1、TECH TRENDS2023/IMAGINE TECH TRENDS,SUNRISE,LIGHT ART,HYPERSPECTRAL IMAGING,LIGHT BLUE,MULTIVERSE,4K -CHAOS 23-AR 17:22 Tech Trends 2023|2IntroductionInfo-Tech Research GroupUpon being defeated by IBMs Deep Blue computer in a multi-game chess match in 1996,reigning world-champion and highest-ranked

2、chess player in history Gary Kasparov cried foul.He accused the IBM team of cheating,saying that Deep Blue was in fact a Mechanical Turk of sorts,that humans were performing the job and not a machine.A doc-umentary,Game Over:Kasparov and the Machine,was made detailing Kasparovs accusations in 2003.B

3、ut more than a decade later,Kasparov reflected on his experience differently in his 2017 book Deep Thinking.He retracts the cheat-ing accusation and instead asserts that the mo-ment was a watershed for artificial intelligence.In choosing to not reject technologys capacity to beat him,he also embrace

4、s its potential to augment his capabilities when used as a tool.“If we feel like we are being surpassed by our own technology its because we arent pushing ourselves hard enough,arent being ambitious enough in our goals and dreams,”Kasparov writes in the book.“Instead of worrying about what machines

5、can do,we should worry more about what they still cannot do”(MIT Technol-ogy Review,2017).Technology leaders can sympathize.Like chess grandmasters,CIOs must strategize to defeat their opponents.Emerging technologies pres-ent opportunities to attack.Move your pieces the right way and you might estab

6、lish a dom-inant position to support a victory.Defending the king is a constant concern,as the compe-tition is constantly threatening to defeat you.Protecting from a volatile board state is a re-quirement.Move the right pieces in the right way and win the day.Make a mistake and you risk toppling the

7、 king.Tech leaders must be prepared to respond to a range of different scenarios in a volatile business environment.Its the role of the CIO to push the organization harder.While maintaining existing technolo-gy,they must set goals for technology to sup-port the business to move faster and perform be

8、tter.To enhance existing capabilities and create new ones.They must test the limits of what machines still cannot do.MAKE YOUR MOVELast years Tech Trends report focused on the capabilities organizations would need to com-pete in a digital economy.We are continuing that theme this year with four tren

9、ds that are focused on helping the organization deliver value faster and better.At the same time,were considering the volatility of a world dealing with several major crises simultaneously.Or-ganizations need to protect themselves from that volatility in order to thrive.So,we have three trends focus

10、ed on the risks all organiza-tions will face in the year ahead.In Tech Trends 2023,we consider how tech-nology leaders can attack opportunities while protecting the organization from the risks posed.Well consider which capabilities will help organizations respond to each trend in our CIO Priorities

11、2023 report to be published later this year.CIOs would do well to heed Kasparovs advice.If they fail to protect their organizations,cry-ing foul play wont help lessen the impacts of defeat.Better to focus instead on how to work with the machines and push harder toward achieving goals in collaboratio

12、n.CIOs need to be ambitious and ready to make their move to push their organizations ahead.METHODOLOGYThe research effort for Tech Trends 2023 is driven by our Trends and Priorities survey re-ceiving 813 total responses from IT profession-als between August 9 and September 9,2022.See our methodology

13、 section for a full demo-graphic breakdown of the survey.Each trend features a case study with an expert that is on the cutting edge of the trend,with Info-Tech conducting the interviews directly.DESIGNInfo-Techs design team created the visual elements of this report using AI-image gener-ator Midjou

14、rney.See our generative AI trend to learn more about the creative potential of this emerging technology.“Like a chess grandmaster,CIOs must play both sides of the board.Emerging technologies present opportunities to attack,while protecting from a volatile board state is a requirement.”Thinking like

15、a chess grandmasterTech Trends 2023|3Attack and ProtectInfo-Tech Research GroupAttack New OpportunitiesProtect From Volatility04 THE METAVERSE12 GENERATIVE AI21INDUSTRY-LED DATA MODELS29SUSTAINED DIGITAL PROCESSES37ESG ANALYTICS AND REPORTING46ZERO-TRUST SECURITY54RECESSION PREPARATIONA platform tha

16、t combines multiple technologies to enable social and economic activity in a digital world that is connected to the physical world.THE METAVERSE/IMAGINE THE METAVERSE.CYBERPUNK PERSON WEARING VIRTUAL REALITY 3D GLASSES LOOKING AT GLOWING SCREENS SHOWING DIFFERENT VIRTUAL WORLDS,CYBERPUNK CITY STREET

17、S AT NIGHT,DRAMAT-IC LIGHTING,EPIC COMPOSITION,UNREAL ENGINE EXTREMELY CONTRAST,SHARP LINES,VOLUMETRIC LIGHT-AR 17:22 Tech Trends 2023|5The MetaverseInfo-Tech Research GroupIn science fiction,the metaverse is envisioned as a unified and singular immersive digital platform that is separate but par-al

18、lel to the real world.For next year,value is more likely to be found in less holistic expressions of the metaverse.Info-Tech views the metaverse as best understood from a technological perspective.A convergence of mixed reality,artificial intelligence,immer-sive digital space,and real-time communica

19、tions stack together to create metaverse experiences.Depending on the use case,not all technologies may be necessary to produce value.The term“metaverse”exploded into buzzword territory in Novem-ber 2021 when Facebook CEO Mark Zuckerberg announced Facebook was renaming to Meta,making its future ambi

20、tions clear.Shortly thereafter,Microsoft used its Ig-nite conference to recast several of its product lines as metaverse technologies,including Microsoft Mesh,a mixed reality collabora-tion platform that includes 3D avatars and object models.Neither Facebook nor Microsoft explicitly defined the meta

21、verse as a concept.But their demonstrations of peo-ple interacting through digital identities in an immersive virtual world thats connected to the real world harken back to the vision of Neal Stephenson,who coined the term in his 1992 novel Snow Crash.In 2022,many technology firms adopted the term o

22、r amplified their use of the term.Builders of decentralized virtual worlds such as Decentraland and Sand-box had been talking about their“metaverse”even before Zucker-bergs announcement.Their use of the term conflates the concept with“Web3,”which describes the next generation of the internet thats b

23、uilt on blockchain.Other major vendors are relating to the term,most notably NVIDIA with its Omniverse product line,which it calls“the metaverse for engi-neers.”Ireland-based ENGAGE XR Holdings bills itself as“the pro-fessional VR platform for leading Fortune 500 companies globally,”and has clients

24、including BMW,3M,and HTC.While it continues to escape defi-nition,an effort to create open standards around the metaverse is underway.The Metaverse Standards Forum combines stan-dards organizations with indus-try players.The work is neces-sary if Stephensons vision of a truly universal metaverse is

25、to ever be realized.Today,the ear-ly metaverse is fractured across multiple different private and public platforms,with limited portability between the worlds.THE METAVERSE MADE BY MICROSOFT AND META Marketing pitches and media headlines leave IT leaders won-dering if they should be running a proof

26、of concept on VR collabo-ration in 2023 or perhaps staking a claim to virtual real estate.For this reason,Info-Tech projects that value in the metaverse will more likely be found in less holis-tic versions of itself,allowing for customization and adaptability for companies based on each use case to

27、produce value.Despite renaming the company to Meta,the company formerly known as Facebook isnt seen as defining the metaverse space by IT professionals.Instead,Microsoft and industry analysts were trust-ed to give an accurate picture of whats coming in five years time.“For next year,value is more li

28、kely to be found in less holistic expressions of the metaverse.Info-Tech views the metaverse as best understood from a technological perspective.A convergence of mixed reality,artificial intelligence,immersive digital space,and real-time communications stack together to create metaverse experiences.

29、”WHEN IT COMES TO ENVISIONING WHAT THE METAVERSE WILL LOOK LIKE FIVE YEARS FROM NOW,WHOM DO YOU MOST LOOK TO FOR AN ACCURATE PICTURE?MicrosoftIndustry analysts or consultantsMeta(formerly Facebook)9%35%35%6%5%4%3%3%Creators of blockchain-based virtual worldsOther NVIDIA Authors of science fictionEpi

30、c GamesA metaverse by any other nameTech Trends 2023|6The MetaverseInfo-Tech Research GroupThe metaverse as a solution to hybrid work is still a far-off concept for most firms,with 63%of organizations having no plans to collaborate in virtual reality(using headsets that totally block out the real wo

31、rld).Only one quarter of firms are conducting a proof of concept or planning to do so.Slightly more than one in ten say theyre either scaling up or already seeing widespread organizational adoption.When survey takers were asked individually about their interest in collaborating in VR,about one in fo

32、ur said they were interested.Thats equal to the number of organizations that are at least planning a proof of concept,showing that on average,organizations are demonstrating the right amount of enthusi-asm for the metaverse.Organizations show slightly more interest in adopting augmented reality head

33、sets(which are transparent,allowing the real world to be seen)over virtual reality.Thirty-five percent of organizations are at least planning a proof of concept or are more advanced in using AR headsets,compared to 32%that can say the same of VR headsets.Two industries are showing more interest than

34、 others in collaborating in VR.The media,infor-mation,telecom,and technology industry(n=75)is most enthusiastic with 34%at least already conducting a proof of concept.The profession-al services industry(n=93)is the next-most in-terested,with 29%already conducting a proof of concept or an initiative

35、thats progressed even further./SIGNALSLets just stick to ZoomWHAT BEST DESCRIBES YOUR ORGANIZATIONS CURRENT APPROACH FOR COLLABORATING IN A VIRTUAL REALITY ENVIRONMENT?HOW INTERESTED ARE YOU IN USING A VIRTUAL REALITY HEADSET TO COLLABORATE WITH YOUR COLLEAGUES?WIDESPREAD ORGANIZATIONAL USAGESCALING

36、 UP COLLABORATIONCONDUCTING A PROOF OF CONCEPTINTERESTEDPLANNING TO RUN A PROOF OF CONCEPTNEUTRAL NO PLANS TO USENOT INTERESTED63%18%7%7%5%56%19%25%Tech Trends 2023|7The MetaverseInfo-Tech Research GroupMETAVERSE COLLABORATION IS A RESPONSE TO THE CHALLENGES EXPERIENCED AROUND REMOTE WORK DURING THE

37、 PANDEMIC The concept of“Zoom fatigue”describes the exhaustion due to the mental effects of engag-ing in videoconferences all day long(IFRI,2022).With most organizations moving to a hybrid model of work,it can be difficult to facilitate meetings between employees who are in the office and those work

38、ing remotely.Colleagues limited to participating through a screen tend to be ignored.For this reason,tech firms fo-cused on digital collaboration solutions see interaction in a mixed reality environment,involving avatars and shared virtual spaces,as a way that everyone can collaborate on equal footi

39、ng in a more natural way.THE PANDEMIC ALSO DISRUPTED BUSINESS TRAVELIndustries that rely on specialized experts to travel to different locations to maintain com-plex machinery had to find ways to adapt.Rath-er than having the skilled technician travel to the location,they can connect with an onsite

40、employee wearing an augmented reality head-set like Microsoft HoloLens.Using the camera and speakers on the device,the expert can effectively see through the eyes of the non-skilled employee and give them step-by-step instructions on how to complete a task.This type of interaction is being enhanced

