Market research firm International Data Corporation (IDC) has released its predictions for the ICT industry in the Philippines, emphasising the importance of digital transformation (DX) in driving business growth.
According to Jubert Alberto, country head of IDC Philippines, "Digitalisation has been heightening industry competition as it paves the way for business process excellence and new monetisation and business models. Given increasing industry disruptions brought about by digitalisation, it is high time for Philippine enterprises and SMEs to make the move into DX to help them scale up in leadership, omni-experience, information, operating models, and worksource transformation."
IDC suggests businesses to transform digitally through the use of 3rd platform technologies, which include the four pillars of cloud, mobility, big data analytics, and social. This also includes the six innovation accelerators of Internet of Things (IoT), cognitive computing, robotics, 3D printing, virtual and augmented reality, as well as next-generation security.
The top 10 predictions by IDC, which they rebranded as IDC FutureScapes, focused on both technology buyers (CXOs), and ICT suppliers.
1. DX-guided enterprise strategy. IDC predicts that by the end of 2019, 80 percent of business strategies will include a significant DX component.
According to Alon Anthony Rejano, an analyst from IDC Philippines, "Globalisation, availability of analytics, and the Internet as an economic engine require nearly every enterprise strategy and significant business change initiative to involve some aspect of 'digital,' whether it is improving customer experience or internal operations or creating digital products and services. DX is leveraging IDC's 3rd Platform - cloud, mobility, Big Data and Analytics (BDA), and social business - to improve business agility, effectiveness, and customer satisfaction."
2. Authentic experiences. IDC reports that 80 percent of local B2C companies will have created an immersive and authentic omni-experience for their customers, partners, and employees by 2020.
Digital transformation has significantly affected the response of Filipinos to marketing, said IDC analyst Jerome Dominguez. Previously, companies invest huge sums of their marketing budget on print media and TV; but today, "Filipino consumers are making more use of social media than they used to in the past, hence there is a greater need for companies to assess how they market their products and services in the digital space," he added.
3. Security and risk management. By 2017, 30 percent of IT organisations will veer away from perimeter mentality when it comes to security, and instead, they will focus on advanced "contain and control" security.
"As Filipino enterprises evolve to an information-led, information-centric business model, the strategic importance of a strong security governance model will be critical as the uptake of 3rd Platform technologies among businesses will widen the attack surface," said Dominguez.
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