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Monday's Musings: Inside Why The Mainframe Is Alive And Thriving rwang0 Sun, 02/28/2021 - 22:34
Mainframes Still Going Strong After 70 Years
Mainframes entered the market in the early 1950's when IBM and the seven dwarfs (Burroughs, Unisys, NCR, Control Data, Honeywell, GE, and RCA) created the computing age and competed for critical applications, sophisticated modeling, and large-scale transactions and workloads among the large organizations. Over the past seven decades, compute power, storage, and networking have seen various waves of centralization and decentralization amidst each wave of disruptive technology adoption.
Analyst Blog
Digital Transformation, Customer Empathy & CMO Leadership | DisrupTV Ep. 225
In DisrupTV Episode 225, hosts R “Ray” Wang and Vala Afshar are joined by three influential voices: Nigel Vaz, CEO of Publicis Sapient and digital transformation expert; Michelle Huff, Chief Marketing Officer at UserTesting and customer empathy evangelist; and Larry Dignan, Editor-in-Chief at ZDNet and thought leader on tech trends.
Video
ConstellationTV is here to bring you the latest in what is disruptive and reshaping business and technology. In every episode, you’ll hear from our fellow analysts, from leaders across our network of business transformation experts and influencers, as well as from cutting edge vendors.
Video
News Analysis: Big State vs Digital Giants Battle Over News Access And Compensation rwang0 Mon, 02/22/2021 - 09:16
Sharing Links Is The Foundation Of The Internet
When Tim Berners-Lee set the specifications of URLs, HTTP, and HTML protocols for the world wide web, he set off how information would be shared on the internet. In fact, the foundation and spread of the internet has come from the free sharing of internet links across a free and open internet. The sharing and compensation of these links is at the heart of the battle among governments and news publishers with the digital giants.
Over the past few weeks, the digital giants (i.e. Google and Facebook) have faced a standoff over how news organizations and their content would be compensated for access to social media networks as well as search engines. The battle came to a heated frenzy when Google agreed to compensating news organizations and Facebook decided to pull news feeds and links from their Australian users. The recent news of Canada following suit with Australia has brought this issue to the forefront.
The Business Models Of Journalism Have Not Fared Well In A Digital World
At the center of the battle is the business models and monetization models among content (i.e. news organizations), network (i.e. the reach of the internet with social networks and media), technology platforms (i.e. digital giants), and consumers. The news organizations feel their content is what draws the social networks and search giants, yet the data would show that only 2 to 4% of content used by social networks come from these content providers. Anywhere from 1 to 3% of searches are news related for the search giants. For the digital giants, they provide access to their networks and distribution platforms as a service to the publishers and news organizations and feel that they should not compensate them for this valuable access to billions of users.
In the case of Australia, over 75% of the population receive their news from social media. In fact, in most countries that number is higher. Hence the conundrum. The biggest network for journalism and news content distribution is unfortuantely through a third party that competes with news organizations for digital advertising. News organizations and digital content producers are subservient to the digital giants who have the network and the technology platform. In fact, these digital giants are crushing content publishers in the amount of digital ad revenue generated. Google generates almost $147 billion in ad revenue in 2020. Facebook almost reached $70 billion in ad revenue for 2020.
In the case of Google in Australia, the move to pay the biggest publishers has given the larger publishers an advantage over the smaller ones. While this has put Facebook on the defensive, Facebook has every legal right to not only charge for access to their network, they also have the right to determine whom they want on their network. Paying publishers for sharing their links on Facebook's own network is counterintuitive. In fact, Facebook's social network of 2.7 billion users and the 14 million users in Australia is what attracts the publishers to want to share their links and drive traffic to their own sites. To be clear, the news is not the what attracts Facebook users to the community, it's the sharing of free content among other free users, including news links.
Digital Giants Face Massive Regulation By Governments "Seeking Their Fair Share"
What we have now is a challenge to the internet and digital giants on behalf of the governments around the world who want to take on big tech AND the failure of the ad supported and subscription market for journalism. While it may be popular to hate on the digital giants for their success and governments would like to get a cut in on the action on behalf of news organizations and journalism, the challenge is finding a fair approach that will enable smaller publishers to succeed as well as the large ones while respecting the first principles of the internet, the free sharing of links.
