Top 6 Books For Project Professionals

David McAughtrie

As digital technology and mobile devices take over the business world, project professionals are coming up against new obstacles. New communication tools, remote workers, and the Internet of Things (IoT) are changing the landscape of traditional project management, and the only path to success is adapting to an increasingly technology-driven world.

These six books offer new methods of operating in the era of digital transformation by making the most of enterprise resource planning (ERP) tools. These platforms can manage extraordinary amounts of information so you can make better-informed decisions—and implement them faster than ever before.

Pre-Suasion: A Revolutionary Way to Influence and Persuade, by Robert Cialdini, Ph.D.
This New York Times bestseller comes from expert social psychologist Robert Cialdini. He considers the foundation of influence and persuasion, then takes the concepts to the next level. Cialdini explains how to develop your communication skills beyond the point of simply getting your message across. Instead, you will learn to create the perfect environment to truly influence—a skill no project professional can succeed without.

Storytelling with Data: A Data Visualization Guide for Business Professionals, by Cole Nussbaumer Knaflic
As new technology transforms access to data, making it possible to gather and analyze unprecedented amounts of information, project professionals are left with a conundrum: how to present all of this information in an effective manner. Storytelling with Data offers clear-cut, actionable instructions on effective presentation, explaining how to weave facts and figures into a story that is easily understood by your audience.

Switch: How to Change Things When Change Is Hard, by Chip Heath, Dan Heath
Project professionals are often tasked with planning and implementing complex organizational changes, and statistics show that most such changes are doomed to fail. It is simply too difficult to transition people from their comfortable present to an uncertain future. Digital transformation projects highlight this tendency, as they add in the extra pressure of becoming accustomed to new technology. Switch gives insight into the reasons why change is so hard, along with best practices for successfully managing organizational change.

The Obstacle Is the Way: The Timeless Art of Turning Trials into Triumph, by Ryan Holiday
Though Ryan Holiday’s look at overcoming challenges has never gone mainstream, it is considered a must-read among the rich and famous. Holiday explores what separates ordinary people from extraordinary ones: the ability to persevere through adversity. Project professionals understand the nature of adversity all too well, as they face some of businesses’ greatest challenges in the course of implementing change. This book offers support and encouragement for staying the course when you know you are on the path to success.

Building the Future: Big Teaming for Audacious Innovation, by Amy Edmondson, Susan Salter Reynolds
Incremental change simply won’t cut it in a world where digital transformation is advancing rapidly. Infrastructure must be entirely recreated, and outdated processes must be replaced in order to compete. Building the Future explores the new normal, offering project professionals an inspiring look at how to go after audacious innovation.

Mapping Innovation: A Playbook for Navigating a Disruptive Age, by Greg Satell
New technology and innovative entrepreneurs are disruptive traditional methods of doing business. Long-time industry-leading organizations have discovered that they are no longer competing with other major industry players. Instead, crowd-sourced ideas and technology startups are driving innovation—and traditional businesses need to rethink their methods quickly if they want to stay on top. Satell takes a look at the nuts and bolts of innovation and how to turn a great idea into a workable solution. This book offers the critical next step for project professionals who are given a mission but no instruction on how to achieve it.

For more project management resources, see Top 5 TED Talks For Project Professionals.

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David McAughtrie

About David McAughtrie

Dave McAughtrie is content marketing expert for SAP S/4HANA Cloud.

Crisis Communication: The Power Of Video During Uncertain Times

Paul Herdman

Nothing tests a global organization’s ability to communicate quickly and effectively like a crisis: a data breach, leadership scandal, terror attack, natural disaster, or even a major political event like Brexit. How companies deal with crisis impacts everything from revenue to customer satisfaction and even stock price—and in a time when these events have become a regular part of business, Global 2000 organizations are putting crisis management technologies at the very top of their investment lists.

Amidst all the recent uncertainty, video is quickly emerging as the most powerful and preferred corporate communication medium. Not only is video an authentic way to communicate; it is also accessible from almost any device stakeholders use to consume content. Forward-thinking organizations understand that video accounts for three-quarters of online traffic, and are now leveraging their enterprise video platforms as go-to systems for distributing information and connecting executives with company stakeholders in crisis situations.

The changing face of crisis communication

The fact is, today most crisis communications—even at Global 2000 organizations—are centered around mass email, corporate blogs, press releases, conference calls, and general word of mouth. These modes of communicating during a crisis will never disappear, but as primary methods, each offers an inflexible, impersonal, or delayed communication channel that cannot adapt to the chaotic and rapidly moving environment a crisis can create.

