Accenture Tech Vision for 2013 by mohmed5742


									Accenture Technology Vision 2013
Every Business Is a Digital Business
Contents                           Accenture Technology Vision 2013


Foreword                      3

Introduction                  4

Relationships at Scale        6

Design for Analytics          18

Data Velocity                 32

Seamless Collaboration        42

Software-Defined Networking   52

Active Defense                63

Beyond the Cloud              77

Conclusion                    87

Research Methodology          90

End Notes                     91

Contacts                      97

Foreword                                                                                                                              Accenture Technology Vision 2013


Technology is intertwined in nearly       merely technology. We describe        consumers, to further differentiate
every aspect of business today,           the important technology trends       themselves in the marketplace, and to
with information technology fast          affecting organizations in both the   expand their global footprint.
becoming a primary driver of market       public and private sectors, and we
differentiation, business growth, and     suggest that these changes signal a   We hope that you find the Accenture
profitability. That is why we believe     broader transformation in the role    Technology Vision insightful as you
that understanding the technology         of technology and in the business     consider strategies for making your
trends that are changing the world        models that will be required          organizations even more relevant in a
as we know it extends well beyond         for success.                          digital world. We wish you all the best
the realm of IT executives—to COOs,                                             in your journey.
CMOs, and CEOs. As leaders, it is our     We further propose that the time
collective responsibility to grasp the    is now for leaders to act, in terms
importance of technology and to use       of understanding the power of
it to deliver tangible business results   new technologies and having the
for our stakeholders.                     foresight to adopt them. Around the
                                          world, we see organizations using
The theme of this year’s Accenture        the technologies described in the
                                                                                Pierre Nanterme                           Marty Cole
Technology Vision is Every Business       Accenture Technology Vision to adapt
                                                                                Chairman & CEO                            Group Chief Executive - Technology
Is a Digital Business, and we see         to a rapidly changing environment,
                                                                                Accenture                                 Accenture
it as a forecast for business, not        to transform their relationships with

Introduction                                                                                                                           Accenture Technology Vision 2013

Every Business Is a Digital Business
Technology is changing the game

Enterprises have spent the last        our enterprise, but it’s gone further    we innovate and expand                      We no longer have to look far for
25 years working to peel away          than that. IT has become a driving       our business.                               examples. Here is Nike using wireless
the nonessential pieces of their       force, in many situations the driving                                                sensors and Web technology to create
businesses; focus on the core,         force, for how we effectively grow       There is a higher order of thinking—a a performance-tracking system that
outsource the rest. But in this        our companies. Every industry is         digital mindset—that will, we believe, allows it to create new services to
push to simplify, many companies       now software driven; as such, every      separate tomorrow’s most able               monitor, and to improve and create
have relegated IT to “keeping the      company must adopt IT as one of          organizations from their lesser rivals. new training routines for athletes.
lights on.” Without information        its core competencies. By this we        Accenture observes that increasing          There is Ford, using sensor data to
and technology, a business is blind    mean that software is absolutely         numbers of farsighted organizations monitor both how a car operates and
in today’s digital world. You must     integral to how we currently run         are recognizing IT as a strategic asset the driver’s behavior, and seeking to
change the way you think about IT      our businesses as well as how we         with which they can renew vital             apply analytics to improve the
to map a clear path forward.           reimagine our businesses as the          aspects of their operations—optimizing experience for the next generation. i
                                       world continues to change—how we         at least and innovating at best. As
Every business is now a                redesign and produce things, how we      such, they are investing in the digital These companies, and many more
digital business.                      create and manage new commercial         tools, the capabilities, and the skills     like them, clearly see digital as
                                       transactions, how we begin to            to more easily identify useful data,        a strategic imperative—a tool of
The world has already changed          collaborate at unprecedented levels      evaluate it, excerpt it, analyze it, derive competitive intent. They aren’t
around us, and IT is driving much of   internally and with customers and        insights from it, share it, manage it,      waiting for new technologies to be
the transformation. IT is a minimum    suppliers. In the new world, our         comment on it, report on it, and,           developed or to mature before they
standard for how we effectively run    digital efforts will be the key to how   most importantly, act on it.                act. Nor should you.

Introduction                                                                                                                            Accenture Technology Vision 2013

The obligation for action is all        over the horizon at the emerging         hotel business. But ideally, a digital   the best in its sector unless it
the more pressing because the           developments in technology that          mindset will enable enterprises to       excels at understanding and
technologies to transform your          should be added to the list of           launch preemptive strikes of             using technology.
business are here and now. They are     technologies the enterprise should       their own.
already good enough. Mobile, cloud,     be prepared to take advantage of,                                                 Your stakeholders may not yet be
social, virtualization, big data—many   from data visualization solutions        It is incumbent upon the executive       probing into how your top team
of the items continuously listed as     and software-defined networks to         leadership team to be stewards           views IT. But it won’t be long before
“hot trends”—are quickly becoming       moving-target-defense security           of this new mindset. They must           they do.
part of the current generation of       systems. Just as importantly, though,    recognize that it’s no longer possible
technology; they are well past the      this year’s report communicates why      to separate “the technology”
point where they should be areas        every organization has to adopt a        from “the business”; the two are
of exploration and experimentation      digital mindset. At the very least, it   too tightly intertwined. IT helps
and are quickly becoming the tools      is necessary in order to anticipate      redesign the company’s products
with which companies can craft fast,    and respond to ongoing technology-       and supports its processes; it drives
cost-effective solutions to some        driven disruptions.           its supply chains; it becomes part
of their toughest problems—and          has disrupted retail sectors far         of the products themselves and
greatest opportunities.                 beyond books and changed the             creates new ones; it allows access
                                        whole discussion about who “owns”        to new consumers; it provides
As it has always done—as is its         IT. Similarly, Airbnb is sparking a      the frameworks to create net new
charter—our Technology Vision looks     transformation in the traditional        services. An organization cannot be

                             Accenture Technology Vision 2013

Relationships at Scale
Moving beyond transactions
to digital relationships
Trend 1. Relationships at Scale                                                                          Accenture Technology Vision 2013

Relationships at Scale

Businesses need to rethink their digital strategies to move beyond e-commerce and marketing. Although
mobile technology, social networks, and context-based services have increased the number of digital
connections with consumers, most companies are still just creating more detailed views of consumers,
consumer attributes, and transactions. Individually, these connections may represent new types of user
experiences, even new sets of sales channels—but that’s not the real opportunity. Taken in aggregate,
digital represents a key new approach to consumer engagement and loyalty: companies can manage
relationships with consumers at scale.
                                                    It is time for businesses to return      and with the introduction of IT.
                                                    their attention to their relationships   Handcraftsmanship was replaced by
                                                    with consumers. Business success         mass production. Advice delivered
                                                    has always been built on relationships   over the counter was replaced by
                                                    and on the relevance of products         global call centers. A human face
                                                    and services to buyers’ needs. Just      making a sale was often replaced by
                                                    a few generations ago, consumers         a Web page.
                                                    were often friends—and certainly
                                                    neighbors—of the local grocer,           That might imply that a growing
                                                    pharmacist, and everyone else who        distance between companies and
                                                    provided the things consumers            consumers is inevitable—and over the
                                                    needed. But that model changed           last few decades, many consumers
                                                    with large-scale industrialization       might agree that they have been

Trend 1. Relationships at Scale                                                                                                     Accenture Technology Vision 2013

treated with greater indifference and    Specifically, enterprises are
far less personal attention.             customizing the experience for

Yet now, the opposite is true:
                                         every interaction they have with
                                         consumers regardless of the channel.
                                                                                   “ Consumers are more than cookie file or
                                                                                     transactions, more than a
                                                                                                               faceless digital
technology is finally at a point         This mass personalization includes
where buyers can be treated like         not only the interactions that
                                                                                       a transaction history or a demographic
individuals again. Consumers             companies have with consumers but             profile; they’re real people with real
are more than faceless digital           the interactions that consumers have
transactions, more than a cookie         with each other. The potential payoff
file or a transaction history or         is two-pronged: a relationship with
a demographic profile; they’re           the consumer your competitors don’t
real people with real differences.       have and a differentiated brand.        from those insights; by maintaining   shoppers are in the store, offers
Companies now have rich channels                                                 integrated communications across      can be personalized in such a way
through which to communicate with                                                both physical and virtual channels,   to provide not just a digital offer
consumers in a much more personal                                                enterprises can use insight from      but an offer that is relevant to
way. Farsighted organizations are        Learning more than                      digital channels to improve service   what shoppers are looking at in the
seeing a golden opportunity to use       ever before                             in in-store situations as well.       physical store at that moment.
mobile communications channels,                                                  For instance, Catalina, a global
social media, and context-based          Businesses now have new ways to         marketing company, is using           These digital interactions allow
services to create truly personal        learn about consumers based on          consumers’ in-store location,         companies to capture, measure,
relationships with consumers—but         increasingly digital interactions,      determined by the product QR codes    analyze, and exploit social
digital relationships this time—and to   whether through e-mail, social          they scan, along with consumers’      interactions in new ways. By
leverage those relationships to drive    media, Web pages, online chat,          profiles to generate offers as        simply being digital in nature, the
revenue growth.                          mobile apps, or tweets. And it’s not    they shop for groceries.i With the    interactions allow enterprises to
                                         just online interactions that benefit   understanding of exactly where        actually measure the results of

Trend 1. Relationships at Scale                                                                                                 Accenture Technology Vision 2013

their sales and marketing efforts, past transactions to inform current    Consumers aren’t just                    they’re travel guides. And, thanks to
scaling them when they succeed and conversations, using context to move   buyers any longer                        mobility, they can do it where they
scotching them when they fail.     from transactions to interactions,                                              want, when they want.
                                   and ultimately using their consumer    Key to making this transition is
Using analytics can also establish insight to infuse the interactions     understanding that consumers aren’t      The Cleveland Indians, a Major
deeper consumer insights,          with greater engagement and            just buyers anymore—they’ve evolved      League Baseball team, is actively
allowing companies to create more  intimacy.                              into connected consumers. They’re        working to use its relationships
compelling user experiences. This                                         connected to social networks. They’re    with its most avid fans to create a
concept of mass personalization                                           connected to like-minded consumers.      group of evangelists to promote the
enables businesses to customize                                           They’re connected to brands. That        team. The Indians’ Social Media Club
every interaction. Essentially,                                           means they also have the potential       incents fans to create a buzz about
they can begin to establish a                                             to be your advertisers. That’s a         the team through a myriad of social
relationship with consumers, using                                        powerful constituency to tap into.       channels, from Facebook to Tumblr.
                                                                                                                   More than just pointing fans to social
                                                                          Thanks to social media, consumers        forums, they are actively incenting
                                                                          have more opportunities than ever        them to participate, offering ticket
                                                                          before to express likes, dislikes, and   discounts and, for active posters,

      “ Using analytics canallowing companies
        consumer insights,
                            also establish deeper                         recommendations. They aren’t simply
                                                                          purchasing a product or service—
                                                                                                                   chances to be invited to a special
                                                                                                                   Social Suite in the ballpark and to
                                                                          they are doing a lot more. On Yelp,      share their comments about the
            to create more compelling user                                they’re detractors or cheerleaders.      game.
                                                                          On and Menuism,
                                                                          they’re reviewers and advertisers. On    This paradigm brings immediacy to
                                                                          Spotify, they’re DJs offering music      social conversation—consumers have
                                                                          recommendations. On TripAdvisor,         the ability to bring friends together

Trend 1. Relationships at Scale                                                                                                          Accenture Technology Vision 2013

to share experiences and to report on   to be highly personalized. They expect        Even watching TV is changing.          them. More important, they have
those experiences. These technologies   to be given the ability to get pertinent,     Accenture research shows that          the opportunity to use these new
have permanently altered the ways in    contextual information that relates           more than 40 percent of consumers      attitudes and technologies to create
which consumers share information,      to their lives, their friends, their needs,   are showing increasing “second         relationships, which will result in
collaborate, interact, entertain        and their pursuits. And because the           screen” habits, using a smartphone     customer acquisition and, for current
themselves, inform themselves, and      experience is personalized it’s also          or tablet while watching TV such       customers, repeat sales.
maintain awareness of events around     more powerful. Ninety-two percent             that they are accessing multiple
them. Enterprises need to recognize     of consumers globally say they                streams of information at the same
the change and begin to harness it.     trust earned media, such as word-             time.iv This could mean tweeting on
                                        of-mouth endorsements or                      a smartphone while watching a TV       Moving the mindset
All of this contributes to a new        recommendations from friends                  drama or viewing players’ statistics   from transactions to
standard among consumers: they          and family, above all other forms             while watching sports. For the 2011–   relationships
expect the mobile and social experience of advertising.iii                            2012 season, the National Hockey
                                                                                      League deployed an online game to    The goal is to use insight to
                                                                                      be played while watching the Stanley change communication with
                                                                                      Cup finals; fans won points by       consumers from transactions to
                                                                                      correctly predicting outcomes on the interactions to an unprecedented
                                                                                      ice, like the result of a face-off.  level of relationship and loyalty—
                                                                                                                           the equivalent of frequent-flier
                                                                                      Based on these new behaviors,        programs on steroids. The problem
                                                                                      businesses face several related      is that, until now, most enterprises
                                                                                      opportunities: Because many of these have viewed online channels
                                                                                      networks are public, companies have primarily as a way to reduce costs,
                                                                                      an unprecedented opportunity to      not improve relationships. It’s time
                                                                                      track what people are saying about   to shift that mindset.

Trend 1. Relationships at Scale                                                                                                Accenture Technology Vision 2013

Consumers are already having          It’s time for enterprises to reimagine
conversations about enterprises       their consumer engagement
among themselves. Fueled by every     strategy. Too many are still stuck in
new consumer service and every
new user experience, consumer
                                      the days of ads and focus groups.
                                      When they want to communicate
                                                                                 “      It’s time for enterprises to reimagine
                                                                                        their consumer engagement strategy.
behaviors have changed far faster
than businesses. Facebook, eBay,
                                      to consumers, they broadcast a
                                      message through their marketing
Yelp, Foursquare, and many other      channels, and when they need to
companies in effect continue to       hear back, they bring together a
train huge segments of consumers      representative group from which
to communicate among themselves,      they can extrapolate insights.         That new consumer-engagement        unified consumer strategy across
outside the purview of businesses,                                           strategy will require aggregated    all channels. Siloed approaches
coming back to a business site only   Today, the channels are increasing     insight across applications so that erode the value of integrated
to conduct final transactions.        (think YouTube, Twitter, customer      each channel feeds information      customer interactions. Burberry,
                                      service chat) and consumer             into a holistic view of consumers.  for example, jointly developed an
Companies may not be able to, and     insight can come from a much           That means more collaboration       application with SAP that places
frankly shouldn’t, take complete      wider sample of consumer and           across sales and marketing and      all the consumer information
control of the conversations their    information sources: the Web,          across digital and physical sales   Burberry has from its separate
consumers are having in these new     mobile technology, social-             channels, and even the ability to   customer channels in the hand of
electronic storefronts and plazas.    media sites, and others. But it’s      track and acquire information       its sales associates.v In the store,
But they do need to figure out how    important to remember in this          beyond the business’s own           they can use an iPad to access a
to become participants, react with    scenario that technology is only       channels. Businesses should break   shopper’s profile that pulls together
relevant offers, and respond          a tool. Reimagining a consumer         down the internal barriers that     contact details, transactional
to concerns.                          engagement strategy is not based       segment consumer interactions       history, lifetime spending statistics,
                                      solely on technology.                  by channel in order to create a     recommendations based on

Trend 1. Relationships at Scale                                                                                                        Accenture Technology Vision 2013

purchases, and social-media               as varied as demographics or
comments regarding the brand.             proximity to a buying decision;
                                          one customer may prefer a digital       “ Savvy companies understand thatto create
                                                                                    channels represent opportunities
                                          interaction whereas another may
                                          prefer to speak to a live customer-          different experiences that truly leverage each
An omnichannel                            service agent. Unfortunately,                channel. Having a portfolio of channels creates
relationship strategy                     businesses can’t automatically
                                                                                       the opportunity to give a consumer the right
                                          replace some channels in favor
                                                                                       interaction at the right time.
Jettison the idea of a single
subgroup within the enterprise that
is responsible for the entire “digital”
                                          of others; they must allow the
                                          consumer to choose from among a
                                          portfolio of channels, depending on
channel. Instead, the enterprise must     the consumer’s needs at any given       That said, every challenge reveals an   represent opportunities to create
figure out how all the groups will        time.                                   opportunity. These new channels—        different experiences that truly
work in concert. Each group should                                                whether through mobile apps             leverage each channel. Having a
work together toward an overarching,      For example, Virgin America is          on smartphones, through social-         portfolio of channels creates the
omnichannel relationship strategy,        offering customer service through       networking capabilities such as         opportunity to give a consumer the
one that promotes collaboration and       Twitter and Facebook. Customer          Pinterest, or through corporate         right interaction at the right time.
sharing among channels to manage          support monitors tweets and             websites—allow new ways of
relationships with consumers in an        Facebook posts to the airline for       communicating with the consumer         Consider the way a retailer interacts
ongoing fashion.                          indications that someone needs help,    that help increase the quality and      with a customer: a discount delivered
                                          allowing consumers to make simple       utility of interactions. It’s not a     in an e-mail is often considered
Enterprises must find out how             requests, like reserving a wheelchair   question of replacing channels or       “spam,” while that same discount
and where consumers are most              for a flight, without waiting on hold   even weaving them all together into     delivered as a consumer scans a
comfortable interacting with them.        for a call center                a single interface. Savvy companies     product QR code is just good service.
That may depend on circumstances                                                  understand that different channels      Understanding how, when, and

Trend 1. Relationships at Scale                                                                                                      Accenture Technology Vision 2013

                                                                                and ticking down by 1 percent every       don’t. Better insight into customer
                                                                                second until the consumer entered         preferences allows businesses to
                                                                                the Meat Pack store. When a discount      iterate product development faster,
                                                                                was redeemed, the person’s Facebook       to scale up production or kill a
                                                                                status automatically changed to           feature or a service before too much
                                                                                inform the world.                         is invested. They can build future
                                                                                                                          business cases on a more substantial
                                                                               Similarly, businesses will have to disrupt and substantiated information base.
                                                                               the mindset that says “relationships”
                                                                               equate to “marketing.” This means          Higher customer satisfaction
                                                                               that IT must forge close links with        equates to repeat customers
where businesses should contact       capabilities beyond social media (such other groups that touch consumers            and higher revenue through
consumers can create a brand          as analytics and mobile technology)      and reach out to business units, such increased volumes and lowered
connection that rivals the face-to-   in order to reboot efforts to engage     as product development, that manage cost of customer acquisition. But
face relationship associated with the consumers in ways perhaps imagined interactions with other communities. companies also gain from a better
small-town general store.             but not implemented. For example,                                                   understanding of consumers. The
                                      Guatemalan shoe store Meat Pack                                                     deeper the relationship with the
At the same time, businesses should looked to mobile interactions to                                                      customer, the more reliable the
recognize that social and mobile are pinch customers from competitors
                                                                                Insight leads to                          metrics the customer provides.
not just a set of new channels for    through a mobile app called Hijack.
                                                                                increased consumer                        Again, it’s the difference between
pushing information to consumers.     When potential customers entered a        satisfaction                              the vagueness of a focus group and
It’s about changing the channel’s     rival’s store, they were detected using                                             the specificity of actual consumer
function from push—ads, for example— the app and offered a promotion at        With deeper interaction, businesses        behavior—the importance of tracking
to services and value. Businesses     Meat Pack. A discount countdown          can more quickly understand what           what consumers do, not what
must coalesce on a variety of new     was displayed, starting at 99 percent consumers like—and what they                  they say.

