Information technology (IT) innovation in an enterprise involves using

technology in new ways to create a more efficient organization and improve

alignment between technology initiatives and business goals.
IT innovation can take many forms. For instance, it can be used to
turnbusiness processes into automated IT functions, develop applications that
open new markets, or implement desktop virtualization to increase
manageability and cut hardware costs.
Many companies try to institutionalize the process of innovation by creating
innovation teams from diverse segments of the company. Other firms rely on
individual employees to flourish in an environment where innovation is
encouraged.
Some CIOs and other senior IT executives are finding that they are
increasingly spending more time on developing and fostering IT innovation. IT
innovation can be difficult to measure, so many companies equate IT
innovation with the return on investment (ROI ) of IT spending.
let me suggest we consider three different kinds of innovation, each with its own metrics.
Incremental innovation might be best captured by the saying, cheaper, thinner, faster and, of
course, more features.
For example, just look at the parade of L.C.D. televisions over the last few years, or digital cameras or
cell phones. Incremental innovation is the mainstay of consumer electronics and many other
consumer goods. It can be easily measured by looking at how much revenue each year is produced by
new products versus legacy products.
These kinds of innovations are both predictable and are important for our economy. Although it is
easy to measure the consequence of an incremental innovation, the progenitors behind them are
often hard to determine they can be suppliers, customers, or the companys own internal R&D.
Architectural innovations are often deeper and more surprising than the incremental kind
since they involve a restructuring of the very building blocks of a product family, industry, or
infrastructure.

Consider, for example, voice over I.P. (V.O.I.P.) such as is being used by Skype, or the most recent
announcement from I.B.M. on their new memory system called racetrack, or Googles cloud
computing. Each of these is changing the game and can be measured by the degree they transform
the core competencies required to make, service, and deliver them and the degree they disrupt
current business models. Perhaps V.O.I.P. is the clearest example of such.
Disruptive innovations are perhaps the most interesting, at least from a societal point of view.
Many students of innovation question if something can even be called a real innovation if it doesnt
end up altering social practices.
Consider, for example, how the cell phone, digital camera or the personal computer, as products or
the world wide web, as a service have slowly but surely transformed how we live, work, learn, and
socialize. These innovations cause us to see and interact with the world differently.
Metrics for such innovations are tricky, since social practices evolve slowly and surround us
continuously, and thus become our frame of reference. It is not until we are abruptly forced to put
them aside that we become aware of how much they have been shaping our lives.
But the types of innovation we have mentioned thus far miss perhaps the most fundamental kind
and the least appreciated kind of innovation perhaps precisely because these innovations are so
fundamental.
Lets call these institutional innovations, because they actually enable society to function.
In periods of stability they are barely noticed since they are simply considered the way things are.
Ask yourself this question:
What innovation over the last several hundred years has led to the most wealth creation?
I was once asked this by a group that was hoping I would say it was the microprocessor. But no, my
guess was that it was the creation of the modern corporation (Ltd. in the U.K., Inc. in the U.S.).
The great innovation in the modern corporation was ownership without liability. This allowed shares
to be sold on an open market and, unlike other forms of ownership, limited a shareholders liability
to the price paid for the shares and nothing more. This made it possible for ordinary people to
become investors.
My goal here is not to argue that I was right, but rather to suggest that institutional innovations tend
to have pervasive and subtle influences on our lives. And in periods of great change, like now, they
may well have more impact on us than any other kind.

For example, consider the impact that open source software license B.S.D. used for Linux is having,
or the copyleft (institution) used by Wikipedia, or the creative commons licensing regimes, or the
global process networks of Li & Fungs apparel operations around the globe.
These institutional innovations are just the tip of the iceberg of what we will see and need in our age
of accelerating change.

----------------------------------------------------------------------------------------------------------------------------------------- The Internet of Things, big data, cloud and cyber security will continue to
dominate the IT landscape in 2015 but what effect will they have?

Technology was dominated by several prevalent trends in 2014 from the Internet of Things (IoT)
and big data to the cloud and cyber security, it seems like there was barely a day without one of
these trends creeping up in the news.
Now we have entered 2015, these trends are still at the forefront of discussion, with many exciting
opportunities, innovations and iterations being predicted for this year.

1. Internet of Things investment will continue to increase

In 2014 there was a rapid increase in IoT solutions being deployed to advance business intelligence.
ABI Research reported a 20% increase in IoT connected devices in 2014 from 2013. This year, Cisco
predicts there will be 25 billion connected devices, which will double to 50 billion by 2020.
Information Age suggests IoT will revolutionise business by allowing companies to improve value
propositions, engage with customers on levels previously unavailable and build entirely new revenue
streams.
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So far, investment in IoT has mainly come from the IT and telecoms industry, which will naturally
benefit from the increase in data generated and application capabilities for mobile devices. In 2015,
spectators predict investment in IoT will increase outside this industry. The retail industry is one
sector in particular that is looking to tap into sensor data generated via wearable technology to
provide highly targeted products and services to their customers.
As businesses look to IoT technologies to provide more insight, there is an ever-increasing demand
for analysts capable of transforming IoT data into actionable business intelligence. There is a
shortage in data scientists, for example, with positions increasing in the UK by a staggering 1005%
over the last two years. This makes data science one of the fastest growing and in-demand
professions in the UK to date, and is predicted to increase further going forward into 2015.