And even when no crisis is imminent, in large organizations, senior executives rarely have direct contact with the wider workforce. The name of the CEO may be well-known, but practical opportunities for face time in a dispersed enterprise encompassing thousands of employees across multiple locations are limited. As executives attempt to ensure everyone in the company is up-to-date on crisis-related action plans, traditional communication channels are creating a lack of overall employee preparedness.

The case for a video-centric crisis communications strategy

Decades of research have found that visuals are processed at hyper-speed by the brain. In fact, one researcher has estimated that watching one minute of video is the equivalent of hearing 1.8 million words. It is this foundational fact that makes video exponentially more effective when information is fluid. Not only does video allow the provision of real-time information, but it also offers both control over messaging and information security: two things traditional crisis communication methods cannot match. A short, real-time video can be created quickly and shared with everyone, or only with people who have the necessary security permissions—and at a higher level of impact, understanding, and retention.

Enterprise video also offers senior management a simple way to engage directly, enabling employees to see and hear from them versus their representatives. In addition, video offers a more personalized way of conveying a message, which results in increased retention and engagement. The bottom line is, when it comes to how a company deals with a crisis, video is the most effective medium to communicate, reassure, and demonstrate leadership to stakeholders.

Video crisis communication in the real-world

For a global organization, distributing effective company-wide communication is a challenge, even under normal circumstances. But in a crisis, lack of timely information and credible detail can fuel misconception, and allow rumors and misinformation to quickly take the place of facts.

What if executive teams could quickly produce brief videos that explain facts surrounding a crisis, give staff immediate instructions on what to do, and outline the company’s strategy for mitigating impact? In preparation for the UK’s EU referendum last summer, a large global bank shot two different videos to explain what a Brexit vote would mean for customers in both the In and Out scenarios, creating a readiness for questions and concerns regardless of the vote. Alternatively, a French bank chose to produce a PDF document. In both cases the content was business-critical, but which communication do you believe reached more people faster and more effectively?

A practical and reliable tool

Video is now an expected communication channel both in life and the digital workplace, and businesses are capitalizing on this shift by using video as a practical and reliable tool in corporate communications. When a crisis happens, video has an immediacy and emotional power that makes it perfect for disseminating facts, messages, and information quickly to employees and stakeholders.

In crisis situations, video also has the power to compel decision-makers to convey information in the form of a story— where, according to psychologist Jerome Bruner, it is 20 times more likely to be remembered. The fact is, people are engaged by video in a way that is simply not possible with voice, text, or still images. The first step toward acceptance within enterprises is to incorporate video into regular communications patterns. Only then can video communication become an effective way to disseminate information and engage stakeholders in a crisis.

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Paul Herdman

About Paul Herdman

Paul Herdman is vice president at Qumu EMEA. Paul joined Qumu in 2015, bringing 20 years of experience in senior sales positions, primarily within the software industry, including vice president EMEA at a UK-based risk management startup and enterprise sales at Oracle and Stellent.

Email: paul.herdman@qumu.com
Twitter: @Qumu
LinkedIn: https://www.linkedin.com/in/paulherdman/

Three Ways CIOs Can Overcome The Inhibitors Of Innovation

Orlando Cintra

One of the things that puzzles me as I work with CIOs throughout Latin America and the Caribbean is why so many allow themselves to be trapped by transactional thinking. Why do they focus on day-to-day tasks and allow innovation to impact only a fraction of their operations?

It’s clear that companies can achieve significant results by being open to the transformative power of digital innovation, but making changes to allow for this transformation has proven to be challenging for some.

For these companies, leaders typically view technology primarily as a tool of productivity and cost reduction. But the world has changed. Digital disruption is pervasive, intensifying the need for all organizations to embrace digital transformation – including small and midsize businesses as well as large enterprises and the public sector. How can you let go of your old ways? Read on for three suggestions, and be inspired by one organization that has embraced digital innovation with great success.

1. Be willing to assume some risk

As compelling as the use cases may be, companies in general are afraid to fail. They want to innovate, but to do so with a 90% chance to succeed. They want to see other companies innovate, then follow suit and duplicate their ideas. That’s not innovation; that’s imitation.

This hesitancy is understandable. If it’s not in your organization’s DNA to innovate, then overcoming inertia is that much more difficult. But you need to be willing to take calculated risks to achieve the greatest rewards. History has proven this true time and again.

