Tech Trends 2012: Elevate IT for digital business

7/31/2019 Tech Trends 2012: Elevate IT for digital business

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Preace

Welcome to Deloittes annual report examining trends in technology put to practical business use. Each year we begin

with a wide range o potential topics, and then work with clients, vendors, academics, analysts and Deloitte practitioners

to rene the list. We select as trends those topics that have the most potential to impact businesses over the next 18 to 24

months. This years theme, Elevate IT or Digital Business, examines the broad impacts o ve technology orces that have

infuenced our reports over the past several years analytics, mobility, social, cloud and cyber security.

Its an uncommon, and perhaps even unique, time to have so many emerging orces all rapidly evolving, technology-

centric and each already impacting business so strongly. Whether or not you have previously thought o your business as

inherently digital, the convergence o these orces oers a new set o tools, opening the door to a new set o rules or

operations, perormance and competition. This is an opportunity or IT to truly help elevate business perormance.

Our 2012 report shares ten trends grouped into two categories. Disruptors are technologies that can create sustainable

positive disruption in IT capabilities, business operations and sometimes even business models. Enablers are technolo-

gies in which many CIOs have already invested time and eort, but which warrant another look this year because o new

developments. Enablers may be more evolutionary than revolutionary, but the potential is there to elevate the business

game with technology.

Each trend is presented with at least two examples o adoption to help show the trend at work. This year, youll also nd

a new section called My Takes, which provide commentary and examples rom CIOs, academics and other luminaries

about the utility o the trend in business.

Each o these 2012 trends is relevant today. Each has signicant momentum and potential to make an impact. Each war-

rants timely consideration. Forward-thinking organizations should consider developing an explicit strategy in each area

even i that strategy is to wait and see. But whatever you do, step up. Use the digital orces to your advantage. Dont get

caught unaware or unprepared.

Thank you or reading this years report. We welcome your eedback and questions. To the many executives who have

provided input into Tech Trends 2012, thank you or your time and insight. We look orward to having more o the es-

sential dialog between business and IT.

Mark E. White

Principal and CTO

Deloitte Consulting LLP

Bill Briggs

Director, Deputy CTO

Deloitte Consulting LLP


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Contents

Disruptors

Social Business .............................................................. 1

Gamifcation ................................................................. 8

Enterprise Mobility Unleashed .....................................15

User Empowerment .................................................... 22

Hyper-hybrid Cloud .................................................... 29

Enablers

Big Data Goes to Work ............................................... 36

Geospatial Visualization .............................................. 43

Digital Identities ......................................................... 50

Measured Innovation .................................................. 57

Outside-in Architecture .............................................. 64

Conclusion ..................................................................71

Authors ...................................................................... 72

Contributors ............................................................... 73


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Social Business1

Reimagining business with a social mindsetEven today, business leaders may dismiss the potential o

social business, either relegating it to the realm o Internet

marketing or ignoring the buzz as a passing ad. But thats

changing as boomers evolve into digital natives, millennials

permeate the workorce and social media becomes a part

o daily lie. The doors are now open or social business.

Leading enterprises today are applying social technologies

like collaboration, communication and content

management to social networks the connected web o

people and assets that impact on a given business goal or

outcome amplied by social media rom blogs to social

networking sites to content communities. Yet its more than

tools and technology. Businesses are being undamentally

changed as leaders rethink their core processes and

capabilities with a social mindset to nd new ways to create

more value, aster.

Forays into social business typically start with an

organizations external-acing concerns. Sales and

marketing organizations, looking to understand customer

sentiment and product positioning, listen careully to

opinions expressed in the social sphere. Similarly,

organizations roll out internal micro-blogs that allow

employees to broadcast and push interests, ideas andexpertise to the enterprise. These types o eorts are

excellent entry points, but not the only points o impact in

the enterprise. Think across the ull value chain. Compose

social with a key business unction such as Social CRM,

Social PLM or Social Supply Chain.

Social business can shit an organizations dynamic rom

isolation to engagement by providing vehicles or

discovering, growing and propagating ideas and expertise.

This shit requires organizations to take a more active

approach to social. Beyond social monitoring and listeningposts, leading organizations are establishing command

centers to interact with consumers and the marketplace via

the social sphere. Some interactions are transactional, such

as customer relationship management, servicing or order

management, while others seek to drive loyalty and brand

activation. Functional areas such as Human Resources and

recruiting are ollowing sales and marketings lead, with

customer service, product development and operations

close behind.

Enterprise solutions are moving rom communication tools

to collaboration suites, white pages, yellow pages and

expertise nders, where specialized knowledge can be

ound regardless o individual connections. Distributed

teams can work together on deliverables without worrying

about versioning or over-the-wall engineering.

Communities can orm and engage around topics based on

individuals common interests personal or proessional,

long-running or perishable.

Behind it is a simple truth:people are the core o business.

The balance o power has shited rom the corporation to

the individual. Technology has made it easier to d iscover

and participate in social networks, but it has not changed

their currency: content, authenticity, integrity, reputation,commitment and ollow-through. Social business allows

organizations that share these values to undamentally

reshape how their companies run and serve their markets.

A fattened world allowing direct contact between

customers and product developers, between divisional VPs

and ront-line workers, between salespeople and suppliers

could be inherently more eective and ecient.

Companies that align the passions o their people with the

interests o their customers hold the potential to capture

the marketplace.

2012 Technology Trends Disruptors


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2

History repeating itsel?Social business inherits its associations and perhaps misconceptions rom previous eorts in collaboration, knowledge

management and content management. Similar-sounding terminology social networking, social media, social

computing and social business only adds to the conusion.

Social Business

What were the challenges? Whats dierent in 2012?

Social media (e.g. LinkedIn,

Twitter, Facebook)

Non-digitalnativeswereslowtoadoptpublic

social media services, which made businessleaders skeptical about their useulness in abusiness setting.

Security, privacy and compliance risks were real.Intellectual property could be compromised,competitive plans could be shared, and brandscould be harmed by individuals behaviors.

Companies have invested in technology-centricpilots and systems that mimic the successul usecases o the consumer social sphere. Sometimesa build it and they will come approach, theydidnt ollow the successul pattern: articulatea business objective; map the related socialnetwork or graph; implement targeted socialtechnology and media; evaluate results, tuneand rene the ocus. The most requently missedstep being mapping the right social network inwhich to act.

Theenterprisemarketforsocialcollaboration,

content and communication tools has explodedover the past 12 months; on-premise or cloudversions o social media tools can help balance

openness with acceptable risk. Public social media sites are viewed as only onepart o an overall social business strategy, usedprimarily as sources or social sentiment signals,vehicles or brand management and externalcommunication, and channels or customermanagement and sales.

Millennials joining the workorce are wired to usesocial and mobile channels to bond, socialize andsolve problems1. Organizations that lack internal,governed social media and computing channelsmay nd their younger employees using publictools as a well-intentioned, but risky, alternative.

Businesses large and small are now makingocused investments in deploying social tech-nology and media into well-mapped socialnetworks or specic business objectives across

the enterprise value chain.

Collaboration and knowledge

management (KM) tools

Many organizations conronted the ineciencieso how work gets done and shared in their shopsby implementing collaboration solutions or staticor ill-dened groups. These solutions were mainlyERP workfow, or limited to content sharing ormessaging. They dont embrace the necessityo allowing communication to evolve intocommunity. They may be limited to one unction,geography or job role and unable to tap thebreadth and depth o the enterprise.

Previous versions o content and knowledgemanagement tools majored on collecting andmanaging the content without successullycapturing the context and workfows that

transorm that intellectual property into businessvalue. KM systems became static repositories orlibraries without curation or circulation.

Social business inside the enterprise can acilitatediscovery and connections among employees,real-time collaboration on tasks and documents,and a systematic view o who knows who, whoknows what, and how work actually gets done.

Newsocialcomputingtoolscansupportboth

collaboration and task execution, so contributorsare motivated to use them in executing dailytasks. Context is preserved alongside the contentto aid in both discovery and use.

