Spending on digital transformation projects is set to increase 42% between 2017 and 2019, according to an IDC report.
By the end of 2019, spending on digital transformation will reach $1.7 trillion worldwide--up 42% from 2017, according to a new report from the International Data Corporation (IDC), released Wednesday.
Digital transformation technology spending continues to grow across all geographies and industries, the report noted. However, 59% of companies remain at an early stage of digital transformation maturity, or what IDC calls a "digital impasse."
"This year's DX predictions represent the latest thinking on the key programs, technologies, and processes needed to achieve success in the digital economy as more companies are embracing and engaging their enterprise transformations," Shawn Fitzgerald, research director of Worldwide Digital Transformation Strategies at IDC, said in a press release. "While we are seeing more companies becoming more digitally capable, there is a widening gap between leaders and laggards, with significant implications for those organizations that cannot make the transition to a digital-native organization."
The report included a number of other technology predictions for the coming years. By the end of 2018, at least 40% of organizations will have a fully-staffed digital leadership team, as opposed to a single digital transformation executive lead, to better execute enterprise-wide digital initiatives.
By 2019, all digitally transformed organizations will generate at least 45% of their revenue from "future of commerce" business models and 40% of digital transformation initiatives will involve cognitive/AI capabilities. Personal digital assistants and bots will also execute 1% of transactions, but will influence 10% of sales and drive growth among organizations using them effectively.
And by 2020, 60% of all enterprises will have fully articulated an organization-wide digital platform strategy, and will be in the process of implementing it, the report predicted. That year, 85% of new operation-based technical position hires will be screened for AI and analytical skills, and 25% of major companies will have developed digital training programs to better compete for talent.
SEE: How Sephora is leveraging AR and AI to transform retail and help customers buy cosmetics (free PDF) (TechRepublic cover story)
Digital transformation became a priority for many companies in 2017, with 47% of CEOs saying they face pressure from their board of directors to make progress in digital business, according to a recent Gartner survey. And that pressure seems to be paying off: 56% of CEOs said their digital efforts have already increased profits.
Want to use this data in your next business presentation? Feel free to copy and paste these top takeaways into your next slideshow.
- By the end of 2019, spending on digital transformation will reach $1.7 trillion worldwide. -IDC, 2017
- By the end of 2018, at least 40% of organizations will have a fully-staffed digital leadership team. -IDC, 2017
- By 2020, 60% of all enterprises will have fully articulated an organization-wide digital platform strategy, and will be in the process of implementing it. -IDC, 2017
- 3 steps to create a corporate vision for digital transformation (TechRepublic)
- The top 10 barriers to digital transformation (TechRepublic)
- Why CIOs must step up to lead digital transformation efforts (TechRepublic)
- Five winning plays for digital transformation (ZDNet)
- Advanced Business Skills Bundle (TechRepublic Academy)
- Ebook--IT leader's guide to achieving digital transformation (Tech Pro Research)