Technologies 2015: Why should you care?



Pundits are out there suggesting many things that technology could offer, some even went little too far to advocate that Information Technology (IT) will drive business growth and organizations should be mindful of technologies. I even saw such assertions in some of the prestigious Journals: wondering what led them to ignore the fundamentals that business needs drive the IT goals, not other ways around.
Being mindful of technologies does not mean one should diverge from basics of doing business. I would rather suggest that be mindful of technology trends and solutions but understand what all these means for advancing your business goals and objectives. One perspective would be to look at technologies and the need for business solutions in a tiered format. At the top of the tier is your business or users’ applications, at the middle is Networks & IT and the bottom of the tier is IOT/M2M or similar endpoint technologies (please refer to figure 1).

Figure 1. Tiered architecture of business applications and technology solutions.
Let us dissect in each section of the tiered format to understand, how to drive technologies to solve business problems and/or advance business aspiration.

Users and Applications

In figure 1, I have depicted various industry segments for users and application. Take a moment to think each of this industry segments or for better, consider the industry segment of your organization. Let’s say your industry segment is healthcare. Mapping your needs to technology solutions in such industry begins with regulatory concerns, e.g. HIPAA or PCI-DSS as appropriate. Compliance to HIPAA is useful for many reasons, first it assures that products you and technologies you are about to implement safeguards users identity and protect your entity against security vulnerability associated with certain technologies such as Wireless transports. However, please note that these regulatory measures may not suffice the need for further security safeguards yet those instruments provide fundamental guidance. Similarly, people in the banking industry must consider PCI-DSS guidance for their IT deployment. Here is a list of application instruments, please seek appropriate guidance of their industry specific use case: GLBA, FFIEC, FISMA and NERC CIP etc. However, some regulatory standards such as SOX (though created for financial audits in public corporations) have IT components for audit specifically if you are using ERP systems. Other generic guidelines such as ISO27001 are very useful for IT governance and security. It may also serve as credential of doing IT services business for mission critical deployments. More importantly, use of compliance instruments is a good step forward to safeguard your IT investments and for good reasons. Irrespective of what vendors claim, you may find surprises that are costly if not careful.
Secondly, drive your business applications from strategic consideration. A fundamental principle of work would be creating a blueprint of your “As is” and “To be” states. The “As is” condition would be where you are in terms of technologies meeting your business needs: your current state of IT. Conversely, “To be” would be the future technological settings that meet or exceeds your long term business goals and objectives. The gap analyses between “as is” and “to be” are essential to forge ahead.
Third, determine your platform, security and service availability needs. When you think of platform consider both internal business automations and service to customers. For example, you may plan to implement ERP systems to have better data visibility and integrate business processes to better serve your customers. However, to do so you need to plan out carefully since many disparate systems may not integrate well resulting costly undertaking. Similar notion also applies to data harnessing, predictive analytics and other platforms. Bottom-line, your IT platform must consider business needs and mandates as it relates to IT solutions and must have appropriate process, architecture and governance to serve organization’s digital aspiration.

Networks & IT

As I emphasized earlier, IT deployment planning must consider business aspiration both short term and long term. With adequate planning and business foresights, investments in IT could transform your business advancing competitive positions, innovation and better decision making. More importantly, you should able to utilize tangible and intangible assets with greater efficacy. Today, IT experts have the ability to choose from a variety of technologies to build their IT infrastructure and solutions services. However, some may have more hype associated with a technology or technological solutions than substance. Let us take the example of Cloud. The good part about cloud notion is that it allows you to virtualize your compute, storage and network resources. You can choose to go public, have your own cloud infrastructure or choose a combination thereof, “hybrid”. Selection, planning and risk tolerance are important when considering various cloud solutions. If you are a small business that lack adequate IT staffs, a better option would be to go with public cloud. In contrast, a bigger enterprise must weigh cost vs long term benefit before venturing to the path of pubic cloud. More importantly, some industry segments may find public cloud solutions are quite cumbersome due to regulatory hassles and the fact that day to day business is solely dependent on the third party services.   
In contrast, depending upon affordability a business could take into consideration of deploying POD (Point of Delivery) base IT Solutions. Today, you can design a POD using off the shelf hardware or buy a POD from different vendors. A typical pod includes compute, storage and networking gears and able to serve 200 to 300 users per pod. Additionally, you could simply add another pod to serve more users as the business grows.