For decades publishers failed to invest in their social networks and relied on digital giants to do the dirty work of building out their communities and membership base. In fact, many content publishers built business models on classifieds, pay to play content, and events. However, few of these models achieved success. For every New York Times and Wall Street Journal subscriber paywall, there were about 50 organizations that were merged, acquired, or gone bankrupt since 2020. In fact, sites such as Craigslist decimated local news organizations.
With Digital Giants succeeding in disrupting traditional industries such as journalism and generating massive profits, legislators around the world now seek any opportunity to insert themselves to play a populist role in "regulating" for free and fair markets while taking a cut of the profits. Taxes and regulations are one way to keep digital giants in check, but these rules should be carefully thought out to protect personal privacy, enable fair and free markets, and keep innovation alive. There is an outright danger legislators will move to far in regulation and stifle the innovations provided as a public good.
The Bottom Line: The Future of Journalism Is At Stake But Regulations For Digital Giants Must Be Smartly Crafted
Societies around the world need a strong, fair, and free press in order to build healthy communities. The digital giants have played a role. Just a decade back, social media companies provided a great distribution channel and was a "savior" to journalism. Why? In lieu of investing in one's own community, these content providers could piggy back on top of the networks and drive traffic back to their sites. Unfortunately, the business model of journalism required scale to succeed. Unless you were a funded model such as the BBC or NPR to some degree, scale was very hard to achieve. Media properties found community even harder to build and maintain.
This move to go after Digital Giants is world wide. Their success and failure of many digital giants to engender trust and convey value have placed the big tech firms squarely in the bulls eye of aspiring regulators and elected officials From China to the EU and now Australia, Canada, and the US, states want to take back the power they ceded to Digital Giants. The fight over news is just one front on that battle. Digital giants can expect more fights ahead as governments around the world fear the growing power of these digital giants and seek to add more controls in the public interest.
The policies determined around access to platforms by journalism and content providers will continue to be a battle waged by regulators. Digital giants and regulators must come to terms as the value of the network comes from a wide variety of content sources such as news, user generated data, games, media, entertainment, education, etc. Policies created for one type of source around monetization will have consequences for other sources. Smart regulation is needed amidst this popular backlash or digital giants will find themselves in unsustainable business models and monetization schemes.
For more about digital giants, get my latest book Everybody Wants To Rule The World where we go deep on the digital giants and what's needed to build, partner, or perish.
Your POV
Do you think the Digital Giants will weather the storm against governments and the populist backlash? Will news and journalism fix their broken business model? Who's approach is better Google? or Facebook?
Add your comments to the blog or reach me via email: R (at) ConstellationR (dot) com or R (at) SoftwareInsider (dot) org. Please let us know if you need help with your AI and Digital Business transformation efforts. Here’s how we can assist:
Developing your digital business strategy
Connecting with other pioneers
Sharing best practices
Vendor selection
Implementation partner selection
Providing contract negotiations and software licensing support
Demystifying software licensing
Reprints can be purchased through Constellation Research, Inc. To request official reprints in PDF format, please contact Sales.
Disclosures
Although we work closely with many mega software vendors, we want you to trust us. For the full disclosure policy,stay tuned for the full client list on the Constellation Research website. * Not responsible for any factual errors or omissions. However, happy to correct any errors upon email receipt.
Constellation Research recommends that readers consult a stock professional for their investment guidance. Investors should understand the potential conflicts of interest analysts might face. Constellation does not underwrite or own the securities of the companies the analysts cover. Analysts themselves sometimes own stocks in the companies they cover—either directly or indirectly, such as through employee stock-purchase pools in which they and their colleagues participate. As a general matter, investors should not rely solely on an analyst’s recommendation when deciding whether to buy, hold, or sell a stock. Instead, they should also do their own research—such as reading the prospectus for new companies or for public companies, the quarterly and annual reports filed with the SEC—to confirm whether a particular investment is appropriate for them in light of their individual financial circumstances.
