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Page 1 of 36
In this e-guide
What CIOs should know
about Brexit
Blockchain and the CIO: a
new model for IT
The Bimodal IT backlash
10 key facts businesses
need to note about the
GDPR
Executive interview: Harriet
things chief
Getting more CW+ premium
content
CIO Trends #2
Introduction:
Computer Weekly talks to more IT leaders than any other publication, and our
reporters gather in-depth insights into the challenges facing CIOs, CTOs and
CDOs. This guide offers a collection of our most popular articles for IT leaders
during
Wikinomics author Don Tapscott writes for Computer Weekly about
the emerging blockchain technology and what it means for CIOs. And we talk to
global internet of things
business. With technology playing a critical role in every business and
government body, the role of the IT leaders has never been under more scrutiny
read through the selection of articles here to find out how your peers are
tackling the opportunities and delivering the benefits of digital technology.
Bryan Glick, Editor in Chief
In partnership with IP EXPO Europe
Page 2 of 36
In this e-guide
What CIOs should know
about Brexit
Blockchain and the CIO: a
new model for IT
The Bimodal IT backlash
10 key facts businesses
need to note about the
GDPR
Executive interview: Harriet
things chief
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content
CIO Trends #2
Stephen Mercer, Guest Contributor
CIOs should start talking with other executives and their teams and
begin planning now for potential changes
The outcome of the EU referendum has triggered a sharp, negative response from
the corporate sector.
According to research by Deloitte, 73% of chief financial officers (CFOs) said they
are less optimistic about the financial prospects for their company.
Over the coming months, the terms on which the UK leaves the EU will start to
become clearer. In the meantime, business leaders including the CIO should
communicate and plan for potential changes.
So how should technology leaders respond?
Immediate priorities plan, communicate and reassure
While the result was unexpected for many, there is no need for knee-jerk reaction.
Planning should begin now to mitigate risks to operations and to look for
Page 3 of 36
In this e-guide
What CIOs should know
about Brexit
Blockchain and the CIO: a
new model for IT
The Bimodal IT backlash
10 key facts businesses
need to note about the
GDPR
Executive interview: Harriet
things chief
Getting more CW+ premium
content
CIO Trends #2
opportunity. Avoid hasty and unwarranted cost cutting, protect key investment
programmes, but create space in budgets and resource plans for Brexit-related
activities.
the organisation to determine the potential business model and technology changes
required. Include th
trades by World Trade Organisation standards, looking at the implications and the
This includes planning for the technology skills that may be needed. If many
organisations seek to make changes to finance, digital and e-commerce systems at
the same time, skills to do these will be in hot demand.
CIOs should perform an operational risk review to determine possible disruption to
their IT supply chain. This should include reviewing critical contracts for risks that
might change the price paid, cost to deliver or operational principles.
Issues may include movement of goods and people intrinsic to the service, currency
mechanisms including FX, territorial elements such as licensing or insurance validity
(that may be determined by the EU) and related facilities. Addressing any issues
now could save costs, but also reduce uncertainly for suppliers and assure service
continuity.
Page 4 of 36
In this e-guide
What CIOs should know
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Blockchain and the CIO: a
new model for IT
The Bimodal IT backlash
10 key facts businesses
need to note about the
GDPR
Executive interview: Harriet
things chief
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CIO Trends #2
IT departments also often have one of the most diverse talent pools in the business.
This team will appreciate positive communications and reassurance that you are
actively managing Brexit.
Key dimensions data, hosting and security
There is no need to migrate data or systems between jurisdictions in anticipation of
Brexit at this stage, such as moving European data to the UK or vice-versa. Indeed,
this could prove counter-productive if and until any relevant legislative changes are
outlined.
Hosted and cloud services will continue to be an important component of
technology strategy. Regardless of Brexit, many major public cloud providers are
offering regional options within their service and we expect them to provide tools to
assist with migration between regions, should this be required.
Perform additional due diligence when selecting new software as a service(SaaS)
applications though. For example, determine the proportion of customers and
UK market.
Continue to prepare for the General Data Protection Regulation (GDPR), as it will
need to be implemented by May 2018 regardless. All countries handling EU resident
data must comply with GDPR, even if they are outside the EU. It is also likely that a
close equivalent will be implemented in the UK post-Brexit.
