Accenture technology-vision-2013

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Accenture technology-vision-2013

  1. 1. Accenture Technology Vision 2013Every Business Is a Digital Business
  2. 2. Contents Accenture Technology Vision 2013ContentsForeword 3Introduction 4Relationships at Scale 6Design for Analytics 18Data Velocity 32Seamless Collaboration 42Software-Defined Networking 52Active Defense 63Beyond the Cloud 77Conclusion 87Research Methodology 90End Notes 91Contacts 972
  3. 3. Foreword Accenture Technology Vision 2013ForewordTechnology is intertwined in nearly merely technology. We describe consumers, to further differentiateevery aspect of business today, the important technology trends themselves in the marketplace, and towith information technology fast affecting organizations in both the expand their global footprint.becoming a primary driver of market public and private sectors, and wedifferentiation, business growth, and suggest that these changes signal a We hope that you find the Accentureprofitability. That is why we believe broader transformation in the role Technology Vision insightful as youthat understanding the technology of technology and in the business consider strategies for making yourtrends that are changing the world models that will be required organizations even more relevant in aas we know it extends well beyond for success. digital world. We wish you all the bestthe realm of IT executives—to COOs, in your journey.CMOs, and CEOs. As leaders, it is our We further propose that the timecollective responsibility to grasp the is now for leaders to act, in termsimportance of technology and to use of understanding the power ofit to deliver tangible business results new technologies and having thefor our stakeholders. foresight to adopt them. Around the world, we see organizations usingThe theme of this year’s Accenture the technologies described in the Pierre Nanterme Marty ColeTechnology Vision is Every Business Accenture Technology Vision to adapt Chairman & CEO Group Chief Executive - TechnologyIs a Digital Business, and we see to a rapidly changing environment, Accenture Accentureit as a forecast for business, not to transform their relationships with3
  4. 4. Introduction Accenture Technology Vision 2013Every Business Is a Digital BusinessTechnology is changing the gameEnterprises have spent the last our enterprise, but it’s gone further we innovate and expand We no longer have to look far for25 years working to peel away than that. IT has become a driving our business. examples. Here is Nike using wirelessthe nonessential pieces of their force, in many situations the driving sensors and Web technology to createbusinesses; focus on the core, force, for how we effectively grow There is a higher order of thinking—a a performance-tracking system thatoutsource the rest. But in this our companies. Every industry is digital mindset—that will, we believe, allows it to create new services topush to simplify, many companies now software driven; as such, every separate tomorrow’s most able monitor, and to improve and createhave relegated IT to “keeping the company must adopt IT as one of organizations from their lesser rivals. new training routines for athletes.lights on.” Without information its core competencies. By this we Accenture observes that increasing There is Ford, using sensor data toand technology, a business is blind mean that software is absolutely numbers of farsighted organizations monitor both how a car operates andin today’s digital world. You must integral to how we currently run are recognizing IT as a strategic asset the driver’s behavior, and seeking tochange the way you think about IT our businesses as well as how we with which they can renew vital apply analytics to improve theto map a clear path forward. reimagine our businesses as the aspects of their operations—optimizing experience for the next generation. i world continues to change—how we at least and innovating at best. AsEvery business is now a redesign and produce things, how we such, they are investing in the digital These companies, and many moredigital business. create and manage new commercial tools, the capabilities, and the skills like them, clearly see digital as transactions, how we begin to to more easily identify useful data, a strategic imperative—a tool ofThe world has already changed collaborate at unprecedented levels evaluate it, excerpt it, analyze it, derive competitive intent. They aren’taround us, and IT is driving much of internally and with customers and insights from it, share it, manage it, waiting for new technologies to bethe transformation. IT is a minimum suppliers. In the new world, our comment on it, report on it, and, developed or to mature before theystandard for how we effectively run digital efforts will be the key to how most importantly, act on it. act. Nor should you.4
  5. 5. Introduction Accenture Technology Vision 2013The obligation for action is all over the horizon at the emerging hotel business. But ideally, a digital the best in its sector unless itthe more pressing because the developments in technology that mindset will enable enterprises to excels at understanding andtechnologies to transform your should be added to the list of launch preemptive strikes of using technology.business are here and now. They are technologies the enterprise should their own.already good enough. Mobile, cloud, be prepared to take advantage of, Your stakeholders may not yet besocial, virtualization, big data—many from data visualization solutions It is incumbent upon the executive probing into how your top teamof the items continuously listed as and software-defined networks to leadership team to be stewards views IT. But it won’t be long before“hot trends”—are quickly becoming moving-target-defense security of this new mindset. They must they do.part of the current generation of systems. Just as importantly, though, recognize that it’s no longer possibletechnology; they are well past the this year’s report communicates why to separate “the technology”point where they should be areas every organization has to adopt a from “the business”; the two areof exploration and experimentation digital mindset. At the very least, it too tightly intertwined. IT helpsand are quickly becoming the tools is necessary in order to anticipate redesign the company’s productswith which companies can craft fast, and respond to ongoing technology- and supports its processes; it drivescost-effective solutions to some driven disruptions. Amazon.com its supply chains; it becomes partof their toughest problems—and has disrupted retail sectors far of the products themselves andgreatest opportunities. beyond books and changed the creates new ones; it allows access whole discussion about who “owns” to new consumers; it providesAs it has always done—as is its IT. Similarly, Airbnb is sparking a the frameworks to create net newcharter—our Technology Vision looks transformation in the traditional services. An organization cannot be 5
  6. 6. Accenture Technology Vision 2013Relationships at ScaleMoving beyond transactionsto digital relationships
  7. 7. Trend 1. Relationships at Scale Accenture Technology Vision 2013Relationships at ScaleBusinesses need to rethink their digital strategies to move beyond e-commerce and marketing. Althoughmobile technology, social networks, and context-based services have increased the number of digitalconnections with consumers, most companies are still just creating more detailed views of consumers,consumer attributes, and transactions. Individually, these connections may represent new types of userexperiences, even new sets of sales channels—but that’s not the real opportunity. Taken in aggregate,digital represents a key new approach to consumer engagement and loyalty: companies can managerelationships with consumers at scale. It is time for businesses to return and with the introduction of IT. their attention to their relationships Handcraftsmanship was replaced by with consumers. Business success mass production. Advice delivered has always been built on relationships over the counter was replaced by and on the relevance of products global call centers. A human face and services to buyers’ needs. Just making a sale was often replaced by a few generations ago, consumers a Web page. were often friends—and certainly neighbors—of the local grocer, That might imply that a growing pharmacist, and everyone else who distance between companies and provided the things consumers consumers is inevitable—and over the needed. But that model changed last few decades, many consumers with large-scale industrialization might agree that they have been 7