Copyright © 2001 – 2021 R Wang and Insider Associates, LLC All rights reserved.
Contact the Sales team to purchase this report on a a la carte basis or join the Constellation Executive Network
Digital Giants
News Analysis
Analyst Blog
Premium Research
Executive Summary
AI, Annotation Ethics & Innovation Foresight: Mastering Digital Trust | DisrupTV Ep. 224
In DisrupTV Episode 224, hosts R “Ray” Wang and Vala Afshar welcome three visionaries charting the future of enterprise innovation:
Video
Today, we launched the final set of updates to our Constellation ShortList™ portfolio, including 22 new and updated lists.
Each technology vendor on this list has been chosen based on their products and services offering. Our analysts consider technology investment, use cases, strategic vision, customer value, executive leadership and price when anointing a vendor to the ShortList™.
Check out the 22 new and updated lists:
Analyst Blog
Event Report: Accenture's Technology Vision 2021 #TechVision2021 rwang0 Tue, 02/16/2021 - 23:44
Leaders Wanted For The Post Pandemic Future
On February 17th, 2021, Accenture released its 2021 Technology Vision report. Paul Daugherty, Group Chief Executive - Technology & Chief Technology Officer; Marc Carrel-Billiard, Senior Managing Director, Innovation Global Lead; and Michael Biltz, Managing Director, Technology Vision shared results from their survey of 6,241 C-level executives and directors at companies across 31 countries and 14 industries. The report revealed the dire need for technology leadership required to emerge in the post pandemic environment. As quoted in the report, "During the pandemic, it became starkly clear that there is no leadership without technology leadership". Some key findings from the annual survey include:
90% of respondents believe they needed to fast forward their digital transformation with cloud at the core
63% of executives report that the pace of digital transformation is accelerating
83% of executives agree that their organization’s business and technology strategies are becoming inseparable—even indistinguishable
2021 Technology Vision Trends Enable A Better Future
The five big trends for 2021 include (see Figure 1):
Stack strategically. The technology stack architecture emerges as a competitive advantage or liability. Organizations are elevating the need "to build and wield" the most competitive technology stack. Organizations must move from reducing technical debt to accumulating technical wealth.
Mirrored world. The digitization of the physical world ushers in a new era of digital twins. These digital twins will drive living models of factories, supply chains, buildings, and ecosystems. Trusted data practices provide the foundation for a mirrored world success.
I, technologist. Democratization of technologies through automation, low code platforms, natural language processing, and computer vision means everyone can become a technologist. How organizations enable and empower all types of workers to collaborate will determine the organization's future. Organizations must create a supportive culture to enable grass root technologists to innovate.
Anywhere, everywhere. Organizations must support the bring your own environment (BYOE). The role of human machine interaction plays a greater role in the future. Culture must match the organization's objective.
From me to we. Digital partnerships will help companies provide a path out of the chaos. Multiparty systems showcase who future networks bring win-win value propositions.
Figure 1. The 2021 Accenture Technology Vision Trends
Source: Accenture
The Bottom Line: Compressed Digital Transformation Is The Post Pandemic Reality
The post pandemic playbook will require a closer alignment of business and technology. The new business models and monetization models require that every organization build mastery on five levels:
Cloud
Process
Analytics
Automation
AI
Mastery of these five elements provide leaders the foundation for not only digital transformation, but also the ability to compete with the emerging digital giants for the monetization of networks via ads, search, products, services, memberships, and subscriptions. Successful projects in digital transformation and a post pandemic recovery will require technology leadership at the leadership level.
Your POV
How are you doing with your digital transformation efforts? Which of the five trends resonates with you the most?
Add your comments to the blog or reach me via email: R (at) ConstellationR (dot) com or R (at) SoftwareInsider (dot) org. Please let us know if you need help with your AI and Digital Business transformation efforts. Here’s how we can assist:
Developing your digital business strategy
Connecting with other pioneers
Sharing best practices
Vendor selection
Implementation partner selection
Providing contract negotiations and software licensing support
Demystifying software licensing
Reprints can be purchased through Constellation Research, Inc. To request official reprints in PDF format, please contact Sales.
