Organizations have been debating digital change for years, and the years 2018-2020 are projected to be vital for leaders to prepare for and execute it through sectors. There is common awareness among senior executives that digital technologies’ role is changing from marginal productivity to becoming a platform for creativity and disruption.
When it comes to a timetable, 85 percent of core policymakers say they only have two years to master digital change. Although there has been some success in digital change over the last two years, there is already a sense of urgency, and given that 59 percent of market leaders feel it is now too late to change, time is of the essence. So, what does the future hold for digital transformation, and what do leaders think when preparing for its growth and implementation?
According to IDC Future Scape: Worldwide Digital Transformation 2021 Projections, facing a global pandemic, direct digital transformation (DX) spending will expand at a compound annual growth rate (CAGR) of 15.5 percent from 2020 to 2023, reaching USD 6.8 trillion, as businesses draw on current plans and acquisitions to become digital-at-scale future enterprises.
The IDC Futures cape for Worldwide Digital Transition makes the following predictions:
The first prediction is that DX investments will be accelerated. Bring on Economic Gravity. The economy is on track to meet its digital targets, with 65 percent of global GDP projected to be digitalized by 2022, over USD 6.8 trillion in direct DX investments expected from 2020 to 2023.
Prediction 2: Advanced automated corporate systems and roadmaps. By 2023, 75% of companies, up from 27% currently, will have extensive digital transformation (DX) deployment roadmaps, resulting in real transformation across all industry and society areas.
Prediction 3: Digital Management Systems Would Become More Sophisticated. By 2023, 60% of G2000 leaders would have changed their management focus from operations to results, resulting in more flexible, creative, and caring operating models.
Prediction 4: Expanded Environments and the Growth of the Digital Web 75 percent of corporate leaders will use emerging channels and ecosystem capabilities to adapt their value chains to new economies, sectors, and environments by 2025, owing to uncertain global circumstances.
Prediction 5: Implementing a digital-first approach. Although “internet first” prevails across the board, 60 percent of companies will spend heavily digitizing employee interactions by 2021, changing the employer-employee relationship.
Market Model Reinvention is the sixth prediction. By 2021, at least 30% of companies will have accelerated creativity to enable the company and operating model reinvention and restructuring projects to future-proof their operations.
Prediction 7: DX and Sustainability By 2022, most enterprises will derive more benefit from integrating digital and sustainability, making digitally-driven and sustainably-enabled initiatives the de-facto norm.
Digitally Native Societies are expected to be the eighth prediction. To compete in the modern dominance economy, 50 percent of companies will follow a customer-centric, data-driven corporate culture by 2025.
Prediction 9: Interactive Interactions Will Quicken. By 2022, 70% of all companies would have expanded their use of emerging technology, changing current company structures to improve customer loyalty, employee efficiency, and market resiliency.
Company Growth Platforms were the tenth forecast. To promote creativity and development in the modern standard, 60% of G2000 businesses will develop their company innovation network by 2023.