New Zealand continues to mature and grow as a digital economy, with many organisations now accustomed to leveraging powerful digital innovation platforms.
That’s according to newly released IDC findings, which documents the ascent of the digital native enterprise across the country during 2018.
During the next two years, the analyst firm expects such a trend to “manifest itself” in expanding digital developer communities, open innovation ecosystems, hyper-agile application deployment technologies and a much more diverse cloud services world.
“With 3rd Platform technologies (cloud, mobility, big data and social) now deeply embedded into New Zealand organisations, CIOs and digital leadership teams are now ramping up investment in the digital economy opportunity,” IDC New Zealand senior research manager Louise Francis said.
“Digital natives are here and companies must now act like a digital native by investing beyond 3rd platform technologies. It is no longer about piecemeal investment but large-scale investment taking advantage of the foundations that have been laid down over the past five years.”
As outlined by Francis, many Kiwi organisations have already reached a level of technological maturity to advance to the next stage of digital evolution, becoming a “true digital native” in the process.
“The only things that can hold them back will be an innovation impasse caused by legacy systems constraining transformation and a lack of business vision,” Francis added.
“However, 2018 will provide the opportunity for all organisations to unleash digital innovation's power for digital-centric transformation altering business and society at scale.”
This year's predictions, in no particular order, are:
1 - DX economy tipping point
By 2021, at least 50 per cent of New Zealand’s GDP will be digitised, with growth in every industry driven by digitally enhanced offerings, operations, and relationships; by 2020, investors will use platform, data value, and customer engagement metrics as valuation factors for all enterprises.
2 - DX platforms
By 2020, 60 per cent of all Kiwi enterprises will have fully articulated an organisation-wide digital transformation (DX) platform strategy, and will be in the process of implementing that strategy as the new IT core for competing in the digital economy.
3 - Cloud 2.0: Distributed and specialised
By 2021, enterprises' spending on cloud services and cloud-enabling hardware, software, and services will more than double to over $2.6 billion, leveraging the diversifying cloud environment that is 20 per cent at the edge, over 15 per cent specialised compute (non-X86 compute including GPUs, TPUs, FPGAs, and quantum computers), and over 85 per cent multi-cloud.
4 - AI everywhere
By 2019, 40 per cent of digital transformation initiatives will use AI services; by 2021, 75 per cent of commercial enterprise apps will use AI, over 75 per cent of consumers will interact with customer support bots, and over 50 per cent of new industrial robots will leverage AI.
5 - Hyper-agile apps
By 2021, enterprise apps will shift toward hyper-agile architectures, with 90 per cent of application development on cloud platforms (PaaS) using micro-services and cloud functions (e.g., AWS Lambda and Azure Functions) and over 95 per cent of new micro-services deployed in containers (e.g., Docker).
6 - Human digital interfaces
By 2020, human-digital interfaces will diversify, as 20 per cent of field service techs and 20 per cent of info workers use augmented reality, nearly 30 per cent of new mobile apps use voice as a primary interface, and nearly 40 per cent of the consumer-facing NZX50 use biometric sensors to personalise experiences.
7 - Blockchain and digital trust
By 2021, at least 25 per cent of the NZX organisations will use blockchain services as a foundation for digital trust at scale.
8 - Everyone’s a data provider
By 2020, 75 per cent of large enterprises will generate revenue from data as a service — from the sale of raw data, derived metrics, insights, and recommendations — up from nearly 30 per cent in 2017.
9 - Everyone’s a developer
Improvements in simple, "Low Code/No Code", development tools will dramatically expand the number of non-tech developers over the next 36 months; by 2021, these nontraditional developers will build 15 per cent of business applications and 25 per cent of new application features.
10 - Open API ecosystem
By 2021, more than half of the NZX companies will see an average of one-third of their digital services interactions come through their open API ecosystems, up from virtually 0 per cent in 2017 — amplifying their digital reach far beyond their own customer interactions.