iw14 keynote, michelle shuttleworth, deloitte consulting

Director Michelle Shuttleworth

Inspiring Disruption Tech Trends 2014

Tech Trends 2014 Snapshot Disruptors Enablers

CIO as Venture Capitalist

CIOs are borrowing from the playbooks of

venture capitalists and reshaping how they run

the business of IT

Cognitive Analytics

Cognitive analytics offers a way to bridge the gap

between big data and the reality of practical

decision making

Industrialized Crowdsourcing

Today, technology makes crowdsourcing possible

on an industrial scale, with potentially disruptive

impacts on both cost and innovation

Digital Engagement

With more and more parts of the business

becoming digital, the CIO has an opportunity to

build a new legacy for IT

Wearables

Wearables hold possibilities for driving down

costs and increasing competitiveness. What

could it mean for your organization?

Technical Debt Reversal

Understanding, containing, and mitigating

technical debt can be a platform for a renewed

level of trust and transparency with the business

Social Activation

The power of social activation is unleashed when

others advocate an organization’s message in

their own words to their network

Cloud Orchestration

CIOs should be making deliberate investments in

developing advanced integration and data

management capabilities to support cloud-to-

cloud and cloud-to-core models

In-memory Revolution

The sweet spot for in-memory technology is

where massive amounts of data, complex

operations, and business challenges demanding

real-time support collide

Real-time DevOps

Early adopters of real-time DevOps have the

opportunity to profoundly impact their IT shop,

accelerating IT delivery, improving quality, and better

aligning with the business

Exponentials

Artificial Intelligence � Robotics � Cyber Security � Additive Manufacturing � Advanced Computing

Exponentials represent unprecedented opportunities as well as existential threats. Explore five with far-reaching,

transformative impact.

Disruptors

CIO AS VENTURE

CAPITALIST

COGNITIVE

ANALYTICS

INDUSTRIALIZED

CROWDSOURCING

DIGITAL

ENGAGEMENT WEARABLES


Thinking like venture capitalists to reshape business

Like venture capitalists, CIOs should actively manage their IT portfolio in a way that drives

enterprise value and evaluate portfolio performance in terms that business leaders

understand—value, risk, and time horizon to reward.


Bottom line

There’s a lot to learn from the portfolio mindset that VCs bring to their work:

balancing investments in legacy systems, innovation, and even bleeding-edge

technologies; understanding—and communicating—business value; and aligning

talent with the business mission. Venture capitalists operate in a high-stakes

environment where extraordinary value creation and inevitable losses can coexist

inside a portfolio of calculated investments. So do CIOs.

Where do you start?

1 Inventory your portfolio: Consider technology procured inside and outside of IT

2 Evaluate your portfolio: Define the risk, value, and strategic importance of each item

3 Double down on winners: Take intelligent risks, and be prepared to pull the plug

4 Direct line of sight to revenue: Vet technologies & discuss investments with the business


Bottom line

There’s a lot to learn from the portfolio mindset that VCs bring to their work:

balancing investments in legacy systems, innovation, and even bleeding-edge

technologies; understanding—and communicating—business value; and aligning

talent with the business mission. Venture capitalists operate in a high-stakes

environment where extraordinary value creation and inevitable losses can coexist

inside a portfolio of calculated investments. So do CIOs.

Where do you start?

1 Inventory your portfolio: Consider technology procured inside and outside of IT

2 Evaluate your portfolio: Define the risk, value, and strategic importance of each item

3 Double down on winners: Take intelligent risks, and be prepared to pull the plug

4 Direct line of sight to revenue: Vet technologies & discuss investments with the business

Applying technology to enhance human decisions

Cognitive Analytics

Inspired by how the human brain processes information, draws conclusions, and codifies instincts and experiences into learning, it is now possible for machines to learn from experience and to penetrate the complexity of data to identify associations.

Cognitive Analytics

Bottom line As the demand for real-time support in decision making intensifies, cognitive analytics can help businesses address some key challenges: It can improve prediction accuracy, provide augmentation and scale to human cognition, and allow tasks to be performed more efficiently (and automatically). Cognitive analytics offers a powerful way to bridge the gap between the promise of big data and the reality of practical decision making.

Where do you start? 1 Start small: Prototype a cognitive analytics platform with the cloud & open-source tools 2 Plant seeds: Invest in next-generation data scientists & business domain knowledge 3 Tools second: Explore what you have as tools evolve and consolidate 4 Context is king: Decide which domains to target and work through a concept map 5 Don’t scuttle your analytics ship: Supplement, don’t replace, traditional analytics 6 Divide and conquer: Break initiatives into small, accessible projects 7 Know which questions you’re asking: Stay grounded in the business “so what” 8 Explore ideas from others: Look outside your company and industry

Harnessing the power of the crowd


Enterprise adoption of the power of the crowd allows specialized skills to be dynamically

sourced from anyone, anywhere, and only as needed. Companies can use the collective

knowledge of the masses to help with tasks from data entry and coding to advanced

analytics and product development.


