Top Five Big Data Challenges For CIOs

Daniel Newman

Big Data is more than just a buzzword these days – but it can be both a massive opportunity and a huge problem for companies. Digital data collection has been a practice since the dawn of computing, but the exponential increase of information, in terms of smartphones, social, search, and the Internet of Things, have created a snowball effect when it comes to the data that’s generated, collected, and stored. What’s that mean? It means lots of possibilities for smarter products and services, smarter marketing, and smarter business practices. It means 88% of executives say Big Data is a top priority for their company. But it also means lots of challenges are coming their way.

The amount of data we create each year creates a staggering set of problems for those who are in charge of managing it. Thankfully, we’re no longer in an era where one person has all the collective responsibility for an organization’s data. That said, the CIO is most often tasked with developing systems of record that can leverage tech to drive better business processes.

We know CIOs face innumerable challenges when it comes to Big Data, but what are the biggest Big Data challenges for CIOs in 2016? Let’s break down.

  1. Collection. The challenge with collection doesn’t have to be the obvious one (how do we collect it)? What if, as Clorox’s CIO Manjit Singh discussed in an interview on the very subject, it was something more high level, like “how to get insight out of the data – what questions to ask and how to use the data to predict results in the business?” Singh is right. CIOs should ask themselves what data is important to collect from a business case standpoint? What data isn’t? How is it decided? CIOs can start by looking at Big Data collection from a big picture perspective.
  1. Storage. Logic states that Big Data requires some big attention to storage, and it’s the truth. Besides the sheer volume requirements of all those bytes, certain data also needs to be available on demand at any time. This can be for operations purposes or compliance. Even though storage is more available than ever, it isn’t all created equal. CIOs should examine infrastructure and cloud options thoroughly before any checks are signed. Purchasing too much is wasting money, but too little could mean crashes and costly downtime.
  1. Organization and management. To make data useful, it needs to not just be stored and accessible but organized in some way that makes it easy to find and easy to pull. That way, data scientists and other users can locate, analyze, and apply the information in a way that is both efficient and measurable.
  1. Conversion. With companies turning to more and more chief data officers, architects, and analysts, it is critical that business intelligence tools are readily available these individuals. While they may be involved in selecting the tools for creating business intelligence, the CIO needs to have systems in place – systems for collection, storage, organization, and management – so they can actually use them.

I’m sure I don’t have to tell you that internal infrastructure costs money, and many organizations want results from Big Data initiatives sooner rather than later. In these instances where financial and analytical expectations don’t jive – and in a ton of other Big Data situations, too – CIOs who have not yet done so should consider taking a look at cloud-based options, especially in the realm of increased operability provided by software-as-a-service (SaaS).

  1. Unstructured data growth. Big Data is more than just data produced by and for a company. Even when consumers aren’t interacting specifically with a brand – when they’re making posts on social media, uploading videos, or generating any other type of personalized content – they’re giving businesses insight into their habits, preferences, and consumer behaviors. Even when it’s not explicitly tied to their business pages or endeavors – perhaps, actually, especially when it’s not – CIOs need to develop systems to collect, store, organize, and make this valuable customer data usable for operations, sales, and marketing.

Big Data has already had a substantial impact on the way businesses operate internally, interact with consumers, and navigate their respective markets. That Big Data snowball keeps rolling, though, and even more changes are forthcoming. If you’re a CIO who can conquer the challenges above without losing sight of the opportunities success will bring, 2016 will be a great year.

See The Digital Economy Infographic to learn more about how hyperconnectivity is changing the way we live and work, how businesses operate, and how society functions.


