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© 2016 Gartner, Inc. and/or its affiliates. All rights reserved.
 Cool Vendors 2016: Features, Fads, and
Disruptions Lie on the Path to Growth
Daryl Plummer

CONFIDENTIAL AND PROPRIETARY

This presentation, including any supporting materials, is owned by Gartner, Inc. and/or its affiliates and is for the sole use of the intended Gartner audience or other intended recipients. This presentation may contain
information that is confidential, proprietary or otherwise legally protected, and it may not be further copied, distributed or publicly displayed without the express written permission of Gartner, Inc. or its affiliates.
© 2016 Gartner, Inc. and/or its affiliates. All rights reserved.
 Gartner's definition of a cool vendor is a small company
offering a technology or product that is:
· Innovative — It enables users to do things they couldn't do before

“Cool Vendors” · Impactful — It has or will have a business impact; it's not just
"technology for the sake of technology"
· Intriguing — It has caught our interest or curiosity during the past
Generate and Elevate six months or so
Digital Disruption

Our research is structured so that you can quickly determine

what is cool about the vendor, what its challenges are and
who in the buyer organization will benefit from the vendor's
offering.

3 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved.

 Lead from the
Front
A “support” role is
great – until things
begin to crash down
on you.

4 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved.

 2015: This Looked Like a "Crash" Story…

Global IT Spending in
3828 Current U.S. Dollars –
2015 Growth

3662

3.2% 3523

-0.9%
-4.9%
4Q14 1Q15 2Q15
Absent constant currency, IT spending is trending down.

5 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved.

 …And its still not good

2016: Overall Tech Spending

Growth in US Dollars is -0.5%

In Constant Currency, its Devices

Data Center Systems
-3.2%
4.0%

+1.6%
Software 5.8%
IT Services 3.7%
Communications Services -1.1%

6 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved.

And yet… CEOs Expect to Double Digital Revenue Over the
Next 5 Years — Taking “Digital” Through the Tipping Point

7 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved.

 Cool Vendors will
Support Digital
Growth
8 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved.
 As Digital Phenomena Rise, Its not enough to
Remain Behind the Scenes in a Traditional
Support Role

Many will be disintermediated unless they get in

the Face of those driving the change!

9 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved.

 Through 2021, 80% of digital leaders will grow
their leadership & value through disruptive
innovation at the expense of traditional tech
spend.

10 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved.

Example: Public transportation Foregoes its Own
Mapping Features
"Google Maps for Transit is a
truly innovative marriage of
information and infrastructure.
It is a perfect example of how
the public and private sectors
can partner together to benefit
us all -- and it didn't cost New
York taxpayers a penny…”

- New York Governor David A.

Paterson (2008-2010)
Source: Google Maps http://maps.google.com/help/maps/mapcontent/transit/

11 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved.

Where Are You in a Business Moment Scenario?
Meeting Airline notified Hotel notified Rental
attendees car agency
notified notified

Meeting attendees New meeting room

informed about new scheduled based on
arrival time arrival time
Directions
uploaded,
optimized
for traffic
Scott decides to New schedule
Flight delayed continue with his and bookings Smartphone
business travel confirmed used as
airline ticket

Hotel
Smartphone used to notified of Car unlocked
unlock hotel room arrival with smartphone

VPA compiles
expense report
and loads
today's itinerary
Hotel sends folio Directions
after departure
Consumer Part uploaded,
optimized
Scott gets in Waiter for traffic
rental car and delivers
Business Part drives to next city dinner

12
Thing
© 2016 Gartner, Inc. and/or its affiliates. All rights reserved.
Tech Provider Roles?
 Built.io Cool Vendors in Data Virtuality
- Mobile development,
backend, and integration Pervasive - Rapid connect to
multiple data sources
PaaS for digital solutions
Integration, 2016 for integration

Cask Media Driver Maestrano

- Time-constrained and - centralized administration, - Cloud data store to
targeted adaptive management and role-based access interact with multiple SaaS
integration projects, control for a variety of integration solutions
supporting data-driven middleware technologies from multiple
applications and big providers
data initiatives

13 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved.

 Digital Behavior
Encourages Outside-In
Strategies

14 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved.

 A Digital Services Imperative Should Be Top of Mind

• Traditional boundaries between industries

are blurring

• Incumbency is not a guarantee of success

• Value will be in new business designs

involving people, business and things

• Customers expectations are changing

• Competition is coming from unexpected

places

15 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved.

There Will Be Battles To Control Digital Ecosystem Roles

New Digital Ecosystems:

Networks Physical
• Cars • Utilities
Compute Apps • Home • Transportation
Storage
• Factories • Cities
Technology
Ecosystems Healthcare
• Hospital • Insurance
• Fitness • Pharma
Compute
Media Financial
Data • Stored Value • Credit
• Equities • Loans
16 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved.
• Payment • Savings
 Cool Vendors in
Axoom IS Predict
- Intelligent Ecosystem
Digitalization - self-learning platform
marketplace for horizontal
and vertical affiliation of Through Industrie that manages predictive
data analytics and big
value chains and
production processes. 4.0, 2016 data

Derdack HoloBuilder Urwerk

- alert management - construction-focused digital
resolution as a visualization company that is using 3D
collaborative effort images, as well as virtual reality and
augmented reality, to deliver content
- trade virtual assets on an
exchange marketplace that
faces the same market
regulations and supervision
as capital markets

17 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved.

