New Research

Summary

This IDC study discusses how utilities are on a mission to digitally transform to create a value-based utility system. IDC publishes research on digital transformation and its influence on technology spending. This research includes both quantitative research in the form of market forecasts and qualitative research that assists technology buyers in making better decisions as well as technology vendors in better serving their customers.

"As an organizing principle for this substantial research effort, IDC has created a use case taxonomy for digital transformation for multiple industry segments. The taxonomy follows a hierarchical structure that begins with the digital mission of that industry, the strategic priorities that support that mission, the programs that will be initiated to satisfy the priorities, and the funded projects, or use cases, that will be implemented under those programs. The taxonomy not only forms the basis for our market forecasts but also provides the framework for digital journey maps that will assist our clients in understanding the full scope of enterprise efforts." — John Villali, research director, IDC Energy Insights

Summary

This IDC Survey presents data from the Future Enterprise Resiliency and Spending (FERS) Survey, Wave 6. For the past three years, we have fielded the FERS Survey monthly to gauge how organizations in every industry are investing in IT. In the face of constant change and disruption, organizations realize they must have a digital platform of services to enable their internal enterprise processes as well as the external work they do with their industry ecosystem partners.

Wave 6 of the 2023 FERS Survey has a focus, in part, on industry ecosystems. That is, how organizations work with their partners to forge new business models around sharing data, sharing and codeveloping applications, and sharing operations and expertise. This IDC Survey provides a view and analysis of data from this survey on the following questions:

• What are the top initiatives for your industry ecosystem?
• Which areas do you apply a blend of physical and digital working together —systems, products, processes, and services?
• Where will you apply AI, ML, and GenAI across your industry ecosystem?

The analysis includes cuts of the data by industry as well as geography (worldwide and by North America, Western Europe, and Asia/Pacific).

Summary

This IDC Market Glance offers a high-level view of the emerging generative AI (GenAI) technology and services landscape. It highlights key technologies in infrastructure, foundation models, GenAI platforms, GenAI applications, and GenAI services. IDC defines generative AI as a branch of computer science that involves unsupervised and semi-supervised algorithms that enable computers to create new content using previously created content, such as text, audio, video, images, and code.

Summary

This IDC Survey is focused on the architecture, construction, and engineering (AEC) industry. AEC organizations realize that a key reason for digitizing their design, preconstruction, project, engineering, and operations work is to connect a diverse ecosystem of resources, including architects, cost estimators, suppliers, project managers, MEP engineers, EPC companies, and owners. Our data shows that having a cohesive, unified industry ecosystem is critical for the quality, safety, and profitability of any given construction project.

In May and June 2023, we fielded our third-annual global survey to 1,288 executives across 5 regions and 11 countries. The goal was to determine executive and business leader sentiment on industry ecosystems, maturity of current approach, and future plans for IT and use case investment. Respondents spanned multiple domains including CXO, business line leadership, and IT management. Industry coverage is across nine industries: architecture/engineering/construction, energy, discrete and process manufacturing (and sub-industries), healthcare, life sciences, financial services, retail, and government.

Key findings from the survey include:

• Improving end customer engagement is a primary driver of industry ecosystems
• AI is growing in importance as a key decision support technology in industry ecosystems
• Environmental sustainability remains a key initiative for industry ecosystem partners

What is clear is that organizations in every industry are looking to open and expand their industry ecosystem as part of becoming a digital-first business. Shared data and insights, shared applications, and shared operations and expertise are enhanced with this approach — becoming not only a way to ensure flexibility and resiliency but also a way to grow revenue and profitability.

Summary

This IDC Market Presentation analyzes the industry cloud offerings from hyperscale cloud vendors as a category, and further it offers a detailed profile and scores for each of the six industry cloud vendors, including Alibaba Cloud, AWS, Google Cloud (GCP), IBM Cloud, Microsoft, and Oracle. Based on the results from the recently completed IDC's 2023 Industry CloudPath Survey, we examine the hyperscalers' industry cloud offerings through the lens of the Six Pillars of Industry Cloud Framework. The survey asked users to share their industry cloud experiences, including priorities, vendor ratings, and spending levels on vertically focused solutions.

Summary

This IDC Perspective focuses on the people dimension of IDC's April 2023 Future of Industry Ecosystems MaturityScape Benchmark Survey. We explore results from this survey, as well as the potential impact of AI on ecosystems.

"Filling the digital skills and resource gaps that we know exist in every industry, across business and IT roles, is one of the top reasons why organizations are opening and expanding their industry ecosystems. Essentially, they are looking for access to on-demand capital to support and enable effective and efficient operations, innovation, and customer support," said Jeffrey Hojlo, research vice president, Future of industry Ecosystems.

Summary

This IDC Market Perspective introduces a framework that highlights the path to organizational impact for generative AI. This framework helps organizations work through the key activities that need to be established, illustrates the core technologies required, and proposes how organizations should think about new use cases to deliver organization impact. The report also shows how GenAI will reshape existing technology markets and create new ones over the coming decade, explains how enterprise investment in GenAI will drive value to different types of vendors, and provides guidance for vendors about how to position themselves for success.

"The technology industry stands at a seminal moment with the introduction of generative artificial intelligence (GenAI). In nine short months, GenAI has simultaneously captured the attention, imagination, and concern of most technology and business leaders across the world," said Bob Parker, SVP Research, IDC. "However, questions remain as to how investments will be allocated, how technology markets will adapt, and where the greatest value will be captured."

Summary

This IDC PlanScape provides business and technology leaders with a background on where generative artificial intelligence (GenAI) technologies are in their evolution and the set of characteristics needed to develop an AI strategy to transform their business into an AI everywhere future. It defines GenAI and why it is a critical technology for the future, identifies key activities that are foundational to investing and using GenAI, walks readers through how to prioritize GenAI use cases for success, and identifies the stakeholders needed to realize the value of GenAI today and over a three-year horizon.

