Tag: Gartner

  • De-hyping the hype cycle

    De-hyping the hype cycle

    One of the useful tools in describing how technology is accepted by the market and society is the Gartner Hype Cycle.

    Developed by the consulting firm, it describes the typical pattern of a technology product where at first it is ignored, then hyped before falling into the ‘Trough of Disillusionment” before maturing to find a productive role in the marketplace.

    The curve though isn’t perfect – many products crash without making the ‘plateau of productivity’ and every technology has its own unique timeframe. Gartner’s role as technology analysts as commercial considerations come into play as well.

    Given those imperfections, it’s worthwhile tracking how some of the technologies did on the hype cycle and how Gartner’s predictions went and on Imgur, Anton Tarasenkno has posted all the the Gartner end of year hype cycles from 2000 onwards to give us that opportunity.

    PDAs and Smartphones

    The ‘Personal PDA’ illustrates how technologies evolve and the original concepts become a dead end.

    In 2001, the Personal Digital Assistant – devices like the Palm Pilot, Sharp Zaurus and HP iPac – were the productivity must have for connected workers and Gartner flagged them to be on the ‘Plateau of Productivity in between three to five years.

    They never made it. The entire category crashed due to to poor product releases, confusing software wars – the buggy mess that Microsoft Windows CE scared many consumers away – and the rise of smartphones.

    PDA’s vanish from the Gartner cycle in 2003 and three years later Smartphones make an appearance grinding their way up to the ‘Plateau of Productivity’.

    There is a fair argument that smartphones are an evolution of the PDA – although not one of the PDA vendors or operating systems actually made it onto successful smartphones – but it does seem a bit of a sleight of hand simply to substitute one for the other.

    As it turns out though, the 2006 prediction for the smartphone was spot on given the iPhone was released the following year.

    Cloud computing

    The evolution of ‘cloud computing’ is an interesting tale in itself. At the time of the 2000 Gartner hype cycle is was being described as Application Service Providers (ASPs) although the concept and technology could claim to be the descendent of the much earlier time shared mainframe computing systems leased out primarily by IBM.

    In the 2000 Hype Cycle Gartner has ASPs just past the ‘Peak of Inflated Expectations’ and this was a fair call as ASPs were dragged down by the general ennui following the Tech Wreck a year later which saw the technology close to the ‘Trough of Disillusionment’.

    ASPs then vanish for four years before reappearing as ‘Software as a Service/ASP’ in 2005 on the grind up to the ‘Plateau of Productivity.’

    Portal mania

    In the early days of the World Wide Web, portals were hot. On the public web, Yahoo! and MSN were expected to be the go-to destination for surfers while within large organisations, the intranet page was expected to be the centre of all corporate knowledge and the first place employees were expected to log into in the morning.

    For the 2003 hype cycle, Gartner’s analysts certainly believed in portals with twelve different types of portals or related technology listed. The following year, the number had grown to fifteen.

    Interestingly, the most advanced portal technology on the curve, ‘mobile access to portals’, was stuck climbing out the trough for both of those years. That probably indicates even Gartner’s enthusiasm for the term and the technology was enough to prevent the idea being overtaken by search and social media.

    Looking to the future

    While it’s entertaining with the benefit of hindsight to look at where Gartner’s predictions of more than a decade ago, it is worthwhile considering what the company’s analysts are predicting this year.

    Virtual reality is the tech clawing its way up out of the ‘Trough of Disillusionment’ while augmented reality is hurtling towards the depths. Both are flagged to be mainstream on a five to ten year horizon.

    At the ‘Peak of Inflated Expectations’ sits Machine Learning with the connected home and Blockchain approaching the top. Towards the start of the curve are technologies like Quantum Computing and human augmentation, both are flagged to be more than ten years away from gaining mainstream adoption.

    Picking apart the Gartner Hype Cycle is a useful exercise in understanding the limits of the idea as well as reminding us of just how difficult it is to predict how technologies will mature and be accepted by society and industry.

