Industry research firm International Data Corp. (IDC) recently released “IDC FutureScape: Worldwide Digital Transformation 2020 Predictions,” which underscores critical business drivers accelerating digital transformation (DX) initiatives.
At a web conference, Bob Parket and Shawn Fitzgerald, analysts at IDC, discussed the 10 industry predictions that will impact DX efforts over the next one to five years. The trends would allow CIOs and IT professionals to rethink their multiyear DX strategies and investments and are navigate business challenges accordingly.
“Direct digital transformation investment is growing at 17.5% CAGR and expected to approach $7.4 trillion over the years 2020-2023 as companies build on existing strategies and investments; becoming digital-at-scale future enterprises,” said Fitzgerald, who also serves as research director of IDC Worldwide Digital Transformation Strategies. “Organizations with new digital business models at their core are well-positioned to successfully compete in the digital platform economy.”
Have you read “IDC: How the rising digital economy impacts the CEO agenda”?
The predictions from the IDC FutureScape for Worldwide Digital Transformation are:
- Future of Culture: By 2024, leaders in 50% of G2000 organizations will have mastered the “future of culture” traits such as empathy, empowerment, innovation, and customer-and data-centricity to achieve leadership at scale.
- Digital Co-Innovation: By 2022, empathy among brands and for customers will drive ecosystem collaboration and co-innovation among partners and competitors that will drive 20% collective growth in customer lifetime value.
- AI at Scale: By 2024, with proactive, hyperspeed operational changes and market reactions, artificial intelligence (AI)-powered enterprises will respond to customers, competitors, regulators, and partners 50% faster than their peers.
- Digital Offerings: By 2023, 50% of organizations will neglect investing in market-driven operations and will lose market share to existing competitors that made the investments, as well as to new digital market entries.
- Digitally Enhanced Workers: By 2021, new future of work (FoW) practices will expand the functionality and effectiveness of the digital workforce by 35%, fueling an acceleration of productivity and innovation at practicing organizations.
- Digital Investments: By 2023, DX spending will grow to over 50% of all ICT investment from 36% today, with the largest growth in data intelligence and analytics as companies create information-based competitive advantages.
- Ecosystem Force Multipliers: By 2025, 80% of digital leaders will devise and differentiate end-customer value measures from their platform ecosystem participation, including an estimate of the ecosystem multiplier effects.
- Digital KPIs Mature: By 2020, 60% of companies will have aligned digital KPIs to direct business value measures of revenue and profitability, eliminating today’s measurement crisis where DX KPIs are not directly aligned.
- Platforms Modernize: Driven both by escalating cyberthreats and needed new functionality, 65% of organizations will aggressively modernize legacy systems with extensive new technology platform investments through 2023.
- Invest for Insight: By 2023, enterprises seeking to monetize benefits of new intelligence technologies will invest over $265 billion worldwide, making DX business decision analytics and AI a nexus for digital innovation.
Categories: artificial intelligence