By Michael Mansfield, CFPS, CIPT, CIRT II, RRE
UL Recognized Risk Engineer, CNA
Today’s technology companies set the standard of innovation. To keep up with this evolving pace, it’s critical to position your business as a leader in the industry. Here are six key trends that we see as game changing and influential in the technology industry that will help catapult your business to the next level in 2016 and beyond.
Trend #1 - Internet of Things
The Internet of Things is likely much larger today than anyone would have predicted when the first ATM went online in 1974. Now, the Internet of Things includes thermostats, cars, light bulbs, clothing, pills, and yes even toilets... In 2006, there were 2 billion objects connected to the internet, and some estimates project that there will be 200 billion by 2020, with an estimated market cap of $1 trillion. The growth of this segment has been spurred by decreasing processor costs, an increase in bandwidth for transmitting data, and our desire to capture data. The increase of connected devices is creating advantages for the businesses that can capture, analyze, and act on the data being collected. Currently, the two hottest markets are business/manufacturing and healthcare.
Trend #2 - Mobile Devices in Commerce
Odds are you probably used your smart phone to research, price compare, and even purchase gifts this past holiday season. Google’s shopping related searches on mobile have grown more than 120% year-over-year, and smart phones were the device of choice for shoppers on Black Friday this year accounting for 44.7% of all traffic vs. 42.7% and 12.5% for desktops and tablets respectively. For the first time ever more shoppers purchased goods online compared to shoppers purchasing goods in traditional stores over the Black Friday weekend (103M vs. >102M people). This is great news for mobile developers as it suggests that both online and traditional stores need to adjust their marketing strategies to match current trends. Throughout 2016, expect retailers to work closely with mobile partners to help better position their products in the marketplace.
Trend #3 -Safe Harbor Developments
Internationally data transfer agreements took a hit in 2015. The Safe Harbor framework, which permitted the international transfer of EU member nation citizens’ personal data, was ruled invalid by a European Union Court last October. Despite the ruling’s directive to develop an acceptable Safe Harbor alternative, little has been worked out other than establishing a basic time frame to come up with a solution. In the meantime, companies possessing Safe Harbor status remain capable of conducting European business without incurring regulatory fines and penalties. The U.S. has until the end of January 2016, to come up with an acceptable alternative to protecting the personal data of EU citizens, a solution generally referred to as “Safe Harbor 2.0”. If an agreement between the U.S. and the European Commission is not reached, then European data protection authorities have threatened enforcement action. Any business conducting work that involves transferring the personal data of any EU citizen to the US, and/or any U.S. company that works within the EU is impacted by the Safe Harbor ruling. Right now, the exact impact and future direction is uncertain. Stay attuned to news as this item develops in 2016.
Trend #4 - On Demand Economy – Continued Growth of Cloud
Technology has played a major role in creating the landscape we see today with the on demand economy. Consumers want access to on demand services like music, television, rides, etc. Amazon is now offering Prime Now in 16 metro areas – Chicago included. Uber has continuously added drivers and increased revenue from $2B in 2015 to an estimated $5B in 2016. This increase in on demand service is also relevant in the enterprise sector, and is tied to the continued growth of cloud. The use of cloud is not an emerging trend – it is something we have watched for years now. Global SaaS market is projected to grow from $49B in 2015 to $67B by 2018. Providers in the software and platform markets are all seeing growth as products and services are being required on demand.
Trend #5 -Machine Learning Picks Up
For years now we have talked about the applications of big data, but a lot of the data collected has gone straight into storage with limited analysis and real time use. Can machine learning help us digest the large amount of data available to us today?
Machine learning is a concept that will continue to be developed in 2016. In 2015 we saw machine learning toolkits released by Microsoft, Google, IBM, and Amazon. These kits have created an open source testing playground for developers in the machine learning segment. So many big names in the machine learning business clearly show that this segment will be a focus moving into 2016 for many of these businesses either through organic growth or the purchase of smaller companies specializing in the space. Could this be the year that machines make thoughtful decisions and predictions for us?
Trend #6 - Security Assessments
Do you know what type of data, number of records, and where they are located in your organization? Year after year data breaches have escalated in cost and impact. In 2015 we saw high profile breeches by Anthem, Premera Blue Cross, Vtech, Experian, and Ashley Madison. Each breach had its own unique characteristics that included stolen credentials, phishing, malware, and potential inside assistance. In 2016, all companies have to be more diligent about knowing the extent of their data as well as implementing their information security programs. Getting a handle on your organization’s vulnerabilities and potential costs can be a sobering, but necessary, reality to be prepared for what some experts say is inevitable. It is especially important for startup and small businesses that require investment commitment from venture capital groups because a breach could cost you future investments. A committed and ongoing focus on understanding and protecting data is required for businesses today.
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