IDC FutureScape: Worldwide Digital Transformation (DX)

2020 Predictions
Bob Parker, SVP
Shawn Fitzgerald, Research Director
October 31, 2019
© IDC
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Bob Parker
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Shawn Fitzgerald
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© IDC 2
IDC FutureScape: Worldwide Digital Transformation Figure 1
Higher 1 Future of Culture: By 2024, leaders in 50% of G2000 organizations will have mastered
"future of culture" traits such as empathy, empowerment, innovation and customer-and
data-centricity to achieve leadership at scale.
Future of
Digital 6 2 Digital Co-Innovation: By 2022, empathy among brands and for customers, will drive
Digitally Culture ecosystem collaboration and co-innovation among partners and competitors that will drive
Investments
Enhanced 20% collective growth in customer lifetime value.
1
COST/COMPLEXITY TO ADDRESS

Workers Invest for 3 AI at Scale: By 2024, with proactive, hyperspeed operational changes and market reactions,
10 artificial intelligence (AI)-powered enterprises will respond to customers, competitors,
Insight 7 regulators, and partners 50% faster than their peers.
5
4 Digital Offerings: By 2023, 50% of organizations will neglect investing in market-driven
Ecosystem operations and will lose market share to existing competitors that made the investments, as
Platforms Force well as to new digital market entries.
Digital KPIs Modernize
9
Multipliers 5 Digitally Enhanced Workers: By 2021, new future of work (FoW) practices will expand the
Mature functionality and effectiveness of the digital workforce by 35%, fueling an acceleration of
3 productivity and innovation at practicing organizations.

8 2 6 Digital Investments: By 2023, DX spending will grow to over 50% of all ICT investment
from 36% today, with the largest growth in data intelligence and analytics as companies
AI at Scale
create information-based competitive advantages.
Digital Co-
Innovation 4 7 Ecosystem Force Multipliers: By 2025, 80% of digital leaders will devise and differentiate
end-customer value measures from their platform ecosystem participation, including an
estimate of the ecosystem multiplier effects.
Digital
Offerings 8 Digital KPIs Mature: By 2020, 60% of companies will have aligned digital KPIs to direct
business value measures of revenue and profitability, eliminating today's measurement
crisis where DX KPIs are not directly aligned.
Lower

2020 2021 2022 2023 2024 2025 9 Platforms Modernize: Driven both by escalating cyberthreats and needed new
functionality, 65% of organizations will aggressively modernize legacy systems with
PREDICTION TIMING extensive new technology platform investments through 2023.

Source: IDC, 2019 10 Invest for Insight: By 2023, enterprises seeking to monetize benefits of new intelligence
technologies will invest over $265 billion worldwide, making DX business decision analytics
and AI a nexus for digital innovation.

© IDC 3
Drivers for Worldwide Digital Transformation
 The age of innovation: Driving the future enterprise
 Accelerated disruption: Navigating business challenges as volatility intensifies
 The platform economy: Competing at hyperscale
 Intelligence everywhere: AI's opportunity and implications
 Rising customer expectations: More convenience, customization, and control
 The future of work: Agile, augmented, borderless, and reconfigurable
 Economies of intelligence: AI, human, and organizational "learning" fuels
asymmetrical advantage

For additional details on the above Drivers, please refer to report IDC FutureScape:
Worldwide Digital Transformation (DX) 2020 Predictions,
Doc # US45569118

© IDC 4
IDC FutureScape: Digital Transformation
Predictions Highlights
1. Future of Culture
2. Digital Co-Innovation
3. AI at scale
4. Digital offerings
5. Digitally enhanced workers

6. Digital investments
7. Ecosystem force multipliers
8. Digital KPIs mature

9. Platforms modernize
10. Invest for insight
For additional details on the above Predictions, please refer to report IDC FutureScape: Worldwide Digital
Transformation 2020 Predictions,
Doc # US45569118 © IDC 5
Prediction 6 – Digital Investments: By 2023, DX spending will grow to over 50% of all ICT
investment from 36% today, with the largest growth in data intelligence and analytics as companies
create information-based competitive advantages.
Higher
 IT Investment strategies mirror
and match business' digital Digital 6 Future of
Digitally Culture
strategic imperatives Investments
Enhanced
IT Impact 1

COST/COMPLEXITY TO ADDRESS
 Data management at scale is the Workers Invest for
prerequisite for scaled analytics 10
Insight 7
and AI for business benefit. 5
Ecosystem
Platforms Force
Digital KPIs Modernize
9
 DX investment planning: multi- Multipliers
Mature
year, multi-horizon, and 3
integrated. 8 2
AI at Scale
Guidance  Assess existing investments and Digital Co-
technology life cycles vs. digital Innovation 4
strategy for investment priorities. Digital
Offerings
 Clear business need alignment vs.
ROI criteria, levels, and timing. Lower

2020 2021 2022 2023 2024 2025

PREDICTION TIMING
Source: IDC, 2019
© IDC 11
Prediction 7 – Ecosystem Force Multipliers: By 2025, 80% of digital leaders will devise and
differentiate end-customer value measures from their platform ecosystem participation, including
an estimate of the ecosystem multiplier effects.
Higher
 Digital platform is a core strategic
imperative to ecosystem Digital 6 Future of
Digitally Culture
participation. Investments
Enhanced
IT Impact 1

COST/COMPLEXITY TO ADDRESS
 Coordinated planning; needed to Workers Invest for
establish and align platform 10
Insight 7
capabilities and ecosystem value. 5
Ecosystem
Platforms Force
Digital KPIs Modernize
9
 Ecosystem information is value- Multipliers
Mature
added for all participants. 3
 Total ecosystem value = 8 2
AI at Scale
Guidance organization digital value + Digital Co-
connections + data flows, etc. Innovation 4
 Relevance is a function of Digital
Offerings
information flow strength and
number of connections. Lower

2020 2021 2022 2023 2024 2025

PREDICTION TIMING
Source: IDC, 2019
© IDC 12
Prediction 9 – Platforms Modernize: Driven both by escalating cyberthreats and needed new
functionality, 65% of organizations will aggressively modernize legacy systems with extensive new
technology platform investments through 2023.

