Presentation by Bo Parker, Managing Director of Center for Technology and Innovation at PricewaterhouseCoopers. Presentation was shown during the lecture at Digital October technology entrepreneurship center in Moscow, on 26 October.
2. PwC Center for
Process management Technology & Innovation
Big Data
http://www. pwc.com/cti
Cloud
computing Enterprise
mobility
Innovation
PwC
3. And the Latest Technology Forecast
Social Technologies and
Enterprise Collaboration
PwC CTI http://www.pwc.com/techforecast 3
4. Emerging trends in technology
Why These Topics?
Our research is a constant dialog
Proprietary surveys deepen our understanding
The target:
what is bleeding edge today that will be best
practice in 3 to 5 years?
PwC CTI http://www.pwc.com/techforecast 4
5. Oxford Economics Survey on Digital Megatrends
(Sponsored by PwC, Cisco, AT&T, Citi, SAP)
What is your company’s industry? (%
About the survey respondents respondents)
Manufacturing 19
Retailing and consumer products 15
In which region is your company based?
IT and Technology 11
(% respondents) Life sciences 8
Mexico Financial Services - capital markets 7
US Financial Services – retail and… 6
Brazil 8% 19% Other 6
8%
Financial Services – insurance 5
Telecommunications 5
Japan
Government/Public Sector 4
14%
UK Financial Service - other 4
20% Financial Services – asset management 4
China Healthcare services 3
8% Entertainment, Media and Publishing 2
India Australia
Education 2
15% 8%
0 5 10 15 20
*Fieldwork conducted December, 2010 - March 2011
PwC CTI http://www.pwc.com/techforecast 5
6. Executives see an economic step change
Over 60% of executives believe that economic growth will slow in Western
economies, and that firms will be more cautious in making new investments.
PwC CTI http://www.pwc.com/techforecast
7. Digital megatrends
New digital technologies are working together
with economic realignments to transform the
global marketplace.
PwC CTI http://www.pwc.com/techforecast
8. Mobility is a game-changer for companies
Respondents say that mobile technologies are more likely to help business
over the next five years than any other technology.
More than 50% of respondents in each sector surveyed say their firms will
invest heavily in mobile over the next five years.
PwC CTI http://www.pwc.com/techforecast
11. Mobility
New interface modes, content creation, and a
different app paradigm
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12. Mobility
Conclusions – Enterprise mobility
End device innovation has been stuck
New mobile devices have the power of a 1980 Cray supercomputer
Mobile devices are networked knowledge systems
Always with you – always part of you
The best companies acknowledge personal choice
“I am my network”
PwC CTI http://www.pwc.com/techforecast 12
13. Digital megatrends
New digital technologies are working together
with economic realignments to transform the
global marketplace.
PwC CTI http://www.pwc.com/techforecast
14. The rise of on-demand business intelligence
60% of executives cite
its importance in
better understanding
their customers and
making strategic
decisions.
More than half of
respondents say it
helps them react to
events in real time.
PwC CTI http://www.pwc.com/techforecast
15. Business Intelligence
Business intelligence still fragmented
To what extent do you consider the following factors as risks to the
development of your business intelligence strategy?
Different parts of the business having
different priorities
Dealing with a deluge of data
Lack of sufficient skills to collate and
interpret the information
Inability to aggregate data across
silo’d IT systems
Not having appropriate tools to do
the job
Not having business intelligence tools
that can respond in real time
Government regulation of information
gathering and sharing
Not knowing what to track because of
business change
0% 10% 20% 30% 40% 50%
PwC CTI http://www.pwc.com/techforecast 15
16. Business Intelligence and Big Data
Big Data—old analytical methods can’t handle it.
PwC CTI http://www.pwc.com/techforecast 16
17. Business Intelligence and Big Data
Data’s been lost or disregarded as antiquated BI
no longer handles the load.
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18. Business Intelligence and Big Data
New methods mean that gray data can be
analyzed fast enough to be factored in.
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19. Business Intelligence and the Semantic Web
Less-structured data offers an integration and
intelligence opportunity.
