The lines between the digital and physical world continue to blur creating new opportunities for digital businesses. Look for the digital world to be an increasingly detailed reflection of the physical world and the digital world to appear as part of the physical world creating fertile ground for new business models and digitally enabled ecosystems.
Trend No. 4: Virtual and augmented reality
Virtual reality (VR) and augmented reality (AR) transform the way individuals interact with each other and with software systems creating an immersive environment. For example, VR can be used for training scenarios and remote experiences. AR, which enables a blending of the real and virtual worlds, means businesses can overlay graphics onto real-world objects, such as hidden wires on the image of a wall. Immersive experiences with AR and VR are reaching tipping points in terms of price and capability but will not replace other interface models. Over time AR and VR expand beyond visual immersion to include all human senses. Enterprises should look for targeted applications of VR and AR through 2020.
Trend No. 5: Digital twin
Within three to five years, billions of things will be represented by digital twins, a dynamic software model of a physical thing or system. Using physics data on how the components of a thing operate and respond to the environment as well as data provided by sensors in the physical world, a digital twin can be used to analyze and simulate real world conditions, responds to changes, improve operations and add value. Digital twins function as proxies for the combination of skilled individuals (e.g., technicians) and traditional monitoring devices and controls (e.g., pressure gauges). Their proliferation will require a cultural change, as those who understand the maintenance of real-world things collaborate with data scientists and IT professionals. Digital twins of physical assets combined with digital representations of facilities and environments as well as people, businesses and processes will enable an increasingly detailed digital representation of the real world for simulation, analysis and control.
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Trend No. 6: Blockchain
Blockchain is a type of distributed ledger in which value exchange transactions (in bitcoin or other token) are sequentially grouped into blocks. Blockchain and distributed-ledger concepts are gaining traction because they hold the promise of transforming industry operating models in industries such as music distribution, identify verification and title registry. They promise a model to add trust to untrusted environments and reduce business friction by providing transparent access to the information in the chain. While there is a great deal of interest the majority of blockchain initiatives are in alpha or beta phases and significant technology challenges exist.
The mesh refers to the dynamic connection of people, processes, things and services supporting intelligent digital ecosystems. As the mesh evolves, the user experience fundamentally changes and the supporting technology and security architectures and platforms must change as well.
Trend No. 7: Conversational systems
Conversational systems can range from simple informal, bidirectional text or voice conversations such as an answer to “What time is it?” to more complex interactions such as collecting oral testimony from crime witnesses to generate a sketch of a suspect. Conversational systems shift from a model where people adapt to computers to one where the computer “hears” and adapts to a person’s desired outcome.
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Conversational systems do not use text/voice as the exclusive interface but enable people and machines to use multiple modalities (e.g., sight, sound, tactile, etc.) to communicate across the digital device mesh (e.g., sensors, appliances, IoT systems).
Trend No. 8: Mesh app and service architecture
The intelligent digital mesh will require changes to the architecture, technology and tools used to develop solutions. The mesh app and service architecture (MASA) is a multichannel solution architecture that leverages cloud and serverless computing, containers and microservices as well as APIs and events to deliver modular, flexible and dynamic solutions. Solutions ultimately support multiple users in multiple roles using multiple devices and communicating over multiple networks. However, MASA is a long term architectural shift that requires significant changes to development tooling and best practices.
Trend No. 9: Digital technology platforms
Digital technology platforms are the building blocks for a digital business and are necessary to break into digital. Every organization will have some mix of five digital technology platforms: Information systems, customer experience, analytics and intelligence, the Internet of Things and business ecosystems. In particular new platforms and services for IoT, AI and conversational systems will be a key focus through 2020. Companies should identify how industry platforms will evolve and plan ways to evolve their platforms to meet the challenges of digital business.
Trend No. 10: Adaptive security architecture
The evolution of the intelligent digital mesh and digital technology platforms and application architectures means that security has to become fluid and adaptive. Security in the IoT environment is particularly challenging. Security teams need to work with application, solution and enterprise architects to consider security early in the design of applications or IoT solutions. Multilayered security and use of user and entity behavior analytics will become a requirement for virtually every enterprise.