As we move into the next decade, the role of technology to transform businesses will continue to expand exponentially. In the light of the current uncertainty and volatility in the market, the light has once again been shone on the role of technology to help organizations manage crises and build operational resiliency for the future.
In 2019 alone, organizations globally spent $1.2 trillion on digital transformation initiatives. IDC’s research shows that this continues to grow at close to 20% year on year.
But only 19% of organizations are generating net new revenue streams from digital investments. Moving forward, IDC believes that there will be a laser focus on ROI to deliver financial outcomes in a difficult economic environment that will shape the rest of 2020.
Below are the five tech trends that will build resilience for the challenging times ahead:
- Firstly, the focus will be on the multiplier effect that platform have on business value. IDC’s research shows that 82% of revenues derived from digital business models will be platform-based, as they enable the seamless flow of data across every element of the value chain. IDC believes that the anchor point to deliver business value from technology investments in the future will shift from applications (which encouraged data fragmentation) to platforms (which will enable a more seamless flow of data across internal and external environments).
- Secondly, they focus on a data strategy that delivers visibility. We believe that by the end of this year, 80% of enterprises will create data management and monetization capabilities, enhancing enterprise functions, strengthening competitiveness, and providing executives the necessary visibility across financials, people and operations to drive the right decision-making, which will be increasingly critical in the face of uncertainty.
- From 2018 to 2023, IDC predicts that 500 million new apps will be created — equal to the number built over the past 40 years. This is what we call the app explosion, and it’s leading to an unprecedented integration challenge that only next-generation platform architectures can start to solve.
- Next, the focus on modernizing core IT leveraging the cloud will continue. 65% of organizations will aggressively modernize legacy systems with extensive new technology platform investments through 2023.
- Finally, technology leadership strategy that consolidates pockets of expertise will accelerate. By 2023, 30% of organizations will define a new technology leadership role combining CIO, CTO, chief digital officer, chief data officer, and chief innovation officer functions.
IDC believes that a new technology architecture will be critical for an organization’s ability to deliver business outcomes from its digital investments, and that over the next decade 75% of organizations will be digitally transformed, with the rest falling out of business. The anchor point to deliver business value will shift from applications (which encouraged data fragmentation) to platforms (which will enable a more seamless flow of data across internal and external environments). This platform is a flexible application infrastructure architecture that enables the orchestration and automation of end-to-end business processes and creates a launchpad for business innovation capabilities.
Those organizations that survive today’s challenging environment while at the same time laying the foundation for future success will depend on their ability to build out a data-driven, platform-enabled, and ecosystem-centric business model. Winning this 10-year race to become a digital business requires a new way of thinking, acting, measuring, and reporting success. The outcome will be a shift from the traditional linear value chains toward a model in which all ecosystem interactions are part of a continuous feedback loop underpinned by a platform that enables the seamless flow of data across every person and organization in the value chain.
This visibility will provide the business with the power of guided decision making and insights that will help organizations navigate the unchartered territory that lies ahead.
How to make this happen and succeed in this increasingly volatile market? Read IDC’s White Paper The Top 5 Tech Trends to Deliver Business Outcomes: Understanding the Power of the Platform.