In Asia, digital spending is set to reach $US1T by 2025
IDC predicts that by 2024, 50 per cent of A2000 CEOs will establish strategic personal relationships with their cloud providers to achieve quantifiable outcomes from digital business platform investments.
The digital-first era is upon us and companies must continue to adapt. Those that started their digital transformation earlier are now reaping the benefits, becoming mature digital businesses, and operating as digital-first organizations. Those lagging must accelerate their digitalization pace to keep up. The global economy may be faltering, but companies are still investing in digital technologies to stay competitive.
As technology becomes the lifeblood of businesses, the role of the digital-first CEO and the C-Suite has never been more critical in building strategies, strengthening partnerships, and driving digital transformation. Business and technology leaders must find their place in new digital ecosystems, focus on building trust with customers, provide excellent employee experiences, and be good stewards of sustainability.
“In Asia, digital spending is set to reach $US1T by 2025, driving the future of business. The key to success lies in harnessing the power of data and intelligence, securing long-term funding, and fostering a culture of innovation. The race to digital maturity is on and companies must overcome challenges such as creating data-driven business models, modernizing operating models, and leveraging the digital workforce to drive innovation,” says Lawrence Cheok, Associate Research Director, Digital Business Strategies, IDC Asia/Pacific.
IDC’s top ten Digital Business Strategies predictions identify the most important trends and related areas of opportunity in Asia/Pacific excluding Japan (APeJ):
Digital Spending: Spending on digital technology by organizations will grow at 3.5 times the economy in 2023, establishing a foundation for operational excellence, competitive differentiation, and long-term growth.
Digital Revenue: By 2026, 40 per cent of total revenue for A2000 organizations will be generated by digital products, services, and experiences.
New Tech Providers: The number of tech providers in the Asia-based 500 organizations (A500) will double by 2027, incorporating businesses that originated outside of the tech industry.
CEO and Cloud: By 2024, 50 per cent of A2000 CEOs will establish strategic personal relationships with their cloud providers to achieve quantifiable outcomes from digital business platform investments.
Value Chains: By 2027, organizations with highly developed industry value chains on an ecosystem control plane will innovate 25 per cent faster than other businesses.
Customer Data: By 2028, enterprises that collect, analyse, and contextualize customer data in a trustworthy way will successfully build creative business and pricing models that double customer lifetime value.
Environmental and Social Governance (ESG): By 2025, a quarter of organizations worldwide will demonstrate responsible leadership by increasing their sustainability-related digital tech spend by more than 25 per cent from 2022 levels.
C-Suite Scaling Innovation: With most technology budgets residing with LOB, by 2027, 25 per cent of the expertise in the C-Suite will shift from encouraging innovation to scaling innovation and operating digital businesses.
Quantify Digital Value: By 2027, 80 per cent of organizations will accurately quantify the value of their digital capabilities/assets (data, algorithms, and software code) and significantly improve their market valuation.
Skills Gaps: By 2026, enterprises that did not effectively address the talent and digital skills gap in their organization will constrain revenue growth opportunities by 20 per cent.
