The Disruptive Impact Of The Nexus of Forces

1. The Disruptive ImpactOf The Nexus of Forces Chris Howard VP, Distinguished Analyst Chief of Research @chrishoward88

2. ‘It’s the first time that a company [Burberry] is blurring the lines between physical and digital.’ Angela Ahrendts, former CEO of Burberry, now heading Apple’s retail operations

3. Jeffrey ImmeltCEO, GE Talking about his company's“Industrial Internet" initiative in 2012 ‘The ability to marry real-time customer data with real-time performance data of our products — to me that's the holy grail in our business.’

4. Overview • The Nexus forces (Information, Mobile, Cloud, Social) remain top priorities for CIOs • The Nexus of Forces applies to people inside and outside the organization, in multiple roles • Many emergent Nexus of Forces scenarios involve the Internet of Things • The Nexus of Forces is the platform for the Digital Business

5. Nexus of Forces 2014 Where are we now?

6. Nexus of Forces Convergence and mutual reinforcement Driven by human behavior Amplifies human behavior Creates new opportunities for engagement Engagement creates new business opportunities

7. Gartner introduces "Nexus of Forces" at Symposium 2011 recession

8. 2014: CIO Technology Priorities Exploitthe New Ranking Based on How Many CIOs Cited Each as a Top-Three New Spending Priority for 2014 Renovate the Core 15

9. The Journey to Digital Business Pre Web Pre Nexus Post Nexus People People People People People People Business Business Business Business Business Things Things Change of Kind Change of Degree

10. Disruption 9

12. Disrupts • Networks, transactions • Our relationship with “things” • Among Individuals, organizations • The distinction between physical and virtual • Privacy and security • Traditional IT-controlled solution delivery

13. Disruption: Networks and Transactions

14. Human Behavior • They participate in value relationships • They expect those relationships to be based on "knowing" • One person's "OK" is another person's "Creepy" • They are mostly irrational

15. Text Mining Financial Habits Psychographics Health Data Location Text Mining Preferences Clickstreams Aversions Proximity to Friends Sentiment Analysis Search Habits Buying Patterns Life Events

16. Person Business Things

17. Digital Value Network Customer Business Things Observation + Mediation = Value

21. Powering the Walmart.com Search

22. 10% to 15% increase in online shoppers completing a purchase

23. Information: From Descriptive to Prescriptive Human Input Analytics Descriptive What happened? • Diagnostic • Why did it happen? Action Data Decision • Predictive • What will happen? Decision Support Decision Automation • Prescriptive • What should I do?

24. Sourcing Information Broadly Transactions Email Operational Enterprise "Dark Data" Reports Monitoring Contracts Sensor Credit Public Commercial Weather Industry Population Sentiment Social Media Network Economic Correlations and patterns from disparate, linked data sources yield the greatest insights and transformative opportunities

25. Community News Tax Info. SchoolSchedule SportsStandings E-gov. Shopping School Memories Corp.Archives RSS Email FinancialInfo. Work at Home Training Wi-Fi Banking VoIP CorpApps Broad-band Personal Production Data LAN Professional Benefits Wi-Fi Banking Cell Cell Conferencing PersonalRecords Hobbies IM Email MeetingRecords Music Financial Medical HomeSecurity Calendar TV Memories Family Personal Cloud:Moving Beyond Personal Computing Your Digital Life Twitter Content Facebook Services SMS Comms. Devices

28. Doctor? Insurance Company? Quantified Self Trainer?

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31. Disruption: Security and Risk Management

32. What the IoT Means for Security – Dispersion of Infrastructure Building Blocks Dispersion 31

33. What the IoT Means for Security – Cloud and Mobile Inevitability Accelerated Adoption 32

34. When fridges attack… Proofpoint Uncovers Internet of Things (IoT) Cyberattack http://www.proofpoint.com/about-us/press-releases/01162014.php 33

35. Disruption: Physical and Virtual 34

36. Human Behavior • People are mobile • They spread their experience over a constantly shifting array of devices • They expect context-aware delivery of "experiences"

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39. Insert Yelp Monocle slide 38

40. Smart Components Hey!

41. Hey! OEM Collaborative Asset Management Engineering

42. $500,000

43. Collaborative Asset Management

45. Disruption: Traditional IT 44

47. No way! Too risky! Let's do this Nexus thing!

48. The benefitoutweighs the risk! Just do it. Go around IT if necessary! Let's do this Nexus thing!

49. New Sources of Value Related to IT • Digital Business • Remote work and mobile drives technology needs • Demand for great customer experience • Ecosystem of players • Business directed choice driving innovation Technology understanding is becoming a business skill Invent new work practices Focus on individual and personalization Thinking like a broker Dynamic collaboration and participation are essential 48 *Source: Gartner March 2013 “Field Research Summary: The Changing IT Career”

50. Seven Essential Qualities • Be outcome oriented — outcome must become more important • Participate and have a participative culture • Be advisors and influencers • Be openly experimental and enable innovation • Be knowledgeable, yet remain open to many perspectives • Encourage autonomy within a known context • Be adaptable and always learning Source: Gartner March 2013 "Field Research Summary: The Changing IT Career"