To be successful, IT and business leaders need to make the transition from implementing digital transformation to running a digital-first organization. Enterprise leaders who are prepared for the storms ahead can ride out periods of economic and social disruption by transforming their organizations into resilient digital businesses.
IDC’s FutureScape 2023 research which focuses on the external drivers altering the global business ecosystem over the next 2 years, has revealed its top 10 worldwide IT industry predictions. Here are they:
- More as-a-Service processes and smart products
IDC expects the number of tech-centric organizations in the G500 to double during the next five years. The increased emphasis on adding as-a-Service (aaS) elements like enhanced customer experience and intelligent process automation for digitally enhancing physical and virtual products will dominate future IT budgets.
- as-a-Service business models will fuel the growth of Tech-by-Wire
Over the next few years, one of the most visible changes in the IT industry will be the expanded delivery of technology via tech-by-wire. This shift will primarily be driven by cost savings, and other benefits such as improved digital resilience, faster access to innovative technologies, and simpler systems that are less burdened by technical debt.
- Critical skills shortage will limit the benefits of IT Investments
Many companies will have a hard time finding employees with the right skills. This will put more pressure on the employees who are left to meet the company’s expanding digital business requirements. Both businesses and IT providers will have to invest in developing the right skills in employees, including technical abilities, collaboration abilities, and critical thinking skills.
- Staff, budgets, and operating processes will be impacted by digital sovereignty
Cloud and as-a-Service offerings will be important in developing digital sovereignty. This means that countries will be more in control of their data and the services used to manage it. As a result, some IaaS/PaaS workloads will move to local cloud providers, while global cloud providers will offer sovereign offerings in partnership with local providers.
- Increased aaS spending will bring greater scrutiny
Most businesses are worried about cost. However, the most important benefit of using aaS is significant and sustained reductions in operational burdens and much faster access to innovation. To save money, businesses need to focus on which services are delivering the promised values.
- Service providers will provide better expertise
As more companies offer standardized aaS offerings that include AI and automation, security and data providers will be able to spread the cost and knowledge of their high-value experts more easily among more customers. This will make it easier for companies to consume these services in an affordable way.
- Technology supply chains will be a major concern
IDC expects that by 2025, launches of a number of highly visible digital products will be delayed due to global or regional silicon and code supply chain issues. To avoid these delays, decision-makers will push their cloud providers for quantifiable outcomes, invest in supply chain intelligence, and adopt multi-sourcing strategies.
- Transition to control plane-based systems doesn’t seem easy
In the next several years, IT teams will face the challenge of navigating the maturation of control plane design and consolidating basic control systems onto a few standard platforms. IDC expects over 50% of enterprises attempting to use tech-by-wire offerings will find it difficult to proliferate siloed control systems.
- Trust in automation will be critical for success
In order for automation to be successful, businesses will have to focus on the dynamics of human/organizational behavior. As automation is going to play a major role, businesses will have to make sure that the trust between people and the organization is strong.
- Machine vision will dramatically improve experiences in physical locations
Businesses that are early adopters of using machine vision to improve work, play, and health spaces will be more successful in the long run. They will be able to attract and keep customers by providing a better experience. They will also be able to make better decisions using data analytics.
As we continue to face an uncertain future, it’s more important than ever for IT and business leaders to become a digital-first organization. By taking these IT industry predictions into consideration, IT leaders can set their enterprise up for success in the years to come.