Two key disruptions to how goods and services are sold and purchased are forcing traditional businesses to change their operating model to adapt. First is the rise of software and service-oriented businesses that leverage the internet and cloud, and are thus far more agile than many brick and mortar competitors. The second disruption is on the customer side. Consumers recognize that a service economy is on the upswing and that they can transact with vendors in a manner of their choosing. For a perfect example, look no further than Airbnb, the hospitality startup with valuation of more than $25 billion in just seven years of doing business. By contrast, Marriott has been in business since 1927 and has a valuation of $25 billion.
So, what do traditional businesses need to do to adapt and compete in this digital economy? A key imperative is to look to IT as the experts for innovation for driving a competitive advantage, and this is the basis for what Hu Yoshida, Chief Technology Officer, Hitachi Data Systems, sees as the IT trends that matter for 2016 in his latest “Hu’s Place” blog.
Yoshida details 10 trends he believes will lead to a major transformation in IT and the vendor community, centered on a greater focus on application and analytics, new infrastructure technologies that include greater adoption of in-memory computing with developments such as SAP S/4HANA, and IT leadership driving innovation by taking a more proactive role in leading business through the transformation driven by social, mobile, analytics, and cloud.