Digital business applies unprecedented combinations of new technologies to generate revenue and value, so it’s imperative that CIOs step up and lead in the digital world, according to Gartner, Inc. The digital world reshapes industries, reinvents business processes and models, and creates business moments.
Gartner analysts examined the future of the digital world during the opening keynote today at Gartner Symposium/ITxpo, which is taking place here through Thursday. They said that in the digital future, the Internet of Things will become as active as humans and systems are on the Internet today.
“In the digital future, a human can talk to a ‘thing’ such as requesting a driverless taxi, just as easily as a ‘thing’ such as a building, can contact a human maintenance worker because the building predicts that a surge in foot traffic means the garbage cans must be emptied soon,” said Hung LeHong, research vice president and Gartner Fellow.
Re-Invention of Industries
The Internet of Everything will re-invent industries at three levels: business process, business model, and business moment.
“Digital technology is improving our products, services and processes, our customer and constituent experiences, and the way we work in our enterprises and within our partner,” Mr. LeHong said. “We do what we normally do, but digitalization allows us to do it better or develop better products.”
As companies digitize products and process, completely new ways of doing business in industries emerge. Gartner analysts expect more transformational changes as digital re-invents industries on the second level-the business model level.
Mr. LeHong referenced Square, Bitcoin and Kickstarter as examples of companies that have used digital to reframe the way old financial institutions and venture capitalists work. He also mentioned that Nike is playing on the edge of the healthcare industry with their connected sporting clothes and gear.
The third level of digital re-invention is created by the need to compete with unprecedented business velocity and agility. Gartner calls this the “business moments.” They are transient opportunities exploited dynamically.