Digital and Algorithmic Business Discussed at Gartner Symposium/ITxpo 2016, on how algorithmic business will create even greater levels of disruption and new industries
Digital disruptors such as algorithms, artificial intelligence (AI), bots and chatbots are already transforming businesses. Gartner expects that algorithmic business will create even greater levels of disruption and new industries. To support the new capabilities and business models of digital and algorithmic business, CIOs must design and deploy their digital business technology platform.
Steve Prentice, vice president and Gartner Fellow said, “Fueled by data, analytics and AI, algorithmic business will continue to grow and disrupt your business. This growth is unabated as algorithms are feasting on the wealth of data that grows inexorably.” More than 500,000 new devices connect to the Internet every hour, and every one of them simply adds to the inevitable growth of data.
Algorithms are taking center stage in the race for competitive differentiation as leading organizations uncover their true value. “Algorithms capture the knowledge that turns raw data into valuable insight, and CIOs must use them to drive speed, scale and consistency in their digital business journey,” said Prentice. “Applied to huge datasets, algorithms allow highly accurate, personalized offerings, which in turn can drive revenue and differentiation.”
Algorithms are already well established in many industries. In human resources, in order to evaluate candidates’ suitability for specific roles, algorithms are used to match talent very quickly to the work that needs to be done within an organization. Eventually, algorithms will replace both manual processing of CVs by recruiters and automated CV ranking based on word matching. In other industries, organizations are making advanced algorithmic models available via open marketplaces which ultimately facilitate access to algorithms that are beyond the development reach of many organizations. As per the release, the five major platforms of digital business are Information systems platform, Customer experience platform, Data and analytics platform, Internet of Things (IoT) platform and the Ecosystems platform.
Prentice further said, “CIOs must build their digital business technology platform to support the development of digital business. At a minimum, the IT organization needs to be able to design the ‘big picture’ of all the new information and technology capabilities required to support digital business. The CIO can then work with the rest of the organization to define who — if not IT — will build, fund, support and own these major components. You can’t afford to stay on the sidelines of this digital and algorithmic business wave. Define your algorithm, AI, ecosystem and digital platform strategies now.”
