The intersection of customer experience (CX) and employee experience (EX) has become an undeniable focus of technology innovation. Initially, the spotlight was primarily on CX, with technologies being honed to streamline, enhance, and personalize the customer journey. This investment was driven by an understanding that a positive CX was a critical driver of business success, with its impact measurable through direct correlations with customer loyalty, retention, and advocacy.

A pivot occurred when tangible data began to illuminate a direct linkage between CX and EX. IDC studies have shown that the engagement level of employees is intrinsically tied to the quality of customer service they deliver. And the good news is, as leaders became more aware of this connection, there was a marked shift in strategic priorities. Companies started to invest in technologies that improved not just the customer journey but also the employee’s day-to-day workflow. The rationale was clear: by enabling employees with better tools and processes, they could perform their roles more effectively and efficiently, leading to a direct uplift in customer satisfaction.

Business shared services have a long-standing application to support employees internally, yet, transformation in these services has not been at the forefront of digital transformation. Shared services strive for organizational efficiency, cost reduction, and process unification by capitalizing on large-scale operations and niche expertise. This model consolidates fundamental supportive functions—like HR and finance—into a unified resource for various company divisions. Employees in these contexts are indeed the internal customers that require the services from these shared functions.

Nonetheless, shared service execution currently encounters obstacles, such as inaccuracies and delays, which disrupt operations, hinder adaptability, and can lead to decreased customer satisfaction. A recent IDC report highlights that employees across all industries prefer to have their service requests completed in half of the time as they are currently.

In the world of shared services where automation meets satisfaction

In the Asia-Pacific region, shared services have become a cornerstone for organizational support, particularly in IT, finance, legal, HR, and procurement (see figure below). These shared services are heavily process-oriented, streamlining repetitive and routine tasks across these critical functions. Their process-driven nature renders them ideal for the integration of automation and artificial intelligence. As these sectors typically involve repetitive and rule-based tasks, they stand to gain significantly from the efficiency, accuracy, and scalability that AI and automation technologies can provide, transforming the landscape of shared services with innovation and smart systems. As AI and automation are among the top technology investments for Asia/Pacific businesses in 20241 , IDC anticipates that these technologies will be more widely applied to improve shared services.

There are many potential use cases that automation and GenAI can be applied to improve the most used shared services for employees in Asia/Pacific. For example, intelligent automation can significantly enhance IT shared services by streamlining ticketing processes, where machine learning algorithms predict and categorize ticket issues, enabling faster resolution times. Automation of routine tasks, such as password resets and system updates, frees up IT staff for more complex problem-solving. Additionally, AI-driven analytics can proactively monitor systems for patterns that could indicate potential issues, allowing for preemptive maintenance and minimizing downtime. This tech-forward approach not only improves operational efficiency but also elevates the user experience for employees relying on these crucial IT services.

In HR, GenAI can improve individual self-service by automatically recommending workflows across HR and non-HR applications, directing employees by query to the tools, resources, and insights they need. This way, employees can find HR-related queries with tailored information, reducing the reliance on HR support, and in shorter processing time.

For legal requests, automation and GenAI can greatly enhance the efficiency of legal shared services by automating the drafting and review of standard legal documents, which reduces the time legal teams spend on routine work. AI can assist in analyzing contracts to ensure compliance with laws and corporate policies, and machine learning models can predict legal risks by comparing against historical data, which is usually a time-consuming process. This allows attorneys to focus on more strategic tasks that require their expertise and judgment, thus improving the overall responsiveness and effectiveness of legal shared services.

In procurement, automation and GenAI can streamline the requisition-to-purchase process. For instance, GenAI can predict purchasing needs based on historical data, automate the creation of purchase orders, and assist in vendor selection by analyzing vendors’ past performance and compliance. Moreover, AI can negotiate prices within predefined parameters, carry out transactional procurement tasks, and manage inventory in real-time, significantly improving efficiency and reducing manual errors in procurement operations.

In the realm of finance shared services, automation and GenAI can be pivotal in transforming tasks such as expense management and report generation. For instance, AI can automatically categorize expenses based on learned behavior, while also flagging anomalies for review. Similarly, AI can generate predictive financial reports, offering insights based on data trends, and facilitate faster month-end closures by automating data entry and reconciliation tasks. This not only streamlines finance operations but also provides more accurate, real-time financial data to inform strategic decision-making.

IDC has recently published several Taxonomy use cases documents on the potential application of GenAI in enhancing the 13 functional areas including IT, HR, procurement, legal and finance mentioned in this article.

Automation doesn’t make us bots, it’s giving employees more time to be human

Our IDC EX Shared Services Survey, 2023 data shows that 66% of the employees believe that automating shared services within organizations can significantly improve employee satisfaction, which is rated the number one benefit of shared service optimization. It also enhances process accuracy, with a 55% improvement, ensuring that tasks are completed correctly the first time. Additionally, a 46% time savings shows that automating shared services allows organizations to operate more efficiently, freeing up staff to focus on more strategic activities. These benefits collectively contribute to a more productive and contented workforce.

Moreover, automating shared services can drastically reduce task completion times, freeing up employees to focus more on innovation, with 60% of their time being redirected towards creative and strategic initiatives. With less time spent on process-oriented tasks, employees can spend 50% more time on core organizational activities like Diversity & Inclusion, or ESG. Automation also allows a 43% increase in efforts dedicated to refining processes, leading to continuous operational enhancements and value creation within the organization.

While the data showcasing the advantages of process automation in shared services is encouraging, it’s crucial for leaders to recognize the necessity of investing in these systems. Automation of processes, including those in shared services, is pivotal in enhancing both the employee experience (EX) and customer experience (CX). Committing resources to enhance workflows and employee satisfaction should be viewed not as a mere expense but as a strategic investment that yields long-term benefits.

For more on unlocking the power of automation to optimize business-shared services, please check out this IDC Survey.


1 IDC Survey 2023: AP DX Executive Sentiment Survey, n=810

Ransomware attacks have been one of the most high-profile scourges of business over the past decade — and the threat shows no signs of abating. If anything, it has become more prevalent as “ransomware as a service” has lowered the entry barrier for threat actors.

Innovation by cybercriminals keeps security teams on high alert. When governments and security agencies advise organizations not to pay ransom, attackers may switch to extortionware approaches.

Or, sticking with ransomware, they may use AI to augment their capabilities, refine their lures, automate attacks, or hit hundreds or thousands more organizations than they would have been able to previously.

