25
Info-Tech Research Group 1 Info-Tech Research Group 1 Info-Tech Research Group, Inc. is a global leader in providing IT research and advice. Info-Tech’s products and services combine actionable insight and relevant advice with ready-to-use tools and templates that cover the full spectrum of IT concerns. © 1997-2018 Info-Tech Research Group Inc. Applications Trends Report Explore. Adopt. Optimize. 2018

Applications Trends Report - Tandem CIO...• Driving content recommendations for internal employees. • Improving supply chain operations (i.e. EOQ analysis). AI has come to the

  • Upload
    others

  • View
    3

  • Download
    0

Embed Size (px)

Citation preview

Page 1: Applications Trends Report - Tandem CIO...• Driving content recommendations for internal employees. • Improving supply chain operations (i.e. EOQ analysis). AI has come to the

Info-Tech Research Group 1Info-Tech Research Group 1

Info-Tech Research Group, Inc. is a global leader in providing IT research and advice.Info-Tech’s products and services combine actionable insight and relevant advice with

ready-to-use tools and templates that cover the full spectrum of IT concerns.© 1997-2018 Info-Tech Research Group Inc.

Applications Trends ReportExplore. Adopt. Optimize.2018

Page 2: Applications Trends Report - Tandem CIO...• Driving content recommendations for internal employees. • Improving supply chain operations (i.e. EOQ analysis). AI has come to the

Info-Tech Research Group 2Info-Tech Research Group 2

Trends in the applications space are quickly evolving due to the strategic impetus to use digital technologies

As IT trends find tangible and commercial purpose in the market, in the form of a killer application or a new practice, it is critical for IT executives to evaluate the implications of change on industry and business strategy.

IT executives need to avoid running a business that overlooks innovation and falls behind, and they need to recognize trends and develop an action plan that will generate business value for your stakeholders.

Info-Tech’s Applications Trend Report explores six trending technologies or practices in the applications space that are poised to gain mainstream momentum in the short term. For each identified trend, this report addresses the following questions:

• What is the trend?

• Why is it trending?

• What is in it for me?

• How should I take action?

Page 3: Applications Trends Report - Tandem CIO...• Driving content recommendations for internal employees. • Improving supply chain operations (i.e. EOQ analysis). AI has come to the

Info-Tech Research Group 3Info-Tech Research Group 3

We live in an age of technology disruption, where early adopters often gain the upper hand

Figure 1. Applications Maturity Journey

Source: IDC FutureScapes

66% of CEOs from Global 2000 companies see

digital transformation at the center of their corporate strategies by the end of 2017.

This report addresses trending applications technologies and practices.

While many more trends will likely disrupt industries within the next three to five years, those that we selected have already found one or more early market applications and are expected to move closer to mainstream adoption in 2018.

This is represented by the red shaded area in Figure 1.

Idea

Hypothesis

Early Commercial Products

Killer Application

Early Success Stories

Standard Practice

Technology

Practice

DISCOVERY

EARLY

ADOPTION

(Selected Trends)

MAINSTREAM

ADOPTION

Page 4: Applications Trends Report - Tandem CIO...• Driving content recommendations for internal employees. • Improving supply chain operations (i.e. EOQ analysis). AI has come to the

Info-Tech Research Group 4Info-Tech Research Group 4

INNOVATOR

BUSINESS PARTNER

MANAGER OF IT

Offer competitive products & services

Improve customer experience

Comply with external regulation

Make data-driven decisions

Manage people

Respond to change with agility

Manage Risk

Ensure service continuity

Improve operational efficiency

4.0 6.0 8.0 10.0 12.0 14.0

8.0

12.4

8.1

10.1

5.3

9.0

9.7

13.1

13.3

Figure 2. IT Executive Business Priorities

Average allocated points

bu

sin

es

s g

oa

lsIT executives now realize that they need to assume three key roles…

Member data from Info-Tech’s CEO-CIO Alignment Diagnostic shows that IT executives have a variety of competing priorities.

