Digital transformation is forcing business leaders to leverage software innovation and transform their businesses into digital innovation factories. International Data Corporation (IDC) offers its top 10 predictions for the Future of Digital Innovation.
“Many enterprises recognize that their ability to build innovative digital products and services will determine whether they succeed or fail in the market,” said Nancy Gohring, research director, Future of Digital Innovation at IDC.
“The imperative to develop innovative digital offerings is influencing significant changes to business models and revenue streams.”
Gartner recently forecast the top technology trends of strategic importance to the enterprises. The trends range from Data Fabric to Generative AI and Composable Applications.
As digital transformation accelerates, it is clear Cloud is at the centre of new generation experiences.
Cloud native applications are going to be the new normal. Analysts have opined non-cloud will be the new legacy.
Also read: Gartner Forecasts IT Spending in Australia to Grow 6.5% in 2022
By 2025, leading enterprises will have a large percentage of their applications developed using no code or low code technologies.
The future of digital innovation is dependent on building developer ecosystems and nurturing talent.
Read more: IDC Forecasts Worldwide AI Spending will double in four years
IDC’s top 10 predictions for the Future of Digital Innovation
Prediction 1: By 2026, enterprises that successfully generate digital innovation will derive over 25% of revenue from digital products, services, and/or experiences.
Prediction 2: By 2022, organizations that allocate 50+% of their software development projects to customer-facing initiatives will see revenue grow 15% faster compared to those that focus more on internal projects.
Prediction 3: To help alleviate the developer skills shortage, 55% of organizations will use cloud marketplaces and tech startup acquisitions as their most important approaches to software sourcing by 2024.
Prediction 4: By 2024, companies that have already invested in building a developer ecosystem will expand their customer base by 25%.
Prediction 5: Securing the software supply chain will be a core competency embraced by 75% of large digital innovators by 2023.
Prediction 6: By 2023, traditional distribution models crumble as 20% of businesses in some sectors use technology to go direct to customers, seeking to improve customer satisfaction and product development.
Prediction 7: By 2026, 30% of software development teams will be focused on turning traditional products into outcomes as a service.
Read more: Debunking The Top 6 Myths About AI
Prediction 8: Half of the Global 500 will have insourced software development significantly by 2025, exacerbating the software engineering skills shortage and fueling interest in software development efficiencies.
Prediction 9: By 2024, 55% of successful digitally innovative products will be built by teams that include people with creative, critical thinking, analysis, and automation skills, as well as software engineers.
Prediction 10: By 2025, 75% of newly developed applications will include some automatically generated code, freeing up humans to focus on development tasks that are not easily automated.
The future of innovation will open new opportunities for enterprises and customers alike. It is exciting and invigorating.
