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Tech Trends 2014: Inspiring Disruption 5 Edition Tech Trends 2014: Trends Tech Inspiring disruption Learn more Follow @DeloitteOnTech www.deloitte.com/us/techtrends2014 Edition 5 This publication contains general information only, and none of Deloitte Touche Tohmatsu Limited, its member firms, or its and their affiliates are, by means of this publication, rendering accounting, business, financial, investment, legal, tax, or other professional advice or services. This publication is not a substitute for such professional advice or services, nor should it be used as a basis for any decision or action that may affect your finances or your business. Before making any decision or taking any action that may affect your finances or your business, you should consult a qualified professional adviser. None of Deloitte Touche Tohmatsu Limited, its member firms, or its and their respective affiliates shall be responsible for any loss whatsoever sustained by any person who relies on this publication. About Deloitte Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee, and its network of member firms, each of which is a legally separate and independent entity. Please see www.deloitte.com/about for a detailed description of the legal structure of Deloitte Touche Tohmatsu Limited and its member firms. Please see www.deloitte.com/us/about for a detailed description of the legal structure of Deloitte LLP and its subsidiaries. Certain services may not be available to attest clients under the rules and regulations of public accounting. Copyright © 2014 Deloitte Development LLC. All rights reserved. Tech Trends 2014 Member of Deloitte Touche Tohmatsu Limited Inspiring Disruption Contents Introduction | 2 Local Introduction | 4 Disruptors CIO as venture capitalist | 12 Cognitive analytics | 24 Industrialized crowdsourcing | 36 Digital engagement | 48 Wearables | 60 Enablers Technical debt reversal | 72 Social activation | 84 Cloud orchestration | 94 In-memory revolution | 106 Real-time DevOps | 118 Exponentials | 130 Appendix | 142 Tech Trends 2014: Inspiring Disruption Introduction ELCOME to Deloitte’s fifth annual Technology Trends report. Each year, we study the ever- Wevolving technology landscape, focusing on disruptive trends that are transforming business, government, and society. Once again, we’ve selected 10 topics that have the opportunity to impact organizations across industries, geographies, and sizes over the next 18 to 24 months. The theme of this year’s report is Inspiring Disruption. In it, we discuss 10 trends that exemplify the unprecedented potential for emerging technologies to reshape how work gets done, how businesses grow, and how markets and industries evolve. These disruptive technologies challenge CIOs to anticipate their potential organizational impacts. And while today’s demands are by no means trivial, the trends we describe offer CIOs the opportunity to shape tomorrow—to inspire others, to create value, and to transform “business as usual.” The list of trends is developed using an ongoing process of primary and secondary research that involves: • Feedback from client executives on current and future priorities • Perspectives from industry and academic luminaries • Research by alliance partners, industry analysts, and competitor positioning • Crowdsourced ideas and examples from our global network of practitioners As in prior years, we’ve organized the trends into two categories. Disruptors are areas that can create sustainable positive disruption in IT capabilities, business operations, and sometimes even business models. Enablers are technologies in which many CIOs have already invested time and effort, but that warrant another look because of new developments, new capabilities, or new potential use cases. Each trend is presented with multiple examples of adoption to show the trend at work. This year, we’ve added a longer-form Lesson from the front lines to each chapter to offer a more detailed look at an early use case. Also, each chapter includes a personal point of view in the My take section. Information technology continues to be dominated by five forces: analytics, mobile, social, cloud, and cyber. Their continuing impact is highlighted in chapters dedicated to wearables, cloud orchestration, social activation, and cognitive analytics. Cyber is a recurring thread throughout the report: more important than ever, but embedded into thinking about how to be secure, vigilant, and resilient in approaching disruptive technologies. 