2015: The Year of the Adaptive Digital Enterprise – Part 1

2015: The Year of the Adaptive Digital Enterprise – Part 1
The Internet of Things will continue to be the most significant digitization trend in 2015
Already, 2015 has set the bar high for innovative products and digital business opportunities. Last week, the Consumer Electronic Show (CES) 2015 showcased many new and exciting consumer products. The event featured a number of innovative demos highlighting the Internet of Things (IoT or Internet of Everything, M2M, Industrial Internet) in an attempt to satisfy the pervasive buzz of the show – and the audience was not disappointed! Brian Krzanich, Intel’s CEO, delivered a compelling keynote that displayed the up and coming capabilities in IoT summarized on this YouTube video. One illustration that caught my attention was the drone demo. The demo displays various innovative attributes that proves just how far IoT has come, and how much farther it can go.
 
The drones continuously integrate contextual information, on-board sensors and intelligence (processing unit) in order to see, think, and adapt! The drone navigates by applying intelligent algorithms all the while using its digital cameras, thinking, and leveraging its geospatial sensors. These capabilities allow the drone to successfully travel from Point A to Point B while avoiding all obstructions and collisions. One of the most captivating attributes is its ability to modify its route by sensing the surrounding environment and moving left, right, up and down to fly around people, walls, doors, buildings, trees - anything!
 
Drones are an example of the Internet of Things
 
Drones are one example of the Internet of Things. IoT will continue to be the most significant digitization trend in 2015. The IoT digital transformation will happen through the digitization of intelligent processes within innovative and strategic applications that continuously adapt to achieve business outcomes. As in the example above, the drone needed to navigate from Point A to Point B to achieve its objective and in doing so, had to continuously adapt its process toward its objective. In real-world strategic applications, there will be journeys – some planned and expected, and others completely unplanned, unexpected, and ad-hoc. 
 
Think of these journeys as processes that are dynamic. Some tasks or paths will be planned while other “obstacles” or opportunities will just happen – unplanned, unexpected, and ad-hoc. The speed and agility of adaptation will make or break enterprises that are attempting to keep pace with their business objectives:
 
  • Contextual and Personalized Customer Journeys: Things have journeys, just like the drone, and so do humans. We become engaged with the adaptive digital enterprise for support, marketing, or sales through a plethora of channels including web, social media, and perhaps most importantly, mobile devices (i.e. smart phones and tablets). Different customers need to be treated differently, considering the context: who they are, where they are, the history of their interactions, how they express themselves on different social channels and even how other customers of similar attributes are behaving. Context is reflected in the prioritization of the decisions using analytics – which I cover next. There are also new and even compelling channels leveraging IoT. For example, the connected vehicle technologies featured at the recent 2015 Detroit Auto Show clearly illustrates the emergence of the Connected Car as a viable channel for customer interactions – especially in marketing and service.
  • Big Data and Real-Time Analytics for Decisioning: Customer interactions, transactions, as well as Things through connected homes, connected vehicles, connected cities, and industries will increasingly generate enormous amounts of data – Big Data. Having a lot of data does not mean we are getting smarter or making better decisions. Even as far back as 1998, E.O. Wilson said quite elegantly, “We are drowning in information, while starving for wisdom.” We need wisdom in order to make both better decisions and more automated decisions for customers and Things. In 2015, strategic applications for optimizing customer experience as well as strategic applications involving processes with People (Customers) and Things (Process of Everything) will become increasingly intelligent and adaptive. All analytics categories (descriptive, predictive, and prescriptive) need to be used for adaptability. This adaptability is realized by prioritizing intelligently automated decisions for the Customers and Things – in the context of digital processes that are aligned to the digital enterprise’s measurable performance objectives.
 
Thus, decision management becomes the secret “wisdom” ingredient for adaptive digital enterprises. This can prioritize actions that alleviate obstacles or optimize opportunities for either customers (e.g. potential of churn, upsell offer) or Things (e.g. avoid obstacles, change temperature, etc.).

In Build for Change: Revolutionizing Customer Engagement through Continuous Digital Innovation, Pegasystems Founder & CEO Alan Trefler shares his insight on what organizations can do to serve the next generation of customers and survive the pending "Customerpocalypse".