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IT Trends That Matter For 2016

Hu Yoshida

Each year, analysts predict some of the upcoming trends in the technology industry. Here is a look at some of the IT trends that matter for 2016, according to Hu Yoshida, chief technology officer at Hitachi Data Systems (HDS).

A greater focus on application and analytics

1. IT skills undergo transformation

To meet the challenges of IT transformation, IT must offload the grunt work that ties its staff to infrastructure management and operations and start to develop specialist skills in areas such as cloud enablement, analytics, DevOps, mobile, and business solutions. This transformation of IT skills will involve a change in culture and will require the commitment of both business and IT leaders.

2. DevOps adoption accelerates application delivery

DevOps is a software development methodology where operations and development engineers work together throughout the application cycle, resulting in high IT performance. Companies with high IT performance are twice as likely to exceed their profitability, market share, and productivity goals.

3. Data warehouses transition into data lakes

Big Data analytics involves the processing of large amounts of heterogeneous data derived from multiple sources and across multiple knowledge domains. Data lakes enable this by bringing together data sources in their original state which can then be analyzed by applications that are brought to the data. They must also be able to incorporate existing data warehouses to leverage the investments that have already been made.

4. IT takes control of provisioning analytics platforms

Business leaders will look to IT to make investments in analytics platforms, acknowledging the fact that IT has a better understanding of security, data privacy, integration, and the service level requirements of the business. This will reverse the shadow IT trend of business units acquiring their own analytics platforms and tools and creating their own data silos.

Infrastructure technologies drive efficiencies

5. Converged solutions replace reference architectures

Instead of providing reference architectures detailing best practices for application enablement, vendors will begin to deliver these best practices as templates implemented through converged solutions. The converged infrastructure offers a more evolved platform for deriving greater cost efficiencies and time savings by allowing IT resources to be managed more cohesively.

6. In-memory databases gain traction

The move to in-memory databases will gather momentum as faster reporting and analysis deliver a clear competitive advantage in today’s real-time business environment. Developments such as the consolidation of SAP’s business suite onto the HANA in-memory database with S/4 HANA, and the emergence of converged solutions and cloud service providers, will help simplify IT and facilitate this migration.

7. Flash devices begin to replace high-performance disks

The availability of multi-terabyte flash devices will enable flash to compete with high-performance 15K RPM disk drives on a capacity-cost basis. As a result, the majority of storage systems delivered in 2016 will contain a percentage of flash to boost response times and reduce the cost of managing storage performance.

IT leadership drives innovation

8. Businesses prepare for next-gen cloud

According to a study by The Economist, some of the best practices that will help business leaders make the most of their cloud opportunities include improving supplier selection; choosing the right cloud service for the right task; making better use of integrators to connect cloud services to existing IT infrastructure; and considering factors such as cloud’s potential to improve business operations and boost employee efficiency.

9. IT infrastructure companies will be disrupted

As IT begins to focus more on application delivery, analytics, and the Internet of Things, pure-play infrastructure companies will try to cope with declining revenues by splitting off some parts of their business, acquiring new infrastructure companies, or merging with other infrastructure companies to drive economies of scale. However, in the longer term, they will have to be able to integrate IT with operational technology to deliver solutions around the Internet of Things that matter, in areas such as public safety, transportation, health, and life sciences.

10. IT plays leadership role in the 3rd Platform

IT will play a more proactive role in leading businesses through the transformation driven by social, mobile, analytics, and cloud, collectively known as the 3rd Platform. Contrary to the view that IT no longer plays a dominant role in driving enterprise technology spending, we believe that the compelling value of IT lies in its ability to implement 3rd Platform technologies in accordance with corporate requirements for security, data protection, availability, and collaboration. If IT does not step up to this leadership role, the result will be silos of information and duplication of processes that will inhibit business growth.

Please view the webinar discussing the top 10 IT trends that I see for 2016. This piece features insights from Greg Knieriemen, our technical evangelist, and Adrian Deluca, our Asia Pacific CTO. Greg and Adrian added their own perspectives on these trends. I would also like to hear your views. As you will see, I am expecting a major transformation to happen in IT and in the vendor community.

