Emerging Trends, Disruptions and Digital Business
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1 Emerging Trends, Disruptions and Digital Business Samuli Savo, Executive Vice President enfo.fi / enfo.se
2 Enfo Group: WhoWeAre? enfo.fi / enfo.se 2
3 Aalto Technology Management Flow 1. First some thoughts about analysing technology trends and future 2. Then a view about Digital Business 3. Then remarks about how organisations leverage various tools to improve decision making (showing Gartner tools as an example) enfo.fi / enfo.se
4 enfo.fi / enfo.se We were promised household robots
5 enfo.fi / enfo.se and flying cars!
6 enfo.fi / enfo.se But sometimes we predict things right
7 About Analysing Trends Select trends that are most relevant for your organisation and clarify whether you have actually DRIVERS (you are forced to respond) or real OPPORTUNITIES (you can choose whether to act or not). Driver Opportunity Zone of impact Affects my organization Affects my customers Timing question Late response Early recognition Technology type Technology standards Emerging technologies Business focus Operating environment Business model shift Avoid the temptation to evaluate a single trend in isolation. Many trends are heavily interdependent and cannot be untangled. The cumulative impacts are likely to be significantly greater as a result of a confluence. enfo.fi / enfo.se
8 A Very Simplified 20-Year View of CEO and Board Belief in Information Technology E-Business + Y2K or Die We Need a "CIO" HBR Says "IT Doesn't Matter" Buy Packaged, Standardize, Consolidate, Outsource, Offshore. Cut Costs Must Do Digital Marketing Must Become a Digital Business Internet Trigger Gartner, Inc. and/or its affiliates. All rights reserved. 8
9 enfo.fi / enfo.se
10 enfo.fi / enfo.se
11 enfo.fi / enfo.se
12 enfo.fi / enfo.se
13 enfo.fi / enfo.se
14 So when we have a Digital Business opportunity? 1. You address business problem in a new way + 2. By leveraging enabling technology + 3. To blur physical and virtual = DIGITAL BUSINESS enfo.fi / enfo.se
15 Source: enfo.fi / enfo.se Espoo, Finland, 30 June Enevo, the leading provider of waste logistics solutions for Smart Cities, today announced a $ 15.8 million funding round
16 New Players Will Use Digital Forces To Dissolve Traditional Industry Boundaries Is this manufacturing, retailing, or design? What is Amazon retailer or tech. firm? Who sets expectations for consumers? Whose brand has the highest trust? Who will determine the future of payments and money: MasterCard, Google, Apple, PayPal, Samsung, Verizon, Walmart, Bitcoin? enfo.fi / enfo.se
17 Aalto Technology Management What Digital Business means in average organization Business expectations far exceed IT reality! To stay relevant, two speed of IT is needed: 1. marathon mode = keeping robustness 2. sprinter mode = accelerating agility Key challenge is how to manage this kind of duality in organization How to pick up right mode for right task How to organize and run own operation How to use various vendors optimally Torrential Changes and a Confidence Crisis Will Reshape the Service Provider Landscape "My business and its IT organization are being engulfed by a torrent of digital opportunities. We cannot respond in a timely fashion, and this threatens the success of the business and the credibility of the IT organization." n = 2,339 51% Agree 70% CIOs will change their technology and sourcing relationships in the next 2 to 3 years for a variety of reasons. 46% Need to work with new categories of partners, e.g., Mobility Big Data Cloud Digital Agency Analytics Social Note: Excerpt from "Taming the Digital Dragon: The 2014 CIO Agenda" (G261080). enfo.fi / enfo.se 2014 Gartner, Inc. and/or its affiliates. All rights reserved.
