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IDC: Top 10 trends for Australia’s digital transformation

By Ben Moore
Mon 18 Feb 2019
FYI, this story is more than a year old

IDC Australia/New Zealand today unveiled ‘IDC FutureScape: Worldwide Digital Transformation 2019 Predictions - Australia Implications’. 

In this year's DX (Digital Transformation) predictions, IDC identifies the traits of DX Leaders and DX Laggards. 

Leaders (the digitally determined) are organisations that have aligned the necessary elements of people, process, and technology for success. 

In contrast, laggards (the digitally distressed) have not developed the enterprise strategy necessary to align the organisation effectively for transformation to date. 

IDC's market-leading analytical understanding and insights are the result of extensive market research and survey data from over 3,000 companies worldwide.

"With 89% of Australian CEOs under pressure to execute a successful DX strategy, this topic continues to be a central area of business leadership thinking," says IDC A/NZ research director Louise Francis. 

"IDC's 2019 DX predictions represent our perspective on the major transformation trends we expect to see over the next five years."

Trends at a glance

  1. By 2020, at least 50% of Australian organisations will be digitally determined, transforming markets and reimagining the future through new business models and digitally enabled products and services.  
  2. By 2022, the CDO title will be in decline, as digital will have become fully embedded, but more than 40% of CEOs will have spent part of their careers leading digital initiatives.  
  3. The paramount importance of customer advocacy will result in 55% of B2C brands embracing Net Promoter Score (NPS) as their leading success metric by the end of 2020.  
  4. By 2020, 70% of ASX200 enterprises will create data management or monetisation capabilities, thus enhancing enterprise functions, strengthening competitiveness, and creating new sources of revenue.  
  5. By 2020, 25% of ASX200 companies will have implemented advanced digital twins of their operational processes which will enable flatter organisations and one third fewer knowledge workers.  
  6. By 2023, 35% of workers will start working with bots or other forms of AI, requiring company leaders to redesign operational processes, performance metrics, and recruitment strategies.  
  7. By 2020, 35% of ASX200 companies will have allocated capital budget equal to at least 5% of revenue to fuel their digital strategies.  
  8. By 2021, prominent in-industry value chains, enabled by blockchains, will have extended their digital platforms to their entire omni-experience ecosystems, thus reducing transaction costs by 35%.  
  9. By 2021, 25% of large manufacturers and retailers will have built digital trust through blockchain services that enable collaborative supply chains and allow consumers to access product histories.  
  10. By 2023, 95% of entities will have incorporated new digital KPI sets — focusing on product/service innovation rates, data capitalisation, and employee experience — to navigate the digital economy.
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