capioIT March Newsletter – Was 2006 equal to 1962 for the digital era, technology and referees and why compliance, regulatory and consumer environments matter for digital


What’s News….

Was 2006 equal to 1962 for the digital era, technology and referees and why compliance, regulatory and consumer environments matter for digital

Clearly the global economy is being transformed by the Digital era of commerce. New market opportunities, synergies, economic systems and more are being created and redefined at what is frankly an unprecedented rate.

Traditionally (if the digital world is mature enough to use the word), the focus on Digital is orientated around Social Media (or security) (S), Mobility (M) Analytics (A) and Cloud Computing (C). Whilst these are all critical for the success of any digital investment it is a narrow definition of digital created by technology biased stakeholders. The non-technology based elements that are missing are governance and consumer or stakeholder behaviour. These are as critical the the success or failure of any digital investment. Just ask Uber, airbnb and any number of others who failed to understand the role of a regulatory environment that can constrain innovation and a consumer response that can work for you or against you.

In the second half of 2014, a significant amount of capioIT time was spent focused on the compliance and regulatory aspects of Digital investments for the accounting sector.  The professional services industry is being pressured from a regulatory and compliance point of view as well as the never ending disruption of SMAC. This clearly affects the ability to respond to client mobility requirements. Typically legislation is not keeping up with enough aspects of digital, mobility, and identity let alone cloud requirements. The broad and loosely defined participants in the digital Economy must take a more structured approach to regulatory and compliance issues. Failure to do so will result in the investments repeatedly disappointing. It is a significant opportunity for the often disparate silos of the organisation to work with each other as well as in their industry.

1962 was a massive year in retail. Amazingly Target, Walmart and Kmart were all established in the US in 1962  as the post war consumer and suburban boom accelerated a shift in retail and spending patterns.  Technology has not had a year quite like that, though the number of fundamentally ground changing organisations established in the past 10 years. In 2006, AWS, Twitter and Wikileaks were all formed. Whilst not a retail triple play as happened in 1962, all have been disruptive and transforming. Each year will continue to produce such dramatic changes as the shift towards digital accelerates.

A lot is made of the state of the US healthcare market and the fundamental technology issues that drive it. Technology cannot fix the culture. The often cited fact that the average US 65 year old has 8 prescription medicines is   Fact that avg. US 65 yr old takes 8 prescription drugs highlights depth of healthcare issues  will require a fully integrated solution and approach.

Unfortunately the narrow and lazy definition, hence the focus on Digital is orientated around Social Media (S), Mobility (M) Analytics (A) and Cloud Computing (C). Whilst these are all critical for the success of any digital investment, this is such a limiting approach. Clearly there is more to it. The most often cited extra SMAC variant is of course security. This is Omni present, the dollars and scale around requirements of identity management alone is boggling particularly with growth companies, the expansion  of multiple devices and more loosely defined but integrated business ecosystems.

Thanks for taking the time to continue to read the newsletter. We have linked to some of our key content for the month. As always, please let us know if there is any way we can support you and your business requirements, and please provide us with feedback on the newsletter to Phil Hassey.

 Short insights

  • The subsequent investments and focus on cloud proves that SoftLayer was the best $2B that IBM has spent. Now it faces the not so simple task of execution to expand this investment.
  • Post EDS acquisition in 2008, HP Services revenue was $39B. Last 4 quarters HP services revenue is  /- $30B. Splitting HP is a long way from being the full cure for HP issues.
  • If you have the wrong information from the wrong sources, you will alienate customers and maximise poor outcomes – regardless of big data investments.
  • According to Airbus the largest issue in plane turnaround is maintenance – (clearly not cleaning or loading catering for most airlines). Technology will drive improvements in turnaround time and create an as a service ecosystem for airlines.
  • China announced greater regulations for internet users. Clearly it limits social engagement when the biggest brother is watching.
  • Digital is impacting every profession. Professional services such as accountants and lawyers are amongst the most transformed.
  • Uber and AirBNB issues that are faced with expansion highlights that the digital economy overlooks regulatory and legislative environments at its own risk.
  • The eBay, HP and Symantec proposed breakups highlight how hard tech sector mergers are to keep together. At the same time CSC is rumoured yet again to be a potential split candidate.
  • Google is valued more as an individual firm than the Russian stock exchange.

About capioIT - Phil Hassey

capioIT is an advisory firm focused on helping organisations to understand emerging technology in emerging markets. CEO Phil Hassey established the company in 2010
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