Cost of a Security Data Breach Rises According to 9th Annual Ponemon Institute Study

The “Cost of Data Breach Study” (sponsored by IBM), was recently conducted and published by Ponemon Institute. Close to 300 organizations from eleven countries participated in this year’s study. There are some important findings for Security Professionals.

Data breaches are becoming increasingly common around the world. It seems like we hear of a major breach every other week and who knows how many we don’t hear about. A major data breach can cost large companies millions of dollars in lost records and then the research into what happened, why it happened, and what to do prevent future attacks. But the highest cost of all is that of a loosing a customer forever.

The study asked some key questions of organizations participating in the study, including

    • What is the cost of a data breach?
    • What are the main causes of a data breach?
    • What types of attacks result in the highest data breach costs?
    • What is being done to reduce the cost of a potential breach?
    • Which threats pose the greatest concern?
    • How effective are the current methods being used to avoid breaches?

With up to nine years of data to work with, this annual Cost of Data Breach Study conducted by Ponemon offers detailed trending information on the cost of a data breach. The cost measurement includes direct, indirect and opportunity costs associated with an organization’s response to the theft or loss of personal information.

Some overall important findings include:

  • Most countries saw an uptick in both in the cost per stolen or lost record and in the average total cost of a breach.
  • The average cost of data breach has increased 15% to $3.5m
  • The cost of each stolen sensitive and confidential data occurrence has increased 9% to $145
  • Fewer customers remain loyal after a breach, particularly in the financial services industry.
  • For many countries, malicious or criminal attacks are the most frequent root cause of the data breaches.
  • Having business continuity management involved in the remediation of a breach can help reduce the cost.

Root Causes of a Data Breach

Some country-specific findings include:

  • US and Germany respondents reported the most costliest breaches with each costing $201 and $195 respectively. India and Brazil reported the lowest, with each costing $51 and $70, respectively.
  • Countries which are most likely to face data breach include India, Brazil and France
  • Data loss cost companies most customers in France and Italy while least number of customers were lost by companies in Brazil and Arabian region.
  • The main cause of data breach differs from country to country
    • Malicious or criminal attack was the highest cause in Germany and Arabian countries
    • System glitch is main cause of breach in India
    • Human error is the main cause of breach in the UK and Brazil.
  • Malicious attacks were the costliest type attack with the US and Germany with organisations paying maximum of $246 and $215 per compromised record while least amount paid in India and Brazil, where companies paid $60 and $77 per compromised record, respectively.

Recommendation:

  • As a preventive measure, companies should have a crisis management and data breach response plan in place. The research shows that having an efficient and swift response to the breach and containment of the damage reduces the cost of breach significantly.

To download the complete report please use the following link: www.ibm.com/services/costofbreach

12 Trends to Watch in Enterprise Security for 2014

Security is a long term trend that just continues to grow in importance as the number of potential entrances that can be exploited grows.  Today’s CIOs have security on their mind 24×7.

As new technologies like cloud, mobile and social take the IT landscape by storm, security risks grow exponentially.  The data center is more vulnerable than ever.  New threats are  emerging daily and even hourly.  For this reason, it is no longer enough for organizations, or even entire governments, to try to address security strictly within their own enterprises, they must understand and protect all the the potential external risks.

In my  report “Enterprise IT Security Trends To Watch In 2014” available on Slideshare, I provide the following list of twelve trends I am watching this year around the Enterprise Security Trend.