The categorization o knowledge, work steps andrelationships can be used to document, mine andnd inormation. Taxonomy discovery can bridgeacross structured, unstructured and semi-struc-

tured sources, nding new relationships betweencontent and oering a way to both discover andcreate business intelligence. This can be especiallyimportant or organizations with aging work-orces, where leaders are looking to ease the paino large-scale knowledge transer.

The Curator and Moderator join the Librarian inharnessing content, communication and conver-sation into both long-and short-lived communi-ties around key business issues and opportunities.


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Social Business

Technology implicationsSocial business taps into the shared interests o individuals to guide communal value. Technology can help make these

interactions eective aiding in discovering new inormation, sharing content, collaborating on ideas and work products,

and potentially allowing parts o transactional systems and data to be used through social channels.

Topic Description

Social computing tools Implementation o internal collaboration suites, wikis, ideagoras, expertise nders, enterprise searchandpredictionmarketsarenottrivialundertakings.Namingconventions,hierarchies,entitlement

and privacy rights and archiving can inorm the scope and useulness o each solution. The value osocial computing investments can be enhanced by integrating email or traditional correspondence,

instant messaging and other converged communication tools, and content repositories or easyaccess to inormation that transcends geographies.

Sentiment analysis tools Social media monitoring tools such as Radian 6, Mantis or Lithium refect the broader shit inanalytics where the mechanics o sotware conguration are not complex, but still require in-depthindustry and modeling experience to help dene and ne-tune models to obtain reliable, insightulresults. Also, intelligent oversight is needed, because automated systems have trouble interpretingnuance, subtlety or sarcasm. Advances in contextual mining and articial intelligence sense-makingwill likely lead to continuous product improvements, but todays oerings require specializedknowledge to set-up, monitor and maintain.

Digital content

management

Product inormation, brand collateral, store/employee data and other content should be consistentacross channels: brick-and-mortar locations, web, call centers, mobile, social, kiosks and tomorrowsinnovation. This omni-channel world increases the importance o traditional digital assetmanagement (DAM), content governance and stewardship, as well as the need to manage content

and communities simultaneously across channels.

Digital identities2 Social business amplies the potential value o individual personas and relationships, whether theyare employee, customer, prospect or partner. Correlation o discrete identities across enterprises(both private and public) requires a ederated or brokered digital identity service that should alsohave the ability to render individual, authenticated, non-repudiated assertions on who an individualis and what they have access to. Within the enterprise, a uniorm approach to identity, access andcredential management should be a must.



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4

Social Business

Lessons rom the rontlinesQuenching customer insight

Gatorades mission-control center or social media can

demonstrate the potential o social business3. A hub in the

companys marketing department tracks tweets, Facebook

activity and blog postings that mention the brand, its

endorsers, competitors and broader sports-nutrition topics.

Detailed sentiment analysis tracks products, campaigns and

customers across their liecycles. Brand attributes are

watched, correlated with media perormance, and used to

reach out proactively to infuencers and customers. The

results drive strategic marketing plans and productdevelopment, as well as tactical activities, such as

improving landing pages and content delivery4. Initial

results are impressive, with claims o a 250% increase in

engagement and 65% reduction in early page exits. Social

activities likely contributed to Gatorades U.S. volume sales

growth o 10% in the second quarter o 2010, ater three

consecutive years o slumped sales5.

Forging the uture o social commerce

Tesco, the United Kingdoms largest retailer, has been a

leading proponent o social business. From early entries

into social monitoring and command centers, to ambitious

social commerce campaigns, to the acquisition o socialmarketing rm BzzAgent6, Tesco is embedding social

sensibilities into virtually all aspects o its business, rom

loyalty programs to stocking and procurement decisions7.

Another large retailer also has ambitious plans or social

business. In 2011, it acquired an organization that uses

social-sphere signals to deliver relevant ads based on an

individuals interests; and acquired a platorm or real-time

sentiment and social stream analysis. Beyond brand

awareness, engagement and loyalty, its goal is to develop

intent-based inventory and logistics driven by the buying

patterns and signals o local residents.

Breaking down the research and development silos

A leading high-tech rm took a hard look at its sotware

development process. Like many other companies in the

industry, departmental stove-pipes and over-the-wall

engineering approaches were the rule. The design and

engineering teams worked on separate paths, even though

their eorts were highly dependent on one another. In a

typical scenario, engineering would create technical

specications or weeks and hand it o to design, who

would go away and work on treatments and design

concepts. They would then come together or two weeks

o joint sessions, poking holes in each others thinkingwhile moving slowly toward consensus. This process would

repeat, with the hope that next time would bring shorter

cycles and ewer gaps at the end o each round. It was the

epitome o sequential collaboration driven by a

manuacturing mentality.

To break through business as usual, the rm shited to an

open collaboration platorm across project teams, with

progress documents openly shared using discussion boards

and micro-blogs instead o deliverable review templates

and email. Social business started to fourish. Cultural

resistance existed at rst, driven by ears that interim

deliverables would be reviewed using the same criteria as

nished products. But team members quickly came to

understand the value o the new process, and nished

products saw a quality boost and got to market aster. In

this competitive sector, shorter product development cycles

can have heart-o-the-business impact and, in this case, it

was driven by open, collaborative, social business.


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Social Business

For years Ive been working in the eld o connection

science studying how relationships and personal

interactions shape society and business. Social business is a

maniestation o that thinking, with companies

transorming how they organize and operate based on

individual roles, social networks and the power oconnections. Social business can have huge potential inside

and outside the enterprise, across employees, customers,

prospects and business partners.

Its exciting to see the convergence o new social channels

and traditional communication channels, where the whole

can be greater than the sum o the parts. When social

computing tools such as Yammer, Chatter or Jive are

combined with established communication channels such

as ace-to-ace interactions, email, phone calls, intranets

and even advertising media, were seeing rapid adoption

and elevated impact. Theres a halo eect when the

passions o stakeholders can be harnessed and aligned

with the goals o an organization. Social business amplies

this phenomenon, bypassing tactical constraints o

traditional communication: discoverability, scalability,

responsiveness and adoption.

Sandy Pentland

Director, Media Lab Entrepreneurship Program

MIT Media Labs

My take

Like any emerging technology trend, social business can

seem perpetually just out o reach. Lets wait a year, the

thinking goes. Its not quite real, not quite ready or prime

time. I thats your approach to social business, you may be

overestimating the amount o eort it takes to start putting

this trend to work or your organization today.

Heres what I mean: Social business is built on top o social

networks, which most organizations already have in place.

Im not talking about social networking technology. Im

talking about the social networks themselves the webs o

ormal and inormal groups reaching across and beyond

your organization every day. Thats a huge existing asset

but likely it is only inormally mined or the greater good.

You should explore explicitly connecting your people and

your customers in ways that could be driving perormance

improvements and growth.

Fortunately, moving ahead is pretty straightorward. Start

by nding out which channels are already most important

to, and most used by, the people in your organization.

From there, the path to rollout should become a lot clearer.

Once you begin, the value o social business can spread

like a wildre. The key is to simply get started.



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6

Social Business

Where do you start?Social business requires broader thinking than currently

ound in many organizations, and institutional biases can

prevent it rom receiving the priority status it deserves.

Fortunately, there are some simple ways to help break

through dated perceptions and cultural inertia and start the

social journey. Pursue an incremental path that builds on

experiments that may demonstrate potential.

Startatthebeginning.Social business is about

achieving specic business outcomes. Start with

reasonable scope in early eorts. Map the ind ividuals inyour potential social networks, and know what behaviors

you are trying to aect and how you might meaningully

engage these into persistent communities. Use this

inormation to guide the development o tools,

roadmaps and roll-out plans not the other way around.

Focus on results that can be measurable and attributable.

Deploythebasics.Certain aspects o social business are

nearly universally relevant, such as social monitoring and

listening posts or customer sentiment and brand

positioning, as well as corporate yellow pages and social

networking tools or experience-nding and leverage o

intellectual property. These should be on each business

radar and they can provide an excellent entre to social

business in R&D, PLM, HR, IT and even Finance. Ater all,

close the books is an inherently collaborative and

repeatable activity with clear business goals, a well-

understood network o players and both structured and

unstructured content use.