For an in-depth look at the multiple factors driving digital transformation, download the SAP eBook, Digital Disruption: How Digital Technology is Transforming Our World.

For more information on how the digital age is affecting business, download the SAP eBook, The Digital Economy: Reinventing the Business World.

The article originally appeared on Hitachi Data Systems Community and is republished with the author’s permission.

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Hu Yoshida

About Hu Yoshida

Hu Yoshida is responsible for defining the technical direction of Hitachi Data Systems. Currently, he leads the company's effort to help customers address data life cycle requirements and resolve compliance, governance and operational risk issues. He was instrumental in evangelizing the unique Hitachi approach to storage virtualization, which leveraged existing storage services within Hitachi Universal Storage Platform® and extended it to externally-attached, heterogeneous storage systems. Yoshida is well-known within the storage industry, and his blog has ranked among the "top 10 most influential" within the storage industry as evaluated by Network World. In October of 2006, Byte and Switch named him one of Storage Networking’s Heaviest Hitters and in 2013 he was named one of the "Ten Most Impactful Tech Leaders" by Information Week.

Consumer-Driven Digital Enterprise: The Digital Future Of Consumer Products

Jim Cook

Across industries, there’s a lot of talk about how digital is rewriting the rules of engagement.

We are shown examples of how digital disruption is impacting almost every aspect of businesses – from reinventing business models to transforming business processes. Re-imagining a business platform is almost a requirement in today’s consumer-led and data-driven economy. (You know the businesses that are quoted in every article on digital.)

A key question here, though, is: whether the consumer products industry is indeed facing digital disruption, or does it really need deeper digital innovation? Disruption turns an industry on its head by offering consumers something that previously did not exist, while innovation enhances an existing value proposition – making it better, faster, or cheaper.

It is important to distinguish between the two, because hype often causes businesses to overlook the true value of digital transformation. Companies may presume such radical changes have nothing to do with them, especially if they are already in a dominant market position. So while digital is dramatically changing industries such as retail and healthcare, the disruption in the consumer product industry may not be as severe – not yet anyway. Instead, what consumer products businesses should focus on is how they can transform digitally to gain the capacity to build and grow “live brands.” This is preparation and not protectionism.

Create direct customer experiences: Secure the dominant market position

The digital age has fundamentally shifted customer and consumer expectations. Consumers increasingly value outcomes over products. To build ongoing engagement and loyalty, consumer products companies need to sense and engage consumers and customers in the moment, i.e. build “live brands” by seamlessly delivering highly personalized experiences – anytime, anywhere.

This ability to create direct customer experiences helps consumer products companies create a sharper competitive edge to secure dominant market positions. Leading consumer products companies know this well.

Red Bull sets a fine example in creating direct customer experiences to protect and strengthen its brand. Today, it has moved beyond a beverage company into a content media company spanning web, social, film, print, music, and TV – creating brand experiences of exhilaration and adventure. Red Bull collects data from every touch point that it has with the consumer, building an enhanced profile of every individual so that it can respond with products that consumers desire – whenever and how they want them.

Procter & Gamble recently launched an online, direct-to-consumer subscription business for its Tide Pods (its highest-priced laundry detergent). The service (currently only available in Atlanta), branded Tide On Demand, offers free shipping of Tide Pods at regular intervals. P&G has also been testing its delivery laundry service – Tide Spin – in Chicago. While the direct-to-consumer services may not form a bulk of its revenue, they allow P&G to quickly build a live understanding of its customers, their preferences and habits, and then hone in on these insights to create new offerings that customers want.

Build a real-time supply chain: Support lasting customer loyalty

As consumer products companies move towards sensing and engaging customers in the moment, they also need to ensure a fast and profitable response to dynamic demand.

This necessitates connecting customer insights that brand owners have collated and analyzed with supply chain insights to accelerate time to market. Ultimately, it is about transforming previously linear supply chains into customer-centric demand networks – where demand information is captured through new signals from various sources (such as retailers, wholesalers, sites like Amazon, directly from customers, or the Internet of Things) and fulfilled through the orchestration of a network of internal and external partners.