  1. “Target”ed Attacks: Expect more targeted and coordinated attacks (like we saw at Target) that are successful in disrupting service and fraudulently obtaining significant amounts of intellectual property.
  2. CISO Role:  As a result of attacks, more enterprises will institute the Chief Information Security Officer role and task them with developing a corporate wide security strategy.
  3. More Complexity: IT Security continues to become very complex, thanks to the ‘third platform” of mobile, social, big data, and cloud. Enterprises must guard against both theft of data, fraud, etc. and hacking into systems and infrastructures.. Security skills will be in high demand.
  4. Encryption:  Expect a huge interest in encryption technologies as enterprises realize that unencrypted data traffic behind the firewall is vulnerable to detection from outsiders.
  5. Biometrics:  The acceptance of biometrics has been very gradual. In 2014, we will see increased adoption of biometrics as a way to transition from the traditional user ID/password combination used most frequently to verify online identities.
  6. Internet of Things:  Need to secure enterprise systems against unwelcome access by Sensors, M2M Devices, Wearables and Embedded Systems.
  7. Security Automation:  Enterprises will invest in better security management facilities, the use of analytics and intelligence to identify trends and usage patterns, and the ability to monitor, report, and act on security intelligence.
  8. Smarter Malware:  Malicious code authors are very adept at camouflaging their work. They will get smarter in 2014. Expect mobile to be a target.
  9. Mobile Threats:  Mobile usage overtakes PCs. Mobile security platform weaknesses are giving rise to new threats. In 2014 hackers/criminals will increasingly target Mobile email, apps, platforms, wallets, and app stores.
  10. BYOWearables:  Employees will be bringing their Smart Glasses, Watches, and Health Monitors to work with them, causing more complexity for I.T. Security professionals.
  11. Device & Location Important:  Enterprises begin analyzing both device and location information to help them understand the potential context of the user’s attempt to access the network.
  12. BYOS:  Expect a rise in “bring your own security” scenarios, in which employees using their own mobile devices for work also employ their own personal security measures – often without the consent or awareness of enterprise security managers.

 

Top 18 Trends in Application Software Development for 2014

Note:  The following blog was published in March of 2014.  If you are looking for my 2015 tech trends reports head on over to the post: 2015 Trend Reports Are Now Available

 

Below you will find my list of the top trends in 2014 for application software development along with a information about my latest Application Software Development Trends to Watch in 2014 report that you can download out on slideshare.

Trends in Software Development

The emergence of a new computing era built on a secure platform of mobile, social, cloud, and big data/analytics capabilities is impacting business models and processes.  Keeping pace with new trends such as mobile, big data analytics, and the growing move towards cloud-based systems has brought new and more challenging issues to the forefront of application development.   Application software developers must transform old legacy applications to align with fast changing business needs. In today’s environment, application development teams need increased agility, new skill sets, distributed teams, and more complex software engineering methods.

Here then, is my list of top software development trends for 2014

  1. Innovate for the “Third Platform”:  Legacy is old. Developing on the third platform will accelerate in 2014. However, it requires new skills in Security, Social, Cloud, Mobile, Big Data/Analytics, IoT, HCI, Gamification, and Cognitive Computing.
  2. Use of APIs Accelerates: In 2014, we are going to see a huge leap forward in how APIs are put to use to drive innovation and help organizations be more efficient and profitable.
  3. Designing For Hybrids: Developers must design private cloud services with a hybrid future in mind . Must make sure future integration and interoperability are possible, while securing the enterprise at the same time.
  4. IoT & Embedded Systems: Demand for skilled developers who can develop sense and respond systems and other IoT-based solutions increases.
  5. Integrating Front and Back Office: Growing integration requirements between back office IT and operations – for example with smart physical hardware (pumps, switches etc) capturing info relevant to operations, business management; cyber security; etc.
  6. Secure The Enterprise!: With the advent of distributed systems, mobile, IOT, etc, there is no longer a fixed perimeter to fully protect now. The ‘attack surface’ is now huge. Developers will called upon to secure the enterprise.
  7. Software Defined “Everything”: In 2014, the buzz around Software Defined will increase. Enterprises and service providers force clear definitions . Expect numerous product announcements from vendors.
  8. Application Containers: The next big thing is containerizing and virtualizing the application, not just the machine. Watch companies include Docker and ZeroVM.
  9. DevOps Adoption Accelerates: More than just about automating deployments, DevOps requires cultural change, including coordination, collaboration and trust among the teams that participate in the application lifecycle.
  10. Open Trend Continues: Open Source, Open Standards, OpenStack, OpenFlow, Open Compute, and Open Data.
  11. Crowd Sourcing/Funding: Crowd sourcing of everything. Now projects are crowd sourced and crowd funded. Support is now crowd supplied in places like stack overflow.
  12. Hack Days: Becoming more popular as a way to develop innovative new software and features within a tight deadline.
  13. Hadoop: The Hadoop ecosystem is maturing. Expect a whole new set of real-time analysis capabilities.
  14. HTML5 Growth: Businesses have started to truly understand the advantages (and limitations) of HTML5 in the enterprise. In 2014 we will see a new focus toward the ‘write once, play everywhere’ concept.
  15. Secure Enterprise Mobile Apps: Developers need to roll out more secure alternatives to popular mobile apps. New pressures to make sure all enterprise apps are thoroughly vetted from a software security standpoint.
  16. Application Performance Management: Vendors and their customers increasingly scrambling to address and control under-performing application environments.
  17. Consumerization: Enterprise Developers need to keep an eye on what is being developed for Consumers. That next great consumer device, app, or solution may just be what’s needed for the enterprise.
  18. Skills in Demand: Developers who have deep cloud, mobile, big data/analytics and security development skills will be increasingly in demand . Programming skills valued include: 1. Java / Javascript , 2. C# / ASP.NET, 3. C++, 4. Python, 5. PHP, 6. SQL / MySQL, 7. HTML5 / CSS3, 8. Ruby on Rails, 9. Hadoop, 10. iOS / Android (source: Cybercoders).