  8. 8. Trend 1. Relationships at Scale Accenture Technology Vision 2013treated with greater indifference and Specifically, enterprises arefar less personal attention. customizing the experience forYet now, the opposite is true: every interaction they have with consumers regardless of the channel. “ Consumers are more than cookie file or transactions, more than a faceless digitaltechnology is finally at a point This mass personalization includeswhere buyers can be treated like not only the interactions that a transaction history or a demographicindividuals again. Consumers companies have with consumers but profile; they’re real people with real differences. ”are more than faceless digital the interactions that consumers havetransactions, more than a cookie with each other. The potential payofffile or a transaction history or is two-pronged: a relationship witha demographic profile; they’re the consumer your competitors don’treal people with real differences. have and a differentiated brand. from those insights; by maintaining shoppers are in the store, offersCompanies now have rich channels integrated communications across can be personalized in such a waythrough which to communicate with both physical and virtual channels, to provide not just a digital offerconsumers in a much more personal enterprises can use insight from but an offer that is relevant toway. Farsighted organizations are Learning more than digital channels to improve service what shoppers are looking at in theseeing a golden opportunity to use ever before in in-store situations as well. physical store at that moment.mobile communications channels, For instance, Catalina, a globalsocial media, and context-based Businesses now have new ways to marketing company, is using These digital interactions allowservices to create truly personal learn about consumers based on consumers’ in-store location, companies to capture, measure,relationships with consumers—but increasingly digital interactions, determined by the product QR codes analyze, and exploit socialdigital relationships this time—and to whether through e-mail, social they scan, along with consumers’ interactions in new ways. Byleverage those relationships to drive media, Web pages, online chat, profiles to generate offers as simply being digital in nature, therevenue growth. mobile apps, or tweets. And it’s not they shop for groceries.i With the interactions allow enterprises to just online interactions that benefit understanding of exactly where actually measure the results of8
  9. 9. Trend 1. Relationships at Scale Accenture Technology Vision 2013their sales and marketing efforts, past transactions to inform current Consumers aren’t just they’re travel guides. And, thanks toscaling them when they succeed and conversations, using context to move buyers any longer mobility, they can do it where theyscotching them when they fail. from transactions to interactions, want, when they want. and ultimately using their consumer Key to making this transition isUsing analytics can also establish insight to infuse the interactions understanding that consumers aren’t The Cleveland Indians, a Majordeeper consumer insights, with greater engagement and just buyers anymore—they’ve evolved League Baseball team, is activelyallowing companies to create more intimacy. into connected consumers. They’re working to use its relationshipscompelling user experiences. This connected to social networks. They’re with its most avid fans to create aconcept of mass personalization connected to like-minded consumers. group of evangelists to promote the iienables businesses to customize They’re connected to brands. That team. The Indians’ Social Media Clubevery interaction. Essentially, means they also have the potential incents fans to create a buzz aboutthey can begin to establish a to be your advertisers. That’s a the team through a myriad of socialrelationship with consumers, using powerful constituency to tap into. channels, from Facebook to Tumblr. More than just pointing fans to social Thanks to social media, consumers forums, they are actively incenting have more opportunities than ever them to participate, offering ticket before to express likes, dislikes, and discounts and, for active posters, “ Using analytics canallowing companies consumer insights, also establish deeper recommendations. They aren’t simply purchasing a product or service— chances to be invited to a special Social Suite in the ballpark and to they are doing a lot more. On Yelp, share their comments about the to create more compelling user they’re detractors or cheerleaders. game. experiences. ” On delivery.com and Menuism, they’re reviewers and advertisers. On This paradigm brings immediacy to Spotify, they’re DJs offering music social conversation—consumers have recommendations. On TripAdvisor, the ability to bring friends together 9
  10. 10. Trend 1. Relationships at Scale Accenture Technology Vision 2013to share experiences and to report on to be highly personalized. They expect Even watching TV is changing. them. More important, they havethose experiences. These technologies to be given the ability to get pertinent, Accenture research shows that the opportunity to use these newhave permanently altered the ways in contextual information that relates more than 40 percent of consumers attitudes and technologies to createwhich consumers share information, to their lives, their friends, their needs, are showing increasing “second relationships, which will result incollaborate, interact, entertain and their pursuits. And because the screen” habits, using a smartphone customer acquisition and, for currentthemselves, inform themselves, and experience is personalized it’s also or tablet while watching TV such customers, repeat sales.maintain awareness of events around more powerful. Ninety-two percent that they are accessing multiplethem. Enterprises need to recognize of consumers globally say they streams of information at the samethe change and begin to harness it. trust earned media, such as word- time.iv This could mean tweeting on of-mouth endorsements or a smartphone while watching a TV Moving the mindsetAll of this contributes to a new recommendations from friends drama or viewing players’ statistics from transactions tostandard among consumers: they and family, above all other forms while watching sports. For the 2011– relationshipsexpect the mobile and social experience of advertising.iii 2012 season, the National Hockey League deployed an online game to The goal is to use insight to be played while watching the Stanley change communication with Cup finals; fans won points by consumers from transactions to correctly predicting outcomes on the interactions to an unprecedented ice, like the result of a face-off. level of relationship and loyalty— the equivalent of frequent-flier Based on these new behaviors, programs on steroids. The problem businesses face several related is that, until now, most enterprises opportunities: Because many of these have viewed online channels networks are public, companies have primarily as a way to reduce costs, an unprecedented opportunity to not improve relationships. It’s time track what people are saying about to shift that mindset.10
