With digital transformation initiatives flooding the enterprise, it's no surprise that by 2023, more than half of all worldwide GDP is predicted to be driven by products and services from digitally transformed industries, an IDC report found. This amount of digital integration indicates that the global economy will reach digital supremacy in the next couple years. IDC made predictions for 2020 and beyond during a live webcast on Tuesday. The findings were published in IDC's latest FutureScape report. IDC has documented the rise of the digital economy and digital transformations for the last five years.
I've been in the tech industry for a while, so I'm used to buzz words and phrases du jour. The one that has driven me the craziest, though, is "digital transformation" (aka, digitization, digitalization, IT transformation, IT modernization, DX – ugh). I can feel my eyes automatically roll back every time I see a new press release on the topic. Amorphous and annoying as it can be, it's taking hold and everyone's paying attention. The key word there is amorphous.
Digital transformation is the profound transformation of business and organizational activities, processes, competencies and models to fully leverage the changes and opportunities of a mix of digital technologies and their accelerating impact across society in a strategic and prioritized way, with present and future shifts in mind. While digital transformation is predominantly used in a business context, it also impacts other organizations such as governments, public sector agencies and organizations which are involved in tackling societal challenges such as pollution and aging populations by leveraging one or more of these existing and emerging technologies. In some countries, such as Japan, digital transformation even aims to impact all aspects of life with the country's Society 5.0 initiative, which goes far beyond the limited Industry 4.0 vision in other countries. In the scope of this digital transformation overview, we mainly look at the business dimension.