Latest Research

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 Survey presentation is designed to provide insight into the supply chain challenges and opportunities companies of all sizes across multiple industries are facing and their current priorities, the drivers of change in the strategic focus of their supply chains, the impact of the ongoing disruptions, the progression of supply chain transformation, and the use of modern, digital technologies.

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 technology-oriented value chains (TOVCs) are on a mission to digitally transform to create integrated products and services in such a way that innovation accelerates and enables additional revenue throughout the product life cycle, without negatively impacting the ability to scale to profitable volumes.

According to Simon Ellis, group VP, IDC Manufacturing Insights, "Technology-oriented value chains are in a state of recovery, resilience, and digital-first business models shifts whereby the ability to exceed customer expectations while managing shifting constraints has never been more critical to success. To meet the moment, TOVC manufacturers need to go beyond siloed digital investments to establish and execute an enterprisewide strategy to deliver new innovations in products and services, thus staving off competition and the next disruption."

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

This IDC Survey is designed to provide insight into the supply chain challenges and opportunities companies across the life science industry are facing and their current priorities, the drivers of change in the strategic focus of their supply chains, the impact of the ongoing disruptions, the progression of supply chain transformation, and the use of modern, digital technologies.

Summary

This IDC Market Perspective provides clients of IDC's SaaSPath program with access to the SaaSPath 2023 Vendor Ratings Visualization and Analysis Portal. This portal is a perfect "playground" for you to explore the relationship between buyers' priorities and their assessment of the vendors' performance, the overall and vendor-specific ratings, and other findings through the lens of various buyer profiles.

Summary

This IDC study discusses how engineering-oriented value chains (automotive, aerospace, machinery, and equipment) are on a mission to digitally transform to create an ecosystem-based experience.

According to John Snow, research director, IDC Manufacturing Insights, "Engineering-oriented value chains are in a state of change, as they become more resilient to disruption and realize the benefits of digital-first business models. Adapting to new market demands and ongoing supply chain turmoil, exceeding customer expectations has never been more critical to success. EOVC manufacturers need to integrate processes and connect data silos to establish an enterprisewide strategy that delivers innovative products and services to maximize the opportunities hidden within the next business disruption."

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 Market Presentation provides application vendor and professional services vendor ratings by 23 application areas from IDC's 2023 SaaSPath Survey.

IDC's 2022 survey polled 2,875 organizations across 5 continents and 11 countries to collect information on SaaS adoption, the SaaS buyer's journey, and SaaS vendor preferences and ratings. This IDC Market Presentation covers application adoption and in-depth vendor ratings, spending trends, and advocacy scores for more than 300 software vendors and professional services providers.

The functional application markets covered include accounts payable; accounts receivable; configure, price, quote (CPQ); core HR; digital commerce; ALM/EAM; employee experience; ERP; facility management; field service management; finance; procurement; payroll; product information and experience management (PIM/PXM); product life-cycle management/computer-aided design (PLM/CAD); PSA; sales force automation; SCM; subscription management; talent management; tax; travel and expense; and treasury and risk management.

Summary

This IDC Market Perspective examines the state of collaboration across the supply chain.

"IDC's March 2023 Supply Chain Survey that underpins this document was of over 1,500 global organizations across five different industries and illustrates three of these industries (manufacturing, retail, and life sciences); and while the exact numbers vary somewhat, they still tell a similar story. Collaboration is an opportunity regardless of industry. It is an incomplete journey everywhere," says Simon Ellis, group VP for Supply Chain at IDC.

Summary

Coupa Inspire 2023, the industry's largest conference, provided Coupa the opportunity to highlight many innovations focused on automation/AI, leveraging the power of Coupa Community.ai and providing enhanced, user-friendly, and transparent tools to drive efficiency and savings. More than 100 customer speakers shared success stories on both mainstage and breakout sessions, while day 2 of the conference focused on ESG-related topics and the balance of profit with purpose.

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 designed to provide insight into the supply chain challenges and opportunities companies across the manufacturing industry are facing, their current priorities, the drivers of change in the strategic focus of their supply chains, the impact of the ongoing disruptions, the progression of supply chain transformation, and the use of modern digital technologies.

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 Market Presentation provides an executive summary of the worldwide findings from IDC's 2023 SaaSPath program.

IDC's 2023 SaaSPath Survey polled 2,875 respondents across 5 continents and 11 countries to collect information on SaaS adoption, the SaaS buyer's journey, and SaaS vendor preferences and ratings.