"As the industry moves forward with this fundamental transition to AI embedded into every business and technology function in the enterprise, IDC believes that every CEO will need to have an AI strategy — and generative AI is the trigger," said Phil Carter, group vice president, Thought Leadership research at IDC. "It is best to get started quickly. We are hopeful that this framework will help every organization develop their own 'path to impact.'"

Summary

This IDC study discusses how asset-oriented value chains (chemicals, metals, and pulp/paper) are on a mission to digitally transform to develop a model for collaborative innovation.

Reid Paquin, research director, IT Priorities and Strategies, IDC Manufacturing Insights, said, "Rising economic pressures are causing AOVC value chains to rethink their priorities and how to utilize digital technology to optimize performance. The first step every organization should take is to formulate a common definition of their mission, strategic priorities, and programs so that individual projects or use cases support overall business objectives."

Summary

This IDC Survey features our third annual global survey of 1,288 executives across 5 regions and 11 countries, conducted in May and June 2023. The goal was to determine executive and business leader sentiment on industry ecosystems, maturity of current approach, and future plans for IT and use case investment. Respondents spanned multiple domains including CXO, business line leadership, and IT management. Industry coverage is across eight industries: construction, energy, discrete and process manufacturing (and subindustries), healthcare, life sciences, financial services, retail, and government.

Key findings from the survey include:

• Improving end-customer engagement is a primary driver of industry ecosystems.
• AI is growing in importance as a key decision support technology in industry ecosystems.
• Environmental sustainability remains a key initiative for industry ecosystem partners.

What is clear is that organizations in every industry are looking to open and expand their industry ecosystem as part of becoming a digital-first business. Shared data and insights, shared applications, shared operations, and expertise mutually enhance this approach — becoming not only a way to ensure flexibility and resiliency but also a way to grow revenue and profitability while more closely engaging the customer, consumer, citizen, or patient.

This survey is focused on the current approach, challenges, and investment strategies of organizations within the four manufacturing value chains: asset-oriented value chains (AOVCs) (e.g., chemical, energy), brand-oriented value chains (BOVCs) (e.g., consumer goods, retail), engineering-oriented value chains (EOVCs) (e.g., aerospace, automotive), and technology-oriented value chains (TOVCs) (e.g., high tech, semiconductor). From our research, all manufacturing organizations can benefit from opening and extending how they work with ecosystem partners — to enhance innovation, address environmental sustainability, and improve resiliency, to name just a few benefits. This survey shows these commonalities, as well as the unique differences and needs per industry value chain.

Summary

This IDC Tech Buyer Presentation presents the Worldwide Future of Industry Ecosystems Scorecard for 2023.

Why are industry ecosystems critical for success in the digitally transformed, disrupted world we live in today? Because the complexity of products, supply chains, digital experiences, and changing market and customer/consumer needs are too great for any one organization to address on its own.

In May and June 2023, we fielded our third annual global survey to 1,288 executives across 5 regions and 11 countries. The goal was to determine executive and business leader sentiment on industry ecosystems, maturity of current approach, and future plans for IT and use case investment. We also focused on what business outcomes organizations expect from their industry ecosystem initiatives. Respondents spanned multiple domains including CXO, business-line leadership, and IT management. Industry coverage is across the following industries: construction, energy, discrete and process manufacturing (and subindustries), healthcare, life sciences, financial services, retail, and government.

From this data set, we developed a scorecard to help guide organizations in every industry on what it takes to be a leading ecosystem-driven enterprise. The Future of Industry Ecosystems Scorecard provides analysis of the most important capabilities, business outcomes, and KPIs across three critical industry ecosystem dimensions: shared data and insights, shared applications, and shared operations and expertise.

Summary

SAP recently announced its 2Q23 results. All results discussed in the document will be non-IFRS constant currencies unless otherwise specified.

The 2Q23 financials show cloud and software revenue was up 8% to €6,505 million; however, software license revenue declined by 24%. Cloud revenue grew steadily, up 22% to €3,316 million with cloud backlog up 25%. Total revenue was up 8% to €7,554 million. Operating profits were up 28% to €1,358 million. In addition, SAP announced the share of predictable revenue was up 2 percentage points to 82%.

Summary

IBM's earnings release for 2Q23 reported revenue of $15.5 billion (up 0.4% y/y at constant currency, down 0.4% y/y as reported) — the sections that follow will use constant currency growth unless otherwise noted. Free cash flow year to date (YTD) is $6.4 billion. The financial results were consistent with guidance and on track to meet its stated goal of $10.5 billion of free cash flow for the year.

The emphasis on productivity gains and margin expansion is having an impact as pre-tax operating margin increased 140 basis points, adding to the 130 basis point gain in the first quarter. The quarter had some important announcements including the intent to acquire Apptio (anticipated to close by the fourth quarter; see IBM to Acquire Apptio and Enhance Its Leadership in the Cloud FinOps Space and to Create a Platform for Digital Business and Gen AI FinOps, #, July 2023) and the release of the watsonx family of AI software products. These announcements had only a modest impact, if any, on the second quarter results, but should be important contributors by 2024.

Software revenue grew 8% Y/Y, maintaining steady sequential growth. Interestingly, the more legacy part of the portfolio, transaction processing, grew above the overall number at 10%, which the company equated to the z-series refresh cycles pulling the relevant software through. Hybrid platforms and solutions grew at 7%, up from 5% in the first quarter.

Within the hybrid category, Red Hat continues to be the leading driver of growth (11% y/y), but security software (down 1%) and automation (2%) growth rates appear to be below the overall market in those categories. Data and AI software was up 11%, which is an encouraging increase over the first quarter (3%). It is too early to project the impact of the watsonx offering, but this increase in the rate of growth is evidence that customers are excited, and IBM will likely capture a profitable share of this market.