About Daniel Newman

Daniel Newman serves as the Co-Founder and CEO of EC3, a quickly growing hosted IT and Communication service provider. Prior to this role Daniel has held several prominent leadership roles including serving as CEO of United Visual. Parent company to United Visual Systems, United Visual Productions, and United GlobalComm; a family of companies focused on Visual Communications and Audio Visual Technologies. Daniel is also widely published and active in the Social Media Community. He is the Author of Amazon Best Selling Business Book "The Millennial CEO." Daniel also Co-Founded the Global online Community 12 Most and was recognized by the Huffington Post as one of the 100 Business and Leadership Accounts to Follow on Twitter. Newman is an Adjunct Professor of Management at North Central College. He attained his undergraduate degree in Marketing at Northern Illinois University and an Executive MBA from North Central College in Naperville, IL. Newman currently resides in Aurora, Illinois with his wife (Lisa) and his two daughters (Hailey 9, Avery 5). A Chicago native all of his life, Newman is an avid golfer, a fitness fan, and a classically trained pianist



Rural Sourcing Benefits From Digital Agribusiness Solutions To Meet Global Food Needs

Tanja Reith

With the world population headed toward the 10 billion mark in the coming years, the need for healthy, sustainable and fairly produced food will increase accordingly. Rural sourcing will be integral in meeting these needs. Hyperconnectivity in business and digital transformation of agriculture processes can create a stronger operational foundation for rural sourcing. This transformation can bring affordable, sustainable agricultural production by facilitating smart, traceable solutions throughout operations from farm to fork.

Reimagining smallholder farming network management

Modern farmers are surrounded by a complex system of equipment, vendors, processors, manufacturers, and agrichemical specialists. These technologies are often new to farmers in rural areas and developing countries; however, they can assist them in becoming far greater contributors The processes involved in rural sourcing must stay in sync with increased demand and changing consumer behaviors. Smallholder farming operations can benefit immensely from food traceability and hyperconnectivity innovations. This digital transformation is set to bring agricultural production to new heights of productivity and effectiveness, with additional benefits for rural farmers.

Rural sourcing made easier with digital business solutions

Rural sourcing is an area that’s ripe for transformation through digital agriculture solutions. Current and emerging digitization processes can assist with taking rural sourcing from smallholder farmers in developing countries to new heights of viability and success. The agribusiness value chain can be effectively streamlined, improving smallholders’ lives in a range of positive ways.

For example, rural farmers will be able to connect with financial services more readily. They will have a range of opportunities that were not available to them in the past. A blend of supplier and collaborator business networks, workforce engagement, assets, and the Internet of Things (IoT) assist all of the elements of this process to work together within a digital core. While the digital core facilitates the management of all financial and contractual data, collaboration within a supplier network is also seamless throughout the entire process. Mobile advances, the cloud, and IoT all come together in innovative software solutions to manage all the crucial components of rural-sourcing digitization.

The following are some of the key areas:

  • Identify farmers and expected crop yields. Research and due diligence in a rural area are streamlined and made intuitive, accurate, and efficient.
  • Broadcast prices and plan logistics. Keeping all relevant parties abreast of pricing considerations and key processes is fully automated, as are the processes themselves.
  • Consult and train farmers. Getting rural farmers up to speed and at top efficiency is also enabled with software solutions.
  • Record quantities and qualities. Full tracking of products from farm to fork is easier than ever with digital agriculture. Both quantities and full descriptions can be included.
  • Truck loading and offloading. Hyperconnectivity of the processes involved in digital farming ensures full food traceability until it reaches its destination – and at every phase along the way.
  • Mobile data exchange/track and trace standards. Data can be exchanged rapidly while on the go and kept up to date for all parties involved. Information, correspondence, and productivity data are always readily accessible, as is key information about products that are en route.
  • Mobile and SMS payments. All financial aspects of digital farming, including SMS payments, financials, and controlling, can be effectively managed with software solutions.

Processes involving integrated sourcing for crops or commodities from rural areas assist farmers by making training and best practices available. Tracing shipments in line with area and industry standards is also supported. It all starts with a direct connection to local farmers and allows for the accurate tracking of the resultant products to ensure efficiency. Digital farming can bring it all together. Transparency of origins is improved as well as the settlement process, reducing fraud risk. The hyperconnectivity of digital farming allows for more effective food traceability, more efficient farm operations, better food safety and quality, and an overall more beneficial experience when working with the rural farmer.

