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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.

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