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Cassio Dreyfuss, vice president of research at Gartner
Analysts warn that the transformation is not just for large multinational companies
Gartner, a world leader in unbiased technology research and advice, warns that Brazilian CIOs (Chief Information Officers) must support their companies' progress in their own unique digital transformation paths.
During the opening of the Gartner Symposium/ITxpo, which took place October 23-26, 2017 in São Paulo, analysts emphasized that digital success is not just for large multinational companies or current industry leaders. Digital success is for those companies – large or small, public or private – that can engage the entire organization, set the right digital focus, and use the right tools to scale digital businesses.
Scale is not just about size. It occurs upwards, inwards and outwards. Scaling up enables efficient driving to new heights. Scaling across quickly takes learned capabilities from one organization to another, while scaling out interconnects internal and external platforms and ecosystems.
There are different roles to play in a digital ecosystem and business expansion allows companies to develop their specific roles in this new reality. They will need to employ a carefully tuned combination of three scale accelerators: digital dexterity, network effect technologies and an industrialized digital platform.
First scale accelerator: digital dexterity
Digital Dexterity is a new organizational design and new talent mix for a new work environment – a high-performance digital workplace. Organizations must change internally to change externally.
"To scale, we need people with digital dexterity. People who are collaborative, agile, analytical, innovative and creative. People who have the ability and desire to exploit existing and emerging technologies for better business results," says Cassio Dreyfuss, vice president -President of Research at Gartner.
A right-handed digital culture requires three building blocks: Technology, Engagement and Diversity. “It's time to build your technology for user experience and explore experiential skills such as design thinking, guided navigation and dynamic market testing. These become your tools," says Hung LeHong, vice president and Gartner Fellow. "Invest in SaaS applications that make it easy for employees to do it themselves – things like data visualization and application integration. Exploiting virtual personal assistants to free everyone from low-value tasks."
The second building block is engagement. "Make engagement and people the design center for your technology and your processes," says Dreyfuss. "For that, we can use the science of behavioral change. For example, using peer advocates, trusted influencers and social governance, we get closer to creating the right employee experience."
The third element to building a culture of digital dexterity is diversity. CIOs should look to exploit this multiplicity in all its forms, such as diverse talent, vendors, backgrounds, cultures and data. "Diversity allows us to go above and beyond to harness the power of the digital and crowd," says LeHong.
Second scale accelerator: network effect technologies
Network effect technologies help the CIO transition from making isolated, tactical technology decisions to building an integrated strategic digital business platform. This unique set of technologies creates virtuous growth patterns, allowing the executive to deal with an environment where disruptive waves accumulate exponentially. Three network effects technologies to focus on in 2018 are: the Internet of Things (IoT), application programming interfaces (APIs), and Artificial Intelligence (AI).
“The IoT scales the physical world, allows us to feel, measure and mediate everything from pipelines to the human body. This allows us to make better decisions faster. As the number of connected devices grows, you go from lack of information to abundant data," says LeHong.
LeHong also explained the type of people to do the work. "Find people who are capable and eager to embed all kinds of intelligence in IoT. Engage data management professionals to ensure you have diverse source data. Leverage the digital prowess of data scientists," he says.
While IoT scales the physical world, APIs scale relationships across ecosystems. They enable CIOs to easily connect partners, employees, and even competitors in a vibrant, web-scale network that delivers value to everyone. "Value emerges slowly and then it accelerates rapidly as more players are added to the ecosystem and new APIs are created. That's the network effect," says LeHong.
With IoT scaling the physical world, and APIs scaling relationships, think of AI as people growing. Gartner believes that AI will help people, not replace them. Certain jobs were lost in each technological revolution and new jobs were created. With AI, it will be no different.
Gartner analysts are showing today at the Symposium that the real potential with AI is in enhancing people's capabilities. "The best use of AI today and in the future is to increase human capabilities. There will be a difficult transition period, but the net effect will ultimately be positive, with the creation of new jobs. A human machine is smarter than it is." The machine scales the person. The person scales the machine", says Dreyfuss.
Third Scale Accelerator: industrialize the digital platform
Industrialization means creating an integrated and coordinated digital platform that allows dynamically adding or interrupting players or changing the relationship between them. The industrialized digital platform unleashes the digital dexterity of your workforce and unlocks the potential of network effect technology.
"The beauty of the industrialized digital platform is that it allows you to create value in all directions at scale: up, in and out. Value creation used to be one-way: from organization to customers. Now value creation can scale in all directions, from anyone, anywhere, to anyone, anywhere," says LeHong.
Organizations will need to define their digital ambitions when determining the type of organization they want to be. Without digital business ambition, organizations just have a collection of projects. Brazilian organizations should not wait any longer. "For 2018, they must set two priorities: survive and thrive in today's difficult environment and, at the same time, take decisive steps in their digital transformation paths", concludes Dreyfuss.