 Example: Virtual personal assistants will control our
connected world
Coding Cortana/Windows 10/Alljoyn
view plaincopy to clipboardprint?
1.<?xml version="1.0" encoding="utf-8" ?>
2.<VoiceCommands xmlns="http://schemas.microsoft.com/voicecommands/1.2">

3. <!-- NB: Not provided UK voice commands as, presently, my PC only

4. works with Cortana when I'm in UK mode
5. -->
6. <CommandSet xml:lang="en-us" Name="VoiceCommands">
7. <CommandPrefix>lightswitch</CommandPrefix>
8. <Example>show the lights</Example>
9.
10. <Command Name="showLights">
11. <Example>show the lights</Example>
12. <ListenFor RequireAppName="BeforeOrAfterPhrase">show [the] ligh
ts</ListenFor>
13. <Feedback>Showing all the lights I can find...</Feedback>
14. <VoiceCommandService Target="VoiceCommandService"/>
15. </Command>
16.
17. <Command Name="switchLight">
18. <Example>turn the bedroom lights on</Example>
19. <ListenFor RequireAppName="BeforeOrAfterPhrase">turn [the] {dic
tatedLocation} lights {onOffStatus}</ListenFor>
20. <Feedback>Just looking for that light for you...</Feedback>
21. <VoiceCommandService Target="VoiceCommandService"/>
22. </Command>
23.
24. <PhraseList Label="onOffStatus">
25. <Item>On</Item>
26. <Item>Off</Item>
27. </PhraseList>
28. <PhraseTopic Label="dictatedLocation" Scenario="Natural Language"
>
29. </PhraseTopic>
30.
31. </CommandSet>
32.
http://mtaulty.com/CommunityServer/blogs/mike_taultys_blog/archive/2015/08/03/win
18 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. 33.
dows-10-adding-cortana-and-voice-control-to-the-uwp-alljoyn-iot-core-lightbulb-
34.</VoiceCommands>
demo.aspx
 Dark Horse: Amazon Echo can already do this AND buy
laundry detergent via voice commands

Amazon Echo Now

Supports IFTTT
19 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Trigger Commands
http://www.pcmag.com/article2/0,2817,2495553,00.asp
 CognitiveScale Mindmarker
- Customer and employee
Cool Vendors - Mobile Reinforcement
Engagement through
machine learning in Retail, 2016 Training Through
Gamification

Jetlore Sentient Versium

- “Relationship Technologies - Predictive Marketing
Commerce” – - AI driven customer through machine
Personalization through personalization and learning
behavior mapping visual “dialogue” to
learn customer intent

20 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved.

 Facebook, Messenger
Payments

Google Wallet, Android Pay,

Pony Express, Google
Competition is Forming Payment Corporation

Between Digital Alipay, Alipay Wallet,

Yu’ebao, MyBank.
Ecosystems Amazon Payments, Amazon
Wallet, Amazon Coins,
Amazon Local Register

Digital giants are already Tenpay, QQ Wallet, WeChat

Payment, WeBank
positioning themselves
for ecosystem leadership ApplePay, Apple ID

Venmo, Paydiant, Braintree,

PayPal

21 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved.

 Estimize Cool Vendors in Kasisto
- Crowdsourced Earnings
Estimates Consumer Financial - Mobile intelligent
customer service for
Services, 2016 banking

FitPay Plaid PeerIQ

- Contactless payments - Internet APIs for - Risk management in
through a wearable developers to build marketplace lending
device without a online logins to banking
smartphone transactions

22 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved.

 1
“If you can’t beat them, join them”
Join With
Digital Giants

2 Compete Against
Digital Giants
“We will become the ecosystem”

23 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved.

 1
“If you can’t beat them, join them”
Join With
Digital Giants

2 Compete Against
Digital Giants
“We will become the ecosystem”

24 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved.

The Hope
Thing Plumbing Apps & Software
Connected
Automobile APIs

OEMs

Connected
Home
Tech Providers
APIs
Brands, Goods Uber-Alles

Connected
Health/Self APIs
Wearables,
MedTech OEMs

25 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved.

The Fear
Thing Plumbing Apps & Software Hub/Aggregator “Apps”
Connected
Automobile APIs

OEMs
Apple CarPlay

Connected
Home APIs
Brands, Goods

Google Now & Nest

Connected
Health/Self APIs
Wearables,
MedTech OEMs

26 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved.