Movefromsensingtoactuating.With basic

monitoring tools in place, social business can move rom

passive to active. Instead o just listening, establish a

command center or social customer relationship

management (CRM), social sales and social productliecycle management (PLM). Move rom experience-

nding to insight management by using micro-blogging

and content management tools to promote sharing and

re-use o knowledge and assets.

Breakboundaries.The chie marketing ocer, chie

talent ocer and head o sales are typically early

adopters o social business. But it doesnt have to stop

there. What about a social chie nancial ocer? How

could reporting, classication and audit be transormed

by linking nance and control to knowledge streams and

trails o how, where and (heres the kicker) whywork

got done? How would a social plant manager run a

shop foor dierently? With social business, the

individual once again matters in perormance

improvement. At many levels, organizations that align

the passions o their people with the interests o theirmarkets can have a strong competitive advantage.

Authenticitymatters.Social business is about the

individual. An anonymous corporate presence using

social channels as a bully pulpit will not likely yield

results. In recent decades, marketing or HR has

sometimes evolved to mean what we do to people, a

ar cry rom the original intent. Social business can bring

us back ull circle, thriving on personal voice and

genuine interaction. Building those authentic

relationships requires time and investment.


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Social Business

Bottom lineSocialbusinessisstillinitsearlydays.Theseinitialwavesareaboutunlockinginsightsbasedonpeoples

behaviorandrelationships,andonsupplementingtheenterprisestraditionalviewofmarketsand

employees8.Evenmorevaluecanbegainedascompaniesrestructurehowworkgetsdonethroughsocial

engagementandbycustomizingmessaging,promotionsandevenproducts,basedonindividualand

communitydesires.Socialawarenesscangivewaytosocialempowermentonceagainplacingpeopleat

theheartofbusiness.

Endnotes1 Ramde, D. Beloit College Mindset List: The Internet Is Older Than Incoming College Freshmen. Retrieved January 15, 2012,rom http://www.

hufngtonpost.com/2011/08/23/beloit-mindset-list_n_933847.html

2

Additional inormation is available in Deloitte Consulting LLP (2012), Tech Trends 2012: Elevate IT or digital business, www.deloitte.com/us/techtrends2012, Chapter 8.

3 Ostrow, Adam. Inside Gatorades Social Media Command Center. Retrieved January 15, 2012, rom http://mashable.com/2010/06/15/gatorade-social-media-mission-control/

4 PepsiCo Video: Gatorade Mission Control. Retrieved January 15, 2012, rom http://www.youtube.com/watch?v=InrOvEE2v38

5 Research and Markets: Gatorade Case Study: Using Consumer Segmentation and Social Media to Drive Market Growth, Research and Marketspress release, February 4, 2011, on the Business Wire web site, http://www.businesswire.com/news/home/20110204005653/en/Research-Markets-Gatorade-Case-Study-Consumer-Segmentation, accessed January 15, 2012.

6 Edmund Lee, Tesco Acquires Social-Marketing Firm BzzAgent or $60 Million, http://adage.com/article/digital/tesco-buys-social-marketing-rm-bzzagent-60-million/227695/ (May 23, 2011).

7 Sharp,SonyandTescoFirsttoGainNewInsightintoTheirSocialCommerceStrategiesUsingReevoosNewAnalyticsTool,Reevoopressrelease,September 6, 2011, on the Business Wire web site, http://www.businesswire.com/news/home/20110906005638/en/Sharp-Sony-Tesco-Gain-Insight-Social-Commerce, accessed January 15, 2012.

8 Weigend, A. The Social Data Revolution(s).Retrieved January 15, 2012, rom http://blogs.hbr.org/now-new-next/2009/05/the-social-data-revolution.html



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8

Gamifcation2

Gaming gets seriousGamication is about taking the essence o games un,

play and passion and applying it to real-world, non-game

situations. In a business setting, that means designing

solutions using gaming principles in everything rom

back-oce tasks and training to sales management and

career counseling. Game mechanics lie at the heart o

gamication. For example, achievement levels, point-

tracking and bonuses are ways or desired activities to

be recognized and rewarded. Leaderboards and

progression indicators can steer individuals to reach the

next tier o perormance. Quests and countdowns can

help shape behavior the ormer as a way to structure

long combinations o tasks or a larger goal; the

latter to motivate a furry o activity within a nite,

specied timerame.

The so what or business is not any single one o these

items. Instead, the value lies in nding the right

combination o game mechanics that will resonate with

stakeholders to drive perormance.

One desired outcome o gamication is engagement

getting stakeholders passionately and deliberately involved

with your organization. Interaction, collaboration,

awareness and learning are related eects, whereindividuals are encouraged to make new connections

and share inormation. The key is dening a powerul

win condition that can work across a range o

personality types, align with business objectives and

oster sustained engagement.

Gamication can also enhance transparency andcompliance, since games almost always operate within

a well-dened set o rules. When aligned with desired

behavior, gamication can help guide awareness and

adoption o standard policies and processes, oten

operating in the background without the users conscious

eort. Gartner predicts that one quarter o day-to-day

business processes are likely to take advantage o some

aspect o gamication by 20151. That number jumps to

50% or organizations with ormal innovation

management process2.

For businesses working to manage generational workorceshits, gamication can be especially helpul. Millennials

already show a proclivity toward using gaming, social tools

and emerging technologies in their day-to-day lives3.

Educational systems particularly elementary and high

schools are also pursuing gamication in learning4. But

gaming is not just or digital natives. The average game

player today is 37 years old, and 42% o game players

are women5.

The potential o gamication or the enterprise is likely

to grow with time. Organizations that embrace the trend

have the opportunity to gain loyal customers and nd a

competitive edge in recruiting, retention, talentdevelopment and business perormance.


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Gamication

History repeating itsel?Games have been a mainstay o culture throughout history. Indeed, academic d isciplines, simulations and even virtual

worlds have been launched to understand and harness the power o games. In 2012, gamication moves beyond

entertainment to business perormance, using intuitive design, intrinsic motivation and the sense o accomplishment

that comes rom completing activities with clear and personal value.


Serious gaming Simulations, table-top exercises and war gaminghave long used sophisticated models to emulatecomplex behavior, delivered through a game-like

interace. These tools are good or testingpotential strategies against predicted marketconditions, driving situational awareness orexecutives and eld personnel, and shapingbehavior through interactive training. But therehas been an inherent disconnect between theboundaries o the game and real-world opera-tions, behaviors and business outcomes. They arestudies, not systemic implementations.

Heavy business simulations and war-gamingapplications have had a high barrier to entryin that serious games are only as good as theirunderlying rules and models. Social, economic,cultural and interpersonal actors should not onlyrefect the actual business environment, but alsobe presented in an engaging manner that drives

participation, learning and action.

I the rules are transparent or discoverable, theplayer experience can be dominated by the microincentives o the game itsel, not the macroimplications to the enterprise.

Gamication applies game mechanics anddynamics to produce results that go ar beyondsimple entertainment. It embeds these principles

into how people work, collaborate and transactbusiness a systemic change. This is distin-guished rom serious gaming, where a walledgarden with a compelling gaming hook isused to educate, motivate or achieve asecondary outcome.

A number o serious gaming companies havecreated statistical studies and industry/unction-specic repositories o rules and models, alongwith underlying technology platorms that can bereused across scenarios. This has led to moderategrowth in the areas in which serious gaming isapplied. It has also ostered eective approachesto help maintain the integrity o, and ongoinginterest in, the game.

Cognitive psychology/

behavioral economics/

game theory

Well-established elds in science study howpeople acquire, process and store inorma-tion and how these concepts apply to classiceconomic theory (e.g., rationality o marketsand players) to model real-world conditions6.However, most real-world situations have toomany variables, players and extenuating actorsto be analyzed. Outside o political science,economic theory and social psychology, the

concepts have been dicult to apply, especially inday-to-day business scenarios.

Eective design o game mechanics and dynamicsare oten predicated on models and researchrom these elds. In a sense, gamication is theindustrialization o these academic concepts shiting rom research and theory to tacticalbusiness processes and ront-line employees.