41、with recorded sessions,digital models and anima-tions of complex machinery,and even digital twins of entire environments.WHILE FRICTION IN THE WORKPLACE IS BEING RESOLVED,THE LAST COUPLE OF YEARS HAVE SEEN A BOOM OF TIME SPENT ON DIGITAL ENTERTAINMENT Meta is estimated to have sold 8.7 million Quest

42、 2 VR headsets in 2021,rising to 15 million by mid-2022(Android Central,March and June 2022).Meanwhile,gaming platforms that in-vite users to build their own experiences,such as Roblox and Fortnite,are demonstrating the viability of business models that allow free access to a virtual world and drive

43、 revenue through microtransactions./DRIVERSMeeting on equal footing“.tech firms focused on digital collaboration solutions see interaction in a mixed reality environment,involving avatars and shared virtual spaces,as a way that everyone can collaborate on equal footing in a more natural way.”Tech Tr

44、ends 2023|8The MetaverseInfo-Tech Research Group/ATTACK OPPORTUNITY PROTECT FROM RISKPursue digital twins,avoid vendor lock-inENHANCE FIELD WORKER PRODUCTIVITY Workers that typically work with their hands can benefit from accessing an enterprise knowledgebase and collaborating with experts through a

45、n augmented reality headset.This type of solution is more mature than full-on virtual reality use cases for the enterprise.There are a variety of manufacturers making headsets at different price points,solution providers to deploy them to your workforce,and systems integrators to tie them into enter

46、prise systems.PLAN COMPLEX LOGISTICS BETTERDigital twins are proving useful to plan out changes to man-ufacturing lines,airports,and warehouse facilities.If you operate an environment with a lot of moving pieces and a lot can be gained from optimizing it,building digital twins is a capability worth

47、pursuing.OPPORTUNITIESRISKSPLATFORM LOCK-IN Early platform providers have paid lip service to the idea of portability across metaverse environments,meaning you can take your data from one vendors platform to anothers.But how interoperability will work is unclear.A company could build out a customize

48、d metaverse experience on a private platform,only to later have the terms changed.EVAPORATING MARGINSInitial revenue-sharing schemes released by Meta for Horizon Worlds have been aggressive,claiming almost half of the pie from developers (Ars Technica,April 2022).LEGAL QUAGMIREIf a harassment lawsui

49、t is filed based on an inter-action that took place in the metaverse,in what jurisdiction should it be brought to court?What rights does one have to virtual real estate or digital goods registered to the blockchain?There are many opinions to be found on these questions but not a lot of clarity.The e

50、arly metaverse experience may feel a bit like the Wild West,with platform providers playing the role of sheriff.Tech Trends 2023|9The MetaverseInfo-Tech Research Group/CASE STUDYMoots in the metaverseSITUATION The University of Ottawas Common Law Section holds a moot competition for its students ann

51、u-ally,requiring teams to prepare written sub-missions on a legal point and then argue their case in front of a panel of judges.Its meant to simulate the feeling of being in a courtroom and is typically hosted in a real physical courtroom.Pandemic restrictions made that impossible and the competitio

52、n was to be held using Zoom vid-eoconference.Seeking to improve upon the vir-tual experience,third-year Juris Doctor student Ritesh Kotak worked with peers,Tech Fellows Ayushi Dave and Ryan Mosoff,on a metaverse moot initiative.ACTION With funding from LeClair and Associates,the students engaged Ire

53、land-based ENGAGE XR to help create a virtual courtroom.Using the companys virtual reality platform,an existing American courtroom was modified to suit the moot competition style of three judges and no jury.After initial rounds of the moot were com-pleted over Zoom,the finalists held their moot cont

54、est on the VR platform in March 2022.A former Supreme Court justice and a current On-tario Court justice helped judge the event.Par-ticipants were shipped Meta Quest 2 headsets to use for the experience.They uploaded photos of themselves to create avatars with their likeness.“It felt real,it felt li

55、ke we were in a courtroom,”Kotak says.“No one thought we would ever do trials over Zoom until the pandemic happened.To me,that was a bandage approach to create some continuity.It wasnt the be-all and end-all.”An in-world videographer created a re-cording of the virtual event that was suitable to str

56、eam on YouTube.RESOLUTION Funding from LeClair and Associates for the project lasts through 2026.Even though the moot competitions can now be held in per-son again,Kotak says there are plans to take a hybrid approach to them and still include a VR component.Kotak has now graduated but plans to volun

57、teer his time for the project.Their aim is to introduce a new element that hasnt previously been done in a trial every year.For next year,they are looking at intro-ducing a recreation of a crime scene to serve as evidence in a trial.“Can we transport the judge and jury,virtually,to the scene of a cr

58、ime?”Ko-tak says.“They could walk around and see that scene virtually,with real evidence.”Also of in-terest is to expand on open court principles,to allow the public to have access to trials that are taking place.Kotak says some members of the public were invited to sit in the virtual gallery at thi

59、s years moot competition.“Were looking into 3D recreations of a crime scene.Can we transport the judge and jury virtually to the scene of the crime?”RITESH KOTAK Juris Doctor Graduate University of Ottawa Tech Trends 2023|10The MetaverseInfo-Tech Research Group/WHATS NEXT?A metaverse that moves youH

60、olographic communications systems are being created by several ven-dors.With enterprises already testing prototype products,we could see some of these solutions come to the market in general availability in 2023.These solutions focus on projecting photorealistic 3D images of people into a remote env

61、ironment.Users wear augmented reality head-sets to see the holographic content and interact with it.Capturing the hologram-quality 3D image also requires special equipment and cloud-based rendering of multiple video feeds.Some solutions in this space use volumetric video to capture the holograms.Cis

62、co is developing a light field capture method with Webex Hologram that it says offers a more realistic representation of people and objects.“We bring a glass of water into the scene,and you can see the reflections bounce off the water,”says Edel Joyce,product manager for Webex Holo-gram at Cisco.“Ou

63、r goal is to make it as real as possible so you can get that emotional feeling of the presence.”Its still in prototype mode,but Cisco has several early customers testing out Webex Hologram across different industries.McLaren Racing is the one publicly stated partner,but other users include two hospi

64、tals,two universities,a manufacturer,an apparel design firm,a medical device maker,and other technology firms.Companies investing in the system are seeing value in a few different scenarios,Joyce says.Companies that require expert trainers to travel onsite to demonstrate complex equip-ment can save

65、on the airfare for their trainer and instead have them do several sessions a day in different locations by appearing holographically.Companies that want to accelerate a design process around a physical object find the technology brings them to consensus more quickly.And then theres the mental health

66、 benefits of feeling the presence of anoth-er person despite their distance.Cisco is talking to defense forces about arranging for deployed overseas troops to have a holographic family visit,Joyce says.Cisco is learning how to refine its product from its early customers.Im-provements to the interfac

67、e are made iteratively and paring back the requirements for the capture system will help bring down the cost.“People dont need to see the back of your head during a meeting,”Joyce says.“So,weve narrowed down the number of cameras we need on a de-vice.”Cisco is not sharing any pricing or roadmap info

68、rmation on Webex Hologram at this time.WHAT WILL BE THE HTML OF THE METAVERSE?Hypertext markup language(HTML)made the web possible by setting a standard for how web browsers rendered content.If a future metaverse is going to be equally seamless and accessible,a similar stan-dard is necessary.NVIDIA

69、and Pixar are championing the Universal Scene Description(USD)standard developed by Pixar and released to open source in 2016.It defines not only the visual characteristics of an object in 3D but its behavioral attributes as well,such as weight,density,and whether it has an interactive component(NVI

70、DIA,2022).“Were tricking the brain to make you think the person is present.Its as real as you can get.”EDEL JOYCE Product Manager for Webex Hologram Cisco Tech Trends 2023|11The MetaverseInfo-Tech Research Group/RECOMMENDATIONSManage 3D content and improve hybrid engagementWATCH AND WAIT AS THE META

71、VERSE DEVELOPS The vision of the metaverse as a uni-versal digital space where people interact at scale and spend money is still a distant vision.Its OK to stay in learning mode for now and not rush into a proof of concept using virtual reality headsets or block-chain-based digital real estate.CONSI

72、DER HOW TO MANAGE 3D OBJECTS Digital 3D objects are becoming more useful in a number of different work settings to facilitate collabora-tion around complex machinery or environments.Consider how you will create the digital twin of your environment and how you will man-age the inventory of 3D objects

73、.IMPROVE THE HYBRID WORK EXPERIENCE The metaverse is proposed as a way to facilitate more engaged collabo-ration between colleagues who are split between working in the office and working in remote locations.But its not the only way.Think about how to improve your confer-encing facilities and proced

74、ures to get the most out of hybrid meetings.INFO-TECH RESOURCESInto the MetaverseUnderstand the definition of the metaverse and the technologies involved.Examine the risks and benefits implied for IT Your Organizations Effectiveness With a Digital TwinUnderstand what digital twin is,in-cluding the u

75、nique characteristics of this transformative technology.Articulate both the value and con-straints of digital twin technology.Formulate a use case and validate its alignment with your Communications and Collaboration InfrastructureMake the case for your communica-tions infrastructure modernization p

76、roject and be prepared to support Trends 2023|12Generative AIInfo-Tech Research GroupAI can be trained by feeding content into generative adversarial networks,transformers,and variational autoencoders to create new content thats meaningful to people.GENERATIVE AI/IMAGINE GENERATIVE AI,TECHNICAL DRAW

77、ING OF A DIGITAL BRAIN SCHEMATIC,INTRICATE SURFACE DETAIL-AR 17:22Tech Trends 2023|13Generative AIInfo-Tech Research GroupGenerative AI is a type of semi-supervised machine learning that uses neural net-works to create new content or interpret complex signal information.By training the models with a

78、 large amount of content,they can be made to generate new works like what people would create.The uses for generative AI go beyond creating imagery.It could help businesses with predic-tive maintenance or improving cybersecurity analytics.It could help generate new ideas for drugs or assist in quali

79、ty analysis and medical diagnoses.AI is picking up steam with more organizations adopting it in 2023.According to our survey,AI will receive the most net-new investment by organizations by the end of 2023.While 35%of organizations say they have already invested in it,44%of organizations say they pla

80、n to in-vest in it next year.With a 9%change between committed investment and planned invest-ment,AI leads all technologies,followed by data lake at 5%and data mesh at 5%.THE CHANGE BETWEEN ORGANIZATIONS THAT ARE PLANNING TO INVEST IN AN EMERGING TECHNOLOGY AND THOSE WHO HAVE ALREADY INVESTED IN IT.