  11. 11. Trend 1. Relationships at Scale Accenture Technology Vision 2013Consumers are already having It’s time for enterprises to reimagineconversations about enterprises their consumer engagementamong themselves. Fueled by every strategy. Too many are still stuck innew consumer service and everynew user experience, consumer the days of ads and focus groups. When they want to communicate “ It’s time for enterprises to reimagine their consumer engagement strategy.behaviors have changed far fasterthan businesses. Facebook, eBay, to consumers, they broadcast a message through their marketing ”Yelp, Foursquare, and many other channels, and when they need tocompanies in effect continue to hear back, they bring together atrain huge segments of consumers representative group from whichto communicate among themselves, they can extrapolate insights. That new consumer-engagement unified consumer strategy acrossoutside the purview of businesses, strategy will require aggregated all channels. Siloed approachescoming back to a business site only Today, the channels are increasing insight across applications so that erode the value of integratedto conduct final transactions. (think YouTube, Twitter, customer each channel feeds information customer interactions. Burberry, service chat) and consumer into a holistic view of consumers. for example, jointly developed anCompanies may not be able to, and insight can come from a much That means more collaboration application with SAP that placesfrankly shouldn’t, take complete wider sample of consumer and across sales and marketing and all the consumer informationcontrol of the conversations their information sources: the Web, across digital and physical sales Burberry has from its separateconsumers are having in these new mobile technology, social- channels, and even the ability to customer channels in the hand ofelectronic storefronts and plazas. media sites, and others. But it’s track and acquire information its sales associates.v In the store,But they do need to figure out how important to remember in this beyond the business’s own they can use an iPad to access ato become participants, react with scenario that technology is only channels. Businesses should break shopper’s profile that pulls togetherrelevant offers, and respond a tool. Reimagining a consumer down the internal barriers that contact details, transactionalto concerns. engagement strategy is not based segment consumer interactions history, lifetime spending statistics, solely on technology. by channel in order to create a recommendations based on 11
  12. 12. Trend 1. Relationships at Scale Accenture Technology Vision 2013purchases, and social-media as varied as demographics orcomments regarding the brand. proximity to a buying decision; one customer may prefer a digital “ Savvy companies understand thatto create channels represent opportunities different interaction whereas another may prefer to speak to a live customer- different experiences that truly leverage eachAn omnichannel service agent. Unfortunately, channel. Having a portfolio of channels createsrelationship strategy businesses can’t automatically the opportunity to give a consumer the right replace some channels in favor interaction at the right time.Jettison the idea of a singlesubgroup within the enterprise thatis responsible for the entire “digital” of others; they must allow the consumer to choose from among a portfolio of channels, depending on ”channel. Instead, the enterprise must the consumer’s needs at any given That said, every challenge reveals an represent opportunities to createfigure out how all the groups will time. opportunity. These new channels— different experiences that trulywork in concert. Each group should whether through mobile apps leverage each channel. Having awork together toward an overarching, For example, Virgin America is on smartphones, through social- portfolio of channels creates theomnichannel relationship strategy, offering customer service through networking capabilities such as opportunity to give a consumer theone that promotes collaboration and Twitter and Facebook. Customer Pinterest, or through corporate right interaction at the right time.sharing among channels to manage support monitors tweets and websites—allow new ways ofrelationships with consumers in an Facebook posts to the airline for communicating with the consumer Consider the way a retailer interactsongoing fashion. indications that someone needs help, that help increase the quality and with a customer: a discount delivered allowing consumers to make simple utility of interactions. It’s not a in an e-mail is often consideredEnterprises must find out how requests, like reserving a wheelchair question of replacing channels or “spam,” while that same discountand where consumers are most for a flight, without waiting on hold even weaving them all together into delivered as a consumer scans acomfortable interacting with them. for a call center rep.vi a single interface. Savvy companies product QR code is just good service.That may depend on circumstances understand that different channels Understanding how, when, and12
  13. 13. Trend 1. Relationships at Scale Accenture Technology Vision 2013 and ticking down by 1 percent every don’t. Better insight into customer second until the consumer entered preferences allows businesses to the Meat Pack store. When a discount iterate product development faster, was redeemed, the person’s Facebook to scale up production or kill a status automatically changed to feature or a service before too much inform the world. is invested. They can build future business cases on a more substantial Similarly, businesses will have to disrupt and substantiated information base. the mindset that says “relationships” equate to “marketing.” This means Higher customer satisfaction that IT must forge close links with equates to repeat customerswhere businesses should contact capabilities beyond social media (such other groups that touch consumers and higher revenue throughconsumers can create a brand as analytics and mobile technology) and reach out to business units, such increased volumes and loweredconnection that rivals the face-to- in order to reboot efforts to engage as product development, that manage cost of customer acquisition. Butface relationship associated with the consumers in ways perhaps imagined interactions with other communities. companies also gain from a bettersmall-town general store. but not implemented. For example, understanding of consumers. The Guatemalan shoe store Meat Pack deeper the relationship with theAt the same time, businesses should looked to mobile interactions to customer, the more reliable therecognize that social and mobile are pinch customers from competitors Insight leads to metrics the customer provides.not just a set of new channels for through a mobile app called Hijack. vii increased consumer Again, it’s the difference betweenpushing information to consumers. When potential customers entered a satisfaction the vagueness of a focus group andIt’s about changing the channel’s rival’s store, they were detected using the specificity of actual consumerfunction from push—ads, for example— the app and offered a promotion at With deeper interaction, businesses behavior—the importance of trackingto services and value. Businesses Meat Pack. A discount countdown can more quickly understand what what consumers do, not whatmust coalesce on a variety of new was displayed, starting at 99 percent consumers like—and what they they say. 13
