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IT challenge N°3: Encouraging Innovation by Rethinking the Organizational Working Model

The role of digital technology is rapidly shifting, from being a driver of marginal efficiency to an enabler of fundamental innovation and distraction. Creating value out of knowledge and ideas is the key to success for companies in this existing and upcoming connected digital era. Companies certainly need to change the way they identify, develop and launch innovative ideas/products.

Encouraging the Innovation by Rethinking the Organization’s working models

Mastering the uses: 

 

The most innovative digital procedures are no longer only created within the companies. Experts must seek innovation on the “street” usage, and open themselves to the collective intelligence of their ecosystem by no longer reducing innovation to a “inside of the box” population.  This heavy trend, which everybody can observe on a daily basis, upsets the organizational models of companies.

 

Digital transformation does not happen overnight, but it certainly promotes a matrix and cross-functional working option within the company, where collaboration is inescapable. But, in some cases, internal collaboration can come up against individual resistance, organizational restrictions and cultural habits.

 

The challenge is to succeed in mixing cultures and habits within the organization in order to achieve a multidisciplinary collaboration that generates innovation. However, one should not be mistaken about the main objective of collaboration which is only a medium to serve a purpose such as innovation, performance, value creation…

 

Collaboration Endorsement: 

 

Appropriating digital uses where they appear, requires know-how to mix top-down and bottom-up innovation approaches, or crowdsourcing and R & D … But the hierarchical culture in large organizations goes against these innovative approaches that require the development of collaborative approaches: the risk / benefit ratio remains difficult to evaluate in the collaborative approach when there is a loss of control for the manager and a redistribution of power. It is therefore necessary to accompany the evolution of behaviors and practices by working with multidisciplinary teams.

 

Organizational issues are linked to the geographical dispersion and multiculturalism of the teams, even if digital tools seek to mitigate this dispersion, localization, travel time, different languages ​​and cultures are points of attention. To succeed, one must established the right behavioral KPIs to measure the traction of their business collaboration.

 

 

Challenges: Capturing innovation and skills transformation

 

  • Globalize: create global digital platforms to facilitate the work of teams (multinationals, in a mobility situation) to capture both innovation and customer experience. These digital platforms are essential in transforming organizations.
  • Capitalize on social networks and fan communities.
  • Experiment: organize events to innovate
  • Reconfigure: transform skills and adapt human resources to recognize collaborative approaches (valorization, recognition, retribution, identification of leaders), but also to frame practices and accompany change (right to disconnection, stress management, charters of use …).
  • Convince your investors about your digital vision and the long-term value-creation impact (top and bottom line) of your digital transformation journey.

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Leaders across all industries are writing the next chapter of the digital economy. It is time to either become part of the story or just another footnote in the history of disruption

Cybersecurity and Digital Businesses Transformation

In a special report on digital business transformation and cybersecurity, Gartner affirms that as organizations migrate their business to digital, a lack of directly-held infrastructure and services outside of IT’s management can ought to be self-addressed by cybersecurity. “Gartner predicts by 2020, 60% of Digital Businesses will suffer major service failures due to the inability of IT Security Teams to Manage DigitalRisk”

As Digital Transformation initiatives gain pace across the world, the threat of cyber-attack grows in tandem. Further risks stem from the evolving business and regulatory requirements and technology trends that are posing new cybersecurity challenges and endangering the success of digital programs.

 

We all know today’s business depends on technology and digital systems are now lifeblood of an organization. With that being said, Paul Proctor, vice president and distinguished analyst at Gartner, affirms that “Cybersecurity is an important part of digital-business with its new challenges in an open digital-world“.

Organizations leaders must realize that it’s time for a fundamental rethink of how cybersecurity is positioned and understood within their organizations and which innovation they must do to survive digital risks.

 

Let’s have a look on 5 key areas of focus, identified by Gartner, to address successfully cybersecurity in digital business:

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Hard to admit, but the perfect protection is not feasible. Gartner states that 60% of cyber security budgets in the companies will be dedicated to the early detection of threats in 2020. This is less than 30% in 2016. “Organizations need to detect and respond to malicious behavior and incidents, because even the best preventive controls may not prevent all incidents, “says Gartner.