Disclosures
Although we work closely with many mega software vendors, we want you to trust us. For the full disclosure policy,stay tuned for the full client list on the Constellation Research website. * Not responsible for any factual errors or omissions. However, happy to correct any errors upon email receipt.
Constellation Research recommends that readers consult a stock professional for their investment guidance. Investors should understand the potential conflicts of interest analysts might face. Constellation does not underwrite or own the securities of the companies the analysts cover. Analysts themselves sometimes own stocks in the companies they cover—either directly or indirectly, such as through employee stock-purchase pools in which they and their colleagues participate. As a general matter, investors should not rely solely on an analyst’s recommendation when deciding whether to buy, hold, or sell a stock. Instead, they should also do their own research—such as reading the prospectus for new companies or for public companies, the quarterly and annual reports filed with the SEC—to confirm whether a particular investment is appropriate for them in light of their individual financial circumstances.
Copyright © 2001 – 2021 R Wang and Insider Associates, LLC All rights reserved.
Contact the Sales team to purchase this report on a a la carte basis or join the Constellation Executive Network
Event Report
@rwang0 R Constellation Research Insider Associates @constellationr @accenture Accenture #TechVision2021 Technology Vision @pauldaugh Paul Daugherty Michael Biltz Marc Carrel-Billiard Stack Strategically MIrrored World I Technologist From me to we Anywhere Everywhere IT Services CIO CTO CDO leaders wanted
Analyst Blog
Digital Transformation, Customer Experience & Innovation Leadership | DisrupTV Episode 223
In DisrupTV Episode 223, hosts R “Ray” Wang and Vala Afshar engage with three influential leaders:
Video
ConstellationTV is here to bring you the latest in what is disruptive and reshaping business and technology. In every episode, you’ll hear from our fellow analysts, from leaders across our network of business transformation experts and influencers, as well as from cutting edge vendors.
Video
Premium Research
Executive Summary
We are thrilled to reveal the latest updates to the Constellation ShortList™ portfolio.
The Constellation ShortList™ portfolio highlights the key players when considering investments across all of our coverage areas, including HR tech, healthcare, AI, marketing, customer experience, analytics, machine learning, and more. We update the lists once per year to every six months depending on the category. Our goal is to match the rapidly changing requirements with customer needs and demand.
Analyst Blog
Event Report: Microstrategy World - Enterprise Bitcoin and The Future Of Digital Networks rwang0 Tue, 02/09/2021 - 21:50
The Outsized Influence Of Central Banks Have Changed How CEO's View Reserved Assets
On February 3rd, 2021, Microstrategy held their annual Microstrategy World Conference. The event typically celebrated the role of analytics and business intelligence. However, in August 2020, Microstrategy moved its cash reserves into Bitcoin. At the conference, the conversation around Bitcoin was prevalent and top of mind. In fact, the company doubled down on the future of Bitcoin with full tracks on how enterprises should use the cryptocurrency as CEO and founder Michael Saylor and COO Phong Le shared their experiences with the virtual audience.
"The keynote fireside chat with Microstrategy CEO - Michael Saylor and Ross Stevens, CEO of Stoneridge Capital abd Founder, Executive Chairman of bitcoin player NYDIG, was the biggest highlight of the conference and probably the best keynote of any enterprise software conference in the past 12 months."
The central argument behind Bitcoin's rise and the need for CEO's to pay attention can be summarized in 7 ways:
The CEO's most important jobs comes back to capital allocation.
Central banks around the world have capitulated to politicians around the world by setting interest rates at near zero and in some cases below zero.
Cash is no longer an asset, it has become a liability as it rapidly becomes devalued,
Central banks can control the supply of money but they cannot set the value of money.
When risk of a currency is no longer priced, the market will set a price by moving into other assets that increase in value or devalue at a slower rate
Central banks are out of control and continue to print money
CEO's must determine how to de risk their cash holdings with assets that are not being devalued.