18 Enfo Group: General Presentation How Enfo helps customers with Digital Business? To increase ROBUSTNESS Enfo provides outsourcing services. We run customer s IT operation and improve its business reliability with process maturity and automation. To increase AGILITY Enfo provides specialist projects. We help in Cloud Adoption, Integration and BI/Analytics enabling customers to adapt their IT quickly to new business demands. To MANAGE DUALITY better Enfo provides service integration and management services incl 3 rd parties. enfo.fi / enfo.se 18
19 Driving ROBUSTNESS: Outokumpu Achieves Higher Production at a Lower Cost All the Way to Value- Service & Asset Management The main focus of the project has been on improving efficiency of the whole planning and preparation process with all of its included materials, tools and, above all, the workforce, both internally and externally. Company management has clearly expressed that the project has the highest priority and management has also received continuous training. The experiences of the cooperation with Enfo Framsteg at Outokumpu are positive without exception and Mikael Larsson says that, although they are only at the beginning of the measurement of the project s effects, there is no doubt that production is more efficient now and that collaboration will continue in new areas of development. Business value The work is now more systematic, the processes clearer and the division of responsibility has also become more distinct. The reduced production disruptions and the improved processes around planning and preparation improve the efficiency of production and the company thereby gets more out of the machinery at a lower cost. enfo.fi / enfo.se
20 Driving AGILITY: ESAB Gets Faster from Business Development to IT Solution Internet of Things I m impressed at how fast our partner Enfo is at understanding and converting our needs into effective technical solutions. Now, we can develop our platform to produce several new services for our customers. Development is proceeding at an extremely fast pace, and in the past six months has begun to accelerate, both here and at our customers, says Anders Lindh, Global Director of Strategy, ESAB. Business value By connecting in the digital dimension, the processes are now linked together and ESAB s product and service portfolio is becoming more integrated with the customer s unique production and maintenance processes. Quality systems, case management and production planning can now be totally integrated, which increases efficiency, traceability and quality for the end customer. enfo.fi / enfo.se
21 ENJOY SMOOTHER ENFO WAY FUTURE SIMPLER CUSTOMER BENCHMARK BRIGHTEST MINDS PROMISES SMARTER SUCCESS CORE BUSINESS EFFICIENCY TODAY TOMORROW enfo.fi / enfo.se 21
22 About tools used in analysing the future (using Gartner ones as an example) enfo.fi / enfo.se
23 Gartner Reference Models: Different Tools for Different Purposes When trying to decide on Interprets Technology Hype When Making Technology Adoption Decisions Provides a Full Life Cycle View of Technology Assets Provides Technology Architecture with Guided Decision Making Positions Technology Players Within a Specific Market Best Practices, Cool Vendors, Vendor Ratings, etc. Use this Gartner reference model (tool, methodology) Hype Cycle & Priority Matrix Market Clock Reference Architecture Magic Quadrant Report with "my Hype Cycle" Toolkit Report Extensive report with reusable components Interactive tool with extensive report A wide variety of Gartner research
24 How the Hype Cycle Works Social Excitement Adoption Progress Expectations Innovation Trigger Peak of Inflated Expectations Trough of Disillusionment Slope of Enlightenment Plateau of Productivity Time
25 Expectations Gartner Hype Cycle Startup companies, first round of venture capital funding R&D Supplier proliferation Mass media hype begins Early adopters investigate First-generation products, high price, lots of customization needed Activity beyond early adopters Negative press begins Supplier consolidation and failures Second/third rounds of venture capital funding Less than 5% of the potential audience has adopted fully Methodologies and best practices developing Second-generation products, some services High-growth adoption phase starts: 20% to 30% of the potential audience has adopted the innovation Third-generation products, out of the box, product suites Innovation Trigger Peak of Inflated Expectations Trough of Disillusionment Slope of Enlightenment Plateau of Productivity Time
26 Hype Cycle for Emerging Technologies
27 Gartner Priority Matrix
28 Priority Matrix for Emerging Technologies
29 Commoditization Gartner IT Market Clock Product M Market Start Product A Time to next phase <2 years 2 to 5 years 5 to 10 years >10 years End of life Product K Service B Dusk of Obsolescence Service J Service I Service D Product C Dawn of Standards Product H Service E Product G Product F The IT Market Clock: A New Tool for Strategic Planning (G ) Understanding Gartner's IT Market Clocks, 2010 (G ) Zenith of Industrialization
30 Hype Cycles and Market Clocks: Tools for Hunting and Farming IT Commoditization Market Start Peak of Inflated Expectations Trough of Disillusionment Extent of Hype Cycle Coverage 20% to 30% Market Penetration Plateau of Productivity
31 IT Market Clock for Client Computing
32 Gartner Technology Market Magic Quadrant Magic Quadrant research addresses each market individually and is updated about every 12 months. Ability to Execute (in technology, viability, services, features) Magic Quadrants are based on a composite view of needs, generally with about a three-year, forwardlooking vision when assessing risk. Focus on Tomorrow Challengers Executes well today or may dominate a large segment, but does not yet understand market direction Focuses successfully on a small segment, or is unfocused and does not outinnovate or outperform others Niche Players Completeness of Vision Leaders Executes well today and is well-positioned for tomorrow Understands where the market is going or has a vision for changing market rules, but does not yet execute well Visionaries (in technology, viability, services, features) USERS: Re-examine your technology opportunities and risks regularly, not just at the time of purchase or when a new Magic Quadrant comes out. Focus on Today VENDORS: How do you best react to these market opportunities and threats? Magic Quadrants and MarketScopes: How Gartner Evaluates Vendors Within a Market (G )
33 Magic Quadrant for Social Software in the Workplace (From "Magic Quadrant for Social Software in the Workplace" G )
34 #1 TIP: Remember it is always YOU who make DECISIONS external s role is just to provide perspective. Samuli Savo Executive Vice President enfo.fi / enfo.se
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