With that, consumer product companies can start getting answers to questions such as:

  • What are my short-, mid-, and long-term views of expected demand across channels?
  • How can I combine supply chain planning with strategic, financial, sales, and operational goals?
  • How can I extend planning by collaborating with customers, partners, and suppliers?
  • How can the company translate the plan into actionable targets for fulfillment systems?

All these should go full circle to help make manufacturing more responsive, optimizing capacity to help ensure availability of finished goods produced just-in-time to meet demand, thereby also lowering inventory costs.

Consumer products companies need to consider how they can create the digital future today. We invite you to learn more about digital transformation for the consumer products industry, where you will get access to valuable resources including whitepapers and customer case studies.

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Jim Cook

About Jim Cook

Jim Cook is the Industry Advisor for consumer industries in South East Asia, with over 20 years’ experience of IT and business consulting. He has held various roles from solution architect, project and program management, business development as well as managing an SAP partner organisation. Jim is passionate about transformation within consumer driven organisations. Jim is particular interested in customer engagement solutions and the value that can be achieved from end to end SAP deployments.

Live Product Innovation, Part 2: IoT, Big Data, and Smart Connected Products

John McNiff

In Part 1 of this series, we looked at how in-memory computing affects live product innovation. In Part 2, we explore the impact of the Internet of Things (IoT) and Big Data on smart connected products. In Part 3, we’ll approach the topic from the perspective of process industries.

Live engineering? Live product innovation? Live R&D?

To some people, these concepts sound implausible. When you talk about individualized product launches with lifecycles of days or weeks, people in industries like aerospace and defense (A&D) look askance.

But today, most industries—not just consumer-driven ones—need timely insights and the ability to respond quickly. Even A&D manufacturers want to understand the impact of changes before they continue with designs that could be difficult to make at the right quantity or prone to problems in the field.

The Internet of Everything?

Internet of Things (IoT) technologies promise to give manufacturers these insights. But there’s still a lot of confusion around IoT. Some people think it is about connected appliances; others think it’s just a rebranded “shop floor to top floor.”

The better way to think about IoT is from the perspective of data: We want to get data from the connected “thing.” If you’re the manufacturer, that thing is a product. If you buy the product and sell it to an end customer, that thing is an asset. If you’re the end customer, that thing is a fleet. Each stakeholder wants different data in different volumes for different reasons.

It’s also important to remember that the Internet has existed for far longer than IoT.

There’s a huge amount of non-IoT data that can offer useful insights. Point-of-sale data, news feeds, and market insights from social channels are all valuable. And think about how much infrastructure is now connected in “smart” cities. So in addition to products, assets, and fleets, there are also people, markets, and infrastructure. Big Data is everywhere, and it should influence what you release and when.

New data, new processes

It has been said that data in the 21st century is like oil in the 18th century: an immense, valuable, yet untapped asset. But if data is the new oil, then do we need a new refinery? The answer is yes.

On top of business data, we now have a plethora of information sources outside our company walls. Ownership of, and access to, this data is becoming complex. Manufacturers collecting data about equipment at customer sites, for example, may want to sell that data to customers as an add-on service. But those customers are likely using equipment from multiple manufacturers, and they likely have their own unique uses for the information.

So the new information refinery needs to capture information from everywhere and turn it into something that has meaning for the end user. It needs to leverage data science and machine learning to remove the noise and add insight and intelligence. It also needs to be an open platform to gather information from all six sources (products, assets, fleets, people, markets, infrastructure).

And wouldn’t it be great if the data refinery ran on the same platform as your business processes, so that you could sense, respond, and act to achieve your business goals?

Digital product innovation platform

If you start with the concept of a smart connected product, the data refinery — the digital product innovation platform — has five requirements:

  1. Systems design — Manufacturers need to design across disciplines in a systems approach. Mechanical, mechatronic, electrical, electronics, and software all need to be supported, with modeling capabilities that cover physical, functional, and logical structures.
  1. Requirements-linked platform design — Designers need to think about where and how to embed sensors and intelligence to match functional requirements. This will need to be forward-thinking to cover unforeseen methods of machine-to-machine interactions. In a world of performance-based contracts, it will be important to minimize the impact of design changes as innovation opportunities grow.
  1. Instant impact and insight environment — The platform must support fully traceable requirements throughout the lifecycle, from design concept to asset performance.
  1. Product-based enterprise processes — The platform needs to share model-based product data visually — through electrical CAD, electronic CAD, 3D, and software functions — to the people who need it. This isn’t new, but what’s different is that the platform can’t wait for complex integrations between systems. Think about software-enabled innovation or virtual inventory made possible by on-demand 3D printing. Production is almost real time, so design will have to be as well.
  1. Product and thing network — A complex, cross-domain design process involves a growing number of partners. That calls for a product network to allow for secure collaboration across functions and outside the company walls. Instead of every partner having its own portal for product data, the product network would store digital twins and allow instant sharing of asset intelligence.

If the network is connected to the digital product innovation platform, you can control the lifecycle both internally and externally — and take the product right into the service and maintenance domain. You can then provide field information directly from the assets back to design to inform what to update, and when. Add over-the-air software compatibility checks and updates, and discrete manufacturers can achieve a true live engineering environment.

Sound like a dream? It’s coming sooner than you think.

Learn more about supply chain innovations at SAP.com or follow us on @SCMatSAP for the latest news.

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John McNiff

About John McNiff

John McNiff is the Vice President of Solution Management for the R&D/Engineering line-of-business business unit at SAP. John has held a number of sales and business development roles at SAP, focused on the manufacturing and engineering topics.

How Emotionally Aware Computing Can Bring Happiness to Your Organization

Christopher Koch


Do you feel me?

Just as once-novel voice recognition technology is now a ubiquitous part of human–machine relationships, so too could mood recognition technology (aka “affective computing”) soon pervade digital interactions.

Through the application of machine learning, Big Data inputs, image recognition, sensors, and in some cases robotics, artificially intelligent systems hunt for affective clues: widened eyes, quickened speech, and crossed arms, as well as heart rate or skin changes.




Emotions are big business

The global affective computing market is estimated to grow from just over US$9.3 billion a year in 2015 to more than $42.5 billion by 2020.

Source: “Affective Computing Market 2015 – Technology, Software, Hardware, Vertical, & Regional Forecasts to 2020 for the $42 Billion Industry” (Research and Markets, 2015)

Customer experience is the sweet spot

Forrester found that emotion was the number-one factor in determining customer loyalty in 17 out of the 18 industries it surveyed – far more important than the ease or effectiveness of customers’ interactions with a company.


Source: “You Can’t Afford to Overlook Your Customers’ Emotional Experience” (Forrester, 2015)


Humana gets an emotional clue

Source: “Artificial Intelligence Helps Humana Avoid Call Center Meltdowns” (The Wall Street Journal, October 27, 2016)

Insurer Humana uses artificial intelligence software that can detect conversational cues to guide call-center workers through difficult customer calls. The system recognizes that a steady rise in the pitch of a customer’s voice or instances of agent and customer talking over one another are causes for concern.

The system has led to hard results: Humana says it has seen an 28% improvement in customer satisfaction, a 63% improvement in agent engagement, and a 6% improvement in first-contact resolution.


Spread happiness across the organization

Source: “Happiness and Productivity” (University of Warwick, February 10, 2014)

Employers could monitor employee moods to make organizational adjustments that increase productivity, effectiveness, and satisfaction. Happy employees are around 12% more productive.




Walking on emotional eggshells

Whether customers and employees will be comfortable having their emotions logged and broadcast by companies is an open question. Customers may find some uses of affective computing creepy or, worse, predatory. Be sure to get their permission.


Other limiting factors

The availability of the data required to infer a person’s emotional state is still limited. Further, it can be difficult to capture all the physical cues that may be relevant to an interaction, such as facial expression, tone of voice, or posture.



Get a head start


Discover the data

Companies should determine what inferences about mental states they want the system to make and how accurately those inferences can be made using the inputs available.


Work with IT

Involve IT and engineering groups to figure out the challenges of integrating with existing systems for collecting, assimilating, and analyzing large volumes of emotional data.


Consider the complexity

Some emotions may be more difficult to discern or respond to. Context is also key. An emotionally aware machine would need to respond differently to frustration in a user in an educational setting than to frustration in a user in a vehicle.

