New Research

Summary

This IDC Market Perspective discusses about KPMG that held an analyst event at its Lakehouse learning facility in Orlando, Florida, on September 27–28, 2023, presenting business topics and updates, an innovation showcase, and Lakehouse tours to get analysts up to speed across all areas of its business. Clients and vendor partners also shared their experiences in working with and partnering with the firm. This document describes the leading impressions of several IDC analysts who participated in the event rather than being a comprehensive account of everything KPMG is doing, in the hope that readers will want to engage with the analysts to dig deeper.

"KPMG's event used the Lakehouse as its event facility and as an example of how the company is integrating learning for the clients and staff to adapt to changes in the marketplace and larger ecosystem it operates in," said Bill Latshaw research director, Worldwide Business Consulting Services. "The facility, like other corporate and provider training facilities, is self-contained making the focus of the participants all that much more concentrated on learning about KPMG's efforts in GenAI, quantum, blockchain, other emerging technology-driven innovations, and outcome-driven transformation journeys for their clients."

Summary

This IDC Market Note consolidates findings from AVEVA World 2023 event and what they mean for AVEVA's customers and partners moving forward. The event was held in San Francisco from October 23 to 26, 2023, boasting 2,500 attendees and over 250 presentations and track sessions segmented by industry, technology, and persona. Notably, the event illustrated AVEVA's adapted business strategy to capitalize on data-centric approaches to digital transformation being taken by AVEVA customers and partners.

"AVEVA recognized that customer emphasis is on building a connected digital backbone for data exchange and utilization," says Jonathan Lang, IDC research director responsible for IT/OT Convergence. "Through the acquisition of OSIsoft PI and the adaptation of its platform offering and product strategy, it is in an interesting position to provide these key data platform capabilities to its customers."

Summary

This IDC Survey examines results from IDC's Worldwide Future of Industry Ecosystems 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 CXOs, business-line executives, and IT leadership. Industry coverage is across 10 industries: architecture/engineering/construction (AEC); energy; discrete and process manufacturing (and subindustries); healthcare; life sciences; financial services; government and education; telco, media, and entertainment; retail; and transportation/logistics.

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 focused on the healthcare industry. While operational efficiency and cost savings are paramount, improving patient engagement and of course outcomes through data, technology, and expertise continues to be a focus. To achieve this, healthcare organizations are focused on expanding their ecosystems to a multifaceted set of partners so there is on-demand and as-needed data, applications, capacity, and capability to complement their operations. Multiple examples of the future of industry ecosystems exist in this industry (highlighted in this document), proving the benefit of sharing data and insights, sharing and codeveloping applications, and sharing operations and expertise across ecosystems.

Summary

This IDC Market Note discusses U.S. President Joe Biden's Executive Order on AI. U.S. President Biden announced on October 30, 2023, an Executive Order on AI, to promote the responsible, safe, and secure development of AI and GenAI, whether in consumer-facing or industrial use cases.

"While the AI Executive Order is not a panacea that promises a perfect world with AI, it will help facilitate and create environments for open, trusted co-innovation that addresses the world's most challenging problems," said Jeff Hojlo, research vice president, Future of Industry Ecosystems at IDC.

Summary

This IDC Market Note provides our observations and thoughts from the Esri IMGIS Conference held recently in Palm Springs, California.

"The move to modern GIS data mapping, as Esri envisions, includes integration of this data with digital twins of assets (think an electric or gas utility) and processes (think supply chain logistics or construction management), enhancing the value of these virtual models," said Jeffrey Hojlo, research vice president, Future of Industry Ecosystems at IDC.

Summary

SAP recently announced its 3Q23 results. All results discussed in the document will be non-IFRS constant currencies unless otherwise specified.

The 3Q23 financials show cloud and software revenue was up 9% to €6,679 million. Cloud revenue grew steadily, up 23% to €3,472 million with cloud backlog up 25%. Total revenue was up 9% to €7,744 million. Operating profits were up 16% to €2,278 million. In addition, SAP announced the share of predictable revenue was up 2 percentage points to 82%.

Summary

This IDC study details the primary programs, including shared data and insights, shared applications, and shared operations and expertise, as well as the supporting use cases for the future of industry ecosystems. This is a horizontal view of programs and use cases across all industries.

"Organizations in all industries are rapidly evolving the way they work with industry ecosystem partners to support data, application, and operational initiatives. It is no longer sufficient to have a static list of partners that is updated periodically: industry ecosystems are living, multifaceted organisms that are dynamic, with a mix of partners that evolve over time to meet new demand and disruption, as well as accelerate innovation and customer engagement. This new model requires a unique set of programs and use cases to guide strategy, collaboration, and execution: this industry ecosystem taxonomy strives to achieve that," said Jeffrey Hojlo, research vice president, Future of Industry Ecosystems at IDC.

