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Summary

This IDC Market Presentation provides technology vendors with an overview of key business trends shaping the Americas manufacturing industries in 2023 and beyond. This document offers a foundation of industry knowledge to help technology vendors develop a compelling narrative that resonates with manufacturing clients, enables alignment of products and services with manufacturers' business priorities, and demonstrates how relevant technology implementation contributes toward the achievement of their vision and goals.

"Manufacturers across the Americas are dealing with macroeconomic, geopolitical, and sector-specific uncertainties. But beyond those table-setting factors, strategic decision makers are considering their priorities and investments in supply chain resiliency, digital business, product innovation, automation everywhere, and operational excellence. Digital technologies are major transformation enablers, and technology vendors can make the difference in supporting manufacturers through their transformation journey," said Nigel Wallis, research VP, IDC Insights.

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 Perspective examines the priorities and challenges facing the chief supply chain officer (CSCO) from IDC's latest Worldwide C-Suite Tech Survey.

"Automation sits as the most intriguing technology (or technologies) for the CSCO, with GenAI a close second. Eventually GenAI will probably join the pantheon of automation technology, but it is new enough to remain distinct. While GenAI has come out of the starting gate quickly, the reality is that the AI journey more broadly is a multiyear journey, with some inevitable fits and starts," says Simon Ellis, group VP, U.S. Manufacturing and Supply Chain, 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

This IDC Market Perspective examines the interrelationship between supply chain design and direct procurement.

"If supply chains do look to reevaluate and shift their global sourcing strategies in 2024 and beyond, or even rethink where they manufacture/assemble, aligning direct procurement strategies with supply chain design should be a necessary prerequisite, or at least an important capability," says Simon Ellis, group VP for U.S. Manufacturing and Supply Chain, IDC.

Summary

This IDC study uses the IDC MarketScape model to provide an assessment of the IT consulting providers supporting supply chain management (SCM) processes. This study specifically analyzed these offerings within the supply chain all other ecosystems services suite.

"Across the manufacturing and retail supply chains, there are a significant number of vendors providing supply chain management applications. Although SAP and Oracle have the largest market share in terms of SCM revenue, companies such as Blue Yonder, e2open, IBM Sterling, Infor, Kinaxis, Microsoft, and Logility are also important contributors," says Simon Ellis, group VP for Supply Chain, IDC Manufacturing Insights. "The intent of this IDC MarketScape is to focus on those IT consulting vendors that focus on both a deep and broad set of offerings and capabilities to support supply chain management within this 'all other' ecosystem."

Summary

This IDC study uses the IDC MarketScape model to provide an assessment of the IT consulting providers supporting supply chain management processes. This study specifically analyzed these offerings within the Oracle supply chain management suite.

"Across the breadth of supply chain management applications, the Oracle ecosystem is extremely influential and important. Many strategic integration firms have developed targeted practices for this ecosystem, some support it uniquely," says Simon Ellis, group VP, Supply Chain at IDC. "The intent of this IDC MarketScape is to focus on those IT consulting vendors that focus on both a deep and broad set of offerings and capabilities to support supply chain management within the Oracle ecosystem."

Summary

This IDC study uses the IDC MarketScape model to provide an assessment of the IT consulting providers supporting supply chain management processes. This study specifically analyzed these offerings within the SAP supply chain management suite.

“Across the breadth of supply chain management applications, the SAP ecosystem is extremely influential and important. Most strategic integration firms have developed targeted practices for this ecosystem,” says Simon Ellis, IDC group VP for Supply Chain. “The intent of this IDC MarketScape is to focus on those IT consulting vendors that have both a deep and broad set of offerings and capabilities to support supply chain management within the SAP ecosystem.”

Summary

This IDC Survey Spotlight highlights both the principal drivers of sustainability in the supply chain and those areas that are a focus for operationalization for the major subsegments of manufacturing. The data comes from IDC's 2023 Global Supply Chain Survey.

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 study provides companies across all industries with the top 10 predictions and underlying drivers that we expect to impact IT investments in supply chains in 2024 and beyond. Technology leaders and their counterparts in the line-of-business (LOB) operations can use this document to guide their IT strategic planning efforts.

According to Eric Thompson, research director, IDC's Worldwide Supply Chain Planning, "Supply chains continue to face the pressures of global macroeconomics, a recent history of disruptions, elevating consumer relationship requirements, and looming regulatory mandates. In this backdrop, technological advancements in AI/ML, integrated operations, supply chain orchestration and visibility, and optimization models are all seeing increased strategic prioritization."

Summary

This IDC Market Perspective examines the persistence of paper-based thinking in manufacturing operations and supply chains.

"The reasons that transformation efforts have not borne fruit are varied, but one that IDC hears repeatedly is that while operations and the supply chain have been digitized, companies have not always rethought processes or approaches. In other words, they may have turned paper into electronic files, but they are still operating with a paper-based thinking," says Simon Ellis, group VP, U.S. Manufacturing and Supply Chain at IDC.

Summary

This IDC Market Glance looks at the current makeup of the supply chain planning market for all industries. The presentation provides an overview of technologies involved (from the initial creation of a demand forecast to the consensus plan for supply and manufacture), illustrates the participating vendors, and depicts the segments and structure of the market.

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 study presents IDC's fourth iteration of digital transformation use case taxonomy for procurement. It includes descriptions of the strategic priority, programs, and use cases for this horizontal function.

"As procurement technology continues to evolve and advance, digital procurement use cases are becoming differentiators. Providers are finding that buyers are using their applications in ways they did not necessarily foresee. A library of the use cases seen in this taxonomy makes for a compelling offering." — Patrick Reymann, research director, Enterprise and Procurement Applications

Summary

This IDC study describes how brand-oriented value chains (food and beverage, health and beauty, toys, sporting goods, and household) are on a mission to digitally transform to create engaging consumer (and customer) experiences at scale.

Global Supply Chain Planning Research Director Eric Thompson says, "Companies in these value chains generally understand what is involved in this digital journey, and that begins with a common definition of the mission, strategic priorities, and programs so that individual projects or use cases support the overall objectives."

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

The 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; SCM; subscription management; talent acquisition, 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.