Page 5 of 36
In this e-guide
What CIOs should know
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Blockchain and the CIO: a
new model for IT
The Bimodal IT backlash
10 key facts businesses
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GDPR
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Consider opportunity as well as risk mitigation
Good businesses innovate and there may be several areas where technology could
support market advantage. For example, in the last period of economic uncertainty,
consumer spending
With the much-increased prevalence of smartphones and tablets providing ease of
access, there is an opportunity for digital innovation to power growth through
enhanced online services.
There is still much uncertainty around the UK exit from the EU. CIOs will use this
time to ensure they are prepared once the specifics are clearer. Shrewd CIOs will
seek out the competitive advantages that these changes may bring.
Brexit is a historic moment that requires CIOs to be proactive and show leadership.
As revealed in , technology leaders who embrace change have
the opportunity to create a legacy beyond their systems.
Next article
Page 6 of 36
In this e-guide
What CIOs should know
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Blockchain and the CIO: a
new model for IT
The Bimodal IT backlash
10 key facts businesses
need to note about the
GDPR
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things chief
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CIO Trends #2
Don Tapscott and Alex Tapscott, Guest Contributors
The most important emerging technology for the enterprise and
therefore the CIO is not big data, the social web, artificial intelligence,
robotics or the cloud
The digital revolution is bringing a new and radically different platform for business
and other institutions that can take us through the next quarter-century of human
progress. At the core is the biggest innovation in computer science in a generation.
It is blockchain the technology underlying the digital currency Bitcoin. This
technology platform is open and programmable.
For the last few decades, we have had the internet of information. Blockchain is
bringing the internet of value. As such, it has the potential to unleash countless new
applications and as-yet unrealised capabilities that could transform everything in the
next 25 years.
At its most basic, blockchain is a global database an incorruptible digital ledger of
economic transactions that can be programmed to record not just financial
transactions, but virtually everything of value and importance to humankind: birth
Page 7 of 36
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Blockchain and the CIO: a
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The Bimodal IT backlash
10 key facts businesses
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Executive interview: Harriet
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and death certificates, marriage licences, deeds and titles of ownership, educational
degrees, financial accounts, medical procedures, insurance claims, votes,
transactions between smart objects, and anything else that can be expressed in
code. This ledger represents the truth because mass collaboration constantly
reconciles it.
We will not need to trust each other in the traditional sense, because the new
platform ensures integrity. Think about it like this: trust achieved through clever
code and mass collaboration. Collective self-interest, hard-coded into this new
native digital medium for value, would ensure the safety, security and reliability of
commerce online. Trust is programmed into the technology, which is why we call
Some scholars have argued that the invention of double-entry book-keeping
enabled the rise of capitalism and the nation state. Today, the new platform enables
a reconciliation of digital records call it the di
need a digital reckoning.
Building 21st century companies
It turns out that every business, institution, government and individual can benefit in
profound ways.
Page 8 of 36
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What CIOs should know
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Blockchain and the CIO: a
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The Bimodal IT backlash
10 key facts businesses
need to note about the
GDPR
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How about the corporation a pillar of modern capitalism? With the rise of a global
peer-to-peer platform for identity, trust, reputation and transactions, we will be able
to re-engineer deep structures of the firm, for innovation and shared value creation.
We are talking about building 21st century companies that look more like networks
than the vertically integrated hierarchies of the industrial age. The whole financial
service industry is already being reinvented by blockchain, and others will soon
follow.
How about the internet of things? In the not-too-distant future, billions of smart
things in the physical world will be sensing, responding, communicating, sharing
important data; and generating, buying and selling their own electricity, doing such
things as protecting our environment, charging our homes and managing our health.
It turns out that this internet of everything needs a ledger of everything.
As with major paradigm shifts that preceded it, blockchain will create winners and
losers. But if we do this right, blockchain technology can usher in a halcyon age of
entrepreneurship, empower us to reinvent our institutions for the better and create
a fairer and more prosperous world.
This creates significant opportunities and challenges for the CIO. Like other big
innovations, such as the PC, the web, mobility and the social web, blockchain
experimentation often starts outside the IT function. Thoughtful CIOs should view
this as positive because every business will become a blockchain business and
every business leader needs to explore opportunities for transformation.