N=152 IT executives

For more information on this diagnostic program, please follow the hyperlink below:

Info-Tech’s CEO-CIO Alignment Program Diagnostic

This data is drawn from Info-Tech members in response to Info-Tech’s CEO-CIO Alignment Program surveys conducted in 2016. IT executives were asked: “How important are each of the following business goals? Please allocate 100 points across these goals.” An average was taken across the business goals, which were ranked and grouped according to their relevance to IT executive roles.

These priorities (left) are relevant to each of the three

roles that an IT executive must fulfill (below).

These priorities (left) are relevant to each of the three

roles that an IT executive must fulfill (below).

Page 5: Applications Trends Report - Tandem CIO...• Driving content recommendations for internal employees. • Improving supply chain operations (i.e. EOQ analysis). AI has come to the

Info-Tech Research Group 5Info-Tech Research Group 5

Successful IT executives achieve all three objectives.Successful IT executives

achieve all three objectives.

…and deliver value to the IT department, enterprise users, and the business

Most IT executives start in a primarily managerial role, with an “all hands-on-deck” philosophy to manage IT operations. Their role then grows to become partners of the business, and then innovators who lead business growth.

MarketMarket

EnterpriseEnterprise

IT OrganizationIT Organization

INNOVATOR

PARTNER

MANAGER

Figure 3. The Three-Fold Role of the IT Executive

Core Objectives

A

B

C

Optimize the Effectiveness of the IT Organization

Boost the Productivity of the Enterprise

Enable Business Growth Through Technology

Page 6: Applications Trends Report - Tandem CIO...• Driving content recommendations for internal employees. • Improving supply chain operations (i.e. EOQ analysis). AI has come to the

Info-Tech Research Group 6Info-Tech Research Group 6

The applications trends selected for this report are aligned with the core objectives of IT executives

B

A

C

Figure 4. The Trends in the Core Objectives Framework

We have identified six rapidly expanding trends that are poised to help today’s IT executives achieve these three core objectives.

Optimize the Effectiveness of

the IT Department

Boost the Productivity of the Enterprise

Enable Business Growth Through

Technology

Evolving Role of the BA

Converged Customer

Experience

Blockchain

Augmented Reality

IoT-Enabled Capabilities

Artificial Intelligence

Core Objectives

A Optimize the Effectiveness of the IT Organization

B Boost the Productivity of the Enterprise

C Enable Business Growth Through Technology

Page 7: Applications Trends Report - Tandem CIO...• Driving content recommendations for internal employees. • Improving supply chain operations (i.e. EOQ analysis). AI has come to the

Info-Tech Research Group 7Info-Tech Research Group 7

Info-Tech Research Group, Inc. is a global leader in providing IT research and advice.Info-Tech’s products and services combine actionable insight and relevant advice with

ready-to-use tools and templates that cover the full spectrum of IT concerns.© 1997-2018 Info-Tech Research Group Inc.

The Applications Trends2018

Page 8: Applications Trends Report - Tandem CIO...• Driving content recommendations for internal employees. • Improving supply chain operations (i.e. EOQ analysis). AI has come to the

Info-Tech Research Group 8Info-Tech Research Group 8

Optimize the IT function’s effectiveness and boost the enterprise’s productivity with these leading trends

1. Artificial IntelligenceMoving out of the realm of science fiction and into reality, artificial intelligence (AI) refers to intelligent behavior exhibited by machines – the ability to perceive an environment (physical or virtual) and take actions to maximize the probability of success at attaining a specific goal. Vendors are rapidly incorporating AI (powered by techniques like machine learning) into myriad different enterprise applications, from CRM suites that score leads without manual intervention to HRIS tools that predict employee attrition.

2. The Evolving Role of the Business AnalystAs enterprise applications move from on-premise, homegrown systems to commercial off-the-shelf solutions based in the cloud, the role of business analysts (BAs) that support these systems is changing. While effective requirements definition remains a paramount activity, BAs are increasingly expected to provide proactive recommendations on how technology can be used to improve business processes. Additionally, the business now expects that BAs won’t just collect requirements, but also serve as domain experts in particular technologies.

