IDC Reveals Top 10 ICT Industry Predictions for Philippines in 2019 & Beyond

OPPORTUNITIES and challenges both.

The International Data Corporation (IDC) unveiled on Thursday, January 24, its Top ICT Predictions for 2019 and Beyond.

IDC said the 10 key trends are seen to present both opportunities and challenges to IT leaders in 2019 and beyond.

In an interview with Sudev Bangah, managing director, IDC ASEAN (Association of Southeast Asian Nations), he described to SDN — Science & Digital News, what “digital transformation”  is.

He said digital transformation (DX) is about enterprises being disrupted  by small new organizations.

“In most instances when we talk about digital transformation, we are talking about enterprises who are right now losing a certain revenue stream, who are being disrupted by a younger, born-on-the-internet organization, who’s taking market share away from them,” Bangah said.

The IDC executive said the problem of enterprises in this situation is winning over their market share.

IDC ASEAN Managing Director Sudev Bangah - Science and Digital News


IDC ASEAN Managing Director Sudev Bangah (right) speaks about the opportunities and challenges faced by the Philippine ICT industry as enterprises embrace digital transformation. At left is Sean Paul Agapito, IDC Philippines market analyst, who reported on the company’s Top 10 Predictions on the ICT Industry in the country. (EKU)

Bangah also spoke of the two sides of digital transformation, citing the government situation.

“It is both internal and external,” he said.

The internal process is, “how do I move towards becoming a smart government, how do I make these services available, how do I reduce a 14-day process to a three-day process so that it would be more convenient to deal with the government. That is the internal process.”

External process concerns citizen engagement. “How do I engage with the citizens, how do I get your feedback, how do I take them into account in order to implement the changes required or demanded by the citizens.”

In relation with the trends revealed by the global provider of market intelligence, advisory, and services, it sees that at least 30 percent of organizations Philippine-wide will achieve “digital determination” leading to the transformation of their respective markets and re-imagination of the future leveraging innovative models and digitally enabled products and services.

An organization that is digitally determined will be able to demonstrate its ability to visualize how the markets and customers will change. It can then  re-invent itself to better respond to the needs of these future stakeholders using new and emerging technologies, capabilities, and business models.

Bangah outlined how enterprises can achieve the state of being digitally determined.

“To be digitally determined, Philippine organizations require more than just resilience; they need a ‘blueprint’ that consists of a unified enterprise strategy, a long investment plan based on the principle that digital is inherently valuable to the business, and single digital platform to scale technology innovations,” he said.

But digital determination is not only about the technical aspects, he added. It covers having the will to implement the required organizational and cultural changes aimed at better adapting in today’s age of digital transformation, the IDC executive said.

IDC Philippines - Science and Digital News

Sean Paul Agapito, market analyst at IDC Philippines, briefed the media on the 10 trendsetting predictions.

  • #1: Digital determination. By 2020, at least 30 percent of organizations will be digitally determined, transforming markets and re-imagining the future through new business models and digitally enabled products and services.
  • #2. Digital trusts. By 2020, 40 percent of CIOs (chief information officers) will initiate a digital trust framework that goes beyond preventing cyberattacks and enables organizations to resiliently rebound from adverse situations, events, and effects.
  • #3. Digital KPIs (Key Performance Indicators). By 2023, 55 percent of entities will have incorporated new digital KPI sets — focusing on product/service innovation rates, data capitalization, and employee experience — to navigate the digital economy.
  • #4. Data monetization. By 2021, 40 percent of large enterprises will create data management or monetization capabilities, thus enhancing enterprise functions, strengthening competitiveness, and creating sources of revenue.
  • #5. BizOps. By 2021, 45 percent of CIOs will expand agile/DevOps practices into the wider business to achieve the velocity necessary for innovation, execution, and change.
  • #6. Digital twin. By 2023, 30 percent of the Philippines’ top 1,000 companies will have implemented advanced digital twins of their operational processes, which will enable flatter organizations and one-third-fewer knowledge workers.
  • #7. Artificial intelligence (AI)-driven edge. By 2023, over 30 percent of organizations’s cloud deployments will include edge computing, and 15 percent of endpoint devices and systems will execute AI algorithms.
  • #8. Blockchain-enabled DX (digital transformation). By 2023, prominent in-industry value chains, enabled by blockchains, will have extended their digital platforms to their entire omni-experience ecosystems, thus reducing transaction costs by at least 30 percent.
  • #9. AI is the new UI. By 2024, AI-enabled user interfaces (UIs) and process automation will replace one-speech technology for customer engagement.
  • #10. AI governance. By 2022, 30 percent of enterprises will task CIOs to transform and modernize governance policies to seize the opportunities and confront new risks posed by AI, machine learning (ML), and data privacy and ethics.

Bangah pointed to the impact of new technologies which, he said, are changing paradigms for individuals, businesses, industries, economic, and governments.

“The race to the future enterprise has begun. And with digital disruption becoming the new normal, no one entity will be spared of the need to at least reset or reboot themselves,” he emphasized.

Bangah acknowledged that in this digital age, for enterprises it’s either they take the digital transformation journey, or they would be left behind eating digital dust. (EKU)


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