The Disruptive Impact Of The Nexus of Forces

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Chief of Research@chrishoward88

The Disruptive ImpactOf The Nexus of Forces

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‘It’s the first time that a company [Burberry] is

blurring the lines between physical and digital.’

Angela Ahrendts, former CEO of Burberry, now heading Apple’s retail operations


Jeffrey ImmeltCEO, GETalking about his company's“Industrial Internet" initiative in 2012

‘The ability to marry real-time customer data with real-time performance data of our products — to me that's the holy grail in our business.’


Overview

• The Nexus forces (Information, Mobile, Cloud, Social) remain top priorities for CIOs

• The Nexus of Forces applies to people inside and outside the organization, in multiple roles

• Many emergent Nexus of Forces scenarios involve the Internet of Things

• The Nexus of Forces is the platform for the Digital Business

© 2013 Gartner, Inc. and/or its affiliates. All rights reserved.© 2013 Gartner, Inc. and/or its affiliates. All rights reserved.

#GartnerSYM

Where are we now?

Nexus of Forces 2014


Nexus of ForcesConvergence and mutual reinforcement

Driven by human behavior

Amplifies human behavior

Creates new opportunities for engagement

Engagement creates new business opportunities


2009 2010 2011 2012 20130123456789

10111213141516

CIO Technology Priorities 2009-13

Analytics and BIMobileCloudCollaborationCIO Ranking

recession

Gartner introduces "Nexus of Forces" at

Symposium 2011


2014: CIO Technology Priorities

Ranking Based on How Many CIOs Cited Each as a Top-Three New Spending Priority for 2014

Exploitthe New

Renovate the Core

15


Analog Web E-Business D-Marketing D-Business Autonomous

FocusBuild

relationships that drive business or lower cost

Extend relationships into

new markets/ geographies

Transform sales channel into a

global medium to drive efficiencies

Exploit Nexus to drive greater

efficiency

Extend potential customers from people to things

Smart, semi-autonomous things

become the primary ‘customer’

Outcomes Optimize relationships

Extend relationships

Optimize channels.

Optimize interactions

Build new business models

Maximize retention of and relationships

with things

Entities

Disruptions Emerging technologies

Internet and digital

technologies

Automationof business operations

Deeper customer relationships,

analytics

Creation of

new value and new nonhuman

customers

Smart machines and things

as customers

Technologies CRM CRMWeb

EDIMobile

BIBig DataSocial

Sensors3D printing

Smart machines

RoboticsSmarter machines

Automation

The Journey to Digital BusinessPost NexusPre NexusPre Web

Business

People

Business

People

Business

PeoplePeople

Business

People

Things

Business

People

Things

Change of Kind Change of Degree

10

Disruption


Disrupts

• Networks, transactions- Our relationship with “things”- Among Individuals, organizations

• The distinction between physical and virtual• Privacy and security• Traditional IT-controlled solution delivery

Gartner for Technical Professionals

Disruption: Networks and Transactions


Human Behavior

• They participate in value relationships

• They expect those relationships to be based on "knowing"

• One person's "OK" is another person's "Creepy"

• They are mostly irrational

Psychographics

Clickstreams

Sentiment Analysis

Text Mining

Text Mining

Location

Proximity to Friends

Buying Patterns

Preferences

Aversions

Life Events

Financial Habits

Health Data

Search Habits


Person

BusinessThings

Customer

BusinessThings

Observation + Mediation = Value

Digital Value Network





Powering the Walmart.com Search

Polaris

Text Analytics

Sentiment AnalysisClickstream

Transactions

10% to 15% increase in online shoppers

completing a purchase


Information: From Descriptive to Prescriptive

Human Input

Data DecisionPredictiveWhat will happen?

DiagnosticWhy did it happen?

DescriptiveWhat happened?

PrescriptiveWhat should I do?

Analytics

Action

Decision Automation

Decision Support


Sourcing Information Broadly

Operational Enterprise "Dark Data"

Public Commercial

Social MediaEconomic

Population

Email

Contracts

Credit

Weather

Transactions

Monitoring

Sensor

Sentiment

Network

Industry

Correlations and patterns from disparate, linked data sources yield the greatest insights and transformative

opportunities

Reports


Personal Cloud:Moving Beyond Personal Computing

PersonalPr

ofes

sion

al

Community

Family

SchoolSchedule

Tax Info.NewsSports

Standings E-gov.

