Digital economy makes all businesses tech startups

Enterprise Innovation editors
08 Oct 2014
00:00

Global IT spending is projected to surpass $3.9 trillion in 2015, up 3.9% from 2014, and much of the spending will be driven by the digital industrial economy, according to Gartner.

Gartner defines digital business as new business designs that blend the virtual world and the physical worlds, changing how processes and industries work through the Internet of Things.

Gartner estimates that half of all technology sales people are actively selling direct to business units, not IT departments.

Bimodal IT fills the digital divide between what IT provides and what the enterprise really needs. Mode 1 is traditional, and the systems that support them must be reliable, predictable, and safe (like a big IT organization). Mode 2 is nonsequential, emphasizing agility and speed (like a startup) because disruption can occur at anytime.

“This year enterprises will spend over $40 billion designing, implementing and operating the Internet of Things,” said Peter Sondergaard, SVP at Gartner.

“Every piece of equipment, anything of value, will have embedded sensors,” said Sondergaard. “This means leading asset-intensive enterprises will have over half a million IP addressable objects in 2020.”

He also noted a shift of demand and control away from IT and toward digital business units closer to the customer.

“Thirty-eight percent of total IT spend is outside of IT already, with a disproportionate amount in digital. By 2017, it will be over 50%,” Mr. Sondergaard said.

Gartner predicts that smart robots will appear not just on the manufacturing floor, where they do physical work, but in the workplace and even in the home.Smart machines will automate decision making. Therefore, they will not only affect jobs based on physical labor, but they will also impact jobs based on complex knowledge worker tasks.

By 2018, digital businesses will require 50% fewer business process workers but it will drive a 500% boost in digital jobs.

Right now, the hottest skills CIOs must hire or outsource for are mobile, user experience, and data sciences. Three years from now, the hottest skills will be smart machines (including IoT), robotics, automated judgment, and ethics.

Over the next seven years, there will be a surge in new specialized jobs. The top jobs for digital will be integration specialists, digital business architects, regulatory analysts, and risk professionals.

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