According to a recent ‘IDC FutureScape: Worldwide Digital Business Strategies 2023 Predictions — Asia/Pacific (Excluding Japan) Implications’ Report, digital transformation continues to be a crucial factor for businesses to stay competitive in the digital-first era.
As technology plays a more significant role in business operations, the CEO and C-Suite must strengthen their partnerships with cloud providers, focus on building trust with customers, and provide excellent employee experiences.
The report predicts that by 2023, organisations in Asia/Pacific (excluding Japan) spending on digital technology will grow at 3.5 times the economy, laying the foundation for operational excellence, competitive differentiation, and long-term growth.
Additionally, by 2026, 40% of total revenue for A2000 organisations will be generated by digital products, services, and experiences.
The report also highlights that the number of tech providers in Asia-based 500 organisations (A500) will double by 2027, incorporating businesses that originated outside of the tech industry.
By 2024, 50% of A2000 CEOs will establish strategic personal relationships with their cloud providers to achieve quantifiable outcomes from digital business platform investments.
Other predictions include organisations with highly developed industry value chains on an ecosystem control plane will innovate 25% faster than other businesses by 2027, and enterprises that collect, analyse, and contextualise customer data in a trustworthy way will build creative business and pricing models that double customer lifetime value by 2028.
“In Asia, digital spending is set to reach $1T by 2025, driving the future of business. The key to success lies in harnessing the power of data and intelligence, securing long-term funding, and fostering a culture of innovation. The race to digital maturity is on, and companies must overcome challenges such as creating data-driven business models, modernizing operating models, and leveraging the digital workforce to drive innovation,” said Lawrence Cheok, Associate Research Director, Digital Business Strategies, IDC Asia/Pacific.
The report also highlights the importance of ESG, whereby by 2025, a quarter of organisations worldwide will demonstrate responsible leadership by increasing their sustainability-related digital tech spend by more than 25% from 2022 levels.
By 2026, enterprises that did not effectively address their organisation’s talent and digital skills gap will constrain revenue growth opportunities by 20%.
The IDC FutureScape report provides insights into the top ten digital business strategy predictions in Asia/Pacific (excluding Japan) and their implications.
IDC releases its Top Predictions through its IDC FutureScape reports every year to give a crystal ball view of what is ahead for the rapidly changing ICT industry.
