Tech Trends 2015: The fusion of business and IT

www.deloitte.com/us/techtrends2015

Bridging business and technology,
new CxO roles, and the
possibilities of tomorrow with
the realities of today.

3 Copyright © 2015 Deloitte Development LLC. All rights reserved.Deloitte University Press | Tech Trends 2015 | @DeloitteOnTech @DU_Press #techtrends
LESSONS FROM
THE FRONT LINES
Intel
• The role of the CIO is evolving as
technology transforms existing business
models and gives rise to new ones
• Who better than the CIO to take
advantage of shifting technologies
and harness them for the business?
• New CxO roles—Chief Digital Officer,
Chief Innovation Officer, Chief Data
Officer—are cropping up with technology
at their core
• CIOs acting as chief integration officers
can serve as the glue linking various
initiatives together
AIG
Brown-
Forman

 Evaluate current positioning:
understanding the balance sheet of IT
is a requirement
 Mind the store: invest in underlying
capabilities to improve departmental
efficacy
 Engage leadership: Solicit feedback
and understand priorities
 Knock down walls: tap into
ideas through new employee and
partnership channels
 Show, don’t tell: prototype and
demo to make art of the possible
become feasible
 Industrialize innovation:
standardize approach for new
technology
As security breaches become more frequent, senior stakeholders
expect that their organizations will be kept safe and secure. CIOs can
create strong linkages between IT and other functions by emphasizing
cyber risk and privacy, embedding cyber defense as a discipline. IT
departments are in a position to orchestrate awareness of and
responses to cyber threats.
WHERE DO YOU START?
CYBER IMPLICATIONS

Integration as a discipline, exposing
core assets for reuse, growth, and
innovation.

LESSONS FROM
THE FRONT LINES
Web 2.0
• Application programming interfaces (APIs)
are evolving from a development
technique to a business model driver and
boardroom consideration
• The API revolution is upon us, more than
10,000 have been published to-date1
• Core assets can be reused, shared, and
monetized through APIs—creating a
growing need for management platforms
and experts
• The opportunity exists to provoke and
harvest how business services and
underlying APIs can reshape how
organizations compete
Netflix
Federal Data
Services Hub
1ProgrammableWeb, http://www. programmableweb.com/category/ all/apis?order=field_popularity

 Clarify strategy: clearly define the
intention, value, and audience of the
API
 Establish ownership: placing effort
under an IT executive can simplify the
path forward
 Embrace the necessities: evaluate
the available tools, platforms, and
integration possibilities
WHERE DO YOU START?
 Plan big, start small:
businesses should balance payoff
with added complexity
 See it through: drive a sustained
campaign for awareness and
support, while keeping ongoing
documentation and maintenance
needs in mind
Cyber risk considerations should be at the heart of API strategies. An
API built with security in mind can be a more solid cornerstone of every
application it enables; done poorly, it can multiply application risks. New
controls and tools are likely necessary to protect unbounded potential
use cases while providing end-to-end effectiveness.
CYBER IMPLICATIONS

Harnessing the real potential of the
Internet of Things.

LESSONS FROM
THE FRONT LINES
ComEd
• IoT is becoming a reality with
connectivity and intelligence increasingly
embedded in assets across the value
chain
• But putting the estimated 11 billion
sensors1 to work is the challenge, along
with deciding which of the 1.5 trillion
objects in the world2 should be
connected and for what purpose
• The goal should not be the Internet of
Everything; it should be the network of
some things, deliberately chosen and
purposely deployed
Nest Labs
Streetline
Bosch SI
1 Karen A. Frenkel, “12 obstacles to the Internet of Things,” CIO Insight, July 30, 2014,
http:// www.cioinsight.com/it-strategy/infrastructure/ slideshows/12-obstacles-to- the-internet-of-things.html, accessed November 12, 2014.
2 Cisco Systems, Inc., Embracing the Internet of Everything to capture your share of $14.4 trillion, February 12, 2013, http://www.cisco.com/
web/about/ac79/docs/innov/IoE_Economy. pdf, accessed November 12, 2014.

