Published on the 07/02/2017 | Written by Newsdesk

IDC peers into the future and insists on digital nativity for every enterprise…

With the release of its technology anticipations for New Zealand, market watcher IDC said the underlying theme for 2017 is that digital transformation will attain ‘macroeconomic scale’ over the next three to four years, changing the way enterprises operate. Its list of ten predictions is dominated by all things digital, and it’s not just a local thing, as the company added that as the digital trend continues to take hold, it will reshape the global economy.

IDC calls it ‘the dawn of the DX Economy’, where DX stands for digital transformation.

“Digital transformation has been a critical topic for business over the last few years and IDC is now predicting a step change as DX reaches macroeconomic levels,” said Louise Francis, IDC senior research manager in a statement. “By 2020 a DX economy will emerge and it will become the core of what New Zealand industries focus on.”

She said this step change means it is no longer enough to make piecemeal investments in DX. “To succeed, every enterprise that wants to grow must become a ‘digital native’. From the board level, through to the C-Suite, organisations must be prepared to think and act digital.”

Harnessing the so-called 3rd platform technologies is the key to prospering in this environment; the 3rd platform is the researcher’s catchall for DX enablers – mobility, cloud, social business, big data analytics, robotics, 3D printing, cognitive systems, next generation security, internet of things and AR/VR.

“To succeed in the DX economy, organisations must master a new form of IT leadership that uses the 3rd platform as an enabler to success through differentiation and disruption. The key to DX is customer-centricity, and while the technology aspect is important it will be the prioritisation of customers that creates a meaningful difference to future businesses ability to thrive in the DX economy,” said Shane Minogue, IDC telecoms analyst.

IDC’s prognostications for 2017 and beyond which it expects to have the biggest impact on New Zealand organisations are:

1. DX Economy: By 2020, half of the NZX organisations will see most of their business depend on their ability to create digitally enhanced products, services, and experiences.

2. 3rd Platform Default: By 2019, 3rd Platform technologies and services will drive over 75 percent of NZ IT spending, growing at 2X the rate of the market.

3. Cloud 2.0: By 2020, 50 percent of all NZ enterprise IT infrastructure and software spending will be for cloud-based offerings. The cloud will morph to become distributed, trusted, intelligent, industry focused, and channel mediated.

4. AI Everywhere: By 2020, 30 percent of all NZ digital transformation initiatives ― and 100 percent of all effective internet of things (IoT) efforts ― will be supported by cognitive/artificial intelligence (AI) capabilities.

5. Immersive Interfaces: In 2017, 30 percent of consumer-facing NZX companies will experiment with augmented reality/virtual reality (AR/VR) as part of their marketing efforts.

6. Industry Collaborative Platforms: By 2018, the number of NZ industry collaborative clouds will triple to more than 20; by 2020, over 70 percent of NZX organisations will be digital services suppliers through Industry Collaborative Platforms (ICPs).

7. DX Developers: By year-end 2018, over 50 percent of NZX organisations will have dedicated digital transformation/innovation teams.

8. DX Channel: By 2020, over 50 percent of NZ cloud services providers’ revenues will be mediated by channel partners/brokers.

9. New Benchmarks: By 2020, all NZ enterprises’ performance will be measured by a demanding new set of digital transformation-driven benchmarks, requiring 40 percent–60 percent or better improvements in leadership, customer engagement, digital offerings, efficiency and agility KPIs.

10. 4th Platform on the Horizon: By 2020, 1/3 of NZ health/life sciences and consumer product companies will begin to develop the first wave of products and services tightly integrating 3rd Platform technologies with the human body; ‘Augmented Humanity’ offerings mainstream in the mid-2020s.

These predictions for the New Zealand and worldwide market are part of IDC’s FutureScapes.