Trend 1. Relationships at Scale                                                                                   Accenture Technology Vision 2013

Your 100-day plan                                             With consumers changing their           about the consumer from the
                                                              attitudes about sharing and             communications channels he uses to
In 100 days, refresh the mindset of your consumer chan-       accessing information and becoming      better understand his behavior and
nels to move beyond transactions to, in addition, drive       willing to be more transparent,         needs. Consumers newly accustomed
consumer interactions and relationships.                      forward-thinking enterprises are        to accessing account information
                                                              realizing that they can benefit         in corporate databases to transact
•	 Catalog your consumer interactions, tools, and channels.   from an unprecedented granular          and interact have ratcheted up their
                                                              view of consumers—not just what         expectations about how businesses
•	 Educate your internal teams on the tools and channels      they bought, but when, and where,       will communicate and respond. But
   currently available.                                       and what they were doing before         companies now have the ability to
                                                              and while they made the purchase        make the consumer feel special, to
•	 Determine the questions to be answered to create a         decision. Businesses can do this by     increase engagement, and to develop
   holistic view of your customer.                            taking advantage of internal data       intimacy, as never before.
                                                              sources (that is, instrumentation and
•	 Identify metrics for tracking the success of your social   quantification of decision making
   and communication channels in terms of a consumer          captured by their own software)
   relationship.                                              and external data sources (such as
                                                              social-media sites and information
•	 Begin “social listening” to build momentum toward your     gathered by resellers and partners).
   larger strategy.
                                                              The goal, to use a term that may
•	 Propagate current tools and channels across business       sound contradictory, is mass
   units where applicable.                                    personalization—using technology
                                                              to provide resort service at a motel
                                                              cost. That is, using what you know

Trend 1. Relationships at Scale                                                                                      Accenture Technology Vision 2013

A new level of                           richer the data collected becomes.       This time next year
customer intimacy                        Companies can boost the quality
                                         of data in much the same way             In 365 days, reimagine your consumer strategy across
Companies that embark on this            that night-vision goggles amplify        the enterprise as a consumer-relationship strategy and
voyage of mass personalization can       available vision: to shine a light on    create the cross-organizational ties to drive it.
expect a variety of new benefits.        data and behaviors, already present,
                                                                                  •	 Create a cross-functional team responsible for reviewing,
Because shoppers can move—               but previously undetected.
                                                                                     updating, and improving your consumer-relationship
quickly and entirely digitally—from
awareness to recommendation              A new level of intimacy with
to purchase after interacting on         consumers is now possible. But           •	 Standardize your methodology around how consumer
blogs, Twitter, Yelp, and other social   effectively scaling meaningful              interactions are shared throughout the organization.
sources, it’s actually possible to       relationships represents a real
                                                                                  •	 Redesign your organization’s communication-channel
compress the sales cycle. Offering       change in the way companies
                                                                                     strategy in light of the holistic consumer-relationship
on-the-spot promotions through           need to approach their consumer
digital channels also potentially        strategies. This shift is being
increases impulse purchases.             enabled by technology; however,          •	 Establish an environment to test and then deploy
Providers that are better at             implementing it will require a new,         technologies that will support your consumer-
controlling that experience will         unified approach across IT and the          relationship strategy.
benefit by lowering the costs of         business. Now is the time to take
                                                                                  •	 Review your metrics and data to improve your consumer
sales and marketing and generating       the next step. The customers are out
                                                                                     interactions and update your consumer-relationship
greater sales volumes.                   there; it’s time for the enterprise to      strategy.
                                         get to know them.
Personalization also creates a
virtuous loop. The more you
personalize the experience, the

Trend 1. Relationships at Scale                                                                                                             Accenture Technology Vision 2013

Sidebar: Gauging the Value of Trust

During its bankruptcy proceedings in         potentially be used and, crucially,       data—and we spelled out practical       sensitive about the use of their data,
2011, Borders, the bookstore chain, won      to give them a choice in the              steps that would help companies         even though more and more data is
judicial approval to sell its intellectual   matter shows how companies and            move toward operating models            sought from them and more is
property, including a customer               consumers may interact in the future      based on trust. Even before the         given by them, both willingly
database, to Barnes & Noble. The             on issues of privacy. It’s also a prime   age of social media and big data,       and unwittingly.
issue at stake: shoppers’ data privacy.i     example of the mobility of data           our recommendations were clear:
                                             these days—and a good indicator of        companies must seek ways to use    In general, individuals are more
Anticipating privacy concerns,               the importance of establishing, let       knowledge about their customers    likely to think in terms of what’s in
Borders’ lawyers persuaded the court         alone maintaining, accountability for     to provide better services to them,it for them if they give out personal
to appoint an independent third              such data.                                doing so in ways that increase trust,
                                                                                                                          data. “When you put information
party to consider the privacy impact                                                   not suspicion.                     about yourself out there, that’s a
on the 48 million Borders customers          A decade ago, Accenture asked                                                transaction,” Margaret Stewart,
whose personal information would             whether enterprises could              Ten years on, plenty has changed:     Facebook’s director of product
be transferred with the sale of the          differentiate themselves based on      the entities collecting information   design, told Fast Company recently.
intellectual property. In the end, the       consumer trust. We flagged five
                                                                                    are savvier than ever about data, and “But you need to feel that you’re
customers were given the chance to           dimensions of trust—safekeeping of they have more channels through           getting something back in return.
opt out of the transfer.                     personal information, control over     which to gather it (think “big data”) When we start to provide things
                                             the data, personal access to one’s     and more powerful tools with which that feel valuable to people, it will
The bookseller’s readiness to tell           data, accountability, and the benefits to extract insights from it. For      make that transaction make sense.” iii
customers how their data could               of letting corporations use one’s      their part, individuals are far more

Trend 1. Relationships at Scale                                                                                       Accenture Technology Vision 2013

Accenture’s recommendations for        that can build a reputation for        Of course, a critical aspect of trust
businesses are even more relevant      providing valuable services while      building is the assurance that all
today, and the stakes have gotten      using consumers’ personal data in      of the business partners in an
higher—with consumers’ greater         trustworthy ways will have a big       organization’s value chain abide by
sensitivity being just one of the      advantage over competitors. Its        the same high principles. If a person
factors in play. Accenture believes    brand will be more valuable, it will   using a supposedly trust-based
that a vital component is still        have more opportunities to attract     solution is suddenly deluged with
missing from the privacy debate:       and retain lifetime customers, and     unwanted phone calls and e-mail
a proactive business perspective       it can become a preferred partner      from related companies, you can
focused not just on compliance         in a larger value chain of goods       bet that’s a customer lost forever.
with laws that protect privacy but     and services.
also on the notion that companies
can generate business value by         Implicit in this idea is the belief
earning consumer trust.                that trust has an economic value
                                       and, as such, can be used to win
To date, few businesses convincingly   competitive advantage. In that
demonstrate that they grasp            respect, thinking of trust as an
the notion that they need to go        economic asset is not different from
beyond just collecting information     how a bank views and manages its
about consumers. The company           customers’ accounts.

Trend 1. Relationships at scale                                  Accenture Technology Vision 2013

                           Design for Analytics
                           Formulate the questions, and design
                           for the answers

Trend 2. Design for Analytics                                                                                 Accenture Technology Vision 2013

Design for Analytics

Business intelligence. Data analytics. Big data. Companies are no longer suffering from a lack of data;
they’re suffering from a lack of the right data. Business leaders need the right data in order to effectively
define the strategic direction of the enterprise. The current generation of software was designed for
functionality. The next generation must be designed for analytics as well.

                                                        Predicting the future isn’t difficult.   unstructured data from previously
                                                        Predicting the future with some          unplumbed sources (such as social
                                                        degree of accuracy is. Businesses are    media, call center transcripts, and
                                                        under the impression that the more       e-mail). They are working under
                                                        data they have, the easier it will be    the assumption that “more data” is
                                                        to predict the future and thus secure    equivalent to “better data.” They are
                                                        competitive advantage.                   only partially correct.

                                                        Collecting more data points makes        The problem is no longer the
                                                        it easier to discern trends, patterns,   absence of enough data. In fact,
                                                        opportunities, and competitive           enterprises are now being flooded
                                                        advantage. That’s one of the reasons     with new data, big-data tools
                                                        companies are focusing so heavily        mine countless new unstructured-
                                                        on big data and the ability to utilize   data sources, social media now

Trend 2. Design for Analytics                                                                                                      Accenture Technology Vision 2013

provide unprecedented information        for the application to do its job. If   capture more of it where they can.    help the company achieve its most
about consumers, and sensors and         an e-commerce application needs         But generally they have not done this basic goals. With every data gap,
embedded devices expand the ability      to know what device a consumer          with any specific question in mind.   enterprises miss an opportunity to
to gather data into areas where          is connecting from in order to                                                make better decisions or improve
computing power has never been           authenticate the consumer, it           So, when this data is repurposed      how they run their business. To move
before. The problem now becomes          captures that information; if the       as an input to make strategic         forward, to answer the question, you
the absence of the right data.           application doesn’t need to know,       decisions—such as entering a new      have to adopt a data-first strategy
                                         and knowing doesn’t support the         market or pricing a new service—      and plug the data gaps.
The IT world we live in today revolves   user experience, it doesn’t. Most       glaring information gaps often
around software applications.            companies have also taken the next      arise. The goal isn’t to amass data.  Plugging these data gaps—that is,
Businesses have developed data           step—for example, they recognize        It’s about enabling the business      getting the right data—requires
models to support application            that consumer information is            to answer a question, to create       a fundamental shift in design
functionality, which is necessary        valuable for future insight, so they    insight, and to use that insight to   philosophy for how new applications

                     “ The now being flooded with new data,of enoughtools mine countless new
                           problem is no longer the absence
                                                                     data. In fact, enterprises

                            unstructured-data sources, social media now provide unprecedented
                            information about consumers, and sensors and embedded devices expand
                            the ability to gather data into areas where computing power has never been
                            before. The problem now becomes the absence of the right data.
Trend 2. Design for Analytics                                                                                           Accenture Technology Vision 2013

are built and existing applications     To get the right data, you have to    The result is the first stage of a data
are configured, instrumented, and       design applications to explicitly     supply chain, where applications
updated. Applications still must        capture the specific data needed,     serve not only their users but
meet users’ functionality needs,        update user interfaces to get         also the business as it looks to
but applications now must also be       new pieces of data, and add           applications’ data for answers to the
designed to specifically produce data   data collection as a new set of       questions most important to
that answers more of an enterprise’s    requirements within the software      the business.
questions. Technology is no longer      procurement process. These
the barrier. The barrier is strategic   capabilities become a piece of the
business foresight to formulate         upfront processes for how you lay
the questions.                          out road maps for your systems, not
                                        something that is added on after
                                        the fact.

Trend 2. Design for Analytics                                                                                                         Accenture Technology Vision 2013

The minimum                             What transpired before it happened?
mindset: data as a                      What transpired afterward? It could

strategic asset                         be a purchasing scenario that reveals
                                        the associated items that customers
Businesses have the right idea:         buy. But it could also be a failed
data is a strategic asset. Data (good   online purchase. Did someone get a
data) makes you smarter. A recent       coupon from Starbucks but go next
study of 179 companies, led by an       door to Dunkin’ Donuts anyway?
economist at the MIT Sloan School
of Management, suggests that            The desire to get these answers
companies that adopted “data-           is why companies are investing
driven decision-making” have            so heavily in big data, business         Quantifying the                         tick. They must step out of the box
productivity levels 5 to 6 percent      intelligence, and reporting tools.       world around us                         and formulate the right questions
higher than can be explained by         The fact that they are still investing                                           that will help the business make
other factors, including investment     means that they haven’t yet found        When enterprises don’t have access      strategic decisions. The data that’s
in technology.i                         the solution, even though so much        to the right data, they need to start   necessary will become evident. The
                                        technology is available.                 looking differently at how they         challenge, then, will be figuring out
Savvy companies are working to                                                   go about getting data. Companies        not only how to collect it, but, in
discern more about transactions         Companies need to start looking          can’t rely solely on the limited        many cases, how to create it.
and events than ever before.            for the solution to the problem a        universe of data that they already
They’re looking for context and         different way.                           have. The focus now needs to            Many software vendors are already
ways to make the insights they                                                   shift to quantifying the enterprise:    starting to make it easier for
gain actionable. They’re trying to                                               capturing the actions, interactions,    enterprises to tackle this challenge.
understand not only what happened                                                and attributes of the employees and     Third parties are increasingly creating
but why. And, when did it happen?                                                processes that make an enterprise       Application Program Interfaces to

 Trend 2. Design for Analytics                                                                                                          Accenture Technology Vision 2013

                                                                                  and their ultimate score but also        The companies that have already
                                                                                  their keystrokes, how long it took       defined their top-level strategic

“ Whenthey need todon’t have access to the right
                    start looking differently at
                                                                                  them to answer individual questions,
                                                                                  and if they stopped in the middle of
                                                                                                                           questions are striking first.
                                                                                                                           Many companies in logistics,
                                                                                  an assignment or question. “We're        transportation, and energy, for
    how they go about getting data. Companies                                     physically collecting thousands of       instance, have already clearly defined
    can’t rely solely on the limited universe of data                             data points per student per day,” said   their need to track the movement of
    that they already have.                                                       founder and CEO Jose Ferreira.iii        goods and the usage of power.
                                          ”                                       Companies are also looking to the        UPS has developed a system of
                                                                                  blossoming of sensor technology          in-vehicle sensors and handheld
 allow data to be more easily extracted   help improve its recommendations        to fill data gaps as they arise. This    computers to track information not
 from software products, including        engine, Netflix tracks how customers    technology represents a way to           only about its shipments but also
 packaged software applications.          interact with on-demand film            create and collect information from      about its trucks’ movements. This
 This further puts the onus on            downloads. It looks at metrics          physical environments and devices        is what helped it determine that
 companies to figure out what data        such as when customers pause the        that today represent blind spots in a    making left turns slowed deliveries
 they should be gathering from            movie and what scenes they watch        company’s data portfolio. Research       and increased fuel costs as a result
 their systems to answer the              over again.ii In another example, to    company Strategy Analytics predicts      of idling; it used the information
 company’s broader questions.             continuously improve the quality        that cellular machine-to-machine         to create routes that minimized
                                          and effectiveness of its online class   (M2M) connections necessary to           left turns, saving the company 9
 Companies are also increasingly          materials, Knewton incorporates the     transport the data from distributed      million gallons of gas annually. In
 adding instrumentation to their          ability to track specific data about    sensors to the data center will grow     addition, knowing when trucks are
 custom applications, designing them      how students use its software. It       from 277 million in 2012 to 2.5          going to reach their destinations
 to collect and report transactions,      tracks not only how long it takes       billion by 2020.iv                       helps UPS’s employees ensure that
 activities, or logs. For instance, to    students to complete an assignment                                               there are sufficient resources to load

Trend 2. Design for Analytics                                                                                                       Accenture Technology Vision 2013

and unload them. Knowing where          the wireless information network       the quantification of the consumer.     and transmit information, primarily
shipments are in transit (and sharing   enhances well efficiency and reduces   Facebook has ingrained a propensity     in the personal-fitness space. The
that information on a website) aids     operating costs because workers no     for people to share their likes and     Nike+ FuelBand collects data about
customer service.                       longer have to physically visit each   dislikes. Businesses have known         calories burned, for example, and
                                        well to collect operating data and     for years that customers prefer         FitBit collects data regarding users’
In the energy industry, Shell joint     reconfigure the system. This also      recommendations from known              sleep patterns. Personal fitness
venture Petroleum Development           contributes to personnel safety.       sources. The ability to cultivate and   and social media also overlap on
Oman (PDO) has deployed a wireless                                             harvest customer information for        websites where people track their
system in its oil field. It is currentlyQuantifying the                        sales, marketing, and advertising       diets. A lot of consumer data exists
wiring 5,000 wells, which technicians   consumer                               represents a rich opportunity to grab   today, but companies need to
remotely monitor and manage, to                                                some of the data that they need in      determine the right data for them
provide real-time communication          To date, of course, the ripest area   order to resolve questions about        and then start processes to acquire
and control. According to PDO,           for the collection of data has been   their consumers that have long been     that data.
                                                                               left unanswered.
                                                                                                                       Websites already have multiple

“ The ability tofor sales, marketing, and
                 cultivate and harvest customer                                The aggregation of social and mobile
                                                                               capabilities through applications
                                                                                                                       capabilities for tracking activity, but
                                                                                                                       sometimes what is needed can be
                                                                               such as Waze (a crowd-sourced           gleaned by simply asking customers
     advertising represents a rich opportunity                                 navigation app) and Yelp (online        and prospects for input. However,
     to grab some of the data that [businesses]                                consumer reviews) has heightened        it’s important to note that often it’s
     need in order to resolve questions about                                  the ability for consumers to quantify   better to track actual activity than
                                                                               themselves. But there’s also been       to poll—there’s typically a delta
     their consumers that have long been left                                  an associated increase in personal      between what people say they want
                                ”                                              electronic and medical devices,
                                                                               beyond smartphones, that collect
                                                                                                                       and what people actually want.

Trend 2. Design for Analytics                                                                                                         Accenture Technology Vision 2013

Businesses also have a newfound          What do these examples portend?         into new products (think insights)       Once you’ve designed for analytics,
ability to utilize pieces of data that   Opportunities for consumer data         as you look at different pieces of       how do you actually conduct
they may already possess but that        feeds are everywhere. You just need     data in aggregate. Just as important,    the analytics? Analytics have
previously hasn’t been easily usable:    to form the right questions for your    companies should be able to feed         always been a challenge, but
unstructured data represented by         business and start strategically        information back to their suppliers      partially because businesses have
free text in e-mail, tweets, and other   quantifying the world around you.       in order to help them incrementally      often conducted the process in
media; audio files from call center                                              improve the latter’s data collection—    an exploratory fashion—they’ve
conversations; and video from sites                                              just as an auto manufacturer must        collected available data and then
where customers interact                 Creating a data                         report component failures back to        analyzed it, rather than assiduously
with products.                           supply chain                            suppliers in order to improve quality.   determining what data will aid their
                                                                                                                          business strategy and then ensuring
Finally, consider the availability of    It’s time to start treating your data   Once you identify the data supply        that the right data is collected to
information that’s been collected        less as a warehouse and more as a       chain, how do you harness it?            analyze. They can derive increased
by others for integration into your      supply chain. Having identified your
analysis. This could come from a         sources of data, you must corral
variety of sources—service providers,    it for analysis, in the same way
social networks, search engines, even    that the various components of an
vendor software already running          automobile from multiple suppliers
in your data centers. For instance,      come together on an assembly line.
Intellicorp has developed a software     Recognize that the data won’t be
product that can analyze changes         static; it will be manipulated as
within SAP ERP applications; it sells    it goes through the supply chain,
the product to SAP customers for         added to other pieces of data,
data-management and data-life-           updated as more recent data comes
cycle uses.                              along, and sometimes transformed

Trend 2. Design for Analytics                                                                                                          Accenture Technology Vision 2013

value by collecting data with the        working, but they do see that they’re   Foresight:                                specific questions they are trying
real end purpose in mind. The result:    relying more on electric power,         establishing a                            to answer; many will not be able
better data, which equals                which delivers higher levels of                                                   to, and fewer still will have those
better insight.                          customer satisfaction.
                                                                                 feedback loop                             questions documented and feeding
                                                                                 for insight                               into teams to answer them. Though
Ford Motor Company research              In a short time, savvy businesses                                                 obvious on the surface, this task
logically deduced that the customers     can create a virtuous feedback loop     What will the feedback loop look          should not be underestimated. It is
of its hybrid vehicles preferred using   that allows them to collect, analyze,   like when software is designed for        not trivial. And it is not something
electric power as much as possible.      and respond in an increasingly          analytics? It starts with setting goals   for which most companies have a
However, the system was originally       agile manner, and then revisit their    and creating questions that need          formal process. They need to
designed to deploy electric power        questions on a periodic basis in        to be answered. Ask the leaders of        create one.
based on other parameters, such as       order to continuously assess new        organizations within your enterprise
amount of battery power remaining.       data in the context of changing         if they can clearly articulate the key
But Ford developed an algorithm          business conditions and strategies.
using data from the cars’ built-in       This will require the integrated
GPS systems to track when drivers        involvement of IT with the business,
were close to home or frequently         because IT may need to tweak data
visited locations close to home.
Knowing that the vehicles were
                                         collection mechanisms, including
                                         user interfaces, on mobile apps and
                                                                                      “ What softwarefeedback loopfor analytics?
                                                                                             will the
                                                                                                      is designed
                                                                                                                    look like
more likely to be within the range       enterprise applications in order to
of a battery charge, the engineers       acquire additional data points.                   It starts with setting goals and creating
                                                                                           questions that need to be answered.
were able to adjust the powertrain
controls to rely more on electricity
than on gasoline in those scenarios.
Customers don’t see the algorithm

Trend 2. Design for Analytics                                                                                                         Accenture Technology Vision 2013

                                                                                harvesting obvious to the user yet       driven or at least to work with them

 “ You will need to your software data
                                                                                unobtrusive. As part of an update to     to provide the required data. Procter
                 to distribute the                                              its online marketplace, eBay posts       & Gamble and Walmart actively
   requirements                    development                                  photographs of merchandise to            share supply chain information with
                                                                                users, Pinterest style, based on data    each other to help reduce inventories
        team, of course, but also begin working with                            derived from previous purchases,         while increasing sales by focusing on
        your partners and software vendors so that                              previous searches, and stated            rapidly changing customer demands.

        they can begin to collect data as well.
                                                                                interests. A better user interface,
                                                                                yes, but this design also gives eBay     Businesses must also think about
                                                                                the ability to get deeper insight into   how they can maximize the
                                                                                its users not only by simply asking      availability of data sources. Look
With a process in place, you then         Then you are ready to close the       them for their preferences but also      at currently packaged software
need to align the questions with          loop. To whom will the information    by looking at how they interact with     applications or SaaS applications
data requirements and disseminate         be distributed so that it can be      the pictures shown to them.              for how they can be reconfigured or
those requirements accordingly.           acted upon? Designing the process                                              how APIs can be utilized to supply
You will need to distribute the data      so that information flows into the   Developers must use design                data. In existing applications, think
requirements to your software             organization is equally important.   methodologies that allow rapid            about how the interface can be
development team, of course, but                                               testing, updating, and reconfiguring.     updated for better data gathering—
also work with your partners and          The cultural shift to an insight-    In that way, businesses can               for instance, adding new entry
software vendors so that they can         driven business will also require    determine which methods work              points to accommodate inputs
begin to collect data as well. Finally,   different thinking about personnel   best in acquiring the strongest data.     about seasonal needs or short-term
think about other sources of data         and partners. Corporate developers   Businesses will also have to rethink      promotions. In new applications,
you want to incorporate for analysis.     will need to focus on incorporating  their relationships with partner          designing for data capture should
                                          methods of data harvesting into user organizations in order to persuade        carry as much weight as the initial
                                          interface designs, making the data   them to become equally insight-           application requirements.