81、Artificial Intelligence(AI)or Machine Learning5%9%4%3%3%2%1%-1%-1%-2%-2%-5%-16%-23%-24%0%Data Mesh/Data FabricQuantum ComputingMixed Reality(Augmented or Virtual Reality)RoboticsBiometricsNo-Code/Low-Code PlatformsWorkforce Management SolutionsCloud ComputingData Lake/LakehouseBlockchainNext-Gen Cyb

82、ersecurity5GInternet of Things(IoT)Edge ComputingESG Metrics ReportingApplication Programming Interfaces(APIs)9%AI investment on the riseTech Trends 2023|14Generative AIInfo-Tech Research GroupBy the end of 2023,most businesses plan to use AI for business analytics or intelligence,with 65%saying the

83、y will do so.Also,63%of businesses say they will use AI to automate repetitive and low-level tasks.Other uses feature a clear drop-off after that,but the next-most popular use for AI is to identify risks and improve security.Generative AI can play a role in enhancing each of the top three use cases

84、of AI.Many businesses struggle with making use of un-structured data for analysis.Gen-erative AI can interpret that data and transform it into structured data.That not only renders it us-able in analytics but trainable for robotic process automation(RPA).Generative AI can also detect anomalies in ne

85、twork and appli-cation behavior,aiding security systems in identifying threats.We also asked what AI gover-nance steps organizations have in place today.New legislation in various jurisdictions,including Canada and Europe,are defining new rules around when and how AI can be applied.Organizations tha

86、t are using AI in situations that governments determine to be high risk will be required to do more to mitigate risks.Yet today,55%of organizations are doing nothing to govern AI.As more or-ganizations invest in AI and start applying it to more decision-mak-ing processes,IT leaders should be putting

87、 governance structures in place before theyre made to do so by new regulations.BY THE END OF 2023,WHICH OF THE FOLLOWING TASKS WILL INVOLVE AI AT YOUR ORGANIZATION?Business analytics or intelligenceAutomate repetitive,low-level tasksIdentify risks and improve securityMonitoring and governanceConvers

88、ational AI or virtual assistantsAugment operational staff in their decision makingSensor data analysisFinancial planning and analysisContent creationDefine business strategy64%34%65%43%33%28%27%20%16%12%/SIGNALSAI used to unearth insights and handle repetitive tasksTech Trends 2023|15Generative AIIn

89、fo-Tech Research GroupTHE NEED TO MANAGE UNSTRUCTURED DATA In the age of data collection in hope of becoming more data-driven in their processes,organizations are grappling with how to manage unstruc-tured data.Unstructured data is the majority of data collected,describing everything from written co

90、mmunications to images to presen-tation decks.Basically,everything thats not in a database or spreadsheet.Without AI to make sense of it,businesses cant search this informa-tion and turn it into actionable insights.NOT ENOUGH DATA In some areas of business,the problem is a lack of the specific data

91、they need to train an algorithm.The medical field often faces this problem because of the sensitivity of patient data.One solution to this problem is to create synthetic data:data that is generated by AI that closely approximates a real example of that data.Synthetic data is being used today to trai

92、n various AI algorithms,from models that will detect brain tumors on an MRI scan to self-driving cars.DESIRE TO COMPETE Organizations are increasing their spending on AI because of the potential benefits it offers.It can augment workers to do more work more quickly,reducing costs by automating away

93、more tasks.It can help discover new products more quickly and increase revenues.With more commercialized options available to de-ploy generative AI and more organizations in-vesting,those that dont invest may fall behind./DRIVERSData needs to be collected and synthesized Tech Trends 2023|16Generativ

94、e AIInfo-Tech Research GroupBEWARE OF BIASED RESULTSSociety has ingrained biases,and since AI is trained on data from the real world,it will be biased as well.Being intentional about the data sets that train algorithms can help with this,and testing should be employed to uncover biases.PUT GOVERNANC

95、E IN PLACE NOWNew legislation being developed in Canada and the European Union focuses on mitigating risks for high-risk AI applications.Draft legislation suggests requirements to use AI models that are explainable,to monitor deployed AI to ensure its behaving as expected,to conduct impact assessmen

96、ts on AI,and to publish clear explanations of how AI is intended to be used and what predictions it makes.MAKE SENSE OF UNSTRUCTURED DATATurn the volumes of unstructured data you collect and store into a useful asset.Use AI to read data stored in images,communications,and other content and translate

97、 it into a format that can be properly deciphered.CONSIDER ETHICAL IMPLICATIONSAdopting a commercial AI tool that was trained on data of unknown origin may prove problematic.After image generators became popular in 2022,some artists complained that theyd never given permission to have their art used

98、 to train the AI models and that their own work was being devalued as a result of so many people using their style to produce new images.Getty Images banned the sale of AI-generated images on its service due to concerns about the legality of the images and their copyright(Ars Technica,Sept.2022).USE

99、 SYNTHETIC DATA TO IMPROVE YOUR OWN AI MODELSIf training specific models could be useful for your business for tasks like quality control or building customized marketing campaigns,then generating synthetic data could help accelerate the training of those models.AUGMENT YOUR WORKFORCESome workers ma

100、y fear that AI tools will replace them.Send the message that like any other tool,AI is meant to augment the work of people.With the availability of AI tools to consumers through the web,workers will start tapping into them for help with their work whether IT is involved or not.Consider how to help s

101、upport a plan that is best aligned with the business and avoids potential risks./ATTACK OPPORTUNITY PROTECT FROM RISKHarness unstructured data,stay ahead of regulatorsOPPORTUNITIESRISKSTech Trends 2023|17Generative AIInfo-Tech Research GroupGENERATIVE AI CAUSES CONTROVERSYWhen considering the risks

102、of adopting AI,consider some of these AI controversies covered by the media in 2022.How could your organization avoid receiving unwanted attention like this?In April,OpenAI releases its DALL-E 2 image genera-tor,which produces biases that reinforce stereotypes.For example,women were more likely to b

103、e depicted as nurses,and men were more likely to be depicted as builders.OpenAI releases a fix to improve its image diversity,but then users find it is less accurate at turn-ing their prompts into useful images(NBC News,2022).In June,Google engineer Blake Lemoine claims that chatbot LaMDA is sentien

104、t and publishes an existen-tial conversation he had with the bot to the web.He is later fired(Washington Post,2022).In August,Jason Allen won Colorado State Fairs fine arts competition with a piece generated using AI im-age generator Midjourney,titled Thtre Dopra Spa-tial,stoking controversy among a

105、rtists(The New York Times,2022)./ATTACK OPPORTUNITY PROTECT FROM RISKHarness unstructured data,stay ahead of regulatorsTech Trends 2023|18Generative AIInfo-Tech Research GroupSITUATION AI lab Midjourney launched its first product,an image-generating bot only accessible through Discord,to private bet

106、a in the first quarter of 2022.Similar to other AI-powered image generators like OpenAIs DALL-E 2,it took any text prompt and produced an array of images.Midjourneys illustrative aesthetic made it eye-catching,and it was soon featured on the June cover of The Economist.While it was in private beta,t

107、he Midjourney team reached out to established visual artists to invite them to try the tool.Among them is Rob Sheridan,an American graphic designer best known for his work with the Nine Inch Nails,producing album cover art and other ac-cessories for projects like Year Zero.In his first weekend of us

108、ing Midjourney,Sheridan found himself in an existential crisis pondering what it meant for his role as an artist.“How can I have authorship in this process when the rendering is done by a computer?”he asked himself.Sheridan responded by probing the limits of the AI image generator tool,testing the b

109、ound-aries of where it would take his preferred genre of horror.After sharing some attention-get-ting results of his efforts to Twitter,Midjour-ney responded by banning terms like“body horror”from the platform.Sheridan doesnt agree with the censorship.“Art is not just about beauty,thats not a unilat

110、eral thing,”he says.“Beautiful is horror imagery to me.But its their platform so they can decide.”ACTION Despite the disagreement,Sheridan moved on from his initial reaction to Midjourney and used it for a new project,Volstof Institute for Interdimensional Research.A graphic story told on Instagram

111、and Twitter,its a found materi-als narrative thats firmly in the horror genre,with visuals of dilapidated laboratories,tenta-cles,and skulls.As Sheridan created more of the work,he began to appreciate the tool.“I love the flawed,messed-up aesthetic of it,”he says.The project helped him come to terms

112、 with the implications of AI-generated imagery.He viewed the Volstof project as a collaboration between himself and the AI.He let the bound-aries and parameters of Midjourney help guide his process and take the idea in new directions.The project has a modest following on social media but has been co

113、vered by the media,and some observers suggested the narrative would be fitting for a video game.Sheridan also used Midjourney to produce elements for designs he sells on T-shirts and paraphernalia on his e-commerce store.While Sheridan doesnt allow the AI to design every-thing on a new t-shirt,he di

114、d use it to create some characters that he incorporated into the design.“Its exciting and I feel I can take some authorship of it,”he says.He points out that having the tool opened the door to him creat-ing the designs on a whim,when otherwise he might not have invested time into following through o

115、n the idea.RESULTSheridans advice to other artists is to adapt to the new set of tools.Art directors should be ex-cited because they can now prototype designs more quickly,he says.“I can prototype some-thing like Volstof without having to hire a team of artists or investing the time it would take me

116、 to do it manually.”Illustrators can use the new tools as an exten-sion of their own brains,he says,and eventual-ly even train algorithms to mimic the style of their own work.Dont just look at all the problems with the new technology and dismiss it or demonize it,he advises.Film photographers that r

117、eacted that way to digital photography and photoshop were quickly pushed out of the market for the new standard that customers expected.While there will no doubt be problems to solve with Midjourney and other similar tools,its better to discuss how to solve those problems and work with technology pr

118、oviders.After all,in Sheridans view,the medium is not the mes-sage.“Having a good vision is more important than owning an expensive piece of equipment,”he says.Likewise,having a good vision will serve artists well as the unimaginative churn out volumes of banal imagery.“I asked myself How can I have

119、 authorship in this process when the rendering is done by a computer?The answer was that I viewed it as a collaboration with the AI.”ROB SHERIDAN Art Director,Co-Founder Glitch Goodson his experience testing AI image-generating bot Midjourney/CASE STUDYFrom existential crisis to exciting collaborati

120、on Tech Trends 2023|19Generative AIInfo-Tech Research GroupSPEECH RECOGNITION OpenAIs stated mission is to pursue artificial general intelligence.As a result,it has several types of AI projects in progress.On Sept.21,2022,it released to open source Whisper,a neural net that can recognize En-glish sp

121、eech with human-level robustness and accuracy.It encourages developers to use Whisper to add voice interfaces to their applications(OpenAI,2022).FRAUD DETECTIONIdentifying a user through digital data minutiae of how they move a mouse or what network their smartphone is connected to at the mo-ment is

122、 now possible with AI-developed fraud prevention algorithms.The smallest details can be added up in an algorithm that predicts the risk of fraud on any given transaction and flags it for further inspection by a human(IT Business Edge,2022).SOFTWARE DEVELOPMENTNon-technical workers will be aided in c

123、reating new applications with AI-powered tools that write the code for them.GENIO is one example,described as a low-code software development program.It can generate code in both modern web architectures and back-office solutions.In a Facebook post,Meta CEO Mark Zuckerberg wrote,“Its much harder to

124、generate video than photos because beyond correctly generating each pixel,the system also has to predict how theyll change over time.”Cur-rently no one is allowed access to the model outside of Meta(The Verge,Sept.2022).VIDEOMeta unveiled its Make-A-Video system on Sept.29,which allows users to type

125、 in words to describe a scene to generate a video several seconds long that matches the prompt.Also important to watch will be the progress of new legislation to regu-late AI.Bill C-27 is currently scheduled for a second reading in the House of Commons and could progress into law by the end of 2023.