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10

Gamication

Technology implicationsFuture generations o enterprise systems are likely to have game mechanics embedded in their design. For now, however,

most organizations are likely to layer their gamication strategies into established packages and custom solutions. A

number o technical building blocks should be considered to realize gamications potential.

Topic Description

Enterprise systems Almost every game mechanic is ueled by activities or events, such as knowing what a playeris doing, being able to change the state o the game, or providing appropriate rewards oracknowledgements. The lack o openness o underlying packages and custom systems can be aconstraint against driving external gamication elements (e.g., making activities visible, timely and

with enough context or the game dynamics) or embedding gamication into the current platorm.

Game mechanics

platorms

A number o solutions have emerged in the past 12 months that provide plug-ins or third-partyservices or leaderboards, achievements and virtual currencies and rewards to help motivate andmonitor employee engagement, compliance and perormance especially in areas such as educationand learning, health and wellness, call center/customer care, and sales and marketing. These samemechanics can also be applied to customer-acing oerings to drive retention, loyalty and advocacy.

Social business Connectivity, collaboration and knowledge-sharing are key dimensions o gamication.Understanding how communities are connected in a social graph and how games can be linked tosocial computing and social media tools can aect the ability to meet the goals o the eort.

Mobility Location-based services ueled by mobile devices allow advanced techniques known as appointmentdynamics, where specic actions or rewards are available only i a user is in a predetermined

physical place at a specic time7. More broadly, mobile channels can be natural candidates or thegamication o business processes, especially when anytime/anywhere, short-lived, meaningultouch-points are desirable.


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Gamication

Lessons rom the rontlinesHealth and wellness is not a game (unless it is)

Encouraging members to live healthier lives has long been

a Holy Grail or health plans not only because o the civic

good, but also because o the bottom-line impact. Five

hundred billion dollars in annual spending goes to treating

largely preventable conditions such as hypertension,

diabetes and heart d isease representing 70 to 80% o US

health care costs8. One provider rolled out Mindblooms

Lie Game, an interactive platorm or users to establish

health goals, which uses game mechanics to monitor their

progress, and can tap into social channels or extramotivation. In Lie Game, users can cultivate a virtual tree

representing their physical, emotional, nancial and

spiritual well-being earning water and seeds by

completing tasks such as taking a walk, eating more

healthy oods or putting savings into an emergency und.

In a beta trial, users visited the site an average o 35 times

per week, spending about 15 minutes during each visit.

These users set out to perorm 13 million actions and

perormed about three-quarters o them. This represents a

50% increase over prior attempts without gamication.

Cubiclegaming

Several productivity sotware vendors are using

gamication to help train users on overlooked eatures o

their tools. Many are built around cascading inormation

theory, where complicated unctions are hidden until

needed. Level progression, achievements and points

tracking are present (e.g., +50 points or not using a

hint), guiding users to discover useul new eatures and

build prociency. The gaming layer can also provide

incentives to ollow standards rom corporate templates

in word processors to coding standards in integrated

development environments (IDEs) helping spur learning,compliance and engagement.

Restaurant service gets gamifed

Onthesurface,NotYourAverageJoesresemblesatypical

restaurant chain, oering creative, casual cuisine within

their 17 locations. Behind the scenes, though, certain

restaurants are using gamication to link point-o-sale data

and scheduling sotware where employee behavior such

as up-selling, cross-selling and timely returns rom breaks

are used to drive achievements and awards. For example,

employees with the most sales and tips can earn their

desired shits. The early results include a 1.8% increase

in sales and an 11% increase in gratuities throughout the

NotYourAverageJoeschain 9.


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12

Gamication

I love snow skiing. And the last time I hit the slopes, I was

thrilled to nd that through the magic o RFID, I was able

to keep track o my accomplishments on my smartphone

everything rom how many black diamonds I had skied

to the vertical eet I had traversed over the course o the

day. Even more exciting, I was able to share this data withamily and riends, and see how well they were doing, too.

And, not surprisingly, how I stacked up. Ultimately, we

were in a riendly competition to rack up awards and win

badges based on our accomplishments and scores.

We were modiying our behavior in direct response to a

lighthearted, un little game. We were taking on slopes

that we wouldnt have considered beore. Squeezing in a

couple more runs beore calling it a day. Pushing ourselves

to go a little aster and harder. And thats also why

gamication is catching the attention o so many business

leaders. The ability to change behavior by encouraging

personal growth via game-like engagement could be amanagement bonanza, or obvious reasons.

The concept itsel is not new. In act, my venture capital

rm saw a serious gaming/gamication pitch over a

decade ago. But the idea didnt take o. I think the

renewed interest today has a lot to do with the rise o

social business. Beore social media tools, one o the

biggest hurdles was creating and sustaining a network o

players. Without that, theres little hope o a game taking

o. By tapping into public social media channels and social

computing platorms being adopted in the workplace,

serious games can take advantage o existing socialnetworks inside and outside o the business. This is a

natural environment or successul gaming, as the swit rise

o social gaming companies has demonstrated. Applying

the principles to day-to-day business processes can have

great potential.

Gilman Louie

Partner

Alsop Louie Partners

My take

Having spent much o my career in the gaming industry,

there are a ew principles o game design that, i ollowed,

could make a big dierence. For example, when I rst

helped license Tetris, I learned the 80/20 rule: 80% o a

players experience in a game should be positive. The rest

o the time, players should be barely missing their goals.Basically, everybody wins at least or part o the time.

And when they lose, they understand why and eel that

overcoming whatever obstacle ahead is within their grasp.

This should be coupled with constant positive

reinorcement and incremental, attainable rewards. That

potent combination can make a game addictive.

And yet in the business world, many games only have a

handul o winners, and lots o losers. Gamication should

not simply be another spotlight on your top perormers. I

a player is dominating the game, the rest o the

population is likely to either try to derail the winner, or

sabotage the game. Hyper-competition rarely leads to

sustained improvements perormance or positive

behavior change.

In some ways, gamication isnt really a new trend. Its just

one o the latest maniestations o the oundation o

business: the desire to compete. The desire to keep score.

But dont orget to start with clearly dened business

objectives, and align gaming mechanics with metrics and

incentives. And remember the importance o undamental

gaming principles. Gamication done well tells an

employee: you are doing better than you did yesterday,

you are contributing to the goals o the enterprise, and thetools or growth and personal development are in your

hands. Game on.

12

Gamication


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Gamication

Where do you start?Gamication is about infuencing behavior. At its roots are

simple psychological constructs o ability, motivation and

triggering10. Ability refects the individuals skill, time,

attention and mental capacity to perorm a task.

Motivation describes desire to engage personal

interests, the perceived value o potential outcomes and

their willingness to participate. A trigger is something to

prompt targeted behavior. Triggers can be either explicit

(directing the user to take action) or experiential (providing

a sandbox where possibilities can be explored). All three

actors must converge at the same time to achieve desiredresults. This basic raming will help inorm you where

to start:

Pickyourtarget.Establish clear, simple objectives that

arewell-suitedforgamication.Notallbusiness

scenarios have obvious triggers where behavior can be

infuenced. Tasks that are very complex are hard to

gamiy. Tasks that are very mundane may be immune to

motivational infuences. Early adopters o gamication

have targeted training, back-oce processes, sales,

marketing and promotions to consumers.

Knowyouraudience.Noteveryindividualwillreactthe

same way to game dynamics. Dierent personality types

have dierent motivations. To this end, Richard Bartle

identied our types o game players: socializers,

achievers, explorers and killers11. Having a balance o

game mechanics collaborative, collect-and-curate,

discovery and competitive will be necessary. The

balance should match the needs o your specic

community and desired results.

Ridethewave.Social and mobile players have been

early adopters o gamication techniques as means to

stand-out and gain traction (e.g., Foursquare, Twitter,

Getglue). Businesses that are rethinking their processes

to take advantage o mobile and social dynamics can

nd many opportunities or gamication. From strategy

to creative to user experience to engineering, consider

the potential o game mechanics to improve

engagement and perormance. Ride the coat-tails o

mobile and social initiatives that the business already

understands and likely has already unded to

start layering in gamication concepts or enhancedbusiness outcomes.