Summary

This IDC Survey Spotlight examines how AI, GenAI, and machine learning have accelerated to stardom as must-have tools in the enterprise over the past year (although not completely new). IDC's Future of Industry Ecosystems data is now showing an increased focus on these tools in support of ecosystem partner engagement and decision making, as well as better understanding of what the end customer wants. While the usage of AI currently is not as extensive across ecosystems as within the enterprise, the trend is moving toward AI-enhanced ecosystems.

Having access to on-demand capital (financial, asset, operational, people) is a top 2 use case within IDC's July 2023 Future of Industry Ecosystems Global Survey. AI and GenAI will serve to augment and complement the many elements of capital that exist across a diverse ecosystem of participants. Determining which partners an organization should work with per initiative, identifying data sharing (and monetization) opportunities, and simply complementing decision making during partner collaboration are just a few opportunities where AI will apply.

Summary

IBM's earnings release for 3Q23 reported revenue of $14.8 billion (+3.5% y/y @ cc, +4.6% y/y as reported) – the balance of this document will use constant currency growth unless otherwise noted. IBM generated free cash flow of $1.7 billion (bringing YTD to $5.1 billion). Financial results for the full year remain consistent with guidance, though currency issues may create some headwinds for the rest of the year.

IBM leadership disclosed several significant additional details on revenue in the quarter. The announced acquisition of Apptio (initially expected to close by Q4) closed in the quarter and contributed to software revenue growth for Q3. IBM also noted that the recently introduced watsonx family of AI software products and AI-related IBM Consulting projects contributed to a "book of business in the third quarter specifically related to generative AI" in the low hundreds of millions of dollars, signaling a good start to IBM's own AI pivot in terms of innovation and business activities.

Summary

This IDC study provides IDC's top 10 predictions for future of industry ecosystems.

"The move to more open, extended, pan-industry ecosystems is the next phase of digital transformation. Organizations continue to recognize that innovation is more successful, resiliency is stronger, and customer, consumer, citizen, or patient experience is better with a varied, diverse ecosystem of partners in place," said Jeff Hojlo, research vice president, Future of Industry Ecosystems.

Summary

This IDC study provides organizations across a wide range of industries with the top 10 predictions and underlying drivers that we expect to impact operations in 2024 and beyond.

"Companies across all industries have had to respond to consistent supply chain disruptions, geopolitical restrictions, and an ever-changing workforce. Competing in this dynamic environment has led many organizations to rethink fundamental aspects of their operations, and many have realized that a digital-first strategy is critical to success. To counter this instability, organizations have been accelerating digital investments to lay the foundation for data-driven operations to quickly adapt to unforeseen disruptions and position themselves for growth when the business environment improves," according to Reid Paquin, research VP, IDC's Future of Operations program.

Summary

This IDC study provides manufacturers with the top 10 predictions and underlying drivers that we expect to impact manufacturers' IT investments in 2024 and beyond.

According to Simon Ellis, group vice president, U.S. Manufacturing Insights, U.S. Energy Insights, and Global Supply Chain Strategies at IDC, "The manufacturing industry has maintained its rapid pace of change and disruption, making the ability to adapt a premium. Manufacturers have encountered many challenges in their efforts to become more resilient while maintaining efficiency, but one of the most cited issues are outdated/legacy systems. While the predictions highlighted touch upon many areas of the business, the main theme can be tied back to having the proper digital infrastructure in place to serve as the foundation for meeting challenges and taking advantage of opportunities."

Summary

This IDC Survey uses data from IDC's Future Enterprise Resiliency and Spending (FERS) Survey, collected in July 2023. It analyses digital-native businesses (DNBs) and their use and adoption of industry ecosystems. It defines industry ecosystems and details DNBs' preferred industry ecosystem contractual and business models, which initiatives they aim to deploy with industry ecosystems, the use of AI and ML in industry ecosystems, and the importance of Web3 and DAO's to industry ecosystems.

Digital-native business respondents in IDC's FERS Survey includes organizations with 500+ employees and are categorized versus non-DNBs. IDC uses the following categories:

• We are not a digital business at all: Digital technology is not core to our business model nor core to the products, services, or experience we provide.
• We are somewhat a digital business: We have implemented a digital strategy and have implemented or are in the process of transforming portions of our business to become more digital.
• We are mostly a digital business: We have implemented a digital-first strategy, and our organization has deployed digital technologies at scale across the business.
• We are a digital-native business: We started as a digital company, and digital technology remains core to our business model as well as products, or services we provide.

Summary

This IDC Survey Spotlight provides insight from the IDC's 2023 Global Manufacturing Survey. It focuses on buyer intentions on future investments in cloud technologies and highlights that a prominent size of existing and prospected investments around manufacturing operations management (MOM) applications will be cloud based/enabled.

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."