2. Don’t wait for the perfect time to get started

Another common inhibitor is the tendency to try to fix all the problems first. Management wants operations to be flawless before shifting the focus to innovation. That’s not reality. Our world is constantly changing, our customers are constantly changing, and the rate of change is constantly accelerating. If you wait to resolve 100% of your problems, then you’ll never get started.

3. Be inspired by the innovators

Who are the innovators? They’re the companies that realize that the time is now – whether that means facing risk or failure. They look to create new business models and see how technology can enable them. They get the process started and make adjustments as business needs change.

Many organizations in Latin America are embracing digital innovation, but that’s happening more slowly than in other regions. The good news is that momentum is starting to build.

For example, the City of Buenos Aires is using technology to modernize its infrastructure and improve the livability of the city. City administrators can monitor citizen complaints on social media, check in with sensors and work plans – and provide a quick and informed response. The city government also implemented technology to help predict and prevent flooding from the River Plata.

Because of the city’s aging drainage infrastructure and dense population, flooding has historically been an ever-present threat, clogging storm drains, bringing normal activity to a halt, damaging property, even costing lives. But now, with the ability to analyze real-time sensor data from storm drains and use mobile technology to pinpoint flash points, the City of Buenos Aires is well-prepared to mitigate risks caused by heavy rains. And other technology supports infrastructure maintenance, management of complex contractor and supplier relationships, and better citizen services that help improve quality of life.

The City of Buenos Aires is just one example of an organization that is embracing innovation. In the months ahead, I’ll share additional stories of others that are doing the same. Meanwhile, have a look at our e-book, SAP Leonardo Digital Innovation System Capabilities & Success Stories, and SAP Cloud Platform customer showcase stories.

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Orlando Cintra

About Orlando Cintra

Orlando Cintra is senior vice president of Innovation and SAP Cloud Platform for the Latin America & Caribbean region, supporting companies in their digital transformation roadmap. He helps companies take the right journey for the future, where digital transformation is the main – and current – focus in many markets and industries, using innovation as a key element of disruption and business value creation.

An author and speaker, Orlando has more than 20 years of experience in IT and business in leadership positions with SAP, HP, and Informatica Corporation. He holds an Information Technology degree and specialization in Leadership from Harvard Business School, and lives in São Paulo, Brazil.

Tick Tock: Start Preparing for Resource Disruption

By Maurizio Cattaneo, Joerg Ferchow, Daniel Wellers, and Christopher Koch

Businesses share something important with lions. When a lion captures and consumes its prey, only about 10% to 20% of the prey’s energy is directly transferred into the lion’s metabolism. The rest evaporates away, mostly as heat loss, according to research done in the 1940s by ecologist Raymond Lindeman.

Today, businesses do only about as well as the big cats. When you consider the energy required to manage, power, and move products and services, less than 20% goes directly into the typical product or service—what economists call aggregate efficiency (the ratio of potential work to the actual useful work that gets embedded into a product or service at the expense of the energy lost in moving products and services through all of the steps of their value chains). Aggregate efficiency is a key factor in determining productivity.

After making steady gains during much of the 20th century, businesses’ aggregate energy efficiency peaked in the 1980s and then stalled. Japan, home of the world’s most energy-efficient economy, has been skating along at or near 20% ever since. The U.S. economy, meanwhile, topped out at about 13% aggregate efficiency in the 1990s, according to research.

Why does this matter? Jeremy Rifkin says he knows why. Rifkin is an economic and social theorist, author, consultant, and lecturer at the Wharton School’s Executive Education program who believes that economies experience major increases in growth and productivity only when big shifts occur in three integrated infrastructure segments around the same time: communications, energy, and transportation.

But it’s only a matter of time before information technology blows all three wide open, says Rifkin. He envisions a new economic infrastructure based on digital integration of communications, energy, and transportation, riding atop an Internet of Things (IoT) platform that incorporates Big Data, analytics, and artificial intelligence. This platform will disrupt the world economy and bring dramatic levels of efficiency and productivity to businesses that take advantage of it,
he says.

Some economists consider Rifkin’s ideas controversial. And his vision of a new economic platform may be problematic—at least globally. It will require massive investments and unusually high levels of government, community, and private sector cooperation, all of which seem to be at depressingly low levels these days.