Consulting

Growth for IBM Consulting remains around market averages at 5.9%. Growth was relatively consistent across the broad categories including business transformation (5%), technology consulting (5%), and application operations (8%). Business transformation is particularly important for IBM to establish strategic relationships and its offerings in this area are very competitive. YTD growth has been very good considering some of the economic headwinds, which impacted discretionary project spending in the United States.

IBM's trailing 12-month book-to-bill ratio was 1.1, which was up from the first quarter. The company reported excellent bookings (what IBM calls signings) growth at 24%, including 50% growth in AI-related projects. The bookings' growth explains the healthy book-to-bill results and growth in AI-related projects, if it can be sustained, bodes well for revenue growth going forward with IBM indicating Consulting full-year revenue growth in the 6–8% range in 2023.

Infrastructure

Summary

This IDC Market Note provides a review and analysis of Siemens' Realize LIVE 2023 user conference.

"Siemens used the Realize LIVE 2023 event to discuss the latest additions to its Siemens Xcelerator platform and marketplace, highlighting key capabilities for delivering complex products and processes with an agile, collaborative digital thread across product development, manufacturing, and operations. Some of Siemens' largest customers presented case studies describing their success in achieving digital transformation and sustainability and sharing key lessons to simplify the journey for others," said John Snow, research director, Product Innovation Strategies at IDC.

Summary

This IDC Survey highlights the results of an annual global survey. In May and June 2023, we fielded our third annual global survey to 1,288 executives across 5 regions and 11 countries. The goal was to determine executive and business leader sentiment on industry ecosystems, maturity of current approach, and future plans for IT and use case investment. Respondents spanned multiple domains including CXO, business line leadership, and IT management. Industry coverage is across 9 industries: construction, energy, discrete and process manufacturing (and subindustries), healthcare, life sciences, financial services, retail, and government.

Key findings from the survey include:

• Improving end customer engagement is a primary driver of industry ecosystems.
• AI is growing in importance as a key decision support technology in industry ecosystems.
• Environmental sustainability remains a key initiative for industry ecosystem partners.

What is clear is that organizations in every industry are looking to open and expand their industry ecosystem as part of becoming a digital-first business. Shared data and insights, shared applications, and shared operations and expertise are enhanced with this approach — becoming not only a way to ensure flexibility and resiliency but also a way to grow revenue and profitability.

This document is our first based on the 2023 Future of Industry Ecosystems data set: an overall view of the results. Over the next months into 2024, we will publish results specific to role, size company, and industry.

Summary

This IDC Survey Spotlight answers the following question: How important are industry ecosystem partnerships to maintaining and improving quality customer experiences (CXs)?

Customer experience, whether we are discussing discrete and process manufacturing, construction, healthcare, or retail industries (or other), is omni-channel, supported by multiple tools, processes, and data models. These experiences are also supported by interconnected partners working together by sharing the requisite and related customer data and insights, applications, and operations and expertise.

In IDC's recently completed (third annual) 2023 Future of Industry Ecosystems Global Survey (n = 1,288) fielded to CXOs, business-line executives, and IT leaders, we strive to determine current and planned approaches to industry ecosystems. More specifically, we ask questions related to strategy, use case focus, and IT investment for industry ecosystem success. For IT investment, cloud infrastructure and applications and cybersecurity remain critical, while customer data platforms (CDPs) is also a top 3 focus. Sharing customer data with ecosystem partners is not something end-user organizations have extensively done in the past — but that is changing, with products, services, and experiences delivered quickly in a blended physical and digital way, innovation expectations high, and end customers that demand personalized experiences. A network of on-demand partners that share mutually beneficial customer data makes this possible and scalable.

Organizations realize that they must work closely with their partners to orchestrate that end-user experience (whether consumer, customer, citizen, or patient) while having this be seamless and substantive. As such, for three years running in our Future of Industry Ecosystems Global Survey, CDPs continue to be a leading IT investment in support of industry ecosystems. This IDC Survey Spotlight explores the reasons why and what we expect moving forward.

Summary

This IDC Perspective analyzes IDC's 2023 Future of Industry Ecosystems MaturityScape Benchmark Survey data, focusing on the desire and need to work more closely with partners in support of ESG initiatives.

"IDC believes that major global organizations that typically orchestrate industry ecosystems will increasingly form cross-ecosystem teams dedicated to ESG activities and task them with facilitating the resulting sustainable practices throughout the ecosystem and their organizations. IDC's 2023 Future of Industry Ecosystems MaturityScape Benchmark Survey shows that this trend is underway, with those companies most advanced with their ecosystem approach already forming ESG teams," said Jeffrey Hojlo, research vice president, Future of Industry Ecosystems.

Summary

This IDC Survey Spotlight focuses on how different industry verticals are adopting edge solutions in Europe. This study also provides insights into the priorities of European companies when it comes to the types of edge solutions. It presents data from IDC's European Infrastructure Survey conducted in 2022.

Summary

This IDC Perspective introduces and defines decision intelligence software. It presents evidence to reconsider past approaches to investments in data processing and provides guidance for assessing opportunities for decision augmentation and decision automation using decision intelligence software.

"Our contention, at IDC, is that collectively, we have not seen sufficient ROI on past investments in data processing and data analysis technology, staff, and services. If you agree, we would like to introduce you to a new discipline and technology to address current decision-making shortcomings and help you prepare to embrace the growing decision complexity," says Dan Vesset, group VP of Data, Analytics, and Enterprise Intelligence Research at IDC. "This opportunity will require a change in investment priorities, a change in how information is synthesized, how insights are developed, and decisions are made at scale, how collective learning and knowledge capture and sharing is performed, and how data culture and data literacy are promoted. This opportunity is decision intelligence.