 

Enterprise Security: 10 Experts Who Tweet and Blog

For the HorizonWatching Trend 2014 report:  Enterprise IT Security Trends to Watch in 2014 I wanted to provide a list of people who are active on social networks and are talking about issues related to Enterprise IT Security.

So I did some research on Twitter to find people with large numbers of followers who were talking about the Enterprise Security topic.   I would not necessary call these people influencers, but they do have extensive reach.  When they tweet, they have the potential to reach many people.   In addition to being active on Twitter, these people are all out on LinkedIn (link to their profile provided below) and all of these people blog as well.  In my trend report, I provide links to their blogs.

These people are all producing and sharing thought leadership and opinions about the current and future state of enterprise security.

Below I provide a list of ten people (a subset of my list of the full list of 20 people you will find in Enterprise IT Security Trends to Watch in 2014 ).   If you are in the Enterprise Security area, I’d suggest following these people, check out their blogs, and perhaps striking up a relationship with them.

LinkedIn

Title & Company

Twitter ID

Eugene Kaspersky

CEO and Co-Founder Kaspersky Lab

e_kapersky

Mukesh Sharma

CEO & Founder,  iHackers

iHackers

Brian Krebs

Founder, Krebs on Security LLC

briankrebs

Bruce Schneier

Fellow, Harvard Law School

schneierblog

Jermiah Grossman

CTO, WhiteHat Security, Inc.

jeremiahg

Chris Wysopal

CTO, Veracode

WeldPond

Angela Orebaugh

Fellow, Booz Allen Hamilton

AngelaOrebaugh

Mohit Kumar

Senior Executive at Deloitte

unix_root

Rich Mogull

Security Editor, TidBITS

rmogull

Dan Philpott

Founder, FISMApedia

danphilpott

Application Software Development Trends and Prediction Articles for 2014

Keeping pace with new trends such as mobile, big data analytics, and the growing move towards cloud-based systems has brought new and more challenging issues to the forefront of application development. In today’s environment, application development teams are exploring ways to increase agility, develop new skill sets, implement distributed teams, and implement more complex software engineering methods.

I recently published my trend report Application Software Development Trends to Watch in 2014.  It is over on slideshare.    Below I’ve provided you a list of 10 articles that you might be interested in.

Source Title
Zenoss Why 2014 is the year of the Software Defined Data Center
Computer Weekly The future of application development
SDNZone SDN Predictions 2014: How SDN Will Transform IT
ZDNet Enterprise software 2014: Three themes to ponder
sdnCentral SDN and NFV Technology Trends to Watch in 2014
Fierce Wireless Tech SDN will be 2014’s biggest network trend, says Strategy Analytics
The Guardian 10 app trends for 2014: privacy, wearables, education and more
Tech Republic 10 predictions for open source in 2014
APM Digest 14 APM Predictions for 2014
Web Ascender 14 Website Trends for 2014

 

Enterprise Mobile Computing Trend and Prediction Articles for 2014

The rise of mobility in the enterprise has already had a huge impact, and it will only continue to grow. While there’s much focus from a consumer standpoint on the different mobile and wearable devices, over the next three to five years the most cutting edge advances in mobile will not be in device itself, but instead what is done with it. Mobile computing is at a turning point as we are entering the second wave of the mobile revolution: the business of mobile. Just as the Internet transformed industries like banking, travel and healthcare – so too will mobile.