Bottom line Crowdsourcing is still in its early stages, but today’s online platforms are sophisticated enough to provide substantial benefits in solving many kinds of problems. It’s important that your organization has the ability to embrace new ideas that may be generated by your crowdsourcing initiatives. That means industrializing not just for scale and reach but also for outcome.

Where do you start?

1 Scope: Focus on a clear and specific problem to solve 2 Focus on gaps: Identify and target gaps in your organization’s abilities 3 Keep an open mind: Let your employees orchestrate the crowd 4 Get ready for what’s next: Start thinking now about policies and processes

Reshaping and rewiring the customer experience

Digital Engagement

Digital engagement involves using technology to design more compelling, personally relevant, engrossing experiences that lead to lasting, productive relationships, higher levels of satisfaction, and new sources of revenue.

Digital Engagement

Bottom line

Beyond efficiency and cost savings, digital engagement presents new ways to

enhance customer loyalty and competitive advantage – riding the wave of changing

behaviors and preferences for contextual interactions. And with more parts of the

business becoming digital, the CIO has the opportunity to build a new legacy for IT

—a responsive, forward-looking organization, an enabler of innovation, and a driver

of digital engagement.

Where do you start?

1 Web, mobile and social content enablement: Engage seamlessly across channels

2 Self-service and governance: Mix global control with localization

3 Ease of access: Make content easily accessible across multiple channels

4 Digital IP and asset management: Proactively plan for digitalization 5 Cost reduction: Streamline the distribution and management of digital content

Wearables

Enabling businesses with digital information

Hands-free, heads-up technology has the potential to reshape how work gets done, how

decisions are made, and how you engage with employees, customers, and partners.

While consumer wearables are in the spotlight today, we expect business to drive

acceptance and transformative use cases.

Wearables

Bottom line As consumer devices, wearables represent a very personal buying decision in which aesthetics and fashion are almost as important as function. But in the workplace, experience and engagement matter. Rethink how work could get done with the aid of an ever-present computing device that delivers the desired information when it’s needed.

Where do you start?

1 Imagine “what if”: Identify advances if workers had data at the moment they need it 2 Kick the tires: Experiment with platforms and organizations 3 Become an early adopter: Team with manufacturers to explore possibilities 4 Simplify. Simplify. Simplify: Create “glanceable” awareness of information 5 Anticipate data and device management: Consider how to manage these devices 6 Engage the workforce: Ask employees to participate in the imagination process

Enablers

TECHNICAL DEBT REVERSAL

SOCIAL ACTIVATION

CLOUD ORCHESTRATION

IN-MEMORY REVOLUTION

REAL-TIME DEVOPS


Reversing technical debt to support growth For most organizations, technical debt comes with the territory, an unavoidable outcome of decades of technology spend. Understanding, containing, and mitigating technical debt can be a platform, not only for a stronger IT foundation, but for a renewed level of trust and transparency with the business.


Bottom line While it’s important not to get obsessed with technical debt, it’s also critical to understand and plan for it. Every new project automatically comes with technical debt as a cost of doing business. Reversing technical debt is a long-term investment, but if left unaddressed, it can bankrupt your ability to build for the future.

Where do you start? 1 Assess the status of code for all significant investments: Calculate your debt 2 Find out how future investments are dependent on your legacy systems: Consider

whether your architecture is ready for new initiatives. 3 Think through the availability of talent to support debt remediation: Factor talent into your debt analysis to define priorities and timelines 4 Hold developers accountable: Consider rewarding developers on the quality of code

5 Spread the wealth (and the burden): Use communities to identify and address debt 6 Determine your debt repayment philosophy: Accumulation should be a conscious decision

Not just passive monitoring—it’s active influencing

Social Activation

Companies can activate their audiences to drive their messaging outward – handing them an idea and getting them to advocate in their own words to their own networks through social channels.

1 Focus: Avoid extending initial efforts across too many desired outcomes 2 Insight: Understand existing communities, channels, and content 3 Perception: Uncover what people really think and feel about your brand 4 Audience: Gather, monitor, and enlist targeted community members over time 5 Campaigns: Focus on the ideation, creation, and monitoring of social experiences

Social Activation

Bottom line Social can drive real business performance through measurable, sustainable results, but it requires a shift in mindset – with a focus on perception, engagement, and activation. In today’s recommendation economy, educating and empowering your audience can lead to impactful, long-lasting results.

Where do you start?