As one can imagine, non-asset owners are the most vulnerable as they will be left behind. This major shift in thinking about the weakness of fiat currency will lead to a generational shift to more stable assets and restricted supply assets such as Bitcoin.
Bitcoin Plays A Key Role In Protecting Reserved Assets
As unlimited printing of fiat currency endangers the global financial system, forward thinking organizations will consider Bitcoin as part of their reserved asset strategy. Why? Traditional corporate finance and conservative financial manager types have often moved to precious metals such as gold and silver as a hedge. Pricing of these metals have been based on supply and demand. For example, gold grows at 2% per year while the supply of silver grows 20 to 30%. Bitcoin has a finite supply where only 21 billion bitcoins that will ever be mined.
As supply moves asymptotically to zero, the value continues to rise. When gold is compared to Bitcoin on supply alone, the limit of Bitcoin will make the cryptocurrency exponentially more rare in supply than gold. More importantly, Ross Stevens astutely pointed out that "Bitcoin is the first stored value asset and currency where supply is completely unaffected by demand." One will not be able to print or make more when the final Bitcoin is mined.
In addition to the value of Bitcoin in the long run, Ross Stevens pointed out a few other factors that make Bitcoin a better reserved asset today and a future open source decentralized value exchange network in the future:
Bitcoin is easier to move and transact. As a digital currency, bitcoin is easy to move and transact. Final settlement is in milliseconds not days or in some cases months. Banks and parties don't have to worry about debt nor credit risk.
Bitcoin is an electronic bearer asset meets open source monetary data driven digital network (DDDN). Transacting parties can achieve final liquidity in any currency pair.
People to people (P2P) transactions can occur in an open source monetary network. Intermediaries in the financial network are rendered useless as global trade, credit card transactions, remittance markets, and individual payments can interact with no merchant fees, financial fees, or currency exchange charges.
Bitcoin ensures that money is preserved as a global property right. Anyone in the world can use the open source monetary network to transact with confidence and finality.
Why Organizations Will Move Their Reserved Assets to Bitcoin
During the fireside chat, Ross made a compelling argument as to why organizations have and will continue to move their reserved assets to bitcoin. He asked a compelling question, "What do we have to believe to be true to move to Bitcoin for reserves?"
Dollar depreciation vs Bitcoin will exacerbate. Dollar has declined 80% in the past two years and 30% in the past year.
Move to Bitcoin will create exponential end state economics. While not risk free, organization's who move to Bitcoin will see a better yield for reserves and set higher hurdle rates for investments.
Bitcoin financial innovation will emerge in 2021 and beyond. Ross envisioned a world where income annuities, salaries, and other financial instruments will be paid out in Bitcoin.
Bitcoin is no longer in its infancy. The cryptocurrency has operated with 12 years of safe operation of the network. At above $500 billion in market cap, the price of bitcoin could easily hit $50,000 a coin reaching $1 trillion in market cap by end of 2021.
Fiat reserves are more risky than Bitcoin. Crazy theories such as Modern Monetary Theory (MMT) and other schemes to devalue fiat currencies place global currencies as a risk not an asset.
Bitcoin Brings Clean Energy, Responsible Development, and Equitable Development Into The Future
While many environmental activists and climate crisis promoters often see bitcoin as an energy hog, Ross Stevens ended the fireside chat with a conversation on how the energy used to mine Bitcoin could be used to create equity and societal good. He and his firm estimated that the Bitcoins mined will consume about 10 million humans worth of energy. Stevens puts forth an argument that the the world has been challenged by not the ability to produce energy but with the ability to channel energy to the right geographical location.
In the case of Bitcoin, the use of energy to mine a Bitcoin is a definable math problem, not a geographical problem. He sees Bitcoin mining as the most efficient and profitable use of clean energy. Why? Energy usage to mine Bitcoin and the related monetization do not require geographical constraints. He imagines that countries with clean energy sources such as a hydro, geothermal, or wind can mine bitcoins anywhere and in hard to reach or under developed locations. The profits from Bitcoin mining could fund the infrastructure build outs for roads, clean water, connectivity, housing, and public health. Humanity can cluster around clean energy sources instead of waste those resources.
