Where will digital transformation be in 2020? Will all companies be digitally transformed? Are brands going to communicate with customer using Artificial Intelligence? Will we work from home and meet colleagues by Virtual Reality?
The possibilities are quite literally endless. A slightly cheesy way to put it, but the digital transformation mindset has opened doors to so many new and exciting technologies and ideas – who knows what could come next!
IDC, our research partner, has attempted to predict where digital transformation could take us. They predict that we are close to the next Industrial Revolution – a ‘Digital Industrial Revolution’. A term they originally coined, this revolution will lead to the DX Economy, which is the idea that we are moving from digital transformation to a digital economy.
“We are at an inflection point as digital transformation efforts shift from ‘project’ or ‘initiative’ status to strategic business imperative,” said Frank Gens, Senior Vice President and Chief Analyst at IDC. “Every (growing) enterprise, regardless of age or industry, must become ‘digital native’ in the way its executives and employees think, what they produce, and how they operate. At the same time, 3rd Platform technology adoption and digital transformation is happening much faster than most expected and early competitive advantages will go to those enterprises that can keep pace with the emerging DX economy.” –IDC
5 stages of the transformation to the DX Economy
- Stage 1 – The 3rd Platform
- Stage 2 – Innovation accelerators
- Stage 3 – From transformation to innovation stage
- Stage 4 – Acceleration
- Stage 5 – DIGITAL INDUSTRIAL REVOLUTION
IDC’s 10 predictions for that state of digital transformation by 2020
- 50% of the Global 2000 will be dependent on digital business. Their ability to create digitally-enhanced products, services, and experiences will determine their market share.
- 3rd Platform technologies and services will drive nearly 75% of IT spending.
- Cloud-first will become a reality taking 67% of enterprise IT infrastructure spending.
- Cognitive/ AI technology will be 100% integrated with all IoT efforts and initiate 40% of all digital transformations.
- This year, over 30% of consumer-facing companies will be experimenting with Augmented Reality/ Virtual Reality as part of their marketing efforts.
- Over 80% of the Global 500 will be digital services suppliers through ICCs with the number of Industry Collaborative Clouds (ICCs) will triple to more than 450.
- 70% of the Global 500 companies will have a dedicated team to digital transformation.
- More than 70% of cloud services providers’ revenues will be mediated by channel partners/brokers.
- This growth in digital will demand a new set of DX-driven benchmarks, leading to a significant increase in business performance.
- One-third of health/life sciences and consumer product companies will begin to develop the first wave of products and services tightly integrating 3rd Platform technologies with the human body.
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