Technology research and advisory firm Gartner Inc.’s Symposium/ITxpo 2014 at Orlando's Walt Disney World resorts turned out to be a thrilling event. Filled with bits and pieces and quotes from remarkable keynotes and sessions, it gave attendees a peek into the ever-changing digital world. While no Gartner event is complete without its sure-fire predictions, we couldn’t help ourselves but share the “Top 10 Strategic Predictions for 2015 and Beyond”.
The title for the annual list of trends for coming years present by the firm is “Digital Business is Driving ‘Big Change’’. The predictions explore the unconventional relationship between man and machine and how they impact the strategy and direction of digital business.
"For some time now, there has been an ongoing shift in the roles machines play in our everyday lives," said Daryl Plummer, vice president, Distinguished Analyst and Gartner Fellow. "Compute-based machines are now being used to create an ever expanding variety of experiences that extend human endeavors. Machines are taking on more human characteristics in order to affect a more personalized relationship with human beings and we find ourselves contemplating a near-term future of a world in which machines and humans are co-workers, and possibly even co-dependents."
Here is the summarized version of the top ten predictions by Gartner:
1. By 2018, digital business will require 50 percent less business process workers and 500 percent more key digital business jobs, compared with traditional models.
The swift advancement of social media as well as mobile technologies is one of the key factors affecting consumer behavior. These consumer behavior patterns and technologies backing them will fundamentally change human lifestyle; for instance — refrigerators that will order groceries for us, robots that will collect those groceries, delivered by drones, thus eradicating jobs for grocery clerks and delivery drivers. The coming digital business ecosystem will significantly change business processes alongside the employment demographics and necessitate for elevated abilities for consumer and suppliers across all industries.
2. By 2017, a significant disruptive digital business will be launched that was conceived by a computer algorithm.
All the way through 2015, companies with highly valued IPOs will be those involved in consolidated computerized markets having physical logistics to test immaculate physical legacy business environments.
The world economy is now ready for such digital disruption, as confirmed by worldwide marketplace organizations, for example, 1. Uber and 2. Airbnb, two companies which are drastically altering transportation and hotel industry. In the mean time, the wealth creation advantage of success in those models indicates a powerful fascination for capital investment.
3. By 2018, the total cost of ownership for business operations will be reduced by 30 percent through smart machines and industrialized services.
By 2015, more than 40 vendors with financially accessible managed services will be providing smart machines and industrialized services. Shoppers' will receive speedier, less expensive, better goods and services in a method that backs anytime, anyplace and any channel, empowering the digital business upheaval. Business processes and value chain of business operations will move from a "labor-driven and technology-enabled paradigm to a digital-driven and human-enabled model" as indicated by Gartner. Smart machines won't replace human workers as humans still need to supervise the jobs and are key to interpreting the outcomes. Therefore, smart machines won't replace employments; rather they will disrupt the gratification, incompetence and add marvelous speed to business operations. With consumers' inclination to utilize Internet and mobile services to move business competence and upgrade time management, each industry is determined to enhance the client experience by simplifying, mechanizing and making smarter’ end-to-end processes, reducing manual involvement and permitting consumers to self-serve.
4. By 2020, developed world life expectancy will increase by 0.5 years due to widespread adoption of wireless health monitoring technology.
By 2017, expenses for diabetic care will be lessened by 10 percent due to the utilization of smartphones. Wearable monitors will be largely responsible for such a dramatic change. Today, a basic wristband can accumulate data on human pulse, temperature and various ecological variables. Remote heart checking patches, sensor accessories as well as smart shirts guarantee more accuracy, choice and solace to wearers. Communication through wireless will be undeviating; information will be analogized against huge cloud-based data storehouses for sanctioned activities and through social networks for sketchy advice. Gartner predicts that data from remote monitoring gadgets will give access to doctors and medical profesisonals.
5. By year-end 2016, more than $2 billion in online shopping will be performed exclusively by mobile digital assistants.
By year-end 2015, mobile digital assistants will affect routinely processes such as "filling out names, addresses and credit card information" as indicated by Gartner in the top ten trends for 2015 report.