Apple Health
“If You Can’t Beat Them, Join Them”

GM MyLink GM “MyLink”
pre-2016 post-2016
Audi Mercedes
Buick Mitsubishi
Cadillac Opel
Chevrolet Porsche
Citroën Peugeot
Ferrari Seat
Ford Škoda
GMC Suzuki
Honda Volkswagen
Hyundai Volvo

27 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved.

 Partnerships are already forming to pre-empt the market

“The Epic customer community,

which provides care to over 170
million patients a year, will be
able to use HealthKit through
Epic’s MyChart application—the
most used patient portal in the
U.S.”
http://venturebeat.com/2014/09/17/ehr-giant-epic-explains-how-it-
will-bring-apple-healthkit-data-to-doctors/

28 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved.

 Aegis Cool Vendors in Bright.md
- Healthcare data
interoperability Healthcare - “DIY” patient
diagnostics
Providers, 2016

Apertiva Thoughtwire Genospace

- Enterprise platform - the machine intelligence for the - a cloud-scale data
and marketplace for "Internet of Healthcare Provider Things" analytics and collaboration
health analytics and — an intelligent IoT platform for the infrastructure to drive a
data healthcare provider revolution in genomic
medical diagnosis and
treatment

29 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved.

 Points to consider: When aligning WITH Digital Giants:
Be clear about the Even if no money is exchanged with digital
business model ecosystem leaders
E.g. you may get something for free (technology & access
to customers) but you will give up some of the customer
relationship & data.
Join multiple ecosystems Although not all
Go where the your customers go. Pick the top 2
ecosystems in your industry/geography.

Set boundaries for how far Keep Your differentiation

you will let the Digital E.g currently GM Mylink only allows Apple CarPlay to
Giants overlap your space handle phone and media functions. Will GM allow Apple to
access telematics functions?

30 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved.

 1
“If you can’t beat them, join them”
Join With
Digital Giants

2 Compete Against
Digital Giants
“We will become the ecosystem”

31 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved.

 This is hard - To compete, you have to make the
flip from “supporting” to driving a business,
industry or value chain.

You must make change happen in a significant

and lasting way

32 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved.

 Fad

Feature

Disruption
33 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved.
Ecosystem Impact of a Digital Disruption
Competitive

 Media tablets enter the market

as additive technology
 They became destructive as
they replace current laptop and
desktop installations 2019

 Over time, they remain as

focused competitive
capabilities in the market,
though competition moves to
ultra-mobiles vs. 2012 2015
desktops/laptops 2009

Additive Destructive

34 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved.

 Cocoon Cool Vendors in Rokid
- Consumer grade
security for whole home Connected - "arti€
cial intelligence"
whole house solution for
protection
Home, 2016 the home through voice
interactions

Dojo-Labs WeBee Securify

- Intelligent learning - learns from the user's behavior and - Ease of use and positive
system uses pattern environment to proactively offer experience for unified
recognition algorithms predictions and recommendations for home control
to detect, alert and home control
mitigate threats to the
connected home

35 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved.

Example: IBM Watson Lays out New Options

36 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved.

Competitive: “We will create an open/better ecosystem”

CES 2016: Toyota snubs Apple and

Google on car tech
- Financial Times.com
http://www.ft.com/intl/cms/s/0/76f043e2-b2b0-11e5-
b147-e5e5bba42e51.html#axzz3wOaU3WyN

37 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved.

Do You Have What it Takes to Become A Digital Ecosystem?

1. Leverage your very strong brand or captive audience to attract a critical mass
of customers and ecosystem partners
2. Digitalize goods, services or value so that it can be aggregated, traded and
shared.
3. Be a leader that enforces standards, quality, and rules of engagement in
the ecosystem.
4. Create a simple and consistent experience that aggregates many disparate
parts for customers.
5. Create fertile ground for multi-sided markets. Ecosystems employ more than
supply/demand style markets.

38 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved.

 The Elements of Digital Disruption

Digital Disruption – o Business

“An effect that changes the o Technology
fundamental expectations and
behaviors in a culture, market, o Government
industry, product or process
that is caused by, or
o Industry
expressed through, digital o Addressable market
capabilities, channels, or
assets.” o Society

39 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved.

 Nissan Had It Right - “Shift” Happens!

o Operations
o Engagement
o Sales
o Products
o Marketing
o Competition

40 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved.

 Investors

Seek Ways •Opportunities Seek Ways to

to make •Investigation Interest
Cool Vendors money •Validation stakeholders
May Fit Your
Strategy

Vendors •Partners •Validation Users

•Acquisitions •Practicality
•Competition •Trends

41 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved.

 The Process:
- December-January: Analysts nominate candidates
- January-February: Candidates reviewed by
Gartner Cool Vendors management
- February: Final list of candidates selected
How to Become
- March-May: Research published
a Cool Vendor
What you should do:
- September-December: Become Well-known to the analysts
- December-January: Get a feel for whether the analyst will
submit you as a candidate

42 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved.

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© 2016 Gartner, Inc. and/or its affiliates. All rights reserved.