126、The EU-proposed regulation on artificial intelligence is expected to take longer to pass into law.So Canada may end up being the first jurisdiction to pass AI regulation to law in the world(McCarthy Ttrault,2022).“Its much harder to generate video than photos because beyond correctly generating each

127、 pixel,the system also has to predict how theyll change over time.”/WHATS NEXT?Every creative field will be impacted by AITech Trends 2023|20Generative AIInfo-Tech Research GroupEXPERIMENT WITH NEW GENERATIVE AI TOOLS Whether its using Midjourney to render the art of your entire flag-ship content pi

128、ece,as Info-Tech has done with Tech Trends 2023,or using Github Copilot to help you through the next few lines of code that you write,begin building awareness of the different AI-powered content creation tools available.Expect work-ers outside of IT to start using them on an ad hoc basis and conside

129、r how you might support them or mitigate potential risks.CURATE YOUR OWN DATA SETS TO TRAIN GENERATIVE MODELS Generative AI models come ready to imitate the artistic style of Picasso or the sound of The Beatles,but they wont be ready to create specific content that is relevant to your organization.L

130、uckily,it can be trained to do so with a robust enough source of input data.Consider what data you currently own that is a value differentiator and think about how to prepare it to train an AI model.DEVELOP AN AI CENTER OF EXCELLENCE Group together the best AI talent your organization has access to

131、on a centralized team.Have them examine processes and determine where AI can be used to create the most value.INFO-TECH RESOURCES Legal Professional Services Artificial Intelligence ReportIt should come as no surprise that AI has gained traction in the legal professional services industry,as the ben

132、efits and return on invest-ment(ROI)of AI is readily apparent.Automation of manual tasks,such as filing,categorization,document creation,and billing,is among the most visible benefits of AI,but this is just the tip of the Started With Artificial IntelligenceUse this blueprint to understand what AI r

133、eally means in practice and to get started with your AI ex-plorations to harness its transfor-mative and the Future of Enterprise ProductivityArtificial intelligence(AI),as a col-lection of techniques rather than a singular technique,sits at various levels of expectation and deploy-ment with some ap

134、plications commonly deployed in enterprises for years and others just AND RESOURCESTrain your own AI and experiment with itTech Trends 2023|21Industry-Led Data ModelsInfo-Tech Research GroupIndustry-specific expertise is helping turn data collection into insights,pushing more back-office operations

135、to find analytics-driven efficiencies,and creating new revenue-generating opportunities.INDUSTRY-LED DATA MODELS/IMAGINE INDUSTRY LED DATA MODELS,NUMBERS REFLECTED ON A PERSONS EYE,HUMAN EYE CLOSED UP,HYPERREALISM,HIGHLY DETAILED,OCTANE RENDER,-AR 17:22-TEST-CREATIVETech Trends 2023|22Industry-Led D

136、ata ModelsInfo-Tech Research GroupThe promises of big data have been harped upon for the entire 21st century,giving rise to an industry of data-collection and analytics services.Clear ex-amples of data-driven business models are well known in the technology sector,with the rise of Netflix based on i

137、ts watch recommendations algorithm,Amazons e-commerce dominance based on its personalizedsearch results,and Facebooks success in the ads market thanks to behavioral advertising algorithms.Yet that success proved more difficult to translate for other in-dustries with more established business models.

138、“Industry insights are increasing the value of enterprise data.”Legacy technology was one point of friction,with data being trapped in silos and hard to report on or compare against.But even when that problem is overcome by modernization efforts,converting data analysis into actionable insights is d

139、ifficult.Technol-ogy vendors dont always understand the important factors to report on for their customers in complex business environments like healthcare or manufac-turing.Recognizing this shortfall,solution providers are now collaborating with industry to drive the in-sights needed to increase th

140、e value of enterprise data.After AI,the two technologies gaining the most momen-tum in new investment are data lake or lakehouse and data fabric or mesh,with both seeing a 5%increase in the number of organizations planning to invest in 2023.These platforms facilitate better access to enter-prise dat

141、a and enable real-time reporting.To achieve data-driven decision making,organizations must iron out the friction in their data analysis process.The focus around big data has been on the four Vs model:volume,velocity,variety,and veracity.Now the fifth V,value,must be considered.THE CHANGE BETWEEN ORG

142、ANIZATIONS THAT ARE PLANNING TO INVEST IN AN EMERGING TECHNOLOGY AND THOSE WHO HAVE ALREADY INVESTED IN IT.Artificial Intelligence(AI)or Machine Learning9%Data Mesh/Data Fabric5%Quantum Computing3%Mixed Reality(Augmented or Virtual Reality)2%Robotics0%Biometrics-1%No-Code/Low-Code Platforms-2%Workfo

143、rce Management Solutions-16%Cloud Computing-24%Data Lake/Lakehouse5%Blockchain4%Next-Gen Cybersecurity3%5G1%Internet of Things(IoT)-1%Edge Computing-2%ESG Metrics Reporting-5%Application Programming Interfaces(APIs)-23%Data value is defined by the insights it yieldsTech Trends 2023|23Industry-Led Da

144、ta ModelsInfo-Tech Research GroupThe most popular ways for organi-zations to determine the value of their data demonstrate how indus-try-specific expertise comes into play.Seventy percent of organiza-tions determine value based on the improvements made to existing products and services.Also,65%of or

145、ganizations determine value based on how effectively the data helps reduce operating costs.Without the right industry ex-pertise,you cant understand the variables in play in improving a product or whats relevant to op-erational overhead throughout a value chain.Perhaps thats why most organizations l

146、ook to build their own data analysis tools.According to survey results,41%of organizations build their own data analysis with in-house staff.Another 28%both build their own tools and buy tools to support analysis.Organizations want to put their own industry expertise to work in de-signing analytics

147、to provide the right insights.But by taking on the task of building the tools,they are likely missing out on best-in-class ap-proaches honed by technology vendors with refined analytics products and services.Driving the most value from data requires a best-of-both-worlds approach that combines indus

148、try expertise with best-in-class analytics tools.How much value-add the data brings to existing products and services70%How effectively the data helps us acquire new customers51%How much we are able to sell the data for directly11%How effectively the data helps us reduce costs in operations65%How ef

149、fectively the data helps us increase spend in existing customers38%9%OtherHOW DO YOU DETERMINE THE VALUE OF DATA IN YOUR ORGANIZATION?WHAT BEST DESCRIBES YOUR ORGANIZATIONS APPROACH FOR DATA ANALYSIS?WE BOTH BUILD OUR OWN DATA ANALYSIS AND BUY TOOLS AND/OR SUPPORTWE RELY ON A SERVICE PROVIDER FOR DA

150、TA ANALYSISWE BUY OFF-THE-SHELF TOOLS TO PROVIDE ANALYSISWE BUILD OUR OWN DATA ANALYSIS WITH IN-HOUSE STAFFWE DONT CONDUCT ANY DATA ANALYSIS AND/OR SUPPORT8%6%28%17%41%/SIGNALSValue is driven by cost-savings and product enhancements Tech Trends 2023|24Industry-Led Data ModelsInfo-Tech Research Group

151、DATA GRAVITYAn ecosystem of applications and services that includes SharePoint,OneDrive,Google Drive,and Dropbox and offers APIs and integration opportunities for developers to enhance their products.The ease of integration with little or no additional effort on the part of developers leads to more

152、data being collected more often and stored away in various caches,both local-ly and in the cloud.With the cost of storage so low it may as well be free,there is no friction in stowing away data if there is any chance it could be useful.AI-ENHANCED CAPABILITIES Data analytics vendors are integrating

153、AI capa-bilities into their tools that help solve challeng-es around deriving value from data,for both management and insights.On the manage-ment side,tools help automate the preparation,integration,cataloging,and quality review as-pects of data.On the insights side,AI-driven tools are more adeptly

154、generating visuals that make data interpretation easy.NEW WAYS TO SHARE DATA Data managers are using new platforms to ag-gregate enterprise data in a way that makes it more accessible.Users can see real-time updates of the data rather than requesting re-ports on historical data,enabling more timely

155、decision making.(Info-Tech LIVE 2022,2022 Data and Analytics Trends)/DRIVERSStorage is cheap and sharing is easyTech Trends 2023|25Industry-Led Data ModelsInfo-Tech Research GroupESTABLISH A FORMAL DATA GOVERNANCE CAPABILITYIts rare for organizations to have a data governance process implemented,acc

156、ording to our survey,with just under one in five organizations saying they had implemented a data governance process or better yet fully automated it.Without a formal data governance strategy,businesses will be exposed to risks including compliance challenges,negative customer experiences,and reputa

157、tional damage.PARTNER WITH TECHNOLOGY PROVIDERS Identifying a vendor or solutions provider thats trying to enter a new industry can be an opportunity to partner with them.Combining your organizations industry ex-pertise with a technology services approach can yield new business models and help solve

158、 your own problems.TURN ANALYTICS INTO INSIGHTSGo beyond creating a dashboard of analytics for the busi-ness and embed analytics into your business process.De-termine where and when to surface a data-driven insight to the user so it is most likely to be acted upon.IDENTIFY NEW LINES OF BUSINESSRefin

159、ing data to the point that its driving unique insights can yield new revenue-making opportunities.An organiza-tion may recognize the need for a new product to suit cus-tomer needs or determine there is an opportunity to target a different type of customer.In some cases,the data itself may be valuabl

160、e enough to sell in a data-as-a-service model.A PROCESS FOR DATA GOVERNANCE IS FULLY AUTOMATEDA PROCESS FOR DATA GOVERNANCE IS IMPLEMENTEDA CLEAR PROCESS WAS RECENTLY CREATED BUT IS STILL BEING IMPLEMENTEDAD HOC-SOME DATA STEWARDSHIP AND OWNERSHIP ON A CASE-BY-CASE BASISREACTIVE-WE SPEND A LOT OF TI

161、ME CLEANING DATA17%41%23%17%2%WHAT BEST DESCRIBES YOUR ORGANIZATIONS APPROACH TOWARD DATA GOVERNANCE?OPPORTUNITIESRISKS/ATTACK OPPORTUNITY PROTECT FROM RISKGraduate from analytics to insights,formalize data governanceTech Trends 2023|26Industry-Led Data ModelsInfo-Tech Research GroupSITUATION In the

162、 US,the healthcare industry suffers from a problem around patients not showing up for scheduled appointments.These“no-shows”cost the industry$1.5 billion annually.At the organizational level,a typical hospital will have a no-show rate between 15 and 30 percent.Childrens Specialized Hospital in New J

163、ersey was no stranger to this problem,seeing about one in every five appointments result in a no-show.Not only was this costing the organiza-tion tens of thousands of dollars per year,but it meant its resources sat idle and patients did not receive care.The hospitals innovation arm,the Center for Di

164、scovery,Innovation and Development,was looking for an opportunity to make mean-ingful change in the healthcare industry with analytics.It settled on no-shows as its target problem to solve.“Were in a world of healthcare worker shortages and burnout,”says Victoria Gregorio,the inno-vation program lea

165、d at Childrens Specialized Hospital.“Wait lists are longer than before and with no-show solutions,we could use that infor-mation to fill up those appointments and reduce the wait lists.It could reduce burnout too.”ACTIONAnalytics solution provider and SAS partner Pinnacle Solutions was also trying t

166、o address the no-shows problem.But its customers werent seeing the value in its analytics solu-tion.So,it partnered with one of its customers,Childrens Specialized Hospital,to form a joint venture in Predictive Healthcare Solutions.The hospital brought the industry insights that Pinnacle needed,says

167、 Elizabeth Stack,chief sales and relationship officer for Predictive Health Solutions.“We as a tech company could have never made the robust solution we have in place today without the insight of those who un-derstood the healthcare industry.”The hospital team helped Pinnacle understand how to commu

168、nicate the value of the solution.They had to go beyond mere cost savings and address the improvements made to the patient experience.The analytics were built into the daily operations of the hospital so they could be actionable.Not only on a patient-by-patient level but at a strategic level as well.

