IBM CEO Predicts Three Technological Transformations

IBM CEO Rometty predicted that data will be the basis of competitive advantage going forward, calling it the “the next natural resource.” She believes it will change how decisions are made, how value is created and how value is delivered. Here’s a look at what the future may hold.

Data Analytics Will Revolutionize Decision-Making

“Many more decisions will be based on predictive elements versus gut instincts,” Rometty said. Even in the most scientifically oriented fields, she noted that decisions are still being made based on anchoring biases. In other words, leaders and managers interpret information through the lens of their subjective perspective and set of experiences.

However, with the incoming “tsunami of information,” Rometty believes that those companies that are able to use data to their advantage will make better, more objective calls. As an example, she cited IBM’s use of software analytics in its CRUSH (Criminal Reduction Utilizing Statistical History) initiative with the Memphis Police Department. Finding a correlation between rapes and outdoor pay phones, they decided to move the phones indoors, which ultimately contributed to a 30% reduction in crime.

The Social Network Will Drive Value

“The social network will be the new production line in a company,” Rometty predicted. The primary benefit of new social platforms, she said, is that today’s knowledge workers have access to each other. In the near future, she believes “your value will not be what you know, but what you share.”

Not Customer Segments but Complete Individual Personalization

Rather than meeting the needs of different consumer segments—geographic, age or income segmentation, for example—businesses will be able to truly serve the individual.

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