Cognitive Analytics

Tech Trends 2014
Inspiring Disruption
Tech Trends 2014 Snapshot
CIO as Venture Capitalist
Technical Debt Reversal
CIOs are borrowing from the playbooks of
venture capitalists and reshaping how they run
the business of IT
Understanding, containing, and mitigating
technical debt can be a platform for a renewed
level of trust and transparency with the business
Cognitive Analytics
Cognitive analytics offers a way to bridge the gap
between big data and the reality of practical
decision making
Industrialized Crowdsourcing
Today, technology makes crowdsourcing
possible on an industrial scale, with potentially
disruptive impacts on both cost and innovation
Digital Engagement
Social Activation
The power of social activation is unleashed when
others advocate an organization’s message in
their own words to their network
Cloud Orchestration
CIOs should be making deliberate investments in
developing advanced integration and data
management capabilities to support cloud-tocloud and cloud-to-core models
In-memory Revolution
With more and more parts of the business
becoming digital, the CIO has an opportunity to
build a new legacy for IT
The sweet spot for in-memory technology is
where massive amounts of data, complex
operations, and business challenges demanding
real-time support collide
Real-time DevOps
Wearables hold possibilities for driving down
costs and increasing competitiveness. What
could it mean for your organization?
Early adopters of real-time DevOps have the
opportunity to profoundly impact their IT shop,
accelerating IT delivery, improving quality, and better
aligning with the business
Artificial Intelligence  Robotics  Cyber Security  Additive Manufacturing  Advanced Computing
Exponentials represent unprecedented opportunities as well as existential threats. Explore five with far-reaching,
transformative impact.
CIO as Venture Capitalist
Thinking like venture capitalists to reshape business
Like venture capitalists, CIOs should actively manage their IT portfolio in a way that drives
enterprise value and evaluate portfolio performance in terms that business leaders
understand—value, risk, and time horizon to reward.
CIO as Venture Capitalist
Bits & Bytes
CIOs spend more than twice as much time as they’d like as an operator of IT services
and just over half the time they’d like on strategic IT initiatives 1
Gartner estimates that a “‘run the business’ focus often consumes up to 60% to 70%
of all IT spend, thereby starving innovation and the investments necessary to grow or
transform the business.”2
Garter states that “approximately 90% of enterprises fail to execute against their
strategies; the dismal track record behind strategy execution is not a failure of the
strategies themselves, but of enterprise-level program management”3
Lessons from the front lines
Growth and change – At Cisco, line-of-business CIOs actively manage a portfolio of
assets with an understanding of cost, return, risk, and strategic importance
A view from the Valley – Hummer Winblad Venture Partners provides a VC
perspective on how CIOs can shift focus from cost, compliance, and maintenance to
being in the business of “new.”
CIO Journal by Wall Street Journal, “The four faces of the CIO,” October 28, 2013,, accessed
December 19, 2013.
2 Colleen M. Young, The CIO’s role in executing enterprise strategy, Gartner, Inc., November 21, 2013.
3 Ibid.
CIO as Venture Capitalist
Where do you start?
Inventory your portfolio: Consider technology procured inside and outside of IT
Evaluate your portfolio: Define the risk, value, and strategic importance of each item
Double down on winners: Take intelligent risks, and be prepared to pull the plug
Direct line of sight to revenue: Vet technologies & discuss investments with the business
Bottom line
There’s a lot to learn from the portfolio mindset that VCs bring to their work:
balancing investments in legacy systems, innovation, and even bleeding-edge
technologies; understanding—and communicating—business value; and aligning
talent with the business mission. Venture capitalists operate in a high-stakes
environment where extraordinary value creation and inevitable losses can coexist
inside a portfolio of calculated investments. So do CIOs.
Cognitive Analytics
Applying technology to enhance human decisions
Inspired by how the human brain processes information, draws conclusions, and codifies
instincts and experiences into learning, it is now possible for machines to learn from
experience and to penetrate the complexity of data to identify associations.
