Tech Trends for Consumer Products 2013 Elements of postdigital

Tech Trends for Consumer Products 2013 Elements of postdigital

Preface

Welcome to Deloitte’s annual report examining trends in technology put to business use. Once again, we’ve selected ten topics that have the potential to impact businesses over the next 18 to 24 months.

Developing the list of trends is an ongoing process of primary and secondary research. The process includes:• Feedbackfromclientexecutivesoncurrentandfuturepriorities• InputfromDeloitteindustryandpracticeleaders• Perspectivesfromindustryandacademicluminaries• Researchfromalliancepartners,industryanalysts,andcompetitorpositioning• Crowd-sourcedideasandexamplesfromourglobalnetworkofpractitioners

This year’s theme, Elements of postdigital, examines the convergence and controlled collision of five forces – Analytics, Mobile,Social,Cloud,andCyber–asbusinessesmoveclosertoachievingthepossibilitiesofthePostdigitalEnterpriseTM,whereallfiveforcesaremature,implemented,integrated,andbaked-ininsteadofbolted-on.Thesefiveforcesofferanewsetoftoolsforbusiness,openingthedoortoanewsetofrulesforoperations,performance,andcompetition.ITcandeliver engagement and empowerment to business customers, both innovating and industrializing.

ThePostdigitalera,likethepost-industrialera,reflectsa“newnormal”forbusinessandanewbasisforcompetition.Inpost-industrialtimes,wedidn’tforegoindustrialization,weembracedit.ThePostdigitaleraissimilar,butwithdigitaliza-tion as its core.

It’sanuncommontimetohavefiveforces–allnewlyemerged,allevolving,alltechnology-centric–alreadyimpactingbusinesssostrongly.ItisanopportunityforITtodeliverextraordinaryvalueviamodestinvestmentsontopofastronglegacy technology footprint.

Our 2013 report shares ten trends grouped into two categories. Disruptors are opportunities that can create sustainable positivedisruptioninITcapabilities,businessoperations,andsometimesevenbusinessmodels.Enablers are technologies inwhichmanyCIOshavealreadyinvestedtimeandeffort,butwhichwarrantanotherlookbecauseofnewdevelopmentsoropportunities.Enablersmaybemoreevolutionarythanrevolutionary,butthepotentialisoftentherenonethelesstoelevate the business game.

For2013wehavealsoattemptedtopersonalizeourgeneralTechTrendsarticletoincludetopicsandexamplesspecificallyrelevanttotheConsumerProductindustry.Whilewehavemaintainedmuchoftherichcontentcontainedintheoriginalversionofthisarticle,we’vespecificallyincludedexamplesfromleadingConsumerProductscompaniessuchasSchwan’s(Mobile Only and Beyond) and OfficeMax (Design as a Discipline), and have also featured our collaboration on Big Data with the Grocery Manufacturers Association (GMA).

Eachtopicalsoincludesanexternalpoint-of-viewintheMy Take. This year, you’ll also find a new section called Flying Car Future,whichtakesaprovocativeviewintowherethetrendmaybeheadedinHorizon3–andbeyond.Lastbutnotleast,wherewedeemapplicable,we’veincludedourConsumerProductsperspectivetoshareourindustryinsightontheimplications of the respective trend.

Eachofthe2013trendsisrelevanttoday.Eachhassignificantmomentumandpotentialtomakeanimpact.Andeachwarrantstimelyconsideration.Forward-thinkingConsumerProductsorganizationsshouldconsiderdevelopinganexplicitstrategyineacharea–evenifthatstrategyistowaitandsee.Butwhateveryoudo,stepup.Provokeandharvest disruption. Don’t get caught unaware or unprepared.

Thankyouforyourinterestinthisyear’sreport.Wewelcomeyourfeedbackandquestions.TothemanyexecutiveswhohaveprovidedinputintoTechTrendsforConsumerProducts2013,thankyouforyourtimeandinsight.WelookforwardtohavingmoreoftheessentialdialogbetweenbusinessandIT.

2013 Technology Trends

AlanLanghalsPrincipalDeloitteConsultingLLP

SuketuGandhiPrincipalDeloitteConsultingLLP

MattLawPrincipalDeloitteConsultingLLP

Darwin DeanoSenior ManagerDeloitteConsultingLLP

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At a Glance

CIO as the Postdigital CatalystCatalyzing value from the elements of mobile, social, analytics, cloud and cyber CIOscanleadthemovetotomorrow–reshapingbusinessasusual,anddrivinginnovation.They are faced with unprecedented opportunity for innovation such as the potential to enable CustomerIntimacyatscaleforConsumerProductsOrganizations.Howshouldbusiness respond?WhenCIOsharnesstheconvergenceofthefivepostdigitalforces,theycanchange the conversation from systems to capabilities and from technical issues to business impact. Planbig,startsmall,failfast,scaleappropriately.

Mobile Only (and beyond) The enterprise potential of mobile is greater than today’s smartphone and tablet apps Mobileshouldbetopofmindfororganizations.Butdon’tlimityourideastoMobileFirst. ThinkMobile Only, imagining an untethered, connected enterprise. The next wave of mobile mayfundamentallyreshapeoperations,businessesandmarketplaces–deliveringinformation and services to where decisions are made and transactions occur. The very definition of mobile ischanging–asevidencedbyourfeaturedConsumerProductsorganizationthatalreadyimprovedcustomerserviceefficiencyandqualitythroughtheMobileOnlyparadigm.

Social Reengineering by DesignHow work gets done is no longer constrained by 19th century platforms Businesses are no longer building technologies just to enable interaction – they are now engineering social platforms for specific context – platforms that can relieve rather than serve traditionalorganizationalconstraintssuchasdeephierarchies,command-and-controlcultures,physical proximity and resource concentration. Social reengineering can fundamentally transformhowworkgetsdone,butitisn’tjusta“project.”It’sastrategy.It’stimetouncovertheopportunitiesforConsumerProductorganizationstoharnessthepowerofthecrowdtoaugment business operations through external communities.