Summary

This IDC Perspective analyzes one of the three core pillars of our Future of Industry Ecosystems foundation: shared applications.

"Disruption can happen anytime, and customer needs are dynamic, so organizations must be ready. An important part of this is having the right applications that can be quickly, flexibly developed either internally or in concert with ecosystem partners. Having that external 'bench' of application development support, as well as ongoing collaboration with other ecosystem participants, is critical to achieve this resilience," says Jeffrey Hojlo, research VP, IDC Future of Industry Ecosystems.

Summary

This IDC Survey looks further into the construction cut of IDC's 2022 Future of Industry Ecosystems Global Survey data and IDC's 2022 Industry IT and Communications Survey. This combined view emphasizes the continued move of the varied construction ecosystem — architects, general contractors, project managers, EPC, suppliers, and owners — to becoming digital-first organizations.

We explore three key trends in the construction market today within this document, supported by data from the aforementioned surveys. Much as with other industries, the move is to invest in digital technology that unifies data, connects internal and external teams (i.e., the ecosystem), and harmonizes projects and processes while building on the 3D model–based investments of the past 25 years.

The construction space is an exciting market, with the rapid acceleration to cloud, digital, and virtual. The next three years and beyond promises continued advancements on these fronts, despite uncertain economic conditions.

Summary

This IDC Survey is based on IDC's Future of Industry Ecosystems Survey and is focused on the media and entertainment sector cut of this survey data.

In May and June 2022, we fielded our second annual global survey to 1,270 executives across 5 regions and 11 countries. The goal was to determine executive and business leader sentiment on industry ecosystems, maturity of current approach, and future plans for IT and use case investment. Respondents spanned multiple domains and included CXOs, business-line leadership, and IT management.

Key findings from the survey include:

• Mitigating demand fluctuations and supply chain constraint and pursuing environmental sustainability goals are key joint initiatives for industry ecosystem partners.
• Trust and execution across industry ecosystems are the top risks to mitigate.
• Most organizations plan to, as they did last year, expand their industry ecosystems beyond their core industries.
• Service providers will play a key role in the design and enablement of industry ecosystems.

Another key area of focus for organizations when they consider the design and operation of their industry ecosystem is improvement of customer, consumer, citizen, or patient engagement and experience. That is, how does the shared, open approach of industry ecosystems (shared data and insights, shared applications, shared operations and expertise) better facilitate this?

Media and entertainment organizations naturally have an extended set of partners delivering data, content, and resources, yet they are mostly centralized in their data management approach. The move to open industry ecosystems drives the need to consider how to establish a cloud-based platform for collaboration and data management that is secure yet flexible for ongoing innovation, creativity, and customer engagement.

Summary

This IDC Market Perspective describes the key takeaways from the SAP Sapphire event. On May 16–17, 2023, SAP held its annual conference, SAP Sapphire, in Orlando, Florida. This conference was one of three of the same events held globally, with the remaining two to be held in Sao Paulo, Brazil, and Barcelona, Spain, shortly. The conference was chalked full of product announcements, customer discussions and testimonials, and a showcase of products and SAP partners. Innovation — the ability to future proof the organization in the digital world — and the reshaping of the technology business strategy were showcased.

"SAP continues to bring more innovation to its clients to run a digital business," said Mickey North Rizza, group vice president, IDC's Enterprise Software. "As the digital world evolves beyond today's aspects, SAP will need to emphasize 'future proof' even more, beyond just RISE and GROW. The opportunity is vast, and SAP appears to be on the right future-proof trajectory."

Summary

This IDC Perspective highlights our key takeaways and analysis of the recent Oracle Application and Industry Analyst Summit.

"Essentially, the message is that Oracle will provide customers the core system (the "digital fabric" as one executive said), common data model, and best practices, combined with partner-led agile methodologies, ISV, and integration offerings — to the tune of what now is 20k+ services and ISV partners. This shared application, cross-industry ecosystem approach is one we see most large platform providers offering today, whether in an enterprise or industrial environment — because on-demand, rapid access to data, applications, and services is expected by end customers in every industry today to effectively run their businesses," said Jeffrey Hojlo, research vice president, Future of Industry Ecosystems, IDC.

Summary

This IDC Survey Spotlight answers the following question: Where do thrivers excel in their industry ecosystem maturity? The maturity of an industry ecosystem will vary from organization to organization — and may change from a simple, short list of organizations working on a specific project or venture to a complex, multiparticipant ecosystem. In February 2023, we set out to determine the current state of industry ecosystems by fielding IDC's Future of Industry Ecosystems MaturityScape Benchmark Survey, a survey that asks respondents to self-rank themselves based on IDC's Future of Industry Ecosystems maturity curve (see IDC MaturityScape: Future of Industry Ecosystems 1.0, IDC #US47771922, July 2022). The document analyzes organization maturity across five dimensions: people, process, technology, operations, and innovation.

This IDC Survey Spotlight looks at the industry ecosystem IDC MaturityScape respondents who identify their organizations as mature and expansive (levels 4 and 5) with their industry ecosystem approach versus those who are in the early stages of their journey (levels 1 and 2) and, more specifically, which dimensions (people, process, technology, operations, and innovation) are most mature. That is, what drives their ecosystem success.

Throughout 2023, we will continue to publish our analysis from this groundbreaking document: IDC MaturityScape: Future of Industry Ecosystems 1.0 (IDC #US47771922, July 2022).

Summary

This IDC Survey is based on IDC's Future of Industry Ecosystems Survey and is focused on the government sector cut of this survey data.

In May and June 2022, we fielded our second annual global survey to 1,270 executives across 5 regions and 11 countries. The goal was to determine executive and business leader sentiment on industry ecosystems, maturity of current approach, and future plans for IT and use case investment. Respondents spanned multiple domains and included CXOs, business-line leadership, and IT management.

