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Tuesday 12 December 2017

**NEW RESEARCH** Predictions 2018 - Enterprise Software

imageThe TechMarketView 2018 research theme of Breaking the Boundaries reflects the need for drastic change by enterprise software suppliers if they are to meet the needs of their customers who want straightforward ways to derive the insight needed to move their businesses forward. However, many customers are trapped within the confines of traditional applications where functional silos, hierarchical architectures and hard coded approaches to processes reinforce rigid business operating models.

Breaking customers out of this restrictive architecture and patterns of behaviour (while retaining much of the value of existing investments) is the task facing software suppliers. That task is made more difficult because although enterprises intuitively understand the need to invest to take their place in the data and event driven digital business world, many struggle to find a pathway, quantify the value of large scale digital investments and imagine new possibilities.

We see the following factors driving enterprise software activity during 2018:

Machine intelligence makeover to boost mainstream adoption.  Machine intelligence already needs a makeover if it is to generate substantial revenue through mainstream adoption because its presentation to market has been technically focussed and lacking sufficient proof points about the business benefits achievable when properly understood and implemented. We anticipate a maturity leap in 2018 and beyond as software suppliers apply themselves to the usability and business use cases of machine intelligence via intelligent applications.

Intelligent features will progress towards intelligent applications. Currently, we have intelligent features rather than intelligent applications (IAs). Chatbots and digital assistants are a long way from complete IAs but they are important in breaking open machine intelligence revenue streams, providing a non-threatening entry point into IA and machine intelligence for enterprises and individuals, while hinting at what could be achieved. What is particularly significant is that they will start to demonstrate how machine intelligence can augment individuals’ activities, showing how people and bots can operate as co-workers, while also serving as ‘land and expand’ opportunities for software suppliers.

Increased focus on distributing and monitising algorithms. Algorithms underpin intelligent applications, providing the capability to unlock the value from data. Understanding and deploying them is one thing, monetising them is another. Suppliers also have the opportunity to think about new value propositions and strategies around the creation and distribution of algorithms and other services and related delivery models such as Machine Learning-as-a-Service.

Commitment to convergence, collaboration and trusted chains. Operating successfully in the digital world requires organisations to look outside their four walls and take part in a highly networked, converging and collaborative ecosystem where is it critical to trust and be trusted. It also means exploring different types of collaboration such as swarm AI and hive minds.

Bringing on a new class of ‘super professionals’. Future skill requirements are one of the ‘known unknowns’ of digital transformation so fostering continual learning among employee bases to keep up to date with rapidly moving developments will be imperative. Organisations need ‘super professionals’ – individuals adept in the art of change who have the ability to repeatedly adapt to the evolving unknown in terms of skills and job functions. These super professionals need to be identified and nurtured now.

Enterprise Software Predictions 2018 provides a deeper dive into these topics and the report is now available for download by eligible subscribers. If you’re not a current subscriber please contact Deb Seth for details of how to take one out.

Posted by Angela Eager at '09:57' - Tagged: software   predictions   machineintelligence