Design as a DisciplineInherent, pervasive and persistent design opens the path to enterprise value Drivenbyconsumerexperience,intuitivenessandsimplicityaremovingfromITaspirationstoenterprisemandates.Designisnotaphase;it’sawayofthinking.Beyondlookandfeel,beyonduserinterfaces.Isolatedinsilosofuserexperience(UX),marketingandproductdevelopment,individual design functions may be reaching their limits. What’s needed is a collaborative, immersiveenvironmenttoworktogether.Designisnotjustan“ITthing”ora“marketingthing”ora“productengineeringthing.”It’sanenterprisethingasevidencedbyourfeaturedConsumerProductsorganizationthatdramaticallyimproveduserproductivityandcustomerexperience.

IPv6 (and this time we mean it)Ubiquitous connected computing is straining the underlying foundation of the InternetInternetProtocolisthefoundationofnetworking,butwe’verunoutofaddressablespace for addressable items. The more important it is for your business to connect with the outside world,themoreimportantIPv6isforyourfuture–andthemoreurgentthisissueisforyoutoday.IPaddressesarewovendeepintoapplicationsandinfrastructure,andmigrationcan bringchallenges.Whilethere’snodropdeaddateforIPv6,thefinalIPv4addressblockshavealreadybeenallocated.Carefulandproperadoptionwilltaketimeforplanning,execution and verification. The time to start is now.

DisruptorsOpportunitiesthatcancreatesustainablepositivedisruptioninITcapabilities,businessoperations, and sometimes even business models.

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Finding the Face of Your Data Fuse people and technology to discover new answers in data – and new questions, too Humansdosomethingsreallywell,whilecomputersarebetteratotherthings.Itisthisparticular combination that enables the identification of new patterns and relationships across dimensions of data – structured and unstructured, internal or external, big or otherwise.Bycombininghumaninsightandintuitionwithmachinenumber-crunchingandvisualization,companiescananswerquestionsthey’veneveransweredbefore.ForConsumerProductsorganizations,Deloitte’scollaborationwiththeGroceryManufacturer’sAssociation is raising awareness of the business value of data visualization.

Gamification Goes to Work Driving engagement by embedding gaming in day-to-day business processes Gamification can encourage engagement and change employee, customer and supplier behavior, creating new ways to meet business objectives. The goal is to recognize and encouragebehaviorsthatdriveperformance–sometimesinunlikelyplaces.Thistrendhas moved beyond hype and is already demonstrating business value. More specifically, Deloitte’s collaboration with the Grocery Manufacturer’s Association is exposing the significantpotentialforconsumer-targetedapplications(suchasin-storegamification).

Reinventing the ERP Engine Revving up data, hardware, deployment and business model architectures at the core IfyoucouldreallygetERPcheaperandfaster,whatwouldyoudodifferently?Runmaterialsrequirementplanning(MRP)manytimeseachday?Closethebooksinamatterofminutes?Optimizedeliveryrouteson-the-flyinresponsetoneworders,trafficorcustomerpreferences?Whatwoulditmeanforbusinessagility,capabilityandcompetitiveness?Ifapproachedwithafocusonreinventingbusinesscapabilities,theevolutionoftheERPengine can yield significant competitive edge.

No Such Thing as Hacker-proof If you build it, they will hack it. How do you deal with that? You’veeitherbeenbreached–oryousoonwillbe.Yourbossknowsit,yourbusinessknowsit,yourboardknowsit,yourcustomersknowit,andhackersknowit.It’syourjobtodealwithit.Thatmeanschangingthewayyouthinkaboutdefendingyourself.Bemoreproactive about the threat – and react more rapidly when breaches do occur. Detect them quickly,respond,cleanupandadjustyourtactics.Beoutward-facing,preparedandreadyin advance. Anticipate and prevent when possible, but be ready to isolate and encapsulate intrusionstominimizeimpact.It’sbettertoloseafingerthantoloseanarm.

The Business of ITAfter reengineering the rest of the business, IT’s children deserve some shoes FragmentedprocessesandsystemscanpreventITfromeffectivelydeliveringonthechangingdemandsofthebusiness.ITmayneedtotransformitsownmanagementsystemstokeepup.IsthisERPforIT?Maybesomeday.Today,CIOsarecraftingsolutionsfromindustry-leadingproductsandtestingbusinesscasesateachstep.Andthepotentialbenefits are worth the investment – not only in driving down costs and better managing risks,butinpositioningITasthebusinesspartnerinprovokingandharvestingdisruption inthePostdigitalera.

Enablers TechnologiesinwhichmanyCIOshavealreadyinvestedtimeandeffort,butwhichwarrantanotherlookbecauseofnewdevelopmentsoropportunities.

Contents

CIO as the Postdigital Catalyst ...............................................................1

Finding the Face of Your Data .............................................................46

Mobile Only (and beyond) ...................................................................10

Gamification Goes to Work .................................................................55

Social Reengineering by Design ........................................................... 19

Reinventing the ERP Engine .................................................................64

Design as a Discipline ..........................................................................29

No Such Thing as Hacker-proof ...........................................................72

The Business of IT................................................................................80

IPv6 (and this time we mean it) ...........................................................38

Conclusion ...........................................................................................85

Contributors ........................................................................................86

Di Disruptors

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IPv6 (and this time we mean it)5

The backbone of the Internet is straining. And we’re running out of time.InternetProtocol(IP)ishowweconnecttoanyoneandanythingontheInternet.Everyparticipatingdevice, application, or service has a distinct address – a way to identify itself and communicate with other devices, applications,andservices.Today’sIPstandard,IPv4,datesbacktothe1970s.Itallowedfor4.3billionuniqueIP addresses, which was more than sufficient to meet the computingdemandsofthetime.Fastforwardto2013,with more than a billion personal computers in use1, a billion smartphones2, many times as many corporate desktops,laptops,networkequipment,andservers,andagrowingnumberofnon-traditionalsensorandactuatordevices, including cars, thermostats, aircraft engines, elevators,andvendingmachines.IPaddresseshave become a scarce resource, already exhausted in some regions:AsiaPacific(APNIC)ranoutinApril2011;Europe(RIPE)inSeptember2012;andIPv4inNorthAmerica (ARIN)willlikelybefullyassignedbyspring20145.

