Three Emerging Trends Drive Digital Business


How can IT leaders plan for this rapidly evolving and disruptive digital business environment that’s estimated to reach $1.9 trillion in value by 2020? By assessing three interrelated emerging trends:

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Trend No. 1 — Democratization of Technology
Here, technology starts to be on par with us. Everything is connected, everything has a voice, everything has a say. Democratization is about access, not about the types of people using the technology. Consider how smart things will begin to control our behavior such as in how a smart thermostat dictates how much energy we consume and, thus, the bills we pay. For IT leaders, it’s important to re-examine your business model to use smart “things” and look for platforms to exploit data from “things.”

Trend No. 2 —Dematerialization
The most profound technologies are those that disappear. They simply weave their way into the fabric of what we do. Eventually, every product and service will go digital, creating vast quantities of data that may be more valuable than the products themselves. Think of smart pills that monitor medication consumption and a soccer ball that measures and advises on performance. Essentially, we may become defined by the data that exists about us. Organizations must straddle the tension of all the information available from smart things by balancing their desire to collect and analyze it with the risk of its loss or misuse.

Trend No. 3 — Disintermediation
Disruption of existing business models and industries will occur when the digital and physical worlds merge. Disintermediation will occur in experience, such as when smart machines replace trained people; in knowledge, when smart machines support cancer diagnoses or customer service, etc.; and in the value chain, when it’s possible for customers to go directly to the source. What’s important to remember is that disintermediation will be more profound in the actual business models than the technologies themselves. IT leaders should track the use of smart machines by both existing and potential customers to gain knowledge of opportunities for disintermediation. After all, your next competitor may likely arise from outside your industry.

Source : Forbes

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