This Is Going To Hurt

According to IDC’s Future of Enterprise Resilience Survey, conducted in November 2023, 63.4% of EMEA organizations with 500 or more employees suffered a ransomware attack that blocked access to their systems or data in 2023.

Which assets are being impacted? According to the survey respondents, the most frequently impacted resources were collaborative applications (37%) such as MS 365 or Google Workspace. These were followed by virtual or physical servers (35%) and public cloud IaaS and PaaS (also 35%). For 34% of organizations, ransomware attacks impacted their partner, supplier, or customer systems.

These impacts reflect the infrastructure and environments in which most modern organizations operate: cloud-based infrastructure and platforms running cloud-based collaborative applications on enterprise licenses for cost efficiency and productivity, often within broader digital ecosystems to enhance operational efficiency.

Targeting what has become the critical infrastructure for operational capability gives cybercriminals the greatest leverage over their victims. The hackers strive to ensure there is no choice but to pay the ransom.

The Best Defense is… Multi-Layered

Despite the rising volume of attacks, more than one-third of the surveyed organizations stated that no ransomware attacks had managed to block access to their systems or data. These organizations highlighted some of the key technologies that helped them detect the attacks before the malware was able to deploy.

The most frequently cited tool was a cloud security gateway/cloud access service broker (CASB, 30%). This aligns with the operational environments described above, placing protection where it is needed most. Deploying a CASB provides visibility and control over cloud environments and assets, enabling quicker detection and containment of potentially malicious activity.

Threats can come from within the organization as well as outside. A further 26% of respondents said they used specific security analytics aimed at detecting insider threats. The third most common response was SIEM systems (25%), which help by correlating data from multiple sources to identify suspicious patterns and anomalies before an attack. Organizations also mentioned that NDR, identity analytics/UEBA, and EDR helped with detection.

Fundamentally, there is no single technology that is a silver bullet against ransomware. Effective protection depends upon a layered approach that aligns security controls to the environment, infrastructure, and processes of the organization.

As attacks grow more prevalent, fueled by ransomware as a service and AI-augmented attack campaigns, EMEA organizations need to be on their guard with a mix of technologies to detect and contain malware payloads before they can be deployed.

Mark Child - Associate Research Director, European Security - IDC

Associate Research Director Mark Child of IDC’s European Security Group leads the group's Endpoint Security and Identity & Digital Trust (IDT) research for both Western Europe and Central & Eastern Europe. He monitors developments in security technologies and strategies as organizations address the challenges of evolving business models, IT infrastructure, and cyberthreats. Mark's coverage includes in-depth security market studies, end-user research, white papers, and custom consulting.

Digital transformation, what was once thought to be the key to organizational efficiency and a path to innovation, is now a common phrase in boardrooms and in business strategy discussions. However, alongside its promises of increased efficiency, improved customer experiences, and enhanced agility, digital transformation brings with it a phenomenon that many organizations are now grappling with: digital transformation fatigue.

Digital transformation fatigue is a phenomenon that can occur when businesses and organizations undergo continuous and rapid technological changes without adequate time for adaptation or realization of full benefits from previous transformations. This fatigue can manifest as resistance to change, decreased engagement, and burnout among employees, leading to diminished productivity and innovation. It can also result in skepticism about the value of further digital initiatives, making it challenging for leaders to drive new projects forward.

Drivers of Fatigue

One of the primary drivers of digital transformation fatigue is the sheer pace of technological change. In today’s hyper-connected world, new technologies emerge at an unprecedented rate, rendering existing systems and strategies obsolete almost overnight. This constant cycle of innovation creates a perpetual sense of urgency for organizations to keep pace with the latest trends and advancements, leaving little time for consolidation or reflection.

Moreover, the scope and scale of digital transformation initiatives can be daunting. From overhauling legacy systems to implementing cloud computing, artificial intelligence, and data analytics solutions, organizations are faced with a myriad of challenges that require significant investments of time, resources, and expertise. As a result, stakeholders may experience fatigue from the sheer magnitude of the tasks at hand and the seemingly endless stream of demands placed upon them.

Resistance to change is another common barrier that contributes to digital transformation fatigue. Despite the potential benefits of digitalization, many employees are apprehensive about embracing new technologies due to fear of job displacement, lack of familiarity, or concerns about privacy and security. Overcoming this resistance requires effective change management strategies and ongoing communication to address misconceptions and build trust among employees.

Furthermore, the rapid pace of digital transformation can lead to implementation fatigue, where organizations struggle to keep up with the multitude of projects and initiatives underway simultaneously. This can result in project delays, cost overruns, and ultimately, frustration among stakeholders who feel overwhelmed by the relentless cycle of planning, execution, and evaluation.

Combat Digital Transformation Fatigue

So, how can organizations overcome digital transformation fatigue and reignite enthusiasm for innovation? Firstly, it’s essential to adopt a strategic and phased approach to digital transformation, prioritizing initiatives based on their potential impact and feasibility. By breaking down transformation efforts into manageable components, organizations can reduce complexity and focus their resources on areas that will deliver the greatest value.

To combat digital transformation fatigue, organizations should focus on clear communication about the purpose and benefits of transformation efforts, ensure alignment with overall business strategy, and provide support and training for employees. Additionally, prioritizing and pacing digital initiatives to allow for absorption and assessment of impacts can help in managing change more effectively. Engaging employees in the transformation process and fostering a culture that values adaptability and continuous learning are also crucial steps in mitigating fatigue and driving successful digital transformation.

Content Marketing Services to Combat Fatigue

Here are two tools that marketers can utilize to effectively reach customers experiencing digital transformation fatigue:

Personalized Content: Implementing personalized content can significantly enhance engagement with customers who are experiencing digital transformation fatigue. By delivering relevant content, marketers can cut through the noise and capture the attention of customers who may be inundated with generic marketing messages. Personalization fosters a deeper connection with customers, increasing the likelihood of meaningful engagement and conversion.

Interactive Marketing Tools: Interactive marketing tools offer an innovative approach to combat digital transformation fatigue by providing immersive and engaging experiences that allow customers to actively participate in the marketing process, making it more memorable and enjoyable. By incorporating interactive elements into marketing campaigns, marketers can captivate audiences and differentiate their brand from competitors. Interactive marketing tools not only alleviate fatigue but also create opportunities for deeper brand interaction.

