A convergence of technology trends will transform the role of enterprise information technology (IT) between now and 2020. The proliferation of cloud computing, of mobile devices and of new data sources will make corporate processes and outcomes radically more transparent to employees, to business partners and to customers, but will also place new demands on IT departments and on chief information officers (CIOs).

1. New technology and
new responsibility
The changing role of enterprise IT
A convergence of technology trends will
transform the role of enterprise information
technology (IT) between now and 2020. The
proliferation of cloud computing, of mobile
devices and of new data sources will make
corporate processes and outcomes radically
more transparent to employees, to business
partners and to customers, but will also place
new demands on IT departments and on chief
information officers (CIOs).
Over the past decade, IT has transformed
business. Massive advances in networking
and collaboration technology have enabled
key processes and functions to be outsourced
around the globe, while mobile and social tools
have dissolved prior boundaries of geography
and of time to create truly global and alwayson organisations. Today, cloud computing
services allow companies of any size to access
vast quantities of computing power for little
cost, levelling the playing field between Fortune
100 behemoths and college students’ start-ups.
These advances have radically changed the way
companies think about IT expenditures and
about their in-house technology needs.
Data as agent of change
The exponential growth in data has made
increased computing power an urgent
business necessity. Companies are tackling
enormous data sets derived from, among other
sources, logs of customers’ online activities, of
sensor outputs and of sales transactions. The
resulting abundance of information will give
significant competitive advantages to those
companies able to exploit it. These firms will
have much deeper insight into their customers’
experiences, into their own operations and into
other core aspects of their business—all of
which were previously opaque.
Indeed, the amount of data generated and
stored is staggering. Research firm IDC
estimates that 4 zettabytes of data—the
equivalent of 250bn DVDs—will be created,
stored and replicated in 2013. By 2020, that
amount is predicted to reach 40 zettabytes.
While much attention has been paid to data
that reflect human activity, 40% of these
new data will be generated by an expanding
army of networked machines. These devices,
sensors and robots—at work in factories,
monitoring remote oil pipelines or simply
embedded in traffic lights, in thermostats and
in ubiquitous mobile devices—make up what
has been dubbed the “Internet of Things”. The
information they provide is becoming a key
resource for enterprises seeking a clearer view
of their operations.
At the same time, new data present new
challenges. Companies face the risk of
misapprehending near-instantaneous and
overwhelming amounts of data, which are
often improperly vetted or contextualised.
“We’re just starting to learn how we manage
in abundance,” says Omar El Sawy, a professor
of information and operations management at
the University of Southern California’s Marshall
School of Business. “We are not quite used to
this flow of data coming at us continuously and
how not to overreact to the noise.”
Security is also a concern. As more and more
core corporate functions are stored in the cloud
and information networks extend to include
more objects and devices, information leakage
and privacy concerns will become paramount.
Changing roles for corporate IT
As companies grapple with a data flood and
major technological shifts over the next several
years, they must focus on remaking their IT
departments. According to a 2012 report by the
consulting firm Accenture, more than two-thirds
of business executives were unsure of what the
CIO role or IT function at their company will look
like in five years.
Some firms are already shrinking their
traditional in-house IT departments. These
organisations are adopting cheaper, third-partyadministered cloud-based software systems and
are jettisoning traditional software. They are
also adopting “bring your own device” (BYOD)
policies that encourage employees to use their
own hardware and software rather than relying
on technology provided by the company.
Shifting roles and responsibilities have proved
unsettling to IT professionals. “It is disruptive
change with a cadence that we have never seen
before,” says Richard Edwards, principal analyst
at research firm Ovum. “And this pace of change
is quickening as we roll through the years.”
According to Mr Edwards, however, enterprise IT
departments are not in danger of disappearing.
Although companies expect their employees
to arrive on the job with a high degree of
technological literacy, at many companies IT
knowledge beyond web browsing and e-mail is
at an all-time low. While it is a given that firms
will train their employees to operate expensive
factory machinery, many spend little on IT
training despite their significant investments in
enterprise technologies.
“Companies are really missing an opportunity
to get the full return on their IT investments,”
observes Mr Edwards. As the need for training
continues to grow, IT departments could ensure
their continued relevance in the years ahead by
providing this service.