Key findings from the survey include:

• Mitigating demand fluctuations and supply chain constraint and pursuing environmental sustainability goals are key joint initiatives for industry ecosystem partners.
• Trust and execution across industry ecosystems are the top risks to mitigate.
• Most organizations plan to, as they did last year, expand their industry ecosystems beyond their core industries.
• Service providers will play a key role in the design and enablement of industry ecosystems.

Another key area of focus for organizations when they consider the design and operation of their industry ecosystem is improvement of customer, consumer, citizen, or patient engagement and experience. That is, how does the shared, open approach of industry ecosystems (shared data and insights, shared applications, shared operations and expertise) better facilitate this?

Governments around the world continue to face multiple disruptions while proactively serving their citizens with necessary services and information. Balancing this complexity will only be possible by working more closely with ecosystem partners within the public sector, as well as outside with other industry organizations — whether in automotive, consumer goods, agriculture, energy, or high tech. Open sharing of data, a common set of applications, and on-demand expertise will empower this collaboration.

Summary

These IDC Pivot Table banner books provide data for IDC's SaaSPath 2023 program, including 7 of the 23 application categories: digital commerce, CPQ, employee experience, facility management, field service management, PIM/PXM, and procurement.

Coverage includes application adoption, deployment models, budget plans and replacement cycle timing, purchasing preferences and attitudes toward SaaS buying channels, packaging and pricing options, and in-depth vendor reviews, ratings, and spend and advocacy scores for all 23 functional application markets.

Summary

These IDC Pivot Table banner books provide data for IDC's SaaSPath 2023 program, including 8 of the 23 application categories: ERP, finance, PSA, SCM, core HR, payroll, talent management, and asset life-cycle management (ALM/EAM).

Coverage includes application adoption, deployment models, budget plans and replacement cycle timing, purchasing preferences and attitudes toward SaaS buying channels, packaging and pricing options, and in-depth vendor reviews, ratings, and spend and advocacy scores for all 23 functional application markets.

Summary

This IDC Pivot Table banner book includes data for IDC's SaaSPath 2023 program, which provides comprehensive data and guidance on the mind and journey of the SaaS buyer, including a deep dive into 23 functional application markets: accounts payable; accounts receivable; core HR; configure, price, quote (CPQ); digital commerce; asset life-cycle management (ALM/EAM); employee experience; enterprise resource planning (ERP); facility management; field service management; finance; payroll; procurement; product information and experience management (PIM/PXM); product life-cycle management/computer-aided design (PLM/CAD); professional services automation (PSA); supply chain management (SCM); subscription management; talent acquisition; talent management; tax; travel and expense; and treasury and risk management.

Coverage includes application adoption, deployment models, budget plans and replacement cycle timing, purchasing preferences and attitudes toward SaaS buying channels, packaging and pricing options, and in-depth vendor reviews, ratings, and spend and advocacy scores for all 23 functional application markets.

Summary

These IDC Pivot Table banner books provide data for IDC's SaaSPath 2023 program, including 23 application categories, broken out by countries, including Australia, Brazil, China, France, Germany, India, Japan, New Zealand, South Africa, the United Kingdom, and the United States.

Coverage includes application adoption, deployment models, budget plans and replacement cycle timing, purchasing preferences and attitudes toward SaaS buying channels, packaging and pricing options, and in-depth vendor reviews, ratings, and spend and advocacy scores for all 23 functional application markets.

Summary

These IDC Pivot Table banner books provide data for IDC's SaaSPath 2023 program, including 8 of the 23 application categories: accounts payable (AP), accounts receivable (AR), PLM/CAD, subscription management, tax, treasury management, travel and expense (T&E), and talent acquisition.

Coverage includes application adoption, deployment models, budget plans and replacement cycle timing, purchasing preferences and attitudes toward SaaS buying channels, packaging and pricing options, and in-depth vendor reviews, ratings, and spend and advocacy scores for all 23 functional application markets.

Summary

These IDC Pivot Table banner books provide data for IDC's SaaSPath 2023 program, including 23 application categories, broken out by industry: financial services, manufacturing, life sciences, oil and gas, retail, and wholesale distribution.

Coverage includes application adoption, deployment models, budget plans and replacement cycle timing, purchasing preferences and attitudes toward SaaS buying channels, packaging and pricing options, and in-depth vendor reviews, ratings, and spend and advocacy scores for all 23 functional application markets.

Summary

These IDC Pivot Table banner books provide data for IDC's SaaSPath 2023 program, including 23 application categories, broken out by industry: financial services, manufacturing, life sciences, oil and gas, retail, wholesale distribution, professional services, media and entertainment, utilities, education, hospitality and food service, and transportation and logistics.

Coverage includes application adoption, deployment models, budget plans and replacement cycle timing, purchasing preferences and attitudes toward SaaS buying channels, packaging and pricing options, and in-depth vendor reviews, ratings, and spend and advocacy scores for all 23 functional application markets.

Summary

SAP recently announced its 1Q23 results. All results discussed in the document will be non-IFRS constant currencies unless otherwise specified. In addition, this earnings call is the first for SAP's new CFO, Dominik Asam, who became the new CFO effective March 7, 2023.

The 1Q23 financials show cloud and software revenue growth up 8% to €6,358 million. Cloud revenue was up 22% to €3,178 million, with cloud backlog up 25%. Total revenue was up 9% to €7,441 million. Operating profits were up 12% to €1,875 million.

Summary

IBM's earning release for 1Q23 reported revenue of $14.3 billion (+4% y/y @ constant currency, flat y/y as reported) — the balance of this document will use constant currency growth unless otherwise noted. Free cash flow for the quarter was $1.3 billion. The financial results were consistent with guidance and on track to meet its stated goal of $10.5 billion of free cash flow for the year.

