It is one industry that moves in a dynamic scenario with technological advancements and changing trends.
So, winning the race in this competitive scenario doesn’t come quickly. The best approach is an all-around transformation that can drive business success. The IT industry found the answer in Digital Transformation strategy (DX/DT)!
As the name suggests, Digital Transformation involves an all-around business transformation built on digital capabilities. This includes changing the operating culture and redefining strategies by implementing digital technologies and applications.
Considering this potential, many companies have already begun their quest for the perfect Digital Transformation Strategy, while some are already reaping the benefits of the successful DX implementation.
Digitally Transform Your Business
Here, we bring to you some interesting facts that speak to the Digital Transformation impact on IT business in real-time:
1) Spending
As the surveys show, global spending on Digital Transformation is expected to reach USD 1.8 trillion by 2019 and USD 6 trillion by 2022, with a year-on-year growth rate of 17.8%. Spending growth across sectors is expected to be around 15-20%.
2) Business Transformation
By 2021, 80 percent of mid-large organizations are expected to change their culture as part of their digital transformation journey.
According to Gartner, 67 percent of organizations are either done with their business cultural change initiatives or in the process of doing so. Their main concern is that limitations in the current culture are a barrier to digital transformation.
67% organizations are looking for ‘strategic service providers’ in their DX journey.
3) Rise of Initiatives
DX initiatives are becoming increasingly popular. According to leading surveys, as many as 125,000 large organizations are already launching digital business initiatives.
IDC expects the percentage of enterprises creating advanced digital transformation initiatives will grow two-fold by 2020, from 22% (current) to almost 50%.
As per the surveys, 27% organizations currently possess a coherent digital strategy.
Useful link: 10 Factors That Can Drive Your ‘Digital Transformation’ Initiatives!
4) Revenue
80 percent of organizations expect to increase their revenue with digital initiatives by 2020. CEO-level executives, in particular, expect their digital revenue to increase by more than 80% by 2020.
5) Corporate Strategy
CEOs have already begun pursuing digital initiatives with a clear digital vision for revenue-generating digital experiences. The gap between B2B and B2C firms is already closing due to rapidly changing customer expectations.
As of 2018, 67% of the CEOs of Global 2000 enterprises were expected to have digital transformation at the heart of their corporate strategy.
6) Skillset
Access to the right talent and the ability to hire the right candidates at the right time and place will be a big competitive differentiator in the digital transformation trend. Enterprises willing to adopt DX are more likely to expand their software development teams twofold, with a key focus on new candidates with expertise in digital initiatives.
During this process, mobile app development, analytics, and design will be the most common software development methods.
50% organizations are looking out for service providers assistance for DX-related skill development.
7) Shift in Expenditure
By 2020, around 50 percent of IT investments will likely be in Digital Transformation initiatives. As of 2018, 35 percent of IT resources had already been allocated to creating new digital revenue streams.
On the other hand, the increasing inclination towards digital efforts will shift organizational IT expenditure to around 30% on risk, with security and compliance consuming at least 10% of IT staff dedicated to these activities.
EndNote
Similar Topics:
- Data Strategy – A Key Checklist for Digital Transformation
- Digital Transformation: 6 Key Takeaways from Success Stories!
- 4 Basic Factors To Consider in Digital Transformation (DX) Implementation
- Guide to Digital Transformation Technologies and Their Business Impact
- Top 10 Digital Transformation Trends for 2024 and Further