In recent years, data has become a new factor of production and digital technology has become a new development engine with the accelerated innovation of Internet, big data, cloud computing, artificial intelligence, blockchain and other technologies and their increasing integration into the whole process of various fields of economic and social development. The tide of digital economy has become unstoppable, and the digital transformation of enterprises is the general trend. International Data Corporation (IDC) recently released the report IDC FutureScape: Worldwide Digital Transformation 2022 Predictions- Enlightenment to China. From the perspectives of digital investment, digital resilience, digital ecosystem, digital priority, environmental and social responsibility and digital culture, the report gives the driving factors, development trend, IT impact and action suggestions in the next five years, supporting enterprises to clarify the investment direction in the digital priority world and accelerate the evolution into "future enterprises". The specific contents of the top ten forecasts are as follows.
Forecast 1: Double-Digit Investment Growth. The CAGR of China's direct digital transformation related investment will increase to 18.9% from 2022 to 2025, higher than the CAGR of 18.4% from 2020 to 2025. By the end of 2025, China's direct digital transformation related investment will account for 51.5% of China's overall ICT investment (including the third platform technology).
Forecast 2: Digital GDP Rules. To tackle the Covid-19 outbreak in the world, China's organizations have accelerated investment in digitalization. This means that more than half of China's economy is based on or affected by digitization in 2022.
Forecast 3: Digital Oriented Physical Architecture. By 2023, 80% of Chinese organizations will give priority to investing in digital tools to expand physical space and assets with digital experience.
Forecast 4: Automation Enterprises and Ecosystems. By 2026, 60% of Chinese organizations will use enterprises and their ecosystems to achieve automation and use model-based enterprise concepts, centers of excellence and low code / no code platforms for disruptive innovation.
Forecast 5: Digital Leadership. By 2026, 50% of China's CIOs will promote business transformation and empower digital resilient organizations through strategic technology roadmap and platform reconstruction, so as to achieve agility, data-driven and employee collaboration.
Forecast 6: Digital Culture and Empowerment. It is important to have the ability to leverage low / no code tools and data. By 2024, 60% of Chinese enterprise employees will lead the transformation and reflect digital resilience in their roles.
Forecast 7: Digital Resilience. By 2023, 50% of Chinese organizations will expand their resilience plans to adapt to future business and improve their profitability, innovation rate and cost efficiency by more than 20% compared with their peers.
Forecast 8: Digital Return on Investment and Results. By 2023, one-third of Chinese companies will earn more than 30% of their revenue from digital products and services, compared with 20% in 2020.
Forecast 9: Digital Dream Team. By 2025, companies with cross-functional leadership and digital dream team will have faster innovation speed, higher market share growth and higher operational efficiency than companies of the same era.
Forecast 10: Carbon Neutrality and Digitization. Carbon neutrality plan is a key goal of digital transformation. Less than 15% of organizations said they did not follow or set targets to reduce carbon emissions by the end of 2023.
"In 2022, the global and Chinese economies are still in a period of recovery and growth, and all enterprises are experiencing unprecedented storms in history." Wu Lianfeng, vice president and chief analyst of IDC China, pointed out that “the positive” includes the continuous growth of consumer demand, excellent digital infrastructure, digital innovation and government stimulus plan. “The negative” includes the continuous outbreak of the epidemic, the continuous tension of the supply chain, geopolitical risks and the shortage of digital skills. “The neutral” includes the change of stakeholders' expectations, the strengthening of digital sovereignty, the intensification of data security and personal privacy, and the subversion and reconstruction of ecosystem. All enterprises should formulate appropriate digital priority strategies based on their own advantages and disadvantages, and select one or more of the following areas as the focus of digital transformation in 2022: software innovation, remote operation, security and privacy, hybrid work, artificial intelligence, edge data, digital twins, personalized customers and wireless connection.