3. BlockchainBlockchain involves a continuously growing list of records (blocks) that are secured using cryptography that serves as a distributed ledger. While blockchain-powered cryptocurrencies such as Bitcoin continue to dominate headlines, application vendors are beginning to experiment with the use of blockchain in functions such as contract management and execution. Expect that blockchain use cases will continue to expand in the near-term horizon.

Page 9: Applications Trends Report - Tandem CIO...• Driving content recommendations for internal employees. • Improving supply chain operations (i.e. EOQ analysis). AI has come to the

Info-Tech Research Group 9Info-Tech Research Group 9

Stimulate and enable business growth through these trending technologies and practices

5. IoT-Enabled ServicesAs the number of web-enabled devices has proliferated, enterprise application vendors have seized on emerging use cases in supply chain management, customer engagement, and proactive service. For example, sensors in connected devices can now be used to relay information back to customer service applications to highlight impending problems and allow for pre-emptive action. Internet of Things (IoT)-enabled smart access points can identify repeat traffic and measure promotions. We expect the IoT will continue to evolve quickly in 2018.

6. Converged Customer ExperienceWith the number of customer interaction channels rapidly increasing and the amount of customer data growing exponentially, organizations have sought to converge their customer experience infrastructure. The result goes beyond a simple omnichannel approach, and has resulted in new processes and organizational structures (such as centers of excellence) being created to mine customer insights and enhance the efficacy of outbound interactions. Paired with our other highlighted trends (such as machine learning), converged customer experience is a trend to watch in 2018 – particularly for organizations interacting with customers at scale.

4. Augmented RealityAugmented reality (AR) involves overlaying computer-generated imagery on physical reality via specialized eyewear. It has remained on the periphery for several years, but as both hardware and software improve, AR has begun to see early adopters across a variety of use cases. In both logistics and marketing, organizations have begun to use AR to improve process efficiencies and better engage with their customers.

Page 10: Applications Trends Report - Tandem CIO...• Driving content recommendations for internal employees. • Improving supply chain operations (i.e. EOQ analysis). AI has come to the

Info-Tech Research Group 10Info-Tech Research Group 10

Info-Tech Research Group, Inc. is a global leader in providing IT research and advice.Info-Tech’s products and services combine actionable insight and relevant advice with

ready-to-use tools and templates that cover the full spectrum of IT concerns.© 1997-2018 Info-Tech Research Group Inc.

Artificial IntelligenceAI holds the promise of unleashing insights from data.

Page 11: Applications Trends Report - Tandem CIO...• Driving content recommendations for internal employees. • Improving supply chain operations (i.e. EOQ analysis). AI has come to the

Info-Tech Research Group 11Info-Tech Research Group 11

• Enhancing predictive recommendations for customer experience use-cases: for example, suggesting which leads a salesperson should focus on based on complex analysis of close-rates for past deals.

• Driving content recommendations for internal employees.

• Improving supply chain operations (i.e. EOQ analysis).

AI has come to the forefront as a critical value frontier for harnessing actionable insights from mountains of data

Artificial Intelligence (AI) is intelligence displayed by machines, and it comes in two flavours: general (strong) AI and narrow (weak) AI. The former is what we traditionally envision when we think of AI: sapient computers demonstrating a broad range of human aptitudes and emotions. The latter is what is actually occurring: purpose-built AIs designed to more effectively tackle specific tasks (be it enhancing the productivity of supply chains or allowing for more effective targeting of marketing campaigns). As we move into 2018, investment in narrow AI will continue to accelerate across a range of vendors (both start-ups and enterprise application incumbents).

• Increase in computational power: as processing power has accelerated, so too has the ability to quickly analyze data sets using machine learning algorithms.

• Expansion of training data sets: as data proliferation has occurred, much larger sample sets of data are available to train advanced cognitive algorithms: larger training sets mean AIs can improve their effectiveness over time.

Market Applications

While business intelligence (BI) platforms are naturally fertile ground for AI capabilities, many vendors (from CRM to ERP providers) are now building AI functionality directly into their products. For example, Salesforce’s Einstein layer seeks to add ubiquitous AI capabilities across its full range of CRM applications.

