IT has so far automated business processes and not changed the business practices. Now technology is changing the business process, how we create, sell, market, interact, deliver to customers explains Crawford Del Prete, Executive Vice President Worldwide Products and Chief Research Officer, IDC. With digital transformation 65% of organisations will have information as their core asset and will make business decisions based on information and become information based companies. Quarter of all global manufacturers will generate half their revenue from digitally based services. Currently they generate only small services from outside the physical product such as an automobile. 10% of work will be sourced from network free agents who do not work in companies and are available to companies through skills based market places. This is where we are headed in the digitally transformed economy.
The Third Platform is powering the adoption of technologies like augmented reality, internet of things, robotics, cognitive systems, 3D printing, next gen security, and their combination will transform industries. Those businesses who bring digital transformation into the centre of their corporate strategy will be Thrivers, estimated at 66% of global 2000 enterprises, and those who do not will be in reactive mode as Survivors, estimated at 33% of global 2000 enterprises. Top five areas that will be impacted by digital transformation include marketing, customer service, security and risk, industry specific operations, HR. The least transformed business function is indicated to be IT. In terms of relationship between IT and the Chief Marketing Officer, 50% of Chief Marketing Officers do not work with their CIOs, while 43% work with the CIO office. Rest Chief Marketing Officers work through IT vendors directly; or are independent of IT budget; or ask for IT to be integrated with third party creative and communication agencies.
In the process of digital transformation, businesses can move from being a digital explorer to digital transformer by altering customer experiences, using information as a competitive advantage, and creating new revenue streams with connected services. Other characteristics are; ability to leverage information for competitive advantage by enabling the business to respond to opportunities swiftly and with superior intelligence; and ability to make business operations more responsive and effective by leveraging digitally connected products and services, assets, people and trading partners. #010