2. Big data requires big investment in infrastructure and

skills
Big data as a concept is ever evolving as the capacity to mine structured, semi structured and
unstructured data increases. In 2014, organisations were making more informed business decisions
and becoming more intelligent as they interact with their customers. For example, more sophisticated
recommendation engines anticipating users interests more accurately for services such as Netflix,
Amazon and Google. Further, credit reference agencies have been using big data to inform on
lending decisions by developing the algorithms used to generate credit ratings. Retail, logistics and
budget planning have all seen significant advancement last year due to greater business intelligence.
In 2015, spending on big data related software is expected to increase to around 80 billion globally
as reported by the IDC. IoT will become the next critical focus for data and analytics services with
IDC predicting 30% CAGR over the next five years. The increasing influx of data available to
organisations will require the infrastructure being used to house, process, analyse and visualise
intelligence to expand. The IDC predicts that rich media analytics will be the driver behind many big
data projects, expecting this area to at least triple in size.
The increased demand for greater sophistication in analysis and data consumption will require
organisations to refine talent acquisition strategies to compete in the skills gap. A recent survey of
300 UK businesses, conducted by SAP, showed that while 92% of organisations have seen their
data grow over the last 12 months, most were experiencing barriers when trying to use the
information. Further, 42% of organisations saw lack of time and resource as the biggest challenge
and 75% believed new data science skills are needed within their organisation.
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3. More business operations will gravitate to the cloud

2014 was another big year for cloud computing. The IDG Enterprise Cloud Computing Study found
that 69% of firms participating had at least something in the cloud, up 8% from 2013. The reason
behind the movement to cloud-based operations are numerous, from IT agility to IT innovation and
employee collaboration, cloud computing is becoming the hub for operational infrastructure. Big data,
generated through IoT, is an important driver for organisations to move to the cloud.
This year, there will be greater adoption of cloud and in-house/cloud hybrid hosted operations among
businesses. The IDG study also found that 61% of organisations will invest in emerging technologies
to improve their existing cloud solutions. Technologies such as software-defined networking (SDN)
and network functions virtualisation (NFV) are being looked into to give greater agility to cloud
investments.

4. Cyber security industry must invest in skilled talent

2014 is now being dubbed the year of the breach and it is not difficult to see why. Last year sensitive
data was being leaked at Google, Apple and most recently at Sony, to name but a few leading tech
giants. Security weaknesses have been marked down to a number of key areas such as
misconfiguration issues, third party providers, lack of network diversity and most worrying of all, lack
of qualified security talent.
The cyber security skills gap is perhaps the underlying issues behind the the year of the breach
having a knock-on effect on industry and the economy. Cyber security skills are a global priority but,
with a lack of consistency in accepted career definitions, organisations are experiencing difficulties in
attracting new talent and progressing existing professionals. To offset the skills deficit, talent from the
gaming industry are being brought into the security sphere and their skills adapted for this arena.
Now in 2015, the information security industry has an opportunity to re-define itself and build on the
negative global coverage it observed last year to attract new talent. Investment, employment
branding and clearly defined career paths are essential if organisations are to reduce the deficit in
the skills gap and avoid seeing their own brand in the papers due to the latest leak.
The Internet Systems Security Association (ISSA) identified the need for an internationally accepted
framework that would define the cyber security career for individuals in the profession. To attract new
entrants and so that pros can advance in their career, ISSA have developed the Cybersecurity
Career Lifecycle (CSCL). This pro-active approach to industry development could go a long way to
help fill the estimated 300,000 to 1,000,000, and rising, currently vacant global cyber security
positions.
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As we look forward to the year ahead there are many fantastic opportunities in IT to look forward to
from the existing trends of 2014 to the emerging technologies yet to be discussed. The IT industry is
growing at an exponential rate, with demand, investment and technological capability the three pillars
of support driving the sustainability in growth.
However, the barriers to the industry are clear and present dangers. The shortage in skills and talent
capable or realising the expectations for these pressing technologies must be addressed on an
educational, cultural and organisational level.
Nurturing computing skills must be as core to the UK syllabus as English, Math and Science to
provide the next generation with the tools that they will need in their future careers, no matter the
profession.
Culturally, there appears to be a strong requirement to make a career in IT more attractive to young
women. A study by the Joint Council for Qualifications found less than 8% of last years A' Level
computing students were female and declining still. From a total of 4,171 students studying