During the opening of the Gartner Symposium/ITxpo, which took place October 23-26, 2017 in São Paulo, analysts emphasized that digital success is not just for large multinational companies or current industry leaders. Digital success is for those companies – large or small, public or private – that can engage the entire organization, set the right digital focus, and use the right tools to scale digital businesses.
Scale is not just about size. It occurs upwards, inwards and outwards. Scaling up enables efficient driving to new heights. Scaling across quickly takes learned capabilities from one organization to another, while scaling out interconnects internal and external platforms and ecosystems.
There are different roles to play in a digital ecosystem and business expansion allows companies to develop their specific roles in this new reality. They will need to employ a carefully tuned combination of three scale accelerators: digital dexterity, network effect technologies and an industrialized digital platform.
First scale accelerator: digital dexterity
Digital Dexterity is a new organizational design and new talent mix for a new work environment – a high-performance digital workplace. Organizations must change internally to change externally.
"To scale, we need people with digital dexterity. People who are collaborative, agile, analytical, innovative and creative. People who have the ability and desire to exploit existing and emerging technologies for better business results," says Cassio Dreyfuss, vice president -President of Research at Gartner.
A right-handed digital culture requires three building blocks: Technology, Engagement and Diversity. “It's time to build your technology for user experience and explore experiential skills such as design thinking, guided navigation and dynamic market testing. These become your tools," says Hung LeHong, vice president and Gartner Fellow. "Invest in SaaS applications that make it easy for employees to do it themselves – things like data visualization and application integration. Exploiting virtual personal assistants to free everyone from low-value tasks."
The second building block is engagement. "Make engagement and people the design center for your technology and your processes," says Dreyfuss. "For that, we can use the science of behavioral change. For example, using peer advocates, trusted influencers and social governance, we get closer to creating the right employee experience."
The third element to building a culture of digital dexterity is diversity. CIOs should look to exploit this multiplicity in all its forms, such as diverse talent, vendors, backgrounds, cultures and data. "Diversity allows us to go above and beyond to harness the power of the digital and crowd," says LeHong.
Second scale accelerator: network effect technologies
Network effect technologies help the CIO transition from making isolated, tactical technology decisions to building an integrated strategic digital business platform. This unique set of technologies creates virtuous growth patterns, allowing the executive to deal with an environment where disruptive waves accumulate exponentially. Three network effects technologies to focus on in 2018 are: the Internet of Things (IoT), application programming interfaces (APIs), and Artificial Intelligence (AI).
“The IoT scales the physical world, allows us to feel, measure and mediate everything from pipelines to the human body. This allows us to make better decisions faster. As the number of connected devices grows, you go from lack of information to abundant data," says LeHong.
LeHong also explained the type of people to do the work. "Find people who are capable and eager to embed all kinds of intelligence in IoT. Engage data management professionals to ensure you have diverse source data. Leverage the digital prowess of data scientists," he says.
While IoT scales the physical world, APIs scale relationships across ecosystems. They enable CIOs to easily connect partners, employees, and even competitors in a vibrant, web-scale network that delivers value to everyone. "Value emerges slowly and then it accelerates rapidly as more players are added to the ecosystem and new APIs are created. That's the network effect," says LeHong.
With IoT scaling the physical world, and APIs scaling relationships, think of AI as people growing. Gartner believes that AI will help people, not replace them. Certain jobs were lost in each technological revolution and new jobs were created. With AI, it will be no different.
Gartner analysts are showing today at the Symposium that the real potential with AI is in enhancing people's capabilities. "The best use of AI today and in the future is to increase human capabilities. There will be a difficult transition period, but the net effect will ultimately be positive, with the creation of new jobs. A human machine is smarter than it is." The machine scales the person. The person scales the machine", says Dreyfuss.
Third Scale Accelerator: industrialize the digital platform
Industrialization means creating an integrated and coordinated digital platform that allows dynamically adding or interrupting players or changing the relationship between them. The industrialized digital platform unleashes the digital dexterity of your workforce and unlocks the potential of network effect technology.
"The beauty of the industrialized digital platform is that it allows you to create value in all directions at scale: up, in and out. Value creation used to be one-way: from organization to customers. Now value creation can scale in all directions, from anyone, anywhere, to anyone, anywhere," says LeHong.
Organizations will need to define their digital ambitions when determining the type of organization they want to be. Without digital business ambition, organizations just have a collection of projects. Brazilian organizations should not wait any longer. "For 2018, they must set two priorities: survive and thrive in today's difficult environment and, at the same time, take decisive steps in their digital transformation paths", concludes Dreyfuss.
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