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What challenges face IT leaders in 2020?

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With 2020 underway, digital transformation is still very much a focus for business leaders — but what about the processes being used to hit those targets? According to Stephanie Overby at The Enterprise Project, DX preparation is ongoing, but full culture change is on the horizon for 2020. 

Digital is certainly still a priority with respect to funding, but a recent Gartner report shows that two-thirds of companies not only fail to deliver on their promises but also reveal “enterprise weaknesses, causing organizations to see a gap between expectations and results.”

So what’s holding companies back? For CIO.com, journalist Paul Heltzel outlined the top nine challenges that IT leaders will face in 2020:

The gig economy

It’s hardly a secret that both the gig economy and telecommuting are exploding. With that comes the issue of data and IP security. While the advantages of distributed teams include flexibility and quick-pivoting, the aforementioned Gartner report warns that “A growing remote workforce, in both a work-from-home and co-workspace model will unintentionally expose the organization to vulnerabilities in data privacy and the security of confidential information.” Another gig economy concern? Finding the right talent.

Data privacy

The specific requirements of the GDPR and the California Consumer Privacy Act (CCPA) need to be addressed by various segments within organizations, at the risk of stiff penalties. Innovative vendors will continue working on unique solutions and features to meet these needs. 

The ROI of new technology

Advanced technologies like AI and automation need to “weigh the benefits of innovation with provable benefits to the business rather than simply adopting trending technology,” explains Mahi Inampudi, CTO and CPO at Envoy Global. “It’s about finding the right business case.”

Security

According to Jake Olcott, vice president of security ratings for BitSight, “Zero-day vulnerabilities receive the most attention from the media, but in 2020, hackers won’t bother with these highly publicized attacks.” Instead, simple strategies will be at work, such as gaining access to a network through a vendor. 

Another concern is the rise on ransomware, with some experts suggesting organizations will need to create a new role entirely, dedicated to combating this new cybersecurity threat.    

Risk management (and expectations)

“Businesses and customers now expect software and solutions to have rapid releases that adapt over time, similar to consumer technology,” explains Matt Mead, CTO of SPR. “CIOs need to manage all IT projects in a way that mitigates risk. Start by making sure projects are using a modern agile approach and place all high-risk activities early in a project’s life cycle.”

Skills gap

According to John Ferron, CEO at Resolve Systems, the skills gap in IT will cause organizations to look to automation for solutions. “As we look to 2020, IT teams should expect to see increasing focus on intelligent automation and AIOps to help them truly do more with less by automating repetitive tasks and processes and enabling each IT pro to manage increasingly more infrastructure on a per-person basis.” 

Upskilling

Technologies evolve quickly, and as a result, developing new skills can be a challenge. A culture of learning and development can help improve retention.  

“Cloud whiplash”

“As more and more organizations begin to adopt the hybrid cloud, we’ll eventually see a trend of cloud repatriation,” Adrian Moir, lead technology evangelist at Quest Software says, “which is what happens when companies don’t take the time to invest properly in migrating to the cloud. The best solution? Companies should analyze the data and workloads before moving to the cloud, to determine costs and potential service impacts involved, explains Moir. 

Culture change

More important than a reliance on technology, with respect to digital transformation? A change of mindset within the organization. “In the coming year, business leaders will need to understand that the digital transformation doesn’t end but instead becomes part of how business leaders solve challenges,” says Geoff Webb, vice president of strategy at software company PROS

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The importance of data access for digital initiatives

A new report from MuleSoft found that just 37% of organizations have the skills and technology to keep up with digital projects.

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In a global survey of over 1,700 line of business employees in organizations with at least 250 employees, MuleSoft found that just 37% of organizations have the skills and technology to keep up with digital projects.

The resulting report — The State of Business and IT Innovation — reveals four key ideas that IT leaders need to know in order to drive digital innovation forward.

These four key findings are:

  • Collaboration is key 
    • 68% of respondents believe IT and LoB users should jointly drive digital innovation.
  • Keep up the pace 
    • 51% expressed frustration with the speed at which IT can deliver projects.
  • Integration challenge
    • 37% cite security and compliance as the biggest challenge to delivering new digital services, followed by integration (i.e. connecting systems, data, and apps) at 37%.
  • Data access
    • 80% say that in order to deliver on project goals faster, employees need easy access to data and IT capabilities.  

“This research shows data is one of the most critical assets that businesses need to move fast and thrive into the future,” said MuleSoft CEO Brent Hayward

“Organizations need to empower every employee to unlock and integrate data — no matter where it resides — to deliver critical, time-sensitive projects and innovation at scale, while making products and services more connected than ever.”

Want to read through the whole report? Download it from MuleSoft

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Where is the financial value in AI? Employing multiple human-machine learning approaches, say experts

According to a new study, only 10% of organizations are achieving significant financial benefits with AI.