While business intelligence (BI) platforms are naturally fertile ground for AI capabilities, many vendors (from CRM to ERP providers) are now building AI functionality directly into their products. For example, Salesforce’s Einstein layer seeks to add ubiquitous AI capabilities across its full range of CRM applications.

Drivers of the Technology

Evolution

AI encompasses a wide range of different functional branches: most application vendors focus on deep learning and predictive analytics.Source: Ganesan Senthivel

Page 12: Applications Trends Report - Tandem CIO...• Driving content recommendations for internal employees. • Improving supply chain operations (i.e. EOQ analysis). AI has come to the

Info-Tech Research Group 12Info-Tech Research Group 12

Investments in both general and narrow AI are showing no signs of slowing down, as new entrants and existing players enter the fray

of developers that will include AI functionality in one or more apps or services by 2018.

of developers that will include AI functionality in one or more apps or services by 2018.

Source: IDC FutureScapes

The amount that Google’s parent company Alphabet invested into AI in 2017.

The amount that Google’s parent company Alphabet invested into AI in 2017.

Source: McKinsey

$30B

Microsoft’s Cortana AI has been expanded from a desktop virtual assistant to a being able to query app-specific data (from Dynamics, for example).

Microsoft’s Cortana AI has been expanded from a desktop virtual assistant to a being able to query app-specific data (from Dynamics, for example).

IBM has bet heavily on their Watson platform as being a multi-purpose AI for quickly sifting through enterprise data and offering up key insights.

IBM has bet heavily on their Watson platform as being a multi-purpose AI for quickly sifting through enterprise data and offering up key insights.

On the consumer side, Facebook continues to pursue AI to refine targeting effectiveness for ads, as well as to improve facial recognition.

On the consumer side, Facebook continues to pursue AI to refine targeting effectiveness for ads, as well as to improve facial recognition.

Outside Google’s core search, expect Alphabet’s AI investments to yield dividends in other areas such as autonomous vehicles.

Outside Google’s core search, expect Alphabet’s AI investments to yield dividends in other areas such as autonomous vehicles.

Market Highlights

Market Growth in AI Continues Full-Speed Ahead

Venture investments in AI is accelerating at a breakneck pace.Source: CBInsights, Jan. 2017

75%

Page 13: Applications Trends Report - Tandem CIO...• Driving content recommendations for internal employees. • Improving supply chain operations (i.e. EOQ analysis). AI has come to the

Info-Tech Research Group 13Info-Tech Research Group 13

AI offers transformative potential, but now isn’t the right time to invest for everyone: understand value and risks

Core Capabilities:

A

B

C

Optimize the Effectiveness of the IT Department

Boost the Productivity of the Enterprise

Enable Business Growth Through Technology

There are two paths your organization can use to harness AI: as a standalone effort (often under the banner of a BI initiative) or by taking advantage of narrow AI capabilities in popular enterprise applications. The former has better potential for business transformation but carries more risks. The latter is incremental yet cheaper. Review the levels of value and sources of risk to determine the best approach.

B

A

C

Levers of Value

• AI provides the ability to quickly sift through vast amounts of structured and unstructured data and identify correlations and insights that would take substantially longer for a human data analyst to achieve. This makes it indispensable for analyzing large data sets and democratizing access to data.

• Predictive analytics allows AI to not only answer questions about historical performance, but also highlight possible future scenarios. This is important for organizations dependent on accurate forecasts of key business variables.

• Machine learning differentiates AI from traditional statistical techniques by allowing it to “learn” and improve over time.

Sources of Risk

• Investments in dedicated BI platforms with full AI capabilities are expensive. If your organization lacks the data management practices and discipline to execute an AI-driven approach to BI, you should stick with AI-branded functionality in existing applications.

• Data hygiene can radically impact the effectiveness of AI-centric analysis; garbage in still means garbage out!

