Skip to main content

Digital Transformation Investment will Reach $5.5 Trillion

Senior executives that have already developed strategies for business technology adoption may believe that their organization is prepared for the next wave of disruption in the Global Networked Economy. However, a mindful assessment of the forward-looking digital environment will help to uncover the potential for emerging new challenges and opportunities.

International Data Corporation (IDC) unveiled their "FutureScape: Worldwide Digital Transformation (DX) 2019 Predictions." Within their predictions, IDC has identified two DX organization segments that are based on specific market trends and leadership attributes.

Digital Transformation Market Development

According to IDC, leaders in transformation (the digitally determined) are those organizations that have aligned the necessary elements of people, process, and technology for success.

In contrast, laggards (the digitally distressed) have not developed the enterprise strategy necessary to align the organization effectively for meaningful business transformation.

IDC analysts present ten predictions that will impact digital transformation efforts of enterprise CIOs and CTOs over the next one to five years. The latest IDC predictions are as follows:

By 2020, at least 55 percent of organizations will be digitally determined, transforming markets and reimagining the future through new business models and digitally enabled products and services.

By 2022, the Chief Digital Officer (CDO) title will be in decline, as digital will have become fully embedded, but more than 60 percent of CEOs will have spent part of their careers leading digital initiatives.

The paramount importance of customer advocacy will result in 60 percent of B2C brands embracing 'net promoter score' (NPS) as their leading success metric by the end of 2020.

By 2020, 80 percent of enterprises will create data management and monetization capabilities, thus enhancing enterprise functions, strengthening competitiveness, and creating new sources of revenue.

By 2020, 30 percent of G2000 companies will have implemented advanced digital twins of their operational processes, which will enable flatter organizations and one-third fewer knowledge workers.

By 2023, 35 percent of workers will start working with bots or other forms of artificial intelligence (AI), requiring company leaders to redesign operational processes, performance metrics, and recruitment strategies.

By 2020, 30 percent of G2000 companies will have allocated capital budget equal to at least 10 percent of revenue to fuel their digital strategies.

By 2021, prominent in-industry value chains, enabled by blockchains, will have extended their digital platforms to their entire omni-experience ecosystems, thus reducing transaction costs by 35 percent.

By 2021, about 30 percent of manufacturers and retailers globally will have built digital trust through blockchain services that enable collaborative supply chains and allow consumers to access product histories.

By 2023, 95 percent of entities will have incorporated new digital KPI sets -- focusing on product or service innovation rates, data capitalization, and employee experience -- to navigate the digital economy.

"With direct digital transformation investment spending of $5.5 trillion over the years 2018 to 2021, this topic continues to be a central area of business leadership thinking," said Shawn Fitzgerald, research director at IDC.

Popular posts from this blog

Demand for Quantum Computing as a Service

The enterprise demand for quantum computing is still in its early stages, growing slowly. As the technology becomes more usable, we may see demand evolve beyond scientific applications. The global quantum computing market is forecast to grow from $1.1 billion in 2022 to $7.6 billion in 2027, according to the latest worldwide market study by International Data Corporation (IDC). That's a five-year compound annual growth rate (CAGR) of 48.1 percent. The forecast includes base Quantum Computing as a Service, as well as enabling and adjacent Quantum Computing as a Service. However, this updated forecast is considerably lower than IDC's previous quantum computing forecast, which was published in 2021, due to lower demand globally. Quantum Computing Market Development In the interim, customer spend for quantum computing has been negatively impacted by several factors, including: slower than expected advances in quantum hardware development, which have delayed potential return on inve

AI Semiconductor Revenue will Reach $119.4B

The Chief Information Officer (CIO) and/or the Chief Technology Officer (CTO) will guide Generative AI initiatives within the large enterprise C-Suite. They may already have the technical expertise and experience to understand the capabilities and limitations of Gen AI. They also have the authority and budget to make the necessary investments in infrastructure and talent to support Gen AI initiatives. Enterprise AI infrastructure is proven to be expensive to build, operate and maintain. That's why public cloud service provider solutions are often used for new AI use cases. AI Semiconductor Market Development Semiconductors designed to execute Artificial Intelligence (AI) workloads will represent a $53.4 billion revenue opportunity for the global semiconductor industry in 2023, an increase of 20.9 percent from 2022, according to the latest worldwide market study by Gartner. "The developments in generative AI and the increasing use of a wide range AI-based applications in data c

Global Public Cloud Spending to Reach $1.35T

Most digital transformation is enabled by cloud solutions. Worldwide spending on public cloud services is forecast to reach $1.35 trillion in 2027, according to the latest worldwide market study by International Data Corporation (IDC). Although annual spending growth is expected to slow slightly over the 2023-2027 forecast period, the market is forecast to achieve a five-year compound annual growth rate (CAGR) of 19.9 percent. "Cloud now dominates tech spending across infrastructure, platforms, and applications," said Eileen Smith, vice president at IDC . Public Cloud Services Market Development IDC believes that most organizations have adopted the public cloud as a cost-effective platform for hosting enterprise applications, and for developing and deploying customer-facing solutions. Looking forward, the cloud computing model remains well positioned to serve customer needs for innovation in application development and deployment -- including as data, artificial intelligence