169、They also collaborated on refining the no-show prediction model itself,with the hospital pro-viding insights on what variables were relevant.RESOLUTION The Childrens Specialized Hospital and Pin-nacle solution splits the revenues evenly from their joint venture.Predictive Healthcare Solutions bills

170、clients based on the number of appointments they are booking,allowing the solution to scale from a small independent pro-vider to a large multi-location hospital.“Were about making the data that health-care organizations already have actionable,”Gregorio says.Each customer is provided with a tailor-

171、made algorithm to predict the no-show appoint-ments accurately for their situation.The type of healthcare delivery and whether it is in an urban or rural setting are a couple of examples of factors that can change how the predictions are calculated.A process is also put in place to ensure the model

172、remains accurate.“We dont just rely on the technology,”Stack says.“Once its deployed,we have a process in place to talk about whats happening from a people,process,and technology perspective.”The solution is being used at the Childrens Spe-cialized Hospital as well,across 12 different outpatient loc

173、ations,helping to reduce wasted costs and deliver better healthcare results.“Healthcare has a lot of challenges that can be solved with better use of analytics.But oftentimes analytics companies dont understand the complexities with which healthcare organizations operate.”VICTORIA GREGORIODirector,C

174、enter for Discovery,Innovation and Development Childrens Specialized Hospital/CASE STUDYTurning“no-shows”into no problem for healthcare providers Tech Trends 2023|27Industry-Led Data ModelsInfo-Tech Research GroupNew AI capabilities will help organizations at every step along the way to turn their d

175、ata into value.Agile governance that is flexible enough to adapt to organi-zational change will become automated governance,entrenched in organizational processes and actively adapting to changes in the environment.Data fabric architecture will play a role in delegating governance.Natural language p

176、rocessing and generative AI will also play a role in storytelling for analytics.Allowing users to ask for data in plain language instead of com-plex database queries,then representing it in a beau-tifully rendered chart or graph will help individual users realize insights.Metadata management will be

177、 a key aspect to making this type of experience a reality.DATA AS A SERVICEData mesh architecture will align data sources by business domains,allowing data owners to create data products for their domains.This approach will change back-office mindsets around data as a resource to aid them in decisio

178、n making.In certain cases,organiza-tions will identify data products to make available to an external marketplace for monetization.DATA GROWTHThe total amount of data created,copied,and con-sumed globally is predicted to increase at a rate of 19%annually and will reach 180 zettabytes by 2025 (Info-T

179、ech LIVE 2022,2022 Data and Analytics Trends)./WHATS NEXT?AI-powered data value pipelinesTech Trends 2023|28Industry-Led Data ModelsInfo-Tech Research GroupLOOK FOR INDUSTRY-FIT ANALYTICS PROVIDERSIf youre looking to procure an analytics solution,consider how your competitors or other organi-zations

180、 in your industry are doing it.If you find several successful ex-amples involving the same vendor,its a good indication that vendor is already mature in providing analytics to your industry.If you dont find one,youll have to con-sider a different route.PARTNER WITH ANALYTICS PROVIDERSIf you are deve

181、loping your own an-alytics solution for the organiza-tion,consider seeking a technol-ogy partner with competency in analytics.You may have a good un-derstanding of the insights your organization needs,but rendering them accurately and reliably is a specialized skill in itself.Partner-ing with a solu

182、tions provider may lead to other opportunities down the road.CONSTRUCT A SCALABLE DATA FOUNDATION Align your data analytics approach with the business by letting busi-ness capabilities guide your data identification.Then design data practices to deliver insights and a data architecture that can scal

183、e with demand.Design Data-as-a-ServiceConnecting to data should be as easy as connecting to the inter-net.This is achievable if all orga-nizations start participating in the data marketplace ecosystem by leveraging a Data-as-a-Service(DaaS) Integration&iPaaS categoryData integration software com-bin

184、es data from different sources,databases,data warehouses,and apps to provide a unified view.Integrated Platform as a Service is a solution that enables users to develop,execute,and govern data processes.Evaluate top vendors in the market and understand their ability to satisfy customers with our rep

185、orts with data from real software RESOURCESBuild Your Data Practice and PlatformThe complex nature of data invest-ment leads to de-scoping and de-livery of data services that do not meet business needs or give value to the business.Subject matter ex-perts are hired to resolve the prob-lem,but their

186、success is impacted by absent architecture,technolo-gy,and organizational AND RESOURCESPartner externally and align internally Tech Trends 2023|29Sustained Digital ProcessesInfo-Tech Research GroupEnsure your organization is executing the digital transformation it planned with business process minin

187、g and discovery.SUSTAINED DIGITAL PROCESSES/IMAGINE SUSTAINED DIGITAL PROCESS,ESTABLISHING SHOT OF A DIGITAL BUTTERFLY WITH PURPLE GLOWING WINGS FLYING THROUGH A LUSH GREEN FOREST,METAMORPHOSIS,CINEMATIC LIGHTING,8K,EXTREME SURFACE DETAIL,GLOW PUNK,OCTANE RENDER,CHEERFUL-AR 17:22/IMAGINE SUSTAINED D

188、IGITAL PROCESS,ESTABLISHING SHOT OF A DIGITAL BUTTERFLY WITH PURPLE GLOWING WINGS FLYING THROUGH A LUSH GREEN FOREST,METAMORPHOSIS,CINEMATIC LIGHTING,8K,EXTREME SURFACE DETAIL,GLOW PUNK,OCTANE RENDER,CHEERFUL-AR 17:22Tech Trends 2023|30Sustained Digital ProcessesInfo-Tech Research GroupLike a chess

189、grandmaster who wants to stay on top of the world rankings,organizations that have achieved a digital transformation will find it takes dedicated commitment to continuous learning and review to sustain their new stature.In last years trends report,we explored how the pandemic accel-erated digital tr

190、ansformation,particularly among industries previously considered laggards.The im-pact of those efforts is that most customer interac-tions worldwide are now digital.Companies made big investments into digitalizing tasks and processes to get to a position where they can run the business more efficien

191、tly and effectively.Those that pursue digital transformation soon learn that its a transformation that doesnt have a definite final state but is instead an evolutionary process without end.Effort is needed to sustain its momen-tum,as are new tools and ways of working.Based on our survey data,more co

192、mpanies may now be through the initial rush of digitalization and into the next phase of sustaining their efforts.Last year,more organizations were likely to say theyd digi-talized more than 20%of their processes,with eight in ten IT professionals saying so.In our survey this year,seven in ten respo

193、ndents say they digitalized between 0-20%of their processes in the past year.Most organizations have finished making their early game moves to set up the board.Now they are ready to execute on sustaining their strategic advantages.TO WHAT EXTENT DID YOUR ORGANIZATION SHIFT ITS PROCESSES FROM BEING M

194、ANUALLY COMPLETED TO DIGITALLY COMPLETED DURING THE PAST YEAR?Between 0-20%2023202320232023202320222022202220222022Between 21-40%Between 41-60%Between 61-80%Between 81-100%Digital transformation is a journey,not a destination71%20%17%7%3%15%1%7%28%30%Tech Trends 2023|31Sustained Digital ProcessesInf

195、o-Tech Research GroupWhen we asked what motivation they had to pursue automation,increased staff focus on high-level tasks was the most popular answer with 69%of respondents.A little more than two-thirds of respon-dents also saw that increasing pro-ductivity of staff without increas-ing headcount is

196、 a motivation.Only 35%say the motivation is a cost sav-ings by reducing headcount.To achieve what they set out for,organizations need to go beyond merely digitalizing processes and seek to optimize those processes.Digitalization sets up a process to be probed with process min-ing tools that can exam

197、ine how processes are executed and deter-mine what actions affect key per-formance indicators.These tools are bottom-up approaches that capture and document processes as they are executed.Using event logs,process mining can enable process automation by detailing exactly how current processes are run

198、.Process mining can enable better productivity by identifying unnecessary steps in a process and removing them alto-gether.Organizations may identify employees that need to be retrained after years of following a legacy process that is no longer relevant(AI Multiple,2022).WHAT BEST DESCRIBES YOUR MA

199、IN MOTIVATION TO PUR-SUE AUTOMATION,ABOVE OTHER CONSIDERATIONS?Increase staff focus on high-level tasks by automating repetitive tasks67%69%59%52%35%30%Increase productivity of existing staff to avoid increasing headcountReduce errors made by peopleImprove customer satisfactionCost savings through r

200、eduction in headcountIncrease revenue by enabling higher volume of work/SIGNALSDigitalization must lead to optimizationTech Trends 2023|32Sustained Digital ProcessesInfo-Tech Research GroupPANDEMICS SHADOW During the pandemics early phase,jurisdic-tions limited in-person activities to constrain the

201、spread of the virus.This shifted many in-person activities to digital very quickly and organizations had to respond by serving their customers in that context.Delivering services on digital channels meant also reworking business processes and systems to a more mod-ern approach.As most jurisdictions

202、have now ended limitations on in-person gatherings,or-ganizations that transformed are looking for ways to sustain the value they created from their investments.MORE CENTRALIZED LOG FILESInvestigating organizational activities through digital log files can only be done if there is con-sensus on whic

203、h log files represent reality.Leg-acy ERP systems stored data in separate silos and made this type of analysis too difficult.New approaches to ERP that unify data stores on a single platform open up the possibility of establishing a single source of the truth.DO MORE WITH LESS It may as well be ever

204、y CIOs mantra.In 2023,with an economic downturn expected and organizations struggling to hire talent in cer-tain areas,there is pressure to make the exist-ing workforce more productive by removing wasteful processes and automating repetitive,low-level tasks./DRIVERSA signpost of the digital journeyT

205、ech Trends 2023|33Sustained Digital ProcessesInfo-Tech Research GroupCHANGE MANAGEMENT Just because a process mining tool surfaces a flaw in execution doesnt mean that everyone in the business will agree.Accepting that a tool that examines log files can direct how business processes should be run me

206、ans accepting best practices as determined by people.Plan to meet different levels of friction as the organization implements the practice and accept that some stakeholders will take more convincing than others.STANDALONE SOLUTIONS GET ICEDPurchasing a standalone solution that examines the log files

