Our research partners at The Institute for the Future recently forecasted that we’re entering the next era of human machine partnership, and that between now and 2030 humans and machines will work in closer concert with each other, transforming our lives.

We’ve worked with machines for centuries, but we’re about to enter an entirely new phase – characterized by even greater efficiency, unity and possibility than ever before. 

Emerging technologies, such as Artificial Intelligence (AI), Augmented Real

ity (AR), Virtual Reality (VR), and advances in Internet of Things (IoT) and cloud computing - made possible through exponential developments in software, analytics, and processing power - are augmenting and accelerating this direction. 

This is evident in our connected cars, homes, business and banking transactions already; even transforming how farmers manage their crops and cattle. Given this dizzying pace of progress, let’s take a look at what’s coming down the pike next.

Prediction 1: AI will do the ‘thinking tasks’ at speed 

Over the next few years, AI will change the way we spend our time acting on data, not just curating it. Businesses will harness AI to do data-driven “thinking tasks” for them, significantly reducing the time they spend scoping, debating, scenario planning and testing every new innovation. It will mercifully release bottlenecks and liberate people to make more decisions and move faster, in the knowledge that great new ideas won’t get stuck in the mire. 

Some theorists claim AI will replace jobs, but these new technologies may also create new ones, unleashing new opportunities for humans. For example, we’ll see a new type of IT professional focused on AI training and fine-tuning. These practitioners will be responsible for setting the parameters for what should and shouldn’t be classified good business outcomes, determining the rules for engagement, framing what constitutes ‘reward’ and so on. Once this is in place, the technology will be able to recommend positive commercial opportunities at lightning speed.

Prediction 2: Embedding the IQ of Things 

Starting in 2018, we’ll take gargantuan strides in embedding near-instant intelligence in IoT-enhanced cities, organizations, homes, and vehicles. With the cost of processing power decreasing and a connected node approaching $0, soon we’ll have 100 billion connected devices, and after that a trillion. The magnitude of all that data combined, processing power with the power of AI will help machines better orchestrate our physical and human resources. We’ll evolve into ‘digital conductors’ of the technology and environments surrounding us. Technology will function as an extension of ourselves. Every object will become smart and enable us to live smarter lives. 

We’re seeing this in our cars - the “ultimate mobile device” - which are being fitted out with ultrasonic sensors, technology that makes use of light beams to measure distance between vehicles and gesture recognition. In time, these innovations will make autonomous driving an everyday reality. Well before, we’ll get used to cars routinely booking themselves in for a service, informing the garage what needs to be done and scheduling their own software updates.

Prediction 3: We’ll don AR headsets

It also won’t be long until the lines between ‘real’ reality and augmented reality begin to blur. AR’s commercial viability is already evident. For instance, teams of construction workers, architects and engineers are using AR headsets to visualize new builds, coordinate efforts based on a single view of a development and train on-the-job laborers when a technician can’t be on site that day. 

Of course, VR has strong prospects too. It will undoubtedly transform the entertainment and gaming space in the near term, thanks to the immersive experiences it affords, but smart bets are on AR becoming the de facto way of maximizing human efficiency and leveraging the ‘tribal knowledge’ of an evolving workforce. 

Prediction 4: A deeper relationship with customers

Dell Technologies’ Digital Transformation Index shows that 45 percent of leaders in mid to large organizations believe they could be obsolete within 5 years and 78% see start-ups as a threat to their business. It’s never been more important to put the customer experience first.

Over the next year, with predictive analytics, machine learning (ML) and AI at the forefront, companies will better understand and serve customers at, if not before the point of need. Customer service will pivot on perfecting the blend between man and machine. So, rather than offloading customer interactions to first generation chatbots and predetermined messages, humans and automated intelligent virtual agents will work together, as one team.

Prediction 5: Bias check will become the next spell check

Over the next decade, emerging technologies such as VR, AI, will help people find and act on information without interference from emotions or external prejudice, while empowering them to exercise human judgment where appropriate.

In the short-term, we’ll see AI applied to hiring and promotion procedures to screen for conscious and unconscious bias. Meanwhile VR will increasingly be used as an interview tool to ensure opportunities are awarded on merit alone, e.g. by masking a prospective employee’s true identity with an avatar. 

By using emerging technologies to these ends, ‘bias check’ could one day become a routine sanitizer, like ‘spell check’- but with society-wide benefits.

Prediction 6: Media & Entertainment will break new ground with esports

In 2018, we’ll see increasingly vast numbers of players sitting behind screens or wearing VR headsets to battle it out in a high-definition computer-generated universe. As hundreds of millions of players and viewers tune-in, esports will go mainstream.

The esports phenomenon points to a wider trend. Namely that even quintessentially ‘human’ activities like sport have been digitalized. Technology has widened ‘sport’ to all types. You don’t need to have a certain physique or build. If you have quick haptic responses and motor skills, you can play and claim victory.

Additionally traditional sports, like cycling, have upped their game by harvesting data to identify incremental but game-changing gains. In the future every business will be a technology business, and our leisure time will become a connected experience.

Prediction 7: We’ll journey toward the “mega-cloud” 

Cloud is not a destination. It’s an IT model where orchestration, automation and intelligence are embedded deeply into IT Infrastructure. In 2018, businesses are overwhelmingly moving toward a multi-cloud approach, taking advantage of the value of all models from public to private, hosted, managed and SaaS. However, as more applications and workloads move into various clouds, the proliferation of cloud siloes will become an inevitability, thus inhibiting the organization’s ability to fully exploit data analytics and AI initiatives. This may also result in applications and data landing in the wrong cloud leading to poor outcomes. 

