The continued popularity of the term "digital transformation" is not the result of chance or a passing fad. It has been a constant trend in professional circles for at least four years, which is hardly surprising when we consider the investments planned in this area until 2021: up to $5.5 trillion. And no, that's not a translation error: $5.5 trillion, or 5.5 of our billion. A five, followed by another five, and then 11 zeros.
At least, that is the figure given by one of the world's leading technology consulting firms, IDC, based on data from periodic surveys involving more than 800 companies from 16 business sectors. As a result of this work, the firm has recently presented its proposal for trends in Digital Transformation, which is worth taking note of. True to the trajectory of this blog, BRAINTRUST brings this research to the Spanish-speaking market, recommending that those who wish to delve deeper consult the original source.
The 10 trends identified and presented as "predictions" are as follows:
1. In 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 areas such as human resources, processes, and technologies. These companies will be prepared to transform markets and "reimagine" the future through new business models and "digitally ready" products and services.
2. Two years later, the highest-level executive position for digital, the Chief Digital Officer (CDO), will begin to decline. This may seem surprising, but it is not so surprising when we consider that by then, "digital" will be the new normal, with the majority of companies completely transformed. Furthermore, the prediction is that 6 out of 10( 60%) 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 valued tool, as it combines three of the disciplines we are most passionate about: customer experience and competitive intelligence, as well as digital transformation itself. In just a few years, six out of ten consumer-oriented companies (B2C) will have embraced NPS due to the growing and paramount importance of consumer recommendations. In fact, it will become the most widely used metric for measuring success worldwide by the end of 2020.
4. We are not moving on from that year, because by 2020, it is predicted that four out of five companies will have developed their own capabilities for monetization derived from data management, which will lead to an emphasis on corporate functions, strengthen competitiveness, and create new sources of profit.
5. We continue to ride on the back of 2020, by which date it is expected that 3 out of 10 companies in the so-called G2000 will have implemented "advancedtwin brothers " of their operational processes, which will be the prelude to the downsizing of organizations, even among "knowledge workers," part of the workforce for which a reduction of one-third (33%) is expected.
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 leaders must undertake a reorientation of operational processes, as we have already seen, but also of behavioral metrics and recruitment strategies.
7. Good news now for those most eager for capital to get their strategies rolling. Again in 2020, and again from the G2000 companies, IDC is betting that 3 out of 10 companies will allocate at least the equivalent of 10% of their revenue to digital in their budget that year. Note: revenue, not profits.
8. Is there anyone who hasn't heard of blockchain? Well, watch out, because two predictions are coming that are as powerful as they are revolutionary. First, blockchain will be introduced as a technology to validate companies' value chains, allowing them to evolve from digital platforms to "omni-experiential" ecosystems. Put into numbers, which are sometimes easier to understand: a reduction in transaction costs of around 35%. This will happen in 2021.
9. And also in 2021, the second blockchain prediction, closely linked to the previous one but with a longer-term outlook. Thirty percent of manufacturers and retailers worldwide will have developed digital trust systems that enable collaborative supply chains and allow consumers to access their product and service histories.
10. Finally, the introduction of new, purely digital key performance indicators (KPIs) will be indisputable: 19 out of 20 companies will have adopted them. These indicators will focus on product and service innovation rates, data capitalization, and employee experience. Without these KPIs, it will be almost impossible to navigate the digital economy.
Photo byEvan KirbyonUnsplash