Knockdownthefourthwall.Look or ways to use

gamication to engage with business partners,

customers and the general public. A mobile service

provider in the United Kingdom with no retail

distribution, no call center, no advertising, and only

16 ull-time employees uses social customers and

gamication principles to operate their business. They

use points and rewards to source service reerrals, help

to solve customer service issues and even create

promotional material or the company. Gamication

can help organizations leap-rog into broader socialbusiness12, user empowerment13 and measured

innovation14, tapping into external constituents in

new and exciting ways.


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14

Gamication

Endnotes1 Gartner,Inc.Predicts2012:OrganizationalPoliticsHampers,GamicationMotivatesBPMAdoption(ResearchNoteG00223822),November15,

2011.

2 Gartner,Inc.InnovationInsight:GamicationAddsFunandInnovationtoInspireEngagement(IDNumber:G00226393),December20,2011.

3 Beloit College Video: The Mindset List or the Class o 2015. Retrieved January 24, 2012 rom http://www.youtube.com/watch?eature=player_embedded&v=J4HJ6EHb3CI

4 Donahoo, D. Gamifcation in Education: Should We Play? Retrieved January 24, 2012, rom http://www.hungtonpost.com/daniel-donahoo/gamication-in-education_b_927842.html

5 Industry Facts, on the ESA Entertainment Sotware Association web site, http://www.theesa.com/acts/index.asp, accessed January 14, 2012.

6 Richard H. Thaler and Sendhil Mullainathan, How Behavioral Economics Diers rom Traditional Economics, http://www.econlib.org/library/Enc/BehavioralEconomics.html (2008).

7 Gamication, on the Gamication Wiki web site, http://gamication.org/, accessed January 14, 2012.

8 MilkenInstitute,AnUnhealthyAmerica:TheEconomicBurdenofChronicDisease--ChartingaNewCoursetoSaveLivesandIncrease

Productivity and Economic Growth, October 2007, http://www.milkeninstitute.org/publications/publications.ta?unction=detail&ID=38801018&cat=ResRep, accessed January 14, 2012.

9 Sarah Kessler, Can Gamiying a Restaurant Get You Better Service?,http://mashable.com/2011/11/30/objective_logistics/(November30,2011).

10 Wu, Michael. Gamifcation rom a Company o Pro Gamers. Retrieved January 14, 2012, rom http://lithosphere.lithium.com/t5/Building-Community-the-Platorm/Gamication-rom-a-Company-o-Pro-Gamers/ba-p/19258

11 Richard Bartle, Hearts, Clubs, Diamonds, Spades: Players who suit MUDs, http://mud.co.uk/richard/hcds.htm

12 Additional inormation is available in Deloitte Consulting LLP (2012), Tech Trends 2012: Elevate IT or digital business, www.deloitte.com/us/techtrends2012, Chapter 1.



Bottom lineGamicationisridingthreewaves.Therstisthegrowingbaseofworkersandcustomersraisedunderthe

inuenceofvideogamesandconsumertechnology.Thesecondisthemeteoricexpansionofmobile,social

andcloudtechnologiesacrossthebusiness.Thethirdistheongoingeffortstoimprovebusinessprocess

executionandperformancethroughtechnology.Gamicationlookstoembedgameattributesinto

day-to-daybusinessactivitiesinteractingwiththenextgenerationintheirnativelanguage,andtapping

intoanenthusiasticoldergenerationthathasembracedgaming.Asthebridgetothepostdigitalerais

beingbuilt,organizationsaremakingbigbetstotakeadvantageofthistransformation.
http://www.youtube.com/watch?feature=player_embedded&v=J4HJ6EHb3CIhttp://www.youtube.com/watch?feature=player_embedded&v=J4HJ6EHb3CIhttp://www.huffingtonpost.com/daniel-donahoo/gamification-in-education_b_927842.htmlhttp://www.huffingtonpost.com/daniel-donahoo/gamification-in-education_b_927842.htmlhttp://www.huffingtonpost.com/daniel-donahoo/gamification-in-education_b_927842.htmlhttp://www.huffingtonpost.com/daniel-donahoo/gamification-in-education_b_927842.htmlhttp://www.youtube.com/watch?feature=player_embedded&v=J4HJ6EHb3CIhttp://www.youtube.com/watch?feature=player_embedded&v=J4HJ6EHb3CI


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16

Enterprise Mobility Unleashed

History repeating itsel?Mobility has evolved rom an issue within a ew niche industries and unctions (think oil & gas and logistics services) to a

potential source o innovation across wide-ranging vertical industries, processes and business models. And while many o

the underlying components have been evolving or decades, the break-out potential is only now being realized.


App or that backlash With the explosion o interest in mobile applica-tions came the inevitable wave o ill-conceived,underwhelming releases conrming skepticsbelies that mobile is, at best, a distribution tool

and, at worst, a distraction.Early developers ported existing systems and

reports designed or desktops to mobile. Theresulting multi-purpose apps proved unwieldyon the small screen, and replicating point/click/type unctionality using a touch/swipe interaceproved painul.

Developers had a losing choice: deal with thecomplexity o designing multiple native apps orendure the sub-par user experience o simplerweb-based apps.

Most organizations only had a handul o mobilesolutions in production, making the requiredinrastructure and enterprise enablement supportseem like overhead.

Many organizations now understand the impor-tance o design-led mobile solutions that ocus onusability and how work should get done.

Early experiments in business-to-consumer and

early business-to-business scenarios are leadingto more compelling, complex applications acrossthe enterprise value chain, making integration,security and manageability more critical.

Cross-platorm, multi-environment applicationsuites and HTML5 implementations have evolvedto more credibly oer develop once, deploymany approaches to mobile.

As mobility reaches critical mass, the need ordevice management, product management,application management, security and privacymanagement, and other enterprise capabilitiesshits rom good to have to must have, andthe vendors are responding.

Specialized mobileequipment and

network/carrier

inrastructure

Ruggedized, hardened and other t-to-purposedevices were too expensive to allow mobile usecases to propagate.

Splintered ecosystems across manuacturers andoperating environments stymied marketplaceinnovation.

Devices lacked the horsepower and fexibilityto handle divergent tasks, which limited theirpotential usage.

Advanced mobile solutions had architecturaldependencies on carrier inrastructure (e.g.,wireless access protocol (WAP) gateways/proxies,authentication, authorization and accounting(AAA)-driven session management.)

Consumer-grade device prices have allen,causing some previous buyers o high-endspecialized gear to consider switching to lower-cost, easily replaceable devices.

As standards emerge in the mobile ecosystem,device manuacturers are beginning to adoptopen platorms (e.g., Android).

Advances in memory, display, computing andperipherals allow portability between personasand use cases moving reely between PC, tabletand handheld.

Mobile networks now enable true endpoint-to-endpoint connectivity, agnostic o inrastructuraldetails.

Asset intell igence1 Embedded sensors expand enterprise mobilitys

potential, but compatibility between machineryand sensors was limited.Sensor prices have been too high or commodity

adoption.Visibility without sense-making led to data proli-

eration, not insights.

Machine-to-machine middleware and application

logic are improving compatibility in hardware/manuacturer protocols and communicationchannels.

Prices have decreased dramatically or embeddedsensors, communications and onboard compute/memory.

Cost-ecient solutions are emerging or businessrules engines to perorm edge-based logic,allowing signals to be processed that can initiateactuation, not just data broadcast.


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Technology implicationsEnterprise mobility can unleash business transormation rom the top down, but it is inherently a technology-driven

advance with potential consequences that the CIO should be prepared to manage.

Topic Description

Bring your own device

(BYOD)

Whether or not to allow employees to bring their own devices to work is top-o-mind or many CIOs.Its not clear that mobile device policies and management controls are enorceable, especially acrossinternational borders. Country regulations regarding e-discovery and the legality o remotely wipingpersonal devices with a corporate ootprint vary. I BYOD is pursued, data and application containersshould be considered to partition user and corporate assets.