I recently published my trend report Enterprise Mobile Computing: A HorizonWatching 2014 Trend Report.  The 32 page report provides an overview of Enterprise Mobile Computing Trends to Watch in 2014. Below I’ve provided you some articles on this trend that I thought you would want to read.

Source Title
CIO.com 10 Mobile Tech Predictions for 2014 (Slideshow)
Online Media Daily 2014 Trends In Mobile Marketing And Advertising
Information Age Mobile collaboration in 2014: 4 big predictions
Mobile Enterprise Mobility Outlook 2014
365Online Top 11 Mobile Trends Of 2013
Forbes 7 Ways Mobile Will Change Business In 2014
The Mobile Retail Blog 3 Mobile Marketing Trends to Emerge in 2014
Industrial Distribution Three Key Trends In Mobile Computing In 2014
Mobility TechZone 2014 Prediction: Consolidation Will Firm Its Grip
Mobile Enterprise Technology Predictions

 

Enterprise IT Security Trends and Prediction Articles for 2014

Security is one of those long term trends that just continues to grow in importance and size. Information security professionals face the challenge of detecting an ever increasing number of threats.

Consumerization, social, mobile, cloud, big data and IoT are all contributing an increased risk of security and data breaches . The data center is more vulnerable than ever. New threats emerge daily and even hourly and we hear reports of major attacks daily on the nightly news.

I recently published my trend report Enterprise IT Security Trends To Watch In 2014 out on slideshare.  This  trend report provides an overview of Enterprise Information Technology Trends to Watch in 2014.

Below I’ve provided you some articles on this trend that I thought you would want to read.

Source Title
Channel Pro Cybersecurity: The landscape in 2014
Trusteer The Most Dangerous Malware Trends for 2014
Information Age 8 cyber security predictions for 2014
ZDNet Cybersecurity in 2014: A roundup of predictions
PCWorld Security prediction for 2014: It will get worse
PerspecSys Cloud Security – 5 Predictions of What We’ll See in 2014
Enterprise Networking Planet 5 Network Security Predictions for 2014
Real Business 14 IT security predictions for 2014
Info Security Top 13 Cyber Security predictions for 2014…
Cisco Our Unofficial Top Ten Cyber Trends for 2014

 

IBM’s 5 in 5 List for 2013: Humans and Computers Become Smarter Together

IBM 5in5 2013Every year around this time, the IBM Research team publishes a list called “5 in 5”.   The list is based on research into market and societal trends as well as emerging technologies from IBM’s Research labs around the world.  As a foresight analyst, I love these annual lists as it’s a little bit of trends research readout and a little bit of scenario planning that’s all designed to get people thinking and talking about how our lives will be transformed in the near future by technologies that are being developed today.

This year’s IBM 5 in 5 explores the idea that humans and computers will become smarter together and as a result of learning insights from the vast amounts of data.  The 2013 5 In 5 lists explore scenarios in education, retail, healthcare, security and our cities.   IBM says that in the future, everything will learn – driven by a new era of cognitive systems where machines will learn, reason and engage with us in a more natural and personalized way. These innovations are already beginning to emerge, enabled by cloud computing, big data analytics and learning technologies all coming together. Over time, these computers will get smarter and more customized through interactions with data, devices and us.  Humans and computers will learn faster and the result will be that we will be able to solve previously unsolvable problems in education, retail, healthcare, security and our cities.

