Published on November 9, 2023, 2:49 am
Organizations are embracing the next phase of digital transformation by expanding their industry ecosystems. They understand that succeeding in today’s fast-paced and complex business landscape requires agility, collaboration, and a focus on customer needs. According to IDC, having a flexible ecosystem of partners is crucial for organizations that want to thrive in the digital-first era.
A global survey reveals that CEOs and executive leadership recognize the critical role that industry ecosystem partners play in driving growth and ensuring stability. From sharing data and insights to collaborating on applications and operations, organizations across various industries are leveraging these partnerships to foster innovation, enhance safety and quality, and deliver value to customers.
Many organizations have already taken the initial steps towards expanding their industry ecosystems. By establishing networks of capabilities, support, expertise, and knowledge that can be scaled up or down as required, they are creating a foundation for future success.
According to Jeffrey Hojlo, research vice president with IDC’s Future of Industry Ecosystems program, expanding collaboration and innovation with industry ecosystems is now a critical strategy for executives. The complexity, dynamism, and disruptive nature of today’s world make it impossible for any organization to address all challenges alone. Organizations need external sources of data, insights, applications, operations, and expertise to complement their own capabilities.
To guide organizations in this journey, IDC has released its 2023 Future of Industry Ecosystems predictions. These predictions emphasize the importance of incorporating partners from outside the core industry and learning best practices from diverse sources. By doing so, organizations can add new assets, resources, and knowledge that may not be present within their traditional boundaries.
Here are some key predictions outlined by IDC:
– Prediction 1: By the end of 2023,
organizations that share data,
or operations with ecosystem partners through joint ventures will increase profitability by 5 percentage points.
– Prediction 2: By 2028,
consortium-based decentralized autonomous organizations (DAOs) will become the standard for complex industry ecosystem ventures, enabling process,
and data sharing for new revenue growth.
– Prediction 3: By 2025,
60% of shared applications on industry clouds will be built on blockchain technology, strengthening the foundation for industry ecosystem activities in the Web3 era.
– Prediction 4: By 2024, while 80% of organizations globally will leverage on-demand resources in industry ecosystems to improve supply chain logistics, only 40% will see improvements in profitability.
– Prediction 5: By the end of 2026, 40% of G20 governments will actively promote the global data economy through funding of technology infrastructure and participation in data spaces.
– Prediction 6: By 2025, 60% of G2000 organizations will establish cross-ecosystem environmental, social, and governance (ESG) teams responsible for sharing data,
and expertise to drive sustainable ecosystem practices.
– Prediction 7: By 2023, only 20% of metaverse experiments within industry ecosystems will succeed as organizations continue to evolve their capabilities to deliver products and services in a blended physical and digital manner.
– Prediction 8: By 2025,
organizations that fail to share operations and expertise across their industry ecosystems to address talent shortages will struggle to remain viable or may be acquired.
– Prediction 9: By
2027, regulations related to data,
intellectual property (IP),
and cloud computing will drive the adoption of collective standards in industry ecosystems to ensure digital sovereignty and reduce cross-border risks. This is especially relevant given increasing concerns around privacy and cybersecurity.
organizations that automate IT processes for data modeling and application development as well as sharing across their industry ecosystems can expect a reduction in time-to-market by up to
These predictions highlight the important role that expanding industry ecosystems play in organizations’ digital transformation journeys. As the business landscape continues to evolve, organizations must embrace collaboration and innovation with ecosystem partners to stay competitive and meet the ever-changing needs of their customers.
In conclusion, industry ecosystems are the next phase of digital transformation for organizations. By leveraging partnerships, sharing resources, and embracing new technologies, businesses can position themselves for success in the digital-first era.