  14. 14. Trend 1. Relationships at Scale Accenture Technology Vision 2013Your 100-day plan With consumers changing their about the consumer from the attitudes about sharing and communications channels he uses toIn 100 days, refresh the mindset of your consumer chan- accessing information and becoming better understand his behavior andnels to move beyond transactions to, in addition, drive willing to be more transparent, needs. Consumers newly accustomedconsumer interactions and relationships. forward-thinking enterprises are to accessing account information realizing that they can benefit in corporate databases to transact• Catalog your consumer interactions, tools, and channels. from an unprecedented granular and interact have ratcheted up their view of consumers—not just what expectations about how businesses• Educate your internal teams on the tools and channels they bought, but when, and where, will communicate and respond. But currently available. and what they were doing before companies now have the ability to and while they made the purchase make the consumer feel special, to• Determine the questions to be answered to create a decision. Businesses can do this by increase engagement, and to develop holistic view of your customer. taking advantage of internal data intimacy, as never before. sources (that is, instrumentation and• Identify metrics for tracking the success of your social quantification of decision making and communication channels in terms of a consumer captured by their own software) relationship. and external data sources (such as social-media sites and information• Begin “social listening” to build momentum toward your gathered by resellers and partners). larger strategy. The goal, to use a term that may• Propagate current tools and channels across business sound contradictory, is mass units where applicable. personalization—using technology to provide resort service at a motel cost. That is, using what you know14
  15. 15. Trend 1. Relationships at Scale Accenture Technology Vision 2013A new level of richer the data collected becomes. This time next yearcustomer intimacy Companies can boost the quality of data in much the same way In 365 days, reimagine your consumer strategy acrossCompanies that embark on this that night-vision goggles amplify the enterprise as a consumer-relationship strategy andvoyage of mass personalization can available vision: to shine a light on create the cross-organizational ties to drive it.expect a variety of new benefits. data and behaviors, already present, • Create a cross-functional team responsible for reviewing, Because shoppers can move— but previously undetected. updating, and improving your consumer-relationship quickly and entirely digitally—from strategy.awareness to recommendation A new level of intimacy withto purchase after interacting on consumers is now possible. But • Standardize your methodology around how consumer blogs, Twitter, Yelp, and other social effectively scaling meaningful interactions are shared throughout the organization.sources, it’s actually possible to relationships represents a real • Redesign your organization’s communication-channel compress the sales cycle. Offering change in the way companies strategy in light of the holistic consumer-relationship on-the-spot promotions through need to approach their consumer strategy.digital channels also potentially strategies. This shift is beingincreases impulse purchases. enabled by technology; however, • Establish an environment to test and then deploy Providers that are better at implementing it will require a new, technologies that will support your consumer- controlling that experience will unified approach across IT and the relationship strategy.benefit by lowering the costs of business. Now is the time to take • Review your metrics and data to improve your consumer sales and marketing and generating the next step. The customers are out interactions and update your consumer-relationship greater sales volumes. there; it’s time for the enterprise to strategy. get to know them.Personalization also creates avirtuous loop. The more youpersonalize the experience, the 15
  16. 16. Trend 1. Relationships at Scale Accenture Technology Vision 2013Sidebar: Gauging the Value of TrustDuring its bankruptcy proceedings in potentially be used and, crucially, data—and we spelled out practical sensitive about the use of their data,2011, Borders, the bookstore chain, won to give them a choice in the steps that would help companies even though more and more data isjudicial approval to sell its intellectual matter shows how companies and move toward operating models sought from them and more isproperty, including a customer consumers may interact in the future based on trust. Even before the given by them, both willinglydatabase, to Barnes & Noble. The on issues of privacy. It’s also a prime age of social media and big data, and unwittingly.issue at stake: shoppers’ data privacy.i example of the mobility of data our recommendations were clear: these days—and a good indicator of companies must seek ways to use In general, individuals are moreAnticipating privacy concerns, the importance of establishing, let knowledge about their customers likely to think in terms of what’s inBorders’ lawyers persuaded the court alone maintaining, accountability for to provide better services to them,it for them if they give out personalto appoint an independent third such data. doing so in ways that increase trust, data. “When you put informationparty to consider the privacy impact not suspicion. about yourself out there, that’s aon the 48 million Borders customers A decade ago, Accenture asked transaction,” Margaret Stewart,whose personal information would whether enterprises could Ten years on, plenty has changed: Facebook’s director of productbe transferred with the sale of the differentiate themselves based on the entities collecting information design, told Fast Company recently.intellectual property. In the end, the consumer trust. We flagged five ii are savvier than ever about data, and “But you need to feel that you’recustomers were given the chance to dimensions of trust—safekeeping of they have more channels through getting something back in return.opt out of the transfer. personal information, control over which to gather it (think “big data”) When we start to provide things the data, personal access to one’s and more powerful tools with which that feel valuable to people, it willThe bookseller’s readiness to tell data, accountability, and the benefits to extract insights from it. For make that transaction make sense.” iiicustomers how their data could of letting corporations use one’s their part, individuals are far more16
  17. 17. Trend 1. Relationships at Scale Accenture Technology Vision 2013Accenture’s recommendations for that can build a reputation for Of course, a critical aspect of trustbusinesses are even more relevant providing valuable services while building is the assurance that alltoday, and the stakes have gotten using consumers’ personal data in of the business partners in anhigher—with consumers’ greater trustworthy ways will have a big organization’s value chain abide bysensitivity being just one of the advantage over competitors. Its the same high principles. If a personfactors in play. Accenture believes brand will be more valuable, it will using a supposedly trust-basedthat a vital component is still have more opportunities to attract solution is suddenly deluged withmissing from the privacy debate: and retain lifetime customers, and unwanted phone calls and e-maila proactive business perspective it can become a preferred partner from related companies, you canfocused not just on compliance in a larger value chain of goods bet that’s a customer lost forever.with laws that protect privacy but and services.also on the notion that companiescan generate business value by Implicit in this idea is the beliefearning consumer trust. that trust has an economic value and, as such, can be used to winTo date, few businesses convincingly competitive advantage. In thatdemonstrate that they grasp respect, thinking of trust as anthe notion that they need to go economic asset is not different frombeyond just collecting information how a bank views and manages itsabout consumers. The company customers’ accounts. 17
  18. 18. Trend 1. Relationships at scale Accenture Technology Vision 2013 Design for Analytics Formulate the questions, and design for the answers 18