With effective rural sourcing management, everyone wins

Businesses implementing digital farming can more readily and consistently provide sustainable processes and positive working conditions. Farming practices can more easily be kept in line with fair trade labels and other key standards and certifications.

Learn more about digital transformation for the agribusiness industry

Tanja Reith

About Tanja Reith

Tanja Reith is a solution manager for the Agribusiness vertical in the Industry Cloud organization at SAP. She has over 15 years of experience in solution management and go-to-market roles for enterprise software, engaging closely with customers and partners across different industries such as agribusiness, consumer products, and financial services. Tanja’s ambition is to drive shared value resulting in business value to our customers while making a social impact and improving people’s lives.

The Digital Future Of Wine

Eric Annino

The new frontier of digitization is in your mouth. Taste is no longer an elusive metric; it’s a quantifiable piece of data that can inform business decisions.

There’s even an emerging niche for software that can make these data points actionable. Vivanda, for one, has introduced unique “FlavorPrint” technology, which uses machine learning algorithms that analyze aroma, taste, and texture variables to match a consumer’s preferences with any recipe, beverage, or food product. Using this technology, Vivanda provides data-driven, context-sensitive insights to the food and beverage industries, enabling them to reach an unprecedented level of personalization for their customers.

And while there hasn’t been much talk yet about how software like Vivanda’s can revolutionize the wine industry, it’s arguably the industry that can benefit most, because wine is all about aroma, taste, and texture.

Tasting notes are ubiquitous—and at this point parodic—in wine. Marketers love them, customers depend on them, and bloggers lampoon them. But what they really boil down to is a list of words describing an individual’s perception of a particular wine. And because perception, especially in wine, is subjective, this list can get a bit out of hand.

You wouldn’t say that a piece of chicken tastes or smells like anything other than chicken. But you might say that a glass of Zinfandel tastes or smells like any or all of the following: raspberry, blackberry, boysenberry, cranberry, black cherry, briar, anise, black licorice, nettle, cinnamon, and black pepper. The level of detail in wine description is extremely fine, and a descriptor like raspberry can be further sliced into clarifications like fresh raspberry, dried raspberry, or raspberry jam. Wine descriptors go beyond the realm of the edible, too, with words and phrases like tar, wet cement, garden hose, and petroleum.

The database of words describing food may be immense, but wine’s is bigger. Accordingly, it demands powerful algorithmic technology to make it usable.

One company that’s taking a taste-targeted approach to wine is Bright Cellars. Started by two MIT graduates with a passion for wine and technology, Bright Cellars is a monthly wine subscription service that matches wine drinkers of any experience level with wines they’ll love. Subscribers take a quiz to determine their taste palate, the results of which are put through a propriety algorithm that uses 18 attributes to determine a suitable bottle of wine. After tasting the wine, subscribers give it a rating, which Bright Cellars uses to further narrow the list of bottles the subscriber might like.

It’s relatively rudimentary—essentially Pandora for wine—but it points to an emerging niche in wine. By digitizing taste, the wine industry can perhaps shed its pretentious label and empower the less informed of its consumer base to make better and more confident wine buying decisions.

To learn more about how your organization can empower customers, see The Internet Of Things And Consumer Products: Why You Must Connect Your Customer Now

This story originally appeared on SAP Business Trends.



Eric Annino

About Eric Annino

Eric Annino works for Global Corporate Affairs at SAP.

From E-Business to V-Business

Josh Waddell, Pascal Lessard, Lori Mitchell-Keller, and Fawn Fitter

Some moments are so instantly, indelibly etched into pop culture that they shape the way we think for years to come. For virtual reality (VR), that moment may have been the scene in the 1999 blockbuster The Matrix when the Keanu Reeves character Neo learns that his entire life has been a computer-generated simulation so fully realized that he could have lived it out never knowing that he was actually an inert body in an isolation tank. Ever since, that has set the benchmark for VR: as a digital experience that seems completely, convincingly real.

Today, no one is going to be unaware, Matrix-like, that they’re wearing an Oculus Rift or a Google Cardboard headset, but the virtual worlds already available to us are catching up to what we’ve imagined they could be at a startling rate. It’s been hard to miss all the Pokémon Go players bumping into one another on the street as they chased animated characters rendered in augmented reality (AR), which overlays and even blends digital artifacts seamlessly with the actual environment around us.