Mobile device

management (MDM)

Organizations will need an arsenal o tools, policies and back-end scripting to monitor, manageand control devices. MDM can protect applications, patches and security agents that are properlyprovisioned and can allow data to be automatically backed-up and protected while at rest and intransit. It can also allow devices to be triaged, disabled or wiped clean i compromised. The vendorlandscape is crowded. There is the potential or consolidation over the course o 2012.

Security and privacy Organizations need policies and tools to authenticate users; control devices, applications and data;provide end-to-end encryption while at rest, in fight and in use; run content ltering and malwareprotection; and allow security event monitoring, logging and response. Security policies and prolesshould be tied to specic users and scenarios, ocusing remedies on likely incidents, not the inniterange o risk possibilities.

Mobile application

management

Deployment o in-house and third-party mobile applications is not a trivial matter; nor is the

management o provisioning proles, entitlements, licensing, compliance and user-accesstermination. In-house enterprise app stores have emerged, as have tools or administering access listsacross internal and external application portolios.

Mobile middleware Organizations will need to manage mobile solution integration to on-premise and cloud-basedenterprise systems and data, as well as improve data transmission to mobile devices based on layoutand bandwidth consumption. This includes management o variability in network connectivity andperormance including tools or enabling o-line mode and ways to deal with requent air-interaceswitching between 4G (LTE/WiMax), 3G (EVDO/HSPA), 2.5G (1xRTT/Edge) and Wi-Fi networks ovarying signal strengths.

Desktop virtualization Some organizations may opt or a data-centric approach to mobile enablement, choosing to limit thedata actually resident on the mobile device. Relying on virtualized environments allows organizationsto provide access without relinquishing control.

Mobile application

architecture

Debatecontinuesoverthepreferredapproachtoapplicationdevelopment.Nativeapplicationcoding

allows greater control over operating systems and device eatures. Cross-platorm developmentallows a build once, deploy many times delivery. And new browser-based or web standards likeHTML5 hold the potential or easier porting with better unctionality.

Mobility testing suites Emerging services can automate the testing o solutions across devices and operating systems,simulating varying levels o connectivity and network perormance including diagnostic tools toidentiy data and system dependencies to shrink time-to-deployment while increasing multipledevice support.


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18


Lessons rom the rontlinesInnovation on the rails

Amtrak is investing in mobility in a big way targeting

conductors and customers to build on record-high

ridership and revenue perormance in 2011. Historically,

conductors have been saddled with paper-based, manual

processes or dealing with everything rom ticket collection

to service maintenance, but mobility is changing that. A

solution combining a mobile app with a magnetic stripe

reader is modernizing railway operations and the

industry. Conductors use the app to process tickets,

perorm prompt raud validation, prove customernotication o potential scheduling issues, and eed into a

sophisticated model that tracks customers and their

location on the train. This improves the conductors

eciency by identiying which doors to open during stops,

arranging or the right number o wheelchairs at the right

place upon an individuals departure, and providing a

sense or the capacity and likely needs or each car. In the

past, aulty toilets, damaged seats or broken kitchen

equipment would be serviced only at the end o an

extended route. With the new mobile app, incidents can

be reported in real-time, allowing maintenance to be

scheduled at intermediate stops along the way. This

unctionality led to enthusiastic adoption by conductors ina matter o minutes ater deployment, versus weeks o

training or IT services that have historically led to poor

traction, usage and results.

For passengers, theres a complementary app available

that oers scheduling, ticketing and check-in capabilities

as standard eatures presented with a highly usable

interace. The concept has been extended to include

gamication principles: customers earn stamps while

traveling, link achievements to social networks and see

visualizations o their personal travels compared to peer

groups or requent travelers. This inormation is linked

to Amtraks reward and loyalty program, encouraging

customers to pursue new methods o engagement

beyond traditional channels.

Fasterthanaspeedingbullet

Disaster recovery and continuity planning are rarely the

source o innovation. This has an unortunate side eect:

disaster-response knowledge is oten trapped within bulky

printed materials sitting inside the very oce buildings

most likely to be aected during an emergency. Plus, with

increasingly mobile workorces, the challenge o tracking

and helping your people during a crisis is virtually

impossible without technologys help. Bamboo is a service

to address these needs by providing a mobile vehicle or

reporting incidents, acilitating communication between

team members and potential rst responders, and allowingindividuals to understand what they should do during and

ater an event. Continuity plans are stored locally, allowing

teams to mobilize even i connectivity is lost.

Thefutureofretail

A large retail organization has embraced mobility not as

a siloed commerce channel, but as a means to empower

customers and drive loyalty through new services and

oerings. Smartphone, tablet and mobile web oerings

provide mailings, product browsing, inventory searches,

coupons, git registries and shopping lists. Emerging mobile

and e-commerce platorms have generated innovations in

interactive advertisements, individualized coupons that canbe scanned at the point-o-sale, and integration to their

brick and mortar stores. The organization marries digital

content with inventory, price and in-store location down

to the aisle and shel detail showcasing an omni-channel

strategy bigger than the web, mobile, social or storeront

individually.


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The mobile revolution is underway. Companies big and

small, across virtually every industry, are clamoring to

unlock the potential o mobility in their business. At

bermind, we have helped some o the largest and most

recognizable brands dene and execute their mobile

strategy2. Our goal is not just to create killer, intuitivemobile apps that are breathtakingly beautiul as they are

unctional (though we love to do that); it is to help

companies transorm their business through the use o the

new generation o smartphone and tablet devices. And to

rethink operating and business models constrained only

by our imagination o how a digitally advanced, always-

connected customer base, coupled with a truly untethered

workorce, can transorm an industry. How business is

conducted. How markets are shaped.

Surely in some cases the most eective answer is to build

rom todays reality to do what youve historically done,but to take advantage o mobile capabilities to do it better.

But what really excites me is when we can help dene a

new tomorrow not just doing things d ierently, but

doing dierent things. And when you are using mobile

coupled with other technology-based innovations like

analytics, social, gamication, cloud computing and

visualization as a Trojan horse or transormative thinking.

But this time, realizing how a very sophisticated always

on, always connected, in your pocket computing device

(which some people call a phone) can help empower

everybody that engages with your business be they

customers, employees or business partners.

Shehryar Khan

Founder and ormer CEO

bermind, Inc.

My take

Unleashing mobile has tremendous potential. But to ully

realize this, it is important to acknowledge how mobile can

impact many aspects o your business rom how your

customers can engage with you in new and interesting

ways, but also in how you can make a dierence in the

lives o your employees by equipping them with tools thathelp enable them to do their jobs more eectively. Keeping

an enterprise rame-o-mind is also important, actoring in

special considerations and gotchas that come with

enabling mission-critical aspects o the business through

mobile innovation. Security. Scalability. Reliability.

Maintainability. Flexibility. Integrated into back-oce

systems, data and workfows.

Developing, deploying and supporting mobile solutions is

quite a bit d ierent than traditional IT. Doing it well

requires a special blend o business insight, deep technical

chops and strong design. Companies that recognize thisrequired mix o business, art and science can set

themselves apart rom their competition and help to

reshape entire industries.


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20


Where do you start?For many organizations, the mobility opportunity is clear.

But understanding where to begin isnt as straightorward.

CIOs are in the middle o the mix, acing their own

concerns about the strategy, inrastructure and delivery

capabilities required to meet mobility demand with

enterprise-class solutions. To position IT as a driver o

business innovation and agility, consider these next steps:

Fuelthearmsrace. Move mobile toward the top o the

CIO agenda. Put together a three-person swat team

designer, architect and developer and have themrapidly train on a platorm o choice. Find the early seeds

o mobile opportunities in the business, and zero in on

one that has clear business value.

Buildafoundationalstrategy. The mobility landscape

is moving at warp speed. CIOs need a mobile strategy

limited to a six-month horizon. Decide on an initial

mobile app architecture. Establish oundational

recommendations or management, deployment and

support. Create a roadmap o prioritized use-cases and

apps. And establish a plan or how to meet demand.

The strategy doesnt need to be exclusionary o any

specic technology options: choose where to developnatively, where to use a cross-platorm enablement tool,

and where to build a mobile-tailored web app. Do them

all at once, or in rapid succession, and you are likely to

buy yoursel strategic fexibility or the medium-term.