Coverage includes application adoption, deployment models, budget plans and replacement cycle timing, purchasing preferences and attitudes toward SaaS buying channels, pricing options, SaaS management platforms, ratings, spend, and advocacy scores for 23 functional application markets: accounts payable; accounts receivable; configure, price, quote (CPQ); core HR; digital commerce; ALM/EAM; employee experience; ERP; facility management; field service management; finance; procurement; payroll; product information and experience management (PIM/PXM); product life-cycle management/computer-aided design (PLM/CAD); PSA; sales force automation; SCM; subscription management; talent management; tax; travel and expense; and treasury and risk management.

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 Tech Buyer Presentation presents 5G technology trends, adoption metrics, investments, and associated regulatory initiatives. It also provides a top-level view of the prominent vendors in this field, along with relevant examples that highlight possible use cases that can be implemented within the next 12 months.

As the need for improved reliability and latency increases, the need for advanced communication technologies that support large data transfer rates also rises. 5G technology, to a large extent, aids in addressing traditional networking challenges but has its own set of issues around policy readiness, standardization, costs, ecosystem maturity, and skill set availability. Although several implementation cases are still in the pilot phase, the benefits accrued justify the associated efforts.

Summary

This IDC Market Forecast presents a five-year forecast for the Asia/Pacific (excluding Japan) (APEJ) manufacturing IT applications industry as of September 2020. It reviews and analyzes market context, including both drivers and inhibitors of IT applications growth. It also highlights significant market developments, provides the best estimates of IT spending and forecast by key segment, and offers advice to technology suppliers on how to drive opportunities.

"The spending projections and investments show improved market sentiment and appetite for infrastructure and application modernization that would be critical to enable value chain visibility and, subsequently, resilience," says Sampath Kumar Venkataswamy, senior research manager, IDC Asia/Pacific Manufacturing Insights.

Summary

This IDC Perspective is the first research article in a publication series related to current discussions on sustainability and explains the ins and outs of the 26th UN Climate Change Conference of the Parties (COP26) and the current decarbonizing progress. It explores the role of technologies in tackling climate change and how it can empower oil and gas, utilities, manufacturing, and the metals and mining industries to thrive in the tectonic shift.

Summary

This IDC Perspective covers an overview of the role of advanced vision technology solutions and their implications on manufacturing quality management system (QMS). The integration of artificial intelligence (AI) and deep learning (DL) data models into vision systems unlocks a whole new level of applications, moving beyond quality inspections to business operations. The deployment of vision system over cloud, edge, or hybrid platforms will improve decision model accuracy while simultaneously enabling remote monitoring and tracking for faster decision making in business operations.

"AI-based vision technology will drive vision system beyond conventional manufacturing quality inspection, creating significant value to business processes and providing a fast, consistent, and accurate AI-powered decision support. Organizations that are looking into implementing vision technology into their business operations need to keep in mind that the accuracy of AI or DL decision models relies on a significant amount of data. This means that both hardware and software infrastructures need to be sufficient to support the processing demand to ensure seamless operation. Customizable data models and the versatile options of vision system are the keys in the successful deployment that leads to improvement in organizational efficiency," says Wai Yee Lee, research manager, IDC Asia/Pacific Manufacturing Insights.

Summary

This IDC PlanScape discusses the digital transformation (DX) strategies that support manufacturing sustainability goals that would impact future organizational, operational, and sustainability goals. Sustainable strategies are helping with improvements in the manufacturing landscape. The climate crisis in today's world urges us to rethink business practices. Businesses across Asia/Pacific (AP) are under pressure to meet the regulatory requirements that aid in mitigating the challenges of climate change and environmentally sustainable manufacturing practices. Ecologically sustainable manufacturing is where efficient production of goods occurs using processes that minimize the waste of energy, water, and other resources.

"Sustainability is now a compulsory element in organization strategy and operations to increase growth and competitiveness. Successful deployment of DX strategies for sustainable manufacturing requires a joint effort from multidisciplinary teams in the organization and stakeholders across their value chain. Prudent strategic DX planning and technology investment through use case selection are essential to grow companies' sustainability capabilities to a achieve short- and long-term organization goals," says Wai Yee Lee, research manager, IDC Manufacturing Insights.