Figure 2. POD based IT solutions.

Interestingly, pod will make your future data center essentially flat. Today, customer has choice either to use TOR (Top of the Rack) L2 switch that offers 10/40GbE connectivity or low cost fabric extender to expand network connectivity.  As for virtualization, depending upon your preference you may choose Vmware, Windows, Redhat and OpenStack (open source) to manage cloud infrastructure. Each of these cloud management software has modules to manage different aspects of your pod integrations: compute, storage and networks. The cloud infrastructure management software also offers tenant services for your internal of external clients so you could offer and manage services according to their respective business needs.
These backend cloud infrastructure could serve as your mini data center until you grow to a point of several pods to claim your install base as a data center. Even for such growing needs, you could modularize and have your modular data center. A number of vendor offer containerized data center that are configured to need for plug n play. The containerized or modular data center includes a number of pods within a container that is tested for self-contained data center.  Similar to figure 2, you simply add modular data center through extended fabric interconnect and the system is ready to serve.  

IOT/M2M: Endpoint Technologies

Today, you can simply sense the physical world and measure/view its attributes through digital platform. For business, it opens up new possibilities from assets monitoring to behavioral marketing. In one of my articles at linkedin, I mentioned the trend of smart convergence where networks will be more intelligent. Today, IOT (Internet of Things)/M2M (Machine-to-Machine) technologies are blending physical and digital world delivering endpoint intelligence to networks making it possible for analytical platforms to display meaningful information. The term IOT and M2M are often used synonymously; however, IOT simply means sensors or things for which M2M is the communications means between endpoint devices.  

Figure 3. IOT/M2M communications.
There are numerous benefits of IOT/M2M solutions to business: literally every segment of industry can be benefited from the implementation of IOT/M2M solutions depending upon the business needs. Cognizant (2014) presented a table depicting various benefits of IOT by industry sectors. This is not an exhaustive list but may serve as the prelude to understand hidden possibilities of smart connectivity through IOT/M2M.



Industry

Key Change
Potential Benefits
Automotive and
Transportation
Traffic monitoring including driving behavior and vehicle diagnostics.

Improved revenue stream, customer experience, reduce pollutions and safety
Healthcare
Remote monitoring of patients, staffs and equipment status
Improve productivity, healthcare decisions and efficiency of service.
Manufacturing
Quick response, industrial safety, monitoring, efficiency, reliability and cost savings.
Reduce energy, carbon footprint, agility, flexibility and speed of delivery.
Retail
Connected supply chain, effective inventory use and consumer behavioral data
Improve sales through analyses of consumer behavioral data and better inventory control.
Supply Chain
Real time tracking at all stages of manufacturing and supply.
Cost savings, unnecessary service interruption.
Infrastructure
Smart control on lighting, water, power, cooling, alarms and infrastructure health systems
Significant cost savings, environmental benefit and safety.
Oil and Gas
Smart connectivity, safety and monitoring
Reduce production cost and safety.
Insurance
Pay as you go: innovative services
Cost savings for insurer and consumer.
Utilities
Smart grids and meters
Responsive and reliable service, effective monitoring and demand based pricing structure.

However, finding IOT/M2M solutions is not easy: though there are many smart things out there not all can be connected and monitored due to lack of platforms available. Hence, you need to rely on third party contractors to develop platform for you at a price. Consecutively, some big corporations offer industry specific solutions that may meet your business needs. Recently, few startups started working on open platforms for customized IOT solutions but nothing concrete is available till date. Bottom-line is that ubiquitous connectivity presents tremendous opportunities for businesses but to reap benefits one must ensure that such aspiration is aligned with business goals and objectives.
I have presented a tiered framework for understanding how business goals and objectives can drive technological solutions to advance your organizational aspiration. If you find this article interesting and would like to transform your business through  what best technology could offer, please feel free to contact me.

Reference:

Cognizant , 2014. Reaping the Benefits of the Internet of Things. Cognizant Reports. Available online at http://www.cognizant.com/InsightsWhitepapers/Reaping-the-Benefits-of-the-Internet-of-Things.pdf

Comments