So this year’s 5 in 5 from IBM is as follows

1. The Classroom Will Learn You.    IBM says that the classroom of the future will give educators the tools to learn about every student, providing them with a tailored curriculum from kindergarten to high school and on to employment. In the next five years the classroom will learn about each student using longitudinal data such as test scores, attendance and student’s behavior on e-learning platforms, not just aptitude tests.  Sophisticated analytics delivered over the cloud will provide decision support to teachers so they can predict students who are most at risk, their roadblocks, and then suggest measures to help students conquer their challenges based on their individual learning style.  For more, read the full story around “The Classroom Will Learn You” 
2. Buying Local Will Beat Online.   Today, most physical stores are limited to the insights they can gain at the point of sale – and the trend of showrooming is making it harder to compete with online retailers who compete solely on price.  IBM says that In five years, new innovations will make buying local du jour once again.  Savvy retailers will use the immediacy of the store and proximity to customers to create experiences that cannot be replicated by online-only retail.  They will magnify the digital experience by bringing the web right to where the shopper can physically touch it.   For more, read the full story around “Buying Local Will Beat Online” 
3. Doctors Will Routinely Use Your DNA To Keep You Well.   Imagine if treatment could be more specific and precise – where computers could help doctors understand how a tumor affects a patient down to their DNA and present a collective set of medications shown to best attack the cancer.   IBM is predicting that in five years, advances in big data analytics and emerging cloud-based cognitive systems coupled with breakthroughs in genomic research and testing could help doctors to accurately diagnose cancer and create personalized cancer treatment plans for millions of patients around the world.  Smart machines will take the output of full genome sequencing and scour vast repositories of medical records and publications to learn and quickly provide specific and actionable insights on treatment options for oncologists.  For more, read the full story around “Doctors Will Routinely Use Your DNA To Keep You Well”    
4. A Digital Guardian Will Protect You Online.  IBM says that by 2019, each of us could be protected with our own digital guardian that will become trained to focus on our digital and physical assets, offering a new level of identity theft protection. Security will assimilate contextual, situational and historical data to verify a person’s identity on different devices. By learning about users, a digital guardian can make inferences about what’s normal or reasonable activity and what’s not, acting as an advisor when they want it to.  For more, read the full story around “A Digital Guardian Will Protect You Online”     
5. The City Will Help You Live In It.    IBM has been leading the discussion around Smarter Cities  for about five years.   IBM is saying now that within five years Smarter Cities will be able to react more in real time.  Computers will learn to understand what people need, what they like, what they do, and how they move from place to place.   Soon it will be possible for cities and their leaders to understand and digest new information freely provided by citizens, knowing which city resources are needed, where and when, so the city can dynamically optimize around the needs of the citizens.   For more, read the full story around “The City Will Help you Live In It”.

There is much more content for you to learn more about each one of the 5 in 5 prediction scenarios.   For more information, you can check out

And, if you want to, you can explore all the past lists of IBM 5 in 5 projects and how those technologies have progressed since appearing on the list.  For that go to Five in Five—where are they now?

32 Articles Discussing IT Security Trends for 2013

SecuritySecurity is one of the most important long term trends happening in the Information Technology Industry today. 

There so many challenges facing enterprise I.T. departments, many of which were just not a major challenge 10 years ago.  The advent of cloud, mobile, social, big data, other digital trends is taxing even the most secure enterprise I.T. infrastructure.  Enterprise IT systems are sending and receiving more information to partners, customers and external stakeholders over a wide variety of networks.    In addition to those disruptive and emerging technology  trends is the fact that the criminals and hackers out there are getting more and more sophisticated in their planning of cyber attacks.

Today, our world’s infrastructure is both more sophisticated and more interconnected than ever before – linking vast amounts of information and services in new ways, but also introducing more security complexities and challenges in roughly equal proportion. For this reason, it is no longer enough for organizations, or even entire governments, to try to address security strictly within their own enterprises.

The list below contains 32 articles and blog posts I found recently that discuss the important 2013 trends to watch out for within the overall I.T. Security topic.  Read a few of these and you will get a good idea of what challenges await CIOs and their staffs in 2013.



