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IDC forecasts 2016 as 'the banner year for digital transformation'

IDC forecasts 2016 as 'the banner year for digital transformation'

​Notes the top innovation accelerators and their implications for IT buyers and suppliers

While 2016 is shaping up to be the banner year for digital transformation (DX) to take root in many Asia/Pacific organisations, IDC expects innovation accelerators like IoT, cognitive computing, robotics and 3D printing to accelerate this transformation in upcoming years.

IDC says its latest services survey finds majority of enterprises in the Asia Pacific region excluding Japan (APEJ) claim to have DX projects in some form or another.

DX, it adds, is becoming a competitive requirement and the source of a massive wave of new investments in services to support changes to business operations and customer experiences.

"Getting on board the DX train is going to be fraught with challenges, starting with the ability to define DX. Most early stage projects involve experience transformation but little attention is being paid on the other dimensions like information governance and worksource, which often leads to disillusionment on the benefits of DX", says Linus Lai, research director with IDC’s Asia/Pacific Services Research Group, in a statement.

"As part of enabling enterprises on its DX journey, service providers need to emphasise their ability to bring a full suite of services capabilities that includes integration of cloud, cognitive, mobile and analytics delivered ’as a service’, states Lai, on the findings from the latest IDC IT Services Predictions for 2016 and beyond for the Asia Pacific region (excluding Japan).

IDC reports progressive adoption of 3rd Platform technologies in the region is not only driving demand for related services, but is also fundamentally changing the way they interact with their broader ecosystem.

'Cloud first'

"This year's services predictions highlights 'cloud-first', suggesting 33 per cent of Asia/Pacific Enterprises will pursue a 'cloud first' strategy, says Cathy Huang, research manager, Services and Cloud Research Group.

“The switch to cloud-first/cloud-only points to two opportunities in the APEJ services market. Enterprises are looking for differentiated capabilities or cost competitiveness based on cloud-based offerings. In addition, it also means sourcing strategies in the past may be incompatible as organisations leverage a cloud-first strategy”, notes Huang.

This year’s predictions likewise delve into the impact of 3rd Platform technologies and innovation accelerators such as IoT and Next-Gen Security.

As a result, more focus on governance between the IT organisation and the lines of business (LOB) is needed to ensure risk, supplier choices, fail-over, innovation, and agile development is understood between both parties, and the value of integration, management and security is brought to the front.

The rest of IDC predictions and their implications are:

Cloud First: 33 per cent of Asia/Pacific Enterprises Will Pursue a “Cloud first” strategy and the share of overall IT budgets dedicated to cloud services will increase to 26 per cent by 2016.

XaaS substitutes for managed services: By 2016, up to 55 per cent of traditional outsourcing managed services will have a cloud delivery model.

DX: By 2016, 65 per cent of APeJ enterprise strategies will include a significant “digital transformation” component.

Line of business/IT partners: By 2018, 80 per cent of major IT decisions will involve a partnership between the IT organisation and LOBs.

Software-defined IT infrastructure: By 2016, 30 per cent of enterprises will implement software-defined infra in their datacentre.

Platforms from Digital Disruptors: By 2018, 20 per cent of all enterprises will be leveraging digital platforms from such firms as WeChat, Uber, GE/Predix and PTC to achieve the DX goals.

Ecosystems of Engagement: In 2020, in excess of 75 per cent of Ideas, Talent, and Innovation will be sourced through ecosystems of engagement.

Next-gen Security Management: By the end of 2017, 55 per cent of enterprises will rely on third-party management of their security infrastructure.

Half of the most complex surgeries will be simulated or robot -assisted by 2020.

Crawford del Prete, IDC

Innovation accelerators till 2020

Crawford del Prete, IDC chief research officer, meanwhile, lists the innovation accelerators to prepare for in the next five years:

  • Installed base of IoT devices will exceed that of smartphones and tablets – combined - by 2020.
  • At least half of developers will include some cognitive functionality in their applications by 2020.
  • Password memorisation requirements for Next Gen security will be reduced by 50 per cent by 2020.
  • 3D Printing will be primarily used for prototyping, manufacturing parts, and packaging by 2020.
  • Half of the most complex surgeries will be simulated or robot -assisted by 2020.
  • Key verticals for augmented/virtual reality will include healthcare, military, and manufacturing.

Send news tips and comments to divina_paredes@idg.co.nz

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