Cognitive Analytics
Bits & Bytes
The volume of unstructured data is growing by 62% a year1
The Human Brain Project aims to build a working model of the brain by 2023 using
neuromorphic computing, or machines that learn like the brain2
Lessons from the front lines
Changing the world of health care – As part of an integrated ecosystem, WellPoint
used cognitive analytics to provide patient treatment recommendations
Coloring outside the lines – Qualitative data transformed into actionable insights
drove design changes for one consumer goods company
Intelligent personal assistants – New companions have factored in past behavior
and preferences when responding to commands
Safeguarding the future: Energy well spent – Curtiss-Wright endeavored to
improve power plant safety through use of a predictive intelligence system which can
foresee future issues
HP Autonomy Whitepaper: Transitioning to a New Era of Human Information,
Cognitive Analytics
Where do you start?
Start small: Prototype a cognitive analytics platform with the cloud & open-source tools
Plant seeds: Invest in next-generation data scientists & business domain knowledge
Tools second: Explore what you have as tools evolve and consolidate
Context is king: Decide which domains to target and work through a concept map
Don’t scuttle your analytics ship: Supplement, don’t replace, traditional analytics
Divide and conquer: Break initiatives into small, accessible projects
Know which questions you’re asking: Stay grounded in the business “so what”
Explore ideas from others: Look outside your company and industry
Bottom line
As the demand for real-time support in decision making intensifies, cognitive
analytics can help businesses address some key challenges: It can improve
prediction accuracy, provide augmentation and scale to human cognition, and allow
tasks to be performed more efficiently (and automatically). Cognitive analytics offers
a powerful way to bridge the gap between the promise of big data and the reality of
practical decision making.
Industrialized Crowdsourcing
Harnessing the power of the crowd
Enterprise adoption of the power of the crowd allows specialized skills to be dynamically
sourced from anyone, anywhere, and only as needed. Companies can use the collective
knowledge of the masses to help with tasks from data entry and coding to advanced
analytics and product development.
Industrialized Crowdsourcing
Bits & Bytes
Goldcorp is a mining company that shared its top-secret geological data with the
crowd, offering $500,000 for finding six million ounces in untapped gold. This
$500,000 investment yielded $3 billion in new gold in one year1
The number of people online is projected to increase from 2.4 billion today to 5 billion
by 20202
Lessons from the front lines
Crowding store shelves – One retailer used Gigwalk to improve processes and reduce
the risk of lost sales
Crowd wars: The “fan”tom menace – Pringles teamed up with Star Wars to launch a
Tongal-enabled contest for fans to design the next Pringles television commercial
Civic crowdsourcing – The cities of Boston and Chicago and the Khan Academy
crowdsourced tools and services at a fraction of the cost of traditional approaches
Have patents, will innovate – GE partnered with Quirky for product development and
innovation recommendations, shortening invention timelines from years to weeks
Diamandis, How a $500K investment netted $3 billion in one year, February 13, 2013,, accessed January 7, 2014.
2Doug Gross, "Google boss: Entire world will be online by 2020," CNN, April 15, 2013,, accessed
January 20, 2014.
Industrialized Crowdsourcing
Where do you start?
Scope: Focus on a clear and specific problem to solve
Focus on gaps: Identify and target gaps in your organization’s abilities
Keep an open mind: Let your employees orchestrate the crowd
Get ready for what’s next: Start thinking now about policies and processes
Bottom line
Crowdsourcing is still in its early stages, but today’s online platforms are
sophisticated enough to provide substantial benefits in solving many kinds of
problems. It’s important that your organization has the ability to embrace new ideas
that may be generated by your crowdsourcing initiatives. That means industrializing
not just for scale and reach but also for outcome.
Digital Engagement
Reshaping and rewiring the customer experience
Digital engagement involves using technology to design more compelling, personally
relevant, engrossing experiences that lead to lasting, productive relationships, higher
levels of satisfaction, and new sources of revenue.