Trend 2. Design for Analytics                                                                                            Accenture Technology Vision 2013

Changing a                                  looking for ways to collect better       Your 100-day plan
corporate culture                           data, more data, fresher data.
                                            It’s not just the software that          In 100 days, define the key strategic questions for the
Designing for analytics is about            should be refreshed to collect data      business and the data needed to answer them.
more than simply adding a few               and conduct analytics—it’s the
data requirements to a software             employees, too.
development cycle or an RFP; it is                                                   •	 Update or build your data catalog, identifying what data
the next step in transforming the           By deploying these capabilities,            you have.
enterprise culture to become insight-       businesses will move themselves
driven. It’s about blurring the lines       closer to the goal of being              •	 Determine your in-flight analytics projects and what
between business functions (as the          completely insight-driven, of               questions these projects are trying to answer.
consumers of business data) and IT          being the kind of company that
(as the purveyors of data) to make          systematically uses data at all levels   •	 Prioritize the existing strategic questions your
both more effective.                        of the organization to become               organization is working on.
                                            smarter and more successful. It’s
Pushing these ideas, many                   time to take the next step. It’s time    •	 Begin to catalog new data sources (internal and external)
enterprises will go so far as to            to evolve applications and products         needed to fill in critical missing data elements.
create a prominent new role in              beyond just user functionality
the organization, a chief data              and make them actively feed your         •	 Tap the new data sources where they fill identified data
officer, a data champion whose              analytics. Give the business not just       gaps.
responsibilities encompass the              data, but the right data.
collection, prioritization, distribution,                                            •	 Define the required skills and experience needed to create
and analysis of data. But, with or                                                      data champions across the organization.
without a data champion, each
employee must be tasked with

Trend 2. Design for Analytics                                   Accenture Technology Vision 2013

This time next year
In 365 days, establish your data supply chain across the
enterprise, quantifying the world around you to address
strategic gaps.

•	 Create data champions across the organization, for
   example, a chief data officer.

•	 Work across the organization to determine and prioritize
   your future strategic questions.

•	 Look at your data catalog and determine the long-term

•	 Fill these gaps in the data catalog—purchase data,
   develop new APIs, and ask your partners.

•	 Embed new data requirements into software road maps
   and procurement plans.

•	 Begin designing software to capture new data within
   custom development and software update cycles.

•	 Develop a data creation strategy to attain data through
   the setup of new data sources: M2M, new software, and
   data creation from partners.

•	 Put the data cycle in motion, revisiting data needs as new
   strategic questions arise.

Trend 2. Design for Analytics                                                                                                             Accenture Technology Vision 2013

Sidebar: Why the Business Now Needs to Care About APIs

In earlier times, applications (and        APIs—the “glue” that connects             The beauty of APIs is that they         data and services to meet
their data) didn’t really travel far in    apps with business processes and          uncouple the “front end” service—       business goals.
the enterprise. Applications were          with each other—have typically            the business access—from the IT
specific to jobs, and the data they        been a fairly low-level concern for       mechanisms that support it. As user     The benefit of discrete API
produced remained locked inside,           programmers and architects. But with      groups and use cases change, access     management is that it keeps
rarely fulfilling its true potential for   the business’s increasing reliance on     and management-policy updates           complexity under control. Specifically,
the enterprise. Data on consumer           data and services—both public and         don’t affect IT implementation, and     the API management solutions
segments used by the marketing             private—and the growing reuse of          vice versa: APIs can provide self-      now offered by providers such as
group would rarely have been sought        those building blocks, APIs are rapidly   serve access for developers—internal,   Apigee, Layer 7 Technologies, and
by engineering or manufacturing, say,      becoming a strategic concern. For         partner, and independent third party—   Mashery make it possible to organize,
or even offered to external parties.       example, the car-sharing service          giving others the power to create       expose, and monetize APIs. The
                                           RelayRides relies on an API created       new and innovative use cases. And       organization benefit is very real:
Things are different today. It’s           by General Motors and OnStar to           IT updates can happen at any time       formal management of APIs deals
becoming increasingly important for        access some of the remote control         without users knowing it, or needing    with the sprawl, redundancies, and
the underlying data and business           and telematics elements of the            to know. Managed well, APIs can         inefficiencies that will proliferate as
functions to be made available             service.i Organizations must now          help enterprises handle complexity as   increasingly quantified enterprises
for general use—able to be quickly         consciously manage the proliferation      the need to access data and services    begin to share many more data
reworked in ways that help shorten         of increasingly important APIs.           grows. In an increasingly quantified    sources and services, both internally
cycle times, cut costs, or accelerate                                                digital world, API management           and externally.
revenue elsewhere in the business.                                                   provides a mechanism to leverage

Trend 2. Design for Analytics                                                                                                           Accenture Technology Vision 2013

API management tools help expose          who is using your APIs and which        growing global workforce, it would       is based on the same core “building
a common platform of functionality.       APIs are most valuable, as well as      be increasingly critical for business    block” concepts as SOA, but it has
They minimize rework. And they            traceability of IT capability against   users to have access to enterprise and   evolved to take advantage of the
accelerate development, which is a        business use, ensuring business         application data in real time in order   agility and simplicity of cloud and
key first step when embarking on          process alignment and verification      to scale up those applications.          Web-based approaches.
cloud, mobile, or social roadmaps.        against business cases.
Just one snapshot: construction and                                               The IT team opted to build an API        So the next question is, Who needs to
engineering company Bechtel has an        A case in point: Accenture is carefully layer that would make available the      be responsible for API management?
API strategy that provides relevant       managing APIs as a key step to enable various data and business functions        Currently, the only people who know
information to its global teams from      cloud and mobile strategies across      for general use and standardize          or care about APIs are found on the
the data generated and stored as it       our global workforce of more than       access across users. The APIs could      development teams. But there’s a
executes its projects, thereby enabling   250,000 people. With as-a-service       then be used to help implement new       need for a centralized function that
the teams to be more agile and better     and mobile-device models playing        services and to provide new user         brings some order and discipline
equipped to make informed decisions.ii    larger roles in Accenture’s delivery    experiences on mobile devices such as    to today’s random and informal
                                          of functionality for activities such as tablets and smartphones.                 interactions between business users
Finally, API management makes             time entry, hotel reservations, and                                              and IT staff. Does the buck stop on
it possible to measure the value          business travel, Accenture’s internal   If API management sounds a lot like      the CIO’s desk? Or is this part of the
of APIs. Imagine a scenario that          IT team realized that integration       service-oriented architecture (SOA)—     purview of a newly minted chief
involves explicit governance of APIs;     with disparate systems was going        an influential technology concept a      data officer? In either case, the API
you have visibility and control into      to become challenging. And with a       decade ago—that’s because it is. It      management role must be defined.

Trend 1. Relationships at scale                                    Accenture Technology Vision 2013

                           Data Velocity
                           Matching the speed of decision to the
                           speed of action

Trend 3. Data Velocity                                                                                    Accenture Technology Vision 2013

Data Velocity

Business leaders have been bombarded with statistics about the soaring volumes of data that they can
mine for precious insights. They have been deluged with articles describing the incredible variety of
“external” data hidden in everything from tweets and blogs to sensor outputs and GPS data from mobile
phones. But the next perspective on data that deserves attention is data velocity—the pace at which data
can be gathered, sorted, and analyzed in order to produce insights that managers can act on quickly. As
expectations of near-instant responses become the norm, business leaders will rely heavily on higher data
velocities to gain a competitive edge.
                                                     It’s become an article of faith         data from platforms like Twitter,
                                                     among business leaders that             Facebook, and Pinterest to second-
                                                     their data contains a treasury of       guess consumer behavior, increasing
                                                     powerful insights that can help their   sales conversion rates by 10 to 15
                                                     organizations make money. They’re       percent in the process.i
                                                     also getting used to the idea that
                                                     “data” can mean what’s gleaned          But there’s another aspect that
                                                     from Facebook postings or remotely      business leaders have yet to fully
                                                     located machines just as much as        grasp: data velocity. That concept
                                                     what’s in corporate data centers.       by itself is not new; together with
                                                     Just ask Walmart, which deployed        “variety” and “volume,” it has been
                                                     a new search engine last fall           part of the “three Vs” construct for
                                                     on that relies on           talking about data—a construct

Trend 3. Data Velocity                                                                                                                Accenture Technology Vision 2013

developed in 2001, long before “big                                                                                      explained that he’s not seeking new
data” became such an overused term.ii
And at the most fundamental level,        “ Today, it’s of the organization’s actions to
                                            the speed
                                                        increasingly important to match                                  types of data; what he wants is to
                                                                                                                         get everything from point-of-sale
there is nothing novel about the                                                                                         data to statistics on inventories and
                                            the speed of its opportunities.
idea of faster flows of data helping
organizations get more done in
less time.
                                                                            ”                                            shipments more frequently and far
                                                                                                                         faster, in more granular form
                                                                                                                         than ever.iv

But the notion of velocity has been     to generate actionable insights, the    decision makers do business.iii The      In all of these discussions about
largely eclipsed by the many recent     organization will start losing out to   old model, he said, would mean           data velocity, note that we’re not
advances in technologies that have      more responsive competitors. More       that analysts would get back with        talking about striving for some
unlocked significant increases both     worrisome, if the business hasn’t       answers in two weeks. “You need          real-time nirvana. What’s crucial
in available volume (zettabyte upon     begun using data-driven insight to      to be able to answer that question       is an improving rate of response,
petabyte) and in variety (spanning      detect and evaluate opportunities       immediately,” he told the magazine.      regardless of the rising volumes of
unstructured data such as pins          in the first place, it runs even                                                 data to be accessed and analyzed
on Pinterest as well as structured      greater risks of falling behind.        P&G is investing in virtual, “instant    and irrespective of their proliferating
records of supply logistics and         Consumer goods giant Procter &          on” war rooms where professionals        sources. Going forward, it will no
customers’ purchase histories).         Gamble is acutely aware of what’s       meet in person or over video around      longer be about the size of your
                                        at stake: CIO Filippo Passerini told    continuous streams of fresh and          data—it will be about matching the
Today, it’s increasingly important      InformationWeek that if P&G can         relevant data, inviting the right        velocity of your data to how fast
to match the speed of the               eliminate the “what” discussions and    experts as soon as a problem             your business processes need to
organization’s actions to the speed     some of the “why”, and decision-        surfaces. P&G’s objective is to give     act on it.
of its opportunities. If too much       makers can jump right to how            these decision-making forums
time elapses between acquisition of     to solve a problem, that radically      access to data as soon as possible
data and the ability to use the data    increases the pace at which the         after it has been collected. Passerini

Trend 3. Data Velocity                                                                                                              Accenture Technology Vision 2013

When fast still isn’t                   and openness on our desktops, TVs,     stay up to date with insights about     Concurrently, the user base for
fast enough                             and even our car dashboards. Not to    customers, products, work orders,       data is exploding. Business users
                                        mention that the next generation       and more.                               are becoming more technical at
Irritated that the Web page on          of consumers is growing up with                                                the same time that analytics skills
your smartphone is downloading          expectations of instant responses as  Instant, mobile access to data is only   and techniques are becoming more
so slowly? Remember a time before       a way of life.                        one way that expectations about          accessible to technical users, further
smartphones? That’s just one tiny                                             data velocity are changing. We’re        increasing the demands on available
reflection of the time-starved age     Enterprises have realized that         starting to ask new things of our        data. Within living memory, data
we live in, and a clear indication of  smartphones and tablets are perfect enterprise systems, too, thanks to          was the province of the guys in
how much expectations have risen.      vehicles for making informed           the continuing consumerization of        white coats in the air-conditioned
                                       decisions anywhere and anytime,        IT. Long accustomed to being able to     mainframe room. Today, everybody
Increasing expectations are a          based on targeted, personalized        track our orders via the      who wants to be a data pro can be a
primary factor pushing businesses— information. Hence the fact that SAP online services of FedEx or the U.S.           data pro.
all of us, actually—to ask for and act and others offer business intelligence Postal Service, we now wonder why
on data more quickly. Mobility as      software that provides the mobile      we can’t as easily do the same with    Yes, for years now almost every
a new channel for information has      workforce with the capability to       our company’s inbound supply chain. business function has had its “power
catapulted those expectations far                                                                                    users” of technology, but today,
forward; it’s addictive to have easy                                                                                 leading companies expect their
fingertip access to large amounts                                                                                    “regular” business users not only
of data. The more data we have, the                                                                                  to consume data but also to seek,
more we want—and app developers                                                                                      acquire, evaluate, analyze, and share
are happy to oblige us. The Web is                                                                                   it. Those organizations consider
literally in hand, wherever we go and                                                                                serious data savvy and analytical skills
whenever we want it, goading us                                                                                      to be requirements for many more of
to expect the same responsiveness                                                                                    their employees than ever before.

Trend 3. Data Velocity                                                                                                                  Accenture Technology Vision 2013

Narrowing windows                       and engaging. But we’re not talking
of opportunity                          just about short page-load times.
                                        The key is in how to leverage insight
Another powerful factor pushing         to make that experience awesome.
the need for more data more quickly     You have to be able to connect with
is that the windows of opportunity      the shopper—tying the experience
are smaller in almost all business      together based on past interactions,
endeavors. The windows have been        purchase history, questions she
closing for some time. In the 1980s,    e-mailed to your customer-support
Harvard Business Review explored        team, social links, and any other data
the topic, notably with its landmark    or any insight you can muster. The
article on time-based competition. v    same holds true when you want to         maintenance and repair world. At the      The story is similar for dynamic
And decades ago, then General           bid in real-time ad auctions to try      extreme, a grounded airplane costs        supply chains. Responding to
Electric chief Jack Welch was           to lure shoppers back to your site       airlines as much as $250,000 per day;     changes in the supply chain with a
famously preaching about speed          from elsewhere on the Web. In the        an oil rig that isn’t drilling can cost   combination of historical data and
and responsiveness.                     milliseconds available, you need the     $1 million per day. The sooner an         brand-new intelligence allows you
                                        ability to process the data tidbits      equipment malfunction or imminent         to create a more responsive, resilient
Speed of response is increasingly       at hand so that you can compose a        shutdown can be detected, and the         supply chain. If your company was
important at the functional and         message that is personal, intriguing,    more detailed the data about the          unable to properly see a recent drop
transactional levels. Take Web          and compelling enough to prompt          equipment’s condition, the quicker it     in production yields from an aging
interactions, for instance. Let’s say   a shopper to click your ad, bringing     can be repaired and made productive       manufacturing plant, you may have
you run a retail company: when a        you the traffic you seek.                again—and, if captured, the more data     difficulty meeting customers’ orders
shopper lands on your product page,                                              there will be to help predict future      on time. You did not match your
you’ve got a few split seconds to       Fast data responses and rapid            breakdowns and more effectively plan      speed of insight with speed
give her information that is relevant   analysis are also crucial in the         future maintenance regimens.              of action.

 Trend 3. Data Velocity                                                                                                           Accenture Technology Vision 2013

 In the utilities sector, investments   New technologies                      new technology advances aimed           Performance Appliance—offer huge
 in smart grids are putting more-       that put data on                      at tackling data variety and            speed increases over conventional
 frequent data updates in the hands                                           volume: platforms, services, and        storage. To squeeze out even faster
 of those matching electricity supply
                                        skates                                architectures. Converging data          performance, more attention is
 to demand to keep the grid stable.     As far back as 2008, Accenture’s      architectures are reshaping our         going to in-memory techniques that
 But the clearest example of the        Technology Vision spoke to the        whole view of data in the enterprise,   sharply minimize input and output
 “need for speed” in data utilization   growing variety of data relevant      and industrialized data services        by moving all kinds of data sets into
 comes from capital markets,            to the enterprise—video, audio,       help us get that data out into the      main memory rather than onto (and
 where quotes are submitted and         blogs, social data—much of it user-   enterprise, where it can generate       off of) any form of disk drive.
 withdrawn in millionths of a second.   generated. We also addressed the      new value.
 When trading systems can handle        technologies that were emerging to                                            In-memory technology is already
 transactions in trillionths of a       process this unstructured data. For   What’s happening now is a surge         moving into the corporate data
 second, they will.                     the past two years, we’ve showcased   of new technologies that help to        center. According to Gartner, the
                                                                              accelerate the whole data cycle from    adoption of in-memory computing
                                                                              insight to action, increasing the       is expected to increase threefold
                                                                              enterprise’s ability to deal with       by 2015 as a result of decreases in
                                                                              data velocity.
“ What’s happeninghelp to accelerate newwhole
                                                                                                                      memory The use of in-memory
                    now is a surge of                                                                                 technology marks an inflection point
  technologies that                   the                                     To start with, a slew of providers      for enterprise applications. With in-
                                                                              have pushed high-speed data             memory computing and insert-only
   data cycle from insight to action, increasing the                          storage much further. Appliances        databases using row- and column-
   enterprise’s ability to deal with data velocity.
                                                                    ”         relying on solid-state disk
                                                                              (SSD) to speed data input and
                                                                              output—examples include Oracle’s
                                                                                                                      oriented storage, transactional and
                                                                                                                      analytical processing can be unified.
                                                                                                                      In-memory data warehousing finally
                                                                              Exadata and Teradata’s Extreme          offers the promise of real-time

Trend 3. Data Velocity                                                                                                                    Accenture Technology Vision 2013

computing; business leaders can            on hardware provided and delivered       store, allowing sales associates to      data visualization solutions to help
now ask ad hoc questions of the            by SAP’s leading hardware partners.      identify opportunities to better serve   users understand complex data. One
production transaction database and        Data can be replicated from SAP          them and match products to their         player—Tableau Software—traces
get the answers back in seconds.           in real time and is captured in          individual tastes.viii                   its roots to technology used to help
                                           memory as business happens,                                                       create some of the most successful
SAP’s HANA appliance is arguably           where flexible views expose analytic                                              early computer-generated animation
making the most visible waves. Since       information rapidly. External data       New exploration                          movies, such as Toy Story. Another
its launch in June 2011, HANA has          can be added to analytic models to       methods that will let                    virtuous cycle comes into play here:
been the fastest-growing product           expand analysis across the entire
                                                                                    humans process data                      the faster the data can be processed
in SAP’s history.vii In brief, HANA is a   organization. Luxury retailer Burberry                                            and analyzed, the more terabytes
flexible, multipurpose, data-source-       expects HANA to provide real-            faster                                   can be poured into the system.
agnostic in-memory appliance that          time access to customer histories        Of course, professional users have
combines SAP software components           when customers walk into the             to be able to interpret what the         At the same time, newer low-cost
                                                                                    software is telling them. So several     analytical packages decrease the
                                                                                    providers are refining visualization     time needed for problem-driven
                                                                                    technologies that speed up               exploration. These tools—mostly
                                                                                    employees’ processing of data,           open source—greatly facilitate
                                                                                    shortening the time it takes to          the iterative querying of data,
                                                                                    evaluate what’s being communicated       accelerating users’ ability to narrow
                                                                                    and to make a decision, thereby          in on the right questions so as to
                                                                                    creating faster “time to insight”        find the best nuggets of insight.
                                                                                    and freeing users to deal with more      Tools such as Apache Mahout,
                                                                                    decisions. Nearly all of the leading     R, and D3.js make it easier for IT
                                                                                    analytics vendors—including SAS,         professionals who are not analytics
                                                                                    SAP, and Oracle—have corresponding       specialists to explore and iterate—

