Digital Transformation: 10 predictions you should be aware of

SNP Experts
| 5 min read

Despite the global pandemic, companies are increasingly investing in their digital transformation: By 2023, expenditures are expected to rise to 6.8 trillion US dollars worldwide. This is one of ten forecasts on advancing digitization presented by IDC in a current survey report. We have summarized the findings for you.

 

The fact that leveraging technology keeps companies viable has been valid not just since the current pandemic. Alas, it has certainly gained more urgency in the wake of it. "The COVID 19 pandemic demonstrated that the ability to adapt quickly and respond to unforeseen business disruptions will be a clear success factor in our increasingly digitized economy," said Rick Villars, group vice president, Worldwide Research, IDC, relating to the recent survey, "Future Scape: Worldwide Digital Transformation 2021 Predictions." According to the study, a large percentage of a company's future revenue depends on the responsiveness, scalability and resilience of its own digital infrastructure.

But which business areas show particular potential for driving forward one's own transformation in a targeted manner? IDC's global forecasts for the time between 2021 and 2025 provide some clues:

 

Prediction 1: Companies will invest more in transformation processes

Despite the pandemic, direct digital transformation (DX) investments are increasing at a compound annual growth rate of 15.5 percent: From 2020 to 2023, spending is expected to reach $6.8 trillion. According to the study, companies are building on existing investments and strategies to operate on a digital scale in the future.

 

Prediction 2: Organizational structures and transformation roadmaps will reach a new level of maturity

Today, less than one-third of companies (27 percent) claim to have detailed implementation plans for their digital transformation processes. By 2023, 75 percent of organizations are expected to have worked on their structures and implementation approaches. IDC predicts that this will lead to a fundamental transformation across all business and societal sectors.

 

Prediction 3: Digitally mature management sets new priorities

Moreover, by 2023, 60 percent of the world's top 2,000 leading, stock exchange-listed companies mentioned in the latest ranking by U.S. business magazine Forbes, will shift their management focus from processes to results. IDC expects more agile and innovative digital operating models to be introduced as a result.

 

Prediction 4: Importance of digital platforms and ecosystems grows

By 2025, a large proportion of companies (75 percent) will already be using digital platforms and ecosystem functions. These solutions should enable them to perfectly adapt their own value chains to new markets and industries.

  

Prediction 5: "Digital first" is in the focus

In the new year 2021, nearly two-thirds of executives (60 percent) plan to invest significantly in the digital experience of their employees, following the key idea of "digital first." According to IDC, this upskilling will transform the relationship between companies and employees.

 

Prediction 6: New business models will be created

At least one in three companies has already accelerated its own innovations (or plans to do so in 2021) in order to develop new digital business models. The focus on these transformation projects is intended to ensure the company's own future viability.

 

Prediction 7: Combining sustainability and digital transformation

Digitization and sustainability will be jointly considered by a majority of companies by 2022. Greater added value is to be realized through a forward-looking combination of the two aspects: Digitally driven and sustainably implemented projects.  

 

Prediction 8: Digital natives culture takes hold

To be competitive in a digitally dominated economy, half of the organizations will introduce a corporate culture optimized for digital transformation by 2025. This is based on an increased customer-orientation and data.

 

Prediction 9: Digital experiences will be accelerated by technology enablement

More than two-thirds of companies (70 percent) will accelerate the use of new technologies within the next two years. Existing business processes will be modernized to drive customer engagement, employee productivity and business resilience.

 

Prediction 10: Trend towards in-house innovation platforms

Within the next three years, more than half of the Forbes Global 2,000 companies (60 percent) will build their own platforms in order to support their new digital business models. That way, innovation and growth are to be sustained in the post-Covid "new normal".

 

The forecasts predict what the focus will be in the coming years in terms of digital transformation. They also provide insights into the complex tasks facing IT executives in order to shape the transformation in the best possible way.

 

For more information on the IDC study, please click here.

 

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