Digital Engagement
Bits & Bytes
In 2013, for the first time, US adults spent more time online and on mobile devices
than consuming TV, radio, or print1
The media and entertainment industry has been leading the charge 2
In the longer term, 3D printing may bring about a rise in digital-only products that can
be downloaded and produced by customers
Lessons from the front lines
The one-stop digital shop – Adobe transformed its website into a seamless product
marketing & e-commerce site, increasing revenue by 39 percent since the project started
Driving new savings, sales, and loyalty – A leading auto manufacturer identified tens of
millions of dollars in potential savings with a new, global digital marketing approach
Calling all content – Verizon launched its Digital Media Services division to provide a
digital media supply chain solution for media and entertainment companies
Reimagining the online experience – Intel re-architected its existing website to create
an engaging, innovative, and scalable experience for its users and vendors
1 Emarketer,
"Digital set to surpass TV in time spent with US media,", accessed December 19, 2013.
2 Deloitte Development LLC, 2014 outlook on media and entertainment: Interview with Gerald Belson,, accessed December 31, 2013.
Digital Engagement
Where do you start?
Web, mobile and social content enablement: Engage seamlessly across channels
Self-service and governance: Mix global control with localization
Ease of access: Make content easily accessible across multiple channels
Digital IP and asset management: Proactively plan for digitalization
Cost reduction: Streamline the distribution and management of digital content
Bottom line
Beyond efficiency and cost savings, digital engagement presents new ways to
enhance customer loyalty and competitive advantage – riding the wave of changing
behaviors and preferences for contextual interactions. And with more parts of the
business becoming digital, the CIO has the opportunity to build a new legacy for
IT—a responsive, forward-looking organization, an enabler of innovation, and a
driver of digital engagement.
Enabling businesses with digital information
Hands-free, heads-up technology has the potential to reshape how work gets done, how
decisions are made, and how you engage with employees, customers, and partners.
While consumer wearables are in the spotlight today, we expect business to drive
acceptance and transformative use cases.
Bits & Bytes
Deloitte predicts that smart glasses, fitness bands, and watches should sell about 10
million units in 2014, generating $3 billion1
Gartner predicts that worldwide revenue from wearable electronic devices, apps, and
services for fitness and personal health is anticipated to be $1.6 billion in 2013
increasing to $5 billion by 20162
Lessons from the front lines
A new vision for training – CraneMorley’s training software delivered via smart
glasses allowed car dealership salespeople to learn vehicle technology on the go
The doctor is in (your stomach) – Medicine usage and health is tracked through a
system that includes both a body-worn patch and a small ingestible sensor
Wearable wardrobe – A large range of products from smart socks to sensing diapers
are driving the “quantified self” movement
Hands-free patient care – Philips Healthcare explored how surgeons could use a
headset display to view a patient’s vital signs or medical history hands free
Deloitte Consulting LLP, TMT Predictions 2014, 2014.
Angela McIntyre and Jessica Ekholm, Market trends: Enter the wearable electronics market with products for the quantified self, Gartner, Inc., July 1, 2013.
Where do you start?
Imagine “what if”: Identify advances if workers had data at the moment they need it
Kick the tires: Experiment with platforms and organizations
Become an early adopter: Team with manufacturers to explore possibilities
Simplify. Simplify. Simplify: Create “glanceable” awareness of information
Anticipate data and device management: Consider how to manage these devices
Engage the workforce: Ask employees to participate in the imagination process
Bottom line
As consumer devices, wearables represent a very personal buying decision in
which aesthetics and fashion are almost as important as function. But in the
workplace, experience and engagement matter. Rethink how work could get done
with the aid of an ever-present computing device that delivers the desired
information when it’s needed.