CEO and Chairman Arvind Krishna discussed how initiatives for increased productivity, expanded partnerships, and investing in growth markets were at the center of delivering the intended business benefits. While it is always difficult to unpack a product set as vast as IBM's, there certainly seems to be evidence supporting the productivity gains with a 130 basis point gain in operating pre-tax margin (excluding workforce rebalancing). Significant growth remains more elusive with results middling at best, even in this challenging market environment.

Summary

This IDC MarketScape includes software providers in the manufacturing execution system (MES) market serving engineering-intensive manufacturing subindustries, namely aerospace and defense, naval and shipbuilding, train and locomotives, and industrial machinery and equipment (ETO). This document is part of a four-report series that focuses on the MES market.

Complex engineered manufacturing requires sophisticated production process that provides companies the ability to navigate through extremely complex bill of materials marked by frequent design changes. It is also reliant on advanced skills and must comply with the toughest regulations.

"Today, the factory is crucial in this sector," said Lorenzo Veronesi, associate research director, IDC Manufacturing Insights. "Therefore, it is essential that factory leaders evaluate their future manufacturing execution systems using expert information to make the best decision."

Summary

This IDC MarketScape examines software providers in the MES market for high-tech and electronics manufacturing subindustries, namely semiconductors, electronic components, and high-tech OEMs. This document is part of a four-report series that includes the following three other reports:

• IDC MarketScape Worldwide Discrete Manufacturing Execution Systems 2023 Vendor Assessment
• IDC MarketScape Worldwide Engineering Intensive Manufacturing Execution Systems 2023 Vendor Assessment
• IDC MarketScape Worldwide Process Manufacturing Execution Systems 2023 Vendor Assessment

In the high-tech sector, the delivery of innovative products to the market is essential, as the speed to which revenue opportunities appear and fade throughout the product life cycle is extremely quick. Scaling to profitable volumes without compromising on quality and cost is paramount.

"The factory is crucial in this sector," said Lorenzo Veronesi, associate research director, IDC Manufacturing Insights. "Therefore, it is essential that factory leaders evaluate their future manufacturing execution systems, leveraging expert information to make the best decisions."

Summary

This IDC Survey highlights the key findings of IDC's Future of Industry Ecosystems Survey. In May and June 2022, we fielded our second annual global survey to 1,270 executives across 5 regions and 11 countries. The goal was to determine executive and business leader sentiment on industry ecosystems, maturity of current approach, and future plans for IT and use case investment. Respondents spanned multiple domains including CXO, business line leadership, and IT management. Key findings from the survey include:

• Mitigating demand fluctuations and supply chain constraint while pursuing environmental sustainability goals is a key joint initiative for industry ecosystem partners.
• Cybersecurity and IP protection are the top barriers to ecosystem participation, making them the top IT investments by ecosystem players.
• The business leadership plays a key role in designing the industry ecosystem in the life science industry compared with the company's executive team playing a decisive role in other industries. Most organizations plan to, as they did last year, expand their industry ecosystems beyond their core industries.
• Data sharing is more prevalent in the life science industry than in most other industries, driven by the need to collaborate to accelerate innovation.
• Service providers will play a key role in the design and enablement of industry ecosystems.

Another key area of focus for organizations when they consider the design and operation of their industry ecosystem is improvement of customer, consumer, citizen, or patient engagement and experience. That is, how does the shared, open approach of industry ecosystems (shared data and insights, shared applications, and shared operations and expertise) better facilitate this?

This IDC survey report on the future of industry ecosystems is focused on the life sciences cut of this survey data. Organizations in this sector recognize the opportunity for ecosystems to support the multiple ongoing challenges and initiatives, such as:

• Empowering constant, collaborative, and open innovation that results in enhanced R&D
• Enabling environmentally sustainable practices within R&D, supply chain, and production, across a varied set of ecosystem participants
• Ensuring trusted, secure collaboration and mutually beneficial business models across the industry ecosystem

IDC's Future of Industry Ecosystems Survey provides a view into how life science organizations are currently and planning to work with their ecosystem partners on these and other initiatives.

Summary

This IDC study provides key findings from IDC's 2023 Future of Industry Ecosystems MaturityScape Benchmark Survey.

"Wherever your organization is on this journey, consider the IDC MaturityScape for the future of industry ecosystems (refer to Figure 4) as a continuum: There may be times when a simple, small team of ecosystem partners is working on a specific, short-term project and other times when big challenges like environmental sustainability, game-changing innovation, or quality and safety require a diverse number of partners to come together as a single team for an extended period of time. This flexible, dynamic, on-demand approach to working with industry ecosystem partners is critical to ensure the long-term viability and growth of every organization," said Jeffrey Hojlo, research vice president, Future of Industry Ecosystems at IDC.

Summary

This IDC MarketScape uses the IDC MarketScape model to provide an assessment of 15 solution providers participating in the Asia/Pacific manufacturing execution system (MES) market. This document is an evaluation based on a comprehensive framework consisting of a set of parameters that evaluate solution providers relative to one another. The parameters were evaluated using factors that are expected to be the most beneficial to the success of a vendor in a given market in both the short-term and long-term perspective.

"Manufacturers are constantly looking to improve their production efficiency. An MES solution is an indispensable tool that provides manufacturers with the ability to control, execute, monitor, and analyze their production operations performance in real time. Solution providers need to support and help manufacturers in customizing and integrating the solution, ensuring that their organization can gain optimal benefits and achieve short-term and long-term organizational goals," says Dr. Wai Yee Lee, research manager, IDC Manufacturing Insights.