Page 9 of 36
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The Bimodal IT backlash
10 key facts businesses
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GDPR
Executive interview: Harriet
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The trouble is that IT challenges are enterprise challenges. Companies need to have
an integrated enterprise architecture to have a single version of the truth and to
harness the power of blockchains. They need to have security standards and
systems to protect them from bad actors. They need backup capabilities to ensure
business continuity. They need an enterprise strategy for the next generation of
blockchain collaboration tools and systems to cut across business silos. They need
to have elite IT talent to deal with the many complexities of becoming a blockchain
business.
A new model for IT
There is a solution to this dilemma. A new model of the IT function is emerging one
that makes the CIO more important than ever.
anticipates business needs and provisions a rich supply of services, from standards
for blockchain application development and architecture-compliant applications, to
elite talent with expertise in blockchain architecture and development all in the
The business customer goes to the supermarket a self-service portal or catalogue
and pulls up the available services. They choose the services, the level of service
required, and combines them to meet their technology needs.
Page 10 of 36
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The Bimodal IT backlash
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How can a CIO get started? Here are some suggestions:
Personal use of this technology is a precondition to comprehension. Get a
digital wallet on your mobile phone and buy something with digital currencies.
Takes steps to ensure you are informed about the blockchain revolution.
Hire or transition key blockchain IT talent to get going.
Initiate a next-generation blockchain architecture project. Every firm will need
a target architecture and a migration strategy so that new investments
contribute to a desired future, rather than perpetuating the past.
Launch a pilot where your company can learn, gain experience and make
initial successes. Think big, but start small.
Start fast, too. It is likely that the second era of the internet will happen much more
quickly than the first, because many of the technological preconditions for it to take
off already exist.
Next article
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-
Caroline Donnelly, Datacentre Editor
CIOs, but industry watchers have queried how well cultivating a two-tier
IT department works in reality
For enterprise CIOs trying to balance the day-to-day maintenance of their IT
equipment with the need to become more startup-like and agile in their approach to
Bimodal IT concept ticks all the right boxes.
Rather than encouraging them to rip out and replace their core, legacy systems, the
Bimodal IT approach recommends setting up a Mode One team. This team will
concentrate on maintaining their stability and efficiency, so the wheels of the
business keep on turning.
Page 12 of 36
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Responsibility for carrying out the experimental and exploratory work an enterprise
needs to do to keep on top of the emerging competitive threats they face,
meanwhile, falls under the remit of Mode Two.
Gartner first shared details of its Bimodal IT vision in 2014, and urged CIOs to get
on board with the concept if they want their digital transformation plans to come to
fruition.
Wind the clock forward to 2016, and there are signs of a Bimodal backlash
emerging, with
f
attitude pervading some enterprise IT departments.
The latter is linked to the pejorative language enterprises use to distinguish
between the types of work Mode One and Mode Two do, says Kris Saxton, principle
consultant at IT services provider Automation Logic.
Speaking at the DevOpsDays London conference in April 2016, Saxton says it is not
they do.
But that is quite mild compared with some of the more unfair and derogatory
descriptors such used in IT departments when
referring to Mode One teams and their workers, he adds.
Page 13 of 36
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The Bimodal IT backlash
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On the flipside, the terms used to describe Mode Two tend to be more positive in
For contextual purposes, it is worth nothing that Gartner is fond of using more
neutral terminology, with Mode One workers often likened to marathon runners,
while Mode Two are more like sprinters.
Either way, trying to differentiate between the two groups in this way can contribute
towards the creation of a divide in the IT department, while also serving to
undermine the important work Mode One workers do, adds Saxton.
hese are people with domain knowledge about
ir amount
The digital divide
The push for greater efficiency and business agility is driving the digital
transformation efforts of most enterprises. Therefore, having two groups in the
same department vying for the attention of the people controlling the company
purse strings is illogical, as far as Forrester is concerned.
Page 14 of 36
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have two groups competing for funding, resources, skills and the
False Promise of Bimodal IT report states.