Summary

This IDC PlanScape discusses the benefits of distributed computing in addressing the challenges faced by manufacturers. The elements of the distributed computing and adoption strategy are highlighted in this document, giving technology buyers an in-depth perspective on the advantages of the distributed computing system architecture in manufacturers' business operations. Production examples of use case applications in various functional areas within manufacturing organizations are discussed, providing decision makers an insight into possible business outcomes from digital infrastructure investments.

"The proliferation of connected devices and industrial automation generates a data-intensive environment in manufacturing organizations. Cross-production collaboration with multiple sites is necessary to serve the dynamic market and customer demand. Organizations need to transition and transform their digital infrastructure into a reliable, agile, and high-performance computing system to drive operational efficiency and increase customer satisfaction," says Wai Yee Lee, research manager, IDC Asia/Pacific Manufacturing Insights.

Summary

This IDC PlanScape aims to provide a comprehensive understanding of the impact of real-time data monitoring on the shop floor and how manufacturers can adopt this technology to improve their process efficiencies.

"Capturing shop floor metrics in real time will be vital to understanding the underlying operational challenges and to ensuring that relevant corrective actions can be taken to reduce the effect of unscheduled downtimes," says Sampath Kumar Venkataswamy, senior research manager, IDC Asia/Pacific Manufacturing Insights.

Summary

This IDC Survey Spotlight examines the connectivity services spend by Asia/Pacific manufacturers. Data has been the core of manufacturing process evolution and the role of connectivity technologies is to aid in capturing these operational metrics and curating insights in real time. Interestingly, several manufacturing organizations have admitted to investing in technologies that can help track, source, and store their operational digital footprint but do nothing beyond that. The objective of these datasets is not only for identifying historical markers that affect asset productivity, but also for predicting future aberrations and outages. And that would be possible through computing architectures either on edge or cloud by partnering with managed network SPs that can bring in industry best practices and frameworks based on existing network infrastructure maturities.

Summary

This IDC presentation discusses emerging trends in the manufacturing sector in Malaysia. Despite the opportunity, there are several challenges that the manufacturing industry in Malaysia has been grappling with, such as the transition to a high value-add economy and the skill gaps to drive research and development (R&D) efforts. The initiatives that have been launched in the past two years look at mitigating the skill gaps to a certain extent, but policy structures targeting investments for new-age products should also be a core focus area to ensure that innovation efforts yield tangible and sustained revenues.

"The manufacturing outlook in Malaysia has improved significantly toward the end of CY 3Q21, driven largely by a revival in international demand for electrical and electronics components. But the constraints around global supply chain movement primarily due to freight delays continues to be a significant factor adversely affecting the planning and delivery drives," says Sampath Kumar Venkataswamy, senior research manager, IDC Asia/Pacific Manufacturing Insights."

Summary

This IDC study provides an assessment of the leading software-as-a-service (SaaS) and cloud-enabled manufacturing enterprise resource planning (ERP) software solutions in Asia/Pacific and discusses the most important criteria for manufacturers to consider when selecting a system.

"We have been seeing increased traction from on-premises to cloud enterprise applications in the last couple of years. The changing manufacturing landscape and significant interest toward remote monitoring and maintenance continue to be among the major drivers for organizations choosing cloud-based ERP applications," says Sampath Kumar Venkataswamy, research manager, IDC Asia/Pacific Manufacturing Insights.

Summary

This IDC PeerScape document provides insights from the tech buyer community on how organizations can prepare themselves from getting affected from future disruptions by highlighting some of the best practices that need to be adopted across the complete value chain. The adoption of these practices will ensure that organizations stay resilient and have the operational visibility that aids in staying ahead of the market and disruptions.

"Several manufacturing firms were caught unprepared during the COVID-19 crisis and, more importantly, did not have robust contingency measures in place to mitigate the effect of market disruptions. As organizations look to wade through these trying times, they also need to start making strategic process and technology investments that allow them to remain operationally resilient," says Sampath Kumar Venkataswamy, research manager, IDC Asia/Pacific Manufacturing Insights.

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 Market Perspective provides clients of IDC's SaaSPath program with access to the SaaSPath 2023 Visualization and Analysis Portal. This portal is a perfect "playground" for you to explore all the applications and topics in SaaSPath and look at findings through the lens of various buyer profiles.

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

This IDC Survey is designed to provide insight into the supply chain challenges and opportunities companies across multiple industries are facing, their current priorities, the drivers of change in the strategic focus of their supply chains, the impact of the ongoing disruptions, the progression of supply chain transformation, and the use of modern, digital technologies.