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20. Business Intelligence and the Semantic Web
Ontologies become the bridges between silos.
• Search, process, analyze data
across silos
• Maps express ontological
decisions about consistency
• Organize metadata based on
semantic principles
• Operational links between
metadata and organizational
Source: Peter Rittgen, Handbook of Ontologies for
Business Interaction, 2009
and public references
PwC CTI http://www.pwc.com/techforecast Slide 20
21. Conclusions – BI’s Big Data and Semantics
Cloud infrastructure caused a rethink (MapReduce, Hadoop)
Private and public clouds are creating the previously unthinkable
No-SQL and open source keep costs incredibly low
A “data research” funnel appearing in front of data warehouse/BI
Semantic technologies finding opportunities in dynamic, shared data
Web-centric/Linking behaviors suggest outside-in adoption pattern
PwC CTI http://www.pwc.com/techforecast 21
22. Digital megatrends
New digital technologies are working together
with economic realignments to transform the
global marketplace.
PwC CTI http://www.pwc.com/techforecast
23. Cloud Computing
Emerging markets embrace cloud computing
How important do you consider ―on-demand‖ or ―cloud-based‖ computing
to the following elements of your business over the next 5 years?
Allowing more business flexibility to respond to
market opportunities
Making it easier to do business
Increasing speed to market for our business
Improving accessibility of your business and brand Developing
Developed
Reducing technology costs
Extending your brand experience
Reducing non-technology- costs (e.g., staff and
management costs)
0% 20% 40% 60% 80%
% stating extremely or very important
PwC CTI http://www.pwc.com/techforecast 23
24. Cloud Computing
What Problem is Cloud Computing
Solving?
IT Transformation at Bechtel
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25. Understanding the economics of Cloud Computing
“Our approach was to move back from the desired state represented by
cloud service providers, rather than incremental gains from existing state”
www.pwc.com/technologyforecast
PwC CTI http://www.pwc.com/techforecast 25
26. Transformation of IT at Bechtel
www.pwc.com/technologyforecast
PwC CTI http://www.pwc.com/techforecast 26
27. Cloud Computing
What does Cloud Computing mean for the
Enterprise?
Cloud service providers as models of behavior, not vendors
- Standard IT elements: to reduce complexity
- “ERP” management of data center (provisioning/run-time): to
automate IT operations
- Flexible / loose coupling between IT infrastructure and apps: to
independently and continually refresh each layer (virtualization)
Goal should not be cloud computing per se but the achievement of the
attributes above
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28. Cloud Computing
Belief in the (private) cloud future is strong*
Q: Considering all the different ways of managing IT
infrastructure, please indicate which you consider the one best
solution today and in three years:
Traditional data center managed internally 38%
17%
Traditional data center managed by service 30%
provider 20%
Private cloud managed internally 19%
27% Now
In 3 Years
Private cloud managed by service provider 10%
29%
Public cloud 3%
7%
0% 10% 20% 30% 40%
* PwC survey of 325 global executives responsible for IT
Outsourcing and/or cloud vendor management conducted
by Bloomberg BusinessWeek in May, 2011 No substantial regional differences
PwC CTI http://www.pwc.com/techforecast 28
29. Cloud Computing
Far less certainty about the value proposition for
managed private clouds*
Q. Please select the three most important reasons for using
IT Outsourcing or private cloud managed services.
Reduced total cost of IT 7%
54%
Simplify complex IT 7%
environment 36%
Managed Private
Access superior technical skills 15% Cloud
34% Traditional IT
Outsourcing
Faster delivery of IT solutions 13%
to business 25%
0% 10% 20% 30% 40% 50% 60%
* PwC survey of 325 executives responsible for IT Outsourcing or cloud vendor
management conducted by Bloomberg BusinessWeek in May, 2011
PwC CTI http://www.pwc.com/techforecast 29
30. Cloud Computing
Conclusions – Cloud Computing
CIOs who fully commit reap incredible rewards in cost and agility
Most executives have moved from “what?” to “when?”