Strategies for B2B Sellers to Combat Customer Fatigue

Three effective strategies B2B sellers can employ to combat digital transformation fatigue when engaging with fatigued customers:

Focus on Value-Oriented Conversations: Instead of overwhelming customers with technical jargon or sales pitches, B2B sellers should prioritize value-oriented conversations that address the specific pain points and objectives of the customer. This approach resonates with fatigued customers who may be inundated with generic sales messages, as it demonstrates a genuine understanding of their concerns and offers relevant solutions. Sellers should highlight the immediate benefits and long-term value propositions of their offerings.

Provide Educational Resources and Support: B2B sellers can combat digital transformation fatigue by providing educational resources and support to help customers navigate complex technologies and solutions. This may include offering informative webinars, whitepapers, case studies, and training sessions that empower customers with knowledge and insights relevant to their industry and challenges. By positioning themselves as trusted advisors and thought leaders, sellers can build credibility and trust with fatigued customers, guiding them through the digital transformation journey and helping them make informed decisions.

Streamline the Buying Process: Simplifying and streamlining the buying process can alleviate digital transformation fatigue for customers by reducing complexity and friction. By minimizing bureaucracy and streamlining workflows, sellers can expedite the decision-making process for fatigued customers, making it more convenient and efficient to do business with them.

Benefits of Digital Transformation Consulting

Digital transformation consulting offers a myriad of benefits to organizations, helping them navigate the complexities of integrating digital technologies into all areas of their business. The primary benefits include:

1. Accelerating Digital Transformation: Consulting services provide expertise and guidance to accelerate the adoption of digital technologies, aligning them with business objectives for a competitive edge.

2. Improved Operational Processes: Consultants help streamline and optimize operational processes through digital solutions, leading to increased efficiency and reduced costs.

3. Enhanced Customer Satisfaction and Retention: By implementing digital strategies, businesses can offer improved customer experiences, leading to higher satisfaction rates and customer loyalty.

4. Increased Revenue, Sales, or Bookings: Digital transformation consulting can identify new revenue streams and improve sales processes, significantly impacting the bottom line.

5. Market Share Growth: Businesses can gain a competitive advantage and capture a larger market share by leveraging digital innovations and strategies.

6. Regulatory and Process Compliance: Consultants assist in ensuring that digital transformations comply with industry regulations and standards, mitigating risks.

7. Profit Margin Improvement: By optimizing operations and creating new revenue opportunities, digital transformation consulting can lead to better profit margins.

8. Support for Cloud Migration: Consultants provide expertise in planning and executing cloud migration strategies, essential for modernizing infrastructure and applications.

9. Cybersecurity Enhancement: With a focus on security, consulting services help protect digital assets and data, ensuring business continuity and trust.

10. Talent Management and Recruitment: Digital transformation consulting can also encompass HR processes, aiding in talent acquisition, management, and retention strategies.

Learn More About IDC’s:

Changes are occurring in the work environment that can no longer be ignored or dismissed with superficial comments like, “This is how things are evolving, so you need to accept them.”

In this day and age, the full employee experience package must be nurtured. Sharp attention must be paid to the demands of younger employees entering the work environment.

The statements above are some of the thought-provoking perspectives that technology end users voiced to IDC during deep-dive discussions at IDC’s Future of Work and AI Summit in London and our Future of Work Summit in Milan. During these events, both of which occurred in March, IDC held free-ranging conversations with more than 100 Italy- and U.K.-based IT and HR experts who work in industries including education, manufacturing, finance, and healthcare.

The talks revealed 8 Future of Work trends that are likely to impact workspaces in 2024 and beyond.

  1. Using Tech to Boost Productivity and User Experience in Hybrid Workspaces: The experts IDC spoke to supported greater technology adoption, including of intuitive technologies, to unlock productivity improvements and help employees close digital skills gaps. They emphasized the need for workplace cultural change, including clear communication to employees on the benefits of new technologies. The experts noted that hybrid working models will require organizations to redesign office spaces to enable digital parity between remote and onsite workers.
  2. Assessing AI’s Impact on the Workforce: The experts were generally of the view that AI and automation will make a positive impact on processes, employee productivity, and innovation. Organizations should make upskilling a priority, as new skills will be required to advance these technologies. Attention must also be paid to the EU’s new Artificial Intelligence Act, which demands greater transparency and traceability of AI initiatives, as well as contains requirements around removing bias that could be fed into large language models (LLMs).
  3. Ensuring Cybersecurity in Flexible Work Environments: Cybersecurity remains critical, especially for organizations that employ remote workers and/or employees who split time between working at the office and at home. IDC’s discussions pointed to the need to deploy multiple layers of safeguards, such as cryptography and virtual desktops, to safeguard data and assets connected to the organization’s networks. Regardless of their location (i.e., home or office), workers must be continually trained on cybersecurity and on how to protect IT and OT data in converged environments.
  4. Leveraging Data, Automation, and Innovation to Build Intelligent HR: When applications are being created, employees in different functions may not have the same understanding of the processes that need to be designed. A pivotal initial step to ensure user adoption is to make certain that all involved share the same understanding of goals and processes. The IT function, for example, should not spend time developing solutions that will not ultimately serve user needs efficiently and effectively. A complicating factor is that many organizations are still stuck with legacy solutions that hinder technological advancement. Governance is another challenge. Many organizations are struggling to develop and implement processes that guarantee clean and ready data for use in AI and GenAI applications.
  5. Fine-Tuning Hybrid and Flexible Work Models: Hybrid and flexible models require a high level of employer trust in workers’ ability to be productive if not in the office. Some of the experts IDC spoke to indicated that many in Italian senior management remain skeptical about the benefits of work-from-home policies and continue to demand that their workforces return to the office. On the workforce side, there is growing demand for objectives and detailed KPIs. In general, the experts regard hybrid and flexible working models to be at least as productive as office-only models — in some cases more so. Flexible working models can be critical to help ensure employee engagement, especially for those who are caregivers, a parent, or members of the younger generation.
  6. Boosting Employee Engagement and Retention: Companies can utilize multiple levers to improve employee engagement and retention. These include fostering in-office/in-person connections, team building, and providing clear and continuous feedback to employees from the top to the bottom of the organization. The role of technologies in such initiatives is pivotal. Employees, for example, are usually happier and more engaged if they are satisfied with the technologies used in their workplace. The experts at our meetings also told us that the expectations of the incoming generation of workers are driving organizations to reshuffle their employee engagement priorities and requirements.
  7. Connecting the Future of Work and Sustainability: Organizations in the U.K., Ireland, and Italy are increasingly responsive to environmental, social, and governance (ESG) priorities. Much effort and resources are being invested in the “E” component as companies act to shrink their carbon footprints, for example, by shifting to more carbon-neutral cloud solutions. Initiatives connected to the “S” component are raising organizational awareness of issues like gender parity, inclusion, digital accessibility, and community commitment. “G” components focus on the R&D and implementation of technologies to collect and analyze reporting data. To meet their ESG commitments efficiently, companies are seeking to onboard sustainability experts across all organizational levels.
  8. Analyzing How Skills and Talent Are Evolving: Organizations continue to struggle to find employees with the skills to help the company stay abreast of new technology and innovations. On one hand, we see AI boosting productivity and making some tasks and jobs obsolete. On the other, there is rising demand for humans with the “hard” technical skills to effectively manage AI and connect AI with humans. Demand is also rising for humans who possess the “soft” skills to manage the creativity and needs of human employees. Employees who can effectively fulfill these roles will be highly valued and rewarded.