The problem has been understood for decades. The next generationInternetProtocol(IPng),widelyknownas IPv6,wasannouncedbytheInternetEngineeringTask Force(IETF)in19956. This new standard allowed for 340 undecillion (1036)uniqueaddresses,alongwith improvementsinprotocol-levelsecurity,routing,and networkmanagement.

Unfortunately,therehasbeenlittlesenseofurgencytoadopt the new standard, especially for private enterprises andpublicsectoragencies.Workaroundssuchasnetworkaddress translation (NAT), dynamic host control protocol (DHCP),andprivateaddressinghaveeasedtheburdeninside many organizations – allowing each company to operate comfortably with its own set of private addresses withinitsfirewalls.U.S.federalgovernmentmandateshaveset deadlines that have passed7, setting the precedent for a “waitandsee”mentality.

Butwe’reapproachingabreakingpoint,fueledby growth of mobile adoption, increased pace of public cloud adoption, and the explosion of new end points withInternetconnectivityviaembeddedsensorson physicalobjects.Thiswilllikelyforceenterprisesthat workwithcustomersandbusinesspartnersviathepublic Internettomovetoversion6astheirprimary communication method in the next two or three years.

Inresponsetothisdeadline,youmaybesaying,“OK,achangeiscoming,butIstillhavetime.”Notquite.In reality,themigrationfromIPv4toIPv6maytakeyearstocomplete. The hardware impact is significant, though likelythisaspectisthemostmaturetoday.Networkingrouters,switches,andloadbalancers;servers,desktops,and laptops; smartphone, tablets, and feature phones; printers, web servers, and storage arrays are all affected. Anditdoesn’tstopthere.Theentireapplicationstackshould be assessed – especially with the historical realityofhard-codednetworkaddressesincode,scripts,andconfigurationfiles.LikewithplanningforY2K,youshould examine, remediate, test, and promote assets that may have gone untouched for years. Security solutionsneedsimilarhandling.Firewalls,intrusion detection appliances, and third party suppliers should be examined. Architecture and engineering policies as well asnetworkoperationsshouldbeupdatedtotake advantageofIPv6intheconfigurationandmanagement of capabilities.

Thisisadauntingtaskforwhichactionshouldnotbedeferredmuchlonger.IPv4’ssunsetisnolongeraquestionof if, but of how soon. Telecommunications, hardware and systems software providers, and content providers have been leading the way – ahead of customer and enterprise demand. Organizations should follow suit promptly. This time, we really mean it.

392013 Technology Trends – Disruptors

History repeating itself? IPv6isanythingbutnew–astandardthatwasconceivednearly20yearsago.FewCIOsareunawareoftheissue,but,outsideoftelcosandhigh-techproviders,itisrarelyhighoncorporateITagendas.ThebarrageofprioritiesassaultingtheCIOispartiallytoblame.Budgetcrunches.ITefficiencies.Costcutting.Pressurefromthebusinesstoexpeditecloud, mobile,andsocialadoption.Unyieldingpressureforanalways-on,incident-freetechnologyfootprint.Andmore.Butfatiguesurroundingthetopicisalsopartlytoblame.TheInternetEngineeringTaskForce(IETF)hasbeenpushingforadoptionforatleastadecade,butthe“smokinggun”tochangebehaviorhasjustnowbeguntomanifest.

IPv6(andthistimewemeanit)

What were the challenges? What’s different in 2013?

IPv6 • IETFissomewhatavictimofitsownprescriptivevision.Insteadofwaitingfortheissuetomount,theimpending-though-distantexhaustionof IPv4addressesspurredataskforcealmost20years before the issue would reach climax. Therealnear-termissuehasbeendilutedbyyears of posturing, vendors attempting to co-optthetopicwithsolutionrefreshes,andgeneral confusion on the impact as regional IPauthoritiessawtheirstockpilesofaddressesexhausted(whichhappenedtoAPNICandRIPE),with little evidence of adverse effect.

•ThepremonitionthattheIPskyisfallingisfinallycoming true – with the combined storm of globalization, cloud/mobile proliferation, and the explosion of embedded sensors and connected objects.FamiliarenterpriseworkaroundssuchasNATandDHCParereachingtheirlimits,andmany large organizations are facing years of efforttocompletesafeIPv6deployment.CIOsshouldlookbeyondhistoricalbiasandsee whatIPv6meanstotheirbusinesscirca2013,andhowtomitigateriskofcontinuedrelianceonIPv4.

Y2K • IPv6issometimesequatedtothefervoraroundtheYear2000(Y2K).Partoftherhetoricringsfamiliar: a potentially catastrophic issue at the core of our computing environments that requiressystematicremediationacrossnetwork,hardware,andsoftwarestacks.Thenon-event at the actual turn of the century is often cited as proof that such prognostications are nothing but hype.

• Y2K activities were a hedge against a theoretical issue.IPv6isafact-based,cut-and-driedproblem.Wearerunningoutofuniquenetworkaddresses,even as the number of objects connected to the Internetisgrowingexponentially.IPv6-addresseddevicesarenotanticipatedtobeabletotalkfreelyandeffectivelytoIPv4infrastructurewithoutcontinuedworkarounds.Thiswilllikelyaffect almost every corporation, organization, and governmental agency.

