IDC Unveils its Top IT Industry Predictions for 2017

IDC PRESS RELEASE

IDC Unveils its Top New Zealand IT Industry Predictions for 2017 and Beyond

Predicts half of NZX companies will see the majority of their business depend on ability to create digitally-enhanced products, services and experiences by 2020

Auckland, February 3, 2017 – Today IDC New Zealand announced its top technology predictions for New Zealand. The underlying theme for 2017 is that digital transformation will attain macroeconomic scale over the next three to four years, changing the way enterprises operate and reshaping the global economy. IDC calls this the dawn of the “DX Economy”.

“Digital Transformation(DX) has been a critical topic for business over the last few years and IDC is now predicting a step change as DX reaches macroeconomic levels. By 2020 a DX economy will emerge and it will become the core of what New Zealand industries focus on”, says Louise Francis, Senior Research Manager, IDC New Zealand. “It is no longer enough to make piecemeal investments in DX. To succeed, every enterprise that wants to grow must become a “digital native”. From the board level through to the C-Suite, organisations must be prepared to think and act digital when the DX economy emerges in 2017.”

In summary, the top IT Industry predictions that IDC expects will unfold in 2017 and beyond with the biggest impact to New Zealand organisations are:

#1: DX Economy: By 2020, half of the NZX organisations will see the majority of their business depend on their ability to create digitally enhanced products, services, and experiences.

#2: 3rd Platform Default: By 2019, 3rd Platform[1] technologies and services will drive over 75% of NZ IT spending, growing at 2X the rate of the market.

#3: Cloud 2.0: By 2020, 50% of all NZ enterprise IT infrastructure and software spending will be for cloud-based offerings. The cloud will morph to become distributed, trusted, intelligent, industry focused, and channel mediated.

#4: AI Everywhere: By 2020, 30% of all NZ digital transformation initiatives and 100% of all effective internet of things (IoT) efforts will be supported by cognitive/artificial intelligence (AI) capabilities.

#5: Immersive Interfaces: In 2017, 30% of consumer-facing NZX companies will experiment with augmented reality/virtual reality (AR/VR) as part of their marketing efforts.

#6: Industry Collaborative Platforms: By 2018, the number of NZ industry collaborative clouds will triple to more than 20; by 2020, over 70% of NZX organisations will be digital services suppliers through Industry Collaborative Platforms (ICPs).

#7: DX Developers: By year-end 2018, over 50% of NZX organisations will have dedicated digital transformation/innovation teams.

#8: DX Channel: By 2020, over 50% of NZ cloud services providers’ revenues will be mediated by channel partners/brokers.

#9: New Benchmarks: By 2020, all NZ enterprises’ performance will be measured by a demanding new set of digital transformation-driven benchmarks, requiring 40%–60% or better improvements in leadership, customer engagement, digital offerings, efficiency and agility KPIs.

#10: 4th Platform on the Horizon: By 2020, 1/3 of NZ health/life sciences and consumer product companies will begin to develop the first wave of products and services tightly integrating 3rd Platform technologies with the human body; "Augmented Humanity" offerings mainstream in the mid-2020s.

“To succeed in the DX economy, organisations must master a new form of IT leadership that uses the 3rd platform as an enabler to success through differentiation and disruption. The key to DX is customer-centricity, and while the technology aspect is important it will be the prioritisation of customers that creates a meaningful difference to future businesses ability to thrive in the DX economy," says Shane Minogue, Senior Telecommunications Analyst, IDC New Zealand.

These top 10 strategic predictions for the New Zealand and Worldwide market are presented in full in the following reports: IDC FutureScape: Worldwide IT Industry 2017 Predictions – NZ Implications ; IDC FutureScape: Worldwide Digital Transformation (DX) 2017 Predictions; IDC FutureScape: Worldwide CIO Agenda 2017 Predictions. To learn more about other IDC FutureScape documents and upcoming webinars on the latest technology predictions, please visit FutureScapes Library.

About IDC FutureScapes

IDC FutureScapes are used to shape IT strategy and planning for the enterprise by providing a basic framework for evaluating IT initiatives in terms of their value to business strategy now and in the foreseeable future. IDC's FutureScapes are comprised of a set of decision imperatives designed to identify a range of pending issues that CIOs and senior technology professionals will confront within the typical 3-year business planning cycle.

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