The world is increasingly digital. Mobility, cloud, virtualization, automation, the Internet of Things and cognitive computing can all be leveraged to create competitive advantages for the organizations that embrace them. Digital transformation enables modern enterprises to respond efficiently to changing business demands.
The year 2020 will go down as the period when organizations responded to new risks, pivoted to new business models and accelerated their digital transformation programs in an effort to weather a lethal pandemic. In the 2020 COVID-19 epoch, going digital was no longer a business luxury but a matter of survival. Digital transformation was crucial to enabling remote working, transitioning to collaboration workflows, and to realigning operations from supply chain management through customer experiences. CIO and IT leaders no longer have to sell the business on how critical technology is to all aspects of operations. In 2020, the question was how fast could IT partner with business leaders to deliver collaboration, workflow and analytics capabilities in the cloud.
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.
Prediction 1: Accelerated DX Investments Create Economic Gravity. The economy remains on course to its digital destiny with 65% of global GDP digitalized by 2022 and will drive over USD 6.8 trillion of direct DX investments from 2020 to 2023. By 2023, 75% of organizations will have comprehensive digital transformation (DX) implementation roadmaps, up from 27% today, resulting in true transformation across all facets of business and society. By 2023, 60% of leaders in G2000 organizations will have shifted their management orientation from processes to outcomes, establishing more agile, innovative, and empathetic operating models. By 2025, driven by volatile global conditions, 75% of business leaders will leverage digital platforms and ecosystem capabilities to adapt their value chains to new markets, industries, and ecosystems.