Intel’s CIO Kim Stevenson is “…convinced that this is an exciting time as we enter a new era for Enterprise IT. Market leadership is increasingly being driven by technology in all industries, and a new economic narrative is being written that challenges business models that have been in place for decades.”
With enterprise pumping more funds into the industry than ever, Gartner projects that IT spending will reach $3.8 trillion this year. Gartner’s prediction indicates that while many of the traditional enterprise IT-focused areas — data center systems, devices, enterprise software, IT services, and telecom services — will continue to see increased investment, new areas are expected to emerge much faster.
As the business invests more in IT — whether it’s in these traditional focused areas or these new emergent areas — one thing is stable. The business is becoming more dependent on IT for both organizational efficiency and competitive value.
Let’s take a closer look at two of the emergent growth segments along with the challenges, opportunities, and value they create for this new era of business-IT relationships.
Security and the Internet of Things
Gartner projects an almost 30-fold increase in the number of installed IoT units (0.9 billion to 26 billion) between 2009 and 2020. The data collected from these devices is an essential component to future IT innovation; however, this technology comes with significant security and privacy risks that cannot be ignored. “Data is the lifeblood of IoT,” states Conner Forrest of ZDNet. “As such, your security implementation for IoT should center around protecting it.”
The potential for the IoT remains largely undefined and at risk, especially with 85 percent of devices still unconnected and security threats prevalent. The Intel IoT Platform was designed to address this business challenge. The Intel IoT Platform is an end-to-end reference model that creates a secure foundation for connecting devices and transferring data to the cloud. With this reference architecture platform, countless IoT solutions can be built and optimized with the advantages of scalable computing, security from device to cloud, and data management and analytics support.
The Enterprise Investing in Startups
2014 represented the biggest year in corporate venture group capital investment since 2000, and this trend is set to continue, according to a MoneyTree Report jointly conducted by PricewaterhouseCoopers LLP, the National Venture Capital Association, and Thomson Reuters. What is interesting to me is the why. Organizations want and need a critical asset: creative talent.
As the term “innovation” runs rampant through the enterprise, CIOs know they must make changes in order to stay fresh and competitive. However, according to Kim Nash of CIO, 74 percent of CIOs find it hard to balance innovation and operational excellence, suggesting that a more powerful approach would be to acquire a startup to capture its talent, intelligence, and creative spirit.
While buying a startup is not in every organization’s wheelhouse, some businesses are providing venture capital to startups in order to tap into their sense of innovation. “By making such moves,” explains Nash, “non-IT companies gain access to brand new technology and entrepreneurial talent while stopping short of buying startups outright.”
Leadership Tips For IT Innovation
IT’s success in this new environment will not follow a pre-defined formula. In fact, it will rely on new skills and an evolving partnership between business and IT. For this reason, Intel partnered with The IT Transformation Institute to present the Transform IT Show. Transform IT is a web-based show that features in-depth interviews with business executives, IT leaders, and industry experts to shed light on what the future holds for business and the IT organizations that power them. Most importantly, the show highlights the advice for all future leaders on how to survive and thrive in the coming era of IT.
I hope you enjoy our guests and can apply the insights you gain from the Transform IT Show. Join this critical conversation by connecting with me on Twitter at @chris_p_intel or by using #TransformIT.