The persistence of the term "Digital Transformation" is not the result of chance or a fad that has made its fortune. It is an expression that has been a permanent trend in professional environments for at least four years, and it is no wonder if we take into account the expected investments in this area until 2021: up to 5.5 trillion dollars. And no, this is not a mistranslation: 5.5 trillion US dollars, or 5.5 of our billions. A five, followed by another five, followed by 11 zeros.
At least, that is the figure provided by one of the world's leading technology consulting firms, IDC, based on data from regular research involving more than 800 companies from 16 business sectors. As a result of this work, the firm has recently presented its proposed trends in Digital Transformation, which should be taken note of. True to the trajectory of this blog, BRAINTRUST brings this research to the Spanish-speaking market, recommending those who want to delve deeper to consult the original source.
The 10 trends identified, and set out as "predictions", are as follows:
1. By 2020, 11 out of 20 companies (55%) can be considered "digitally determined", a concept that implies being a leader in Digital Transformation; that is, having aligned the necessary elements in aspects such as human resources, processes and technologies. These companies will be ready to transform markets and "reimagine" the future through new business models, and "digitally ready" products and services.
2. Two years later, the most senior executive position for digital, the Chief Digital Officer (CDO), will begin to decline. This may be striking, but it is less so when you consider that by then "digital" will be the new normal, with the majority of companies completely transformed. Moreover, the prediction is that 6 out of 10 (60%) CEOs or Chief Executive Officers (CEOs) will have spent part of their careers leading digital initiatives.
3. We have been talking a lot lately about the Net Promoter Score (NPS). And we are pleased to see that it is an increasingly popular tool, as it combines three of the disciplines in which we place most emphasis: Customer Experience and Competitive Intelligence, as well as Digital Transformation itself. In just a few years, 6 out of 10 consumer-facing companies (B2C) will have embraced NPS because of the growing and paramount importance of consumer recommendation. In fact, it will become the most widely used success metric globally by the end of 2020.
4. We are not moving from that year, because by 2020 it is expected that 4 out of 5 companies will have developed their own capabilities for monetisation derived from data management, which will entail emphasising corporate functions, strengthening competitiveness and creating new sources of profit.
5. We are still riding on the back of 2020, by which time 3 out of 10 G2000 companies are expected to have implemented "advancedtwin siblings " of their operational processes, which will be the prelude to the slimming down of organisations even among "knowledge workers", part of the workforce that is expected to be cut by a third (33%).
6. Speaking of workers, by 2023 at least 7 out of 20 (35%) will be working with robots or other forms of Artificial Intelligence. What does this mean for business management? It means that business managers need to undertake some reengineering in operational processes as we have already seen, but also in behavioural metrics and recruitment strategies.
7. Good news now for those thirsty for capital to get their strategies rolling. Again in 2020, and again from the hands of the G2000 companies, IDC is betting that 3 out of 10 companies will spend at least the equivalent of 10% of their revenues on digital in that year. Note: of revenues, not profits.
8. Is there anyone who hasn't heard of blockchain? Well, watch out for two predictions that are as powerful as they are revolutionary. Firstly, blockchain will be introduced as a technology to validate companies' value chains, allowing them to evolve from digital platforms to "omni-experiential" ecosystems. To put it in numbers, which is sometimes better understood: a reduction in transaction costs of around 35%. This will be in 2021.
9. And also by 2021, the second blockchain prediction, closely linked to the first but more far-reaching. 30% of manufacturers and retailers worldwide will have developed digital trust systems that will enable collaborative supply chains, and allow consumers to access their product and service histories.
10. Finally, the introduction of new, purely digital KPIs will be undisputed: 19 out of 20 companies will have adopted them. They will be core indicators on product and service innovation rates, data capitalisation and employee experience. Without these KPIs, it will become almost impossible to navigate the digital economy.
Photo by Evan Kirby on Unsplash