Centralize.Given the reedom to run, each pocket

within an organization is likely to either build skills in

mobile app design and development, or outsource it.

Even worse, they could establish competing policies

with varying levels o enterprise-class eatures (security,

privacy, integration, data management). This could

conuse users and jeopardize your brand. Plus, each silo

will go through its own learning curve. Having a core

group or center o excellence that shares experiences

among unctions and business areas can accelerate the

move rom the mobile veneering o existing operations

to true innovation.

Thinkdifferently.Mobile is a dierent beast than

traditional IT. To achieve your goals, youll need a unique

mix o creativity and design talent that might not be a

core discipline within the CIOs shop. Take cues rom

leading consumer applications, and improve scope,

usability and back-end perormance to leverage the

unique characteristics o mobile.


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Endnotes1 Additional inormation is available in Deloitte Consulting LLP (2010), Depth Perception: A dozen technology trends shaping business and IT in

2010, http://www.deloitte.com/us/2010technologytrends, Chapter 11.

2 Deloitte Acquires bermind; Establishes Lead in the Mobile Revolution, Deloitte LLP press release, January 4, 2012, on the Deloitte LLP website, http://www.deloitte.com/view/en_US/us/press/Press-Releases/5a2480b618a4310VgnVCM1000001a5600aRCRD.htm, accessed January25, 2012.

Bottom lineMobilityisquicklybecomingoneofthemostimportantbattlegroundsforbusinessinnovation.Operating

modelsarebeingredrawnforconsumers,employeesandbusinesspartnersalike.Thisputsenormous

pressureonCIOstodeterminewhethermobilesolutionsarereadyfortheenterprise.Inthepushfor

usability,however,ideaslikereliability,security,performanceandmaintainabilityshouldnotbeforgotten.

Regardless,theresnoexcusefornotpursuingmobile.Therevolutioniswellunderway.Everybusiness

shouldbeexploringhowitwilloperatewhenlocationconstraintsareobliterated.EveryCIOshouldhavea

clearvisionofaworldinwhicheverycustomer,workerandsupplierishyper-productive,hyper-available

andhyper-engaged.


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22

User Empowerment4

The end-user renaissance orces adisruptive shit in ITIn their personal lives, business users are enjoying a

technology renaissance that continues to deliver simple,

elegant and oten innovative technology products. Then

they come to work expecting the same experience. To

meet those expectations, IT leaders should understand and

deliver capabilities that engage each key persona o their

users, enabling a given role in the way they actually

perorm their job. But it shouldnt stop there. The real trick

is envisioning how emerging technologies and new orm

actors can improve how work actually gets done.

Enterprise users are clamoring or mobile and social

enablement collaboration, inormation and insightwherever, whenever. Theyre looking to leave behind the

legacy point, click, type world or one o touch, swipe,

talk and gesture, and they wont hesitate to go around

central IT to get the capabilities they need. The CIO

must envision the digital uture and deliver the

empowered present.

User empowerment builds on this reality, embodying the

tenets o user engagement and embracing ree-market

principles that are becoming a central eature o todays

IT environment1. Said another way, it refects the

democratization o corporate technology.

End users have plenty o opportunities to bypass IT and

procure o-the-shel or low/no-code solutions that are just

good enough to meet their needs. Through mobile and

desktop application (app) stores, cloud-based marketplaces

and rapid development and deployment platorms,

business stakeholders are one swipe o the corporate credit

card away rom procuring rogue almost-enterprise

applications to ulll their unmet needs. As a result, CIOs

should consider adopting a design-led, user-centric

approach to new application development, while also

accepting the inevitability o business users directly

sourcing apps. BYOA (bring your own application) will likelybecome part o many organizations solution ootprints.

These changes should not be chalked up to nearious

motivations among empowered users. They simply

represent market dynamics at play. Users expect intuitive,

dynamic solutions now, and corporate IT has historically

ocused on underlying architecture and completeness o

solutions the oundation and the plumbing, not the

decor. ITs success in this area is part o the challenge:

while process automation has been generally satised, end

users have begun to expect something more. In general,

they want more than utility, they want elegance and they

are typically not araid to tap into any channel at theirdisposal to get it.

CIOs can use this movement to their advantage, but it may

require some uncomortable change. For starters, creative

and user experience (UX) talent with a deep understanding

o human behavior will likely be required as a core

competency. Agile and Scrum delivery capabilities will

complement heavier methodologies, supporting rapid

prototyping and a design-led iterative approach. Broad

integration, security and data management services should

be developed and marketed along with proactive

guidance or business users on how central IT can help in

this new user-empowered world. Think service-orientedarchitecture not only in the technology stack, but also in

how business capabilities are described2.

Without succeeding in this shit, a CIO may be treated as

an obstacle or viewed as irrelevant to the business vision.

Thats why its important or CIOs to guide the business

through the inevitable disruption o technology

innovations, and to be seen as co-conspirators by their

empowered users, enabling and accelerating the

upward journey.


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History repeating itsel?User empowerment in 2012 is the culmination o a journey evolving rom the industrial revolution and advancing through

the inormation age. It is heavily infuenced by technology and trends that have been guiding consumer product design

and branding or decades. It also refects the disintermediation o central IT something oreshadowed during prior

evolutionary leaps rom mainrame to client server to the onset o the Internet.

User Empowerment


User experience (UX) UX is meant to be broad in scope aectinghow a product is discovered, learned and used.It could be applied to any system: physical or

logical, inormational or transaction. UX saw aresurgence with the web explosion in the early2000s, but unortunately became tightly associ-ated with site design and page look/eel, layoutand fow.

UX has not been embraced by many IT depart-ments. Some organizations that attempted todevelop creative or UX competencies oundit dicult to attract and retain the talent theyneeded. As such, the infuence o UX hasbeen limited.

User empowerment requires UX to be raisedbeyond ergonomics, color palettes and theplacement o web elements. The principles

o user engagement require creative and UXdisciplines but there is a more ambitious, trans-ormative agenda at stake. Creating a design-led,creative-inused approach to solutions requiresbuilding rom a vision o how users coulddotheir jobs. This eort should not be limited byunderlying systems, data or constraints o how

jobs are done today.

The scope o user empowerment reaches acrossemployee- and customer-acing unctions,business processes and channels.

Users expect intuitive interaces that requireminimal training to get up and running unc-tional simplicity on top o elegant designs.

Composite application rameworks allow acombination o highly usable, engagingorm actors hiding the complexity ounderlying back-end systems be they legacyor emerging solutions.

Human actor science A multi-disciplinary approach was taken tounderstand and improve how individuals interactwith the world. Volumes o research existed, butthey were largely theoretical and abstract, so theimpact on inormation systems and enterprise ITwas limited.

User engagement employed exacting researchwith infuences rom psychology, statistics,industrial design, operations and various

branches o engineering. This required a highlyspecialized skill-set, making it dicult and costlyto cultivate talent.

User empowerment looks to build rom thebreakthroughs o human actor sciences buttailors the ndings to practical IT solutions.

Advances in big data and analytics lowers theentry barriers or some favors o insights withlightweight tools now available to analyze volu-minous, granular data describing user behaviorand preerences.

Desktop-ware/macros/

almost-enterprise

applications3

Democratization o IT occurred in several waves:macros in the early mainrame days; desktop-ware in the early client/server days; departmentalweb solutions as the Internet went mainstream;and now line-o-business investments in cloudand mobile apps. The delivery model and under-lying technology changed, but the pursuit is thesame agility and control.

Unlike past incarnations, user empowerment isnot about enacting control or punishing innova-tion. It is about reinventing IT as a compelling seto service-based capabilities in line with consumersensibilities, fuent in emerging technologies andable to guide and accelerate almost-enterpriseapplication adoption.



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Technology implicationsThe sentiment o user empowerment can sometimes eel esoteric and abstract. But, in practice, realizing the vision o

design-led solutions that integrate almost-enterprise solutions at the ringes o the business with legacy systems is

a daunting technical challenge. Fortunately, the required tools already exist. They just need to be eectively applied.