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Technology implicationsMigrationtoIPv6haswide-reachingimplications–atthenetwork,server,end-point,andapplicationlevels.Planninghastocoverthepotentialneedforopen-heartsurgeryduringthetransition,whilesupportingongoingcompatibilitybetweenIPv4andthenewprotocol.

IPv6(andthistimewemeanit)

Topic Description

Routing IPv6featuresafixed-length40-byteheader.RemovalofoptionsfieldsfromIPv4limitsrouter processing.Fragmentationisonlyallowedbythesourceanddestinationnodes.Individualrouters donothavetospendtimeprocessingchecksumsorhandlingextensionheaders.

Procurement NewhardwareandsoftwareinstallationsorupgradesshouldexplicitlyfeatureIPv6andIPv4 compatibility.Operatingsystem,networkinghardware,virtualizationpackages,networkandsecuritymanagementsolutions,andlargecommercialapplicationshavefeatureddual-supportforyears. Cross-compatibilityisnotagivenforsecond-tierproviders.IPv6adoptionisdeemedinevitable.Makesure you’re protecting existing assets for eventual migration.

Security IPSecurity(IPSec)isanative,mandatorypartoftheIPv6protocol–authenticatingandencryptingeachIPpacketofasession.Insteadofrelyingonapplication-layeradherencetosecuresocketslayers(SSL)ortransportsecuritylayer(TSL),securityisautomaticallyhandledbytheprotocolitself.IPv4couldaccommodateIPSec,butnotasadefault–requiringupdatestotheIPimplementationofeverydevicealongthecommunicationroute.Thisisimpracticalforinternalnetworks,andlikelyimpossiblefor trafficcoveringpublicnetworks.

Quality of service IPv6includesa“flowlabel”fieldintheheadertoprioritizepacketsthatneedtoarriveattheir destinationclosetogetherwithlowlatency,suchasvideostreamingandvoiceoverIP.

Deployment options There are three primary deployment options: • Tunneling.IPv6hoststalktoIPv6infrastructureviaanend-to-endtunnelthattraversesIPv4 networks,effectivelyestablishingatunnelbetweenIPv6endpoints.TheIPv6trafficflowsare encapsulatedbyarouterwithanIPv6interfaceinsideIPv4packetsandroutedthroughIPv4 endpointstotheotherendpoint,whereanIPv6-enabledrouterreassemblestheIPv6original packetsandsendthemtotheIPv6target.

•Dual-stack.Infrastructurecomponentsareupgradedtosupportbothprotocols,withdualIPv4 andIPv6addresses.IPv4usersandclientswillseeonlyIPv4-enabledcomponentsandviceversa.Beyond hardware and firmware updates, critical applications should be validated to operate in thedual-stackmode.

•NetworkAddressTranslation64(NAT64).Building from today’s common practice of mapping onepublicaddresstomanyprivateaddresses,NATcanbeusedtotranslateIPv6traffictoIPv4–maintainingdependenciesonapplicationlayergateways(ALGs)tocorrectlymonitorandroutesome types of traffic.

412013 Technology Trends – Disruptors

IPv6(andthistimewemeanit)

Lessons from the frontlinesNo more excusesBeforedeployingIPv6,wecanlearnfromGoogle,whobeganmakingthetransitionin2008.Theirinitialapproachinvolved a small, core team of engineers who spent an additional20%overtheirregularworkhoursfor18monthstomakeGooglepubliclyavailableoverIPv6.Butitwasn’taseasyasitseemed.LoreznoCollitti,anetworkengineeratGoogle,saidIPv6needstobeproduction-qualityorit’sofnouse.8IPv6transitionmustbedoneproperly.

TransitioningservicesovertoIPv6involvesmorethanjust asoftwareandhardwareupdate.Thetimerequiredfor auditing, upgrading software, reconfiguring, and testing for anIPv6roll-outcantake12months,withassociatedcostslikelytofaroutweighthecostsofanyrequiredsoftwareorhardware upgrades9.Aneffectivetransitionalsorequiresmanagementbuy-inandaclearunderstandingofitsbusinessvalues.ForearlyadopterslikeGoogle,itrequiredconsiderable support from external vendors who weren’t yetfacedwithsurgingdemandforIPv6support,furtherexacerbatingIPv6’schicken-and-eggproblem.Google’s efforttodeployIPv6initsownenterprisenetwork,whichhasbeenunderwayforfouryears,wasalargerundertakingthan the team had anticipated10. As of December 2011, the project was only half finished, though 95% of the company’sengineershaveIPv6accessattheirdesks11.

VintonCerf,ChiefInternetEvangelistatGoogleandoneofthefoundingfathersoftheInternet,says,“Therearenomoreexcuses.YouhavetobeabletorunbothIPv4andIPv6all the time, anytime, because this is not going to be turned off.ForanyISPandanyedgeprovider,ifyouarenotcapableofrunningIPv6,youarenotbeingnoticed.Getgoing.GetIPv6running.”12

Brazil’s Silver BulletSilverSpring’searlycommitmenttoanIPv6standards-basednetworkingplatformhaschangedtheutilityindustry’s approachtomodernizingthegrid.In2006,SilverSpring introducedtheindustry’sfirstIPv6-basedsmartgrid networkingplatform13,andhassincenetworkedmore than11millionhomesandbusinessesworldwide.Raj Vaswani,ChiefTechnologyOfficeratSilverSpring Networks,envisionedanetworkingplatformasthe foundationforsmarterenergynetworksofthefuture. SecuringnetworksandassigningIPv6addressesto elements in the power grid, such as onsite customer meters, can allow for greater coordination, reliability, and efficiency of electricity delivery and use. According to Vaswani,opencommunicationsprotocolsandstandards-based infrastructure are a founding principle at Silver SpringNetworks.“Ourapproachhasbeentobuildanopen

networkoptimizedforthemassive-scalemachine-to-machine (M2M) communications across millions of devices thatarerequiredforthenextgenerationofsmartenergynetworks,”hesays.

