By the end of 2017, 60 per cent of APAC 1000 enterprises (A1000) enterprises will have digital transformation (DX) at the centre of their corporate strategy, with the majority expected to create an independent position to oversee the implementation of DX strategy, according to IDC Asia/Pacific.
“In 2016, we will witness the mega transition in the DX era. Enterprises will ‘flip the switch’, committing to a massive new scale of DX and third platform technologies in order to stake out leadership positions in the hyper-digital economy,” said Sandra Ng, group vice president, practice, IDC Asia/Pacific.
As well as the centrality of DX in corporate strategy, analyst firm IDC’s FutureScapes forecast predicts a number of other key themes will have the biggest impact on the IT landscapes in the Asia/Pacific region.
Third platform IT. By 2017, over 60 per cent of organisations’ ICT spending will be for third platform technologies, solutions and services, rising to nearly 80 per cent by 2020.
Customer/intimacy at scale. By 2018, 80 per cent of B2C and 60 per cent of B2B organisations will overhaul their “digital front door” to support 1,000 to 10,000 times as many customers/customer touchpoints as they do today.
Leading in 3D. Through 2018, two-thirds of CIOs will have embraced ‘Leading in 3D’, which requires them to simultaneously innovate, integrate, and incorporate.
DX collaboration. By 2018, 70 per cent of siloed digital transformation initiatives will ultimately fail due to insufficient collaboration, integration, sourcing or project management.
Innovation capacity. By 2020, enterprises pursuing DX strategies will more than double their software development capabilities; two-thirds of their coders will focus on strategic DX apps and services.
New digital revenue streams. By 2018, 35 per cent of IT resources will be spent to support the creation of new digital revenue streams.
Security and risk management. By 2016, 40 per cent of IT organisations will shift their focus to advanced ‘contain and control’ security and away from a perimeter mentality.
Data governance for insights. By 2017, two-thirds of Asian-based CIOs will initiate a data transformation and governance framework to turn information into a competitive business differentiator.
“The digitalisation of nations, economies, industry ecosystems and enterprises are pushing new competitive benchmarks in areas of business process excellence and new monetisation/business models. The new hyper-digital era presents opportunities and competition/challenges that go beyond geographic and industry boundaries. This is where scale becomes the competitive ingredient for the digital enterprise,” said Ng.
IDC predicts that digital transformation will drastically change the IT industry.
“In fact by 2020, more than 30 per cent of the IT vendors will not exist as we know them today, requiring realignment of preferred vendor relationships,” she said.
IDC will host a free webcast titled IDC FutureScapes: Leading Digital Transformation to Scale on 7 December 2015 to be led by IDC Group Vice President for Practice, Sandra Ng. Register here for this webcast.