207、 of your ERP system provided by another vendor runs the risk of changes in compatibility.As ERP providers look to add their own process mining capabilities through in-house development or acquisition,they could make changes to their log files that make them more difficult to access or read by a thir

208、d party.Think about future support scenarios when selecting a solution.RESULT QUALITY The results produced by the BPM system is dependent on past entry logs by employees in the ERP or SAP system.There are certain parts of the business process system that are conducted offline and dont have entry log

209、s within the system.If the quality of data is poor,it will be reflected in the results produced by the BPM.It is important that quality check methods are implemented at different stages of the business cycle to ensure best results.IMPROVED BACK-OFFICE EFFICIENCY If willing to adapt processes based o

210、n the findings of process mining,organizations will be able to continually improve.Employees can be trained with real feedback data and positive outcomes will reinforce best practices.REACH CONSENSUS ON KPIS Rather than stakeholders disagreeing on what key performance indicators(KPIs)should be used

211、to indicate their success,reach a consensus thats based on evidence.Having everyone in pursuit of the same goal is half the effort of sustaining digital transformation.DRIVE TRANSPARENCY AND OBJECTIVITYBusiness process mining provides visibility into actions as they were executed,bridging the gap be

212、tween expectations and reality.This allows for the detection and reconstruction of digital roadmaps or business workflows in phases and helps build consensus around a source of the truth.OPPORTUNITIESRISKS/ATTACK OPPORTUNITY PROTECT FROM RISKReach consensus on how you define success,dont stand alone

213、Tech Trends 2023|34Sustained Digital ProcessesInfo-Tech Research GroupSITUATION Charlotte,NC-based chemicals producer Albe-marle Corp.counts more than 5,900 employees and generates$3.3 billion in revenue.In 2017,its CIO initiated a three-tier digital transfor-mation strategy.Stage one solidified the

214、 fun-damentals of infrastructure and security.In stage two,the focus was on modernizing from its on-premises SAP systems into a unified SAP S/4HANA cloud environment while avoiding unnecessary process customizations.Across 5,000 global users,Albemarle was able to use 95%of standard processes in the

215、new platform with zero code modifications.It mi-grated from a legacy and multi-silo backend to a single platform in the cloud in a period of just 18 months.The technology project and change management was complete,and sustaining the transformation became the next goal.In stage 3,the focus shifted to

216、 value realization from operating on the new platform.Thats when Albemarle started considering using business process mining(BPM),a technique that uses event data to show what people and machines are really doing and when that veers from the desired process.“We wanted to be able to check on our stan

217、-dard processes and stay on the standard path.Ultimately,our sustainability depends on if the users are following the processes.Thats what brought us to look at BPM,”says Jim Rich-ards,vice president of business systems at Albemarle Corp.ACTION To pursue BPM,Richards first created the ac-countabilit

218、y structure in his organization.As the lead on enterprise business systems,he already had five directors reporting to him on SAP deployments across the organization.Af-ter considering using a Center of Excellence ap-proach to focus on BPM,he decided to instead use talents of the business systems ana

219、lysts group.The digital technology manager started reporting directly to Richards.That position would be responsible to build up the BPM ex-pertise in the group and eventually train other analysts on the competency.Albemarle considered a couple of vendors in the space but ultimately selected Celonis

220、,a Mu-nich-based data processing firm started in 2011 and rated as one of Germanys most-valuable private companies.Celonis reads the change logs generated by SAP.From there it is able to report on how employees took action to com-plete a specific process and in what order the steps were taken.The so

221、ftware can then check that execution against the agreed-upon pro-cess that was drawn up on the whiteboard.“What is our happy path?Is it the standard pro-cess that we thought it was?Its about helping users follow the right process,”Richards says.To get started with the new tool,Richards part-nered wi

222、th Albemarles order to cash group.The group was not meeting some key perfor-mance indicators like on-time delivery and order confirmation dates.Richards learned that it was important to edu-cate experienced team members on the new tool and how it would help improve their processes.RESOLUTIONDigital

223、process mining gained traction with the order to cash group by drilling down into the data and exploring the reasons behind why some suppliers were not getting order confir-mations.Albemarle connected the problem back to the inventory that it had available to promise.In oversold situations,it is nec

224、essary to confirm orders against planned production.So to improve the process,a new planning proj-ect was put in place to integrate the different departments involved and allow order confir-mations to be done more reliably.The proof of concept with the tool was effective and Celonis was soon deploye

225、d to other areas of the business.For example,it examined its hiring process,which was taking an average of about three months to complete.Background checks were taking too long to complete,and Albemarle decided to change its vendor in that area.Richards finds overall that BPM is helping make the new

226、 standards put in place during the companys digital transformation effort more sustainable.“People that just want to get their job done tend to want to move away from the standard,”he says.Managing against that urge is“a combination of change management and training.”Albemarle will continue to expan

227、d its BPM foot-print.It plans to roll it out to its transportation logistics across road,ocean,and rail planning in 2023.Richards team will partner with busi-ness and process owners to implement Celonis with them.“ERP has grown in capability and size but it hasnt had a big paradigm shift since the 9

228、0s.Digital process mining is the next disruptive and major technology that can change all ways of working like ERP did.”JIM RICHARDS VP Business SystemsAlbemarle Corp./CASE STUDYAlbemarles digital transformation shifts to value realization Tech Trends 2023|35Sustained Digital ProcessesInfo-Tech Rese

229、arch Group/WHATS NEXT?The biggest thing since ERPTWO SIDES OF SUSTAINING DIGITALBPM is being enhanced by AI and more often bundled with emerging process discovery tools.Process discovery is the other side of the coin to process mining,a top-down approach to monitor users.The tools provide the most e

230、f-fective mechanism to sustain a digital transfor-mation investment and stand to impact every area of business operations.Gone will be the days of drawing out a process on a whiteboard and hoping managers can coax employees into following it.Instead,software will visualize processes as they are real

231、ly executed.This will help organizations identify candidates for automation,hone their automated processes,and avoid conflicts between processes.The market for standalone process mining tools has seen triple digit growth since 2018 and is expected to continue that trend in 2023.Now more vendors that

232、 are established with ERP or robotic process automation(RPA)solutions are also looking to add the capability through building it out themselves or acquiring other software developers.Expect software-as-a-service providers to integrate the capability into their offerings.These vendors will benefit fr

233、om the familiarity with their own log files,allowing for tighter integration of the tools.BPM will also extend out to capture manual activities in warehouses and factories,trans-lating human behaviors into a digital log that can be examined for opportunities to discover best practices and eliminate

234、errors.(VentureBeat,2021)AUTOMATION AUGMENTATIONOrganizations seeking new automation oppor-tunities will use process mining to help.The tools address process documentation gaps and inaccuracies and help build a funnel of automa-tion candidates.Process mining and discovery help to streamline automati

235、on after the pilot is completed.Tech Trends 2023|36Sustained Digital ProcessesInfo-Tech Research GroupIDENTIFY YOUR TOOLING GAPSMap out how your organization operates and high-light the pain points around value delivery and pro-ductivity.Determine where tooling is under and over used.Understand the

236、objectives in taking stock of your processes:is the aim to improve efficiency,create a business continuity plan,or both?ASK YOUR VENDOR ABOUT THEIR PLANSBefore acquiring a standalone solution to create your process mining capability,ask your ERP vendor if they have plans to incorporate one in the fu

237、ture.Using a solution designed by the same vendor that designed the log files might lead to better results.Or you may learn that you only have to wait for the ca-pability to be added rather than spending more on a different vendor.SOCIALIZE THE PRACTICE OF PROCESS MINING While process mining and dis

238、covery tools will au-tomatically surface the deviations from standard process and visualize it for you,thats not of value in itself.Managers have to be able to take the results to their employees and explain what was learned and how to fix the issue identified.Understanding that this quality assuran

239、ce step is a part of the ongoing effort to improve productivity should become in-grained in organizational culture.Staff might per-ceive that their personal activities would be tracked on a corporate computer when they are not,so ad-dress privacy concerns clearly.INFO-TECH RESOURCES SoftwareReviews:

240、Business Process ManagementA BPM system helps to design,mod-el,formalize,document,and auto-mate business processes and make their execution more efficient.It allows companies to manage entire business process lifecycles,model scenarios,and discover Transformation CenterAs we emerge from the pandemic

241、,your choices range from blindly turning everything back on to ris-ing to the challenge of building a resilient organization that can thrive in a digital a Winning Business Process Automation PlaybookApply good practices to first opti-mize and then automate key busi-ness processes.Take a user-centri

242、c perspective to understand how users interact with technology to complete their tasks.Maximize the learning of automation solu-tions and business operational changes through small,strategic automation use cases.This sets the foundations for a broader automa-tion AND RESOURCESMind your gaps and soci

243、alize new ways to realize value Tech Trends 2023|37ESG Analytics and Reporting Info-Tech Research GroupPreparing for a heightened regulatory environment with timely and accurate reporting on ESG metrics.ESGANALYTICSANDREPORTING/IMAGINE TREE BECOMING SMOKE STACK,ENVIRONMENTAL SOCIAL OR GOVERNANCE-AR

244、17:22Tech Trends 2023|38ESG Analytics and Reporting Info-Tech Research GroupIn 2023,public companies will be required to report on their carbon emissions by financial regulators in the UK,EU,US,Canada,and elsewhere.We identified the shift from voluntary to mandatory reporting on ESG metrics such as

245、carbon footprint in last years report.But with various financial reg-ulators around the world either implementing those reporting requirements or moving closer to doing so,many organizations are still behind on this issue.Ac-cording to our survey,a majority of IT professionals expect to support envi

246、ronmental mandates but are not prepared to accurately report on their organiza-tions carbon footprint.“.a majority of IT professionals expect to support environmental mandates but are not prepared to accurately report on their organizations carbon footprint.”IS IT PLANNING TO SUPPORT ANY ENVIRONMENT

247、AL,SOCIAL,OR GOVERNANCE(ESG)MANDATES AT THE ORGANIZATION IN THE COMING YEAR?56%Yes,we are supporting environmental mandates (e.g.reduce carbon emissions)Yes,we are supporting governance mandates (e.g.improving diversity on the board of governors)Yes,we are supporting social mandates(e.g.improving pe

248、oples access to food)No,we are not supporting any ESG mandates25%45%37%The era of non-financial reporting requirements beginsTech Trends 2023|39ESG Analytics and Reporting Info-Tech Research GroupInternational Financial Reporting Standardsboard received responses to draft climate reporting regulatio

249、ns and has several meetings planned to dis-cuss.Once completed,the standards will be imple-mented by many countries.U.S.Securities and Exchange Commission received feedback on its greenhouse gas emissions reporting requirements for ESG funds on August 16 and could put the proposals in place by the e

250、nd of 2022.The European Union received feedback on its Euro-pean Sustainability Reporting Standards in August and plans to submit a first draft to the commission by the end of the year.The UK made its Climate-related Financial Disclosure Regulations law in January 2022,and they were enforceable as o

