IDC has released its 2019 Top 10 digital transformation trends for New Zealand. IDC says that by 2020 at least 55% of NZ organisations will be digitally determined, transforming their markets with new business models, developing digitally enhanced products and services.
At the same time, IDC says the Chief Digital Officer title will be short-lived and declining by 2023, as “digital will be fully embedded in organisations and no longer regarded as something special.”
However, more than 60% of CEOs will have led digital initiatives at some stage in their career.
IDC A/NZ research director Louise Francis says that while a little over half of New Zealand organisations will be digitally determined by 2020, customer advocacy will be key to success.
“We estimate that by the end of 2020, more than 60% of New Zealand business-to-consumer organisations will have adopted Net Promoter Score as their leading success metric. In the same time period, at least 20% of businesses will have created digital twins, which will enable flatter organisations and reduce the number of knowledge workers they need by 33%,” she says.
According to Francis, by 2023, 40% of NZ workers will be working with bots or some other form of AI.
“There has been some misinformed comment about AI coming to ‘steal all the jobs.’ In reality, many roles will be augmented and extended with smart bots or some form of AI,” adds Francis.
This trend will require company leaders to redesign operational processes, performance metrics, and recruitment strategies. At present, 60% of NZ organisations do not have any digital KPIs. IDC sees this changing quite rapidly, so by 2023, 85% will have digital KPI sets.”
The IDC analyst says by the end of next year, successful businesses will be allocating capital budget equal to at least 10% of revenue to fuel their digital strategies.
“By the end of 2020, 55% of NZ enterprises will have created data management and monetisation capabilities, enhancing enterprise functions, strengthening their competitiveness, and creating new sources of revenue. The other 45% will be in trouble if they cannot break free of their digital deadlock.” Francis says.
“Now, more than ever, speed and flexibility will beat size every time."
Trends at a glance