However, Rifkin has some influential adherents to his philosophy. He has advised three presidents of the European Commission—Romano Prodi, José Manuel Barroso, and the current president, Jean-Claude Juncker—as well as the European Parliament and numerous European Union (EU) heads of state, including Angela Merkel, on the ushering in of what he calls “a smart, green Third Industrial Revolution.” Rifkin is also advising the leadership of the People’s Republic of China on the build out and scale up of the “Internet Plus” Third Industrial Revolution infrastructure to usher in a sustainable low-carbon economy.

The internet has already shaken up one of the three major economic sectors: communications. Today it takes little more than a cell phone, an internet connection, and social media to publish a book or music video for free—what Rifkin calls zero marginal cost. The result has been a hollowing out of once-mighty media empires in just over 10 years. Much of what remains of their business models and revenues has been converted from physical (remember CDs and video stores?) to digital.

But we haven’t hit the trifecta yet. Transportation and energy have changed little since the middle of the last century, says Rifkin. That’s when superhighways reached their saturation point across the developed world and the internal-combustion engine came close to the limits of its potential on the roads, in the air, and at sea. “We have all these killer new technology products, but they’re being plugged into the same old infrastructure, and it’s not creating enough new business opportunities,” he says.

All that may be about to undergo a big shake-up, however. The digitalization of information on the IoT at near-zero marginal cost generates Big Data that can be mined with analytics to create algorithms and apps enabling ubiquitous networking. This digital transformation is beginning to have a big impact on the energy and transportation sectors. If that trend continues, we could see a metamorphosis in the economy and society not unlike previous industrial revolutions in history. And given the pace of technology change today, the shift could happen much faster than ever before.

The speed of change is dictated by the increase in digitalization of these three main sectors; expensive physical assets and processes are partially replaced by low-cost virtual ones. The cost efficiencies brought on by digitalization drive disruption in existing business models toward zero marginal cost, as we’ve already seen in entertainment and publishing. According to research company Gartner, when an industry gets to the point where digital drives at least 20% of revenues, you reach the tipping point.

“A clear pattern has emerged,” says Peter Sondergaard, executive vice president and head of research and advisory for Gartner. “Once digital revenues for a sector hit 20% of total revenue, the digital bloodbath begins,” he told the audience at Gartner’s annual 2017 IT Symposium/ITxpo, according to The Wall Street Journal. “No matter what industry you are in, 20% will be the point of no return.”

Communications is already there, and energy and transportation are heading down that path. If they hit the magic 20% mark, the impact will be felt not just within those industries but across all industries. After all, who doesn’t rely on energy and transportation to power their value chains?

The eye of the technology disruption hurricane has moved beyond communications and is heading toward … the rest of the economy.

That’s why businesses need to factor potentially massive business model disruptions into their plans for digital transformation today if they want to remain competitive with organizations in early adopter countries like China and Germany. China, for example, is already halfway through an US$88 billion upgrade to its state electricity grid that will enable renewable energy transmission around the country—all managed and moved digitally, according to an article in The Economist magazine. And it is competing with the United States for leadership in self-driving vehicles, which will shift the transportation process and revenue streams heavily to digital, according to an article in Wired magazine.

Once China’s and Germany’s renewables and driverless infrastructures are in place, the only additional costs are management and maintenance. That could bring businesses in these countries dramatic cost savings over those that still rely on fossil fuels and nuclear energy to power their supply chains and logistics. “Once you pay the fixed costs of renewables, the marginal costs are near zero,” says Rifkin. “The sun and wind haven’t sent us invoices yet.”

In other words, zero marginal cost has become a zero-sum game.

To understand why that is, consider the major industrial revolutions in history, writes Rifkin in his books, The Zero Marginal Cost Society and The Third Industrial Revolution. The first major shift occurred in the 19th century when cheap, abundant coal provided an efficient new source of power (steam) for manufacturing and enabled the creation of a vast railway transportation network. Meanwhile, the telegraph gave the world near-instant communication over a globally connected network.

The second big change occurred at the beginning of the 20th century, when inexpensive oil began to displace coal and gave rise to a much more flexible new transportation network of cars and trucks. Telephones, radios, and televisions had a similar impact on communications.

Breaking Down the Walls Between Sectors

Now, according to Rifkin, we’re poised for the third big shift. The eye of the technology disruption hurricane has moved beyond communications and is heading toward—or as publishing and entertainment executives might warn, coming for—the rest of the economy. With its assemblage of global internet and cellular network connectivity and ever-smaller and more powerful sensors, the IoT, along with Big Data analytics and artificial intelligence, is breaking down the economic walls that have protected the energy and transportation sectors for the past 50 years.

