Digital first approach will define 2022: IDC

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Digital first approach will define 2022: IDC

The next five years will see Australian and New Zealand organisations transition to a digital-first strategy mostly fueled by the pandemic, according to research firm IDC’s 2022 predictions.

IDC’s report surveyed 87 percent of Australian and New Zealand companies and made 10 predictions for how the IT Industry would respond to covid-19 alongside “changing societal norms”, such as stronger privacy protections and disclosure mandates, “sustainability imperatives” and other “systemic industry change”.

"organisations that can harness the turbulence, will gain the advantage,” said Louise Francis, Country Manager, IDC New Zealand.

“They will leap ahead of the competition to capture those rare opportunities associated with systemic industry change.”

Digital-first enterprises will shift 75 percent of all tech and services spending to as-a-service and outcomes-centric models to improve customer-experience and operating models by 2024, the report, according to the report.

The report says “45 percent of large Australian and New Zealand enterprises' IT budgets will be redistributed due to adoption of integrated as-a-service bundles in areas of security, cloud platforms, virtual workspace, and connectivity.”

Moreover, companies will focus on improving customer experience through augmentation rather than automation.

“By 2024, 65 percent of publicly listed ANZ organisations will gain twice as much, in terms of meaningful returns, on tech investments that augment employee/customer activities compared with ones that automate individual processes.”

Back to physical will redefine customer and employee experience to counter virtual fatigue.

The physical side of customer and employee experience will also return to being a priority in a post-covid world to “counter virtual fatigue,” the report predicts.

“By 2023, 40 percent of publicly listed ANZ businesses will shift half of their new technology hardware connectivity spending to modernise and reconceptualise in-person experiences for customers and employees in their own locations.”

Cloud selection processes will be reset to focus on business outcomes rather than IT requirements by 40 percent of publicly listed Australian and New Zealand companies by 2022 and IDC said this marked a shift to “valuing access to providers' portfolios from device to edge and from data to ecosystem”, the report said.

Governance readiness will also become critical to success. “By 2023, 75 percent of ANZ enterprises will use AI-assisted, cloud-linked governance services to manage, optimise, and secure dispersed resources/data, but 70 percent will not achieve full value due to IT skills mismatches."

IDC also predicted that in response to changes in digital sovereignty laws and privacy expectations 80 percent of enterprises will “restructure their data governance processes built on an autonomic foundation” by 2026. This will be a consequence of regional divergences in data privacy, security and new “disclosure mandates”.

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