The most important digital trends for C-level business leaders to consider in 2018 relate to digital transformation, artificial intelligence (AI), internet of things (IoT), General Data Protection Regulation (GDPR) compliance and cybersecurity. Read on for insights and predictions about why these topics will matter so much to C-suites in 2018.
Prediction 1: Digital Transformation—All Aboard!
As one of the armaments of business innovation and disruption, digital transformation has become such a buzzword that it turns people off. But in 2018, fates likely will be sealed. A company has either transformed, is on its way to doing so, is actively planning its transformation or has decided not to get on that train. That last group won’t be invited to the AI party and are making themselves targets for disruption. According to Forrester, more than 60 percent of executives believe they are behind in their digital transformation. That’s OK, as long as they keep moving. CEOs need to fund this expensive endeavor from the outset and not try to make it pay for itself. Nickel-and-diming digital transformation could be the last mistake a CEO makes.
Prediction 2: By 2020, AI Will Be a Game-Changer
Every so often a technology comes along that has the potential to completely change everything around it. The last such technology was cloud computing. And like cloud, which had several precursors, AI has been around for a long time. AI and machine learning/deep learning are catching up to the initial promise, and that will become more evident as the next few years unfold.
The best options for near-term success with AI are business intelligence and decision support. Some enterprises are using machine learning/deep learning to plumb big data—especially unstructured data such as text and video—to drive new forms of data analytics.
Even so, many companies will strike out with AI/machine learning largely because it’s no paint-by-numbers endeavor. Companies need talented people who know how to harness this technology, but those people are scarce and don’t come cheap. Companies need businesspeople actively making sure that the technology serves the business need, potentially in charge of the project. And companies need the right data. An AI-based decision-support system, a common application of the technology, is fueled by quality data. Do you have it? This HBR.org article, “A Survey of 3,000 Executives Reveals How Businesses Succeed with AI,” will help get your organization oriented toward AI success.
AI is likely to be a largely experimental for the next year to two years as organizations give it a shakedown cruise. But early adopters have had some success, and many see potential for AI to deliver revenue growth.
Ultimately, AI and machine learning/deep learning will be looked upon as major advances with far-reaching effects, much like cloud computing and the internet. In 2018, it may not seem that way as enterprises experimenting with it feel the pain of separating the hype from the reality, adjusting business processes to make it work, cultural resistance from tech teams and a lack of available talent. Stick with it to reap eventual rewards.
Prediction 3: IoT—A Thousand Points of Entry?
Enterprise implementations of IoT functionality are very popular these days. But security vulnerabilities and issues are both inherent and legion with this technology. It simply hasn’t been thought through. In 2018, the disregard for IoT security solutions will come home to roost for several major corporations. Until the security issues are resolved, IoT will begin to be seen by some, at least, as a promising technology that’s not ready for prime time.
Prediction 4: The GDPR Powder Keg
By the end of 2018, some companies will be getting out of European markets, while others will look for a means of circumventing the EU’s GDPR. Still others will be scrambling to comply. And a last group will be doing what they’re doing now: taking the risk that the cost of the penalty is less than the cost of compliance. Forrester predicts that 80 percent of firms will not fully comply with GDPR. The unfortunate part is that, while a company may be able to ride out a steep fine on non-compliance, damage to its brand may be irreparable or very slow to heal.
Companies also can’t just throw money at GDPR—it probably will require new companywide policies and a shift in cultural thinking about personally identifiable data and the individuals behind them. Some companies are going to find it very difficult to make that cultural change.
Prediction 5: Cybersecurity Needs New Thinking
Customer experience and security are at odds with each other. Passwords don’t work. Biometrics aren’t completely safe. Security awareness is treated as an afterthought. Security breaches are an everyday headline. What’s it going to take to make society wake up? There is a huge need for a new type of user authentication system, as just one example. There are significant opportunities for those that can deliver new technologies, new products and new solutions. We need to think differently about cybersecurity. We need to teach it in schools. In 2018, we will hit bottom. It will become apparent to all of society that our security measures are antiquated and have no hope of meeting the rising threat from many quarters. As the digital world continues to assimilate more and more of our previous analog way of life at a rapid clip, security has trailed far behind. Cybersecurity desperately needs innovation.
