Direct Digital Transformation Investment Spending To Hit $7.4 Trn by 2023
The cost of directly applying digital methods in services delivery both in private and public establishments, popularly known as direct digital transformation is expected to reach $7.4 Trillion by 2023. International Data Corporation, IDC, carried out a digital transformation market research and has just released a report which said that digital transformation spending in the period between 2020 and 2023 is expected to grow to more than 50 percent of all ICT investment from its current 36 percent position. It also said the projection will represent the largest growth in data intelligence and analytics.
Digital Transformation, DX, is the use of new, fast and frequently changing digital technology to solve problems often utilising cloud computing, reducing reliance on user owned hardware but increasing reliance on subscription based cloud services IDC, said that in this year’s Digital Transformation predictions, the critical business drivers will accelerate initiatives and investments, as companies seek to effectively navigate business challenges, compete at hyper scale, and meet rising customer expectations.
IDC analysts Bob Parker and Shawn Fitzgerald listed the 10 industry predictions that will impact digital transformation efforts of chief information officers, CIOs and information technology, IT, professionals over the next one to five years and offered guidance for managing the implications. The analysts further predicted that by the same period Digital key performance indicators, KPIs will mature, implying that by 2020, 60% of companies will have aligned digital KPIs to direct business values.
These include, measures of revenue and profitability, eliminating today’s measurement crisis where DX KPIs are not directly aligned; Platforms Modernisation, driven both by escalating cyber threats and new functionalities. In fact, the report said 65 percent of organizations will aggressively modernize legacy systems with extensive new technology platform investments through 2023 and Invest for Insight: they say by 2023, enterprises seeking to monetize benefits of new intelligence technologies will invest over $265 Billion worldwide, making DX business decision analytics and AI a nexus for digital innovation.