 Beware fragmentation: compelling
use cases will require cross-
organizational collaboration
 Stay on target: avoid distractions from
exciting new technologies by starting
with concrete business outcome
 User first: usability should guide
implementation, even if the solution is
automated
WHERE DO YOU START?
 Network: don’t lose sight of the
importance of connectivity,
especially for items outside of
established facilities
 Stand by for standards: IoT
standards will continue to evolve,
but don’t wait to invest until
standards are finalized, help
shape them
New security risks are embedded in each layer of IoT: sensors,
networks, integrations, rules engines, people, and processes. IT
leaders should be extra cautious when scenarios move from signal
detection to actuation. Consider cyber logistics before placing new
objects into the IT environment and take a broad approach to proactive
risk management.
CYBER IMPLICATIONS

Modern marketing brings new
challenges in customer engagement,
connectivity, data, and insight.

LESSONS FROM
THE FRONT LINES
Insurance
Industry
• A new vision for marketing is being
formed as CMOs and CIOs invest in
technology to reach digitally connected
customers
• Four new dimensions are being added
to original marketing mix: engagement,
connectivity, data, and technology
• Technology and analytics can deliver
convenient, contextual, and hyper-
targeted customer experiences
• CIOs can help deliver analytics, mobile,
social, and web while maintaining
security, reliability, and interoperability
Rocket Fuel
Telstra

 Customer-led: understand the
customer journey and focus on
authentic engagement
 Focus on data: big data and predictive
analytics should play a role in how you
invest in targets and priorities
 Holistic approach: explore new
channels and tools to complement
existing ones
WHERE DO YOU START?
 Content management: authoring,
provisioning, and measuring usage
and effectiveness should be
seamless processes that provide
users with contextual content
across channels
 Social activation: move beyond
passive listening to inspiring brand
ambassadors
There are privacy concerns, laws, policies, and standards for using
personal data for marketing which may limit the degree to which
marketers can use data for personalization and outreach. Establishing
and maintaining trust is key. Organizations should consider public
policies, privacy awareness programs, and end-user license
agreements joined with explicit security and privacy controls.
CYBER IMPLICATIONS

The entire operating environment
—server, storage, and network—
can now be virtualized and
automated.

LESSONS FROM
THE FRONT LINES
Cisco
• The entire operating environment can
now be virtualized and automated,
elevating infrastructure investments from
costs to competitive differentiators
• Savings come from retirement of gear,
shrinking of data center footprints, and
lowering of recurring maintenance costs
• And it’s not just about the cloud; it’s
about removing constraints and being a
platform for growth
• First movers will likely benefit from
greater efficiencies and eventually
reshape how their companies work
Amerisource
Bergen
eBay
Acxiom

WHERE DO YOU START?
CYBER IMPLICATIONS
The software-defined stack will require new tools, but it can also help
produce more streamlined, responsive IT capabilities where risk
management becomes muscle memory. Standardization can minimize
vulnerabilities and variances, and produce an accurate assessment of
your risk profile.
 Consider financing: some vendors
may accommodate creative financing
arrangements
 Standardize design: emphasize
templates and commonality to
manage complexity
 Facilitate teamwork: infrastructure
and application teams should work in
tandem for rapid deployment
 Support migration: existing assets
should be analyzed application by
application to determine the technical
considerations needed to support
migration. The business needs
should then be layered on.
 Beyond the data center: companies
may realize benefits by coupling
SDDC initiatives with a broader IT
transformation effort

Replatforming, architecting, and
revitalizing IT at the heart
of the business.

LESSONS FROM
THE FRONT LINES
Sysco
• Core system investment can be the
foundation for growth and new service
development
• 80% of time, energy and budgets are
consumed by the care of existing IT
capabilities1
• Many organizations are modernizing to
pay down technical debt and remove
barriers to performance
• One size does not fit all: replatform,
remediate, revitalize, replace, or
retrench
Electronics
Industry
The Bureau of
Engraving and
Printings
1Bob Evans, “Dear CIO: Is the time bomb in your IT budget about to explode?,” Forbes, January 22, 2013, http://www.forbes.com/ sites/oracle/2013/01/22/dear-cio-is-
the-time-bomb-in-your-it-budget-about-to-explode/, accessed January 14, 2015.

