improve diagnosis for patients.

But it’s not always as easy as the technology suggests. A new paper in the IEEE Journal of Biomedical and Health Informatics explores Big Data use in healthcare and why it is taking longer than expected to achieve the promised benefits.

The real challenges are:

1. There is just so much data that is being stored. Most individual healthcare providers don’t know what to do with all the data they have – at that is just at individual company levels.
2. Finding a way to use the data is difficult. Most healthcare managers are not experts in the concepts of IoT being used to create data and Big Data expertise allowing the study of enormous databases.

The “Holy Grail” for healthcare providers is to be able to create an “Electronic Health Record”… a single key that then allows every possible piece of information on a single patient to be indexed. This would include traditional patient notes, but also any X-rays, MRI scans, performed over a lifetime. It would also include extra information, such as sleep patterns from a Nintendo device, exercise records from a Nike device, and a record of your pulse from the moment you are born to when you die.

Technologically we are there already. Mainstream equipment such as smart phones and smart watches are already making the data collection possible, but can the healthcare companies actually make sense of all the information they can access?

At present no, but it goes to show that healthcare is about to be one of the growth industries of the century. Populations are getting older and information technology is blending with normal life in a way that nobody could have imagined a decade ago.

Big Data and the IoT have a real and definable purpose in healthcare. Where do you think the next big healthcare innovation will take place?

Taking Mobile Tech From Home to Enterprise

IBA Group
Mark Hillary

Think about the consumer technology that you regularly use today. You probably have a smart phone, maybe a Kindle or other e-reader, maybe an Apple Watch or similar device that can access information from your phone. Maybe your car can hook up to your phone to offer in-car information. Maybe you have an Amazon Echo at home so you can access the Internet just by speaking?

All these consumer devices are available today and are accepted as normal. Most consumers expect to have a device that gives them 24/7 access to all the services and information that the Internet can offer.

So why isn’t enterprise technology like this? Many companies still issue phones that are not even smart and laptops that are too heavy to really be portable. The concepts of cloud computing and app store flexibility remain conceptual in many organisations. Why?

The obvious answer is that consumers have far less to invest than large companies. When purchasing technology, a CIO needs to set the agenda for several years. If things change during that time it can be difficult to shift direction or to keep up with the change. Individuals don’t face this problem.

This has led to the popularity of Bring-Your-Own-Device (BYOD) policies in many companies, where employees are offering cash to use their own equipment instead of what the company can supply.

But a small change in the strategic mindset can also have a major benefit to the enterprise. Commissioning new software solutions as apps, rather than desktop tools can encourage the workforce to be mobile. This can even encourage companies to create entirely new solutions for customers.

An app developed by IBA for use by a bank in South Africa allows bank employees to sign up new customers on the move. They can photograph the customer using their phone and capture details which are then shared with the central system of the bank – no forms, no waiting for an appointment. The new customers, the mobile bank employees, and the bank executives all benefit from the app approach.

It used to be that enterprise technology was years ahead of what people had at home, but now the reverse is true. It’s time for more company executives to take inspiration from the tools they use everyday – how can we use mobile devices and other common personal technology to create better business solutions for our customers?

Business Intelligence is Being Led by Data Intelligence

IBA Group
Mark Hillary

The analyst firm Gartner recently published some fascinating data trends in Forbes magazine. They summarised how important Big Data is becoming for business intelligence in three clear trends:

1. By 2020, information will be used to reinvent, digitalize or eliminate 80% of business processes and products from a decade earlier.

2. By 2017, more than 30% of enterprise access to broadly based big data will be via intermediary data broker services, serving context to business decisions.

3. By 2017, more than 20% of customer-facing analytic deployments will provide product tracking information leveraging the IoT.

These trends are exciting because what they point to is how communication is changing between individuals and how this is now affecting the way that companies do business.

Mobile, social, cloud, and shared information are all forces that have really only grown in importance over the past 5-6 years. Many company leaders have not realised how all these factors will change the way that companies do business and how decisions from new products to choosing a partner company will all be data-led.

The Gartner predictions are point at corporate behaviours just 18 months in the future. Have you explored how your own organisation is using data today and if not then can you be sure that your competitors will not be making better business decisions a year from now?

The Internet of Things Takes Off at CES 2015

IBA Group
Mark Hillary

The Internet of Things (IoT) is taking off at the Consumer Electronics show (CES) in Las Vegas. The CES is the biggest annual consumer electronics show in the world and often manages to set the agenda for the technologies that will be important in the coming year.

The IoT has been talked of for several years as ‘the next big thing’ in technology. It refers to when everything electronic is connected to the Internet and able to share information in a much more open way than is possible now.