Daimler is now among the first movers in transitioning into a digitalized mobility internet. The company has equipped nearly 400,000 of its trucks with external sensors, transforming the vehicles into mobile Big Data centers. The sensors are picking up real-time Big Data on weather conditions, traffic flows, and warehouse availability. Daimler plans to establish collaborations with thousands of companies, providing them with Big Data and analytics that can help dramatically increase their aggregate efficiency and productivity in shipping goods across their value chains. The Daimler trucks are autonomous and capable of establishing platoons of multiple trucks driving across highways.

It won’t be long before vehicles that navigate the more complex transportation infrastructures around the world begin to think for themselves. Autonomous vehicles will bring massive economic disruption to transportation and logistics thanks to new aggregate efficiencies. Without the cost of having a human at the wheel, autonomous cars could achieve a shared cost per mile below that of owned vehicles by as early as 2030, according to research from financial services company Morgan Stanley.

The transition is getting a push from governments pledging to give up their addiction to cars powered by combustion engines. Great Britain, France, India, and Norway are seeking to go all electric as early as 2025 and by 2040 at the latest.

The Final Piece of the Transition

Considering that automobiles account for 47% of petroleum consumption in the United States alone—more than twice the amount used for generators and heating for homes and businesses, according to the U.S. Energy Information Administration—Rifkin argues that the shift to autonomous electric vehicles could provide the momentum needed to upend the final pillar of the economic platform: energy. Though energy has gone through three major disruptions over the past 150 years, from coal to oil to natural gas—each causing massive teardowns and rebuilds of infrastructure—the underlying economic model has remained constant: highly concentrated and easily accessible fossil fuels and highly centralized, vertically integrated, and enormous (and enormously powerful) energy and utility companies.

Now, according to Rifkin, the “Third Industrial Revolution Internet of Things infrastructure” is on course to disrupt all of it. It’s neither centralized nor vertically integrated; instead, it’s distributed and networked. And that fits perfectly with the commercial evolution of two energy sources that, until the efficiencies of the IoT came along, made no sense for large-scale energy production: the sun and the wind.

But the IoT gives power utilities the means to harness these batches together and to account for variable energy flows. Sensors on solar panels and wind turbines, along with intelligent meters and a smart grid based on the internet, manage a new, two-way flow of energy to and from the grid.

Today, fossil fuel–based power plants need to kick in extra energy if insufficient energy is collected from the sun and wind. But industrial-strength batteries and hydrogen fuel cells are beginning to take their place by storing large reservoirs of reserve power for rainy or windless days. In addition, electric vehicles will be able to send some of their stored energy to the digitalized energy internet during peak use. Demand for ever-more efficient cell phone and vehicle batteries is helping push the evolution of batteries along, but batteries will need to get a lot better if renewables are to completely replace fossil fuel energy generation.

Meanwhile, silicon-based solar cells have not yet approached their limits of efficiency. They have their own version of computing’s Moore’s Law called Swanson’s Law. According to data from research company Bloomberg New Energy Finance (BNEF), Swanson’s Law means that for each doubling of global solar panel manufacturing capacity, the price falls by 28%, from $76 per watt in 1977 to $0.41 in 2016. (Wind power is on a similar plunging exponential cost curve, according to data from the U.S. Department of Energy.)

Thanks to the plummeting solar price, by 2028, the cost of building and operating new sun-based generation capacity will drop below the cost of running existing fossil power plants, according to BNEF. “One of the surprising things in this year’s forecast,” says Seb Henbest, lead author of BNEF’s annual long-term forecast, the New Energy Outlook, “is that the crossover points in the economics of new and old technologies are happening much sooner than we thought last year … and those were all happening a bit sooner than we thought the year before. There’s this sense that it’s not some distant risk or distant opportunity. A lot of these realities are rushing toward us.”

The conclusion, he says, is irrefutable. “We can see the data and when we map that forward with conservative assumptions, these technologies just get cheaper than everything else.”

The smart money, then—72% of total new power generation capacity investment worldwide by 2040—will go to renewable energy, according to BNEF. The firm’s research also suggests that there’s more room in Swanson’s Law along the way, with solar prices expected to drop another 66% by 2040.

Another factor could push the economic shift to renewables even faster. Just as computers transitioned from being strictly corporate infrastructure to becoming consumer products with the invention of the PC in the 1980s, ultimately causing a dramatic increase in corporate IT investments, energy generation has also made the transition to the consumer side.