251、f April.Regulatory pressure to report on carbon emissions is building around the world:Tech Trends 2023|40ESG Analytics and Reporting Info-Tech Research GroupDespite the commitment to sup-port an ESG initiative,less than one quarter of IT professionals say their organization can accurately report on

252、 the impact of its ESG ini-tiatives,and 43%say their report-ing on impacts is not accurate.Reporting accuracy was even worse for reporting on carbon footprint,with 46%saying their organization could not report on its carbon footprint accurately.This is despite most IT profession-als saying they are

253、working to sup-port environmental mandates./SIGNALS IT is committed to ESG but not confident about itHOW ACCURATELY CAN YOUR ORGANIZATION REPORT ON THE IMPACT OF ITS ESG INITIATIVES?MORE SPECIFICALLY,IF IT WAS REQUIRED TO DO SO,HOW ACCURATELY COULD YOUR ORGANIZATION REPORT ON ITS CARBON FOOTPRINT?AC

254、CURATELY44%46%32%29%24%24%NOT ACCURATELYSOMEWHAT ACCURATELYTech Trends 2023|41ESG Analytics and Reporting Info-Tech Research GroupCLIMATE CRISIS The increase of greenhouse gases in Earths atmosphere has caused global annual average temperature to increase 1.1C since the start of the industrial revol

255、ution.The temperature is projected to rise further and cause many negative impacts including droughts,species extinctions,and an increase in extreme weath-er events.To mitigate the damage,the United Nations is calling on governments to work to stop adding carbon dioxide to the atmosphere by 2050(The

256、 New York Times,2021).INVESTOR CONCERN Investors are not satisfied with voluntary ESG reports that cant be compared between com-panies.In an analysis that compared the corpo-rate reports and the Climate Disclosure Project responses of 56 tech companies,researchers found a gap of 391 megatons of carb

257、on emissions.Of which,202 megatons came from supplies con-sumed,and 189 megatons came from products sold to market(Nature Communications,2021).Millennials are the demographic group that are most concerned with ESG investing and are the largest demographic behind investing and are still growing,stand

258、ing to inherit trillions in wealth over the next decade.REGULATORY CRACKDOWN Mandatory rules for ESG disclosures are arriv-ing in multiple jurisdictions worldwide.Regula-tors recognize the need for consistency across jurisdictions,and we are seeing the regulators converge on using the recommendation

259、s of the Task Force for Climate-related Financial Disclo-sures(TCFD)when drafting disclosure require-ments.The ISSBs General Requirements and Climate Standards are also based on the rec-ommendations of the TCFD.Other jurisdictions may adopt rules that are more stringent./DRIVERSAn urgent need to act

260、 to avert disasterTech Trends 2023|42ESG Analytics and Reporting Info-Tech Research Group/ATTACK OPPORTUNITY PROTECT FROM RISKBrief the boss,study the staffPrepare ITs ESG budget.Funding for delivery of new reporting capabilities is needed in 2023.Assess staff readiness to adjust to ESG reporting re

261、quirements.Consider where you can leverage current data management infrastructure and governance practices(e.g.financial reporting(SOX),OTC derivative reporting).Study the ESG solutions market.Understand what technology will help deliver accurate reporting of carbon emissions.Examine market-based op

262、portunities.Orga-nizations that are already carbon negative may stand to profit by selling carbon credits to jurisdictions with a cap-and-trade system.Examine project priorities to ensure organizational alignment with new ESG mandates.Assess your entire stakeholder landscape to ensure you have a ful

263、some understanding of your data needs.Conduct a gap analysis to identify the primary data you will require to satisfy all your stakeholders.Brief senior executives and the board on the imminent requirements for ESG reporting.Develop your voice of leadership on the issue in the organization.OPPORTUNI

264、TIESRISKSTech Trends 2023|43ESG Analytics and Reporting Info-Tech Research Group/CASE STUDYWalmarts net-zero mission is backed by science SITUATION Walmarts corporate head office started its Re-generative Initiative in 2017.The goal is to be carbon negative by 2040,meaning it is reducing more emissi

265、ons than it is creating.Walmart is working with the Science Based Targets Ini-tiative to measure and reduce its emissions in three categories:Scope 1:Emissions directly created from Walmarts buildings.Walmart is planning to start using low-impact refrigerants and to scale use of renewable energy.Sco

266、pe 2:Emissions created from its fleet.Walmart pur-chased a fleet of Tesla trucks and is committed to a 100%renewable energy fleet by 2028.Scope 3:Supply chain emissions both upstream and downstream.Walmarts Project Gigaton incen-tivizes suppliers to report on reducing emissions and offers calculator

267、 tools to support them.COMPLICATION With its corporate goals for ESG set,Walmart Canada is creating its plan to align with the stra-tegic pillars and begin reporting on efforts made to curb carbon emissions.In IT,the challenge is to develop a baseline set of metrics for the im-pact of devices on ove

268、rall carbon footprint.Reporting on real-time data for each deployed device will be a challenge because of the vari-ables.User behavior and power supply source are just a couple of the metrics that must be considered.After the emissions of operating devices are considered,the emissions of manu-factur

269、ing the devices are still left to be considered.Walmart will have to work with its vendors to determine the impacts.RESOLUTION Denise Wallace is a part of Walmart Canadas regenerative tech team,and is working to create a baseline set of metrics for handheld devices and PCs as a primary focus.Walmart

270、 will work with suppliers Dell and Zebra to understand the footprint of their devices.“Im going to find out what Im consuming when Im operating those devices.”Wallaces team will break down the data by re-gion and by domain once its compiled.Then her team will look at what measures can be put in plac

271、e to reduce the emissions from devices.For example,device power saving policies could be put in place.“What do you do as far as influencing your vendor partners in your sourcing team to make those sustainability decisions?Because at the end of the day,80%(of the device carbon footprint)is really bel

272、onging to them.”DENISE WALLACE Director of Technology Support for Logistics and Client Services Walmart Canada Tech Trends 2023|44ESG Analytics and Reporting Info-Tech Research Group/WHATS NEXT?Multiple jurisdictions following IFRS standards There has been a great deal of consolidation between stand

273、ards bodies in the last year.The publication of two draft standards by the Interna-tional Sustainability Standard Board(ISSB)in March 2022 could influ-ence how mandatory disclosure regimes evolve.The advantage to the industry of this standard is that the ISSB framework is modeled after the IFRSs acc

274、ounting rules,which are widely adopted,enabling organi-zations to leverage existing infrastructure and consistent performance reporting across financial and non-financial risks(IFRS).IN THE USIn 2023,the SEC will require large,accelerated filers companies with more than$700 million in the hands of p

275、ublic investors to start cap-turing information on climate disclosures to be filed in 2024.Filers that have$75-$700 million in public investment will start capturing infor-mation in 2024 and file in 2025.Small reporting companies will start capturing information in 2025 to be filed in 2026(Federal R

276、egister,2022).IN THE EUThe EU Corporate Sustainability Reporting Directive was adopted in October 2022.Companies“start reporting under the directive starting in 2024”(reporting in 2025 on 2024 data).It applies“to all companies listed on the EU regulated markets except for micro-companies.Small and m

277、edium-sized enterprises(SMBs)have until 1 January 2026 to comply with the report requirements.”An opt-out clause could buy some companies time until 2028.The estimated impact is that“49,000 EU companies will be required to report on sustainability information in the future,compared with 11,600 compa

278、nies at present”(EY,2022).“For non-European companies,the requirement to provide a sustainabil-ity report applies to all companies generating a net turnover of 150 million in the EU and which have at least one subsidiary or branch in the EU.These companies must provide a report on their ESG impacts,

279、namely on environmental,social and governance impacts,as defined in this directive”(Council of the EU,2022).Tech Trends 2023|45ESG Analytics and Reporting Info-Tech Research Group/RECOMMENDATIONS AND RESOURCESSocialize the new reality and prepare to report INFORM Understand the pending regulato-ry s

280、hift and how it will affect your organization.Educate your execu-tives and board about the risks.CONDUCT A GAP ANALYSIS Identify the data gaps that will prevent you from satisfying all stakeholders.New SEC require-ments around ESG reporting re-quires electronic tagging of climate-related disclosures

281、 to iXBRL.Survey solutions will help fill those gaps.PREPARE TO REPORT Start doing the upfront work re-quired to surface the data needed to report on your organizations carbon footprint in a way that will satisfy external auditors.Shore up your supplier relationships and start the discussion on how

282、they can help you report scope 3 emis-sions those which are created by the products and services that you consume and that you sell.INFO-TECH RESOURCESESG Disclosures:How Will We Record Status Updates on the World We Are Creating?Read this executive brief to learn about the upcoming environmen-tal,s

283、ocial,and governance(ESG)reporting mandates,what to do to prepare for them,and what they mean for IT ESG Imperative and Its Impact on OrganizationsAn organizations approach to ESG cannot be static or tactical.It is a moving landscape that requires a flexible,holistic approach across the organization

284、.Cross-functional coordination is essential to be ready to respond to changing Reporting categoryFind and compare vendors that of-fer solutions to help manage your operational data,evaluate your im-pact on the environment,and pro-vide reporting to perform Trends 2023|46Zero-Trust SecurityInfo-Tech R

285、esearch GroupThe shift from securing network boundaries to a focus on verifying users,assets,and resources.ZERO-TRUST SECURITYZERO-TRUSTSECURITYZERO-TRUSTSECURITYThe shift from securing network boundaries to a focus on verifyingusers,assets,and resources.The shift from securing network boundaries to

286、 a focus on verifyingusers,assets,and resources./IMAGINE ZERO-TRUST,0,NULL,KNOCKOUT,SHADOW PEOPLE,-HD-AR 17:22/IMAGINE ZERO-TRUST,0,NULL,KNOCKOUT,SHADOW PEOPLE,-HD-AR 17:22/IMAGINE ZERO-TRUST,0,NULL,KNOCKOUT,SHADOW PEOPLE,-HD-AR 17:22Tech Trends 2023|47Zero-Trust SecurityInfo-Tech Research GroupThe

287、number of software sup-ply chain attacks over the past couple of years is on the rise and the impacts are serious.State-sponsored criminal actors are seeking to disrupt critical infrastructure by targeting soft-ware that is widely used in the industry.These groups have the sophistication and resourc

288、es to identify zero-day vulnerabilities.Attacks of this nature have proven disruptive to critical infrastruc-ture such as gas pipelines and gov-ernment services such as public transit.The exploits are used to deliver ransomware payloads or other malware.To defend against the threat vec-tor,the indus

289、try is turning to the concept of a“zero-trust network.”The original concept was formally established by security researcher John Kindervag in November 2010 when he authored two whitepa-pers.Its three core concepts held:1.There is no longer a distinction between a trusted and un-trusted interface on

290、security devices.2.There is no longer a trusted and untrusted network.3.There are no longer trusted and untrusted users.(Infose-curity Magazine,2019)In the US,President Joe Biden re-sponded to the rising software supply-chain attack threat by requiring federal government departments and agencies to

291、adopt zero-trust architecture as defined by the National Institute of Standards and Technology.This security model acknowledges that threats exist both inside and out-side traditional network boundar-ies.It requires continuous verifi-cation of the operational picture using real-time information from

