Company culture will be imperative for businesses to successfully pull off their digital transformation projects this decade.
That’s according to research firm IDC, which released its top 10 digital transformation predictions for 2020 specifically looking at the Australian market through to 2025.
IDC placed a lot of emphasis on the importance of culture, saying it’s “one of the biggest precursors to digital excellence.”
“By 2024, the leaders of 50 percent of Australian organisations will have mastered ‘future of culture’ traits, such as empathy, empowerment, innovation, and customer data centricity as they seek digital leadership at scale,” said IDC ANZ research director Louise Francis.
"This will, in turn, accelerate co-innovation and enable businesses to respond to market changes at hyperspeed as the enterprise learns as a single entity and at scale."
To that end, IDC predicts that the emphasis will shift from digital transformation technologies towards the underlying organisational structures and innovation ecosystems. One of those early shifts will be the adoption of digital KPIs, with 35 percent of Australian businesses now using multiple metrics for insights into their digital transformation projects.
"As DX budgets and effectiveness come under scrutiny, CEOs, boards and DX decision makers will demand and expect metrics that demonstrate the true value and return on investment,” said Francis.
“With DX budgets now outstripping traditional IT budgets it is not a matter of if, but when businesses will move to an enriched metrics model.”
The flow on effect of these digital KPIs will be increased collaboration among partners and their competitors by 2022, IDC predicts.
By 2021, IDC predicts digital transformation spend will cover more than half of all ICT investments in the country, up by 45 percent today, with the biggest spend going towards data intelligence and analytics.