Tech Trends 2015: The fusion of business and IT | Deloitte Australia | Technology trends report

www.deloitte.com/au/techtrends

Bridging business and technology,

new CxO roles, and the

possibilities of tomorrow with

the realities of today.

3 Deloitte Touche Tohmatsu © 2015 – Tech Trends 2015.

LESSONS FROM

THE FRONT LINES• 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

Intel

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

Industrialise innovation:

standardise approach for new

technology

As security breaches become more frequent, senior stakeholders

expect that their organisations will be kept safe and secure. CIOs can

create strong linkages between IT and other functions by emphasising

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

monetised 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

organisations 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.

City of

Melbourne


Beware fragmentation: compelling

use cases will require cross-

organisational 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 finalised, 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 personalisation and outreach. Establishing

and maintaining trust is key. Organisations 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 virtualised and

automated.


LESSONS FROM

THE FRONT LINES

Cisco

• The entire operating environment can

now be virtualised 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. Standardisation can minimise

vulnerabilities and variances, and produce an accurate assessment of

your risk profile.

Consider financing: some vendors

may accommodate creative financing

arrangements

Standardise design: emphasise

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 analysed 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 realise benefits by coupling

SDDC initiatives with a broader IT

transformation effort

Replatforming, architecting, and

revitalising 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 organisations are modernising to

pay down technical debt and remove

barriers to performance

• One size does not fit all: replatform,

remediate, revitalise, replace, or

retrenchElectronics

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.

Geelong

Football Club


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 recognise that your organisation still retains

responsibility for its security.

Augmenting and enhancing

the individual with emerging

technologies—

cognitive analytics,

visualisations, 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

VCCC


Ask questions: develop wish list to

guide priorities and reveal what data is

needed

Be honest: balance opportunity against

expected organisational 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

NSW Police


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 organisation—software delivery,

system maintenance and business process execution.

CYBER IMPLICATIONS

Incentivise IT leaders: activate

communities around them

Rethink hiring: include externships,

hackathons, and recruit those with

design aptitude

Industrialise 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 organisation


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Tech Trends 2015: The fusion of business and IT | Deloitte Australia | Technology trends report

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