 

Many of the above points are succinctly summarized in IDC’s Human-First Future of Work Framework, which is based on five pillars that are essential for any business seeking to build a sustainable, human-first work environment.

Interested in a deeper understanding of the issues discussed here? Contact IDC’s Future of Work Team or connect with us on LinkedIn for live updates from the EMEA Xchange Summit in Malaga on April 15–16, 2024.

Erica Spinoni - Senior Research Analyst, European Research - IDC

Erica Spinoni is a senior research analyst for the European Research Team. Based in Milan, Spinoni supports IDC’s European Digital Business Strategies and IDC’s European Future of Work practices. In her role she advises ICT players on European digital business and future of work market trends, supporting them in their planning, go-to-market and sales cycles with market research, custom projects, as well as honoraria.

With companies across industries and regions jumping on the AI bandwagon, AI – including GenAI – has gained a lot of steam in the past few years. However, CEOs and CIOs express low confidence in the maturity of the technology provider community in understanding the risks associated with AI usage.

IDC CEO Survey 2024 shows that a little less than half of the 354 CEO (45%) surveyed feel that technology vendors do not completely understand the downside risk potential of AI. This sentiment was echoed by about two-thirds of the CIOs surveyed as part of IDC’s recent CIO Quick Poll, which was conducted in January 2024.

C-Suite Perspectives: Strategizing risk management will be key to success in the age of AI everywhere

Downside risk potential is defined as the likelihood of negative outcomes or adverse consequences associated with a particular decision or investment. In terms of AI, this translates into the following key risk categories:

  • Security and data related risks – Cybersecurity threats and data breaches are risks associated with AI, especially in instances where the models have access to sensitive company data and customer’s personal data.
  • Environmental and social impact – While the high energy consumption of AI systems can potentially harm the environment by way of increased carbon emissions, large-scale automation of business processes can reduce the need for human intervention in some functions and industries, resulting in higher rate of unemployment.
  • Governance – Having a foundational AI governance framework to regulate the use of AI is essential as the lack of understanding and transparency into how AI algorithms are developed and how the models evolve over time can raise concerns around data bias and exploitation. There have also been cases of hallucinations, which have prompted questions around the credibility and accountability of AI in business decision-making. Similarly, instances of reidentification attacks on anonymized personal data have sparked conversations around the ethical aspect of using AI on sensitive and confidential data.

With widespread adoption of AI across multiple business functions and use-cases, the need to identify risks and devise effective strategies and programs to address them has emerged as a critical business requirement. In fact, CEOs surveyed in 2024 cited improving the organization’s risk management posture as the second biggest priority this year.

In the absence of a comprehensive risk mitigation strategy, organizations will struggle to reap the true benefits of AI and leverage it confidently to inform their business decisions. In such a scenario, technology providers can play a pivotal role to support and guide their efforts. But first, they will need to build credibility as experts and trusted AI advisors by focusing on the following critical factors:

  • Transparency – By building transparency in how AI models are trained and providing information on data processing & storage, vendors can boost confidence in their solutions. Reducing opaqueness of the AI system’s operations will also help address concerns around data bias and discrimination.
  • Trust – Focusing on explainability of the AI model’s decision-making process is necessary to establish trust in the system’s output and boost customer’s confidence to leverage it for business decision-making.
  • Compliance – Another critical aspect to consider is the technology supplier’s adherence to prevalent data security and privacy regulations, as well as ESG mandates. This will not only address the requirement for regulatory compliance, but also reflect the vendor’s commitment towards promoting societal well-being and responsible use of AI.

AI has captured the attention of CEOs and the entire C-suite in enterprises. AI offers great potential for fostering automation and innovation. However, being in its early stages, it also brings risks and challenges that are still being explored by the industry.

Organizations looking to adopt AI stand to gain by collaborating with technology providers and leveraging their deep industry knowledge and technical expertise to demystify the challenges and effectively address them. Technology providers must commit to building customer trust by enhancing the transparency of their systems and ensuring adherence to prevalent regulatory standards and mandates.

For more information on the CEO Tech Survey, register for IDC’s webinar “CEO Perspectives: Leading in the Age of AI Everywhere”, Wednesday, April 10 at 12 pm EDT.

Don’t miss this opportunity to stay ahead of the curve and make informed IT decisions.

Nupur Singh Andley - Research Manager, Digital Business and AI Transformation Strategies - IDC

Nupur is Research Manager for IDC’s Digital Business and AI Transformation Strategies program. Her research examines the current trends in C-Suite technology objectives and purchase drivers, and offers guidance for technology vendors, IT experts, and business leaders to design and implement their technology strategies effectively.

Looking back at the IDC FutureScape: Worldwide CIO Agenda 2024 Predictions – Implications for Asia/Pacific (excluding Japan) that I co-wrote, and given the continued acceleration of technological evolution that are presenting opportunities for organizations, I find myself asking the question – if I were a CIO, what would I have done by now and what should I do next?  

Foster Culture, Support People, Embrace Innovation 

As tech leaders, CIOs are instrumental in leading people through change. If I am a CIO, I will cultivate my employee’s people skills to complement their technical expertise. Effective communication, empathy, and collaboration are now more important than ever in fostering a positive work culture. Technology may be the tool, but people are the heart and soul of any organization. 