As Stevens put it, "We used to move power to people. Bitcoin moves people to the power." Unlike the useless and costly feckless climate accords, or green mandates for virtue signaling, he sees change when clean energy aligns with a clear and real profit motive. This development of abundant clean cheap energy coupled with manufacturing money from clean energy can fund a country's development and take emerging markets and developed countries into a more equitable and sustainable period of growth.
The Bottom Line: The Pandemic Has Accelerated The Rise Of Bitcoin And Every CEO Must Take Notice
Irresponsible over borrowing and printing of fiat currency has created a reflation trade crisis and perpetuated the equity crisis. In the past, central banks could print with some abandon by repatriating currencies into property, equity markets, tech startups, and direct foreign investment. Given how much fiat currency has been printed over the past 20 years, there is more money on the sidelines and more money in circulation than value or worth in the world. As Bitcoin moves from an asset that touches millions to a data driven digital network that impacts billions, fiat currencies and reserve currencies are at risk and face competition with efficient cryptocurrencies. New digital giants will emerge around Bitcoin and organizations that fail to build or partner in these networks will perish.
Learn more in my newest book Everybody Wants To Rule The World: Surviving and Thriving In A World of Digital Giants
Your POV
Will you put your reserves into bitcoin? Is this the future of reserved assets? What's your CFO thinking?
Add your comments to the blog or reach me via email: R (at) ConstellationR (dot) com or R (at) SoftwareInsider (dot) org. Please let us know if you need help with your AI and Digital Business transformation efforts. Here’s how we can assist:
Developing your digital business strategy
Connecting with other pioneers
Sharing best practices
Vendor selection
Implementation partner selection
Providing contract negotiations and software licensing support
Demystifying software licensing
Reprints can be purchased through Constellation Research, Inc. To request official reprints in PDF format, please contact Sales.
Disclosures
Although we work closely with many mega software vendors, we want you to trust us. For the full disclosure policy,stay tuned for the full client list on the Constellation Research website. * Not responsible for any factual errors or omissions. However, happy to correct any errors upon email receipt.
Constellation Research recommends that readers consult a stock professional for their investment guidance. Investors should understand the potential conflicts of interest analysts might face. Constellation does not underwrite or own the securities of the companies the analysts cover. Analysts themselves sometimes own stocks in the companies they cover—either directly or indirectly, such as through employee stock-purchase pools in which they and their colleagues participate. As a general matter, investors should not rely solely on an analyst’s recommendation when deciding whether to buy, hold, or sell a stock. Instead, they should also do their own research—such as reading the prospectus for new companies or for public companies, the quarterly and annual reports filed with the SEC—to confirm whether a particular investment is appropriate for them in light of their individual financial circumstances.
Copyright © 2001 – 2021 R Wang and Insider Associates, LLC All rights reserved.
Contact the Sales team to purchase this report on a a la carte basis or join the Constellation Executive Network
Digital Giants
Event Report
@rwang0 R 'Ray' Wang Ray Wang Software Insider Insider Associates bitcoin Digital giants MIcroStrategy Michael Saylor Ross Stevens Cryptocurrency Enterprise Software value exchange cfo decentralized finance defi enterprise bitcoin blockchain @microstrategy 2021 @michael_saylor Constellation Research
Analyst Blog
Call it the year of accelerated transformation. Call it the year of Covid. Call it the longest continuously burning dumpster fire the world has ever faced. The year 2020 will go down in history as a year of hard lessons and hard-fought best practices.