Computing, only 314 were female. That's a 75% decrease over the last 10 years. These figures are
concerning to say the least with the skills gap in this sector increasing.
Sourced from Mark Braund, CEO, InterQuest Group
In 2015 the proliferation of devices, big data, and the digital native generation will shape the cyber
security concerns of enterprises

With the New Year fast approaching, all businesses are looking ahead to their priorities for 2015, and
if this past year has taught IT departments anything, its that data security needs to be high up on the
agenda. Weve seen business such as eBay and Adobe, and even celebrities like Jennifer Lawrence,
learn the hard way the harm a data breach can cause.
For businesses looking ahead to 2015, a security mishap, or even a potential data breach, can derail
even the most important of projects. So what has 2015 got in store that could impact business data
security? Take a look below to find out:
EU general data protection regulation
Businesses may think they have a future proof IT strategy in place, but substantial regulation
changes on the horizon will force a considerable rethink. The EU Data Protection Regulation which
should come into force in 2017, will ramp up businesses' responsibility for data security, increasing
sanctions for mishandling it. In short, this means fines of up to two per cent of a businesss annual
global turnover and possibly a requirement to report a breach within 24 hours.
> See also: Is 2015 the year cyber security shows its human side?
This has ramifications for any strategy that is based around data - like BYOD, storage, internet of
things and cloud. Because the changes in law are radical, organisations will have to work hard in
2015 to have a chance of complying and avoiding substantial fines when the new laws come in.
Big data innovation
2015 will see even more businesses take advantage of the power of the data they hold. From using
analytics to gain greater business insight, to schemes such as the NHS care.data initiative,
organisations are doing more with their big data. However, due to the numerous data breach stories
in the press, many organisations are unwilling to engage in innovative data schemes for fear of it
increasing the chances of a data leak, as demonstrated by the difficulties care.data has run into. For
many, theres a lot at stake if this goes wrong: reputation, the risk of heavy fines from the ICO, and
public outcry that could put a halt on any progress already made.

What we could see in 2015 is innovation being stifled by data leak worries, and to avoid this
organisations should think about data security at the start of the project, and ensure it is incorporated
throughout its life cycle. This needs to take into account every aspect of the project, from the devices
being used to the platform that is accessing this data.
(Even) more mobile
While this has been a trend for the last couple of years, the increased use of mobile devices by
employees is not slowing down. Whether an employee-owned (BYOD) or corporately owned and
personally enabled (COPE) device, the growth in devices means a corresponding increase in
endpoints, all of which are potential security vulnerabilities.
With the proliferation in device types, form factors and operating systems, its even more important
that whatever security solution is in place is device agnostic, and able to cope with any type of new
technology. That way firms are able to take an employee rather than device centric approach to data
security and device management.
Changing devices
In 2014 we saw mobile devices starting to do more, with the contactless payment and fingerprint
recognition technology in Apples latest devices an example of this. What were going to see in 2015
is an increase in what mobile devices are capable of doing. For example, Apple's Touch ID
fingerprint scanner has so far been used to unlock the handset itself and as a verification tool when
making purchases through Apple's App store. However, now that iOS8 has made this functionality
available to third party developers, users will soon have the ability to unlock a greater range of apps
via their fingerprints.
While this example could have additional security benefits, its an example of device features rapidly
expanding beyond what IT departments are comfortable with. In the wider business environment,
firms need to be on their guard, and consider exactly what impact these new features will have on
the way corporate data is stored and accessed. Contactless payment, face scanning and interaction
with wearable devices are all features well be seeing in 2015, but could be easily circumvented by
hackers, or leave data open to leaks if theyre not made part of the wider device security strategy.
Generation Z
The recent iCloud hack and subsequent leak of intimate photos of Hollywood celebrities has made it
clear that even the young, rich and famous arent immune to data loss. The fatal mistake these stars
made was to forget that data, be it an email or photo, isnt static. More often than not it goes straight
to the cloud, where in theory it can be accessed from anywhere. The question for 2015 is how savvy
the next generation of digital youngsters are going to be. They may know how to use the latest apps

and devices, but they havent had the training and experience to consider what happens to this data
in the cloud.
> See also: 2015: the year of the exploit
The next few years will reveal the impact of these digital natives on sensitive corporate data. If they
take a laissez-faire attitude to corporate data and dont consider what might happen to it when it is in
the cloud, firms will end up facing serious data breaches. When businesses start realising this, well
see them taking a more serious approach to training their younger staff about data security so that it
keeps up with their wider digital skills.
The corporate IT environment is changing faster than ever, fuelled by wider changes in consumer IT.
Businesses clearly want to take advantage of the benefits that they can offer, but now more than ever
data security needs to remain at the heart of these initiatives.
With upcoming laws like the EU General Data Protection Regulation making the consequences of
data breaches more serious than ever, lets hope 2015 sees data security move up the list of
priorities.
Stephen Midgley, VP Global Marketing, Absolute Software
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