Digital transformation will attain ‘macroeconomic' scale over the next three to four years, changing the way enterprises operate and reshaping the global economy.
That's the word according to IDC Asia Pacific, revealing its top technology predictions for the Asia Pacific excluding Japan (APeJ) region at the IDC FutureScape event in Singapore last week.
According to the analyst firm, this is the dawn of the “DX Economy”.
“As digital transformation reaches macroeconomic levels, a DX economy will emerge and will become the core of what industry leaders do and operate”, explains Sandra Ng, group vice president, Practice, IDC Asia/Pacific.
“Essentially, to succeed, every growing enterprise must become a “digital native” in the way its executives think and act when the DX economy makes its first appearance in 2017,” she says.
Ng has also revealed the strategic top predictions that will unfold in 2017 and beyond and make the biggest impact to organisations in the Asia Pacific region:
#1: DX economy. By 2020, half of the A1000 will see the majority of their business depend on their ability to create digitally-enhanced products, services and experiences.
#2: Tech savvy CEO. By 2020, one quarter of the C-level business executives in A1000 companies will have spent at least 3 years of their career in a technology leadership role.
#3: Leading in 3D. By 2019, 70% of CIOs will recognize the limitations of traditional IT and embrace a leadership approach that embodies a virtuous cycle of innovation (Leading in 3D).
#4: Cognitive/AI. By 2020, 40% of digital transformation initiatives will be supported by cognitive/AI capabilities, providing critical on-time insights for new operating and monetization models.
#5: Info-based products. By the end of 2019, revenue growth from information-based products will be double that of the rest of the product/service portfolio for one third of A1000 companies.
#6: Immersive interfaces. In 2017, 30% of consumer-facing A1000 companies will experiment with AR/VR as part of their marketing efforts.
#7: Business services. By 2019, 65% of IT organizations will create new customer-facing and ecosystem-facing services to meet the business DX needs.
#8: Industry collaborative clouds. By 2018, the number of industry collaborative cloud will triple to more than 150; by 2020, over 50% of the A500 will be digital services suppliers through ICCs.
#9: Self-healing process. By 2020, nearly 20% of operational processes will be self-healing and self-learning - minimizing the need for human intervention or adjustments.
#10: Risk Management. By 2019, 60% of CIOs will help drive risk portfolios that enable adaptive responses to security, compliance, business, or catastrophic threats.
“In the DX economy, the inter-dependence of digital transformation, 3rd platform* and IT leadership becomes the essential trinity for success,” says Ng
“DX will drive the customer-centric business strategy, the 3rd platform will be the technology enabler, while IT leadership will be the differentiating factor for digital transformers and disruptors.