Source Title of Article / Blog Post
BizTech2.com Key Security Predictions For 2013: Kaspersky Lab
BizTech2.com McAfee’s Top 10 Threat Predictions For 2013
BizTech2.com Verizon’s Data Breach Predictions For 2013
ComputerWeekley Security Predictions for 2013
CSO Online.com Global Information Security Survey 2013: Breaches, BYOD – and boy bands
CTO.Vmware.com Beyond SDNs – Networking & Security in 2013
CXOToday.com Top 10 enterprise security predictions from McAfee
eWeek BYOD, Social Media Among Top Security Threats of 2013
Forbes

The Biggest Cybersecurity Threats of 2013 

Fortinet Fortinet’s FortiGuard Labs Reveals 2013 Threat Predictions
Frost & Sullivan Frost & Sullivan Advocates New Strategies Against Advanced Cyber Threats
F-Secure F-Secure’s Top 7 Predictions for 2013 (If the Internet as We Know It Still Exists)
F-Secure Seven Predictions for 2013
InformationWeek 7 Top Information Security Trends For 2013
Insurance Networking News Top 10 IT Security Trends for 2013
Microsoft Using the Past to Predict the Future: Top 5 Threat Predictions for 2013
RSA’s Art Coviello 8 Computer Security Predictions For 2013
SCMagazine Top 7 end-user security priorities for 2013
Security Sales & Integration 2012 Top Technology Innovations 
Softpedia Top 5 Security Predictions for 2013 from ISF
Syantec Top 5 Security Predictions for 2013 from Symantec
Telecomasia.net Cybersecurity predictions for 2013
The Guardian Data privacy predictions for 2013
The Guardian Five trends that will reinvent your approach to cyber risk in 2013
ThreatMetrix Top Cybersecurity Trends and Risks For 2013 Identified
Trend Micro Security Threats to Business, the Digital Lifestyle, and the Cloud
Trend Micro Trend Micro Predictions for 2013 and Beyond: Threats to Business, the Digital Lifestyle, and the Cloud
Trend Micro Trend Micro Releases Security Predictions for 2013 & Beyond
Venturebeat 6 big cybersecurity predictions for 2013
virtualization Review 3 Predictions for the Data Protection Industry in 2013
Watchguard Technologies WatchGuard Reveals Top Security Predictions for 2013
Websense 2013 Security Predictions

I.T. Security: IBM Content on Websites, Social Media, White Papers and Reports

Security Security is one of those important trends that will always be important because there is always a dark element out there that is trying to get around security’s defenses.  The bad people keep getting smarter on how to beat security so those in IT need to keep getting better at securing enterprise IT resources.

Of course, the Internet is to blame, right?.  Back 25 years ago, most enterprises were probably more worried about physical security than they were someone hacking in over telecommunications lines.  However, with the growth of the Internet, there has been a lot of attention paid to the security of web applications in recent years. Web applications are now widely deployed now for banking, home shopping and inter business activities. And in the past 3-4 years, mobile, cloud, and social applications have grown exponentially.  These new application are used by a very wide and vast user base which was never possible with older technologies. As a consequence, they have become increasingly attractive targets for cyber criminals and those intent on wreaking havoc for fun or profit.   Every year we are seeing more and more high profile organizations suffer very public exposures because of attacks targeted at their web applications.

IBM has always focused on delivering security solutions and services and as such, there is tons of content out on the ibm.com website for those who would like to learn more about the security trend.  So, as a service here to readers of this blog, I am providing direct links to the most current reports, websites, and social accounts related to the security trend.  The reports and sites below are all hotlinked.  If you see something that is missing, let me know and I will revise this post.

IBM Security Websites

  • Smarter Planet:  Security and Resillience:  Tabs for “Overview”, “Case Studies” and “Solutions”
  • Smarter Computing:  Security – Build a secure infrastructure to comply, reduce risk and protect
  • Services:  IT Security Services – Links to info on Managed Services, Professional Services, Payment Card Industry Solutions, Security Intelligence
  • Software:  IBM Security – Tabs for “Learn”, “Services”, and “Connect”
    • Tivoli:  Security, Risk and Compliance Management – Overview of the portfolio of security, risk and compliance management software, hardware and services
    • Tivoli:  IT Security – Extensive information & links to help you deliver effective governance for identity and access management
  • Systems: 
  • Cloud Computing:  Cloud Security
  • developerWorks:  Security – Tabs for “Overview”, “Practices”, “Products”, and “Community”

IBM Security on Social Media

IBM Security White Papers, Reports, etc.

IDC Retail Insights: Predictions for 2012 for the Retail Industry

IDC has released its IDC Retail Insights' Predictions for 2012 via it’s annual predictions conference call.  This was a global predictions call and was focused broadly on all types of financial services.  There are also other calls coming up that focus on regional predictions in both Europe and Asia as well as calls specific to sub-industries within Financial Services.   

