2017 Predictions for Digital Transformation

IDC has released its 2017 predictions for digital transformation and for CIOs, in addition to its IT industry predictions. Digital transformation is a technology-centric transformation, says IDC, that is profoundly changing business and society. Here is what IDC expects to see in the coming years:

By 2021, one third of CEOs and COOs of Fortune 2000 companies will have spent at least 5 years of their career in a technology leadership role.

This will be a new career path for current CIOs who can forge digital-based alliances across the enterprise and lead digital transformation initiatives.

Only 40% of CIOs will lead the digital transformation of the enterprise by 2018.

CIOs leading digital transformation will build organizational linkages with line of business technology teams and across IT organizational silos, and will empower changes in thinking, culture, and practices.

By 2018, companies investing in IoT-based operational sensing and cognitive-based situational awareness will see 30% improvements in the cycle times.

IT will need human resources that have detailed process knowledge, as well as IT capabilities to implement IoT technologies.

By 2019, 40% of IT projects will create new digital services and revenue streams that monetize data.

IT will have to drive data and analytical strategies for companies. (See also Tom Davenport’s IT Organizations: The Shoemaker’s Analytical Children).

By 2019, 5% of revenue will come through interaction with a customer’s digital assistant.

Intelligent agents will create an array of conversational interaction points that need to be defined, maintained and managed. Organizations will need to develop a new set of skills in sales, marketing, and product organizations to serve a connected user.

By 2018, 45% of CIOs will shift primary focus from physical to digital and move away from BPM and optimization to deliver scale, predictability, and speed.

Leveraging digital technologies, new business models, and entrepreneurial cultures will be required for success.

By the end of 2017, revenue growth from information-based products will be double that of the rest of the product/service portfolio for one third of all Fortune 500 companies.

Analytics will become value-added services that will increase the revenue potential of information-based products. Organizations will need to develop new data mining skills that will be required to fully realize this potential.

By 2017, 80% of CIOs will help drive global risk portfolios that enable adaptive responses to security, compliance, business, or catastrophic threats.

This will be a significant expansion in the scope of responsibilities of the CIO and will lead the further integration of IT with the business and the opening of new career paths for CIOs.

The vast impact of the digital transformation of the enterprise will include the emergence of new funding models, acceleration in industry disruption and business innovation, data becoming the new capital and rapid increase in worldwide demand for digital workers. The end result will be the transformation of all enterprises into digital natives.

Originally published on Forbes.com