Foreword by R "Ray" Wang
In the last century, we saw clear distinctions between the physical and the digital world. We have chipped away at these barriers with technologies in networking, unified communications, cloud, Big Data and analytics, social, mobile and of course the Internet of Things. The result—a confluence of traditionally inanimate objects tied to sensors and analytical ecosystems. In fact, every device enabled by a sensor and tied to a network takes us closer to the convergence of atoms and bits.
This transformation is analogous to the early days of social networking through peer-to-peer networks. As more people entered the networks, each individual gained from the collective insights from all the clicks, likes, transactions and interactions. The network effects create a massive treasure trove of data that ties back to information. The information piped into business processes and customer journeys provides insights that can be surfaced. Each of these patterns surfaced and questions answered creates additional intelligence to ultimately drive decisions. We can now take data and democratize decisions through these networks of people.
In parallel, the Internet of Things has occurred at geometrical scale. Constellation Research, a Silicon Valley-based analyst firm, predicts over 80 billion sensors powering Things by 2020. Consequently, objects will talk to each other and gain network effects. The intersection of where objects engage with humans drives an unlimited set of possibilities for customer experience, smarter machines, healthcare, trading networks, fraud detection, transportation and other use cases to be discovered.
Thingalytics is happening now. Market leaders and fast followers are in the midst of this digital transformation. As organizations transform and create new business models and cultures with digital technologies a distinct set of winners and losers will emerge. Success will require organizations to invest in new technologies that not only complement, but also abstract older technologies. These technologies must deliver on mass personalization at scale and deliver in the right time context and real-time speed. Context- and intention-driven design are expected and not a luxury.
Digital Darwinism is unkind to those who wait. This brave new world of smarter machines, and the humans who engage them, will change every industry and every market segment. Today’s digital divide serves as a precursor to the impact of Thingalytics. The top three competitors in every mature market segment control 43 to 71 percent of the market share and 53 to 77 percent of the profits. Thingalytics represents this next evolution of digital disruption. Savvy leaders should take note on how to disrupt first or face disruption.
R “Ray” Wang (@rwang0)
Principal Analyst and Founder, Constellation Research, Inc.
About R "Ray" WangR “Ray” Wang is the Principal Analyst, Founder, and Chairman of Silicon Valley based Constellation Research, Inc.
He is also the author of the popular business strategy and technology blog “A Software Insider’s Point of View.”
With viewership in the 10’s of millions of page views per year, his blog provides insight into how disruptive technologies, and new business models such as digital transformation, impact brands, enterprises, and organizations.
Wang has held executive roles in product, marketing, strategy, and consulting at companies such as Forrester Research, Oracle, PeopleSoft, Deloitte, Ernst & Young, and Johns Hopkins Hospital.
He is a prominent and dynamic keynote speaker and research analyst working with clients on digital, innovation, business model design, engagement strategies, customer experience, matrix commerce, and big data.
His Silicon Valley research firm, Constellation Research, Inc., advises Global 2000 companies on the future, business strategy, and disruptive technology adoption. Ray is a regular contributor to Harvard Business Review and well quoted in The Wall Street Journal, Forbes, Bloomberg, CNBC TV, Reuters, IDG News Service, and other global media outlets. Wang has thrice won the prestigious Institute of Industry Analyst Relations (IIAR) Analyst of the Year Award.
Wang’s new book Disrupting Digital Business will be published by Harvard Business Review Press and will be globally available in the Spring of 2015.
Thingalytics: Smart Big Data Analytics for the Internet of Things. No part of this website may be reproduced, stored in a retrieval system or transmitted, in any form or by any means — electronic, mechanical, photocopying, recording or otherwise — without prior written permission from the author, except for the inclusion of brief quotations in a review.