May 28, 2014
7 Predictions for Enterprise in 2014 (Led by Cloud, Social, Mobile, Big Data and Internet Of Things Adoption)
The following post is by Pluto7.com predictive analytics company, with contributions from its founder, advisors and its clients ranging from World’s largest networking equipment company, World Largest Coffee company, leading SaaS company and one of the world’s top IT Services company bringing the diversity of perspective.
The dust is finally settling after the New Year celebrations and returning back to work, with 2014 is turning out to be quite promising and exciting for all of us to make these predictions. Contributors of these predictions are highlight respected in their organization, in the market and are considered thought leaders. We plan to track our prediction thought out the year and share our assessment at the end of the year to see how we faired.
1. “Check out this App” – Cloud based Enterprise application on subscription will rapidly expand its presence in all size companies, just like how smartphone apps got into our phones few years back.
Remember the excitement we all saw when finding cool apps on smartphones and how we shared it with our friends. Some of the apps really made our lives easy while costing minimal amount. Expect similar trend in Enterprise applications going on cloud. With subscription model rapidly adoption, cost of infrastructure lowering, time to market improving for app development a flood of Cloud based enterprise solutions will hit the market in 2014 making us rethink how we saw enterprise applications. Time of large dollar and crazily priced on premise software will slowly change.
2. “Big Data Real or Hype” – Hear lesser debates on Big Data on Cloud adoption and hear more on Use Cases, Outcomes, Value demonstration and ROI
While last year was all about experimentation with Big Data applications and many failed, with some hard learnings, expect the evolution to the next levels. We saw one toy manufacturing company bring it toy to the top 10 most wanted Christmas through such experimentation. Business teams will want to see how they can achieve real value from all the data being collected.Enterprises will apply the learnings to and invest in potential areas where the returns are more cleared. Business and IT will get smarter in ROI determination with these technologies as they continue to learn with the market. Most enterprise management agrees that these newer technologies adoption to improve business is not an option.
3. “Top Picks for You” – Recommendation features are not only for Netfix and Amazon!!!!!!! Most of us land up seeing a recommendation from amazon, Netflix or similar information in our purchases. Now the similar and better recommendation engines with predictive analytics technologies are available for all kinds of enterprises with the expansion of Big Data, Social, Mobile and Cloud offerings helping Enterprises drive upsell/cross sell. Nothing stops a door manufacturer to recommend to its customers to buy double panned windows when they are on their website. These predictive analytics or recommendation engine will get lot cheaper and easier to deploy in 2014.
4. “Like” – Supply Chain, Sales and Finance collaborationto drivebetter Customer Experiencebeyond Marketing using Big Data and Social Analytics data.
Facebook, Twitter and other social media led the mass adoption leading to retail business shakeout, political changes and dramatically improved human networking. Now similar large scale influence of innovation in Big Data, Cloud enabled on Mobile devices will be seen in 2014 within the Enterprise boundaries and expanding into partner and customer networks. Customer, partner feedback on product and services will flow into your supply chain, marketing, product engineering and finance. Product defects found in your supply chain will preempt defective products shipped to customers saving money and many such examples. That leads us to the next prediction.
5. “Future” – Predictive Analytics ( Recommendation based ) approach will gain more traction in day to day analysis in various enterprise functions
In year 2000 a large networking company shipment report costs $1M+, 6 months to build, 8 hours to execute at company level. This led to improvements in people utilization and process changes resulting in on time shipments dramatically over 5 years. In 2014, the same can be achieved with less than $200K, 1 month to build and 1 minute to execute showing ROI within 1 year additional you will get the features of predictive analytics ( statistically modeling ) capabilities with recommendation algorithms at fairly low incremental costs. Humans will spend less time generating the report and scanning for exceptions and more time analyzing recommendations, what-ifs, exceptions and anomalies. More importantly in 2000 these kinds of reporting was IT led, and in 2014 it will be more business led.
6. “Data Everywhere” – Internet of Things (IoT) momentum will bring the People, Process aspects into lime light aligning with Machines, Mobile, Social.
From our perspective IoT is a natural formation of a framework to bring the people, process, machine, data and social together attempting to simplify the Tsunami of innovations and progressive technologies together. From 2014 heading towards 2020, the explosion in “things” will generate a rich wave of new sources of data with varying formats for analytics. Enterprises will continue to struggle to keep up parallelly; innovating with the massive information coming from the mobile work force. From phones, to cars, to refrigerator to smart meters to medical sensors, everything will talk to everything if there is an incremental value to humans with the corresponding data analyzed. Business decisions will be accelerated in organizations that have a better adoption plan for IoT across their ecosystem.
7. “Innovative Minds” – Everything stated above is created by human minds. There will be a continued shortage of brains in US and some areas globally.
Call it Data Scientists, Developers, Programmers, Analysts or any other roles you can think of which brings newer insights into business improvements through data and process re-engineering, there will an increasing shortage of labor seen in 2014 across US and part of the globe. For an example, take Silicon Valley in California. The last seen massive labor growth was in 2000. With 14 years gaps, with rapid innovation, enterprises now ready to spend, US economy recovering massively after 2007 bubble and Investors itching to invest in smart ideas, the labor costs for smart human minds will go up. The US government in addition has tightened the immigration laws further supporting the demand increase. Get ready to pay more to your high performing existing employees or new hires.
About the Author
Pluto7.com (in business since 2005), a Supply Chain and Financial Planning Firm that helps companies to institutionalize data-driven decision making and harness Big Data using Predictive and Social Analytics on cloud and premise