Over the past few years every conversation I had with a CxO, product visionaries or a developer comes back to the potential of Big Data. But data is dumb, big data is not where the value is. Data is certainly necessary but it is transient, itself it will not be transformative, anybody can gather data, anybody can store it. Good analysis is something worth a little more, but anyone can do that. Unless you know how to use it, how to act with it. A team of Gartner Inc. analysts made clear at the opening keynote session of the research group’s Symposium ITxpo 2015. Because algorithm is where the real value lies, algorithm define actions, it can be a simple recipe, or a complex code.
Few years back IT used to control 70% of the total technology spending in an organization, now its 58% and it will be half by 2017. Enterprises are embedding technology inside their organization but the bad news is they control the less of the total. Approach to leadership must be to influence the direction of digital initiative.
For CIOs, How do you transform?
You need three things
1> Different approach to technology and investment
2> New digital supplies
3> Create an innovation competency
Act more as an Intelligence officer and not a police officer. “The digital organization starts with how customers behave,” he(Peter Sondergaard) said. “Don’t ask what the customer wants, watch what the customer does.” Task for the CIOs have moved with the chaining economy, the goal is to define what to keep private and what can be traded.
Influence scales, control doesn’t.
Algorithm Economy: Looking back few decades it was so simple, things were analog, human had less of technology in the daily life but then Consumer technology market and internet of things gave rise to Human-to-Machine business environments, now is the time algorithms giving rise to Machine-to-Machine business environment, when machines think and act on their own where algorithms is the brain and drives the actions. In coming times robots will build new robots thus the algorithm we design now for them will lay the foundation for future.
With millions of algorithms floating out in the market and each doing a task, the business don’t need to spend high and get the same algorithm written again, rather license the existing algorithm at a much lower price and create a win-win. Winners will be the one investing in technology and not the one purchasing them.
Interconnections, relationships and algorithms are driving the business today. Agents like Cortana, Siri are just the prototype to the new future. Agents enabled by algorithms will define the post App era.
The Algorithmic Business is here…