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AI is everywhere these days — especially as we work to fight the spread of COVID-19

Even in the “before times,” AI was a hot topic that always found itself in the center of most digital transformation conversations. A new study from MIT Sloan Management Review, BCG GAMMA, and BCG Henderson Institute, however, prompts a crucial question:

Are You Making the Most of Your Relationship with AI?

Finding value

Despite the proliferation of the technology and increased investment, according to the report, just 10% of organizations are achieving significant financial benefits with AI. The secret ingredient in these success stories? “Multiple types of interaction and feedback between humans and AI,” which translated into a six-times better chance of amplifying the organization’s success with AI.

“The single most critical driver of value from AI is not algorithms, nor technology — it is the human in the equation,” affirms report co-author Shervin Khodabandeh.

 

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From a survey of over 3,000 managers from 29 industries based in 112 countries — plus in-depth interviews with experts — the report outlined three investments organizations can make to maximize value:

  • The likelihood of achieving benefits increases by 19% with investment in AI infrastructure, talent, and strategy.
  • Scalability. When organizations think beyond automation as a use case, the likelihood of financial benefit increases by 18%.
  • “Achieving organizational learning with AI (drawing on multiple interaction modes between humans and machines) and building feedback loops between human and AI increases that likelihood by another 34%.”

According to report co-author Sam Ransbotham, at the core of successfully creating value from AI is continuous learning between human and machine:

“Isolated AI applications can be powerful. But we find that organizations leading with AI haven’t changed processes to use AI. Instead, they’ve learned with AI how to change processes. The key isn’t teaching the machines. Or even learning from the machines. The key is learning with the machines — systematically and continuously.” 

Continued growth

While just 1 in 10 organizations finds financial benefits with AI, 70% of respondents understand how it can generate value — up from 57% in 2017.

Additionally, 59% of respondents have an AI strategy, compared to 39% in 2017, the survey found. Finally, 57% of respondents say their organizations are “piloting or deploying” AI — not a huge increase from 2017 (46%). 

One of the biggest takeaways? According to co-author David Kiron, “companies need to calibrate their investments in technology, people, and learning processes.”

“Financial investments in technology and people are important, but investing social capital in learning is critical to creating significant value with AI.”

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Bringing DX to the food supply chain in a pandemic

In a new paper, supply chain stakeholders share how COVID-19 has affected the transformation of the sector.

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There’s little doubt that COVID-19 had a profound effect on the food supply chain.

As one example, just think back to roughly March of this year, when virus transmission was rapidly picking up speed. Remember the reports of food and beverage companies only producing their most popular or essential products? Or how it would take slightly longer than usual to restock certain products? What about the rush to integrate — or quickly improve the efficiency of — digital and e-commerce. 

Panning out a bit, think about food safety and quality professionals. The need to stay safe — and in many cases, stay at home — meant performing the very hands-on job of monitoring, auditing, inspecting at a distance, i.e. digitally. 

When the food supply chain was hit by storages, delays, breakdowns, and lockdowns, the end result was — like in so many sectors — a rapid digital transformation.

As The Food Safety Market — an SME-powered industrial data platform dedicated to boosting the competitiveness of European food certification — elaborates in a new discussion paper, “technology has played an important role in enabling business continuity in the new reality.”

The paper — Digital Transformation of Food Quality & Safety: How COVID-19 accelerates the adoption of digital technologies across the food supply chain — features industry experts from companies like Nestlé, Ferrero, PepsiCo, McCormick & Company, and more discussing the effects of the pandemic on the supply chain.

A few highlights from the paper:

  • John Carter, Area Europe Quality Director for Ferrero put the issue of food access into perspective at the start of his interview:

“The production of food defines our world. The effects of agriculture on our daily lives are so omnipresent that they can be easy to overlook; landscapes and societies are profoundly influenced by the need to feed our growing population. But much has been taken for granted. Only occasionally are we forced to consider: ‘where does our food come from?'”

  • Ellen de Brabander, Senior Vice President of R&D for PepsiCo provided insight on the cost benefits of digital transformation:

“The need for customization is a big driver for accelerating digital transformation and moving away from a ‘one size fits all’ approach. This means that the cost to develop and produce a product must be lower and digital technologies provide a clear opportunity here.” 

  • Clare Menezes, Director of Global Food Integrity for McCormick & Company brought up one area where digital tools need to go:

“There aren’t any areas where digital tools “fail”, but there is a need for tools that ‘prove out’ predictions around where the next integrity event will play out and how it could lead to quality or food safety failure. These tools are an obvious candidate for AI given the number of PESTLE factors that might come into play.” 

Want to read all of the interviews? Check out the paper here.

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