There is a transformation impacting business decisions, strategies and growth - a digital transformation. It is happening right now - and it is causing enterprises to make a dedicated, concerted effort to integrate leading-edge digital initiatives across the enterprise to create a revenue-generating, customer-centric, digitally savvy and compliant organization.
By 2018, 67% of the CEOs of Global 2000 enterprises will have digital transformation at the center of their corporate strategy. What are the top predictions for digital transformation's mainstream acceleration?
- IDC reports that in the coming years, the biggest focus for businesses will revolve around digital transformation. In the report IDC FutureScape: Worldside CIO Agenda 2016 Predictions, IDC outlines what the research firms sees as the most significant predictions for the coming years. According to IDC, the biggest issues in IT leadership will center on business needs, capabilities and availability related to digital transformation. In short, digital transformation is going mainstream in 2016.
- What's going on right now? IDC data shows that two-thirds of CEOs plan to focus on digital transformation strategies for 2016 and that CIOs will be major players in leading every department through this shift. In terms of capabilities, only 25 percent of CIOs report feeling confident in how they are driving new digital revenue streams. When it comes to availability, CIOs are focused on legacy IT services and how to maintain them with limited budgets, while also increasing digital transformation within the business. (IDC)
- Gartner predicts that by 2020, more than 75 percent of organizations will deploy advanced analytics as part of a platform or analytics application to improve business decision-making. Companies are accelerating the shift in focus of their investments from measurement to analysis, forecasting and optimization. Deployment of advanced analytics technologies will become increasingly critical.
- Worldwide spending on enterprise application software will grow 7.5 percent to reach $149.9 billion in 2015, increasing to more than $201 billion in 2019, according to Gartner. Analysts said that long-term growth in spending will be driven primarily by modernization, functional expansion and digital transformation projects. (Gartner)
- Data from a Gartner 2016 CIO Survey shows that the average CIO expects digital revenue to grow from 16 percent to 37 percent of total revenue in the next five years. Similarly, public-sector CIOs are predicting a rise from 42 percent to 77 percent in digital processes. While the meaning of digital revenue and processes is open to interpretation, it is clear that digital business is a reality now, and it is expected to be a significant aspect of achieving competitive advantage and differentiation using information and technology.
- In a late 2015 Gartner survey, 45 percent of respondents with knowledge of their organization's software strategy indicated that one of the current top five IT project priorities is 'application modernization of installed on-premises core enterprise applications' and a further 41 percent indicated that 'extending capabilities of core enterprise applications' is a top five priority.
- According to Forrester'sThe Digital Business Transformation Playbook, digital technologies empower customers like never before, transforming their relationship with brands and products. The speed with which consumers embrace these new touchpoints is only getting faster, blindsiding traditional firms that struggle to adapt. To compete in the face of digital disruption, today's enterprises must transform - enhancing the digital customer experience while also driving agility and efficiency through digital operational excellence.
- Digital transformation must be approached with a multidimensional perspective looking at not only content, but how content and process interconnect. Smart business processes are producing good results managing input across multiple channels and routing it automatically, along with the much sought after automated classification of captured content into records archives and automated business processes. Digital transformation is critical for success in the digital business age. (AIIM: A Holistic Approach to Digital Transformation)
- By 2018, more than 3 million workers globally will be supervised by a robo-boss. Robo-bosses will increasingly make decisions that previously could only have been made by human managers. Supervisory duties - today increasingly shifting into monitoring worker accomplishment through measurements of performance that are directly tied to output and customer evaluation - will be consumed more effectively and swiftly by smart machine managers tuned to learn based on staffing decisions and management incentives. (Gartner)
The Digital Business Age
Digitalization has become a core competency, and, as Gartner asserts, enterprises must fully grasp and exploit the effects of platforms on every aspect of their businesses — or risk losing great talent and valuable customers.
Today, digital transformation must be approached by competitive enterprises with a critical perspective. According to IDC, the greatest gains in a digital transformation are derived from a holistic approach that addresses end-to-end processes and their related information assets. Organizations must look to automate manual processes, and increase collaborative capabilities beginning with a strategy for maximizing use multi-channel inputs, turning content from a static element into real time content that is available to and useable by all who need it, and connecting processes and transactions in ways that streamline and improve operating efficiencies.