  19. 19. Trend 2. Design for Analytics Accenture Technology Vision 2013Design for AnalyticsBusiness intelligence. Data analytics. Big data. Companies are no longer suffering from a lack of data;they’re suffering from a lack of the right data. Business leaders need the right data in order to effectivelydefine the strategic direction of the enterprise. The current generation of software was designed forfunctionality. The next generation must be designed for analytics as well. Predicting the future isn’t difficult. unstructured data from previously Predicting the future with some unplumbed sources (such as social degree of accuracy is. Businesses are media, call center transcripts, and under the impression that the more e-mail). They are working under data they have, the easier it will be the assumption that “more data” is to predict the future and thus secure equivalent to “better data.” They are competitive advantage. only partially correct. Collecting more data points makes The problem is no longer the it easier to discern trends, patterns, absence of enough data. In fact, opportunities, and competitive enterprises are now being flooded advantage. That’s one of the reasons with new data, big-data tools companies are focusing so heavily mine countless new unstructured- on big data and the ability to utilize data sources, social media now 19
  20. 20. Trend 2. Design for Analytics Accenture Technology Vision 2013provide unprecedented information for the application to do its job. If capture more of it where they can. help the company achieve its mostabout consumers, and sensors and an e-commerce application needs But generally they have not done this basic goals. With every data gap,embedded devices expand the ability to know what device a consumer with any specific question in mind. enterprises miss an opportunity toto gather data into areas where is connecting from in order to make better decisions or improvecomputing power has never been authenticate the consumer, it So, when this data is repurposed how they run their business. To movebefore. The problem now becomes captures that information; if the as an input to make strategic forward, to answer the question, youthe absence of the right data. application doesn’t need to know, decisions—such as entering a new have to adopt a data-first strategy and knowing doesn’t support the market or pricing a new service— and plug the data gaps.The IT world we live in today revolves user experience, it doesn’t. Most glaring information gaps oftenaround software applications. companies have also taken the next arise. The goal isn’t to amass data. Plugging these data gaps—that is,Businesses have developed data step—for example, they recognize It’s about enabling the business getting the right data—requiresmodels to support application that consumer information is to answer a question, to create a fundamental shift in designfunctionality, which is necessary valuable for future insight, so they insight, and to use that insight to philosophy for how new applications “ The now being flooded with new data,of enoughtools mine countless new are problem is no longer the absence big-data data. In fact, enterprises unstructured-data sources, social media now provide unprecedented information about consumers, and sensors and embedded devices expand the ability to gather data into areas where computing power has never been before. The problem now becomes the absence of the right data. ”20
  21. 21. Trend 2. Design for Analytics Accenture Technology Vision 2013are built and existing applications To get the right data, you have to The result is the first stage of a dataare configured, instrumented, and design applications to explicitly supply chain, where applicationsupdated. Applications still must capture the specific data needed, serve not only their users butmeet users’ functionality needs, update user interfaces to get also the business as it looks tobut applications now must also be new pieces of data, and add applications’ data for answers to thedesigned to specifically produce data data collection as a new set of questions most important tothat answers more of an enterprise’s requirements within the software the business.questions. Technology is no longer procurement process. Thesethe barrier. The barrier is strategic capabilities become a piece of thebusiness foresight to formulate upfront processes for how you laythe questions. out road maps for your systems, not something that is added on after the fact. 21
  22. 22. Trend 2. Design for Analytics Accenture Technology Vision 2013The minimum What transpired before it happened?mindset: data as a What transpired afterward? It couldstrategic asset be a purchasing scenario that reveals the associated items that customersBusinesses have the right idea: buy. But it could also be a faileddata is a strategic asset. Data (good online purchase. Did someone get adata) makes you smarter. A recent coupon from Starbucks but go nextstudy of 179 companies, led by an door to Dunkin’ Donuts anyway?economist at the MIT Sloan Schoolof Management, suggests that The desire to get these answerscompanies that adopted “data- is why companies are investingdriven decision-making” have so heavily in big data, business Quantifying the tick. They must step out of the boxproductivity levels 5 to 6 percent intelligence, and reporting tools. world around us and formulate the right questionshigher than can be explained by The fact that they are still investing that will help the business makeother factors, including investment means that they haven’t yet found When enterprises don’t have access strategic decisions. The data that’sin technology.i the solution, even though so much to the right data, they need to start necessary will become evident. The technology is available. looking differently at how they challenge, then, will be figuring outSavvy companies are working to go about getting data. Companies not only how to collect it, but, indiscern more about transactions Companies need to start looking can’t rely solely on the limited many cases, how to create it.and events than ever before. for the solution to the problem a universe of data that they alreadyThey’re looking for context and different way. have. The focus now needs to Many software vendors are alreadyways to make the insights they shift to quantifying the enterprise: starting to make it easier forgain actionable. They’re trying to capturing the actions, interactions, enterprises to tackle this challenge.understand not only what happened and attributes of the employees and Third parties are increasingly creatingbut why. And, when did it happen? processes that make an enterprise Application Program Interfaces to22
  23. 23. Trend 2. Design for Analytics Accenture Technology Vision 2013 and their ultimate score but also The companies that have already their keystrokes, how long it took defined their top-level strategic“ Whenthey need todon’t have access to the right data, enterprises start looking differently at them to answer individual questions, and if they stopped in the middle of questions are striking first. Many companies in logistics, an assignment or question. “Were transportation, and energy, for how they go about getting data. Companies physically collecting thousands of instance, have already clearly defined can’t rely solely on the limited universe of data data points per student per day,” said their need to track the movement of that they already have. founder and CEO Jose Ferreira.iii goods and the usage of power. ” Companies are also looking to the UPS has developed a system of blossoming of sensor technology in-vehicle sensors and handheld allow data to be more easily extracted help improve its recommendations to fill data gaps as they arise. This computers to track information not from software products, including engine, Netflix tracks how customers technology represents a way to only about its shipments but also packaged software applications. interact with on-demand film create and collect information from about its trucks’ movements. This This further puts the onus on downloads. It looks at metrics physical environments and devices is what helped it determine that companies to figure out what data such as when customers