• Some roles in your organization may perceive the roll-out of AI (and other forms of automation) as a threat to their livelihood. Change management should focus on how AI can make existing analysts more effective, not supplant them.

Artificial Intelligence

Page 14: Applications Trends Report - Tandem CIO...• Driving content recommendations for internal employees. • Improving supply chain operations (i.e. EOQ analysis). AI has come to the

Info-Tech Research Group 14Info-Tech Research Group 14

Understand how AI can be leveraged at different stages of the adoption curve in order to match its value to your business needs

Explore

Adopt

Optimize

• Assess the need for AI. Do you have a large volume of data that needs to be crunched? Do you find distilling insights from data or democratizing access to it difficult? If yes, AI is likely a fit for your organization.

• Follow market reports and industry case studies from comparable organizations – are they also investing in AI?

• Determine requirements and change readiness of people and processes.

• Ascertain management understanding and buy-in for AI. Do they view it as a mechanism for business transformation or just a fad?

• Integrate requirements around machine learning and predictive analytics into your procurement cycle for applications like CRM and ERP. Purchase from vendors with proven investments in AI. If warranted, implement a full BI-stack with AI at its core.

• Communicate the value and quick wins to stakeholders.

• Fully integrate AI into day-to-day operations. Build comfort and familiarity with your end users in trusting predictive recommendations offered by AI-centric functionality in their day-to-day operations.

• Scale AI functionality (such as automated lead scoring or predictive content recommendations) to the broader organization – continue rollout and adoption across the organization.

After understanding the value and risks of AI, decide how your organization will approach it. Will you explore initial application-centric use cases or dive in with a full AI-driven BI program?

Page 15: Applications Trends Report - Tandem CIO...• Driving content recommendations for internal employees. • Improving supply chain operations (i.e. EOQ analysis). AI has come to the

Info-Tech Research Group 15Info-Tech Research Group 15

SituationSituation

The City of Hamilton in Canada seeks to transform healthcare outcomes by rolling out AI capabilities

Case StudyCase Study Healthcare

The City of Hamilton in Ontario, Canada services over 2.3 million people. Facing increasing budgetary pressure, the city’s healthcare network needed to do more with less. While tremendous amounts of medical information and healthcare data were being generated, there was no systematic way to easily access all of it – data was fragmented across a variety of systems and repositories. Providing faster, more contextual, and more relevant data to primary care physicians and their support networks was identified as a strategic priority for the city’s healthcare network to contain costs and save lives.

ResultsResults

• Decreased spend on manual data operations and insight generation.

• Decreased costs associated with maintaining and searching large stores of healthcare and patient data.

• Improved ability for primary care workers to quickly locate relevant, contextual information on patients – leading to improved health outcomes and a reduction of manual oversights and errors.

• Improved ability to keep pace with rapidly proliferating sources and volume of patient-related data.

ActionAction

In order to help make sense of the mountains of patient data, Hamilton turned to IBM’s Watson AI platform to help ingest, understand, and prioritize relevant data. By using AI that was able to identify trends and patterns in data and surface the most relevant contextual information to human operators, the city reduced the amount of manual effort (and errors) inherent in its data operations. For example, Watson can review up to 40 million medical documents in only 15 seconds and pull appropriate information from these artifacts for physician inquiry.

Source: IBM

Page 16: Applications Trends Report - Tandem CIO...• Driving content recommendations for internal employees. • Improving supply chain operations (i.e. EOQ analysis). AI has come to the

Info-Tech Research Group 16Info-Tech Research Group 16

Info-Tech Research Group, Inc. is a global leader in providing IT research and advice.Info-Tech’s products and services combine actionable insight and relevant advice with

ready-to-use tools and templates that cover the full spectrum of IT concerns.© 1997-2018 Info-Tech Research Group Inc.

Evolving Role of the Business AnalystBecoming strategic and specialized business partners.

