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Enterprises need to be prepared to take more technological risks, change thinking and lead through the unknown, an industry expert said.
Speaking to TechRadar Middle East at the 13th edition of IDC CIO Summit, Meredith Whalen, Chief Research Officer at International Data Corporation (IDC), said that they [enterprises] need to understand what the businesses need and companies are comfortable working with technology suppliers and less comfortable working with new and emerging companies.
So, she said that they have to get their organisation comfortable to be at the leading edge.
“Millennials are prepared to take more technological risks while older generations are more conservative to adopt it. The new CEOs will need to have technical experience and it is one of the key challenges. A little over half of the management teams don’t have experience in running a digital presence,” she said.
However, she said that it is not the technology that is the issue in digital transformation and initiatives the companies are working on, it is changing the culture and getting people to think differently and act differently.
Studies show that the digital economy is at a critical tipping point and nearly half of all GDP worldwide, in the next few years, will come from products and services offered by digitally transformed organisations.
Whalen said that CEOs are looking at building a closer relationship with its customers and create more personalised products and experiences and building trust with customers as well.
By 2022, she said that market demand for tailored experiences will double every six months in more than two-thirds of all industries.
However, she said that organisations need to build new capabilities around an intelligent organisation, software capabilities to deliver innovation and dynamic work models to attract generation Z and millennials.
To thrive, she said that organisations must define their new role in this digital economy and proactively address new customer requirements around personalisation and trust.
Creating a better-personalised experience
New digital agenda for #CEOs focuses on new customer requirements, new capabilities, new critical infrastructure and new industry ecosystemhttps://t.co/OHiWETEJGz@IDCMEA @IDC #IDCMECIO @meredithwhalen #digitaleconomy #DigitalTransformation #UAE #CIOs #CFOs#customerexperience pic.twitter.com/IkMpdT3JIOFebruary 27, 2020
“The new digital agenda for CEOs focuses on new customer requirements, new capabilities, new critical infrastructure and new industry ecosystem. They must also develop new capabilities around digital innovation, work, and intelligence, and build a digital IT infrastructure that supports resilient operations and pervasive experiences,” Whalen said.
According to IDC, 40% of the data collected from the customer journey will be to create a better product and better-personalised experience for the customers by 2023.
By 2025, she said that over two-thirds of the G2000 will be high-performance and large-scale producers of software-based digital innovation while 60% of the code used by enterprise developers will be from third-party marketplaces as opposed to 3% today and 60% of the G2000 enterprises will have created their software ecosystem.
By 2022, she said that 40% of companies will incorporate digital resiliency metrics into the board-level dashboard while 25% of large enterprises will identify a senior leader responsible for ensuring a pervasive and seamlessly connected experience across its workforce, operations, customers and partners.
By 2024, she said that over 70% of large enterprises worldwide will have a technology roadmap that stitches together next-generation networks.
A new work model emerges
- Reconfigurable teams: 2/3rd of employees in the G2000 will shift from teams organised around a process or function to reconfigurable teams focused on outcomes.
- Transparent security experience: 30% of the workforce will have their own secure portable and private digital work identity, enabling them to access the tools and data they need across business entities.
- Intelligent and collaborative work: The enterprises with intelligent and collaborative work will see 30% lower turnover and 30% higher productivity than peers.
- Digital coworkers: The contribution of digital coworkers will increase by 35% as more tasks are augmented by technology.