Worldwide IT spending is forecast to |
increase by more than 80 percent by |
surpass $ 3.6 trillion in 2016 , a 1.5 |
2020 . 125,000 large organizations are |
percent increase from 2015 . The IT |
launching digital business initiatives now . |
industry is being driven by digital |
Bimodal Business |
business , and an environment driven by a |
For digital business to succeed , |
connected world . Spending on Internet |
companies are creating innovation units . |
of Things ( IoT ) hardware will exceed $ 2.5 |
New digital initiatives are running |
million every minute in 2016 . |
alongside their traditional analog |
Interconnections , relationships , and |
businesses . The business itself is |
algorithms are defining the future of |
bimodal . Organizations are creating |
business . In five years , 1 million new |
separate business units , focusing on |
devices will come online every hour . |
digital , separate from their traditional |
These interconnections are creating |
businesses ( Mode 1 ). They are trying new |
billions of new relationships . These |
ways of reaching the customer , of |
relationships are not driven solely by |
running operations , of driving diverse |
data , but algorithms . Data is inherently |
innovation . They are acquiring and |
dumb . It doesn ’ t actually do anything |
investing in digital technology |
unless you know how to use it ; how to |
companies , not waiting on existing |
act with it . Algorithms are where the real |
suppliers to build capabilities because |
value lies . Algorithms define action . |
they have to start in a different place . |
Dynamic algorithms are the core of new |
Traditional organizations move too slowly |
customer interactions . |
when they build digital on old Mode 1 |
Amazon ’ s recommendation algorithm |
platforms . The solution is to create a type |
that keeps customers engaged and |
of bimodal organization , introducing a |
buying ; Netflix ’ s dynamic algorithm – |
new Mode 2 platform , with a different |
built through crowd sourcing – keeps |
emphasis . The Mode 2 platform uses |
people watching ; and the Waze |
more cloud than in-house infrastructure |
algorithm directs thousands of |
and applications . |
independent cars on the road . |
The new platform is less about data |
The algorithmic economy will power the |
gathering , and more about intelligent |
next great leap in machine-to-machine |
algorithms to act on the data . Platforms |
evolution in the Internet of Things . |
matter because business as a whole has |
Products and services will be defined by |
gone bimodal . You need IT that supports |
the sophistication of their algorithms and |
a bimodal business . Over a third of CIOs |
services . Organizations will be valued , |
have gone bimodal just within IT , creating |
not just on their big data , but the |
innovation units , running at Mode 2 to |
algorithms that turn that data into |
break out of the traditional , slow , but |
actions , and ultimately impact |
stable approach , which is Mode 1 . |
customers . |
Security and Risk |
Digital Business |
Today , the Risk and Security officer is |
Digital business is when new businesses |
mostly concerned with old technology |
designed with both the physical and |
risks . They ’ ve become obsessed with |
digital world are brought together . As |
external hacks , chasing the impossible |
analog revenue flatten , and decline for |
goal of perfect protection . However , 65 |
many industries , businesses are shifting |
percent of CEOs say their risk |
to digital revenue from digital business . |
management approach is falling behind . |
Global digital commerce is now over $ 1 |
Organizations know this , and they ’ ve |
trillion , annually . Leading CEOs have told |
slowly devoted more resources to |
Gartner that their digital revenue will |
security , as safety and quality issues |