Believe the Hype

For all the justifiable hype about the exploding consumer market for VR and, to a lesser extent, AR, there’s surprisingly little discussion of their latent business value—and that’s a blind spot that companies and CIOs can’t afford to have. It hasn’t been that long since consumer demand for the iPhone and iPad forced companies, grumbling all the way, into finding business cases for them.

sap_Q316_digital_double_feature1_images1If digitally enhanced reality generates even half as much consumer enthusiasm as smartphones and tablets, you can expect to see a new wave of consumerization of IT as employees who have embraced VR and AR at home insist on bringing it to the workplace. This wave of consumerization could have an even greater impact than the last one. Rather than risk being blindsided for a second time, organizations would be well advised to take a proactive approach and be ready with potential business uses for VR and AR technologies by the time they invade the enterprise.

They don’t have much time to get started.

The two technologies are already making inroads in fields as diverse as medicine, warehouse operations, and retail. And make no mistake: the possibilities are breathtaking. VR can bring human eyes to locations that are difficult, dangerous, or physically impossible for the human body, while AR can deliver vast amounts of contextual information and guidance at the precise time and place they’re needed.

As consumer adoption and acceptance drives down costs, enterprise use cases for VR and AR will blossom. In fact, these technologies could potentially revolutionize the way companies communicate, manage employees, and digitize and automate operations. Yet revolution is rarely bloodless. The impact will probably alter many aspects of the workplace that we currently take for granted, and we need to think through the implications of those changes.

sap_Q316_digital_double_feature1_images2Digital Realities, Defined

VR and AR are related, but they’re not so much siblings as cousins. VR is immersive. It creates a fully realized digital environment that users experience through goggles or screens (and sometimes additional equipment that provides physical feedback) that make them feel like they’re surrounded by and interacting entirely within this created world.

AR, by contrast, is additive. It displays text or images in glasses, on a window or windshield, or inside a mirror, but the user is still aware of and interacting with reality. There is also an emerging hybrid called “mixed reality,” which is essentially AR with VR-quality digital elements, that superimposes holographic images on reality so convincingly that trying to touch them is the only way to be sure they aren’t actually there.

Although VR is a hot topic, especially in the consumer gaming world, AR has far more enterprise use cases, and several enterprise apps are already in production. In fact, industry analyst Digi-Capital forecasts that while VR companies will generate US$30 billion in revenue by 2020, AR companies will generate $120 billion, or four times as much.

Both numbers are enormous, especially given how new the VR/AR market is. As recently as 2014, it barely existed, and almost nothing available was appropriate for enterprise users. What’s more, the market is evolving so quickly that standards and industry leaders have yet to emerge. There’s no guarantee that early market entrants like Facebook’s Oculus Rift, Samsung’s Gear VR, and HTC’s Vive will continue to exist, never mind set enduring benchmarks.

Nonetheless, it’s already clear that these technologies will have a major impact on both internal and customer-facing business. They will make customer service more accurate, personalized, and relevant. They will reduce human risk and enhance public safety. They will streamline operations and smash physical boundaries. And that’s just the beginning.

Cleveland Clinic: Healing from the Next Room

Medicine is already testing the limits of learning with VR and AR.

sap_q316_digital_double_feature1_imageseightThe most potentially disruptive operational use of VR and AR could be in education and training. With VR, students can be immersed in any environment, from medieval architecture to molecular biology, in classroom groups or on demand, to better understand what they’re studying. And no industry is pursuing this with more enthusiasm than medicine. Even though Google Glass hasn’t been widely adopted elsewhere, for example, it’s been a big success story in the medical world.

Pamela Davis, MD, senior vice president for medical affairs at Case Western Reserve University in Cleveland, Ohio, is one of the leading proponents of medical education using VR and AR. She’s the dean of the university’s medical school, which is working with Cleveland Clinic to develop the Microsoft HoloLens “mixed reality” device for medical education and training, turning MRIs and other conventional 2D medical images into 3D images that can be projected at the site of a procedure for training and guidance during surgery. “As you push a catheter into the heart or place a deep brain stimulation electrode, you can see where you want to be and guide your actions by watching the hologram,” Davis explains.

