Enterprising Developments

The Year Ahead, According to Gartner

Joe McKendrick
Insurance Experts' Forum, January 4, 2012

Gartner published its top predictions for the year 2012, and the one that pops out the most is the view that technology decisions – and budgets – will increasingly move under the control of lines of business, and away from the IT department.

Gartner published a number of predictions that not only look at the next 12 months, but out to 2015 and beyond. Here are five thought-provoking predictions culled from the list that will likely have the greatest impact on insurance operations.

Information technology decisions are moving away from the IT department: Gartner claims that within the next three years, “35 percent of enterprise IT expenditures for most organizations will be managed outside the IT department's budget.” This is part of a trend of greater alignment between business and IT; IT is seen less and less as a separate box, and will become increasingly interwoven with business and its products.

Big data is here, but companies won't know what to do with it yet: As Gartner puts it, “more than 85 percent of Fortune 500 organizations will fail to effectively exploit big data for competitive advantage.” Surprisingly, there are at least 15 percent that seem to get it. The challenge, as Gartner puts it, “collecting and analyzing the data is not enough — it must be presented in a timely fashion so that decisions are made as a direct consequence that have a material impact on the productivity, profitability or efficiency of the organization. Most organizations are ill-prepared to address both the technical and management challenges posed by big data.”

More development will go into mobile platforms, less into PC applications: Gartner predicts that by 2015, “mobile application development projects targeting smartphones and tablets will outnumber native PC projects by a ratio of 4-to-1.” This is where the action is, but it has its challenges. As I have found through discussions with insurance IT managers, it takes some time and resources to support the existing multiple app platforms – be it iPhone/iPad, Android, Blackberry, Windows and all the rest.

Cloud will break up and disrupt the outsourcing market: “By 2015, low-cost cloud services will cannibalize up to 15 percent of top outsourcing players' revenue,” Gartner predicts. The ability to secure IT and application services in bite-size cloud chunks reduces the need for a career-destroying decision to turn over an entire operation to a third-party outsourcer.

Trust in the cloud will grow: As Gartner projects it, “at year-end 2016, more than 50 percent of Global 1000 companies will have stored customer-sensitive data in the public cloud.” We'll see how many insurance companies buy into that.

Joe McKendrick is an author, consultant, blogger and frequent INN contributor specializing in information technology.

Readers are encouraged to respond to Joe using the “Add Your Comments” box below. He can also be reached at joe@mckendrickresearch.com.

This blog was exclusively written for Insurance Networking News. It may not be reposted or reused without permission from Insurance Networking News.

The opinions of bloggers on www.insurancenetworking.com do not necessarily reflect those of Insurance Networking News.

Comments (0)

Be the first to comment on this post using the section below.

Add Your Comments...

Already Registered?

If you have already registered to Insurance Networking News, please use the form below to login. When completed you will immeditely be directed to post a comment.

Forgot your password?

Not Registered?

You must be registered to post a comment. Click here to register.

Blog Archive

Is the Long March to IFRS Convergence Over?

Once a given, the adoption of a single set of accounting standards for the insurance industry is on hold.

So You Plan to Buy a Core System … Now What?

There are many questions for carriers to consider even before the implementation process begins.

What It Takes to Have a Tech-Savvy Workplace

The tools and technologies to build the next workplace are available, but not common yet in corporate settings.

Avoiding the Bermuda Triangle of Data

Handled poorly, questions around data ownership, data quality and data security can sidetrack big data conversations and alienate business stakeholders.

A Prototype of the Successful Innovation Leader

Celent research reveals the prototype for the successful senior innovation leader.

Global Supply Chain, Local Problem

As a technology provider, your client’s ability to deliver products and services to their customers, when and where they need them, is at the heart of their business success.