     

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  • Developing digital leadership

    Developing digital leadership

    Technology and talent are the biggest worries for CEOs today says Peter Sondergaard, Gartner’s Senior Vice President for Global Research, however those challenges are part of a much greater shift in business.

    In an interview at the Australian Gartner Symposium on Queensland’s Gold Coast, Sondergaard discussed how businesses and their senior management have limited time to adjust to a rapidly evolving marketplace.

    Sondergaard believes that companies have 24 months to face the changes which academic and futurist Andrew McAfee forecasts is going to overwhelm businesses and society in the near future.

    In this environment IT workers have a unique position in being responsible for implementing technologies within organisations, however according to Gartner’s research only 15% of CEOs see their tech teams as leading change within the organisation.

    “The transformation that a lot of people are grappling with is ‘how do I translate this into action in leaders?’” Sondergaard suggests. “Organisations have leaders in financial backgrounds and people who understand people management, leadership and customer facing activities.”

    “Businesses expect this in every senior leader hired in the organisation but somehow it’s okay to accept those people have their son or daughter do everything technology wise. In the future you can’t have that.”

    “Digital leadership is at par with all other assumed skills in what is a fully rounded business leader.”

    A generation change

    Sondergaard sees a generational change happening in senior management as the new guard are more comfortable with technology, having had to deal with the 1990s PC boom as well as the internet during their working lives.

    “The change generally happens when you switch CEO, it’s very funny to watch right now how new CEOs that come in, change the strategy completely and focus on digitalisation.”

    For many companies, this is a dramatic change in business practices and one that doesn’t come without resistance within the organisation, although the marketplace may force these reforms as margins fall.

    Changing focus as margins fall

    A problem facing managers that Sondergaard sees is the falling margins faced by businesses as new competitors unencumbered by legacy systems enter the marketplace.

    Most of these competitors bring the ‘startup ethos’ into their industries — with no fixed overheads the new entrants are far more flexible than the incumbent businesses.

    Stock markets are also making the problem worse with older businesses being held to different benchmarks than the new players.

    To illustrate this Sondergaard cites Amazon and IBM where are both staking their futures on cloud services that are barely profitable; for this IBM is punished by investors while Amazon continues to get stock market support.

    Owning the ethical risks

    Another challenge facing businesses in going digital are the ethical considerations, this is a complex and multifaceted area that is going to test managers throughout organisations as new technologies give rise to unforseen risks.

    “What does your brand want to stand for in a digital world?” Sondergaard asks, “I think we will need people who articulate the brand, and what we do from a technology perspective.”

    “Ethics in this is a very part of the user experience which becomes very complex very fast. If you don’t have someone who owns this from a co-ordination perspective I would say you get an element of risk that you don’t want.”

    For managers across all industries the challenge is to deal with the disruption that is happening now and the greater changes that are looming, Sondergaard believes this requires a ‘bimodal’ way of doing business that balances the needs of existing markets with the demands of a much more complex fast moving developing digital marketplace.

    This is a big task for managers and one that many will struggle with. Those who don’t succeed are going to struggle in a very turbulent business world.

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  • Skipping the trough of disillusionment

    Skipping the trough of disillusionment

    When consulting group Gartner placed the Internet of Things at the peak of their hype cycle last month it raised concerns that the technologies might be about to take a tumble.

    Speaking to Networked Globe this week in San Jose; Maciej Kranz, VP and GM of Cisco’s technology group described how he believes the IoT’s evolution from the top of the hype cycle to the plateau of acceptance will be quick.

    “We’re happy that Gartner put IoT on top as it means there’s awareness,” said Kranz. “We hope to prove Gartner wrong, that in IoT we don’t go through the classic hype cycle we go from hype into reality.”

    Kranz’s reasoning while the IoT will suffer a short spell, if any at all, in Gartner’s ‘trough of disillusionment’ is because the major industry players are working closely together to build the sector and its standards.

    “Where we think it’s a little bit different from some of the other hype cycles than some of the other hype cycles is that we continue to work very close at the industry,” Kranz explained.

