Cloud will surpass on-premises infrastructure

Organizations need new digital capabilities

IDC predicts by 2025, the cloud will surpass on-premises infrastructure as the primary location where operational data is stored, managed, and analysed for 65 per cent of A2000 organizations.

IDC’s Future of Operations framework describes how organizations can improve their decision-making processes and efficacy by embracing data-driven operations (DDO). Cloud has a central role to play in DDO and this is reflected in the data from IDC’s 2022 Worldwide Future of Operations Survey that shows cloud technology is the top technology priority for organizations in Asia/Pacific. 80 per cent of respondents say that cloud is important or critical in terms of its ability to help an organization achieve operational excellence and resilience. Other key technologies needed to achieve efficient and optimized operations include robotics, mixed reality tools, edge computing, 5G and cybersecurity.

“Asia/Pacific organizations understand the need to invest in critical technologies to achieve data-driven operations. Organizations need new digital capabilities and must establish foundational technologies like cloud and next generation connectivity”, says Rakesh Patni, Associate Research Director, Future of Operations, IDC Asia/Pacific.

“However, there is another significant aspect that organizations must not neglect, which is developing talent – either through hiring and partnerships with service providers or upskilling and reskilling the existing workforce. It is only when talent and technology combine with the right strategy that organizations can achieve optimized and efficient operations. The Future of Operations predictions uncover opportunities and act as signposts that will assist organizations in AP in their digital transformation journey,” adds Patni.

IDC’s Future of Operations top 10 predictions for 2023 provide guidance to business leaders on how and where data driven operations can be achieved and maintained:

Sustainability in Operations: By 2026, 40 per cent of Asia-based 2000 (A2000) industrial organizations will make real-time decisions balancing economic and sustainability metrics, simultaneously improving both sets of metrics by 5 per cent across the enterprise.

Lifecycle Carbon Footprint: By 2026, 30 per cent of product-centric organizations will use digital tools to measure life-cycle carbon footprint, creating demand for better integration between PLM and operational data.

Talent from Service Providers: By 2024, talent shortages and pressure to improve operational performance will force organizations to revaluate their approach to digital transformation, resulting in greater use of outside services.

XR/AR/VR in Operations: By 2027, the use of extended reality technology, including AR/VR/MR tools, will increase by 40 per cent, creating a new breed of digital worker and reducing operator/field worker errors by 30 per cent

Robotics and Inspections: By 2027, the use of robots in non-traditional sectors, most notably remote inspection, and maintenance, will increase by 25 per cent, resulting in a 40 per cent drop in inspection errors.

5G Impact on Operations: By 2024, digital-first operations enabled by 5G connectivity will improve worker safety, resulting in a 20 per cent reduction in lost time accidents.

Satellite Edge in operations: By 2027, 40 per cent of remote operations will use satellite-enabled AI/ML technology to collect and analyse data at the edge, reducing costs and improving yields and energy usage in the natural resource sectors.

Cloud in operations: By 2025, the cloud will surpass on-premises infrastructure as the primary location where operational data is stored, managed, and analysed for 65 per cent of A2000 organizations.

Organizational Reconfiguration: By 2024, 30 per cent of industrial organizations will have become leaner and more agile than their competitors because of making real-time operational insights available anytime, anywhere, to anyone.

Cybersecurity in Operations: By 2026, 40 per cent of organizations will increase the use of IoT and OT cybersecurity solutions at the edge, cutting OT cybersecurity breaches in half.



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