The example often used is a digital fridge that can advise when milk is running low or what you can cook for dinner with the food you currently have, but this is not a good example at all and fails to see how fundamental the IoT could be.

If everything we touch is connected then we will live in a different world. Your phone, car, watch, heart monitor, shoes, just about everything you interact with will be generating information. Your insurance company will know when and where you drive your car. Your employer will know when you are at the office and when you are at home. Your doctor will be able to monitor your health without requiring a visit to the hospital. Your car will alert the dealer directly when there is a problem that cannot be resolved at home.

Many of these actions can be taken now. The ethos of the IoT is just that we will see much more communication from the objects we interact with and that there will be communication between objects. For example, your electricity meter may actually check with electrical items in your house and send a report on which appliances use the most power.

In theory the IoT is a revolution in communication in the same way that the Internet itself created an open communication platform. However, the big danger is that different companies use different protocols and methods of communication.

The CEO of Samsung used his own speech at CES this week to suggest that every Samsung product will be using entirely open IoT data platforms within 5 years. With this kind of leadership, hopefully smaller companies will follow and ensure that all their products are open.

The possibilities for the IT industry are endless. IoT will generate vast amounts of data, therefore the principles and expertise needed to manage Big Data will be important, but when this relates to customers then linking in the Customer Relationship Management (CRM) aspect will also be essential.

IT projects are going to multiply in the coming years. Products that were never previously connected or never required software – a kettle for example – may require new software and systems so that you can send a message from your phone on the way home, so a boiled kettle is ready and waiting for you.

If the CES predictions are correct, 2015 is going to be the year that IoT finally goes mainstream.

Predictions for IT services in 2015

IBA Group
Mark Hillary

The industry analyst Gartner recently published their predictions for technology in 2015. It’s an eclectic list that includes such announcements as 90% of consumer product companies using 3D printing for personalised products and digital disruptions being created by algorithms.

Of course every analyst and pundit is making their predictions now and so if I am going to add to this end of year commentary then I would suggest the following for IT services.

I can see four broad areas where technology products and services will boom in the next year or two:

    Health; particularly remote access to doctors, and wearable monitoring technologies. Health care technology is advancing so rapidly that we will see average life expectancy rates rapidly increase in the next decade.

    War; the world is becoming more unstable and cyber crime (such as the recent Sony hacking) is becoming an issue of national security. War will increasingly rely on technology as much as soldiers and missiles.

    Privacy; since the Edward Snowden revelations, people have become more concerned about their own privacy and the use of their personal data by corporations and government. This will create issues for industries such as advertising and yet create new opportunities for those who can help to preserve anonymity or confidentiality.

    Government; consumers have a greater expectation on their governments, both as democratic legislators and as providers of public services. Both will be dramatically changed through the use of technology with services improving and greater access to information.

    The traditional market for IT services has already changed from what we saw in the past decade. I visited IBA recently and learned how some of their projects are more valuable after deployment because they can then capture and utilise user or customer data – the real value is in the data not the fee for building the system.

    Based on what we have seen recently I believe there will be three major factors that continue to exert major pressure for change on how IT services are delivered:

    Contract flexibility; the old days of very tight SLAs and KPIs have to end because the world moves just too fast for service partners to be relying on measures that might have been designed a couple of years earlier. This is particularly important in industries that are changing month by month – customer service technology for example. IT service companies have talked for years about being ‘partners’ – now they need to truly design contracts that reflect this partnership model because tight contracts are too restrictive for the modern world.

    The app store model will continue to develop in the enterprise. Consumers are used to using apps and IT service companies need to consider how services can be bundled into the same kind of structure for the enterprise.

    The cloud will continue to dominate areas such as storage, but with complex services such as ERP and CRM all available via cloud based tools, is there anything that cannot be delivered this way? We will see every possible option explored soon.

    I think these are the three main drivers within the IT service space at present. Earlier ideas about IT outsourcing being cost-driven and with many concerns about the development location feel dated now. Nobody cares that Skype was developed in Estonia, Angry Birds was developed in Finland, Tweetdeck was developed in London, and Waze was developed in Israel.

    More broadly, as Gartner suggests, we will feel the impact of technology far more on our daily lives whether we are involved in the technology industry or not. Think of many normal activities; choosing a political leader, finding the best price for a new car, finding a new partner, studying for a new degree, reading the news, almost every activity we undertake now engages us in technology. Almost everyone is a technology user and this penetration into every part of society means that for those of us who do work with technology, there is a bright future – every other industry depends completely on technology today.

    Have a great holiday season and enjoy the start of 2015. There will be more comment on the blog in the New Year!