With digital transformation spending increasing by nearly $6 trillion over the next three years, CIOs and IT professionals will see the direct impacts.
Digital transformation initiatives are going to flood the enterprise over the next five years, according to IDC's digital transformation prediction report for 2019. The 10 predictions identified two major digital transformation groups, based on future trends: Leaders and laggards.
The leaders in transformation are also known as the "digitally determined," said the release, meaning they have created a healthy foundation for digital transformation success by aligning their tech and business goals. On the flip side are the laggards, or "digitally distressed," who have not developed a strategy or organized their business to adopt digital transformations.
SEE: Digital transformation in 2019: A business leader's guide to future challenges and opportunities (Tech Pro Research)
After analyzing survey data and market research of more than 3,000 companies worldwide, IDC determined that the group they fall into will depend on how prepared they are to embrace digital transformation efforts, according to the Wednesday press release. And in order to keep up in a technologically evolving enterprise, businesses must adapt.
Here are IDC's top 10 digital transformation predictions for the next several years:
Prediction 1: By 2020, at least 55% of organizations will be digitally determined, transforming markets and reimagining the future through new business models and digitally enabled products and services.
Prediction 2: By 2022, the CDO title will be in decline, as digital will have become fully embedded, but more than 60% of CEOs will have spent part of their careers leading digital initiatives.
Prediction 3: The paramount importance of customer advocacy will result in 60% of B2C brands embracing net promoter score as their leading success metric by the end of 2020.
Prediction 4: By 2020, 80% of enterprises will create data management and monetization capabilities, thus enhancing enterprise functions, strengthening competitiveness, and creating new sources of revenue.
Prediction 5: By 2020, 30% of G2000 companies will have implemented advanced digital twins of their operational processes, which will enable flatter organizations and one-third fewer knowledge workers.
Prediction 6: By 2023, 35% of workers will start working with bots or other forms of AI, requiring company leaders to redesign operational processes, performance metrics, and recruitment strategies.
Prediction 7: By 2020, 30% of G2000 companies will have allocated capital budget equal to at least 10% of revenue to fuel their digital strategies.
Prediction 8: 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%.
Prediction 9: By 2021, about 30% 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.
Prediction 10: By 2023, 95% of entities will have incorporated new digital KPI sets — focusing on product/service innovation rates, data capitalization, and employee experience — to navigate the digital economy.
Check out this article from TechRepublic's Alison DeNisco Rayome to learn about how IT budgets are leading with digital transformations in 2019.
The big takeaways for tech leaders:
- Depending on how much organizations embrace digital transformation efforts, they will either be labeled leaders or laggards in the industry. — IDC, 2018
- The top 10 predictions reveal how if companies want to be successful and relevant, they must prepare for digital transformation initiatives. — IDC, 2018
- Digital transformation: An IT pro's guide (free PDF) (TechRepublic)
- Five emerging technologies for faster digital change (ZDNet)
- Digital transformation: A cheat sheet (TechRepublic)
- Airservices completes 'massive' cloud migration (ZDNet)
- How to optimize IT costs to fund digital transformation: 3 steps (TechRepublic)