The five key trends which will gather pace next year are:

Internet of Things (and a better mousetrap)
In 2016, IoT use cases will come to life, rather than steps forward in devices themselves. With CES in January, hundreds of new IoT devices will be released, but it won’t be the devices themselves that make waves. It will be the clever use of those devices to generate value. For instance, 90-year old pest control firm Rentokil connects its mousetraps through IoT technology, and has increased operational efficiency through the automatic notifications of a caught animal and its size. Overall, the key theme for 2016 will be identifying the value niches within industries that can benefit from IoT technology rather than trying to change the entire industry. For healthcare, it will likely be connected patients. For retail, it will be around making stronger connections between traditional and digital shopping.

More cloud (more often)
When it comes to the cloud, enterprises are in an awkward tween stage — somewhere between the old world and new. CIOs will continue to adopt cloud applications and seek better ways to connect on-premises systems and the cloud. Hybrid IT is now the reality for many enterprises and many are going through a refresh of their platforms, both business and technology. They are looking for scalable ways to connect and move data to the cloud, on-premises and back again as needed. There is a big emphasis on APIs to unlock data and capabilities in a reusable way, with many companies looking to run their APIs in the cloud and in the data centre. On-premises APIs offer a way to unlock legacy systems and connect them with cloud applications, which is crucial for cloud-first strategies. More businesses will run APIs in the cloud, providing elasticity to cope with spikes in demand and enabling them to adapt and innovate.

Omnichannel strategy (seeing is believing)
More industries will turn to omnichannel strategies to attract and retain customers with improved consumer experiences. In particular, the retail industry will embrace an online-offline approach. E-commerce stores will turn to a complementary brick and mortar store strategy, attempting to bring online shoppers in-store with exclusive offerings and deals, or add value by offering a unique experience beyond the ability to purchase in person. Eyewear retailer Warby Parker offers convenience and choice through a huge online selection, and provides custom fittings or repairs in-store. It’s not just retail either; companies turning to an omnichannel strategy will rely on APIs to create a link between cloud and on-premises systems.

Changing role of the CIO
CIOs are shifting from traditional models to delivering capabilities to their business units which allows them to build their own applications and processes. This decentralisation of IT means IT no longer owns applications but instead governs the data. This contributes to the expanding partnership between business and IT. CIOs are embracing the role of business enabler and are gaining confidence in doing things differently. Successful CIOs will come to the table with a vision that helps put the company on a course of action toward greater digital transformation.

The key step is decentralising IT by opening up APIs to developers and analysts, so they can gain access to reusable data. Additionally, IT will standardise on business and technology platforms to reduce technology footprint.

Rise of the API Economy
More enterprises will adopt an API strategy, with the goal of enabling greater agility and efficiency and driving innovation to compete with emerging startups. Companies like Uber and Slack have achieved major success through open API approaches; now, established businesses will follow a similar strategy. Traditional enterprises will open up APIs internally to break down information silos and unlock data, before opening up those APIs to third parties, creating new revenue channels.

 

ABOUT ROSS MASON//

Ross Mason is the founder of MuleSoft.

Predicted by some industry watchers to be as influential as the Industrial Revolution of the 18th century, the IoT has the potential to invoke massive changes on businesses and communities at large. Indeed, there are predictions out there that the number of connected devices will grow to 26 billion or even 50 billion by 2020.

Around the world, IoT projects are already underway. Sensor networks and connected machines are being built that will provide new services to businesses, governments and individuals. Those organisations able to harness the potential offered by the IoT stand to gain a significant competitive advantage, as existing business models evolve and new ones emerge from the new information and insights that connected devices can provide.

The need for connectivity
At its heart, the IoT is all about the data being generated by millions of connected devices. Sensors networks will monitor and report on traffic flows, and will warn of potential failures in machinery, allowing pre-emptive maintenance to be conducted. Computers and personal connected devices will constantly monitor patients and report any changes in their condition directly to their doctor.

However, for these advantages to be realised, the collected data needs to be able to flow freely through many disparate, interconnected networks and systems. Data generated in different formats needs to be collated, analysed and acted upon.

When IoT devices and services aren’t connected well, valuable data becomes siloed. An IoT initiative can quickly become a ‘Just a Bunch of Things’ (JBOT) and any advantage is lost.

The role of APIs
One of the key ingredients to solving this connectivity challenge and creating successful IoT initiatives is through application programming interfaces (APIs). Because they allow disparate systems and data to talk to each other APIs are critical to enabling IoT devices to connect. As IoT projects grow in scale and scope, an API strategy for device connectivity is critical.

While some industries are already well down the API track, others – such as the healthcare sector – have some way to go. For example, there are already many personal devices that collect data about health and exercise patterns, however there is almost no connection of this information with medical records or health care systems to better patient healthcare.

Frustratingly, this is where the collected data could have the biggest impact. If a healthcare organisation could cross-reference patient records with an individual’s wearable fitness device, the possibilities for improved healthcare are endless. APIs can help to close these gaps between devices and healthcare systems.

The IoT at work
As already mentioned there are many examples of where APIs are already working within IoT projects.

Ride-share company Uber has created a global network of thousands of real-time monitored cars thereby solving a specific transportation problem through connectivity. With an app that communicates with the cars through APIs, a person’s phone can make intelligent decisions about which of the available cars to send.

Meanwhile some retail vendors and service providers are creating more connected experiences through loyalty programmes, gamification and payments. Companies like Coca-Cola and McDonald’s are aiming to use APIs and the IoT to gather more information about their customers, find new ways to better engage with them and determine what products to offer next.

A new architecture
The evolution of the IoT brings particular challenges for CIOs and IT directors who will need to think very differently about data access, scale, reliability and security. The traditional architectures that have been applied to projects in the past will need to be rethought.

The IoT brings in a new era of ‘edge’ computing where IT professionals working on projects will have to think about how to allow millions of sensors to exchange information both with back-end systems and with each other.

In this architecture, the edge layer of the network will be responsible for performing collection and collation of data and real-time event processing to allow automated tasks. This architecture reduces the amount of data sent to back-end systems and provides a control interface that can access and manage local devices and sensors. The role of APIs at this edge layer is critical to providing easy access to connected devices, either through a hub or directly.

Taking an open approach
Increasingly, organisations are coming to recognise the clear benefits and opportunities of using APIs to create an open approach to data. APIs allow for the fluid exchange of information both between internal systems and external networks, such as the IoT.

It’s clear IoT projects will have a profound impact across industries for decades to come. Just as the internet transformed the way in which people interact, so the IoT will do the same for devices. It’s critical for CIOs and IT managers to start laying the foundations for applications and data to be accessed through APIs so that the IT organisation can take advantage of the opportunities and respond to the demands of mobile and the IoT.

ABOUT ROSS MASON//

Ross Mason is founder at MuleSoft, the company that makes it easy to connect applications, data and devices.