How IT is remaking the world

How IT is remaking the world

Summary: McKinsey report outlines how social, mobile, analytics and cloud has become the new 'plastics.'

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TOPICS: IT Priorities
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There are many forces reshaping the way we work and live these days, but they all have one thing in common: They are all the result of the transformative effect of IT.

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(Image: Joe McKendrick/ZDNet)

Such forces of change have recently been documented by Michael Chui and a team of co-authors from McKinsey Global Institute, who point to the way IT is transforming the world.

Irving Wladawsky-Berger provided his own take on the report, observing that "SMAC — Social, Mobile, Analytics, and Cloud — has become the new plastics, capturing the future of IT in one word, or rather, one acronym. Just about everyone agrees that these are foundational technologies, like the internet 20 years ago, that every business must embrace."

Realizing anything as a service

Enterprises are participating "on both sides of the anything-as-service phenomenon — as consumers of services and as providers," the report says. "They should also consider how services can help them reduce capital assets and deploy money in other ways. Leaders should be thinking about creative ways to monetize their assets. At the same time, companies need to evolve their business models to prepare for more customers turning from buyers into renters."

The internet of all things

"Automated closed-loop systems that can carry out tasks independently based on incoming data, and which can be used to manage systems such as smart electric grids, are likely to be adopted more widely. They may be used to manage machines, processes, and even the health of human beings."

Big data, advanced analytics

"To make the most of the big data opportunity, companies will also have to understand data's role in decision making today, and what it could be in the future. They will have to learn how to use experimentation to inform their business decisions."

Automation of knowledge work

This creates many opportunities "to automate many tasks, redesign jobs, and do things never before possible even with the best human workforces. However, this will involve significant investment in technology as well as a change in organizational culture. Business leaders will have to rethink the way they structure their organizations when some knowledge work tasks can be automated."

Integrated digital/physical experiences

Enterprises "should rethink their strategies for incorporating new digital platforms (for example, smartphones and tablets) into their product design, the media they depend on to advertise, and the ways in which they collect customer feedback. They also have the chance to apply these tools to improve their own productivity, and re-imagine the physical experiences of employees."'

The social matrix

Enterprises "have unprecedented opportunities to improve the way their employees solve problems, collaborate, and interact with customers". Employees "can also re-imagine the process of solving difficult problems and embrace the opportunity to collaborate with the brightest minds outside their organizations."

McKinsey's entire list of 10 IT-driven shifts is available in a new whitepaper.

Topic: IT Priorities

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3 comments
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  • Is classic ERP software ready?

    I work in the ERP world mostly with SMEA, have been for 15+ years. Whilst agree with everything you have written, I am not certain the customers, nor the suppliers can make the jumps you outline. Its hard enough for us to deploy Bus Intel (denormalised large dbs etc) yet alone get a C level person to address the info. that it brings.
    Another observation from the trenches is, integration. Few customers can cope with disparate software, which is why they buy monolithic chuncks so typical of ERP. To offer separate software under your headings will cause decision paralysis. We, the vendors, need to offer a seamless (well one that looks seamless) package to the typical industrial 1 to 5 billion companty I deal with.
    sonnet37
  • Interesting ...

    ... that the most obvious use of IT in removing or marginalising inefficient and parasitic industries like:
    - consumer banking
    - media distribution
    - subscription software e.g. MSFT OFFICE and ADOBE CC

    One would have thought that a cloud architecture which maximised the efficient use of CPU cycles (my 4 core processor is probably only employed 1% of the time), made huge savings in power consumption, run against best-practice security and installation policies by experts ... over a communications network that I paid for separately ... would result in a decimation of my IT costs (from the Roman decimation = divide by 10).

    And why, given all the beauteous architecture and advances has my privacy plummeted to an all time low?

    The remake, as Nusca points out in:
    http://www.zdnet.com/facebooks-strategy-buy-the-best-copy-the-rest-7000017152/
    is akin to a prison construction led by people who steal.
    jacksonjohn
  • Why pay big bucks for advice from a company like McKinsey...

    Beats me...
    Just for them to say the obvious?
    Nothing new, nothing original...
    McKinsey are nothing but followers...
    rueiowt86