Local Ratings
Industrialised Crowdsourcing
Digital Engagement
Cognitive Analytics
CIO as Venture Capitalist
Very Ready
Not Ready
Technical Debt Reversal
Reversing technical debt to support growth
For most organizations, technical debt comes with the territory, an unavoidable outcome
of decades of technology spend. Understanding, containing, and mitigating technical debt
can be a platform, not only for a stronger IT foundation, but for a renewed level of trust
and transparency with the business.
Technical Debt Reversal
Bits & Bytes
An average of $3.61 of technical debt exists per line of code, or an average of more
than $1 million per system1
Gartner states that current global IT debt is estimated to stand at $500 billion, with the
potential to rise to $1 trillion by 20152
Lessons from the front lines
Countdown to zero technical debt – NASA’s approach to mitigating technical debt
gives new life to a mission to Mars
Express delivery of quality – USPS improved application quality and implemented
project standards to remediate technical debt
Cleaning up shop – DB Systel employed development tools to detect architectural
risks and correct them accordingly
Combating system complexity – A technical maturity analysis and subsequent
rationalization effort by the Military Health System saved the organization over $50M
Andy Kyte, “Measure and manage your IT debt,” Garner, Inc., Originally released August 9, 2010 and last reviewed June 19, 2013;
Technical Debt Reversal
Where do you start?
1 Assess the status of code for all significant investments: Calculate your debt
2 Find out how future investments are dependent on your legacy systems: Consider
whether your architecture is ready for new initiatives.
3 Think through the availability of talent to support debt remediation: Factor talent
into your debt analysis to define priorities and timelines
4 Hold developers accountable: Consider rewarding developers on the quality of code
5 Spread the wealth (and the burden): Use communities to identify and address debt
6 Determine your debt repayment philosophy: Accumulation should be a conscious
Bottom line
While it’s important not to get obsessed with technical debt, it’s also critical to
understand and plan for it. Every new project automatically comes with technical
debt as a cost of doing business. Reversing technical debt is a long-term
investment, but if left unaddressed, it can bankrupt your ability to build for the future.
Social Activation
Not just passive monitoring—it’s active influencing
Companies can activate their audiences to drive their messaging outward – handing them
an idea and getting them to advocate in their own words to their own networks through
social channels.
Social Activation
Bits & Bytes
69% of executives thought social business would be critical to their organization in the
next three years1
27% of global time spent on the Web is via a social media channel2
84% of global respondents of a recent Nielsen study trust word-of-mouth
recommendations from friend and family – the most highly rated among digital and
traditional methods3
Lessons from the front lines
Community outreach – Parallels cultivated a passionate community of customers
through its “influencer” and “advocate” programs
The social TV experience – FOX launched an engaging second screen experience
using social media and the voices of its dedicated viewers
Unleashing the power of social – Hartz introduced a multifaceted social media
strategy designed to educate and foster relationships with pet enthusiasts
MIT Sloan Management Review in collaboration with Deloitte University Press, Social business: Shifting out of first gear,,
accessed December 31, 2013.
2 Experian, Experian Marketing Services reveals 27 percent of time spent online is on social networking,, accessed December 31, 2013.
3 Nielsen, Global trust in advertising and brand messages,, accessed
December 31, 2013.
Social Activation
Where do you start?
Focus: Avoid extending initial efforts across too many desired outcomes
Insight: Understand existing communities, channels, and content
Perception: Uncover what people really think and feel about your brand
Audience: Gather, monitor, and enlist targeted community members over time
Campaigns: Focus on the ideation, creation, and monitoring of social experiences
Bottom line
Social can drive real business performance through measurable, sustainable
results, but it requires a shift in mindset – with a focus on perception, engagement,
and activation. In today’s recommendation economy, educating and empowering
your audience can lead to impactful, long-lasting results.
Cloud Orchestration
A new class of cloud offerings
CIOs should be making deliberate investments in developing advanced integration and
data management capabilities to support cloud-to-cloud and cloud-to-core models. Build
the components to orchestrate the cloud today, and you’ll be ready to adopt more
compelling services tomorrow.
