Algorithms are taking centre stage in the race for competitive differentiation

To support the new capabilities and business models of digital and algorithmic business, chief information officers (CIOs) must design and deploy their digital business technology platform, says Gartner, Inc. Increasingly, algorithms are taking centre stage in the race for competitive differentiation as leading organisations uncover their true value.

"Algorithms capture the knowledge that turns raw data into valuable insight, and CIOs must use them to drive speed, scale and consistency in their digital business journey," says Steve Prentice, vice-president and Gartner fellow. Applied to huge datasets, algorithms allow highly accurate and personalised offerings, which in turn drive revenue and differentiation.

More than 500,000 new devices connect to the internet every hour, and they simply add to the inevitable growth of data. A large number of organisations are making advanced algorithmic models available via open marketplaces, which facilitate access to algorithms that are beyond the development reach of many organisations.