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Accenture technology vision_2013_feb_18[1]


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Accenture technology vision_2013_feb_18[1]

  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 digital efforts will be the key to how report on it, and, most importantly,25 years working to peel away than that. IT has become a driving we innovate and expand act on it.the nonessential pieces of their force, in many situations the driving our business.businesses; focus on the core, force, for how we effectively grow We no longer have to look far foroutsource the rest. But in this our companies. Every industry is There is a higher order of thinking—a examples. Here is Nike using wirelesspush to simplify, many companies now software driven; as such, every digital mindset—that will, we believe, sensors and Web technology tohave relegated IT to “keeping the company must adopt IT as one of separate tomorrow’s most able create a performance-trackinglights on.” Without information its core competencies. By this we organizations from their lesser rivals. system that allows it to create newand technology, a business is blind mean that software is absolutely Accenture observes that increasing services to monitor, and to improvein today’s digital world. You must integral to how we currently run numbers of farsighted organizations and create new training routines forchange the way you think about IT to our businesses as well as how we are recognizing IT as a strategic athletes. There is Ford, using sensormap a clear path forward. reimagine our businesses as the asset with which they can renew data to monitor both how a car world continues to change—how we vital aspects of their operations— operates and the driver’s behavior,Every business is now a redesign and produce things, how we optimizing at least and innovating and seeking to apply analytics todigital business. create and manage new commercial at best. As such, they are investing improve the experience for the transactions, how we begin to in the digital tools, the capabilities, next generation. iThe world has already changed collaborate at unprecedented levels and the skills to more easily identifyaround us, and IT is driving much of internally and with customers and useful data, evaluate it, excerpt it, These companies, and many morethe transformation. IT is a minimum suppliers. In the new world, our analyze it, derive insights from it, like them, clearly see digital asstandard for how we effectively run share it, manage it, comment on it, a strategic imperative—a tool of4
  5. 5. Introduction Accenture Technology Vision 2013competitive intent. They aren’t of their toughest problems—and has disrupted retail sectors far of the products themselves andwaiting for new technologies to be greatest opportunities. beyond books and changed the creates new ones; it allows accessdeveloped or to mature before they whole discussion about who “owns” to new consumers; it providesact. Nor should you. As it has always done—as is its IT. Similarly, Airbnb is sparking a the frameworks to create net new charter—our Technology Vision looks transformation in the traditional services. An organization cannot beThe 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 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. its supply chains; it becomes part 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 mass production. Advice delivered success has always been built on over the counter was replaced by relationships and on the relevance global call centers. A human face of products and services to buyers’ making a sale was often replaced by needs. Just a few generations ago, a Web page. consumers were often friends—and certainly neighbors—of the local That might imply that a growing grocer, pharmacist, and everyone else distance between companies and who 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 are “ Consumers are more than cookie file orfar less personal attention. customizing the experience for every interaction they have with faceless digitalYet now, the opposite is true: consumers regardless of the channel. transactions, more than atechnology 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 ”are more than faceless digital the interactions that consumers have differences.transactions, 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 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 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 “ Using analytics canallowing companies before to express likes, dislikes, and discounts and, for active posters, also establish deeper recommendations. They aren’t simply chances to be invited to a special purchasing a product or service— Social Suite in the ballpark and to consumer insights, 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 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 experience to be highly personalized. family, above all other forms networks are public, companies have iiithose experiences. These technologies They expect to be given the ability of advertising. an unprecedented opportunity tohave permanently altered the ways in to get pertinent, contextual track what people are saying aboutwhich consumers share information, information that relates to their Even watching TV is changing. them. More important, they havecollaborate, interact, entertain lives, their friends, their needs, Accenture research shows that the