1 in 3 companies generating more than 30 per cent revenues from digital products and services by 2023.
The unprecedented rate of digital transformation (DX) acceleration over the past year has ushered in a digital-first world, powered by an increasingly digital-first economy with Asia/Pacific organizations at its forefront. Such an economy expands the impact of digital technologies on the production and consumption of products and services, resulting in at least 65 per cent of Asia/Pacific’s GDP being digitalized by 2022. IDC predicts by 2023, one in three companies will generate more than 30 per cent of their revenues from digital products and services.
With more and more enterprises heading towards their digital-first state, DX technology spending is expected to grow 2x faster than overall IT. To derive maximum value from their investments, it has become imperative for business and tech leaders to learn how to position their organizations amid new societal, macroeconomic, microeconomic, and technology currents. IDC today unveiled its top ICT predictions for 2022 and beyond at its annual predictions event, IDC FutureScape: Navigating the Crosswinds in a Digital-First World.
“As of July 2021, we have 28 per cent of organizations in Asia/Pacific already in the most progressive stages of digital transformation maturity, up from 18 per cent pre-COVID in 2019. The world is now firmly anchored in a digital-first economy. However, economic and business outlook for the next 3 years remains highly fluid because of a growing range of global challenges including the pandemic. An enterprise’s success in the next 12-36 months will be defined by how well it navigates these crosswinds,” said Sandra Ng, Group Vice President for ICT Practice, IDC Asia/Pacific.
According to Ng, these are the top ICT and business predictions that will shape how Asia/Pacific organizations and industries operate in a digital-first world:
#1: Digital rules: By 2023, 1 in 3 companies will generate more than 30% of their revenues from digital products and services, as compared to 1 in 5 in 2020.
#2: Diversity matters: By 2024, 55 per cent of successful digitally innovative products will be built by teams that include people with creative, critical thinking, analysis, and automation skills as well as software engineers.
#3: The value in trust: By 2023, 40 per cent organizations will allocate half of their security budget to cross-technology ecosystems/platforms designed for rapid consumption and unified security capabilities to drive agile innovation.
#4: The value in ecosystems: By 2026, on average 30 per cent of A2000 company revenue is derived from industry ecosystem shared data, applications, & operations initiatives with partners, industry entities, and business networks.
#5: Scaling with digital twins: From 2021 to 2027, the number of new physical assets and processes that are modeled as digital twins will increase from 5 per cent to 60 per cent resulting in operational performance optimization.
#6: Scaling with knowledge: 30 per cent of large enterprises will see 25 per cent improvement in information usage by 2026 due to investments in intelligent knowledge networks that turn structured/unstructured data into findable and actionable knowledge.
#7: An evidence-based culture is paramount for digital-first enterprises: By 2026, 30 per cent of organizations will use forms of behavioral economics and AI/ML-driven insights to nudge employees’ actions leading to a 60 per cent increase in desired outcomes.
#8: Digital infrastructure is at the core of future enterprises: By 2025, a 6X explosion in high dependency workloads leads to 65 per cent of A2000 firms using consistent architectural governance frameworks to ensure compliance reporting and audit of their infrastructure.
#9: Business value of networks: By 2022, more than 50 per cent of organizations will prioritize connectivity resiliency to ensure business continuity, resulting in uninterrupted digital engagement to customer, employees and partners.
#10: Business value of IT: By 2024, digital-first enterprises enable empathetic customer experiences and resilient operating models by shifting 60 per cent of all tech and services spending to as-a-service and outcomes-centric models.
“There will be greater interdependencies between enterprises and across industries in a digital-first world. In Asia/Pacific, more than 50 per cent of organizations will see an increased spend in technologies as a result of collaborations with ecosystem partners. This co-innovation and sharing of data, insights, and applications will lead to new products and services addressing the digital-first customer’s changing needs and habits,” Ng says.