pause the that today represent blind spots in a making left turns slowed deliveries they should be gathering from movie and what scenes they watch company’s data portfolio. Research and increased fuel costs as a result their systems to answer the over again.ii In another example, to company Strategy Analytics predicts of idling; it used the information company’s broader questions. continuously improve the quality that cellular machine-to-machine to create routes that minimized and effectiveness of its online class (M2M) connections necessary to left turns, saving the company 9 v Companies are also increasingly materials, Knewton incorporates the transport the data from distributed million gallons of gas annually. In adding instrumentation to their ability to track specific data about sensors to the data center will grow addition, knowing when trucks are custom applications, designing them how students use its software. It from 277 million in 2012 to 2.5 going to reach their destinations to collect and report transactions, tracks not only how long it takes billion by 2020.iv helps UPS’s employees ensure that activities, or logs. For instance, to students to complete an assignment there are sufficient resources to load 23
  24. 24. Trend 2. Design for Analytics Accenture Technology Vision 2013and unload them. Knowing where the wireless information network the quantification of the consumer. and transmit information, primarilyshipments are in transit (and sharing enhances well efficiency and reduces Facebook has ingrained a propensity in the personal-fitness space. Thethat information on a website) aids operating costs because workers no for people to share their likes and Nike+ FuelBand collects data aboutcustomer service. longer have to physically visit each dislikes. Businesses have known calories burned, for example, and well to collect operating data and for years that customers prefer FitBit collects data regarding users’In the energy industry, Shell joint reconfigure the system. This also recommendations from known sleep patterns. Personal fitnessventure Petroleum Development contributes to personnel safety. sources. The ability to cultivate and and social media also overlap onOman (PDO) has deployed a wireless harvest customer information for websites where people track theirsystem in its oil field. It is currentlyQuantifying the sales, marketing, and advertising diets. A lot of consumer data existswiring 5,000 wells, which technicians consumer represents a rich opportunity to grab today, but companies need toremotely monitor and manage, to some of the data that they need in determine the right data for themprovide real-time communication To date, of course, the ripest area order to resolve questions about and then start processes to acquire viand control. According to PDO, for the collection of data has been their consumers that have long been that data. left unanswered. Websites already have multiple“ The ability tofor sales, marketing, and information cultivate and harvest customer The aggregation of social and mobile capabilities through applications capabilities for tracking activity, but sometimes what is needed can be such as Waze (a crowd-sourced gleaned by simply asking customers advertising represents a rich opportunity navigation app) and Yelp (online and prospects for input. However, to grab some of the data that [businesses] consumer reviews) has heightened it’s important to note that often it’s need in order to resolve questions about the ability for consumers to quantify better to track actual activity than themselves. But there’s also been to poll—there’s typically a delta their consumers that have long been left an associated increase in personal between what people say they want unanswered. ” electronic and medical devices, beyond smartphones, that collect and what people actually want.24
  25. 25. Trend 2. Design for Analytics Accenture Technology Vision 2013Businesses also have a newfound What do these examples portend? into new products (think insights) Once you’ve designed for analytics,ability to utilize pieces of data that Opportunities for consumer data as you look at different pieces of how do you actually conductthey may already possess but that feeds are everywhere. You just need data in aggregate. Just as important, the analytics? Analytics havepreviously hasn’t been easily usable: to form the right questions for your companies should be able to feed always been a challenge, butunstructured data represented by business and start strategically information back to their suppliers partially because businesses havefree text in e-mail, tweets, and other quantifying the world around you. in order to help them incrementally often conducted the process inmedia; audio files from call center improve the latter’s data collection— an exploratory fashion—they’veconversations; and video from sites just as an auto manufacturer must collected available data and thenwhere customers interact Creating a data report component failures back to analyzed it, rather than assiduouslywith products. supply chain suppliers in order to improve quality. determining what data will aid their business strategy and then ensuringFinally, consider the availability of It’s time to start treating your data Once you identify the data supply that the right data is collected toinformation that’s been collected less as a warehouse and more as a chain, how do you harness it? analyze. They can derive increasedby others for integration into your supply chain. Having identified youranalysis. This could come from a sources of data, you must corralvariety of sources—service providers, it for analysis, in the same waysocial networks, search engines, even that the various components of anvendor software already running automobile from multiple suppliersin your data centers. For instance, come together on an assembly line.Intellicorp has developed a software Recognize that the data won’t beproduct that can analyze changes static; it will be manipulated aswithin SAP ERP applications; it sells it goes through the supply chain,the product to SAP customers for added to other pieces of data,data-management and data-life- updated as more recent data comescycle uses. along, and sometimes transformed 25
  26. 26. Trend 2. Design for Analytics Accenture Technology Vision 2013value by collecting data with the working, but they do see that they’re Foresight: specific questions they are tryingreal end purpose in mind. The result: relying more on electric power, establishing a to answer; many will not be ablebetter data, which equals which delivers higher levels of to, and fewer still will have thosebetter insight. customer satisfaction. feedback loop questions documented and feeding for insight into teams to answer them. ThoughFord Motor Company research In a short time, savvy businesses obvious on the surface, this tasklogically deduced that the customers can create a virtuous feedback loop What will the feedback loop look should not be underestimated. It isof its hybrid vehicles preferred using that allows them to collect, analyze, like when software is designed for not trivial. And it is not somethingelectric power as much as possible. and respond in an increasingly analytics? It starts with setting goals for which most companies have aHowever, the system was originally agile manner, and then revisit their and creating questions that need formal process. They need todesigned to deploy electric power questions on a periodic basis in to be answered. Ask the leaders of create one.based on other parameters, such as order to continuously assess new organizations within your enterpriseamount of battery power remaining. data in the context of changing if they can clearly articulate the keyBut Ford developed an algorithm business conditions and strategies.using data from the cars’ built-in This will require the integratedGPS systems to track when drivers involvement of IT with the business,were close to home or frequently because IT may need to tweak datavisited locations close to home.Knowing that the vehicles were vii collection mechanisms, including user interfaces, on mobile apps and “ What softwarefeedback loopfor analytics? when will the is designed look likemore likely to be within the range enterprise applications in order toof a battery charge, the engineers acquire additional data points. It starts with setting goals and creating questions that need to be answered. ”were able to adjust the powertraincontrols to rely more on electricitythan on gasoline in those scenarios.Customers don’t see the algorithm26
