Top 10 Predictions for the Future of Trust
International Data Corporation’s (IDC) top 10 predictions for the Future of Trust point to a new normal as the world continues to navigate the impact of the COVID-19 pandemic. Organizations – private sector, government, and educational institutions – have reached a digital transformation tipping point and are aggressively embracing digital-first strategies.
Data security, confidentiality, integrity, and availability are now key issues for all organizations, as is the imperative to use data ethically while complying with a complex web of industry and regional regulations. Organizations must also recognize – and be sensitive to – practices that pose risks to the environment and humanity. The sense of urgency is building on proactive delivery of all the elements of Trust – risk, compliance, security, privacy, and social environmental responsibility and ethics.
“Organizations’ futures are built on Trust and that is evident in IDC’s top 10 Future of Trust predictions,” said Amita Potnis, research director, Future of Trust at IDC. “Leveraging available security capabilities, adhering to privacy and data protection, increasing focus on environmental sustainability and social impact, addressing regulatory compliance, and stringently following a governance model that extends to business partners and suppliers will become integral to uplifting trust as a means of competitive differentiation.”
IDC’s Future of Trust top 10 predictions provide guidance to business leaders as they navigate the changes ahead:
- Prediction 1: By 2025, 35 per cent of organizations will replace Net Promoter Score-like metrics with Trust Indices in RFPs to align traditional security and risk solutions with customer success, brand, and reputation.
- Prediction 2: By 2026, 40 per cent of global enterprises will incorporate cyber resiliency planning in response to trans-national sanctions against countries that neglect overseas illegal cyber-activities of their citizens.
- Prediction 3:By 2023, 25 per cent of G2000 public cloud customers will subscribe to integrated risk management and cyber insurance policies through shared fate risk programs to protect against sophisticated cyberattacks.
- Prediction 4:By 2023, 55 per cent of organizations will allocate half of their security budgets to cross-technology ecosystems/platforms designed for rapid consumption and unified security capabilities to drive agile innovation.
- Prediction 5:By 2023, 20 per cent of IT buyers with IT environments that span disparate locations, clouds, remote workers, and devices will turn to network security as a service to ensure consistent protection.
- Prediction 6:By 2023, 80 per cent of organizations faced with complex global regulations will increase security compliance automation investment by 25 per cent to ensure all policies and regulations are met consistently.
- Prediction 7:By 2022, 33 per cent of digital platforms will appoint resident compliance officers to limit liability from criminal penalties imposed by evolving regulations related to negative social impact of misinformation.
- Prediction 8:By 2026, 30 per cent of organizations will commit to short, mid, and long-term sustainability objectives that span 10+ years with assured funding from stakeholders despite change of personnel during this time.
- Prediction 9:To prepare for future disruption while maintaining supplier sustainability mandates, 35 per cent of organizations will prioritize supply chain resiliency and responsible sourcing by 2024.
- Prediction 10:By 2025, 25 per cent of the Fortune Global 500 will employ blockchain-enabled Customer Data Tokens (CDT) and Basic Attention Tokens (BAT) to compensate customers for the gathering and use of their data.
Top 10 Predictions for the Future of Innovation
Delivering innovative digital products can help businesses satisfy customers and create stronger competitive differentiation. Organizations that can then take the next step and transform their software innovation to into value engines will spawn additional business value, such as data monetization, new partnerships, or entrance into new markets. As business leaders consider ways to leverage software innovation and transform their businesses into digital innovation factories, International Data Corporation (IDC) offers its top 10 predictions for the Future of Digital Innovation.
Profitable digital innovation requires alignment across the organization, combined with a strategic selection and application of proprietary or community source tools. Most of all, digital innovation requires a clear understanding of what customers want, as well as the ability to anticipate what they will need – even before they do.
“One notable impact of the COVID-19 pandemic is that many enterprises now recognize that their ability to build innovative digital products and services will determine whether they succeed or fail in the market,” said Nancy Gohring, research director, Future of Digital Innovation at IDC. “The imperative to develop innovative digital offerings is influencing an array of strategic decision making in the enterprise, including significant changes to business models, organizational models, distribution models, and revenue streams.”
IDC’s top 10 predictions for the Future of Digital Innovation address topics related to shifting business requirements and enabling more efficient software development:
- Prediction 1: By 2026, enterprises that successfully generate digital innovation will derive over 25 per cent of revenue from digital products, services, and/or experiences.
- Prediction 2: By 2022, organizations that allocate 50+ per cent of their software development projects to customer-facing initiatives will see revenue grow 15 per cent faster compared to those that focus more on internal projects.
- Prediction 3: To help alleviate the developer skills shortage, 55 per cent per cent of organizations will use cloud marketplaces and tech start-up acquisitions as their most important approaches to software sourcing by 2024.
- Prediction 4: By 2024, companies that have already invested in building a developer ecosystem will expand their customer base by 25 per cent.
- Prediction 5: Securing the software supply chain will be a core competency embraced by 75 per cent of large digital innovators by 2023.
- Prediction 6: By 2023, traditional distribution models crumble as 20 per cent of businesses in some sectors use technology to go direct to customers, seeking to improve customer satisfaction and product development.
- Prediction 7: By 2026, 30 per cent of software development teams will be focused on turning traditional products into outcomes as a service.
- Prediction 8: Half of the Global 500 will have insourced software development significantly by 2025, exacerbating the software engineering skills shortage and fuelling interest in software development efficiencies.
- Prediction 9: 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.
- Prediction 10: By 2025, 75 per cent of newly developed applications will include some automatically generated code, freeing up humans to focus on development tasks that are not easily automated.