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A news roundup of industry analysts’ predictions.
By Straight Talk Editors
As could be predicted, industry analyst firms Gartner, IDC, and Forrester have issued their technology and IT predictions for 2016, promising more volatility, disruption, and bumpy rides over the next few years.
Gartner predicts the emergence of the “algorithmic business” and the “programmable economy,” urging CIOs to “focus on the power, scale, and dynamics of the digital business based on connections to people and things, interconnections and relationships, and on the value of algorithms.”
IDC predicts the emergence of the “DX (digital transformation) economy,” estimating that enterprises’ commitment to digital transformation on a massive scale will drive more than half of enterprise IT spending within the next 24 months, rising to 60% by 2020.
Forrester charts a roadmap for companies responding to digitally savvy and empowered customers, warning that “we are approaching a fork in the road where companies can either make the hard changes to dramatically improve their chances to win in the market or preserve old models and defer transforming their operations at the risk of failure.”
Here are is a condensed composite of Gartner’s, IDC’s, and Forrester’s predictions:
Digital transformation will define business success for the balance of this decade
Only 27% of today’s businesses have a coherent digital strategy that sets out how the firm will create customer value as a digital business (Forester). However, 125,000 large organizations are launching digital business initiatives now and CEOs expect their digital revenue to increase by more than 80% by 2020 (Gartner). By 2020, the percentage of enterprises creating advanced digital transformation initiatives will more than double from today’s 22% to almost 50% (IDC).
In 2016, digital transformation efforts will move beyond customer-facing veneers and deeply into the business operations that drive growth. B2B industries will start to close the digital gap to their B2C peers as they too are confronting rapidly rising customer expectations. Companies that become experts in digital will further differentiate themselves from those that dabble in a set of digital services that merely decorate their traditional business (Forrester).