What happens when 30 billion things connect with business and 3 billion people with smartphones? All these things and people generate vast amounts of rich data, and what companies do with that data – how they turn it into proprietary algorithms – will determine how well they maximize the opportunity presented by digital business.
“Algorithms are where the real value lies,” said Peter Sondergaard, senior vice president at Gartner and global head of Research, in the opening keynote to more than 8,500 CIOs and IT leaders at the sold out Gartner Symposium/ITxpo in Orlando. “Algorithms define action.” Digital revenues have risen, IT organizations have gone bimodal, and the increased density of connections promises smart agents and algorithms that can do very complex things, including spawning their own, new algorithms and agents.
In today’s digital era, dynamic, digital algorithms are at the core of new customer interactions. Back in the day, Coco-Cola created a secret recipe; essentially, an algorithm; for a fountain drink that would build an empire.
Today, Amazon’s recommendation engine prompts people to buy more products, or the Waze algorithms give cars better routes based on thousands of independent inputs, changing traffic patterns dynamically in real time. Moving forward, companies will be valued not just on their big data, but on the algorithms that turn that data into actions and impact customers.
Companies will be valued not just on their big data, but on the algorithms that turn that data into actions and impact customers.
