technology trendsidg.bg/idgevents/idgevents/2016/1124130528-1_9.10-9.30...—value realization it...

Technology trends

Capital Fort

17 November 2016

Without data you’re just

another person with an

opinion.”

— W. Edwards Deming“

3© 2016 KPMG Bulgaria OOD, a Bulgarian limited liability company and a member firm of the KPMG network of independent member f irms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity.

All rights reserved.

Qx "To what extent is your company investing in each of the following technologies?"

Base: 580 business and IT decision-makers at technology companies, 580 at media companies , and 580 at telecommunications companies

Source: A commissioned study conducted by Forrester Consulting on behalf of KPMG, January 2016

Tangible or strategic, significant disruptive tech investment

Total Technology Media Telecommunications

Cloud 64% 60% 68% 65%

Mobile 63% 58% 69% 64%

Data and analytics 59% 61% 60% 58%

Marketing platforms 59% 59% 58% 59%

Internet of Things 57% 61% 57% 55%

Digital payments and currency 56% 54% 59% 56%

On-demand marketplace platforms 56% 54% 58% 54%

Social media 56% 51% 61% 56%

Artificial intelligence/cognitive

computing 53% 53% 54% 51%

Wearable devices 52% 51% 55% 50%

Virtual reality/augmented reality 47% 48% 48% 46%

3D printing 45% 45% 50% 40%

Robotics 40% 47% 37% 33%



Qx "To what do you attribute the negative impact of disruptive technologies on your organization’s performance?"

29%

32%

38%

38%

46%

49%

61%

We only invest in proven technologies, whichleaves us behind the curve

We can’t invest quickly enough to keep up

We saw the new technology trend coming too late

Disruptive technologies are undermining our company’s business model

Our competitors are leveraging disruptivetechnologies to their advantage

New competitors have emerged from within ourindustry as a result of using disruptive technologies

Disruptive technologies brought new competitorsinto our industry from other industries

Base: 99 business and IT decision-makers at technology companies where disruptive technologies are having a somewhat or significant negative impact on their organization

Source: A commissioned study conducted by Forrester Consulting on behalf of KPMG, January 2016

There is an impact

© 2016 KPMG Bulgaria OOD, a Bulgarian limited liability company and a member firm of the KPMG network of independent member f irms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity.


Organizations are exploring and implementing a wide range of business and IT cloud use cases

Dev/Test/

Training

E-mail and

Collaboration

IT Separation

DC/DR

Rationalization

D&A

IoT

Application

Migration to SaaS

Digital/Mobile

Enablement

DevOps

Enablement

Application Migration

to I/PaaS (SharePoint,

SAP, etc.)

Industry

(Media/CDN,

etc.)

High-performance

Computing



Organizations need to manage the fundamental changes introduced by cloud and the challenges they pose

Business — Cloud value business case

— New competition

— Business readiness for innovation

— Cloud solutions business governance

Risk — Limited transparency into provider practices

— Additional controls over third parties

— Information protection

— Identity and access management

— Records management and retention

— Regulation interpretation and compliance

Finance — Transition and integration costs

— Transparency of IT spend

— IT funding model

— Value realization

IT — Disintermediation of IT

— IT operating model, resources, and skills

— Legacy infrastructure and operations

— Integration with existing environments

— Hybrid cloud model

— Rapidly evolving market



Data and Analytics (D&A)

holds the power to

unlock untold value. But

first you need to trust

what it is telling you.”

“Trust (noun) \’trəst\— assured reliance on the character, ability, strength, or truth of

someone or something

Merriam-Webster



Why trust mattersFour reasons why we need to be talking about trusted analytics:

1. Analytics are becoming increasingly integral to business decisions

2. Lives now depend on analytics

3. ‘Black boxes’ are hard to trust

4. Using D&A increases reputational risk

One of the challenges is that

some of these newer techniques

are, by definition, black boxes.

You don’t know how it works, you

just think it works and you are

supposed to trust that, but you

just don’t know if it’s doing the

right thing.”

— Sanjay Krishnamurthi

Chief Architect, Microsoft Corporation,

a KPMG alliance partner

“



A trust gap emergesFew executives are confident in the insights they are receiving from their D&A.

