The success in digital acceleration has set APEJ apart from the rest of the world.
Historically, CIOs have been measured on their ability to provide reliable and stable computing resources, i.e., apps, infrastructure, and services, that enabled businesses to deliver products, services, and business outcomes. Today, these abilities are considered table stakes. IDC predicts by 2023, 40 per cent of CIOs will be primarily measured for their ability to co-create new business models and outcomes through extensive enterprise and ecosystem-wide collaboration.
The pandemic has hugely accelerated digital transformation and has created disruptive macroeconomics, microeconomics, and technology currents influencing each other in complex ways. In Asia/Pacific (excluding Japan), the winds of change are influenced by how governments manage the pandemic and the goals they set to reopen their economies and international borders.
The success in digital acceleration has set APEJ apart from the rest of the world. We have seen a much earlier economy recovery in the region and an agile shift toward a digital-first economy. “Now, we have 28 per cent of organizations classified as DX leaders, a 10-percentage point increase from 2019, and APEJ government’s policies and investments have been critical in enabling a digital-first world,” says Sandra Ng, Group Vice President for ICT Practice, IDC Asia/Pacific. ““In fact, the differentiation is no longer purely about DX leaders vs laggards. The whole market has propelled forward over the last two years. Because of COVID, technology spending in DX has further increased, adding another $US400B to the cumulative DX spending 4-year rolling forecast from 2022-2025 in APEJ.”.
IDC’s CIO Agenda top 10 predictions help CIOs/IT leaders better understand future trends and their impacts on the enterprises, as well as providing guidance on how to navigate these changes and challenges:
Virtuous Cycle: Through 2026, 65 per cent of CIOs will sustain a cycle of tech-based empowerment, agility, and resilience through collaborative governance, new service delivery models, and a business outcomes orientation.
Business-Outcomes Driven: By 2023, 40 per cent of CIOs will be primarily measured for their ability to co-create new business models and outcomes through extensive enterprise and ecosystem-wide collaboration.
Technical Debt: By 2025, 75 per cent of CIOs and CFOs will be forced to accelerate or enact formal technical debt management practices due to project delays or failures caused by unresolved technical debt.
User Enablement: Given the rising imperative for hybrid and smart workplaces, by 2024, 50 per cent of CIOs will reimagine user support and create COE-based teams to guide the necessary investments in technology and process.
Data Management: By 2026, 70 per cent of organizations whose data practices inhibit their business and operating strategies will empower CIOs to lead cross-enterprise investments in data governance, quality, and compliance.
Digital Infrastructure: By 2024, 40 per cent of CIOs will fail to effectively evolve IT’s capability to deliver modern digital infrastructures, provide ecosystem tech governance, and support architecture-driven business outcomes.
Direct Cost: Driven by investor pressure to minimize SG&A expenses, by 2025, 50 per cent of organizations will shift at least 15 per cent of IT spending to direct cost aligned with specific LOB products/service.
MFA-First: Despite the cost and friction, 60 per cent of CIOs will embrace ecosystem-wide multi factor authentication for its efficacy as an essential minimum to counter rising cybersecurity threats by 2023.
Ecosystems: By 2024, 60 per cent of CIOs will collaborate to harness industry ecosystem capabilities as a critical source of innovation, data sharing, differentiation, and cybersecurity risk management.
Sustainability: By 2024, businesses will require 55 per cent of A2000 CIOs to implement sustainable IT, embedding environmental, social, and governance practices into the technology life cycle from acquisition to disposal.