The HoloLens can also be programmed as a “lead” device that transmits those images and live video to other “learner” devices, allowing the person wearing the lead device to provide oversight and input. This will enable a single doctor to demonstrate a delicate procedure up-close to multiple students at once, or do patient examinations remotely in an emergency or epidemic.

Davis herself was convinced of the technology’s broader potential during a demonstration in which she put on a learner HoloLens and rewired a light switch, something decidedly outside her expertise, under the guidance of an engineer wearing a lead HoloLens in the next room. In the near future, she predicts, it will help people perform surgery and other sensitive, detailed tasks not just from the next room, but from the next state or country.

Customer Experience: From E-Commerce to V-Commerce

Consumers are already getting used to sap_Q316_digital_double_feature1_images3thinking of VR and AR in the context of entertainment. Companies interested in the technologies should be thinking about how they might engage consumers as part of the buying experience.

Because the technologies deliver more information and a better shopping experience with less effort, e-commerce is going to give rise to v-commerce, where people research, interact with, and share products in VR and AR before they order them online or go to a store to make a purchase.

Online eyewear retailers already allow people to “try on” glasses virtually and share the images with friends to get their feedback, but that’s rudimentary compared to what’s emerging.

Mirrors as Personal Shoppers

Clothing stores from high-end boutiques to low-end fashion chains are experimenting with AR mirrors that take the shopper’s measurements and recommend outfits, showing what items look like without requiring the customer to undress.

Instant Designer Shows

Luxury design house Dior uses Oculus Rift VR goggles to let its well-heeled customers experience a runway show without flying to Paris.

Custom Shopping Malls

British designer Allison Crank has created an experimental VR shopping mall. As people walk through it, they encounter virtual people (and the occasional zoo animal) and shop in stores stocked only with items that users are most likely to buy, based on past purchase information and demographic data.

A New Perspective

IKEA’s AR application lets shoppers envisage a piece of furniture in the room they plan to use it in. They can look at products from the point of view of a specific height—useful for especially tall or short customers looking for comfortable furniture or for parents trying to design rooms that are safe for a toddler or a young child.

Painless Do-it-Yourself Instructions

Instead of forcing customers to puzzle over a diagram or watch an online video, companies will be able to offer customers detailed VR or AR demonstrations that show how to assemble and disassemble products for use, cleaning, and storage.

sap_Q316_digital_double_feature1_images4Operations and Management: Revealing the Details

The customer-facing benefits of VR and AR are inarguably flashy, but it’s in internal business use that these technologies promise to shine brightest: boosting efficiency and productivity, eliminating previously unavoidable risks, and literally giving employers and managers new ways to look at information and operations. The following examples aren’t blue-sky cases; experts say they’re promising, realistic, and just around the corner.

Real-Time Guidance

A combination of AR glasses and audio essentially creates a user-specific, contextually relevant guidance system that confirms that wearers are in the right place, looking at the right thing, and taking the right action. This technology could benefit almost any employee who is not working at a desk: walking field service reps through repair procedures, guiding miners to the best escape route in an emergency, or optimizing home health aides’ driving routes and giving them up-to-date instructions and health data when they arrive at each patient’s home.

Linking to the Hidden

AR technology will be able to display any type of information the wearer needs to know. Linked to facial identification software, it could help police officers identify suspects or missing persons in real time. Used to visualize thermal gradients, chemical signatures, radioactivity, and other things that are invisible to the naked eye, it could help researchers refine their experiments or let insurance claims assessors spot arson. Similarly, VR will allow users to create and manipulate detailed three-dimensional models of everything from molecules to large machinery so that they can examine, explore, and change them.