Page 17: Applications Trends Report - Tandem CIO...• Driving content recommendations for internal employees. • Improving supply chain operations (i.e. EOQ analysis). AI has come to the

Info-Tech Research Group 17Info-Tech Research Group 17

• Internal IT full-time positions• Contract or part-time positions• Vendor team or system implementer-provided resource• Consulting services firms and staff augmentation firms

The role of the BA is evolving to become more specialized and strategic: BAs are expected to be SMEs, not order takersAs the majority of enterprise applications transition from homegrown, on-premise affairs to off-the-shelf SaaS deployments, the role of the Business Analyst (BA) is rapidly changing. Rather than focusing on robotic collection of specifications for internal development, savvy BAs are now expected to be process domain experts, relationship managers and savvy with business requirements elicitation. These changes have forced organizations to think strategically about the structure and composition of their business analyst teams in order to ensure the role stays relevant in a rapidly changing environments.

• Move from homegrown, on-premises implementations to Commercial off-the-shelf (COTS) SaaS-based solutions

• Expansion of business-owned application (BOA) application portfolio management approaches

• Adoption of agile development methodologies

BA Resourcing Models

BAs have primarily been generalists that were agnostic to the IT project they served. In today’s world, it is more imperative than ever that BAs have specialized subject matter expertise in either the business processes or the application domains, and are expert facilitators for requirements elicitation.

Drivers of the Evolution

Evolution

Evolving BA role:

Requirements Gathering Analyst

Business Process SME

Application Domain SME

Business Relationship Manager

Innovation Influencer

Page 18: Applications Trends Report - Tandem CIO...• Driving content recommendations for internal employees. • Improving supply chain operations (i.e. EOQ analysis). AI has come to the

Info-Tech Research Group 18Info-Tech Research Group 18

Despite the importance of good business requirements to project success, many organizations struggle to define a consistent and repeatable process for requirements gathering. This results in wasted time and effort from both IT and the business, and generates requirements that are incomplete and of dubious value. Additionally, many business analysts lack the competencies and analytical techniques to properly execute the requirements gathering process.

– Ben Dickie, Research Director – Info-Tech

Requirements gathering continues to be a critical activity for BAs to focus on, but requires subject expertise and a process-driven approach

of project rework is directly attributable to poorly defined business requirements.

of project rework is directly attributable to poorly defined business requirements.

Source: Info-Tech Research Group

50%

of applications projects that fail to deliver value have poorly defined business requirements.

of applications projects that fail to deliver value have poorly defined business requirements.

Source: Info-Tech Research Group

70%

As business analysts become process experts, having a structured approach to requirements definition is more critical

now than ever before.

Organizations that had high satisfaction with requirements gathering processes were more likely to be highly satisfied with the other areas of IT – including aggregate satisfaction.

N=395 organizations from Info-Tech’s CIO Business Vision diagnostic

Page 19: Applications Trends Report - Tandem CIO...• Driving content recommendations for internal employees. • Improving supply chain operations (i.e. EOQ analysis). AI has come to the

Info-Tech Research Group 19Info-Tech Research Group 19

Recognize the strategic value of today’s BAs embody more than just the enumeration of application specifications

Core Capabilities:

A

B

C

Optimize the Effectiveness of the IT Department

Boost the Productivity of the Enterprise

Enable Business Growth Through Technology

Successful BAs have become subject matter experts in their business and application domains to become trusted advisors to the business.

Balance this trend’s value levers with its risks to determine if it is eligible for adoption by your organization.

B

A

C

Levers of Value

• Effective business process analysis enables the BA to offer proactive suggestions on internal process improvements.

• Increased technology domain expertise enables the BA to make informed recommendations on enabling technologies and translate the art of the possible to the business.

• Increased application-specific domain expertise enables the BA to understand the market and actively assist with vendor selections.

Sources of Risk

• Existing BAs may not be able to adapt to the changing circumstances or be able to develop the newly required skills, capabilities, and competencies needed to succeed.

• As organizations purchase COTS SaaS-based solutions, they may mistakenly believe BAs are no longer required.