Analyst Blog
Mastering Innovation, Talent, and Fintech: Lessons from DisrupTV Ep. 222
In DisrupTV Episode 222, hosts R “Ray” Wang and Vala Afshar engage with three influential leaders:
Video
Trends: Moving from RPA to Intelligent Autonomous Applications rwang0 Thu, 02/04/2021 - 15:53
Massive Evolution From RPA to Intelligent Autonomous Applications
The robotic process automation market has helped many clients increase speed, deliver higher accuracy, achieve greater levels of consistency, reduce costs, provide scale, and improve quality. Constellation estimates the market size in 2021 to achieve $2.2B in revenue with a CAGR of 18.8% and growth to $5.07B in 2026. RPA is a technology that enables automation of business processes using software robots "bots". RPA tools watch users and then repeat similar tasks in the graphical user interface (GUI). RPA is different than workflow automation tools as those are explicit rules and actions written to automate actions in an unintelligent manner. RPA tools have reached their limit in terms of capability as transactional automation requires a large overhead of management. These new class of enterprise apps known as autonomous applications emerge to deliver intelligent automation, cognitive capabilities, and artificial intelligence inside organizations.
AI and ML Powers The Future Of Autonomous Enterprises
Traditional transactional applications have run their course. The pressure to reduce margins, technical debt and investment in core systems creates tremendous incentives for the automated enterprise. Customers seek cognitive-based approaches in order to build the true foundation for automation and artificial intelligence–driven precision decisions. The benefits include less staffing, reduced errors, smarter decisions and security at scale. The quest for an autonomous enterprise starts with a desire to consider what decisions require intelligent automation versus human judgment.
Vendors from multiple fronts intend to deliver on this promise. Legacy enterprise resource planning providers, cloud vendors, business process management solutions, robotic process automation products, process-mining vendors and IT services firms with software solutions attempt to compete with pure-play vendors for both mind share and market dominance in this market, which Constellation Research expects to hit $10.35 billion by 2030. Constellation believes every enterprise will design for self-driving, self-learning, and self-healing sentience.
Understand The Five Levels To Full Autonomy And Autonomous Enterprises
Constellation identifies five levels of autonomous enterprises and predicts when these cognitive apps will deliver full autonomy.
Level 1 Autonomous Enterprise: Basic Automation
In this level, the system can provide basic task and workflow automation. In the automotive world, this is akin to basic cruise control.
When? Today.
Includes: Basic process automation tools such as BPM, manual instrumentation and control, and intelligent workflow automation
Who’s in control? Humans are still in control and guide many manual steps.
Level 2 Autonomous Enterprise: Human-Directed
Level 2 enables human-directed automation of business processes. In the automotive world, this is akin to being able to have adaptive cruise control.
When? Current state of the art
Includes: Robotic process automation, process-mining tools, journey orchestration tools, ML algorithms, natural language processing.
Who’s in control? Humans direct major decisions; minor decisions automated over time with some effort in training.
Level 3 Autonomous Enterprise: Machine Intervention
Level 3 delivers automation with occasional machine intervention. In the automotive world, this is when the car breaks on its own with object detection such as when a child is behind a car during backup and the car brakes.
When? The next big thing in 2020.
Includes: Cognitive applications, neural networks, GANs models, contextual decisions and next best actions.
Who’s driving? Humans still on standby but can be hands-off for periods of time
Level 4 Autonomous Enterprise: Fully Autonomous
Level 4 presumes that the machines can deliver full automation but not sentience. Think of autonomous vehicles that can run on their own but humans are still watching.
When? Sometime in 2023.
Includes: AI-driven smart services, full automation, self-learning, self-healing and self-securing.
Who’s driving? Machines are fully automated.
Level 5 Autonomous Enterprise: Humans Optional
Level 5 achieves full sentience and humans may no longer be needed. Think of these as autonomous vehicles with no human intervention and central controls by machines.
When? 2030.
Includes: Fully autonomous sentience, empowering precision decisions at scale.
Who’s driving? Humans fully optional.
The Bottom Line: Expect Level 4 Autonomous Enterprises To Emerge In 2023
The pioneering work with early cognitive applications show exponential progress in achieving Level 4 status by 2023. Organizations will have to rethink how they work with their transactional applications, future data-driven digital networks, and distributed compute and storage environments. The future is autonomous. Machines will deliver services that are continuous, auto-compliant, self-healing, self-learning, and self-aware. The need for greater precision decisions will require connections to data-driven digital networks and for more and more sources of data. This battle for public, private, and shared data will shape who wins in new networked economies that form the future of this autonomous decade
@rwang0 R Ray Wang SoftwareInsider Software Insider Constellation Research Insider Associates RPA autonomous enterprises automation robotic process automation CIO CTO cfo COO finance CX HCM planning ERP Commerce digital transformation
Analyst Blog
The Australian government is currently holding an inquiry into the federal Privacy Act of 1988 (as amended in 2000).