 


 

download arrowTo learn more about how affective computing can help your organization, read the feature story Empathy: The Killer App for Artificial Intelligence.


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Christopher Koch

About Christopher Koch

Christopher Koch is the Editorial Director of the SAP Center for Business Insight. He is an experienced publishing professional, researcher, editor, and writer in business, technology, and B2B marketing. Share your thoughts with Chris on Twitter @Ckochster.

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What Will The Internet Of Things Look Like In 2027? 7 Predictions

Tom Raftery

Recently I was asked: Where do you see the Internet of Things in 10 years?

It is an interesting question to ponder. To frame it properly, it helps to think back to what the world was like 10 years ago and how far we have come since then.
iPhone launch 2007

Ten years ago, in 2007 Apple launched the iPhone. This was the first real smartphone, and it changed completely how we interact with information.

And if you think back to that first iPhone—with its 2.5G connectivity, lack of front-facing camera, and 3.5-inch diagonal 163ppi screen—and compare it to today’s iPhones, that is the level of change we are talking about in 10 years.

In 2027 the term Internet of Things will be redundant. Just as we no longer say Internet-connected smartphone or interactive website because the connectedness and interactivity are now a given, in 10 years all the things will be connected and the term Internet of Things will be superfluous.

While the term may become meaningless, however, that is only because the technologies will be pervasive—and that will change everything.

With significant progress in low-cost connectivity, sensors, cloud-based services, and analytics, in 10 years we will see the following trends and developments:

  • Connected agriculture will move to vertical and in-vitro food production. This will enable higher yields from crops, lower inputs required to produce them, including a significantly reduced land footprint, and the return of unused farmland to increase biodiversity and carbon sequestration in forests
  • Connected transportation will enable tremendous efficiencies and safety improvements as we transition to predictive maintenance of transportation fleets, vehicles become autonomous and vehicle-to-vehicle communication protocols become the norm, and insurance premiums start to favor autonomous driving modes (Tesla cars have 40% fewer crashes when in autopilot mode, according to the NHTSA)
  • Connected healthcare will move from reactive to predictive, with sensors alerting patients and providers of irregularities before significant incidents occur, and the ability to schedule and 3D-print “spare parts”
  • Connected manufacturing will transition to manufacturing as a service, with distributed manufacturing (3D printing) enabling mass customization, with batch sizes of one very much the norm
  • Connected energy, with the sources of demand able to “listen” to supply signals from generators, will move to a system in which demand more closely matches supply (with cheaper storage, low carbon generation, and end-to-end connectivity). This will stabilise the the grid and eliminate the fluctuations introduced by increasing the percentage of variable generators (such as solar and wind) in the system, thereby reducing electricity generation’s carbon footprint
  • Human-computer interfaces will migrate from today’s text- and touch-based systems toward augmented and mixed reality (AR and MR) systems, with voice- and gesture-enabled UIs
  • Finally, we will see the rise of vast business networks. These networks will act like automated B2B marketplaces, facilitating information-sharing among partners, empowering workers with greater contextual knowledge, and augmenting business processes with enhanced information

IoT advancements will also improve and enhance many other areas of our lives and businesses—logistics with complete tracking and traceability all the way through the supply chain is another example of many.

We are only starting our IoT journey. The dramatic advances we’ve seen since the introduction of the smartphone—such as Apple’s open-sourced ResearchKit being used to monitor the health of pregnant women—foretell innovations and advancements that we can only start to imagine. The increasing pace of innovation, falling component prices, and powerful networking capabilities reinforce this bright future, even if we no longer use the term Internet of Things.

For a shorter-term view of the IoT, see 20 Technology Predictions To Keep Your Eye On In 2017.

Photo: Garry Knight on Flickr

Originally posted on my TomRaftery.com blog

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Tom Raftery

About Tom Raftery

Tom Raftery is VP and Global Internet of Things Evangelist for SAP. Previously Tom worked as an independent analyst focussing on the Internet of Things, Energy and CleanTech. Tom has a very strong background in social media, is the former co-founder of a software firm and is co-founder and director of hyper energy-efficient data center Cork Internet eXchange. More recently, Tom worked as an Industry Analyst for RedMonk, leading their GreenMonk practice for 7 years.