• Those assuming a BA role may not hold a “Business Analyst” title and may not be empowered to perform BA responsibilities.BA

Evolution

Page 20: Applications Trends Report - Tandem CIO...• Driving content recommendations for internal employees. • Improving supply chain operations (i.e. EOQ analysis). AI has come to the

Info-Tech Research Group 20Info-Tech Research Group 20

Invest in internal resources and leverage external ones to build up your BAs’ capabilities

Explore

Adopt

Optimize

• Identify skills gaps by assessing current IT resources’ skills and capabilities against your organization’s needs.

• Keep a look out for internal resources from the business or in functional roles that may be suitable to transition to a BA role.

• Conduct training sessions for internal BAs to increase business process expertise and relationship management skills.

• Hire BAs with specialized application domain expertise for application-specific projects.

• Leverage vendor-provided resources for vendor-supported projects.

• Invest in long-term learning and develop initiatives for internal BA resources.

• Leverage vendor-provided resources for knowledge transfer and training.

• Consider alternative organization structures for BAs, such as decentralized or matrix reporting.

Determine which of the three stages of adoption best describes your organization – Explore, Adopt, or Optimize. The following activities will help guide you through each phase and move towards maximizing benefits from your BAs.

Page 21: Applications Trends Report - Tandem CIO...• Driving content recommendations for internal employees. • Improving supply chain operations (i.e. EOQ analysis). AI has come to the

Info-Tech Research Group 21Info-Tech Research Group 21

SituationSituation

The IT department recognized that a strong requirements gathering process was essential to delivering value to their stakeholders. However, there was no codified process in place – each BA unilaterally decided how they would conduct requirements gathering at the start of each project. IT recognized that in order to enhance both the effectiveness and efficiency of requirements gathering, they needed to put in place a strong, prescriptive set of standard operating procedures.

The IT department recognized that a strong requirements gathering process was essential to delivering value to their stakeholders. However, there was no codified process in place – each BA unilaterally decided how they would conduct requirements gathering at the start of each project. IT recognized that in order to enhance both the effectiveness and efficiency of requirements gathering, they needed to put in place a strong, prescriptive set of standard operating procedures.

A mid-sized local government revamped requirements approaches and BA training to reflect changing realities

Case StudyCase Study Government

ResultsResults

• As a result of the new procedures and training, the organization saw an uplift in validated requirements and higher stakeholder satisfaction with deployed systems.

• BAs were more tightly coupled to constituent departments and developed expertise in off-the-shelf solutions (not just ones being used, but also potential solutions). This allowed them to serve as trusted operators for providing the organization with a more complete set of proactive recommendations for enabling technologies that would support critical business functions.

• As a result of the new procedures and training, the organization saw an uplift in validated requirements and higher stakeholder satisfaction with deployed systems.

• BAs were more tightly coupled to constituent departments and developed expertise in off-the-shelf solutions (not just ones being used, but also potential solutions). This allowed them to serve as trusted operators for providing the organization with a more complete set of proactive recommendations for enabling technologies that would support critical business functions.

ActionAction

Working with a team from Info-Tech, the IT leadership and BA team conducted a workshop to develop a new set of standard operating procedures that provided clear guidance for each stage of the requirements process: elicitation, analysis, and validation. The training also emphasized the move from traditional requirements gathering to process-based, BPI-centric analysis and subject matter expertise development to support the organization’s move to SaaS systems.

Working with a team from Info-Tech, the IT leadership and BA team conducted a workshop to develop a new set of standard operating procedures that provided clear guidance for each stage of the requirements process: elicitation, analysis, and validation. The training also emphasized the move from traditional requirements gathering to process-based, BPI-centric analysis and subject matter expertise development to support the organization’s move to SaaS systems.

Source: Info-Tech Research Group

Page 22: Applications Trends Report - Tandem CIO...• Driving content recommendations for internal employees. • Improving supply chain operations (i.e. EOQ analysis). AI has come to the

Info-Tech Research Group 22Info-Tech Research Group 22

Info-Tech Research Group, Inc. is a global leader in providing IT research and advice.Info-Tech’s products and services combine actionable insight and relevant advice with

ready-to-use tools and templates that cover the full spectrum of IT concerns.© 1997-2018 Info-Tech Research Group Inc.