  27. 27. Trend 2. Design for Analytics Accenture Technology Vision 2013 harvesting obvious to the user yet driven or at least to work with them “ You will need to your software data unobtrusive. As part of an update to to provide the required data. Procter to distribute the its online marketplace, eBay posts & Gamble and Walmart actively requirements development photographs of merchandise to share supply chain information with users, Pinterest style, based on data each other to help reduce inventories team, of course, but also begin working with derived from previous purchases, while increasing sales by focusing on your partners and software vendors so that previous searches, and stated rapidly changing customer demands. ix they can begin to collect data as well. ” interests. A better user interface, yes, but this design also gives eBay Businesses must also think about the ability to get deeper insight into how they can maximize the its users not only by simply asking availability of data sources. LookWith a process in place, you then Then you are ready to close the them for their preferences but also at currently packaged softwareneed to align the questions with loop. To whom will the information by looking at how they interact with applications or SaaS applications viiidata requirements and disseminate be distributed so that it can be the pictures shown to them. for how they can be reconfigured orthose requirements accordingly. acted upon? Designing the process how APIs can be utilized to supplyYou will need to distribute the data so that information flows into the Developers must use design data. In existing applications, thinkrequirements to your software organization is equally important. methodologies that allow rapid about how the interface can bedevelopment team, of course, but testing, updating, and reconfiguring. updated for better data gathering—also work with your partners and The cultural shift to an insight- In that way, businesses can for instance, adding new entrysoftware vendors so that they can driven business will also require determine which methods work points to accommodate inputsbegin to collect data as well. Finally, different thinking about personnel best in acquiring the strongest data. about seasonal needs or short-termthink about other sources of data and partners. Corporate developers Businesses will also have to rethink promotions. In new applications,you want to incorporate for analysis. will need to focus on incorporating their relationships with partner designing for data capture should methods of data harvesting into user organizations in order to persuade carry as much weight as the initial interface designs, making the data them to become equally insight- application requirements. 27
  28. 28. Trend 2. Design for Analytics Accenture Technology Vision 2013Changing a looking for ways to collect better Your 100-day plancorporate culture data, more data, fresher data. It’s not just the software that In 100 days, define the key strategic questions for theDesigning for analytics is about should be refreshed to collect data business and the data needed to answer them.more than simply adding a few and conduct analytics—it’s thedata requirements to a software employees, too.development cycle or an RFP; it is • Update or build your data catalog, identifying what data the next step in transforming the By deploying these capabilities, you have.enterprise culture to become insight- businesses will move themselvesdriven. It’s about blurring the lines closer to the goal of being • Determine your in-flight analytics projects and what between business functions (as the completely insight-driven, of questions these projects are trying to answer.consumers of business data) and IT being the kind of company that(as the purveyors of data) to make systematically uses data at all levels • Prioritize the existing strategic questions your both more effective. of the organization to become organization is working on. smarter and more successful. It’sPushing these ideas, many time to take the next step. It’s time • Begin to catalog new data sources (internal and external) enterprises will go so far as to to evolve applications and products needed to fill in critical missing data elements.create a prominent new role in beyond just user functionalitythe organization, a chief data and make them actively feed your • Tap the new data sources where they fill identified data officer, a data champion whose analytics. Give the business not just gaps.responsibilities encompass the data, but the right data.collection, prioritization, distribution, • Define the required skills and experience needed to create and analysis of data. But, with or data champions across the organization.without a data champion, eachemployee must be tasked with28
  29. 29. Trend 2. Design for Analytics Accenture Technology Vision 2013This time next yearIn 365 days, establish your data supply chain across theenterprise, quantifying the world around you to addressstrategic gaps.• Create data champions across the organization, for example, a chief data officer.• Work across the organization to determine and prioritize your future strategic questions.• Look at your data catalog and determine the long-term gaps.• Fill these gaps in the data catalog—purchase data, develop new APIs, and ask your partners.• Embed new data requirements into software road maps and procurement plans.• Begin designing software to capture new data within custom development and software update cycles.• Develop a data creation strategy to attain data through the setup of new data sources: M2M, new software, and data creation from partners.• Put the data cycle in motion, revisiting data needs as new strategic questions arise. 29
  30. 30. Trend 2. Design for Analytics Accenture Technology Vision 2013Sidebar: Why the Business Now Needs to Care About APIsIn earlier times, applications (and APIs—the “glue” that connects The beauty of APIs is that they data and services to meettheir data) didn’t really travel far in apps with business processes and uncouple the “front end” service— business goals.the enterprise. Applications were with each other—have typically the business access—from the ITspecific to jobs, and the data they been a fairly low-level concern for mechanisms that support it. As user The benefit of discrete APIproduced remained locked inside, programmers and architects. But with groups and use cases change, access management is that it keepsrarely fulfilling its true potential for the business’s increasing reliance on and management-policy updates complexity under control. Specifically,the enterprise. Data on consumer data and services—both public and don’t affect IT implementation, and the API management solutionssegments used by the marketing private—and the growing reuse of vice versa: APIs can provide self- now offered by providers such asgroup would rarely have been sought those building blocks, APIs are rapidly serve access for developers—internal, Apigee, Layer 7 Technologies, andby engineering or manufacturing, say, becoming a strategic concern. For partner, and independent third party— Mashery make it possible to organize,or even offered to external parties. example, the car-sharing service giving others the power to create expose, and monetize APIs. The RelayRides relies on an API created new and innovative use cases. And organization benefit is very real:Things are different today. It’s by General Motors and OnStar to IT updates can happen at any time formal management of APIs dealsbecoming increasingly important for access some of the remote control without users knowing it, or needing with the sprawl, redundancies, andthe underlying data and business and telematics elements of the to know. Managed well, APIs can inefficiencies that will proliferate asfunctions to be made available service.i Organizations must now help enterprises handle complexity as increasingly quantified enterprisesfor general use—able to be quickly consciously manage the proliferation the need to access data and services begin to share many more datareworked in ways that help shorten of increasingly important APIs. grows. In an increasingly quantified sources and services, both internallycycle times, cut costs, or accelerate digital world, API management and externally.revenue elsewhere in the business. provides a mechanism to leverage30