Three months into 2024, I would have by now established strategic alignments with my team and peers, leading a mindset shift to ensure we do not just talk about changes but have concrete plans for implementing changes. 

I will also continue to increase the technology skills of my employees, particularly around AI. In IDC’s CEO Survey 2024, 60% of CEOs think their organizations do not have the necessary advanced technological skillsets key to having an AI roadmap. Additionally, when asked about the most critical success for CEOs, people leadership and change management capabilities is top of the agenda with close to 40% saying so in the poll results.

My next key step will be to define, invest in, and rollout training and development programs that focus on upskilling or reskilling. Continuous innovation will be at the top of my organization’s strategy. Dedicated innovation teams or initiatives within the organization will be created to explore new technologies and experiment with different approaches. 

AI, being one of the most transformative technologies to come along in a long time, will be carefully considered and planned alongside key stakeholders validating key use cases. The approach needs measurable outcome of the benefits around AI, given the fact that it makes some people excited, others fearful, and a handful of others uncertain and skeptical. This is especially so when they think about what AI means for them and their job security.

By 2028, 80% of CIOs will leverage organizational changes to harness AI, automation, and analytics, driving agile, insight-driven digital businesses.

When CEO’s were asked, IDC’s 2024 CEO Survey resonate with this and state that 75% of them agreed that AI will be key to drive differentiation and growth for their organization over the next 12 months. 

With the constantly emerging trends on AI, cybersecurity, and digital transformation, there is even greater need to inspire my team to understand and embrace these to drive positive changes. As CIO, my role is to ensure continuous innovation and alignment with corporate strategy.

Digital First Capabilities – Automation / Artificial Intelligence / GenAI 

Inevitably, by now as a CIO, I would have already considered automation in one form or another to simplify and automate repetitive tasks. I will question our automation initiatives and strategies to effectively plan our direction.

Unlike other organizations that have GenAI in their roadmap or plans, for me, GenAI is not just another tech buzzword. I will lead my organization’s GenAI initiatives with specific desired outcomes to meet business goals in mind. I will be aware that GenAI use cases are predominantly unique to different organizations across industries and that in its early stages, these will present both opportunities and risks if not managed ethically.

According to IDC’s Future Enterprise and Resiliency Spending (FERS) Survey, only a third of enterprises are investing significantly in GenAI and another third are very much in a piloting phase.  

As a CIO, I would review plans on automation and GenAI technologies against relevant use cases and explore pilot projects early, to test their potential impact and value to the organization. I will bear in mind that it is key to start small and iterate quickly, scale it up when confidence in our capabilities is gained. I will leverage our partnership with our solution provider to help to guide and shape our AI roadmap quickly in its early stages. 

Double Down on Data-Driven Decision Making 

It was once said that data is the new oil and I think that is still largely true. Like oil, data needs to be refined, processed, and analyzed to unlock its full potential. Those who can harness it effectively will stand to gain significant advantages in their targeted industries.  

The rise of GenAI has taught us that the supremacy of data will generate and create differentiated value. An organization’s capability to leverage these advantages will allow them to leapfrog the competition. However, concerns about data privacy and security remain key topics around the collection and utilization of data.  

In IDC’s CIO Poll 2024, at least 40% of organizations do not plan to disclose the data they will use to train their AI models. This means there will be much-needed investment in skills and analytics tools to harness the power data, enabling the organization to extract actionable insights.  

Similarly, use cases are critical in prioritizing data and data models. But, to establish enterprise scale, a solid governance foundation will be required to significantly influence external provider/partner decisions.

As CIO, I will make sure to build the necessary infrastructure, network, and relevant technologies and capabilities around AI. This means implementing a robust data analytics strategy and exploring key considerations for an AI-ready infrastructure for both public and private AI. 

Continuous Driving in the Co-Pilot Seat

While digital transformation remains a top priority for organizations seeking to stay competitive in today’s digital economy, as CIO it’s important that I master the conversation around AI as it has evolved into a necessity in 2024 and beyond. Cultivating people skills, empathy, communication, collaboration, and partnerships will no longer be just nice to haves but essentials in building stronger teams that will ensure business success.

Franco Chiam - Vice President - IDC

Franco Chiam is the vice president for IDC's Asia/Pacific (excluding Japan) Cloud, Datacenter, Telecommunication, and Infrastructure Research Group. He manages and shapes the above domains' offerings to IDC clients, which include cloud and infrastructure surveys, market analysis and perspective, speaking engagements, and executive briefings. In the ever-evolving landscape of technologies, the pillars of cloud computing, datacenters, and telecommunication have emerged as the driving forces behind our interconnected world. As these domains continue to shape the future of infrastructure, their integration and advancement play a crucial role for the foreseeable future.

The idea of a New India has inspired a great deal of confidence and optimism among all Indians in recent years. Our ability to take a confident, independent stance on multiple issues in the global and regional political theatre, register exceptional sporting achievements (including in the Olympics), and complete a successful global-first landing on the south pole of the moon are just a few of the reasons for us to believe that a New India is finally emerging.

India’s economic transformation that is currently underway, driven in significant measure by its rapid digitalization, is another shining example of a New India that is evolving.

The current government has actively pushed for a digital economy and digital delivery models before the Covid-19 pandemic forced countries and organizations across the world to go digital. The Digital India mission was launched in 2015 and saw a revolution in the delivery of public services being ushered in by the Indian Government.

It also initiated the India Stack, a unique platform for different constituents of the economy to leverage for growth. This mission led to new business models in critical industries such as agriculture, transportation, healthcare, and education – all of which are undergoing fundamental transformation. This digitalization cut down leakages in the system and enabled formalization of the economy, with rising GST registrations and collections serving as a good benchmark of its success.

The India Stack has been a game changer as individuals and enterprises leverage it for convenience, speed and efficiency, the combination of which will drive greater velocity of business. As India (and the world) moves to digital, this underlying, enabling digital infrastructure is having the same effect as railroads did after the Industrial Revolution.

India Stack has led to an exponential and cascading effect on different sectors of the economy and driven growth opportunities for citizens. Jan Dhan Yojana, Cowin, UPI and ONDC are some of the world leading examples of digital at scale. Financial institutions and organizations in the wider financial ecosystem have probably been the strongest adopters of the India Stack, driving financial inclusion and bringing significant ease in adoption of financial products.