 Lines between IT, digital, security, Higher

and business blur; ensure Future of

Digital 6
budgets, stakeholders, and tech Digitally
Investments Culture
architectures are orchestrated. Enhanced
IT Impact 1

COST/COMPLEXITY TO ADDRESS
Workers Invest for
 Proposals for modernization will 10
significantly change cost
Insight 7
5
structures. Ecosystem
Platforms Force
Digital KPIs Modernize
9
 Deliver use case journey across Multipliers
Mature
digital road map; innovation by 3
horizons. 8 2
AI at Scale
Guidance  DevOps needs to become Digital Co-
DevSecOps; CISO and CIO work Innovation 4
with digital leaders Digital
Offerings
 Clear deadlines for modernizing.
Lower

2020 2021 2022 2023 2024 2025

PREDICTION TIMING
Source: IDC, 2019
© IDC 14
Prediction 10 – Invest for Insight: By 2023, enterprises seeking to monetize benefits of new
intelligence technologies will invest over $265 billion worldwide, making DX business decision
analytics and AI a nexus for digital innovation.
 Data resources built to fuel big Higher

data analytics and AI, maximize

Future of
business case value. Digital 6
Digitally Culture
Investments
 Integrate various data sources for Enhanced
IT Impact 1

COST/COMPLEXITY TO ADDRESS
Workers
unified view of the business. Invest for
10
Insight 7
 Sophisticated knowledge graphs 5
will be needed. Ecosystem
Platforms Force
Digital KPIs Modernize
9
 Invest in a digital platform that Multipliers
Mature
supports a semantic data graph 3
and brings data together. 8 2
AI at Scale
Guidance  Develop a true business value case Digital Co-
for investments, insights beyond Innovation 4
traditional metrics and KPIs. Digital
Offerings
 Rethink the role of KPIs in your
management systems. Lower

2020 2021 2022 2023 2024 2025

PREDICTION TIMING
Source: IDC, 2019
© IDC 15
 Q&A
1 Future of Culture: By 2024, leaders in 50% of G2000 organizations will have mastered
"future of culture" traits such as empathy, empowerment, innovation and customer-and
data-centricity to achieve leadership at scale. Higher
Today’s Speakers
2 Digital Co-Innovation: By 2022, empathy among brands and for customers, will drive
Future of
ecosystem collaboration and co-innovation among partners and competitors that will drive Digital 6
20% collective growth in customer lifetime value. Digitally Culture
Investments
3 AI at Scale: By 2024, with proactive, hyperspeed operational changes and market reactions, Enhanced
1

COST/COMPLEXITY TO ADDRESS
artificial intelligence (AI)-powered enterprises will respond to customers, competitors,
regulators, and partners 50% faster than their peers.
Workers Invest for
10
4 Insight 7
Digital Offerings: By 2023, 50% of organizations will neglect investing in market-driven
operations and will lose market share to existing competitors that made the investments, as 5
Bob Parker well as to new digital market entries. Ecosystem
Platforms Force
SVP 5 Digitally Enhanced Workers: By 2021, new future of work (FoW) practices will expand the
9
functionality and effectiveness of the digital workforce by 35%, fueling an acceleration of Digital KPIs Modernize Multipliers
productivity and innovation at practicing organizations.
Mature
6 Digital Investments: By 2023, DX spending will grow to over 50% of all ICT investment 3
from 36% today, with the largest growth in data intelligence and analytics as companies
create information-based competitive advantages. 8 2
AI at Scale
7 Ecosystem Force Multipliers: By 2025, 80% of digital leaders will devise and differentiate Digital Co-
end-customer value measures from their platform ecosystem participation, including an
estimate of the ecosystem multiplier effects. Innovation 4
8 Digital KPIs Mature: By 2020, 60% of companies will have aligned digital KPIs to direct Digital
Shawn Fitzgerald business value measures of revenue and profitability, eliminating today's measurement
crisis where DX KPIs are not directly aligned. Offerings
Research Director
9 Platforms Modernize: Driven both by escalating cyberthreats and needed new Lower
functionality, 65% of organizations will aggressively modernize legacy systems with
extensive new technology platform investments through 2023. 2020 2021 2022 2023 2024 2025

10 Invest for Insight: By 2023, enterprises seeking to monetize benefits of new intelligence PREDICTION TIMING
technologies will invest over $265 billion worldwide, making DX business decision analytics
and AI a nexus for digital innovation. Source: IDC, 2019

© IDC 16
Meet the Analysts Click here to learn more about all of IDC’s
BOB PARKER SHAWN FITZGERALD
Senior Vice President Research Director
FutureScape 2020 Predictions.
USA USA
PHIL CARTER SANDRA NG
Chief Analyst, Europe Group Vice President
Germany Singapore
LESLIE HAND SERGE FINDLING
Research Vice President Research Vice President
USA USA
KEVIN PROUTY DANIEL ZOE-JIMENEZ
Group Vice President Associate Vice President
USA Singapore
EILEEN SMITH CRAIG SIMPSON
Program Vice President Research Manager
USA Czech Republic
YUKIHARU YORIFUJI LIANFENG WU
Research Vice President Chief Analyst, China
Japan China
MEGHA KUMAR JORGE GOMEZ
Research Director Director
Canada Mexico

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