InOctober2012,SilverSpringintroducedanewsmart gridofferingfortheBrazilianmarket.Partneringwith Brazilutilities,SilverSpringintegratedstandards-basedcommunications solutions that were tailored to Brazilian utilities. The upgrade has not only assisted Brazilian utilities tomeettherequirementsoftherecentlypublishedAgênciaNacionaldeEnergiaElétrica(ANEEL)mandate,butalsoestablishedanetworkingfoundationforfuturegrid- modernization investments.

EricDresselhuys,ExecutiveVicePresidentofGlobalDevelopmentofSilverSpringNetworks,says,“Leveragingthesegreatproductsonahighlyreliable,IPv6networkingplatformwillempowerourclientstomeettheANEEL mandates while improving operational efficiency and revenue realization, while also delivering ever greater value toalloftheircustomers.”14 With the accelerating pace of devices being connected online, Silver Spring is helping to laythefoundationforamassive-scaleglobalmachine-to-machinenetwork–startingwiththesmartgrid.

Not as easy as it looksTwoyearsago,U.S.FederalCIOVivekKundrareleasedadirectiverequiringallfederalagenciestotransitiontheirpublic-facingWebsitestoIPv6bySeptember30,201215. ButbyNovember2012,asnapshotfromNISTrevealedthatlessthanhalfofU.S.governmentdomainswereonIPv616.AmongtheearlyleaderswastheDefenseResearchandEngineeringNetwork(DREN).DREN’schiefengineer,RonBroersma,saysthatgettinganearlystartwascriticaltokeepingtransitioncostslow.Itstransitionin2010wasdoneoverafive-yearperiodwithnoadditionalstaff.

Speakingatthe2012NorthAmericanIPv6SummitinDenver, Broersma explained that agencies should gain someIPv6operationalexperiencetopreventmistakesinimplementation.Hefocusedparticularlyontheoperationalcomplexityofanativedual-stackimplementationandthelackofIPv6/IPv4parityasareaswhereimportantlessonsmustbelearned.“ThebusinesscaseforDREN’sIPv6 deploymentisbusinesssurvival,”saidBroesma,butthe‘killerapp’forIPv6istheInternetitself.17

Kundra’s memo also established a second deadline of September 30, 2014, for federal agencies to upgrade internal client applications that communicate with public InternetserverstousenativeIPv6.

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John Curran PresidentandCEOAmericanRegistryforInternetNumbers(ARIN)

My take

WhenItalkaboutIPv6(InternetProtocolversion6),peopleoftenthink“technologyniche.”ButwhatI’mreallytalkingaboutisInternet connectivity. A company can choose whether or not to use wireless personal devicesormovetovirtualmachines,butwithIPv6,thequestioncomesdowntothis:“AreyoutryingtoreacheveryoneontheInternet,oraren’tyou?”

Companiesspendsignificantlytoreachtarget audiencesontheInternet.Imaginemakingthattypeof investment and finding out you missed the target. When someone lays out a proposal for a new system orapplication,keepinmindthattheInternetitselfischanging.Ifyoudon’tincludeIPv6inyourplanning,yourinvestmentsmaynotachieveyourdesiredROI.

WorkonIPv6hasbeenongoingfor20years,andthetechnology has been stable and standardized for the last 15 of those years. But now we’re actually running outofIPv4addressesglobally,whichmakesittimeforIPv6tocomeintothespotlight.Inpracticalterms,thatmeansserviceproviderslikelyhavetwochoices:stopaddingnewcustomers,orinvestinIPv6.Forexample,oneU.S.telecommunicationscarrierrecentlyannouncedtherolloutofIPv6overtheirentiremobilenetwork.Thiswasnotfortheloveofnewtechnology,buttokeepbusinessgrowing.Whenyoubuild applications – web, mobile, or traditional – you may notknowinadvanceifyourcustomerswillconnectwithIPv4orIPv6,soit’simportanttosupportbothIPv4andIPv6foryourpublic-facingsystems.MakesurethatIPv6ispartofyoursystemsdevelopmentlifecycle,sothatyou’reconnectingtothewholeInternet,notjustthe“old”Internet.

ThetimeframeforinvestinginIPv6hasalreadybegun.Ifyougenerallyupgradeyoursystemseveryfewyears,thenincludingIPv6inyoureffortswillmeanthatyourregularsystemsdevelopmentcyclewillmakeyoursystemsbothIPv4andIPv6reachable.Considertheincrementalexpenseofupgradingnow.IfyourcompetitionisenablingIPv6andyou’renot,itmaywell

get to a point where they will be better able to reach your target customer base with greater performance thancustomersconnectingtoyourantiquatedIPv4-onlysystems.Inthenexttwoorthreeyears,therewilllikelybecustomersthatconnectusingIPv6only.TherearealreadycaseswherenetworksarepredominantlyIPv6-connected.SomenetworksinFrance,Korea,andJapanuseIPv4primarilyforbackwardscompatibility.As this trend continues, the companies that have planned ahead should progress smoothly, while the ones that haven’t may be left scrambling to catch up via last minute efforts.

Y2KandIPv6aresimilarinmanyways.ButwithY2K,it was happening all at once, and there was only one thing to test: what happened when the date rolled over.IPv6isbeingincrementallydeployedbyserviceprovidersglobally,andrequiresthatcompaniesplancompatibility with the rest of the world by deploying IPv6connectivityfortheirsystemstoday.

AbigchallengeforcompaniesisthatIPv6isaparallelworldtoIPv4.IPv6worksthesamewayandrunsonthesameequipmentasyourcurrentnetwork,butyoursystemshavetobespecificallyconfiguredtospeakitinadditiontoIPv4.

