There’s been an imminent shift towards a data-first approach
IDC predicts that by 2027, 60 per cent of market leaders will have systemic, structured digital innovation programs and investments that support ongoing iterative innovation, enabling growth, scale, agility, and resilience.
The pace of digitalization and innovation has accelerated in the Asia Pacific region post the pandemic, as many countries have eased the restrictions. Many APeJ companies are advancing into the digital world by exploring high-impact use cases across industry sectors. According to IDC FERS Survey 2022, more than 40 per cent of organizations will continue to deliver innovative digital products or services at a faster pace compared to the last 2 years.
Competition from global counterparts and the emergence of the digital ecosystem driven by personalization has compelled APeJ enterprises to invest in strengthening their innovation capabilities.
“The imminent shift towards a data-first approach, collaboration with business partners, and support from government authorities will create a resilient, secure, and trusted environment for unlocking multiple growth opportunities in terms of revenue, customer experience, and digital innovation during a global crisis (war, inflation, and recession),” says Dhiraj Badgujar, Senior Research Manager, Future of Digital Innovation and DevOps, IDC Asia/Pacific.
IDC’s top ten Future of Digital Innovation predictions identify the most important trends and related areas of opportunity in APeJ:
Innovating During Crisis: By 2024, the top five companies in each sector will be those that used technology to innovate their way out of a global crisis such as a recession or supply chain disruption.
Best Dataset Wins: By 2025, 20 per cent of companies will successfully incentivize consumers to share closely held data to devise non-traditional offerings, improve customer experience and grow market share.
Innovative Algorithms: By 2024, 30 per cent of businesses that build innovative algorithms to glean intelligence from unique data sets will deliver successful new product offerings and pricing models; and tap new customer segments.
Dev Time Tips to Innovation: By 2028, new efficiencies will allow developers to increase the share of time they spend on innovation from 25 per cent of their development-related work to 60 per cent.
Dumb vs. Smart Products: By 2027, recurring revenue from intelligent products will make up 60 per cent of revenue for companies that also sell “dumb” and “smart” versions of the same products.
Intentional Innovation: By 2027, 60 per cent of market leaders will have systemic, structured digital innovation programs and investments that support ongoing iterative innovation, enabling growth, scale, agility, and resilience.
Sharing Data for Leverage: By 2026, companies that share data with business partners to leverage their collective data sets for new revenue potential will grow revenue 10 per cent faster than those that don’t.
Measurement Enables Success: 70 per cent of CEOs of Asia-based 1000 companies will demand senior leaders to deliver data-driven insight into innovation activity, including developer efficiency and business outcomes by 2025.
Pervasive Tech Skills: In 2027, the share of non-technology-focused people in companies who will spend 10 hours or more a week contributing to digital innovation will grow from 5 per cent today to 30 per cent.
Misuse of Data: In 2028, 5 large companies in Asia/Pacific will make headlines for using digital technologies to manipulate customer experiences to spur upgrades and replacements.