Thanks to future tech media star Elon Musk, consumers can go to his Tesla Energy company website and order tempered glass solar panels that look like chic, designer versions of old-fashioned roof shingles. Models that look like slate or a curved, terracotta-colored, ceramic-style glass that will make roofs look like those of Tuscan country villas, are promised soon. Consumers can also buy a sleek-looking battery called a Powerwall to store energy from the roof.

The combination of solar panels, batteries, and smart meters transforms homeowners from passive consumers of energy into active producers and traders who can choose to take energy from the grid during off-peak hours, when some utilities offer discounts, and sell energy back to the grid during periods when prices are higher. And new blockchain applications promise to accelerate the shift to an energy market that is laterally integrated rather than vertically integrated as it is now. Consumers like their newfound sense of control, according to Henbest. “Energy’s never been an interesting consumer decision before and suddenly it is,” he says.

As the price of solar equipment continues to drop, homes, offices, and factories will become like nodes on a computer network. And if promising new solar cell technologies, such as organic polymers, small molecules, and inorganic compounds, supplant silicon, which is not nearly as efficient with sunlight as it is with ones and zeroes, solar receivers could become embedded into windows and building compounds. Solar production could move off the roof and become integrated into the external facades of homes and office buildings, making nearly every edifice in town a node.

The big question, of course, is how quickly those nodes will become linked together—if, say doubters, they become linked at all. As we learned from Metcalfe’s Law, the value of a network is proportional to its number of connected users.

The Will Determines the Way

Right now, the network is limited. Wind and solar account for just 5% of global energy production today, according to Bloomberg.

But, says Rifkin, technology exists that could enable the network to grow exponentially. We are seeing the beginnings of a digital energy network, which uses a combination of the IoT, Big Data, analytics, and artificial intelligence to manage distributed energy sources, such as solar and wind power from homes and businesses.

As nodes on this network, consumers and businesses could take a more active role in energy production, management, and efficiency, according to Rifkin. Utilities, in turn, could transition from simply transmitting power and maintaining power plants and lines to managing the flow to and from many different energy nodes; selling and maintaining smart home energy management products; and monitoring and maintaining solar panels and wind turbines. By analyzing energy use in the network, utilities could create algorithms that automatically smooth the flow of renewables. Consumers and businesses, meanwhile, would not have to worry about connecting their wind and solar assets to the grid and keeping them up and running; utilities could take on those tasks more efficiently.

Already in Germany, two utility companies, E.ON and RWE, have each split their businesses into legacy fossil and nuclear fuel companies and new services companies based on distributed generation from renewables, new technologies, and digitalization.

The reason is simple: it’s about survival. As fossil fuel generation winds down, the utilities need a new business model to make up for lost revenue. Due to Germany’s population density, “the utilities realize that they won’t ever have access to enough land to scale renewables themselves,” says Rifkin. “So they are starting service companies to link together all the different communities that are building solar and wind and are managing energy flows for them and for their customers, doing their analytics, and managing their Big Data. That’s how they will make more money while selling less energy in the future.”

The digital energy internet is already starting out in pockets and at different levels of intensity around the world, depending on a combination of citizen support, utility company investments, governmental power, and economic incentives.

China and some countries within the EU, such as Germany and France, are the most likely leaders in the transition toward a renewable, energy-based infrastructure because they have been able to align the government and private sectors in long-term energy planning. In the EU for example, wind has already overtaken coal as the second largest form of power capacity behind natural gas, according to an article in The Guardian newspaper. Indeed, Rifkin has been working with China, the EU, and governments, communities, and utilities in Northern France, the Netherlands, and Luxembourg to begin building these new internets.

Hauts-de-France, a region that borders the English Channel and Belgium and has one of the highest poverty rates in France, enlisted Rifkin to develop a plan to lift it out of its downward spiral of shuttered factories and abandoned coal mines. In collaboration with a diverse group of CEOs, politicians, teachers, scientists, and others, it developed Rev3, a plan to put people to work building a renewable energy network, according to an article in Vice.

Today, more than 1,000 Rev3 projects are underway, encompassing everything from residential windmills made from local linen to a fully electric car–sharing system. Rev3 has received financial support from the European Investment Bank and a handful of private investment funds, and startups have benefited from crowdfunding mechanisms sponsored by Rev3. Today, 90% of new energy in the region is renewable and 1,500 new jobs have been created in the wind energy sector alone.

Meanwhile, thanks in part to generous government financial support, Germany is already producing 35% of its energy from renewables, according to an article in The Independent, and there is near unanimous citizen support (95%, according to a recent government poll) for its expansion.

