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Digital transformation will attain macroeconomic scale over the next three to four years: IDC

Kareyst Lin | Nov. 4, 2016
Dawn of the "DX Economy" will change the way enterprises operate and reshape the global economy.

Digital transformation will attain macroeconomic scale over the next three to four years, changing the way enterprises operate and reshape the global economy.

IDC calls this the dawn of the "digital transformation (DX) Economy," according to a press statement on 3 November 2016. 

"As digital transformation reaches macroeconomic levels, a DX economy will emerge and become the core of what industry leaders do and operate," said 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." 

Ng also unveiled its top technology predictions for Asia Pacific excluding Japan (APeJ):

#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 percent of Chief Executive Officers will recognise 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 percent of digital transformation initiatives will be supported by cognitive/artificial intelligence (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 percent of consumer-facing A1000 companies will experiment with augmented reality (AR)/virtual reality (VR) as part of their marketing efforts.

#7: Business services. By 2019, 65 percent of IT organisations will create new customer-facing and ecosystem-facing services to meet the business DX needs.

#8: Industry collaborative clouds (ICC). By 2018, the number of industry collaborative cloud will triple to more than 150; by 2020, more than 50 percent of the A500 will be digital services suppliers through ICCs.

#9: Self-healing process. By 2020, nearly 20 percent of operational processes will be self-healing and self-learning - minimising the need for human intervention or adjustments.

#10: Risk Management. By 2019, 60 percent of CIOs will help drive risk portfolios that enable adaptive responses to security, compliance, business, or catastrophic threats.

"In the DX economy, DX will drive the customer-centric business strategy, the third platform will be the technology enabler, while IT leadership will be the differentiating factor for digital transformers and disruptors," said Ng.

In closing, IDC predicts that the fourth platform is already on the horizon.

 

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