Speaking to Computer Weekly, Simon Mingay, research vice-president at Gartner,
says there are preventative steps enterprises can take to stop a digital
divide occurring between the respective members of Mode One and Mode Two.
vision, which relates to the digital transformation and the role of everybody in the
uff gets down by the Mode Two team and the Mode
One team just get on with the day job is fundamentally flawed and is not the
It is also the responsibility of the CIO to ensure the right kind of messaging is used
to describe the work both groups do, and that they are both recognised and
rewarded equally for their efforts.
gifted all the investment and development opportunities, because [the success] of
Bimodal
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and transparent style of work, that they
work to align priorities and that there is equity in terms of reward, recognition and
Bimodal IT and innovation
Questions have also been raised about how conducive the Bimodal concept is to
fostering long-term innovation in enterprises.
This point of view appears to stem from some confusion in the user and market
watcher community about how much if any collaboration should occur between
Mode One and Mode Two during projects.
Indeed, Saxton is of the view that any experimental and exploratory work Mode Two
embarks on is unlikely to be of much use to the wider business, without some form
of intervention from Mode One.
tied down by any of the process, the change control and the other rubbish, but
says.
application will need to connect to other apps and services that have been around
for a while, and are more likely to be in Mode One.
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-term
This is a view shared by Jez Humble, deputy director of delivery architecture and
(GSA) agency, who recently penned a blog on this subject entitled
.
In the blog post, he claims enterprises that pursue a Bimodal IT strategy are putting
their long-term competitiveness at risk.
This, Humble wrote, is because so mu IT budget remains
locked up in the legacy kit Mode 1 teams are usually tasked with maintaining.
increasingly complex and fragile over time, while failing to gain the expected return
on investment from adopting agile
For this reason, enterprises may find following the bimodal approach significantly
slows the pace of digital transformation in their organisation, Saxton told Computer
Weekly in a follow-up interview.
Page 17 of 36
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your business in such a way that your IT transformation is going to take 15 to 20
ye
Mingay, however, is quick to quash this opinion, explaining that Mode One
contributes more to the running of the business than life support for ailing legacy IT
systems.
One of the things Mode One will be focused on is the renovation and renewal of
the core and/or legacy environment because that requires huge amounts of
quickly run into a brick wall, because of the limited capabilities of the core
Interaction between the two groups is encouraged to help Mode One learn about
and start utilising more DevOps-friendly and iterative processes. This is another way
Differences in opinion
A common misconception about the bimodal model is that Mode One workers rely
Page 18 of 36
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sing Waterfall, but we
would absolutely encourage organisations to adopt iterative approaches in Mode
managing to practice it successfully will largely come down to how organisations
choose to interpret the guidance, it seems.
Rather than striving to create a two-tiered IT structure, Saxton says enterprises
should consider creating multi-discipline teams, featuring a mix of Mode One and
Mode Two IT workers, as well as individuals from elsewhere in the business.
This could also help address another red flag raised by Forrester in its report. The
analyst house pointed out that separating the IT department into two streams could
risk alienating it further from the wider business.
-disciplinary teams work because they are people-focused, and they
are
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Warwick Ashford, Security Editor
With less than two years before the new EU data protection rules come
into force, there are key areas businesses need to focus on to ensure
they will be compliant
re are
10 key facts businesses need to know, says privacy lawyer
and KuppingerCole analyst Karsten Kinast.
General Data Protection Regulation (GDPR) comes into force in less than two
sations to start responding to these key
European Identity & Cloud Conference 2016 in Munich.
1. GDPR applies to all
The GDPR applies to all companies worldwide that process personal data of
European Union (EU) citizens.
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European data
protection principles
This means that any company that works with information relating to EU citizens will
have to comply with the requirements of the GDPR, making it the first global data
protection law.
Kinast believes this aspect alone will contribute significantly to all companies around
the world including those in Europe taking data privacy more seriously.
2. The GDPR widens the definition of personal data
While the definition of personal data has always been fairly wide, Kinast said the
GDPR broadens it even further, bringing new kinds of personal data under
regulation.
data protection laws in the
past will need attention from businesses to ensure they comply with the new
The GDPR considers any data that can be used to identify an individual as personal
data. It includes, for the first time, things such as genetic, mental, cultural, economic
or social information.
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3. The GDPR tightens the rules for obtaining valid consent to using personal
information
Having the ability to prove valid consent for using personal information is likely to be
one of the biggest challenges presented by the GDPR, according to Kinast.
le language when asking forconsent to
collect personal data, they need to be clear about how they will use the information,
and they need to understand that silence or inactivity no longer constitutes
The GDPR requires all organisations collecting personal data to be able to prove
clear and affirmative consent to process that data. However, Kinast said most of the
consent mechanisms he is seeing in the market are not valid under the GDPR.
what personal data they are collecting and how it will be processed and used.