opportunity to use these newthemselves, inform themselves, and and their pursuits. And because more than 40 percent of consumers attitudes and technologies to createmaintain awareness of events around the experience is personalized it’s are showing increasing “second relationships, which will result inthem. Enterprises need to recognize also more powerful. Ninety-two screen” habits, using a smartphone customer acquisition and, for currentthe change and begin to harness it. percent of consumers globally say or tablet while watching TV such customers, repeat sales. they trust earned media, such as that they are accessing multipleAll of this contributes to a new word-of-mouth endorsements or streams of information at the samestandard among consumers: recommendations from friends and time.iv This could mean tweeting on Moving the mindsetthey expect the mobile and social a smartphone while watching a TV drama or viewing players’ statistics from transactions to while watching sports. For the 2011– relationships 2012 season, the National Hockey The goal is to use insight to League deployed an online game to change communication with be played while watching the Stanley consumers from transactions to Cup finals; fans won points by interactions to an unprecedented correctly predicting outcomes on the level of relationship and loyalty— ice, like the result of a face-off. the equivalent of frequent-flier programs on steroids. The problem Based on these new behaviors, is that, until now, most enterprises businesses face several related have viewed online channels opportunities: Because many of these primarily as a way to reduce costs,10
  11. 11. Trend 1. Relationships at Scale Accenture Technology Vision 2013not improve relationships. It’s time relevant offers, and respondto shift that mindset. to concerns.Consumers are already having It’s time for enterprises to reimagine “ It’s time for enterprises to reimagine ”conversations about enterprises their consumer engagement their consumer engagement strategy.among themselves. Fueled by every strategy. Too many are still stuck innew consumer service and every the days of ads and focus user experience, consumer When they want to communicatebehaviors have changed far faster to consumers, they broadcast athan businesses. Facebook, eBay, message through their marketingYelp, Foursquare, and many other channels, and when they need to engagement strategy is not based down the internal barriers thatcompanies in effect continue to hear back, they bring together a solely on technology. segment consumer interactionstrain huge segments of consumers representative group from which by channel in order to create ato communicate among themselves, they can extrapolate insights. Today, That new consumer-engagement unified consumer strategy acrossoutside the purview of businesses, the channels are increasing (think strategy will require aggregated all channels. Siloed approachescoming back to a business site YouTube, Twitter, customer service insight across applications so that erode the value of integratedonly to conduct final transactions. chat) and consumer insight can each channel feeds information customer interactions. Burberry,Companies may not be able to, and come from a much wider sample of into a holistic view of consumers. for example, jointly developed anfrankly shouldn’t, take complete consumer and information sources: That means more collaboration application with SAP that placescontrol of the conversations their the Web, mobile technology, social- across sales and marketing and all the consumer informationconsumers are having in these new media sites, and others. But it’s across digital and physical sales Burberry has from its separateelectronic storefronts and plazas. important to remember in this channels, and even the ability to customer channels in the hand of vBut they do need to figure out how scenario that technology is only a track and acquire information its sales associates. In the store,to become participants, react with tool. Reimagining a consumer beyond the business’s own they can use an iPad to access a channels. Businesses should break shopper’s profile that pulls together 11
  12. 12. Trend 1. Relationships at Scale Accenture Technology Vision 2013 “Savvy companies understand thatto create contact details, transactional That may depend on circumstances history, lifetime spending statistics, as varied as demographics or different recommendations based on proximity to a buying decision; purchases, and social-media one customer may prefer a digital channels represent opportunities comments regarding the brand. interaction whereas another may different experiences that truly leverage each prefer to speak to a live customer- channel. Having a portfolio of channels createsAn omnichannel service agent. Unfortunately, the opportunity to give a consumer the rightrelationship strategy businesses can’t automatically ” replace some channels in favor interaction at the right time.Jettison the idea of a single of others; they must allow thesubgroup within the enterprise that consumer to choose from among ais responsible for the entire “digital” portfolio of channels, depending on That said, every challenge reveals an represent opportunities to createchannel. Instead, the enterprise must the consumer’s needs at any given opportunity. These new channels— different experiences that trulyfigure out how all the groups will time. whether through mobile apps leverage