Cloud Orchestration
Bits & Bytes
Forrester predicted that by the end of 2013, enterprises will use an average of 9.6
software-as-a-service (Saas) applications1
A recent Gartner survey shows that over 70% of organizations that are using or
planning to use cloud services expect internal IT organizations to assume the role of
cloud services broker2
Lessons from the front lines
Hybrid high tech – A software and hardware company created disciplines around
cloud-to-cloud and cloud-to-core integration: tools, architectural standards, and a
dedicated team to drive growth and adoption
Linking the network – LinkedIn integrated a cloud-based platform to enhance sales
and CRM capabilities and build a scalable solution for future orchestration
Orchestrated banking – SunTrust Banks sought an integrated, scalable cloud
solution to expedite the delivery of services to customer – and pave the way for future
cloud adoption
Espresso with a shot of cloud – Nestlé Nespresso SA transformed its home-grown,
complex ERP system with a more scalable architecture and integrated cloud solution
Stefan Ried, The Hybrid² integration challenge, Forrester Research, Inc., May 1, 2013,, accessed December 31, 2013.
2 Michele Cantara, Hype cycle for cloud services brokerage 2013, Gartner, Inc., July 31, 2013 (revised October 28, 2013).
Cloud Orchestration
Where do you start?
Petition for a new cloud business model: Voice opinions on pricing & orchestration
Build an integration foundation: Lay the groundwork for a cloud-to-core environment
Connect the dots: Understand how each application defines its dataset
Read the fine print: Understand your rights to data ownership, portability, and migration
Build a strong chain: Consider the performance of each cloud service in the process
Explore edge architecture: Connect enterprise core, private, and public offerings
Bottom line
As enterprises use disparate cloud offerings to handle critical business processes,
the desire to link these offerings to core legacy systems and data grows. CIOs who
have the disciplines of data management and integration architecture in place will
be positioned to create harmony out of the existing landscape and to leverage
orchestration services when they arrive.
In-memory Revolution
Crunching massive amounts of data in real time
As in-memory technologies move from analytical to transactional systems, the potential to
fundamentally reshape business processes grows. Technical upgrades of analytics and
ERP engines may offer total-cost-of-ownership improvements, but potential also lies in
using in-memory technologies to solve tough business problems.
In-memory Revolution
Bits & Bytes
With the removal of disc I/O, in-memory vendor claims vary from a thousand-fold
improvement in query response times1 to transaction processing speed increases of
20,000 times2
The shift from physical to logical data storage reduces the hardware footprint, allowing
more than 40 times the data to be stored in the same finite space3
Lessons from the front lines
Communicating at light speed – T-Mobile US, Inc. enlists a multi-channel approach
to connect with customers made possible with in-memory technology
Reinventing production planning – A leading aerospace company used in-memory
computing to increase on-time delivery by 45%
Drilling for better performance – Pacific Drilling tracked performance using a single
in-memory data platform for both advanced analytics and an upgraded ERP system
Next-generation ERP – SAP and Oracle take on in-memory updates
Neil McAllister, “Oracle's Ellison talks up 'ungodly speeds' of in-memory database. SAP: *Cough* Hana,’ The Register, September 23, 2013,, accessed January 2, 2014.
2 Hey SAP, SAP HANA® performance: Efficient speed and scale-out for real-time business intelligence,, accessed January 2, 2014.
3 Eric Savitz, "IT revolution: How in-memory computing changes everything," Forbes, March 8, 2013,, accessed January 2, 2014.
In-memory Revolution
Where do you start?