If renewables are to move forward …, it must come from the ability to make green, not act green.

If renewable energy is to move forward in other areas of the world that don’t enjoy such strong economic and political support, however, it must come from the ability to make green, not act green.

Not everyone agrees that renewables will produce cost savings sufficient to cause widespread cost disruption anytime soon. A recent forecast by the U.S. Energy Information Administration predicts that in 2040, oil, natural gas, and coal will still be the planet’s major electricity producers, powering 77% of worldwide production, while renewables such as wind, solar, and biofuels will account for just 15%.

Skeptics also say that renewables’ complex management needs, combined with the need to store reserve power, will make them less economical than fossil fuels through at least 2035. “All advanced economies demand full-time electricity,” Benjamin Sporton, chief executive officer of the World Coal Association told Bloomberg. “Wind and solar can only generate part-time, intermittent electricity. While some renewable technologies have achieved significant cost reductions in recent years, it’s important to look at total system costs.”

On the other hand, there are many areas of the world where distributed, decentralized, renewable power generation already makes more sense than a centralized fossil fuel–powered grid. More than 20% of Indians in far flung areas of the country have no access to power today, according to an article in The Guardian. Locally owned and managed solar and wind farms are the most economical way forward. The same is true in other developing countries, such as Afghanistan, where rugged terrain, war, and tribal territorialism make a centralized grid an easy target, and mountainous Costa Rica, where strong winds and rivers have pushed the country to near 100% renewable energy, according to The Guardian.

The Light and the Darknet

Even if all the different IoT-enabled economic platforms become financially advantageous, there is another concern that could disrupt progress and potentially cause widespread disaster once the new platforms are up and running: hacking. Poorly secured IoT sensors have allowed hackers to take over everything from Wi-Fi enabled Barbie dolls to Jeep Cherokees, according to an article in Wired magazine.

Humans may be lousy drivers, but at least we can’t be hacked (yet). And while the grid may be prone to outages, it is tightly controlled, has few access points for hackers, and is physically separated from the Wild West of the internet.

If our transportation and energy networks join the fray, however, every sensor, from those in the steering system on vehicles to grid-connected toasters, becomes as vulnerable as a credit card number. Fake news and election hacking are bad enough, but what about fake drivers or fake energy? Now we’re talking dangerous disruptions and putting millions of people in harm’s way.

The only answer, according to Rifkin, is for businesses and governments to start taking the hacking threat much more seriously than they do today and to begin pouring money into research and technologies for making the internet less vulnerable. That means establishing “a fully distributed, redundant, and resilient digital infrastructure less vulnerable to the kind of disruptions experienced by Second Industrial Revolution–centralized communication systems and power grids that are increasingly subject to climate change, disasters, cybercrime, and cyberterrorism,” he says. “The ability of neighborhoods and communities to go off centralized grids during crises and re-aggregate in locally decentralized networks is the key to advancing societal security in the digital era,” he adds.

Start Looking Ahead

Until today, digital transformation has come mainly through the networking and communications efficiencies made possible by the internet. Airbnb thrives because web communications make it possible to create virtual trust markets that allow people to feel safe about swapping their most private spaces with one another.

But now these same efficiencies are coming to two other areas that have never been considered core to business strategy. That’s why businesses need to begin managing energy and transportation as key elements of their digital transformation portfolios.

Microsoft, for example, formed a senior energy team to develop an energy strategy to mitigate risk from fluctuating energy prices and increasing demands from customers to reduce carbon emissions, according to an article in Harvard Business Review. “Energy has become a C-suite issue,” Rob Bernard, Microsoft’s top environmental and sustainability executive told the magazine. “The CFO and president are now actively involved in our energy road map.”

As Daimler’s experience shows, driverless vehicles will push autonomous transportation and automated logistics up the strategic agenda within the next few years. Boston Consulting Group predicts that the driverless vehicle market will hit $42 billion by 2025. If that happens, it could have a lateral impact across many industries, from insurance to healthcare to the military.

Businesses must start planning now. “There’s always a period when businesses have to live in the new and the old worlds at the same time,” says Rifkin. “So businesses need to be considering new business models and structures now while continuing to operate their existing models.”

He worries that many businesses will be left behind if their communications, energy, and transportation infrastructures don’t evolve. Companies that still rely on fossil fuels for powering traditional transportation and logistics could be at a major competitive disadvantage to those that have moved to the new, IoT-based energy and transportation infrastructures.