each channel. Having awork in concert. Each group should on smartphones, through social- portfolio of channels creates thework together toward an overarching, For example, Virgin America is networking capabilities such as opportunity to give a consumer theomnichannel relationship strategy, offering customer service through Pinterest, or through corporate right interaction at the right that promotes collaboration and Twitter and Facebook. Customer websites—allow new ways ofsharing among channels to manage support monitors tweets and communicating with the consumer Consider the way a retailer interactsrelationships with consumers in an Facebook posts to the airline for that help increase the quality and with a customer: a discount deliveredongoing fashion. indications that someone needs help, utility of interactions. It’s not a in an e-mail is often considered allowing consumers to make simple question of replacing channels or “spam,” while that same discountEnterprises must find out how requests, like reserving a wheelchair even weaving them all together into delivered as a consumer scans aand where consumers are most for a flight, without waiting on hold a single interface. Savvy companies product QR code is just good service.comfortable interacting with them. for a call center understand that different channels Understanding how, when, and12
  13. 13. Trend 1. Relationships at Scale Accenture Technology Vision 2013 was displayed, starting at 99 percent don’t. Better insight into customer and ticking down by 1 percent every preferences allows businesses to second until the consumer entered iterate product development faster, the Meat Pack store. When a discount to scale up production or kill a was redeemed, the person’s Facebook feature or a service before too much status automatically changed to is invested. They can build future inform the world. business cases on a more substantial and substantiated information base. Similarly, businesses will have to disrupt the mindset that says Higher customer satisfaction “relationships” equate to “marketing.” equates to repeat customerswhere businesses should contact a variety of new capabilities beyond This means that IT must forge close and higher revenue throughconsumers can create a brand social media (such as analytics links with other groups that touch increased volumes and loweredconnection that rivals the face-to- and mobile technology) in order to consumers and reach out to business cost of customer acquisition. Butface relationship associated with the reboot efforts to engage consumers units, such as product development, companies also gain from a bettersmall-town general store. in ways perhaps imagined but that manage interactions with other understanding of consumers. The not implemented. For example, communities. deeper the relationship with theAt the same time, businesses Guatemalan shoe store Meat Pack customer, the more reliable theshould recognize that social and looked to mobile interactions to Insight leads to metrics the customer are not just a set of new pinch customers from competitors vii increased consumer Again, it’s the difference betweenchannels for pushing information through a mobile app called Hijack. the vagueness of a focus group andto consumers. It’s about changing When potential customers entered a satisfaction the specificity of actual consumerthe channel’s function from push— rival’s store, they were detected using With deeper interaction, businesses behavior—the importance of trackingads, for example—to services and the app and offered a promotion at can more quickly understand what what consumers do, not whatvalue. Businesses must coalesce on Meat Pack. A discount countdown 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 accessing information and becoming better understand his behavior andchannels to move beyond transactions to, in addition, willing to be more transparent, needs. Consumers newly accustomeddrive consumer 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 year Companies can boost the qualitycustomer intimacy 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 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 The bookseller’s readiness to tell data, accountability, and the benefits to extract insights from it. Forin 2011, Borders, the bookstore customers how their data could of letting corporations use one’s their part, individuals are far morechain, won judicial approval to sell potentially be used and, crucially, data—and we spelled out practical sensitive about the use of their data,its intellectual property, including to give them a choice in the steps that would help companies even though more and more data isa customer database, to Barnes & matter shows how companies and move toward operating models sought from them and more isNoble. The issue at stake: shoppers’ consumers may interact in the future based on trust. Even before the given by them, both willinglydata privacy.i on issues of privacy. It’s also a prime age of social media and big data, and unwittingly. example of the mobility of data our recommendations were clear:Anticipating privacy concerns, these days—and a good indicator of companies must seek ways to use In general, individuals are moreBorders’ lawyers persuaded the court the importance of establishing, let knowledge about their customers likely to think in terms of what’s into appoint an independent third alone maintaining, accountability for to provide better