 Have a plan: balance business needs
with limitations of existing systems
and potential of emerging technology
 Spark a light: find a burning platform
to move the conversation about the
core to the center stage
 Plant the seed: invest deliberately in
the core to eventually become a
catalyst for growth
WHERE DO YOU START?
CYBER IMPLICATIONS
 Partner up: strategic vendors
can be allies in exploring new
solutions for existing issues
 Design as a discipline:
embrace a living approach to
architecture with usability,
integration, data, and security
in mind
Identify what attracts cyber threat and be vigilant in protecting your
assets. Scratch the assumption that the emerging technologies are
inherently riskier than the legacy systems and, regardless of the
platform, define probable and acceptable risks. Leverage vendors to
outsource risk, but recognize that your organization still retains
responsibility for its security.

Augmenting and enhancing
the individual with emerging
technologies—
cognitive analytics,
visualizations, wearables,
and beyond.

LESSONS FROM
THE FRONT LINES
• Artificial intelligence is now a reality, but
the more promising application is not in
replacing workers, but augmenting their
capabilities
• True impact comes from putting insights
to work and changing behavior at the
point where decisions are made
• The human element remains critical to
discovering new patterns and identifying
the questions that should be asked
• Solutions should start from the user
down, not from the data model and
analytics up
University of
Minnesota
Los Angeles
Police
Department
Oil & Gas
Industry

 Ask questions: develop wish list to
guide priorities and reveal what data is
needed
 Be honest: balance opportunity against
expected organizational resistance; it
may take time to become a data-driven
culture
WHERE DO YOU START?
 Design from the user down: let
user experience dictate the format,
granularity and decisiveness of
insights
 Enhance the worker: be
transparent in intent and consider
programs to retool and redeploy
workers
CYBER IMPLICATIONS
Traditional techniques to protect your data when it is at rest, in flight,
and in use become less effective as the development of criminal
products, services, and markets advances. Machine learning and
predictive analytics can take cyber security a step further. Leading
cyber initiatives balance reactionary methods with advanced
techniques to identify the coming threat and proactively respond.

STEAM, not just STEM—fine arts
alongside deep technical talent.

LESSONS FROM
THE FRONT LINES
AIG
• Scarcity of technical talent is a concern
across many industries as the legacy-
skilled workforce retires and new
technologies emerge
• Companies likely need to cultivate workers
with new habits, incentives, and skills;
hands-on capabilities may trump
credentials
• Nature of employment changing: alternative
models include virtual work arrangements,
crowdsourcing, contract work
• Support knowledge sharing by cross-
pollinating teams with a mix of new and
experienced, cross-functional, diverse
workers
GSA
Deloitte

WHERE DO YOU START?
Balance the need for security with a focus on user experience by
creating a well-integrated risk framework that is anchored around the
end user’s journey. Teach your workers how to manage risk, and embed
cyber security into all aspects of your organization—software delivery,
system maintenance and business process execution.
CYBER IMPLICATIONS
 Incentivize IT leaders: activate
communities around them
 Rethink hiring: include externships,
hackathons, and recruit those with
design aptitude
 Industrialize innovation: introduce
mechanisms to submit, explore, and
potentially develop new ideas
 Create a virtual culture: provide
tools that support remote workers
 Venture out: leverage
crowdsourcing, incubators and
start-up spaces
 Invest in your own IT workforce:
drive retention and encourage
referrals
 Transform HR: shift the focus to
talent attraction and development

Science and technology breakthroughs
advancing faster than Moore’s law,
potentially impacting 230 lives.

FOUR DIMENSIONS FOR EFFECTIVE INNOVATION STRATEGY
• Trend sensing: stay on top of new developments—use “show” vs “tell” in
demos and prototypes
• Ecosystems: combine the traditional allies with players from relevant
adjacencies such as entrepreneurs, start-ups, venture capitalists and
engineers
• Experimentation: fail fast and cheap, move forward, and think about the
impact, feasibility and risk
• Scaling edges: achieve innovation at an institutional level by establishing
new teams on the fringes of the organization

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