Blockchain: Smart ContractsSecure agreements using blockchain as a foundational technology.

Page 23: Applications Trends Report - Tandem CIO...• Driving content recommendations for internal employees. • Improving supply chain operations (i.e. EOQ analysis). AI has come to the

Info-Tech Research Group 23Info-Tech Research Group 23

• Digital media intellectual property protection• Food safety certification systems of record• Land titles and ownership record keeping• Supply chain transparency and documentation• Electronic medical and healthcare records

Beyond its top-of-mind use in cryptocurrencies, blockchain technology presents broader use cases such as smart contractsBlockchain is a foundational technology that embodies the principles of a distributed database, peer-to-peer transactions, transparency with pseudonymity, irreversibility of records, and computation logic. Smart contracts are self-executing code on a blockchain that automatically deploys an agreement’s terms and conditions. Leveraging a continuously growing ledger of discrete blocks, blockchain-enabled smart contracts have the potential to transform areas such as contract fulfillment, digital rights management, and enterprise content management.

• Improvements in cryptography and computational power• Increased need for security, privacy, and compliance• Increased need for decentralized verification systems• The awareness and “buzz” surrounding bitcoin and other

cryptocurrencies

Market Applications

Blockchain technology is the response to traditional business ledgers’ inefficiency, costliness, non-transparency, reliance on third parties, and ease of misuse. While blockchain is in its infancy, expect to see growing traction of the technology in the next several years, especially with the smart contracts use case.

Drivers of the Technology

Evolution

Mainstream scale and adoption of blockchain technology:

Graphic by Info-Tech

Page 24: Applications Trends Report - Tandem CIO...• Driving content recommendations for internal employees. • Improving supply chain operations (i.e. EOQ analysis). AI has come to the

Info-Tech Research Group 24Info-Tech Research Group 24

Global investments in blockchain technology and smart contract uses are strong.

CAGR for capital markets applications spending projected to reach $400M by 2019.

CAGR for capital markets applications spending projected to reach $400M by 2019.

Source: KPMG

52%

Investment in Bitcoin and blockchain firms in 2015.Investment in Bitcoin and blockchain firms in 2015.

Source: KPMG

$474M

Global banks are building proof-of-concept trade finance and supply chain platforms that use smart contracts.

Global banks are building proof-of-concept trade finance and supply chain platforms that use smart contracts.

Source: Deloitte

5+

of total blockchain venture funding in 2016 Q1 were smart contract VC-related deals.

of total blockchain venture funding in 2016 Q1 were smart contract VC-related deals.

Source: Deloitte

86%

Like AI, blockchain deals are also rapidly proliferating.Source: CBInsights, April 2017

Page 25: Applications Trends Report - Tandem CIO...• Driving content recommendations for internal employees. • Improving supply chain operations (i.e. EOQ analysis). AI has come to the

Info-Tech Research Group 25Info-Tech Research Group 25

Blockchain-enabled smart contracts have great cost and revenue impact, so long as internal security and data governance are present

Core Capabilities:

A

B

C

Optimize the Effectiveness of the IT Department

Boost the Productivity of the Enterprise

Enable Business Growth Through Technology

Smart contracts are an application of how blockchain technology foundationally changes the way organizations will conduct business in the near future.

Balance this trend’s value levers with its risks to determine if it is eligible for adoption by your organization.

B

A

C

Levers of Value

• Process efficiency is gained from the automation and speed of contract execution.

• Security and compliance are gained by the accuracy of automated transactions.

• Reduced reliance on third-party intermediaries streamlines the process and reduces cost.

• New models of revenue generation are enabled by the low-cost, peer-to-peer, and transparent nature of smart contracts.

Sources of Risk

• Poor security standards, systems, and policies can limit the effectiveness and success of blockchain-enabled technologies.

• Poor data management practices can limit the effectiveness and success of blockchain-enabled technologies.

• Lack of buy-in from end users can occur from the lack of familiarity with the technology, especially as blockchain can be difficult to understand.

Blockchain: Smart

Contracts