services to them, it for them if they give out personalparty to consider the privacy impact such data. doing so in ways that increase trust, data. “When you put informationon the 48 million Borders customers not suspicion. about yourself out there, that’s awhose personal information would A decade ago, Accenture asked transaction,” Margaret Stewart,be transferred with the sale of the whether enterprises could Ten years on, plenty has changed: Facebook’s director of productintellectual property. In the end, the differentiate themselves based on the entities collecting information design, told Fast Company recently.customers were given the chance to consumer trust.ii We flagged five are savvier than ever about data, and “But you need to feel that you’reopt out of the transfer. dimensions of trust—safekeeping of they have more channels through getting something back in return. 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 which16
  17. 17. Trend 1. Relationships at Scale Accenture Technology Vision 2013that feel valuable to people, it will they grasp the notion that they respect, thinking of trust as anmake that transaction make sense.” need to go beyond just collecting iii economic asset is not different from information about consumers. how a bank views and manages itsAccenture’s recommendations for The company that can build a customers’ accounts.businesses are even more relevant reputation for providing valuabletoday, and the stakes have gotten services while using consumers’ Of course, a critical aspect of trusthigher—with consumers’ greater personal data in trustworthy building is the assurance that allsensitivity being just one of the ways will have a big advantage of the business partners in anfactors in play. Accenture believes over competitors. Its brand will be organization’s value chain abide bythat a vital component is still more valuable, it will have more the same high principles. If a personmissing from the privacy debate: opportunities to attract and retain using a supposedly trust-baseda proactive business perspective lifetime customers, and it can solution is suddenly deluged withfocused not just on compliance become a preferred partner in a unwanted phone calls and e-mailwith laws that protect privacy but larger value chain of goods from related companies, you canalso on the notion that companies and services. bet that’s a customer lost forever.can generate business value byearning consumer trust. Implicit in this idea is the belief that trust has an economic valueTo date, few businesses and, as such, can be used to winconvincingly demonstrate that competitive advantage. In that 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 lay the 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 increasinglybut why. And, when did it happen? processes that make an enterprise creating APIs to allow data to22
  23. 23. Trend 2. Design for Analytics Accenture Technology Vision 2013 and their ultimate score but also The companies that have already“ Whenthey need todon’t have access to the right their keystrokes, how long it took defined their top-level strategic enterprises them to answer individual questions, questions are striking first. and if they stopped in the middle of Many companies in logistics, data, start looking differently at 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 be more easily extracted from help improve its recommendations to fill data gaps as they arise. This computers to track information not 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 such as when customers pause the that today represent blind spots in a making left turns slowed deliveries data they should be gathering movie and what scenes they watch company’s data portfolio. Research and increased fuel costs as a result from 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 2013 and unload them. Knowing where the wireless information network the quantification of the consumer. and transmit information, primarily shipments are in transit (and sharing enhances well efficiency and reduces Facebook has ingrained a propensity in the personal-fitness space. The that information on a website) aids operating costs because workers no for people to share their likes and Nike+ FuelBand collects data about customer 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 fitness venture Petroleum Development contributes to personnel safety. sources. The ability to cultivate and and social media also overlap on Oman (PDO) has deployed a wireless harvest customer information for websites where people track their system in its oil field. It is currentlyQuantifying the sales, marketing, and advertising diets. A lot of consumer data exists wiring 5,000 wells, which technicians consumer represents a rich opportunity to grab today, but companies need to remotely monitor and manage, to some of the data that they need in determine the right data for them provide real-time communication To date, of course, the ripest area order to resolve questions about and then start processes to acquire vi and control. According to PDO, for the collection of data has been their consumers that have long been that data. left unanswered.