Top Digital Business Strategies Predictions for 2023 Onwards, Revealed by IDC Asia/Pacific*
SINGAPORE, February 16, 2023 – IDC predicts that by 2024, 50% of A2000 CEOs will establish strategic personal relationships with their cloud providers to achieve quantifiable outcomes from digital business platform investments. This is just one of IDC’s predictions unveiled in its latest report IDC FutureScape : Worldwide Digital Business Strategies 2023 Predictions — Asia/Pacific (Excluding Japan) Implications
The digital-first era is upon us and companies must continue to adapt. Those that started their digital transformation earlier are now reaping the benefits, becoming mature digital businesses and operating as digital-first organizations. Those lagging must accelerate their digitalization pace to keep up. The global economy may be faltering, but companies are still investing in digital technologies to stay competitive.
As technology becomes the lifeblood of businesses, the role of the digital-first CEO and the C-Suite has never been more critical in building strategies, strengthening partnerships, and driving digital transformation. Business and technology leaders must find their place in new digital ecosystems, focus on building trust with customers, provide excellent employee experiences, and be good stewards of sustainability.
“In Asia, digital spending is set to reach $1T by 2025, driving the future of business. The key to success lies in harnessing the power of data and intelligence, securing long-term funding, and fostering a culture of innovation. The race to digital maturity is on and companies must overcome challenges such as creating data-driven business models, modernizing operating models, and leveraging the digital workforce to drive innovation,” says Lawrence Cheok, Associate Research Director, Digital Business Strategies, IDC Asia/Pacific.
IDC’s top ten Digital Business Strategies predictions identify the most important trends and related areas of opportunity in Asia/Pacific excluding Japan (APeJ):
#1. Digital Spending: Spending on digital technology by organizations will grow at 3.5 times the economy in 2023, establishing a foundation for operational excellence, competitive differentiation, and long-term growth.
#2. Digital Revenue: By 2026, 40% of total revenue for A2000 organizations will be generated by digital products, services, and experiences.
#3. New Tech Providers: The number of tech providers in the Asia-based 500 organizations (A500) will double by 2027, incorporating businesses that originated outside of the tech industry.
#4. CEO and Cloud: By 2024, 50% of A2000 CEOs will establish strategic personal relationships with their cloud providers to achieve quantifiable outcomes from digital business platform investments.
#5. Value Chains: By 2027, organizations with highly developed industry value chains on an ecosystem control plane will innovate 25% faster than other businesses.
#6. Customer Data: By 2028, enterprises that collect, analyze, and contextualize customer data in a trustworthy way will successfully build creative business and pricing models that double customer lifetime value.
#7. Environmental and Social Governance (ESG): By 2025, a quarter of organizations worldwide will demonstrate responsible leadership by increasing their sustainability-related digital tech spend by more than 25% from 2022 levels.
#8. C-Suite Scaling Innovation: With the majority of technology budgets residing with LOB, by 2027, 25% of the expertise in the C-Suite will shift from encouraging innovation to scaling innovation and operating digital businesses.
#9. Quantify Digital Value: By 2027, 80% of organizations will accurately quantify the value of their digital capabilities/assets (data, algorithms, and software code) and significantly improve their market valuation.
#10. Skills Gaps: By 2026, enterprises that did not effectively address the talent and digital skills gap in their organization will constrain revenue growth opportunities by 20%.
These predictions are discussed in greater detail in the new IDC FutureScape report, IDC FutureScape : Worldwide Digital Business Strategies 2023 Predictions — Asia/Pacific (Excluding Japan) Implications (IDC # AP47847021). Each year, IDC releases its Top Predictions through its IDC FutureScape reports to give a crystal ball view of what is ahead for the rapidly changing ICT industry. These predictions have been used to shape the strategies and business objectives of technology leaders and business executives in the next 1-5 years. To learn more about the IDC FutureScape reports, please click HERE.
For the first time ever, Asia/Pacific Japan FutureScape Reports will come with a complimentary report that provides specific recommendations for tech vendor sales and marketing leaders. Leverage IDC insights to better understand clients’ priorities and enhance your storytelling and go-to market plans, access the IDC FutureScape: Worldwide Digital Business Strategies 2023 Predictions — Asia/Pacific (Excluding Japan) Implications: Positioning for Success — Opportunities for Tech Sales and Marketing Leaders (Doc #AP49931122) market presentation HERE. For more information on our role-based guidance, please visit Tech Impact Business Reports | IDC FutureScape 2023.
In case you missed the IDC FutureScape Asia/Pacific 2023 events, you may visit IDC Arena. IDC Arena is IDC’s integrated content hub that takes IDC thought leadership events online, and exclusive analyst essential guidance videos on-demand.
For more information on this IDC FutureScape document, contact Lawrence Cheok at lcheok@idc.com. For media inquiries, please contact Miguel Carreon at mcarreon@idc.com or Michael de la Cruz at mdelacruz@idc.com.
*Asia/Pacific excluding Japan
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About IDC
International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. With more than 1,300 analysts worldwide, IDC offers global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries. IDC’s analysis and insight helps IT professionals, business executives, and the investment community to make fact-based technology decisions and to achieve their key business objectives. Founded in 1964, IDC is a wholly-owned subsidiary of International Data Group (IDG), the world’s leading tech media, data and marketing services company. To learn more about IDC, please visit www.idc.com. Follow IDC on Twitter at @IDCAP and LinkedIn. Subscribe to the IDC Blog for industry news and insights.