Skip to main content

Exploring the Digital Economy of Interconnected Agents

Why wait for your business model to be disrupted? The most savvy CEOs and informed CIOs will structure their business and technology investments to capitalize on the new economic realities of an emerging Digital Economy, according to the latest worldwide study by Gartner.

"In the flash of a digital business moment, a customer may become a partner or even competitor," said Betsy Burton, vice president at Gartner.

Digital business transformation requires an organizational architecture that empowers economic Agents, and can cope with an exponential increase in interactions from many different things. Gartner calls new economic models arising from digital business the "economics of connections."

Why Connected Agent Ecosystems Matter

This idea builds upon Metcalfe's law, which was originally used to describe telecommunications networks and states that the value of an agent within a network increases exponentially as the number of connections increases.

"Digital business significantly changes this type of value calculation that guides investment decisions," said Ms. Burton. "First, tens of billions of things will join the billions of people and millions of businesses online. Second, any of these agents will be able to play multiple roles -- customer, partner, supplier, employee, competitor, or a combination of them."

As an example, within the U.S. market, DigitalGov enables citizens to access all kinds of information, from government jobs to population data. Thanks to an application programming interface (API), they can also act as partners and suppliers by creating portals and services based on the DigitalGov platform.

Developing Interconnected Agent Networks

Gartner analysts believe that the more ways by which people, businesses and things can be connected to a store of information, the more value it will have. The exponential increase in connections that digital business brings and the different roles each agent may take in the network are making the architecture of digital business less siloed.

"People, processes, information and technology are more fluid and integrated," said Ms. Burton. "To accommodate these dynamic connections among people, businesses and things, enterprise architect (EA) practitioners will have to design a digital business architecture to support them."

In addition, the EAs primary task is to create deliverables that help business and IT leaders achive significant business outcomes. Gartner says that EAs need to start developing unified solutions to track dynamic contextual information about various agents in different roles. With this ecosystem, they will identify the key agents in their digital economy and quantify their value in terms of money, goods, influence and reputation.

Popular posts from this blog

Digital Transformation Spending Reaches $1.8 Trillion

Ongoing investment in business technology will remain on track, despite concerns about the global economic outlook which continues to evolve in 2022. Enterprise CIOs and CTOs are focused on operational profitability and digital business growth goals that are enabled by strategic IT initiatives. Global spending on the Digital Transformation (DX) of business practices, products, and organizations is forecast to reach $1.8 trillion in 2022 -- that's an increase of 17.6 percent over 2021, according to the latest market study by International Data Corporation (IDC). Many anticipated DX investments will sustain this pace of growth throughout the 2021-2025 forecast period, with a five-year compound annual growth rate (CAGR) of 16.6 percent. Digital Transformation Global Market Development "IDC expects to see aggressive DX technology investment growth in 2022 following a minor slowdown during the pandemic period," said Craig Simpson, senior research manager at IDC . "As orga

Flexible Working: Why Company Culture Matters

The main reasons for the Great Resignation are obsolete leadership, fearful middle managers, and a toxic culture that hinders employee engagement. Perhaps that's why some organizations are still struggling with the consideration and development of a flexible working model.  They're incapable of evolving to a more enlightened approach to work where employees are treated with respect. They're stuck in a bygone era of the 20th-century industrial revolution where 'shareholder value' tops all other values, and where spreadsheets and financial data analysis drives all key decision making. We should not be surprised that 76 percent of human resource (HR) leaders now feel that hybrid work challenges an employee's connection to organizational culture, according to a recent survey by Gartner. A 2022 poll of HR leaders reveals the most challenging aspect of setting their hybrid strategy is adjusting the current organizational culture to support a hybrid workforce. In fact,

Energy Sector IoT Cybersecurity Gains Momentum

The electric distribution industry continues to invest in digital transformation projects. Advanced Metering Infrastructure (AMI) technology is becoming a driver for connected electricity meters, which will reach an installed base of 1.3 billion by 2027. AMI growth is prompting utilities and energy suppliers to revisit their IT infrastructure security and device management operations, according to the latest worldwide market study by ABI Research. Energy Infrastructure Security Market Development Digitization of traditional electricity grids and the modernization of the aging energy infrastructure is among the top concerns for utility operators and governments worldwide. Security for last-mile energy consumption applications was frequently overlooked. "However, the introduction of AMI, smart metering, and grid digitization is steadily increasing spending for secure management services, assisting implementers to transition to IT (information technologies) and OT (operational techno