    “Because we’re all working as an industry to make it real it will go through the disillusionment and quickly into a reality.”

    This may well turn out to be true if the big players like Cisco and GE in the industrial space along with companies such as Google and Apple in the consumer sector stay committed to the concept. If the major vendors stay the course, then it’s likely IoT technologies won’t suffer much at all.

    Another aspect in the IoT’s favour is that it isn’t really a specific technology or product at all, instead being more of a concept bought about by various technologies such as home automation, industrial controls and cloud computing all reaching maturity.

    Rather than one separate item on the Gartner hype cycle, the IoT is really made of dozens of different technologies that are mostly on the ‘plateau of acceptance’ themselves.

    Kranz sees Gartner’s listing of the company as being on the top of the hype cycle as being a vindication for how the IoT has been adopted by industry and the community, “it is remarkable how we’ve gone in the last nine months from people saying it’s a vision to n

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  • Stages of hype – the Gartner Hype Cycle turns twenty

    Stages of hype – the Gartner Hype Cycle turns twenty

    Gartner’s Hype Cycle has been a favourite of this blog as it’s been pretty accurate at describing where various technologies are in the tech media’s eye.

    This year is the twentieth edition and the most notable aspect is the Internet of Things is shown as being right on the peak of industry hype.

    Other sectors struggling on the cycle are cloud computing, big data and machine-to-machine technologies; all of them are tumbling into the trough of disillusionment.

    gartner-hype-cycle-2014

    In itself this isn’t a bad thing for these technologies as the ‘trough of disillusionment’ is where the true business cases are found, certainly for the Internet of Things this will not be bad for a sector that’s clearly overhyped.

    There’s also the thought that not all troughs of disillusionment are the same as some concepts – such as Big Data – are actually trends which means they aren’t subject to the whims of corporate marketing departments.

    How the hype cycle will look in five years will be fascinating as things like brain-computing interfaces and the quantified self start to take form. When they reach the peak of the hype cycle we can expect many of today’s disillusioned technologies will be on the plateau of productivity.

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  • Focus as a survival strategy

    compassThis article originally appeared in Smart Company on December 9, 2008

    Speculation is mounting about Apple releasing a cheap netbook. The idea is Apple needs to compete in the ultra cheap sector and their existing range is too expensive in the current market.

    While there’s no doubt Apple will have to respond to the difficulties in the market and give up some margins and profits, there’s danger in simply chasing other people’s price points.

    Apple’s success is built upon high margin products, not the stack ‘em high, sell ‘em cheap models other manufacturers follow with varying degrees of success. Those high margins allow Apple to offer value added services like free help in their Apple Stores.

    While it’s important to meet consumer price points in the current market, pitching a product to meet someone else’s price point is madness. Apple’s market couldn’t be different to that of the Asus EeePC for example.

    That people are suggesting companies in Apple’s market and financial positions should be doing these things illustrates just how tough times are in the tech industries. This was flagged in yesterday’s SmartCompany New Years Resolutions article where Amanda Gome specifically clearly flagged IT as an area to cut.

    As we learnt in the tech wreck, IT spending is the first to be slashed, and from what I’m hearing there’s a bloodbath looming in the technical services industry.

    Others are hearing this too. The website GigaOm and Gartner Research both published tips on surviving the downturn last week.

    Gartner’s paper was firmly aimed at tech service businesses, but there‘s plenty of good ideas there for other businesses as well. Their key point is you have to lead the market as followers will struggle.

    The GigOm article starts from the same premise as Gartner – businesses need to differentiate themselves from the rest of the market – for GigaOm focus and simplicity are the keywords.

    Focus and simplicity are how Apple has achieved its position in its market. Right now is the worst possible time to lose this focus.

    All of us need to focus on the areas where we have advantages and how we can simplify things for our customers. We need to be talking to our clients now and understanding where their pain points are and how we can help.

    Once we’ve done that, we can start getting new ideas and products out there that will help our businesses through the tough period ahead.

    Image by Kriss Szkurlatowski.

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