As an example, Pradhan Mantri Jan Dhan Yojana (PMJDY) accounts grew three-fold from 147.2 million in March 2015 to 462.5 million in August 2022, covering a large segment of the unbanked population.

In response to the increased opportunities digitalization provides, we see widespread usage of the India Stack by enterprises especially in the B2C domain. This underlines the immense benefits it provides Indian citizens.

In fact, the government’s push for digital has been so compelling that in the IDC’s recent Digital Business Survey (Aug 2023) in India, 25% of medium to large enterprises said that the government’s push towards digitalization was one of the key factors in their adoption of a digital business model.

IDC defines a digital business as one where value creation is based on the use of digital technologies which includes internal and external processes; how an organization engages with customers, citizens, suppliers, and partners; how it attracts, manages, and retains employees; and what products, services, and experiences it provides.

It is encouraging to note that Indian enterprises do not significantly lag behind global peers in digital adoption. This is in large part thanks to our strong developer community and traditional strength in IT services. IDC’s survey also indicates that CEOs drive the digital strategy in more than a third of Indian companies today.

To advance the digital agenda forward, another 25% of Indian enterprises have instituted new designations such as Chief Digital Officer and Chief Data Officer in the last two years. Enterprises realize that digital business models help drive operational efficiencies, enable enhanced decision making, increase competitive advantage, and most importantly, meet customer expectations.

This digital embrace is not the preserve of enterprises alone though. The Indian consumer has also adopted it enthusiastically. With 850 million Internet subscribers, 1.1 billion mobile subscribers (of whom 630+ million are smartphone users), and 398 million engaged on social media – India already has a connected population. And, this connected population is adopting to digital. Digilocker has more than 137 million users, UPI has 300 million active users, and COWIN has registered 1.1 bn registered persons.

With enterprises and consumers adopting digital actively, it is clear that India’s shift to digital is real, irreversible and widespread. The Honorable Minister of State for IT & Electronics, Shri Rajeev Chandrasekhar recently stated that the digital economy will contribute to 20% of India’s GDP by 2026.

IDC is similarly bullish about India’s digital prospects. Two years back, 34.8% of Indian businesses told IDC that 50% or more of their revenues came from digital business models. Today, that number is 50% and in three years time IDC expects 62% of Indian enterprises will derive more than 50% of their revenues from digital business models. For these reasons, the future of New India is digital, and bright!

Digital-native businesses’ (DNBs) deal-making, valuations, and exit activities were all down in 2023 in the European venture market, according to Atomico’s The State of European Tech 2023. A market return to form that, however, can be considered a worldwide phenomenon.

The key fundamentals that led to a downturn in the funding environment in the last two years are still in place. Limited partners are still cautious about providing more money to the venture capital (VC) ecosystem, due to persisting macroeconomic and geopolitical uncertainties. With difficulties continuing in the funding environment, the number of exits is expected to remain limited in the short term, in favor of M&A and consolidation.

With all this as a backdrop, what will 2024 look like for European DNBs?

From AI to Sustainability Technologies: Where Is the Money?

European venture capitals hold a consistent amount of dry powder due to this lack of activity, which could be invested in selected deals this year. A 2024 rebound is expected in the event of a cut in interest rates, which could lower risk perception from limited partners. If only 10 new unicorns (privately owned companies with valuation above $1 billion) were created in Europe in 2023, down from 46 in 2022, with an upturn in deal-making activities we expect a larger number of DNBs to join the unicorn cohort.

European Artificial intelligence DNBs are expected to be at the forefront of investors’ interest again in 2024. As focus on deals from VCs and corporate VCs in 2023 was on large language models (LLMs), deals will most probably shift toward AI vertical applications. With regulations such as the EU AI Act coming into effect, investment will also shift toward start-ups and scale-ups focused on AI security and privacy.

Sustainability technology DNBs, from carbontech to climatetech, dominated capital flows in 2023, and the segment is expected to attract more capital in 2024 too, with climate change a key topic on European (and worldwide) leaders’ agendas, as demonstrated by the outcomes of COP23. Furthermore, tech start-ups growth in Europe is also sustained by national and EU stimulus funds, such as the European Innovation Council (EIC) work programme 2024, which allocates €1.2 billion for strategic technologies and scaling up companies in deep tech innovations, from spacetech to quantum technologies.

How Will External Conditions Shape European DNBs’ Technology Investments?

Uncertain market conditions push digital natives to reprioritize their tech spending toward optimizing processes and increasing profitability, but tech expenditure will not be cut, as it is essential to sustain their digital-based business models. More specifically, security technologies and cloud platforms are pivotal investments to develop secure and scalable digital products and services, whereas increased focus on AI and automation technologies is set to make larger DNBs leaner and more cost effective. Data infrastructure, integration, and quality investments would be still pivotal to boost wider AI adoption, targeting customer experience initiatives as well, with the aim to retain and enlarge the existing customer base.

Want to know more? You can find these and other key trends driving the European DNB landscape, in IDC’s 2024 Digital-Native Business Trends or by getting directly in touch at mlongo@idc.com.

Martina Longo - Research Manager, Digital Business - IDC

Martina Longo is a research manager in the IDC Digital Business Research Group. In her role she advises ICT players on how European organizations create business value using digital technologies. She also leads IDC European Digital Native Business research, focused on those enterprises born in a modern technological world in a mix of start-ups, scaleups, and more mature digital natives. Within the European Digital Business Research, the European Digital Native Business, Start-ups and Scale-ups theme advises technology suppliers on the market dynamics and segmentation, business priorities, tech buying patterns and go to market approaches (sell to/sell with) needed to engage digital native organizations in Europe.

If I told you the single most effective step your business could take to improve cybersecurity is to stop using passwords, you might think I’m crazy. It’s sort of like saying that the best way to make your car faster is to remove the tires, or that swearing off vegetables is key to losing weight.

But the reality is that by many measures, passwords are past their prime. There’s a better solution – passkeys – and organizations looking for ways to optimize their security stances would do well to consider passkey-based authentication in contexts where it makes sense.

That said, passkeys remain subject to a variety of challenges, which make it unrealistic for most businesses to shift entirely to passkey-based logins in the near future.

Plus, as passkeys grow in popularity, it will be increasingly important for business decision-makers to distinguish between hype and reality when it comes to passkeys. Expect to hear more and more in the near future about how wonderful passkeys are – especially from vendors who sell passkey solutions – but don’t assume that passkeys are preferable to passwords for every use case and circumstance.