Iofferthreepiecesofadvice.First,ifyoureceivea proposal from a team for a system that involves Internetconnectivitybutdoesn’tspecifybothIPv4 andIPv6,youhaven’tbeengivenarecipefor success. Second, don’t be afraid to experiment and getsomehands-onexperience.TurnonIPv6forsomeof your smaller applications, and be prepared to learn. Third, find experts and training. There are professional courses, consultants and advisors, and great online resourcesavailable.Makeitapriorityforyournetwork,application,andsecuritystafftopayattentiontoIPv6– both for your company and for their own careers. IPv6knowledgehasbecomehighlysoughtafter,andthe time to start is already passing.

IPv6(andthistimewemeanit)

432013 Technology Trends – Disruptors

IPv6(andthistimewemeanit)

Flying car futureWeare20yearsintothelegacyofIPv6–withenterprisesjuststartingtopayattention.Andyet,aburningquestionlooms.Whatcomesnext?ShouldCIOsexpectanIPv8 or beyond?

Notlikelyfortheforeseeablefuture.Addressablespacewill almost certainly not be the driver for the next iteration. WithIPv6,wenowhave670quadrillionaddresses availablepersquaremillimeteroftheEarth’ssurface18.

Content,access,andrightsmanagementaremorelikelyfactors – especially if the vision of mass digitization of content and the evolution of a persistent, transferable, non-reputabledigitalidentitytakesshape19.Withcloud-based storage and services, expanding digital content, and expectations for smooth portability of consumption acrossagrowingexpanseofdevices,protocol-level handling of identity, access, and entitlements could become a necessity.

One reason is performance – allowing advanced compression and routing algorithms to logically improve throughputacrosstheexistingphysicalnetworkandfixedspectrum. A boon for efficiency in today’s world may becomeanecessityfornextgenerationmedia,ashigh- definition video gives way to personalized, interactive contentandsciencefictionstandardslikeimmersivethree-dimensionalenvironmentsorholographs.Anotherimportant reason may be that as personas are digitized, protectionofidentityandcontentrightswilllikelybecomeas important as today’s protection of information assets. WhatIPSecstandardizationistoIPv6,contentandidentitymanagement may be to future incarnations – creating mandatory,low-levelhandlingofacriticalbuildingblockfortomorrow’s digital age.

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IPv6(andthistimewemeanit)

Where do you start? With business strategies inseparable from technology, it’s hard to find a company that is not highly dependent on itsnetwork.ThismakesIPv6abroadissue.Each companyandagencywilllikelyhaveitsowntimelineandpath forward, but general leading practices have evolved: a discovery effort of enterprise assets; planning and executing remediation; testing; research into regional, national, and industry constraints and compliance concerns; assessment of deployment options against businessstrategy;planningandroad-mapping;and executinganiterativerisk-managedroll-out.And there’s more.

• Timing.Afirstquestionis“whendoyoustart?”WhilemanyCIOsunderstandtheloomingrealityofIPv6,there has not been a burning platform or hard deadline to drive action, especially as the need has lingered for decadesandworkaroundshavebeeneffective.Herearesomeofthecommonreasonsthatmaysparkaction:expansion into geographies with depleted public addressregistries.Uptickinenterpriseassetsrelyingon4Gconnectivity(whichisbasedonIPv6).Growthin sensor and embedded connectivity initiatives across manufacturing and the extended supply chain. Tight interactions with governmental bodies, many of which are being mandated to adopt.

Evenwithoutaclearforcingfunction,Gartnerestimatesthatby2015,17%ofglobalInternetuserswilluseIPv6,with28%ofnewInternetconnectionsrunningtheprotocol20.Eventuallyyou’lllikelybeforcedtomigrate if you want to maintain communication with your customers and business partners.

Asmentionedabove,manyofyourITassetswillinsomewaybeaffected–makingthemoveapotentiallyhighrisktocorebusinessoperations.Bystartingnow,youshouldhaveenoughlead-timeforthedeliberate,phasedroll-outdescribedabove.Waitingcouldleadtoacostly,riskyfiredrill.

• Frontdoor.Regardlessofoveralltiming,thefirststepshouldbetoestablishanIPv6Internetpresenceforpublic-facingmarketing,sales,andsupportutilities. The DMZ is a good place to start and firewalls, intrusion protection devices, load balancing devices, and management tools should be addressed. Gartner identifies three choices that enterprises have to implementIPv6supportintheirpublicInternetservices:(1)upgradeallInternet-facingsystemstosupportIPv6;(2)upgradeonlyfront-enddevicesanddeployIPv6-to-IPv4protocolgateways;or(3)buildaseparate,IPv6-only,Internetpresence21.Evaluatethistargeted adoptiontogaugereadinessofyournetwork operations, application operations, and security teams to handle a broader migration.

• Businesscase.ItmaybetemptingtorelegateIPv6to aplumbingplay.Tobefair,userswon’tlikelyseean immediate and tangible difference in their lives. Unlikemobile,social,oranalyticsadoption,muchoftheimpact is behind the scenes. Yet, effective migration can help protect critical infrastructure on which the business isdependent.Networkmanagementandrouting efficienciescanalsobeexpected.Inaddition,the protocol can natively handle certain security procedures, allowing individual security services such asIPsectobephasedout–thoughonlywhenIPv4hasbeencompletelyretired.Explorethesecostandmanagement efficiencies to create a business case that is more compelling than fear, uncertainty, and doubt. Or bundle the infrastructure readiness with a broader mobileenablementordigitalbackboneeffort– balancing the allure of new business capabilities and technology-basedinnovationwiththecritical(but perhaps uninspiring) infrastructure retooling.