Fixed events, for example, grocery refill will be more common and will construct trust for these sort of assistants to tackle more. By the end of 2016, more intricate buying choices, for example, "back-to-school backpacks and chained events such as scheduling: a highly rated, date-type movie along with dinner and car pick up on an anniversary will be easily achievable" Gartner explained. Autonomous mobile assistant buying will hit 2 billion dollars every year, characterizing around 2.5 percent of mobile users that will trust digital assistants with $50 a year. Digital partners will be on a number of different platforms, yet portable will be the most available gadget for advanced assistants and will be the most sought after application by the end of 2016.
6. By 2017, U.S. customers' mobile engagement behavior will drive mobile commerce revenue in the U.S. to 50 percent of U.S. digital commerce revenue.
A reestablished enthusiasm toward mobile payment will emerge in 2015, together with a noteworthy increment in mobile commerce (due to Apple Pay and Google Wallet and more rivals).
As more and more device manufacturers and application developers enhance convenience and usefulness and attend to users' security concerns, gadgets will turn significantly into an essential tool for users. This is especially valid for the more youthful demographics. Users who grew up using the Internet as a communications, data and operations platform, and tethered to their cell phones, will insist that "service providers and retailers deliver on the expectation of connected and channel-agnostic commerce experiences" Gartner further added.
7. By 2017, 70 percent of successful digital business models will rely on deliberately unstable processes designed to shift as customer needs shift.
By year-end 2015, roughly five percent of global giants will create "supermaneuverable" processes that give them "competitive advantage".
As a consequence of such business model innovation, a few business processes should now be deliberately fragile. Those fragile processes that are intended for change and can rapidly adjust as per customers’ needs. They are essential on the grounds that they are dexterous, versatile and "supermaneuverable" as per shifts in client needs. These supermaneuverable processes exist inside the setting of bigger, steadier techniques. They are a competitive differentiator in light of the fact that they can help client communications that are capricious and "require ad hoc decision-making" to support larger, steadier procedures to proceed. They are regularly outlandish for different contenders to copy. Deliberately volatile methods will order a radical move in the ability of a company and its employees to change in a more easy way. The ability to change real quick will power the "concepts of organizational liquidity" Gartner explains. This comprehensive methodology, mixing business plans, procedures, innovation and people involved will fuel the success of digital businesses.
8. By 2017, 50 percent of consumer product investments will be redirected to customer experience innovations.
By 2015, more than a large portion of traditional consumer goods will have local digital extensions. In numerous commercial ventures, hyper-competition has dissolved traditional product and services, making client experience a new competitive battlefield. Without a doubt focusing advancements on new products as well as business models is liable to shrinking bouts of competitive advantage. Client experience innovation remains the key to lasting brand loyalty.
9. By 2017, nearly 20 percent of durable goods e-tailers will use 3D printing (3DP) to create personalized product offerings.
By 2015, more than "90 percent of durable goods e-tailers will actively seek external partnerships to support the new 'personalized' product business models," Gartner says.
Presently 3DP has already made a profound effect on facilitating startups to cut down infrastructure costs, when compared to traditional manufacturing processes. Since consumers are increasingly showing interest to be in charge of product features and their key specifications, e-tailers are more likely to create personalized products through 3DP. Companies that adopt such measures in their strategies will dominate within their sector. Such models will require a corporate culture that backs "nonconformance products, new front office ‘concierge’ business capabilities, back office IT and operational skills" Gartner reveals. Agility is the key here.
10. By 2020, retail businesses that utilize targeted messaging in combination with internal positioning systems (IPS) will see a five percent increase in sales.
By 2016, there will be a massive surge in the number of sales from retailers "focused on customer location and the length of time in store" Gartner says. Digital marketers will be more focused on mobile advertising as well as advanced analytics to benefit from the opportunities that arise with the expansion of mobile device usage. Context here plays a central role in such efforts, thereby enabling highly targeted ads based on patterns such as recent buys, purchasing habits, location and interests. Mapping is the next thing that will be taken advantage of for targeted ads.
(Source: Gartner Inc.)