With those realities in mind, here’s a balanced look at the pros and cons of passkeys, along with tips on when and how to take advantage of passkeys as part of your business’s authentication strategy.

What are passkeys?

Passkeys are a way of authenticating with a website or app without requiring a username and password. Instead, passkeys confirm a user’s identity using methods like biometric authentication or the entry of a PIN code.

Under the hood, passkeys rely on a set of keys – one public and one private – that are generated for each user. The user’s public key is shared with a website or app to which the user wants to log in. The private key is stored only on the user’s personal device (such as a phone or laptop).

To authenticate with a website or app, the user must unlock his or her private key from the device where it resides. Typically, the method for unlocking the key involves biometric authentication (like scanning the user’s face or fingerprint) or the entry of a unique PIN code that the user configured when setting up the passkey.

Advantages of passkeys vs. passwords

Compared to password-based authentication, which has been widespread for decades, the benefits of passkeys boil down to two main advantages:

  • Greater convenience: Passkeys are more convenient for users, who don’t have to remember login names or passwords to login.
  • Enhanced security: Passkeys improve security because, unlike passwords, they cannot be guessed or brute-forced by attackers (at least in most cases). In addition, because private passkeys reside only on users’ personal devices, passkeys eliminate the risk that threat actors could hack a server or database containing passwords and usernames, then use the information to compromise user accounts.
  • Spoofing/phishing protection: Passkeys mitigate spoofing and phishing risks because a user’s private key must be paired with the public key of a specific site or app when logging in. Therefore, attempts to trick users to log into malicious sites masquerading as legitimate ones won’t work, because the malicious sites won’t have the same public keys as the legitimate sites they are impersonating.

For these reasons, passkeys are a growing focus of identity and authentication providers like Okta and Microsoft, according to recent IDC research. Businesses that use authentication products or services from vendors who have added passkey support can make passkey-based logins an option – or a mandatory requirement, if desired – for their employees and customers.

The pitfalls of passkeys

On the other hand, passkeys are not perfect. They are subject to several distinct drawbacks that could hinder the ability of enterprises to adopt passkeys in certain situations:

Websites and apps may need to be updated to support passkeys

Sites and apps that are already configured to integrate with third-party authentication providers who support passkeys can add passkey-based logins relatively easily. Otherwise, however, businesses will need to overhaul the authentication logic in their apps to make passkeys viable for employees and customers – a process that takes time and money.

Passkeys are tied to devices

Because passkey-based authentication depends on access to private keys stored on specific devices, it’s not a good option for use cases where it’s difficult to predict which device an employee or customer will use to log in. For instance, if a customer sometimes connects to your site using a mobile phone but also uses a personal laptop or work laptop, they’d need to configure separate passkeys.

The passkey vendor ecosystem is fragmented

To date, most solutions for configuring and managing passkeys work only on certain operating systems, devices or vendor ecosystems. For example, Apple’s offerings do not support Android devices.

Passkeys only support certain devices and operating systems

Passkey-based authentication also only works on devices and operating systems designed to support it. Older devices are likely not to be compatible which could create confusion among users about which devices are supported

Passkeys can be hacked

Passkeys are substantially more secure than passwords, but they’re not impervious against attack. Sophisticated threat actors who manage to obtain physical access to devices may find ways to work around biometric authentication or guess PIN codes in order to access passkeys stored on the device.

These types of attacks are much more challenging to carry out than conventional techniques for bypassing passwords, and to date, no major breach has occurred involving stolen passkeys. But they are plausible nonetheless.

Enterprise security policies don’t accommodate passkeys

Currently, most enterprise security policies that govern authentication and authorization were not designed with passkeys in mind. Enterprises will therefore need to update their security policies (and associated security practices).

This is feasible, but updating security policies is likely to take some time, delaying enterprise passkey implementation.

A long horizon for passkey adoption

The nature of passkeys, and the challenges surrounding their implementation, mean that very few businesses are likely to migrate exclusively to passkey-based authentication anytime soon. To get to that point, organizations would need to overhaul all of their websites and applications to support passkeys

In addition, identity and authentication management vendors would need to make passkey-based authentication a first-class citizen within their solutions. To date, few have done that, although it’s reasonable to expect that this will happen over the next two or three years.

When businesses should – and should not – use passkeys

Rather than approaching the question of “to passkey or not to passkey” as an either-or, binary choice, organizations should be thinking at present about specific situations where it does and doesn’t make sense to adopt passkeys as a primary means of authentication.

In general, shifting to passkeys is a good strategy for websites and applications that have well-defined sets of users with predictable behavior. If you know that the employees or customers who need to access a certain resource typically log in using specific types of devices, and they access those resources frequently, asking them to set up passkeys is reasonable – especially if the website or app already integrates with an identity management service that supports passkeys.

On the other hand, it’s harder to make a case for switching to passkeys in situations where the cost, complexity and hassle of configuring and maintaining them – from the perspective of both the business and users – outweigh the benefits. For example, legacy applications that can’t integrate with authentication services offering built-in passkey support are likely not worth updating just to enable passkey logins. Likewise, if you have a group of customers who access a website only a few times, they may view passkey requirements as more trouble than they’re worth.

Learn more about passkeys in the enterprise

Passkeys remain a fast-evolving topic as more and more identity and authentication management providers embrace the concept of passwordless logins, and as enterprises continue to evaluate use cases for passkeys.

IDC is following this scene closely and will be unveiling multiple resources in the coming months to offer actionable guidance on how enterprises can (and can’t) benefit from passkeys. To learn more – or to request access to IDC assets and analysts focused on passkey authentication – contact us.

If you’re interested learning more about IDC’s guidance around cybersecurity, watch the on-demand webinar, Cybersecurity Norms and Trends: How Does Your Business Stack Up?, by clicking the button below.

Christopher Tozzi - Adjunct Research Advisor - IDC

Christopher Tozzi, an adjunct research advisor for IDC, is senior lecturer in IT and Society at Rensselaer Polytechnic Institute. He is also the author of thousands of blog posts and articles for a variety of technology media sites, as well as a number of scholarly publications. Prior to pivoting to his current focus on researching and writing about technology, Christopher worked full-time as a tenured history professor and as an analyst for a San Francisco Bay area technology startup. He is also a longtime Linux geek, and he has held roles in Linux system administration. This unusual combination of "hard" technical skills with a focus on social and political matters helps Christopher think in unique ways about how technology impacts business and society.