 

  1. Improve the leadership and governance : Improving leadership, getting governance right, making security a board-level priority, measuring leading indicators to catch problems while they are still small, is more important than the development of tools and skills when it comes to cybersecurity and technology risk in digital business. Governance, data infrastructure, decision making, prioritization, budget allocation, awareness, budget allocation, reporting, transparency and accountability are key features to protect and run any business.
  2. Adapt to evolving threats: In today’s connected, information-heavy world, organizations across all sectors are facing not simply escalating risk, but the near-certainty that they will suffer an information security breach. IT department must overcome the challenge to prevent all threats and risk management. Gartner predicts that companies will spent 60% of cyber security budgets to early detect threats in 2020 instead of waiting for the last minute. Only a sharp focus on business structure, culture and risks will let you better safeguard the data essential to your organization’s survival and success and prevent all nightmares.
  3. Alignment of cybersecurity at the speed of digital business: Organizations that adopt digital go at a faster pace than traditional companies. So the same logic must go for security systems, with that being said, the traditional security system will stop working in the new era of digital innovation. Organizations must invest in their security system in order to innovate them to avoid all obstacles. Companies are increasingly reliant on digital data to drive their growth. The “bad guys” have recognized this, have fortified their techniques and are enjoying significant success; while the “good guys” are still trying to fight a modern war! Having a well-defined security program can help management make an informed choice about how to invest in security. All organizations able to successfully establish an ecosystem that protect and grow business will remain competitive.
  4. Explore the new era of cybersecurity: Before it was perhaps easier to protect data because they resided exclusively in the data center. New technologies are now overflowing data outside via the cloud and mobile etc. For example, in 2018, 25% of company’s data will come directly from IOT (=from mobile to the cloud), and by circumventing enterprise security controls. Organizations must now respond to the issues of cybersecurity and risks of technologies and assets that they no longer own or control.
  5. People and Process – Cultural Change: As companies support productivity through the rapid integration of bring your own device (BYOD), cloud computing and other aspects of total mobility, there is a corresponding increase in the risk to which the information located on or accessed via these channels is exposed. With the acceleration of digital business and the power technology gives individuals, it is now critical to address behavior change and engagement from employees to customers. Internal threats to information security run from the inadvertent (simple user error, loss of mobile devices) to the malicious (internal fraud, data theft). Cybersecurity must meet the needs of people through the process of change. People-centric security gives each person in an organization increasing autonomy in how he or she uses information and devices — and what level of security adopted when he or she uses it. The individual then has a certain set of rights in using technology and is linked to the group in the entire enterprise. The individual must also recognize that if things go wrong, it will have an impact on the team, group and business.

 

Sources: Special report – Cybersecurity at the Speed of Digital Business

Big Data, Big Problem?

In order to measure the progress of companies in the exploitation of their customer data, EY surveyed some known European companies. The purpose was to see the difference between the “buzz” generated by the fuzzy concept of big data and the reality of large companies. The results of this survey, conducted among more than 150 European companies, reveal that despite a largely positive perception, the “Big Data” hasn’t really taken place in reality unlike it has to be the case.
Let’s check the list below to know more about these issues that’s coming in the way of companies in order to integrate big data in their strategy.

 

Data collection via traditional channels:

Every businesses and organizations accumulate various type of data, such as financial information related to revenues and expenses, data about their customers, vendors and also about their employees. We’ve noticed that traditional file systems are still used by companies to gather data in order to increase their knowledge, understanding of customers, products and deploy marketing strategies. (Storing data in paper files, folders is a form of traditional system).

 

Unstructured data:

Companies collects huge volume of data and need valuable knowledge extracted from these data to improve their business results, still the survey reveals that 45% of respondents agrees that the data collected isn’t sufficiently exploited and only 27% of companies are equipped to manage and analyze the gathered data from many sources.

 

Analytical skills:

One of the top adoption challenges of big data is obtaining the skills and capabilities to interpret it. EY survey shows that for 70% of respondents, a team of less the 10 employees is dedicated to analyze the gathered data. Only 6% of companies have a staff of more than 50 dedicated people to decode useful information from the data.

