Companies are looking to grab any technology-driven advantage they can as they adapt to new ways of working, managing employees, and serving customers. They are making bigger moves toward the cloud, e-commerce, digital supply chains, artificial intelligence (AI) and machine learning (ML), data analytics, and other areas that can deliver efficiency and innovation. At the same time, enterprises are trying to manage risk -- and the same digital initiatives that create new opportunities can also lead to risks such as security breaches, regulatory compliance failures, and other setbacks. The result is an ongoing conflict between the need to innovate and the need to mitigate risk. "There is always going to be some amount of tension relating to managing risk and engaging in digital transformation work," says Ryan Smith, CIO at healthcare provider Intermountain Healthcare.
Just a few years ago, companies used innovation and digital transformation mostly to differentiate themselves and to stay competitive. The dramatic growth in digital technologies and cloud computing over the last couple of years has since changed this mindset. Today, organizations must be innovative and leverage the latest technologies simply to stay in business. Enterprises that implement online retail, banking, and other services aren't considering these channels as just another route to increase their revenue. They realize that online services are fast becoming their primary revenue channel.
A close up abstract of a mainboard electronic computer background to illustrate the Internet of Things (IoT). There is certainly much excitement these days surrounding the Internet of Things (IoT), which has become one the most hyped expressions in technology across industries as well as government. Projected to have 25 billion end-points connected to the global network come 2021, its growth is driven by both consumer and enterprise adoption. Highlighting what is in store, it has been predicted by IDC that in 2025 a total of 180 trillion gigabytes of new data will be generated in that year from around 80 billion connected devices. And, the amount of data from IoT that will be analyzed and utilized to change business processes will be as large as the amount of all the data created in 2020.
The trend towards digital transformation of the enterprise, regardless of industry or sector, will accelerate in 2017 from the already significant levels seen last year. We identify the following seven digital technology trends as game changers for software-driven enterprises. The crumbling of the barriers to entry for machine intelligence – driven by the availability of high-quality open-source software components; cloud platforms from all major providers; and the availability of wildly popular and high-quality introductory courses on MOOC platforms – will drive growing mainstream adoption of machine intelligence as a differentiating and foundational technology layer in the digital transformation stack for identifying and closing new revenue opportunities, customizing user experience, driving operational efficiencies, and predicting failures. Also expect to see acceptance and greater adoption of advanced machine learning techniques for delivering closed-loop actionable insights in domains such as the Industrial Internet of Things and cybersecurity. The fully distributed, transparent, tamper-resistant, and auditable shared ledger technology known as blockchain is particularly powerful in settings where multiple parties need to reconcile without a central intermediary, or need to track provenance of assets across organizational boundaries, or need to establish and enforce contracts between untrusting parties and speed up reconciliation with a secure and verifiable audit trail.
The past year has been a transformative and exciting year for the Internet of Things. We have seen almost every industry invest in the IoT and leading industries quickly move to implementing IoT solutions that are driving the bottom line. The IoT trends driving enterprise digital transformationEnterprises are driving the Internet of Things transformation. Consumer products such as wearables and connected electronics certainly garner a large part of the market, but IDC estimates more than 80 percent of IoT spending through 2020 will be on B2B applications and use cases. The Internet of Things will be one of the primary drivers of the digital transformation that enterprises will undergo in the coming years, creating a self-learning environment that will drive digital disruption in physical world.