IDC Top Ten Predictions

IDC Top Ten Predictions

IDC New Zealand releases its Top Ten Predictions for 2016 and beyond, with a focus on digital transformation

Auckland, 19 February, 2016 – IDC New Zealand recently released its latest Top Ten Predictions for 2016 and beyond highlighting the transformational shift taking place in Enterprise today. The report titled IDC New Zealand FutureScape: Top Ten Predictions 2016 provides 10 predictions for the ICT market in 2016 and the implications for IT suppliers and buyers.

While 2016 is shaping up to be the banner year for Digital Transformation (DX) to take root in many New Zealand organizations, IDC expects Innovation Accelerators (IoT, cognitive computing, robotics, 3D printing, Augmented/Virtual Reality and Next Gen Security) to accelerate this transformation in years to come.

The study offers IDC's outlook for the New Zealand IT industry. Since 2007, IDC has predicted — and we have all witnessed – the emergence of the IT industry's 3rd Platform for innovation and growth and the impact on every industry through the DX it enables. In 2016, and over the next three to five years, we will see enterprises "flip the switch," committing to a massive new scale of DX and 3rd Platform adoption, to stake out leadership positions in the DX economy.

"Adapting to DX and embracing the change will be difficult, defining DX alone is not easy. Most projects involve transforming the experience but little attention is being paid on other dimensions such as information governance, which can lead to disillusionment on the benefits of DX" says Shane Minogue, Senior Telecommunications analyst with IDC.

Minogue continues "However, as challenging as this transition will be, the cost of ignoring this change is far higher. The sweeping changes about to take place have been compared to an avalanche. If you try to react when the change is already surrounding you, it will be too late. In order to be in the best shape possible, preparations and changes must be made now."

IDC's lead prediction is that 60% of NZ enterprises will have digital transformation at the center of their corporate strategy by the end of 2017. Those companies that do not initiate a digital transformation procedure will find themselves struggling to respond to changing market demands and find it difficult to stay profitable.

IDC goes on to predict that 80% of B2C organisations will overhaul their "digital front door" to support 1,000 to 10,000 times as many customers/customer interactions as they do today. Success in the digital era all pivots on changing the customer experience.

IDC's predictions for the fast-evolving ICT sector for the next three to five years are:

#1 The Importance of Digital Transformation: By the end of 2017, 60% of NZ enterprises will have digital transformation at the center of their corporate strategy

#2 Customer Intimacy at Scale: By 2018, 80% of B2C and 60% of B2B organisations will overhaul their “digital front door” to support 1,000 to 10,000 times as many customers/customer interactions as they do today

#3 Security and Risk Management: By 2016, 50% of IT organisations will shift their focus to advanced "contain and control" security and away from a perimeter mentality

#4 IoT becomes a Strategic Imperative to Drive Growth: By 2018 there will be 22 million connected things in NZ growing from 15 million today

#5 Adoption of Fibre Accelerates: By the end of 2016, there will be 300,000 fibre connections in New Zealand.

#6 Enterprise will Embrace Biometrics: By 2017, 33% of Enterprises will begin using smartphone biometrics for employee authentication

#7 UCaaS will Gain Significant Traction: By 2017, UCaaS will account for 60% of UC&C implementations in New Zealand

#8 Cognitive Systems will be Key: By 2020, 40% of all business analytics software will incorporate prescriptive analytics built on cognitive computing functionality

#9 Augmented Reality will Disrupt: Purpose built augmented reality devices will grow from 100,000 units worldwide in 2015 to more than 7.5 million units in 2017 and will impact key verticals in New Zealand

#10 Transform or Perish: By 2018, 35% of IT resources will be spent to support the creation of new digital revenue streams

For more information on the FutureScape Predictions register your interest in attending IDC's Enterprise Mobility event series in Auckland and Wellington where the predictions will be presented among other thought provoking presentations throughout the day. http://www.ap.idc.asia/events/view/locations/?event_id=623

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