As a next step, we’ll see the emergence of the “mega cloud”, which will weave together multiple private and public clouds to behave as a coherent, holistic system. The mega cloud will offer a federated, intelligent view of an entire IT environment.

To make the mega cloud possible, we will need to create multi-cloud innovations in networking (to move data between clouds), storage (to place data in the right cloud), compute (to utilize the best processing and acceleration for the workloads), orchestration (to link networking, storage and compute together across clouds) and, as a new opportunity, customers will have to incorporate AI and ML to bring automation and insight to a new level from this next generation IT environment.

Prediction 8: The year to sweat the small stuff 

In this increasingly interconnected world, our reliance on third parties has never been greater. Organizations aren’t simple atomic instances; rather, they are highly interconnected systems that exist as part of something even bigger. The ripples of chaos spread farther and faster now that technology connects us in astonishing ways. Consider that one of the most substantial data breaches in history occurred because attackers used credentials to log into a third-party HVAC system.

Due to our increasingly interwoven relationship with machines, small subtle failures can lead to mega failures. Hence, next year will be a year of action for multinational corporations, further inspired by the onslaught of new regulations such as GDPR. Prioritizing the implementation of cybersecurity tools and technologies to effectively protect data and prevent threats will be a growing imperative.

Author: John Roese CTO Dell

Data is at the very core of the business models of the future – and this means wrenching change for some organizations.

We tend to think of our information systems as a foundation layer that support the “real” business of the organization – for example, by providing the information executives need to steer the business and make the right decisions.

But information is rapidly becoming much more than that: it’s turning into an essential component of the products and services we sell.

Information-augmented products

In an age of social media transparency, products “speak for themselves”– if you have a great product, your customers will tell their friends. If you have a terrible product, they’ll tell the world. Your marketing and sales teams have less room for maneuver, because prospects can easily ask existing customers if your product lives up to the promises.

And customer expectations have risen. We all now expect to be treated as VIPs, with a “luxury” experience. When we make a purchase, we expect to be recognized. We expect our suppliers to know what we’ve bought in the past. And we expect personalized product recommendations, based on our profile, the purchases of other people like us, and the overall context of what’s happening right now.

This type of customer experience doesn’t just require information systems; the information is an element of the experience itself, part of what we’re purchasing, and what differentiates products and services in the market.

New ways of selling

New technologies like 3D printing and the internet of things are allowing companies to rethink existing products.

Products can be more easily customized and personalized for every customer. Pricing can be more variable to address new customer niches. And products can be turned into services, with customers paying on a per-usage basis.

Again, information isn’t just supporting the manufacturing and sale of the product – it’s part of what makes it a “product” in the first place.

Information as a product

In many industries, the information collected by business is now more valuable than the products being sold – indeed, it’s the foundation for most of the free consumer internet. Traditional industries are now realizing that the data stored in their systems, once suitably augmented or anonymized, can be sold directly. See this article on the Digitalist magazine, The Hidden Treasure Inside Your Business, for more information about the four main information business models.

A culture change for “traditional IT”

Traditional IT systems were about efficiency, effectiveness, and integrity. These new context-based experiences and more sophisticated products use information to generate growth, innovation, and market differentiation. But these changes lead to a difficult cultural challenge inside the organization.

Today’s customer-facing business and product teams don’t just need reliable information infrastructures. They need to be able to experiment, using information to test new product options and ways of selling. This requires not only much more flexibility and agility than in the past, but also new ways of working, new forms of IT organization, and new sharing of responsibilities.

The majority of today’s CIOs grew up in an era of “IT industrialization,” with the implementation of company-wide ERP systems. But what made them successful in the past won’t necessarily help them win in the new digital era.

Gartner believes that the role of the “CIO” has already split into two distinct functions: Chief Infrastructure Officers whose job is to “keep the lights on”; and Chief Innovation Offers, who collaborate closely with the business to build the business models of the future.

IT has to help lead

Today’s business leaders know that digital is the future, but typically only have a hazy idea of the possibilities. They know technology is important, but often don’t have a concrete plan for moving forward: 90% of CEOs believe the digital economy will have a major impact on their industry. But only 25% have a plan in place, and less than 15% are funding and executing a digital transformation plan.

Business people want help from IT to explain what’s possible. Today, only 7% of executives say that IT leads their organization’s attempts to identify opportunities to innovate, 35% believe that it should. After decades of complaints from CIOs that businesses aren’t being strategic enough about technology, this is a fantastic new opportunity.

Design Thinking and prototyping

Today’s CIOs have to step up to digital innovation. The problem is that it can be very hard to understand — history is packed with examples of business leaders that just didn’t “get” the new big thing.  Instead of vague notions of “disruption,” IT can help by explaining to business people how to add information into a company’s future product experiences.

The best way to do this is through methodologies such as Design Thinking, and agile prototyping using technologies should as Build.me, a cloud platform that allows pioneers to create and test the viability of new applications with staff and customers long before any actual coding.

Conclusion

The bottom line is that digital innovation is less about the technology, and more about the transformation — but IT has an essential role to play in demonstrating what’s possible, and needs to step up to new leadership roles.

Source: timoelliot.com, November 14, 2016