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

Software-Defined Infrastructure: The Platform of Choice

As more organizations adapt to a hybrid working model for their distributed workforce, enterprise CIOs and CTOs are tasked with delivering new productivity-enabling applications, while also seeking ways to effectively reduce IT cost, complexity, and risk. Traditional IT hardware infrastructure is evolving to more software-based solutions. The worldwide software-defined infrastructure (SDI) combined software market reached $12.17 billion during 2020 -- that's an increase of 5 percent over 2019, according to the latest market study by International Data Corporation (IDC). The market grew faster than other core IT technologies. The three technology pillars within the SDI market are: software-defined compute (53 percent of market value), software-defined storage controller (36 percent), and software-defined networking (11 percent). "Software-defined infrastructure solutions have long been popular for companies looking to eliminate cost, complexity, and risk within their data cente

Digital Identity Verification Market to Reach $16.7B

As more enterprise organizations embrace the ongoing transition to digital business transformation, CIOs and CTOs are adopting new technologies that enable the secure identification of individuals within their key stakeholder communities. A "digital identity" is a unique representation of a person. It enables individuals to prove their physical identity during transactions. Moreover, a digital identity is a set of validated digital attributes and credentials for online interactions -- similar to a person's identity within the physical world. Individuals can use a 'digital ID' to be verified through an authorized digital channel. Usually issued or regulated by a national ID scheme, a digital identity serves to identify a unique person online or offline. Digital Identity Systems Market Development Complementary to more traditional forms of identification, digital identity verification systems can enhance the authenticity, security, confidentiality, and efficiency of

Conversational Commerce Advances with AI Innovations

The global eCommerce market gained new momentum as the COVID-19 pandemic transformed many legacy business sectors. As an example, conversational commerce enables end-users of smart devices to leverage them for commercial purposes -- including retail transactions and online banking. The ecosystem for conversational commerce has evolved with many communication service providers acting as the primary point of connection between the end-users of these devices and the brands, enterprises, and financial institutions that use them. According to the latest worldwide market study by Juniper Research, the global conversational commerce spend over rich communication services (RCS) messaging will reach $27 billion by 2025 -- that's rising from less than $10 million in 2021. Conversational Commerce Market Development This phenomenal growth will be driven by increasing RCS support from telecom network operators and growing interest from business leaders wishing to capitalize on this emerging eCo