Digital transformation crucial for half of APAC companies by 2020: IDC

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Following up on IDC’s predictions on the “dawn of the DX Economy” (DX = digital transformation), IDC says that Asia-Pacific in particular is in for major digital transformation – so much so that half of the top 1,000 regional companies will see majority of their business depend on ability to create digitally-enhanced products, services and experiences by 2020.

IDC Asia/Pacific announced its top technology predictions for Asia Pacific excluding Japan (APeJ) at the IDC FutureScape event held at the Singapore Marriott Plaza Hotel and highlighted that digital transformation will attain macroeconomic scale over the next three to four years, changing the way enterprises operate and reshaping the global economy.

“As digital transformation reaches macroeconomic levels, a DX economy will emerge and will become the core of what industry leaders do and operate”, says Sandra Ng, Group Vice President, Practice, IDC Asia/Pacific. “Essentially, to succeed, every growing enterprise must become a ‘digital native’ in the way its executives think and act when the DX economy makes its first appearance in 2017.”

Ng also revealed the strategic top predictions that will unfold in 2017 and beyond and make the biggest impact to organizations in the Asia/Pacific region:

#1: DX economy. By 2020, half of the A1000 will see the majority of their business depend on their ability to create digitally-enhanced products, services and experiences.

#2: Tech savvy CEO. By 2020, one quarter of the C-level business executives in A1000 companies will have spent at least 3 years of their career in a technology leadership role.

#3: Leading in 3D (not the TV technology). By 2019, 70% of CIOs will recognize the limitations of traditional IT and embrace a leadership approach that embodies a virtuous cycle of innovation (Leading in 3D).

#4: Cognitive/AI. By 2020, 40% of digital transformation initiatives will be supported by cognitive/AI capabilities, providing critical on-time insights for new operating and monetization models.

#5: Info-based products. By the end of 2019, revenue growth from information-based products will be double that of the rest of the product/service portfolio for one third of A1000 companies.

#6: Immersive interfaces. In 2017, 30% of consumer-facing A1000 companies will experiment with AR/VR as part of their marketing efforts.

#7: Business services. By 2019, 65% of IT organizations will create new customer-facing and ecosystem-facing services to meet the business DX needs.

#8: Industry collaborative clouds. By 2018, the number of industry collaborative cloud will triple to more than 150; by 2020, over 50% of the A500 will be digital services suppliers through ICCs.

#9: Self-healing process. By 2020, nearly 20% of operational processes will be self-healing and self-learning – minimizing the need for human intervention or adjustments.

#10: Risk Management. By 2019, 60% of CIOs will help drive risk portfolios that enable adaptive responses to security, compliance, business, or catastrophic threats.

“In the DX economy, the inter-dependence of digital transformation, 3rd platform* and IT leadership becomes the essential trinity for success. DX will drive the customer-centric business strategy, the 3rd platform will be the technology enabler, while IT leadership will be the differentiating factor for digital transformers and disruptors”, says Ng.

Meanwhile, IDC predicts that the 4th platform is already on the horizon. In fact, by 2020, one-third of health/life science and consumer product companies will begin to develop the first wave of products and services tightly integrating 3rd platform with the human body. Moreover, “Augmented Humanity” offerings are expected to mainstream in the mid-2020s.

These predictions for Asia/Pacific are presented in full in the following reports: IDC FutureScape: Worldwide IT Industry 2017 Predictions — Dawn of the DX Economy — APeJ Implications; IDC FutureScape: Worldwide Digital Transformation (DX) 2017 Predictions; IDC FutureScape: Worldwide CIO Agenda 2017 Predictions.

To learn more about other IDC FutureScape documents and upcoming webinars on the latest technology predictions, visit the FutureScapes Library .

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