ShoppingSchool

EmailRSSMemories

Music

Hobbies

FinancialInfo.

Banking

Banking

Broad-band

Cell

Wi-Fi

TV CalendarMemories

MedicalFinancialHome

Security

IM EmailPersonalRecords

Corp.Archives

Training

Pro

duct

ion

Dat

a

MeetingRecords

Work at

Home

CorpApps

Benefits

Conferencing

VoIP

LAN

Wi-Fi

Cell

FacebookTwitter

SMS

ContentServices

Comms.Devices

Your Digital Life




Quantified Self

Doctor?

Trainer?

Insurance Company?

29

Gartner for Technical Professionals

Disruption: Security and Risk Management

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

32

Dispersion

What the IoT Means for Security – Cloud and Mobile Inevitability

33

Accelerated Adoption

34

When fridges attack…

Proofpoint Uncovers Internet of Things (IoT) Cyberattack

http://www.proofpoint.com/about-us/press-releases/01162014.php




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Disruption: Physical and Virtual

35


Human Behavior

• People are mobile• They spread their

experience over a constantly shifting array of devices

• They expect context-aware delivery of "experiences"

© 2013 Gartner, Inc. and/or its affiliates. All rights reserved. 37

© 2013 Gartner, Inc. and/or its affiliates. All rights reserved. 38

39

Insert Yelp Monocle slide


Smart Components

Hey!


Hey!

Collaborative Asset Management

OEM

Engineering


$500,000

© 2013 Gartner, Inc. and/or its affiliates. All rights reserved. Collaborative Asset Management



#GartnerSYM

Disruption: Traditional IT

45



Let's do this Nexus thing!

No way! Too risky!


Let's do this Nexus thing!

The benefit outweighs the risk!

Just do it. Go around IT if necessary!

New Sources of Value Related to IT

• Digital Business

• Remote work and mobile drives technology needs

• Demand for great customer experience

• Ecosystem of players

• Business directed choice driving innovation

Technology understanding is becoming a business skill

Invent new work practices

Focus on individual and personalization

Thinking like a broker

Dynamic collaboration and participation are essential

49*Source: Gartner March 2013 “Field Research Summary: The Changing IT Career”

Seven Essential Qualities

1. Be outcome oriented — outcome must become more important

2. Participate and have a participative culture

3. Be advisors and influencers

4. Be openly experimental and enable innovation

5. Be knowledgeable, yet remain open to many perspectives

6. Encourage autonomy within a known context

7. Be adaptable and always learning

Source: Gartner March 2013 "Field Research Summary: The Changing IT Career"


Work Toward the New Hybrid Role: Hybrid IT Is an Opportunity

Liaisons with business leaders

Forges relationships

Builds and manages

private cloud

Maintains the traditional IT environment


In Summary, the Nexus of Forces

• Introduces new business opportunities• Is a platform for engagement with external and

internal parties• Increasingly incorporates the Internet of Things• Is the platform for Digital Business• Requires a shift from “IT as Builder” to “IT as

Broker”


Recommended Gartner Research

• Transform Your Business With the Nexus of ForcesChris Howard, and others (G00262353)

• Maverick* Research: Ethics Are at the Center of the Nexus of Forces Frank Buytendijk, Jay Heiser (G00256392)

• Nexus Forces Fuel the Engagement InitiativeJeffrey Mann, Matt Cain, Chris Howard (G00254938)

• Talent on the Digital Frontier: New Capabilities, Built Out Quickly, Will Dominate Digital BusinessDiane Morello (G00257633)

• Agenda Overview for Digital Business, 2014Jorge Lopez and others (G00260349)

For more information, stop by Gartner Research Zone.

http://www.gartner.com/document/2673815?ref=QuickSearch&sthkw=dark%20side

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Nexus Document Collections

• Nexus document site:http://www.gartner.com/explore/special-reports/research/2565218#foundations

• Gartner search string: http://www.gartner.com/search/research/sort?sortType=rel&sortDir=desc

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The Disruptive Impact Of The Nexus of Forces