The Impact Of Disruptive Trends On The D!conomy

Alessandro Porro, VP of international sales at software firm Ipswitch, urges companies to prevent disruptive trends from destabilising their networks

The digital economy formed the key theme at this year’s CeBIT. The d!conomy, as it was referred to at the show, is a fundamental shift in the way business is carried out. From a technological standpoint, digital transformation of the world economy is a natural fallout of several recent major trends such as the Internet of Things (IoT), Big Data and Cloud.

From a business standpoint, an economy based on digital technologies means a shift in the old interdependencies and value chains. In this world, digital technologies are actually driving and redefining old businesses. The technology sector is sometimes too quick to proclaim any and every new trend a “driver for business”. However, with the d!conomy the claim justified. It is the most convincing recent example of technology as a business transformer.

Exciting achievements

By innovating processes, some of the most traditional companies are managing exciting achievements. Take for instance the colour-matching technology developed by the German Fashion Institute (DMI) that is enabling the textiles industry to replicate exact shades by sending a code from the designer to the factory, rather than sending fabric swatches all the way around the world. Exact matches are made and communicated in an instant when previously sending swatches for matching took days or weeks.

IoT washing machineThere are so many upsides to digital transformation for businesses as well as other organisations, like local and national governments, hospitals and many other civic services. The possibilities are dizzying. Gartner has predicted that this year the number of connected things will reach 4.9 billion while this figure will jump to 25 billion by 2020. That is to say, we know a big surge of connected things is coming. Piece by piece, the world we live in is being digitised, but when sweeping changes like this take place, what will happen to those who wait?

Early adopters may evangelise about the benefits of going digital but many organisations are taking a “wait and see” approach. Whatever the organisation’s strategic plans regarding digitisation, lack of preparation will almost certainly result in a drop in productivity, efficiency and innovation.

Here is where we encounter a potential problem. We all want technology to be an enabler, but if we don’t plan carefully enough it could actually become a business inhibitor? Every day I speak to people responsible for networks in their public or private sector organisations who all admit some apprehension about this new trend.

Let’s take a look at some big trends and how they will affect the network.

Invisible forces

The advent of tiny computers with enormous processing power, such as the Intel Curie Module showcased earlier this year, create headaches for network administrators, IT managers and other IT professionals. Aimed at the wearables market, Intel Curie can be embedded in a variety of everyday objects, e.g. glasses, watches, clothing and jewelry, all of which can connect to the Internet, meaning the corporate network feels the strain from seemingly invisible forces.

Meanwhile, there is change ahead for the network’s access points. Really fast Wi-Fi is on its way with companies like D-link and its new line of super-fast 802.11ac routers. Examined at the macro level, this will prove valuable at advancing the Internet of Things as more and more devices embedded in everyday objects will be able to transmit data-heavy files. For IT managers, this means major headaches as multiple access points and more information will make the whole system slower and more vulnerable.

fitbitInformation overload

Take as an example increasingly popular fitness aids such as Fitbit. In the latest version, Fitbit Charge HR can actually monitor your heart rate. Keeping track of all your training data is becoming easy, fun and a way of life. While this is a consumer gadget intended for personal use, the medical applications of such monitoring devices are hugely transformative in an age where we live and work longer and chronic conditions are on the rise. In the healthcare context, the devices can measure any number of things, from blood sugar to brain activity. They enable the patient to be monitored while maintaining his / her regular schedule, whether at home or at work, rather than requiring costly and inconvenient hospital trips. This helps to transform the notion of the “patient” as someone who is restricted from working or going about his/her normal life. Those same “patients” can also be highly productive employees, managing their workload as their healthcare monitoring device manages their condition. Great, isn’t it?

Yes…so long as the IT department is prepared for people sending increasing
amounts of data from an increasing array of devices around the corporate network. For instance, the latest advances in modeling, gaming and graphics programs represent a legitimate, exciting opportunity, or a big potential blockage slowing down network activity. The additional pressures on bandwidth will create a ripple effect on the network with multiple points of access and vulnerability.

Guaranteeing privacy will be harder

Tim Cook recently said: “2015 will be the year of Apple Pay”. Reflecting on the success of Apple Pay at the company’s Q1 2015 earning call, Cook unveiled that it already has 750 banks and credit unions as partners. It seems we are only a small step away from mobile payments becoming as ubiquitous as iPhones. There are many other companies working hard to simplify the way we pay for things. Smart wallet companies like Wocket condense a person’s credit and debit cards into a single plastic card. Cash is in decline, contactless payments are on the rise. Similarly, many applications already keep your passwords and other sensitive information in one place.

Increasingly our personal data are being condensed and transmitted in ways that were once unimaginable. This runs a real security risk with the potential for customer data to be shared in placed it shouldn’t. The challenge for IT departments is going to be ensuring data sharing remains safe…and compliant.

Group_Galaxy Gear 2 NeoAlways ‘on’ technologies

Much has been predicted about the growth of wearables and 2015 will be an important year for the sector. Apple has announced its intent to join the increasing number of major manufacturers producing smart watches. Samsung unveiled the Gear S earlier this year, which combines the functionality of a phone with the design of a watch. Here is a device that looks like a watch but has a SIM card, makes calls and connects to the Internet. Small, portable, easy to use – smart watches and other wearable tech encourage users to keep them on all the time no matter where they are. This does not just mean a drain on the organisation’s resources. What it also signals is the line between personal and business use becoming blurred, making it harder to retain control of data. We’ve seen it happen with smart phones and tablets and now new, previously personal objects will be helping themselves to the corporate network’s resources. In their excitement to use wearable gadgets, employees will need to be educated about their compliance and data security implications.

The tide of digitisation is coming. For the IT mangers, network administrators and other IT professionals, preparing for the sweeping changes in how people work and play will be a challenge…but not an insurmountable one. As CeBIT showed, the d!conomy has so many advantages for us all. Putting in place a networking plan now is the best way to prepare for the future.

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