Summary

This IDC MarketScape examines software providers in the MES market serving the discrete manufacturing industry, which includes industrial machinery and equipment (MTS, MTO), automotive and tier 1 suppliers, medical devices, and metal fabrication (discrete assembly). This document is part of a four-report series that includes the following three other reports:

• IDC MarketScape Worldwide Engineering Intensive Manufacturing Execution Systems 2023 Vendor Assessment
• IDC MarketScape Worldwide High-Tech and Electronics Manufacturing Execution Systems 2023 Vendor Assessment
• IDC MarketScape Worldwide Process Manufacturing Execution Systems 2023 Vendor Assessment

The current focus in discrete manufacturing is to create experience ecosystems that transform the focus from designing, selling, and servicing complex products to one in which the product becomes the platform through which new digital products and services are delivered. Nevertheless, the importance of the factory stays crucial. Discrete manufacturing companies must develop the necessary production capabilities to compete in a digital economy.

"The factory is crucial in this sector," said Lorenzo Veronesi, associate research director, IDC Manufacturing Insights. "Therefore, it is essential that factory leaders evaluate their future manufacturing execution systems, leveraging expert information to make the best decisions."

Summary

This IDC MarketScape includes software providers in the MES market serving process manufacturing subindustries, which includes chemicals; rubber & plastics; pulp & paper; metals & materials; food, beverage, & tobacco; and personal/home care. This document is part of a four-report series that includes the following three other reports:

• IDC MarketScape Worldwide Discrete Manufacturing Execution Systems 2023 Vendor Assessment
• IDC MarketScape Worldwide Engineering Intensive Manufacturing Execution Systems 2023 Vendor Assessment
• IDC MarketScape Worldwide High-Tech and Electronics Manufacturing Execution Systems 2023 Vendor Assessment

Raised energy costs, the need to comply with tough regulations, and the ever-growing pressure from customers are making the life of asset-intensive producers such as process manufacturers extremely tough.

"The factory is crucial in this sector," said Lorenzo Veronesi, associate research director, IDC Manufacturing Insights. "Therefore, it is essential that factory leaders evaluate their future manufacturing execution systems, leveraging expert information to make the best decisions."

Summary

These event proceedings were presented at the IDC Directions conferences in Boston and Santa Clara in March 2023.

The next generation of consumers view technology and brands in radically different ways than those who drive spending today. As younger generational cohorts move to dominate technology spending in the coming decade, companies — both consumer centric and enterprise focused — must adapt or risk disruption and irrelevance. In this session, Tom Mainelli will share insights from IDC's Future Consumer research, highlighting key trends and examining technologies, strategies, and vendors that are primed to succeed in the coming years.

Summary

This IDC Market Presentation gives the users' perspective on industry cloud pillars. The six main attributes, or pillars, supporting industry clouds capture the mix of technical components, operational conditions, and partner ecosystem qualities that make them an attractive operational model for both buyers and vendors. This IDC Market Presentation describes the six pillars and provides survey-based analysis of how they are prioritized and evaluated by industry cloud users. Mapping the ROI metrics used for measuring industry cloud performance back to the six pillars shows how industry clouds' unique model translates into value for the enterprise. This document also includes overall ratings of industry cloud vendors by different user roles and by types of vendors.

Summary

This IDC Perspective explains how companies considering industry clouds should approach the evaluation and selection process. As a new, platform-based model for engagement with end customers and ecosystem partners, industry clouds must be assessed for both their technology and business fit for the company while keeping in mind incumbent technology providers, value chain implications, and other related factors. IDC proposes six evaluation criteria or pillars that businesses can use to make an informed industry cloud selection and describes the rationale for each.

"IDC has a deep understanding of the industry cloud market after covering it for over a decade," said Bob Parker, senior vice president and general manager for Manufacturing, Retail, Energy, and Financial Insights at IDC. "Our six industry cloud pillars were chosen based on this knowledge and the new dynamics created in the market by the entry of the major enterprise cloud, software, and services providers. The criteria provide industry cloud buyers with a comprehensive framework for evaluating the current offerings and making the right decision for their business."

Summary

This IDC PlanScape is a guide for organizations across all industries planning to evolve their linear value chain approach to a multifaceted, dynamic industry ecosystem strategy. Increasingly, organizations are realizing the benefit of developing new business models with partners within and outside their industry that are focused on sharing data and insights, sharing applications, and sharing operations and expertise.

"While the specific approach and breadth of industry ecosystems will differ for each organization, what is consistent is the need to establish a unified foundation of data, applications, and operations. This approach enables flexible operations in the face of any disruption or opportunity and consistent, timely innovation," said Jeffrey Hojlo, research vice president, IDC's Future of Industry Ecosystems.

Summary

This IDC Market Presentation provides a glance at the current makeup of the smart manufacturing market landscape for manufacturing industries.

Summary

This IDC Perspective provides our observations and key takeaways related to industry ecosystems from the digital version of CES 2023.

"CES continues to be a place for ecosystem participants to gather, form new ventures, and innovate together. What was reinforced at the event is that organizations innovate faster, ensure improved quality and safe experiences for customers, and perform better when they collaborate with ecosystem partners. Digital transformation investments are now being extended outside the organization to build new business models with partners, so the common mission and end customer can be better served." — said Jeffrey Hojlo, research vice president, Future of Industry Ecosystems

Summary

We track the financial performance of many major technology vendors, but we are not financial analysts. We do so because these companies, such as IBM, account for a large portion of spending at our tech buyer clients and have an outsized presence in the markets they compete and partner in which makes their performance very important to our tech supplier clients. The quarterly financial results and attendant executive commentary provide an important basis for our ongoing coverage of these important technology vendors.

In the past, we have written our analysis relatively independently each quarter, but given the uncertainty entering 2023, we will be taking a bit more structured approach. In this document, we are identifying what we believe to be the critical success factors for IBM. Each quarter, we will provide specific commentary on how we see their progress against these considerations. Our objective is to give our readers a more cohesive view of performance as the year goes on.

