Represents more than half of all ICT investment by 2024.
Responding to the pandemic, organizations accelerated their investments in digital. This means that in 2022 more than half the global economy will be based on or influenced by digital.
In fact, according to IDC FutureScape: Worldwide Digital Transformation 2022 Predictions, direct digital transformation investments will accelerate to a compound annual growth rate (CAGR) of 16.5% in 2022-2024, up from a 15.4% CAGR in 2019-2024, becoming 55% of all information and communications technology (ICT) investments by the end of 2024.
IDC analysts Shawn Fitzgerald and Bob Parker discussed the key predictions that will impact CIOs and IT professionals with regards to digital transformation over the next one to five years and offered guidance for managing the implications these predictions harbor for IT investment priorities and implementation strategies.
The predictions from the IDC for worldwide digital transformation are:
Prediction 1: Double Digit Investment Growth. Direct digital transformation investments accelerate to a 16.5% CAGR in 2022-2024, up from a 15.4% CAGR in 2019-2024, becoming 55% of all ICT investment by the end of 2024.
Prediction 2: Digital GDP Rules. Responding to the pandemic, organizations accelerated their investments in digital. This means that in 2022 more than half the global economy is based on or influenced by digital.
Prediction 3: Physically Architecting Digital. By 2023, 90% of organizations worldwide will prioritize investments in digital tools to augment physical spaces and assets with digital experiences.
Prediction 4: Automating Enterprises and Ecosystems. By 2025, 60% of organizations will capitalize on disruption with an enterprise- and ecosystem-wide approach to automation, leveraging model-based enterprise concepts, centers of excellence (COEs), and low-code/no-code platforms.
Prediction 5: Leadership for Digital Resiliency. By 2026, 54% of CIOs drive business transformation, empowering digitally resilient organizations via strategic technology roadmaps and re-platforming to enable an agile, data-driven, collaborative workforce.
Prediction 6: Digital Enculturation and Empowerment. Leveraging low-code/no-code tool and data utilization capability, the majority of employees at 60% of enterprises will lead transformation and embody digital resiliency at their roles by 2024.
Prediction 7: Digital Resiliency. By 2022, 55% of organizations will have expanded resiliency plans to future-proof their business, improving profitability, innovation rates, and cost efficiencies by more than 20% compared to their peers.
Prediction 8: Digital ROI and Outcomes. By 2023, 1 in 2 companies will generate more than 40% of their revenues from digital products and services, as compared to 1 in 3 in 2020.
Prediction 9: Digital Dream Teams. By 2025, companies with cross-functional leadership, a digital dream team, enjoy faster rates of innovation, higher market share gains, and greater operational efficiencies than their contemporaries.
Prediction 10: Decarbonization and digital. Decarbonization initiatives are a key goal of digital transformations; fewer than 10% of organizations say they are not applicable or not implementing objectives to reduce carbon by the end of 2023.
“Direct digital transformation (DX) investment growth rates are accelerating, up to a 16.5% CAGR for 2022-2024. This is an increase of one full percentage point from the 15.5% CAGR we saw for the 2020-2023 timeframe. 2022-2024 investment levels are expected to be $6.3 trillion and 55% of all ICT investment by the end of 2024. This is a $0.9 trillion increase from the 2020-2023 timeframe where we forecast direct investment at $5.4 trillion. For the first time ever, we see that the majority of enterprise organizations, at 53%, have an enterprise-wide digital transformation strategy, a 42% increase from just two years ago,” said Shawn Fitzgerald, research director, Worldwide Digital Transformation Strategies at IDC.