Private clouds – internally or externally managed – not public
Most legacy workloads are not ready for cloud – private or public
Hybrid clouds define enterprise IT out beyond the horizon
Business model impact only barely begun beyond pure plays
PwC CTI http://www.pwc.com/techforecast 30
31. Digital megatrends
New digital technologies are working together
with economic realignments to transform the
global marketplace.
PwC CTI http://www.pwc.com/techforecast
32. Social Technology in the Enterprise
Why is the West sceptical?
To what extent do you agree with the following statements?
Social media is revolutionizing our understanding of
market and customer behavior
I feel I fully understand the benefits social media
technology can bring to business over the next 5 years
Social media is transforming how we do business Developing
with our customers
Developed
We intend to invest heavily in various social media
applications to drive business strategy in the 5 years
Social media is irrelevant to our business over the
Next 5 years
0% 20% 40% 60% 80%
% stating agree or agree strongly
PwC CTI http://www.pwc.com/techforecast 32
33. Social Technology in the Enterprise
Internal use of social technology remains
untapped
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34. Social Technology in the Enterprise
From one-to-one, to one-t0-many, to many-t0-
many
To collaboration and information overload…
PwC CTI http://www.pwc.com/techforecast 34
35. Social Technology in the Enterprise
Structured, repeatable processes – the social
impact
PwC CTI http://www.pwc.com/techforecast 36
36. Social Technology in the Enterprise
Filtering is emerging as the fork in the road, the
―paradoxical‖ solution to collaborative overload
PwC CTI http://www.pwc.com/techforecast 37
37. How social and knowledge graphs address
enduring challenges
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38. Social Technology in the Enterprise
Conclusions – Enterprise social technology
Consumer social platforms as yet another marketing channel
Consumer services do not translate directly for internal use
The social value proposition is collaboration
The danger is failure to fully engage – adding to overload
The social enterprise creates the “group brain effect” more efficiently
PwC CTI http://www.pwc.com/techforecast 39
39. An opportunity to leapfrog?
Twice as many firms in developing economies than advanced markets
plan to increase spending in the latest digital technologies by over 20%.
Developing
Cloud computing
Developed
Business intelligence
Mobile technology
Collaborative technologies
Social media (e.g., Facebook, LinkedIn,
Twitter, etc).
Telepresence technology
0% 10% 20% 30% 40% 50%
% planning to increase expenditure by over 20%
PwC CTI http://www.pwc.com/techforecast
40. Summing up – emerging technology circa 2011
• End-user (mobile) devices are emerging from the dark ages
• Enhanced by a cloudy forecast
• But there are unresolved (data) skeletons in the closet
• As data proliferation will finally force a re-think
• Many companies are not being social (in their use of tech)
“Companies in developing countries have the legacy-
free runway and economic advantages to define and
shape the emerging mobile-social-intelligent
enterprise”
PwC CTI http://www.pwc.com/techforecast 41
Notes de l'éditeur
Vendors are making progress to secure the range of smart handhelds that are available now. In December 2010, if you’re a PwC employee here in the US, you can bring your own Apple or Android tablet, and with the help of some software from a company called Good Technology, you can connect to the PwC network. Or you can buy an iPhone or an Android phone directly through PwC channels. You know that our firm is very conservative about these things. The decision to allow these devices inside the firm didn’t come lightly.So why is PwC making this move early, when the security’s still unsettled? Many established enterprises have already acknowledged that it’s a multi-device era we’re in now. We saw that tipping point in 2010.Even some of the more cautious IT departments are allowing more than one brand of handheld, just as they acknowledge the inherent complexity of managing that approach. The challenge enterprises face in the early 2010s is the complexity of enabling multiple device types from multiple vendors, and doing so in a secure way. Ways of addressing that challenge are emerging. Beginning in 2010, Apple offered operating system–level services and APIs that let the mobile management vendors like Good Technology, MobileIron, Symantec, Sybase, and McAfee, among others, deliver management tools similar to those for BlackBerry and Windows Mobile. One key advantage of these third-party device management tools is that they allow cross-platform management, reducing the complexity of supporting multiple platforms. We think that by 2012, we’ll be past the point where device security is an issue. A number of handhelds are already inherently more secure than laptops are, because they’ve got on-device encryption. IT departments have to add encryption to laptops.