Reducing the Human Risk

VR will allow users to perform high-risk jobs while reducing their need to be in harm’s way. The users will be able to operate equipment remotely while seeing exactly what they would if they were there, a use case that is ideal for industries like mining, firefighting, search and rescue, and toxic site cleanup. While VR won’t necessarily eliminate the need for humans to perform these high-risk jobs, it will improve their safety, and it will allow companies to pursue new opportunities in situations that remain too dangerous for humans.

Reducing the Commercial Risk

sap_Q316_digital_double_feature1_images5VR can also reduce an entirely different type of operational risk: that of introducing new products and services. Manufacturers can let designers or even customers “test” a product, gather their feedback, and tweak the design accordingly before the product ever goes into production. Indeed, auto manufacturer Ford has already created a VR Immersion Lab for its engineers, which, among other things, helped them redesign the interior of the 2015 Ford Mustang to make the dashboard and windshield wipers more user-friendly, according to Fortune. In addition to improving customer experience, this application of VR is likely to accelerate product development and shorten time to market.

Similarly, retailers can use VR to create and test branch or franchise location designs on the fly to optimize traffic flow, product display, the accessibility of products, and even decor. Instead of building models or concept stores, a designer will be able to create the store design with VR, do a virtual walkthrough with executives, and adjust it in real time until it achieves the desired effect.

Seeing in Tongues

At some point, we will see an AR app that can translate written language in near-real time, which will dramatically streamline global business communications. Mobile apps already exist to do this in certain languages, so it’s just a matter of time before we can slip on glasses that let us read menus, signs, agendas, and documents in our native tongue.

Decide with the Eye

More dramatically, AR project management software will be able to deliver real-time data at a literal glance. On a construction site, for example, simply scanning the area could trigger data about real-time costs, supply inventories, planned versus actual spending, employee and equipment scheduling, and more. By linking to construction workers’ own AR glasses that provide information about what to know and do at any given location and time, managers could also evaluate and adjust workloads.

Squeeze Distance

Farther in the future, VR and AR will create true telepresence, enhancing collaboration and potentially replacing in-person meetings. Users could transmit AR holograms of themselves to someone else’s office, allowing them to be seen as if they were in the room. We could have VR workspaces with high-fidelity avatars that transmit characteristic facial expressions and gestures. Companies could show off a virtual product in a virtual room with virtual coworkers, on demand.

Reduce Carbon Footprint

If nothing else, true telepresence could practically eliminate business travel costs. More critically, though, in an era of rising temperatures and shrinking resources, the ability to create and view virtual people and objects rather than manufacturing and transporting physical artifacts also conserves materials and reduces the use of fossil fuel.

Employees: Under Observation

The strength of digitally enhanced reality—and AR in particular—is its ability to determine a user’s context and deliver relevant information accordingly. This makes it valuable for monitoring and managing employee behavior and performance. Employees could, for example, use the location and time data recorded by AR glasses to prove that they were (or weren’t) in a particular place at a particular time. The same glasses could provide them with heads-up guided navigation, alert employers that they’re due for a legally mandated break, verify that they completed an assigned task, and confirm hours worked without requiring them to fill out a timesheet.

However, even as these capabilities improve data governance and help manage productivity, they also raise critical issues of privacy and autonomy (see The Norms of Virtual Behavior). If you’re an employee using VR or AR technology, and if your company is leveraging it to monitor your performance, who owns that information? Who’s allowed to use it, and for what purposes? These are still open legal questions for these technologies.

Another unsettled—and unsettling—question is how far employers can use these technologies to direct employees’ work. While employers have the right to tell employees how to do their jobs, autonomy is a key component of workplace satisfaction. The extent to which employees are required to let a pair of AR glasses govern their actions could have a direct impact on hiring and retention.

Finally, these technologies could be one more step toward greater automation. A warehouse-picking AR application that guides pickers to the appropriate product faster makes them more productive and saves them from having to memorize hundreds or even thousands of SKUs. But the same technology that can guide a person will also be able to guide a semiautonomous robot.

The Norms of Virtual Behavior

VR and AR could disrupt our social norms and take identity hacking to a new level.