Trend 3. Data Velocity                                                                                                                Accenture Technology Vision 2013

essentially realizing more quickly       substantial increases in demand as

                                                                                  “ In practice, speedtechnology weand even with
that they didn’t ask the right           more electric vehicles appear on
question and promptly circling           the streets. Based on the insight                             costs money,
back to do so. These are really “do      that, for a given municipality,            new advances in                 don’t expect
it yourself” analytical packages,        registrations of new electric vehicles
                                                                                     that fact to change overnight. So it is crucial
different from traditional business      directly increase the strain on the
intelligence reporting software,         electric grid—an insight that comes         for IT groups to still rely on non-real-time data
                                                                                     where possible.
that make it easy for nonspecialists
to write their own algorithms.
One solutions provider—Predixion
                                         once—then the electric utility can
                                         automatically prioritize portions of
                                         the grid in certain neighborhoods
Software—allows developers to            for equipment upgrades each month
create analytical models and             based on input from that month’s         SQLstream handles real-time SQL        sets without having to resort to
“package” them for deployment to         registrations of electric cars.          queries against streaming data,        notoriously inaccurate random
others, enabling those other users to                                             leveraging and accelerating existing   sampling of the data.
leverage the models without being        There are also new moves to take         queries against data warehouses
analytics experts themselves.            technologies that are designed           and other SQL-based repositories.
                                         to handle large volumes of               Similarly, Cloudera’s Impala and the
At certain points, it will be possible   unstructured data—largely batch          open-source project Storm are both     Hybrid models
to automate decisions. Once the          technologies—and adapt them to           developing modifications of Hadoop     for boosting data
insight has been discovered during       work in real time, or as close as        to move beyond batch processing        velocity
exploratory analysis—the earlier         possible to real time. The goal is to    to near-real-time MapReduce-style
part of the data cycle—then the          attain a level of dynamic query-         queries. The beauty of transforming    In practice, speed costs money,
actual decision making can often be      building and execution to match the      tools built for batch work into        and even with new advances in
mechanized. Consider the example         relative rate at which the underlying    real-time analytics suites is that     technology we don’t expect that
of an electric utility that is seeing    data is changing. For instance,          it enables users to run huge data      fact to change overnight. So it is

Trend 3. Data Velocity                                                                                            Accenture Technology Vision 2013

Your 100-day plan                                           crucial for IT groups to still rely on   trick will be to apply “hybrid insight”
                                                            non-real-time data where possible,       as often as possible. This calls not
In 100 days, create a data velocity strategy to match the   blending fast and slow to solve          only for changes in architecture
speed of your insights to the window of opportunity         problems cost-effectively. Of course,    but for changes in skills as well. It
available to act on them.                                   skilled developers already do this;      requires that software-engineering
                                                            for some, it harks back to their         leaders seek out and reward
•	 Survey business units to determine where they have       training in engineering. Enterprise      developers who demonstrate a
   critical decision-making bottlenecks.                    systems are no different. You might,     definite “speed mindset.”
                                                            for example, precompute much of
•	 Determine which decisions are data-processing            your customer analytics. The batch       Those who show an aptitude for
   dependent.                                               analysis from your weekly churn          blending real-time insight with
                                                            report may tell you that you’re          batch insight—and knowing when
•	 Prioritize opportunities based on the cost-benefit       in danger of losing a longtime           to use each—will be extremely
   tradeoffs for accelerating the decision. Speed           customer, but discovering that           valuable. For example, take the case
   costs money.                                             that customer, already identified        of a healthcare-insurance provider
                                                            as at-risk, is currently browsing        that has to meet a tight deadline
•	 Create tactical deployments based on the prioritized     lower-cost service options on your       on a government mandate to
   opportunities with current tools and methods.            Web site could give you the hook to      predict subscriber attrition. The IT
                                                            find a way to keep from losing your      group can run the work in batches
•	 Data champions should update the data catalog to         customer altogether.                     to meet the compliance deadline,
   incorporate data-processing criteria.                                                             but over the long term, the group
                                                            As the challenges of accelerating        can use the insights from that
                                                            data become more sophisticated—          work to understand and predict
                                                            involving soaring volumes of             “attrition propensity” in every other
                                                            unstructured data, for example—the       interaction with insured patients and

Trend 3. Data Velocity                                                                                                Accenture Technology Vision 2013

use that insight to tailor messages     to have strong risk management, a lot     This time next year
and content that will seek to engage    of cash, the willingness to invest even
the patient and combat the              when the future is unclear, and           In 365 days, begin to transform key processes,
attrition risk.                         great people.”                            accelerating the insights where the increased velocity
                                                                                  leads to tangible business outcomes.
In short, we can realistically expect  To be sure, the rise of volatility
                                                                                  •	 Use your data catalog to create a strategic view of the
that many organizations will do        and market turbulence puts more
                                                                                     data that creates bottlenecks.
what they can to push for faster       emphasis on the need to get risk
data processing by using non-real-     management right. But there is more        •	 Determine if current infrastructure already supports a
time approaches, weaving in more       to it than that. Accenture has found          turnkey solution that alleviates these bottlenecks. (e.g.,
and more real-time modes as time       that several high performers view             use of HANA for SAP).
and funding allow.                     ongoing uncertainty as nonstop
                                                                                  •	 Test and deploy required technologies and sources of
                                       opportunity. More and more of these
                                                                                     data that improve your data-processing bottlenecks.
A high-velocity                        companies see competitive advantage
opportunity                            in “time to insight,” and as a result,     •	 Update the IT road map and architecture to reflect
                                       they are investing not only in the            additional technologies and data sources.
In a recent letter to shareholders, GE tools that can help them accelerate
                                                                                  •	 Deploy the next set of prioritized opportunities that will
chairman and CEO Jeffrey Immelt        their data cycles but also in the skills
                                                                                     leverage the new architecture.
nicely summed up his team’s            and capabilities that reflect a “need
perspective on the need for agility    for speed.” For them, increasing data      •	 Measure business outcomes and review the catalog for
and responsiveness: “When the          velocity isn’t just an abstraction or an      additional opportunities.
environment is continuously unstable, obscure objective for IT professionals;
it is no longer volatile. Rather, we   it is a business necessity that gives
have entered a new economic era....    them a chance to open up a big lead
Nothing is certain except for the need on their competitors.

Trend 1. Relationships at scale                                     Accenture Technology Vision 2013

                           Seamless Collaboration
                           Right channel, right worker, right job

Trend 4. Seamless Collaboration                                                                           Accenture Technology Vision 2013

Seamless Collaboration
It is time for the enterprise to reimagine the way its employees work. The rise in social networking has
breathed new life into collaboration. Users’ new social behavior and growing expectation that every app
will be “social” are pushing companies to create new user experiences. However, to increase productivity,
enterprises must move beyond standalone social and collaboration channels; they must begin to directly
embed those channels into their core business processes. The new approach: build social, collaborative
applications throughout the enterprise.

                                                      Enterprises are always pushing to       collaboration within the enterprise.
                                                      enhance the way their employees         But many are looking at it the
                                                      communicate with each other.            wrong way. Consumers widely use
                                                      The reasoning is simple: better         Twitter, but that does not mean that
                                                      communication leads to faster and       deploying Twitter to employees will
                                                      higher-quality work, which, in turn,    solve the communication challenges
                                                      leads to increased productivity. They   a company faces. Facebook is highly
                                                      see social technology changing the      social and incorporates e-mail
                                                      way users interact and collaborate      and the sharing of photos and
                                                      with each other, and they naturally     documents, but that doesn’t make it
                                                      want to harness that proclivity         appropriate for the corporate world.
                                                      toward communication and

Trend 4. Seamless Collaboration                                                                                                   Accenture Technology Vision 2013

Why doesn’t it translate? Simply put,   sites. But in the consumer setting,
motivations and behavior differ in      enterprises are motivated to adopt
each sphere. In their personal lives,   the technologies that consumers
people are internally motivated to      use to make their lives easier. They
want to follow the details of their     now need to do the same for their
friends’ and family’s activities;       employees: use these technologies
people are social, and the drive        to make employees’ jobs easier.
to stay in touch and connected          Enterprises that want the benefits
is strong. At work, people have a       of a highly collaborative, social
different motivation: to get their      workforce must integrate such
job done as quickly and effectively     technology into the systems that
as possible. However, using social      employees use every day—and             do their job and improve their       integrate the social technologies
tools as designed today, to follow      clearly demonstrate to those            productivity themselves. Companies   into its business processes and the
coworkers en masse, often becomes       employees how it will make them         need to go beyond what social        software that supports them. This
more of a time sink than a              better at their job.                    sites are doing, what they might     means companies can’t wait for
time saver.                                                                     be offering consumers on websites,   software vendors to build a bolt-on
                                        Unfortunately, enterprise               and look to new ways to solve        solution to address strategic needs.
That doesn’t mean social                collaboration today is still a set of   the collaboration challenge. They    To realize these gains, it will be the
technologies won’t work for             siloed communication channels,          need to use collaboration and        enterprise’s job to actively identify
enterprises. In fact, companies         from e-mail to videoconference to       social channels in such a way that   the core processes where improving
have been extremely successful          social-activity streams (basically      they have the potential to create    productivity will drive the most value
at streamlining interactions with       a timeline of activity, similar to      specific, measurable productivity    and then to weave in the tools. For
consumers—for example, by               what you see on a Facebook page).       gains. The real productivity gains   example, in a recent survey of more
integrating instant messaging into      Users are expected to figure out        from these technologies will         than 220 CRM decision makers,
e-commerce and technical support        how to use those channels to            stem from a company’s ability to     Nucleus Research found that adding

Trend 4. Seamless Collaboration                                                                                                      Accenture Technology Vision 2013

social capabilities to CRM drives      Why now?                                 kind of effortless communication        are demanding more from
an average increase in sales staff                                              within the applications that support    employees; workers are expected
productivity of 11.8 percent.i         Tackling collaboration now is both       their jobs. They are becoming           to be constantly informed while
                                       easier and more important                more comfortable with sharing           producing faster results and better
Integrating collaboration channels     than ever.                               information, in essence becoming        decisions. All the while, the deluge of
into business processes has the                                                 more transparent about what they        information being thrown at them is
potential to both streamline the way   It’s easier because employees are        do, why, and its importance. By         increasing. Keeping up is a challenge
employees work and make business       already inclined to collaborate; it is   aligning users’ newfound tendencies     as it’s estimated that in most
processes more efficient. Social       the natural way that people work.        for transparency and social             organizations the volume of data is
tools and strategies will provide      And with the introduction of social      interaction with business goals,        expanding by 35 to 50 percent
the mechanisms and metaphors to        technology into their personal lives,    businesses have an opportunity          every year.ii
integrate them effectively.            they are looking for that same           to deploy collaboration in a way
                                                                                that their users will actually adopt.   In the face of these competing
                                                                                Social tools, such as Yammer and        demands, employees must consume
                                                                                Chatter, are rapidly maturing. Both     increasing amounts of information

 “ Every worker is increasingly an information
                                                                                offer APIs that let companies more      and context. They also expect and
                                                                                easily integrate them into their        demand more transparency, not only
   worker. Businesses are demanding more                                        applications. In the open-source        from their colleagues but also from
                                                                                world, the OpenSocial API lets          the business processes and functions
       from employees; workers are expected to                                  developers incorporate collaboration    surrounding them. They expect a
       be constantly informed while producing                                   in a similar way.                       “frictionless” capability so that they
       faster results and better decisions.
                                                                                                                        can do their jobs faster.
                                                                                At the same time, it’s important
                                                                                because every worker is increasingly    But while the number of different
                                                                                an information worker. Businesses       roles that need to leverage

Trend 4. Seamless Collaboration                                                                                                  Accenture Technology Vision 2013

information has increased, the need    with colleagues. Each new channel      distributed supply chain. It facilitates Relationship Management platform,
for employees to share their data      has allowed organic growth of          dialogue and education, enabling         now allow companies to connect
has also exploded. The result: the     collaborative interaction between      colleagues and business partners to      collaboration tools into their ERP
information technologies that have     users. While each of the channels is   easily share knowledge and learning.     and CRM packages. In addition,
been implemented have forced users     flexible enough on its own, the ad     This simple concept needs to be writ has integrated its
to figure out for themselves how to    hoc nature limits the ability of any   large across the enterprise.             Chatter collaboration tool into
share and distribute information.      channel to grow into a tool that                                                its PaaS and SaaS applications.
                                       serves all facets of collaboration.    Some packaged-software developers Collaboration platform Jive allows
                                                                              are already adding these new             companies to layer collaboration
Embedding social-                      Nor has there been a lack of effort at capabilities to their applications. SAP, on top of specific tasks, such
                                       collaboration. Companies have spent with its Jam tool (including elements as software development. The
driven collaboration                   millions on tools, but the outcomes    of its StreamWork collaboration          ultimate result: embedded channels
into the business                      and benefits have hit their limit.     platform), and Oracle, with its Social combining search, knowledge
                                       To move forward from this impasse,
The problem within enterprises has     enterprises must move beyond
never been a lack of communication.    tools and integrate social-driven
If anything, there’s been a plethora   collaboration into the business
of methods at varying degrees of       process. For example, adding
maturity, each providing a needed      the ability to comment, instant
element to employees’ efforts to       message, or follow a product
share information. From e-mail         through its activity stream within
to videoconferencing to instant        an order fulfillment application
messaging to Twitter, employees can    promotes a free-flowing exchange
always find a way to communicate       of ideas otherwise absent within a

Trend 4. Seamless Collaboration                                                                                                      Accenture Technology Vision 2013

management, workflow, and               reimaging how a law firm is built.       Even more importantly, businesses      contacts. Integrated functionality
collaboration, which deliver the        It has created its own cloud-based       can benefit from more effective        delivers more of what a user is trying
prized ability to help users more       platform that embeds the social and      business processes—conducted more      to accomplish with any given task.
easily and effectively do their jobs.   collaboration efforts needed between     quickly, with stronger outcomes and
                                        lawyers and their clients, into the      more transparency. By leveraging
By tying the integrated collaboration   processes. Matter diaries, budgets,      the insight of appropriate subject-    Adoption: bigger is
experience to business processes,
disparate channels evolve from
                                        and task applications are shared
                                        seamlessly with those that have
                                                                                 matter experts (who can now
                                                                                 answer questions once rather than
separate applications into a single     access, allowing lawyers and clients     repeatedly), employees can increase    The more people who use a
user experience, one not only           to work on their cases collaboratively   cycle and response times, while        collaboration tool, the more benefit
easier to use but also better at        from any location. The collaboration     making better decisions. Enterprises   everyone derives. However, just
retaining exchanged information.        technology isn’t layered onto the        can now rely on better insight and     making a tool available doesn’t
For example, startup Clearspire is      process; it has become the process.iii   expertise—as well as consistency in    mean it will get adopted. If an
                                                                                 areas such as sales and marketing.     enterprise focuses on creating a
                                                                                                                        tool solely designed to increase
                                                                                 From the standpoint of individual      overall company productivity,
                                                                                 users, such integrated systems         that tool won’t necessarily make

 “ By tying thetointegratedprocesses,
   experience business
                            collaboration                                        deliver a richer experience.
                                                                                 Employees’ frustration at not being
                                                                                                                        the employee’s life any easier.
                                                                                                                        (Remember the initial resistance
                                                                                 able to find the right information, or to CRM tools among salespeople?)
       disparate channels evolve from separate                                   having to use multiple applications    When enterprises focus on the
       applications into a single user experience.
                                                                     ”           or methods to do so, will decrease.
                                                                                 At the same time, the accuracy
                                                                                 of the information they get will
                                                                                                                        process without accommodating
                                                                                                                        the employee, adoption will lag.
                                                                                                                        If the usefulness isn’t obvious,
                                                                                 increase thanks to better context and businesses will never see any ROI.

Trend 4. Seamless Collaboration                                                                                                          Accenture Technology Vision 2013

                                                                                   In the short term, job-centric            sometimes inaccurate, estimates of
                                                                                   enablement will tie communication         productivity boosts that enterprises
                                                                                   and collaboration to specific             must render today.
                                                                                   activities in order to increase their
                                                                                   velocity and efficiency and make          Collaboration channels that are
                                                                                   employees’ jobs easier. Done right,       more process-specific will also lead
                                                                                   this will both entice and delight         to more easily measurable benefits,
                                                                                   employees, spurring adoption and          which in turn can be analyzed and
                                                                                   productivity gains for the most vital     optimized. Such channels also create
                                                                                   tasks within a company.                   an opportunity to make data-driven
                                                                                                                             decisions about user productivity,
We recommend the following              derive specific productivity gains         In the long term, rising adoption         informing both individual and
adoption model. Stop thinking           within specific tasks. In one example      feeds enterprise productivity.            workforce performance assessments.
about yesterday’s siloed                from a customer,            Leadership can have better insight
collaboration channels that relied      the vice president of IT at Enterasys      into teams, groups, processes, and        For example, it may be hard to
on ad hoc usage and general             logged into Chatter and noticed            ultimately the entire enterprise’s        measure the value of giving
productivity gains. Start with a        that a salesperson was targeting a         activities. The potential is a virtuous   technical-support agents the
targeted, user-centric model that       lower-level prospect at a company          circle in which individual activities     ability to chat through text or
supports specific work activities;      where the VP of IT employee knew           become more efficient, thus               video directly with higher-tier
think about how you would develop       the CIO. The VP connected the two,         triggering overall gains across the       support staff. But by tying the
such an application if you were         and the salesperson closed the deal.       enterprise. By moving from ad hoc to      collaboration tools directly to the
rolling it out to customers rather                                                 business-centric usage, enterprises       trouble-ticket process, you can more
than employees—that is, make it as      This requires looking at two goals:        can better instrument and measure         easily measure its effectiveness.
enticing and easy to use as possible.   one short-term, the other                  how collaboration helps people do         Comparing rates of ticket closures
Drive more job-specific usage and       long-term.                                 their jobs, as opposed to the general,    with and without the use of chat

Trend 4. Seamless Collaboration                                                                                                   Accenture Technology Vision 2013

sessions, companies can see whether     this new paradigm, employees will       partner with the business, taking a   Enterprises will also need to begin
there’s an improvement that ties        be collaborating with objects too.      business-centric view and actively    looking at ways to automate sharing.
directly back to cost savings. Once                                             understanding the business            Employees are willing to be more
the process is instrumented and         First, collaboration becomes a          processes. The technologies must      transparent, but taking the time
quantified, an enterprise can use the   partnership between the business        work for the process, rather than     to share information at each step
data to reconsider how it can further   and IT. Currently, it sits squarely     the other way around. There may       of a process can quickly become a
optimize the dissemination of           under the purview of the CIO, who       still be separate channels for        burden, especially when information
such calls.                             supports the channels. While IT         search, knowledge management,         must be distributed among
                                        will still own the channels, how        and workflow, but IT should work      large groups.
                                        employees collaborate will be the       to either minimize fragmented
Instilling a                            purview of the business,                use within the enterprise or figure   But sharing is not limited to
collaborative culture                   driven by the needs of the              out how to deploy them as part        people; social metaphors can also
                                        business processes.                     of a highly flexible collaboration    be applied to objects. For example,
Embedding collaboration requires a                                              platform.                             the new GEnx jet engine—currently
cultural shift within the enterprise    As part of this cultural shift, IT’s
to change the way it looks at           role will change. It must provide
both its workers and its business
processes. It involves new ways
                                        a flexible platform that will allow
                                        the business to integrate the
                                                                                  “ Because the line of business, one-size-
                                                                                    within each
                                                                                                 requirements will differ
of thinking about issues within         collaboration channels it needs
and beyond technology, including        into the applications it uses.                fits-all collaboration tools will no longer
new roles and responsibilities, for                                                   suffice. IT must partner with the business,
IT, for business leaders, and for       Because the requirements will                 taking a business-centric view and actively
employees across the enterprise. It     differ within each line of business,
                                                                                      understanding the business processes.
will also redefine who—and now,
what—people collaborate with. In
                                        one-size-fits-all collaboration
                                        tools will no longer suffice. IT must                                                                    ”
Trend 4. Seamless Collaboration                                                                                       Accenture Technology Vision 2013

