IDC’s Serge Findling recently revealed why initiatives and investment in digital transformation are key for business leaders including CIOs.
The recent report on CIO agenda prepared by IDC shows that several enterprise CIOs are not yet ready for their plunge into digital transformation.
“For CIOs and senior IT executives, the challenge is to think and operate like a digital-native enterprise in the face of the emergence of platforms, innovation accelerators, machine learning, augmented skills, micro-personalization, new partnerships, and new relationships,” said Serge Findling, vice president of Research for IDC’s IT Executive Programs (IEP).
The most important prediction is that all digitally transformed organizations will generate at least 45 percent of their revenue from “Future of Commerce” business models. This indicates that CIOs cannot afford to miss the digital opportunities.
The fact that digital transformation spending will reach $1.7 trillion by the end of 2019, a 42 percent Increase from 2017, will bring cheers to technology and networking companies such as Cisco, HPE, IBM, Oracle, Microsoft, AWS, Google, Facebook, Salesforce, SAP, among others.
IDC earlier said spending on digital transformation technologies including hardware, software, and services is expected to be nearly $1.3 trillion in 2018, an increase of 16.8 percent over $1.1 trillion spent in 2017.
75 percent of CIOs will put experiential engagement, data monetization, or digital business at scale at the top of their agenda by 2018.
Digital transformation is a big challenge for CIOs. IDC says 75 percent of CIOs and their enterprises will fail to meet all of their digital objectives through 2019 dragged down by conflicting digital transformation imperatives, ineffective technology innovation, cloud infrastructure transition, and underfunded end-of-life core systems.
CIO can expect more power if they undertake digital transformation programs. The report says that 60 percent of the CIOs who crossed the digital divide will prevail in c-suite turmoil and competition to become digital business leaders for their enterprises by 2020.
60 percent of CIOs will complete infrastructure and application re-platforming using cloud, mobile, and devops, clearing the deck for accelerated enterprise digital transformation by 2019. This means that 2018 will be the year for starting the preparation for digital transformation.
60 percent of IT organizations will deploy DX platforms supporting new customer- and ecosystem-facing business models by 2019. This indicates that the primary focus of digital transformation is to enhance customer experience and business efficiency.
75 percent of CIOs will re-focus cybersecurity around authentication and trust to manage business risks, initiating the retirement of systems that cannot ensure data protection by 2019. This indicates that cybersecurity companies such as Symantec, Trend Micro, among others, will thrive during the digital transformation process.
40 percent of CIOs will leverage vision- and mission-driven leadership to inspire and empower their organizations to create digital transformation capabilities by 2020. It’s not clear CIOs will get enough expertise from other top management to go ahead with the digital transformation process.
At least 40 percent of organizations will have a fully staffed digital leadership team versus a single DX executive lead to accelerate enterprise-wide DX initiatives by the end of 2018.
40 percent of CIOs will adopt new digital governance models to accelerate innovation and speed by 2020 recognizing the failure of existing it governance and the need for a shared digital transformation vision.
70 percent of CIOs will take agility to the next level, gearing up to a product model using design thinking and devops by 2018.
60 percent of CIOs will implement an IT business model and culture that shifts focus from it projects to digitally-oriented products by 2020.
By 2019, personal digital assistants and Bots will execute only 1 percent of transactions, but they will influence 10 percent of sales, driving growth among the organizations.
In over half of global 2000 firms, revenue growth from information-based products and services will be twice the growth rate of the balance of the product/service portfolio by 2020.
25 percent of global 2000 companies will have developed digital training programs and digital cooperatives to compete more effectively in talent wars by 2020.
“While we are seeing more companies becoming more digitally capable, there is a widening gap between leaders and laggards, with significant implications for those organizations that cannot make the transition to a digital-native organization,” said Shawn Fitzgerald, research director, Worldwide Digital Transformation Strategies, IDC.