  31. 31. Trend 2. Design for Analytics Accenture Technology Vision 2013API management tools help expose who is using your APIs and which growing global workforce, it would is based on the same core “buildinga common platform of functionality. APIs are most valuable, as well as be increasingly critical for business block” concepts as SOA, but it hasThey minimize rework. And they traceability of IT capability against users to have access to enterprise and evolved to take advantage of theaccelerate development, which is a business use, ensuring business application data in real time in order agility and simplicity of cloud andkey first step when embarking on process alignment and verification to scale up those applications. Web-based approaches.cloud, mobile, or social roadmaps. against business cases.Just one snapshot: construction and The IT team opted to build an API So the next question is, Who needs toengineering company Bechtel has an A case in point: Accenture is carefully layer that would make available the be responsible for API management?API strategy that provides relevant managing APIs as a key step to enable various data and business functions Currently, the only people who knowinformation to its global teams from cloud and mobile strategies across for general use and standardize or care about APIs are found on thethe data generated and stored as it our global workforce of more than access across users. The APIs could development teams. But there’s aexecutes its projects, thereby enabling 250,000 people. With as-a-service then be used to help implement new need for a centralized function thatthe teams to be more agile and better and mobile-device models playing services and to provide new user brings some order and disciplineequipped to make informed decisions.ii larger roles in Accenture’s delivery experiences on mobile devices such as to today’s random and informal of functionality for activities such as tablets and smartphones. interactions between business usersFinally, API management makes time entry, hotel reservations, and and IT staff. Does the buck stop onit possible to measure the value business travel, Accenture’s internal If API management sounds a lot like the CIO’s desk? Or is this part of theof APIs. Imagine a scenario that IT team realized that integration service-oriented architecture (SOA)— purview of a newly minted chiefinvolves explicit governance of APIs; with disparate systems was going an influential technology concept a data officer? In either case, the APIyou have visibility and control into to become challenging. And with a decade ago—that’s because it is. It management role must be defined. 31
  32. 32. Trend 1. Relationships at scale Accenture Technology Vision 2013 Data Velocity Matching the speed of decision to the speed of action 32
  33. 33. Trend 3. Data Velocity Accenture Technology Vision 2013Data VelocityBusiness leaders have been bombarded with statistics about the soaring volumes of data that they canmine for precious insights. They have been deluged with articles describing the incredible variety of“external” data hidden in everything from tweets and blogs to sensor outputs and GPS data from mobilephones. But the next perspective on data that deserves attention is data velocity—the pace at which datacan be gathered, sorted, and analyzed in order to produce insights that managers can act on quickly. Asexpectations of near-instant responses become the norm, business leaders will rely heavily on higher datavelocities to gain a competitive edge. It’s become an article of faith data from platforms like Twitter, among business leaders that Facebook, and Pinterest to second- their data contains a treasury of guess consumer behavior, increasing powerful insights that can help their sales conversion rates by 10 to 15 organizations make money. They’re percent in the process.i also getting used to the idea that “data” can mean what’s gleaned But there’s another aspect that from Facebook postings or remotely business leaders have yet to fully located machines just as much as grasp: data velocity. That concept what’s in corporate data centers. by itself is not new; together with Just ask Walmart, which deployed “variety” and “volume,” it has been a new search engine last fall part of the “three Vs” construct for on Walmart.com that relies on talking about data—a construct 33
  34. 34. Trend 3. Data Velocity Accenture Technology Vision 2013developed in 2001, long before “big explained that he’s not seeking newdata” became such an overused term.iiAnd at the most fundamental level, “ Today, it’s of the organization’s actions to the speed increasingly important to match types of data; what he wants is to get everything from point-of-salethere is nothing novel about the data to statistics on inventories and the speed of its opportunities.idea of faster flows of data helpingorganizations get more done inless time. ” shipments more frequently and far faster, in more granular form than ever.ivBut the notion of velocity has been to generate actionable insights, the decision makers do business.iii The In all of these discussions aboutlargely eclipsed by the many recent organization will start losing out to old model, he said, would mean data velocity, note that we’re notadvances in technologies that have more responsive competitors. More that analysts would get back with talking about striving for someunlocked significant increases both worrisome, if the business hasn’t answers in two weeks. “You need real-time nirvana. What’s crucialin available volume (zettabyte upon begun using data-driven insight to to be able to answer that question is an improving rate of response,petabyte) and in variety (spanning detect and evaluate opportunities immediately,” he told the magazine. regardless of the rising volumes ofunstructured data such as pins in the first place, it runs even data to be accessed and analyzedon Pinterest as well as structured greater risks of falling behind. P&G is investing in virtual, “instant and irrespective of their proliferatingrecords of supply logistics and Consumer goods giant Procter & on” war rooms where professionals sources. Going forward, it will nocustomers’ purchase histories). Gamble is acutely aware of what’s meet in person or over video around longer be about the size of your at stake: CIO Filippo Passerini told continuous streams of fresh and data—it will be about matching theToday, it’s increasingly important InformationWeek that if P&G can relevant data, inviting the right velocity of your data to how fastto match the speed of the eliminate the “what” discussions and experts as soon as a problem your business processes need toorganization’s actions to the speed some of the “why”, and decision- surfaces. P&G’s objective is to give act on it.of its opportunities. If too much makers can jump right to how these decision-making forumstime elapses between acquisition of to solve a problem, that radically access to data as soon as possibledata and the ability to use the data increases the pace at which the after it has been collected. Passerini34

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