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10 Feb 2019

IDC releases 2019 top 10 digital transformation trends for New Zealand



MEDIA RELEASE



10 February 2019



CDO title to disappear, 40% of workforce will partner with ‘bots within the next four years

IDC releases 2019 top 10 digital transformation trends for New Zealand



Auckland 10 February 2019: Global technology research company IDC has released its 2019 Top 10 digital transformation trends for New Zealand. IDC says that by 2020 at least 55% of NZ organisations will be digitally determined, transforming their markets with new business models, developing digitally enhanced products and services.



At the same time, IDC says the Chief Digital Officer title will be short-lived and declining by 2023, as “digital will be fully embedded in organisations and no longer regarded as something special.” However, more than 60 percent of CEOs will have led digital initiatives at some some stage in their career.



Louise Francis, A/NZ Research Director for IDC, says that while a little over half of New Zealand organisations will be digitally determined by 2020, customer advocacy will be key to success.



“We estimate that by the end of 2020, more than 60% of New Zealand business-to-consumer organisations will have adopted Net Promoter Score as their leading success metric. In the same time period, at least 20% of businesses will have created digital twins, which will enable flatter organisations and reduce the number of knowledge workers they need by 33 percent,” says Francis.



According to Francis, by 2023, 40 percent of NZ workers will be working with bots or some other form of AI.



“There has been some misinformed comment about AI coming to ‘steal all the jobs.’ In reality, many roles will be augmented and extended with smart bots or some form of AI. This trend will require company leaders to redesign operational processes, performance metrics, and recruitment strategies.”



“At present 60 percent of NZ organisations do not have any digital KPIs. IDC sees this changing quite rapidly, so by 2023, 85 percent will have digital KPI sets,” says Francis.



The IDC analyst says by the end of next year, successful businesses will be allocating capital budget equal to at least 10 percent of revenue to fuel their digital strategies.



“By the end of 2020, 55 percent of NZ enterprises will have created data management and monetisation capabilities, enhancing enterprise functions, strengthening their competitiveness, and creating new sources of revenue. The other 45 percent will be in trouble if they cannot break free of their digital deadlock. Now, more than ever, speed and flexibility will beat size every time,” says Francis.





Trends at a Glance — New Zealand



1. By 2020, at least 55% of NZ organisations will be digitally determined, transforming markets and reimagining the future through new business models and digitally enabled products and services.



2. By 2023, the CDO title will be in decline, as digital will have become fully embedded, but more than 60% of NZ CEOs will have spent part of their careers leading digital initiatives.



3. The paramount importance of customer advocacy will result in 60% of B2C brands in New Zealand embracing Net Promoter Score as their leading success metric by the end of 2020.



4. By 2020, 55% of NZ enterprises will create data management and monetisation capabilities, thus enhancing enterprise functions, strengthening competitiveness, and creating new sources of revenue.



5. By 2020, 20% of NZ100 companies will have implemented advanced digital twins of their operational processes, which will enable flatter organisations and one-third fewer knowledge workers.



6. By 2023, 40% of NZ workers will start working with bots or other forms of AI, requiring company leaders to redesign operational processes, performance metrics, and recruitment strategies.



7. By 2020, 25% of NZ100 companies will have allocated capital budget equal to at least 10% of revenue to fuel their digital strategies.



8. By 2022, prominent in-industry value chains, enabled by blockchains, will have extended their digital platforms to their entire omni-experience ecosystems, thus reducing transaction costs by 35%.



9. By 2022, approximately 25% of large manufacturers and retailers in NZ will have built digital trust through blockchain services that enable collaborative supply chains and allow consumers to access product histories.



10. By 2023, 85% of entities will have incorporated new digital KPI sets — focusing on product/service innovation rates, data capitalisation, and employee experience — to navigate the digital economy.



~ENDS~



About IDC

International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. With more than 1,100 analysts worldwide, IDC offers global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries. IDC's analysis and insight helps IT professionals, business executives, and the investment community to make fact-based technology decisions and to achieve their key business objectives. Founded in 1964, IDC is a subsidiary of IDG, the world's leading technology media, research, and events company. To learn more about IDC, please visit www.idc.com. Follow IDC on Twitter at @IDC





For further information, please contact:

Louise Francis|Research Director

Australia and New Zealand

IDC New Zealand

Direct: +64 9 374 6681

Mobile: +64 27 632 6835

Email: lfrancis@idc.com

Website: http://www.anz.idc.asia/



Coverage

Regions Covered

New Zealand


Topics Covered

Digital transformation


Contact
For more information, contact:

Louise Francis
lfrancis@idc.com
006493746681