Digital Transformation is shaping up to be the major trend this year, with DX technologies being implemented within organisations the world over.
In the latest IDC New Zealand FutureScape: Top Ten Predictions 2016 report from IDC, the analyst firm forecasts what it believes will be the biggest trends for the ICT market in 2016 and the implications for IT suppliers and buyers.
IDC expects innovation accelerators such as the IoT, cognitive computing, robotics, 3D printing, augmented/virtual reality and next gen security to accelerate digital transformation in New Zealand organisations for years to come.
“Since 2007, IDC has predicted - and we have all witnessed - the emergence of the IT industry's 3rd Platform for innovation and growth and the impact on every industry through the DX it enables.” IDC explains.
“In 2016, and over the next three to five years, we will see enterprises ‘flip the switch' - committing to a massive new scale of DX and 3rd Platform adoption, to stake out leadership positions in the DX economy,” it says.
Shane Minogue, senior telecommunications analyst with IDC, says adapting to DX and embracing the change will be difficult; defining DX alone is not easy.
“Most projects involve transforming the experience but little attention is being paid on other dimensions such as information governance, which can lead to disillusionment on the benefits of DX," Minogue explains.
"However, as challenging as this transition will be, the cost of ignoring this change is far higher,” he says.
“The sweeping changes about to take place have been compared to an avalanche. If you try to react when the change is already surrounding you, it will be too late.
“In order to be in the best shape possible, preparations and changes must be made now,” says Minogue.
According to Minogue, IDC's lead prediction is that 60% of New Zealand enterprises will have digital transformation at the center of their corporate strategy by the end of 2017.
He says those companies that do not initiate a digital transformation procedure will find themselves struggling to respond to changing market demands and find it difficult to stay profitable.
IDC goes on to predict that 80% of B2C organisations will overhaul their ‘digital front door' to support 1000 to 10,000 times as many customers/customer interactions as they do today.
“Success in the digital era all pivots on changing the customer experience,” Minogue says.
IDC's predictions for the fast-evolving ICT sector for the next three to five years are:
#1 The Importance of Digital Transformation: By the end of 2017, 60% of NZ enterprises will have digital transformation at the center of their corporate strategy.
#2 Customer Intimacy at Scale: By 2018, 80% of B2C and 60% of B2B organisations will overhaul their ‘digital front door' to support 1000 to 10,000 times as many customers/customer interactions as they do today.
#3 Security and Risk Management: By 2016, 50% of IT organisations will shift their focus to advanced ‘contain and control' security and away from a perimeter mentality.
#4 IoT becomes a Strategic Imperative to Drive Growth: By 2018 there will be 22 million connected things in New Zealand growing from 15 million today.
#5 Adoption of Fibre Accelerates: By the end of 2016, there will be 300,000 fibre connections in New Zealand.
#6 Enterprise will Embrace Biometrics: By 2017, 33% of enterprises will begin using smartphone biometrics for employee authentication.
#7 UCaaS will Gain Significant Traction: By 2017, UCaaS will account for 60% of UC-C implementations in New Zealand.
#8 Cognitive Systems will be Key: By 2020, 40% of all business analytics software will incorporate prescriptive analytics built on cognitive computing functionality.
#9 Augmented Reality will Disrupt: Purpose-built augmented reality devices will grow from 100,000 units worldwide in 2015 to more than 7.5 million units in 2017 and will impact key verticals in New Zealand.
#10 Transform or Perish: By 2018, 35% of IT resources will be spent to support the creation of new digital revenue streams.