Skip to main content

Digital Transformation Investment will Reach $2.2 Trillion

As 2016 comes to a close, industry analysts start to share their outlook for next year, and beyond. International Data Corporation (IDC) has announced its worldwide information technology (IT) industry predictions.

IDC foresees digital transformation (DX) attaining macroeconomic scale over the next three to four years, changing the way enterprises operate and reshaping global commerce. From their perspective, this is the dawn of the DX Economy.

"We are at an inflection point as digital transformation efforts shift from 'project' or 'initiative' status to strategic business imperative," said Frank Gens, senior vice president at IDC. "Every growing enterprise, regardless of age or industry, must become 'digital native' in the way its executives and employees think, what they produce, and how they operate."

Top Ten IDC Predictions for 2017

By 2020, 50 percent of the Global 2000 new growth will depend on their ability to create digitally-enhanced products and services. Revenue growth will come from information-based products and services. Worldwide investment in DX initiatives will reach $2.2 trillion in 2019 -- that's almost 60 percent more than in 2016.

By 2019, 3rd Platform technologies and services will drive nearly 75 percent of IT spending – growing at twice the rate of the total IT market. This represents a major acceleration from last year's outlook, when IDC predicted that 3rd Platform technologies would account for over 60 percent of IT spending by 2020.

By 2020, 67 percent of all enterprise IT infrastructure and software spending will be for cloud-based offerings. Driving this transition is the fact that almost every enterprise will be a cloud service provider of innovative services to its own marketplace, making cloud capability a core business operations issue.

By 2019, 40 percent of all digital transformation initiatives – and 100 percent of all IoT efforts – will be supported by cognitive capabilities. This is because the flood of data that comes from IoT devices and DX initiatives have limited value without AI technologies that are capable of finding valuable insights in the data.

In 2017, 30 percent of consumer-facing Global 2000 companies will experiment with AR/VR as part of their marketing efforts. Interfaces are the essential gateway to customer engagement and they are evolving much faster than many have anticipated.

By 2018, the number of Industry Collaborative Clouds (ICCs) will triple to more than 450 -- by 2020, over 80 percent of the Global 500 will be digital services suppliers. ICCs are cloud-based platforms through which multiple companies in an industry collaborate in some fashion toward a common goal.

By the end of 2017, over 70 percent of the Global 500 will have dedicated digital transformation or professional innovation teams. To meet the challenges of the DX economy, enterprises will have to grow their skilled software developer teams more quickly -- look for growth of 2-3 times by 2018.

By 2020, over 70 percent of cloud service provider revenues will be mediated by channel partners or brokers. As enterprise use of the cloud becomes more complex, traditional IT channel partners and a new generation of partners, will provide the help needed to support the expanding variety of cloud users and uses.

By 2020, all enterprise performance will be measured by a new set of DX-driven benchmarks, requiring 20-100 percent business performance. Thriving in the DX economy means that every enterprise must operate as a digital native organization. Therefore, CEOs must have critical technology leadership experience.

By 2020, one third of health or life sciences and consumer product companies will begin to develop the first wave of products and services tightly integrating 3rd Platform technologies with the human body -- with "Augmented Humanity" offerings going mainstream by the mid-2020's.

Popular posts from this blog

How Edge Computing and AI Applications Drive IoT

The global pandemic has accelerated the adoption of emerging technologies, including edge computing and TinyML. As more CIOs and CTOs seek ways to capture and process data at the edge of their enterprise IT network, the demand has fueled investment for Internet of Things (IoT) applications. According to the latest worldwide market study by ABI Research, the global edge Artificial Intelligence (AI), Software-as-a-Service (SaaS), and turnkey service market will grow at a CAGR of 46 percent between 2020 and 2025 to reach $7.2 billion. This is 25 percent of the global edge AI market, which is estimated to be $28 billion by 2025. The market is comprised of edge AI chipsets, SaaS, and turnkey services, as well as professional services. As the benefits of edge AI becomes more obvious, enterprises are searching for edge AI solutions that offer low latency and are fully secured to assist them with data-based analysis or decision-making. Edge Artificial Intelligence Market Development "The

How the COVID-19 Pandemic Advanced Telehealth Adoption

The global COVID-19 pandemic has accelerated digital transformation across many industries. As an example, consider the healthcare sector. Some routine medical situations can be diagnosed and resolved online. While the trend was already in motion long before the pandemic arrived, the adoption of telehealth increased rapidly in 2020. Around the world, many governments responded to the disruption and inaccessibility of healthcare facilities by loosening previous regulations and restrictions on the practice of telemedicine apps, and teleconsultations. This decision resulted in the mass adoption of these medical services among patients and providers. According to the latest market study by Juniper Research, telemedicine will save the healthcare industry $21 billion in costs by 2025 -- that's rising from an estimated $11 billion in 2021. This increased app usage represents an anticipated growth rate of over 80 percent in the next four years. Telehealth Services Market Development The co

Hyper-automation Propels Superior Business Process Redesign

When the world was disrupted by a global pandemic during 2020, many CEOs and their board of directors were consumed by reacting to immediate problems. Meanwhile, a few forwarding-thinking enterprise leaders also paused to invest in accelerating their prescient digital transformation agenda. What enables executives to envision an opportunity while others see only challenges? Strategic foresight, and a willingness to embrace the apparent changes that are transforming the legacy status quo. During this period of uncertainty, hyper-automation investment has gained new momentum. Hyperautomation is the application of advanced technologies that augment humans by helping to streamline processes in new ways that are significantly more impactful than the legacy approach. Hyperautomation Market Development The global market for technology that enables hyperautomation will reach $596.6 billion in 2022, according to the latest worldwide market study by Gartner. This is up from $481.6 billion in 202