 

A lack of data processing tools:

Good thing is that most of these large companies are aware of the progress of these unstructured data. 59% of respondents claim to anticipate an increase in the volume of data reliability within 18 months. At the same time, only 27% of them affirm that they have established internal processes to operate reliable or unstructured data.

 

Analysis of the data still (too) little predictive and real-time oriented:

Only 10% of companies operate their customer data for predictive purposes and 5% of them do it to optimize the technical process or to increase timeliness and increased storage capacities (key elements to exploit growing volumes and ever faster data and information flows).

 

The lack of mainstreaming in project management (Big) data:

39% of the respondents recognize that internal silos remain a drag on the optimal use of customer data. Each business has a habit of using and transforming data from its databases to meet its own goals or business issues, capital data cannot flow in the company, which explains the lack of a unified vision.

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The absence of ROI of Big Data projects:

Only 29% of respondents consider that the Big data is a major milestone and has the potential of big impact on business. As for the establishment of a “Big data Action Plan with concrete actions,” they are only 18% who actually did. Regarding the return on investment in particular, 58% of companies surveyed did not seek to quantify the contribution of solutions to their business performance. Again, the gap is huge between the most mature (77%) and “not mature” (3%).

 

Lack of sponsorship from the managing director:

The lack of ROI measurement, coupled with unfavorable economic conditions explain the caution of most CEO on the subject. The majority of small-medium size companies considered perception of top management as a brake on the optimal use of data within their business, 57% of them, against only 11% for the big size companies.

 

The reluctance to share personal data:

The issue related to data security, in which we can add the protection of privacy is the key to the future of the big data. The study of EY highlights that 70% of consumers are reluctant to share their personal data with companies and 49% say they are less likely to do so in the next five years.

 

Low awareness of safety issues and protection of data:

Among the companies EY surveyed, 30% believe they are not concerned with the protection of privacy issues during the operation of their customer data. 92.3% Companies, identified as the most mature in the Index EY Maturity Data, consider that the issue of protection of privacy is a priority. While for 58.6% of those who have been identified as less mature, don’t care about protection issue.

 

To resume:

Two-thirds of European companies (63%) consider that the big data is a valuable and interesting concept but still too vague, difficult to integrate within companies, in terms of organizational transformation, ROI strategy, management and training skills.

 

Even though big data is the petrol of this century, currently, half of the companies did not even studied any opportunities related to big data. Only 9% of companies surveyed have launched both the big data opportunity to study and put in place a comprehensive strategy to manage their customer data. Half of the respondents acknowledged that the absence of “a clear plan of action that constitutes a road map for the entire company” is an impediment to the optimal use of customer data. 57% of companies consider perception of top management as a brake against 11%.

 

The big data approach can be useful and beneficial for every businesses, but without a solid plan aligned with your business objectives you may miss out an elegant solution with a guaranteed return on investment.

Survey : Big Data and the IoT

Connected objects confront the Big Data to new needs, including the quick processing of multiple data sources from the Internet of Things. These levers of innovations are still at stages of maturity, but they represent a real potential for organizations.

 

The rapid development of the Internet of objects has made the data analytics more challenging due to processing and collecting data via different sensors contained in our connected objects. According to the report from IDC (International Data Corporation), the Big Data market will amount mora than $ 125 billion in between 2016-2019.

 

Future of IT: Big Data and Internet of Things are two sides of same coin and a recent study (January 2016) by Tech Pro search shows that Big data and the connected objects are an important economic growth driver via their collaboration in collection of valuable data. Even if they open the possibility of connecting people or objects more relevant, to provide the right information to the right person at the right time, or to highlight useful information for decision making, survey result demonstrate that large companies are more than twice as likely to integrate Big Data solutions than small businesses.

 

The promise of big data depends on the ability of a company to use a connected device to compile data, both internally and externally. Since Big data is a new source of economic value and innovation, the value of data evolves from initial use to future potential uses with higher added value, (all data are thus considered valuable by definition). Study shows that he cost of the analytical processing of big data is expected to decrease this year, allowing companies to collect valuable data more easily.