Leading this conference call was Bob Parker Group Vice President.  Other IDC Retail Insights team members on the call were

Summary

According to IDC Retail Insights, the economic indicators are strong going into 2012.  IDC believes that year to year spending growths for Retail Industry segments will range from a low of 3.9% for for Home Furnishing to a high of 5.6% for Drug Stores.  Spending will grow the fastest in the software at 5.8% year to year, while services growth will be lowest at 3.5%.  Asia Pacific is poised to grow the fastest at 4.8% while Western Europe will only row at 3.6%.

The IDC Retail Insights team also confirmed four major IT trends that are reshaping the industry:  Cloud Computing, Social Computing, Mobile Computing, and Analytics.

The Ten Predictions

The 2012 predictions list below was sourced from the conference call slides.

  1. Growth Strategy. “Consumers, not products or channels, create the basis for growth strategies.”
  2. New Retail IT Model. “The Omni-Channel Consumer directs a new Retail IT model for the industry – O3.” 
  3. Innovative & Efficient. “Retailers will race to innovate and will operate more efficiently.”
  4. Synchronicity. “Retailers will synchronize the supply chain with the clock speed of their customers.”
  5. Brand Experiences. “Retailers will create great brand experiences by enabling engaged employee experiences.”
  6. Customer Engagement. “Planning paradigms will begin to evolve to support genuine customer brand engagement strategies.”
  7. Assortment Planning. “Continuous assortment planning (AP) orchestrated for space becomes the planning hub.”
  8. Store Evolution. “The store evolves – welcome to the Omnichannel Store.”
  9. Social Conversations. “Customer experience improvements that boost online conversion will go beyond the web store.”
  10. Delivery Models. “eCommerce delivery models will fragment.” 

For More Information

IDC Financial Insights: Predictions for 2012 for Financial Services

IDC has released its IDC Financial Insights' Predictions for 2012.  The December 6, 2011 annual predictions conference call was marred by technical problems, but the IDC team went ahead and recorded the webinar portion.  The recording will be available on the IDC Predictions website and has been loaded to You Tube, here and is also embedded below.

This was a global predictions call and was focused broadly on all types of financial services.  There are also other calls coming up that focus on regional predictions in both Europe and Asia as well as calls specific to sub-industries within Financial Services.  

Leading this conference call was David Potterton, Vice President of Global Research.  Other IDC Financial Insights team members on the call were Jeanne Capachin, Marc DeCastro, Karen Massey, Aaron McPherson, John O'Brien, Sean O'Dowd, and Michael Versace.

Summary

The IDC Financial Insights team started off the predictions by saying there are going to be four main themes in 2012. 

  1. Meeting regulatory and compliance requirements.
  2. Improving the cross-channel experience
  3. Improving operational cost efficiencies
  4. Improving revenue generation 

The Ten Predictions

The 2012 predictions list below was sourced from the conference call slides.

  1. IT Spending Growth. “Tumultuous financial markets, failing institutions, and lower profits in Europe and the U.S. will inhibit, but not eliminate, IT spending growth.”
  2. Channel Mix. “Financial institutions struggle to harness the right channel mix for an optimum customer experience.” 
  3. New Business Models. “Financial institutions will see the need to develop a new business model, but execution will elude the industry.”
  4. Revenue Generation. “Revenue-generation continues to be a major challenge in 2012 as financial institutions explore new pricing options enabled by technology.”
  5. Reliability of IT. “IT reliability becomes a major risk factor due to the age and complexity of key systems.”
  6. Mobile Payments. “Financial institutions will generate less than 10% of total mobile payments.”
  7. Operational Efficiency. “Financial institutions will continue to tackle operational efficiencies and will target average cost income ratios of 40%.”
  8. Risk Management. “Risk management will top US$60B and 15% of total IT investments across WW financial services.”
  9. Social Media. “Financial institutions will use social media to improve decision making and drive financial results.”
  10. Big Data Analytics. “Over 40% of all tier 1 banking and capital market firms gear up to execute big data / analytics business and technology strategies.”

Webinar Recording via YouTube

 

For More Information