Your 100-day plan                                               a component of Boeing’s new              and find the right answers to their
                                                                787 Dreamliner—has the ability to        questions directly within the context
In 100 days, redefine your collaboration strategy; prior-       provide newsfeeds to which service       of their work, they’ll quickly become
itize based on business process enablement.                     teams can subscribe. Allowing the        smarter, more responsive, and more
                                                                engine itself to automatically share     productive. It will be clear who’s
                                                                its status allows service teams to       participating and contributing, just
•	 Catalog the tools that are currently being used              more easily maintain it, reducing        as it is on social-media sites today,
   (supported and unsupported) to collaborate across the        cost and increasing its lifespan. “The   and it will be easy for employees to
   organization.                                                idea of connecting a machine to a        reach out for information.
                                                                social network is really exciting,”
•	 Determine a set of quantifiable business metrics             says GE’s CMO, Beth Comstock.            But that’s just the start of what’s
   to measure the success of your collaboration services        “Social will help us deliver a better    possible. As part of the broader
   architecture.                                                engine than ever before.” v              movement to consolidate siloed IT
                                                                                                         capabilities into business processes,
•	 Identify and prioritize business processes where increased                                            we expect to see deeper and more
   productivity through collaboration will drive the most                                                widespread convergence of search
   value.                                                       What collaboration                       and knowledge-management
                                                                will look like soon                      activities that complement
•	 Deploy collaboration to the highest-priority processes to                                             collaboration: effectively funneling
   create demand for additional deployments.                    The new face of collaboration will       and filtering large amounts of
                                                                show up first as social interactions     information to employees. The
•	 Review and implement preliminary incentives for              are integrated into business             underlying challenge is to create
   behaviors, evaluations, and personal metrics to              processes. When employees are able       a user experience that will help
   encourage collaboration.                                     to chat, share information, identify     employees get the information
                                                                specialists, get recommendations,        they need when they need it. The

Trend 4. Seamless Collaboration                                                                                     Accenture Technology Vision 2013

collaboration platform will capture       processes actually work—and they’ll   This time next year
insights, allowing employees to           be able to make them even more
search an enterprise’s collective         efficient going forward.              In 365 days, implement your new strategy to weave the
knowledge from within the platform.                                             collaboration platform into the highest-priority business
Accenture believes that enterprises
                                                                                •	 Update your strategy with best practices established in
that take advantage of converged
                                                                                   “early adopter” industries.
collaboration have an opportunity to
see significant productivity gains. By                                          •	 Use lessons learned from current implementations and
enabling employees to work smarter,                                                industry best practices to build your collaboration
they are more aware of important                                                   services architecture.
context for their decisions and
                                                                                •	 Establish a cross-functional team to design and evaluate
actions. Workers will be more likely to
                                                                                   user experiences of the collaboration services
identify problems sooner, reliably find
the fixes they need, and share the
solutions with the right people.                                                •	 Leverage IT and the business to embed collaboration
                                                                                   services into a prioritized list of business processes.
Further, we expect to see a network
                                                                                •	 Measure the business impact of your initial deployments
effect in which increasingly
                                                                                   to drive demand among other business units.
collaborative employees create
increasingly productive organizations.
As enterprises quantify their
collaboration efforts, they will reveal
a more complete picture of how
their employees and their business

Trend 1. Relationships at scale                          Accenture Technology Vision 2013

                           Software-Defined Networking
                           Virtualization’s last mile

Trend 5. Software-Defined Networking                                                                       Accenture Technology Vision 2013

Software-Defined Networking

With virtualization investments already paying off in servers and starting to pay off in storage, businesses
must turn their attention to virtualizing the network in order to extend the life of their infrastructure and
reap the full value of their virtualization investments. Like other virtualization technologies, software-
defined networking (SDN) has the ability to radically change the flexibility with which businesses and IT
operate. You may think of networking as a low-level technology, but this aspect of it has the ability to
transform enterprises. With SDN, businesses can finally realize the vision of a dynamic enterprise.

                                                       Businesses have invested a lot          there’s been no easy way to make it
                                                       in all phases of virtualization.        dynamic—until now.
                                                       Those investments were certainly
                                                       worthwhile, but they have focused       When enterprises unlock agility in
                                                       primarily on reducing costs. The        their data center network using
                                                       virtualization effort has resulted in   what’s known as software-defined
                                                       more efficient infrastructures, but     networking (SDN), they have the
                                                       it has not contributed to helping       potential to create a dynamic
                                                       the business become more dynamic        enterprise. In a dynamic enterprise,
                                                       or more agile. The network, the         businesses can deploy new projects
                                                       foundation of the data center and       quickly and determine just as quickly
                                                       the enterprise, has remained an         whether they are successful or not.
                                                       untapped opportunity because            Enterprises are halfway toward this

Trend 5. Software-Defined Networking                                                                                                     Accenture Technology Vision 2013

goal of agility—they currently use      is a key technology for delivering
virtualization to spin up servers and   flexibility and agility—a vital
storage without having to procure       component in differentiating the
more hardware, and then spin them       company. In a world that demands
down again when projects end or fail    constant change, SDN enables IT to
to meet expectations.                   unleash the power of virtualization
                                        and makes it easier to move to
SDN involves decoupling hardware        the cloud. Put simply, SDN makes
from software for a higher degree       it easier for enterprises to handle
of flexibility. By uncoupling the       change, and change is an imperative
hardware, SDN essentially eliminates    for a digital business.
the need for applications to                                                     more while spending less in the data       and streamlines the overall
understand the internal workings                                                 center. Server virtualization spurs        application deployment process.
of the routers and switches
                                        Virtualization off to                    consolidation; reduces the associated
that connect multiple networks.         a good start                             costs of hardware, space, power, and       On a grander scale, virtualization
Software, not hardware, creates the                                              cooling; and increases the ability to      lets businesses take advantage of
connections that stitch together        To better understand the potential of    run applications anywhere. It helps        cloud computing, SaaS, and IaaS
multiple networks. Suddenly,            SDN, let’s step back and look at the     improve availability and reliability, by   opportunities—that is, the ability
companies can reconfigure               virtues of virtualization for the data   making both disaster recovery and          to move processes and services to
the connectivity of systems             center. Virtualization has been a boon   business continuity more flexible than     virtualized cloud environments. For
without changing their physical         to businesses and governments; for       ever before. Done well, it helps reduce    instance, consider the ability of a
characteristics.                        example, the U.S. government saves       the business’s dependence on new           retailer to easily add computing
                                        nearly 20 percent of its annual IT       hardware (and alleviates associated        capacity to its e-commerce system
This is a radical new way of looking    budget through virtualization.i          procurement and installation delays),      starting on Black Friday and
at the network. To the business, SDN    These savings enable businesses to do    lets IT automate server provisioning,      continuing through the holiday

Trend 5. Software-Defined Networking                                                                                                        Accenture Technology Vision 2013

                                                                                    more agile—is still missing. That     between them are still static and
            The software-defined network,                                           missing piece is the dynamic network. brittle. SDN frees applications from
            combined with existing virtual                                                                                having to maintain knowledge of the
            infrastructure, is a radical step toward                                                                      changing network. While businesses
                                                                                                                          have derived much flexibility from
            enterprise flexibility.                                                 Unleashing the full
                                         ”                                          potential of dynamic
                                                                                                                          virtualization, SDN helps them handle
                                                                                                                          the increasing complexity of moving
                                                                                    networks                              parts in a dynamic data center.

                                                                                    Enter SDN. The software-defined             What comes of decoupling the
                                                                                    network, combined with existing             control of the network from the
shopping season, or the ability of       is decoupled from specific storage         virtual infrastructure, is a radical step   physical network? Remember the
a company to use Amazon EC2 or           devices and protocols, it is easier to     toward enterprise flexibility.              savings that server virtualization
Microsoft Azure to run a pilot project   access and manage. And desktop                                                         brought? Instead of having to
without actually procuring servers       virtualization has made the dream of       Until recently, the network has             procure and install a server and
internally. Whether used for long-       centralized management come true,          withstood the onslaught of                  then deploy the applications on it,
term offloading of processes or short-   while still delivering the functionality   virtualization (the unrelated concept       a technician (or another reasonably
term computing needs, virtualization     that users demand.                         of virtualized local area networks          experienced person taking advantage
brings an unprecedented level                                                       notwithstanding). Having virtualized        of self-service provisioning) spun
of flexibility.                          Businesses have deployed many              all the disparate pieces of the data        up a new virtual machine and the
                                         forms of virtualization, and most of       center, the remaining task is to            application was available. Now,
Storage virtualization, with offerings   those deployments have been widely         make the connections between                multiply that simplicity across an
from VMware, NetApp, and others, is      successful. But crucially, enterprises     them dynamically configurable.              entire network. At eBay, according
knocking down the barriers between       are still locked down by the network.      The data center’s resources may be          to JC Martin, who oversees the data
computing and storage. Once data         The one benefit they seek—becoming         dynamic, but the communications             center infrastructure for eBay’s

Trend 5. Software-Defined Networking                                                                                                Accenture Technology Vision 2013

marketplace businesses, “We’re           SDN is the last step in making the   accommodates ongoing flexibility.         networks simplify the connectivity
allowing our people to create virtual    promise of the cloud and network     Its benefits are tangible. One of the     aspect of these configuration
environments much like they used to      interoperability come to fruition.   hardest aspects of IT is connecting       changes. By eliminating the need to
create complete physical networking                                           the flow of external data across          reconfigure the physical network,
environments—except they can do it                                            disparate networks depending on           SDN delivers a new zenith of
in minutes.” ii                          SDN: the zenith of                   business needs. (How many mergers         network interoperability.
                                         interoperability                     have failed because of the inability to
But SDN encompasses more than just                                            integrate IT systems?)                 It makes a variety of capabilities
the ability to program and manage        Enterprises have already begun                                              more accessible to more enterprises.
data center networking activities. It    to pay attention to what SDN can     Reconfiguring the network is           Consider the scenario of deploying
enables the wholesale abstraction        deliver. IDC estimated in December   complex, time-consuming, and labor- a SaaS-based CRM system. Using
of the network layer, in order to        2012 that the worldwide SDN market   intensive because it requires focusing SaaS, or public cloud technology,
take advantage of any network            would grow from $360 million in      on dedicated network hardware,         makes it easy to get the system up
infrastructure. This encompasses not     2013 to $3.7 billion by 2016. iii    such as routers and switches. By       and running quickly; to be truly
just the private cloud in the data                                            moving beyond the hardware into        useful, though, the system must still
center but also the ability to move      SDN provides the foundation for      software, in which changes can         connect to other internal systems. To
data into hybrid cloud deployments.      the dynamic enterprise because it    be programmed easily, dynamic          link inventory to customers, it must

                                “ By eliminating newneed to of network interoperability.
                                  SDN delivers a
                                                            reconfigure the physical network,

Trend 5. Software-Defined Networking                                                                                                     Accenture Technology Vision 2013

                               “ The rigiditythe the network takes its toll, becauseevery link of
                                 you touch
                                                 network, you have to ensure that
                                                                                     every time

                                 connectivity works properly.
connect to your ERP’s inventory          the data and services properly, and      every time you want to deploy a          startups have recognized the value
system. To grasp what customers are      then test to make sure that they         new service, upgrade an old system,      of SDN and are offering options. In
saying about your product, it must       work on the upgraded system. Here,       improve a workflow, enhance an           addition to opening up access to the
connect to social-media applications.    too, the rigidity of the network takes   operation—essentially, anytime you       software capabilities in its existing
All this connectivity involves           its toll, because every time you touch   want to employ innovation to gain        products, Cisco Systems purchased
reconfiguring the network so that        the network, you have to ensure          an advantage. It’s hard enough           SDN startup Cariden at the end of
the data flows appropriately. SDN        that every link of connectivity works    outmaneuvering the competition           2012 for $141 million and funded
provides the foundation for cloud        properly. It doesn’t even have to be     without diminishing your capabilities.   “spin-in” company Insiemi, created
flexibility—changes associated with      a question of application renewal—       Software-defined networking              by several Cisco engineers, earlier
swapping out one cloud provider for      every time you want to fire up a         instead unleashes those capabilities.    in the year with a $100 million
another are more easily isolated.        new cloud application, you have                                                   investment. Meanwhile, VMware
                                         to connect it to your data center,                                                entered the market by purchasing
The challenge continues when any         whether for backup or data sharing       The SDN landscape                        Nicira for $1.26 billion as part of its
of these applications has to be          or simply creating a hybrid cloud.                                                overall virtualization strategy. Nicira’s
upgraded. It isn’t as easy as turning                                             Who will lead you to the agility         founders created the open-source
on new hardware and powering             Without updating your network, you’re    of SDN? Not surprisingly, both           OpenFlow network protocol, a key
down the old. You have to migrate        throwing up your own roadblock           traditional networking providers and     part of many SDN efforts.

Trend 5. Software-Defined Networking                                                                                                   Accenture Technology Vision 2013

                                                                                 for building cloud services. According   Soon, companies may be able to take

“ Network virtualization all the waynetwork
  in the software realm,
                         creates a
                                                                                 to eBay executives, the company
                                                                                 also uses the two technologies to let
                                                                                                                          advantage of this fast ramp-up of
                                                                                                                          networks even before they invest
                                                                                 workers create virtual networks for      in SDN themselves. Cloud services
     to virtual switches and routers. This frees                                 running internal applications. eBay’s    provider Rackspace, a competitor to
     applications from the need to understand the                                OpenStack cloud is still limited—a       Amazon, is starting to use Nicira-
                                                                                 few thousand machines supporting         based virtual networking services
     internal intricacies of the physical network.
                                                                      ”          a couple hundred projects—but it is
                                                                                 designed to provide a template for
                                                                                                                          with clients that seek to set up
                                                                                                                          cloud-based networks quickly
As frequently happens with              infrastructure changes. Which path       how the company will roll out the        and efficiently.
emergent technology, companies          is better? That’s for companies          capabilities more broadly in
generate different approaches; in       themselves to determine. The result      the future.iv                            Nicira is not alone by any means.
the case of SDN, some tout “network     will be similar to other technology                                               Other startups, such as ADARA
programmability,” while others          battles in the past: both will offer     SDN allows eBay to be innovative         Networks, Big Switch Networks,
promote “network virtualization.”       value and viability, and they will       faster. Not only can eBay’s developers ConteXtream, Embrane, Plexxi, and
What’s the difference? Network          coexist depending on circumstances       create and test new network-based        Vello Systems, are hanging their
virtualization creates a network in     (think Java versus Microsoft’s .NET in   products and services faster, but eBay hopes on the OpenFlow protocol.
the software realm, all the way down    application development).                can deploy those services faster.        Many established network providers
to virtual switches and routers. This                                                                                     have aligned their capabilities to
frees applications from the need to     One early adopter of SDN is eBay,        An added benefit: because SDN            OpenFlow as well, while still offering
understand the internal intricacies     which is currently using a solution      allows for better utilization of current proprietary APIs.
of the physical network. Network        from Nicira inside the data centers      resources, companies can save
programmability involves centralizing   serving its online marketplaces.         money on new hardware and energy Other early adopters are starting
control of the routers and switches     eBay uses Nicira in conjunction with     costs (for more on this capability, see to come forward, too. Although
in order to reconfigure them as         OpenStack, an open-source platform       the section on network optimization). Big Switch Networks lists Fidelity

Trend 5. Software-Defined Networking                                                                                              Accenture Technology Vision 2013

Investments and Goldman Sachs as         moves notoriously slowly. That’s why
customers, neither is saying just how    the market is seeing fragmentation
extensively it’s using the technology.   to date. No single player or
The ability to move money fast           approach meets the traditional data
and make transactions faster has         center’s needs for SDN. Companies
always enticed the financial services    should prepare for an extensive
industry, which can increase revenue     consolidation and acquisition cycle
through faster trades. The industry      over the next 12 to 18 months.
also depends on high reliability from
its networks. The ability to make
their networks more efficient makes
them strong contenders for SDN’s         What enterprises can                    According to Technology Business    Although SDN ushers in the
capabilities.                            expect from SDN                         Research’s Scott Dennehy, “Customer foundation for a highly dynamic
                                                                                 adoption of SDN will happen quicker enterprise, it’s important to note
Picking the winners in this market       Lest it sound too good to be true,      at the SMB level, as these customersthat a high degree of dynamism is
is still anyone’s guess. Established     SDN is complex because of all that      will be attracted to SDN’s promise  anathema to most businesses. They
vendors are facing the typical           it touches. It requires tools and       of networks that are cheap, easy to don’t want things dynamic—they
challenge of how to embrace a new        frameworks that are still developing.   deploy and simple to maintain.”     want them stable. Change too often
technology without cannibalizing         The interim alternative of doing it                                         equates to something breaking.
their existing products. New             yourself is time-consuming and          As with server virtualization, SMBs Nobody—not the business and
companies relying on open-source         expensive. There’s a difference         will lead the way not only in the   not IT—wants that. This transition
advances face a different challenge:     between virtualizing your data          search for agility but also from an proves once again that sometimes
how do you provide value while           center and virtualizing your entire     incredible focus on affordability.  the hardest challenge in technology
waiting for that industry standard       network. But on the former scale, the   Watching which technologies benefit is not changing the systems but
to gel? The standardization process      benefits are too tangible to ignore.    SMBs never hurts enterprises.       changing the people that run them.

Trend 5. Software-Defined Networking                                       Accenture Technology Vision 2013

But for both enterprises and SMBs,      Your 100-day plan
this is an opportunity to take the
advantages and cost savings they’ve     In 100 days, create an SDN mandate that frames value
derived from server and storage         to the business and the impact on IT.
virtualization and apply them to the
data center. Consider the savings
from network hardware investments,      •	 Assign a champion responsible for SDN trends and
management, and upgrades.                  technologies.

Best of all, agility comes along for    •	 Build an initial understanding of the state of SDN.
the ride. More than ever before, SDN
will deliver the responsiveness that    •	 Establish a “test kitchen” environment and begin to bring
businesses have been demanding             SDN technologies in-house for evaluation.
from IT for years—the ability to
respond quickly, be proactive in
integration, and help ratchet up
competitive advantage. With SDN,
companies demanding innovation
from IT and their business units will
now have a foundation to build
upon, one that allows them to try
new projects with less risk, and
respond faster to those that promise
beneficial outcomes.

Trend 5. Software-Defined Networking                        Accenture Technology Vision 2013

This time next year
In 365 days, create an SDN strategy defining the busi-
ness case and the implementation approach.

•	 Prioritize the areas where SDN will have the largest
   business impact.

•	 Create a road map for the SDN deployment plan.

•	 Prepare the aggregate SDN business case that combines
   benefits from network agility and cost savings from
   network optimization.

•	 Assess IT organizational skill with respect to SDN and
   train or recruit to fill the gaps.

•	 Develop a network transformation plan to embed SDN
   into the corporate architecture.

Trend 5. Software-Defined Networking                                                                                              Accenture Technology Vision 2013

Sidebar: Network Optimization

Beyond the flexibility that SDN        Google has used OpenFlow                data centers to redirect traffic to   wholesale hands-on maintenance
provides to the enterprise data        technology to boost utilization         other, less-utilized data centers     of the infrastructure, as well as the
center are its benefits for the        on its internal network. Currently,     in different time zones. It is also   ability to unlock latent value in
network as a whole. It isn’t for the   most companies get only 30 to           looking at SDN to solve another       your network.
faint of heart—no true optimization    40 percent utilization of their         current problem: the need to
solutions currently exist, so for      networks, but thanks to the             filter content based on parental      SDN has the ability, beyond building
now companies will need to build       programmability of SDN, Google          controls. Currently, Verizon must     more resilient systems, to help
their own solutions. But consider      executives anticipate that soon         send all traffic through a network    create more automated systems.
the advantages that businesses         they will approach 100 percent          filtering device whether it needs     Setting up a network is still mostly
could derive from highly optimized     utilization of the company network.ii   to be filtered or not. With SDN, it   a manual task, one that involves
deployments of data. These include     Like driving up server utilization in   would be able to route content that   change every time the business
specialized routing for specific       the data center, more effective use     needed to be filtered for specific    requests something new, from
content, such as video for special     of the network will unlock huge         customers (for example, parents       SaaS to upgrades. By introducing
events—stockholders’ meetings,         cost savings. Imagine doubling the      with underage children) through       programmability into the equation,
say, or product announcements.         amount of available bandwidth—          a different data center, offloading   SDN brings more and costs less.
IP Infusion is using SDN-based         doubling the pipe—without               other networks and creating more      Few technologies can offer that.
networking gear from Broadcom          doubling your infrastructure.           throughput efficiency.
along with OpenFlow technology to
improve the quality of service for     Verizon anticipates using SDN           If those scenarios aren’t enticing,
mobile video applications.             to relieve loads on individual          consider the ability to replace

Trend 1. Relationships at scale                                   Accenture Technology Vision 2013

                           Active Defense
                           Adapting cyberdefenses to the threat

Trend 6. Active Defense                                                                                    Accenture Technology Vision 2013

Active Defense
Despite an increasing focus on securing the digital business, IT departments struggle to keep pace with
recent advances in security technology. Enterprises know that endpoint security is not enough, but the
move to active defense—risk-based approaches to security management, analytics-driven event detection,
and reflex-like incident response—isn’t yet happening on a broad scale. Although these technologies are
maturing rapidly and communities are forming to expose risks, the biggest barrier is slow adoption of
solutions that already exist. IT’s core challenge: get current with best practices in security while getting
smarter about the new active-defense possibilities and getting real about the journey ahead.