Sales success today goes beyond simply offering a superior product or service. It demands a strategic approach that encompasses understanding market dynamics, addressing customer needs effectively, and mastering the art of persuasive communication. At the heart of this approach lies the sales playbook, a comprehensive guide that not only outlines the path to success but also equips sales teams with the tools and strategies needed to navigate the intricacies of the modern buyer and marketplace.

The sales playbook serves as the cornerstone of a company’s sales efforts, providing a roadmap for engaging potential customers and driving revenue growth. It is more than just a static document; it is a dynamic resource that evolves alongside market trends and customer preferences.  A well-crafted sales playbook encapsulates the collective wisdom and experience of a sales organization, distilling best practices, proven strategies, and invaluable insights into a single, cohesive framework.

In essence, the sales playbook serves as a compass, guiding sales professionals through the complexities of the sales process and empowering them to make informed decisions at every turn. From identifying promising leads to closing deals and nurturing long-term relationships, the playbook provides a blueprint for success at every stage of the customer journey.

However, creating the perfect sales playbook is no small feat. It requires a deep understanding of market trends, customer behavior, competitive landscapes, and the ever-evolving role of technology in driving sales effectiveness. It demands meticulous planning, careful analysis, and a willingness to adapt and innovate in the face of change.

In this blog post, we will address the essential components of a modern sales playbook, exploring four key building blocks that underpin its success. Whether you’re a seasoned sales professional looking to refine your approach or a business leader seeking to empower your sales team for success, this blog post will provide you with the knowledge, tools, and inspiration you need to create a sales playbook that sets your organization apart in today’s competitive marketplace.

Building Block 1: Understanding Market Trends and Drivers

The foundation of any successful sales playbook lies in a deep understanding of market trends. By analyzing industry data, competitor strategies, and emerging technologies, sales teams can identify opportunities and anticipate shifts in customer preferences. Tools such as market research reports, industry publications, and data analytics platforms can provide invaluable insights into market dynamics.

Market trends encompass various aspects, including changes in consumer behavior, evolving regulatory landscapes, and emerging technologies. Sales teams must stay vigilant and adapt their strategies accordingly to capitalize on new opportunities and mitigate potential risks.

Building Block 2: Identifying Challenges and Needs

Effective selling begins with a thorough understanding of the challenges and needs facing your possible customers. Understanding common challenges and pain points, on a persona level, allows sales professionals to customize messaging and solutions to meet their audience’s specific needs.

60% of survey respondents say they won’t engage/respond to outreach unless communication is personalized for relevancy.

IDC 2023 B2B Technology Buyer Survey

While many sales teams often prioritize discussing price as a determining factor, it’s essential to recognize that various roles within organizations weigh multiple considerations beyond fiscal budgets. In a 2023 IDC B2B Technology Buyer Survey, it was revealed that product innovation from category market leaders was the primary reason for customer switching. This underscores the importance of understanding challenges and needs at a persona-level to facilitate relevant conversations that resonate with potential customers.

Building Block 3: Relevance and Customer Value

Technology serves as a cornerstone in shaping business processes. However, the true measure of success lies in demonstrating how YOUR technology precisely meets the needs of the individual persona you’re addressing within their unique position in the buying center.

A robust playbook should empower sales teams to quickly grasp and articulate current market dynamics, prevalent challenges, and how their technology directly alleviates common pain points. It’s imperative to integrate a value-selling approach that highlights the tangible benefits and reliable return on investment (ROI) that your technology offers to customers.

By emphasizing the specific value propositions and ROI metrics associated with your technology, sales professionals can effectively communicate its relevance and significance to potential buyers. However, it’s crucial to recognize that value varies for each persona based on their role and objectives within the buying center. Leveraging solutions that account for persona-specific needs during research and the development of sales enablement tools empowers sales teams to engage in more accurate conversations with potential customers. This tailored approach fosters authentic relationships and enhances engagement while instilling confidence in the solution’s capacity to address pressing needs and deliver measurable results.

Incorporating detailed information about value selling and proven ROI metrics into the sales playbook equips teams with the tools and knowledge they need to navigate complex sales cycles successfully. It enables them to tailor their messaging and pitch strategies to resonate with the priorities and objectives of each persona within the buying center, ultimately driving stronger relationships and more meaningful conversions.

Building Block 4: Crafting Key Questions and Hooks

The art of selling lies in asking the right questions and delivering compelling value propositions that resonate with prospects. A well-crafted sales playbook should equip sales professionals with a set of key questions and hooks designed to uncover customer needs and differentiate their offerings from the competition.

Key questions should probe into the pain points, goals, and priorities of prospective customers. By actively listening to customer responses and empathizing with their challenges, sales professionals can tailor their solutions to address specific needs and add value.

Hooks are persuasive messages or value propositions that capture the attention of prospects and differentiate the offering from competitors. Whether it’s highlighting unique features, showcasing customer testimonials, or offering exclusive incentives, hooks should resonate with the target audience and compel them to act.

Sales Enablement Tools to Support Your Success

Sales enablement tools play a pivotal role in supporting the success of sales teams as they navigate the complexities of the modern marketplace. These tools provide invaluable resources that build new sales skills and engage prospects in a more compelling buying experience.

Ultimately, while a sales playbook serves as a valuable tool for navigating the sales journey, success hinges on thorough preparation and ongoing training. Just as in a marathon, adequate training beforehand is essential for optimal performance. Invest in sales enablement tools that equip your sales team with the knowledge and skills they need to excel, such as sales mastery classes, educational workshops, or online coaching programs. By prioritizing education and skill development, your team will be well-prepared to engage prospects in informed and meaningful conversations, ultimately increasing their effectiveness and success rates.

Creating the perfect sales playbook requires a comprehensive understanding of market dynamics, customer needs, technology trends, and persuasive communication strategies. By leveraging tools and methodologies across these four building blocks, sales enablement and business development leaders can develop a playbook that empowers them to engage prospects effectively, drive meaningful conversations, and ultimately, win more business.

Sales playbooks should be living documents that evolve in tandem with market trends, customer feedback, and technological advancements. By continuously refining and optimizing their sales strategies, organizations can stay ahead of the curve and achieve sustainable growth in today’s competitive marketplace.

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