The future of AR and VR isn’t without its hazards. We’ve all witnessed how distracting and even dangerous smartphones can be, but at least people have to pull a phone out of a pocket before getting lost in the screen. What happens when the distraction is sitting on their faces?

This technology is going to affect how we interact, both in the workplace and out of it. The annoyance verging on rage that met the first people wearing Google Glass devices in public proves that we’re going to need to evolve new social norms. We’ll need to signal how engaged we are with what’s right in front of us when we’re wearing AR glasses, what we’re doing with the glasses while we interact, or whether we’re paying attention at all.

More sinister possibilities will present themselves down the line. How do you protect sensitive data from being accessed by unauthorized or “shadow” VR/AR devices? How do you prove you’re the one operating your avatar in a virtual meeting? How do you know that the person across from you is who they say they are and not a competitor or industrial spy who’s stolen a trusted avatar? How do you keep someone from hacking your VR or AR equipment to send you faulty data, flood your field of vision with disturbing images, or even direct you into physical danger?

As the technology gets more sophisticated, VR and AR vendors will have to start addressing these issues.

Technical Challenges

To realize the full business value of VR and AR, companies will need to tackle certain technical challenges. To be precise, they’ll have to wait for the vendors to take them on, because the market is still so new that standards and practices are far from mature.

sap_Q316_digital_double_feature1_images6For one thing, successful implementation requires devices (smartphones, tablets, and glasses, for now) that are capable of delivering, augmenting, and overlaying information in a meaningful way. Only in the last year or so has the available hardware progressed beyond problems like overheating with demand, too-small screens, low-resolution cameras, insufficient memory, and underpowered batteries. While hardware is improving, so many vendors have emerged that companies have a hard time choosing among their many options.
The proliferation of devices has also increased software complexity. For enterprise VR and AR to take off, vendors need to create software that can run on the maximum number of devices with minimal modifications. Otherwise, companies are limited to software based on what it’s capable of doing on their hardware of choice, rather than software that meets their company’s needs.

The lack of standards only adds to the confusion. Porting data to VR or AR systems is different from mobilizing front-end or even back-end systems, because it requires users to enter, display, and interact with data in new ways. For devices like AR glasses that don’t use a keyboard or touch screen, vendors must determine how to enter data (voice recognition? eye tracking? image recognition?), how to display it legibly in any given environment, and whether to develop their own user interface tools or work with a third party.

Finally, delivering convincing digital enhancements to reality demands such vast amounts of data that many networks simply can’t accommodate it. Much as videoconferencing didn’t truly take off until high-speed broadband became widely available, VR and AR adoption will lag until a zero-latency infrastructure exists to
support them.

sap_Q316_digital_double_feature1_images7Coming Soon to a Face Near You

For all that VR and AR solutions have improved dramatically in a short time, they’re still primarily supplemental to existing systems, and not just because the software is still evolving. Wearables still have such limited processing power, memory, and battery life that they can handle only a small amount of information. That said, hardware is catching up quickly (see The Supporting Cast).

The Supporting Cast

VR and AR would still be science fiction if it weren’t for these supporting technologies.

The latest developments in VR and AR technologies wouldn’t be possible without other breakthroughs that bring things once considered science fiction squarely into the realm of science fact:

  • Advanced semiconductor designs pack more processing power into less space.
  • Microdisplays fit more information onto smaller screens.
  • New power storage technologies extend battery life while shrinking battery size.
  • Development tools for low-latency, high-resolution image rendering and improved 3D-graphics displays make digital artifacts more realistic and detailed.
  • Omnidirectional cameras that can record in 360 degrees simultaneously create fully immersive environments.
  • Plummeting prices for accelerometers lower the cost of VR devices.

Companies in the emerging VR/AR industry are encouraging the makers of smartglasses and safety glasses to work together to create ergonomic smartglasses that deliver information in a nondistracting way and that are also comfortable to wear for an eight-hour shift.

The argument in favor of VR and AR for business is so powerful that once vendors solve the obvious hardware problems, experts predict that existing enterprise mobile apps will quickly start to include VR or AR components, while new apps will emerge to satisfy as yet unmet needs.