 

Topics studied in the survey :

  • Data collection via the Internet of Things related to the market place;
  • Data collection via the Internet of operations related data objects;
  • the budget and the number of employees dedicated to the Internet of Things;
  • data security;
  • the advantages and disadvantages of data collection for the Internet of Things.

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Who uses big data?

The first objective of survey was to assess where big data is in use by determining where implementations took place. The study shows that 29% of companies have deployed big data solution, against 61% who did not.

Implementation of Big Data

 

The size of the business is important, because large firms are much more likely to implement big data than small business. In fact, respondents in companies with 1,000 or more employees have implemented big data almost 1.5 times more than those who did not (49% against 35%), main while only a fifth of smaller companies have implemented big data. Three quarters of these companies haven’t any big data solution.

Big Data by company size

 

The region is also important. People whose business is established in the Asia Pacific region are more likely to have responded that their company had achieved an implementation of big data, 19% more than in Europe, which comes in second place. Conversely, the big data is rare in Central and South America.

Big Data by region

Who uses the Internet of Things?

As big data is associated with the Internet of Things, Pro Tech Research also sought to know who uses IoT to collect data relating to the operations or the market place. Only slightly more than a fifth (21%) of respondents say they use the internet of things and 35% plan to put it near future.

IOT

33% of respondents in companies with 1000 or more employees indicate having no current or planned implementation system of IoT, against 59%, 47% and 46% for other companies (ranked in descending sizes). Like the big data, large companies are more likely to have implemented or plan to establish an IoT system to collect internal and external data.

IoT and Big Data

However, it is interesting to note that unlike the big data, internet objects is less likely to be used not in small companies, but in the medium-sized companies (50-249 employees) and midcap companies (250 to 999 employees). This demonstrates that the Internet of Things is more rooted in small businesses as big data, while the reverse is true in both categories of intermediate size.

 

There’s no doubt that IoT is marked by the development of social networks, partnerships and complex interrelations, enabling the development of industrial processes, improvement in services quality and performance available to individuals and consumers. IoT feeds data and increases its value and volume.

 

To learn more about big data and the Internet of Things, download the full report TechProResearch, “Big Data and IoT: Benefits, Drawbacks, usage trends”.

 

Sources:

Research : Big Data and IoT – Benefits, drawbacks, usage trends

How you can benefit from using Big Data in your business operations

Big Data, it is above all a great opportunity for companies to innovate, grow their sales, profits and markets so they can grow their portfolio and also to create new jobs. For customers and consumers of these businesses, it is a guarantee of a better customer experience in all interactions with brands either in sales, marketing or at the customer service.

 

The idea of data creating business value is not new, however, to explain briefly why, today, only a “small portion” of the data – often digital marketing or customers data but also data collected from connected objects, various maintenance processes, product usage statistics – are actually exploited by companies. The main reason is that the collection, storage and operating correctly the gathered data cost very expensive for some companies. In fact more expensive than the apparent or immediate value generated by the exploitation of these data. Another reason is the fact that most organizations still aren’t enough competent to technically manage the huge flow of data that is generated by the above examples.

 

The big data approach is used to collect, store, and analyze all the data at much more reasonable cost than the traditional process thanks to new storage technologies. Big data technologies release organizations from the traditional accuracy vs. cost challenge by enabling them to store data at the lowest level of detail, keeping all data history under reasonable costs and with less effort if managed correctly.

 

BIG DATA

The benefit is that we can now consider to analyze and turn into actionable information, all the data that was once out of reach for both technical and financial reasons but the density of information contained in this new data is still less compared, for example, to conventional transactional data. But this problem is somehow compensated by the huge volume of data first, and especially the ability to cross-check them through statistical algorithms. So now, with a little help of experts in domain, companies have now the ability to exploit big data and to transform it into actionable knowledge then in make profit out of it. “The ability to exploit data correctly will define the difference between the losers and winners going forward,” says Tim McGuire, a McKinsey director.

 

In today’s hypercompetitive business environment, one of the biggest business challenges for companies is the importance of being able to find and analyze the relevant data they need, they must find it quickly.

