Boundary
Between Operational and Information Technologies Becoming
Increasingly Blurred
Dubai,
31 August 2014 — CIOs need to decide how they will position their
IT organization in relation to emerging digital business
technologies, such as the Internet of Things, 3D printing, wearable
technology and robotics, according to technology research and
advisory firm Gartner, Inc.
“The
IT organization is used to owning and supporting "back office"
and infrastructure technologies. Digital business technologies
support the "front office" and operations and may be
emerging technologies that are not commonly part of the IT agenda,”
said Hung LeHong, vice president and Gartner Fellow.” As a result,
some CIOs will take a supportive role in relation to digital
technologies, while operations and other business departments take
the lead”.
However,
some CIOs will take a leadership role, expanding its skill sets and
business knowledge and extending the IT organization's role from one
that is IT-centric to one that fully supports a digital business.
“Regardless
of the eventual stance, we believe CIOs should have an opinion, and
should participate in innovating and in testing the business cases
for these technologies in the early stages,” said Mr. LeHong.
“Many
companies are looking to digital business technologies as their next
source of competitive advantage. There is too much at stake — in
both business value and technology investment — for CIOs to stay in
the margins.”
Gartner
has identified six emerging areas that will potentially be adopted by
digital businesses that CIOs need to consider.
The
Internet of Things (IoT)
For
many enterprises, most endpoints on a corporate network will be
things (for example, machines and building sensors), and not PCs or
mobile devices. From a business value perspective, the IoT is poised
to deliver major productivity improvements and new revenue streams
(combined, Gartner forecasts $9 trillion by 2020).
According
to Gartner, the IoT will create political tension between operations,
product development and IT. Consumer-centered IoT (such as the
connected home) has few legacy deployments and therefore, CIOs can
get in on the ground floor, influencing outcomes and contributing to
the technology selections. Industrial-centered IoT also has many
opportunities, but CIOs will need to approach these with a lighter
hand, because there is likely to be a pre-existing body of technology
invested over many years, or even decades, by engineering and
operations groups. CIOs will need to navigate these political
challenges carefully and plan for the resources and skills they will
need to span operational and technology projects.
3D
Printing
According
to Gartner, 3D printing has formidable, transformational potential
that CIOs should not underestimate. At the least, 3D printing will
remain a niche market in manufacturing and of consumer hobbyists. At
its most transformational potential, 3D printing can affect global
trade. For example, 3D printing products can eliminate the need to
import and disintermediate any part of the supply chain.
CIOs
need to have a position on how transformational (or not) 3D printing
will be in their industry and enterprise and related issues like
intellectual property rights.
Human
augmentation and wearable technology
Technology
can be used to augment humans. This can range from increasingly
present wearable technologies to emerging brain-interface and
implanted technologies. Wearable technology can improve employee
effectiveness, safety and health. However, bring-your-own-wearable
issues will require clear policies. CIOs need to consider human,
legal, social and ethical issues — which will vary greatly across
geographies and demographic groups.
Robotics
and autonomous machines
Robotics
and autonomous machines are essentially the convergence of computers,
mechanical systems and electronics (for example, cameras and
sensors). This convergence may force robots and autonomous machines
(including vehicles) to directly or indirectly appear on CIOs'
agendas.
Newer-generation
robots change the cost equation, with a purchase cost approximately
equivalent to the annual earnings of a minimum wage employee.
However, when evaluating the business case for robots and autonomous
machines, CIOs should look well beyond labor savings. Other benefits
may include less machine wear, shorter lead times, greater safety and
less downtime.
Cognitive
machines
Cognitive
machines are characterized by their ability to handle decision-making
tasks that often require a level of judgment only humans were thought
to be able to handle (for example, writing news articles, acting as
personal assistants or interacting with customers like a customer
service representative).
CIOs
should look for repetitive use cases and think about using these
technologies in a way that complement, rather than replace, human
employees, for example, as an aid to help doctors diagnose and
discover/confirm treatment plans. Using cognitive machines has
significant impact on an enterprise's brand and perception in the
industry, so the decision to use cognitive machines becomes a
question for the board and CEO — with advice from CIOs and other
senior executives.
Cybersecurity
Although
not a technology, no discussion with CIOs about digital business
technologies can be complete without addressing cybersecurity needs.
Digital business technologies are already found throughout operations
in many enterprises. Security responsibilities for those technologies
are not generally found in IT security today. However, that is
changing. Digital business technologies will be used in physical
security infrastructure in the same way it will be used in IT
security infrastructure. This will drive deeper collaboration by CIO
security staff with physical security personnel, and deeper
integration between IT and physical security infrastructure and
services.
According
to Gartner, CIOs need to identify how and when these technologies
will be relevant in their industry, and hire or identify individuals
with the new skill sets associated with digital business
technologies.
“The
extent to which CIOs will ‘own’, operate and support digital
business technologies is undefined, so the time is right to evaluate
and pioneer new approaches,” said Mr. LeHong.
More
detailed analysis is available in the report "How CIOs Need to
Think About Digital Business Technologies”. The report is available
on Gartner's website at http://www.gartner.com/doc/2739917.
About Gartner
Gartner, Inc. (NYSE: IT) is the
world's leading information technology research and advisory company.
We deliver the technology-related insight necessary for our clients
to make the right decisions, every day. From CIOs and senior IT
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or visit www.gartner.com.