452013 Technology Trends – Disruptors

Bottom lineAsconnectedcomputinghasbecomeaubiquitouspartofbusinessandleisure,partoftheInternet foundation is faltering. Internet Protocol has become a universal address scheme for networking, but we’ve run out of new addressable space. With the explosion of mobile devices – especially with asset intelligenceandmachine-to-machineembeddedconnectivityinliterallyeverything–uniqueIPaddressesare becoming a scarce resource. The implications are many. Constraints on innovation, unwieldy network management, and security concerns, such as the deployment of v6/v4 bridges in Asia that strip identity and allow for true anonymity. The IPv6 standard has existed for decades, but we’re at a point of finally having to take the issue seriously.

IPv6isabitlikeY2K–withanironictwist.Alooming-but-unknowndeadline,butwherethe repercussions of no action are precise and potentially catastrophic. Each piece of the migration is manageable. It’s the scope that is complex, as every piece of your IT footprint is potentially affected. Organizations that start now will likely have time to take a measured approach, limiting risk without dominating the entire IT agenda. Those that wait may be forced to scramble – or get left unconnected.

IPv6(andthistimewemeanit)

AuthorsEdward ReddickDirector,DeloitteConsultingLLP ereddick@deloitte.comEddieReddickisaDirectorinDeloitteConsultingLLP’sPublicSectorpracticewithover20yearsofexperienceasamanagerandleader.Hehasledandcontributedtoconsulting assignmentscoveringbusinessandITstrategy,portfoliomanagement,networkengineering,cloud strategy, and migration.

Bruce ShortDirector,DeloitteConsultingLLP [email protected]’sTechnology,Strategy&Architecturepractice.Hisareasofspecializationincludeenterprisedatacenterandnetworkingdesign,operations,andstrategy,withsupportingcapabilitiesinITassetmanagement,ITsecurity,disasterrecovery,andIToperations.

Endnotes1 TarmoVirki,Computers in use pass 1 billion mark: Gartner,http://www.reuters.com/article/2008/06/23/us-computers-statistics-idUSL2324525420080623(June23,2008).

2 Lunden,I.Mobile Milestone: The Number Of Smartphones In Use Passed 1 Billion In Q3, Says Strategy Analytics. RetrievedDecember7,2012,fromhttp://techcrunch.com/2012/10/16/mobile-milestone-the-number-of-smartphones-in-use-passed-1-billion-in-q3-says-strategy-analytics/

3 See:http://www.apnic.net/community/ipv4-exhaustion/ipv4-exhaustion-details4 See:http://www.ripe.net/internet-coordination/ipv4-exhaustion5 IPv4AddressReportavailableathttp://www.potaroo.net/tools/ipv4/index.html,accessedDecember9,2012.6 See:http://tools.ietf.org/html/rfc17527 StevenJ.Vaughan-Nichols,US government gets an “F” for IPv6 Internet make-over,http://www.zdnet.com/us-government-gets-an-f-for-ipv6-internet-make-over-7000005055/(October1,2012).

8 CarolynDuffyMarsan,Google:IPv6iseasy,notexpensive,http://www.networkworld.com/news/2009/032509-google-ipv6-easy.html(March2009).9 Gartner,Inc.,“HowtoUpgradeInternetConnectivityWithIPv6,WhileKeepingIPv4,”BjarneMunchandNeilRickard,June27,2012.10HaythumBabiker,IrenaNikolova,andKiranKumarChittimaneni,Deploying IPv6 in the Google Enterprise Network: Lessons Learned (Practice & Experience

Report),http://static.usenix.org/events/lisa11/tech/full_papers/Babiker.pdf(December2011).11JoabJackson,Usenix: Google Deploys IPv6 for Internal Network,http://www.cio.com/article/696247/Usenix_Google_Deploys_IPv6_for_Internal_Network

(December 2011).12Huque,S.Are You Part Of The 1%?RetrievedDecember9,2012,fromhttp://www.informationweek.com/infrastructure/ipv6/are-you-part-of-the-1/240005029

13“SilverSpringNetworksSuccessfullyCompletesIEEE802.15.4gInteroperabilityTesting,”SilverSpringNetworkspressrelease,September5,2012,ontheSilverSpringNetworkswebsite,http://www.silverspringnet.com/newsevents/pr-090512.html,accessedDecember28,2012.

14“SilverSpringNetworksExtendsGlobalSmartGridLeadershipWithNewOfferingsforBrazilianUtilities,”SilverSpringNetworkspressrelease,October23,2012,ontheSilverSpringNetworkswebsite,http://www.silverspringnet.com/newsevents/pr-102312.html,accessedDecember9,2012.

15See:https://cio.gov/wp-content/uploads/downloads/2012/09/Transition-to-IPv6.pdf16See:http://usgv6-deploymon.antd.nist.gov/cgi-bin/generate-gov,accessedNovember30,2012.17RonBroersma,Enterprise IPv6 Deployment - Lessons, Observations,http://www.v6.dren.net/RMv6TF-DREN-2012.pdf(April2012).18Gartner,Inc.,“InternetProtocolVersion6:It’sTimefor(Limited)Action,”NeilRickard,originallypublishedDecember8,2010;updatedMay24,2012.19Gartner,Inc.,“HowtoUpgradeInternetConnectivityWithIPv6,WhileKeepingIPv4,”BjarneMunchandNeilRickard,June27,2012.20TheFederalCIOCouncilStrategyandPlanningCommitteeTechnologyInfrastructureSubcommitteeFederalIPv6WorkingGroup,Planning Guide/Roadmap

Toward IPv6 Adoption within the U.S. Government,http://www.ipv6forum.com/dl/presentations/USGv6Roadmap.pdf(May2012).21AdditionalinformationisavailableinDeloitteConsultingLLP(2012),“TechTrends2012:ElevateITfordigitalbusiness”,www.deloitte.com/us/tech-trends2012,Chapter8.

892013 Technology Trends

ConclusionFaithfulreadersofourTechTrendsreportswillfindsome familiar topics in these pages. The postdigital forces have seen extraordinary attention in the past four years – and each is still in the early stages of adoption.Thebookonhoweachcanfundamentallyreshape business is still being written.

