Reading time ( words)
As the top digital transformation (DX) market research firm in the world, International Data Corporation (IDC) today unveiled IDC FutureScape: Worldwide Digital Transformation 2019 Prediction. In this year's DX predictions, IDC has identified two DX groups based on specific trends and attributes. 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 transformation to date. IDC's market leading analytical understanding and insights are the result of extensive market research and survey data from over 3,000 companies worldwide.
The predictions from the IDC FutureScape for Worldwide Digital Transformation are:
- 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.
"With direct digital transformation (DX) investment spending of $5.9 trillion over the years 2018 to 2021, this topic continues to be a central area of business leadership thinking," said Shawn Fitzgerald, research director, Worldwide Digital Transformation Strategies. "IDC's 2019 DX predictions represent our perspective on the major transformation trends we expect to see over the next five years. With almost 800 business use cases spanning 16 industries and eight functional areas, our DX spending guides illustrate where industry is both prioritizing digital investments and where we expect to see the largest growth in 3rd Platform and innovation accelerator technologies."
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. IDC helps IT professionals, business executives, and the investment community make fact-based decisions on technology purchases and business strategy. More than 1,100 IDC analysts provide global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries worldwide. For more than 50 years, IDC has provided strategic insights to help our clients achieve their key business objectives. IDC is a wholly-owned subsidiary of IDG, the world's leading technology media, research, and events company.