Germany, for example, has set a target of 80% renewables for gross power consumption by 2050, according to The Independent. If the cost advantages of renewables bear out, German businesses, which are already the world’s third-largest exporters behind China and the United States, could have a major competitive advantage.

“How would a second industrial revolution society or country compete with one that has energy at zero marginal cost and driverless vehicles?” asks Rifkin. “It can’t be done.” D!


About the Authors

Maurizio Cattaneo is Director, Delivery Execution, Energy and Natural Resources, at SAP.

Joerg Ferchow is Senior Utilities Expert and Design Thinking Coach, Digital Transformation, at SAP.

Daniel Wellers is Digital Futures Lead, Global Marketing, at SAP.

Christopher Koch is Editorial Director, SAP Center for Business Insight, at SAP.


Read more thought provoking articles in the latest issue of the Digitalist Magazine, Executive Quarterly.

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IDC 2018 Predictions: If You’re Not In The Cloud, You’re Isolated From Innovation

Susan Galer

IDC Research just released its top ten 2018 predictions, outlining why every company must operate like a digital-native enterprise. Frank Gens, IDC senior vice president and chief analyst, shared an expansive to-do list for CEOs, line-of-business and IT organizations during a webinar entitled, “IDC FutureScape: Worldwide IT Industry 2018 Predictions.”  His central message was that business is rapidly entering the Cloud 2.0 phase where public cloud is the best and increasingly only platform that every company’s ecosystem will use to hyper-connect industries for accelerated digital transformation journeys with technologies like AI, machine learning, IoT, augmented reality (AR), virtual reality (VR), and blockchain.

“Companies must re-architect operations around large-scale digital innovation networks, in effect becoming a new corporate species. We’re going to see a massive jump in the number of digital services and the pace of innovation. This is the ticking clock running inside the heads of CEOs in every industry, driving them quickly along digital transformation journeys,” said Gens. “Cloud everywhere for everything is what we’re likely to see over the next several years. Companies need to assess their cloud supplier’s ability to support an expanding range of use cases. If you’re not in the cloud, you’re isolated from innovation.”

These are IDC’s top ten 2018 IT predictions:

  1. By 2021, at least 50 percent of global GDP will be digitized, with growth driven by digitally-enhanced offerings, operations and relationships. By 2020, investors will use platform/ecosystem, data value, and customer engagement metrics as valuation factors for all enterprises.
  1. By 2020, 60 percent of all enterprises will have fully articulated an organization-wide digital transformation strategy, and will be in the process of implementing that strategy as the new IT core for competing in the digital economy.
  1. By 2021, spend on cloud services and cloud enabling hardware, software and services doubles to over $530 billion, leveraging the diversifying cloud environment that is 20 percent at the edge, over 15 percent specialized compute, and over 90 percent multi-cloud.
  1. By 2019, 40 percent of digital transformation initiatives will use AI services; by 2021, 75 percent of commercial enterprise apps will use AI, over 90 percent consumers interact with customer support bots, and over 50 percent of new industrial robots will leverage AI.
  1. By 2021, enterprise apps will shift toward hyper-agile architectures, with 80 percent of application development on cloud platforms using microservices and functions, and over 95 percent of new microservices deployed in containers.
  1. By 2020, human-digital (HD) interfaces will diversify, as 25 percent of field-service techs and over 25 percent of info-workers use AR, nearly 50 percent of new mobile apps use voice as a primary interface, and 50 percent of consumer-facing Global 2000 companies use biometric sensors to personalize experiences.
  1. By 2021, at least 25 percent of Global 2000 companies will use blockchain services as a foundation for digital trust at scale; by 2020, 25 percent of top global transaction banks, nearly 30 percent manufacturers and retailers, and 20 percent of healthcare organizations will use blockchain networks in production.
  1. By 2020, 90 percent of large enterprises will generate revenue from data-as-a-service, selling raw data, derived metrics, insights, and recommendations — up from nearly 50 percent in 2017.
  1. Improvements in simple (“low-/no-code”) development tools will dramatically expand the number of non-tech developers over the next 36 months; by 2021, these non-traditional tech developers will build 20 percent of business applications and 30 percent new application features (60 percent by 2027).
  1. By 2021, more than half of Global 2000 companies will see an average one-third of their digital services interactions come through their open API ecosystems, up from virtually zero percent in 2017, amplifying their digital reach far beyond own customer interactions.

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This article originally appeared on Forbes SAPVoice.

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