The value of an emerging information technology to Raytheon is measured based on its projected impact on our business. An exceptional IT team knows there are only three possible sources of business value for an emerging technology; it can help us grow our revenue, improve our profitability, and/or help mitigate some risk that is important to the company as a whole.
7 tips for vetting the business value of emerging tech
We see emerging technology providing value in numerous areas, but three stand out: new growth channels, driving competitive advantage and talent acquisition. At Gallo, we know consumer needs and behaviors are changing, and we believe emerging technology provides us the opportunity to connect with our consumer in more meaningful ways.
In addition, we seek out emerging technology in order to continuously drive competitive advantage from winemaking, all the way through the path to purchase. As Gallo continues to grow as an organization, we also recognize that emerging technology can play an important role in how we are perceived by the next generation of employees, and we must continuously ensure that we are providing the right tools for our workforce to compete and win in the marketplace.
Assessing the value of an emerging technology is about business benefits and risk. A trusted and repeatable framework is critical for consistently and objectively assessing the value of any emerging technology. There are two parts to my framework for assessing the value of emerging technology.
The second part of the framework is about business outcomes. This includes potential short and long term business impact, business relevance, technology viability, trend analysis, business scenario visualization, and traditional cost-benefit analysis. The business outcomes part of the framework is where the rubber hits the road and ultimately determines if the emerging technology can provide the right type of value to the organization.
Applying the components of the framework enables consistent and objective value assessment of emerging technology through a business benefits and risk lens. The framework and processes were developed as part of my vendor management initiative called the Strategic Partner Program.
Case Study #2: Use software to simplify and standardize the vetting process A few years ago, Jill Koob, the vice president of sales solutions at Employer Flexible, the Houston-based human resources and recruitment company, needed to hire an operations analyst for the HR technology group.
Davenport suggests that CIOs and business leaders need to look at AI through the lens of business capabilities versus the lens of technology. He says that process automation focuses upon the automation of digital and physical tasks using RPA. More importantly, Davenport says RPA is the least expensive and easiest to implement. This is an efficiency, (coupled with consistency and standard) time saving and integral part of any digital process.
In a recent discussion with the #CIOChat group, they were clear that analytics and data are key requirements for digital transformation. CIOs clearly need to understand the potential and limitations of each approach. They, also, need to know how these technologies work together tin business and across the business supply chain. Additionally, there is no point in having AI and robots if somewhere else in the work process is an analog process that will slow down the work and become a bottleneck.
A moon-shot approach clearly is not the answer for everyone. CIOs have a role in these projects just like other transformative projects to act as the universal translator of business requirements. They also must be able to move and communicate smoothly between the business and technology. This means being able to communicate the potential and gaps for AI, machine learning, and other disruptive technology approaches.
EEM offers passive exposure to large- and mid-cap emerging-market stocks. The ETF tracks the MSCI Emerging Markets Index, which holds over 800 stocks from places like China, India, Taiwan, South Korea, Brazil, Saudi Arabia, Mexico and elsewhere. Most of the ETF is concentrated in financial sector stocks, with information technology and consumer discretionary coming in second and third. Top holdings include Taiwan Semiconductor Manufacturing Co. Ltd. (2330), Tencent Holdings Ltd. (0700), Samsung Electronics Ltd. (005930) and Alibaba Group Holding Ltd. (9988). The ETF hasn't had the best performance over the last decade, posting a 10-year annualized return of 0.37%. However, its return since inception from 2003 is much better at an annualized 7.93%. EEM costs an expense ratio of 0.68%, which works out to $68 annually per $10,000 invested.
In the wake of these developments, regulatory leaders are faced with a key challenge: how to best protect citizens, ensure fair markets, and enforce regulations, while allowing these new technologies and businesses to flourish?
This paper begins by exploring the unique regulatory challenges posed by digital-age technologies and business models. Section two describes the four critical questions policymakers and regulators must address when it comes to regulating the digital economy. Finally, section three provides a set of five principles to guide the future of regulation:
Scholars have identified a host of challenges emerging technologies present to traditional regulatory models, ranging from coordination problems to regulatory silos to the sheer volume of outdated rules.1 We have grouped four of the most important challenges into two buckets: business and technological (see figure 1).
Coordinating with regulators across borders is another challenge. Since the late 1980s, many organizations and consortia have cropped up to serve as independent standards-creation bodies that accommodate the unique needs of emerging technology sectors.13
One emerging sector impacted by data regulation is digital health. A key development in digital health technology is Software as a Medical Device (SaMD), which can diagnose medical conditions, suggest treatments, and inform clinical management. SaMD allows patients to play a more active role in their own health care.
While not legally binding, soft law instruments have several advantages over formal regulation in the arena of emerging technologies. They allow regulators to adapt quickly to changes in technology and business models, and to address issues as they arise without stifling innovation.50 Moreover, through deep engagement with affected stakeholders, they help regulators understand the nuances of the technology and its potential impacts.
Sandbox approaches are intended to help regulators better understand new technologies and work collaboratively with industry players to develop appropriate rules and regulations for emerging products, services, and business models.59
The United Kingdom has been a pioneer in the use of accelerators and sandboxes as part of the regulatory process. Its Financial Conduct Authority (FCA), as part of its broader Project Innovate, launched the first fintech regulatory sandbox in June 2016. This sandbox allows businesses to test innovative products and services in a safe, live environment, with the appropriate consumer safeguards, and, when appropriate, is exempt from some regulatory environments.62 After its first year of operation, 90 percent of firms that completed testing in its first cohort were continuing toward a wider market launch, and more than 40 percent received investment during or following their sandbox tests.
Speed to market is imperative for businesses, especially startups with business models predicated on emerging technologies. Speed to market also can make digital services and products more effective. As they are used, they usually collect data on their users. With the help of advanced analytics and, in many cases, AI, the data can then be analyzed to detect new patterns and trends, information that can make the product more accurate, safe, effective, and personalized. Because of this iterative factor, the sooner safe and effective products get to the market, the better.
One way to accelerate the approval of business models based on emerging technologies would be to draw inspiration from the precheck systems for airline travel used in many countries. These work by using data to certify low-risk flyers, who then receive a lower level of scrutiny and inspection.
As the digital economy expands, with new business models, technologies, products, and services, regulators around the world can benefit from collaborative approaches such as co-regulation, self-regulation, and international coordination. Through multi-stakeholder meetings that produce concrete policy guidance and voluntary standards, regulators and firms as well as other interested parties can be engaged in the process.
It is virtually impossible to imagine a business today succeeding without a strong base of tech talent. Only by accepting that overriding reality and making an all-out push to acquire the right tech talent can companies expect to capture the value that digital promises.
In the continuously changing business context, demand for business adaptability directs organizations toward technology architecture that supports fast, safe and efficient application change. Composable application architecture empowers such adaptability, and those that have adopted a composable approach will outpace competition by 80% in the speed of new feature implementation.
About the Gartner Information Technology Practice The Gartner IT practice provides CIOs and IT leaders with the insights and tools to drive the organization through digital transformation to lead business growth. Additional information is available at www.gartner.com/en/information-technology. Follow news and updates from the Gartner IT practice on Twitter and LinkedIn.
Capture an overview on a single page that communicates how you are adding value today and demonstrates how you plan to impact the business over the next year. Include a statement of strategy, a before-and-after description of the state of your function, one or two critical assumptions underpinning the strategy, and five to seven initiatives required to meet the functional objectives established to support business goals. 2ff7e9595c
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