THE NEXT CHAPTER IN DIGITAL TRANSFORMATION:
THE DIGITAL BUSINESS ERA
In the wake of the looming global recession, social unrest, and political turmoil – coupled with the long-lasting effects of the COVID-19 pandemic – the era of digital transformation is evolving into the digital business era.
From addressing departmental challenges that resulted in having islands of innovations to closing the digital ROI gap and transformation at scale, leading enterprises are now primed to build and scale new business models to run a viable sustainable digital business for the long term.
IDC defines a digital business as value creation based on digital technology that entails the following:
- Automated customer-facing processes and internal operations
- Provisioning and delivery of data-driven products, services, and experiences
- Multiparty orchestration of ecosystem collaboration, cocreation, and coinnovation
- Attraction, augmentation, and continuous development of a digital workforce
In addition, a digital business has 4 distinctive characteristics:
Have an enterprisewide digital-first strategy.
A digital-first strategy that is sponsored and driven by the C-suite is in place, and the CEO is directly involved.
Use technology to compete.
The use of technology shifts from driving internal efficiency to enabling external market competition.
Focus on business outcomes.
Digital innovation programs shift from experimentation to delivering business outcomes at scale.
Create value using digital.
Quantifiable value is directly created from or enabled by digital technologies.
IDC’S “FUTURE OF X” PRACTICES
The critical capabilities of the Future Enterprise are as follows:
FUTURE OF CONNECTEDNESS
By 2025, 50% of digital organizations will augment "cloud first" with a "wireless first" multi-access network fabric using diverse technologies for mission-critical and business continuity use cases.
FUTURE OF CUSTOMER EXPERIENCE
By 2024, 50% of the G2000 will adopt CDPs as the enterprise customer data service for real-time customer interactions like a central nervous system, increasing CX metrics and revenue by 5%.
FUTURE OF DIGITAL INFRASTRUCTURE
By 2026, 95% of companies will invest in fit-for-purpose, heterogeneous compute technologies that deliver faster insights from complex data sets to drive differentiated business outcomes.
FUTURE OF INDUSTRY ECOSYSTEMS
By 2024, organizations that automate IT processes for data model and application development as well as sharing across their industry ecosystems will deliver products and services 30% faster.
FUTURE OF INTELLIGENCE
By 2024, 80% of G2000 companies will increase investment in intelligence about threats/opportunities to local operations posed by external threats such as supply chain disruptions.
FUTURE OF OPERATIONS
By 2027, 50% of remote operations will use satellite-enabled AI/ML technology to collect and analyze data at the edge, reducing costs and improving yields and energy usage in the natural resource sectors.
FUTURE OF TRUST
By 2027, 60% of G2000 companies will adopt continuous risk assessments over annual security audits, leveraging service providers to limit the burden of policies, practices, and technical debt.
FUTURE OF WORK
Effectively blurring space and place, by 2025, 65% of G2000 companies will consider online presence to be at parity to "in real life" across their engaged workforce.
FUTURE OF CONNECTEDNESS
By 2025, 50% of digital organizations will augment "cloud first" with a "wireless first" multi-access network fabric using diverse technologies for mission-critical and business continuity use cases.
BEST IN FUTURE OF CUSTOMER EXPERIENCE
By 2024, 50% of the G2000 will adopt CDPs as the enterprise customer data service for real-time customer interactions like a central nervous system, increasing CX metrics and revenue by 5%.
FUTURE OF DIGITAL INFRASTRUCTURE
By 2026, 95% of companies will invest in fit-for-purpose, heterogeneous compute technologies that deliver faster insights from complex data sets to drive differentiated business outcomes.
FUTURE OF INDUSTRY ECOSYSTEMS
By 2024, organizations that automate IT processes for data model and application development as well as sharing across their industry ecosystems will deliver products and services 30% faster.
FUTURE OF INTELLIGENCE
By 2024, 80% of G2000 companies will increase investment in intelligence about threats/opportunities to local operations posed by external threats such as supply chain disruptions.
FUTURE OF OPERATIONS
By 2027, 50% of remote operations will use satellite-enabled AI/ML technology to collect and analyze data at the edge, reducing costs and improving yields and energy usage in the natural resource sectors.
FUTURE OF TRUST
By 2027, 60% of G2000 companies will adopt continuous risk assessments over annual security audits, leveraging service providers to limit the burden of policies, practices, and technical debt.
FUTURE OF WORK
Effectively blurring space and place, by 2025, 65% of G2000 companies will consider online presence to be at parity to "in real life" across their engaged workforce.
FUTURE OF DIGITAL INNOVATION
By 2028, new efficiencies will allow developers to increase the share of time they spend on innovation from 25% of their development-related work to 75%.
IDC predicts that spending on digital technology by organizations will grow at 8X the economy in 2023, establishing a foundation for operational excellence, competitive differentiation, and long-term growth. With spending on digital technologies forecasted to rise to $2.8 trillion globally by 2025, a much greater focus of enterprise leaders will be on clear and measurable business outcomes from tech investments. As they work towards this goal, organizations piece by piece unlock their potential to be the gold standard in a digital-first world – The Future Enterprise.
LEARNING RESOURCES
Looking to jumpstart digital transformation initiatives in your organization, or keen to progress further in your digitalization journey? Check out these resources from IDC!
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