31 Oct Direct Digital Transformation Investment Spending to Approach $7.4 Trillion Between 2020 and 2023; IDC Reveals 2020 Worldwide Digital Transformation Predictions
By 2023, digital transformation spending will grow to more than 50% of all ICT investment from 36% today; largest growth in data intelligence and analytics
FRAMINGHAM, Mass.–(BUSINESS WIRE)–#CEOagenda–As the top digital transformation (DX) market research firm in the world, International Data Corporation (IDC) today unveiled IDC FutureScape: Worldwide Digital Transformation 2020 Predictions (Doc #US45569118). In this year’s DX predictions, IDC highlights the critical business drivers accelerating DX initiatives and investments as companies seek to effectively navigate business challenges, compete at hyperscale, and meet rising customer expectations.
In an IDC FutureScape Web conference held today at 12:00 pm U.S. Eastern time, IDC analysts Bob Parker and Shawn Fitzgerald discussed the ten industry predictions that will impact digital transformation efforts of CIOs and IT professionals over the next one to five years and offered guidance for managing the implications these predictions harbor for their IT investment priorities and implementation strategies. To register for an on-demand replay of this Web conference or any of the IDC FutureScape Web conferences, please visit https://www.idc.com/idcfuturescape2020.
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The predictions from the IDC FutureScape for Worldwide Digital Transformation are:
Prediction 1 – Future of Culture: By 2024, leaders in 50% of G2000 organizations will have mastered “future of culture” traits such as empathy, empowerment, innovation, and customer-and data-centricity to achieve leadership at scale.
Prediction 2 – Digital Co-Innovation: By 2022, empathy among brands and for customers will drive ecosystem collaboration and co-innovation among partners and competitors that will drive 20% collective growth in customer lifetime value.
Prediction 3 – AI at Scale: By 2024, with proactive, hyperspeed operational changes and market reactions, artificial intelligence (AI)-powered enterprises will respond to customers, competitors, regulators, and partners 50% faster than their peers.
Prediction 4 – Digital Offerings: By 2023, 50% of organizations will neglect investing in market-driven operations and will lose market share to existing competitors that made the investments, as well as to new digital market entries.
Prediction 5 – Digitally Enhanced Workers: By 2021, new future of work (FoW) practices will expand the functionality and effectiveness of the digital workforce by 35%, fueling an acceleration of productivity and innovation at practicing organizations.
Prediction 6 – Digital Investments: By 2023, DX spending will grow to over 50% of all ICT investment from 36% today, with the largest growth in data intelligence and analytics as companies create information-based competitive advantages.
Prediction 7 – Ecosystem Force Multipliers: By 2025, 80% of digital leaders will devise and differentiate end-customer value measures from their platform ecosystem participation, including an estimate of the ecosystem multiplier effects.
Prediction 8 – Digital KPIs Mature: By 2020, 60% of companies will have aligned digital KPIs to direct business value measures of revenue and profitability, eliminating today’s measurement crisis where DX KPIs are not directly aligned.
Prediction 9 – Platforms Modernize: Driven both by escalating cyberthreats and needed new functionality, 65% of organizations will aggressively modernize legacy systems with extensive new technology platform investments through 2023.
Prediction 10 – Invest for Insight: By 2023, enterprises seeking to monetize benefits of new intelligence technologies will invest over $265 billion worldwide, making DX business decision analytics and AI a nexus for digital innovation.
According to Shawn Fitzgerald, research director, Worldwide Digital Transformation Strategies, “Now in its fourth annual installment, our digital transformation predictions mark the next set of inflection points and related consequences executives should evaluate for inclusion into their multi-year planning scenarios. Direct digital transformation (DX) investment is growing at 17.5% CAGR and expected to approach $7.4 trillion over the years 2020 to 2023 as companies build on existing strategies and investments; becoming digital-at-scale future enterprises. Organizations with new digital business models at their core are well positioned to successfully compete in the digital platform economy.”
To learn more about the IDC FutureScape 2020 series, please visit: https://www.idc.com/idcfuturescape2020.
For additional information about these predictions or to arrange a one-on-one briefing, please contact Sarah Murray at 781-378-2674 or [email protected] Reports are available to qualified members of the media. For information on purchasing reports, contact [email protected]; reporters should email [email protected]
About IDC FutureScape
IDC FutureScape reports are used to shape IT strategy and planning for the enterprise by providing a basic framework for evaluating IT initiatives in terms of their value to business strategy now and in the foreseeable future. IDC’s FutureScapes are comprised of a set of decision imperatives designed to identify a range of pending issues that CIOs and senior technology professionals will confront within a typical five-year business planning cycle.
International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. With more than 1,100 analysts worldwide, IDC offers global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries. IDC’s analysis and insight helps IT professionals, business executives, and the investment community to make fact-based technology decisions and to achieve their key business objectives. Founded in 1964, IDC is a wholly-owned subsidiary of International Data Group (IDG), the world’s leading tech media, data and marketing services company. To learn more about IDC, please visit www.idc.com. Follow IDC on Twitter at @IDC and LinkedIn. Subscribe to the IDC Blog for industry news and insights: http://bit.ly/IDCBlog_Subscribe.