                                                       Just because your car passes its        defense activated? Check. Password
                                                       emissions test each year doesn’t        update routines in place? Check.
                                                       mean you’re doing great things to       Employees’ smartphones shut down
                                                       slow global warming. Nor are you        remotely in case of theft? Check.
                                                       immune to burglary just because you     Payment Card Industry Audit with
                                                       put timers on the lights in your home   only minor findings? Check. Clearly,
                                                       before you leave for vacation.          it feels good to know that everything
                                                                                               appears to be taken care of. But
                                                       It’s much the same story with           the truth is that when it comes to
                                                       organizations that are content to       data security, cybersecurity, network
                                                       work down their security checklists     security—just about any kind of
                                                       at regular intervals. Perimeter         corporate information

Trend 6. Active Defense                                                                                                                 Accenture Technology Vision 2013

security—many enterprises can do           blunt today’s attacks and plug the        for a connected world have been        simply can’t evolve fast enough to
much more to address the risks that        many entry points that highly skilled     brought online, opening up further     keep pace. Essentially, enterprises’
their organizations face.                  attackers can now exploit.                weak points. i                         default mode is perimeter protection
                                                                                                                            when it should be proactive probing,
The burden does not rest solely on         The information security landscape        Yet while some alert enterprises       and isolationism when it should
the IT department’s shoulders. The         has become an intimidating and            are striving to stay abreast of        be integration.
risks incurred are business risks—the      confusing place. Things are harder to     new advances in security, many
harm to intellectual capital when          keep in order: the IT attack surface      others—too many—are now further        Enterprises must shift their thinking
sensitive data is compromised, the         keeps expanding across more devices,      behind than they were a year ago.      and begin to expect that 3 a.m. call
operational risk when business is          more systems, more people, more           Compliance has become the comfort      about a security breach. As a matter
disrupted, the reputation risk when        partners, and broader infrastructure.     zone, but the security “model”         of urgency, they have to close the
personally identifiable consumer           Extensions to the enterprise—think        based on adherence to standards is     widening gap between their practices
information is stolen, and of              cloud and mobility—have created           flawed—largely as a consequence        and current best practices—they need
course the increasing likelihood of        new places for hackers to probe.          of rapid innovation in IT. Standards   to undertake regular actions such
hefty penalties when data security         Threat levels are increasing as
regulations are violated. None of          sophisticated, targeted forms of
these risks goes away unless business
leaders assume responsibility for IT
                                           cybercrime emerge. Governments
                                           and organized crime groups are on           “ Compliance has become the comforton
                                                                                         zone, but the security ‘model’ based
security too.                              the lists of hackers, while hacktivists
                                           and lone wolves are becoming                    adherence to standards is flawed—largely
Although most companies certainly          more dangerous because they are                 as a consequence of rapid innovation in IT.
have invested substantially in IT          benefiting from the established
                                                                                           Standards simply can’t evolve fast enough
security, they are still not taking full   tactics and techniques of these
                                                                                           to keep pace.
advantage of the maturing tools
and services now available to help
                                           organized groups. And legacy
                                           systems that were never designed                                    ”
Trend 6. Active Defense                                                                                                              Accenture Technology Vision 2013

as deploying reflex-like responses     Managing the risks                      that advanced persistent threats        of what’s known about the breaches
to security threats in their midst     when attackers do                       (APTs) have already penetrated your     that are occurring. In doing so, IT
and leveraging analytics to create a                                           organization, often avoiding your       groups and their business colleagues
second line of defense around data
                                       get through                             perimeter altogether. Few enterprises   shift from compliance to action;
and services. And on top of that,      In the past, IT has architected         are truly ready to deal with that       specifically, they put the emphasis
their IT leaders need to keep eyes     everything around the idea of           alarming reality.                       on managing risk, matching their
and ears open for the next round       keeping the bad guys out. Today,                                                responses to the magnitude of
of advancements, the better to help    though, optimal IT security is not      To minimize the damage when             the risks posed to the business.
their organizations prepare more       about complete prevention; it’s         attackers have penetrated, IT groups    Essentially, they are able to think like
creative and more agile responses      about recognizing that attackers will   must find out how, where, and when      the enemy at all times.
and to get more insight into           get through. In fact, it’s no longer    they did so. That means that IT’s
attack profiles.                       just a matter of discovering that       security professionals, working hand    The keys to mastering risk and
                                       someone is trying to penetrate your     in glove with the relevant business     figuring out the big security
                                       firewall; it’s about acknowledging      staff, must design and deploy           picture for your enterprise are
                                                                               processes and systems that allow        in understanding the businesses
                                                                               them to expect and monitor security     processes and the strategic assets
                                                                               compromises in the first place and      that you’re trying to protect. (If
                                                                               react to them before the attackers      you can’t figure out what should
                                                                               can begin to wreak havoc.               be happening, it’s hard to say
                                                                                                                       when someone is doing something
                                                                               This calls for new levels of            “wrong.”) A manufacturer, for
                                                                               awareness—keeping abreast of the        instance, might instrument and
                                                                               state of play of threat actors in       protect the specifications for a
                                                                               general—and for new ways to act on      critical engineering component in
                                                                               what is being learned in the context    order to detect access anomalies

Trend 6. Active Defense                                                                                                                 Accenture Technology Vision 2013

     “   Leading organizations will understand the
         business consequences of inevitable data
                                                                                   immediate shutdown of one portion
                                                                                   of a network coupled with active
                                                                                   monitoring, which, if it detects
                                                                                                                           data to visualization of behaviors and

         leaks and respond proportionally; they get                                that the threat is large or moving      To better understand their risks and
                                                                                   fast, shuts down other parts of the     to detect attacks, leading security
         the idea that different levels of attacks
                                                                                   network. Of course, determining the     organizations will turn increasingly
         require different speed, scale, and types of                              business consequences isn’t easy; the   to data platform technologies—
                                                                                   organizations that succeed at it know   technologies that provide access to
                                                                                   that their security organizations and   and aggregation of data via services.
and to require greater levels of          threats immediately. For instance,       the business must work together to      If they are building the system
authentication in the event of            in the case of the manufacturer          assess and prioritize the risk.         themselves, IT groups are very likely
unusual access—say, an employee           mentioned earlier, the system might                                              to use Hadoop or Splunk; otherwise,
who is supposed to be on                  automatically lock the engineering                                               they may turn to a solution such as
vacation who is downloading               database for a period of time and        Putting in place                        NetWitness, which is designed to
complete specifications.                  also alert the security team.            a second line of                        provide enterprises with a precise
                                                                                                                           and actionable understanding of
Automation can play a big role here.      It’s important to restate that leading
                                                                                   defense                                 everything happening on
Ideally, IT should be able to deploy      organizations will understand            To cope with these new higher-order     their networks.
security solutions and architectures      the business consequences of             security challenges, IT leaders must
that will, like human reflexes, respond   inevitable data leaks and respond        develop a second line of defense        The data platform, and
instinctively to the growing speed,       proportionally; they get the idea that   by leveraging new data platform         accompanying analytical approaches,
scale, and variety of attacks. The        different levels of attacks require      concepts to design, implement, and      allows security to handle large
increasing attack surface supports        different speed, scale, and types of     run systems that shift the security     volumes of fast-changing data—
the case for automated capabilities       responses. A cascade of responses        emphasis from monitoring to             orders of magnitude greater in scale
that detect, assess, and respond to       might, for example, involve the          understanding; from collection of       than traditional log analysis. It will

Trend 6. Active Defense                                                                                                                Accenture Technology Vision 2013

also make it easier to harness new        signed into your computer really         are starting to push conventional      Fingerprinting your
forms of data from the unstructured       is you. In another instance, a data      security boundaries. Unsurprisingly,   enemies…
world, opening up fresh opportunities     platform might assist in making real-    over the last 12 months many of
for security analysis. These platforms    time decisions about who is allowed      the emerging security techniques       New technology developments are
will help organizations acquire a         access to a patient’s electronic         have revolved around data, albeit      making it easier to identify who’s
new understanding of their risk           medical record, based on the patient’s   in markedly different ways than        attacking you. Essentially, they enable
landscapes, explore their data in         history of care.                         conventional security approaches.      security professionals to get closer
new ways, and create more timely                                                   Some of the focus is shifting from     and closer to potential attackers “in
detection and responses to improve                                                 studying your systems to studying      the wild”—helping them identify their
the confidence of the business.           The sharp edge of                        the people using them—that is,         tactics, techniques, and procedures
                                          the latest security                      getting to know your intended users    earlier and track down signs of
In one example, DARPA’s Active            thinking                                 and your hackers alike. Even more      compromised security before damage
Authentication program is exploring                                                interestingly, some new systems        can be done.
new ways to authenticate users            It would be wonderful if these           are geared to keeping hackers from
through their “cognitive footprint.” ii   kinds of security approaches were        knowing you.
Gathering and analyzing large             being practiced regularly today by
amounts of data on your user              IT departments in every industry. IT
behavior creates a picture of the         departments in many organizations
ways you use your computer—the            have made big strides in a lot of
ways you move your mouse or the           areas, as we noted in Accenture’s
language you use in documents,            Technology Vision 2012. But
for instance. Eventually, cognitive       there is much more to be done. IT
footprint software will help your         leaders need to continue looking
organization’s security systems to        ahead, familiarizing themselves
determine that the person who             with security technologies that

Trend 6. Active Defense                                                                                                                Accenture Technology Vision 2013

Similarly, enterprise architectures      whether they are smartphones,
are evolving rapidly to include much     tablets, or laptop computers—the
more capable identity and access         Nok Nok Labs technology enables
management (I&AM) systems.
Authentication and authorization
                                         companies to recognize these strong
                                         authentication capabilities and to
                                                                                     “Authenticationbecoming increasingly
                                                                                      technology is
                                                                                                     and authorization
technology is becoming increasingly      leverage them to deliver a more
                                                                                         adaptive, context-aware, and risk based.
adaptive, context-aware, and risk-
based. More and more of the I&AM
                                         secure experience appropriate to the
                                         risk of the transaction or the identity                                                                          ”
systems are being strengthened with      of the user.
analytics tools that work increasingly
with growing sets of data—               Today’s usage patterns can also help
unstructured as well as structured.      build smart profiles of users and         business trip to India. Or a customer   existing compromised systems while
And risk profiles are being              their computing habits. The idea is       service representative with access to   providing counterintelligence and
used more and more as “trust             that authentication is now less a         customer records might be prompted      recommendations to help prevent
anchors” for sensitive transactions,     simple “are you who you say you           for additional authorization if she     future targeted attacks. Through
based on behavioral and                  are”—based on a simple password,          suddenly attempts a bulk download       hunting operations, including host-
environmental context.                   say—and more a way of establishing        of the whole database.                  based detection, threat-specific
                                         when “authorized access” is out of                                                network analysis, and victim threat
Nok Nok Labs, the new venture            character relative to a user’s normal     At the same time, a new battlefront     profiling, the services identify
from PGP cofounder Phillip               behavior. For instance, a Texas-based     is opening up in the field of           adversaries and find out what they
Dunkelberger, is a good example          engineer who regularly accesses           hacker identification. Security         are after.
of a company helping to simplify         important design data for a product       specialists such as CrowdStrike are
strong authentication.iii Because the    might be asked for an additional          developing powerful capabilities in     Other providers, such as
machines that surround us use are        level of authentication when he           “enterprise adversary assessment.”iv    Mykonos Software, specialize in
delivered with security embedded—        tries to access that data while on a      CrowdStrike’s services help reveal      “fingerprinting” hackers’ equipment

Trend 6. Active Defense                                                                                                                 Accenture Technology Vision 2013

to identify the machine delivering        appropriate response to thwart the      …and making it                           experience at the same time—a win
a script intended to hack a website.      attack. For instance, after detecting   easier for users to do                   for everyone. v
Mykonos’s tools can also create a         a potential attack, the system might
profile of the attacker; that profile     prompt for higher authentication
                                                                                  the right thing                          Research has demonstrated that
can then be shared within an              in the middle of a session to thwart    At the same time, there is growing       system design can greatly influence
industry or within a community of IT      a machine-based attack, while           acceptance of the idea that              a user’s ability to make appropriate
security professionals. To our earlier    throttling bandwidth to the system      better usability can be a powerful       security decisions. At the Georgia
point about proportional responses:       to reduce impact on other resources.    mechanism for increasing security        Institute of Technology, researchers
fingerprinting in this way allows the     This kind of approach would not be      effectiveness—consider a biometric       have studied two persistent
defender to get a better sense of the     too costly in terms of unnecessary      reader checking your fingerprint         problems: user authentication and
actual threat—who is attacking us         system shutdowns, say, but it would     versus having to remember a              e-mail They described
and what they are after—and then          be enough to raise the bar for          complex password. By specifically        two successful design cases that
to properly evaluate it in terms of its   the attacker.                           designing for security, an enterprise    made it easy for users to achieve
risk to the business and mount an                                                 can increase compliance with             their desired security goals, and two
                                                                                  security protocols by making it easier   flawed ones that made it difficult for

   “ By specifically designingcompliance with
     enterprise can increase
                               for security, an                                   for users to do the right thing than
                                                                                  to create a clever workaround. The
                                                                                                                           even very motivated users to
                                                                                                                           operate securely.
                                                                                  key is to understand how people
         security protocols by making it easier for                               want to use the system and what          Guidelines for more usable security
         users to do the right thing than to create a                             they’re trying to accomplish. One        already exist—Georgia Tech
                                                                                  example: security experts at Schiphol    researchers draw on prior work from
         clever workaround. The key is to understand                              Airport in Amsterdam have designed       influential scientist Ka-Ping Yee. The
         how people want to use the system and                                    ways to deploy baggage-screening         guidelines include factors such as the
         what they’re trying to accomplish.
                                                                                  technologies to upgrade security         following: the path of least resistance
                                                                                  while improving the customer             (matching the most comfortable

Trend 6. Active Defense                                                                                                                  Accenture Technology Vision 2013

way to perform tasks with the             to make). Collectively, these factors   objectives of making it more difficult,   Misinformation and misdirection
least granting of authority), active      help designers focus on making it       more expensive, and less profitable       systems hold some of the greatest
authorization (meaning the granting       easy for users to do the right thing    to do their work. (Think of it as the     promise. Allure Security Technology
of authority to others in accordance      most of the time.                       cyber equivalent of a safebox that’s      is one start-up that is developing
with user actions indicating consent),                                            full of nothing but costume jewelry,      decoy documents to defend against
revocability (offering the user ways      Fooling enemies                         perhaps, or stacks of fake $50 bills      data loss, essentially fronting bogus
to reduce others’ authority to access
                                          more of the time...                     in a folder in an office bureau,          files that may cause damage to the
that user’s resources), identifiability                                           for instance.) The systems being          systems of the hacker trying to get at
(presenting objects and actions           In parallel, there is intense           developed range from technologies         them. The real kicker: as these tools
using distinguishable, truthful           activity—and plenty of venture-         that signal to the intruder that he is    become commonplace, they force
appearances), and foresight (that is,     capital funding—going into “active      being tracked to others that deceive      attackers to consider the possibility
indicating clearly the consequences       defense”; that is, into systems that    him with electronic “pollution”—          that the files are bogus, and thus
of decisions that the user is expected    actually engage the enemy with the      cyber smokescreens, if you like.          to question whether an intrusion
                                                                                                                            attempt is worthwhile.vii
                                                                                  It’s important to point out that
                                                                                  the emerging developments owe             Another software provider—
                                                                                  a lot to the momentum seen in             DataSoft—has created what it
                                                                                  several foundation technologies.          calls its Network Obfuscation and
                                                                                  More granular and more flexible           Virtualized Anti-Reconnaissance
                                                                                  levels of system control are possible     System (Nova)—a tool developed to
                                                                                  because of rapid progress with            detect network-based reconnaissance
                                                                                  software-defined networking (SDN)         efforts and to deny the attacker
                                                                                  and because of the advances in            access to real network data while
                                                                                  virtualization across the IT landscape.   providing false information regarding
                                                                                                                            the number and types of systems

Trend 6. Active Defense                                                                                                                  Accenture Technology Vision 2013

connected to the network.viii Nova      Web Intrusion Prevention System          as a way to compartmentalize risks        reconnaissance. Another provider,
is designed to spoof network data       inserts instrumentation into a Web       by setting up virtual environments,       Invincea, relies on virtualization
to attackers, thus revealing their      application to create an invisible       making it much more difficult for         to secure your network against
intentions. Its autonomous agents       minefield throughout. The honey          attackers to “see” the contours of        employee mistakes by protecting the
combine lightweight virtualization,     pots allow you to detect attackers       what they’re trying to access. Putting    employee from all untrusted content.
attacker classification, dynamic        while they’re still snooping but         it in IT security terms, virtualization   Invincea’s technology is all about
rerouting for asset protection, and     before they begin to do damage.          gives the organization more control       containment: it takes the most highly
an array of mechanisms for sending      Attackers are detected when they         over, and more agility in, how it         targeted applications in your network
false information to attackers.         manipulate the honey pot parts of        responds to attacks.                      (the browser, PDF reader, Office suite,
                                        the application. So, because attackers                                             zip files, executables) and seamlessly
Such “honey pots” lure attackers to     are manipulating code that has           The Nova system referred to earlier       contains them in a virtualized
what appear to be more promising        nothing to do with your website          uses large arrays of virtual machines     environment. Every time the browser
targets. The core ideas have been       or Web application, you know with        to detect and prevent hostile             is opened, or any time an attachment
around for at least a decade, but the   absolute certainty that an attack
underlying technologies are pushing     is in progress.
these approaches further, spurred by
the proliferation of security threats
in general.ix                           …and preventing                             “ Think of sandboxing as abyway to up
                                                                                      compartmentalize risks setting
                                        them from knowing
One example: besides developing         you in the first place                           virtual environments, making it much more
tools that can “fingerprint”                                                             difficult for attackers to ‘see’ the contours
attackers, Mykonos Software             “Sandboxing” is another technique
                                                                                         of what they’re trying to access.
has developed deceptive honey
pots to detect attackers without
                                        that is gaining a lot more attention,
                                        thanks largely to developments in
generating false positives. Its         virtualization. Think of sandboxing

Trend 6. Active Defense                                                                                                                  Accenture Technology Vision 2013

comes from outside the network,         infrastructure is denied. In one recent
Invincea creates a segregated
environment for these applications to
operate. That way, Invincea contains
                                        experiment, Bromium’s technology
                                        almost immediately reduced an
                                        attack surface from 1 million lines of
                                                                                     “ There is noshould be waiting for. There
                                                                                       IT leaders
                                                                                                   ‘silver bullet’ technology that

all malware—whether zero-day            codes to about 10,000 lines. xi                  never will be. No one tool, no matter how
or known—and prevents it from
                                                                                         capable, can handle the scope, scale, and
attacking the host OS as a pathway      The next natural step is toward
for breach and lateral movement in      what are being called moving target              complexity of the information security
                                                                                         challenges of today and tomorrow.
your network.                           defenses (MTDs)—systems that
                                        continuously blur the lines between
At the same time, Bromium, another what is real and what is virtual. The
security software start-up, is applying driver behind MTD is that static          be redirected in many different          IT stack. JumpSoft uses MTD at the
what it calls “micro-virtualization”    environments enable adversaries           misleading directions. MTD is still      application layer in order to disguise
to secure desktops, allowing            to plan and execute attacks over          in its earliest stages, but we predict   and deflect threats to the OS and
untrustworthy desktop tasks to          time. Essentially, MTD is a nonstop       that it will gather momentum rapidly,    network layer as well as at the
safely coexist with trusted enterprise version of musical chairs; as soon as      especially as it converges with new      hardware and system layer.
applications and data. The technology your systems are truly virtualized,         developments in SDN.
uses hardware-level isolation to stop they can be set to change all the
even “undetectable” attacks without time. It is not simply a question of          There’s at least one example of          Don’t wait for the
disrupting the user. It automatically,
instantly, and invisibly hardware-
                                        randomizing passwords; it’s about
                                        randomizing all the connections. That
                                                                                  MTD in action, although it’s early
                                                                                  days yet. The technology provided
                                                                                                                           silver bullet
isolates each vulnerable Windows        way, hackers can no longer simply         by JumpSoft, an MTD specialist, is       There is no “silver bullet” technology
task so that Windows cannot be          hack in and wait for vulnerabilities      designed to respond to disruptions       that IT leaders should be waiting
modified and so that unauthorized       to appear in users’ regular patterns.     to applications themselves and to        for. There never will be. No one tool,
access to enterprise data or network More interesting still: hackers can          any of the preceding layers in the       no matter how capable, can handle

