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​Transform or die - the 3rd platform conundrum impacting enterprise

“In 2016, we will witness the mega transition in the digital transformation era."

Digital transformation (DX) is accelerating growth on the 3rd platform and challenging current CIO leadership model, according to IDC’s top regional predications for 2016 and beyond.

As such, the analyst firm predicts that by the end of 2017, 60 per cent of APAC 1000 (A1000) enterprises will have digital transformation (DX) at the centre of their corporate strategy, with majority even creating an independent position to oversee the DX strategy implementation.

“In 2016, we will witness the mega transition in the DX era,” says Sandra Ng , Group Vice President, Practice, IDC Asia/Pacific.

“Enterprises will “flip the switch”, committing to a massive new scale of DX and 3rd Platform technologies in order to stake out leadership positions in the hyper-digital economy.”

CEO-led strategy in DX:

By the end of 2017, 60 per cent of the APAC top 1000 (A1000) enterprises will have digital transformation (DX) at the center of their corporate strategy.

Dedicated DX executive:

By 2017, 60 percent of companies with a DX strategy will deem it too critical for any one functional area and create an independent corporate executive position to oversee the implementation.

3rd platform IT:

By 2017, over 60 percent of organizations' ICT spending will be for 3rd platform technologies, solutions and services, rising to nearly 80 per cent by 2020.

Customer/intimacy at scale:

By 2018, 80 per cent of B2C and 60 per cent of B2B organizations will overhaul their “digital front door” to support 1,000 to 10,000 times as many customers/customer touchpoints as they do today.

Leading in 3D:

Through 2018, two-thirds of CIOs will have embraced “Leading in 3D”, which requires them to simultaneously innovate, integrate, and incorporate.

DX collaboration:

By 2018, 70 per cent of silo-ed digital transformation initiatives will ultimately fail due to insufficient collaboration, integration, sourcing or project management.

Innovation capacity:

By 2020, enterprises pursuing DX strategies will more than double their software development capabilities; two-thirds of their coders will focus on strategic DX apps and services.

New digital revenue streams:

By 2018, 35 per cent of IT resources will be spent to support the creation of new digital revenue streams.

Security and risk management:

By 2016, 40 per cent of IT organisations will shift their focus to advanced 'contain and control' security and away from a perimeter mentality.

Data governance for insights:

By 2017, two-thirds of Asian-based CIOs will initiate a data transformation and governance framework to turn information into a competitive business differentiator.

“The digitalisation of nations, economies, industry ecosystems and enterprises are pushing new competitive benchmarks in areas of business process excellence and new monetisation/business models,” Ng adds.

“The new hyper-digital era presents opportunities and competition/challenges that go beyond geographic and industry boundaries.

“This is where scale becomes the competitive ingredient for the digital enterprise.”

In closing, IDC predicts that digital transformation will drastically change the IT industry.

“In fact by 2020, more than 30 per cent of the IT vendors will not exist as we know them today, requiring realignment of preferred vendor relationships,” Ng adds.