Published on November 9, 2023, 5:22 am

Enterprises worldwide are bracing themselves for a future filled with economic, political, and social disruptions. These changes are expected to shake up business plans and test the resilience of organizations. In order to thrive amid these turbulent times, industry leaders must undergo a transformation, turning their businesses into digital powerhouses that leverage innovative technologies.

According to Rick Villars, Group Vice President of Worldwide Research at IDC, IT and business leaders need to shift from simply implementing digital transformation initiatives to running digital-first organizations that connect technology with business outcomes. This transition is crucial for organizations to navigate the storms of disruption successfully.

IDC predicts ten major trends that will shape the global IT industry:

1. The rise of as-a-Service processes and smart products: Tech-centric organizations in the Global 500 are expected to double in number over the next five years. These organizations will focus on incorporating as-a-Service elements such as enhanced customer experience and intelligent process automation into digitally enhanced physical and virtual products.

2. Tech-by-wire as-a-Service business models: Delivery of technology via tech-by-wire (self-contained systems, software-defined functions, AI-assisted cloud-based control systems, data-driven decision-making) will become more widespread. Tech-by-wire adoption is driven by cost savings, improved digital resiliency, faster access to innovative technologies at scale, system simplification, and reduced technical debt.

3. Shortages in critical skills: Companies will struggle to attract and retain employees with the necessary skills for expanding digital business requirements. To overcome this challenge, businesses and IT providers must invest in developing technical expertise as well as collaboration and critical thinking skills.

4. Impact of digital sovereignty: Digital sovereignty developments will affect staff, budgets, and operating processes. Assurance-related assertions may drive some IaaS/PaaS workloads to local cloud providers while sustainability mandates could lead to interest in sovereign offerings among global cloud providers partnering with local providers.

5. Increased scrutiny of as-a-Service spending: While cost reduction is a primary concern for enterprises, the real value of as-a-Service lies in operational and innovation benefits. Organizations must evaluate which services deliver on their promised value to optimize spending effectively.

6. Improved service provider expertise: Standardized control plane-based as-a-Service offerings and advancements in AI and automation will enable providers to offer security, data, and industry-specific knowledge more economically across multiple customers.

7. Technology supply chain concerns: Global or regional silicon and code supply chain issues may cause delays in digital product launches. To mitigate risks, decision-makers will seek quantifiable outcomes from cloud providers, invest in supply chain intelligence, and adopt multi-sourcing strategies.

8. Challenges of transitioning to control plane-based systems: Consolidating basic control systems onto a few standard platforms will be difficult for IT teams. More than half of enterprises adopting tech-by-wire solutions are expected to face challenges related to siloed control systems.

9. Building trust in automation: Trust in automation requires a deeper understanding of human behavior within initiatives where automation plays a significant role. The impact of a lack of trust can be substantial, leading to brand damage and the need to rebuild trust.

10. Machine vision for enhanced experiences: Organizations at the forefront of incorporating machine augmented vision into digitally optimized spaces will have a competitive advantage by improving customer experiences and leveraging intelligent use of data.

In conclusion, enterprises must prepare themselves for the waves of disruptions that lie ahead by embracing digital transformation and leveraging emerging technologies. By doing so, they can navigate these challenges successfully and emerge as resilient digital businesses ready to seize new opportunities.

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