In other words, it’s time to start thinking about how your company might put these technologies to use—and how to do so in a way that minimizes concerns about data privacy, corporate security, and employee comfort. Because digitally enhanced reality is coming tomorrow, so business needs to start planning for it today. D!

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



Leveraging Digital Twins To Breathe New Life Into Your Products And Services

Thomas Kaiser

Are you familiar with the concept of the twin paradox? In physics, the twin paradox is a thought experiment in which one twin stays on Earth while the other travels in a spaceship at a high speed for a period of time. According to the special theory of relativity, the second twin will return home measurably younger than the first.

In a similar way, the concept of the digital twin can accelerate your business and breathe new life into your products and services.

But the digital twin isn’t just a thought experiment. Gartner lists digital twins as a Top 10 strategic trend for 2017. It’s part of a broader digital transformation on which IDC says companies will invest $2.1 trillion a year by 2019.

Already, smart companies are using digital twins to better understand operations, get closer to customers, and transform their business.

Connecting real and virtual

A digital twin is a virtual representation of a real-world product or service. That could be anything from a toaster to industrial machinery to complex processes. The virtual representation combines three types of information: business data, contextual data, and sensor data.

Business data covers information such as customer name, location, and service-level agreements. Contextual data includes details such as ambient temperature, humidity, and weather events. Sensor data involves things like machine speed, operating temperature, and vibration.

Sensor data is key because, while companies have been using digital twins for years, it’s only with the Internet of Things (IoT) that they’ve become cost-effective. Gartner predicts that 6.4 billion things will be connected this year, a 30% jump over 2015. By 2020, at least half of all new business processes will incorporate IoT – transforming live data into new value.

Drilling down on digital twins

How does a digital twin work? Let’s say you manufacture industrial drills. A digital twin can help you understand how customers use your drill. The goal is to continuously improve the product to increase customer satisfaction and identify opportunities for new products and services.

For example, you might discover that your drill malfunctions in certain situations. That can enable you to improve product design. Or it can let you help customers modify the way they use the drill to avoid problems.

Or, you might discover that customers use your drill not only to make holes but also to cut materials. That might lead you to develop a new product that’s purpose-built for cutting.

Or, maybe you discover that while customers want holes made, they don’t necessarily want to purchase and operate a drill. So rather than sell drills, you might offer a hole-drilling service. In other words, instead of charging customers for machinery they operate, you charge them for holes drilled by machinery you operate for them. Some SAP customers have been quite successful in making this kind of leap from products to services.

Digital twins across industries

Digital twins aren’t just for manufacturers. Insurers can apply digital twins in offerings like usage-based car insurance. Retailers can track how customers navigate the store and interact with products on the shelves. Cities can model areas for things like smart lighting. Ports can monitor weather, shipping traffic, containers, and trains and trucks entering and leaving.

Digital twins cover the entire lifecycle of an asset or process. In fact, they can form a foundation for an end-to-end, closed-loop value chain for smart, connected products and services, from design to production, from deployment to continuous improvement.

The promise of continuous improvement is why it’s increasingly important to integrate digital technologies into all products. As you leverage your digital twin to identify opportunities for new or better features, you can implement those improvements quickly and cost-effectively through firmware updates.

Implementing digital twins involves four steps:

  1. Integrate smart components such as sensors, software, computing power, or data storage into new or existing products.
  1. Connect the product to a central location where you can capture sensor data and enrich that sensor data with business and contextual data.
  1. Analyze that data on an ongoing basis to identify opportunities for product improvements, new products, or even new business models.
  1. Leverage these digital insights to transform your company — for example, by reducing costs through proactive avoidance of business interruptions, or by creating new business opportunities.

Of course, while those steps are easy to list, they can require significant effort to achieve. But digital twins are becoming a business imperative. Companies that fail to respond will be left behind. Those that embrace digital twins have the opportunity to better understand customer needs, continuously improve their products and services, and even identify new business models that give them competitive advantage.

Consumer demand for virtual reality is changing how businesses manage and operate. Learn how to transition From E-Business to V-Business.