Trend 6. Active Defense                                                                                                                 Accenture Technology Vision 2013

                                                                                                                           Putting a plan into
                                                                                 entirely unlikely that some of
        IT must build up a concentration of force in IT                          your organization’s business              action
        security capabilities, but the security burden                           leaders, burned by information
        has to be shared by the organization’s data                              security breaches, might make             It is also vital to have the specialty
                                                                                 rash decisions—a knee-jerk                skills to be able to mount effective
        professionals, by its traditional developers                             response, perhaps—to isolate parts        defenses. A challenge for many
        (remembering the need for user experiences                               of the organization in ways that          IT leaders is that such specialists
        that are designed for security), and by more                             could be detrimental to business          are in short supply, partly because
                                                                                 effectiveness. The IT teams must          many are being hired by the security
        and more categories of business users.
                                                                 ”               anticipate and prepare answers for
                                                                                 such a scenario.
                                                                                                                           software vendors. So it is incumbent
                                                                                                                           on every IT leader to budget for
the scope, scale, and complexity of      migrated to the CEO’s priority list;                                              finding, competing for, hiring,
the information security challenges      aside from the obvious business         At the same time, IT leaders need         and retaining the new breed of IT
of today and tomorrow. The real          risks of having substandard security    to take a lesson from the world of        security professionals.
advantage lies in successfully           systems, the fact is that many more     prudent investment by developing
integrating solutions and                business users are increasingly able    portfolio-based approaches to             Of course, the skills issue extends
approaches—calling for a holistic        to compromise security, knowingly       security—approaches that minimize         far beyond the IT security staff’s
security architecture—and ensuring       or not. Yet they are also ideally       the risks to the business by enabling     cubicles. Yes, IT must build up a
that the architecture remains flexible   placed to improve it by collaborating   responses to all kinds of attacks         concentration of force in IT security
enough to deal with the continual        with IT to protect the business.        in all sorts of circumstances. The        capabilities, but the security
flux in security requirements.                                                   fundamental emphasis must be on           burden has to be shared by the
                                         There are many reasons to expand        fully understanding their risk profiles   organization’s data professionals,
Integration must extend in another       and enrich the security dialog          and the type of integrated picture        by its traditional developers
direction too—between IT and the         between IT and the business             that can help them better manage          (remembering the need for user
business. Information security has       side. Just one aspect: it’s not         those risks.                              experiences that are designed for

Trend 6. Active Defense                 Accenture Technology Vision 2013

security), and by more and more
categories of business users.

There should be no doubt about
what actions need to be taken to
bring data security up to par. Many
organizations are already pushing
hard in many appropriate ways; they
are working overtime to catch up
with best practices while proactively
exploring the newest information
security techniques. Indeed, it’s
not unrealistic to expect that some
IT groups will deploy honey pots
or sandboxing or other emerging
methods sooner rather than later,
especially to protect their most
valuable data or services.

The bigger question is whether
current efforts are enough. That
is the core question that CEOs
and their top teams should not be
leaving to their IT leaders alone.

Trend 6. Active Defense                                                                                                 Accenture Technology Vision 2013

Your 100-day plan                                                                    This time next year
In 100 days, solidify security on the C-level agenda and define the plan to          In 365 days, start addressing the weakest security links.
close the gaps in your security strategy.

•	 Work with heads of business to align security strategy with business strategy     •	 People continue to be the softest target. Update your
   and update your enterprise threat assessment.                                        strategy for how malicious or unintentional misuse can
                                                                                        be compartmentalized and contained.
•	 Reassess the organization’s reliability needs for critical business IT systems,
                                                                                     •	 Test and confirm responses to security breaches including
   processes, and assets.
                                                                                        the effectiveness of community involvement.

•	 Determine how security can support them.                                          •	 Implement your second line of defense—begin
                                                                                        experimenting and prototyping platforms and
•	 Develop or revise your security architecture roadmap—include ideas regarding         technologies for security analytics.
   your second line of defense.
                                                                                     •	 Identify where techniques such as sandboxing,
                                                                                        misinformation, and MTD could better address your first
•	 Evaluate your threat scenarios to identify missing perspectives that would           line of defense.
   improve your security effectiveness.
                                                                                     •	 Identify the skills necessary to stay abreast of emerging
•	 Identify the industry sharing communities where you want to participate and          security processes and technologies.
   generate and share valuable insights.
                                                                                     •	 Engage with your chief counsel and chief risk officer on
                                                                                        risk tolerances and the evolving threat landscape.
•	 Evaluate your ability to respond to new insights or security events.

•	 Determine whether, with perfect information, you could act on these insights.

Trend 1. Relationships at scale                                          Accenture Technology Vision 2013

                           Beyond The Cloud
                           The value lies in putting the cloud to work

Trend 7. Beyond the Cloud                                                                                 Accenture Technology Vision 2013

Beyond the Cloud
No vision would be complete without commenting on the cloud. However, cloud computing is no longer
an emerging trend. The on-demand, elastic technology needs to be considered in all decisions made today;
the key question is not “should we use cloud?” but “how can we use cloud?” More than that: cloud isn’t a
single concept. Its individual elements—from IaaS to SaaS to PaaS, from public to private—are as distinct
and different from one another as the opportunities for enterprises to use them. So the real “trend” is a
shift in focus to the next phase: putting cloud to work and crafting an overarching approach that weaves
cloud capabilities into the fabric of the enterprise—with business value uppermost in mind.

                                                     There are far more followers than       of private cloud versus public cloud
                                                     pioneers when it comes to adoption      without delving into who manages
                                                     of emerging technologies. That’s one    what data where, who’s responsible
                                                     of the findings in Accenture’s latest   for security, how cloud deployments
                                                     High Performance IT study, and it’s     affect network infrastructure, and
                                                     a truth that is borne out in what we    more. Cloud computing doesn’t get
                                                     see in many enterprises’ hesitant       its name just because it’s something
                                                     approaches to cloud computing.          with wispy edges that you can’t
                                                                                             touch. It’s called cloud because it’s
                                                     It’s easy to see why so many IT         big, and no matter what progress
                                                     leaders hold back. It’s daunting        you’ve made with it so far, there’s so
                                                     enough to determine the vagaries        much more cloudscape to traverse.

Trend 7. Beyond the Cloud                                                                                                                Accenture Technology Vision 2013

Leading organizations already sense        thinking about the cloud as a single
that they’re still only at the beginning   concept. It’s time to start realizing
of what they can do with cloud—and         cloud’s transformational impact
what it can do for them.                   across the business.

Lest there be any doubt that the           Enterprises must view cloud as
cloud has arrived, it has been 14          an overarching approach that
years since was             considers the value of PaaS, IaaS,
founded, and 5 years since it topped       SaaS, and several other as-a-service
1 million subscribers. Likewise,           technologies, and helps determine
finance and HR cloud-services              how they can best become a part of
company Workday was founded in             IT’s current toolbox. The technology
2005. In 2006, Amazon Web Services         is here, so the conversations should
began offering IT IaaS; it has since       now turn to how these tools can be        Let’s be clear: the opportunity is to   The cloud
begun offering PaaS. Software giants       used to differentiate a company’s        use cloud technologies to enable
such as Microsoft, Oracle, and SAP         business, helping it get to market       your business. As an integral part
have made significant progress in          faster and respond more flexibly         of your IT strategy, cloud can make      Accenture estimates that by 2016,
cloud-enabling their applications.         to opportunities and obstacles. By       your business more responsive,           enterprises will devote 14 percent of
Cloud has been so successful, in fact,     harnessing cloud skillfully, companies   more flexible, more scalable—more        their overall IT product and services
that while many everything-as-a-           can enter whole new businesses or        competitive. But the point should not    spending to cloud, up from 5 percent
service (XaaS) start-ups are already       launch new products in short order.      be cloud itself—instead, it is how you   in 2011. More importantly, by that
old enough to shave (metaphorically        VELUX Group, for instance, was able      embed cloud in your business that        same time, 46 percent of their new
speaking), even newer ones regularly       to launch a new product campaign         will differentiate you.                  spending will be on cloud-enabled
present enterprises with innovative        in just three weeks—from start to                                                 technologies.iii The implementation
opportunities. It’s time to stop           finish—using Microsoft Azure.                                                     stories support the data: leading

Trend 7. Beyond the Cloud                                                                                                               Accenture Technology Vision 2013

enterprises are approaching new       Despite all the attention to cloud,       cloud adoption in the enterprise. Of       consumers with partners, social
system architectures with a “cloud-   the expanse of cloud opportunities        large enterprises, 43 percent are at       recommendations, and other high-
first” mentality—that is, looking     remains largely underdeveloped.           least piloting public SaaS with nearly     quality content. Just 18 weeks after
at what can be achieved with the      Accenture’s latest research shows         half of those (19 percent of total)        the Tripdiscover project began,
different flavors of cloud rather     where the biggest gaps lie: more          having committed a large percentage        Deutsche Telekom had in place a fully
than reflexively considering in-      than one-third of large enterprises       of their business to it.                   deployed, flexible, real-time scalable
house development or off-the-shelf    have yet to implement any cloud                                                      system intended to inspire and excite
solutions. The implicit message for   technology, public or private, in their   Accenture expects areas that have          its users with a new type of online
companies that have focused on one    infrastructure. For platform cloud        lagged, such as IaaS and PaaS,             travel-booking experience.v
area of the cloud to date: consider   technologies, that percentage jumps       to accelerate in the next three to
the potential payoffs from other      to one-half. The encouraging part:        five years. Continuing innovation          But among the growing ranks of
cloud technologies.                   applications. SaaS continues to lead      and investment will drive further          companies investigating a wider
                                                                                improvements in areas important            array of cloud technologies, a
                                                                                to the enterprise, such as cost and        farsighted subset is looking for more
                                                                                security. As a result, IaaS growth will    sizable benefits from their efforts.
                                                                                pick up and PaaS is likely to become       They understand that every time

       “ Despite all the attention to cloud,                                    the primary application development
                                                                                and replatforming approach for the
                                                                                                                           they master one element of cloud
                                                                                                                           computing, it’s easier to see the
              the expanse of cloud opportunities                                enterprise. It’s hard to ignore the cost   potential of another one. Despite

                                                                                savings, flexibility, and faster time to   inconsistent rates of adoption across
              remains largely underdeveloped.                                   market that PaaS offers. Deutsche          layers of the stack and in some
                                                                                Telekom opted for Google’s PaaS            verticals, cloud services have become
                                                                                offering, Google App Engine, as            drivers for many other technology
                                                                                the basis for—a new        changes—for social media, for instance,
                                                                                type of travel portal that connects        and for at least part of the rising

Trend 7. Beyond the Cloud                                                                                                                Accenture Technology Vision 2013

popularity of today’s data analytics    of all of cloud’s elements? Imagine,        cloud deployments, supported by          or legacy mainframe applications.
activities. Case in point: BMW Latin    for instance, the viability of a retailer   maturing technology, have increased      When EMC turned to Salesforce.
America used Microsoft Azure to drive   that can successfully use the cloud         enterprises’ confidence that cloud, in   com for an update to its CRM
a social-marketing campaign for         to hire extra e-commerce capacity           many shapes and forms, can create        systems, it was far from a standalone
the launch of two new model    for the five weeks at year-end, and         value. Today’s cloud projects, even in   deployment. The company integrated
Another snapshot: Shell is relying on   then bring all the customer and             a private cloud environment, now are     the SaaS solution with Oracle
Amazon’s cloud to pilot its use of      transaction data back to its internal       less about simple SaaS configuration     E-Business Suite, its own custom
Hadoop for new analytics work.          system in January. The ability to           and more about the complex               campaign-management tool, and
                                        rapidly build capabilities to capture       integration required to weave new        its e-mail infrastructure in order to
                                        more of the available demand gives          SaaS systems into the existing IT        handle financial, operational, and
Getting a handle on                     the retailer potent advantages.             fabric—into and around ERP systems       communication information.viii
the hybrid cloud
                                        The hybrid cloud means different
Given the growing number of             things to different people. Whether
mature cloud-computing options,         it means mixing forms of clouds or
enterprises have tough decisions        integrating cloud with existing IT, the
to make about cloud in the real         real challenge is a new flavor of the
world. Can they deploy different        perennial one: how will you handle
forms of cloud at the same time,        the complexities of service and data
and, if so, how? What’s the potential   integration across systems?
for mixing on-premise and off-
premise IT, or for integrating cloud    When enterprises first began to
with legacy systems and traditional     rely on the cloud, many cloud
software, in order to create hybrid     systems were siloed applications.
capabilities that combine the best      Since then, the surging numbers of

Trend 7. Beyond the Cloud                                                                                                               Accenture Technology Vision 2013

For the foreseeable future, traditional   valuable talent will be the architect   opportunities. When an enterprise        relegated to a limited role as a
software systems will continue to         who understands the functions and       has one or two cloud-dependent           management function that keeps
play a crucial role in the overall IT     roles of all the pieces and who knows   applications integrated with the         technology in check, meaning that
landscape. Recognition that the           how they all work together.             legacy systems in its portfolio, an      those organizations have missed
hybrid world of cloud and traditional                                             ad hoc approach can still work.          valuable opportunities to use cloud
IT must coexist has important             Just as important, the governance       However, even if the number of           to substantially transform
implications for how an enterprise        of the solutions becomes key. The       those applications simply doubles,       their processes.
prepares for the future. In many          technology organization now needs       it suddenly becomes crucial to
enterprises today, skills are separate    to design and operate a mosaic of       properly broker those connections         Whenever the business undertakes
and isolated—a Microsoft Azure team       best-in-class capabilities so that      and relationships. An architect needs    a new project—a business process
here and a SAP team there. A hybrid       the business can take advantage         not only the ability to patch together   change or an investment to enter
world demands hybrid skills; the most     of the capabilities to create new       the mosaic of services but also an       a new business, for instance—it is
                                                                                  understanding of the changing            important to inject the art of the
                                                                                  implications of the cloud on supplier    possible into those early decisions
                                                                                  and vendor management.                   and discussions. “Cloud thinking”

  “ A hybrid worldtalent willhybrid skills; the
    most valuable
                             be the architect
                                                                                  The enterprise architecture of
                                                                                  tomorrow—e.g., data, integration,
                                                                                                                           can help bring out the project’s true
                                                                                                                           potential by asking new questions:
                                                                                                                           Can we consume this as a service?
        who understands the functions and roles of                                monitoring, security—will look very      Can we sell this as a service? How
                                                                                  different from its forebear of just      would we monetize it? If we can
        all the pieces and who knows how they all
                                                                                  a few years ago. To be successful,       scale on a moment’s notice, what
        work together.
                             ”                                                    enterprises need to fundamentally
                                                                                  revise their notions of enterprise
                                                                                                                           possibilities does that bring? The goal
                                                                                                                           of using cloud has to be business
                                                                                  architecture; for many, enterprise       value; cost reduction is a byproduct,
                                                                                  architecture has already been            not the answer.

Trend 7. Beyond the Cloud                                                                                                                Accenture Technology Vision 2013

Choosing the right                     However, this is not to say that public     never move their ERP/finance system       internal processes. The new cloud-
cloud                                  cloud is now universally applicable.        (64 percent) or any core industry-        based solution, completed in just
                                       IT leaders continue to wonder what          specific application (59 percent) to      nine months, simplified operations,
The last question, then, is this:      systems will work best in the cloud.        the public cloud—and that may be          accelerated applications, and reduced
public or private cloud? What’s most   What’s clear is that there is no            prudent of them.ix In the near term,      risk—allowing the copper company to
important to note—and what keeps       tipping point beyond which public           the vast majority of Fortune 500          focus on its overarching
cloud deployment rates on the timid    cloud technologies become the               companies will host “in the cloud,”       objective: growth.x
side—is that there’s no one right      default for all IT systems. In fact, it’s   but they’ll also maintain tight control
answer. Many IT leaders shy away       unlikely that companies will move           of their mission-critical systems       As cloud technologies have matured,
from public cloud SaaS options,        their core systems to a public cloud        through private cloud solutions.        the decisions about when to use
even those that are financially and    service anytime soon. For instance,                                                 public cloud services have become
logistically viable.                   the majority of respondents to              Here’s one example of where the         more nuanced—and more important.
                                       Accenture’s research felt they would        leading implementers are going.         Although today’s public cloud
                                                                                   Following a major acquisition,          decisions may be all-or-nothing
                                                                                   Freeport-McMoRan, the world’s           propositions, over time, applications
                                                                                   largest publicly traded copper          will be partitioned differently, and

          “ As cloud technologies have when
            matured, the decisions about
                                                                                   company, launched an extensive
                                                                                   ERP transformation initiative using
                                                                                   a private cloud architecture. The
                                                                                                                           IT groups will adopt more granular
                                                                                                                           ways to split applications (even
                                                                                                                           inside tiers). For instance, it won’t be
               to use public cloud services have                                   company’s existing infrastructure       a question of where the complete
                                                                                   and ERP environment were inhibiting customer database resides; it will
               become more nuanced.
                                              ”                                    its ability to grow at a critical time,
                                                                                   when Freeport was revising its
                                                                                                                           be a matter of deciding what data
                                                                                                                           belongs where (based on source,
                                                                                   operating model to harness emerging scale, cost, and accessibility) and how
                                                                                   technologies and streamline its         the services that operate on it can

Trend 7. Beyond the Cloud                                                                                                            Accenture Technology Vision 2013

and should be integrated. In short,    Enterprises are just starting their
it’s about the emergence of a          cloud journey. Although the “safe”
highly flexible, services-based
data layer.
                                       option may appear to be private
                                       cloud, we expect more and more
                                                                                      “  The proof that an organization is
                                                                                         headed in the right direction is that the
                                       organizations to start relying on
Eventually, business leaders will      more public options for some
                                                                                         term ‘cloud’ will start to fade out of the
stop asking questions like, “is the
cloud secure enough for storing my
customers’ personally identifiable
                                       business units or geographies.
                                       Wireless semiconductor maker
                                       Qualcomm took this approach
information?” Their actual behaviors   in rolling out a public cloud ERP
hint at the ambivalence behind such    (NetSuite) to certain subsidiaries
questions: 77 percent of enterprises   while maintaining its traditional ERP why enterprises must prepare for a maturity of the tools available and
say they will never place sensitive                                           xii
                                       system (Oracle) at the corporate level. hybrid world.                    the value they can generate today.
customer information in the public
cloud, yet CRM is one of the hottest   Over time, then, enterprises will have                                            The proof that an organization is
SaaS areas.xi The question will give   built up enough success stories about     Moving beyond the                       headed in the right direction is that
way to compromise: businesses will     public cloud deployments, and will
                                                                                 cloud                                   the term “cloud” will start to fade
                                                                                                                         out of the conversation. Instead, its
figure out how to take customer        have captured enough value from
data—without identification—and        them, that they will be confident         IT leaders, and to an increasing extent use will be described in ways that
partition, protect, and integrate      enough for public cloud to become         their business colleagues, now need relate to its business value. Perhaps
it as appropriate, on the basis of     their “go-to” option whenever public      to move “beyond the cloud.” The         the CIO will touch on her reliance
technology capability, security        cloud alternatives exist. Few CIOs will   discussions that continue to make       on on-demand services to socially
standards, and their users’ own        be able to match the economies of         headlines are already obsolete topics enable the enterprise, but there
comfort levels.                        scale that public cloud providers can     when reviewed in the context of the won’t be explicit discussion about
                                       deliver—which is one more reason                                                  those services—much less any special

Trend 7. Beyond the Cloud                                                  Accenture Technology Vision 2013

mention of “cloud”—unless the CIO’s     Your 100-day plan
audience requests it.
                                        In 100 days, agree on a cloud strategy that emphasizes
Put simply, every organization can      cloud as an enabler of business growth.
use cloud now to support its other
technologies and to bolster its
business processes. Cloud is entirely   •	 Inventory current cloud deployments across the
good enough to help organizations          enterprise—public and private, IaaS and PaaS and SaaS,
achieve much of what they need to          diversity of cloud vendors, and so on—in order to build
achieve—and it has the potential to        awareness among leadership.
deliver much more in the years
to come.                                •	 Look at the external marketplace for representative/peer
                                           cloud success stories to broaden understanding of the art
                                           of the possible.