Analyst Blog
The great thing about encryption is it turns your precious information into meaningless random gobbledegook, utterly useless to any adversary or bystander. The problem with encryption is your precious information is useless to you too.
While encryption can protect data at rest against attack (and encryption of data in transit is table stakes) it usually means your data in an encrypted state cannot be searched, filtered, sorted, analysed or reported on. It can't be used.
Analyst Blog
Tuesday's Tip: Six Enterprise Class 5G Use Cases rwang0 Mon, 02/01/2021 - 21:07
Widespread Rollout of 5G Will Advance Transformation Projects
With 5G roll outs around the world and the consistent marketing over the past five years, the general public has a good understanding of the consumer use cases for 5G such as greater speeds, faster streaming services, more realistic games, and connected vehicles. Inside the enterprise, business and technology leaders have also been deploying 5G as part of their high priority business transformation and digitization initiatives.
Enterprise Class Use Cases Often Build On 5G Capabilities AND Other Exponential Technologies
Key capabilities of 5G include speeds as fast as 10GB per second, the ability to handle multiple input and output streams via multiplexing, and the ability to deliver connectivity in tight places via beam forming. In fact, a host of technology implications have enabled a pervasive and ambient coverage for defined venues as well as full mobility. For example:
Multiple Input Multiple Out (MIMO) - delivers higher throughput, wider coverage, and greater capacity.
mm Wave - delivers higher data rates but in shorter distances.
Centralized or cloud radio access network (CRAN) - ensures reliability in low-latency network scenarios.
Network functions virtualization (NFV) - enables the use of software based routers, load balancers and firewalls.
Software defined wireless networks (SDWN) - separate the control and data planes.
The results of these innovations enable faster data rates, low latency, wider coverage, greater reliability, higher scalability, and maximum security.
Conversations with over 225 technology and business executives leading transformation efforts over the past 12 months have revealed numerous use key use cases. This report highlights six common approaches such as:
Real-time smart factories. improved connectivity enables better data collection to improve operations, more automation to improve efficiency, and broader sensors to improve safety.
Remote patient care. Lower latency and greater speeds enable care givers to improve access to patient care. From tele medicine to remote surgery, healthcare institutions have experimented with new techniques to provide life saving services in under served populations.
Smart venues. From stadiums to churches, factory floors to job sites, 5G hastens automation, experiences, and machine learning. Inside factories, companies can collect greater amounts of data and apply sensors to create feedback loops, improve manufacturing processes. Using IOT, computer vision, and GPS signals, smart mining operations can operate self-driving excavation and transport 24/7. Early adopters have achieved higher quality, faster throughput, and fewer safety incidents.
Efficient remote field service. Through the use of augmented reality, IOT, and 5G, technicians can quickly reach the downed machine, reach a remote service expert for help, and view detailed history of previous interactions. Sensors in devices can provide cloud based remote monitoring.
Improved network security. Security is improved via mutual authentication capabilities and enhanced subscriber identity protection. As networks are upgraded, security levels are improved with preventative measures to reduce known threats.
Video surveillance. From drones to sensors, 5G deployments capture videos and activate sensors anywhere and anytime. Drones can inspect pipelines for leaks and security breaches. Computer vision applied to store fronts can reduce theft and shrinkage.
The Bottom Line: 5G is a Foundational Capability Essential for Transformation
From faster speeds to improved security, multiplexing capabilities to immersive experiences, the heart of transformation projects in the enterprise often rely on a secure and scalable 5G network. In fact, 5G enables digital transformation projects to seamlessly apply data strategies, cloud deployments, and artificial intelligence (AI). As organizations continue with their compressed and accelerated transformation projects, business and technology leaders must ensure they have a communications infrastructure such as 5G that will support their digital needs.
Your POV
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