Nearly five years after IDC launched the first global study on the digital transformation evolution (DX), in 2020 we clearly entered in a second phase where the market is composed by: (1) “digitally determined” organizations, i.e., companies that are already in the digital transformation process, with a clear strategy and gaining scale; (2) “digitally distraught” organizations, i.e., companies that have the subject on the corporate agenda, however, not in scale or with a roadmap drawn.
Article by Gabriel Coimbra | Reading time 3 minutes
Considering these organizational models, IDC predicts that, in 2020, 40% of national organizations are already “digitally determined”. This means that a significant part of our enterprises is already executing its transformation roadmap, with digital at the core of the business strategy, be it through the transformation of the market, the design of new business models or the launch of digitally supported products and services. On the other hand, IDC predicts that 60% of national organizations are still “digitally distraught” and need a boost to take the issue beyond the agenda to the organization’s day-to-day.
The same prediction at a global level indicates that 55% of organizations are currently “digitally determined”. As a result, Portugal needs to accelerate its digital maturity even further.
Nevertheless, it is alarming that organizations outside the digital economy without an online presence are not being accounted for, even though they represent a very relevant percentage in the national economy, more specifically almost two-thirds of all SMEs.
Since the predictions for 2023 point out that more than 50% of the world’s economy will come from digital and connected products and services, IDC believes that by 2024 we will enter the last phase of “Digital Transformation”, a moment in which practically all businesses will be digital and there will only be space for “digitally determined” organizations.
In this context, we identified 5 essential agents of transformation in this last phase of transition to a fully digital economy. If your company is “digitally distraught” or is on the way to become “digitally determined”, you might need to work on these.
Culture of the future: leadership at scale
It is increasingly evident that digital transformation success is not just about a top-down initiative or a big digital budget. In fact, transformation depends on something much more important (and more scalable): the ability of an organization to adopt a culture in which the concept of transformation is a basic principle and where digital is part of the company's DNA.
Customers of the Future: creating empathy
The ability to understand the needs, motives, behaviors, and emotions of each client and, based on this knowledge, to know how to respond and interact properly is fundamental. In order to be successful in the relationship with the customers of the future, it will be imperative that organizations are able to ensure a high degree of empathy, always thought to the scale of needs.
Intelligence of the Future: knowledge at scale
It will be increasingly crucial to develop the capacity to be able to guarantee substantial increases in the economic and social value of products and services, continuously integrating the collective contextual intelligence (CCI) of machine-learning networks (ML) in labor, operations, and experiences. The future of intelligence aims to connect people and machines so that, in the company of the future, contextual collective intelligence is transversal to operations, labor, and experience.
Operations of the Future: resilience at scale
The future of operations has evolved. Formerly driven by a culture of operational excellence, we are now moving to resilient and sustainable operations within a complex world. A resilient operation is able to drive innovation and makes it derive from all parts of its ecosystem, from customer demand to a sustainable value chain.
Work of the Future: a model of work at scale
IDC defines the work of the future as a fundamental change in the concept of work, which transforms workers' behaviors and capacities, as well as organizational culture; supports a dynamic work environment, with no time limits throughout the day or physical space; empowers teams and a diverse workforce; and promotes human-machine collaboration.