Summary

This IDC eBook provides a look at IDC's predictions for 2023 and beyond, based on IDC's European FutureScape 2023 webcast, to help leaders target their technology investments and succeed in pivoting to digital business during storms of disruptions.

In the past few years, organizations have accelerated investments in digital transformation to navigate headwinds and crosswinds while leveraging tailwinds to drive business outcomes. In the current environment, when interconnected economic, political, and social disruptions are threatening organizational and business health, acting as a digital-first organization is a mandate for companies to survive and thrive in the digital business era.

Leveraging technology will be essential on this journey to create value (quickly) and become a digital business by reshaping organizational structures, evolving operational practices and rethinking business models.

Summary

This IDC Web Conference highlights a discussion by IDC's Future Enterprise research leads Paul Hughes and Jeff Hojlo on the importance of connectivity as a building block for new industry ecosystem business models. Organizations are expanding ecosystems to include new participants inside and outside their core industries. They are sharing data and insights, codeveloping applications, and sharing operations and expertise; end-user expectation is that products and services are now delivered in a blended physical and digital way. All of this requires rapid, reliable connectivity that enables data to be in motion across ecosystems.

Summary

SAP recently announced its 4Q22 and full-year 2022 results. All results discussed in this document will be non-IFRS constant currencies, unless otherwise specified. In addition, this earnings call was the 37th and final earnings call for the current SAP CFO Luka Mucic. Dominik Asam will be the new SAP CFO, effective March 7, 2023.

The 4Q22 financials show cloud revenue growth up 22% to €3.4 billion, which brings an increase in cloud backlog of 24% to €12.0 billion. Total revenue was up only 1% to €8.4 billion. Operating profits were up 2% to €2.6 billion.

For full-year 2022, cloud revenue growth was up 24% to €12.6 billion. Total revenue was up 5% to €30.9 billion. Operating profits were down 7% to €8.0 billion. Cloud gross margin was up 2.1 percentage points to 71.6%.

Summary

IBM's earning release for 4Q22 reported revenue of $16.7 billion, up 6.3% y/y in constant currency and flat y/y as reported. This growth data in this document will be presented in terms of constant currency, unless otherwise noted. 4Q22 also marked the end of the first full year since the Kyndryl separation, with the "new" IBM achieving $60.5 billion in full-year revenue (up 12% y/y), driven by continued client interest in our hybrid cloud software and consulting services. Free cash flow for the full year was $9.3 billion. Like all other technology providers, IBM faces questions about its 2023 outlook. The company stated that it expects to grow revenue that is consistent with the previous mid-single-digit growth guidance in constant currency, generating about $10.5 billion in free cash flow.

CEO and Chairman Arvind Krishna reemphasized that hybrid cloud and artificial intelligence (AI) are the foundation of IBM's ongoing business strategy. In 2023, the company will ensure that its Software, Consulting, and Infrastructure units focus on helping enterprises make more efficient and effective use of technology and data assets to navigate potential disruptions and establish a trusted foundation for long-term digital business operations.

Summary

This IDC Survey Spotlight, which examines results from our 2022 Future of Industry Ecosystems Global Survey (n = 1,270), fielded to CXOs, business-line executives, and IT leaders, environmental sustainability remains a focus initiative among ecosystem partners. We asked the following question: When you consider the collective capital you have across the industry ecosystems you participate in, what are your top initiatives? (By "capital", we mean asset, operational, financial, and people.) The top answer of environmental sustainability shows there is a recognition that the area is too complex for any one organization to address on its own.

In our Future of Industry Ecosystems practice, we focus on three key areas: shared data and insights, shared and codeveloped applications, and shared operations and expertise. Also important in our research is enabling blended physical and digital ways of delivering products and services to the end customer and collaborating with ecosystem partners. Each of these areas can contribute to improving an organization's environmental sustainability footprint.

We will continue to explore other topics related to environmental sustainability across ecosystems, covered in our current and future research: these include which participants in an ecosystem are most important (e.g., tech providers, public entities, service providers), what IT investments are and will be made, and analysis on the top sustainability use cases across industry.

Summary

This IDC Survey presents data for the utilities industry from IDC's Future of Industry Ecosystem Survey. In May and June 2022, we fielded our second annual global survey to 1,270 executives across 5 regions and 11 countries. The goal was to determine executive and business leader sentiment on industry ecosystems, maturity of current approach, and future plans for IT and use case investment. Respondents spanned multiple domains and included CXOs, business-line leadership, and IT management.

Key findings from the survey include:

• Mitigating demand fluctuations and supply chain constraint and pursuing environmental sustainability goals are key joint initiatives for industry ecosystem partners.
• Trust and execution across industry ecosystems are the top risks to mitigate.
• Most organizations plan to, as they did last year, expand their industry ecosystems beyond their core industries.
• Service providers will play a key role in the design and enablement of industry ecosystems.

Another key area of focus for organizations when they consider the design and operation of their industry ecosystem is improvement of customer, consumer, citizen, or patient engagement and experience. That is, how does the shared, open approach of industry ecosystems (shared data and insights, shared applications, shared operations and expertise) better facilitate this?

This IDC Survey on the future of industry ecosystems is focused on the utilities sector cut of this survey data. This industry is faced with a trilogy of challenges, which increasingly require organizations to expand their set of ecosystem partners within and external to their core industry:

• Enabling distributed energy resource management (DERM) for residential, commercial, and city locations
• The electrification many industries are undergoing, such as the automotive industry with electric vehicles (EVs)
• Energy transition to renewable, sustainable sources of power generation

Joint ventures are becoming more common in the utilities industry, and there is a recognition that digital investments must be made that enable easier collaboration, sharing of data and applications, and consistent engagement with the end customer. IDC's Future of Industry Ecosystem Survey provides a view into how these organizations are currently working and planning to work with their ecosystem partners.