A new class of cloud offerings

Cloud Orchestration

CIOs should be making deliberate investments in developing advanced integration and

data management capabilities to support cloud-to-cloud and cloud-to-core models. Build

the components to orchestrate the cloud today, and you’ll be ready to adopt more

compelling services tomorrow.

Cloud Orchestration

Bottom line

As enterprises use disparate cloud offerings to handle critical business processes,

the desire to link these offerings to core legacy systems and data grows. CIOs who

have the disciplines of data management and integration architecture in place will

be positioned to create harmony out of the existing landscape and to leverage

orchestration services when they arrive.

Where do you start?

1 Petition for a new cloud business model: Voice opinions on pricing & orchestration 2 Build an integration foundation: Lay the groundwork for a cloud-to-core environment 3 Connect the dots: Understand how each application defines its dataset

4 Read the fine print: Understand your rights to data ownership, portability, and migration 5 Build a strong chain: Consider the performance of each cloud service in the process 6 Explore edge architecture: Connect enterprise core, private, and public offerings

Crunching massive amounts of data in real time


As in-memory technologies move from analytical to transactional systems, the potential to fundamentally reshape business processes grows. Technical upgrades of analytics and ERP engines may offer total-cost-of-ownership improvements, but potential also lies in using in-memory technologies to solve tough business problems.


Bottom line

On one hand, in-memory technology enables significant gains in speed, with

analytics number-crunching and large-scale transaction processing able to run

concurrently. At the same time, it has opened the door to real-time operations, with

analytics insights informing transactional decisions at the individual level in a

virtuous cycle. The result? Opportunities for continuous performance improvement

are emerging in many business functions.

Where do you start?

1 Understand what you’ve already bought: Define benefits and gaps 2 Push the vendors: Get them thinking about – and investing in – solutions you can use 3 Ask for roadmaps: Ask product developers for detailed roadmaps to guide the future

4 First stop: analytics: Find immediate opportunities by fueling advanced analytics 5 Focus on one or two capabilities: Prioritize high-potential functions for buy-in 6 Watch competitors: As competitors experiment, be ready to adopt new capabilities

Empowering the business of IT

Real-time DevOps

Real-time DevOps bridges the gap between development and operations, supercharging

the investments that currently exist in siloed automation by integrating the end-to-end

delivery model.

Real-time DevOps

Bottom line

By arming IT with the tools to automate and integrate their core disciplines, real-

time DevOps has the opportunity to profoundly impact the IT shop – accelerating IT

delivery, improving quality, and better aligning IT with the business.

Where do you start?

1 Establish the need: Conduct benchmarking to identify areas for improvement

2 Build new skills: Develop your core team’s hard and soft skills

3 Employ services thinking: Break down complex systems into modular services

4 Lay down the bases: Begin automating individual components

5 Connect the dots: Link components into a stream of continuous integration

6 Get vendors on board: Build on vendor successes to accelerate improvements

7 Make the leap to test-drive or behavior-driven design: Move from build-to-run to

build-to-verify 8 Look beyond cost & speed: Recognize benefits from enhanced delivery models

9 Commit: Make hard changes instead of falling for one-off, surface-level investments

AI can simulate

reasoning, develop

knowledge, and

allow computers to

set and achieve

goals

The next robotics

frontier is machines

which can perform

tasks that involve

gathering and

interpreting data in

real time

Breakthroughs in

speed, resolution,

and reliability

demonstrate

potential not only for

scale, but also for

unlocking new

possibilities

Companies should

be prepared to

survive in an

environment where

threats by cyber

criminals are

commonplace

The combination of

computing and

network advances

result in profound

civic and commercial

implications

Exponentials

ARTIFICIAL

INTELLIGENCE ROBOTICS CYBER SECURITY

ADDITIVE

MANUFACTURING

ADVANCED

COMPUTING

This publication contains general information only and Deloitte is not, by means of this publication, rendering accounting, business, financial, investment, legal, tax, or other professional advice or services. This publication is not a substitute for such professional advice or services, nor should it be used as a basis for any decision or action that may affect your business. Before making any decision or taking any action that may affect your business, you should consult a qualified professional advisor. Deloitte shall not be responsible for any loss sustained by any person who relies on this publication. For more information on the contents, case studies, and next steps featured in this presentation, please reference the full Tech Trends 2014 Report. As used in this document, "Deloitte" means Deloitte Consulting LLP, a subsidiary of Deloitte LLP. Please see www.deloitte.com/us/about for a detailed description of the legal structure of Deloitte LLP and its subsidiaries. Certain services may not be available to attest clients under the rules and regulations of public accounting. Copyright © 2014 Deloitte Development LLC. All rights reserved.

iw14 keynote, michelle shuttleworth, deloitte consulting

Technology