292、 multiple sources to determine ac-cess and other system responses.“In essence,a Zero Trust Architec-ture allows users full access but only to the bare minimum they need to perform their jobs”(White House,2021).Government and critical infra-structure may be the targets of these campaigns,but theyre n

293、ot the only victims.Any organiza-tion that uses the affected soft-ware suffers collateral damage.Once an exploit for any widely used piece of software is available,other financially motivated hack-ers will use it to target a wide array of potential victims.IT professionals are most con-cerned their

294、organizations will be disrupted by cybersecurity incidents compared against oth-er potential sources of disrup-tion.Slightly more than half of respondents said it was likely or very likely that a cybersecurity incident will disrupt their busi-ness in 2023.Disruption from new government-enacted regul

295、ation was the area of next-most concern with 40%saying it was likely or very likely to disrupt business.PERCENTAGE OF RESPONDENTS WHO SAID LIKELY TO DISRUPT THEIR ORGANIZATION IN 202350%Cybersecurity incidentsGovernment-enacted policy changeRegulatory changes Established competitor attains better ma

296、rket positionNew player enters the market with unique value proposition21%40%34%18%Zero trust means full access at the bare minimum“With attacks continually on the rise,a zero-trust security model acknowledges that threats exist both inside and outside traditional network boundaries.It requires cont

297、inuous verification from multiple sources to determine access and other system responses.”Tech Trends 2023|48Zero-Trust SecurityInfo-Tech Research GroupDespite their high concern with cybersecurity incidents disrupting their business,IT profes-sionals identify a couple of major challenges that will

298、prevent them from with dealing with the issue in the year ahead.SHORTAGE OF TALENTFirst of all,organizations may not have the grassroots talent nor the executive awareness required to deal with cyber threats.According to our survey,54%are concerned that talent shortages will lead to capacity constra

299、ints in cybersecurity.Another 46%are concerned that cyber risks are not on the radar of the executive leadership or board of directors.These two cy-bersecurity issues were the top concerns of pro-fessionals above all others,ranking just ahead of supply chain risks related to cyber threats.IT profess

300、ionals are more worried about their internal competency issues than they are with the actual threat itself at the moment.Unfor-tunately,it doesnt look like theyll receive new resources to change matters.BUDGET CONSTRAINTSThe second concern is that many organizations will not have more budget to help

301、 surmount their resourcing issues.While slightly more than half of organizations(53.5%)indicate they will increase the amount they spend on securi-ty next year,many will be either spending the same amount as in 2022(41.5%)or decreasing spending(5.1%)./SIGNALS Zero trust implementation on minimal res

302、ourcesRATE HOW CONCERNED YOU ARE ABOUT EACH OF THE FOLLOWING CYBERSECURITY ISSUES:54%Talent shortages leading to capacity constraints in cybersecurityCyber risks are not on the radar of the executive leaders or board of directorsSupply chain risks related to cyber threatsNew government or industry-i

303、mposed regulationsChanges to cyber insurance policyOrganization is not prepared to respond to a cyber attackIT/OT security convergenceLack of compliance with external frameworks(e.g.NIST,ISO)39%38%34%46%43%37%39%FOR THE NEXT FISCAL YEAR,HOW DO YOU ANTICIPATE YOUR ORGANIZATIONS SPENDING ON CYBERSECUR

304、ITY WILL CHANGE COMPARED TO THE PREVIOUS YEAR?A DECREASE OF MORE THAN 10%A DECREASE OF BETWEEN 1-10%ABOUT THE SAMEAN INCREASE OF BETWEEN 1-10%AN INCREASE OF MORE THAN 10%39%41%14%2%3%Tech Trends 2023|49Zero-Trust SecurityInfo-Tech Research GroupHEIGHTENED GEO-POLITICAL TENSIONS Modern warfare is mor

305、e likely to see opponents wield cyber threats than guns or tanks.When conflict does become a full-fledged assault,cy-ber attacks preempt the physical attack to de-stabilize the enemy first.Before Russias tanks rolled into Ukraine,its cyber attacks compro-mised Ukrainian critical infrastructure and d

306、isrupted communications networks(Canadi-an Centre for Cyber Security,2022).COST AND CONSEQUENCE OF RECENT BREACHESBreaches have become more expensive as ran-somware payloads are a popular choice among cyber criminals motivated by profit.Paying a ransom to regain access to organizational data and sys

307、tems is a common outcome.After cyber insurance providers started hiking rates and requiring more security controls be in place to qualify for their coverage,the cost of insur-ance against such attacks is also higher.Suc-cessful attacks also cost an organization that suffers downtime related to an at

308、tack.Often days or weeks can pass before an organization is able to make a complete recovery from a net-work breach.COMPLEXITY OF SOFTWARE SUPPLY CHAINS Its difficult for organizations to even know exactly what software is deployed in their en-vironments,and therefore,from which known vulnerabilitie

309、s they suffer exposure./DRIVERSCostly recovery from cyber warfares collateral damageTech Trends 2023|50Zero-Trust SecurityInfo-Tech Research Group/ATTACK OPPORTUNITY PROTECT FROM RISKGather external resources,assign accountabilityAPPLY AN ENTERPRISE RISK MANAGEMENT FRAMEWORK TO CYBERSECURITY This is

310、 an effective way to assess how cybersecu-rity is managed by the organization as a whole.Fundamentals common to these frameworks establish the capabilities needed to support the organization in managing risk,determining its appetite for risk,and determining risk severity and priority.DESIGNATE A CIS

311、O If the organization doesnt already have a role that is accountable for cybersecurity and is at a high enough position in the firm to clearly communicate to the board of directors in an unimpeded manner,its time to create that role(ISACA,2022).GET THE BOARD INVOLVED New regulations being introduced

312、 by the SEC require organizations to demonstrate how their board of directors effectively manages cybersecurity risk.That means the board must include expertise in cybersecurity or hire expert advisors.OPEN-SOURCE FRAMEWORKS AND TOOLS ARE FREE TO USE Developers looking to build modern security appro

313、aches into their software dont need to spend money or hire a security engineer.Open-source solutions such as Sigstore and frameworks such as The Update Framework provide solutions to protect against software supply chain attacks.MAKE USE OF GOVERNMENT RESOURCES Federal governments in many different

314、jurisdictions are recognizing that poor cybersecurity poses a risk to a countrys critical infrastructure and economic produc-tivity.In response,many offer cybersecurity centers that provide security alerts,guidance on improving cyberse-curity,and tools and services to help.MAKE SECURITY A FEATURE Av

315、oiding data breaches and being proactive on cyber-security protections can improve your organizations reputation.In a time when most consumers have seen their personal information breached multiple times,promising them a secure experience is valuable.OPPORTUNITIESRISKSTech Trends 2023|51Zero-Trust S

316、ecurityInfo-Tech Research Group/CASE STUDYEdgeless Systems secures its software delivery pipelineSITUATION Edgeless Systems caters to customers in in-dustries that deal with highly sensitive data such as financial services and healthcare.Its Constellation solution allows companies to use public clou

317、d resources in a secure fashion by using a Kubernetes cluster built on virtual machines to offer confidential computing an environment where computing can be done se-curely without risk of interception or snooping by a third party.Aware of the recent risks seen in the software supply chain,Edgeless

318、Systems wanted to im-prove the security of its own solution for cus-tomers.Existing approaches to providing this type of assurance involve working with exist-ing certificate-issuing authorities.But that process requires managing highly sensitive keys and is cost prohibitive.Instead,Senior Security E

319、ngineer Fabian Kam-mel suggested using Sigstore,from The Linux Foundation.Available both as a service and as an open-source repository,the Sigstore solu-tion combines three components to sign code,verify signatures,and monitor activity.Meant to provide security for open-source software,Edgeless Syst

320、ems deployed it for Constella-tions command line interface and the mea-surements of its node images.ACTION Using Sigstore meant Constellation didnt have to invest in key management.All thats required is a way to prove you own the email account youre using to sign the software.The developer simply lo

321、gs in and signs their code.“Its great,helping the average Joe make soft-ware more secure,”Kammel says.Sigstore brings together three different ser-vices in its solution:Fulcio,Cosign,and Rekor.Fulcio signs the code,Cosign verifies the sig-natures,and Rekor monitors the activity using a publicly avai

322、lable and transparent log.The combination of services creates a safe chain of custody for open-source software in one seam-less package.In addition,Constellation also implemented The Update Framework(TUF),which is hosted by The Linux Foundation.It helps developers maintain the security of their soft

323、ware update systems against attackers who aim to compro-mise the core repository or signing keys.TUF adds verifiable records using metadata that can be used to authenticate update files.It works in the background of a software update system in an automated fashion.RESOLUTION Edgeless Systems has pro

324、tected its client base against attacks that alter its code base between the repository and compilation.Its further as-sured them that the updates they receive will not be altered to be an older version in disguise,leaving them open to discovered vulnerabili-ties.It eventually chose to switch from Fu

325、lcio to a key-based certificate management authority,but Sigstore is flexible enough that it can still use the other two components for signing and verification.“Our product aims to remove the cloud provider from the trusted compute base therefore we decided having a long-term private key better sui

326、ts our security concept,”Kammel says.“I am very happy with Sigstores architecture,they decoupled their features nicely.So,I still get the benefit of using Cosign and Rekor while bringing my own key.”From a broader perspective,components like Sigstore and TUF(which was created a decade ago)are among

327、initiatives improving the secu-rity of supply chains.But the solutions do re-quire integration into software to be effective.Sigstore is currently in beta and collaborating with major open-source contributors such as Google,Red Hat,VMware,and Cisco.Micro-soft-owned open-source repository communi-ty

328、Github officially adopted Sigstore to verify all JavaScript and TypeScript npm packages in August.Despite its sponsorship from large companies,Sigstore makes clear its currently run on a best-effort basis.So,the threat of the service not being available one year from now may scare away some enterpri

329、ses.But the way to mitigate that risk is to simply download the Sigstore open-source code and run the service yourself.“Once we get the integration of all these dif-ferent tools,we can get a very secure software ecosystem over the next few months or years,”Kammel says.Whether the integration will be

330、 achieved on a widespread basis is the big question.“We are selling a security product,so we need to make sure that between when we build the product and when it reaches the customer,no one attacks it along the way.”FABIAN KAMMELSenior Security Engineer Edgeless SystemsTech Trends 2023|52Zero-Trust

331、SecurityInfo-Tech Research Group/WHATS NEXT?The rise of confidential computingIn Info-Techs 2021 Tech Trends report,we featured the self-sovereign cloud trend.The concept is that organizations will look to maintain the maximum control over their infrastructure even as they extend out into cloud envi

332、ronments.One way they will achieve this is with a new type of architecture that allows data to remain encrypted while being pro-cessed.Previously,end-to-end encryption meant that data was encrypted only while at rest and while in transit.Now it can be encrypted while in use.The capability is now bei

333、ng broadly referred to by confidential computing.Using a trusted execution environment for processing that is software defined,confidential computing will be a public cloud enabler for many highly sensitive industries such as healthcare and government.The Linux Foundation formed the Confidential Computing Consortium in 2022,attracting membership from major technology providers:Arm,AMD,Cisco,Google