Although the topics are familiar, the underlying trends continuetoevolveatanastoundingpace.Takemobile,forexample.In2010thestorywasaboutubiquitousconnectivityanddevice(i.e.,smartphone)advances.In2011,thefocuswasonthe“app”–andtheadventofthetablet.In2012,wecoveredenterpriseimplicationsfor prioritization of opportunities, as well as the operational realities of governing, managing, and delivering mobile solutions. And now in 2013, we consider mobile’s place as an utmost strategic priority. The very notionof“devices”isexplodingintonear-ubiquitousconnectivity of many physical objects. The fundamental element of mobile still applies – the innovative idea of removing limitations based on physical location, and of a truly untethered enterprise. But the supporting nuanceanddetailsaremovingatarapidclip,makingitparamountforITexecutivestokeeppacewithchange.

Postdigital’spotentialcanspurbothoffensiveanddefensive responses. On one side lies opportunity for innovation. On the other, the existential threat ofdisruption.Everyindustrymaybeaffectedbytheunderlyingdigitalforces.Everymarketmaybe reshaped by their controlled collision.

Whowillleadthecharge?ThereportsofIT’sdemisemay be exaggerated, but there is often truth behind therhetoric.HowwillCIOsreimaginetheirrolesinbusinessstrategy?WhatwillthecorrespondingITdepartmentlooklike?Onethingisforcertain:theelements of postdigital will play a foundational role.

Weclosethisyear’sreportwiththefamiliarquotefromfuturistWilliamGibson:“Thefutureisalreadyhere…itisjustnotevenlydistributed.”Ourhopeisthat the Tech Trends reports will help you discover the elements of postdigital in your enterprise.

90

JeffAnderson,RajeswariChandrasekaran,IanClasbey,GregComline,TeresaDannemiller,AlexDea,LeeDittmar,RafeDyer,ChrisGaribaldi,MichelleHernandez,JonHoehler,DanHousman,KristiLamar,NicoleLeung,AndrewLuedke,ChrisMartin,TaimurMohammad,BlairNicodemus,IzzyPark,AaronPatton,AaronReabow,FarhanSaeed,GordonSandford,TerryStuart,TammySwartz,VikashTiwari,EmadToukan.

Research Leads:ChrisChang,JustinFranks,TomGleason,NickJohnson,AbhishekMishra,JoseMunoz,ParidhiNadarajan,SamSoneja,JeremyYoung.

Team Members: JacobArtz,FelixChang,JennaChen,JosiahDavis,PhilipDavis,KevinDowns,JeffEiden,JasonFebery,AndrewFisher,RamyaGaneshan,DwijGarg,LeksiGawor,AnilGopala,TaylorHedberg,SamJamison,CoreyKe,KanishaKhaitan,RebeccaKim,AdrianKosciak,KarthikKumar,JoyLi,RyanMalone,SimyMatharu,EstefiMedina,SeanMullins,HollyMusemeche,AbhishekNarula,AudreyNguyen,DanNieves,Chinyelu Offodile,AkshaiPrakash,NathanRabold,AdamRe,TalalRojas,BradShivley,DilysSun, YairTon,JennyZheng.

Consumer Products ContributorsAlLanghals,SuketuGandhi,MarcusShingles,MattLaw,KarlRupilius,DarwinDeano,OliverPage,JarrodPhipps,MaratSurenovichMamedov,DavidTobin,AprilAsico.

Special ThanksHeidiBoyer,CyndiSwitzer,andStuartFano–theveteranheartandsoulofourTechnologyTrendsteam.Youcontinuetoamazewithboundlessenergy,selflessteamspirit,and pushingustoconstantlyraisethebar(andhitdeadlines).MariahnaMoore,JillGramolini,andKellyGanis–formakingahugeimpactinyourfirstyearTechTrending.Thisyear’sreport would not have been possible without your drive, enthusiasm, and willingness to takeon(anddeliver)meatycontent.

Contributors

91

Authors

2013 Technology Trends

CIO as the Postdigital CatalystSuketuGandhi Principal,DeloitteConsultingLLP [email protected]

Bill Briggs Director,DeloitteConsultingLLP [email protected]

Mobile Only (and beyond)Shehryar Khan Principal,DeloitteConsultingLLP [email protected]

MikeBrinker Principal,DeloitteConsultingLLP [email protected]

Social Reengineering by Design

StephenRedwood Principal,DeloitteConsultingLLP [email protected]

ChrisHeuer SpecialistLeader,DeloitteConsultingLLP [email protected]

Design as a DisciplineJRReagan Principal,Deloitte&ToucheLLP [email protected]

NelsonKunkel Director,DeloitteConsultingLLP [email protected]

IPv6 (and this time we mean it)Bruce Short Director,DeloitteConsultingLLP [email protected]

EdwardReddick Director,DeloitteConsultingLLP [email protected]

Finding the Face of Your DataDavid Steier Director,DeloitteConsultingLLP [email protected]

VikramMahidhar Director,DeloitteLLP [email protected]

Gamification Goes to WorkAndreHugo Director,DeloitteDigitalRSA [email protected]

DougPalmer Principal,DeloitteConsultingLLP [email protected]

Reinventing the ERP EngineBill Allison Principal,DeloitteConsultingLLP [email protected]

RickKupcunas Director,DeloitteConsultingLLP [email protected]

No Such Thing as Hacker-proofKelly Bissell Principal,Deloitte&ToucheLLP [email protected]

Kieran Norton Principal,Deloitte&ToucheLLP [email protected]

The Business of ITPeterVanderslice Principal,DeloitteConsultingLLP [email protected]

BryanFunkhouser Principal,DeloitteConsultingLLP [email protected]

MarkWhiteChiefTechnologyOfficerPrincipal,[email protected]

Bill BriggsDeputyCTODirector,[email protected]

Disruptors Enablers

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