Without valid consent, any personal data processing activities will be shut down by
he said.
4. The GDPR makes the appointment of a DPO mandatory for certain
organisations
The GDPR requires public authorities processing personal information to appoint
a da
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According to a study by the International Association of Privacy
Professionals (IAPP), this requirement means that, in Europe alone, 28,000 DPOs
will have to be appointed in the next two years.
, there are many organisations with fewer
than 10 employees that process the personal data of thousands of people and have
a much higher risk than many larger organisations.
instead on what organisations do with personal information.
to appoint a DPO, who will be an extension of the data protection authority to
ensure personal data processes, activities and systems conform to the law by
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5. The GDPR introduces mandatory PIAs
According to the Kinast, the inclusion of mandatory privacy impact assessments
(PIAs)
The GDPR requires data controllers to conduct PIAs where privacy breach risks are
high to minimise risks to data subjects.
information, they will have to conduct a privacy risk assessment and work with the
6. The GDPR introduces a common data breach notification requirement
The GDPR harmonises the various data breach notification laws in Europe and is
aimed at ensuring organisations constantly monitor for breaches of personal data.
ations to notify the local data protection authority of
a data breach within 72 hours of discovering it. This means organisations need to
ensure they have the technologies and processes in place that will enable them to
making changes to internal data security policies and how this is promoted in the
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organisation to ensure data breaches are properly understood and will be
7. The GDPR introduces the right to be forgotten
The GDPR introduces very restrictive, enforceable data handling principles, said
Kinast.
One of these is the data minimisation principle that requires organisations not to
hold data for any longer than absolutely necessary, and not to change the use of
the data from the purpose for which it was originally collected, while at the same
time they must delete any data at the request of the data subject.
ent before they can alter the
It also means organisations have ensure they have the processes and technologies
in place to delete data in response to requests from data subjects.
8. The GDPR expands liability beyond data controllers
In the past, only data controllers were considered responsible for data processing
activities, but the GDPR extends liability to all organisations that touch personal
data.
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vides data processing services to
the data controller, which means that even organisations that are purely service
providers that work with personal data will need to comply with rules such as data
9. The GDPR requires privacy by design
The GDPR requires that privacy is included in systems and processes by design.
er compliance with
seen in software. But in the future, all software will be required to be capable of
completely erasing data
he said.
10. The GDPR introduces the concept of a one-stop shop
In the past, Ireland has been popular with large US corporations, such as Google,
protection authority to take action against organisations, regardless of where in the
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4% of group annual global turnover.
The benefit for business, he said, is that they will have to deal with only one
supervisory authority rather than a different one for each EU state.
citizens sill have the right to approach any data protection authority of their choice
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Bryan Glick, Editor in chief
Former Thomas Cook CEO is leading IBM's charge into the IoT, and is
pushing its Watson AI technology as a unique differentiator
The internet of things (IoT) is understandably viewed by technology companies
large and small as the next great wave of development in the digital age.
For IBM perceived by some as a lumbering giant that was slow to respond to
major IT trends such as mobile and cloud it is essential to take an early lead in this
emerging market. Perhaps that explains the decision to look outside the company
for a high-profile business executive to head its IoT charge.
-known
consumer brands holiday company Thomas Cook and formerly chief executive
of electronics distributor Premier Farnell. Green is a big hitter a former Veuve
Clicquot Businesswoman of the Year and Leader of the Year in the 2013 UK
National Business Awards.
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Sadly, but not untypically for tabloid coverage of successful female business
leaders, she has also been the subject of some intrusive British national newspaper
reporting
market worth from £148m to more than £2bn in little more than two years.
By the time she left the travel firm, her reputation in the City was such that £350m
was wiped from the value of she announced her
departure in November 2014.
Such a high-profile background might also explain why IBM CEO Ginni
Rometty personally hired Green last September into a global role as general
manager for IBM Watson internet of things, commerce and education.
Combining Watson with IoT
famed for beating humans on the
US TV quiz show Jeopardy a capability that the supplier sees as a distinctive
difference to its IoT offering.
uter Weekly in one of her first
So why did she choose this role after running Thomas Cook, and why IBM?