2 Introduction For the first time, we’ve added a section dedicated to what our contributing authors at Singularity University refer to as “exponential” technologies. We highlight five innovative technologies that may take longer than our standard 24-month time horizon for businesses to harness them—but whose eventual impact may be profound. Examples include artificial intelligence, robotics, and additive manufacturing (3-D printing). The research, experimentation, and invention behind these “exponentials” are the building blocks for many of our technology trends. Our goal is to provide a high-level introduction to each exponential—a snapshot of what it is, where it comes from, and where it’s going. Each of the 2014 trends is relevant today. Each has significant momentum and potential to make a business impact. And each warrants timely consideration—even if the strategy is to wait and see. But whatever you do, don’t be caught unaware—or unprepared. Use these forces to inspire, to transform. And to disrupt. We welcome your comments, questions, and feedback. And a sincere “thank you” to the many executives and organizations that have helped provide input for Tech Trends 2014; your time and insights were invaluable. We look forward to your continued innovation, impact, and inspiration. Bill Briggs Chief Technology Officer Deloitte Consulting LLP [email protected] Twitter: @wdbthree 3 Tech Trends 2014: Inspiring Disruption Local Introduction ELOITTE’S annual Technology Trends Report examines disruptive trends that are transform- Ding the market. The ten chosen trends will impact German industries over the next 18 to 24 months. In the following introductory pages we discuss the cross-linkage between the trends and our local industry insights. • German retail banks – will raise digital engagement of offerings and evolve data analysis capa- bilities to remain profitable • German investment firms – will look to cloud services and evolving data analysis capabilities to increase profitability and to respond to new regulatory requirements • German insurance firms – will move from sentiment measuring to changing customer percep- tions actively by the use of creative social campaigns • German technology, media and telecommunications companies – will refine their digital engagement as a strategy for strengthening their relationships with customers • German manufacturing firms – will use the power of the global crowd with specialized skills to be sourced dynamically from anyone and anywhere The Tech Trends Report will facilitate your trend research and give a boost to innovation. These trends deserve another look due to specific factors in the technology or business environment. Forward-thinking organizations should consider developing an explicit strategy in each area – even if that strategy is to wait and see. Thank you for your interest in this year’s report. Leverage this Tech Trends Report by finding your relevant trends and impacts for 2014. We welcome your feedback and inspiration. Peter Ratzer Partner, Technology Leader Consulting Germany Peter Ratzer – Partner | Technology Practice Leader Deloitte Consulting GmbH Rosenheimer Platz 4, 81669 München Tel: +49 (0)89 29036 7970 | Fax: +49 (0)89 29036 117970 | Mobil: +49 (0)171 319 0212 [email protected] Timm Riesenberg – Manager | Technology Advisory Deloitte Consulting GmbH Kurfürstendamm 23, 10719 Berlin Tel: +49 (0)30 25468 334 | Fax: +49 (0)30 25468 211 | Mobil: +49 (0)151 58000 235 [email protected] Andreas Klein – Senior Manager | Technology Advisory Deloitte Consulting GmbH Schwannstr. 6, 40476 Düsseldorf Tel: +49 (0)211 8772 3102 | Mobil: +49 (0)173 2876392 [email protected] 4 Introduction Retail banks – will raise digital engagement of offerings and evolve data analysis capabilities to remain profitable Current market situation ERMAN tech trends in the retail banking industry are about re-shaping IT towards increasing Gbusiness growth and gaining new customers through the use of new technologies. Cost-cutting trends within outsourcing activities remain a significant tendency. Challenges • Cost pressure/strong competition: low interest rates continue to put pressure on bank margins and the highly competitive environment keeps financial product’s margins low • Regulation: higher bank capital requirements based on the standards of the Basel Committee on Banking Supervision (Basel III) had to be implemented in 2013 • Growing uncertainty: financial institutions need to find a way to manage risks reliably and stay profitable Industry Trend predictions • Customers want to interact with financial institutions more and more. This leads to a digi- tal engagement of offerings and support services. Digital offerings need to be developed or extended for customers taking social media and mobility (e.g. smart-phone banking, app mar- ketplaces) into account • Many financial institutions struggle with big Legacy systems that need to be consolidated and aligned with cloud services. Cloud orchestration will increasingly be a key challenge
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