Topic Description

Composite application

rameworks / business

process management

These rameworks are designed or orchestrating long-running, end-to-end business processes overa series o steps and discrete systems. They can be used or more simplistic business processes aswell as complex ones, and or integrating processes rom multiple back-end systems. Tools haveemerged to allow a given transaction to be assembled rom public and private cloud services, legacy

on-premise enterprise systems and data, and manual tasks by employees, by business partners andeven by customers or prospects. Oten coupled with business rules engines and messaging layers,these advanced platorms are designed to allow or dynamic routing and composition o services,with steps and services dictated by data in the workload, or by external actors such as supply chainstatus, trac updates and customer service interactions.

Agile/Scrum Adding to your sotware development liecycle (SDLC) and operational processes and tools tosupport an agile approach can be a sizable eort. Release management, conguration management,portolio tracking, project management and testing standards are likely based on traditional waterallmentalities and have become hard-wired in enabling systems and inrastructure.

Wireraming/

prototyping

The ability to rapidly iterate through design concepts and create representative prototypes isnecessary or executing any vision or user empowerment. Dont get lost in the weeds trying tochoose the right tools. Instead, attempt to standardize in order to help build critical mass in the team.

Next generation

development languages

A number o no- or low-code development approaches are gaining traction including Ruby onRails,Python,Force.comandGooglesEnterpriseAppEngine.EnterprisestandardslikeJ2EE,.NET

and COBOL will not be completely replaced, but will likely be coupled with new languages to driveedge experimentation and rapid concept-to-prototype-to-nished-product cycles.

Integration Back-end system integration is usually a bottleneck in the way o rapid solution build-out. Movingrom representative prototypes to stand-alone applications to a critical system with interacesto legacy systems and data can happen very quickly, especially i user adoption takes o. Themost useul apps are those that are ully integrated. IT should build a service bus and integrationramework capable o handling tiers o service levels a spectrum o reliability, perormance,transactional integrity and security capabilities. Recognize that user empowerment will likelyintroduce new integration patterns to support the required fexibility, based on SOA principles. Inaddition, integration rom cloud oerings to the core, and rom the core to external services, shouldbe considered rom social platorms to business partner services.

Vendor, contract and

asset management

Standardized processes supported by specialized tools should be deployed to track and managevendors, contracts and associated assets. Asset tracking needs to move beyond physical devicesand sotware licenses to become a services repository tracking cloud services, application andintegration objects, mobile apps, on-premise solutions and other IT resources, many o which maynot be owned by central IT.

User Empowerment


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User Empowerment

Lessons rom the rontlinesSaycheese

A world leader in cheese manuacturing was seeing rising

costs in maintaining its ten plants. Even with veteran skilled

technicians, users were struggling mostly because o

aging systems with complex interaces. Commonplace

activities like transerring stock between warehouses,

creating work orders or maintenance and interacting with

notication events were dicult to complete. Users were

making a lot o errors and getting rustrated with the

tools that were supposed to be making their lives easier.

In conjunction with eorts to standardize on a modern ERP

platorm, a new user interace was created, tailored to how

plant workers do their jobs. Simplication was the key

showing only the inormation needed to complete a task,

with visual cues to guide users along in the process. The

intuitive ront-end was integrated into the complex plant

systems and back-oce ERP built upon their back-end

processes, data standards and transactional integrity. With

the new interace, tasks are completed using 70% ewer

clicks. Technician productivity has increased by double

digits, and urther cost savings have been realized by

reducing the need or extensive user training all because

o an engaged, empowered user base.

Yourtableisready

A global leader in the restaurant industry, with brands

spanning rom quick service through casual dining sectors,

was looking or new ways to attract and connect with

customers hoping to bolster brand loyalty, increase visits

and grow average check sizes. The prolieration o mobile

devices and applications, social media and analytics piqued

their interest, as did stories o retail and other hospitality

sectors adopting these technologies. The company decided

to deploy digital technology and social media to create a

new digital experience or customers which allowedthe business to learn more about guests wants and

preerences.

A digital interaction platorm to enable the multiple

channels o engagement was the answer. By giving guests

the ability to engage and interact using mobile, web and

kiosk applications, the company is looking to gain insight

and control over how, when and where guests interact

with a restaurant brand. They took the rst step by

deploying online and mobile app ordering, resulting in a

double digit sales increase or that sales channel. The next

step will be to allow guests to see the real-time availability

o multiple restaurants on a smart phone, determine

locations with short wait times and get their names on

waiting lists beore they get to the restaurant. Therestaurant can detect their arrival beore they walk in the

door and be prepared with a personal greeting. These

empowerment initiatives, coupled with digitally enabled

loyalty and reward programs, put the power o the

relationship in the hands o the customer. They are looking

to their empowered users to dene the restaurant o

tomorrow.

Empoweringthevaluechain

A high tech hardware manuacturer saw the opportunity

to transorm how its global sales orce collaborated, both

internally with engineering and R&D teams, and externally

with business partners. The opportunity was driven bychallenges associated with new product training, technical

support, capturing eedback on new product and eature

requests, and simple sales and ulllment servicing. The

culprit? A suite o convoluted technology solutions

where each persona and each process had a separate

siloed system.

A new platorm to acilitate everything rom collaboration

and activity management to design prototyping and

relationship management was created. Capabilities were

built around the roles key stakeholders played. Where

appropriate, inormation was visible across organizational

boundaries. The user empowerment solution was not a

substitute or existing design tools, CRM systems or

reporting suites. But it tapped the relevant data and

services that users needed to do their jobs, and simplied

to the essence o individual roles.



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User Empowerment

Why not? That is my mantra when our business users

are looking to adopt some new piece o technology they

believe can help them do their jobs better fipping the

burden o proo, and being open to the evolving role o IT.

Sometimes there are very good reasons why not, and inthose cases were quick to say so. These may include

security, maintainability or reliability. But these days, were

seeing a host o commercially available tools that combine

ease-o-use with deep capabilities that we could have only

dreamed about a ew years ago. So, when were asked to

conrm a new technology, I challenge our team with this

question: Why cantwe let our people do more on their

own? Especially when doing so gives us room to take on

bigger, higher-value issues.

This approach has been a positive development or our IT

organization, and or our business. But weve had to adapt

our priorities along the way. A great example is in the

inormation space. As the tools became user-riendly

enough to allow the business to play a more hands-on

role, we shited rom building reports to building a

reporting platorm to allow users to create their own

inormation views. Our charter became educating our

business users on proper usage, teaching them to be good

stewards while we moved on to dierent challenges. But

we stay close, because i were not getting value rom

those investments, we all lose. Its our job to make sure

our empowered users take advantage o the unctionality

oered by a new tool.

Randy Burdick

Executive Vice President and CIO

OceMax

My take

Along with user empowerment, o course, comes the need

or stepped-up security. The consumerization o business

technology threatens to expose our organization to

additional risks. Give everyone the keys to the cloud, or

example, and you could be asking or problems notonly in terms o data breaches and thet, but also the

unintentional sharing o condential corporate data. As the

lines separating business use rom personal use continue to

blur, the risks increase or everyone involved. An eective

security inrastructure is more important than ever.

User empowerment has also strengthened our ocus on

process. In act, this is probably the most important shit

weve made. Its easy to overlook the process implications

o new, user-riendly technology, given how quickly

adoption can happen. Its not surprising that some users

expect new technology to be a panacea or deeper issues

rooted in their processes. But simplicity should to start rom

the business process. Thats where my IT organization can

add a lot o value, making sure that our people have

specied their needs clearly rom the outset and are

planning or the process changes needed to help conrm

that new tools deliver the expected value.

This can be rustrating or business leaders, who may think

were presenting unnecessary obstacles and gumming up

the works. But as long as we take the time to explain the

thinking behind our approach, its easy to get them on

board. When that happens, they can be smarter about the

technology investments were making together, and wereable to maintain a high level o quality across our portolio.

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User Empowerment

Where do you start?Embracing user empowerment does not require a

wholesale scuttling o corporate IT. I done well, it should

be a raming orce that permeates the entire IT d

Documents

Tech Trends 2012: Elevate IT for digital business