                                        •	 Identify and prioritize opportunities to implement
                                           services in the cloud within your existing IT road map,
                                           particularly in near-term application modernization—
                                           challenge yourself to think “cloud first.”

                                        •	 Evaluate the cloud knowledge/skills of your enterprise
                                           architects and develop updated training plans as
                                           necessary to prepare them to lead the rest of the IT
                                           organization forward.

Trend 7. Beyond the Cloud                                       Accenture Technology Vision 2013

                            This time next year
                            In 365 days, execute your cloud strategy; implement
                            it piece by piece as your company buys, builds, and
                            connects to its next generation of IT services.

                            •	 Create decision criteria for cloud selection and readiness

                            •	 Update your cloud strategy to create company standards
                               for procuring and managing cloud services. Extend your
                               operations architecture and services catalog to include
                               private and public cloud services.

                            •	 Integrate cloud into your other technology road maps—
                               use cloud to enable social, mobile, or analytics. All your
                               approaches need to be cloud-ready.

                            •	 Update your enterprise architecture in preparation
                               for partitioning of data and services across hybrid cloud
                               deployments. Create an architectural review process to
                               evaluate new IT projects for cloud usage.

                            •	 Develop cloud skills aligned to your chosen platforms
                               through recruiting or training and embed these skills in
                               your project teams.

                            •	 Actively govern your use of cloud—continuously evaluate
                               cloud usage and providers against your plan and
Conclusion                                                                                                                       Accenture Technology Vision 2013

How will your digital business take shape?

When U.S. president John F. Kennedy    a grand challenge of their own:        increasingly software-driven world.   their grand challenges if they expect
gave his famous “man on the moon”      relentless and rapid changes           In every company, IT will have to     their organizations to outcompete
speech to the U.S. Congress in         in the digital landscape that          become a strategic competency         throughout the decade to come.
1961, he did not try to disguise the   continue to reshape the business       woven through the enterprise—in
scale of the challenge. “No single     environment around them. The fact      particular, the ability to derive     Hark back to when Kennedy pointed
space project in this period will be   that companies need to quickly         insights from an increasingly         to the specter of the Soviets’ Sputnik
more impressive to mankind, or         adapt is well known, but often the     quantified world and leverage the     satellite to show that the United
more important for the long-range      direct and obvious impetus to change   arsenal of constantly emerging        States did not have the luxury of
exploration of space,” he declared.    is absent.                             software advancements will power      time in the space race. With as
Kennedy’s grand challenge set an                                              efforts to optimize, grow,            much conviction and vigor, business
objective that invoked competition     Accenture believes that business       and innovate.                         leaders must cite the volatility and
and fired imaginations, even though    leaders must now set out                                                     uncertainty of global business to
the goal seemed so far out of          strategic challenges that become       To be effective, the challenge has    frame their own grand challenges.
reach. More importantly, though, it    the drivers for change for their       to have an imperative. Kennedy        The technology trends described
also served as the catalyst to drive   organizations. The ways in which       called for setting a man on the       in this report will become the
innovation to keep the United States   those organizations recognize          surface of the moon and returning     approaches that help transform
from being left behind.                and realize their challenges will be   him safely before the end of that     those challenges into reality.
                                       unique, but the digital challenge      decade. We propose that by the
While the scale may be different,      they all share will be to reimagine    end of your next planning cycle,      The groundwork for such
enterprises find themselves facing     themselves in the context of an        business chiefs should have issued    declarations lies in recognizing

Conclusion                                                                                                                                Accenture Technology Vision 2013

the reach of technology in each           address business’s challenges and        top executive team as its members         so they grasp the implications and
organization today. Every company         opportunities and the capabilities       consider what it means to have            possibilities of technology—from
is, to some extent, becoming              of many organizations to utilize         technology become an essential part       designing for analytics and digitally
“software-centric”—not in terms of        those technologies. The faster that      of how they grow their business.          managing customer relationships
the product or service it sells or the    technology develops, the more that       They will need to be role models          to shifting to active defense models
industry it belongs to, but in terms      gulf widens. The gulf has to start       themselves for the changes required       of Internet security. The necessary
of the impact that software, in all its   closing. The technologies that until     before they can expect their business     follow-on will be to design and
manifestations, has on the company’s      recently were considered cutting         managers and IT managers to begin         implement cross-functional ways of
fortunes. Yet there is a widening gap     edge—from mobile to social, from         working in tandem.                        working so that the retooling efforts
between the companies that embrace        analytics to virtualization—are                                                    stick and the silos don’t reappear.
that reality and seek ways to benefit     accessible and realizable today. The     Assuming that the company’s
from it and those that continue to        appropriate response now is to           leaders can and will embrace the          Another key action will be to infuse
see IT as nothing but support for the     acknowledge that the technologies        new mindset and demonstrate it in         the whole organization with a
business. Software is an essential part   are “good enough” and that the           their actions as well as their words,     culture that is driven by insight.
of every company and a potential          immediate issue is to look inward        one of the first actions toward           This will call for new ways to think
disruptor in every business.              to prepare the organization to work      becoming a digital business will be       about and act on data. For instance,
                                          with them.                               to retool IT to equip its professionals   both business and IT professionals
Furthermore, there is a growing                                                    to understand the business hurdles        will need to develop a sixth sense
gulf between the technologies             To start with, the challenge will call   and opportunities and to do the           for value in sources of information
that are increasingly available to        for some soul searching within the       same with business professionals          previously out of reach or viewed as

Conclusion                                                                                                                                  Accenture Technology Vision 2013

irrelevant—social media and e-mails,       Organizations must then prepare for      That means rewarding for                   Of course it is. We all know the
for instance. And as we mention in         a state of constant evolution. This      collaboration, for innovation and          results of Kennedy’s grand challenge:
this report, they will have to learn       is where IT can step up to make the      change, and for experimentation and        Neil Armstrong became a household
to look for insights from data in all      whole enterprise as agile as it can be,  tolerance of failure. These measures       name worldwide. And compelling
three of its dimensions: velocity as       leveraging on-demand services (a.k.a.    will involve a wholesale reframing         examples can be found in the
well as variety and volume. The next       “the cloud”), agile user-experience      of IT’s purpose, from cost center to       business world. General Motors has
part of the digital challenge will be to   models, and data platforms and           business driver. And they will extend      reaffirmed its position as one of
quantify everything that moves, and        taking a portfolio approach to           deep into the development of human         the top-selling auto manufacturers
plenty that doesn’t, cataloging what       technology so that many small            capital, identifying and helping to        in the world, owing, in no small
is known and what the organization         experiments are constantly in play       implement new criteria for hiring,         part, to its reinvention of itself as a
needs to know. That last part is really    and those that prove to be winners       retaining, and developing data-savvy       leaner, greener, and more innovative
important: increasingly, organizations     can scale up fast.                       business professionals as well as IT       company. Big change is
will have to design their applications                                              staff with very different skill sets and   entirely possible.
to collect and report transactions,        And then there are the issues of skills, aptitudes from their forebears.
activities, and logs. In short,            capabilities, and incentives—no small                                               Right now, it’s 1961 in the corporate
organizations need to have the right       matters. The challenge has to include Such a grand challenge is no mean             world—at least as far as technology’s
data, not just more data, if they          specific measures to enable and          feat. It represents a massive change       proper role is concerned. That’s the
are to extract the insights that can       motivate according to the behavior       effort in its own right. So is it          moon up there. Go for it.
accelerate their performance.              and culture required.                    even feasible?

Research Methodology                                                                                                              Accenture Technology Vision 2013

Research Methodology

Every year, the Technology Vision      to read, converse, and help improve    the technologies that already drive     •	 Impact beyond any one industry
team at Accenture Technology           the ideas as a whole.                  change—discrete categories such             “silo”
Labs, with contributions from the                                             as social networking, mobility, and
Accenture Research organization,       These crowd-sourced ideas were         “big data”—and concentrated on the •	 Ability to be more than a “one
pinpoints the emerging IT              then screened against inputs from      themes that will soon start to appear       for one” replacement for an
developments that will have the        several other sources, including       on the C-level agendas of                   existing solution
greatest impact on companies,          the recent activities of commercial    most enterprises.
government agencies, and other         R&D labs, the academic literature,                                             •	 Practical actionability within the
organizations in the years ahead.      the flow of venture capital funding, The Technology Vision team                    next 12 months
                                       trends highlighted by IT analysts, and then worked with experts from
This year’s research effort began with key themes at industry conferences. throughout the company to                  •	 Transcendence of any one vendor
the collection of nearly 2,000 ideas,  For perspective, we tapped             consolidate, filter, and prioritize the     or discrete “product” technology
trends, and technology hypotheses      Accenture’s High Performance IT        accumulated ideas and to test each
from the architects, engineers, and    research and the findings from our     idea against the following criteria:    These tests produced a handful
scientists across Accenture who see    annual CIO Forum.                                                              of robust hypotheses that were
the impact of technology changes                                              •	 Certainty of transformational        synthesized into the seven
every day in their work with clients.  The ideas that bubbled to the top          impact on enterprises               overarching themes presented in this
Using a social platform to gather      stood out for their relevance to                                               year’s report.
the ideas and host the discussions,    “real world” business challenges.      •	 Velocity and scale of technology
participants went far beyond simply Specifically, the Technology Vision           change
posting an idea; they took the time    team sought ideas that transcend

End Notes                                                                                                                                                               Accenture Technology Vision 2013

End Notes
                                                                                                    v     “Burberry: Entrenched in the Digisphere,” Telegraph, November 24, 2012.
i     “Ford Looks to Hadoop, Innovative Analytics,” Datanami, July 6, 2012.
                                                                                                    vi    “The Navigator: With Social Media, Airlines Have a New Kind of VIP,” Washington Post,
                                                                                                          December 13, 2012.
Relationships at Scale                                                                                    america-customer-service

i     “Shopper Alert: Price May Drop for You Alone,” New York Times, August 9, 2012.                vii
                                                                                                          “Case Study: Hijack by Meat Pack,” Creative Sandbox, December 11, 2011.       

                                                                                                    Sidebar: Gauging the Value of Trust
      “Sports Fans Online: Examining the Digital Element of the Total Fan Experience,” eMarketer,
      July 2, 2012.
                                                                                                    i     “Borders to Sell Customer Data to Barnes & Noble Under Privacy Opt-Out Deal,” Bloomberg,
                                                                                                          September 26, 2011.
      “Global Trust in Advertising and Brand Messages,” Nielsen, April 10, 2012.

                                                                                                          “Privacy Policy May Sink B&N’s Purchase of Borders Name,” PaidContent, September 22, 2011.
      “Accenture Video-Over-Internet Consumer Survey 2012: Winning the Battle for Consumer      
      Trust,” Accenture, April 12, 2012.                                                                  name

End Notes                                                                                                                                                              Accenture Technology Vision 2013

      “Borders’s Sale of Personal Information Approved by Bankruptcy Court,” The Secure Times,   iv
                                                                                                        “M2M Cellular Connections to Hit 2.5 Billion by 2020,” Strategy Analytics, August 3, 2012.
      September 29, 2011.                                                                     
                                                                                                        “UPS Makes No Left Turns in Quest to Deliver Sustainability,” Bloomberg, September 20, 2012.
      “The Economic Value of Trust,” Outlook, Accenture, October 2003.                                                       sustainability-q-a.html

      “Facebook Director of Product Design Margaret Stewart on Users Deserving an ROI,” Fast     vi
                                                                                                        “Redline Communications Announces the Major Expansion of Its Network at a Shell Oil Joint
      Company, November 26, 2012.                                                                       Venture Oil Field,” Redline Communications, April 9, 2012.   
      users-deserving-roi                                                                               venture

                                                                                                        “Digital Oilfields Special: Got Oman Covered,” Arabian Oil and Gas, September 12, 2012.
Design for Analytics                                                                          

                                                                                                 vii    “Ford Hybrid’s EV+ Feature Learns and Automatically Adjusts Powertrain to Deliver More
 i    Erik Brynjolfsson, Lorin M. Hitt, and Heekyung Helen Kim, “Strength in Numbers: How Does
                                                                                                        Electric-Only Driving,” Ford, November 8, 2012.
      Data-Driven Decisionmaking Affect Firm Performance?” April 22, 2011.
                                                                                                 viii   “eBay Pushes More Personalized Shopping,” PC Magazine, October 10, 2012.
      “Netflix Analyzes A Lot of Data About Your Viewing Habits,” GigaOM, June 14, 2012.

                                                                                                 ix     Rethinking Analytics for the Social Enterprise,” Tapscott Group, September 2012.
      “Knewton Is Building the World's Smartest Tutor,” Forbes, February 22, 2012.

End Notes                                                                                                                                                                     Accenture Technology Vision 2013

Sidebar: Why the Business Now Needs to Care About APIs                                                  iv     Ibid.

i         “OnStar Gives Volt Owners What They Want: Their Data, in the Cloud,” Ars Technica, November          “Time—The Next Source of Competitive Advantage,” Harvard Business Review, July-August

          25, 2012.                                                                                            1988.

                                                                                                               “Predicts 2013: In-Memory Computing: Growing Gains, but Also Growing Pains,” Gartner,
                                                                                                               November 30, 2012.
ii        “Bechtel: Improving Workforce Efficiency and Productivity through APIs,” Apigee, 2012.        vii
                                                                                                               “SAP Exec: HANA Customer Count Nears 600, Pricing Tweaks Coming,” Computerworld,

                                                                                                               September 5, 2012.

Data Velocity                                                                                           viii
                                                                                                               “Early SAP HANA Adopters Describe Analytics Possibilities and Performance,” Data Informed,
                                                                                                               May 15, 2012.
    i     “Walmart’s New Search Engine Increased Conversion Rates Says Its Global E-Commerce CTO,”
          NextBigWhat, September 11, 2012.

                                                                                                        ix     “GE Works: 2011 Annual Report,” General Electric, February 24, 2012.
ii        “3D Data Management: Controlling Data Volume, Velocity, and Variety,” Meta Group (Gartner),
          February 6, 2001.

                                                                                                        Seamless Collaboration
    iii   “Why P&G CIO Is Quadrupling Analytics Expertise,” InformationWeek, February 16, 2012.
                                                                                                               “Mobile and Social CRM,” Nucleus Research, March 2012.


End Notes                                                                                                                                                               Accenture Technology Vision 2013

ii    “Finding Value in the Information Explosion,” MIT Sloan Management Review, June 19, 2012.    iv    “eBay Fires Up OpenStack Cloud with Nicira Network Virt,” The Register, August 8, 2012.          
                                                                                                         "See the Future of Cloud Networking at Interop," Rackspace, October 3, 2012.
      “How Clearspire Used IT to Reinvent the Law Firm,” WSJ Blog – CIO Journal, April 9, 2012.
                                                                                                         “Software-Defined Networking: Loads of Potential, but It Will Not Cause Cisco’s Demise,”
iv    “The Social Sales Revolution,”, August 16, 2011.                                    Technology Business Research, Inc., November 26, 2012.

      “Collaboration Helps GE Aviation Bring Its Best Inventions to Life,”, 2012.
                                                                                                   Sidebar: Network Optimization
                                                                                                         “IP Infusion to Showcase OpenFlow/SDN for Mobile Video Applications on Broadcom
                                                                                                         StrataXGS Switch Solution at Open Networking Summit 2012,” IP Infusion April 11, 2012.
Software-Defined Networking                                                                    
i     “Government Virtualization Could Save More Than $30 Billion by 2015,”                              applications-broadcom-strataxgs-switch-sol

      MeriTalk, January 30, 2012.
                                                                                                    ii   “Going With the Flow: Google’s Secret Switch to the Next Wave of Networking,”
                                                                                                         Wired, April 17, 2012.
ii    “eBay Goes Live with Virtual-Networking Maverick Nicira,” Wired, August 7, 2012.             iii   “Verizon’s Elby Outlines Software Defined Networking Plans,” TMCnet, May 18, 2012.
iii   “SDN Shakes Up the Status Quo in Datacenter Networking, IDC Says,” IDC, December 19, 2012.         defined-networking-plans.htm

End Notes                                                                                                                                                                 Accenture Technology Vision 2013

Active Defense                                                                                  
      “Traditional Approaches to Information Security Are No Longer Sufficient,” Accenture,
      November 23, 2011.
                                                                                                   vi     Bryan D. Payne, W. Keith Edwards, “A Brief Introduction to Usable Security,” IEEE Internet           Computing, May/June 2008.


                                                                                                          “Decoy Documents May Soon Defend Against Data Loss,” eSecurity Planet, April 23, 2012.
      “Critical Control System Vulnerabilities Demonstrated - And What to Do About Them,” SANS
      Analyst Program, November 2011.
                                                                                                   viii   DataSoft website.
      DARPA Active Authentication Program.
                                                                                                   ix     Lance Spitzner, “The Honeynet Project: Trapping the Hackers,” IEEE Security and Privacy, March
      “PGP Corp. Co-founder’s Startup Targets Cloud Authentication,” Network World, November 26,
                                                                                                          Invincea website.
iv    CrowdStrike website.
                                                                                                   xi     “Size Matters: Bromium 'Microvisor’ to Guard PCs for Big Biz,” The Register, September 19,
      “Schiphol Airport Security—New Screening Technologies Designed to Improve Passenger and
      Luggage Screening,” Homeland Security Research, April 2009.

End Notes                                                                                                                                                                 Accenture Technology Vision 2013

xii   “Next Gen Cyber Defense,” JumpSoft, February 11, 2012.                                      vii    “Shell Oil Targets Hybrid Cloud as Fix for Energy-Saving, Agile IT,” Computerworld, April 4,                                         2012.
Beyond the Cloud
                                                                                                  viii   “EMC Improves Customer Visibility with the Sales Cloud,”
      Accenture High Performance IT Survey Round 4, Preliminary Findings (N=187), 2013. (Survey
      demographics: 187 CIOs at global large enterprises.)
                                                                                                         Accenture High Performance IT Survey Round 4, Preliminary Findings (N=187), 2013. (Survey
      “VELUX: Cloud Microsite Delivered in Three Weeks Supports Product Campaign,” Accenture,            demographics: 187 CIOs at global large enterprises.)
                                                                                                         “Freeport-McMoRan Copper & Gold: Global ERP Implementation,” Accenture, 2011.
iii   Accenture analysis; IDC base IT spending data from “IDC Worldwide Black Book Query Tool,
                                                                                                  xi     Accenture High Performance IT Survey Round 4, Preliminary Findings (N=187), 2013. (Survey
      Version 1, 2012,” May 2012.
                                                                                                         demographics: 187 CIOs at global large enterprises.)
iv    Accenture High Performance IT Survey Round 4, Preliminary Findings (N=187), 2013. (Survey
                                                                                                  xii    “NetSuite Steps Up Large Enterprise Push: Lands Qualcomm, Groupon, Partners with
      demographics: 187 CIOs at global large enterprises.)
                                                                                                         Accenture,” ZDNet, May 9, 2011.
v     “Deutsche Telekom: Creating a Customer Portal Using PaaS,” Accenture, 2013.                          groupon-partners-with-accenture/48496

vi    “BMW Supports Model Launch, Develops Prospects with Cloud-Based Social Marketing,”
      Microsoft, July 10, 2012.

Contacts                                Accenture Technology Vision 2013


Paul Daugherty
Chief Technology Officer

Michael J. Biltz
Director, Accenture Technology Vision

Scott W. Kurth
Director, Accenture Technology Vision

For more information

Trend 1. Relationships at scale                                                                                                     Accenture Technology Vision 2013

                            About Accenture

                            Accenture is a global management consulting, technology services and outsourcing company, with
                            approximately 259,000 people serving clients in more than 120 countries. Combining unparalleled
                            experience, comprehensive capabilities across all industries and business functions, and extensive research
                            on the world’s most successful companies, Accenture collaborates with clients to help them become high-
                            performance businesses and governments. The company generated net revenues of US$27.9 billion for the
                            fiscal year ended Aug. 31, 2012. Its home page is


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