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finished the first phase of the Thomas Cook transformation and made sure the
business was not going into demise and made it robust, then what I was attracted to
three,
possibly four major transformations in its tenure. I was very attracted to that
of the most important digital movements since the founding of the internet. And, of
course, with such an iconic
smarter planet
in 2008, which brings with it a track record of innovation and customer case studies
that offer some real-life examples of the technology in action. The firm last year set
up a global headquarters for its Watson IoT business in Munich, recruiting 1,000
researchers, developers and designers.
other country, let alone
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Huge amounts of data
She cites customers such as the city of Beijing and Airbus as examples of an
cognitive computing
Watson with IoT networks to take the huge amounts of data generated by sensors
and interpret that into something meaningful and useful.
ot just structured data, where you can put it into your computer and
write code and analyse it a very large percentage of this data is unstructured.
or to create new prod
According to research by McKinsey, companies discard 99% of data before their
decision-makers have a chance to use it.
how much dark data you have, that only Watson and
created on a daily basis much of which will go to waste unless it is utilised. This
so-called dark data represents a phenom
In Beijing, an IBM initiative called Green Horizons takes real-time data from
environmental monitoring stations, meteorological satellites and traffic cameras to
oblems.
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Watson helps to predict the effects of weather and traffic flow on pollution levels so
that city authorities can take action. According to IBM, the Beijing government was
able to reduce levels of harmful particulates by about 20% in 2015.
At Airbus, the number of sensors on a plane can generate up to half a terabyte of
data per flight while monitoring up to 300 million parts in the aircraft. The company
is using Watson IoT systems to improve predictive maintenance, and is working with
IBM on what Gr
data to start crunching and correlating
transformation? If you love tech and you love digitising and you love high-intensity
Lifting our experiences
IBM, of course, is not alone among large suppliers in targeting the internet of things,
nor is it the only firm trying to combine IoT with AI. Microsoft, for example, is using
its cloud-based Azure Machine Learning offering to analyse real-time data from
IoT networks. It cites ThyssenKrupp Elevator as an early user, collecting and
analysing sensor data from its lifts.
IBM, meanwhile, counts rival lift maker Kone as a client for Watson IoT, using cloud
to connect, remotely monitor and manage its global maintenance of lifts, escalators,
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lect the
Voutilainen, head of new services and solutions at Kone.
Green says the examples of Kone and Beijing city show how IoT and data analytics
can help to rethink our everyday experiences of buildings and cities.
and how to make those experiences as positive as possible, right the way through
to people in their cities, people worrying about pollutants and sharing information
So IBM can point to an established base of IoT customers, but can it compete with
the numerous, faster-moving tech startups targeting this growing field?
ty of space for lots of innovative startups and also lots of
space for companies who are very much more established, which are themselves
the ability to use sensors for everything in the world to basically be a computer,
le; companies for whom
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This company is perfectly positioned to lead a global movement like IoT because all
think of another company at scale that is able to support the human
IBM is also hoping to woo developers and startups by building an ecosystem around
its offerings Microsoft is trying to do something similar.
attract thousands and thousands of developers to be part of this envir
Green.
AI scare stories
For all the opportunity presented by AI and IoT, it is also a technology that worries a
lot of people what with all that data being stored about our lives and the world
around us, and scare stories about jobs likely to be automated by AI. But Green
sees the opportunities outweighing the potential negatives.
technologies, and
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the mass production of electricity or factory automation d every form of
Tolpuddle Martyr and people worrying about jobs.
what has developed is people working together with machines more effectively.
People have gone on to do other things which are more value adding, less
dangerous, than they might have done before. But such fears are totally
understandable.
those standards reflect how consumers and our clients think. As we have always
done, we will ensure that however someone wants to protect their data, we
IBM is clearly placing its bets on Watson, IoT, and a combination of the two, as a big
part of its further transformation away from its history as a big hardware provider,
to the software and services future it wants. As its traditional rivals the likes
of HP and Dell have found, that is still a tough transition to make. But for Green, as
a new recruit, the measures required for success are in place.
transforming businesses, is does everyone inside of IBM have the same end in
ess reinvention? And is
there enormous drive around cognitive technologies?
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the future.
strategy
Next article
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