 

Here a video that explains what’s Big Data in detail.

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Now that you’ve saw the video and read the above part, let’s check example of a company that has successfully used THE Big Data. ACCOR, one of the French leaders in the hotel industry, has significantly increased its hotel booking rates through the use of these techniques. The business challenge is based on real time offers and recommendations for online users company’s website.

 

Accor has always wanted to derive insights from information in order to make better, smarter, real time, factbased decisions and now thanks to the RTD solution of Oracle (Real Time Solution), ACCOR group achieved more benefits than before. The project is recent (2013) and is still rising and making benefits for the group.

 

In today’s highly interconnected global business environment, marketing departments are front of the most exciting challenges of Big Data in which customer insight is a top priority for organizations in all industries. The main challenge here is to develop, maintain and control a 360 ° view across all channels and points of interaction with the customers.

 

As Customer satisfaction is at the heart of the selling process for all companies, they must organize the marketing and operational processes around the data. This data must be transformed into knowledge by the analytical part of big data, especially must be operational and available for customer interaction usage.

 

What’s the future of Big Data?

 

futur of bigdata

The pursuit of information has been a human preoccupation since knowledge was first recorded. Talking about the future of big data is really vague and deep topic, because it’s very much a “here and now” phenomenon. Big Data is a major trend and is set to offer companies tremendous insight. Gartner describes big data as a situation where the volume, velocity and variety of data exceed an organization’s ability to use that data for accurate and timely decision-making”.
Organizations are increasingly realising the utility of data that is bringing the value through continuous improvements in their existing operations.

 

Many uses of Big Data are only in their infancy and we can expect to see a surge of uses that we have not even thought of yet today.

 

The Big Data is as important for business as the Internet in its time. Companies that won’t act now will may be overtaken in few years by the competition. It is best to start even a modest project quickly rather than waiting for the technologies and methods to stabilize because then it will be too late.

 

Big data innovation in the financial technology

Big data in banking sector

 

Did you knew that In Asia and the United States, It’s possible to calculate, within some minutes, the repayment abilities of individuals and small businesses by using their online public data, available information on their social networks and predictive control algorithm based on online data.

 

A new lending San-Francisco start-up “Affrim” founded in 2013 by co-founder of PayPal Max Levchin, helps e-commerce sites and online shoppers by giving the possibility of monthly payment for their purchases. Affrim offers affordable loans and purchasing advantage to Generetion Y, their target audience, because they use to do everything on digital platforms.

 
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Consumers and small enterprises based in the United States, China, Mexico, Colombia are already able to obtain a loan via their smartphones. “Applying for a loan using Affirm is as easy as putting in a shopper’s name, phone number, birthday and the last four digits of their social security number,” confirm Max Levchin. Thanks to big data, online credit acquisition is the second technological breakthrough after online banking.You must be wondering how does Affirm work? Well Affirm has developed a predictive algorithm which combines Big Data and machine learning based on information provided by the consumer or online information data which evaluates the applicant’s repayment capacity. By having access to all bank accounts of applicants, they are able to recover most part of data. “We’ve paid over $ 500 million and until now we haven’t had any default payment”, says Alan Cooper, head of marketing at Earnest, a startup in San Francisco since founded in 2013 specialized in low-cost lending for personal loans and refinance of student loans.

 

This is no secret that Big Data is being used in almost every sector and companies are getting full advantage out of it. Still now many companies are hesitating when it comes to implant big data, simply because they’re overwhelmed by the process of collecting the data via traditional channels, lack of analytical skills and/or unsure of what specifically they’ll be involved with. But don’t worry; Xorlogics is here to help you, with a 4 years proven experience in the field of Big Data, Cloud Computing, Web applications and Resource Augmentation.

 

Feel free to fill this form and our experience developers will contact you as soon as possible.

 

Women place in the digital industry

Tomorrow it’s 8th March means International Women’s Day. Perfect timing to talk about the place of women in the digital industry!

 BIGDATA WOMEN

Women associations and groups will meet tomorrow to reward them for their digital initiatives. You must be asking what’s the purpose of this event? Quite simple, these associations aim to increase the diversity and solve gender parity.

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