It’s interesting to ponder how smart handhelds are qualitatively different from what came before them. They aren’t the smartphones we were used to in the 2000s. “The phones themselves [back then] were not that great, and the infrastructure was lacking,” Tom Conophy, CIO of IHG, says. “The rendering capabilities were not super.” Conophy describes the current environment as “a perfect storm.”The current smartphones are a different breed of cat, and app developers are just beginning to learn how to tap into their capabilities. Mobile phones aren’t just more powerful now; broadband connectivity, 3-D sensors, and enhanced geolocation capability have turned the devices into intelligent, human-assisted network nodes. Smartphones already have sensors that detect motion. That’s how they can have displays that respond to the device tilting, or games that take advantage of the phones’ motion detection capabilities and build that into a user interface. New barometers in phones will add to motion detection and geolocating capabilities, making it possible for apps to find out what floor a person is on in a building, for example.The smartest handhelds, as futurist and Mark Pesce points out, offer the same power as a 1980s Cray supercomputer. And because they are optimized to work on wireless networks suited to high-volume data transfer, they’ve got full access to the cloud. A lot of the apps knowledge workers are already accessing with these handhelds will be increasingly personal, and they tap into external information sources. That’s another trend we ought to be cognizant of. There’s a symbiosis developing between digital natives and the parts of the cloud they’re interacting with, and we should make sure that symbiosis isn’t disrupted. That’s why PwC is allowing multiple brands of these app-centric smart handhelds in. The device has become part of the person you’ve hired to do the work.As for the internal information, it isn’t just our opinion that most kinds of corporate apps will be available through these handhelds in two years. A recent Bloomberg Business Week survey confirmed that most business execs here in the US believe this too.We’re calling the digital natives who are taking best advantage of these devices “cybernauts” because they’re exploring the beginnings of a true cybernetic capability that’s made possible by a device that’s always with you, one that learns more and more about you, and uses that information to deliver bits of info from the cloud that are most relevant to you. Early adopters are using their phones to become an integrated part of the information landscape. Humans and their devices, wherever they are, are becoming part of a more integrated whole.
It’s not only the devices themselves that are changing. Application development is becoming simpler, which empowers business units and allows IT to play the role of the master training the apprentice. “When you get tools like Titanium (for the iPhone) or App Inventor (for Android), you significantly decrease the barriers to entry,”futuristPesce says. “Over the next 10 years, those tools are going to become more pervasive, the quality will go up, and the ease of use will go up.”We’re already used to the innovative multi-touch interface of the iPhone, iPad and Android devices. This year we’re seeing the Kinect for the Xbox 360, and it echoes the success R&D groups are having in their efforts to bring gesture interfaces more into the mainstream. You look at the guts of the Kinect, and a lot of it is analog sensors coupled with the digital power of small microprocessors. At least one of our interviewees, SriniKoushik, the CTO of Nationwide Insurance, thinks mouse and keyboard interface will go away entirely. That new interface power translates into a new category of user-device interaction we’re calling engagement, which this slide depicts. That category will expand as tablets and smartphones become more capable, so that users can do more content creation on tablets.If you sum up what’s materialized with devices, with new user interface modes, with application development, what we have here in the 2010s is a new computing paradigm that’s finally become available to us. As a result, some leading enterprises are taking app development back in-house. This makes sense, because organizations like Standard Chartered, a bank headquartered in the UK with branches in Asia, Africa and the Middle East, want to move beyond the laptop and VPN approach, and they’re seeing great potential One of our interviewees, Todd Schofield, heads up a new app development group Standard Chartered established in San Francisco. Standard Chartered’s CIO Jan Verplancke decided to standardize on the iPhone. Schofield sees the iPhone as a blended work/life device. He says Standard Chartered “encourages people to load apps that they like or find useful, as well as the Standard Chartered applets.”