“ The ability tofor sales, marketing, and Websites already have multiple cultivate and harvest customer The aggregation of social and mobile capabilities for tracking activity, but capabilities through applications sometimes what is needed can be information such as Waze (a crowd-sourced gleaned by simply asking customers advertising represents a rich opportunity to navigation app) and Yelp (online and prospects for input. However, grab some of the data that they [businesses] consumer reviews) has heightened it’s important to note that often it’s the ability for consumers to quantify better to track actual activity than need in order to resolve questions about 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, and what people actually want. beyond smartphones, that collect 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, “ What softwarefeedback loopfor analytics?were close to home or frequently because IT may need to tweak data will the look like viivisited locations close to home. collection mechanisms, includingKnowing that the vehicles were user interfaces, on mobile apps andmore likely to be within the range enterprise applications in order to when is designedof a battery charge, the engineers acquire additional data points. It starts with setting goals and creating ”were able to adjust the powertrain questions that need to be answered.controls 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 CareAbout 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 using your APIs and which APIs are growing global workforce, it would is based on the same core “buildinga common platform of functionality. most valuable, as well as traceability be increasingly critical for business block” concepts as SOA, but it hasThey minimize rework. And they of IT capability against business use, users to have access to enterprise and evolved to take advantage of theaccelerate development, which is a ensuring business process alignment application data in real time in order agility and simplicity of cloud andkey first step when embarking on and verification against to scale up those applications. Web-based, mobile, or social roadmaps. 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 it time entry, hotel reservations, and and IT staff. Does the buck stop onpossible to measure the value of business travel, Accenture’s internal If API management sounds a lot like the CIO’s desk? Or is this part of theAPIs. Imagine a scenario that involves IT team realized that integration service-oriented architecture (SOA)— purview of a newly minted chiefexplicit governance of APIs; you have with disparate systems was going an influential technology concept a data officer? In either case, the APIvisibility and control into who is 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. Just by itself is not new; together with ask Walmart, which deployed a “variety” and “volume,” it has been new search engine last fall on part of the “three Vs” construct for that relies on talking about data—a construct 33
  34. 34. Trend 3. Data Velocity Accenture Technology Vision 2013developed in 2001, long before “big after it has been collected. Passerinidata” became such an overused term.iiAnd at the most fundamental level,there is nothing novel about the “ Today, it’s of the organization’s actions to the speed increasingly important to match explained that he’s not seeking new types of data; what he wants is to get everything from point-of-sale ”idea of faster flows of data helping the speed of its opportunities. data to statistics on inventories andorganizations get more done in shipments more frequently and farless time. faster, in more granular form than ever.ivBut the notion of velocity has been to generate actionable insights, thelargely eclipsed by the many recent organization will start losing out to decision makers do business.iii The In all of these discussions aboutadvances in technologies that have more responsive competitors. More old model, he said, would mean data velocity, note that we’re notunlocked significant increases both worrisome, if the business hasn’t that analysts would get back with talking about striving for somein available volume (zettabyte upon begun using data-driven insight to answers in two weeks. “You need real-time nirvana. What’s crucialpetabyte) and in variety (spanning detect and evaluate opportunities to be able to answer that question is an improving rate of response,unstructured data such as pins in the first place, it runs even immediately,” he told the magazine. regardless of the rising volumes ofon Pinterest as well as structured greater risks of falling behind. data to be accessed and analyzedrecords of supply logistics and Consumer-goods giant Procter & P&G is investing in virtual, “instant and irrespective of their proliferatingcustomers’ purchase histories). Gamble is acutely aware of what’s on” war rooms where professionals sources. Going forward, it will no at stake: CIO Filippo Passerini told meet in person or over video around longer be about the size of yourToday, it’s increasingly important InformationWeek that if P&G can continuous streams of fresh and data—it will be about matching theto match the speed of the eliminate the “what” discussions and relevant data, inviting the right velocity of your data to how fastorganization’s actions to the speed some of the “why”, and decision- experts as soon as a problem your business processes need toof its opportunities. If too much makers can jump right to how surfaces. P&G’s objective is to give act on it.time elapses between acquisition of to solve a problem, that radically these decision-making forumsdata and the ability to use the data increases the pace at which the access to data as soon as possible34