Understand what you’ve already bought: Define benefits and gaps
Push the vendors: Get them thinking about – and investing in – solutions you can use
Ask for roadmaps: Ask product developers for detailed roadmaps to guide the future
First stop: analytics: Find immediate opportunities by fueling advanced analytics
Focus on one or two capabilities: Prioritize high-potential functions for buy-in
Watch competitors: As competitors experiment, be ready to adopt new capabilities
Bottom line
On one hand, in-memory technology enables significant gains in speed, with
analytics number-crunching and large-scale transaction processing able to run
concurrently. At the same time, it has opened the door to real-time operations, with
analytics insights informing transactional decisions at the individual level in a
virtuous cycle. The result? Opportunities for continuous performance improvement
are emerging in many business functions.
Real-time DevOps
Empowering the business of IT
Real-time DevOps bridges the gap between development and operations, supercharging
the investments that currently exist in siloed automation by integrating the end-to-end
delivery model.
Real-time DevOps
Bits & Bytes
Gartner “found that only one-third of companies surveyed were either in-process or
planning to implement DevOps, and close to 44 percent of respondents were still
trying to figure out what DevOps means.1
A survey of 1,300 Senior IT decision makers revealed that only 39% had already
invested in DevOps2
Lessons from the front lines
A new policy for IT – A leading insurance company centralized its application
development center and created a services-based IT model
Moving at the speed of commerce – John Lewis PLC launched a new e-commerce
platform with the help of increased communication between operations and
development teams
Supporting IT’s health and well-being – West Virginia’s Department of Health and
Human Resources adopted automated build and deployment processes to better
support its mission
A healthy dose of collaboration – A leading healthcare provider streamlined
collaboration across its enterprise to accelerate delivery of new business solutions
Laurie F. Wurster, et. al., “Emerging Technology Analysis: DevOps a culture shift, not a technology,” Gartner, Inc., August 8, 2013.
Computer Associates, "TechInsights report: What smart businesses know about DevOps,", accessed January 3, 2014.
Real-time DevOps
Where do you start?
Establish the need: Conduct benchmarking to identify areas for improvement
Build new skills: Develop your core team’s hard and soft skills
Employ services thinking: Break down complex systems into modular services
Lay down the bases: Begin automating individual components
Connect the dots: Link components into a stream of continuous integration
Get vendors on board: Build on vendor successes to accelerate improvements
Make the leap to test-drive or behavior-driven design: Move from build-to-run to
8 Look beyond cost & speed: Recognize benefits from enhanced delivery models
9 Commit: Make hard changes instead of falling for one-off, surface-level investments
Bottom line
By arming IT with the tools to automate and integrate their core disciplines, realtime DevOps has the opportunity to profoundly impact the IT shop – accelerating IT
delivery, improving quality, and better aligning IT with the business.
Local Ratings
In-Memory Revolution
Technical Debt Reversal
Real Time DevOps
Cloud Orchestration
Social Activation
Very Ready
Not Ready
AI can simulate
reasoning, develop
knowledge, and
allow computers to
set and achieve
The next robotics
frontier is machines
which can perform
tasks that involve
gathering and
interpreting data in
real time
Companies should
be prepared to
survive in an
environment where
threats by cyber
criminals are
Breakthroughs in
speed, resolution,
and reliability
potential not only for
scale, but also for
unlocking new
The combination of
computing and
network advances
result in profound
civic and
This publication contains general information only and Deloitte is not, by means of this publication, rendering accounting, business, financial, investment, legal,
tax, or other professional advice or services. This publication is not a substitute for such professional advice or services, nor should it be used as a basis for any
decision or action that may affect your business. Before making any decision or taking any action that may affect your business, you should consult a qualified
professional advisor. Deloitte shall not be responsible for any loss sustained by any person who relies on this publication.
For more information on the contents, case studies, and next steps featured in this presentation, please reference the full Tech Trends 2014 Report.
As used in this document, "Deloitte" means Deloitte Consulting LLP, a subsidiary of Deloitte LLP. Please see for a detailed
description of the legal structure of Deloitte LLP and its subsidiaries. Certain services may not be available to attest clients under the rules and regulations of
public accounting.
Copyright © 2014 Deloitte Development LLC. All rights reserved.

similar documents