How confident are you in the insights gained from…



A cycle of mistrust

Trust is strongest at the beginning of

the cycle (at the data sourcing stage),

but falls apart when it comes to

implementation and the measurement

of its ultimate effectiveness. This

means that organizations are unable

to attribute the effectiveness of D&A

to business outcomes which, in turn,

creates a cycle of mistrust that

reverberates down into future

analytical investments and their

perceived returns.”

“



Four anchors of trust in D&A Organizations must take a systemic approach to trust, founded on four key anchors:

Quality

Are the fundamental building

blocks good enough?

Effectiveness

Do the analytics work as

intended?

Integrity

Is the D&A being used in an

acceptable way?

Resilience

Are long-term operations

optimized?

VR, AR, MR



A broad range of

developments including:

– 1966 flight simulator

– 1980 stereo vision glasses

– 1990 virtual games

– 1994 SEGA motion

simulator

– 1995 Nintendo Virtual

Boy

1935 2015

A science

fiction story

predicts VR

Oculus Rift,

HTC Vive and

Samsung

Gear launched

2017 2018 2019 2020 2021Present

Following the

success of

Pokémon Go, more

smartphone based

AR games go

mainstream.

Use of VR starts

picking up in

businesses, as the

awareness grows and

data/security concerns

are mitigated.

Businesses become

comfortable with

VR products and

begin to appreciate

the enhanced

possibilities provided

by AR platforms.

Early AR technologies

developed by

companies such as

Microsoft and Magic

Leap are making

headsets user

friendly enough to

appeal to the masses.

VR gaming goes

mainstream as the

adoption of Oculus

Rift and HTV Vive

increases and Sony

PlayStation VR is

launched.

As the technology

develops, VR centers

gradually become

more popular,

demonstrating

AR and VR's potential

to broader audiences.

VR becomes a

mass market

product as

techonolgy

companies improve

social engagement.

‘x’R trends



‘x’R is real

VR for mass market

VR for advanced gaming

AR for massmarket

AR and VR centers

VR for businesses

AR for business

Co

nsu

mers

Bu

sin

esses

User friendly and affordable virtual reality devices: to improve

home entertainment experience.

High tech, expensive gear to redefine gaming experience:

proving full immersion into VR.

User-friendly, convenient, ‘cool’ and inexpensive technology:

initially smartphones, later headsets, eye implants, etc.

Sophisticated AR and VR centers (cinemas, theme parks, etc.)

that blend the real world with the digital: placing participants into

hyper-reality experiences.

Products similar to ‘VR for mass market’ but with more

emphasis on safety and security: applicable across many

industries.

Products similar to ‘AR for mass market’ but with less emphasis on

passing the ‘cool' test, and more focus on advanced functionality.

Applicable across most industries.

Increases gradually but only

reaches its true potential once social

interaction is enabled.

Fast growing, but limited to niche

(gaming), gradually increasing as price

becomes more affordable.

High potential via smartphones. Limited

uptake of AR headsets unless they are

considered 'cool.'

Launched in a matter of months (similar

to ‘The Void’ in the US) but staying niche

over the next 5 years.

High potential but slow adoption rates as

overall awareness grows.

High potential but delayed uptake

as the technology is not there yet.

xR product segments Expected developments

Thank you!

Nikola Nyagolov

Director, Advisory

[email protected]

+359 2 9697 320

kpmg.com/trust

kpmg.com/data

kpmg.com/strategy

kpmg.com/app

kpmg.com/TMTbarometer

mailto:[email protected]

The information contained herein is of a general nature and is not intended to address the circumstances of any particular

individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such

information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on

such information without appropriate professional advice after a thorough examination of the particular situation.

kpmg.com/bg

© 2016 KPMG Bulgaria OOD, a Bulgarian limited liability company and a member firm of the KPMG network of independent

member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights reserved.

The KPMG name and logo are registered trademarks or trademarks of KPMG International.

https://www.linkedin.com/company/kpmg-bulgaria

technology trendsidg.bg/idgevents/idgevents/2016/1124130528-1_9.10-9.30...—value realization it...

Documents